You are on page 1of 6

Strengths in the SWOT analysis of Hindustan Unilever (

HUL )
1) Brand visibility – From soap to mineral water, HUL is shaping the
life of 1.3 billion people daily. Being in consumer goods market with its
20 consumer categories such as soap, tea, detergents, shampoo etc.
& each having large assortments, helped HUL in occupying the large
shelf space of Grocery /departmental stores which itself explains the
acceptance/demand of their products in the market.

2) Market leader in consumer goods: According to Nielsen data 2


out of three Indian consumers use HUL products. HUL used
selective targeting strategy to emerge as a market leader in the Indian
market.

3) Innovative FMCG Company: Hindustan Unilever Research center


(HURC),Mumbai & Unilever Research India, Bangalore ,both research
facilities were bought together in a single site in Bangalore in
2006.Employees in this facility continuously working & developing
innovations in products & manufacturing processes which is helping
the HUL to set it as front-runner in the consumer goods market.

4) Extensive & integrated distribution system: HUL’s brands are


now household name which is only possible due to its 4 tier
distribution system namely

 a) Direct Coverage through common stockist within a town of population


under 50000 people.
 b) Indirect coverage: Villages closer to larger urban markets have been
targeted.
 c) Streamline: Leveraging the rural wholesale market to reach markets
inaccessible by road.
 d) Project SHATKI AMMA: It targeted the very small villages (2000
population) & tapped into pre-existing women’s SHG (self-help
groups). Markets have been segmented based on their accessibility &
business potential.

5) High Brand awareness: By signing popular celebrities for the


advertisements of their products HUL has created positive word of
mouth over the ages which helped them in social acceptance of their
products intelligently targeted & meant for different income groups.
6) Product line: It offers product categories namely oral care,
personal care, household surface, fabric care and pet nutrition etc.
having deep assortments across the product categories.

7) Financial position: Having more than 80 years of experience in


the consumer goods market & backed by Unilever who owns 67%
controlling share in HUL, It is financially strong.

8) Market share: Through high penetration in the market, HUL had


managed to hold their high market share in different product
categories.

9) Share of Wallet: Whether one buys surf /wheel /Rin detergent it


will go to HUL’s pockets. HUL strategy to offer different products for
different income groups (selective targeting) has been successful in
having share of wallet of a consumer.

Weaknesses in the SWOT analysis of Hindustan Unilever (


HUL )
1) Decreasing Market share: Competitors focusing on a particular
product & eating up HUL’s share, like Ghadi & Nirma detergent eating
up HUL’s wheel detergent market share.

2) Large number of brands in different product


categories: Sometimes having broad brand portfolio can lead to
confused positioning. Price positioning in some categories allows for
low price competition like AMUL captured Kwality’s market share.
Opportunities in the SWOT analysis of Hindustan
Unilever ( HUL )
1) Expanding market: By penetrating more in the rural markets
through its project Shakti AMMA and transition of unorganized
business to organized one will lead to further expansion of the
consumer goods market.

2) Awareness in usage rate of consumer goods: People getting


more aware and conscious about the usage may be through
advertising /word of mouth /doctor prescription ,is resulting in increase
in usage rate of the these products.

3) Increasing Income levels: Due to stable political scenario,


improved literacy rate & controlled inflation, disposable income of the
people is increasing thereby resulting into upsurge in demand &
changing their lifestyle.

Threats in the SWOT analysis of Hindustan Unilever (


HUL )
1) Competition in the market: With increasing number of local &
national players it’s becoming very hard for the companies
to differentiate themselves from others. There is also threat from
counterfeit products destroying its brand image in the market.

2) Price of commodities: Increasing price of commodities will result


in further increase in the price. Further increase in price will result in
decrease in sales, margins & brand switching.

3) Buyers power: With highly diversified consumer goods market


where there are lots of brands claiming different sorts of benefits, it’s
very difficult for consumers to stick to a particular brand & hence
results into brand switching where consumer got power to select a
brand based on several factors like availability, reference group
recommendation, preference & price.

https://www.marketing91.com/swot-analysis-of-hindustan-unilever/
HUL (Hindustan Unilever Limited)

Parent Company Unilever Limited

Category Consumer Products, Food & Beverages

Sector FMCG

Tagline/ Slogan Small Actions, Big Difference

USP HUL (Hindustan Unilever Limited) is India's largest fast-moving consumer goods company

HUL STP

Segment Products and services for daily needs

Target Group Every Indian household especially the middle class

Being the largest FMCG company, HUL's little efforts make a huge difference in the lives of
Positioning people

Product Portfolio

Consumer Products
1. Active Wheel 2. Cif 3. Comfort Fabric
4. Domex 5. Rin 6. Surf Excel
7. Vim 8. Aviance 9. Axe
10.Ayush 11.Clear 12.Clinic Plus
13.Close Up 14.Dove 15.Fair & Lovely
16.Hamam 17. Lakme 18.Lifebuoy
Brands 19.Liril 2000 20.Lux 21.Pears
22.Pepsodent 23.Ponds 24.Rexona
25.Sunsilk 26.Vaseline
Food & Beverages
1.Brook Bond 2.TajMahal 3.Bru
4.Kissan Jam 5.Kissan Squash 6.Lipton
7.Kwality Walls 8.Kissan Ketchup

HUL SWOT Analysis

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of HUL
(Hindustan Unilever Limited) :
1. HUL is a part of the Unilever group, hence strong brand equity
2. It has over 18000 employees
3. Hindustan Unilever has a reach of 6.4 million retail outlets which includes direct reach to
over 1.5 million retail outlets
4. Two R&D centres in India in Mumbai and Bangalore
5. Products with presence in over 20 consumer categories with over 700 million Indian
consumers using its products
6. As a part of CSR, HUL has initiatives like project Shakti, plastic recycling, women
Strengths empowerment etc
7. Strong legacy of the HUL brand since its inception in 1934

1. Market share is limited due to presence of other strong FMCG brands


Weaknesses 2. Hindustan Unilever faced controversies like skin lightening creams, pollution etc

1. HUL can tap rural markets and increase penetration in urban areas
2.Mergers and acquisitions to strengthen the brand
Opportunities 3.Increasing purchasing power of people thereby increasing demand

1. Intense and increasing competition amongst other FMCG companies can affect business of
HUL
2. FDI in retail thereby allowing international brands
Threats 3. Competition from unbranded and local products can hurt Hindustan Unilever's market

HUL (Hindustan Unilever Limited) Competition

Below are the 7 main HUL (Hindustan Unilever Limited) competitors :


1. Marico
2. L'Oréal
3. Nirma Ltd
4. ITC Limited
5. Colgate-Palmolive
6. Procter and Gamble
Competitors 7. Dabur India

SWOT Analysis of HUL (Hindustan Unilever Limited) with USP, Competition, STP (Segmentation, Targeting,
Positioning) - Marketing Analysis

The brandguide table above concludes the HUL (Hindustan Unilever Limited) SWOT analysis along with its
marketing and brand parameters. Similar analysis has also been done for the competitors of the company
belonging to the same category, sector or industry.

https://www.mbaskool.com/brandguide/fmcg/1515-hul-hindustan-unilever-limited.html

You might also like