Marketing Pres


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Marketing Pres

  1. 1. HUL fighting the challenge in the growing FMCG market<br />
  2. 2. The market in figures<br />
  3. 3. Growth in FMGC<br /><ul><li>The rising GDP and Per Capita Income in India is promising growth in the FMCG market. In this scenario, HUL is predicting a lot of potential to grow consumption and penetration.</li></li></ul><li>HUL - India’s largest FMCG company<br />
  4. 4. Leadership across Diverse FMCG Categories<br />
  5. 5. Opportunities & Challenges<br />A buoyant & growing economy<br />Increasing per capita income drives FMCG growth<br />A changing profile of a differentiated set of consumers<br />Opportunity to grow consumption and penetration<br />Large scale potential to grow Foods<br />
  6. 6. India - 2013<br />
  7. 7. Opportunity to grow consumption<br />
  8. 8. Opportunity to grow consumption<br />
  9. 9. Opportunity to grow penetration<br />
  10. 10. Segmentation Targeting &Positioning<br />
  11. 11. Personal wash<br />
  12. 12. Laundry<br />
  13. 13. Hair care<br />
  14. 14. Skin care<br />
  15. 15. Tooth paste<br />
  16. 16. Tea<br />
  17. 17. Coffee<br />
  18. 18. Packaged food<br /> Highly under penetrated<br />Implement the foods strategy<br /> Use of Unilever know how to cater to local tastes<br />Enter new exciting markets within the processed foods space<br />
  19. 19. LUX<br />upper middle and high income groups<br />additional benefits<br /> one of the strongest brands<br /> DOVE<br />premium pricing<br />psychographic<br />
  20. 20. LIFEBUOY<br />lower income groups<br />more basic<br /> LAKME<br /> Behavioral +age + gender<br />range of products <br />tough challenges<br />
  21. 21. FAIR & LOVELY<br />Age, gender, behavioral<br />middle income group<br />tough competition <br /> PONDS<br /> income group<br />across the different tiers<br />strong competition<br />
  22. 22. PEPSODENT<br />middle income group <br />weaker category<br /> SURF EXCEL<br />very popular<br />high pricing, yet preferred <br />
  23. 23. HUL’s Quarter analysis across 2000-2007<br />
  24. 24.
  25. 25.
  26. 26.
  27. 27.
  28. 28. 2005-04<br />Observation through graphs:<br />In 2005 , we could see a significant increase in the %growth of FMCGs in all quarters. This was due to:<br />Significantly higher brand investments.<br />Sunsilk “9 t0 9” conditioner and new variant of clinic all clear black launched<br />Growth in all key HPC categories like shampoos ,laundry, personal wash, skin care, tooth paste. Total HPC growth of 12% led by Shampoo & Laundry<br />Rin Advance gains shares in a competitive context<br />Strong growth in closeUp and pepsodent and backed by all other brands like ponds<br />
  29. 29. 2006-05<br /><ul><li>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 decreased </li></ul>This was due to:<br /><ul><li>Adjusted for discontinued business (Nihar)
  30. 30. Strong performance by Lux portfolio and the recently relaunched Lifebuoy.
  31. 31. Ice creams grew strongly, led by the impulse category
  32. 32. Advertizing and promotion spend for the quarter 4 jan-Mar,was accelerated and recorded a 45% increase</li></li></ul><li>2007-06<br />In 2007, %growth of FMCGs in Q2&Q4 decreased significantly, in Q3 increased significantly , in Q1 increased. This was due to:<br />Launch of Scalp Oil Control boosts sales in Clinic All Clear;<br />Skin category got impacted due to the relaunch of Fair&lovely in July 2007.<br />Ice cream performed its 20%+ growth in march quarter.<br />
  33. 33. 2002-2003<br />In 2002 , there is a significant decline in the %growth of FMCGs across all quarters. This was due to:<br />Decline in %growth of personal products, ice creams,foods and beverages in march and December quarters.<br />In 2003, % growth of FMCGs across all quarters had a siginificant increase .<br />Driving growth through appropriate price points positioning resulting Lifebuoy becomes the largest value share brand in June 2003<br />Higher investments in quality, Quality investment drives Rin Supreme<br />Growth in Rural market <br />Chik shampoo’s sales growth got declined<br />
  34. 34. 2004-03<br />In 2004, %growth of FMCGs in quarters expect for jan-march quarter ,got decreased significantly. This is due to:<br />Food market sales declined 42%<br />Impact of lower primary sales<br />Rin Shakti declines<br />
  35. 35. Summary on Quarter analysis:<br /><ul><li>From the above results we could say that even HUL’s market share is high its facing a lot of competition in FMCGs market.
  36. 36. 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.
  37. 37. 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 .
  38. 38. Another multinational brand, Garnier, owned by the L’Oreal Group, has increased its focus on India, too </li></li></ul><li>What can HUL do to fight back?<br />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.<br />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<br />
  39. 39. What can HUL do to fight back?<br /><ul><li>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
  40. 40. 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 .</li></li></ul><li>SHAMPOO<br />
  41. 41. POWDERS<br />
  42. 42. DEODORANTS<br />
  43. 43. FACIALS<br />
  45. 45. DEODORANT<br />
  46. 46. FAIRNESS CREAMS<br />
  47. 47. TOOTH PASTE<br />
  48. 48. TALCUM POWDERS<br />
  49. 49. SOAPS<br />
  50. 50. WASHING POWDERS<br />
  51. 51. SHAMPOOS- LOW END PRICE<br />
  52. 52. MEDIUM PRICE<br />
  53. 53. HIGH END PRICE<br />
  54. 54. Advertising<br />
  55. 55. LUX<br />Celebrity endorsement<br />Grandiosity<br />Benefits of the product<br />Rare promotions<br /> (Poor choice during occasions)<br />
  56. 56. DOVE<br />emotionally appealing<br />across all segments <br />dove family<br /> AXE<br />exaggerated end effect<br />cross-promotions<br />
  57. 57. LIFEBUOY<br />kids from residential complexes<br />germ protection and hygiene<br />targeted market segment ??<br /> LAKME<br />flashy colourful adds<br />grandiosity and celebrities<br />features and benefits down the line<br />
  58. 58. FAIR & LOVELY<br />Middle income group<br />new horizons in life<br />POP and sampling<br />pepsodent<br />repent if you don’t buy<br />concentrates on USPs<br /> Surf excel<br />shoulders a lot of responsibility<br />features housewives<br />
  59. 59. IMC <br />CavinKare Vs HUL<br /><ul><li>Interviews given by top level managers to media
  60. 60. Innovations and entry
  61. 61. Future plans
  62. 62. Transparency of the company
  63. 63. Reaching the common man</li></li></ul><li>PR ACTIVITIES <br />Shakthi<br />Grenbarrnes<br />CASHE (credit and saving for house hold enterprises)<br /> LSBC(Life bouyswasthyachetan)<br />Fair and lovely foundation.<br />Ashadaan<br />Yashodayam<br />
  64. 64. Cavin kare<br />Ability award<br />Competitions <br />Open shows (Nyle and shine)<br />
  65. 65. Supply Chain Management Solution for HUL<br /><ul><li>Problem</li></ul> nearly 1000 products, four warehouses, more than 40 agents, 7,500 wholesalers and a number of large institutional customers.<br />excess finished-goods inventory reaching distribution centers  <br /><ul><li>Supply Chain Management (SCM) solution ensures informed decisions in </li></ul>procurement,<br />manufacturing,<br />replenishment and <br />distribution.<br /><ul><li>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.
  66. 66. How to Implement ??</li></ul>Adexa - industry-specific planner (software) <br />