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<ul><li>PRESENTED BY :- </li></ul><ul><li>Avick Biswas </li></ul><ul><li>I.S.B&M, BANGALORE </li></ul>MANAGERIAL ECONOMICS
MISSION STATEMENT <ul><li>Unilever's mission is to add Vitality to life. </li></ul>
LOGO <ul><li>This is the logo of </li></ul><ul><li>“ UNILEVER” </li></ul>
INTRODUCTION TO HUL <ul><li>Lever brothers is founded by  WILLIAM HESKETH LEVER  in 1890 </li></ul><ul><li>Key player in f...
 
 
 
PRODUCT OF FOCUS <ul><li>SURF EXCEL </li></ul><ul><li>It is the oldest detergent </li></ul><ul><li>To be present in INDIA ...
BRAND EVALUTION <ul><li>HISTORY :- </li></ul><ul><li>Launched in  1959  & first in  Indian </li></ul><ul><li>detergent pow...
PRODUCT  <ul><li>SURF EXCEL </li></ul><ul><li>Advance </li></ul><ul><li>Tropical  </li></ul><ul><li>Small & mighty  </li><...
RANGE & PRICEOF PRODUCT <ul><li>2KG   1KG   500G   115G   50G  25G </li></ul><ul><li>Rs405  Rs210  Rs115  Rs20  RS10  Rs5 ...
A comparison of cost price with sale price of Products in product line <ul><li>Quantity   Cost Price in Rupees   Sale Pric...
PROFIT RATIO
DEMAND  ANALYSIS <ul><li>Factors affecting demand : </li></ul><ul><li>Price of the product, </li></ul><ul><li>Price of sub...
CAUSES OF CHANGES IN DEMAND   <ul><li>Increase in demand     decrease in demand </li></ul><ul><li>Consumers income rises  ...
SUPPLY FOR THE PRODUCT <ul><li>Supply channel :  Distributers. </li></ul><ul><li>wholesalers. </li></ul><ul><li>Retailers....
Distribution channel
PRICING STRATEGY <ul><li>Primary  : </li></ul><ul><li>Cost-plus pricing  : Mark-up to the cost of the product </li></ul><u...
CROSS ELASTICITY OF DEMAND : <ul><li>Cross Elasticity of the demand is defined as the ratio of the percentage  change in t...
SWOT FOR SURF EXCEL <ul><li>STRENGTH  </li></ul><ul><li>India’s largest selling detergent company. </li></ul><ul><li>Brand...
WEAKNESSES <ul><li>Labour and input cost. </li></ul><ul><li>Finance. </li></ul><ul><li>Managing scale. </li></ul><ul><li>R...
OPPORTUNITIES <ul><li>Indian market for FMCG is growing @ 20% </li></ul><ul><li>Niche target market. </li></ul><ul><li>Mar...
 
THREAT <ul><li>Cheaper product eat into HUL market share. </li></ul><ul><li>Competitor trade strategy. </li></ul><ul><li>U...
DEMAND FORCAST  <ul><li>IN SHORT RUN : </li></ul><ul><li>Increase the promotion and marketing of surf excel . </li></ul><u...
IN LONG RUN <ul><li>Introduce existing products into a new market, build on a strength. </li></ul><ul><li>Identify key sus...
MARKET STRUCTURE <ul><li>Type of market :  OLIGOPOLY </li></ul><ul><li>Oligopoly  =  An oligopoly is a market form in whic...
<ul><li>RESTRICTED MARKET. </li></ul><ul><li>AVAILABILITY OF VARITIES. </li></ul><ul><li>SELLING COST. </li></ul><ul><li>S...
Break Even Analysis of Surf Total Sales Total Variable Cost Total Fixed Cost
Break Even Analysis  Break Even Point =  Total Fixed Cost S.P per unit- V.C per unit
=  1,205,298 14,474,255 18,119,110 1-   Break even(2005)  =  Fixed cost Variable cost Sales 1- =  RS 5,991,714  Break Even...
Break-Even Analysis FC VC TC 2004 2003 2005 Sales Revenue
Break-Even Analysis Costs Sales FC VC TC 2004 Loss
<ul><li>T H A N K </li></ul><ul><li>U ! </li></ul>
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20684612 surf-excel

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20684612 surf-excel

  1. 1. <ul><li>PRESENTED BY :- </li></ul><ul><li>Avick Biswas </li></ul><ul><li>I.S.B&M, BANGALORE </li></ul>MANAGERIAL ECONOMICS
  2. 2. MISSION STATEMENT <ul><li>Unilever's mission is to add Vitality to life. </li></ul>
  3. 3. LOGO <ul><li>This is the logo of </li></ul><ul><li>“ UNILEVER” </li></ul>
  4. 4. INTRODUCTION TO HUL <ul><li>Lever brothers is founded by WILLIAM HESKETH LEVER in 1890 </li></ul><ul><li>Key player in food & household product industry </li></ul><ul><li>Historically grew through acquisitions </li></ul><ul><li>LEVER BROTHERS, THE OLD NAME WAS CHANGED INTO UNILEVER AFTER THE MERGER OF LEVER BROTHERS & MARGARINE UNIE IN 1930 </li></ul><ul><li>UNILEVER IS A MULTI NATIONAL COMPANY </li></ul><ul><li>IT IS ONE OF THE LARGEST CONSUMER GOODS COMPANIES IN THE WORLD </li></ul><ul><li>ITS BRANDS ARE ON SALE IN 151 COUNTRIES </li></ul>
  5. 8. PRODUCT OF FOCUS <ul><li>SURF EXCEL </li></ul><ul><li>It is the oldest detergent </li></ul><ul><li>To be present in INDIA </li></ul><ul><li>Since 1960. </li></ul><ul><li>It believes that children must be free to experience their LIFE for themselves… </li></ul>
  6. 9. BRAND EVALUTION <ul><li>HISTORY :- </li></ul><ul><li>Launched in 1959 & first in Indian </li></ul><ul><li>detergent powder market. </li></ul><ul><li>It was the first Fast Moving Consumer </li></ul><ul><li>Goods (FMCG) for Detergent. </li></ul><ul><li>Brand to set up a one-stop </li></ul><ul><li>shop - called Care line - for people seeking solutions to their varied laundry problems. </li></ul><ul><li>Surf was the first brand of detergent that was advertised on TV. It is advertise on more than 300 channels across the globe . </li></ul><ul><li>Introduced the concept of bucket wash to housewives who were used to washing clothes with laundry soap bars. </li></ul>
  7. 10. PRODUCT <ul><li>SURF EXCEL </li></ul><ul><li>Advance </li></ul><ul><li>Tropical </li></ul><ul><li>Small & mighty </li></ul><ul><li>Automatic </li></ul><ul><li>Blue detergent </li></ul><ul><li>Quick wash </li></ul>
  8. 11. RANGE & PRICEOF PRODUCT <ul><li>2KG 1KG 500G 115G 50G 25G </li></ul><ul><li>Rs405 Rs210 Rs115 Rs20 RS10 Rs5 </li></ul>
  9. 12. A comparison of cost price with sale price of Products in product line <ul><li>Quantity Cost Price in Rupees Sale Price in Rupees </li></ul><ul><li>25 grams 4.7 5 </li></ul><ul><li>50 grams 9.5 10 </li></ul><ul><li>115 grams 19 20 </li></ul><ul><li>500 grams 110.50 115 </li></ul><ul><li>1000 grams 199.50 210 </li></ul><ul><li>2000 grams 385 405 </li></ul>
  10. 13. PROFIT RATIO
  11. 14. DEMAND ANALYSIS <ul><li>Factors affecting demand : </li></ul><ul><li>Price of the product, </li></ul><ul><li>Price of substitutes and complements, </li></ul><ul><li>Income of the household, </li></ul><ul><li>Taste and preference of the household, and </li></ul><ul><li>The amount annually spent on advertisement of the product. </li></ul><ul><li>Law of demand : Law of demand states that the amount demanded of a commodity and its prices are inversely related, other remaining constant. </li></ul>
  12. 15. CAUSES OF CHANGES IN DEMAND <ul><li>Increase in demand decrease in demand </li></ul><ul><li>Consumers income rises Consumers income fall. </li></ul><ul><li>Prices of substitute good rises Prices of substitute good fall </li></ul><ul><li>Prices of complements fall Prices of complements rise </li></ul><ul><li>Taste and preference change Taste and preference change </li></ul><ul><li>in favor of the commodity in against of the commodity </li></ul>
  13. 16. SUPPLY FOR THE PRODUCT <ul><li>Supply channel : Distributers. </li></ul><ul><li>wholesalers. </li></ul><ul><li>Retailers. </li></ul><ul><li>Cheaper price range of Rs.450 to Rs.2 </li></ul><ul><li>Very good geographical distribution across whole India. </li></ul><ul><li>Both Urban and Rural market segment covered. </li></ul>
  14. 17. Distribution channel
  15. 18. PRICING STRATEGY <ul><li>Primary : </li></ul><ul><li>Cost-plus pricing : Mark-up to the cost of the product </li></ul><ul><li>Competitive Pricing : Price dependent upon price of the competitors. </li></ul><ul><li>Secondary : </li></ul><ul><li>1. Customer-Segment Pricing. </li></ul><ul><li>DISTRIBUTION PRICING STRATEGY : </li></ul>FOR EXAMPLE : List price Rs. 100 Add: Distributor price (5%) Rs. 105 Add: Trade price (5%) Rs. 110.25 Final Retail price (10%) Rs. 121
  16. 19. CROSS ELASTICITY OF DEMAND : <ul><li>Cross Elasticity of the demand is defined as the ratio of the percentage change in the demand for one good to the percentage change in the price of some other goods. </li></ul><ul><li>Substitute goods: Tide, Ariel, Rin, ghadi etc. </li></ul><ul><li>Cross Elasticity will be positive in this case </li></ul><ul><li>Complement goods: detergent cake, liquid soap . </li></ul><ul><li> Cross Elasticity will be Always negative. </li></ul>
  17. 20. SWOT FOR SURF EXCEL <ul><li>STRENGTH </li></ul><ul><li>India’s largest selling detergent company. </li></ul><ul><li>Brand innovation and renovation. </li></ul><ul><li>Reach of the product. </li></ul><ul><li>Competitive advantage. </li></ul><ul><li>Supply chain & distribution. </li></ul>
  18. 21. WEAKNESSES <ul><li>Labour and input cost. </li></ul><ul><li>Finance. </li></ul><ul><li>Managing scale. </li></ul><ul><li>Raw material. </li></ul>
  19. 22. OPPORTUNITIES <ul><li>Indian market for FMCG is growing @ 20% </li></ul><ul><li>Niche target market. </li></ul><ul><li>Market penetration </li></ul><ul><li>Geographical export </li></ul>
  20. 24. THREAT <ul><li>Cheaper product eat into HUL market share. </li></ul><ul><li>Competitor trade strategy. </li></ul><ul><li>Urban consumer are shopping less. </li></ul><ul><li>Product from it’s own stable. </li></ul>
  21. 25. DEMAND FORCAST <ul><li>IN SHORT RUN : </li></ul><ul><li>Increase the promotion and marketing of surf excel . </li></ul><ul><li>Reduce the price of quick wash surf excel to wither the competition from P&G </li></ul><ul><li>( TIDE ) </li></ul><ul><li>Investment of rupees 150 core in distribution network .(Specially on Wednesday and Thursday ) </li></ul><ul><li>Work on R & D to find tune Cost reduction to make the pricing more competitive. </li></ul>
  22. 26. IN LONG RUN <ul><li>Introduce existing products into a new market, build on a strength. </li></ul><ul><li>Identify key sustainability issue for detergent market in India , as well as bench marking current sustainability. </li></ul><ul><li>Increase the production to 10 -12 tones / hour. </li></ul><ul><li>Maximize the share in 5000 Crore in detergent market. </li></ul><ul><li>Wider geographic coverage than rivals. </li></ul><ul><li>Recognition as a leader in technology and/or product innovation </li></ul>
  23. 27. MARKET STRUCTURE <ul><li>Type of market : OLIGOPOLY </li></ul><ul><li>Oligopoly = An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists) </li></ul><ul><li>Because there are few sellers, each oligopoliest is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms. </li></ul><ul><li>REASONS – FEW PLAYERS LIKE : </li></ul><ul><li>HUL ( blue , matic) </li></ul><ul><li>Nirma </li></ul><ul><li>P&G ( Tide,Aerial) </li></ul><ul><li>Henkel India (Mir, persil, porwall, vernel,purex) </li></ul><ul><li>Reckitt Benckiser ( Varnish) </li></ul>
  24. 28. <ul><li>RESTRICTED MARKET. </li></ul><ul><li>AVAILABILITY OF VARITIES. </li></ul><ul><li>SELLING COST. </li></ul><ul><li>SIMILAR PRODUCTS. </li></ul><ul><li>STABLE MARKET. </li></ul><ul><li>PRICING. </li></ul>
  25. 29. Break Even Analysis of Surf Total Sales Total Variable Cost Total Fixed Cost
  26. 30. Break Even Analysis Break Even Point = Total Fixed Cost S.P per unit- V.C per unit
  27. 31. = 1,205,298 14,474,255 18,119,110 1-   Break even(2005) = Fixed cost Variable cost Sales 1- = RS 5,991,714 Break Even(2004) = Rs 7,521,253 Break Even (2003) = Rs 6,808,887
  28. 32. Break-Even Analysis FC VC TC 2004 2003 2005 Sales Revenue
  29. 33. Break-Even Analysis Costs Sales FC VC TC 2004 Loss
  30. 34. <ul><li>T H A N K </li></ul><ul><li>U ! </li></ul>

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