Project
Project
1.A ‘Desi’ Multinational –A Case Study of Hindustan Unilever Limited (2 january 2018)
Srinivas Institute of Management Studies, Srinivas University, Mangalore – 575 001, INDIA, Srinivas
Institute of Management Studies, Srinivas University, Mangalore – 575 001, INDIA
Online at https://mpra.ub.uni-muenchen.de/85699/ MPRA Paper No. 85699, posted 08 Apr 2018 07:02
UTC
Keerthan Raj & P. S. Aithal Srinivas Institute of Management Studies, Srinivas University, Mangalore - 575
001, India E-mail:[email protected]
ABSTRACT
India has become a second home to many multinationals’ over the years. The fact that India has second
largest population in the world is alluring because it translates itself into a huge opportunity to encash
for marketers across the globe. Hindustan Lever Limited which set foot as the subsidiary of Unilever has
been one such multinational which has almost become a home grown brand. The strategies adopted by
this corporate leaves no stone unturned in cashing in on the tiniest niche markets available. Reaching the
four billion populations in the base of the pyramid markets has been a topic of research in recent times.
Lot of exploratory and case studies have been made in this field. This paper is a study on the strategies
developed by Hindustan Lever Limited which has been one of the most successful companies to foray
into the emerging markets in South East Asia and successfully tapped the base of the pyramid in India. A
case study using archival material and secondary information sources suggest that having a global
lookout and one world one market strategy is not successful when attempting to cut into base of the
pyramid segments in emerging markets. The critical aspect here is developing grassroots’ connection and
social empathy which should translate to a cooperative spirit which will leverage the strengths and
overcome the weaknesses.
Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, with
leadership in Home & Personal Care Products and Foods & Beverages. HUL's brands, spread across 20
distinct consumer categories, touch the lives of two out of three Indians. They endow the company with
a scale of combined volumes of about 4 million tonnes and sales of Rs.10,000 crores. The mission that
inspires HUL's over 15,000 employees is to "add vitality to life". With 35 Power Brands, HUL meets
everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look
good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds
51.55% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care
brands in about 100 countries worldwide.
HINDUSTAN UNILEVER LIMITED(HUL)
TO “UNIVERSITY OF PUNE”IN THE PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE
DEGREE OF MASTERS OF MARKETING MANAGEMENT THROUGHVISHWAKARMA INSTITUTE OF
MANAGEMENT, PUNE - 411048 1
Pure-it is a range of water purifiers made by Hindustan Unilever currentlysold in India, Mexico, Brazil, Sri
lanka, Nigeria, Indonesia and Bangladesh,consisting of six models: Pure-it Classic, Pure-it Compact, Pure-
it Classic Autofill,Pure-it Intella, Pure-it Marvella and Pure-it Marvella. Pure-it was first launched
inChennai in 2004. Pure-it claims to meet the E.P.A. germ-kill criteria. Pure-it Classicremoves germs
without needing electricity or pressurized tap water. Pure-it Classiccosts Rs. 2000.PURIFICATION Pure-it
consists of four parts that purify the water in four stages: a microfibremesh, a compact carbon trap, a
germkill processor and a polisher, as branded byHindustan Unilever. For the Pure-it Marvella model, the
microfibre mesh has beenrebranded as a pleated filter, while the compact carbon trap has been
rebranded as anactivated carbon filter, along with a prefix of unique. The microfibre mesh functionsas a
sieve, filtering out visible dirt. The carbon trap removes parasites and pesticides.The processor is a tablet
consisting of chlorine. This stage removes bacteria andviruses. The polisher improves taste and clarity of
water and removes the residualform of chlorine from the water. These four parts are collectively
branded thegermkill kit or the battery. 19
Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch company –Unilever. BothUnilever 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 alsorewarded when four of HUL brands found place in
the ‘Top 10 brands’ list for the year 2008published in The Economic Times.Unilever was a result of the
merger between the Dutch margarine company, Margarine Unie, andthe British soap-maker, Lever
Brothers, way back in 1930. For 70 years, Unilever was theundisputed 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 itsdistribution in the rural areas and to empower the
local women, HUL launched a Project Shaktiin 2000 in a district in Andhra Pradesh. The idea behind this
project was to create womenentrepreneurs and provide them with micro-credit and training in
enterprise management, whichwould enable them to create self- help groups and become direct-to-
home distributors of HULproducts. Today Project Shakti is present across 80,000 villages in 15 states and
is helping manyunderprivileged women earn their livelihood.
5.
HINDUSTAN UNILEVER LIMITED(HUL)