HUL (Hindustan Unilever Limited) PESTLE Analysis

Published by MBA Skool Team, Last Updated: February 24, 2020

PESTLE Analysis of HUL (Hindustan Unilever Limited) analyses the brand on its business tactics. HUL (Hindustan Unilever Limited) PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as HUL (Hindustan Unilever Limited), as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.

Let us start the HUL (Hindustan Unilever Limited) PESTLE Analysis:

Political Factors:

The political factors in the HUL (Hindustan Unilever Limited) PESTLE Analysis can be explained as follows:

Merging of HUL with Tata Oil Mills Company and Lakme helped Hindustan Unilever to venture into new areas like cosmetics and food oil with the help of regulations of India eventually helping them to expand into product and services. Hindustan Unilever, later on merged with Kimberly Clark Corporation helping them to enter Huggies diapers and Kotex Sanitary pads. Being sensitive to everything in India, Hindustan Unilever does not support any political party or government.


Image: company website


Economic Factors:

Below are the economic factors in the PESTLE Analysis of HUL (Hindustan Unilever Limited):

The whole world got hit with an economic crisis in 2009 but the Asian countries were the ones which were least hit as their reliance was less based on interest investments. When HUL was losing profits in most of the countries abroad it was still earning profits in India. Since Hindustan Unilever has a constant price change because it sells the products of everyday market, it is always under pressure. Oils and soaps which mark the bottom liner are made from raw materials like oils and chemicals whole prices keep changing every day. HUL also faces direct competition because of the local producers, also by MNCs to an extent that maintaining loyalty and market share hand in hand is almost impossible


Social Factors:

Following are the social factors impacting HUL (Hindustan Unilever Limited) PESTLE Analysis:

Social programs have been a way through which Hindustan Unilever has expanded its customer base. Hindustan Unilever accepts that an association's value is additionally in the administration it renders to the community. Cleanliness, nourishment, upgrade of livelihood, a decrease of ozone-depleting substances and water impression has been HUL’s focus since the beginning. Training and recovery of underprivileged youngsters, care for the dejected and HIV-positive, and country improvement have also been HUL’s primer areas to focus on. Lifebuoy Swasthya Chetana is another program that Hindustan Unilever runs. This program focuses on getting people rid of diarrhea. HUL's Project Shakti is an activity through which it focuses on little towns. Through it, Hindustan Unilever is taking rural women and their needs into consideration, helping them live a better and much more hygienic life. This program also gives them cleanliness and wellness education through Shakti Vani.


Technological Factors:

The technological factors in the PESTLE Analysis of HUL (Hindustan Unilever Limited) are mentioned below:

E-Commerce has been the new way for all companies, and so it has been the same for HUL as well. Hindustan Unilever has been finding new ways to engage customers and through its technological advancement, it has overcome this problem of engagement by digitalization. HUL is utilizing the most recent IT innovation; industry center around a mechanical exertion by utilizing innovation foundations, for example, the web, intranet and other data trade frameworks including phone and innovation equipment, for example, cell phones, workstations, work areas, Bluetooth gadgets, printers and fax machines which transmit and record data. Hindustan Unilever has started selling its products online and this has only been possible through digitalization. Through its technology, HUL has been able to analyze the big data of customers and their wants, what product sells more and by how much, thus making a breakthrough. Technology has also helped HUL understand customer relations and apply it in modern trade. This is how technological factors and their rising usage has helped in its revenue generation.


Legal Factors:

Following are the legal factors in the HUL (Hindustan Unilever Limited) PESTLE Analysis:

HUL ensures that it follows every local and national law in opts working and selling. For example, in case of Gujarat, even after high rising prices of production, Hindustan Unilever charged nominal in the times of drought and floods in the state. HUL needs to comply with all the natural laws in the states pertaining these laws for its proper working. The rest of the laws which are followed by HUL are mostly the same as followed by any other MNC, it just needs to make sure that it doesn’t abuse or violate any law.


Environmental Factors:

In the HUL (Hindustan Unilever Limited) PESTLE Analysis, the environmental elements affecting its business are as below:

Hindustan Unilever has been in news always for breaking natural laws and dumping compounds which are harmful and have jeopardized lives of workers and residents living around their factories. An episode which occurred at Kodaikanal industrial facility, because of dumping and selling pieces of glass material containing Mercury, HUL came into light and was blamed for the same. Hindustan Unilever had to close the production line as well. This resulted in checking their production procedure and eventually illegal scrapping of Mercury was found. Finally, the organization had to clean all their squander and get back to following all the nature laws accordingly. They took authorization from both Indian and US government to send back the waste according to the norms of the same. HUL needs to be more stringent about following environmental laws and creating a better surrounding for all.

To conclude, the above HUL (Hindustan Unilever Limited) PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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