COMPETITIVE ANALYSIS OF

COMPANY OF OUR OWN CHOICE

Presented By

• Raj Kumar Thanvi 19• Mukesh Singh 30• Swati Singh 31• Satya Prakash Singh 46• Ankita Singh 68• Shashi Bhushan Singh 69

Hindustan Lever Ltd.

Hindustan Unilever Ltd.

IS NOW

Mr. Harish Manwani

Chairman

Mr. Douglas Baillie Baillie

CEOCEO

VISION

INTRODUCTIONINTRO

India's largest Fast Moving Consumer Goods company with 80 factories across India.

In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).

HUL formed in November 1956;

The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.

The mission – “add vitality to life.”

Contd..

• Sales growth in 2008-09 is 15.5%

• Operating margin increased by 0.4% from 14% to 14.4% in the year 2008-09

• Gross sales is 21649.51 crores

• Share price Rs 237.50

PRODUCT SEGMENTATION OF HUL

0%

10%

20%

30%

40%

50%

60%

70%

80%

HUL

COMPETITOR

COMPETITIVE SITUATION OF HUL WITH ITS COMPETITORS

PRODUCT RANGE BREAK-UP

STRIVING

ASPIRING

AFFLUENT

PERSONAL WASH BY HUL

HUL is the market leader in the soap segment in India

Competitors of HUL SOAPS

HUL brands

• Lux

• Rexona

• Breeze

• Lifebuoy

Competitors brands

• Santoor, Chandrika

• Cinthol, Mysore Sandal

• Godrej no. 1, Nirma

• Dettol

Competitors of HUL SOAPS HUL brands

• Pears

• Dove

• Hamam

Competitors brands• Santoor,

• Camay

• Margo

57% 55% 55%

52%

10% 9%8% 8%

9%

5%

HUL’s SOAP MARKETSHARE

The HUL Hair Care

Competitors of HUL Hair CareCompetitors of HUL Hair Care

• Sunsilk

• Clinic Plus

• Dove

• Sunsilk

• Clinic Plus

• Dove

• Pantene

• Head & Shoulders

• L’Oreal, Garnier

• Pantene

• Head & Shoulders

• L’Oreal, Garnier

Welcome to the segment Of

HUL Oral Care

Competitors of HUL Oral Care

• Pepsodent• Close Up

• Pepsodent• Close Up

• Colgate• Meswak• Dabur Red• Anchor

• Colgate• Meswak• Dabur Red• Anchor

48%

32%

2%

46% 47%

7%

30%

8%

30%

7%

TOOTHPASTE MARKET SHARE

HUL COSMETICS

Competitors of HUL Cosmetics

Lakme

Ponds

Lakme

Ponds

Revlon Maybelline L’OrealNiveaCharmise

Revlon Maybelline L’OrealNiveaCharmise

HUL LAUNDRY CARE

COMPETITORS

• SURF EXCEL: ARIEL

• WHEEL: NIRMA

• RIN: TIDE

SWOT ANALYSIS

Strengths:

• Strong brand portfolio,price,quantity & variety.• Innovative Aspects.• Presence of Established distribution networks in both urban and rural areas.3400 distributers16 million outlets over the world.700 million customer base.• Strong R&D of the company• Highly skilled human resource.• Corporate Social Responsibility(CSR)

Weaknesses:

Strong Competitors.

Low exports level(at present).

Changing consumption pattern.

High advertising costs.

SWOT Analysis

Opportunities:

Large domestic market – over a billion population.Untapped rural market.Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.

SWOT Analysis

Threats: Tax and regulatory structure. Mimic of brands Entry of ITC in FMCG sector. Increasing cost of raw material.

SWOT Analysis

STRATEGIC FOCUS OF UNILEVER

30

• Remain in tune with its markets and stays ahead of the competition

STRATEGIES FOLLOWED AT HUL

Distribution strategy.Distribution network(direct selling)Brand extension strategyLine extension strategyRepositioning strategyPromotional strategy-ads,(Rs700-800 cr)Segmentation strategy Premium brandAffordable brandValue for moneyInnovation strategy-introduction of sachet in shampooMergers and acquisitions strategy

MARKETING STRATEGIES OF HUL

STRATEGIES I HAVE MADE

MARKETING STRATEGIES OF HUL FOR URBAN INDIA

• Focuses on short supply chain for distribution.

• To meet the every need of people everywhere.

• Build segments & market for the future where Unilever has strong expertise.

• Also uses Direct selling channel, franchisee to reach everyone e.g. Unicare.

For long term benefits, HUL started Project Streamline in 1997.

MARKETING STRATEGIES OF HULFOR RURAL INDIA

Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states.

Appointed 6000 Sub-stockists that directly covers about 50,000 villages & 250 million customers.

Integrate Economic, Environment & Social objectives with Business agenda.

EVERYDAY I WILL SELL.EVERYDAY I WILL EARN.MONEY. RESPECT

Started in 2001, Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less.

micro-enterprise opportunities for rural women

Providing health n hygiene education through shaktivani program

ishakti portal

Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 women entrepreneurs and generating Rs.700-1000 per month to each women.

PORTER’S FORCES

PORTER’S DIAGRAM

RIVALS

Consumer in this category enjoy multitude of choices.

It does not cost anything for a consumer to buy one brand of shampoo instead of another,

making the industry quite competitive.

SUPPLIERS

Consumer product faces some amount of supplier power simply

because of the cost they incur when switching suppliers

Suppliers that do a large amount of business with these companies are also beholden to their customers.

Verdict: limited supply power

BUYERS(CUSTOMERS)

Consumer faces weak buying power because customers are

fragmented and have little influence on price or product.

Considering buyer power retailers it is very high since they are able to

negotiate the price with the companies.

Verdict: Strong buyer power from retailers.

POTENTIAL ENTRENT

Given the amount of capital investment needed to enter certain segment in house hold consumer

products, the threat of new entrant is fairly low.

Whether the new entrant can get its products on the shelves of the same

retailers as its much larger rivals.

Verdict: low threat of new entrants.

THREAT OF SUBSTITUTE

Within the consumer product industry, brand succeeds in helping to build a competitive advantage, but even the pricing power of the brands can be

eroded.

Verdict: high threat of substitutes.

Corporate social responsibility Providing education on health and hygiene

Women empowerment

Water management

Rehabilitation of special or underprivileged children

Care for the destitute and HIV-positive

Rural development.

Plays active role in natural calamities

STRATEGIES…..

51

HUL should………

52

Thank you for your time....