Unilever India in 2004

Presented To: Presented By:

Mr. Hitesh Manocha Praveen, Prashant, Neha
Singhal, Subhankar,
Sukanta, Bhuwan,Shikha,
Shweta ,Pankaj Lodhi
 Introduction

• HUL India’s largest FMCG company.

• Touches the life of 2 out of every 3 Indians everyday.
• The group has more than 400 brands spanning 14 categories of
home,personal care and food products.
• Presence in over 100 countries and employs more than 174,000
people worldwide.
• The company was incorporated in 1933 but its products have
been sold in India since 1888
• In India it has over 700 million consumers, more than 15,000
employees including 1300 managers.
 Product Portfolio

Soaps & Personal Beverages Foods Ice-cream

Detergent Product
Personal Hair care Tea Popular Kwality Wall’s
Wash food
Fabric Wash Oral Care Cofee Culinary

Household Skin Care

Care
Deodrants

Health Care
 Competitors
Domestic Players Foreign Players
Britannia Cadbury
Dabur Cocacola
ITC Colgate Palmolive
Marico Nestle
Nirma PepsiCo
P&G
 Project Millennium
 Project millennium aimed at promoting lateral thinking and
innovation instead of being dictated only by rules and
system, HLL was following.
 Management should consist of teams of young, talented
managers to explore a suggested way to generate growth.
 Project millennium team sat across the country to talk to
people and generate new ideas.
 HLL divided its business into three categories
 Horizon 1- Mature business
 Horizon 2- Business with future growth
opportunities
 Horizon 3- Unexplored business
 HLL concentrated its resources on brands with maximum
potential, size, competitive strength and growth potential,
known as power brands.
 PEST Analysis
Political:
•HUL never fund any government or any political party.
•MAOISTS enforces strike,close HUL’s Nepal factory

Economic:
•Increasing income level has encourage the opportunities
of HUL products even in rural areas
•Penetration level of HUL is almost 90% which is a sign of
sales of HUL products in high volume.
 Continued…
Social:
HUL started two programme
– Project Shakti
– Lifebouy Swasthya Chetna Programme
Built village in earthquake hit Gujarat
Rahabilitation and relief in Tsunami hit regions in South India
 Continued…

• Technology:
– HUL has traditionally been a company which
incorporates latest technology in all its operations.
– HUL has setup Hindustan Uniliver Research
Centre (HURC) since 1958 having over 200 highly
qualified scientist and technologists who help in
making innovative products.
– e-business initiative.
 SWOT
• Strengths:
– Strong and well differentiated brand with leading
share position
– Brand portfolio includes both global Unilever brands
and local brands
– Strong R&D capability
– Integrated supply chain and well spread
manufacturing units
– Distribution structure with wide reach,high quality
coverage and ability to leverage scale
– High quality manpower resources
 Continued…
• Weakness:
– Increased consumer expense on education
consumer durables,entertainment, etc resulting in
lower share of wallet for FMCG
– Limited success in changing eating habits of
people
– Price positioning in some categories allows for low
price competition
– High social cost(housing,food grains and
firewood,health and other welfare measures) in
the plantation business
 Continued…
• Opportunities:
– Growing opportunities in rural India
– Consumer sector on a secular growth trend
– Changing consumer preferences
– Opportunities in food sector
 Continued…
• Threats:
– Losing market share in most of the
categories
– The market is at mature stage and
penetration level is upto 90% level
– Stiff competition from local as well as MNC
players
– Spurious products
 BCG Matrix
* ?
Hair care,Skin Processed foods & Colour
Care,Premiums cosmetics
Soap,Laundry,Deo,Water
Pure It

Mass soap,beverages,oral Sea food export

care,laundry
 Porter’s 5 forces model
• Buyer’s Power:
– Price sensitivity
– Product loyalty
– Cost of Switching
• Supplier’s Power:
– Supplier size
– Oligopoly threat
 Continued…
• Threat of new entrant:
– Low cost switching
– Undifferentiated product
– Market Growth
– Weak Brand
– Distribution accessible
 Continued…
• Threat of Substitute:
– Cheap alternatives
– Beneficial alternatives
• Extent of rivalry:
– Competitor’s size
– Number of players
– Low fixed cost
– Lack of diversity
 Recommendation

• Product innovation

• More R&D for differentiation from the competitor

• To attract skilled human resource towards the organization

• Concentrating on core products

THANK YOU