Hindustan Unilever Marketing Mix Essay Example

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Every Indian woman knows how her clothes dazzle with the power of Ring. The lightning flash mnemonic with the famous baseline 'Whiteness Strikes with Ring' is still remembered today. Since its launch in 1969, the dazzling flash of light has become synonymous with the brand. With the introduction of 'Ring Advanced', the brand has strengthened its relationship with consumers and reaffirmed their faith by providing them with superior ingredients and overall synergy. The range comes in premium packaging and design.The text below, including the and their contents,and unified:

The emphasis is on the fact that Clinic Plus Health shampoo knows you and knows exactly what your hair needs. Clinic Plus Health shampoo was launched in India in 1987 and is the country's top-selling shampoo. It offers five important benefits for hair health: strengthening weak hair, preventing breakage, softening dry hair, adding shine to thick and healthy hair, and containing an anti-dandruff ingredient. The franchise also includes Clinic All Clear Total, which first came out in 1996. It is a dual shampoo that not only fights dandruff but also replenishes lost nutrients to make hair healthy and beautiful. Clinic All Clear Total is suitable for everyday use as a solution for dandruff. It is also available in 1 RSI Sachets for the convenience of rural consumers.

Posted toothpaste was launched in 1993 as the first toothpaste with a unique anti-bacterial agent that addresses the need to combat germs even hours after brushing. Posted packs introduced a Germ Indicator from February to May 2002, allowing consumers

to see the effectiveness of fighting germs themselves. In October 2002, Posted offered Dental Insurance to all its consumers to demonstrate the company's confidence in the product's technical superiority. Posted directly engages with children and their parents. The brand has always prioritized raising awareness of dental health.The reliance campaign in October 2003 focused on the importance of oral hygiene and emphasized that children often neglect to rinse their mouths after eating, making their teeth more susceptible to germ attack. The most recent campaign by Episode aims to educate consumers about the importance of germ protection throughout the night. Close-up, the original youth brand in India's oral care market, offers a range of toothbrushes and was the first gel toothpaste in India. It introduced the Vitamin Fluoride System in 2004, which includes a powerful mix of vitamins, fluoride, mouthwash, and micro whiteners for fresher breath and stronger, whiter teeth. Fair & Lovely, launched in 1978, caters to women's desire for beauty and is popular among rural women.Fair & Lovely is a popular product in rural areas. It contains effective sunscreens and Niacinamide which helps control melanin dispersion in the skin. This patented formulation has been in the market for 25 years and provides comprehensive protection against sun rays. It is particularly beneficial for Asian skin. All the active ingredients work together to safely lighten skin color. Fair & Lovely offers a variety of products including fairness cream, anti-marks cream, oil control fairness gel, deep skin formula, and fairness soap. Recently, they introduced a premium skincare range called Perfect Radiance.

Pond's has been a well-known skincare brand in India for a long time. It all started when Theron

the Pond, a pharmacist from Utica New York, introduced 'Pond's Golden Treasure' in 1846, a witch-hazel based product that became highly popular.

In 1914, Pond's Cold Cream and Vanishing Cream became a beauty icon for the brand. In 1955, Pond's Extract Company merged with Cheeseburger Manufacturing and in 1987, Milliner purchased Cheeseburger-pond's. By then, the Pond's brand had established a strong international presence. From a small homemade laboratory, the brand has now evolved to include state-of-the-art R&D facilities in Bangkok, Mumbai, New York, and Tokyo. Despite this growth, Pond's remains committed to delivering products that truly make a difference in women's skin and their lives.

Food and Beverages division offers a range of products including Brooke Bond. Brooke Bond Red Label, launched in 1903, has become synonymous with tea in India. It is the largest tea brand in the country, reaching millions of consumers with a diverse range of tea offerings to suit their tastes. It has the strongest market presence among tea brands in India and is found in over 500 million homes.

To elevate the tea category from being a commodity, Brooke Bond is focusing on building four powerful sub-brands: Brooke Bond Taj Mall, Brooke Bond Red Label, Brooke Bond Taiga, and Brooke Bond 3 Roses. This range provides various options and price points to cater to different consumer segments.

The tea is highly popular in rural markets. BUR coffee, launched in 1969, had a remarkable first year with a market share of 21%. Since then, it has continued to grow significantly and has played a significant role in creating the Instant Coffee category. It has been at the forefront of innovations in coffee-chicory

blends, refill packaging, vending operations, as well as the introduction of Low-unit-price packs. Bur coffee is particularly famous in the rural markets of South India. The Bur franchise includes Bur Roast & Ground, the most popular Roast & Ground Coffee brand in India, as well as Bur Malabar Roast & Ground available in select areas.

The Kinsman range offers ketchup, sauces, jams, squashes, and ready-to-drink products. Kinsman has become one of the most trusted brands for mothers and children in the country and also sells well in rural markets. Kinsman continues to be a pioneer in the categories it operates.

Nor Anaphora Salt was introduced in 1997 with breakthrough technology that encapsulates iodine with salt. This patented technology helps prevent iodine loss during storage, transportation, and cooking, addressing the serious health issue of iodine deficiency in India.

About one million people are at risk of developing iodine deficiency disorders (IDD). This deficiency not only causes goiters, but also affects the mental development of children. The International Council for Control of Iodine Deficiency Disorders (COCCID) has endorsed Nor Anaphora Salt, which has taken steps to educate consumers about the benefits of iodine and its impact on children's mental development. In 2001, Nor Anaphora Salt was fortified with iron and vitamins, which is important since over 60% of women and children are deficient in iron.

Hindustan Lever's brand, HI-JELL, has found success in the rural market through a pricing strategy. Over the years, Hindustan Lever has taken various initiatives to create markets in rural areas by offering relevant products at affordable prices. HULL aims to provide rural consumers with acceptable and affordable pricing through its low unit pricing strategy.

Most of its products are priced within the range of 1 RSI - irs. Moreover, HULL offers volume point to price point packages mostly priced at RSI 10, which is well-received by the rural consumer.

To succeed in the rural market, it is essential for products to be affordable as they move up the rural purchase hierarchy. HULL understands this and maintains a strategic price point at RSI and RSI 10 while avoiding price hikes, even with an increase in product prices.

If rural India currently accounts for approximately 50% of detergent sales, it is because HULL has successfully developed low-cost branded products that provide value for money, such as Wheel. Additionally, the company has taken steps to create markets for even premium products by offering them in affordable pack sizes, like sachets, which are accessible to rural consumers in terms of unit prices.

Pricing plays a crucial role in aligning the expenditure of Indian consumers with their daily income streams. For instance, the introduction of sachets (priced at 2 Indian Rupees, 1 Indian Rupee, or 50 paisa) in the 1970s now comprises a significant percentage of Hindustan Lever's shampoo sales. With increasing access to media in rural areas, these consumers now share the same aspirations as their urban counterparts.

In response to this trend, HULL has introduced low-priced packs for other products as well. Examples include Lax at 5 Indian Rupees, Lifebuoy at 2 Indian Rupees, and Ponds cold cream at 5 Indian Rupees. HULL follows a diverse media mix of conventional and non-conventional channels to promote its products in rural markets. To overcome communication limitations, Hindustan Lever has creatively leveraged non-conventional forms of media like wall

paintings, cinema vans, weekly markets (hat), fairs, and festivals.Advertisements can reach a wider audience through television and radio. Wall paintings are an economical way to capture audience attention. Products like Wheel and Lifebuoy are promoted through wall paintings. Cinema vans show popular movies, along with advertisements. Puppet shows effectively communicate ideas and values to rural consumers. Folk theatre, such as Tambala's, skits, and plays, inform and educate people about products. Weekly markets, fairs, and festivals provide an opportunity to reach consumers in multiple small villages. Demonstrations showcase product benefits and contribute to market growth. HULL uses demonstrations to emphasize the importance of visible cleanliness and soap usage for preventing infections. Communication during fairs and festivals involves direct consumer contact.

In 1998-99, Hindustan Lever implemented Project Brat, a major direct consumer contact initiative that reached 2.2 core homes. Each home received a box at a special price of RSI. 15, which included a low unit price pack of shampoo, talcum powder, toothpaste, and skin cream. The box also contained educational leaflets and audio-visual demonstrations. Project Brat successfully eliminated barriers to trial and increased the visibility of specific categories and brands.

In 2002, Hindustan Lever launched Lifebuoy Swastika Cheetah, another large-scale direct contact initiative. It currently covers 70 million people in 18,000 villages across 8 states. The main goal of Lifebuoy Swastika Cheetah is to raise awareness about health and hygiene practices, particularly emphasizing the importance of handwashing for maintaining good health. The initiative involves interaction with students and senior citizens acting as change agents or opinion leaders who influence rural consumers. So far, it has reached about 15,000 villages in 8 states: Attar Pradesh, Briar, Shorthand,

West Bengal, Arioso, Madhya Pradesh, Chastiser, and Maharajah's. Over 70 million people have been impacted by this initiative, and over 25 million children have received hygiene education.

The distribution strategies of HI-JELL focus on ensuring availability of their products in rural India, as consumer purchasing decisions are often influenced by the availability at the outlet. Hindustan Lever Limited has a strong distribution network that enables them to reach their products across the entire country. Their distribution network is designed to meet the ever-changing consumer needs and ensure availability of all products at all times. This includes maintaining trade relations, providing incentives to retailers, and organizing demand generation activities. Hindustan Lever has progressively expanded its rural distribution reach, now having outlets in approximately 33 lakh villages. Initially, direct rural distribution started by covering villages near small towns, utilizing the infrastructure of stockiest in those towns. However, this distribution mode only reached villages connected by roads, covering about 25% of the rural population by 1995.

The evolution of HI-Oil's Distribution Network has occurred in three phases.

In the first phase, wholesalers and large retailers placed bulk orders directly with the company. These direct orders made up about 30% of the total orders collected. The company salesman would then group these orders and submit them to the Head Office. The goods were sent to the markets with the salesman as the consignee. He would then collect payment from the respective wholesalers and distribute the products.

During the second phase, which took place in the 1960s, the focus was on providing desired products and quality service to customers. Each market had one appointed wholesaler called a "Registered Wholesaler" who

served as a stock point for the company's products in that market. The company salesman continued to cover the market and collect orders from other trades. Stocks from the Registered Wholesaler were then distributed through company-maintained distribution units. This system allowed the company to reach a larger number of customers.

In the third phase, a new concept called "Redistribution Stockiest" (RSI) was introduced to replace rows. The RSI was responsible for providing distribution units to company salesmen.The RSI received financing for their stocks and access to warehousing facilities. The RSI also engaged in demand stimulation activities for the company.
During this period, it became clear that in order for the RSI to provide customer service effectively, they needed to be serviced well themselves. This led to the establishment of the "Company Depots" system, which aided in transshipment, bulk breaking, and acted as a stock point to prevent stock-outs at the RSI level. However, in recent times, the Company Depots have been replaced by a system of third-party Carrying and Forwarding Agents (C), who serve as buffer stock-points to ensure stock-outs are avoided.
This change has also brought cost savings in terms of transportation and faster delivery times. An important benefit has been the improved customer service for the RSI. Over the years, the role of the Redistribution Stockiest has evolved. In addition to financing stocks, they now provide manpower, service to retailers, implement promotional activities, extend indirect coverage, report sales and stock data, and screen for transit damages. HULL has experienced significant growth during this time, with an increase in factories and SKU numbers.The logistics and planning task has been rationalized by implementing the Mother Depot and Just

in Time System (MD-SIT), which involves selecting certain C locations as mother depots. These mother depots have attached SIT depots to meet stock requirements. All brands and packs needed for the markets served by the MD and SITS in a particular area are sent to the mother depot from manufacturing units. The SITS then retrieve their needed supplies from the MD on a weekly or bi-weekly basis.

Currently, Hull's products are distributed through a network of approximately 7,000 redistribution stockiest, covering around one million retail outlets across the country. This distribution network serves both rural and urban areas. Hull is also establishing a strong partnership with the emerging modern trade sector, in addition to their commitment to the traditional grocery trade. With our scale, we are able to provide exceptional customer service, including daily servicing, to improve range availability while reducing inventories.

We are taking advantage of this opportunity to directly connect with consumers through tailored communication and promotional strategies in retail stores. This not only increases store traffic but also drives significant growth for our business.An IT-powered system has been implemented to continuously replenish stocks and supply them to redistribution stockists. The objective is to drive HI-Oil's growth by ensuring that the right product is available in the right quantities at the right place, all in a cost-effective manner. Stockists are connected with the company through RSI Net, an Internet-based network that facilitates online interaction on orders, dispatches, information sharing, and monitoring. RSI Net covers approximately 80% of the company's turnover. The sales system now receives daily reports on what HULL stockists have sold to nearly a million outlets nationwide. RSI Net is a part of

Project Leap, which is HI-Oil's end-to-end supply chain and includes a back-end system connecting suppliers and all company sites. RSI Net has greatly benefited HULL Way, the company's action plan for expanding outlet reach and achieving leadership at every outlet. This has allowed the field force to solely focus on secondary sales from stockists to retailers and market activation. HULL Way has also facilitated the implementation of best practices in customer management and standardized processes across the company. With the support of IT tools, it has further improved customer service, availability, and visibility at retail points.

HIGH has been leading the way in experimenting with innovative methods to reach rural consumers. One such method is the Indirect Coverage (DC) approach, which involves replacing company vans with vans belonging to Redistribution Stockiest. These vans service a specific group of neighboring markets. Another initiative, known as Operation Harvest, aims to supplement conventional media's reach and product awareness in rural markets. This involves conducting product awareness programs on vans. Cinema van operations, funded by Redistribution Stockiest, play popular films, songs, dance sequences, and advertisements for HULL products. In an effort to further increase its rural reach, HULL has established a single distribution channel through Project Streamline. This initiative involves the help of rural sub-stockiest.

Hindustan Lever has already appointed 6000 sub-stockists, resulting in a distribution network that covers about 50,000 villages and reaches approximately 250 million consumers. Hindustan Lever has been implementing Project Shasta since 2001, providing the option for individuals to distribute relevant products as a sustainable income-generating activity. This model creates a win-win relationship, allowing the distributors to earn a sustainable income while also providing Hindustan Lever

with a means to interact and transact with rural consumers. The distribution efforts have been enhanced through a partnership with Self Help Groups of rural women, currently covering villages in 52 districts of Andorra Pradesh, Karakas Madhya Pradesh, and Gujarat. The goal is to expand this project further to reach over 100,000 villages and touch approximately 100 million consumers.