COMPETITIVE ANALYSIS OF COMPANY OF OUR OWN CHOICE
COMPETITIVE ANALYSIS OF
COMPANY OF OUR OWN CHOICE
Presented By
• Raj Kumar Thanvi 19• Mukesh Singh 30• Swati Singh 31• Satya Prakash Singh 46• Ankita Singh 68• Shashi Bhushan Singh 69
Hindustan Lever Ltd.
Hindustan Unilever Ltd.
IS NOW
Mr. Harish Manwani
Chairman
Mr. Douglas Baillie Baillie
CEOCEO
VISION
INTRODUCTIONINTRO
India's largest Fast Moving Consumer Goods company with 80 factories across India.
In 1931, first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935).
HUL formed in November 1956;
The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.
The mission – “add vitality to life.”
Contd..
• Sales growth in 2008-09 is 15.5%
• Operating margin increased by 0.4% from 14% to 14.4% in the year 2008-09
• Gross sales is 21649.51 crores
• Share price Rs 237.50
PRODUCT SEGMENTATION OF HUL
0%
10%
20%
30%
40%
50%
60%
70%
80%
HUL
COMPETITOR
COMPETITIVE SITUATION OF HUL WITH ITS COMPETITORS
PRODUCT RANGE BREAK-UP
STRIVING
ASPIRING
AFFLUENT
PERSONAL WASH BY HUL
HUL is the market leader in the soap segment in India
Competitors of HUL SOAPS
HUL brands
• Lux
• Rexona
• Breeze
• Lifebuoy
Competitors brands
• Santoor, Chandrika
• Cinthol, Mysore Sandal
• Godrej no. 1, Nirma
• Dettol
Competitors of HUL SOAPS HUL brands
• Pears
• Dove
• Hamam
Competitors brands• Santoor,
• Camay
• Margo
57% 55% 55%
52%
10% 9%8% 8%
9%
5%
HUL’s SOAP MARKETSHARE
The HUL Hair Care
Competitors of HUL Hair CareCompetitors of HUL Hair Care
• Sunsilk
• Clinic Plus
• Dove
• Sunsilk
• Clinic Plus
• Dove
• Pantene
• Head & Shoulders
• L’Oreal, Garnier
• Pantene
• Head & Shoulders
• L’Oreal, Garnier
Welcome to the segment Of
HUL Oral Care
Competitors of HUL Oral Care
• Pepsodent• Close Up
• Pepsodent• Close Up
• Colgate• Meswak• Dabur Red• Anchor
• Colgate• Meswak• Dabur Red• Anchor
48%
32%
2%
46% 47%
7%
30%
8%
30%
7%
TOOTHPASTE MARKET SHARE
HUL COSMETICS
Competitors of HUL Cosmetics
Lakme
Ponds
Lakme
Ponds
Revlon Maybelline L’OrealNiveaCharmise
Revlon Maybelline L’OrealNiveaCharmise
HUL LAUNDRY CARE
COMPETITORS
• SURF EXCEL: ARIEL
• WHEEL: NIRMA
• RIN: TIDE
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
STRATEGIC FOCUS OF UNILEVER
30
• Remain in tune with its markets and stays ahead of the competition
STRATEGIES FOLLOWED AT HUL
Distribution strategy.Distribution network(direct selling)Brand extension strategyLine extension strategyRepositioning strategyPromotional strategy-ads,(Rs700-800 cr)Segmentation strategy Premium brandAffordable brandValue for moneyInnovation strategy-introduction of sachet in shampooMergers and acquisitions strategy
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.
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.
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…..
51
HUL should………
52
Thank you for your time....