marketing strategy of HUL and Procter & Gamble

FMCG is an acronym used to refer to fast moving consumer goods. These are also referred to as Consumer Packaged Goods (CPG). These goods comprise of both essential as well as non-essential goods including food, soft drinks, pampers and toiletries. These are good which are purchased frequently by people and have low cost and quick turnover.

Comparison between marketing strategy of HUL and Procter & Gamble

Marketing strategy of Hindustan Unilever Limited (HUL)

Hindustan Unilever Limited is one of the leading FMCG companies in the market. It is an Indian public limited company which was founded in the year 1932. The headquarters of the company are located in Mumbai, India. HUL is owned by another company Unilever. Each category of product carries a variety of brands. The products may range from food and refreshments, home care, personal care and toiletries etc. The company has emerged as one of the biggest players in the Indian market due to large stock keeping unit for reaching and serving out to all the segments of the society.

A range of segmentation variables including demographic, psychographic and geographic are utilized by the company for addressing the changing needs of the customers. In order to provide the customers with the products of their choice, differentiating targeting strategies are used by the company.

Pricing policies: As a large amount of sales are generated by the consumer friendly products, the main focus of HUL has been around the sales of these products only. For the selling of these products, they have maintained a simple pricing policy of low cost products for ensuring wide circulation of the products in the market. Although the prices have been kept low, the company has never decreased the quality of their products. They reduced the costs of the products because of their wider and far-reaching distribution policy. Additionally, competitive pricing policy is also used by the company for selling some products. The price of those items depends upon the prices set by its competitors in the market. If they decrease or increase the price of a particular item, HUL also adjusts its prices accordingly.

Providing discounts and schemes: There is always a balance maintained by the company as far as providing discounts and schemes for the products are concerned. The discounts or schemes associated with the products result in reduction of prices due to eagerness of the customers for purchasing those items. Further, it results in extra revenues for the company due to generation of excess sales.

Availability of different price ranges: The company provides a range of prices for a variety of items that are offered under different brands by the company. Wide choices in the prices for the customers enable the consumers with different financial capabilities to enjoy the products. The products are provided at reasonable and competitive prices. Further, premium pricing policy is also used by the company for selling its premium quality products which have been designed to meet the needs of a specific section of people who have an inclination towards branded products.

Promotional policy: Being a large company with numerous brands and products, the company employs variety of promotional policies for increasing its sales. It has utilized digital media in the form of advertisements promoting its products and print media in the form of periodicals and newspapers for increasing its sales. The detailed information along with the advertisement of product has been posted by the company on the website to increase the awareness of the consumers regarding the various products.

The company has always focused on the product’s external appearance also. They are designed in a way so as to attract consumer’s attraction. Moreover, for the ease of the consumers, the products have detailed information on their packaging in nearly three languages.

Marketing strategy of Procter & Gamble

Procter & Gamble is an American Public limited multinational company founded in the year 1837 by James Gamble and William Procter. The company’s headquarters are in Ohio, USA. The company is involved in the production and sales of consumer goods. The company has many direct and indirect competitors in the world market. Some of them are: Unilever, Johnson & Johnson and Kimberly-Clark Corporation.

Product range: The product range of the goods dealt by the company is closely related. The primary objective of the company revolves around ensuring the accessibility of the product to all the people in the world. For this purpose, the company has always provided the consumers with quality products at affordable and reasonable prices. Moreover, the company is also involved in the production of various innovative products to enhance its sales.

Distribution policy: The company has its branches in nearly 140 countries including USA, India, China and UK reflecting its extensive worldwide network. This proactive and strong approach of the company towards its network policy ensures effective and efficient production and distribution of the products. There are three major ways which are followed by the company for its efficient distribution process viz. intensive distribution, extensive distribution and specialty distribution

Pricing strategy: The value of the brand alongwith the quality of the product determines the pricing strategy of the company for that product of a particular brand. As the company employs various brands, it prefers using different pricing policy for different products. There are certain products for which adjustable policy is used for their sale, i.e. the price of the products is decided based on their market value. On the other hand, the products which face high competition in the market from products of other companies, competitive pricing policy is utilized by the company for their sale. The company also makes use of penetration pricing policy in some cases when new products are needed to be introduced in the market which involves creation of new consumer base for the launched product. Lastly, the premium pricing policy is utilized by the company for selling high quality premium products designed for a specific section of the society who are attracted towards branded and premium quality items

Promotional strategy: The company uses attraction strategy for promoting its products online. Under this strategy, the company uses creative ads and advertises its products heavily so as to ensure their wider recognition and hence higher sales in the market. The advertisements utilize the celebrities for promoting the sale of the products. The company has an online website which provides detailed information about each product and allows the customers to purchase products online. The company also distributes free samples to consumers for promoting the products at various events to create awareness among the people regarding the product.

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