summer internship project report presentation on HUL

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summer internship project report:
COMPETITIVE ANALYSIS OF HUL

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summer internship project report presentation on HUL

  1. 1. COMPETITIVE ANALYSIS OF HINDUSTAN UNILEVER LTD. Submitted To, Prof. Devina Upadhyay Submitted By, Aruna G. Lambha (1276804320)
  2. 2. Table Of Contents  Introduction to Company  Industry at a Glance  Research Methodology  Data analysis and Interpretation  Findings  Recommendations  Conclusion
  3. 3. Introduction To Company  Hindustan Unilever Limited, Formerly Known as Hindustan Lever Ltd, is India’s largest FMCG Company  The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited  has More than 16,000 employees, including 1,300 managers and more than 200 highly qualified scientists and technologists  HUL's brands, spread across 20 distinct consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products  HUL touches the lives of two out of every three Indians everyday  Mission of the company-” To Add Vitality To Life”
  4. 4. Vision Of The Company
  5. 5. Power Brands of HUL
  6. 6. Industry At A Glance
  7. 7. Fast Moving Consumer Goods Industry  fast moving consumer goods are the essential items we purchase when we go shopping and use in our everyday lives  They're the household items you pick up when you're buying groceries or visit your local chemist or pharmacy  FMCG goods are referred to as 'fast moving', quite simply, because they're the quickest items to leave the Store shelves  The prices of the FMCG are relatively less and don’t require a lot of thought , time and financial investment to purchase  As prices of FMCG are relatively less, Profits earned through such sales are more volume based  FMCG Sector is one of the most important sectors for each and every Economy
  8. 8. Household Care Personal Care Food & Beverages •Fabric wash (laundry soaps and synthetic detergents) •Household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish) •Oral care • Hair care • Skin care • Personal wash (soaps) •Cosmetics • Toiletries •Perfumes • Deodorants •Feminine hygiene •Health beverages •Soft drinks •Staples/cereals •Bakery products (biscuits, bread, cakes) •Snack food •Chocolates •Ice cream •Tea & Coffee •Processed fruits & vegetables •Dairy products •Bottled water •Branded flour •Branded rice •Branded sugar •Juices Key Segments Of FMCG Sector
  9. 9. FMCG Industry In India  The Indian FMCG sector is the fourth largest sector of the economy with a total market size of US$ 13.1 billion  The FMCG market in India is expected to be worth USD 33.4 billion by the year 2015  The Indian FMCG Industry is characterized by low penetration levels, lower per capita consumption and intense competition between the organized and unorganized segments  The FMCG sector in India continues on a strong growth path (on an average of 11% a year) with both Urban and Rural India contributing to its growth  Growth driven by increasing consumption led by growing population, rising incomes, changing lifestyles and favorable demographics
  10. 10. Key FMCG Players In India According to AC Nielsen Report 2012 top 10 FMCG companies of India are: Sr. No. Company Name 1 HUL (Hindustan Unilever Limited) 2 ITC (Indian Tobacco Company) 3 Nestlé India 4 GCMMF (AMUL) 5 Dabur India 6 Asian Paints (India) 7 Cadbury India 8 Britannia Industries 9 Procter & Gamble Ltd. 10 Marico Industries
  11. 11. MARKET SHARE OF FMCG COMPANIES IN INDIA HUL 34% ITC 29% NESTLE 8% BRITANNIA 6% DABUR 4% OTHERS 19% Source: AC Nielsen Report 2012
  12. 12. Research Methodology Primary Objectives: 1) To find out the market position of HUL in various categories 2) To identify who are the competitors of HUL and to study category wise competition. 3) To perform SWOT analysis 4) To find out what strategies are adopted by the company to get competitive edge over its competitors. Research Objectives: Secondary Objectives: 1) To measure consumer preference for HUL’s products versus competition 2) To study how consumers perceive the quality of HUL’s products compared to its competitors 3) To find out which are the unique attributes of HUL’s products that are perceived by consumers as the most distinctive from its competitors
  13. 13. Research Plan Sampling Plan Sampling Unit Existing and expected customers of the company Sampling Size 100 Sampling Procedure Snowball Sampling Research Instrument Structured Questionnaire Target Area India Sources of Data Primary Data Online Survey, Informal talks & discussion with employees of UIEL, KASEZ Secondary Data Annual report, websites, journals, articles, company literature and company brochure Research Design Type of Research Descriptive Research Scope of Research Indian FMCG Market Beneficiary of the Study Company: HUL Method of Data Presentation Description, Tabular forms and Graphs
  14. 14. Data Analysis and Interpretation of Primary Objectives
  15. 15. Category wise Market Position of HUL Source: Company Presentation 2011
  16. 16. Category wise Competition Personal Wash: Market share of Soaps 46% 10% 9% 8% 15% 3% 9% HUL GCPL Reckitt Benckiser Wipro Nirma ITC Others HUL’s Brands Competing Brands • Lux • Rexona • Breeze • Lifebouy • Pears • Dove • Hamam • Santoor • Fair Glow • Cinthol • Godrej No.1 • Nirma • Dettol • Fiama Di Wills • Vivel • Margo
  17. 17. Category wise Competition (cntd.) HUL’s Brands Competing Brands  Close up  Pepsodent  Colgate  Anchor  Dabur Red  Babool Oral Care:
  18. 18. Category wise Competition (cntd.) Skin Care: HUL’s Brands Competing Brands • Fair & Lovely • Pond’s • Vaseline • Lakme • Fairever • Boroplus • Nivea • Garnier Light • Olay • Neutrogena Market share of Skin Care Creams 49% 8% 15% 7% 27% HUL Emami Nivea Cavinkare Others
  19. 19. Category wise Competition (cntd.) Hair Care: Market Share of Shampoos 44% 25% 31% HUL P&G Others HUL’s Brands Competing Brands Close up Pepsodent • Colgate • Anchor • Dabur Red • Babool • Cibaca
  20. 20. Category wise Competition (cntd.) HUL’s Brands Competing Brands  Surf Excel  Wheel  Rin  Ariel  Nirma  Ghadi  Tide Laundry: Market Share of Detergents 38% 18% 14% 30% HUL Nirma Ghadi P&G
  21. 21. Category wise Competition (cntd.) HUL’s Brands Competing Brands  Vim  Pril  Nip  Expert Dish wash: Market share of Dishwash Bar 54% 22% 1% 23% Vim Pril Nip Others
  22. 22. Category wise Competition (cntd.) Ketch up: HUL’s Brands Competing Brands  Kissan  Maggie  Heinz Market share of Ketch up 37% 29% 10% 24% Maggie Kissan Heinz Others
  23. 23. List of Competitors of HUL Competitors of HUL ITC Nirma GCPL Dabur Emami Marico Colgate-Palmolive Procter and Gamble Henkel Reckitt Benckiser L'Oréal Nestle
  24. 24. SWOT Analysis Strengths Weakness • Strong parentage, hence strong brand equity • Strong brand portfolio • Unmatched distribution network • Excellent research & development • Strong position in most of the categories of its presence • Has the best marketing talent in the industry • Deep roots in local culture & great understanding of consumer needs • Losing market share in most of the categories due to competitors’ strong brands • Mimic Brands • High Advertising Costs. Increase in Ad spending, which may affect the margins • Declining Export levels Opportunities Threats •Large domestic market •Large untapped market available., especially the rural areas •Changing Lifestyles & Rising income levels •Export potential- expansion of horizons towards more and more countries •Opportunity in food sector •Increasing costs of raw material •Losing market share in most of the categories of its presence •Intense and increasing competition from local as well as MNC players •Competition from unbranded products •Competition from its own brands •Tax & Regulatory Structure SWOT AnalysisSWOT Analysis
  25. 25. Competitive Strategies of HUL Expansion StrategiesExpansion StrategiesExpansion Strategies Distribution Strategies Innovation Strategies Promotional Strategies Pricing Strategies Premiumiztion Strategies Digital Strategies Sustainable Growth Strategies
  26. 26. Data Analysis and Interpretation of Secondary Objectives
  27. 27. To measure consumer preference for HUL’s products versus competition Which of the following companies' FMCG products do you prefer to use?  HUL (Hindustan Unilever Limited)  ITC (Indian Tobacco Company)  P & G (Procter & Gamble)  Nestlé  Dabur 66 6 10 8 10 0 10 20 30 40 50 60 70 HUL ITC P & G Nestlé Dabur % HUL ITC P & G Nestlé Dabur
  28. 28. To study how consumers perceive the quality of HUL’s products compared to its competitors compared to our competitors, what do you feel about the quality of our products?  Better  Worse  About the same 66 34 0 0 10 20 30 40 50 60 70 Better Worse About the same % Better Worse About the same
  29. 29. To find out which are the unique attributes of HUL’s products that are perceived by consumers as the most distinctive from its competitors What are the differentiating attributes of our products when compared to our competitors?  Affordable  Dependable  Innovative  Popular  Modern  Stylish 50 28 20 80 24 14 0 10 20 30 40 50 60 70 80 90 AffordableDependable Innovative Popular Modern Stylish % Affordable Dependable Innovative Popular Modern Stylish
  30. 30. Findings  Market leader in Home and Personal Care  Weak presence in Food segment  Stiff Competition from local and global players  ITC-the greatest threat to HUL’s business  Premium Game  Cannibalizing  Most Preferred by Customers  Better Perceived Quality  Most Popular among customers
  31. 31. Recommendations  Need to focus on Food Segment  Continue investing behind Innovations and Promotion  Need to launch Brand Extensions for lower and middle segments  Investment in new businesses Clearly, To be successful, HUL will need to continuously maintain its competitive advantage. After all, the competitors are not going to sit back and allow it to steal their market share. It can maintain its competitive advantage by predicting future trends in FMCG industry, constantly researching and monitoring its competitors, and adapting to the customer’s wants and needs.
  32. 32. Conclusion Company is having good position in the market, despite facing intense competition from local and global FMCG players. It is enjoying market leadership in various consumer categories of its presence. HUL's up-and-running business model is a treat for investors seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better in future. HUL’s growth story is evolving.

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