Competitor Ppt

7/31/2019 Competitor Ppt

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FMCG

Industry

Pankaj Sharma

Ankit Malhotra

Anjali Sehrawat

Prashant Sharma

HimanshuSingh


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THE INDIAN FMCG SECTOR

Market size:

US$ 13.1 billion (in 2005)

US$ 18.2 billion (in 2008) i.e. Rs. 85,000 crore

The fourth largest sector in the economy

Creates employment for more than three millionpeople in downstream activities.


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HindustanUnilever

Limited


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HINDUSTAN UNILEVER

LTD.

India's largest FMCG

A subsidiary of Unilever which

holds 52% of the equity

2 out of 3 Indians use its products

Over 42 factories across India

Around 45% of HULs sales turnover

of

Rs. 17,524 crore comes from rural

markets,valued at around Rs. 8,000 crore


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SWOT

STRENTHS

More than 50 years of operation (Rs. 3500 Cr. Fixed Assets and Rs.

2000 Cr. Cash)

Soaps and detergents segment contribute 47% revenue.

Sales (Rs. 17,500 Cr.) are 5 to 6 times that of Dabur, P&G and

Godrej

Variety of Products- providing reach to every segment of society

Good brand image and effective distribution channel with wide

range of coverage.


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WEAKNESS

47% of HUL sale come from Detergents andPersonal Wash.

Low Export Level.

Profitability Margin are low compared to ITC, P&G,

Dabur, Marico and Godrej.

Inability to transform its strategies at the right

time


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OPPORTUNITY

Growing Consumer base due to increasing income

level.

In tapped Market in branded Ayurvedic Medicines

Expansion of Horizon Outside Asia

Consumer Expenditure in Food Sector rose by

13%.

Increasing Consumer Aspirations


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THREATS

Inflation is reducing Buying Power

Availability of Spurious/ Forged products in RuralAreas.

Tough Competition from companies like ITC, P&G

Matured and Growing Products.

Tax and Regulatory Structure


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MARKETING MIX

PRODUCT

The most famous product of HUL is LUX,

Pepsodent, Surf Excel, Ponds.

For the convince of the Customers theseproducts are offered in different sizes and

flavors.

PRICE-

Pricing strategy is Competitive to industry

pricing.

HUL follows a uniform pricing policy


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PROMOTION-

LUX has top beauty soap industries

since 3 decades and has been alwaysassociated with celebrities.

Promotion Techniques- Flip Chart and

Games such as spotting the right price andMatch the pairs.

PLACE-

Distribution Network one of the key

strength of HUL.

Out Sourcing of Distribution System.


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PORTERS FIVE FORCE MODEL


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Rivalry Among Existing Competitors

Intense rivalry often plays out in the following ways:

Using Price Competition

Strategy advertising battles

Making new product introductions

Increasing consumer warranties or service

EXISTENCE OF CUT THROAT COMPETITION,


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It refers to threat by the products from different companies.

It products with similarfunctionlimit the prices firms can charge

Major threat are from products ofITC and NESTLE.

The switching cost for customers is very low, because of high

level of substitutes

Low loyalty and not much quality difference


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BUYERS POWER

Indicates the effect of customers demand onproduction function

In FMCG sector the bargaining power of

customers is very high

Tie-ups with local complementary product

manufacturer to get products at cheaper and minimalrates.

If buyers is fragmented then no single buyers can

effect the price

Buyers compete with the supplying industryby:

Bargaining down prices

Forcing higher quality


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SUPPLIERS POWER

Suppliers exert power in the industry by:

Threatening to raise prices or to reduce quality

Suppliers are likely to be powerful if:

Supplier industry is dominated by a few firms

Suppliers products have few substitutes

Suppliers products have high switching costs

Availability of large no. of suppliers weakens their

bargaining power


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THREATS OF NEW ENTRANTS

These are few Barriers to Entry:

Economies of Scale

Capital Requirements

Switching Costs

Government Policy

Cunning techniques by competitor


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PEST ANALYSIS

Political

Impact of political or governments decision.

Introduction of 100% FDI and introduction of variousfood laws

Relaxation in various excise duties

HULs guhawati tea plant was closed down due to threats

and other political pressures.


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ECONOMICAL

Rising inflation has forced the various co. to increasethe prices

P&G has increased prices and even HUL is forced to do

same.

Mainly because of:

Decreased value rupee in terms of dollars

Rising Packaging cost and fuel at international level


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SOCIAL

It means impact of societies behavior on co. performance

Now consumers look for money for value rather then

value for money

More demand for premium products instead of economical

products

In 2009 SANKALP? An initiative taken by HUL to promotehealth & hygiene in Rural India


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TECHONOLIGICAL

FMCG Companies need to keep their

technology up to date.

Technology has been simple and available in the

market

Foreign players helps in high technologival

development

1991, first time soap bar was introducedVim Bar and

Odopic bar


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ThankYou

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