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This Case was written by Thadamalla J, Sharma N, Girija P and
Dadhwal V, IBS Research Center. It is intended to be used as the
basis for class discussion rather than to illustrate either
effective or ineffective handling of a management situation. The
case was compiled from published sources. 2009, IBS Research
Center. No part of this publication may be copied, stored,
transmitted, reproduced or distributed in any form or medium
whatsoever without the permission of the copyright owner.
Hindustan Unilever Limiteds Rexona: Repositioning Rexona
Deodorant
Unilevers INR 55 billion ($1.36 billion) brand Rexona,
internationally spans across 90 markets worldwide commanding 14.5%
share of the global deodorant market.1 In India, as one of pioneer
brands of Hindustan Unilever Limited (HUL), Rexona was worth INR
1.78 billion in 2006.2 With an annual growth rate of 28%3, Rexona
constitutes a core brand in HULs brand portfolio. HULs Rexona, as a
soap brand constantly improved to keep up with the expectations of
the Indian consumers. As a deodorant brand though Rexona created a
new category in the personal care segment in India, it failed to
win over the consumers. Traditionally body odour was hardly taken
seriously in India, the consumers were highly accustomed to
perfumed soaps and talcum powders to fight body odours. The
deodorants at large were seen as smell-good, perfume-like products.
The hot weather conditions in India presented ideal market
opportunities to the deodorants, yet none of the major
manufacturers attempted to explore the market. Until the Rexona
deodorant was launched in 1995, the market for deodorants in India
was virtually non-existent. HUL faced an uphill task of changing
consumer perception towards its Rexona deodorant. HUL had been
striving hard to position its deodorant brand across mass markets
in India, where consumer possessed a different set of perception
for this product. In 2007, HUL decided to reposition Rexona
deodorant from fragrant deodorant to an antiperspirant for body
odour by introducing the roll-on formats. But analysts are
skeptical if Rexona can change the consumers perception towards
deodorants and gain a wider market. Household and Personal Care
Industry in India A Competitive Landscape Indias fast moving
consumer goods (FMCG) sector has been the fourth largest sector in
the economy.4 The Indian FMCG industry grew by 22% in 2006, with
food (43%) and personal care (22%) segments being the largest
contributors to the total sales.5 The total FMCG market is
estimated to be over $17.36 billion and is expected to reach $33.4
billion in 2015.6 The household and personal care (HPC) industry in
India comprised fabric wash, personal wash, hair care, oral care,
skin cosmetics, color cosmetics, mens toiletries and fragrances.
The HPC industry is divided into two segments premium segment and
popular segment. The popular segment catered to masses both in
urban and rural markets. While the mass-market products including
essential bath and shower products and oral hygiene accounted for
the bulk of value sales, premium products were restricted to the
upper middle classes and niche high-income consumers. Urbanisation,
a
1 Kapoor Priya, On a Roll, Pitch, April 2007, pages 36-37 2
Ibid. 3 Ibid. 4 Consumer Markets,
http://www.ibef.org/artdisplay.aspx?cat_id=114&art_id=17305,
December 4th 2007 5 Ibid. 6 Ibid.
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combination of changing lifestyles, higher disposable income,
greater product awareness, and affordable pricing had been
instrumental in driving the growth across HPC industry in India
(Annexure I). In India, among the FMCG companies, Hindustan
Unilever Limited (HUL) was the first company to introduce branded
FMCG in India. Besides HUL, the other major FMCG players in the
personal care industry in India were Procter&Gamble (P&G)7,
Colgate-Palmolive8, Reckitt Benckiser9, Godrej Consumer Products10
and Nirma11. Over a period of time, HUL emerged as Indias largest
fast moving consumer goods company.12 A number of prominent brands
came into the HULs fold as a result of its parent company,
Unilevers strategy to acquire international brands (Annexure II).
The business portfolio of HUL comprised five segments soaps,
detergents and household care, personal products, foods, chemical
agrifertilisers and animal feeds, and others. While soaps,
detergents and household care accounted for 47% of HULs total
sales, personal care products emerged as the second largest segment
for HUL in 2006.The segment accounted for 29% of the total sales
(Annexure III). 13 The sales in the soaps and detergents segment
which included fabric wash, dish wash and personal wash grew by
12.9%. In the personal products segment comprising hair care, skin
care, color cosmetics, toothpaste and deodorants, sales grew by
15.7%.14 HUL successfully emerged as a market leader across almost
all the major product categories in the Indian personal care
industry (Exhibit I). But, HUL has been struggling to capture the
rapidly growing deodorant market in India.
7 Procter & Gamble Company is a Fortune 500, American global
corporation based in Cincinnati, Ohio, that manufactures a wide
range of consumer goods. In 2007, P&G was the 25th largest US
Company by revenue, 18th largest by profit, and 10th in Fortune's
Most Admired Companies list. 8 Colgate-Palmolive Company is a US
diversified multinational corporation focused on the production,
distribution and provision of household, health care and personal
products, such as soaps, detergents, and oral hygiene products. 9
Reckitt Benckiser Plc., is one of the worlds leading manufacturers
of cleaning products. It has operations in more than 60 countries
and sells its products in more than 180 countries. 10 The Godrej
Group was established in 1897 and has since grown into a $1.875
billion conglomerate with a workforce of 18,000. 11 Nirma is a
group of companies based in the city of Ahmedabad in western India
manufacturing products ranging from cosmetics, soaps, detergents
and salt. Karsanbhai Patel, a well-known businessman, industrialist
and philanthropist of Gujarat, started Nirma as a one-man
operation. 12 About Us,
http://www.hll.com/knowus/present_stature.asp 13 Reports and Annual
Accounts 2006, http://www.hll.com/mediacentre/annualreport2006.pdf,
2006 14 Ibid.
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Exhibit I HULs Market Leadership
Source: Srinivasan S., Hindustan Unilever Limited,
http://www.hll.com/investor/presentation/2008/IR_presentation_MS_08.pdf,
February 14th 2008 The dynamics of Indian deodorant market had been
fast changing. While domestic deodorant brands were struggling, the
entry of foreign players significantly changed the market scenario.
While most of the chemist stores started stocking foreign brands
like Brut, Fa (both national and international versions), Cigar,
Charlie and others priced in the range of INR 100-INR 200, the
up-market retailers started displaying brands like Boucheron, Avon,
Burberrys, Adidas, Nivea, Joan, One Mans Show, Haloween at prices
ranging between INR 150 to INR 990. HUL owned two global deodorant
brands Axe and Rexona. Axe, which was launched in 1999, emerged as
the largest selling deodorant brand in India, with market share of
over 30%.15 However, HULs Rexona brand had been facing major
challenges in penetrating into the Indian deodorant market. Rexona,
worlds largest deodorant brand in sales and market shares had been
a market leader across more than half the world16 (Annexure IV).
Though Rexona had been one of the pioneer brands in Indian soaps
and deodorant market, it struggled to establish itself in the wake
of complex market dynamics (Annexure V). Rexona: Evolution as a
Deodorant Brand Rexona soap was launched in India in 1947. It was
positioned as natural skin care soap. Initially with its premium
quality and good market communication, the brand was well received
by the Indian consumers. In 1989, the brand came out with a
coconut-based ingredient which was different from other fragrant
soaps. But the soap could not leverage on its brand image and lost
its market in the wake of increasing competition. Though, globally
Rexona was known as an anti-perspirant brand, in India, it was
primarily known as a soap brand. In 1995, leveraging upon Rexonas
brand image, HUL decided to launch Rexona deodorant in the Indian
market. 15 Challapalli Sravanthi, Set to smell success,
http://www.thehindubusinessline.com/catalyst/2007/06/21/stories/2007062150220300.htm,
June 21st 2007 16 What makes Rexona tick?,
http://www.unilever.com/ourbrands/personalcare/Rexona.asp?linkid=dropdown
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Till 1995, deodorant market was virtually non-existent in India.
Although some international brands like Fa which was marketed by
Chennai-based Henkel Spic and Baccarose cosmetics brands, Copper
and Chromium were available, the market in India was still in the
nascent stage. The Indian deodorant market was highly under
developed and under penetrated. Though the hot weather conditions
presented a lucrative market to the deodorant marketers, the
consumer perception for deodorants posed a major challenge. In
India, the deodorants were largely perceived as smell-good,
perfume-like products. The consumers were used to fragrance-based
soaps. To position its product in this category was a critical
challenge for HUL. According to Viral Oza, Marketing Manager
(Personal Products), HUL, There was no awareness of this category
of products earlier. The only stuff that existed in the organised
fragrances category was the traditional attars and the local
perfumes.17
The existing marketers mainly targeted the urban segments that
understood the deodorants advantages over the traditional soap-talc
combinations. These marketers targeted their products at those
market segments which were well aware about the use and properties
of deodorants. The majority of the mass markets still perceived
deodorants as perfumes which posed a major challenge for HUL. B.
Nandakumar, President (Marketing & Sales), CavinKare18,
explained, There was a lot of confusion over the use of deodorants
vis-a-vis perfume. Talcum powder has played the same role with its
multiple benefit deliveries. There is a perceived value for money
issue vis-a-vis talcs. There aren't enough large players with money
and imagination to educate and attract consumers. Marketing to
enhance appeal of the category did also not back it and awareness,
hence, was tardy at best.19
Besides positioning its product, HUL had the major task of
changing consumers frame of reference for the category itself. So
far, the marketing for existing deodorant brands kept focusing on
the fragrance factor and consumers at large considered deodorant
sprays as a cheaper form of perfumes. As the spray form was largely
popular for their smell good, perfume-like attributes, HUL extended
Rexona deodorant in stick and roll-on versions to emphasise the
difference between deodorants and perfumes. The new formats
strategically positioned Rexona on the functional basis as the
roll-on versions and contact sticks had body odour fighting
properties and the effects lasted much longer than the spray
deodorants. With this, HUL intended to create a new customer base
of first time users in the mass markets. HUL introduced the Rexona
deodorant at an attractive price that was significantly below the
competition. While the 20 gm push-up stick was priced at an
affordable INR 21, the roll-on was priced at INR 35 for 40ml.
Though sticks and roll-ons were more expensive than aerosols, these
made attractive propositions for trial usage. As the awareness
level on the need to use a deodorant was lower than 10%, the
company started spreading awareness about the usage of
deodorants.20 Shrijeet Mishra, Business Head, deodorants and talcs,
HUL, commented, Consumers believed that body odour was the other
persons problem.21 While HUL had to change consumer perception for
deodorants, HUL faced another challenge to draw markets attention
towards body odour as traditionally, body odour was not considered
as serious issue in India.
17 Sravanthi Challapalli, By the sweat of their brow,
http://www.hinduonnet.com/businessline/catalyst/2001/05/24/stories/1924f05a.htm,
May 24th 2001 18 CavinKare is the Chennai-based beauty products
company which owns the Spinz brand. 19By the sweat of their brow,
op.cit. 20 The Scent of The Business,
http://www.magindia.com/manarch/news/man401.html, May 30th 2001 21
Ibid.
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To bring in awareness about body odour, HUL focussed upon the
brand communication which talked about the rational benefits of the
product. The tagline for communication was har pal sath nibhaye
(with you every moment). The advertising campaigns were designed to
position the Rexona deodorant as a protection product against body
odour. The first television advertisement showed a lady sneaking up
behind a small boy and clasping her hands over his eyes. The small
boy was shown guessing her to be Shilpa Aunty, only because of her
body odour. The second commercial depicted a concious boss who
overhears his junior wanting to buy a deo for him as a gift.
Another advertisement showed a young girl who gets embarrassed on
overhearing her colleagues talking about her body odour problem.
The campaigns successfully drew a lot of attention towards body
odour problems. The Rexona deodorant started playing an important
role in building this category and created a new demand for the
market.
The roll-on and contact sticks formats for Rexona deodorant did
pose another test for HUL. While these versions of deodorants were
largely seen as highly personal products, these were also perceived
to be sticky. As more than one person in the family could use the
spray formats, the spray forms got more popular as family products.
In 1997, HUL relaunched Rexona in aerosol cans and priced the
product at INR 65 for 75ml and INR 95 for 150ml. In 1998, Rexona
came up with two new variants; Fresh Green and Cool Blue which were
priced at INR 71 for 75 ml.22
In 1999, HUL brands together held 67.5% market share in the
Indian deodorant market. While Rexona emerged as the market leader
with 44.8% market share, Ponds with 17.2% and Denim with 5.5% were
also growing. In 2000, HUL further penetrated into the deodorant
market.23
To induce deodorant trials for first time users, HUL introduced
low-unit price packs of Rexona deodorant at INR 5.50 for 5 gm which
was the lowest price for a deodorant stick product in the world.24
Hemant Bakshi, HULs marketing manager said, The introduction of
low-unit price packs is not a new phenomenon for HUL. By doing so
in the deodorant category, we have made the product affordable to
the large populace. However, as against in shampoos where a sachet
is a convenient means of using a product and most sachet users
remain sachet users; in deodorants we expect the consumer to
upgrade to using a larger pack size after testing the INR 5.50
pack.25 The company also initiated a massive sampling exercise for
the product to induce trials. In 2001, the deodorant market in
India was worth INR 750 million ($15.54 million). HUL was the
market leader with 70% market share. Rexona brand accounted for 39%
market. While HULs Axe held 20% of the market, Denim and Impulse
both held the remaining 11%. The main competitors for HUL; Fa
accounted for 6% of the market and Gillette held 4%-5%.26 The
deodorant market had been growing but penetration levels for
deodorants were still low at 0.5% with hardly five million users in
India using deodorants.27 Consumers could not distinguish between
body sprays, antiperspirant and perfumes. In an attempt to address
to Rexona brands core values, HUL launched International Rexona 24
HR Intensive, which was positioned as round-the-clock protection
product. The new deodorant was available in two variants; Rexona
Activa and Rexona Gradual. It was available in aerosol cans as well
as contact sticks in different sizes (Annexure VI). The 75ml and
150 ml packs were
22 Ibid. 23 Singh Namrata, HLL pushes Rexona deo in 5gm pack to
induce trials,
http://www.expressindia.com/news/fe/daily/20000119/fst19089.html,
January 19th 2000 24 Ibid. 25 Ibid. 26 The scent of the business,
op.cit. 27 HLL pushes Rexona deo in 5gm pack to induce trails,
op.cit.
5
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competitively priced at INR 75 and INR 110 respectively. The
deodorant sticks sold for INR 25 (for 20 gm) and INR 8 (for 5 gm).
Fa was priced at INR 90 for a can of 125 ml and Gillettes range of
deodorant sprays in four variants Wild Rain, Cool Wave, Pacific
Light and Arctic Ice were available at INR 195 for 150 ml. HULs own
brands; Axe and Denim which were aimed at men were priced at INR
120 for 150 ml, and INR 110 for 150 ml respectively.28 For its
intensive range, a 40-second television commercial was created
which talked about the 24 hour protection and the baseline
reinforced the brands value platform with a tagline Tan ki
durgandh... bandh (a full stop to body odour). Even the posters and
the press advertising focused on the 24 hour efficacy of the brand
at length. Deodorant market in India which initially comprised the
urban elite was fast changing. The trends like growing incomes,
changing attitudes, increased exposure to international lifestyles
and increased consumers awareness initiated growth in the deodorant
market in India. With brands deciding to come out with affordable
variants of deodorants, the deodorant got popular also across
mid-segment. But still the deodorant related products remained
popular largely in urban areas. The rural market remained highly
under penetrated. Parmit Chadha, CEO of Chennai-based Paradigm
Management Knowhow Pvt Ltd, a market research company explained, It
is more of a cultural thing. Body odour was perceived not to be a
problem at all as traditionally, Indians bathed more than once a
day and their clothing was loose. Further, talcs filled that gap.
Imported deos and anti-perspirants were quite horrendously priced,
and in the case of some brands, there was 100 per cent excise duty
on alcohol-based products. Even today, the prices of deos from
foreign companies such as Avon and Amway are quite high.29 The
dominance of foreign brands in Indian deodorant market was
unsettling Rexonas position in the market. In 2004, HULs market
share declined to 62% from 70% in 2001. HULs Axe overtook Rexona
with a 26% market share. Rexonas market share decreased to 24.4%.30
In response to the increasing competition, Rexona deodorant
introduced a new variant in order to evade competitors from
entering the category it created. Rexona introduced a new variant,
New Rexona Free Spirit an antiperspirant deodorant that was
designed specially for women. The product was launched with a hot
air balloon event and international model Juliana Rogatti Lima was
featured in Free Spirit campaigns. Rexona Free Spirit had a fresh
floral feminine fragrance that had specially been used to reinforce
and reflect the free spirited image. The fragrance was combined
with Rexonas antiperspirant formula to give a superior protection
from underarm sweat and body odour. Rexona Free Spirit which was
available in 75ml and 150ml aerosols packs were priced at INR 75
and INR 125 respectively.31
Though roll-ons were more effective against body odour, sprays
remained the preferred mode of usage. Ranju Mohan, vice president
(Sales), Henkel India said, The organised market in deodorants is
estimated at INR 125 crores. Sprays account for 95% of the
business. This is because people think of deodorant as a
fragrance.32 Despite HULs focus on spray forms, in 2006, its market
share was on a decline and further decreased to 58%33. Rexona
deodorant was positioned as a unisex brand with the baseline Wont
let you down. The Rexona brand had been 28 Ibid. 29 By the sweat of
their brow, op.cit. 30 Rexona launches Free Spirit antiperspirant
deo for women,
http://www.exchange4media.com/trend/trend_FullStory.asp?news_id=13761,
October 15th 2004 31 Rexona launches Free Spirit antiperspirant deo
for women, op.cit. 32 Sravanthi Challapalli, Deos Need Underarm
Tactics to Grow,
http://www.thehindubusinessline.com/2006/06/01/stories/2006060103031200.htm,
June 1st 2006 33 Ibid.
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unable to beat stiff competition by foreign deodorant sprays
despite its relatively low price point at INR 30. Rexona deodorant
spray was priced at INR 70 against other deodorant sprays in the
market which were priced between INR 100 and INR 150. As Rexona
soap was made available only in India, Rexona deodorant was being
perceived as an Indian brand. Rexona deodorants association with
the Rexona soap and its low-pricing strategy posed major problems
for HUL in positioning its product against foreign brands.
While HULs Axe became the largest selling deodorant brand in
India, Rexona still struggled to position itself in the mass
market. Rexonas international brand image of an anti-perspirant was
still missing in India. The traditional perception for deodorants
posed a major hurdle for Rexona. HUL, in an attempt to change
consumers frame of reference for its deodorant brand, decided to
reposition Rexona brand as a body odour protector by focusing on
the roll-on format. Rexonas roll-on deodorant was available in two
variants for both men and women; Free Spirit for women and Ice Cool
for men. Repositioning Rexona: A Strategic Response In 2007, HUL
came up with a plan named the 30-20-10 plan for Rexona brand.
According to Lakme Levers vice president, Anil Chopra (Chopra), We
intend to make Rexona a 30 million euro brand, which is about INR
150 crore. Currently there are only 3.5 million deodorants users in
the country; it is our objective to generate 20 million users,
which will help us achieve our financial target. The last lap is
reaching the 10 mark, by which we mean that we need this to happen
by 2010.34 HUL decided to reposition the brand to capture the
consumers mindspace. HUL strongly believed that the very essence of
brand was ambiguous in the market. While HUL had a major challenge
of re-positioning Rexona as a basic hygiene product, the consumer
awareness for the roll-on formats and its usage posed another
obstacle for HUL. With only 8%35 of the urban consumers using
deodorants as a basic hygiene product, the market was still highly
under-penetrated. FMCG major has also changed the positioning of
the product from a "fragrance category" to health and hygiene. A
larger awareness needs to be built around the roll on deo product
as against the aerosol sprays. Rexona has decided to look at the
health and hygiene category instead of limiting itself to merely a
smell good product,36 said Lakme Lever, vice president, Anil Chopra
(Chopra). HUL launched a major marketing drive to communicate the
brand essence. As confusion about the use of a spray form continued
prevailing across mass segments, Rexona decided to focus on roll-on
formats. The company had a major task of not only repositioning the
brands core values but also changing the customers frame of
reference for roll-on formats on functional basis for its Rexona
deodorants. The biggest change that has happened at Rexona is at
the product level. For the initial 10 years, the product was in a
spray form. There is a lot of confusion about the use of a spray
form in the country, where people automatically assume it is a
smell-good, perfume-like product. The confusion was whether the
product was offered to make him smell good, or whether the product
was offered to protect him agianst body odour. It is this
significant change in the positioning and
34 On a Roll, op.cit. 35 Ibid. 36 Rexona deo ropes in Preity
Zinta as brand ambassador,
http://www.indiantelevision.com/mam/headlines/y2k7/feb/febmam79.htm,
February 27th 2007
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508-064-1
that is why we have got into a rollon format. The idea is to
make the shift from a nice smelling product to a protection
product. That has really been the big shift for us,37 explained
Chopra. To enhance its brand image, the company signed Bollywood
actress Preity Zinta as the brand ambassador for the new Be ready
campaigns for Rexona roll-on deodorant. While Preity Zinta lent a
positive image to the product, the company is also planning for a
360-degree marketing campaign. HUL is coming up with an elaborative
marketing plan including public relations, radio, SMS, on ground
sampling, the print media, in shop sales and television to
propagate its message. According to HULs deodorant marketing
manager Shubhranshu Singh, Apart from the television commercial
featuring Preity, the campaign will involve on ground activity like
direct sampling and a contest which allows a lucky winner to enjoy
a movie date with Preity.38 To reach its target segment, HUL
intends to market its deodorant in the malls rather than selling
them in small local shops. Across all the household and personal
care categories, deodorant market was the least penetrated market.
(Exhibit II).
Exhibit II
Penetration Rate* (%) of Various Household and Personal Care
Products in 2007 Category All India % Urban % Rural % Deodorants
2.1 5.5 0.6 Toothpaste 48.6 74.9 37.6 Skin Cream 22.0 31.5 17.8
Shampoo 38.0 52.1 31.9 Utensil Cleaner 28.0 59.9 14.6 Instant
Coffee 6.6 15.5 2.8 Washing Powder 86.1 90.7 84.1 Detergent Bar
88.6 91.4 87.4 Toilet Soap 91.5 97.4 88.9 *Penetration numbers
based on study conducted by Indian Readership Survey, on a sample
size of ~250,000 based on usage in 6 months Source: Srinivasan S.,
Hindustan Unilever Limited,
http://www.hll.com/investor/presentation/2008/IR_presentation_MS_08.pdf,
February 14th 2008 In 2007, there were around 3.5 million
deodorants users in India. While urban consumer generated majority
of deodorant sales, only 8% of the urban consumers used deodorant
as a basic hygiene product.39 According to Sudarshan Singh, Brand
Manager, Nivea India, Increasing penetration would involve a
combination of increasing the products relevance by educating the
consumer and by giving them low unit price packs to enable them to
enter the category. Currently, deos and even anti-perspirants are
used as perfumes and sprayed on the clothes rather than the body.40
Though Rexona seemed to be on the right path, changing consumers
frame of reference towards the category posed the biggest
challenge.
37On a Roll, op.cit. 38 Rexona deo ropes in Preity Zinta as
brand ambassador, op.cit. 39 On a Roll, op.cit. 40 Set to smell
success, op.cit.
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Annexure I
GDP Growth in India Since 2000
Source: Investor Presentation: Hindustan Unilever Limited,
http://www.hll.com/investor/presentation/2008/IR_presentation_Isec_08.pdf,
March 3rd 2008
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508-064-1
Annexure II
HULs Brand Portfolio Home and Personal Care
Foods
Home & Personal Care Brands Personal Wash Lux, Breeze, Dove,
Lifebuoy, Liril, Pears, Hamam and
Rexona Laundry Surf Excel, Rin, Wheel Skin Care Fair &
Lovely, Ponds Hair Care Sunsilk Naturals & Clinic Oral Care
Pepsodent & Close-up Deodorants Axe & Rexona Colour
Cosmetics Lakme Ayurvedic Personal and Health Care
Ayush
Foods Tea Brook Bond & Lipton Coffee Brook Bond Bru Foods
Kissan, Annapurna, Knnor Ice Cream Kwality Walls
Compiled by the authors
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Annexure III
Performance Trends of HUL 1997-2006
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Gross Sales
(INR in Crores)
8343 10215 10918 11392 11781 10952 11096 10888 11976 13035
By Segment % of Sales
Soaps, detergent and Household care
45 39 41 40 40 45 44 45 45 47
Personal products 11 16 17 17 21 22 24 26 28 29 Foods 34 35 34
37 33 30 29 27 25 22 Chemical Agri, Fertilisers and Animal
Feeds
6 6 6 4 3 2 2 1 1 1
Others 4 4 2 2 3 1 1 1 1 1 EBIT as % of sales 8.8 9.5 10.7 12.3
14.0 17.6 18.4 13.4 12.3 13.1 Fixed assets turnover (times)
10.5 9.7 10.0 9.5 8.9 8.3 8.1 7.2 8.1 8.6
Working Capital Turnover (times)
68.2 45.2 58.3 - - - - - -- -
Economic value added (EVA) (INR Crores)
365 548 694 858 1080 1236 1429 887 1014 1125
E.P.S. of INR 1 2.81 3.67 4.86 5.95 7.46 8.04 8.05 5.44 6.40
8.41 D.P.S. of INR 1 1.70 2.20 2.90 3.50 5.00 5.16 5.50 5.00 5.00
6.00 P.A.T./Sales (%) 7.0 8.2 9.8 11.5 13.1 15.8 16.3 11.0 11.3
11.8 R.O.C.E. (%) 51.2 49.0 51.0 53.8 52.8 51.8 53.0 40.8 62.3 61.1
R.O.N.W (%) 46.0 48.9 50.9 52.7 53.9 48.4 82.8 57.2 61.1 68.1
Source: Reports and Annual Accounts 2006,
http://www.hll.com/mediacentre/annualreport2006.pdf, 2006
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Annexure IV
Rexonas Global Sales Growth Between 1996 and 2006
Source: Rozanski Gerardo, Rexona: Deodorants model for global
success,
http://www.unilever.com/Images/ir_1.6_rexona_rozanski%20web_tcm13-86712.pdf,
March 13th 2007
Annexure V
Rexona in Global Markets as of 2007
Source: Rozanski Gerardo, Rexona: Deodorants model for global
success,
http://www.unilever.com/Images/ir_1.6_rexona_rozanski%20web_tcm13-86712.pdf,
March 13th 2007
12
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508-064-1
13
Annexure VI
Variants of Rexona Deodorant
Source: HUL to hard sell Rexona deodorant variant,
http://www.hinduonnet.com/businessline/catalyst/2001/04/26/stories/1926m05d.htm,
April 26th 2001
Exhibit IHULs Market LeadershipRexona: Evolution as a Deodorant
Brand
Annexure IIIAnnexure V