...&Weaknesses of Unilever in Indian Market HLL has numerous advantages; well-established strong brands, sales and distribution system, local manufacturing and distribution. Another strong point of HLL is its first-mover advantage. HLL entered India much earlier than other multinational FMCG companies like Procter & Gamble and Colgate-Palmolive. HLL has the greatest market penetration and geographical coverage among other FMCG giants operating in India. HLL has also strong position against unorganized local competitors who do not work to build brand image. HLL offers a very large number of brands and SKU to serve Indian market. On weaknesses side of Unilever; unorganized local players can sell their products at lower prices than HLL brands. HLL might entered the India first but after economic liberalizations other major FMCG players whom Unilever is competing globally also entered India. So HLL’s vast product line and brands brought great number of competitor at each profit-center that HLL operates in high-price segment. The competition led to price-reduction and resulted profit-loss. Opportunities &Threats for Unilever in Indian Market One of the greatest opportunities in India for Unilever is the number actual and potential customers. India has the second largest population in the world with 1.2 Billion. Majority of this population is young people under 25 years-old and willing to consume. India’s rising GDP and purchasing power is bringing extra opportunities. Unilever is also benefiting...
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...A BRIEF STUDY ON MARKET SRUCTURE AND DEMAND ANALYSIS OF HINDUSTAN UNILEVER TABLE OF CONTENT Sl.no | Content | Page no. | 1.2.3.4.5.6. | Executive summaryIntroductionObjectives and MethodologyFindingsProduct LineSWOT AnalysisCompetitors AnalysisPerformance AnalysisFuture OpportunitiesFuture Projects of HULConclusionBibliography | 34-56789-1213-1515-18192021 | EXECUTIVE SUMMARY Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever. Both Unilever and HUL have established themselves well in the Fast Moving Consumer Goods (FMCG) category. In India, the company offers many households brands like, Dove,Lifebuoy, Lipton,Lux, Pepsodent, Ponds, Rexona, Sunsilk, Surf, Vaseline etc. Some of its efforts were also rewarded when four of HUL brands found place in the ‘Top 10 brands’ list for the year 2008 published in The Economic Times. Unilever was a result of the merger between the Dutch margarine company, Margarine Unie, and the British soap-maker, Lever Brothers, way back in 1930. For 70 years, Unilever was the undisputed market leader but now faces tough competition from Proctor & Gamble and Colgate-Palmolive. HUL is also known for its strong distribution network in India. In order to further strengthen its distribution in the rural areas and to empower the local women, HUL launched a project Shakti in 2000 in a district in Andhra Pradesh. The idea behind...
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...Introduction to HUL Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €46.5 billion in 2011. Unilever has about 52% shareholding in HUL. Our vision Unilever products touch the lives of over 2 billion people every day – whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh...
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...Samir Lakhani Stephen Martinek Mahek Parikh Unilever Group Submission Unilever is a consumer goods company that has a variety of product types to serve consumers across the globe. For this case, Unilever’s tea brand, Lipton, is focused on sustainability for the production of their tea production. Sustainability is defined as a method of using a resource so that the resource is not depleted or permanently damaged. In other words, it is focusing on a production method that is sustainable long-term. Currently, Unilever has about 25% of their tea from Rainforest Alliance Certified farms, which brought forward gains in the environmental, social, and economic sustainability of tea production. It was one of the few brands of tea that was able to have ethical practices while growing beyond a niche market into a larger market share. However, Unilever is looking to source 100% of its agricultural raw materials sustainably (Rainforest Alliance certified) by the year of 2020. This is a lofty and ambitious goal that requires a supply chain transformation, as nearly 8 million tons of commodities across 50 different crops are required for production. There are multiple reasons for this action: to have ethical production practices, to make their brand favorable to customers, and to increase the longevity of their farms. However, they will bear costs of having to increase the market price and convincing their suppliers to be certified. For example, the firm...
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...INTRODUCTION Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has an employee strength of over 16,500 employees [2] and contributes to indirect employment of over 65,000 people.[3] The company was renamed in June 2007 as “Hindustan Unilever Limited”. Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers" were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).[4] Hindustan Unilever's distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.[5] ------------------------------------------------- Brands HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst...
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...WORKING CAPITAL PERFORMANCE ANALYSIS OF HINDUSTAN UNILEVER LIMITED COMPANY An Overview of FMCG Companies in India Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be categorized into three segments which are: 1. Household items as soaps, detergents, household accessories, etc, 2. Personal care items as shampoos, toothpaste, shaving products, etc and finally 3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc. Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette etc. A look at some factors that will drive growth in this sector: * Increasing rate of urbanization, expected to see major growth in coming years. * Rise in disposable incomes, resulting in premium brands having faster growth and deeper penetration. * Innovative and stronger channels of distribution to the rural segment, leading to deeper penetration into this segment. * Increase in rural non-agricultural income and benefits from government welfare programmes. * Investment in stock markets of FMCG companies, which are expected to grow constantly. Objectives The study aims at analyzing the working...
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...Strategic Management Case Study Unilever Focusing on East for Growth Word Count: 3984 Question 1 Unilever is an Anglo Dutch company that has been established in 1929 as a result of a merger between 2 companies: Lever Brothers and Margarine Unie. UNILEVER owns consumer products in; Food and Beverages, Cleaning agents and Personal care. It is now ranked as the second world largest consumer product company. Strategic Purpose: Unilever’s 2nd rank in FMCG has been gained by serving the company’s mission “to meet everyday’s needs for nutrition, hygiene, and personal care with brands that help people look good, feel good, and get more out of life”. Value Chain Analysis Porter’s value chain analysis gives insight on how Unilever creates competitive advantage. It provides deeper understanding to establish a SWOT analysis in order to arrive at the applicable Ansoff theory. It describes Unilever’s primary and support activities’ characteristics (Figure 1). Figure [ 1 ] Primary Activities Inbound & Outbound Logistics: Unilever had put a five-year strategy plan, called the “path to growth” to transform its inbound logistics in way that increases efficiency and saves money to be invested elsewhere outside the business. This plan started in North America by integrating six operating business and emerging 3 supply chains. The philosophy of this change was to create one single set of distribution centers that attain the 24hour delivery plan to the customer. Transportation...
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...Bibliography * An Ice Cream Machine That Measures Smiles, CBS News, 25 June 2010 http://www.cbsnews.com/stories/2010/06/25/tech/main6616630.shtml * BBC News. "Procter and Gamble issues second profits warning." BBC . N.p., n.d. Web. 17 Oct. 2012. <http://www.bbc.co.uk/news/business-18522106>. * Criticism in India over skin-whitening trend, The Daily Telegraph 10 Jul 2008 <http://www.telegraph.co.uk/news/worldnews/asia/india/2279971/Criticism-in-India-over-skin-whitening-trend.html> * Dove Reference: <http://www.telegraph.co.uk/news/worldnews/asia/india/2279971/Criticism-in-India-over-skin-whitening-trend.html> * Eluta.ca. "Procter & Gamble Inc. ." eluta.ca. N.p., n.d. Web. 17 Oct. 2012. <http://www.eluta.ca/top-employer-procter-%26-gamble>. * Mother Nature Network. "Procter & Gamble and the environment | MNN - Mother Nature Network." Mother Nature Network. N.p., n.d. Web. 16 Oct. 2012. <http://www.mnn.com/money/sustainable-business-practices/stories/procter-gamble-and-the-environment>. * Palm Oil Issue - "Ape protest at Unilever factory" BBC, Tuesday, 22 April 2008 <http://news.bbc.co.uk/2/hi/uk_news/england/7358071.stm> * P&G. "2011 Annual Report." P&G. N.p., n.d. Web. 15 Oct. 2012. <www.pg.com/en_US/downloads/sustainability/reports/PG_2011_Sustainability_Report.pdf>. * P&G. "Purpose & People." P&G.com. N.p., n.d. Web. 16 Oct. 2012. <http://www...
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...retain their share of the market (Hamel and Prahalad 2002; Kim and Mauborgne 2005). Emerging markets of Asia and Europe offer strong growth potential to emerging market leaders like Unilever which have a range of consumer goods products from toothpaste to snacks and biscuits (Bloch, Shankar and Schaus, 2007). The power and potential of emerging markets can be gauged from the fact that they contribute to nearly fifteen percent of revenues to international brands like Unilever, a trend which is likely to continue (Bloch, Shankar and Schaus, 2007). Think global act local With the aim of succeeding, companies have adopted the new mantra of ‘Think Global, Act Local’. In order to compete with local brands, not only with regard to prices, but also to taste, Unilever develops flexible marketing strategies to market and distribute its products in local remote areas of emerging markets. For instance, Unilever devised and implemented a unique strategy for the marketing of its products in Indonesia, where infrastructure is poor, with the use of motorcycles to reach remote villages in Indonesia. This strategy enables Unilever to gain higher profit margins in developing nations and reduce the costs of their premium products in economies of scale. Distinct Marketing Strategies in developing economies Unilever is keenly aware of global strategies which it needs to adopt for the development and increase of local market for their brands,...
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...Consolidated BALANCE SHEET As at 31st March, 2012 (All amounts in Rs.Crores, unless otherwise stated) Note EQUITY AND LIABILITIES Shareholders' funds Share capital Reserves and surplus Minority Interests Non-current liabilities Other long term liabilities Long-term provisions Current Liabilities Trade payables Other current liabilities Short-term provisions Total ASSETS Non-current assets Fixed Assets Tangible assets Intangible assets Capital work-in-progress Intangible assets under development Non-current investments Deferred tax assets (net) Long-term loans and advances Current Assets Current investments Inventories Trade receivables Cash and bank balances Short-term loans and advances Other current assets Total Summary of significant accounting policies Contingent Liabilities, capital and other commitments The accompanying notes are an integral part of these financial statements As per our report of even date For Lovelock & Lewes Firm Registration No. 301056E Chartered Accountants Pradip Kanakia Partner Membership No. 39985 For and on behalf of Board of Directors Nitin Paranjpe Managing Director and CEO As at 31st March, 2012 As at 31st March, 2011 3 4 216.15 3,464.93 18.30 331.67 674.30 4,843.87 564.36 1,293.67 11,407.25 215.95 2,519.00 14.58 219.23 673.66 5,079.02 566.56 1,059.82 10,347.82 5 6 7 9 10 12 13 14 15 16 17 18 19 20 21 22 2 23, 24 2,232.91 29.95 217.32 10.32 70.25 209.91 380.82 2,251.91 2,667.37 856.74 1,996.43 446.11 37.21 11...
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...‘Fair & Lovely’ Whitening Cream Aneel Karnani Stephen M. Ross School of Business The University of Michigan 701 Tappan Street Ann Arbor, Michigan 48109-1234 Phone: (734) 764-0276 Fax: (734) 936-8715 E-mail: akarnani@umich.edu March 2007 UNIVERSITY OF MICHIGAN Doing Well by Doing Good SMJ 07-6615 rev Doing Well by Doing Good Case Study: ‘Fair & Lovely’ Whitening Cream Abstract According to the ‘doing well by doing good’ proposition, firms have a corporate social responsibility to achieve some larger social goals, and can do so without a financial sacrifice. This paper empirically examines this proposition by studying in depth the case of ‘Fair & Lovely,’ a skin whitening cream, marketed by Unilever in many countries in Asia and Africa, and, in particular, India. Fair & Lovely is indeed doing well; it is a profitable and fast growing brand. It is, however, not doing good, and I demonstrate its negative implications for public welfare. I conclude with thoughts on how to reconcile this divergence between private profits and public welfare. Key Words: Corporate social responsibility; bottom of the pyramid 2 Doing Well by Doing Good SMJ 07-6615 rev The idea that companies can do well by doing good has caught the attention of executives, business academics, and public officials. The annual report of virtually every large company claims its mission is to serve some larger social purpose besides making profits. The theme of the Academy of Management conference...
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...Understand Hindustan Unilever Limited's Strengths, Weaknesses, Opportunities and Threats Along with Business Strategy Business Wire, Jan 24, 2008 • 1 • 2 • Next DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c80475) has announced the addition of "Premium Company Profile: Hindustan Unilever Limited" to their offering. Introduction Hindustan Unilever Limited (HUL), a subsidiary of Unilever, is a fast moving consumer goods (FMCG) company based in India. The company focuses on efficient delivery to consumers with an improved supply chain, brand building initiatives and innovation, which has helped the company to sustain its leadership position in the overall FMCG category in India. Scope Contains corporate strategy, value chain presence and SWOT Analysis Provides detailed business description, segment analysis, 5-year financial trends, key products and key competitors Includes information on suppliers/ partners, shareholding structure and key employees with biographies Highlights Hindustan Unilever Limited (HUL) is a packaged mass consumption fast moving consumer goods (FMCG) company based in India. It offers foods, beverages, home care, and personal care products. Its operations are divided into seven reportable divisions: soaps and detergents, personal products, beverages, foods, ice creams, exports, and other operations. Its brands are spread across 20 consumer product categories. Hindustan Unilever markets consumer goods...
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...This title is part of the IDH Case Study Series, published in December 2010. Another title in this IDH Case Study Series is: • nilever sustainable tea, Part II: U Reaching out to smallholders IDH also has a Best Practices Series, whose titles include: • Marketing sustainability • Sustainable sourcing among SME’s • Beyond auditing • Sustainable trading • Retailers and sustainability • Sustainable sourcing and procurement Case study Unilever sustainable tea Part I: Leapfrogging to mainstream y Tania Braga, B Aileen Ionescu-Somers and Ralf Seifert, IMD’s Center for Corporate Sustainability Management Dutch Sustainable Trade Initiative (Initiatief Duurzame Handel) Utrecht, The Netherlands www.dutchsustainabletrade.com office@dutchsustainabletrade.com Foreword A tipping point happens when a critical mass of people begin to shift their perception of an issue and take action in a new direction. As I look across the global landscape, I feel that we are approaching a tipping point concerning global sustainability. It is catalyzed by at least three important realizations by business, government, and civil society: The first is a realization that the world is finite and that a growing population with a higher ambition for living standards will inevitably lead to a world which will be resource and carbon constrained. The second is the realization that to solve the challenges for this future world we need systems solutions. We cannot solve individual...
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...changing lives and stimulating economic activity in rural India BY GAVIN NEATH AND VIJAY SHARMA R O J A M M A I S A S I N G L E M OT H E R with two daughters living in Kurumurthy, a small rural village 150 kilometres south west of Hyderabad in Andhra Pradesh. Until five years ago she scraped an existence by working in her mother’s field, earning barely enough to live on herself, let alone bring up two children. Then her life changed beyond recognition. Today she earns around 650 rupees (US$16) a month, is widely recognized and respected in her community, and has become a role model for other women wanting to raise themselves out of poverty. What changed was a visit to her village by a representative from Hindustan Unilever and her decision to become a Project Shakti entrepreneur. Hindustan Unilever, the Indian arm of global consumer goods company Unilever, is one of India’s leading businesses, with an annual turnover of US$2.3 billion and a history in India stretching back a hundred years. It markets such well-known international brands as Lipton, Lifebuoy, Surf, Vim and Pond’s, as well as local brands, such as Kissan, Annapurna, Lakme and Wheel. Unilever has always held the firm belief that the private sector can contribute to social development by creating win-win solutions to social challenges through innovative strategies that meet both business and social objectives. It was this philosophy that prompted Hindustan Unilever to create Project Shakti, a unique micro-enterprise...
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...Unilever claims that corporate social responsibility, including environmentalism, is at the heart of its business. However, the transition to a responsible and sustainable company is an ongoing process. Unilever has attracted some criticism from activists on not achieving the high aims and goals the company has communicated publically and internally. Despite the criticisms, Unilever has been at the forefront of its industry to initiate processes and create transparency in in its operations, especially regarding the environment. Even in its infancy, Unilever had difficulty balancing ideals with business goals. Unilever's founding companies produced products made of oils and fats, principally soap and margarine. At the beginning of the 20th century their expansion nearly outstripped the supply of raw materials. In an effort to reduce increasing costs due to World War I and growing limitations on supplies, former business rivals join forces, at first in the form of trade associations. These companies set up negotiations intending to prevent others from producing the same types of products but instead they merge to create Unilever. After struggling through the Great Depression and World War II, one of the main products companies were trying to develop was detergent. Soaps are made of materials found in nature and are break down naturally in the environment. A big drawback from using soap is that the minerals in water react with those in the soap, leaving an insoluble film...
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