Hindustan Unilever ltd. : Struggling in Market

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Hindustan Unilever ltd a market leader in FMCG segment is struggling now a days in market for sticking at own point. In other word for last few months HUL share has been declined. FMCG market comprises of 86,000 crore where HUL has strong holds on soap, detergents and household segment. In this segment HUL holds 49% market share. The more interesting point is competitor attacked HUL where they had strong hold and sales declined by end of third quarter. Management board had given target of 10% but by the end they could achieved only 5% in Indian market. That leads to fire on Nitin parapanje CEO of India division and visit of Unilever CEO paulman to retailer and distributors. In this post I will explain cause and effect relationship and concept of marketing related with topic. Marketing theory says being a market leader company should not be aggressive on attacking. They should focus on how to protect market share and be at the top. That's why sir Cotler had described defense strategy for market leader. However now a days marketers are thinking that theory is not working but I would say theory is working all the time but you should use at right time in right context. Indian FMCG company Godrej which you cannot think that could damage HUL has been damaged drastically. In the same period where growth of HUL was 5% and Godrej was 16%. One more interesting point over 4 years Godrej has grown almost thrice of HUL. Now you can think power of marketing strategy adopted by Godrej. During same period HUL owned subsidiary Unilever has spend 633 crore only on advertising and promotions.
Reason for sales decline: As far as marketing expert views and my analysis is concern these are following-
1. Attacked on detergent segment by competitors
2.Huge spending on advertising and Promotions
3. Didn't take care of close competitor
4. Some where rural market care compare to P&G
5. In aggressive marketing always talking about competitor. In other words promoting competitor rather that own company.
6. Ignorance of Retailer and distributor views and concern

However now it seems company is going on right track. According to marketers views are concern in spite of huge spending on advertising and promotion they should work upon retailers and distributors.Company should talk to retailers and distributors for getting pulse of market and competitors. One more important thing company should do is they should promote retailer for keeping more space on outlets. By the way Recently company has announced new and good project called "Perfect Store". In first phase nearly four thousand staff including CEO Nitin parapanje will visit mom and pop store and small kirana shop and will clean dust of shelves for boosting sales of detergent and personal care products. This is very good initiative taken by HUL for understanding business of retailing and problems as well. The reason is most obvious that problem is not with product but with the way you operates.

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