PURE IT CASE STUDY

Group 4 1. A. Arpitha2. B. Harish3. C.Sashidhar4. M.V Karthik5. Nitin 6. Rajat Sahoo7. R. Rufus8. SK Zubair

Shariff

1) HISTORY2) HINDUSTAN UNILEVER3) WATER4) GENESIS OF THE IDEA5) INDUSTRY6) PRODUCT DEVELOPMENT7) WATER TEAM8) CONVERTIG CONSUMER9) STRATEGY10) CONCLUSION

CONTENTS

HISTORY• Lever Brothers India Limited-1933• United Brothers-1935• Formed Hindustan lever limited-1956 • Renamed Hindustan Unilever limited-

2007

• United traders-supplying rubber products in Mumbai for welding machines, cutting machines.

• Lever brothers-1888-consumer goods-London

(Lifebouy, Pears, Lux, Laundry bars)

• Hindustan Vanaspathi

HINDUSTAN UNILEVER LIMITED

HUL- $58 Billion - Unilever group

Unilever Indian subsidary-1931

MD and CEO- Nitin Paranjpe

Goods manufactured-37 factories; Stocktist-2800

HUL has more than 35 brands.

WATER 2010- 2 Billion lacked safe water. Estimated $25billion a year for proper water

supply. Current global spending – fraction of the

requirement(reason for the thought) Came up with pure it. India depending on monsoons for water supply. Real estates emerged-ground water depleted. Traditional method of purifying-heat water and

Drink. Main concentration on rural areas-in efficient

water management.

GENESIS OF THE IDEA HUL-21st century-in pursuit for new

opportunities out side traditional products. CAME UP WITH- Project Shakti-(HUL INITIATIVE)-micro credit

based-empower women-rural area. HUL water purification and storage system. Three constraints of boiling water-

cumbersome, time consuming, expensive. Existing water purifiers-expensive-electricity

and pressurized tap water to function. HUL in to water purifiers- with DTH sales

capability

INDUSTRY In home point of use-water purifier market in india-

450$ million-2009 & projected to grow (2009-2014) Current Indian water purifier usage-8% Vast majority-boiled water, ceramic filter, candle

filters. Working with Government for specific standard

measures in water purification sector. UV and RV growth limited by their high price. Introduced counter top water purifiers- low cost. Bad reputation-counter top could not provide safety

from viruses bacteria and parasites. Competitors on high end market (RO & UV). Eureka Forbes-came up with aqua guard(with UV and

RO) and later in to aqua sure(with out UV and RO)

CONTD..!!

• Later counter top gained market and UV and RO failed to do so.

• Used biocide cum filer to reduce the cost.

• Swatch-TATA-ecofriendly-rice husk and Nano silver tech.

• P&G-sachet pack- coagulation, flocculation and disinfection.

• Each sachet-capable-10ltrs of water.

• Both P&G and pure it had good market.

• Current domination of UV and Ro would decrease as more of HUL, Eureka, Tata and P&G are coming up with water filters.

• HUL was on standards with us requirements of germ killing.

• 200 changes in the span of 4 years.

PRODUCT DEVELOPMENT

• Water initiative by global Unilever- India chosen as lead country.

• Had to cope up with local constraints( Electricity and running water)

• Used a technology called GERM KILL KIT.• Came up with an indicator to be unique.• It had to kill bacteria virus and parasites.• Water treatment plant-test marketing.• Launched in 2008 after lot of test marketing.• Auto shut off technology.• Four stages of purification-micro fiber, carbon

trap, polisher, germ kill kit.• 6 liters of water/hour-purification.

Yuri Jain headed water team-vice president.

Marketing manager for a house hold care business- products used to kill bacteria on the floor

This water initiative had a cross functional team

Aim as a whole they worked on protecting human life.

Came up with 3c’s-cash career and cause.

New business- new sets of challenges at every stage.

WATER TEAM

Consumer receptivity during test runs was low. Not as public health product but as consumer

durable. Change in the life of Rural India. Advanced version of living standard measure for

segmentation. Making people think that pure it is as safe as boiling

water method. DTH sales channels and doctor partner ships. Three stages used-short term , middle term and long

term. Provides complete protection from harmful germs.

CONVERTING CONSUMERS

Major sales in India-direct sales(50%) and dealers(40%)

Push marketing required for RO and UV. HUL concentrated on DTH network- educating

employees to reach people with the product. Initial sale was pure it later germ kill kits and cost

varied based on the models purchased. HUL strength lay in retail network. Traditional marketing would not be in

appropriate(AD’s) Educate training demonstrators as water experts.

GO-TO-MARKET STRATEGY

DTH system needed critical changes-demonstrator profile and compensation.

Dealing with both high and low end markets. Sales increased and sales through DTH

became difficult. Retail has becoming increasingly competitive. To meet the bottom pyramid- educating is the

only route. Competition is increasing as the prices of the

high end are coming down.

CONCLUSION