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HUL fighting the challenge in the    growing FMCG market
The market in figuresData in Euros     2003-04       2005-06      Increase  Cosmetics      1.2billion    1.6 billion    33...
Growth in FMGC•The rising GDP and Per Capita Income in India is promising growth in theFMCG market. In this scenario, HUL ...
HUL - India’s largest FMCG company
Leadership across Diverse FMCG Categories
Opportunities & Challenges• A buoyant & growing economy• Increasing per capita income drives FMCG growth• A changing profi...
India - 2013
Opportunity to grow consumption
Opportunity to grow consumption
Opportunity to grow penetration
Segmentation Targeting    &Positioning
Personal wash
Laundry
Hair care
Skin care
Tooth paste
Tea
Coffee
Packaged food• Highly under penetrated• Implement the foods strategy• Use of Unilever know how to cater to local  tastes• ...
LUX• upper middle and high income groups    additional benefits• one of the strongest brands               DOVE• premium p...
LIFEBUOY• lower income groups• more basic                 LAKME• Behavioral +age + gender• range of products• tough challe...
FAIR & LOVELY• Age, gender, behavioral• middle income group• tough competition              PONDS• income group• across th...
PEPSODENT• middle income group• weaker category               SURF EXCEL• very popular• high pricing, yet preferred
HUL’s Quarter analysis across 2000-2007
2005-04Observation through graphs:• In 2005 , we could see a significant increase in the %growth  of FMCGs in all quarters...
2006-05• In 2006, we could see that Q3 and Q2 %growth of  FMCGs decreased , Q1 is almost flat and Q4  increased significan...
2007-06• In 2007, %growth of FMCGs in Q2&Q4 decreased  significantly, in Q3 increased significantly , in Q1  increased. Th...
2002-2003In 2002 , there is a significant decline in the %growth of FMCGs across   all quarters. This was due to:• Decline...
2004-03• In 2004, %growth of FMCGs in quarters expect for  jan-march quarter ,got decreased significantly. This is  due to...
Summary on Quarter analysis:• From the above results we could say that even HUL’s  market share is high its facing a lot o...
What can HUL do to fight back?• According to a CavinKare executive, 75 per cent of  Chik sales come from the rural market,...
What can HUL do to fight back?• Cavinkare: The pricing of the new product is also done  with an intention of taking on mar...
SHAMPOO14                        HUL1210                CAVIN 8     OTHERS     KARE 6 4 2 0       1         2       3
POWDERS7                                     HUL6    CAVIN KARE            DONT USE5                OTHERS43210        1  ...
DEODORANTS6                             HUL   OTHERS54                  DONT USE3    CAVIN KARE210        1            2  ...
FACIALS7                             HUL6                  DONT USE5   CAVIN KARE43210         1            2       3
WOULD YOU BUY A PRODUCT ON     BASIS OF PRICE AND QUALITY?6                           BOTH5               QUALITY4     PRI...
DEODORANT        160                     Rexona                         Axe        140        120   Aviance        100Pric...
FAIRNESS CREAMS        100         95                 Fair & Lovely                Fair ever         90         85        ...
TOOTH PASTE        35             Pepsodant   Close up   Pepsodant 2 in        30   Whitening                   1        2...
TALCUM POWDERS        39        38                         Ponds Sandal        37   Ponds Magic                           ...
SOAPS        60                                                          Dove        50        40                         ...
WASHING POWDERS        140                             Surf excel        120        100            Rin        80Price     ...
SHAMPOOS- LOW END PRICE         45         40         35         30         25 Price         20         15         10     ...
MEDIUM PRICE        70                        Dove        60    Sunsilk        50        40Price        30        20      ...
HIGH END PRICE        76                                     Dove        75        74        73                 Sunsilk   ...
Advertising
LUX•   Celebrity endorsement•   Grandiosity•   Benefits of the product•   Rare promotions           (Poor choice during oc...
DOVE• emotionally appealing• across all segments• dove family                AXE• exaggerated end effect• cross-promotions
LIFEBUOY• kids from residential complexes• germ protection and hygiene• targeted market segment ??                LAKME• f...
FAIR & LOVELY• Middle income group• new horizons in life• POP and sampling                 pepsodent• repent if you don’t ...
IMCCavinKare Vs HUL•Interviews given by top level managers to media•Innovations and entry•Future plans•Transparency of the...
PR ACTIVITIES• Shakthi• Gren barrnes• CASHE (credit and saving for house hold  enterprises)• LSBC(Life bouy swasthya cheta...
Cavin kare• Ability award• Competitions• Open shows (Nyle and shine)
Supply Chain Management Solution for HUL Problem• nearly 1000 products, four warehouses, more than 40 agents, 7,500 whole...
Marketing pres
Marketing pres
Marketing pres
Marketing pres
Marketing pres
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  1. 1. HUL fighting the challenge in the growing FMCG market
  2. 2. The market in figuresData in Euros 2003-04 2005-06 Increase Cosmetics 1.2billion 1.6 billion 33% Skincare 300million 410 million 37% Health Care 600 million 725 million 21% Fragrances 200 million 262 million 31% Deodorants 141 million 227 million 61% Oral Care 490 million 638 million 30% Soaps 905 million 909 million 0.1%Male Grooming 165 million 253 million 53% Total 2.7 billion 3.4 billion 25%
  3. 3. Growth in FMGC•The rising GDP and Per Capita Income in India is promising growth in theFMCG market. In this scenario, HUL is predicting a lot of potential to growconsumption and penetration.
  4. 4. HUL - India’s largest FMCG company
  5. 5. Leadership across Diverse FMCG Categories
  6. 6. Opportunities & Challenges• A buoyant & growing economy• Increasing per capita income drives FMCG growth• A changing profile of a differentiated set of consumers• Opportunity to grow consumption and penetration• Large scale potential to grow Foods
  7. 7. India - 2013
  8. 8. Opportunity to grow consumption
  9. 9. Opportunity to grow consumption
  10. 10. Opportunity to grow penetration
  11. 11. Segmentation Targeting &Positioning
  12. 12. Personal wash
  13. 13. Laundry
  14. 14. Hair care
  15. 15. Skin care
  16. 16. Tooth paste
  17. 17. Tea
  18. 18. Coffee
  19. 19. Packaged food• Highly under penetrated• Implement the foods strategy• Use of Unilever know how to cater to local tastes• Enter new exciting markets within the processed foods space
  20. 20. LUX• upper middle and high income groups additional benefits• one of the strongest brands DOVE• premium pricing• psychographic
  21. 21. LIFEBUOY• lower income groups• more basic LAKME• Behavioral +age + gender• range of products• tough challenges
  22. 22. FAIR & LOVELY• Age, gender, behavioral• middle income group• tough competition PONDS• income group• across the different tiers• strong competition
  23. 23. PEPSODENT• middle income group• weaker category SURF EXCEL• very popular• high pricing, yet preferred
  24. 24. HUL’s Quarter analysis across 2000-2007
  25. 25. 2005-04Observation through graphs:• In 2005 , we could see a significant increase in the %growth of FMCGs in all quarters. This was due to:• Significantly higher brand investments.• Sunsilk “9 t0 9” conditioner and new variant of clinic all clear black launched• Growth in all key HPC categories like shampoos ,laundry, personal wash, skin care, tooth paste. Total HPC growth of 12% led by Shampoo & Laundry• Rin Advance gains shares in a competitive context• Strong growth in closeUp and pepsodent and backed by all other brands like ponds
  26. 26. 2006-05• In 2006, we could see that Q3 and Q2 %growth of FMCGs decreased , Q1 is almost flat and Q4 increased significantly about 18.3%. But overall %growth of FMCGs in this year got decreasedThis was due to:• Adjusted for discontinued business (Nihar)• Strong performance by Lux portfolio and the recently relaunched Lifebuoy.• Ice creams grew strongly, led by the impulse category• Advertizing and promotion spend for the quarter 4 jan-Mar,was accelerated and recorded a 45% increase
  27. 27. 2007-06• In 2007, %growth of FMCGs in Q2&Q4 decreased significantly, in Q3 increased significantly , in Q1 increased. This was due to:• Launch of Scalp Oil Control boosts sales in Clinic All Clear;• Skin category got impacted due to the relaunch of Fair&lovely in July 2007.• Ice cream performed its 20%+ growth in march quarter.
  28. 28. 2002-2003In 2002 , there is a significant decline in the %growth of FMCGs across all quarters. This was due to:• Decline in %growth of personal products, ice creams,foods and beverages in march and December quarters.In 2003, % growth of FMCGs across all quarters had a siginificant increase .• Driving growth through appropriate price points positioning resulting Lifebuoy becomes the largest value share brand in June 2003• Higher investments in quality, Quality investment drives Rin Supreme• Growth in Rural market• Chik shampoo’s sales growth got declined
  29. 29. 2004-03• In 2004, %growth of FMCGs in quarters expect for jan-march quarter ,got decreased significantly. This is due to:• Food market sales declined 42%• Impact of lower primary sales• Rin Shakti declines
  30. 30. Summary on Quarter analysis:• From the above results we could say that even HUL’s market share is high its facing a lot of competition in FMCGs market.• For instance, HUL’s share in the skin care segment, its most profitable division which accounts for at least 45% of profits, has declined by more than 3 percentage points to 54% in the last two years.• Last year, the company’s rival Procter and Gamble (P&G) launched high-end skin care products under the Olay brand that have since emerged a significant threat to HUL’s offerings in the segment .• Another multinational brand, Garnier, owned by the L’Oreal Group, has increased its focus on India, too
  31. 31. What can HUL do to fight back?• According to a CavinKare executive, 75 per cent of Chik sales come from the rural market, while the industry sells only 52 per cent of its shampoo brands in the rural markets, so HUL can improve its market growth by reducing the prices of the products and focusing on rural market.• In the Indian shampoo market, where sachet (7ml) format accounts for 75 per cent of the total sales, Chik has been bringing in 90 per cent of its sales in this format. So to improve on shampoo market HUL should focus on sachet format
  32. 32. What can HUL do to fight back?• Cavinkare: The pricing of the new product is also done with an intention of taking on market leaders such as Clinic Plus. Chik Satin is priced at Rs 56 for a 200-ml bottle, while Clinic Plus is priced at Rs 63 and Sunsilk at around Rs 87 at the higher price point. So HUL can focus on the pricings of the new product should be taken with an intension to beat the competitors• While going through annual and quarter reports of HUL , I noticed that in most of the quarters HUL’s % of growth in salt and tooth paste sector got decreased frequently . so to increase the % growth of FMCG, HUL should focus on salt and tooth paste sector for better results .
  33. 33. SHAMPOO14 HUL1210 CAVIN 8 OTHERS KARE 6 4 2 0 1 2 3
  34. 34. POWDERS7 HUL6 CAVIN KARE DONT USE5 OTHERS43210 1 2 3 4
  35. 35. DEODORANTS6 HUL OTHERS54 DONT USE3 CAVIN KARE210 1 2 3 4
  36. 36. FACIALS7 HUL6 DONT USE5 CAVIN KARE43210 1 2 3
  37. 37. WOULD YOU BUY A PRODUCT ON BASIS OF PRICE AND QUALITY?6 BOTH5 QUALITY4 PRICE3210 1 2 3
  38. 38. DEODORANT 160 Rexona Axe 140 120 Aviance 100Price 80 60 40 20 0 1 2 3
  39. 39. FAIRNESS CREAMS 100 95 Fair & Lovely Fair ever 90 85 80Price 75 70 65 60 55 50 1
  40. 40. TOOTH PASTE 35 Pepsodant Close up Pepsodant 2 in 30 Whitening 1 25 20Price 15 10 5 0 1 2 3
  41. 41. TALCUM POWDERS 39 38 Ponds Sandal 37 Ponds Magic Spinz 36Price 35 34 33 32 31 30 1 2 3
  42. 42. SOAPS 60 Dove 50 40 PearsPrice 30 Liril Lifebuoy Hammam 20 Rexona 10 0 1 2 3 4 5 6
  43. 43. WASHING POWDERS 140 Surf excel 120 100 Rin 80Price Wheel 60 40 20 0 1 2 3
  44. 44. SHAMPOOS- LOW END PRICE 45 40 35 30 25 Price 20 15 10 5 0 1 2 3 Clinic plus Chik Meera
  45. 45. MEDIUM PRICE 70 Dove 60 Sunsilk 50 40Price 30 20 10 0 1 2
  46. 46. HIGH END PRICE 76 Dove 75 74 73 Sunsilk 72 Clinic PlusPrice 71 70 69 68 67 66 1 2 3
  47. 47. Advertising
  48. 48. LUX• Celebrity endorsement• Grandiosity• Benefits of the product• Rare promotions (Poor choice during occasions)
  49. 49. DOVE• emotionally appealing• across all segments• dove family AXE• exaggerated end effect• cross-promotions
  50. 50. LIFEBUOY• kids from residential complexes• germ protection and hygiene• targeted market segment ?? LAKME• flashy colourful adds• grandiosity and celebrities• features and benefits down the line
  51. 51. FAIR & LOVELY• Middle income group• new horizons in life• POP and sampling pepsodent• repent if you don’t buy• concentrates on USPs Surf excel• shoulders a lot of responsibility• features housewives
  52. 52. IMCCavinKare Vs HUL•Interviews given by top level managers to media•Innovations and entry•Future plans•Transparency of the company•Reaching the common man
  53. 53. PR ACTIVITIES• Shakthi• Gren barrnes• CASHE (credit and saving for house hold enterprises)• LSBC(Life bouy swasthya chetan)• Fair and lovely foundation.• Ashadaan• Yashodayam
  54. 54. Cavin kare• Ability award• Competitions• Open shows (Nyle and shine)
  55. 55. Supply Chain Management Solution for HUL Problem• nearly 1000 products, four warehouses, more than 40 agents, 7,500 wholesalers and a number of large institutional customers.• excess finished-goods inventory reaching distribution centers Supply Chain Management (SCM) solution ensures informed decisions in• procurement,• manufacturing,• replenishment and• distribution. Solution needs to provide visibility and prioritize the demand-fulfillment process based on individual profiles. Dynamic data such as daily production, distribution, sales and related constraints need to be considered. How to Implement ?? Adexa - industry-specific planner (software)
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