2. Table Of Contents
Introduction to Company
Industry at a Glance
Research Methodology
Data analysis and Interpretation
Findings
Recommendations
Conclusion
3. 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”
7. 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
8. 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
9. 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
10. 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
11. MARKET SHARE OF FMCG COMPANIES IN INDIA
HUL
34%
ITC
29%
NESTLE
8%
BRITANNIA
6%
DABUR
4%
OTHERS
19%
Source: AC Nielsen Report 2012
12. 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 analysis
4) 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
13. 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
23. 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
24. 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 market
•Large untapped market available., especially the
rural areas
•Changing Lifestyles & Rising income levels
•Export potential- expansion of horizons towards
more and more countries
•Opportunity in food sector
•Increasing costs of raw material
•Losing market share in most of the categories of
its presence
•Intense and increasing competition from local as
well as MNC players
•Competition from unbranded products
•Competition from its own brands
•Tax & Regulatory Structure
SWOT AnalysisSWOT Analysis
25. Competitive Strategies of HUL
Expansion StrategiesExpansion StrategiesExpansion Strategies
Distribution Strategies
Innovation Strategies
Promotional Strategies
Pricing Strategies
Premiumiztion Strategies
Digital Strategies
Sustainable Growth Strategies
27. 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
6
10
8
10
0
10
20
30
40
50
60
70
HUL ITC P & G Nestlé Dabur
%
HUL
ITC
P & G
Nestlé
Dabur
28. 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
0
0
10
20
30
40
50
60
70
Better Worse About the
same
%
Better
Worse
About the same
29. 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
AffordableDependable
Innovative
Popular
Modern
Stylish
%
Affordable
Dependable
Innovative
Popular
Modern
Stylish
30. 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
31. 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.
32. 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.