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ALIGNING STRATEGY AND PEOPLE AT HUL

10

INTRODUCTION Mission vUnilever's mission is to add Vitality to life. They meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life

Innovation vIn their scientific innovation to meet consumer needs they will respect the concerns of their consumers and of society. They will work on the basis of sound science applying rigorous standards of product safety.

Mr. Shreejit Mishra – Executive Director Foods

Mr. Gopal Vittal – Executive Director Home & Personal Care

Personal Wash

vLux vLifebuoy vLiril vHamam vBreeze vDove vPears vRexona

Fabric Wash

vSurf Excel vRin vWheel

Hair Care

vSunslik Naturals

Ayurvedic Personal & Health care v Ayush Colour Cosmetics

vLakme • Deodorants vAxe vRexona

House Hold Care

vVim Skin Care

vFair & Lovely vPond's vVaseline vAviance

Tea

vBrooke Bond vLipton Coffee vBrooke Bond Bru Foods vKissan vAnnapurna vKnorr Ice Cream vKwality Wall's

CHALLENGES FOR HUL Inflation reducing Profit vRaw materials vConsumer income reduction

Competition in Core Categories vEmerging player vAdvertising expenditure vPrice positioning vCompetitors focusing single category

CHALLENGES FOR HUL Consumer behavior vChanging habits vConfused with competitors product vTraditional habits

Global Exposure vGo Further-Go Faster vChallenge conventional wisdom

CHALLENGES FOR HUL Creating a different mind set Make something from waste Deal with a difficult visitor Help to improve nation’s nutrition Turn a problem into solution Give life an Extra-Flavor

Strategies followed by HUL Restructured in two divisions vFood vHome / Personal care products

Improvement in portfolio products v400 products selected vManufacturing reorganised in regional networks vIT systems reconfigured

Change in job management structure vReduction in managerial job classes vDevelop deep level expertise

Pioneer strategies Building markets and building brands Launch brands when innovation pipeline is full To deliver sustainable performance by looking

long term

Clarity of strategies where HUL want to win Transformational changes

Strategies followed by HUL Management strategies vDistingushment of job classes vCommitment to own professional development vGlobal Exposure to Managers vSound knowledge of local market

Self - development vEncompassed career planning and progression vLearning and development vRemuneration vReward system vCompetence dictionary vJob skill profile

Strategies followed by HUL Aspiration and personal growth needs Balance between private and professional life Emphasis in MDS

Strategies followed by HUL Who will be the manager? vHigh level performance vHave strong potential

Some Major Competitors Cavinkare Ltd vFairever

Procter & Gamble vTide

Marico group vHair oil and Food products

Nestle vCoffee

Dabur vHealth care products

Indian

Competitive Pre

Foods

Tata Tea Nestl

Personal

Colgat Balsar

Home

TOMCO Nirm Godrej

Post 90 Danon Kellogs Heinz Grand L’Orea Revlon Benckise Avon Oriflam Amwa P &G Henke Sara Lee

NET

PROFITS

:

1996-

Rs.Bn CAGR : 33.4 12.0

10.7

13.1

10.0 8.1

8.0 5.6

6.0 4.0

4.1

2.0 0.0 1

1

1

1

2

Note : Net Profit is after exceptional

Key Financials

Reported Growth

2

2

13.3%

9.4%

2 11.4%

* Before restructuring, disposal As per audited financial statements of the company; accounting as per Indian GAAP

HUL

vs

Particular Market Size - $ mln

Nearest

Laundr

Soaps

2

1

Shampo

Skin

Toothpast

542

698

691

Tea

Coffee

1

177

HUL Share

37.5%

54.3%

47.8%

54.5%

29.5%

22.7%

44.0%

Nearest Competitor

13.6%

9.7%

23.7%

7.4%

48.8%

20.8%

39.1%

Affluent

Aspiring

Striving

Financial Overview 2007 Mn $ Turnove

3

EBIT

499

EBIT %

14.4

PAT

448

Reported

487

EPS

21c

Market Operating

~1150 Cash

Soaps and Detergents 46%

Exports 10% Others 2%

419

Processed Foods 4% Icecreams 1%

Breverages 11%

Personal Products 26%

Analysis There is a crucial need to strategically place

brands on strong position. The time has come to differentiate various brands and solve the mess around. It is hard to differentiate blue competitive brands cash brands in case of HUL. Its not a good idea to choose a cshing brands for competitives moves. The only worry for HUL should be to avoid the multiple price wars. Product line proliferation is the one of the usual way to come out of this chakar vyu. But still there are many ways to get the competitors on their feet

PRESENTATION DONE BY M.K. VIGNESH J.SHIVARAMAN VIKAS QUERIES…??? AXAY BANYAL MOHAMED MAMOOTH KHAN THUSHAR GAURAV VERMA

Thank you..!!