Uniliver India Case Study

1. EXECUTIVE SUMMARY

Unilever is one of the leading Fast Moving Consumer Goods Company in India (FMCG). The growth of Hindustan Lever Ltd (HLL) was linked closely with the political development in India. With the liberalization in India market and the open up of market to foreign multinational such as Procter & Gamble (P&G), Brooke and Bong, Kimberly Clark Corp give a big pressure to HLL in India and its really damages the Market share of HLL in India. Other than that the competition from local FMCG manufacturers such as Tata Oil and Mills companies, Nirma a Gujarat based scale business disturbed the HLL products by offering low price products into the Market. The great pressure from both International and National competition push HLL to think to tap into new market / opportunity.  As a result the HLL start to get into the rural market in India. As a start-up they used Streamline approach to reach the rural consumers, but the stream line is not good enough in reaching the rural market, so as a solution HLL come out with Project Shakti in the year of 200o in Andhra Pradesh to extend HLL reach into untapped market and to develop its brand through local influences.      

2.0 INTRODUCTION

Hindustan Unilever Limited (HUL) is Indians largest fast mowing consumer goods company with a heritage of over 80 years in India.

The venture of HUL in India started in the year of 1888 by Level Brothers by trading Sunlight Soap through the Port in Culcutta. Soon after followed by Lifebouy in 1895 and other famous brands like Lux, Pears and Vim. Vanaspahi was launched in 1918 and the famous dalda brand come to the market in 1937.

In 1931, unilever set up their first subsidiary, Hindustan Vanaspahti Manufacturing Company, followed by Lever brothers India limited in 1933, United Traders Limited in 1935.

In 1956 Hindustan Lever Limited (HLL) is formed followed by the merge of this three main companies, wih 10% of Indian Equity Participants. In 2007 the company name was formally changed to Hindustan Unilever Limited.

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.  

2.1 COMPETETIVE ENVIRONMENT

In the early of 1990, HLL faces competition in almost every category from international and local rivals due to the India’s open market approach. At the time HLL faced competition from two broad segmentation which is from Lower price segment and also higher price segment.  

For Lower price segmentation HLL faced competition from uncategorised local players. The local players are typically operated in small geographic, without brand awareness. They are offers in higher trade margin and sold their products at lower price than HLL Brands.