Hindustan unilever limited

3592 words (14 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) is India’s largest fast moving consumer goods company, with leadership in Home & Personal Care Products and Foods & Beverages. HUL’s brands, spread across 20 distinct consumer categories, touch the lives of two out of three Indians.

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Hindustan unilever limited is one of India’s (FMCG) fast moving consumer goods company and have brands like Lifebuoy, Lux , Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr , Kwality Wall’s are household names across the country and other products such as soaps, detergents, personal products, tea, coffee etc

The mission that inspires HUL’s over 15,000 employees is to “add vitality to life”. With 35 Power Brands, HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity. A Fortune 500 transnational, Unilever sells Foods and Home and Personal Care brands in about 100 countries worldwide.


Unilever’s mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.


Unilever’s mission is to add Vitality to life. We meet everyday needs for nutrition; hygiene and personal care with brands that help people feel good, look good and get more out of life.

Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers – a truly multi-local multinational.

Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously.

To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact.

This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people, and our business partners.


The marketing objective is to establish the company as an expert in the marketplace .Lux has to establish an expert in the marketplace. Lux has to establish itself as a leader in the market. To accomplish this objective, customers must faith on its products.

Objective metric :-To extend the business. To accomplish this marketing objective .Lux must have to tie-ups some other branded (Foreign) company and produce very good quality products. People know about at least more countries and use it.



  • Company has advanced technology and well skilled professionals.
  • The new Lux face wash is a high quality product in term of skin problems and protection.
  • The target market is educated, professionals and belongs to premium and middle class
  • Company totally owned, systematic distribution network, transparent communication system.


  • Competitors have strong promotional activities.
  • Imported brands also available in the markets.
  • Customers are offered better alternatives by the competition.


  • Population expands at a rapid rate.
  • Consumers are becoming more quality conscious.
  • Rural areas are a large prospective market where they can introduce lux face wash.
  • Customer base is increasing with effective marketing.


  • Political and Economical factors.
  • Partial Government policies.
  • High rate of competition.
  • Local and foreign competitors


Lux Soap came into existence in 1964. Lux occupies a large market share in the Pakistani soap market as well as the international arena. The new Lux, with the sunscreen formula, is targeted to a different market segment as compared previously to previous Lux.

Lux is the first brand to bring the sunscreen concept in soap industry. Lux plans to cater to all these customers. “Beauty begins with Lux. “The strategy that is used by lever brother for their lux sunscreen is on specific “product Benefits strategy” as the lux sunscreen promotes “Sun Protection” benefit as well as “beauty” .Lux sunscreen revolves around the slogan that is:Lux Sunscreen.

Lux Soap came into existence in 1964. Subsequently it was launched in the US in 1916, and marketed as laundry soap targeted specifically at ‘delicates’. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harsh lyes that were often used in soaps at the time. The flake-type soap allowed the manufacturer some leeway from lye because it did not need to be shaped into traditional cake-shaped loaves as other soaps were. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use. Lux is currently a product of Unilever. The name “Lux” was chosen as the Latin word for “light”.

Lux toilet soap was introduced as bathroom soap in the US in 1925 and in the UK in 1928 as a brand extension of Lux soap flakes. Subsequently Lux soap has been marketed in several forms, including hand wash, shower gel and cream bath soap.

Lux soap was launched in India in 1929. The very first advertisement in 1929 featured Leela Chitnis as its brand ambassador. It was branded in India as “the beauty soap of film stars’.

Delight to the senses:

Everything about the brand – from the look and feel of the products and packaging to the subtle fragrances – is a delight to the senses. In fact, Lux has been making waves since 1924, when it launched the world’s first mass-market beauty soap at a fraction of the cost of some expensive brands.

How it all started

Lux was first introduced as toilet soap in 1925. Produced by Lever Brothers, it arrived in the UK in 1928, offering people a chance to pamper themselves for a modest price.

From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours.

In the early 1990s, Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturising bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992.

In 2004, the entire Lux range was relaunched in the UK to include five shower gels, three bath products and two new soap bars. 2005 saw the launch of three exciting new variants with dreamy names such as “Wine & Roses” bath cream, “Glowing Touch” and “Sparkling Morning” shower gels.


Top of Form

  • Lux Bath Glowing Touch
  • Lux Bath Shimmering Sea Refreshing Foam Bath
  • Lux Bath Wine & Roses
  • Lux Heavenly Milk Indulging Cream Bath
  • Lux Light Reflect Body Moisturiser
  • Lux Liquid Hand Wash Heavenly Milk
  • Lux Liquid Hand Wash Shimmering Sea
  • Lux Nutri Pearls Body Moisturiser
  • Lux Oils of the Orient Pampering Cream Bath
  • Lux Shower Cream Heavenly Milk
  • Lux Shower Cream Oils of the Orient
  • Lux Shower Gel Nutri Pearls
  • Lux Shower Gel Shimmering Sea
  • Lux Shower Gel Summer Massage
  • Lux Shower Gel Wine & Roses
  • Lux Shower Glowing Touch
  • Lux Shower Sparkling Morning
  • Lux Soap Bar Silky Touch
  • Lux Soap Creamy Perfection
  • Lux Soap Marine Massage

Bottom of Form


We are proud to propose a new range of deodorant protection brings you incredible natural effectiveness that is kind to both you and environment. This year launch of the new variant lux faces wash, with the baseline ‘FEEL FRESH’ to communicate its positioning. It addresses towards the need for removing unnecessary dirt and feels your skin soft and fresh through the unique proposition of FACE WASH. Today in the market, lux has three distinct variants, Lux deo, beauty soap, creams continues to operate in the ‘healthy skin’ category. Lux soaps are the strongest player in ‘freshness’ category.

This is a natural extract recommended by a professional dermatologist in Arizona, U.S.A. It was already approved for safety and hygene.Lux Face Wash is the latest offer from the HUL. This latest Face wash is based at make your skin free from dirt and feels fresh and soft skin. It comes for oily skin.

Product profile

Lux Face Wash the first step in facial care for soft, smooth skin. For clean and soft skin that glows suitable for all skin-types.

How it works:

Thoroughly cleanses without leaving slippery feeling on skin.

Cleans skin 100% soap free formula with rich lather penetrates and removes deep rooted dirt, leaving your skin cleaner and smoother.

Gentle on skin. Active Cleansing System cleans gently and cares for your skin better than soap.

Results: Clean, soft, glowing skin.


Splash faces with water and apply face wash on face and neck. Rinse off. Pat dry. If face-wash gets into your eyes, rinse well with water.

Soap free washing preparation with organic surface active agents.

Key Ingredients: Glycerin, Sodium Lareth Sulphate, Tocopheryl Acetate (Vitamin E Acetate).


Unilever claims to practice value based pricing in which the customer perception of the products price provides a starting point for developing the marketing mix of the product. The research department determines this price usually by using focus groups.

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The primary importance of this value based pricing is that the product demand will be much higher if its price is in line with the customer’s perception of its value. One crucial concern for value based pricing is strict management of cost in order to be able to make a profit at the value based price.

After the initial price is determined Unilever then uses target costing in order to achieve the required profits. With the marketing plan now being termed as “Annual contact the importance of meeting the profit margin requirements has increased. Target costing thus provides as essential tool to manage cost effectively.

The characteristics of monopolistic competition typifying the market set the threshold for pricing. This market over a range of prices. The key element is differentiation which allows the sellers to gain market share in contrasts to competitors.

Last year lakme, Himalaya, Ponds revised their prices which has increased the prices of their face wash considerably but lux has maintained its price and their prices are much lower than Ponds, lakme. Being a poor country people go for products which are within the range of Rs 50.


LUX has been closely identified by its innovation, which is reflected in its promotions. It was the first brand of this category that comes up with an idea of creative offers like gold coins and pendants in soap. After getting a good response from these offers they started new offers to increase the sales like, Buy1 Get 1 Free.

LUX advertising always had a strong impact on customers by carefully choosing the elements which reflect aspects of the brand. No wonder then, the commercials featuring of celebrities like, Hema Malani, Aishwarya Rai and kareena Kapoor makes the Lux very famous among women’s and this creates an curiosity in the mind of girls for using the product.

The confidence that advertisement shows were closely connected to the properties of the Lux product. The lux face washes targets audiences in the markets of India that has appealed for only girls. The current advertising reinforces this bond and the fact that lux has provided protection over the years.


HUL want to launch a new product of lux into market. This time company is launching lux face wash with different fragrances for girls facing problem of oily skin They had done homework and decided exactly what to offer and how to generate sales. It is very difficult to increase sales because these days large number of products were launched everyday and there is very tough competition in market. So for this there is a proper procedure to launch product in the market and defined a proper procedure of launching a new product in the market. Lux face wash is the brand extension of the lux range and it will provide benefit in the success of the product. These are the following steps kept in mind………….

1. Identifying the competitors: – Before launching the product a proper market study must be done to know the competitors in the market and their strategies. There are various competitors of HUL in market offering large range of products like lakme, ponds, Himalaya etc. So for this there is a need of market survey and have to take a serious look at competitors by doing the proper SWOT (strengths, weaknesses, opportunities and threats) analysis. By doing swot analysis strategies and target market of competitors will come to know and helps in making the policies to compete with them. As HUL is launching face wash under the brand name LUX it is important to know the products offered in the market by competitors. There are various products like ponds, lakme etc offered by competitors but if new product or service is entirely unique and without any competition, it’s important to put product according to the customers prospective .Once it is decided whom will be competitor’s, review their marketing strategy, including their ads, brochures and websites and target market after all the process it is to be evaluated how new product will stand up against other products.

2. Target the customer. To successfully launch a new product with minimum financial outlay, it’s essential to focus exclusively on those customers who are targeted according to the different segments. These customers may be those peoples currently buying something else and can appreciate the additional features of new product offered to them. So for targeting the market there must be a proper segmentation according to age, sex, preferences etc. There will be a proper positioning of product in the mind of the customers. The main target customer of the lux face wash is girls.

3. Define marketing strategy and techniques. After defining the target customer, sales and marketing channels also must be decided. It must be decided whether to do distribute through internet or dealers .Generally, multichannel marketing achieve the greatest success .It is necessary to know target customer and target market. Suppose your strategy is to market a low-cost customer you might choose traditional direct marketing sales as your primary channel. The trend from traditional strategies based on personalization, rather than generalization approaches integrated. If you want to target high cost customer you might use traditional as well as modern techniques to distribute the products. HUL involve the whole organization, because it needs both internal and external communications to identify the strategy and direction of the organization.

4. Test concept and marketing approach. With all the efforts and money it takes to bring a new product to market, it is foolishness to rush to the launch phase before testing your product. It’s best to examine product, marketing message and marketing materials offered by the company. Before launching the product it is to be tested whether the product will be accepted by the customer or not. Only after testing is complete, company should proceed to the final creation of marketing approach and strategy.

5. Positioning:-Positioning is the art of designing the company’s offer and image to occupy a place in the mind of the target customers. The goal is to locate the brand in the mind of consumers to maximize the benefits of the firm. Positioning starts with a product. Therefore it is important to develop approach in order to obtain a brand image, target the market and to position the LUX deo to their respective target markets. The present report focuses on the explanation of the promotional, marketing mix and business strategy.

6. Roll out campaign. Campaign often plays a vital role in the launch of a product. There are various ways of campaign like through advertisement, events, public relations etc .But no matter what publicity route you choose, first make sure your product is ready and available for purchase in order to maximize returns. And other marketing efforts should follow closely on the press roll out. Monitor the results of all media, and in the first weeks and months, be prepared to adjust campaign to take advantage of what is working best. Company must hold various promotional events, advertisements for the promotion of the product. As HLL is launching the deo there must awareness and availability of the product in market which is only possible by promotional campaign. All the Medias like newspapers, TV, radios; internet etc must be used for the promotion of the product.

7. Launch of the product: – After a proper campaign process it is to be decided about the launch of the product keeping in mind the various concepts of marketing mix. A proper process must be followed keeping in mind the 4p’s price, place, product, promotion .when all is set launch product by handling an inaugural ceremony.

8. Taking the feedback from customer:- work doesn’t ends after launch of the product now it’s time to take feedback from customer about the product. Feedback will tell whether the product is successful or not. Company will also come to know about the need of customer and can review the product. Feedback is necessary because by this it can be specified that what consumers want and what they are getting. It will also help in the launching of new product.

9. Know your product’s lifecycle. The campaign which is used during the introduction phase of product launch will need to be updated as product matures. It is needed to monitor the marketing results carefully and record the results that will indicate when it’s time to revise the product, media message for generating the higher revenue. This is needed because every product reaches the maturity stage where revenue generations decrease and it’s time to review the product.


This graph shows the market growth of the product after the one month of launch up to the fifth month. According to this market survey products market share increases rapidly but due to tough competition in the market it starts declining at the ending of second month.

Graphic representation of product growth

But after the end of the third month sales increases due to the quick response of the company.HUL increases the sales promotion of deodorant creates awareness in the market. Due to this there is increase in the sales and remain constant up to fifth month. This shows that after launching the product job doesn’t ends product but it needs regular promotion in case of new product. After examining the market cause of decline in the growth of product indicates that it is caused by due to the decrease in the price of the other company’s product. So here HUL reduces its products prices and records increase in the growth rate and maintained it. Market survey is must in today’s competitive world because market trends keep on changing regularly so that’s why it’s necessary.

Evaluation and control

Evaluation is main part how we done all the things market research , knowledge about competitors strategy target market product promotion evaluation and good control over all these activities are very essential.

Responsible Management

Responsibility management solves most of important problem faced by system administrator. Employees should have proper responsibility about management.

Place Distribution:

Place and distribution channels play an important role of product.


1. The company plans to more market shares at the end of 2010.

2. The company plans to have secured selling in each region of the country even abroad i.e. global market.


HUL has to sale its new product LUX face wash throughout the country and also target the new entry. For this HUL has to set quarterly and yearly sales target and actual sales will be compared to these quarterly plans

One major concern is that the current financial strategy of supporting. We have to new business by personal funds. Finally we have to utilize all marketing plans.

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