HUL Pureit Case
1. What was so compelling for HUL to develop a product like Pureit? What factors accounted for its success? There were two main factors behind the development of a product like Pureit: • The lack of potable water in the majority of rural India. Additionally, the process of boiling water was cumbersome & Resource heavy. • Introduction of a compact water purifier called “Swacch” by the TATA Group. 2. Explain the product portfolio of Pureit? How would you explain the rationale for current offerings of the company? In most of the developing countries, potable drinking water is a scarcity which is also evident from the episodes and high frequency of the water-borne diseases. Boiling water is cumbersome, resource intensive & expensive. Keeping that in mind the scientists developed the Pureit range of water purifiers to meet the need of drinking & cooking water of rural population. Pureit is safe, easy & costs less than a rupee to purify a litre of water, which led to the success of the product. Pureit is the world’s largest selling water purifier, being sold in more than 9 countries. 3. What was so special about the Water Team that enabled the success of the project? There were three main factors for the success of the water team. • Experience of Yuri Jain in the similar domain. • The startup-like organisation structure and cross-functional teams. • Addition of cause as the driving force for product development apart from cash & Career. 4. How would you interpret the consumer behaviour? The consumers at the lower end of the spectrum would still prefer boiled water because of probable lack of awareness and knowledge, this space required more penetration from the company. On the other hand, Pureit Marvella had created an opportunity for profitability but intense competition made it difficult to price it on the premium side as the consumers would opt for a cheaper product. 5. Explain the competitive scenario in the product segment? According to the recent development, there are multiple companies operating in the water purifier segment in India like Eureka Forbes, Kent RO System, Hindustan Unilever Ltd., Live-pure Private Ltd., Ion exchange, Whirlpool India Ltd., Hi-Tech RO Systems, Panasonic India Pvt. Ltd., Tata Chemicals Ltd. and Kaz USA, Inc. After initial problems like low acceptance of the product like Pureit, the sales have been increasing. HUL has taken up 4 major channels to reach people: • DTH Demonstration • Doctor’s Partnership program • Retail Channel • Partnership Channel And the total sales by March 2010 was of 3. 7 Million units. HUL has decided to offer a margin of 8% to retailers and 7% to distributors which is on the lower side as compared to Eureka Forbes’ 14%.