HindustanUnileverLimited(HUL) isIndiaslargestFMCGCompanytouching

livesoftwooutofthreeIndianswithitsproducts.Thecompanyhasover20product
linesinhomeandpersonalcaresegmentsandfoodandbeverages.Theseproduct
linescontributetocompanysportfoliowithascaleofcombinedvolumesofabout4
milliontonnesandsalesofnearlyRs.13,718crores.HULhasachievedasuccessful
portfoliobyfocusingongrowthstrategyandproductlinepruning.
HUL(previouslyHindustanLevers)devisedProjectMillennium,acomprehensive
transformationplantorestructureandmanagechangefrombeingalarge,diversified
conglomeratetobecomeaconfigurationofempoweredvirtualcompanieseachbuilt
aroundasinglecategoryofproducts.Later,itadoptedtheparentcompanyUnilevers
powerbrandstrategy.Thecompanyconcentratesonbrands,whichconstitutemost
ofthebusiness.Frommarketing110brandsin2000,HULreducedtheproductlineto
35power brandslike Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely,
Ponds,Sunsilk,ClinicPlus,Pepsodent,Closeupetc.Thesewerechosenonbasisof
their scale and potential. The company has divested or transferred noncore
business.
This has helped HUL achieve product differentiation and improvement in sales.
HULsproductshavenowbecomeapartoftheeverydaylifeofeveryIndian.Indian
consumersknowHULthroughitsproductsteasandfoods,soapsanddetergents,
shampoos and toothpastes, and cosmetics and deodorantswhich have become
householdnames.
TheUinHULstandsfortheconsumer(you)andalsoforUnilever.Ifoneweretocite
onlyonereasonforthesuccessofHULinIndia,itwouldundoubtedlybeattributedto
thisonenesswiththeconsumer.ThishasbroughtHULclosertotheheartofevery
Indianconsumer.

HULs product mix and

product lines clearly indicate
that it has a number of
productsforthesamepurpose
with different price tags for
different kinds of consumers,
that is, for different target
markets.
HULs strategy of offering a
brand for every need of the
consumer has apparently
workedwondersforHULand
is responsible for the
companys large market share
in

India.

HUL:Deodorants

Categorychosenof

Deodorant market in India: According to Nielsen, there are more than 500
deodorantbrandsinIndiatryingtowootheconsumer.Itisoneofthefastergrowing
categorieswithinpersonalcare.Thedeodorantmarketisgrowingat1718%year

overyear for the past three years. While male

deodorants contribute 69% to total sales,
women's categories aredrivingthemarketwith
faster growth. The number of subbrands and
variantsis986asofApril2014,withmorethan
100newlaunchesorrelaunchesoverthepast
year,accordingtoNielsenReport.
Consideringthelowpenetrationlevels,lowentry
barriersandincreasedaffluenceanddisposable
incomes,moreandmoreplayersareenteringthiscategory.Thereislittleornobrand
stickiness,nearperfectcompetitionandmostpurchasesaremadeonthespurofthe
moment.Itisaflirtatiouscategory,itverydifficulttobuildloyaltyandgrowthe
consumerbase.DeodorantshavebecomecommoditizedinIndia.

Asof2015,byvalue,Foggis
way ahead, having 17.8% of
the market. Wildstone has
6.7% and Engage 6.6%,
followedbyAxewitha6.5%
share.

Theproductpackagingand
advertisingforalldeodorant
brandslooksthesame.The
category experiences brand
flirtingandthusneedslong
lastingcommunicationtoconnectwithitsconsumers.Theindustryismainly
dominatedbystrongfragrancesbecausepeoplethinkstrongfragrancesstay
longer. This category faces three types of consumers loyalists and semi
loyalistsandthentherearehunterconsumers.Thebulkconsumersbelongto
thesegmentofloyalistsandsemiloyalistsconsumerswholiketoexperiment
withnewfragrancesandpackaging.
KPMGsRamanathan,pointingtothreedistinctlayersinthemarket.Atthetopare
internationalbrandscateringtourbancustomers.NextaremassIndianbrandsand
thenlowpricedalternativesfortier1andtier2cities,hesays.Butwithineachband,
pricingiscompetitiveandsimilar:importedlabelssuchasFerrari,HugoBossand
UnitedColorsofBenettonsellforabout800per150ml,whilemassbrandssuchas
Axe,Fogg,ParkAvenueretailatbetween150and200forsimilarsizedcans;at
thebottomarebrandssuchasExplore,EvaandGatsbyfor100percan.

ConsumerDynamicsresultinginthegrowthinthe
deodorantmarket

"Thesmellcultureisevolving.Deodorantsaretakingtheplaceoftalcumpowderjust
thewaytoothpastedisplacedtoothpowderalongtimeago,Lowincomefamiliesare
takingtodeosaswell"saysbrandexpertHarishBijoor.
Formen,groomingpersayisbecominganimportantcurrencyforsuccess.You
cant look ugly or smell bad for an interview. Secondly the mating market has
become more liberal, you need the approval of the opposite sex even if it is
arranged,saysDheerajSinha,chiefstrategyofficer(SouthandSouthEastAsia)at
advertisingagencyGreyWorldwide.
Thereisaneedtoconform,tobeliked,saysAnandRamanathan,associatedirector
atconsultingfirmKPMG.Thatsthereasonwhymenarespendingmorenotjuston
deos,butongroomingproductsingeneral.Earlier,menusedtofeelguiltyabout
spendingonthemselvesbeyondthebarenecessitiesofhygiene.Butwitharisein
disposableincomesandtheneedtobelong,itisnolongerconsideredtabootospend
ongrooming.
Deoshavebecomecentraltothestrategyofmostcompaniesbecauseitwouldappear
theyareamongthefirstgroomingproductsmostyoungmenuse
HUL has deodorants
under the Dove, Lux,
Sure and Axe brand. In
between, even the Ponds
brand got extended as a
deoin1997butwassoon
withdrawnbyearly2000.
Deodorantsisanimportant
category for HUL and
overaperiodoftime,asthemarkethasevolved,theyhaveaddedbrandsandbenefits
in the portfolio to meet the diverse consumer needs. HUL has led the market
developmentforthecategorybystraddlingthepyramid.

RexonathefirstdeodorantinIndia
Inthemid90s,HindustanUnilever(HUL)decidedtolaunchitsglobaldeodorant
brandSureinIndiaunderthebrandnameRexona.Rexonawasoneofthefirst
deodorants launched in India and was available in roll on, sticks, and aerosols.
ThoughRexonawasamajorplayerinthecategory,overthetimeRexonaasabrand
lostitsway,withalotofcompetitionfromthegreymarketindeodorants,positioning
confusions,andinadequatesupportfromHUL.Asaresult,Rexonawastaperedand
itsdeodorantswereslowlyphasedoutfromthemarket.
HULrelauncheditsleadinginternationalbrandRexonaasSureinIndiain2010.
The brand Sure promises No Paseena and provides longlasting unbeatable
protectionagainstsweatandodourkeepingtheskin,dryandfreshalldaylong.Itis

positionedasstopssweatratherthanasafragrance.
Withthislaunch,HULislookingtobuildantiperspirantsasanewcategoryinIndia.
HULisconductingalotofconsumereducationandbrandbuildingactivitiesforthe
brandSure.HULislookingtoservemultipleconsumersegmentsandbuildamaster
brandwiththelaunchofSure.HULwiththelaunchofSureislookingto:
1.Addressthevoidofabigbrandinthewomensegment
2.Takeadvantageofthegrowthofthecategorywithtwomasterbrands
3.Enterandbuildanewcategory,andnottoleaveanyscopeforcompetition
4.Takesharefromtheabundantnumberofgreymarketproductsandprivatelabels
5.Increaserevenuesandsharefromthedeodorantsbasket
6.Counterincreasingnumberofnewentrantsandmetooplayersinthedeodorants
segment
ThisseemslikeasafebetforUnileverasitgivesadvantageonboththefronts
growthoffemaledeodorantsegmentandenteringanewcategorywithoutdisturbing
themarketofAxe(anotherdeodorantbrandfromHUL).Apartfrombuildingitsown
nicheasantiperspirants,itisexpectedthatthebrandwilltakeawaysomesharefrom
the private labels, and the smaller brands. HUL is aggressively pursuing focused
brand building activities, and Akshay Kumar and Asin endorsing this brand will
definitelyhelptakeittothemasses.
Surehasbeenpricedataffordablepricepoints40rupeesfor25ml,60rupeesfor40
mlapartfromtheregularSKUsizeof150ml.ThisshowstheintentionfromHUL
togeneratemoretrialsfromnewentrantsandadeeperpenetrationofthecategoryand
thebrandacrossallchannels.Fornow,itisexpectedthatSureforwomenshoulddo
well;however,itisinterestingtoseeiftheconsumerswillbuyitasadeodorantoras
anantiperspirant.
Challenge: People in both rural and urban India are becoming more and more
conscious about their personal hygiene. But, the Indian consumers need a lot of
educationaboutantiperspirants,asmostIndiansstillbuyadeoforfragrance.Most
consumersinIndiastillusedeodorantsasfragrancesontheirclothesratherthanon
theirskin.
Withthousandsofbrandsanddifferentfragrancesitislesslikelythattheconsumer
wouldbeabletosmellthesameasRexona.ThefateofSureismoredependentonthe
brandbuildingandhowitisperceivedbytheentrantsinthedeodorantcategory.With
thesechallenges,thesuccessofthisnewcategoryrequiressomefundamentalchanges
in consumer behavior and consumer dynamics. However, HUL is not new for
developingnewcategoriesandalteringconsumerbehavior.

Axe
The Axe deodorant was popular in India in the Grey market (duty paid shops).
ImpressedbythevolumeofAxesoldthere,AxedeodorantwaslaunchedinIndiain

1999.Thebrandlaunchwasveryquietand
had the strategy of High Price, Low
Promotion.Atthattime,thedeomarketwas
anascentonewithanestimatedmarketsize
ofRs 72crore. HLL,at that time,hadthe
brandsDenimandRexonaandwasrulingthe
market.Axewaspricedatapremiumabove
the Denim brand (also a mens deodorant
brand). In just three years flat, Axe had a
marketshareofover35%andHLLstarted
phasing out Denim to concentrate more on
Axe.
Axe,oneofthenaughtierbrandsinIndia,is
targetedatmalesaged1625.Thebrandispositionedinamannertopromoteitselfon
theunderlyingmessagethat(a)Axeusersarehighonconfidence,and(b)womenare
seducedbyAxeusersandhence,theymakethefirstmove.Whatmakesthebrand
evenmoreapproachableisthatnohunksareusedintheads,ratherordinary,regular
guysareseenasgettinghitonbygirls.Onlineinvolvement,intensiveviraladsplus
chatroomactivityinvolvingconsumerstalkingaboutAXE,theirfavouritefragrances,
the AXE effect, their experiences in the mating game all played a role in the
powerfulbrandbuildingofAxe.
Axe'sfirstmoveradvantageinIndiawhenitwaslaunchedin1999helpeditreignfor
manyyears,untilitstartedgettingflankedbybrandslikeWildstonefromMcnroe
ConsumerProducts,thatmanagedtocreateaprofitablenichewithitstakeonthe
seductiongameandEngagebackedbyITC'smarketingmuscle.ViniCosmetics'Fogg
twistedtheentirecategorywithits'nogas'story.
ThefallofAxefromthenumberUnopositionhasbeenduetomanyfactors,the
positioningofAxeasachickmagnet&helpingmenbeattractivetowomen,hasbeen
copiedbymanyMetoobrandslikewildstoneAXEgenerallyhadsaucyadsshowing
barelyclothedwomenthrowingthemselvesatmen.Axeadvertisementwhichshowed
angelsdroppingfromtheskieswhenamanusesAXE,wasnotconsideredappealing
bytheIndianconsumers.
AxehasnowlaunchedanewadvertisementofBoatparty,TheAXEBoatPartyisall
settomakeitsIndiadebutinGoa,andithasstuckachordwithcustomers.Morethan
2.5millioncustomershavetriedtoregisterfortheboatparty.Itremainstobeseen
whethertheconsumerinterestwilltranslateintotheactualproductsale.

CompetitorsPositioning
Godrej Consumer Products has got Hrithik Roshan to endorse its Cinthol
deodorants.Hewillportraytheuserasanactiveandoutgoingguy.Thebrandwill
notlookatagesegmentation,butwillfocusonpsychographicsegmentation,says
GodrejConsumerProductsCategoryHead(personalwash)AnindoSamajpati.

LOreal,onitspart,with GarnierMineral isfocusedonmenwholeadanactive

lifestyle. We will not play on insecurities and instead focus on the science and
rationalbenefitsoftheproduct.Ourdeodorantisenrichedwithperliteandabsorbs
fivetimesmoresweatthanatalcumpowder,saysLOrealIndiaDirector(consumer
products)VismaySharma.
Similarly,CavinKaresHi5rangeofmensdeodorantsisfocusedonsporting.
AndNiveahasinitscrosshairsnotteenagers
butofficegoersintheir20s.Manypeople
usedeodorantlikeafragranceandsprayiton
theirclothes.Henceourpackagingprovides
specific instructions to spray the deodorant
onthebody,saysNiveaMarketingDirector
SomaGhosh.

competitionbetweenmen.

SincetakingoverSetWetandZatakinJuly
2012, Marico has been slowly pushing the
latter in rural markets, with focused
advertising and leveraging its distribution
and marketing muscle. Our advertising is
differentfromtheboychasinggirlandvice
versa route. We are focusing instead on

ViniChemicalsFoggisacaseinpointanditsdifferentiatedpositioninghaswon
itappreciationnotjustfromanalystsbutevenindustrypeople.Insteadofpushingthe
fragranceoritsappealwiththeoppositesex,adsforFoggemphasisethegetyour
moneysworthangle(atRs.170,thedeoispricedslightlyhigherthanothermass
brands). Fogg is liquid, not gas, which means there is no wastage, say the ads,
guaranteeing800sprayspercan.
FOGGwithitsuniquesellingpropositionandhascleverlymanagedtotapintothe
needs&aspirationsofyouth.Itseemstobedeliveringonthevaluequotientandit
liked by the customers. FOGG has also diversified in the womens category by
launchingFOGGdeliciousforwomen.ThisfunctionalityofFOGG,morenumberof
spraysinabottlestruckachordwiththeconsumerinaninflationaryenvironment.
FOGGhasadifferentiatedvaluepropositionfromallitscompetitors.Ithasaeffective
advertisingstrategyandbrandingtargetingtheyouth
ITCs Engage has focused on engagement and playful chemistry between two
partnerswhoareequals,therebylendingcredencetoitspositioningasadeodorantfor
couples.Thebrandispositionedonthebasesof"chemistrybetweenthecouples.
Theadmentionsthat"LoveHasAnAllNewLanguage"whichprobablyisthe
positioningplatformofthebrand.However,theromanceorattractionorchemistryis
themostusedthemeofallthedeobrandsandEngagehasfailedtodifferentiate.The

focuson"coupledeodorant"alsowilladdtroubletothebrandsinceitmayrestrictthe
brand's target segment. But ITC has also brought differentiation by adding some
freshnessinthebottledesignthatwillencouragesometrialforthebrand.
KolkatabasedMcNroeConsumerProducts,ownersoftheWildStonebrandare
thinking to create occasion specific offerings, such as mild fragrances for office
goers;strongeronesforpartygoersandsoon.ThepositioningofWildStoneisnota
remarkable one. Almost all the men's deo has adopted the same positioning of "
Women Chasing Men". Brands like Axe, Fuel, Denver, Set Wet, Zatak all have
adoptedthesametheme.TheadvantageinWildStoneisthatthebrandhasadopted
anIndianthemewhilealltheotherbrandsaregoingforforeignmodelsandsettings.
ThiscanprovetobeagoodadvantageforWildStone.

Conclusion:
Thus to be able to
survive in the
undifferentiated
deodorantmarket,HUL
has positioned all its
threebrandsdifferently.
While Dove would be
thetopendvalueadded
antiperspirant brand,
Sure would create the
marketatthemassend
for the antiperspirant
category. While Axe
willworktowardsdailyapplicationofitsproductsratherthanonspecialoccasions.
Axeisalsobyrepositioning,takingthebrandawayfromjuvenilehypersexuality,
whileretainingitsconnectiontoattractionthroughtheseriesofvignettesthatshow
differentsortsofmeninavarietyofsituations.Also,Axeisamaleorientedfragrance
brand,whileSurehasbeenanefficacyledunisexbrandinHUL'sportfolio.