hul - group ii

8/8/2019 Hul - Group II

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History of HULIn 1885 Lever Brothers set up William Hesketh Lever in England.In 1888, company entered India by exporting its laundry soap Sunlight .

In 1895, Lifebuoy soap was launched in India followed by Pears in 1902,Luxin 1905 and Vim powder in 1913.

In 1930 the company merged with Margarine Unie to form Unilever.

In 1931 Unilever set up its first Indian subsidiary for production of vanaspati.

Lever Brother India Ltd. and United Traders Ltd. were established in 1933 and1935 respectively for the distribution of personal products.

In 1951, HUL purchased plants at Trichy, Shamnagar and Ghaziabad to expand itsvanspati production.

In 1956, the three Indian subsidiaries merged to form Hindustan Lever Ltd.(HLL).

In 1964, HLL launched its dairy product Anik Ghee and Sunsilk Shampoo .In 1967, Hindustan Lever Research Centre was set up.

In 1969, Rin detergent and Bru coffee was launched.

In 1971, Clinic shampoo was launched followed by Liril bathing soap in1974.

In 1975, company enterd into its oral segment with Close Up.


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In 1974, a plant was set up in Taloja, in 1976 at Haldia and in 1977 at Jammu for its

industrial chemicals.

In 1978, company launched Fair & Lovely cream.

In 1983, unit was set up in Chandwana for manufacturing synthetic detergents.

In 1986, a unit was set in Hyderabad to diversify into agro products.

In 1987, they launched Breeze soap and in 1988 they set up a manufacturing plant in

Pondicherry for its personal care products.

In 1989, a detergent soap plant was set up in Sumerpur and a toilet soap plant in Orai.

In 1992, HUL was recognized as Star Trading House by Government and in the sameyear it launched Pepsodent and Mentadent-G

In 1993 (April), HUL merged with Tata Oil Mills Company and in the same year it

launched Vim dish-wash bar.

In 1994, HUL and US-based company Kimberely-Clark Corporations formed a 50-50

joint venture and launched Huggies diapers and feminine care products.

In 1995, HUL formed another 50-50 joint venture with another Tata company, Lakme Ltd

to market cosmetics.

In 1996, Brooke Bond Lipton India Ltd. merged with HUL to market tea and in the same

year it also merged with Ponds India Ltd.

In 2000, HUL acquired 74% stake in Modern Food Industries Ltd., the first public sector

company to be divested by Government of India.


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Step toward Retail Innovation for tapping

Rural Market.

Prior to the late 1990s, traditional modes of reaching to rural markets

through wholesalers and retailers were used.

Used van campaigns.

Vans replaced by vans belonging to redistribution Stockists who served

selected group of market.

25% of the villages was tapped and a vast section of rural market was left

out.

In 1998, Project Streamline was conceptualized to tap more rural market

and reach out 1,00,000 retail outlets by 1999.

Project aimed at covering 50% rural market by 2003.

HLL appointed Rural Distributor and they were attached to 15-20 sub-

stockists who were expected to drive distribution in neighboring villages

through unconventional modes.

This project helped HUL in extending rural reach upto 37% in 1998.


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Consumption of personal products by rural consumers was very low.

In 1998, the Personal Product Divison of HUL started Project Bharat

which was a massive rural home-to-home exercise to overcome the above

stated issue.

Company vans visited villages to educate customers across the country and

distributed low-unit price samples of personal care products.

products benefits and usage were shown with the help of product

demonstration and video shows.

In Phase I HUL targeted villages having population 5000 and above and in

Phase II targeted villages with population 2000-5000.

Micro credit was offered by banks to group of villagers below the poverty

line and HUL trained them to use it to buy companys products and sell

them at profit.


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Phases In Retail Innovation


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Phase 1- Project Bharat- Awareness

HUL implemented Major Direct Consumer

Program called Project Bharat.

It covered 2.2 crore homes. Each home was given a box at a special price

of Rs.15 comprising of low unit pack of

Hair-care ( Clinic shampoo)

Dental ( Pepsodent toothpaste)

Skin-care ( Fair& lovely)

Body care ( Ponds dream flower talc)

Educational leaflets


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It was supported by audio-visual demonstrations,

film songs and mythological serials interspersedwith ads of Lever products.

160 vans and over thousand promoters wereused. (sales staff of the distributors or some

other private operator) The cost came up to roughly Rs. 13 crore.

Each van, equipped with a TV, VCR and 6

promoters. The Project helped eliminate barriers to trial, and

strengthened salience of both perticularcategories and brands.


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Phase-2 Operation Streamline-

Accessibility

Launches in 1998 to extend their distribution.

Goods distributed from C&F agents to the Re-distributor who in turn passes to Star sellers.

Star Sellers sells everything. Opened new distribution channels that covered

territories beyond 7,500 distributors.

Doubled the reach of the company.

Distribution channel now covers 60% of the villageswith population greater than 2,00 having motorableroads.


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For additional 30,000 villages it created a super

stockiest: sub stockiest structure. Super stockiest in bigger towns service the sub

stockiest.

Sub stockiest are paid 1-2 percent more margins than

the retailers.

This is given to cover sub-stockiests costs in servicing

retailers in his area.

Under the Indirect Coverage method, company vansreplaced by vans belonging to distribution Stockiest.

They serviced a select group of neighbouring markets.


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Phase III Project Shakti

A Shakti Entrepreneur


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Project Shakti

Project Shakti: Shaded areas


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Product Innovation

In 1988-In order to counter Nirma they have

launched non-soap detergent powder in name

of Wheel in the rural market

Within a decade Nirma and Wheel targeting

the rural consumer started sharing equal

market share of 38 %.


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In 1980-In order to meet the challenges given

by CavinKare(by launch of chick

Shampoo),HUL launched Clinic and Sunsilk

shampoo in small sachets.

LUP packs was successful in rural market to

convert the consumer from soap to shampoo.

95 % of the total sales of shampoo in the rural

market is through sachets till early 90s.


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In early 2000- in order to increase penetration ofHUL products in rural market they introducedSurf Excel,Ponds talcum powder ,Fair and lovely

etc. in LUP packs. In May 2000 HUL launched AIM toothpaste to

compete with Dabur toothpaste was price atRs.3per 20gm,Rs. 8 per 50 gm and Rs.16 for 100

gm for rural consumer in plastic flow wrapsrather than traditional cartons, so the they couldbe hanged along side of the store.


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But after few months of its launch they decided

to withdraw the product from the market and

decided to put its effort to increase the

penetration of Pepsodent and Closeup.

Rather than 30 seconds advertisement, in order

to increase the awareness of their products in

rural market they start using unconventionalmedia through colorful flyers, entertaining

jingles, street plays, cinema vans etc.


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Phase V

Replication of Project Shakti

The Anglo-Dutch company Unilever which owns a

majority stake (52%) in Hindustan Unilever Limited hasbegun replicating Project Shakti Model in several

international markets.

Project Shakti is being customised and adapted in other

Unilever markets such as Sri lanka, Bangladesh,Vietnam etc

.


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Shaktimaans to Power rural reach

Hindustan Unilever Ltd will push 25,000

shaktimaans (distributors on cycles) into action in 1.5

lakh villages of India.

HUL has completed a pilot project ofShaktimaans in

Orissa

HUL plans to triple its rural presence in India in a

years time using shaktimaans model.


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Conclusion

Through Project Shakti and Shaktimaan, HUL will

considerably increase its sales and revenues from the rural

markets of India.

The initiatives by HUL such as above will further increasecompetition between HUL,ITC and Godrej Consumer

Products to attract the rural consumers of India.

HUL has touched the life of Indian masses with two out of

three Indians using the companys products. HUL is also one of the country's largest exporters, it has

been recognised as a Golden Super Star Trading House by

the Government of India which signifies HULs importance

in the fast moving consumer goods segment in India.

hul - group ii

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