bcg of hul

7/30/2019 bcg of hul

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Project Report On

Hindustan Unilever Ltd

By


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General Information

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a

heritage of over 75 years in India and touches the lives of two out of three Indians.

HUL works to create a better future every day and helps people feel good, look good and get more out of

life with brands and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care,

toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the

Company is a part of the everyday life of millions of consumers across India. Its portfolio includes

leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds,

Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr,

Kissan, Kwality Walls and Pureit.

The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores

(financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast

moving consumer goods with strong local roots in more than 100 countries across the globe with annualsales of about 46.5 billion in 2011. Unilever has about 52% shareholding in HUL.

Vision & Mission

We work to create a better future everyday

We help people feel good, look good and get more out of life with brands and services that are good forthem and good for others.

We will inspire people to take small everyday actions than can add up to a big difference for the world.

We will develop new ways of doing business that will allow us to double the size of our company whilereducing our environmental impact.


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Soap and Detergent Brands

1. Soaps

2. Detergents

Soap Products

1. Since 1993, Indian women have relied on Dove for beautiful skin

Variants

Dove-Gentle Exfoliating Bar Dove-Fresh Moisture Dove-Crme Beauty

2. Lifebuoy has journeyed from humble beginnings of being a chunky red bar of soap to anevolved range of general and specialized products across formats, offering solutions in the health andhygiene space.

Key facts

Worlds No. 1 Selling Germ Protection Soap Distribution across 50 lakh + stores across the country

Variants


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Lifebuoy Total 10 Lifebuoy Betel Leaf Lifebuoy Cool Fresh

Lifebuoy Mild Care Lifebuoy Vita Protect

3. With the goodness of glycerine & natural oils, Pears is trusted for being gentle, and isrecommended by doctors and paediatricians worldwide.

Variants

Pears Pure & Gentle Pears Germ shield Pears Oil Clear

4. Launched in 1931 as a mild, family soap. Perhaps the only Indian-made naturalsoap at the time, Hamam was embraced by mothers and doctors alike, for its purity and safety on skin.

Key Facts

A 300 Crore Herbal soap brand Market leader in Tamil Nadu

5. Lux is the worlds most iconic beauty bar & has a 90 year history of glamour and pleasure.

Key facts

The largest selling soap brand in the world The No.1 soap brand in India A $ 1 billion brand present in many countries across the globe

6. Launched as early as 1947, Rexona is a natural skin care soap that gives you silky

soft skin through the use of natural ingredients.

7. Ayush Therapy range is endorsed by Arya Vaidya Pharmacy, one of Indias mostreputed houses of Ayurveda and created by Hindustan Unilever Ltd., Indias leading FMCG Company.


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8.

.Key facts

One of the oldest soap brands in India A brand that has been consistent in bringing alive freshness A brand that has managed to create breakthrough advertising over the years

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Key facts

Launched in 1988 as a family beauty soap with the promise of a fresh feeling of nature Comes in 3 attractive variants French Rose, Divine Sandal, Lemon Splash

Detergents

1. A pioneer in the Indian detergent powder market, Surf Excel has constantly upgradeditself over the years, to answer the constantly changing washing needs of the Indian homemaker.

2. Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic. Over theyears, the brand has grown to become synonymous with sparking white clothes for its consumers.

Rin detergent powder was launched in 1994. This was the first product extension from the iconic brandthat stood for whiteness in laundry.


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3. Magic is Unilevers revolutionary Water-Saver that removes all lather from clothes in justthe first rinse.

4. One of India's largest detergent brands, Active Wheel aims to bring delight into the lives ofmillions of women across the country by giving them a blissful laundry experience reminiscent of thefragrance of thousands of flowers.

5. Sunlight has the innovative colour guard technology that keeps your clothes colours as newas ever, even after 40 washes. The No. 1 brand in the states it is present in, Bengal and Kerala.

BCG MATRIX -HUL products

Cash cowsare units with high market share in a slow-growing industry. These units typically generatecash in excess of the amount of cash needed to maintain the business. They are regarded as staid andboring, in a "mature" market, and every corporation would be thrilled to own as many as possible. Theyare to be "milked" continuously with as little investment as possible, since such investment would bewasted in an industry with low growth.

Dogsare more charitably called pets, are units with low market share in a mature, slow-growing industry.These units typically "break even", generating barely enough cash to maintain the business's market share.Though owning a breakeven unit provides the social benefit of providing jobs and possible synergies thatassist other business units, from an accounting point of view such a unit is worthless, not generating cashfor the company. They depress a profitable company's return on assets ratio, used by many investors tojudge how well a company is being managed.Dogs, it is thought, should be sold off.

Question marks(also known as problem child) are growing rapidly and thus consume large amounts ofcash, but because they have low market shares they donot generate much cash. The result is large netcash consumption. A question mark has the potential to gain market share and become a star, andeventually a cash cow when the market growth slows. If the question mark does not succeed in becomingthe market leader, then after perhaps years of cash consumption it will degenerate into a dog when themarket growth declines. Question marks must be analyzed carefully in order to determine whether theyare worth the investment required to grow market share.

Starsare units with a high market share in a fast-growing industry.

When growth slows, stars become cash cows if they have been able to maintain their category

leadership, or they move from bri ef Stardom to Dogdom


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STARS

LUX

DOVE

LIFEBUOY

QUESTION

MARKS

RIN

SUN LIGHT

CASH COWS

SURF EXCEL

PEARS

DOGS

WHEEL

BREEZE

Star

Lux:

Enjoys a market share of 16%. This industry has a high growth rate of 10%. HUL comes with different varieties quite frequently to maintain their market position.

Dove:

Lifebuoy:

Cash Cow

Surf Excel:

Has a market share of 37 % in 9000 Cr Market.Pears:

Question Mark

Rin:

Hul has 35% market share in detergent industry. Rin has only 4.8% market share

HIGH LOW

Market Share

HIGH

LOW

INDU

STRYGROWTHRATE


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Major Competitors :Tide, ArielSunlight:

Dog

Wheel: Mainly for low based income. Market share is falling. MajorCompetitors: Fena, Nirma

Breeze:

Strategies followed by HUL based on the BCG Matrix

Pan Pyramid straggling portfolio:Strong brands across benefits and price points. HUL being adistinct market leader is present across various price points right from the economy to thesuperior/premium price points. Thus the presence of strong brands across categories which addressesneeds of every consumer helps the company to gain high market share across its various categories.

Consumer value improvedcommodity cost benefit passed on:Further price deflation in quarterhas helped HUL pass on the lower cost benefit to the consumers and has thus helped gain market share inthe soap category. Price wars also lead to consumers being able to buy/ prefer ones which offer lowerprice and has thus helped HUL.

Bigger, better and faster innovations: Liquid portfolio expanded with launch of Surfexcel Liquid Vim Anti Germ Dish Wash liquid introduced Domex: Introduced acid based toilet cleaners. Lifebuoy color changing handwash was introduced Entry into fabric blues with the launch of Rin Perfect Shine Lifebuoy clini-care 10 launched The successful relaunch of Lux helped volume growth in the soaps segment and market share

seems to be stabilizing now.

Pushing consumer for more usage:low cost sachets/mini packets, seasonal products, accessibilityand additive usage. Driving more usage and thus driving in more users and more driving more benefits tothese users.

Competitive and compelling communication: more awareness, emotional connectivity, morepersuasive communication displayed by HUL gives a higher brand recall. HUL is the biggest FMCGplayer and has the scale to absorb increased ASP costs. Therefore increasing brand awareness for new andexisting products improves brand equity in the longer run and HUL believe this is the right strategy at thispoint of time. This should also enable the company to focus on other high margin business such aspersonal products.


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Highlighting benefits: Providing more benefits with expanded product range within a brand.

Supply chain management: HUL prioritise speed and flexibility in its supply chain to deliver growth.HUL are doing this through simple ideas.

For example, in some of its detergent factories HUL are running 'twin track' on single production lines.This has helped us to nearly double its production thus enabling better customer service while improvingoperating efficiencies.

Apart from this, today most of its production lines have developed the capability of quick changeovers tomeet the market demand.

Increasing consumption in rural markets:focus on increasing consumption in rural areas. HLLsdistribution network is recognised as one of its key strengths -- that which helps reach outits products across the length and breadth of this vast country. The need for a strong distributionnetwork is imperative, since HLLs corporate purpose is to meet the everyday needs of people

everywhere.

For rural India, HLL has established a single distribution channel by consolidating categories. In asignificant move, with long-term benefits, HLL has mounted an initiative, Project Streamline, to furtherincrease its rural reach with the help of rural sub-stockists. It has already appointed 6000 such sub-stockists. As a result, the distribution network directly covers about 50,000 villages, reaching about 250million consumers. Distribution will acquire a further edge with Project Shakti, HLL's partnership withSelf Help Groups of rural women. The project, started in 2001, already covers over 5000 villages in 52districts of Andhra Pradesh, Karnataka Madhya Pradesh and Gujarat, and is being progressively extended.The vision is to reach over 100,000 villages, thereby touching about 100 million consumers. The SHGshave chosen to adopt distribution of HLL's products as a business venture, armed with training from HLLand support from government agencies concerned and NGOs. A typical Shakti entrepreneur conductsbusiness of around Rs.15000 per month, which gives her an income in excess of Rs.1000 per month on asustainable basis. As most of these women are from below the poverty line, and live in extremely small

villages (less than 2000 population), this earning is very significant, and is almost double of their pasthousehold income.

Stepping up front end execution: more stores, better stores and better service. HUL rolled out aunique and innovative concept of 'Perfect Stores' as part of its endeavor to win with consumers at thepoint of sale.

Sustainability Strategy:

Small individual actions multiplied with our large consumer base will make a big difference in combatingthe issues society faces. For example, if one household uses Surf Excel detergent, it can conserve two

buckets of water per wash. A million Indian households using Surf Excel can save enough water formeeting the basic hygiene needs of many Indians. Small innovations in HUL brands and businessprocesses can lead to a big difference in society as they touch the lives of two out of every three Indians.In HUL, its Brands, customers and processes are the key drivers for sustainable growth and improvementin business processes. So HUL considers these factors as change elements in bringing BIGDIFFERENCE to the nation through their contribution by involving in the lives of every two out of everythree Indians.

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