3. SECTOR ANALYSIS
• FMCG is the fourth largest sector in the Indian economy.
• Growing awareness, easier access, and changing lifestyles have been the key growth drivers
for the sector
• Over2007-15, the sector posted a CAGR of 13% in revenues.
• Contributes to 2.7% of GDP of our country.
• The FMCG sector in India generated revenues worth USD47.3billion in 2015
• Over 2007-16F, the sector is expected to post CAGR of 11.9% in revenues.
• Digital communication, e-commerce and premium products are foreseen as key drivers for
growth.
• By 2020, around 150 million consumers are expected to be digitally influenced in FMCG
• These digital consumers alone would spend ~ 40 USD Bn on FMCG categories,
elucidated a report by Boston Consulting Group.
3
4. FMCG REVENUE &
BREAKUP POINT
4
HAIR CARE
23%
FOODS
18%
HEALTH
SUPPLEMENTS
16%
ORAL CARE
16%
OTC AND
ETHICALS
10%
HOME CARE
7%
DIGESTIVE
6%
SKIN CARE
4%
FMCG REVENUE BREAK UP 2016
2007 2008 2009 2010 2011 2012 2013 2015 2016E 2020E
REVENUE 17.8 21.3 24.2 30.2 34.8 36.8 44.9 47.3 49 103.7
17.8
21.3
24.2
30.2
34.8
36.8
44.9
47.3 49
103.7
0
20
40
60
80
100
120
REVENUEINUSD
FMCG REVENUE OVER THE YEARS
6. 6
Rising incomes
driving
purchases
Desire to experiment
with Brands
Evolving consumer
lifestyles
New product
Launches
Growing rural market
Growth of
modern trade
Increasing Discreationary
income
Availaility of online
Channel to shop
Increasing consumer demand
Greater awareness of
produts and brands
7. COMPANY ANALYSIS
• Hindustan Unilever Ltd (HUL) is India's largest fast moving consumer goods (FMCG)
company
• It has a history of over 80 years in India.
• It operates as a subsidiary of the global FMCG giant Unilever Plc.
• With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos,
skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and
water purifiers.
• The Company has over 16,000 employees and has an annual turnover of Rs 30,170
crores (US$ 4.93 billion) (financial year 2014 - 2015).
• FMCG giant Hindustan Unliver's top line is expected to grow by just 10% as volumes
remain subdued
7
8. MARKET SHARE OF HUL &
COMPETITIORS
0
500
1000
1500
2000
2500
3000
3500
4000
Market share (in crores)
Market share (in crores)
8
40%
34%
6%
3%
3%
2%
12%
MARKET SHARE OF TOP FMCG
COMPANIES
ITC HUL NESTLE RECKITT BENKISER P&G EMAMI OTHERS
9. SWOT ANALYSIS
9
Strengths
HUL is a part of the Unilever group, hence strong brand equity.
15000 +employees
Reach 6.4 million retail outlets which include direct reach to over 1.5 million retail outlets
Two R&D centers in India in Mumbai and Bangalore
Products with presence in over 20 consumer categories with over 700 million Indian
consumers using its products
As a part of CSR, HUL has initiatives like project Shakti, plastic recycling, women
empowerment etc.
Weaknesses
Market share is limited due to presence of other strong FMCG brands
HUL products has stiff competition from big domestic players and international brands
Opportunities
Tap rural markets and increase penetration in urban areas
Mergers and acquisitions to strengthen the brand
Increasing purchasing power of people thereby increasing demand
Threats
Intense and increasing competition amongst other FMCG companies
FDI in retail thereby allowing international brands
Competition from unbranded and local products
11. NEWS OF HUL
• HUL CEO & MD, Sanjiv Mehta receives the award on behalf of the company from
Finance Minister Arun Jaitley.
• During the quarter, turnover grew at 3% with 6% underlying volume growth. The growth
in the quarter continued to be impacted by the phasing out of Excise Duty incentives and
price de-growth, as the benefit of lower commodity costs was passed on to consumers.
• Profit before interest and tax (PBIT) grew by 7% and PBIT margin improved by +60 bps.
Profit after tax before exceptional items, PAT (bei), grew by 7% to Rs.1024 crores,
despite the higher effective tax rate.
• Enhancing livelihoods through Project Shakti
• HUL was awarded and honoured ‘Client of the Year’ for the third year in a row, repeating
its 2013 and 2014 wins, at the Effies 2015 held in Mumbai on 27 January 2016. HUL
won five awards - one Gold, one Silver and three Bronze awards
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12. PRODUCT ANALYSIS
• Created in 1885.
• Vim Bar was launched in 1993.
• Re-launched in 1997 with an improved
formulation and new communication, which
tackled economy and performance.
• It is market leader in household products.
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13. PRODUCT ANALYSIS
• Vim was the original hand dishwashing brand and now is available in liquid as well as in
powder.
• Vim is sold in four continents, is the leading hand dishwashing brand in twenty countries,
and is available to more than 2 billion people around the world.
• Vim began life as a soap (both in England, and in Thailand, where King Rama V asked
Unilever to supply his household with soap), but is now available as a complete range of
hand dishwashing – including bars, powders and liquids.
13
Company
Household
penetration
HUL-VIM
Nirma Chemical
Works
Colgate Palmolive
Parle Foods
Malhotra marketing
88%
56%
33%
31%
27%
Category
% volume of local
brands/unbranded
Washing cakes/bars
Tea
Salt
88%
56%
33%
14. SWOT ANALYSIS OF THE
PRODUCT
STRENGTH
• Famous brand
• Strong supply and
distribution
network
• Market leader
• New innovation
WEAKNESS
• Not many different
schemes
OPPORTUNITIES
• Below-the-line
promotional
• Up gradation of
product
• High penetration
in rural market
THREAT
Entry barriers is
low
Global market is
open
Penetration of
new brands
14
15. STP
Segment Customers looking for economic products with quick
solutions to their problems
Target Group Both men and women of age group 16+
Positioning The No. 1 household brand in India
15
18. DIGITAL MARKETING
• Hul has its own online portal for selling of products
• It has its own app for all its customers.
• They have marked their presence on digital media.
• They basically follow the strategy of for the customers.
• They have large number of variety available on its digital
platform.
• Not only the products are available on its own website but on
others too such as Amazon, Flipkart and many others.
18
19. MARKET RESEARCH
• To determine the customer buying behavior of FMCG product (Vim bar)
• Number of respondent :-42
• Areas:-
• Kothrud
• Bavdhan
• Karvyanagar
• Online survey
19
20. INTERPRETATION
• If Pobs > Pcritical
• So, we fail to reject.
• Which implies that people buying dish wash cake is higher
then dish wash liquid and dish wash powder.
• 75.8% of the people are satisfied by using dish wash cake.
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21. CONCLUSION
• The sale of vim bar has decreased because of vim liquid.
• The sale can be increased by targeting the rural areas.
• Vim is market leader in household products.
• More than 65% of the Indian population reside in rural areas.
• Program like project Shakti can be more influenced.
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