Tag: FMCG Giant

  • Unilever Marketing Strategy, Products & Target Audience Explained

    The bold and brash multinational consumer goods corporation Unilever has left its mark on history. Unilever was founded in 1929 as a result of the union of a soap manufacturer and a margarine manufacturer. Since then, it has grown into an empire with a staggering 400 brands in its portfolio. Renowned brands like Lifebuoy, Dove, Axe, and Sunsilk are included in its illustrious lineup and are popular with customers all over the world.

    Unilever made a risky transition in 2020 to become a wholly British company, enhancing its presence and streamlining operations. As a result of its unwavering pursuit of excellence, the Unilever Group has since established itself as the fifth-largest FMCG company in terms of sales worldwide.

    Impressive sales numbers and unchallenged market share serve as proof of Unilever’s success. With the nutrition segment leading the charge, generating a remarkable revenue of approximately 13.6 billion euros in 2022, Unilever’s prowess in personal care is equally noteworthy. The company reported a staggering total revenue of about 60 billion euros, with the United States emerging as a lucrative market and fueling significant revenue growth.

    Innovative marketing tactics are a key component of Unilever’s success. Unilever has elevated its brands to remarkable heights by capturing the essence of consumers’ desires and utilizing creative marketing strategies. Dove’s impressive 7.11 billion USD global brand value and Ben & Jerry’s staggering 910.68 million USD U.S. sales success both speak volumes about Unilever’s capacity to engage customers and foster brand loyalty.

    The enormous popularity of Unilever’s products further demonstrates its unwavering dedication to excellence. While Comfort, a well-known brand in laundry care, has reached 13.5% of households globally, Vaseline, a beloved personal care brand, enjoys an astonishing 80% popularity among female consumers in the United States.

    Its unyielding dedication to quality, coupled with its ability to adapt to evolving consumer needs, cements Unilever’s current position and fuels its drive to shape the future of consumer goods worldwide.

    Unilever Target Market
    Unilever Marketing Mix
    Unilever Marketing Campaigns
    Unilever Marketing Strategy

    Unilever Target Market

    The target market for Unilever is wide-ranging and diverse, covering a variety of geographic and demographic groups. The business provides a wide range of consumer goods for both men and women in various age groups. Although Unilever is headquartered in the United Kingdom, the majority of its income is produced in other countries, particularly the United States. Its ability to comprehend and cater to the needs of customers in various regions is demonstrated by its global reach. Additionally, socially conscious consumers who value sustainability and ethical behavior are part of Unilever’s target market. Unilever connects with customers who are looking for ethical and environmentally friendly products by placing a high priority on reducing environmental impact and empowering communities. Unilever’s keen awareness of various demographics, global reach, and commitment to sustainability help it win the hearts and loyalty of a large target audience.


    The Success Story Of FMCG Giant Hindustan Unilever Limited (HUL)
    A case study on Hindustan Unilever (HUL), one of the biggest FMCG organizations in India.


    Unilever Marketing Mix

    As a dominant player in the consumer goods sector, Unilever has mastered the art of the marketing mix, carefully balancing essential components to captivate customers and propel business success. Let’s delve into the details of their marketing mix and unveil the secrets behind their triumph.

    Unilever Marketing Mix
    Unilever Marketing Mix

    Unilever Product Strategy

    Unilever’s product strategy is multifaceted, with 400 brands in its extensive portfolio serving a range of consumer needs. Unilever provides a variety of high-quality options, ranging from food and drinks to cleaning supplies and personal care items. Their dedication to innovation is demonstrated by the ongoing creation of new products that are in line with shifting consumer preferences, ensuring a steady stream of novel products to meet consumer demand.

    Unilever Products | Marketing Strategy of Unilever
    Unilever Products | Marketing Strategy of Unilever | Unilever Brands

    Unilever Price Strategy

    Unilever takes a strategic stance when it comes to pricing. Their pricing policies are individualized for various markets and target markets, taking into account elements like affordability, perceived value, and competition. Unilever seeks to strike a balance between providing prices that are both competitive and appealing to consumers while remaining profitable.

    Unilever Place Strategy

    In terms of place, Unilever’s distribution channels are meticulously designed to ensure its products reach consumers in the most convenient and accessible manner. They sell their goods in a variety of retail locations, from supermarkets and convenience stores to online shopping websites. Unilever makes the most of its reach and ensures that consumers around the world can easily access its products by using a vast distribution network.

    Unilever Promotion Strategy

    Unilever’s promotion strategies are equally noteworthy. To develop persuasive and interesting campaigns, they combine traditional and digital marketing channels. Unilever makes sure that its brands are constantly at the top of consumers’ minds through everything from television commercials and print ads to social media campaigns and influencer partnerships. Their marketing messages emphasize the distinctive advantages and values connected to their products to captivate target audiences.

    Unilever’s marketing mix is an expertly composed symphony of product, price, place, and promotion. Unilever maintains its position as a global leader and continues to mold the landscape of the consumer goods market by constantly adapting to customer needs and market trends.


    Pepsodent Marketing Strategy: Tagline, Marketing Mix, and Campaigns
    Discover Pepsodent’s brand story, company name, tagline, slogan, and marketing strategy. Learn how Pepsodent became a trusted oral care brand in India with innovative campaigns and strong brand presence.


    Unilever Marketing Campaigns

    Unilever, which is renowned for its cutting-edge marketing tactics, has launched several impressive campaigns that have had a profound effect on consumers all over the world. Let’s delve into some of their top marketing campaigns, showcasing their ability to captivate audiences and drive brand success.

    Dove’s Real Beauty campaign stands out because it aims to celebrate women’s diversity and authenticity while questioning conventional notions of beauty. Dove promoted women embracing their natural beauty through potent advertisements, workshops, and social media campaigns, winning praise and developing a reputation as a company that supports diversity and self-acceptance.

    The Axe Effect campaign from Axe, which targeted young men with a daring and provocative approach, is another noteworthy effort. Axe established itself as a representation of confidence and allure by highlighting the transformative power of its products. Axe was propelled to become a dominant brand in the men’s grooming industry as a result of the campaign’s edgy and humorous advertisements, connecting with the target market.

    Unilever’s Sustainable Living Plan campaign stood out in the field of sustainability. The campaign sought to involve consumers and encourage sustainable behaviors while committing to reducing environmental impact. Unilever’s commitment to sustainability was incorporated into its marketing messages, product packaging, and alliances, furthering its reputation as a trustworthy and environmentally conscious company.

    The Unilever Sustainable Living Plan: making progress, driving change.

    With Coca-Cola, Unilever launched the Share a Coke campaign, showcasing its creativity and ability to work well with others. Unilever tapped into the power of personalization and social sharing by adding popular names to Coca-Cola bottles, generating buzz among customers and a sense of connection with the brand.

    Share A Coke Campaign 2019 | Unilever Marketing Strategies

    These top Unilever marketing campaigns demonstrate their capacity to use strong messaging, consumer insights, and strategic partnerships to build engaging and lasting experiences.


    P&G Marketing Strategy: The FMCG Giant | Target Market | Marketing Campaigns | Segmentation | Products
    P&G, a leader in the consumer goods industry, has consistently implemented captivating marketing strategies to captivate audiences and drive brand success. Learn the marketing strategies of Procter and Gamble alongwith its marketing mix, marketing campaigns, target audience, distribution, and more.


    Unilever Marketing Strategy

    Unilever has achieved remarkable success through its innovative and effective marketing strategies. With a commitment to understanding consumer needs and driving brand relevance, Unilever has continuously pushed the boundaries of marketing excellence. Let’s delve into the top marketing strategies employed by Unilever, showcasing their ability to captivate audiences, drive sales, and make a lasting impact.

    Brand Portfolio Diversification

    Unilever has mastered the art of diversifying its brand portfolio to cater to a wide range of consumer needs. With around 400 brands, they cover various product categories, from food and beverages to personal care and home care. For example, Unilever’s acquisition of Dollar Shave Club allowed it to enter the men’s grooming market and tap into a new consumer segment.

    Emotional Branding

    Unilever understands the power of emotions in driving brand loyalty. Their marketing campaigns often evoke strong emotional connections with consumers. Dove’s Real Beauty campaign challenges beauty stereotypes, empowering women to embrace their unique selves. By touching hearts and inspiring positive change, Unilever builds long-lasting relationships with consumers.


    Dove’s Real Beauty Campaign | Did It Go Well?
    Dove launched the ‘Real Beauty Campaign’ in 2004, an evolving marketing campaign aimed at boosting self-confidence among women and children.


    Sustainability and Purpose-driven Marketing

    Unilever’s commitment to sustainability and social responsibility is integrated into its marketing strategies. They highlight initiatives such as reducing environmental impact, promoting fair trade, and empowering communities. The Sustainable Living Plan campaign communicated Unilever’s dedication to a better future, resonating with environmentally-conscious consumers and enhancing brand reputation.

    Loyalty Programs

    Unilever has loyalty programs that encourage customers to keep buying their products. Customers can earn points, get special discounts, enjoy personalized offers, and even access exclusive events.

    These programs help Unilever build a stronger bond with its customers and make them feel valued and appreciated.

    Influencer Collaborations

    Unilever effectively harnesses the power of influencers to amplify brand messages and reach target audiences. For example, Ben & Jerry’s partnered with climate activist Greta Thunberg to raise awareness about climate change, garnering significant attention and driving consumer engagement.

    Unilever's Ben & Jerry's - Climate Change Awareness
    Unilever’s Ben & Jerry’s – Climate Change Awareness 

    Personalization

    Unilever leverages personalization to create meaningful connections with consumers. The Share a Coke campaign, in collaboration with Coca-Cola, personalized bottles with popular names, encouraging social sharing and strengthening brand affinity.

    Digital Marketing and Social Media

    Unilever embraces the digital landscape and utilizes social media platforms to engage with consumers. Through compelling content, interactive campaigns, and influencer collaborations, they establish a strong online presence. Magnum’s Release the Beast campaign employed Instagram’s Stories feature, allowing users to interact with the brand and unlock content, resulting in increased brand visibility and user engagement.

    Cause Marketing

    Unilever strategically aligns with social causes to create meaningful campaigns. Domestos’ World Toilet Day initiative aimed to improve sanitation in underserved communities. By linking the brand to a pressing global issue, Unilever showcased its commitment to social impact and generated positive brand associations.

    Data-driven Marketing

    Unilever leverages consumer data and analytics to drive targeted marketing campaigns. Through insights gained from customer behavior and preferences, they optimize product placement, pricing, and promotional strategies to enhance consumer experiences and drive sales.

    Cultural Relevance

    Unilever recognizes the importance of cultural relevance in its marketing efforts. They adapt campaigns to resonate with diverse markets and local traditions. For example, Knorr’s “Love at First Taste” campaign showcased how food transcends cultural barriers and connects people on a universal level.

    Continuous Innovation

    Unilever fosters a culture of innovation, constantly pushing boundaries to meet evolving consumer demands. Their marketing strategies embrace emerging technologies and trends. For instance, Lipton’s Magnificent Matcha campaign incorporated virtual reality to create immersive experiences and uniquely engage consumers.

    New Lipton Magnificent Matcha Takes You Inside the Cup

    Conclusion

    The most effective marketing tactics used by Unilever show off their capacity to engage audiences, create strong emotional bonds, and advance brand success. Unilever effectively communicates brand values, fulfills consumer expectations, and maintains a competitive edge by utilizing these strategies. Unilever is a compelling example for companies looking to make a difference in the world market by committing to understanding consumer needs, embracing social issues, and delivering effective marketing campaigns.

    FAQs

    What is Unilever?

    Unilever is a British-Dutch multinational company that produces and sells a wide range of food, beverages, personal care, and home care products. It owns hundreds of popular brands like Dove, Lipton, Knorr, Pepsodent, and Surf.

    What is Unilever target audience?

    The target market for Unilever is wide-ranging and diverse, covering a variety of geographic and demographic groups. The business provides a wide range of consumer goods for both men and women in various age groups.

    What are the top marketing strategies employed by Unilever?

    The top marketing strategies employed by Unilever are –

    • Brand Portfolio Diversification
    • Emotional Branding
    • Sustainability and Purpose-driven Marketing
    • Influencer Collaborations
    • Digital Marketing and Social Media
    • Cause Marketing
    • Data-driven Marketing
    • Cultural Relevance
    • Continuous Innovation

    Unilever is which country brand?

    Unilever is a British-Dutch multinational company.

    Which are Unilever brands?

    Unilever owns a wide range of brands across food, beverages, personal care, and home care. Some of its popular food and beverage brands include Knorr, Lipton, Hellmann’s, Brooke Bond, Marmite, Ben & Jerry’s, and Wall’s ice cream. In personal care, Unilever owns Dove, Pepsodent, Lux, Axe/Lynx, Sunsilk, Vaseline, and Lifebuoy. Its home and cleaning brands include Surf, Rin, Domex, OMO/Persil, and Cif.

  • Procter and Gamble Marketing Strategy: The FMCG Giant

    Procter & Gamble Co. (P&G) is an American multinational consumer goods company headquartered in Cincinnati, Ohio. With a history dating back to 1837, P&G has become the world’s largest consumer packaged goods company, boasting an impressive $84 billion in sales and over $10 billion in net earnings. The company’s portfolio consists of 25 billion-dollar brands, spanning household care, beauty, grooming, and personal health care categories. These brands, including household names like Pampers, Gillette, and Tide, generate between $1 billion to over $10 billion in sales each year.

    P&G’s success is built on its 50 Leadership Brands, which account for more than 90% of the company’s sales and profits. These brands have gained global recognition and cater to approximately 4.8 billion consumers worldwide.

    Procter and Gamble (P&G) Target Audience
    Procter and Gamble (P&G) – Marketing Mix
    Procter and Gamble (P&G) – Marketing Campaigns
    Procter and Gamble (P&G) – Marketing Strategies

    Procter and Gamble (P&G) Target Audience

    Procter & Gamble (P&G) targets a diverse range of consumers, including millennials, Gen Xers, and baby boomers. Geographically, P&G reaches customers worldwide, from bustling cities to peaceful countryside. P&G caters to those with a bold and curious mindset – visionaries, pioneers, and game-changers who seek innovation and embrace change. P&G is not just about products; it represents a revolution that uplifts communities and enhances lives globally. Together with its customers, P&G forges ahead, leaving a trail of inspiration and excellence in its wake.

    Procter & Gamble's Net Sales Worldwide
    Procter & Gamble’s Net Sales Worldwide

    Procter and Gamble (P&G) – Marketing Mix

    Hold on tight as we dive into the captivating world of Procter & Gamble’s (P&G) marketing mix. Prepare to be dazzled by the strategic elements that fuel the success of this industry giant. From innovative product development to persuasive promotions, P&G leaves no stone unturned in its quest for market domination.

    Product

    P&G’s product mix encompasses a wide range of categories. In beauty, brands like Olay, Old Spice, and Safeguard offer skincare and beauty care products. Grooming products are sold under the Gillette brand, including razors and pre/post-shave care. Oral care products are offered through Oral-B, while fabric care includes Ariel and Tide detergents. Home care products, such as air fresheners, fall under the Ambi-Pur brand. Baby care products, including diapers and wipes, are available under the Pampers brand, and feminine care products are offered through Always (known as Whispers in India).

    P&G Products List PDF
    P&G Products

    Price

    P&G implements a diverse pricing strategy across its brand portfolio. It employs competitive pricing to combat rivals and maintains market share. Penetrating pricing is used to attract new customers by offering similar quality products at slightly lower prices. Premium pricing is applied to high-quality products targeting affluent segments. P&G prioritizes advertising over heavy discounts, emphasizing product quality. The company’s pricing mix reflects a strategic approach that aligns with market dynamics, brand value, and the pursuit of long-term profitability.

    Place

    P&G’s distribution strategy encompasses a wide network of provision stores, chemist shops, retail outlets, and supermarkets to reach a diverse consumer base. DHL serves as the courier service provider, ensuring efficient logistics. In addition to catering to individual consumers, P&G also supplies products in bulk to businesses like hotels through authorized dealers. This comprehensive place mix allows P&G to effectively distribute its products, ensuring widespread availability and accessibility to both retail customers and B2B clients.

    Promotion

    P&G’s promotional mix encompasses advertising, direct marketing, public relations, and personal selling. Through TV commercials, print media, and online advertising, P&G effectively promotes its brands. Celebrity endorsements add impact to their advertisements. The company utilizes its website for information and online purchasing. Direct marketing is employed for corporate consumers, while personal selling is used for new product launches. P&G engages in sponsorships of TV shows and events for public relations. This comprehensive promotion mix ensures widespread brand awareness and engagement with consumers.

    Procter & Gamble’s marketing mix is a well-orchestrated symphony of strategic elements. P&G’s bold and relentless pursuit of excellence has solidified its position as a powerhouse in the consumer goods market.


    P&G and Unilever: The FMCG Royalty
    A comparison between P&G and Unilever is inevitable. However, it is imperative to understand the origins and the growth trajectory of both these companies.


    Procter and Gamble (P&G) – Marketing Campaigns

    P&G’s impactful marketing campaigns have resonated with global audiences. Initiatives such as the empowering “Like a Girl” campaign, the heartfelt “Thank You, Mom” campaign, and the thought-provoking “Dads #ShareTheLoad” campaign has challenged stereotypes and promoted gender equality.

    Another was, addressing racial bias in “The Talk” and supporting female athletes in “The Secret to Victory” demonstrates P&G’s commitment to social issues.

    Procter & Gamble: The Talk

    Through emotional storytelling, P&G has made a lasting impact on society, fostering inclusivity and creating meaningful connections with its audience.


    Unilever Marketing Strategy, Products & Target Audience Explained
    Explore Unilever’s marketing strategy, top products, target audience, and brand portfolio. Learn how this British-Dutch multinational creates impactful campaigns and reaches diverse markets globally.


    Procter and Gamble (P&G) – Marketing Strategies

    Step into the world of Procter & Gamble (P&G), where marketing prowess and innovation converge to create a powerhouse of strategies. P&G, a leader in the consumer goods industry, has consistently implemented captivating marketing strategies to captivate audiences and drive brand success. From understanding consumer needs to embracing technology, P&G has honed its marketing arsenal to deliver impactful campaigns. Let’s dive into the top marketing strategies that have propelled P&G to the forefront of the industry.

    Consumer-Centric Approach

    P&G places consumers at the heart of its strategies. By conducting in-depth market research and understanding its target audience’s needs, P&G creates products and campaigns that resonate with consumers, forging meaningful connections.

    Innovation and Product Development

    P&G thrives on innovation, consistently developing new and improved products that cater to evolving consumer demands. This strategy keeps P&G ahead of the curve, allowing them to introduce groundbreaking solutions that capture market share.

    Emotional Storytelling

    P&G’s marketing strategies often revolve around powerful storytelling that evokes emotions and captures hearts. By tapping into human experiences and relatable narratives, P&G creates campaigns that leave a lasting impact on consumers.

    Always ‘Like a Girl’ 

    Influencer Collaborations

    P&G effectively leverages the power of influencer marketing to expand its reach and engage with target audiences. Collaborating with relevant influencers enables P&G to tap into their followers’ trust and credibility, amplifying brand messages.

    Procter & Gamble Super Bowl 2020 TV Commercial When We Come Together Featuring Sofia Vergara

    Purpose-Driven Marketing

    P&G is committed to making a positive impact on society. By aligning its marketing efforts with social causes, P&G not only promotes its brands but also raises awareness and drives meaningful change.

    P&G India Shiksha Campaign
    P&G India Shiksha Campaign

    Digital Transformation

    P&G recognizes the importance of digital channels in reaching and engaging consumers. They harness the potential of social media, online advertising, and e-commerce to connect with a tech-savvy audience and drive online sales.

    Data-Driven Insights

    P&G harnesses the power of data to gain valuable insights into consumer behavior, preferences, and market trends. These insights inform their marketing strategies, enabling P&G to make data-backed decisions that drive results.

    P&G - Integrated Growth Strategy
    P&G – Integrated Growth Strategy

    Global Localization

    P&G understands the importance of adapting marketing strategies to local markets. They tailor their campaigns to resonate with specific cultures, customs, and preferences, ensuring maximum relevance and connection with diverse audiences.

    Brand Differentiation

    P&G makes each of its brands stand out in every product category. Each brand has something special that makes it different from competitors. P&G builds strong brand identity by showing unique features, benefits, and emotional appeal. This helps attract customers and keep them loyal.

    Continuous Advertising and Promoting

    P&G always stays active in advertising and promotions. It spends a lot on ads to keep its brands well-known. P&G sponsors big events, works with sports teams, and uses celebrities to make people remember its brands.

    Commitment to Quality and Sustainability

    P&G’s success comes from its focus on quality and sustainability. It ensures high standards through strict quality checks, building trust with consumers. At the same time, P&G works to protect the environment by reducing packaging waste, saving water, and using renewable materials.

    Conclusion

    P&G’s marketing strategies exemplify excellence and consumer-centricity. P&G has cemented its position as a global leader. Start-ups can learn valuable lessons from P&G’s marketing strategies, including the power of understanding consumer needs, leveraging technology, and creating impactful brand experiences. Aspiring marketers should take inspiration from P&G’s success and strive to emulate their commitment to excellence, innovation, and customer satisfaction. The world of marketing can undoubtedly benefit from studying the strategies employed by this iconic company.

    FAQs

    What is P&G target market?

    Procter & Gamble (P&G) targets a diverse range of consumers, including millennials, Gen Xers, and baby boomers.

    What are the marketing strategies employed by Procter and Gamble (P&G)?

    Below are the marketing strategies employed by P&G –

    • Consumer-Centric Approach
    • Innovation and Product Development
    • Emotional Storytelling
    • Influencer Collaborations
    • Purpose-Driven Marketing
    • Digital Transformation
    • Data-Driven Insights
    • Global Localization
    • Brand Differentiation
    • Continuous Advertising and Promoting
    • Commitment to Quality and Sustainability

    How does P&G distribute their products?

    P&G uses a multi-channel distribution strategy to ensure its products are widely available. This includes selling through retail stores like supermarkets and pharmacies, e-commerce platforms like Amazon, wholesale distributors, and direct-to-consumer channels through its own websites. Additionally, P&G supplies products to institutional clients like hotels and hospitals, ensuring broad market reach and accessibility for consumers across urban and rural areas.

    What did Procter and Gamble do to promote their product?

    Procter & Gamble promotes its products through advertising, celebrity endorsements, sponsorships, and social media campaigns. They also use innovative marketing strategies like targeted ads, influencer partnerships, and promotional events to boost brand visibility and customer engagement.

    What is market segmentation of P&G products?

    P&G segments its market by demographics (age, gender, income), geography (region-based preferences), psychographics (lifestyle, values), and behavior (buying habits, brand loyalty) to target diverse consumer needs globally.

  • Dabur Business Model | How Dabur Makes Money

    Dabur is one of India’s most reputable and well-known household brands; therefore, it doesn’t need an introduction. The 140-year-old Ayurvedic firm Dabur began as an Ayurvedic medication manufacturer in 1884. Since its modest beginnings in Kolkata’s backstreets, Dabur India Ltd. has grown into a consumer goods corporation with the world’s broadest range of herbal and natural products.

    About Dabur

    Dabur has effectively transitioned from a family-owned company to a professionally run firm. With sales of over INR 12,886 crores and a market valuation of over INR 106,569 crores as of December 2024, Dabur India Ltd. is one of the top FMCG firms in India. Building on more than 140 years of quality and experience, Dabur is currently the most reputable brand in India and the biggest provider of natural and Ayurvedic healthcare worldwide.

    With a range of more than 250 Ayurvedic products, Dabur India is also a global leader in Ayurveda. Nine different power brands are currently part of Dabur’s FMCG portfolio in India: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika are a powerful global brand.


    Top FMCG Companies In India Running Successfully in 2024
    The top FMCG companies in India have contributed significantly to the economy. Find out what these top FMCG companies are.


    Dabur Business Model

    Dabur has remained loyal to its rich history and 140 years of quality and experience by earning the title of “custodian of Ayurveda.” Dabur is currently the biggest “science-based” ayurvedic company in the world. With a strong commitment to Ayurveda, Dabur has spent more than a century creating products using a range of scientific interventions to demonstrate the benefits of Ayurveda and its constituents. By providing goods that perfectly capture the benefits of Ayurveda and align with consumer tastes, Dabur offers a distinctive platform.

    Dabur will keep emphasizing the “herbal and natural” offer as its central tenet both domestically and internationally in the future.


    Success Story of Dabur: An Indian Born Multinational Company
    Dabur is a multinational consumer goods manufacturing company that is well recognized for its Ayurvedic medicine and natural consumer products.


    How Dabur Makes Money | Dabur Revenue Model

    Though Brands

    Brands are strategic assets because they provide great experiences and engage with customers on an emotional and rational level.

    70% of Dabur’s overall sales come from nine power brands. These consist of one brand in foreign markets and eight in India (Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika). Given its 140-year history, Dabur has a legitimate right to triumph in the healthcare sector, where the majority of power brands operate. The company’s mission to be committed to the health and well-being of every household is reflected in the items it offers.

    Through Digitisation

    For Dabur, using digital transformation to stimulate innovation and growth is not a novel requirement. By pursuing an aggressive eCommerce and digital marketing strategy to capture the expanding market size of millennials and Gen Z, Dabur is capitalizing on the digital revolution. They conduct targeted advertising on a variety of digital platforms to appeal to young people, and they supplement these efforts with more easily accessible products on e-commerce and online marketplaces.

    By Dominating the Rural Market

    One of Dabur’s primary strategic focus areas is the country’s rural market. Dabur’s domestic market sales are among the largest in India’s FMCG sector, with approximately 47% coming from rural areas. To access this expanding customer base, Dabur has been focusing on expanding its direct reach to villages around the country. They have expanded their distribution network to include about 90,000 communities and 1.3 million outlets.

    USP of Dabur

    Dabur is a unique player in the consumer products market because of its USP, which is its focus on health and wellness segment. In order to grow its market share, brand will thus keep using this as a competitive advantage.

    Dabur SWOT Analysis

    Dabur SWOT Analysis
    Dabur SWOT Analysis

    Dabur Strengths

    • Dabur distributes its goods through 5000 distributors and 3 million outlets in more than 60 countries.
    • Dabur’s strong product development and brand image.
    • A robust distribution system with a vast supply chain.
    • Health care, education, and other socioeconomic activities are among Dabur’s welfare initiatives.

    Dabur Weaknesses

    • International and major domestic competitors pose a serious threat to Dabur products.
    • With a wide range of consumer preferences and pricing tactics, the FMCG sector is vibrant and fiercely competitive.
    • For FMCG companies, regulatory compliance is higher in Indian markets.

    Dabur Opportunities

    • Acquisitions and mergers to bolster the brand.
    • Because of its tremendous brand recognition, Dabur is a household name even in rural places.
    • Demand for Ayurvedic products is rising both domestically and internationally.

    Dabur Threats

    • The buyers and sellers in monopolistic competition are numerous. However, none of them sell identical goods. Although all dealers sell somewhat different things, the products are comparable. This industry is therefore quite competitive.
    • Dabur offers a vast array of products and a huge portfolio. Local brands pose a risk of duplication since they could produce identical goods and market them under Dabur’s name.

    Conclusion

    With more than 250 herbal and Ayurvedic products in its portfolio, Dabur is the largest Ayurvedic and natural healthcare firm in the world and a prominent FMCG brand in India thanks to its strong track record. It continues to have a distinct outlook on the future. Nonetheless, there are several obstacles due to rivals and laws controlling the FMCG sector. Dabur is positioned to play a big part as India expands and the demand for natural healthcare rises.

    If the business manages its difficulties effectively and seizes future opportunities promptly, it emerges as a real victor over its rivals. Additionally, before making any investing decisions, we advise speaking with your financial advisor.

    FAQs

    When was Dabur founded?

    Dabur was founded in Kolkata by Ayurvedic practitioner S. K. Burman in 1884.

    What are the nine different power brands of Dabur?

    Nine different power brands that are currently part of Dabur’s FMCG portfolio in India include Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin Hara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, and Dabur Vatika are a powerful global brand.

    How does Dabur make money?

    Dabur makes money through its different brands, digitisation, and dominating the rural market.

  • FMCG Giant Hindustan Unilever Limited (HUL) Case Study

    Hindustan Unilever Limited (HUL) is a British-Dutch assembling organization headquartered in Mumbai, India. The items of Hindustan Unilever Ltd incorporate nourishments, drinks, cleaning specialists, individual consideration items, water purifiers, and purchaser merchandise. HUL was set up in 1933 as Lever Brothers and following the merger of its constituent gatherings in 1956, HUL was renamed Hindustan Lever Limited. The organization was then renamed in June 2007 as “Hindustan Unilever Limited”.

    At the start of 2019, the Hindustan Unilever Limited portfolio had 35 items marked in 20 classifications and utilized 18,000 representatives with offers of Rs. 34,619 crores in 2017-18. In December 2018, HUL reported its procurement of Glaxo Smithkline’s India business for $3.8 billion out of an all value merger manage ratio of 1:4.39.

    However, the joining of 3800 representatives of GSK stayed questionable as HUL expressed there was no provision for maintenance of workers in the deal. In January 2019, HUL said that it hopes to finish the merger with Glaxo Smith Kline Consumer Healthcare (GSKCH India) this year.

    History And Journey Of Hindustan Unilever
    Brands And Products Of Hindustan Unilever
    Business Model of HUL
    Business Growth In India
    Expected Future Growth

    HUL Logo

    History And Journey Of Hindustan Unilever

    Hindustan Unilever Limited (HUL) is India’s biggest quick-moving customer merchandise organization. HUL works in seven business sections.

    The cleanser segment incorporates cleansers, cleanser bars, cleanser powders, and scourers. Individual items incorporate items in the classifications of oral consideration, healthy skin (barring cleansers), hair care bath powder, and shading beautifiers. Refreshments incorporate tea and espresso.

    Nourishments incorporate staples (atta salt and bread) and culinary items (tomato-based items natural product-based items and soups). Frozen yogurts incorporate frozen yogurts and solidified treats. Others incorporate synthetic substances and water business.

    HUL’s item portfolio incorporates family unit brands—for example, Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair and Lovely, Pond’s, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, and Bru, Knorr, Kissan, and Kwality Wall’s. HUL is a backup of Unilever, one of the world’s driving providers of food products, home care, personal care, and refreshment items with deals in more than 190 nations and a yearly turnover of $6.08 billion in 2020.


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    History Of Hindustan Unilever (HUL)
    History Of Hindustan Unilever Limited (HUL)

    Hindustan Unilever Limited traces its origins to Unilever, a British-Dutch multinational company, which is the parent of HUL. William Hesketh Lever was a popular social reformer and is regarded as one of the main propagators of several significant employee benefits options like benefits of health, savings, and more. Thus, his ideologies largely seeped into Unilver and resulted in developing its strong sense of corporate responsibility and leadership. This culture was invariably passed on to the Hindustan Unilever Limited (HUL).

    The British-Dutch company Unilever, which emerged as a result of the merger of the operations of Dutch Margarine Unie and British soapmaker Lever Brothers, when it first came to India, discovered the rich and largely unexplored potential of the Indian market. Soon after, the establishment of Hindustan Vanaspati Mfg. Co. Ltd. followed in 1931, which was succeeded by the foundation of Lever Brothers India Limited (1933) and United Traders Limited (1935). The Indian subcontinent had only been importing FMCG products, branded under Lever Brothers since then, the first of which were spotted as early as 1888. Following this, brands like Lifebuoy stepped in 1895, along with other famous companies like Pears, Lux, and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

    The 3 Unilever companies – Hindustan Vanaspati Manufacturing Company, Lever Brothers India Limited, and United Traders Limited eventually merged together to form HUL in November 1956. HUL offered 10% of its equity to the Indians and soon swooped into the news, being the first foreign subsidiary to do so.

    The organization obtained Lipton in 1972, and Lipton Tea (India) Ltd was consolidated in 1977. Brooke Bond joined the Unilever overlap in 1984 through a global obtaining. Lake’s (India) Ltd joined the Unilever overlap through a worldwide securing of Chesebrough Pond’s USA in 1986.

    The progression of the Indian economy, which began in 1991, denoted an enunciation in the organization’s development bend. The expulsion of the administrative structure enabled the organization to investigate every item and open-door section with no imperatives on the creation limit. At the same time, deregulation allowed acquisitions and mergers.

    The Tata Oil Mills Company (TOMCO) converged with the organization with effect from April 1, 1993. In 1996, Unilever and Lakme Ltd framed a 50:50 joint endeavor, Lakme Unilever Ltd, to advertise Lakme’s market-driven beautifiers and other suitable results. In 1998, Lakme Ltd offered its brands to Unilever and stripped its half stake in the joint venture.

    In 1994, the organization and US-based Kimberly Clark Corporation framed a 50:50 joint endeavor—Kimberly-Clark Lever Ltd—which markets Huggies Diapers and Kotex Sanitary Pads. The organization likewise set up a backup in Nepal called Unilever Nepal Limited (UNL). UNL’s production line speaks to the biggest assembling interest in the Himalayan kingdom. In the1992, Brooke Bond gained Kothari General Foods with critical interests in instant coffee.

    In 1993, HUL acquired Kissan from the UB Group and the Dollops ice-cream business from Cadbury India. Tea Estates and Doom Dooma, two major organizations of Unilever, were converged with Brooke Bond. At that point, in 1994, Brooke Bond India and Lipton India converged to shape Brooke Bond Lipton India Ltd (BBLIL) to empower more noteworthy concentration and guarantee collaboration in the customary beverages business. BBL converged with Unilever with effect from January 1, 1996.

    The internal rebuilding finished with the merger of Pond’s (India) Limited (PIL) with HUL in 1998. The two organizations had huge covers in personal products, specialty chemicals, and export organizations; other than a typical appropriation framework since 1993 for personal products. The two additionally had a typical administration pool and an innovation base.

    In January 2000, the administration chose to grant 74% value in Modern Foods to Unilever. This started the divestment of government value in open division endeavors (PSU) to private area accomplices. The organization’s entrance into bread production is a key augmentation of the organization’s wheat business. In 2002, the organization procured the administration’s residual stake in Modern Foods.

    Journey Of Hindustan Unilever
    Journey Of Hindustan Unilever

    In 2002, the organization made its entry into Ayurvedic well-being with its Ayush item range and Ayush therapy centers. In 2003, the organization procured the Cooked Shrimp and Pasteurized Crabmeat business of the Amalgam Group of Companies, an innovator in marine products trades. Additionally, the organization propelled Hindustan Unilever Network Direct to home business. In 2004, the organization launched the ‘Pureit’ water purifier.

    In 2005, Lever India Exports, Lipton India Exports Ltd, Merry climate Food Products, Toc Disinfectants Ltd, and International Fisheries Ltd were amalgamated within Unilever. In February 2006, Vasishti Detergents Ltd (VDL) converged with Unilever. In September 2006, Modern Foods Industries (India) Ltd & Modern Foods and Nutrition Industries Ltd were included. In October 2006, Unilever stripped its 51% controlling stake in Unilever India Shared Services Ltd, currently known as Capgemini Business Services Pvt. Ltd., to Cap Gemini SA.

    In March 2007, Sangam Direct, a non-store home conveyance retail business managed by Unilever India Exports Ltd (UIEL) and a completely possessed auxiliary, was moved to Wadhavan Foods Retail Pvt Ltd (WFRPL) in a droop deal business. Likewise, Unilever completed the demerger of its operational offices in Shamnagar, Jamnagar, and Janmam and shaped three autonomous organizations —Shamnagar Estates Ltd., Jamnagar Properties Ltd, and Hindustan Kwality Walls Foods Ltd. In June 2007, the organization changed its name from Hindustan Lever Ltd to Hindustan Unilever Limited.

    In 2008, the organization reported its coordinated efforts with the Indian Dental Association (IDA) related to World Dental Federation (FDI) through the Pepsodent brand to help improve the oral well-being and cleanliness benchmarks in India. In April 2008, the organization demerged and moved certain immovable properties to Brooke Bond Real Estates Pvt Ltd. In January 2010, the organization introduced its new corporate office.

    In April 2010, Unilever affirmed the plan of amalgamation of Bon Ltd, an entirely possessed backup of Hindustan Unilever Limited, with it. The selected date for the previously mentioned plan was 1 April 2009 and the plan was made viable from April 28, 2010. Ensuing to the amalgamation, Bon Ltd stopped being an auxiliary of the company.

    During 2010-11, Kissan forayed into a new market fragment in three major classifications. It propelled Kissan Fruit and Soya, a delightful mix of organic product juice and soya milk, which appreciated a separated suggestion in this market. The brand likewise went into the Indian (non-sweet) spreads showcase with the dispatch of Kissan Creamy Spread over key towns. In the bakery division, the organization propelled two new items—Chapi and Cream Rolls. The organization stripped 43.31% stake in Hindustan Field Services Pvt Ltd for Smollan Group (the JV accomplice).

    Along these lines, Hindustan Field Services Pvt. Ltd. stopped being a backup organization. Lakme Lever Pvt Ltd, a completely claimed auxiliary of HUL, extended the system of Lakme Beauty Salons in that year with the opening of 11 franchises and oversaw salons alongside 18 franchisees’ salons.

    In December 2011, the organization demerged the FMCG sends-out business, including explicit fares related to assembling units of the organization, into its entirely claimed backup Unilever India Exports Ltd (UIEL). The plan wound up successful on January 1, 2012.

    Hindustan Unilever - One Team One Dream
    Hindustan Unilever Limited- One Team One Dream 

    In 2012, the organization went into a concurrence with Unilever to showcase Brylcreem in India. During the year under audit, Unilever and elements of Piramal Realty (Ajay Piramal Group) consented to an arrangement for the task of HUL’s leasehold privileges of the land and building named Gulita arranged at Worli Sea Face Mumbai for an exchange estimation of Rs. 452.5 Crore.

    On 22 January 2013, the Board of Directors of HUL affirmed a proposition to consent to another arrangement with its parent organization Unilever for the arrangement of innovation exchange imprint permit, trademark registration, and other services on 1 February 2013. This new understanding underlined that the loyalty cost of 1.4% of turnover payable by HUL to Unilever will increment in a staged way to an eminence cost of 3.15% of turnover, no later than the money-related year finishing 31 March 2018.

    The expansion in eminence cost in the period from 1 February 2013 to 31 March 2014 is assessed to be 0.5% of turnover and from there on in the scope of 0.3% to 0.7% of turnover in each money related year, paving the way to a complete evaluated sovereignty cost increment of 1.75% of turnover contrasted with existing courses of action no later than the monetary year finishing 31 March 2018.

    In 2014, Unilever reported an organization with Internet.org, a Facebook-directed coalition of accomplices to see how web access can be expanded to contact millions of individuals crosswise over India. The organization additionally dispatched Prabhat activity for network improvement in towns around its industrial facilities during the year under survey. Furthermore, the organization also went into association with MTV to embrace its brands during the year under review. In 2015, the organization propelled The Unilever Foundry.

    During the year under audit, the organization was perceived as the most inventive advertiser at the Mobile Marketing Association (MMA). The organization additionally resuscitated Ayush with e-dispatch during the year. Besides, it also propelled the ‘Swachh Aadat Swachh Bharat’ program in India during the year under review. On 8 September 2015, HUL reported that it has further consented to bring forth an arrangement for the deal and the transfer of its bread and pastry shop business under the brand Modern to Nimman Foods Private Limited, an investee organization of the Everstone Group, for an undisclosed amount.


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    Brands And Products Of Hindustan Unilever

    HUL is the market chief in Indian buyer items with products in more than 20 purchaser classes (for example, cleansers, tea, cleansers, and shampoos among others). Sixteen of HUL’s brands were included in the ACNielsen Brand Equity rundown of 100 Most Trusted Brands Annual Survey (2014) which was completed by Brand Equity, an enhancement of The Economic Times. There are many brands and products owned by Hindustan Uniliver:

    Brands And Products Of Hindustan Unilever Limited (HUL)

    Food Products

    • Annapurna salt and Atta (once known as Kissan Annapurna)
    • Bru gold
    • Brooke Bond 3 Roses, Taj Mahal, Taaza and Red Label tea
    • Kissan squashes, kinds of ketchup, squeezes and sticks
    • Lipton ice tea
    • Knorr soups and supper creators and soupy noodles
    • Kwality Wall’s solidified treat
    • Modern Bread, prepared to eat chapattis and other pastry shop things (presently offered to Everstone Capital)
    • Magnum (ice cream)

    Homecare Brands

    • Wheel cleaner
    • Cif Cream Cleaner
    • comfort cleansing agents
    • Domex disinfectant/toilet and bathroom cleaner
    • Rin detergent products
    • sunlight cleanser and shading care
    • Surf Excel cleanser and delicate wash
    • Vim dishwash
    • magic – Water Saver

    Personal Care Brands

    • Aviance Beauty Solutions and products
    • Axe deodorant and aftershave lotion and soap and accessories
    • Lever Ayush Therapy ayurvedic health care and personal care products and items
    • International breeze
    • Brylcreem hair cream, hair gel and hair products
    • Clear anti-dandruff hair products
    • Clinic Plus shampoo and oil
    • Close Up toothpaste
    • Dove skin cleansing & hair care range: bar, lotions, creams, and antiperspirant deodorants
    • Denim shaving products
    • Fair and Lovely, skin lightening cream
    • Hamam
    • Indulekha ayurvedic hair oil
    • Lakmé beauty products and salons
    • Lifebuoy soaps and handwash range
    • Liril 2000 soap
    • Lux soap, body wash, and deodorant
    • Pears soap, body wash
    • Pepsodent toothpaste
    • Pond’s talcs and creams
    • Rexona
    • Sunsilk shampoo
    • Sure antiperspirant
    • Vaseline petroleum jelly, skincare lotions
    • TRESemmé
    • TIGI
    • Vaseline and relevant products

    Water Purifier Products

    • Pureit water purifier

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    Business Model of HUL

    Hindustan Unilever is an FMCG company that leverages its Direct to Consumer (D2C) business model and has made over 50 billion in revenue, as discovered in 2017. The company has crossed INR 50,000 cr ($6.55 bn) in turnover during FY21, as per the reports on April 2022. HUL is the first pure FMCG brand to hit such a milestone.

    The business model of Hindustan Unilever is propelled with the idea of making living sustainable feasible for the masses. With sustainable living, HUL wants to bring about:

    • Bettering the future of the children
    • A future full of confidence
    • A future full of health
    • A future that is better for the planet
    • A future that is better for the farming and farmers of India

    The beauty and personal care segment of Hindustan Unilever helps the company see the most profit, while the food and refreshments segment is declared as the fastest-growing segment of the company. Home care is another segment of the company among its 3 primary segments.

    The Hindustan Unilever company gets its competitive advantage from the global footprint it has and the track record of the company for enhancing value for its consumers around the globe.

    Some of the prominent patterns that are noticeable in the business model of HUL are:

    Reverse Innovation

    Reverse innovation refers to the process of building products for industrial countries and then adapting them to the emerging markets. The technique of reverse innovation is what is truly wielded by HUL, which has been a prominent inspiration for many other big brands. The ‘Knorr Stock Pot’ that the brand came up with is an excellent example of leveraging reverse innovation. This technique was mastered by HUL by taking references from the famous ‘Dense Soup treasure,’ which was the first major example of reverse innovation, launched in China in 2007.  

    Focussing on the financially weak

    In contrast to the other foreign subsidiaries, HUL ideated to focus on the financially weaker sections of the country, which led them to focus on the majority of the Indian people. Citing the discovery of Wheel detergent powder is one of the examples where Hindustan Unilever created products for the majority of the Indian consumers. Wheel had lower oil-to-water ratio, which enabled Indian to wash textiles even in rivers with hands. Wheel was then made available cleverly by the brand in the local corner shops as well as via door-to-door representatives.

    Staying keen on the Triple Bottom Line

    While most of the companies solely focus on the profit part of the follow the Triple Bottom Line with only a little focus on the other segments, HUL has a new approach where the brand decided aimed for the other segments, thereby caring for people and the planet.  

    HUL largely focuses on the people, including its consumers and others. For instance, the company changed the name of one of its popular products “Fair and Lovely” to “Glow and Lovely”, following the All Black Lives Matter movement that raged globally. This instantly made HUL a favourite!  

    Significant Distribution Strategy

    The distribution strategy that Hindustan Unilever follows is exemplary! It focuses on hyperlocal markets, retail stores, wholesalers, hypermarkets convenience stores, ecommerce, and more. This hugely helps in the promotion of the HUL products and moving them fast to the consumers!

    Business Growth In India

    FMCG giant Hindustan Unilever Limited (HUL) announced a 15.98% development in solidified net benefit at Rs 6,060 crore for the monetary year finished March 31, 2019, when contrasted with Rs 5,225 crore in 2018. The net profit that HUL witnessed in FY21 rose by 18% YoY at Rs 7,954 crore.

    Business Growth Of Hindustan Unilever
    Business Growth Of Hindustan Unilever

    Remarking on the profit, HUL Chairman and Managing Director Sanjiv Mehta stated, “We have conveyed a solid execution for the quarter regardless of some balance in rustic market development. Our attention to fortifying the center and driving business sector advancement has been reliably conveying great outcomes. We have now developed top line and primary concern for the eighth continuous year and our 2019 outcomes were a demonstration of both our technique and execution.”

    Growth Of Hindustan Unilever
    Growth Of Hindustan Unilever

    “Given the large-scale monetary pointers, close term advertise development has directed. Notwithstanding, the medium-term viewpoint remains positive. As an association, we are well-situated to react with speed and nimbleness to address the issues of our shoppers. We stay concentrated on our vital plan of conveying predictable, focused, beneficial, and dependable development,” he included.

    “Together with the between time profit of Rs 9 for each offer, the all-out profit for the money-related year closure March 31, 2019, adds up to Rs. 22 for every offer,” the organization said. “Combined income for 2018-19 remained at Rs 39,860 crore, up from Rs 36,622 crore a year sooner,” HUL said in a document to the Bombay Stock Exchange.

    Hindustan Unilever's Volume Growth
    Hindustan Unilever’s Volume Growth

    HUL’s business in India developed by 12%, driven by 10% volume development in the household advertise. In the January-March quarter, the organization posted 13.84% development in its independent net benefit at Rs 1,538 crore when contrasted with Rs 1,351 crore in a similar quarter a year ago. The offers of the organization remained at Rs 9,809 crore in Q4FY19 from Rs 9,003 crore in Q4FY18, enrolling a development of 8.95%. The working benefit (EBITDA) for the March quarter was up 13% year-on-year at Rs 2,321 crore and the EBITDA edge was up 90 bps.

    Challenges Ahead Of Hindustan Unilever
    Challenges Ahead Of Hindustan Unilever

    The organization said that the edge improved because of judicious administration of instability in costs (unrefined and money driven) alongside improved blend and working influence.

    HUL reported that its Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 11,324 crore, while the EBITDA margin was reported to be 25% during FY21.


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    Expected Future Growth

    Hindustan Unilever NSE 0.01 % (HUL) may clock 9-10% development in June quarter benefit despite a slight balance in volumes because of value climbs crosswise over classes. IIFL Institutional Equities expects the FMCG major to report a 6% volume development, a slight control from the 7% volume development recorded in the past quarter.

    Growth Prediction Of Hindustan Unilever
    Growth Prediction Of Hindustan Unilever

    “Our channel checks give us a feeling that the organization has started value climbs crosswise over classes, (for example, cleansers, espresso), among others. We along these lines gauge a business development of 9%, like the past quarter level. We expect the slight withdrawal in gross edge to be counterbalanced by influence in promotion spending and different costs. In general, EBITDA and PAT are relied upon to develop at 13% and 12%, individually,” IIFL said. IDFC Securities expects HUL to report 10.3% to ascend in benefit at Rs 1,728 crore. It sees deals developing at 8% to Rs 10,250 crore.

    “We expect 6% volume development and factor in deals development of 11% in home consideration and 7% in close to home consideration portions. Lower advertisement spends (down 80 bps YoY) and commands over different overheads will help EBITDA edges,” it stated while proposing edge at 24.3% against 23.7% the previous year. Edelweiss sees income, Ebitda, and benefit development at 7.3%, 8.6%, and 7.7% YoY.

    Hindustan Unilever's Performance In Past Years
    Hindustan Unilever’s Performance In Past Years

    “We anticipate that HUL’s volume should grow 5% YoY on a high base of 12% YoY development. Q1FY18 was affected by GST dispatch thus the best approach to take a gander at volume development is three years’ normal, which will be 5.6%. Delicate quality in the second 50% of Q4FY19 proceeded for the full quarter in Q1FY20. Provincial development is presently at a similar level as urban development. A mixed value climb of 2.5% has been taken. On EBITDA edge front, we expect 20-30 bps YoY development,” the business said.

    FAQs

    What is Hindustan Unilever origin?

    Hindustan Unilever or Hindustan Unilever Limited (HUL) is an Indian subsidiary of Unilever, which sprung from its Dutch-British roots. HUL is headquartered in Mumbai.  

    Who is the owner of Hindustan Unilever Limited?

    HUL is owned by Unilever, its British multinational parent, headquartered in London.

    What is HUL?

    HUL is the acronym for Hindustan Unilever Limited.

    Who are Hindustan Unilever founders?

    Hindustan Unilever founders can be cited as 3 parent companies – Hindustan Vanaspati Mfg. Co. Ltd., Lever Brothers India Limited, and United Traders Limited, which were merged to form HUL.

  • Business Model Of ITC Limited: How Does ITC Make Money?

    The height to which a business can be taken is sometimes hard for the eyes to meet. Some turn out to be pro at this, whereas sum ends up with nothing on this earth.  Several factors together build up to make a successful business stand; it becomes tough and competitive to keep all the elements simultaneously. Some minds prefer sticking to one type of business. On the other hand, some reasons go a step ahead creating various branches on which their business runs.

    Likewise, ITC limited is one that comes under the second category. With utter determination, it has become a well-renowned brand that pops up in nearly every advertisement that we come across. Not just stopping at one-way success, ITC made sure that it ends up ruling its domain. So here in the lines which follow, we will be sailing through the functioning and execution of the ITC limited.

    About ITC limited
    Business Model of ITC
    What is unique in the business model of ITC
    How does ITC make money?
    Conclusion
    FAQs

    ITC Limited Business model analysis

    About ITC limited

    1910 being the birth year of this highly established company, Kolkata in West Bengal houses its headquarters. Generally, ITC can be simply understood as a multi-industry company with its working hands in more than one business field. And that too is confined to single geographical coordinates, instead of growing with many locations in hand. However, the source of these hands is familiar with Sanjiv Puri as the chairman and managing director of this company breaths.

    Areas of operation

    The Indian subcontinents being the central arena to work on. Which further have countries like India, Nepal, Bhutan, Sri Lanka, Bangladesh. Besides that, the Gulf countries also get a taste of their business.

    Essential products and services

    ITC Products
    ITC Products

    As stated earlier, ITC is no one business company. Hence there’s a wide range of products this company houses. Because of this wide range of variety, it attracts the masses and meets the needs at large. If we go on having a quick look over the list would start from ;

    1. FMCG products: The light hectic free products from packaged food, household items, cosmetics, items we need daily, etc. Its fast-moving products include brands related to personal care products such as Fiama, Vivel, and Superia, stationery products such as Classmate, packaged food products such as Aashirvaad, Lychee Flavour, Bingo!, Sunfeast Dream Cream biscuits. Matchsticks and incense sticks such as Mangaldeep are also included under ITC’s products.

    2. Apparel: With fashion being a significant component in our lives, it was a good move on the part of ITC to have a competition in this too. John Players, ITC’s apparel brand, serves its customers with quality formals, casuals, denim, and accessories.

    3. Cigarettes: Named the tobacco company in its early days, cigarettes and tobacco were ITC’s initial products. Wills, the globally renowned cigarette brand by ITC, also serves its broad audience with designer wear, formal wear, casual wear, evening wear apart from cigarettes. Other popular cigarette brands include Scissors, Classic, Gold Flake, Flake, Insignia, Navy Cut, Briston, etc.

    4. Hotels and resorts: It’s one of the best investments, no doubt. ITC also holds its name under the list of premium hotels. Welcomhotel, ITC Hotels, Fortune Hotels, and Welcomheritage Hotels are the premium brands of hotels. These hotels have over 100 hotels spread across 70 destinations.

    5. Agribusiness: ITC ranks second in providing agri-products which include feed ingredients such as soya meal, marine products such as prawns and shrimps, food grains such as wheat, barley, maize, processed foods, and coffee.

    6. Paperboards & Packaging: ITC’s paperboard products include paperboard, specialty paper, graphic paper, and others. Apart from this, ITC provides printing services for both Indian and international clients.

    7. ITC Info Tech: ITC also provides business-friendly technical solutions related to manufacturing, banking, finance, travel, and healthcare.


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    Target audience of ITC

    Fixing a confined group to such a massive range of products and services is somewhat nearly impossible. With its diverse ability to produce constantly keeping the variety in front, it draws every pair of eyes and ears irrespective of the age group. That too from every field possible.

    Day by day, ITC is extending its services and targeting audiences from every age group. ITC has to go hand in hand with the people’s choice, which varies with every square kilometre. Thus, to suit every individual’s need, the company is always in a constant state of polishing itself. It makes sure that it takes people of all ages under its production umbrella in a way that makes room for everybody’s needs.


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    Business Model of ITC

    ITC Limited Logo
    ITC Limited Logo

    Hence, to build its revenue without any hindrance, the company has a beneficial business model on its table. ITC makes sure that it produces something new to attract the audience. This way, they would be drawn like magnets, end up investing in the latest products in the market.

    To get people to know about the new launches, it also never lags in displaying those. Along with that, back in the company’s production house, there’s always constant research about the mass. It helps in designing their upcoming innovation according to the audience’s feedback.

    To carry on the smooth functioning of the company, the resources have to be rigid. The infrastructures, physical inputs of the employees, transportation, and storage are valuable resources. These also include a set of experienced workers who know the mass from a closer perspective. And thus, insist on producing what should be the following product. These resources are like the pawns of the company. As a group, they contribute a significant amount to the revenue bar of the company.

    The customer gets a symbol of the wise company not to remain put with the profit from a particular segment. Likewise, ITC, by being an all-friendly company thinks about, the needs of every age group. Also, people of every geographical region. Every human should feel the essence of its products. Be it an urban or rural,  a small town or big city, ITC makes sure that the products reach every hand that searches for them. Hence, getting inputs from all directions helps the company with better motivation and finance as well.

    ITC being such a vast organization has the best value services for its customers. As it is confined to a single sector of producing, the customers are provided with a variety of offers and reasons to visit the company’s doorstep. The central bullet point is that all these services root from a single branch.

    To sell its products, ITC never falls short of platforms. It is evident that for such a vast project, several stations would be required to enter the market. Thus, the online distribution network is a convenient way. Apart from that, all sorts of apps designed by or for ITC do the job. It attracts, gives ideas, and makes aware people of the existence, efforts, and production of ITC. All these factors shape the business model of ITC.

    What is unique in the business model of ITC

    Starting from consumables to household items and paperboards, ITC does its best to satisfy its audience. A hard-to-count bunch of products brings ITC its title of being the most renowned producer. Apart from a small loophole of producing tobacco, the rest of its products are high on demand always.

    There’s no doubt that ITC has a robust network when it comes to the delivery of products. Production, storage, and delivery of such large quantities would sit on a vast expanse of land. That, too, ITC has well-taken care of. It is making sure that its products reach the assigned location in the minimum time possible.

    In the initial days, ITC diversified its resources and extended its business across many different sectors. It helped it create its brand presence which ITC utilized while entering into the FMCG sector. Moreover, ITC’s diversified business has led to reduced costs of outsourcing. The interrelation between its businesses has helped it grow and establish itself.

    How does ITC make money?

    Breaking down the streams of revenue, cigarettes contribute to about 77% of its revenue generation. On the other hand, paperboard & packaging contribute about 7.3% to the payment. Looking at other products, their agri-business contributes about 7.0%, hotels contribute about 4.3%, and FMCG products contribute about 4.0% to their total revenue.

    Conclusion

    Starting from scratch as a tobacco-producing company to being the ITC limited, this company has come a long way. Striding past innumerable competitors, it has gained what many dreams. Nevertheless, ups and downs are a combo pack that comes with every business. But with the amount of build-up ITC has already created, it would be a sweat-drenching process for any company to snatch the market from ITC. We, as consumers, with great delight, pick up the products of ITC without any second glance, which makes it even more invincible.

    FAQs

    What is main business of ITC?

    ITC Limited is an Indian conglomerate with diversified businesses in Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes, Apparel, Stationery Products, Incense Sticks, Safety Matches, Hotels, Packaging, and others.

    What is the revenue of ITC?

    According to the 2020 update, 52,001 crores is what the present revenue of ITC stands for.

    Who is the CEO of ITC?

    Sanjiv Puri was appointed as the CEO in February 2017 and continues with his post to date.

    How much debt does ITC have?

    329.35 crores are the debt amount ITC has, as recorded in March of 2021.