SWOT ANALYSIS
Strengths:
• Strong brand portfolio, price, quantity & variety.• Innovative Aspects.• Presence of Established distribution networks in both urban and rural areas.3400 distributers16 million outlets over the world.700 million customer base.• Strong R&D of the company• Highly skilled human resource.• Corporate Social Responsibility(CSR)
Weaknesses:
Strong Competitors.
Low exports level(at present).
Changing consumption pattern.
High advertising costs.
SWOT Analysis
Opportunities:
Large domestic market – over a billion population.Untapped rural market.Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.
SWOT Analysis
Threats: Tax and regulatory structure. Mimic of brands Entry of ITC in FMCG sector. Increasing cost of raw material.
SWOT Analysis
PORTER’S FORCES
PORTER’S DIAGRAM
RIVALS
Consumer in this category enjoy multitude of choices.
It does not cost anything for a consumer to buy one brand of shampoo instead of another,
making the industry quite competitive.
SUPPLIERS
Consumer product faces some amount of supplier power simply
because of the cost they incur when switching suppliers
Suppliers that do a large amount of business with these companies are also beholden to their customers.
Verdict: limited supply power
BUYERS(CUSTOMERS)
Consumer faces weak buying power because customers are
fragmented and have little influence on price or product.
Considering buyer power retailers it is very high since they are able to
negotiate the price with the companies.
Verdict: Strong buyer power from retailers.
POTENTIAL ENTRENT
Given the amount of capital investment needed to enter certain segment in house hold consumer
products, the threat of new entrant is fairly low.
Whether the new entrant can get its products on the shelves of the same
retailers as its much larger rivals.
Verdict: low threat of new entrants.
THREAT OF SUBSTITUTE
Within the consumer product industry, brand succeeds in helping to build a competitive advantage, but even the pricing power of the brands can be
eroded.
Verdict: high threat of substitutes.
Distribution strategy.Distribution
network(direct selling)Brand extension
strategyLine extension strategyRepositioning strategyPromotional strategy-
ads,(Rs700-800 cr)
Segmentation strategy
Premium brandAffordable brandValue for money Innovation strategy-
introduction of sachet in shampoo
Mergers and acquisitions strategy
STRATEGIES FOLLOWED AT HUL
MARKETING STRATEGIES OF HUL
STRATEGIES I HAVE MADE
MARKETING STRATEGIES OF HUL FOR URBAN INDIA
• Focuses on short supply chain for distribution.
• To meet the every need of people everywhere.
• Build segments & market for the future where Unilever has strong expertise.
• Also uses Direct selling channel, franchisee to reach everyone e.g. Unicare.
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.
EVERYDAY I WILL SELL.EVERYDAY I WILL EARN.MONEY. RESPECT
Started in 2001, Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less.
micro-enterprise opportunities for rural women
Providing health n hygiene education through shaktivani program
ishakti portal
Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 women entrepreneurs and generating Rs.700-1000 per month to each women.
Corporate social responsibility Providing education on health and hygiene
Women empowerment
Water management
Rehabilitation of special or underprivileged children
Care for the destitute and HIV-positive
Rural development.
Plays active role in natural calamities
STRATEGIES…..
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HUL should………
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