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India's largest fast moving consumer goods company. Hindustan Unilever's distribution covers over 1 million retail outlets across India directly. Its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. It estimates that two out of three Indians use its many home and personal care products, food and beverages. HUL PRODUCTS Personal wash:- Lux, Lifebuoy, Liril ,Hamam, Breeze, Moti , Dove, Pears and Rexona Laundry:- Surf ,Excel, sun light, Rin ,Wheel & Ala bleech Dishwasher :- Vim

HUL -Ayan Roy

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Page 1: HUL -Ayan Roy

• India's largest fast moving consumer goods company.

• Hindustan Unilever's distribution covers over 1 million retail outlets across India directly.

• Its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India.

• It estimates that two out of three Indians use its many home and personal care products, food and beverages.

HUL PRODUCTS

Personal wash:-

• Lux, Lifebuoy, Liril ,Hamam, Breeze, Moti , Dove, Pears and Rexona

Laundry:-

• Surf ,Excel, sun light, Rin ,Wheel & Ala bleech

Dishwasher :-

• Vim

Ice cream :-

• Kwality walls

Page 2: HUL -Ayan Roy

Disinfectants:-

• Domex, cif

Foods:-

• Kissan,Jam,Ketchup,Squashes,AnnapurnaAata and salt, Knorr Soups and Modern Bread

Beauty Products:-

• Fair &Lovely,Lakme, Ponds, Vaseline and Aviance

Beverages:-

Tea:-

• Brooke bond,Lipton, taj mahal

Coffee:-

• Brooke bond bru

Water Purifier:-

• Pureit

Hair-Care:-

• Sunsilk naturals, Clinic , Dove and Lifebuoy

Oral-Care:-

• Pepsodent and Close-up

Deo spray:-

• Axe and Rexona

Ayurvedic Personal & health care:-

• Ayush

Page 3: HUL -Ayan Roy

COMPETITORS

DOMESTIC PLAYERS-

1. Britannia India Ltd.2. ITC3. Marico4. Nirma5. Dabur

FOREIGN PLAYERS-

1. Cadbury India Ltd.2. Cargill3. Colgate-Palmolive4. Nestle5. Pepsi Co6. P&G

HUL Geographic Presence

More than 35 Manufacturing units across India. Major hubs in Assam, Uttaranchal, Pondicherry, Dadra & Nagar Haveli. Marketing- All States in India, called Project Shakti

BCG Matrix

Page 4: HUL -Ayan Roy

STARSHigh growth, High market share

Stars are leaders in business.

They also require heavy investment, to maintain its large market share.

It leads to large amount of cash consumption and cash generation.

Attempts should be made to hold the market share otherwise the star will become a CASH COW.

CASH COWS

Low growth , High market share

They are foundation of the company and often the stars of yesterday.

They generate more cash than required.

They extract the profits by investing as little cash as possible

They are located in an industry that is mature, not growing or declining.

DOGS

Low growth, Low market share

Dogs are the cash traps.

Dogs do not have potential to bring in much cash.

Number of dogs in the company should be minimized.

Business is situated at a declining stage.

QUESTION MARKSHigh growth , Low market share

Most businesses start of as question marks.

They will absorb great amounts of cash if the market share remains unchanged, (low).

Why question marks?

Question marks have potential to become star and eventually cash cow but can also become a dog.

Investments should be high for question marks.

WHY BCG MATRIX ?

Page 5: HUL -Ayan Roy

To assess :

Profiles of products/businesses

The cash demands of products

The development cycles of products

Resource allocation and divestment decisions

MAIN STEPS OF BCG MATRIX

Identifying and dividing a company into SBU.

Assessing and comparing the prospects of each SBU according to two criteria :

1. SBU’S relative market share.

2. Growth rate OF SBU’S industry.

Classifying the SBU’S on the basis of BCG matrix.

Developing strategic objectives for each SBU.

BENEFITS

BCG MATRIX is simple and easy to understand.

It helps you to quickly and simply screen the opportunities open to you, and helps you think about how you can make the most of them.

It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability.

LIMITATIONS

BCG MATRIX uses only two dimensions, Relative market share and market growth rate.

Problems of getting data on market share and market growth.

High market share does not mean profits all the time.

Business with low market share can be profitable too.

Page 6: HUL -Ayan Roy

BCG Matrix of HUL

Explanation-

Lux

• Lux is a star for HUL.

• Lux enjoys a market share of 16%.

• This industry has a high growth rate of 10%.

• HUL comes with different variants in Lux quite frequently in order to maintain their position.

Sunsilk

• Sunsilk is a Star for HUL.

• HUL holds 47.8% market share in the shampoo industry.

• Sunsilk has 32% market share. Like Lux,it also has different variants.

Page 7: HUL -Ayan Roy

Fair and Lovely

• The Rs 3,000-crore skincare market in India, where

• HUL is the leader with an estimated 70 per centmarket share,is having a rapid growth.

• Market share of Fair and lovely is around 60%.

• Major competitors-Garnier,Fairglow,Emami,Nivea.

Star for HUL

Rin

• The Rs13,000 crore Indian detergent market is the largest segment in the consumer goods sector.

• Hul has 35% market share in detergent industry.

• Rin has only 4.8% market share.

• Rin is a Question Mark for HUL.

Major Competitor Tide.

Wheel

• Mainly for low based income.

• Market share is falling.

• Dog for HUL.

Competitors are Nirma,Fena

Pepsodent

• Market share is 13.81%

• Question mark for HUL.

• HUL has a market share of 30% in the 5000 plus crore oral care business.

• Major Competitors-Colgate, Crest,Oralb,Dabur.

Page 8: HUL -Ayan Roy

AXE

• Cash cow for HUL

• Market share of 70%in 200 crore market.

• Competitors Nike,Parkavenue.

Ponds

• Market share of 65% in 7 billion talcum powder market .

• Star for HUL.

• Competitors are Johnson & Johnson ,Cinthol, Spinz.

Vaseline

• Market share of 90%.

• Cash Cow for HUL.

• Competitor Johnson & Johnson.

Domex

• Market share is only 20 % .

• Question mark for HUL.

• Major competitors-Harpic(70%),Savlon.

Kissan Ketchup

• The ketchup market in India is estimated to be around Rs 220 crore, largely dominated by Nestle Maggi that owns 47% of the market and the Kissan that owns26%.

• Major competitors Heinz, Maggi.

Star for HUL

Surf Excel

• Has a market share of 37 % in 9000 croreMarket.

• Star for HUL

• Competitors Tide,Ariel.

Page 9: HUL -Ayan Roy

Annapurna Atta

• Market share of Annapurna Atta is 26% compared to Aashirvad Atta of ITC(40%).

• Star for HUL

COMMENTS ON HUL –

Critical Success Factors-

1. Clear Brand Identity- Visible elements like, colour, logo, name, advertisements, of hul makes a long-term effect on the minds of the customers

2. Market Reach- HUL has a very vast distribution network spread across the whole nation. In every states of India HUL products are available and the reach is maximum.

3. USP- Differentiation is the usp for HUL. The vast product breadth and depth makes it the largest player in the domestic market.

4. Operational Effectiveness- HUL focuses on achieving Cost Competitiveness, to counter low cost competition. Its aim is- Right Goods, Right Time, Right Quality at Right Cost.

5. Innovating Aggressively- HUL’s strategy is- Innovate>Grow>Mature> innovate. They innovate to ensure the future of the Business.

6. Winning Through People – HUL attract and retain top quality talent. They have several business leadership programme.

7. Customer and Supplier Management- They ensure the satisfaction of customer and the suppliers to maintain the total supply chain.