BCG MATRIX OF HINDUSTAN UNILIVER LIMITED• Cash cows :are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.• Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the businesss market share. Though owning a break- even unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable companys return on assets ratio, used by many investors to judge how well a company is being managed. Dogs, it is thought, should be sold off.• Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines. Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.• Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business units market leadership may require extra cash, but this is worthwhile if thats what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom
Products of HUL:-Personal wash:- Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pearsand RexonaLaundry:- Surf Excel, Rin ,Wheel & Ala bleechDishwasher :- VimDisinfectants:- DomexFoods:- Kissan(Jam,Ketchup,Squashes), Annapurna(Aata and salt), KnorrSoups, Modern BreadIce-cream:- Kwality WallsBewerages:-Tea:- Brooke bond, Lipton Coffee:- Brooke bond bruBeauty Products:- Fair & Lovely, Lakme, Ponds, Vaseline and AvianceHair-Care:- Sunsilk naturals, Clinic , Dove and LifebouyOral-Care:- Pepsodent and Close-upDeo spray:- Axe and RexonaWater Purifier:- PureitAyurvedic Personal & health care:- Ayush
Detail of Hindustan uniliver limited in BCG matrixCASH COWS:-Need to more invest in certain products.----- penetration in the toothpaste market is quite low,around 50%. Industry experts say that thanks toawareness and affluence in rural areas, there is asurge in demand with consumers graduating fromdatum to toothpaste.
DOGS:-HULs share with brands like Sunsilk dipped to 50%(51.5%) and in value terms to 45.4% (46.5%) duringthe quarter.-----HULs share dipped from 25% to 23.1%. Itsvalue market share dipped to 28% during the quarterfrom 29.6% in April-June 2008, while Daburs shareincreased to 10% (9.3%) and Colgate-Palmolivesshare to 49.5% (47.7%).----- HUL’s market share in the detergents categoryalso fell by 2.5% to 35% in the quarter to Junecompared to the year-ago period.QUESTION MARKS:------ Fair and lovely has good market and can growat good rate.
----- Dabur share increased to 10 %.----- colgate and Palmolive share increased to 49.5%STARS:- ------ HUL still dominates the Rs5,500crore soap market in India----- 21 % market Growth.----- 53 % market share----- leading market player in fmcg. BY: Harmeet Sehgal Amit Kalwani