HINDUSTAN UNILEVER LIMITED IS GOOD EXAMPLE FOR ECONOMICS CONCEPTS

Hindustan Unilever limited is one of the fast moving companies which deals in consumer goods. We can also how simple concept of economics applies in Hindustan Unilever Limited which deals in different types of product such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair and Lovely, Pond's, Vaseline, Lakme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, kissan, kwality Wall's and Pureit.

ECONOMIES OF SCOPE 

Hindustan Unilever Limited deals in various field of household or consumer product that leads to cost saving because product shares common input and diversification of product such as Lux, Lifebuoy, Vaseline, Lakme, Dove, etc. Here we can easily say that economies of scope applies in this company.

PEOPLE FACE TRADE-OFF

There are many examples of product under Hindustan Unilever Limited between which people can  face trade-off such as Wheel and Surf Excel, Pepsodent and Closeup, Clinic Plus and Sunsilk, etc. Here we can say that people have to give up Surf Excel, Closeup, Clinic Plus in-order to get Wheel, Pepsodent, Sunsilk.

PEOPLE RESPOND TO INCENTIVES

Hindustan Unilever Limited offers that buys products of  Rs.500 and Rs.200 product free and many a time discount is also offered by them of some of the product such as up-to 50% off on Dove, Flat 30% off on Pond's cream and people start buying product more rapidly. Here, we can say people respond to incentives applies in this company.

TASTE AND PREFERENCES

Demand of products under Hindustan Unilever Limited is depend upon taste and preferences of people . All consumers have different taste and preference  according to their upbringing, religion and believes. Lets take Marwadis , they are mostly pure vegetarian so they might not use Sunsilk because it contains egg into it.

SUBSTITUTE GOODS

Price of substitute good also influence the demand of  products under Hindustan Unilever Limited. For example, if price of Patanjali Dant Kanti is more than Pepsodent,  than demand of  Pepsodent is more and vise-versa.

So, we can say that Hindustan Unilever Limited  is one of the good eample to explain concepts of economics.