swot and pestel analysis of HUL.

1. SWOT & PESTEL ANALYSIS OF
HUL
Presented By-
1.Riza Arora (Roll No.17068504168)
2.Arpit

3. - In this analytical model, strengths and weaknesses are considered as the internal factors,
completely controllable by the organization itself. Opportunities and threats, on the other
hand, are regarded as external factors that might or might not be controllable by the
organization.
- SWOT analysis is a dynamic part of an organization’s business and management
- The SWOT analysis definition takes into consideration the weaknesses and strengths of
and opportunities it faces in the external environment. Based on these factors, the
action, combining its strengths with imminent opportunities while trying to overcome
SWOT ANALYSIS –
Strengths, Weakness, Opportunities,
Strengths

5. )
•Leader in FMCG Market: Two out of three Indian consumers use HUL products, according to Nielsen Study. To establish
itself as a market leader in the Indian market, HUL has adopted a targeted approach in the supply chain & other things.
•Most Preferred Brand: From soap to mineral water, HUL shapes the lives of 1.3 billion people every day. HUL’s presence in
the consumer market with its 20 categories such as soap, tea, detergent, shampoo, etc., and its wide range of products has
helped it occupy a large share of shelf space in grocery and department stores, which explains the acceptance/demand for its
products in the market.
•Innovations: Hindustan Unilever Research Centre (HURC), Mumbai, and Unilever Research India, Bangalore, both research
facilities were merged at one location in Bangalore in 2006. The people at this facility are continuously working on developing
innovations in products and manufacturing processes that will help HUL establish itself as a frontrunner in the consumer
goods market.
•Wide Range of Products: It offers product categories, namely, oral care, personal care, household surface care, textile care,
and pet food, etc., and has a wide range of products in all product categories.
•Huge Market Share: Due to high market penetration, HUL has managed to maintain its high market share in various product
categories.
•Comprehensive and automated supply chain: HUL products are now a household name thanks only to the four-tier
distribution system.
1. Direct coverage within a city of fewer than 50,000 people through a popular speciality retailer.
2. Indirect coverage: targets were villages closer to broader commercial markets.
3. Streamline Use of the rural wholesale market to access markets that are not accessible by road.
4. the Shakti Project targets existing SHGs (self-help groups) for women in small villages. Based on their accessibility and
business opportunities, the markets have been segmented.
•Most Reputed Brand: The brand has always been recognized as a leading FMCG company and enjoys an excellent
reputation.

6. W Stands For Weaknesses ( Internal
Factor )
•Declining Market Share: competitors focusing on a particular product
eating up HUL’s share, such as Ghadi & Nirma detergents eating up HUL’s
market share in wheel washes.
•Large selection of brands in various product categories: A large portfolio
of brands often leads to incorrect positioning. Price placement in some
segments ensures low price competition, such as the market share gained by
Amul from Kwality.
•Limited Market Share: The market share of HUL is limited due to the
presence of other strong FMCG brands.

7. O Stands For Opportunities ( External
Factor )
•Expanding the market: Greater penetration of rural markets through Project
Shakti AMMA and the transition from unorganized to organized enterprises will
lead to further expansion of the consumer market.
•Awareness of the use of consumer products: advertising, word of mouth and
medical prescribing raise people’s awareness of the use of consumer products,
leading to an increase in the rate of use of these products.
•Growing income level: due to a stable political situation, higher literacy rate
and regulated inflation, people’s disposable income is increasing, leading to
higher demand and changing lifestyles.
•Ayurvedic products: May start manufacturing or marketing Ayurvedic products
under the brand name of HUL.
•Partnerships: Mergers and acquisitions can further strengthen the brand in a
long run.

8. T Stands For Threats ( External Factor )
•Market competition: with the increasing number of local and national suppliers, it is
becoming very difficult for businesses to differentiate themselves from others. There
is also a risk of counterfeit products destroying the brand image in the market.
•Price of raw materials: rising prices of raw materials will lead to further increases in
prices. The further price increase will lead to a decrease in sales, profit margins and
brand switching.
•Buyer Power: In a highly diversified consumer goods market, where many brands
are promising different benefits, it is very difficult for consumers to get loyal to a
particular brand. This leads to brand switching where consumers have the power to
choose a brand based on various factors such as availability, recommendations from
reference groups, preferences and price.
•Government regulations: Changing government norms and regulations can also
directly affect business policies and practices.

9. PESTEL ANALYSIS OF
HUL
- PESTEL Analysis of HUL (Hindustan Unilever) analyses the brand on its
business tactics. HUL (Hindustan Unilever) PESTEL Analysis examines the
various external factors like political, economic, social, technological (PEST)
which impacts its business along with legal & environmental factors.
- The PESTEL Analysis highlights the different extrinsic scenarios which impact
the business of the brand.
- PESTEL analysis is a framework which is imperative for companies such as
HUL (Hindustan Unilever), as it helps to understand market dynamics & improve
its business continuously.

10. Political Factors that Impact Hindustan
Unilever Limited
- Role of Non-Government Organization, Civil Society & Protest Groups – The country has a vibrant civil society community and Hul's Resisting
should build bridges with them and seek out areas of co-operations. Civil society groups are influential not only in policy making but also in building a
society wide narrative.
- Government Regulations and Deregulations – The government is adhering to all the rules and regulations under World Trade Organization norms.
There is consistency in both policy making and implementations of those policies.
- International Trade & Other Treaties – The country has a good record of adhering to international treaties it has done with various global partners.
The government of each party has adhered to the treaties done by previous governments, so there is a consistency in both rule of law and
regulations.
- Role Local Governments Play – Local governments are highly influential in the policy making process and implementation as most of the policies
and regulations are implemented by the local government as enforcement agencies mostly report to local government in their own states regarding
various laws.
- Democracy & Other Democratic Institutions – According to Thomas J. DeLong, Mona Sinha the democratic institutions are needed to be
strengthened further so that business such as Hul's Resisting can thrive in an open, transparent and stable political environment. Strengthening of
democratic institution will foster greater transparency and reduce the level of corruption in the country.
- Judiciary Independence – In the matter of commercial and business decisions, judiciary of the country is independent to a large extent. Business do
face problem when the conflict is between public interest and proprietary technology similar to ruling in South Africa where government & judiciary
allowed generic AIDS drug irrespective of patents of global companies.
- Size of Government Budgets – both Local Governments and National Government – The government at both national level and local levels are
running deficit budgets which is boosting growth in the short term but may lead to increase in inflation over medium term. The bond rating of national
government is investment grade.
- Likelihood of Entering into an Armed Conflict – From the information in the Hindustan Unilever Limited case study, I don’t think there is a likelihood
of country entering into an armed conflict with a neighboring country.

11. Economic Factors that Impact Hindustan Unilever
Limited
- Consumer Disposable Income – The household income of the country has increased constantly in the last decade and half, compare to the USA
market where household income is still below 2007 levels and not increased in real terms since early 1980’s. Hul's Resisting can leverage this
trend to expand the market beyond its traditional customers by employing a differentiated marketing campaign.
- Demand Shifts from Goods Economy to Service Economy – The share of services in the economy is constantly increasing compare to the share
of manufacturing, goods, and agriculture sector.
- Inflation Rate – The inflation rate can impact the demand of Hul's Resisting products. Higher inflation may require Hul's Resisting to continuously
increase prices in line of inflation which could lead to lower levels brand loyalty and constant endeavors to manage costs. Cost Based Pricing could
be a bad strategy under such conditions.
- Foreign Exchange Rate – Number of companies have incurred losses in past few years because of forex risk in – Venezuela, Brazil, and
Argentina. Hul's Resisting should be careful about the history of forex risk before entering new market. Many US companies have incurred losses in
Mexico in regular forex crisis in that country.
- GDP Trend & Rate of Economic Growth – The higher GDP growth rate signals growing demand in the economy. Hul's Resisting can leverage this
trend by expanding its product range and targeting new customers. One way to start is by closely mapping the changes in – consumer buying
behavior and emerging value proposition.
- Price Fluctuations in both Local and International Markets – Compare to the level of quantitative easing in last decade the prices of Hul's
Resisting products and prices of overall products have remained sticky in the US market. Hul's Resisting should consider the fact that at deficit
levels of United States in an emerging economy can lead to rampant inflation and serious risks of currency depreciation.
- Inequality Index / Ranking on Gini Index – Gini Index and level of inequality are a great barometer for harmony and development of a society. If
there is huge income inequality in the society then the likelihood of conflict and crime increases. It can lead to uncertainty and suppression of
consumption in both short term and long term.

12. Limited
- Education Level in Society – Education level of the society impacts both the quality of jobs and level of income. High
level of education often results in better jobs, higher income and higher spending on complex and aspirational products.
- Attitude towards Savings – The culture of saving in US and China is totally different where savings rate in China is
around 30% , it is well below 15% in United States. This culture of consumption and savings impact both type of
consumption and magnitude of consumption.
- Attitude towards Authority – Various cultures in different part of the world have different attitude towards authority. In
Asia authority is respected while in west it is something to rebel against. Hul's Resisting should carefully analyze the
attitude towards authority before launching a marketing campaign for its products and services.
- Level of Social Concerns & Awareness in Society – Higher level of social concerns in the society often result higher
consumer activism and pressure from non-governmental organizations, & pressure groups.
- Power Structure in Society – Hul's Resisting should carefully analyze both - What is the power structure in the society?
How it impacts the demand in the economy. For example the power structure in US economy is slowly moving towards
the older generation as that generation has higher disposable income compare to the younger generation.
- Nature of Social Contract between Government & Society – Before entering into a market Hul's Resisting needs to
understand the nature of social contract between government and society. For example it has been extremely difficult
for US companies to enter UK health market as UK health system is a nationalized system and everything goes through
contracts at national level.
- Immigration Policies and Level of Immigration – What are the immigration policies of the country, what is the level of
immigration, and in which sectors immigration is encouraged. This will enable the Hul's Resisting to determine – if
required can it hire talent globally to work in that particular market.
- Societal Norms and Hierarchy – What sort of hierarchy and norms are acceptable in society also influence the types
and level of consumption in a society. In highly hierarchical societies the power of decision making often reside at the
top

13. Technological Factors that Impact Hindustan Unilever
Limited
- Technology transfer and licensing issues for Hul's Resisting – laws and culture of licensing of IPR and other digital
assets should be analyzed carefully so that Hul's Resisting can avoid shakedowns and IPR thefts.
- Acceptance of Mobile Payments and Fintech Services – One of the areas where US are lacking behind China is
Mobile Payments. Hul's Resisting should assess what are preferred choice of mobile payments in local economy and
chose the business model based on it.
- Transparency & Digital Drive – Hul's Resisting can use digitalization of various processes to overcome corruption in
the local economy.
- Cost of Production and Trends – Hul's Resisting should assess - What are the cost of production trends in the
economy and level of automatization. We at EMBA Pro believe that in near future the sector most disrupted by
technological innovation is manufacturing and production.
- Level of Acceptance of Technology in the Society – Hul's Resisting has to figure out the level of technology
acceptance in the society before launching new products. Often companies enter the arena without requisite
infrastructure to support the technology oriented model.
- Integration of Technology into Society & Business Processes – Uber failed in China because it tried to enter before
smartphone were widespread in China. Hul's Resisting should build a strategy that can integrate societal values,
infrastructure, and Hul's Resisting business model.
- Mobile Phone & Internet Penetration – Hul's Resisting should assess the level of internet and mobile phone
penetration in the country as it will it in building a requisite business model based on local needs and realities.
- E-Commerce & Related Infrastructure Development – As E-Commerce is critical for Hul's Resisting business model. It
should evaluate the e-commerce infrastructure, technology infrastructure etc before entering a new market.

14. Environmental Factors that Impact Hindustan
Unilever Limited
- Influence and Effectiveness of Environmental Agencies – The role of environment standards
enforcement agencies is critical in safeguarding norms. But often in emerging countries these agencies
delay the process as a tactic to extract bribes. Hul's Resisting should be aware of presence of such
practices in a country.
- Recycle Policies – What are the recycle policies in prospective market and how Hul's Resisting can
adhere to those policies.
- Influence of Climate Change – How climate change will impact Hul's Resisting business model and
supply chain. For example if the supply chain is not flexible it can lead to bottlenecks if shipments from
one part of the world are delayed because of sudden climate shift.
- Per Capita and National Carbon Emission – What is the per capita carbon emission of the country and
what is the overall level of carbon emissions of the country. This will help in better predicting the
environment policy of the country.
- Level of Consumer Activism Regarding Environmental Concerns – Hul's Resisting needs to know the
level of consumer activism regarding environmental concerns is. It will help Hul's Resisting in both
developing environmentally friendly products and thwarting PR stumble blocks.
- Corporate Social Responsibilities Culture – Are Hul's Resisting present CSR efforts applicable in the new
market or does it needs to have new initiative to cater to the prospective market.
- Waste Management – What is the policy of waste management in the prospective market and how Hul's
Resisting can adhere to the waste management requirements in that market.

15. Legal Factors that Impact Hindustan Unilever
Limited
- Adherence to Common Law – Is the country following common law which is uniform for all parties –
whether domestic or international. If there is arbitrariness in the judicial process then Hul's Resisting can’t
be sure of the judgments.
- Transparency in Judiciary System & Processes – Transparency is essential for fair and consistent
decision making. If the process is consistent and transparent then Hul's Resisting can plan ahead with
greater conviction.
- Securities Law – What are the securities law in the country and what are the conditions to list the
company on national or regional stock exchange.
- Data Protection Laws – Hul's Resisting needs to assess what are the data laws in the country and what
it needs to do to comply with them. For example most of EU countries now want the EU citizen data to be
saved in EU countries only.
- Time Taken for Court Proceedings – Even if the country has best of the laws, it doesn’t mean much if
they can’t be enforced in a timely manner. Hul's Resisting should do a primary research regarding how
much time it often takes to conclude a court case in the country given the sort of legal challenges Hul's
Resisting can face.
- Consumer Protection Laws – Hul's Resisting needs to know what are the consumer laws, what is the
rate of enforcement, what is the attitude of authorities towards consumer protection laws, and what is the
role activist groups in enforcement of consumer protection laws.
- Business Laws – Before entering into new market – Hul's Resisting has to assess what are the business
laws and how they are different from home market.

16. REFERENCES-
- HUL (Hindustan Unilever) PESTLE Analysis | MBA Skool
- PESTEL/PEST Analysis of Hindustan Unilever (HUL) | Free PESTEL Analysis
- Unilever HUL Homepage | Unilever
- On HUL | PDF | Swot Analysis | Economies (scribd.com)

17. THANK-YOU