Hul vs p&g critical evaluation.
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Hul vs p&g critical evaluation. Hul vs p&g critical evaluation. Document Transcript

  • INTRODUCTION OF FMCG INDUSTRY FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarilydeals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normallyconsumed by the consumers at a regular interval. Some of the prime activities of FMCGindustry are selling, marketing, financing, purchasing, etc. The industry also engaged inoperations, supply chain, production and general management. INTRODUCTON OF HULHUL good, look good and get more out of life with and services that are good for them andgood for others.With over 35 brands spanning 20 distinct categories such as soap, detergent, shampoo,skincare,Toothpaste, deodorants, cosmetic, tea, coffee, packaged foods, ice cream and water purifiers,The Company is a part of the everyday life of million customers across India. Its portfolioincludes leading house hold brands such as Lux, Lifeboouy, Usrfexcel, Rin, Wheel, Fire&Lovely,Pond’s, Vaseline, Lakeme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bon, Bru,Knorr, Kissa, Kwality Wall’s and pureit.Works to create the better future every day and help people feelThe Company has over 16,000 employees and has an annual turnover of around RS. 19,401crores (financial year 2010.2011). HUL good, look good and get more out of life with andservices that are good for them and good for others. HISTORY OF HUL In the summer of 1888, visitors to the Kolkata noticed full of sunlight soap bar , embossedwith the words “Made in England by Lever Brother’’ With it, began of era of marketing brandedfast moving Consumers Goods(FMCG). CEO of HUL is Nitin Paranjpe 1
  • PRODUCTS OF HUL1. Personal use: Lux, Price Rs 10 to 18 Lifebouy, price Rs14to16 Liril, Price Rs 18 Hmam, Price Rs 20 BREEZE 2
  • Moti, Price RS 28 Dove, Price Rs 18 to 25 Pears and Price Rs18 Rexona.2. Laundry use: Surf excel,Sun light, 3
  • Rin,Wheel, and Ala bleech.3. Dishwasher: Vim.4.Disinfectants: Domex, cif.5.Foods: Kissan (jam, Ketchup, Squases),6.Annapurna (Aata and salt), Knorr soup,7.Modern Bread Ice Creams: Kwality Wall 4
  • 8.Tea: Brooke bond, Lipton, Taj mahal,9.Coffee: Brooke bond, Bru.10.Beauty Products: Fair & Lovely, lakeme, Pond’s, Vaseline and Aviance.11.Hair care: Sunsilk Naturals, Dove.12.Oral Care: Pepsodent and Close up 5
  • 12. Deo spray: Axe and Rexona.13. Water purifier: Pureist Star India Pvt Ltd has tied up with Hindustan Unilever Limited (HUL)to advertise only (HUL) brands across all 10 star channels. Leading the pack will be Lifebuoy ads.According to media Buyers, the deal is estimated to be Rs 52 crores. This is the biggest dealafter Vodafone took a similar step in 2007. When contracted, Kevin Vaz, executive V-P(advertising and sales), STAR India, refused to comment on the deal.The Star India channel includes Star plus, Star one, Star utsav, Star movies, Star worlds, channelV, Star gold, Star pravah and Star vijay.Speaking on this initiative, Vaz said, “At Star, we have always gone that extra mile to provideour customers with exclusive campaigns that create a high impact for their brands, The firsttime was done as a network roadblock was in 2007,when Hutch changed to Vodafone, We areconfident that this roadblock with HUL brands,Primarily Lifebuoy, will create as huge an impression in the mind of the customer as it did forVodafone,”HUL in 2008 spend close to Rs650 crore on TV and print advertisement.The company posts a net profit of Rs543.19 crore for the quarter ended June 30, 2009, ascompared to Rs 558.18 crore same quarters last year. Total income stood at Rs453.61 crore forthe quarter as compare to Rs 431.75 crore same quarters last year. The company in the quarterof 2009 increased its ad spend by 26%as part of its effort to drive up volumeCOMPETITORS 1. KRAFT 2. P&G 3. NESTLE 4. LO’REAL 5. DABUR 6
  • 6. ITC Capital structure (Rs crore) Class Of Authorized Issued Paid Up Paid Up Paid UpFrom Year To Year Share Capital Capital Shares Face Value Capital Equity2010 2011 Share 225.00 215.95 2159471968 1 215.95 Equity2009 2010 Share 225.00 218.17 2181686781 1 218.17 Equity2008 2009 Share 225.00 217.99 2179776077 1 217.98 Equity2007 2008 Share 225.00 217.75 2177463355 1 217.75 Equity2006 2007 Share 225.00 220.68 2206776097 1 220.68 Equity2005 2006 Share 2,250.00 2,206.78 2206776097 10 2,206.78 Equity2004 2005 Share 225.00 220.12 2201243793 1 220.12 Equity2003 2004 Share 225.00 220.12 2201243793 1 220.12 Equity2002 2003 Share 225.00 220.12 2201243793 1 220.12 Equity2001 2002 Share 225.00 220.12 2201243793 1 220.12 Equity2000 2001 Share 225.00 220.12 2201243793 1 220.12 Equity1999 2000 Share 225.00 220.06 2200595070 1 220.06 7
  • SWOT ANALYSIS OF HUL INTERNAL EXTERNAL ENVIRONMENT ENVIRONMENT STRENGTH OPPERTUNITIES WEAKNESS THREATSINTERNAL ENVRONMENT STERNGTH  Variety of products  Distribution Network  Brand image  Quality Management  Innovation and R&D strength  New division called HLL network.Weakness  Not able to compete with local competitor in the rural market  Not focus on upper class population  Pricing policy is not good  Lacked of Raw material cost high priced product. . 8
  • EXTERNAL ENIVRONMENTOpportunities  Huge Market  Increasing per capital income  Increasing consumption pattern  Potential for making more impact of brand image.Threat  Loosing Market Share due to new Entrants  ITC Ltd one of the biggest threats  Proctor & Gamble  Dabur  Dettol  Colgate, Nirma  Babool . 9
  • Procter and gamble (P&G). Introduction In 2001, P&G was in a period of declining growth. A Company where thesolution is always innovation, P&G knew it needed to accelerate its innovationdevelopment and increase its rate of innovation success. A leadership predicate, With the world continually getting smaller and moving faster, sustainingsolutions would be found in collaboration, not in solution. P&G Launchedconnect+develop, a systematic, company-wide open innovation program chargedwith bringing the outside in, and taking the inside out. History of Procter and Gamble (P&G). The CEO of P&G: Robert A Mcdonald. The Procter and Gamble Company (P&G) is a giant in the area of customergoods. The leading maker of household product in the United States, P&G hasoperation in nearly 80 countries, more than half of the company’s revenues andderived overseas. Among its products, which fall in to the main categories offabric care, home care, beauty care, baby care, family care, health care, snakesand beverages are 16 that generate more than $1 billion in annual revenues:Actonel (osteoporosis treatment); Always (feminine protection); Ariel, Downy,and tide (laundry care); bounty(paper towels); Charmin( bathroom tissue);crest(tooth paste);Folgers (coffee); Head and shoulders,pantene and wella (hair care); Lams (pet food); Oley (skin care); pampers (diapers); and Pringles (snakes). Committed to remaining the leader in its markets, P&G is one of the mostaggressive marketers and is the largest advertiser in the world. Many innovationsthat are now common practice in corporate America-including extensive market 10
  • research, the brand-management system, and employee profit-sharing programs-were first develop at Procter & Gamble. List of products of P&G. 1. Gellete 2. Wilkisonsword 3. 7’o’ clock 4. Tide washing powder 5. Oral-B tooth brush 6. Ariel washing powder 11
  • 7. Head and Shoulder Shampoo8. Pantine Shampoo9. Whisper10.Pampers baby napkins11.Rejoice Shampoo 12
  • Period Instrument Authorized Issued -PAIDU Period Instrument Authorized Capital Capital P- CapitalFrom To (Rs. cr) (Rs. cr) From To Equity Equity2010 2011 35 32.46 2010 2011 Share Share Equity Equity2009 2010 35 32.46 2009 2010 Share Share 13
  • Equity Equity2008 2009 35 32.46 2008 2009 Share Share Equity Equity2007 2008 35 32.46 2007 2008 Share Share Equity Equity2006 2007 35 32.46 2006 2007 Share Share Equity Equity2005 2006 35 32.46 2005 2006 Share Share Equity Equity2004 2005 35 32.46 2004 2005 Share Share Equity Equity2003 2004 35 32.46 2003 2004 Share Share Equity Equity2002 2003 25 21.64 2002 2003 Share Share Equity Equity2001 2002 25 21.64 2001 2002 Share Share Equity Equity2000 2001 25 21.64 2000 2001 Share Share Equity Equity1999 2000 25 21.64 1999 2000 Share ShareCapital Structure (Procter and Gamble Hygiene and Health Care)SWOT ANALYSIS OF Procter and Gamble 14
  • INTERNAL EXTERNAL ENVRONMENT ENVIRONMENT STRENGTH OPPORTUNITIES WEAKNESS THREATSINTERNAL ENVIRONMENT.STRENGTH  Strong financial position  . Large scale of operations  Strong branding  . Product innovation.  Developing markets infrastructureWeakness 1. Customer concentration 2. Lack of effective distribution in some countries 15
  • EXTERNAL ENVIRONMENT.OPPORTUNITIES  Expansion in developing markets.  Future growth plans  Growing India FMCG productsThreats  Regulatory Environment  Intense competition  Increase in prices of raw materials HUL vs. P&G Critical Evaluation. The recent war between HUL and P&G is over the advertisement featuring RINand TIDE Natural. HUL(through its latest advertisement launch in last week ofFeb.) openly challenges the superiority of its product RIN provide more brightnessin comparison to TIDE Natural, which is the new product the P&G launched acouple of months ago in the mass segment positioning it against RIN as well asWheel. The rivalry between FMCG majors Hindustan Unilever and Proctor & Gambleisnt a mystery. And for their new shampoo campaigns the writing is already onthe wall. While P&G is re-launching Pantene next week claiming to be the number onebrand, HUL has already taken a pre-emptive action by placing ads that say ‘Dove isthe No.1 shampoo.’ “Comparative advertising is always fun even in the case of the earlier colawars. However, I personally dont expect this campaign to work as this campaignis more to do with research and is self indulgent,” said Piyush Pandey, executivechairman of Ogilvy & Mather, South Asia. 16
  • The reason for the self indulgence is because the market worth Rs 2000 croreis now increasingly getting competitive. In the last one year, Pantenes market share has gone down by 60 basispoints, and HULs Dove has gained over 130 basis points during the same period.So, P&G is now trying to regain the lost ground and market leader HUL is not inthe mood to give away any of their market share. Thus comes out an aggressivemarketing campaign. “To support our innovations to drive new categories for the future and tomake sure we are competitive in the share of voice, I mentioned earlier that thecompetitive intensity has certainly gone up and now we are seeing it acrosscategories. Our strategy is that we don’t see it ground and we defend ourleadership,” said R Sridhar, CFO of HUL. The last two launches from P&G have seen very aggressive comparativeadvertising from HUL especially during the Tide-Rin face off which even went tothe court. And now with P&G planning to launch and re-launch many more products inthe next two years, many of them in categories where HUL is the market leader,we can expect both the companies to whip up some more lather. CONCLUSION  There is wide competition in between HUL and P&G is over the advertisement featuring RIN and TIDE  openly challenges the superiority of its product RIN provide more brightness in comparison to TIDE Natural, 17