Hul-final Integrated Ppt

8/7/2019 Hul-final Integrated Ppt

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HUL was formed in 1933 as LeverBrothers India Limited & later in late 2007renamed as Hindustan Unilever Ltd.

India's largest Fast Moving ConsumerGoods company & country's largestexporters.

HUL has employee strength of over 15,000 employees and contributes to indirect employment of over52,000 people.

The Anglo-Dutch company Unilever owns a 52% majority stake in Hindustan uniliver Limited.

Hindustan Unilever's distribution covers over 1 million retail outlets across India directly and itsproducts are available in over 6.3 million outlets in the country.

HUL holds 40 factories across India for manufacturing its diverse product range.

("Present stature", official website)


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Mission

To add Vitality to life.

We meet everyday needs for nutrition, hygiene, and personal care with brands that help people

feel good, look good and get more out of life.

Vision

Unilever products touch the lives of over 2 billion people every day whether that's through

feeling great because they've got shiny hair and a brilliant smile, keeping their homes

fresh and clean, or by enjoying a great cup of tea, satisfying meal

or healthy snack.

(Scribd 2010)


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2010

Headed by Chairman-

Mr. Harish Manwani

&

CEO Mr. Nitin Paranjpe

5 Whole time Executive

Director

4 Independent Non -

Executive Director(Companies official website)


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Two out of three Indians use Hindustan Unilever products.

From feeding your family to keeping your home clean and

fresh, our brands are part of everyday life.

Food

Beverages

Health,

hygiene

&beauty

Nutrition

Personal

care

Water Homecare


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Net Profit Margin % has increased in 2010 compared to previous year which shows there

was improvement in HULs operational efficiency.

HUL have negligible financial risks as its debt-equity ratio is zero.

The inventory Turnover Ratio is higher as compared to 2005 in year 2010, this indicates

HUL have good inventory management.

FINANCIAL

ANALYSIS

TheDebtor turnover ratio has decreased in 2010 This indicates that HULs debt

recovery system is not efficient. And this is not good for liquidity.

The EPS has declined in year 2010, this indicates HUL has earned lesser profits

for shareholders in this year compared to last year.


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Personnel planning and vacancy announcementInternet, Online-job portal ,Newspaper

Nature of Application form

2 different forms one for entry levels another for experienced people.

Brands & Development, Supply Chain management, Human Resources, Finance, Information

Technology, Customer Management.

Recruiters qualification

Channels of recruitment

External recruitment channel.

Internal recruitment channel - For senior posts in Brand Management.

Recruitment- Constraints and challengesHR Policy restrict the number of part-time employees.

A limited pool of potential applicants.


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Reception of application

Evaluating reference and biographical data

Employment test

Assessing candidate through interview

Cognitive ability test

Physical ability test

Work samples

Hiring decision

SELECTIONPROCESS


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On the job Training

Strengthening Employability

Professional skills

Continual update

Personal development

TRAINING & DEVELOPMENTTRAINING & DEVELOPMENT


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POLITICAL

y India abolished licensing in 2001 for all food and agro-processing industries.

y Government has reduced excise duties & import duty rates substantially.

y Automatic foreign investment up to 100 foreign equity is allowed in food industry .

y Now 100% export oriented units can be setup by government approval.

y The use of foreign brand names is now freely permitted.

y Transportation and infrastructure development in rural areas helps in distribution network.

ECONOMIC:

yIncrease in GDP Rate.

yThere is an increase in personal disposable income.

yThe FMCG due to the steady rise in prices saw an industry growth by 12% in fiscal year 2009.

yAverage Indian spending on groceries and personal care is 48%. Groceries 40% & personal care 8%

yIn 2010 the FMCG industry is slated for a growth of 15% compared with that of 2009.

yThe Indian FMCG sector with a market size of US$13.1 billion is a 4th largest sector of Indian.

(www.docstoc.com)

(tradingeconomics.com)

PEST ANALYSIS OF FMCG INDUSTRY


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SOCIAL/CULTURAL:

y About 200 million people are expected to shift to processed and packaged food by the end of 2010.

yThere is an increase is spending pattern in Indian FMCG market.

y There is an increase in disposable income, of household mainly because of increase in nuclear family, has

leads to growth rate in FMCG goods.

y People are becoming conscious about health and hygienic.

y Consumer and now looking at Money for Value rather than Value for Money.

yConsumers are switching from economy to premium product.

y 71 per cent of Indian take notice of packaged goods labels containing nutritional information.

(projectbaba.com)

TECHNOLOGICAL:y Technology has been simplified and available in the industry.

y Foreign players helps in high technological development

(Scribd.com)

PEST ANALYSIS OF FMCG INDUSTRY


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BUYER POWER:

This is because in FMCG industry the switching costs of most of the goods is their and there is always threat of buyingone product over other.

Verdict: strong buyer power of consumers

SUPPLIER POWER

The bargaining power of suppliers of raw materials and intermediate goods is not very high.

There is ample number of substitute suppliers available and the raw materials are also readily available

Verdict: limited supply power

THREAT OFNEW ENTRANTS:

Given the amount of capital investment needed to enter certain segment in house hold Consumer products, the

threat of new entrant is fairly low.

Verdict: low threat of new entrants.

THREAT OF SUBSTITUTES:

High threat of substitutes.

DEGREE OF RIVALRY

Moreover competitors use all sorts of tactics from intensive advertisement campaigns to promotional stuff and price

wars etc. so overall the intensity of rivalry is very high.

PORTERS FIVE FORCES ANALYSIS

(Scribd 2010)


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STRENGHTS

Subsidiary of Unilever Group

Largest market share

Strong product portfolio

Strong distribution network

Strong R&D

Highly skilled human resource

WEAKNESS

Intense Competition

Losing Market Share

High Advertising Costs

Changing Consumption Patterns

OPPORTUNITIES

Large domestic market Untapped rural Market:

Changing Lifestyles

Diversification

Opportunity in Food Sector

THREATS

Increasing costs of raw material ITC Entry

Tax & Regulatory Structure

SWOT ANALYSIS

(Business week & Economic times)


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Value Proposition: Lifebuoy provides total protection and positioned as health and hygiene soap. The brand USP

is Lifebuoy provides 100% better protection from germs as compared to ordinary soaps.

Demographic segmentation

Age 6 to 50 +

Gender Anyone

Family Size 2,3-4,5+

Income Rs.4000+

Target Area Lower Income group

Social class Middle & lower class

Geographic Segmentation

World region Asia

Country & cities

Developing countries like

India & Pakistan

Target area

Sub-urban & Semi-urban

& rural areas

ehavioral Segmentation

Benefits Total protection anti-bacterial soap

User status Regular user

Loyalty status Split-loyal

Usage rate Medium

Buyer readiness Informed & interested

Psychographic segmentation

Attitude Health-conscious & energetic

Lifestyle

For people who are involved highly in

Indoor as well as Outdoor oriented &

sports oriented activities

(Scribd)

LIFEBUOY SOAP-BUSINESS MODEL


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HUL uses intensive distribution strategy for Lifebuoy .

Competitive Strategy : Focused cost leadership strategy & price

differentiation strategy followed in case of lifebuoy soap.

LIFEBUOY SOAP-BUSINESS MODEL.

(Scribd)


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The Americas

y Operating profit (millions): 1 857

y Turnover (millions): 12 743

y Purchases of goods and services (millions): 9 136

y Employees (year end): 40 750

Western Europe





Asia, Africa and Central & Eastern Europe





UNILEVER REGION WISE STATATICS-2009

(Unilever.com)


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Targeted one market at a time

Unilever firstly entered in foreign market to compete internationally by entering just one or select few foreign

markets.

Focus onGlobal Strategy

In entering and competing in foreign markets for its cosmetics and toiletries product, Unilever follows a global

strategy, also called by a think-global and act-global strategy

Developing Regions

Unilever is increasing its efforts to build on its long-established local roots in developing regions through its well-

established distribution network.

Cross-market subsidization

While entering the emerging-country market Unilever prepare to compete on the basis of low prices. Unilever

pursue this strategy because consumers in emerging markets are often highly focused on price.

UNILEVERS INTERNATIONAL GROWTH STRATEGIES

(wordpress.com)


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HUL should allocate its advertisement budgets more evenly among the major cities and small towns to

compete with the international as well as local competitors alike.HUL should focus on market research and product development more. This is very crucial activity if the

company wants to see steady growth in future. Innovation is the key to success here. HUL should seriously start

developing improved products to cater the emerging needs of the consumers.

HUL should not use price-cuts to compete with its key rivals like P&G, instead it should promote its power

brands as premium and value added products for the following reasons:

Price competition among rival firms is stern and it is not possible for HUL to

maintain its profit margins without compromising on product quality.

Products of other firms are quite similar to what HUL is offering.

Buyers have low switching costs and thus low brand-loyalty.

There are few ways of differentiating a product from other than developing a new

one.

Recommendations


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Presented By:

Neha Malik

Hul-final Integrated Ppt

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