I don’t think anyone in India who is anyway related to
marketing does not dream to be working for this organization- Hindustan
Unilever Limited (HUL). It is hardly a wonder that it was voted the No. 1
employer of choice by B-School students across India in for the fourth year
running in 2013. Not to mention, it is always an interesting bit to keep track
of to get some indication of the market dynamics.
Amongst the biggest spenders on advertising in India, HUL is
also amongst the companies which has a long history of presence in India since
1933. If god said, ‘Let there be light’, Unilever broke the dawn of brands in
India with Sunlight. I guess the choice of category to enter India was spot on considering
use of soap for washing clothes was basic to any household in India. It was
merely an act of deviating people from the task of making soap at home with
something now available at a shop in ready form.
This might have been the easiest of tasks as far as we talk
of migrating customers to switch from traditional Indian ways to branded packaged
products. Personal care products used aspirational value through association
with film stars (or some of it was taken from the colonial rulers of the time).
Competition was always around with Indians companies like Tata Oil Mills
(TOMCO) and Godrej soaps also making a mark on the market, while global giants
like P&G came into India in the 1950’s to capture its share.
Today, HUL has a dominant presence in the Indian market
across four key verticals of Personal Care, Home care, Foods and Water
purification products. Significantly, most of its dominant brands are home
grown. It is some fringes in personal care like Lakme, Hamam (both acquired
from Tata) and Foods (Kissan and Modern bakery) are acquisitions. A definite
mention required- PureIT water purifier is the only product which bears the
mother brand - Hindustan Unilever Limited mentioned across its face right up front.
A recent look at the brands under the personal care range
put up a few questions in my mind though.
Look at the range of soaps HUL has today- Axe, Breeze, Dove,
Hamam, Lifebuoy, Liril 2000, Lux, Pears, Rexona, Aviance Marine Soap. Of which
I’m sure, other than Axe, Dove and Aviance, all have at least two or more variants,
taking my available options to a conservative 20 (Lux has in excess of 5 for
sure). While this might sound impressive, I see this as a segmentation
challenge and a daunting marketing task. I agree, some segments are well
defined here- Axe is for men, Dove and Aviance for skin care, Lifebuoy is
hygiene, Liril 2000 and Rexona both talk of freshness, Pears is glycerine based
and Lux is a beauty soap. I would have guessed Breeze and Hamam hold the bottom
of the pyramid market for beauty and hygiene.
But when I went into a price comparison from an e-shopping
portal, I was totally confused. For a 75 gms bar, Dove was at Rs. 46, Pears was
Rs. 36 and Lux variant was Rs. 27. Liril 2000 was priced at Rs.29.In the 100gms
bars, Hamam was Rs.26 while another Lux variant and Rexona were Rs 24. Lifebuoy
was for 125 gms Rs. 24 which was actually the cheapest in the weight to price
comparison. I could not get any indication for Aviance. Bottom line; was there
a price segmentation or the entire affair was running only by means of product
variants? Besides, the category is not isolated of competition with Vivel and
Fiama Di Wills from ITC, Cinthol and Godrej No. 1 from Godrej and other players
like Santoor, Himalaya and Nivea also flooding the market.
A look at the shampoo segments was equally appalling. HUL
has Clear, Clinic Plus, Sunsilk, Dove, TRESemme and all their variants against
a battalion from P&G, Nivea, Garnier, L’Oreal, Pantene and Himalaya all
vying for the same purse.
For the moment, I’m a confused customer when I have to buy
bathing soap. I really cannot differentiate the products if Lux, Rexona, Breeze
and Fiama Di Wills are placed before me. As a buyer, a difference of under Rs.5
doesn’t even register. On a given day, if my choice of soap is not available at
a retailer, I don’t think brand loyalty will cause me not to defect to another
brand. Customers today will be spoilt for choices of variety in terms of product
features, packaging and all at a price they are willing to pay as per their
need of the hour.
A question I pose- is there brand loyalty alive in products
where product variation and price differences have shrunk to almost negligible?
I guess segmentation in recent times has virtually come down
to retaining a customer by offering a yes to every need posed. You want
fragrance, glycerine, hygiene, moisturizing, herbal; name it and I have a soap
which can satisfy your need. If more than one- that is also possible. Add to it
price promotions and bundled offers, and a customer will take no time to switch
to a new brand. Every need today will have a bombardment of choices thrown at it.
I guess HUL or any other company these days, is willing to offer a chance for a
customer to look at any other shelf for anything they need.
The universe for a customer was once possibly as well
segmented as the solar system. Every brand possibly had its own unique place
which the others did not share. I guess it is the mass consumerism in India that
has promoted all this competition which has made it more of an asteroid belt.
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