The document discusses HUL's performance in the growing FMCG market in India and the challenges it faces. It shows that while HUL remains the market leader, its market share is declining due to increased competition from companies like P&G, CavinKare, and L'Oreal. To combat this, HUL needs to focus on improving penetration in rural markets, consider lower price points, and focus on categories like salt and toothpaste where growth has been decreasing. The company also needs to effectively manage its large and complex supply chain to ensure efficient fulfillment of demand across India.

1. HUL fighting the challenge in the
growing FMCG market

2. The market in figures
Data in Euros 2003-04 2005-06 Increase
Cosmetics 1.2billion 1.6 billion 33%
Skincare 300million 410 million 37%
Health Care 600 million 725 million 21%
Fragrances 200 million 262 million 31%
Deodorants 141 million 227 million 61%
Oral Care 490 million 638 million 30%
Soaps 905 million 909 million 0.1%
Male Grooming 165 million 253 million 53%
Total 2.7 billion 3.4 billion 25%

3. Growth in FMGC
•The rising GDP and Per Capita Income in India is promising growth in the
FMCG market. In this scenario, HUL is predicting a lot of potential to grow
consumption and penetration.

4. HUL - India’s largest FMCG company

5. Leadership across Diverse FMCG Categories

6. Opportunities & Challenges
• A buoyant & growing economy
• Increasing per capita income drives FMCG growth
• A changing profile of a differentiated set of consumers
• Opportunity to grow consumption and penetration
• Large scale potential to grow Foods

7. India - 2013

8. Opportunity to grow consumption

9. Opportunity to grow consumption

10. Opportunity to grow penetration

11. Segmentation Targeting
&Positioning

12. Personal wash

13. Laundry

14. Hair care

15. Skin care

16. Tooth paste

17. Tea

18. Coffee

19. Packaged food
• Highly under penetrated
• Implement the foods strategy
• Use of Unilever know how to cater to local
tastes
• Enter new exciting markets within the
processed foods space

20. LUX
• upper middle and high income groups
additional benefits
• one of the strongest brands
DOVE
• premium pricing
• psychographic

21. LIFEBUOY
• lower income groups
• more basic
LAKME
• Behavioral +age + gender
• range of products
• tough challenges

22. FAIR & LOVELY
• Age, gender, behavioral
• middle income group
• tough competition
PONDS
• income group
• across the different tiers
• strong competition

23. PEPSODENT
• middle income group
• weaker category
SURF EXCEL
• very popular
• high pricing, yet preferred

24. HUL’s Quarter analysis across 2000-2007

29. 2005-04
Observation through graphs:
• In 2005 , we could see a significant increase in the %growth
of FMCGs in all quarters. This was due to:
• Significantly higher brand investments.
• Sunsilk “9 t0 9” conditioner and new variant of clinic all
clear black launched
• Growth in all key HPC categories like shampoos ,laundry,
personal wash, skin care, tooth paste. Total HPC growth of
12% led by Shampoo & Laundry
• Rin Advance gains shares in a competitive context
• Strong growth in closeUp and pepsodent and backed by all
other brands like ponds

30. 2006-05
• In 2006, we could see that Q3 and Q2 %growth of
FMCGs decreased , Q1 is almost flat and Q4
increased significantly about 18.3%. But overall
%growth of FMCGs in this year got decreased
This was due to:
• Adjusted for discontinued business (Nihar)
• Strong performance by Lux portfolio and the
recently relaunched Lifebuoy.
• Ice creams grew strongly, led by the impulse category
• Advertizing and promotion spend for the quarter 4
jan-Mar,was accelerated and recorded a 45% increase

31. 2007-06
• In 2007, %growth of FMCGs in Q2&Q4 decreased
significantly, in Q3 increased significantly , in Q1
increased. This was due to:
• Launch of Scalp Oil Control boosts sales in Clinic All
Clear;
• Skin category got impacted due to the relaunch of
Fair&lovely in July 2007.
• Ice cream performed its 20%+ growth in march
quarter.

32. 2002-2003
In 2002 , there is a significant decline in the %growth of FMCGs across
all quarters. This was due to:
• Decline in %growth of personal products, ice creams,foods and
beverages in march and December quarters.
In 2003, % growth of FMCGs across all quarters had a siginificant
increase .
• Driving growth through appropriate price points positioning
resulting Lifebuoy becomes the largest value share brand in June
2003
• Higher investments in quality, Quality investment drives Rin
Supreme
• Growth in Rural market
• Chik shampoo’s sales growth got declined

33. 2004-03
• In 2004, %growth of FMCGs in quarters expect for
jan-march quarter ,got decreased significantly. This is
due to:
• Food market sales declined 42%
• Impact of lower primary sales
• Rin Shakti declines

34. Summary on Quarter analysis:
• From the above results we could say that even HUL’s
market share is high its facing a lot of competition in
FMCGs market.
• For instance, HUL’s share in the skin care segment, its most
profitable division which accounts for at least 45% of
profits, has declined by more than 3 percentage points to
54% in the last two years.
• Last year, the company’s rival Procter and Gamble (P&G)
launched high-end skin care products under the Olay brand
that have since emerged a significant threat to HUL’s
offerings in the segment .
• Another multinational brand, Garnier, owned by the L’Oreal
Group, has increased its focus on India, too

35. What can HUL do to fight back?
• According to a CavinKare executive, 75 per cent of
Chik sales come from the rural market, while the
industry sells only 52 per cent of its shampoo brands
in the rural markets, so HUL can improve its market
growth by reducing the prices of the products and
focusing on rural market.
• In the Indian shampoo market, where sachet (7ml)
format accounts for 75 per cent of the total sales,
Chik has been bringing in 90 per cent of its sales in
this format. So to improve on shampoo market HUL
should focus on sachet format

36. What can HUL do to fight back?
• Cavinkare: The pricing of the new product is also done
with an intention of taking on market leaders such as
Clinic Plus. Chik Satin is priced at Rs 56 for a 200-ml
bottle, while Clinic Plus is priced at Rs 63 and Sunsilk at
around Rs 87 at the higher price point. So HUL can focus
on the pricings of the new product should be taken with
an intension to beat the competitors
• While going through annual and quarter reports of HUL ,
I noticed that in most of the quarters HUL’s % of growth
in salt and tooth paste sector got decreased frequently . so
to increase the % growth of FMCG, HUL should focus on
salt and tooth paste sector for better results .

37. SHAMPOO
14
HUL
12
10
CAVIN
8
OTHERS KARE
6
4
2
0
1 2 3

38. POWDERS
7
HUL
6
CAVIN KARE DONT USE
5 OTHERS
4
3
2
1
0
1 2 3 4

39. DEODORANTS
6
HUL OTHERS
5
4
DONT USE
3
CAVIN KARE
2
1
0
1 2 3 4

40. FACIALS
7
HUL
6
DONT USE
5 CAVIN KARE
4
3
2
1
0
1 2 3

41. WOULD YOU BUY A PRODUCT ON
BASIS OF PRICE AND QUALITY?
6
BOTH
5 QUALITY
4 PRICE
3
2
1
0
1 2 3

42. DEODORANT
160 Rexona
Axe
140
120 Aviance
100
Price
80
60
40
20
0
1 2 3

43. FAIRNESS CREAMS
100
95 Fair & Lovely
Fair ever
90
85
80
Price
75
70
65
60
55
50
1

44. TOOTH PASTE
35
Pepsodant Close up Pepsodant 2 in
30 Whitening 1
25
20
Price
15
10
5
0
1 2 3

45. TALCUM POWDERS
39
38 Ponds Sandal
37 Ponds Magic
Spinz
36
Price
35
34
33
32
31
30
1 2 3

46. SOAPS
60
Dove
50
40 Pears
Price
30 Liril
Lifebuoy
Hammam
20 Rexona
10
0
1 2 3 4 5 6

47. WASHING POWDERS
140
Surf excel
120
100 Rin
80
Price
Wheel
60
40
20
0
1 2 3

48. SHAMPOOS- LOW END PRICE
45
40
35
30
25
Price
20
15
10
5
0
1 2 3
Clinic plus Chik Meera

49. MEDIUM PRICE
70
Dove
60 Sunsilk
50
40
Price
30
20
10
0
1 2

50. HIGH END PRICE
76
Dove
75
74
73 Sunsilk
72 Clinic Plus
Price
71
70
69
68
67
66
1 2 3

51. Advertising

52. LUX
• Celebrity endorsement
• Grandiosity
• Benefits of the product
• Rare promotions
(Poor choice during occasions)

53. DOVE
• emotionally appealing
• across all segments
• dove family
AXE
• exaggerated end effect
• cross-promotions

54. LIFEBUOY
• kids from residential complexes
• germ protection and hygiene
• targeted market segment ??
LAKME
• flashy colourful adds
• grandiosity and celebrities
• features and benefits down the line

55. FAIR & LOVELY
• Middle income group
• new horizons in life
• POP and sampling
pepsodent
• repent if you don’t buy
• concentrates on USPs
Surf excel
• shoulders a lot of responsibility
• features housewives

56. IMC
CavinKare Vs HUL
•Interviews given by top level managers to media
•Innovations and entry
•Future plans
•Transparency of the company
•Reaching the common man

57. PR ACTIVITIES
• Shakthi
• Gren barrnes
• CASHE (credit and saving for house hold
enterprises)
• LSBC(Life bouy swasthya chetan)
• Fair and lovely foundation.
• Ashadaan
• Yashodayam

58. Cavin kare
• Ability award
• Competitions
• Open shows (Nyle and shine)

59. Supply Chain Management Solution for HUL
 Problem
• nearly 1000 products, four warehouses, more than 40 agents, 7,500 wholesalers and a
number of large institutional customers.
• excess finished-goods inventory reaching distribution centers
 Supply Chain Management (SCM) solution ensures informed decisions in
• procurement,
• manufacturing,
• replenishment and
• distribution.
 Solution needs to provide visibility and prioritize the demand-fulfillment process based
on individual profiles. Dynamic data such as daily production, distribution, sales and
related constraints need to be considered.
 How to Implement ??
Adexa - industry-specific planner (software)