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Chapter I

INTRODUCTION OFHINDUSTAN UNILEVERLIMITED

Hindustan Unilever is India's largest Fast Moving Consumer Goods Company.

They meet everyday needs of millions of Indians, right from the morning cup of

tea to brushing at bedtime. Their brands touch the lives of more than 700 million

Indians. Soaps and detergents includes soaps, detergent bars, detergent powdersand scourers. Personal products include products in the categories of oral care, skin

care (excluding soaps), hair care, talcum powder and color cosmetics. Beverages

include tea and coffee. Foods include staples (atta, salt and bread) and culinary

products (tomato-based products, fruit-based products and soups). Ice creams

include ice creams and frozen desserts. Others include chemicals and water

business

Hindustan Unilever Ltd was incorporated in the year 1933 as Lever Brothers India

Ltd. In 1956, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd mergedwith the company and the name was changed from Lever Brothers Ltd to

Hindustan Lever Ltd. The company acquired Lipton in 1972, and in 1977 Lipton

Tea (India) Ltd was incorporated. Brooke Bond joined the Unilever fold in 1984

through an international acquisition. Pond's (India) Ltd joined the Unilever fold

through an international acquisition of Chesebrough Pond's USA in 1986.

The liberalization of the Indian economy, started in 1991, clearly marked an

inflexion in the company's and the Group's growth curve. The removal of the

regulatory framework allowed the company to explore every single product and

opportunity segment, without any constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers.

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HINDUSTAN UNILEVER LIMITED

TYPEPublic Company

TRADED ASBSE:500696 BSE sensex constituent

INDUSTRYConsumer Goods

FOUNDED1932

HEADQUARTERSMumbai,Maharashtra,India

PRODUCTSFoods,Beverages,cleaning agents and Personal Care Products

REVENUERs.22116 crore

NET INCOMERs.2691 crore

EMPLOYEES16500

PARENTUnilever Plc (52%)

WEBSITEhttp://www.hul.co.in/

Key Executives:

Harish Manwani , Chairman

Nitin Paranjpe , Managing Director & CEO

Aditya Narayan , Director

S Ramadorai , Director
http://www.hul.co.in/http://www.hul.co.in/http://www.hul.co.in/http://www.hul.co.in/

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MISSION

We Work to create a Better future every day.

We help people feel good, look good and get more out of life with brands and

services that are good for them and good for others.

We will inspire people to take small, everyday actions that can add up to a big

difference for the world.

We will develop new ways of doing business with the aim of doubling the size of

our Company while reducing our environmental impact.

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STRATEGY AS A WHOLE

It is this relationship with our consumers that we would like to build upon and

strengthen. We will continue to straddle the consumer price pyramid to meet the

needs and aspirations of diverse consumers across India. Our stated strategy is to

grow our business competitively, profitably and sustainably. The key pillars to

achieving this are:

Brands and innovation

Market place

Continuous improvement

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Chapter II

MARKETING STRATEGY 2009-10

Stated strategy is to grow our business competitively, profitably and sustainably.

The key pillars to achieving this are:

Brands and innovation

Market place Continuous improvement

BRANDS AND INNOVATION

Brands and innovation are at the heart of everything they do. Their believe that

brands remain fresh, young and relevant if they are constantly innovating behind

them. Innovation in terms of products, propositions, communication and evenmedia deployment. As incomes and aspirations change, consumer habits, attitudes

and behaviour change too. This constant change is something that are obsessed

about. An obsession to ensure that their portfolio of brands is evolving

continuously to exploit these changes.

To do this successfully, consumer understanding is vital. They are

constantly observing where and how consumers shop for and use our brands.

It is this undying curiosity that enables them to be clear about what

brands need to do. They use this clarity to shape innovation programme by

developing products and solutions that are relevant for consumers in India. They

leverage Unilever's global technology expertise and the research and

development capabilities in India to bring innovative products that meet the

needs of consumers within India.

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Some of their major innovations this year have been: Pure it Compact-in-home

water purifier an affordable safe drinking water solution for low-income

consumers priced at Rs. 1,000, Knorr Soupy noodles providing wholesome

nutrition to children's fun snacking moments, Brooke Bond Sehatmand tea

offering combined benefits of health with immunity for low-income ruralconsumers and the launch of Cif multi -purpose cleaner .

Equally, there have been several innovations on their existing big brands that

delivered significant superior product and consumer experience. These included

the relaunch of Lux, Wheel, Clinic Plus, Hamam, Liril and Pears.

MARKET PLACE

The biggest opportunity lies in growing the size of their market through

innovations and activities that drive market development. Towards this end, They

will further strengthen and broaden their relationship with customersworking

together on areas of mutual benefit such as consumer research, shopper behaviour

and merchandising. Outstanding customer service and great in-store execution will

be key to sustain winning relationships with customers and to grow markets.

While General Trade will continue to be the primary

channel for distribution addressing diverse consumers across both urban and rural

markets, Modern Trade is an emerging channel for the future and winning in

this channel is one of the key priorities for them. They invested ahead of time to

build capabilities to serve their Modern Trade customers better while at the same

time partnered with them to win with shoppers at the point of sale.

Distribution has always been a competitive advantage for them.

They are further building on this by significantly increasing their direct coverage

while also improving the quality of coverage. They have deployed an end-to-endtechnology solution which helps reduce inventory cycles while enabling optimum

service levels. All their salesmen are equipped with hand-held devices which

help to improve on-shelf availability of their products while also building

assortment at individual store level.

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Similarly, their merchandisers have been equipped with hand-held devices to

improve in-store display of their products so that products are top-of-mind

whenever a shopper makes a purchase. This year , they rolled out a unique and

innovative concept of 'Perfect Stores' as part of their endeavor to win with

consumers at the point of sale.

Project Shakti represents a unique and unmatched rural distribution model and

offers us tremendous opportunities in accessing rural consumers. They intend to

further leverage the Shakti network to significantly enhance their direct

distribution coverage in rural markets. This will not only extend their presence in

'difficult-to-reach' stores in rural areas but also strengthen the Shakti network.

CONTINOUS IMPROVEMENT

Delivering competitive, profitable and sustainable growth requires a philosophy of

continuous improvement. This means being fast and flexible in the supply chain

while keeping costs competitive. It also requires them to make the most of their

scale and aim for the best return on every rupee spent.

Continuous improvement is key to developing a customer and

consumer-led, agile value chain. In this value chain, they have tremendousopportunity for improving efficiencies by leveraging their scale. They are

already doing so in our supply chain in the area of procurement and rapid

deployment of appropriate technologies. This has enabled reduction in

inventories, improved product freshness and time-to-shelf, which has resulted in

significant reduction of working capital. They prioritise speed and flexibility

in their supply chain to deliver growth. They are doing this through simple ideas.

For example, in some of their detergent factories they are running 'twin track'

on single production lines. This has helped them to nearly double their

production thus enabling better customer service while improving operating

efficiencies. Apart from this, today most of their production lines have

developed the capability of quick changeovers to meet the market demand.

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Their effort is to continuously reduce business waste and eliminate losses in

their supply chain using TPM as a key enabler . The savings generated are

ploughed back into their products. They continue to drive their supply chain to

deliver top-quality products with world class service at a competitive cost.

Return on marketing investments (ROMI) is another area where they drive

continuous improvement. ROMI is about maximising the effectiveness of our

advertising, promotional and trade investments. They have developed advanced

marketing mix modelling techniques that allow them to assess all the marketing

levers to drive growth and superior yields from marketing investment. For

example, they have identified the media elasticity of each of their brand which

helps them to optimise their advertising spends.

The company is now taking corrective action. In one of its sharpest ad campaignsever, HUL has started aggressively advertising its products across all media,

launched a micro-marketing strategy to take on regional competitors and is now

drawing up a district-wise pricing and distribution strategy. It has upped

advertising spends by 15-20%.

Last month, HUL bought advertising space for an entire day across Star India

channelsStar Plus, Star One, Star Gold, Star Utsav, Star Movies, Star World,

Channel [V], Star Jolsha, Star Pravah and Star Vijay. This was followed on

September 24 by a similar buying on Zee Network across its 25 channels.

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Chapter III



Brands and innovations are the lifeblood of their business. Their success in the

market rests on how they deploy these assets. Through their brands they keep pace

with changes in consumer lifestyles and aspirations at all income levels. They rely

on consumer insight and the use of breakthrough technology to deliver bigger and

better innovations into the market faster, supported by the very best marketing.

Their aim is to give consumers an unbeatable product experience. They are

investing in their formulations and constantly assessing their product performance

in order to drive consumer preference in blind product tests. They are doing this

both for their innovations and for their existing mixes.

Some of their key product innovations in 2010-11 have been: Rin detergentpowder that now comes with a patented technology that promises better whiteness,

Dove Shampoo in superior packaging, Ponds Dreamflower talc in a new fragrance

and Brooke Bond Sehatmand, which delivers vitamins in tea.

This year they entered new product categories with the launch of Lakme Skin

Lightening Compact, Cif surface cleaners, Sure anti-perspirant deodorant, Fair &

Lovely anti-marks eraser pen, the Ponds Gold Radiance range in Home and

Personal Care business.

In the Foods business, they entered new categories through offerings such as

Kissan Nutrismart in the malted food drinks space, Kissan Soya in the juice and

Kissan Creamy Spread in the spread segment. They are also in the process of

strengthening our presence in the services business through expansion of Lakm

Beauty Salons and Swirls ice-cream parlours and have rolled out the BRU world

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caf on a pilot basis. Great brands are also built by great communications.

Connecting emotionally with customers and educating them has often proved to be

a game changer.

Surf Excel encourages mothers to let their children have fun naturally andspontaneously. Lifebuoy educates consumers in the simple task of hand-washing

that can help avoid life threatening diseases. Pepsodent brings back little joys to

the task of brushing for kids. Red Label Tea opens a plethora of health benefits for

its consumers. They created a special 7 p.m. soup time with Knorr Soups.Great

products, superior innovation and effective marketing are essential for building

world-class brands. Throughout their history, they have been at the forefront in

developing innovative and impactful ways to build their brands.

MARKET PLACE

In 2010-11, They built on their ongoing innovations and activities to drive market

development. Outstanding customer service and great in-store execution helped us

sustain winning relationships with customers. They have restructured their front-

end selling system through a number of carefully crafted steps. They streamlined

the footprint of all their categories to ensure they can all be sold at every store

. This streamlining has led to a sharp increase in the distribution of our brands.

They also developed a specialist sales system with dedicated resources for top-endskin care and cosmetic products.2010-11 saw many new initiatives for distributors.

A tool has been developed to evaluate each distributors performance and reward

them accordingly for their achievements. It also gives managers of the Company

an avenue to review each distributors performance, discuss plans for the future

with them and help them reap greater benefits.

Next-generation technology deployed in 2010 has yielded significant execution

improvement and translated into business benefits in urban markets. The process

has been extended to rural markets as well.

Besides, the technology is now supported with improved back-end analytical

models for sharp recommendations and intelligent, scientific and outlet-specific

execution tasks that help improve on-shelf availability and hence success at every

outlet. The on-shelf availability is supported with extensive merchandising and

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visibility. The programme has tripled in the scale of operations, is significantly

more reliable, well-managed and measurable, thus improving the in-store presence

of our products.

In 2010-11, Modern Trade continued to be the fastest growing channel in themarket and winning in this channel is one of the key priorities for the Company.

The Company has partnered with customers on several important initiatives and

worked towards developing and building categories of the future.

In addition, execution and driving up on-shelf availability remains a key focus

area. These initiatives have resulted in HUL corporate shares going up in the

channel over the last two years and HUL being recognised as the Supplier of the

Year by key retailers. We also embarked on an extremely ambitious project to

further increase our distribution, which has also been a key competitive advantagefor us. Based on coverage information and extensive data mining, new markets

were identified in both urban and rural.

In 2010-11, the Company extended its relationship with Shakti and took the

initiative to the next level through Shaktimaan. Project Shaktimaan enrols an

unemployed or under-employed male member of a Shakti family to sell their

products in the surrounding villages. The initiative enhances two aspects

simultaneouslylivelihood opportunities of the Shakti family and the quality and

depth of the distribution of HUL products.

The outcomes have been tangible and manifold:

Leading market development

Establishing suitable livelihood for the under-privileged

Creating a self-sustaining business model

Accessing markets beyond the reach of traditional distribution models

By the end of 2010, there were more than 23,000 Shaktimaan representatives goingto villages across India. Shakti Programme has helped in tripling the rural footprint

by reaching out to increased outlets. The project is supported with centralised

tracking of stores along with the quality of coverage to deliver sustained sales

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HUL has gone into strategic partnerships with technology companies for such

targeted market development. For example, the companys sales persons will havein their hand-held devices all details of kirana stores in the areas they operate in.

Initiatives like this have given vital marketing lessons in consumer insights. For

example, the company found that the Annapurna atta sells more in the south than

north. Surveys found that unlike the practice in the north, people in the south eat

rotis only occassionally and prefer atta in packaged forms.

Manwani says these little things have helped HUL achieve a double-digit volume

growth in the first quarter of this year. Thats a sharp rebound considering that thecompanys performance had slipped in fiscal 2010.

While everyone was going into stores, we went into consumers homes to find out

what she wants. This is a part of the 4M of marketingmarket development,market share, margins and mood of the consumers, Manwani says.

The other part of course was constant innovation to build markets. One of the

reasons why margins rose sharply during the first quarter was better product mixdue to new launches. In the last one year alone, HUL had 30 product launches.

HUL believes there is a huge market development opportunity in countries like

India as consumption is still one-third that in Indonesia and one-seventh that inChina.

He gives the example of Dove shampoo to show how market development

initiatives have worked for the company. From zero, the company now has over 7

per cent of market share and leads in modern trade. Soupy snacks are a

differentiated offering, so is Brooke Bond Sehatmand tea, demonstrating HULsfundamental business model of straddling the pyramid.

HUL has codified how it can go about doing market development and cater to a

large number of heterogeneous consumers. In the laundry market, for example, thecompany has Wheel at the mass end, Rin the middle and Surf at the top end.

Manwani says for a company like HUL which has built brands and positions, the

challenge is how do you get people to use more, buy more, pay more, which is

uptrade. Take the example of Ponds. It was earlier known only as a cold cream, but

now it has seen significant uptrade.

In the premium range, you have Ponds age miracle and other skin care products.

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The same game is now being played in the hair conditioning segment, which has

the potential to grow as big as shampoo. HUL is confident of trebling its rural

reach in two yearsan audacious plan considering that the company wants tocreate in two years what it created in the last 25 years. But Manwani is confident of

achieving that due to the company re-emerging as thought leaders in the marketplace.

It has launched initiatives like go to market and Bushfire so that the company

can ensure reaching its products to seven million outlets instead of selling the

product in just 2,000 modern trade stores. There is a different level of challenge

here, he says.

Manwani says another important lesson (the fourth M) the company has learnt is

understanding the mood of the local consumers. Our formula is think global, act

local, as blindly transporting products without local understanding makes no sense.If you are in India, think obsessively about Indian consumers, but act global. So

find out the needs of your Indian consumer and then use global scale to provide the

best solution globally for the Indian consumer, he says.

Knorr is a perfect example of this. From just soup, it has not only moved to soupy

noodles (soups and snacks), which is a runaway success, but is now positioned as acomplete cooking aid (meal maker) for Indian housewives.

HUL has embarked upon an aggressive coverage expansion project for its rural and

urban businesses. As part of its rural marketing strategy, HUL has launchedKhushiyon Ki Doli, an initiative in Uttar Pradesh, Andhra Pradesh and

Maharashtra. During this year, over 14 million consumers would be contactedthrough this initiative in over 35,000 villages. We are strengthening our go-to-

market capability to increase our rural and urban distribution

Meanwhile, ITC is in the process of rolling out e-Choupal Version 3.0a newversion of e-Choupal which will help the company discover new anchor businesses

to insulate its existing e-Choupal model from risks of reversal in governmentsagri-reforms. E-Coupal is ITCs unique initiative to source produce from directlyfrom villagers, backedby an internet infrastructure

This expansion has been a scientifically driven process facilitated by know-howsuch as digital mapping to identify potential markets to be brought under direct

coverage. The number of distributors in rural markets has been scaled up and rural

salesmen are being equipped with hand-held terminals to facilitate order-taking

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and billing. With this initiative, HUL expects to triple its rural coverage andimprove urban coverage by 15%.


Delivering competitive, profitable and sustainable growth requires a mindset of

continuous improvement. This means being fast and flexible in the supply chain

while keeping end-to-end costs competitive. It also requires them to make the most

of our scale and aim for the best return on every rupee spent.

Continuous improvement is key to developing a consumer-led

and customer-led, agile value chain. In this value chain, they have always explored

opportunities for improving efficiencies in various forms. On an ongoing basis,

they continuously raise the bar to remain competitive on all fronts. They have beendoing so across our supply chain in the area of procurement, make and deliver,

through the following drivers:

1. Leveraging our global scale and knowledge to make our supply chain most

competitive. Regular benchmarking with global and local competitors is a

key element of this process.

2. Reduction in inventories and reduced time-to-shelf improves our product

freshness and deliver superior consumer value.

3. Prioritising speed and flexibility in their supply chain to deliver growth4. Driving TPM to continuously reduce business waste and eliminate losses in

our supply chain.

The efficiencies generated from the above initiatives are ploughed back into

enhancing their product offerings. They continue to drive their supply chain to

deliver top-quality products with world class service, at a competitive cost.Return

on marketing investments (ROMI) is an area where they have stepped up focus in

recent times. ROMI is about maximising the effectiveness of our advertising,

promotional and trade investments. They are deploying various techniques that

allow us to assess all the marketing levers to drive growth and superior yields from

marketing investment. The learnings from the past investments are being deployed

to improve the effectiveness of future activities. All marketing costs and

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assumptions are evaluated and savings are derived by stopping non-productive

activities or driving better efficiencies on the planned spends

Three years on, theUnileverCEO's words are ringing true in developed markets.

The home &personal careand foods giant is now dipping into the sales strategiesbeing deployed by outposts in developing and emerging (D&E) markets, such as

India'sHindustan Unilever Ltd(HUL), to appeal to recession-ravaged consumers

in the US and Europe.

These include selling smaller pack sizes, affordable variants of best-selling brands

for the developed world's bottom of the pyramid consumer, and single-serve sachet

variants. Company officials

say consumers indeveloped marketsplagued byunemploymentand shrinking

disposable incomeare displaying similar habits of thrift as those in developing

markets.

The maker of brands such as Axe, Dove, Knorr and Lipton is selling small packs of

its brands in markets such as Spain, Greece and the US. In Spain, for instance,

Unilever sells Surf detergent in packs offering five washes, and offers mashed

potatoes and mayonnaise in small packages in Greece. It has also launched a low-cost brand for tea and olive oil for the euro markets.
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Unilever Sustainable living Plan

They have ambitious plans to grow the Company. But they recognise that growth

at any cost is not viable. They have to develop new ways of doing business which

will decouple our growth from our environmental impact while increasing the

positive social benefits arising from their activities simultaneously. The Unilever

Sustainable Living Plan, launched globally in 2010 by their parent company

Unilever, is the blueprint for doing this. It is not a new concept for Unilever and

for its operations in India. They have long been working on their impact on society

and the environment. One example is their work to improve the nutritional quality

of their products. Nutrition Enhancement Programme was a cross-category

benchmark developed by Unilever Food & Health Research Institute, based on

international dietary guidelines.

HUL introduced this programme across key food brands in India to reduce the

levels of unhealthy ingredients such as trans-fat, saturated fat, salt, and sugar.

Another example is the progress HUL has made in reducing CO2 emissions from

energy and water in the factories. Measured per tonne of production, since 2004

they have achieved reductions of 29% in CO2 from energy and 36% in our use of

water in 2010.

The Unilever Sustainable Living Plan brings together all the work Unilever has

been doing globally and at the same time sets many new global targets to enable it

to achieve its growth ambitions sustainably.

The plan sets out over 50 social, economic and environmental global targets and

three big goals for Unilever to achieve by 2020 globally. The global targets are

wide ranging and take into account impact across the value chain.

The Unilever Sustainable Living Plan will result in three significant outcomes by2020 globally:

Help more than a billion people take action to improve their health and well-

being.

Halve the environmental impact of the making and use of Unilever products.

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Enhance the livelihoods of thousands of people in Unilevers supply chain.

The Unilever Sustainable Living Plan is the right thing to do for people and the

environment. But it is also right for Unilever: the business case for integrating

sustainability into our brands is clear and persuasive.

A growing number of consumers want reassurance that the products they

buy are sustainably sourced and protect the earths natural resources.

Many retailers have sustainability goals of their own and need the support of

suppliers like Unilever if they are to achieve them. This collaboration is

broadening and deepening the relationships they have with their customers.

Sustainability is a fertile area for product and packaging innovation. It is allowing

us to deliver new products with new consumer benefits.

Over half of Unilevers global sales are in developing countries including India,

the very places which face the greatest sustainability challengesdeforestation,

water scarcity and poor sanitation.

These countries represent major growth markets for Unilever, so if Unilever can

develop products today that help people adapt to the changing environment of

tomorrow, it will help Unilever grow faster in future.

Managing our business sustainably not only generates cost savings, it can also

save consumers money.

For Example - Changing behaviour, saving lives

Lifebuoy soap is one of the largest selling soap brands in India. Lifebuoy was

introduced to make hygiene affordable to the majority of people. A clinical trial

has shown that using Lifebuoy at key hygiene occasions can reduce diarrhoeal

disease by 25% among children aged five. By 2010 Lifebuoy has reached 124.7

million people through its Lifebuoy Swasthya Chetna campaign to spread

awareness on germ protection in villages in India

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Chapter IV



Two out of three Indians use our products, making their brands a part of every day

life.

They help people look good, feel good and get more out of life with brands and

services that are good for them and good for others.

Bigger, better, faster innovation

Brands and innovation are at the heart of everything they do. Research and

Development (R&D) is the home of breakthrough technology for bigger, better,

faster innovations.

Home & Personal Care

In 2012, they launched Lifebuoy Activ Naturol Shield, providing breakthrough

technology in germ protection. The technology packs a combination of naturally

occurring substances with the best of technology in cleansing, providing ten times

better protection against disease causing pathogens. It is a matter of pride for them

that the Unilever R&D centre in Bengaluru, India, was the lead research centre for

this innovation.

The launch of Ponds Age Miracle Cell ReGEN Range brought to the Indianmarket the most advanced anti-ageing technology developed by the Ponds

Institute. The New Ponds Age Miracle with Intelligent Pro Cell Complex gives

aging skin cells three times more skin renewal power. This extensive collection

provides everything the contemporary Indian woman needs for flawless natural-

looking makeup.

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In another innovation, Fair and Lovely introduced a future tube to upgrade sachet

consumers to an affordable yet aspirational format. This enabled incremental

volume and value consumption by inviting existing sachet users to trade up to the

future tube, which apart from being innovative and easy to use was priced to

deliver greater value.

In Hair Care, the Keratinology innovation launched by Sunsilk is specially

designed to prolong the beauty of salon-treated hair. It features Keratin Micro

Technology, which works to intensively nourish and reconstruct the hairs surface

for stunning hair renewal and keeps salon beauty for longer.

The Color Rescue range by Dove brought to the Indian market a unique product

that repairs damaged hair and helps lock in the vibrant colour for longer.

In laundry, the Rin portfolio was further extended with the launch of Rin Perfect

Shine Neel in the Liquid Blues category. The Rin portfolio currently includes Rin

Washing Powder, Rin Detergent Bar and Rin Bleach. Liquid Blues is a logical

extension for the Rin brand, which carries the promise of delivering sparkling

white clothes. Comfort, the fabric conditioner brand, has grown with innovative

market development.

Comfort anti bacteria was launched as a new variant during the year to build on the

huge success that the category has seen in just a few years since it was firstlaunched in India.

In colour cosmetics, Lakm launched the premium range of Absolute makeupa

high performance color cosmetics range, with leading edge technology sourced

from our Italian and French partnerships. With a stunning range of high-end face,

lip, nail and eye offerings, along with professional make-up applicators, Lakm

Absolute provides the Indian woman with a premium long-wear line.

Axe, the leading deodorant with a presence of over 10 years in India, saw the

portfolio extended with the launch of Axe Shower Gel. The Axe grooming range

for the young Indian male also includes Shaving Gel, Foam, After-Shave lotion,

and CologneTalc.

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Foods

Rising consumption and changing tastes are opening up new opportunities. The tea

bag market in India has tripled in the last three years with growth being led by

exotic, flavoured and green teas. In order to outgrow the market and capitalise onthis opportunity, Taj Mahal and Lipton last year launched 11 new flavours in the

flavoured tea bag and green tea bag segment. The burgeoning caf culture in India

has been driving growth of in-home consumption of coffee as well. To leverage

this, Bru introduced three new brands in the premium and mass-premium segments

of the instant coffee market viz. Bru Exotica, Bru Gold and Bru Lite and initiated a

pilot in the retail space by opening eight Bru World Cafs in Mumbai in 2011. The

Frozen Dessert category continued to grow with successful innovations during the

summer of 2011. New Cornetto Disc, Paddle Pop Grape Apple Jelly, Selections

Roasted Almond Chocolate and Black Currant Raisin which targeted and delighted

youth, kids and families alike.

Reducing salt

Their Knorr portfolio has been revamped to introduce newer variants with less

sodium over the past few years. This has resulted in an average 13% sodium

reduction among our soup top sellers. In 2011, we also reduced sodium in Kissan

ketchup formulations by an average of 11%

Reducing calories

To cater to the needs of the growing number of health conscious people, Kwality

Walls, our frozen dessert brand, offers product formats which deliver less than 99

Kcal in one standard scoop of 80ml, in its Selection range. Providing healthy

eating information their labels carry information on energy, protein, carbohydrate,

sugars, fat, and where relevant on saturated fat, fibre and sodium.

HUL also participates in the 'The Choices program', a front-of-pack labelling

programme aimed to help consumers make the healthier choice .They aim to have

two-thirds of our foods and beverages portfolio comply

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Healthy Choice guidelines by 2015.

Around 60% of their major food and beverage brandsBrooke Bond, Bru. Knorr,

Kissan, Kwality Walls already comply with the Healthy Choice guideline.

Water

The Pureit innovation addresses one of the biggest technological challenges of the

centurythat of making safe water accessible and affordable for millions. Pureit

provides four litres of as safe as boiled water at a running cost of Rs 1 without

the hassles of boiling, without the need of electricity or a continuous tap water

supply.

Pureit has protected 30 million lives in India alone and is currently available in

seven countries. Pureit Marvella RO was launched in 2011. It is the only RO water

purifier with 15 days Advance Alert System. The range also includes Pureit

Marvella, Pureit Classic 14 litres and Pureit Classic 23 litres

Looking ahead

Their innovations continue to focus on strengthening the core and leading market

development across segments. Every day were working on ways to make our

brands the best, most innovative and most agile in the world.

MARKET PLACE

Consumers are at the heart of our business. They have a large base of consumers

served through millions of stores. They are now reaching out with more stores,

better stores and better standards of service. At the same time, they are making

special efforts to reach out to the remotest corners of India, delivering products and

services to people and places that were never served before.

More stores: faster spread, larger reach

Coverage expansion was a key thrust area in 2011, building on the expansion they

undertook a year earlier. Over the last two years, they have added one million new

stores, doubling our coverage and taking HUL products and services to some of the

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remotest corners. They have used technology, our rich insights and our flagship

programme, Project Shakti, to spread out fast. The project has been strengthened in

2010-11 with the Shaktimaan initiative under which men of the Shakti families are

given bicycles to cover surrounding villages to increase HULs distribution and

sales as well as enhance the income of Shakti families. There are now 30,000Shaktimaans across India. Shakti Amma will continue to drive home-to-home sales

in their village and Shaktimaan will cover small retail outlets in surrounding

villages.

Perfect stores: right product, right outlet, right quantity

The Perfect Stores programme is aimed at improving availability by maintaining

and building assortment in outlets and ensuring better visibility of HUL products at

the point of purchase. Currently, 1.1 million retail outlets that account for morethan 90% of HUL turnover in retail outlets work as Perfect Stores. Half of these

were enrolled in the Perfect Stores programme in 2011, delivering higher sales and

market shares than the average stores. Project iQ, which uses sophisticated

analytics to reach out to these Stores, won the 2011 Global Unilever IT Award for

Releasing the

Power of Information.

Customer Centricity: the customer comes first 2011 saw greater focus oncustomers to drive growth and ensure a seamless working relationship with our

partners. They institutionalise the Joint Business Planning (JBP) process for

distributive trade in 2011. Under this, the customer and HUL agreed on a set of

deliverables to set the tone for growth ahead of the market. This was complimented

with a comprehensive customer reward and recognition through the programme

Customer Differentiation Tool.

They also launched Customer Credo, under which members of our customer team

and partner functions spent 50,000 man-hours to connect with the customer. They

rolled out a programme christened Happy 2 Help across more than 2300

distributors to help better customer connect and quick resolution of their issues.

This is an active effort at issue identification and resolution using the customer

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helpline Levercare. Almost 4000 pending issues were resolved within a month.

They plan to repeat the exercise once every quarter.

Modern trade: Growth through partnership

Modern trade is one of the fastest growth channels for HUL. To build on this, they

created joint marketing plans with leading customers like Walmart, Metro and

Tesco. The Modern Trade team swept the Customer Awards for 2011 with several

strategic customers like Tesco, Walmart and Hypercity.

Project 3G: Building engagaement with 20,000

AssociatesPoint of presence is critical for our business because it is here that 70% of

decisions to buy are made. The quality of their presence at the point of purchase is

directly co-related to the capability of their business associates and their people in

the field. These associates are responsible for in-store execution. In the interest of

bringing in sustainable HR processes for better management of performance and

engagement of third party associates, HUL has launched a platform named 3G

(short for Gain, Grow, Get ahead). This platform enables HUL to reward and

recognize top performing associates, enhance their capabilities and provide a clearcareer path for growth, thereby ensuring high motivation levels amongst the

associates to enable better execution in the market.

Project Express: Gateway to rural

They want to enhance our coverage even further to enable them reach as much as

90% of the rural population. In order to achieve this, they have to ensure a viable

sustainable business model for our associates. This calls for partnering with

businesses like mobile telecommunications, which have a similar wide reach. They

have partnered with Tata Teleservices Limited to increase our rural foot print and

give a fillip to rural distribution as well as the earnings potential of Shakti

entrepreneurs. They are working to extend this partnership to 15 states.

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Continuous improvement is an ongoing effort to improve products, processes and

services. This leads to a step up in all round performance. Their focus on doing

every small thing better every single day is bringing consumers and customersbetter quality and service while delivering substantial savings and accelerated

growth.

Lean, responsive, consumer-led

Consumer needs are changing rapidly. They must study these changing needs and

respond to changing aspirations. Every product and service is shaped and built

from the perspective of our consumers. In addition, they must take all that we

already do well and do it even better, faster and more efficiently to help build alean, responsive and consumer-led organization.

Better service

Service as measured through 'On Shelf Availability' saw a significant improvement

in 2011. Overall service level as measured through CCFOT (Customer Case-Fill

On-Time) saw an improvement of 260 basis points. Modern Trade reported a

sharper improvement of 400 basis points. These results were delivered through

structured initiatives which are robust and sustainable.

Better quality

They are systematically improving the quality of our products as perceived by our

consumers. In 2011, consumer complaints per million units fell by 13%. As an

example, they changed to laser coding on bottles so that markings became easier to

read, eliminating complaints that coding was sometimes smudgy or illegible.

Flawless execution

Their business has seen strong volume growth over the last several quarters. In

order to support this growth, they are adding capacity in a structured and cost

effective framework. They are leveraging the global capability of Unilever to

execute with speed. They added 20% capacity during 2011.They are equipping our

facilities with state-of-art technology and rigorous standardization to ensure that

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designs are rolled out faster at newer locations under the principle Design Once,

Deploy Everywhere

Cost savings

They have saved 6% in total supply chain cost by exploiting improvement

opportunities at every node in the value chain. Wherever they find opportunities to

add value or cut costs, they take them. They execute fast and replicate even faster.

An example of this is the low cost business model for the washing powder brand,

Wheel.

Managing cash

They continued to drive cash delivery and sustained negative working capital in

2011. They reduced days-on-hand inventory. They aim to bring stocks downfurther through continuous improvement of our business planning process.

Partnerships with suppliers

Their suppliers are vital partners in our sustainable growth ambitions. They work

with them to create better, faster innovation. In line with their commitments in the

Unilever Sustainable Living Plan, they increased the amount of agricultural raw

materials obtained from sustainable sources.

Growing sustainably

They have begun using alternate biomass-based fuel to generate steam at some of

our manufacturing facilities. In 2011, as part of the first phase of this shift, they

changed to sustainable fuel at three factories. The work involved perfecting the

biomass based boiler technology and sourcing of biomass based fuels.

Driving down Costs, Improving margin

Their market leading washing powder Wheel has seen margin improvementthrough our low cost business model (LCBM) approach, which optimises margins

at every link in the value chain. For Wheel, LCBM included improvement in trade

terms and advertising budgets as well as in the manufacturing and distribution

network.

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Chapter V

CONCLUSION

In this whole topic they talk about the new implementation of the marketing

strategy in succeeding years.

In this, they talk about three topicsInnovation , Market Place and Continous

Improvement.

If I talk about INNOVATION in this in each and every year there is some

changes.

In 2009-10 they talk about the base of innovation and implemented new schemes

and plans.

As compared to 09-10, in 10-11 they think about the product experience and

perfomance and introduce new product in their portfolio

But in 11-12 they boost up their innovation and launched a program related tolabelling

All these progress give a favourable direction for HUL and helped them to achieve

their short term goals

Secondly, there is MARKET PLACE in this they have modified strategy each and

every succeeding year and showed a sustainable growth

In 2009-10 they put the base of market size and development and execute the

perfect stores and project shakti whichtake their sales in browed position.

Then in 10-11, the modified Shakti into shaktimaan which includes rural public as

it good movement for employment. And also enhances the distribution channel.

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But in 11-12, they launched shakti amma which targets rural houses which eases

their distribution channel. New program launched in comparison to preceeding

year which rigourously boost up their revenue.

Finally, in CONTINOUS IMPROVEMENT they basically talk about theirproduction and supply chain . In this have aim of reducing cost and robust

production.

In 2009-10, they managed their working capital by introducing next generation

technology for example twin tracks in single production line.And also the ROMI

which enables them to manage their expenses.

Then in 10-11,they planned to make bench mark with global

and local competitors which increase their efficiency level.

But in 11-12,they introduce different methods to check and analyse the perfomance

which has a new addition to their strategy.For ExCCFOT to measure service

level. And also addition of biomass based fuel and bioler technology.

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REFERENCE / BIBLIOGRAPHY

INTERNET

www.business-standard.com

www.hul.co.in

www.financialexpress.com/news/hul-itc-take-battle-to.../658713/

Independent.academia.edu/.../Hindustan_Unilever_Limited-_a_study

www.oppapers.com/.../marketing-strategy-of-hul-in-india-page1.htm..

en.wikipedia.org/wiki/Marketing_strategy

MAGAZINE AND JOURNALS

HUL ANNUAL REPORT 09-10



BOOK

Marketing Management by Philip Kotler
http://www.business-standard.com/http://www.hul.co.in/http://www.financialexpress.com/news/hul-itc-take-battle-to.../658713/http://www.financialexpress.com/news/hul-itc-take-battle-to.../658713/http://www.hul.co.in/http://www.business-standard.com/

HUL 2 PART

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