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A Case Study on HUL’sTarget and Positioning The journey from „L‟ to „U‟
Introduction Indias largest Fast Moving Consumer Goods company HLL formed in November 1956; 2007:- HLL to HUL Unilever owns a majority stake (52%) in Hindustan Unilever Limited. One of the countrys largest exporters The mission – “add vitality to life.”
The Vision To earn the love and respect of India, by making a real difference to every Indian.
HUL Domination Over AllCategories Source: AC Nielsen – 2008 Value Shares.
Positioning Lifebuoy: Positioned as a family soap; Synonymous with health and hygiene Lux: Positioned as a film stars choice Product extensions – Fragrance and ingredients Variants like moisturizer, sunscreen & cleanserReach their target market through Advertisement Price Range: brands positioned at different price points Packaging
PositioningDetergent Segment Surf excel: A premium version of surf “Daag Ache hai” Surf: Positioned as value for money “Surf ki Kharidari me hi Samajdhari” Wheel: Low priced detergent. Introduced to compete with Nirma. - “Mehnat se azaadi”
Sunlight A Heritage brand In the form of detergent cake. Value added brand i.e. priced over Wheel but below Rin. Famous in WB & Kerala.
PositioningDishwasher Segment Vim Liquid Vim Powder Vim BarSurface Cleaner: Not much success initially Vigor – launched in 1993 – withdrawn in a year Domestos – also bombed in the market Domex – Launched in 1997 – became the market leader.Competitor: Lizol at Rs.38/500ml ; Domex : Rs.32/500ml
Product Portfolio – Cosmetics,Deo‟s, Skin Care
Products Fair and Lovely Fairness cream launched in 1970‟s Indian Women place a premium on Fairness. Emerged as a market leader. Ponds Taken over by HUL in 1995 Product line extension From Talc and Face wash to various skin care products Lakme Taken over by HUL in 1998 Leading Player in Colour Cosmetic Market
Lakme Named after the French opera Lakmé Lakme started in 1952 as a 100% subsidiary of Tata Oil Mills In 1998 Tata sold off their stakes in Lakmé Lever to HLL It offered a range of cosmetics with nail polishes & lipsticks from the early 80‟s It has introduced a range of skincare products from 1987.Competitors Revlon, Maybelline, L‟Oreal
Ponds Theron T. Pond, a pharmacist from New York, introduced Ponds in 1846 In 1886 it was relaunched as Ponds Extract and in 1914 Ponds Cold Cream In 1955 Ponds Extract Company merged with Chesebrough Manufacturing and in 1987 Unilever purchased Chesebrough-PondsCompetitors Nivea
Positioning HUL is the market leader in the hair wash category with 65% market share. Dove: Targeted towards the upper and upper middle class; Uses the concept of natural beauty Ads use common women and their „real stories‟ Sunsilk: Positioned as the hair expert Identified different hair needs Ads targeted young girls (gang of girls), used style icon Priyanka Chopra
Positioning Clinic plus: Targeted towards the family. Packaging shows family with healthy hair Ads use kids as influencers „n use the mother-daughter bond Clinic all clear: Targeted towards the youth. Positioned as an anti- dandruff shampoo Endorsed by celebrities (earlier men and now women)
Positioning Pepsodent: Targeted towards the entire family. USP- anti-bacterial agent triclosan Ads used children as influencers Prices less than Colgate (50,100,200 gms) Close-up: Targeted towards the youth. Positioned as a product for mouth freshness. Common theme in all ads was confidence.
Positioning Kissan Fruit Kick Spreads: Targeted at people above 15 USP- no added preservatives, low on calories Kissan Jams: Targeted at kids The „jammy‟ ad campaign with Rahul Dravid was very popular with children.
Positioning Brooke Bond and Lipton – two main umbrella brands Brooke Bond: Stood for refreshment and aroma Lipton: Stood for youth and vitality
Focus and PrioritiesEnsure competitiveness across the portfolio,particularly at the mass endContinue to invest in emerging categories andsegmentsStrengthen/ build Processed Foods, Water andPremium Personal CareDrive focus and speed alongside leveraging scaleSignificantly strengthen Go-to-Market capabilityContinued focus on Costs & Cash
SWOT AnalysisStrengths: Strong brand portfolio, price quantity & variety. Innovative Aspects. Strong distribution networks in both urban and rural areas. Solid Base of the company. Corporate Social Responsibility (CSR)
SWOT AnalysisWeaknesses: Strong Competitors & availability of substitute products. Price positioning in some categories allows for low price competition like Amul captured Kwality‟s market. High Advertising Costs.
SWOT AnalysisOpportunities: Large domestic market – over a billion populations Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.
SWOT AnalysisThreats: Unfavourable raw material prices due to inflation, reducing profitability. Competitors focusing on a particular product and eating up HUL‟s share.