COMPETITIVE ANALYSIS OF

HINDUSTAN UNILEVER LTD.

Submitted To,Prof. Devina Upadhyay

Submitted By,

Aruna G. Lambha

(1276804320)

Table Of Contents

Introduction to Company Industry at a Glance Research Methodology Data analysis and Interpretation Findings Recommendations Conclusion

Introduction To Company

Hindustan Unilever Limited, Formerly Known as Hindustan Lever Ltd, is India’s largest FMCG Company

The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited

has More than 16,000 employees, including 1,300 managers and more than 200 highly qualified scientists and technologists

HUL's brands, spread across 20 distinct consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products

HUL touches the lives of two out of every three Indians everyday

Mission of the company-” To Add Vitality To Life”

Vision Of The Company

Power Brands of HUL

Industry At A GlanceIndustry At A Glance

Fast Moving Consumer Goods Industry

fast moving consumer goods are the essential items we purchase when we go shopping and use in our everyday lives

They're the household items you pick up when you're buying groceries or visit your local chemist or pharmacy

FMCG goods are referred to as 'fast moving', quite simply, because they're the quickest items to leave the Store shelves

The prices of the FMCG are relatively less and don’t require a lot of thought , time and financial investment to purchase

As prices of FMCG are relatively less, Profits earned through such sales are more volume based

FMCG Sector is one of the most important sectors for each and every Economy

Household Care Personal Care Food & Beverages

•Fabric wash (laundry soaps and

synthetic detergents)

•Household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish)

•Oral care• Hair care• Skin care• Personal wash

(soaps)•Cosmetics• Toiletries•Perfumes• Deodorants•Feminine hygiene

•Health beverages•Soft drinks•Staples/cereals•Bakery products

(biscuits, bread, cakes)

•Snack food•Chocolates•Ice cream•Tea & Coffee•Processed fruits &

vegetables•Dairy products•Bottled water•Branded flour•Branded rice•Branded sugar•Juices

Key Segments Of FMCG Sector

FMCG Industry In India

The Indian FMCG sector is the fourth largest sector of the economy with a total market size of US$ 13.1 billion

The FMCG market in India is expected to be worth USD 33.4 billion by the year 2015

The Indian FMCG Industry is characterized by low penetration levels, lower per capita consumption and intense competition between the organized and unorganized segments

The FMCG sector in India continues on a strong growth path (on an average of 11% a year) with both Urban and Rural India contributing to its growth

Growth driven by increasing consumption led by growing population, rising incomes, changing lifestyles and favorable demographics

Key FMCG Players In India

According to AC Nielsen Report 2012 top 10 FMCG companies of India are:

Sr. No.

Company Name

1 HUL (Hindustan Unilever Limited)

2 ITC (Indian Tobacco Company)

3 Nestlé India

4 GCMMF (AMUL)

5 Dabur India

6 Asian Paints (India)

7 Cadbury India

8 Britannia Industries

9 Procter & Gamble Ltd.

10 Marico Industries

MARKET SHARE OF FMCG COMPANIES IN INDIA

HUL34%

ITC29%

NESTLE8%

BRITANNIA6%

DABUR4%

OTHERS19%

Source: AC Nielsen Report 2012

Research Methodology

Primary Objectives:1) To find out the market position of HUL in various categories 2) To identify who are the competitors of HUL and to study

category wise competition. 3) To perform SWOT analysis4) To find out what strategies are adopted by the company to

get competitive edge over its competitors.

Research Objectives:

Secondary Objectives:

1) To measure consumer preference for HUL’s products versus competition

2) To study how consumers perceive the quality of HUL’s products compared to its competitors

3) To find out which are the unique attributes of HUL’s products that are perceived by consumers as the most distinctive from its competitors

Research Plan

Sampling Plan

Sampling Unit Existing and expected customers of the company

Sampling Size 100

Sampling Procedure Snowball Sampling

Research Instrument Structured Questionnaire

Target Area India

Sources of Data

Primary Data Online Survey, Informal talks & discussion with employees of UIEL, KASEZ

Secondary Data Annual report, websites, journals, articles, company literature and company brochure

Research Design

Type of Research Descriptive Research

Scope of Research Indian FMCG Market

Beneficiary of the Study Company: HUL

Method of Data Presentation Description, Tabular forms and Graphs

Data Analysis

and Interpretation

of

Primary Objectives

Category wise Market Position of HUL

Source: Company Presentation 2011

Category wise Competition

Personal Wash:

Market share of Soaps

46%

10%

9%

8%

15%

3%9%

HUL

GCPL

Reckitt Benckiser

Wipro

Nirma

ITC

Others

HUL’s Brands Competing Brands

Lux Rexona Breeze Lifebouy Pears Dove Hamam

Santoor Fair Glow Cinthol Godrej No.1 Nirma Dettol Fiama Di

Wills Vivel Margo

Category wise Competition (cntd.)

HUL’s Brands

Competing Brands

Close up Pepsodent

Colgate Anchor Dabur Red Babool

Oral Care:

Category wise Competition (cntd.)

Skin Care:

HUL’s Brands

Competing Brands

Fair & Lovely

Pond’s Vaseline Lakme

Fairever Boroplus Nivea Garnier

Light Olay Neutroge

na

Market share of Skin Care Creams

49%

8%

15%

7%

27%

HUL

Emami

Nivea

Cavinkare

Others

Category wise Competition (cntd.)

Hair Care:

Market Share of Shampoos

44%

25%

31%

HUL

P&G

Others

HUL’s Brands

Competing Brands

Close upPepsodent

Colgate Anchor Dabur Red Babool Cibaca

Category wise Competition (cntd.)

HUL’s Brands

Competing Brands

Surf Excel Wheel Rin

Ariel Nirma Ghadi Tide

Laundry:

Market Share of Detergents

38%

18%

14%

30%HUL

Nirma

Ghadi

P&G

Category wise Competition (cntd.)

HUL’s Brands

Competing Brands

Vim Pril Nip Expert

Dish wash:Market share of Dishwash Bar

54%

22%

1%

23%

Vim

Pril

Nip

Others

Category wise Competition (cntd.)

Ketch up:

HUL’s Brands

Competing Brands

Kissan Maggie Heinz

Market share of Ketch up

37%

29%

10%

24%

Maggie

Kissan

Heinz

Others

List of Competitors of HUL

Competitors of HUL

ITC

Nirma

GCPL

Dabur

Emami

Marico

Colgate-Palmolive

Procter and Gamble

Henkel

Reckitt Benckiser

L'Oréal

Nestle

SWOT Analysis

Strengths Weakness

Strong parentage, hence strong brand equity

Strong brand portfolio Unmatched distribution network Excellent research & development Strong position in most of the

categories of its presence Has the best marketing talent in the

industry Deep roots in local culture & great

understanding of consumer needs

Losing market share in most of the categories due to competitors’ strong brands

Mimic Brands High Advertising Costs. Increase in Ad

spending, which may affect the margins

Declining Export levels

Opportunities Threats

Large domestic marketLarge untapped market available., especially the rural areasChanging Lifestyles & Rising income levelsExport potential- expansion of horizons towards more and more countriesOpportunity in food sector

Increasing costs of raw materialLosing market share in most of the categories of its presenceIntense and increasing competition from local as well as MNC playersCompetition from unbranded productsCompetition from its own brandsTax & Regulatory Structure

SWOT AnalysisSWOT Analysis

Competitive Strategies of HUL

Expansion StrategiesExpansion StrategiesExpansion Strategies

Distribution Strategies

Innovation Strategies

Promotional Strategies

Pricing Strategies

Premiumiztion Strategies

Digital Strategies

Sustainable Growth Strategies

Data Analysis

and Interpretation

of

Secondary Objectives

To measure consumer preference for HUL’s products versus competition

Which of the following companies' FMCG products do you prefer to use?

HUL (Hindustan Unilever Limited)

ITC (Indian Tobacco Company)

P & G (Procter & Gamble) Nestlé Dabur

66

610 8 10

0

10

20

30

40

50

60

70

HUL ITC P & G Nestlé Dabur

%

HUL

ITC

P & G

Nestlé

Dabur

To study how consumers perceive the quality of HUL’s products compared to its competitors

compared to our competitors, what do you feel about the quality of our products?

Better Worse About the same

66

34

00

10

20

30

40

50

60

70

Better Worse About thesame

%

Better

Worse

About the same

To find out which are the unique attributes of HUL’s products that are perceived by consumers as the most distinctive from its competitors

What are the differentiating attributes of our products when compared to our competitors?

Affordable Dependable Innovative Popular Modern Stylish

50

28

20

80

24

14

0

10

20

30

40

50

60

70

80

90

%

Affordable

Dependable

Innovative

Popular

Modern

Stylish

Findings

Market leader in Home and Personal Care Weak presence in Food segment Stiff Competition from local and global players ITC-the greatest threat to HUL’s business Premium Game Cannibalizing Most Preferred by Customers Better Perceived Quality Most Popular among customers

Recommendations

Need to focus on Food Segment Continue investing behind Innovations and Promotion Need to launch Brand Extensions for lower and middle

segments Investment in new businesses

Clearly, To be successful, HUL will need to continuously maintain its competitive advantage. After all, the competitors are not going to sit back and allow it to steal their market share. It can maintain its competitive advantage by predicting future trends in FMCG industry, constantly researching and monitoring its competitors, and adapting to the customer’s wants and needs.

Conclusion

Company is having good position in the market, despite facing intense competition from local and global FMCG players. It is enjoying market leadership in various consumer categories of its presence. HUL's up-and-running business model is a treat for investors seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better in future. HUL’s growth story is evolving.