HUL : Hindustan Unilever Limited Mission & Vision History BCG Matrix, Porter’s 5 forces, SWOT Analysis Presentation By: Amara Bandukada Umme Baba Arul Collins Anand Sawji Ayush Parekh

1. Hindustan Unilever
Limited
A Management Process Presentation

2. Introduction
Definitions of BCG Matrix, Porter’s 5 forces,
SWOT Analysis

3. Introduction
 Boston Consulting Group (BCG) Matrix
is developed ny BRUCE HENDERSON
of the Boston Consulting Group in the
early 1970s.
 According to this technique, businesses
or products are classified as low or high
performers depending upon their market
growth rate and relative market share.

4. BCG Growth-Share Matrix
 It is a portfolio planning model which is based on the
observation that a company’s business units can be
classified to four categories:
 Stars
 Question Marks
 Cash Cows
 Dogs
It is based on the combination of market growth and market
share relative to the next best competitor.

6. Advantages
 This matrix helps to manage and organize
company portfolio and strategies.
 These matrix is use full for small and large
business volume.
 It helps us to take effect action for our business as
well as we can make future planning too.
 We make our product marketing and
manufacturing plan according to the result that
show in graph.

7. Disadvantages
 This matrix ignores the synergic effects of business
factors.
 If a company has high market shares then it is not a
success full business, there must be equal level of
business growth factor and vice versa.
 Not every dog’s quadrant is bad sometimes it give you
more profit than cash cow.
 We cannot get 100% accurate our market result,
because some market has sudden change property.
 Sometimes low market share also give you benefits.

8.  Named after Michael E. Porter, this model
identifies and analyzes 5 competitive forces that
shape every industry, and helps determine an
industry's weaknesses and strengths.
1. Competition in the industry
2. Potential of new entrants into industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products
Definition of 'Porter's 5 Forces:

9. Porters 5 forces:

10. Advantages
 Helps to shape our strategy to survive.
 Lowers risk.
 Identify supplier power.
 Helps to build good customer relationship.

11. Disadvantages
 Pace of change is now more rapid.
 Market structures were seen as relatively static.
 The model provides you with only a snapshot of your
environment.
 It can be difficult to define the industry
 The model does not consider non-market forces
 The model is most applicable for analysis of simple market
structures.
 The model is based on the idea of competition.

12. SWOT Analysis
 SWOT analysis (alternatively SWOT Matrix) is a
structured planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threat
s involved in a project or in a business venture.
 A SWOT analysis can be carried out for a
product, place, industry or person.
 It involves specifying the objective of the business
venture or project and identifying the internal and
external factors that are favorable and unfavorable to
achieving that objective.

13. SWOT Analysis

14. Advantages
 It is a source of information for strategic planning.
 Builds organization’s strengths.
 Reverse its weaknesses.
 Maximize its response to opportunities.
 Overcome organization’s threats.
 It helps in identifying core competencies of the firm.
 It helps in setting of objectives for strategic planning.
 It helps in knowing past, present and future so that by
using past and current data, future plans can be chalked
out.

15. Disadvantages
 Focusing too much on strengths can lead to ignorance
of one's flaws and can eventually lead to the weakening of
one's business.
 Focusing too much on weaknesses can lead to the
neglecting of strengths or cause a person too look down on
their business.
 Missing opportunities is basically a missed chance to
possibly get a business known. Not all opportunities can
help. You have to think if you'll benefit positively in the long
run.
 The basic idea with threats is that if you don't know them
harm will come if not sooner, then later.

17. HUL
 India’s largest FMCG Company.
 Parent Company (Unilever) has a presence in over
100 countries and employs more than 174,000 people
worldwide.
 Headquartered in Mumbai (HUL).
 More than 200 highly qualified scientists and
technologists.
 Listed at BSE and NSE

18. History & Present
Position
 The Company was incorporated in 1933 but its
products have been sold in India since 1888.
 The Group has more than 400 brands spanning 14
categories of home, personal care and food products
 HUL touches the lives of two out of every three
Indians everyday.
 Over 700 million consumers
 More than 15,000 employees, including 1,300
managers

19. Organization Structure

20. Board of Directors

21. Mission
Unilever’s mission is
to add Vitality to life.
We meet everyday
needs for
nutrition, hygiene, and
personal care with
brands that help
people feel good, look
good and get more
out of life.

22. Vision
 We work to create a
better future every
day.
 We help people feel
good, look good and
get more out of life
with brands and
services that are good
for them and good for
others.
 We will inspire people
to take small everyday
actions that can add
up to a big difference
for the world.
 We will develop new
ways of doing
business with the aim
of doubling the size of
our company while
reducing our
environmental impact.

23. Financial Performance

24. Performance Analysis

25. Brands under HUL
More than 400 brands under HUL but about main 30 are taken up for
research and presentation.

29. BCG Matrix

31. (a) Entire FMCG Sector Market Growth Rate = 13%
GROWTH RATE SEGMENT/SECTORS
Excellent growth of above 20 percent
(>20%)
Deodorant 41.5% (40%)
Tooth paste 22% (20%)
Men’s Fairness product 32% (32%)
Hair colorants/dies 22% (21%)
Cleaners and repellents 23% (22%)
Dish wash 27% (26%)
High growth rate of 10 to 20 percent
(10-20%)
Skin and fairness cream 18% (16%)
Detergent powder 16% (15%)
washing cakes 13% (13%)
toilet soaps 16% (15%)
tooth brush 13% (13%)
shampoos 12% (9.8%)
skincare 15% (15%).
Moderate growth of 0 to 10 percent
(0-10%)
Toothpowder 1.8% (2%)
Liquid soaps 7% (6%)
Shaving products 8% (7%)
coconut oil 2% (2%)

32. (b) Relative Market Share Data
RELATIVE MARKET VALUE
= Market Share of the Product
Market Share of the Largest
Competitor

33. SR.
NO.
INDUSTRY HUL PRODUCT AND
ITS MARKET SHARE
(C1)
LARGEST
COMPETITOR
AND ITS
MARKET SHARE
(C2)
RELATIVE
MARKET
VALUE (RMV)
=C1/C2
1. DEODRANT AXE Deodorant
(25%)
Fa
(8.5%)
2.94
2. TOOTHPASTE Close Up and
Pepsodent
(32.8 %)
Colgate -
Palmolive
(52.4%)
0.62
3. FAIRNESS
CREAM
Fair & Lovely
(76%)
Cavin Kare’s
{Fairever}
(15%)
5.06
4. MEN’s
FAIRNESS
CREAM
Fair & Lovely Menz
Active
(<5%)
Emami
{Fair&Handsome}
(Almost 70%)
0.04
5. FLOOR
CLEANER
Domex
(10.5%)
Reckitt {Harpic}
(80%)
0.13
6. DETERGENT
BAR
Rin
(4.2%)
Nirma
(35%)
0.12
7. DETERGENT Wheel Nirma {Ghari} 1.54

34. 8. DETERGENT
POWDER
Surf (35%) Wheel (20.83%) 1.68
9. TOILET SOAP Lifebuoy (18.4%)
Lux (15.5%)
Nirma (10%)
Nirma (10%)
1.84
1.55
10. SHAMPOO Dove (7.9%)
Clinic Plus (21.1%)
Sunsilk (15.8%)
Pantene (9.4%)
Pantene (9.4%)
Pantene (9.4%)
0.84
2.24
1.68
11. ATTA Annapurna (26%) ITC {Ashirwad}
(40%)
0.65
12. TEA BAG Taj Mahal (25%) Tata Tetley (56%) 0.44
13. MOISTURISING
CREAM
Vaseline (55.6%) Nivea (20.2%) 2.75
14. FOOD Kissan Ketchup
(26%)
Maggi Ketchup
{Nestle} (47%)
0.55

35. (c) RELATIVE SEGMENT’S
SALES DATAPRODUCTS’
SEGMENT
TOTAL SALES OF
HUL
SALES OF
PRODUCTS
IN 2012-13
SALES OF
PRODUCTS AS
% OF TOTAL
SALES
Soaps and
Detergents
20,018.51 8,791.56 44.6
Personal Products 20,018.51 5,844.10 29.7
Beverages 20,018.51 2,343.97 11.9
Foods 20,018.51 902.57 4.6
Ice Creams 20,018.51 274.58 1.4
Exports 20,018.51 1,171.79 5.6
Others 20,018.51 656.05 2.2
(In Crores)

36. PRODUCTS’
SEGMENT
SALES OF
PRODUCTS
IN 2012-13
SALES OF
PRODUCTS IN
2011-12
% OF GROWTH IN
EACH SEGMENT
Soaps and
Detergents
8,791.56 8,265.64 6.168501
Personal Products 5,844.10 5,047.90 14.64603
Beverages 2,343.97 2,142.43 8.990537
Foods 902.57 730.78 21.11338
Ice Creams 274.58 231 17.28249
HUL Sales Comparison with the Base
Year
(In Crores)

37.  MARKET GROWTH RATE ANALYSIS
As we had analysed in the beginning the entire FMCG market Growth rate which is
13%, thus this 13% benchmark will be used to distinguish between the industries (w.r.t.
HUL’s products) with high growth rate and low growth rate.
High Growth Rate Industries Low Growth Rate Industries
Deodorant
Tooth Paste
Skin And Fairness Cream (MEN &
WOMEN)
Cleaners
Dish Wash
Detergent Powder
Toilet Soaps
Processed Food
Packed Wheat Flour
Tea Bags
Washing Cakes
Shampoos
Toothpowder
Liquid Soaps
Shaving Products
Jam & Jellies
Moisturizing Creams
Packed Branded Tea
Coffee

38.  RELATIVE MARKET SHARE ANALYSIS
The market leader position occur when the relative market value crosses 1.0 because
then the organisation’s market share in terms of sales is above that of its largest
competitor. The bigger the value (>1.0) the higher market share that product has and is
more preferably placed on the extreme of the BCG matrix.
High Market Share Low Market Share
AXE Deodorant
Fair & Lovely Fairness Cream
Wheel
Surf Excel
Lifebuoy
Lux
Clinic Plus
Sunsilk
Vaseline
Kissan Jam
Vim
Kwality Walls
Lipton
Red Label
Knor Soups
Close Up
Pepsodent
Fair & Lovely Menz Active
Domex
Rin
Dove Shampoo
Annapurna
Taj Mahal Tea Bags
Kissan Ketchup
Bru
Breeze
Taaza
Brooke Bond Sehatmand
Knor Meal Maker Range

39. On the basis of above mentioned analysis, almost every product of HUL is being
analysed against the industry to which it belongs and then placed in one of the 4
quadrants of BCG matrix…

40. STARS QUESTION MARKS
AXE Deodorant
Fair & Lovely
Lakme Anti Ageing
Vim
Wheel
Surf Excel
Lifebuoy
Lux
Kwality Walls
Kissan Jam
Knor Soup
Close Up
Pepsodent
Annapurna
Fair & Lovely Menz Active
Domex
Rin
Breeze
Taj Mahal Tea Bags
Kissan Ketchup
Knor Meal Maker
CASH COWS DOGS
Clinic Plus
Sunsilk
Vaseline
Red Label
Taaza
Brooke Bond Sehatmand
Bru
HIGH
LOW
HIGH
LOW

41. SWOT Analysis
Strengths, Weakness, Opportunities and Threats for
Hindustan Unilever Limited.

42. Strengths
 HUL is a part of the Unilever group, hence strong brand equity
 It has over 15000 employees
 Reach 6.4 million retail outlets which includes direct reach to over
1.5 million retail outlets
 Two R&D centres 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

43. Weakness
 Market share is limited due to presence of other
strong FMCG brands.
 HUL products has stiff competition from big domestic
players and international brands.
 High advertising cost due to large number of products.
 Loseing of market share in segments including soaps,
hair, oral & skincare.

44. 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.
 Diversification can enter new segments like medicines
and confectionery etc.

45. Threats
 Intense and increasing competition amongst other
FMCG companies.
 FDI in retail thereby allowing international brands.
 Competition from unbranded and local products.
 Increasing tax rate and other duites increase’s cost
and direct effect on the sale of the product.

46. Competitors
 1. Marico
 2. L'Oréal
 3. Nirma Ltd
 4. ITC
 5. Colgate-Palmolive
 6. Procter and Gamble
 7. Dabur

47. PORTER’S FIVE FORCES
MODEL

49. THREAT OF NEW ENTRY
• It does not have any
measures which can
control the entry of new
firms.
• The resistance is low and
the structure of the
industry is complex.

50. • Bargaining power of
consumer is very high.
• Customers are never
reluctant to buy or try new
things off the shelf.
BUYERS POWER

51. • The bargaining power of
suppliers of raw material and
intermediate goods is not
very high.
• There is no monopoly
situation in the supplier side.
SUPPLIER POWER

52. • There are complex and never
ending consumer needs and no
firm can satisfy all needs alone.
• This leads to higher consumer
expectation.
Threat of substitution

53. • In HUL , rivalry among
competitors is fierce.
• Market players use all sort
of tactics and activities.
Competitive rivalry

54. Conclusion
• Increased focus on farm sector will boost
rural incomes.
• Better infrastructure will improve the supply
chain.
• If the company can able to change the
mindset of consumers, then they would
generate higher growth in near future.

55. Presentation By:
Source:
 Definitions: Wikipedia
and Google.
 History, About HUL,
Data and Statistics:
www.hul.co.in
 Reference for BCG:
www.marketing91.com
www.studymode.com
www.papers.ssrn.com
www.academia.edu
 SWOT and 5 forces:
Research by Team.
 Guidance: Miss Andrea
David
Ayush Parekh
Anand Sawji
Arul Collins
Amara
Bandukada
Umme Baba

56. Thank You!
A Management Process Presentation