3. HUL- Hindustan Lever Ltd-Indians largest FMCG sector
company-
• All type of household products available.
• It has Home & Personal Care products, and also food
and Water Purifier available with it.
• HUL has largest number of brands in most trusted brands
list.
16 of HULs brands featured in AC-Nielson Brand Equity list
of 100 most trusted brands.
• HUL sales turnover- 2013 – 25,810.21 to that of Rs.
22,116.37 in 2012.
4. ITC Limited
• Earlier known as Imperial Tobacco Company of India
Ltd.
• Headed by Yogesh Chander Deveshwar.
• Mainly operates in the industry like Tobacco, Foods,
Hotels, Stationary and Greeting Cards with the major
products constitutes Cigarettes, packed foods, hotels,
and apparels.
• ITC Sales Turnover in 2013 – Rs. 29,901.27 to that of Rs.
35,247.25 in 2012.
5. HUL vs ITC
Competitive Strategies
• Three basic competitive strategies are-
Overall cost
leadership
FocusDifferentiation
6. • HUL- Largest pure-play FMCG
company in the country .
• Widest portfolio of products
sold via a strong distribution
channel.
• It owns and markets some of
the most popular brands in
the country across various
categories, including soaps,
detergents, shampoos, tea
and face creams.
7. • ITC not pure play
company-deal mainly in
cigarettes and it is its
primary business.
• It is diversifying into non-
tobacco.
• FMCG segments like
foods, personal care,
paper products, hotels
and agri-business to
reduce its exposure to
cigarettes.
8. HUL vs ITC- Targeting Strategies
• HUL divide the customers into three types of the customers striving, aspiring and affluent and
make targeting strategies accordingly. They are as follows:
• Personal Care: HUL targets different types of customers with different set of bath prod
ucts.
For striving customers -Lifebuoy and Breeze,
For aspiring customers-Hammam and basic Lux variants
For affluent - Pears, Dove and superior range of Lux.
• Key strategy-
To straddle the pyramid and move consumers up to more aspiration brands. Grow share
by growing ahead of the Market
• Detergent: In case of detergents-
For striving customers-Wheel
For aspiring customers- Rin
For affluent customers-Surf Excel
• Key Strategy: Work the pyramid; Grow profitably ahead of the market; regain profitabil
ity through judicious price increases and cost effectiveness programs.
• Tooth Paste:
For striving customers-smaller packing
For aspiring customers Pepsodent
For affluent-Close Up,
• Key Strategy: Grow with market with the our brands Close Up on freshness platform and
Pepsodent on family & health platform
9. • Tea:
For the striving customers it has Taaza tea.
For aspiring customers it has Red Label.
For affluent customer it offers Taj Mahal and Lipton Yellow Label
Key strategy: Presence across the pyramid; drive uptrading of consumers; Convert loose
tea drinkers to packet tea consumers
• Personal Care:
• ITC also targets different types of customers with different set of bath products.
For striving customers - Vivel, Superia
For aspiring customers-Fiama and its variants
For affluent - Essenza di wills
• Key strategy-To target more and more customers and bring it in category of aspiring
customers.
• Detergent: In case of detergents-
For striving customers-Henko, Mr. White, Ghadi
For aspiring customers- Tide
For affluent customers-Wheel, Ariel
• Key Strategy: Profitability and large share in the market
ITC
10. HUL vs ITC- Performance
• ITC- getting threaten by regulatory authorities!!!
• HUL is more conservative in its strategies than its Indian
counterparts.
• Moreover, given increasing competition, HUL faces the risk of being
overtaken by domestic players in various categories.
• ITC- Increased regulatory clamps on tobacco, along with rising tax
burden, pose a business risk for ITC. So, it has started an ambitious
diversification plan, which has its own set of risks.
• ITC now has entered the high-clutter branded products market.
• Creating brand recall and building market share in new products are
ITCs key challenges. Export ban and rising crop prices pose a threat
for its agri-business, taxing its margins.
11. • HUL – always brings customer friendly products with major emphasis on low cost overall but no
compromise on the quality of the product.
• They are leveraging the capabilities and scale of the parent company and focusing on the value of
execution.
• The entire product portfolio is also being tweaked to include premium offerings such as Ponds Age
Miracle and dove shampoo in skin and hair care.
• ITC is focusing on delivering value at competitive prices. Its tremendous reach through extensive
distribution chain has been a competitive advantage.
• E-choupal model for direct procurement is well known under which ITC partners with over 100,000
farmers for spices and wheat procurement and an even larger number for oilseeds. This kind of rural
pedigree is hard to beat
12. HUL vs ITC- Market Share-
Ups and Downs
• ITC has overtaken Hindustan Unilever in branded food and
beverages sales giving a shot in the arm to YC Deveshwar's ambition
of making the cigarette maker India's largest FMCG firm.
• ITC, the maker of Sunfeast biscuits and Bingo chips, has posted
branded food sales of over 4,600 crore in 2012-13, a 24% growth
over the previous year, said a person with direct knowledge of the
development.
• HUL -ahead of competitors in the total non-cigarettes FMCG
market. Its total revenues of 25,810 crore during 2012-13 were
more than three times ITC's sales of 6,982 crore from its pure-play
FMCG portfolio consisting of packaged food, personal care, lifestyle
retail, safety matches and agarbatti.
14. HUL Vs ITC- New market news
• ITC Ltd shares are up 1.5 percent
after touching an all-time high of
375.25 rupees while Hindustan
Unilever Ltd (HUL) shares rose
2.4 percent after touching a
record high of 720 rupees.
• ITC is firming up plans to foray
into non-carbonated
beverages and dairy
businesses next fiscal to
establish itself as one of the
largest food companies in the
country, a senior industry
executive aware of the
company's plans said.
Source- http://articles.economictimes.indiatimes.com/2014-02-
20/news/47527368_1_chitranjan-dar-food-business-yc-deveshwar
15. HUL Vs ITC-
Performance Measurement
• March 31, 2013 Data-
• Operating Profit per share
• HUL- Rs 18.51
• ITC- Rs 13.45
• Net Sales-
• HUL- Rs (m) 25,810.21
• ITC- Rs (m) 29,901.27
• Profit after tax-
• HUL- Rs (m) 3,796.67
• ITC- Rs (m) 7,418.39
• Return on Net worth (%)
• HUL- 141.98
• ITC- 33.28
• Return on capital (%)
• HUL- 147.56
• ITC- 48.18
In terms of return HUL is doing far better than ITC.
16. • HUL has divided the whole market segment into three types of consumer
Striving customers-
they are the largest in number as compared to other types of customers defined by HUL.
Aspiring customers, those who are striving for recognition or advancement; They have relatively hig
h purchasing power.
Affluent customers who are having an abundance of
wealth, they are relatively less in numbers as compared to other group of customers.
• HUL has designed a different targeting strategy for every ASIAN JOURNAL OF
MANAGEMENT RESEARCH 556 segment of the market to satisfy the needs of
customers under those segments with the aim of attaining organizational objectives
• ITC has also followed in the same pattern of dividing the whole set of market into various segme
nts mainly based on the purchasing power of the customers, but it has clearly differentiated the c
omplete market. The brand names of the ITC products itself represent which particular segment of the
market it is targeting. ITC has also used big celebrities as brand ambassadors to promote their pro
ducts. ITC also tend to target the various customers by using different distribution strategies for the vari
ous products. ITC and HUL are successfully segmenting the market, which
tends to help in identifying the various needs of the customers in a particular segment in a better way an
d according to which the company can target the customer accordingly.