HUL-Group 1.pptx

8/14/2019 HUL-Group 1.pptx

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HUL-GROUP 1


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ABOUT HUL:

India's largest FMCG

A subsidiary of Unilever which holds 52% of the equity

2 out of 3 Indians use its products

Over 42 factories across India

Around 45% of HULs sales turnover of

Rs. 17,524 crore comes from rural markets,

Valued at around Rs. 8,000 crores.


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THE ENVIRONMENT-INTERNAL

Men- 16,000+ Employees.

Material- Sources raw materials locally.

Money- Turnover of 4 billion USD.

Markets- Indian and Foreign Markets.

Machines- 50 Manufacturing plants and 1 R&D facility in the country.

Methods- Global Expertise applied to Manufacturing processes in Ind


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THE ENVIRONMENT-EXTERNAL (MICRO)

Corporate- Registered Corporate Office in Mumbai.

Channel- 2000+ suppliers covering 1 million retail outlets.

Communication- Print Ad, TV commercials, Online Presence. (HighMarketing spends)

Customer- wide customer base. Approx. 2 of 3 Indians use its productCompetition- Stiff competition from global as well as local brands, spuproducts.

Components- Various components are sourced, mostly locally dependthe type of product.


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PESTND (MACRO)

Political: Decontrolled budget, no political effects envisaged.

Economic:

Increasing per capita income resulting in higher Disposable income.

Growing middle class/urban population leading to increase in Demand

Low cost of production, better penetration.

Socio-Cultural: Per Capita consumption expected to increase, gifting c

Technological: Substantial investments in IT based sales systems.


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SWOT ANALYSIS:STRENGTHS

Strong parentage and R&D.

Strong position in most of the categories of its presen

Unmatched distribution network.

Presence across price points.Healthy Shareholder returns.


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SWOT ANALYSIS: WEAKNES

49% of HUL sales come from detergents and personawash segment.

Increase in Ad spends which will have an impact on tmargins.


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SWOT ANALYSIS:OPPORTUNITIES

Growing opportunities in Rural India.

Consumer Sector on a spectacular growth trend due tfactors such as increasing consumer aspirations, favoudemographics, etc.

Opportunity in the food sector. Packaged food valued USD 240 million.


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SWOT ANALYSIS: THREATS

Stiff competition from local as well as MNC players.

Receding pricing power.

Rural income is still mainly dependent on agriculture aturn monsoons.

Spurious products.


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Porters 5 forces

Model


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Threat of New

entrants

LOW


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Number of competitors.

Quality Differences.

Switching Costs.

Customer Loyalty.

Competitive Rivalry

HIG

H


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Bargaining Power of

Suppliers

Backward Integration :-Number of suppliers are less

Ability to change is flexibleCost of changing is low.

LOW


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Bargaining Power of

Buyers

Number of customers are moderate due to presence of competito

Zydus Wellness etc.

Ability to substitute.

Switching cost for a buyer is very low as they have a ide choice.

Price sensitivity.

Size of each order is in bulk quantity.

Tie-ups with local complementary product manufacturers cheaper products at minimal rates.

HIG

H


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Threat of substitutes


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4PS


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PRODUCT

Surf Excel came up with the idea of Surfing along par excel-lence!!!

It has a wide range of products which includes:-

Surf Excel Top Matic

Surf Excel Front Matic

Surf Excel Blue

Surf Excel Quick Wash

Surf Excel Bar

Surf Excel Gentle Wash


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PRICE

Pricing Strategy


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PRICE

HIGH MEDIUM LOW

QUALITY HIGH PREMIUM

Dove,

Pears

HIGH VALUE

Surf Excel,

Tresemme

PENETRA

ON

Lux,

Sunsilk

MEDIUM OVER-

CHARGING

Ponds

MEDIUM

VALUE

Lakme,Vaseline

GOOD

VALUE

Elle 18

LOW RIPOFF FALSE

ECONOMY

Fair & lovely

ECONOM

Lifebuoy

Clinic Plu

Rin,

Hamam


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Reduct

(price c

155 to kg)

Functio

Emotion


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PROMOTIONPromotional activities-

Print Media

Electronic Media

Social Events

Dirt is good Website

Live Demonstrations


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CATCHY TAGLINES-

Dirt is good: Daag Achhe Hai

Phir Waqt hai khelne ka

Kharay ko meetha banaye

The machine is not guilty, use the right detergent

Surf Excel hai na


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PLACE

HUL has a wide distribution network.

Direct coverage in over 1million retail outlets.

2000+ suppliers.

DISTRIBUTION NETWORK

Factory Company warehouses DistributorMarket.

Factory Wholesaler & big retailers(bulk orders) (3sales.)


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Segmentation Targeting Positioning Differentiation


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SEGMENTATIONSurf Excel has divided the market into 5 major segments-

Quick

Wash

Easy stain removable and

whitening

Travelling Water

conservatio

n

Car w


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TARGETINGSachet packet (Rs.2/-) -

Mass market, convenient and affordable.

Detergent Bar, Surf Excel Blue, SurfExcel automatic

Middle class & Upper middle class.


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POSITIONING


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CRAFCRAFTING THEPOSITION:

Target Customers- Housewife's, bachelors.

Consumer Behavior- Egoistic= buying or using surf excel will give them higher status as compared to udetergents.

Being clean and acceptable in the society.

Nature of competition-

Direct= Ariel, Ghadi, Nirma.

Indirect= Soap Paper.

Broad= Water Rinse.Point of Parity- Stain Removable.

Point of difference- Performance.

Positioning- Whitens your clothes and makes it shine.

Reasons to buy- Removes stains.

Testing-Relevant to Customers.


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DIFFERENTIATION


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PERCEPTUAL MAP


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Relative Market Share


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MarketGrowthRate


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Kellogg- Specific Business Strategie


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The entire strategy revolves around:

Making products available across all price points.

Giving quality products.

Penetrating the rural markets.


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Director

Finance

Director

MarketingDirector

ExportsDirector

Research

Director

Technica

Chairman

Director

Legal &

Secretarial

Director

Beverages

Director

Personal

Products

Director

Detergents


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Substantial investments in IT-based sales sy

Orders booked on a palmtop.

Information fed into central database from distributor points.

Leads to accurate on-the-fly demand project

Helps avoid stock-out losses.


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Nitin Paranjape youngest CEO and MD.CEO factory business leaders.

Leadership development model Job rotationassignments 360 view of business.

Model designed to identify Lever listers (fastrackers)


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Mission Add vitality to life.

Meet everyday needs nutrition, hygiene, personal care et

Singular BELIEF What is good for India is good for HUL

Think Global and act local concept assimilated into product

Strong relationship with customers deep roots in local cumarkets globally.


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16,000+ employees, 1200 managers & 200

scientists.Team of professionals for each SBU.

Career path designed such that employeeinto business leaders.


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In-house manufacturing & outsourc

R&D support from parent compan

Large distribution network.

Strong management.

Best marketing talent in the indust


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The Value hain


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Business optimization through techn

Integrating suppliers & distibuturs thro

TPM & product flexibility in Operat

Emotional buying of satisfied custom

O S G C


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PORTERS GENERIC

STRATEGY:Range of products within the

soaps & detergent category for

different segments.

Such a strategy needs strong

segmentation, marketing and

branding skills.


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Sunlight, Lipton, Hamam, Close Up,

Breeze, Ponds

Knorr, Kissan, Annapurna,

Lifebuoy, Clear, Rin, Liril, D

Lux, Wheel, Vaseline, Rex

Pears.

Width Length DepthHair Care Clinic Plus Dove Sunsilk Ayush Clear


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Skin Care Ponds Fair & Lovely Vaseline Aviance

Personal Products Toothpaste Close Up Pepsodent

Deodorants Rexona Axe Sure

Colour Cosmetics Lakme Elle 18

Infant Care HuggiesFeminine Care Kortex

Household Care Fabric Care Surf Excel Rin Sunlight Wheel Comfor

Dish Wash Vim

Personal Wash Lifebuoy Lux Dove Pears Breeze

Surface Cleaning Domex Cif

Food & Beverages Beverages Bru Red Label Lipton Taj MahalProcessed Foods Knorr Annapurna Kissan

Ice Cream & Bakery Kwality Wa Gelato Amaze Modern

Beauty & Wellnes Personal Care

Lakme

Beauty

Salon

Ayush

Therapy

Centres


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THANKYOU!

Documents

HUL-Group 1.pptx