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Hindustan Unilever Limited Is Indias Largest Company Marketing Essay

905 words (4 pages) Essay in Marketing

5/12/16 Marketing Reference this

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HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. Its headquarters is in Mumbai, India. It has employee strength of over 15,000 employees. The company was renamed in June 2007 as “Hindustan Unilever Limited”.

Hindustan Unilever’s distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country. It estimates that two out of three Indians use its many home and personal care products, food and beverages.

In the villages: HUL has also revamped its sales organisation in the rural markets to fully meet the emerging needs and increased purchasing power of the rural population. The company has brought all markets with populations of below 50,000 under one rural sales organisation. The team comprises an exclusive sales force and exclusive redistribution stockists, under the charge of dedicated managers. The team focuses on building superior availability, while enabling brand building in the deepest interiors. HUL’s distribution network in rural India already directly covers about 50,000 villages, reaching about 250 million consumers.

Political Factor – It means to what degree government intervenes in the economy. Political factors include areas such as tax policy, labour law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided. Further more, governments have great influence on the health, education, and infrastructure of a nation.

Economic Factor -These include economic growth, interest rates, exchange rates and the inflation rate. For example, interest rates affect a firm’s cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy.

Social Factor – These include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes. Trends in social factors affect the demand for a company’s products and how that company operates.

Technological Factor -These factors include technological aspects such as research and development activity, technology incentives.They can determine barriers to entry. Furthermore, technological shifts can affect costs, quality, and lead to innovation.

Here are some more factors which can affect a business:-

Environmental Factors -These include ecological and environmental aspects such as weather, climate, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

Legal Factors – These include different type of laws such as discrimination law, consumer law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.

The impacts of these factors on Hindustan uniliver limited.

These 6 are the most common factors which can affect a business directly or indirectly. Hindustan uniliver limited is an old organisation.It has produced many products like soaps,surfs,detergents and etc.In all the retailing Stores we will find the products of hidustan uniliver limited as there products are very famous all over the country.A company like hul is all affected with some factors.The factors we have discussed earlier.

There are factors like political and now the political factors can affect the working of an organisation in a big way.Political factors includes tax policy, labour law, environmental law, trade restrictions, tariffs.These are the some items which can affect a organisation politically.Government can change the Tax policy or tarrifs etc.Government can impose the restrictions on trade etc and company will have to accept the changes as they are made by the government.

The second factor which have affected Hindustan uniliver limited is economic factor. Economic factor include many things like economic growth, interest rates, exchange rates and the inflation rate. These are the main things which are considered in economic factors. Economic growth means the rate at which the the growth of the economy is going. Exchange rates means the rates at which the exchange takes place between two organisations. Inflation means where there is excess demand and shortage of supply.If the inflation rate goes high then the organisation will be affected as demand will be more and supply of goods will be less.

The third factor which have affected the Hindustan uniliver limited is social factor.Social factor include health consciousness, population growth rate, age distribution, career attitudes. Social factors also affects the organisation in a big way.If the population is growing at a high rate then it will affect the organisation as there are more demand for products than supply.

The fourth and the most important factor is technological factors. Technology is the most important factor which the organisation have to look. As we know that technology changes very quickly.we see in daily life that almost everyday a new technology is invented.The organisation will have to keep updated with the new technologies and it should also educate the employees about the technologies.Hindustan Uniliver is affected by the technology factor because the company has not adopted the new technologies.

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