HUL experiences both sweet and sour

Posted By: Religare
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HUL experiences both sweet and sour
The innovative idea to introduce thousands of underprivileged women to sell goods throughout 1,35,000-plus villages helped Hindustan Uni Lever (HUL) to make way to the sixth position in the latest issue of 'The World's Most Innovative Companies' published by Forbes. The Indian subsidiary of HUL that deals with products belonging to household, personal care and food category, has not only earned a good fortune, is also successful in establishing itself as the most-trusted brand. 

Appreciating the success of HUL, Forbes commented, "On the other side of the world, India's consumer-products powerhouse Hindustan (Uni)Lever developed an innovative network-marketing approach to sell its goods via thousands of underprivileged rural women throughout 1,35,000-plus villages, thereby becoming the most-trusted brand in the nation."

"We are driving innovation, not only in our products, but across the value chain of our business. For example, Project Shakti is an innovative win-win distribution model, which helps us to reach consumers in remote villages across the countrya while enhancing livelihoods of rural women," said HUL's spokesperson.

HUL began to climb the success's ladder after Paul Polman took over as the CEO of company in 2009. Prior to this, the company was fighting the pressure mounted by the reduction in customers buying the brand's products. Thus, Polman, understanding his responsibility as the CEO, developed and spread a performance culture across the organization globally.

Meanwhile, though the company is experiencing a double-digit and now has also gained the sixty rank in Forbes' list, HUL is facing a sour experience when is being asked to close its Axe deodorant's advertisement. The company has been asked to shut the ad on the basis of not abiding the standards of the decency and propriety required for an ad to maintain.

The decision to put the ad off air was taken by Advertising Standards Council of India, following the meeting of Consumer Complaints Council (CCC), which held the ad guilty for displaying overtly sexual desire and also demeaning to women. Besides HUL, Paras Pharmaceutical's Zatak Axe Deodorant and Set Wet Deodorant were also asked to put their respective ads off sir, following the same charges.

Read more about: hindustan unilever, bse, nse, hul, fmcg
Story first published: Saturday, July 23, 2011, 10:30 [IST]
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