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A Case Study on HUL’s
Target and Positioning
    The journey from „L‟ to „U‟
Introduction
 India's 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 country's 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 All
Categories




                  Source: AC Nielsen – 2008 Value Shares.
Understanding the „U‟
Icons


  (HAND & FLOWER): Hand is a                (HAIR): A symbol of beauty and
 symbol of sensitivity, and care .                   looking good..
  Flower represents fragrance.




                          (SPARKLE): Clean, healthy and
                              sparkling with energy.
Product Line Segmentation
     and Positioning
Product Mix
Home and Personal Care
 Product Line
Personal Wash – Product Portfolio
 Product Line – Depth
Personal Wash
 In this segment HUL had several leading brands
 in various price segments
HUL‟s Soap Marketshare
  57%         55%             55%
                                               52%




        10%         9%                    9%
                         8%         8%
                                                     5%




                                         Source: Company Website.
Segmentation – Personal Wash
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 & cleanser
Reach their target market through
  Advertisement
  Price Range: brands positioned at different price points
  Packaging
Product Portfolio – Laundry &
Cleansers
Segmentation: Laundry &
Cleansers
Positioning
Detergent 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.
Positioning
Dishwasher Segment
  Vim Liquid
  Vim Powder
  Vim Bar
Surface 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  Vigor – launched in 1993 – withdrawn in a year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 'Pond's in 1846
 In 1886 it was relaunched as Pond's Extract and
 in 1914 Pond's Cold Cream
 In 1955 Pond's Extract Company merged with
 Chesebrough Manufacturing and in 1987
 Unilever purchased Chesebrough-Pond's
Competitors
 Nivea
Hair Care
Segmentation
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)
Oral Care
Competitors of HUL in Oral Care




Pepsodent            Colgate
Close Up             Meswak
                     Dabur Red
                     Anchor
Toothpaste Market Share
   48%
              46%        47%



     32%
                                    30%       30%




                    7%         7%      8%

         2%




                           Source: Company Website.
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.
Foods
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
 Kissan Annapurna Salt:
 Kissan Annapurna Atta:
  Targeted at urban consumers preferring low fatty
  foods
  USP- „Extra Fibre‟
 Knorr Soups:
  Quick Meals
  Targeted at urban consumers
Positioning
 Cornetto:
  Targeted at young adults and older
  people.
 Feast:
   Targeted at teenagers
 Max:
   Targeted at children
Beverages
Segmentation
Positioning
 Brooke Bond and Lipton – two main
 umbrella brands
 Brooke Bond:
   Stood for refreshment and aroma
 Lipton:
   Stood for youth and vitality
Focus and Priorities
Ensure competitiveness across the portfolio,
particularly at the mass end
Continue to invest in emerging categories and
segments
Strengthen/ build Processed Foods, Water and
Premium Personal Care
Drive focus and speed alongside leveraging scale
Significantly strengthen Go-to-Market capability
Continued focus on Costs & Cash
SWOT Analysis
Strengths:
  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 Analysis
Weaknesses:
 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 Analysis
Opportunities:
 Large domestic market – over a billion
 populations
 Untapped rural market.
 Changing Lifestyles & Rising income levels, i.e.
 increasing per capita income of consumers.
SWOT Analysis
Threats:
 Unfavourable raw material prices due to
 inflation, reducing profitability.
 Competitors focusing on a particular
 product and eating up HUL‟s share.

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Hul template

  • 1. A Case Study on HUL’s Target and Positioning The journey from „L‟ to „U‟
  • 2. Introduction India's 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 country's largest exporters The mission – “add vitality to life.”
  • 3. The Vision To earn the love and respect of India, by making a real difference to every Indian.
  • 4. HUL Domination Over All Categories Source: AC Nielsen – 2008 Value Shares.
  • 6. Icons (HAND & FLOWER): Hand is a (HAIR): A symbol of beauty and symbol of sensitivity, and care . looking good.. Flower represents fragrance. (SPARKLE): Clean, healthy and sparkling with energy.
  • 7. Product Line Segmentation and Positioning
  • 9. Home and Personal Care Product Line
  • 10. Personal Wash – Product Portfolio Product Line – Depth
  • 11. Personal Wash In this segment HUL had several leading brands in various price segments
  • 12. HUL‟s Soap Marketshare 57% 55% 55% 52% 10% 9% 9% 8% 8% 5% Source: Company Website.
  • 14. 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 & cleanser Reach their target market through Advertisement Price Range: brands positioned at different price points Packaging
  • 15. Product Portfolio – Laundry & Cleansers
  • 17. Positioning Detergent 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”
  • 18. 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.
  • 19. Positioning Dishwasher Segment Vim Liquid Vim Powder Vim Bar Surface 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
  • 20. Product Portfolio – Cosmetics, Deo‟s, Skin Care
  • 21. 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
  • 22. 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
  • 23. Ponds Theron T. Pond, a pharmacist from New York, introduced 'Pond's in 1846 In 1886 it was relaunched as Pond's Extract and in 1914 Pond's Cold Cream In 1955 Pond's Extract Company merged with Chesebrough Manufacturing and in 1987 Unilever purchased Chesebrough-Pond's Competitors Nivea
  • 26. 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
  • 27. 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)
  • 29. Competitors of HUL in Oral Care Pepsodent Colgate Close Up Meswak Dabur Red Anchor
  • 30. Toothpaste Market Share 48% 46% 47% 32% 30% 30% 7% 7% 8% 2% Source: Company Website.
  • 31. 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.
  • 32. Foods
  • 33. 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.
  • 34. Positioning Kissan Annapurna Salt: Kissan Annapurna Atta: Targeted at urban consumers preferring low fatty foods USP- „Extra Fibre‟ Knorr Soups: Quick Meals Targeted at urban consumers
  • 35. Positioning Cornetto: Targeted at young adults and older people. Feast: Targeted at teenagers Max: Targeted at children
  • 38. Positioning Brooke Bond and Lipton – two main umbrella brands Brooke Bond: Stood for refreshment and aroma Lipton: Stood for youth and vitality
  • 39. Focus and Priorities Ensure competitiveness across the portfolio, particularly at the mass end Continue to invest in emerging categories and segments Strengthen/ build Processed Foods, Water and Premium Personal Care Drive focus and speed alongside leveraging scale Significantly strengthen Go-to-Market capability Continued focus on Costs & Cash
  • 40. SWOT Analysis Strengths: 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)
  • 41. SWOT Analysis Weaknesses: 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.
  • 42. SWOT Analysis Opportunities: Large domestic market – over a billion populations Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.
  • 43. SWOT Analysis Threats: Unfavourable raw material prices due to inflation, reducing profitability. Competitors focusing on a particular product and eating up HUL‟s share.