Published on April 15, 2009
Strategies Of : Strategies Of Introduction - : Introduction - Hindustan Unilever Limited is India’s largest fast moving consumer goods company. Company with a scale of combined volumes of about 4 million tonnes and sales of Rs.13, 718 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. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. Business Strategies - : Business Strategies - “The company will compete with low price competitors by playing to their strengths - using strongest brands backed by superior technology and the lowest cost supply chain”. “Company will continue investment in technology, both to make better products and secure cost advantage”. “There is a big opportunity to grow processed foods, which are still a very small proportion of the overall largely, commoditized foods market”, HLL chairman M S Banga said Corporate Strategy - : Corporate Strategy - HLL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets. The new sales organization named 'One HLL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HLL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market. Project “Shakti” - : Project “Shakti” - Rural India is spread across 627,000 villages and possesses a serious distribution challenge for FMCG Cos. HLL has come up with a unique and successful initiative wherein the women from the rural sector market HLL products, and hence, are able to reach the same wavelength as of the common man in village. Apart from product reach, the initiative also creates brand awareness amongst the lower strata of society. Functional Strategy - : Functional Strategy - Consider Sunsilk - To perk up volumes, HLL occupied various price points: 8 ml sachet for Rs 2.50. 50 ml bottle for Rs 35 100 ml bottle for Rs 55 and the 200 and 300 ml bottles. It also introduced 100-ml “smart packs” targeted at small towns with a price tag of Rs 35. (The cost of a 50 ml bottle of Sunsilk). Slide 9: This was a ploy targeted at the heavy sachet users to upgrade them into bottle usage. Recently, HLL launched a mega promotion which offers prizes ranging from 2.5 kg of gold to gold coins to those who collect sachets of shampoos. Clearly, hair-care has come of age at HLL.