Compare the product line strategy of HUL and P&G in detergent

segment

Presented By:-• GYANENDRA KUMAR

• AADITYA SINGH• JYOTI PANWAR• RAMAN KUMAR

• PUSPENDRA

Products of HUL and P&G

HUL P&G

INTRODUCTION• 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.

• 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.

• Founded in 1837, Procter & Gamble is one of the largest consumer products companies in the world.

• P&G has operations in more than 80 countries, with more than 300 brands on market in 160 countries. These include beauty care, household care and Gillette products.

HUL LAUNDRY CARE

Pioneer in Indian detergent powder.

Constantly upgraded itself.

e.g. Surfexcel Blue, Quick wash,

Launched in 1969, Rin with the power of its thunderous lightning flash has become a household name synonymous with dazzling white clothes.

A Value added brand with different variants e.g. Rin matric & Rin advanced.

Rin has won a number of accolades, the most recent being voted as the Most Preferred Detergent brand in India at the Awaaz Consumer Awards in 2006.

•A Heritage brand launched in 1888In the form of detergent cake.

•Value added brand i.e. priced over Wheel but below Rin.

•Famous in WB & Kerala.

SUNLIGHT

• Low priced detergent.

• Introduced in 1987 to compete with Nirma.

COMPETITORS

• SURF EXCEL: ARIEL

• WHEEL: NIRMA

• RIN: TIDE

Vs

Vs

MARKETING STRATEGIES OF HUL

STRATEGIES I HAVE MADE

MARKETING STRATEGIES OF HUL FOR URBAN INDIA

• Adopted Total Productive Maintenance(TPM) to meet zero error, zero loss.

• Focuses on short supply chain for distribution.

• To meet the every needs of people everywhere.

• Also uses Direct selling channel(HUN), franchisee to reach everyone e.g. Aviance, Ayush.

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

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.

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.

P&G LAUNDRY CARE

WHAT P&G DID?....

• Rapid pace of product extension

• Complex product line

• Not understanding the local markets mindset while renaming the product

• Halted its new product launches

• Pulled out non performing brands

• Followed standardization & variation in price

• Controlled cost to increase sales

WHAT IT SHOULD HAVE DONE?....

• Understanding domestic market, their needs

• Research on the potential market/customers

• Check out whether sufficient resources are available

• Cost incurred and ability of the company tomeet the cost

Location of Factor Types of Factors

Favorable Unfavorable

Internal Strengths:Diversified brand portfolioResearch and DevelopmentGlobal OperationStrong Distribution Network

Weakness:Online media & LeadershipDependencyMissing OpportunityWeakness in beauty care division

External Opportunity:DiversificationCapitalizing on online mediaGrowth in Indian FMCG marketEnvironment concern

Threats:CompetitionNo new product innovationGovernment regulation

SWOT Analysis:Strengths, Weaknesses, Opportunities, Threats

BRAND LOYALITY DISTRIBUTION CHANNELINNOVATIONPRICING STRATEGYQUALITY OF THE PRODUCT

WHAT MAKES “P&G” DIFFERENT FROM OTHERS?

PRODUCT DIFFERENTIATION

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Typical Distribution of P&G ProductsManufacturers (PGHH Ltd.India)

Marketing Agents - State wise

Retailers/Wholesalers/Distributors

Chemists Shops, Provision Stores ,

Retail Outlets, Big Markets etc

Intensive distribution

• PGHH Ltd, is following this strategy in india.• As the company manufactures the FMCG

convenience/ necessity goods.• As these serve the necessity goods hence there is

lesser/no brand loyalty from the customers side, so the distribution network of the company needs to be very strong and proactive.

Promotion strategy

• P&G insists on a pull strategy• Heavy advertising and media pioneer• Advertising creativity• P&G – A click mortar company• Coupon

Pricing strategies

• Understand how companies find a set of prices that maximizes the profits from the total product mix.

• Learn how companies adjust their prices to take into account different types of customers and situations.

• Know the key issues related to initiating and responding to price changes.

3

Company Name Net Sales Net Profit Operating

Profit Margin

(in Rs. Crore) Growth (%) (in Rs.

Crore.) Growth (%) (%) (%)

FY'08 FY'08 FY'07 FY'08 FY'08 FY'07 FY'08 FY'07

HUL 13880.56 13.36 9.38 1769.06 -4.65 31.76 14.95 14.74

Proctor and Gamble 643.95 18.54 -4.98 131.42 46.3 -35.6 27.75 24.14

Thank you for your time....