Post on 10-Apr-2018
transcript
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HUL AND P&G PRICE WARS
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HISTORY
In 1931, Unilever set up its first Indian subsidiary, HindustanVanaspati Manufacturing Company, followed by LeverBrothers India Limited (1933) and United Traders Limited(1935). These three companies merged to form HUL in
November 1956.
HUL offered 10% of its equity to the Indian public, being thefirst among the foreign subsidiaries to do so. Unilever now
holds 52.10% equity in the company. The rest of theshareholding is distributed among about 360,675 individualshareholders and financial institutions.
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In one of the most visible and talked about events of India'scorporate history, the erstwhile Tata Oil Mills Company
(TOMCO) merged with HUL, effective from April 1, 1993.In 1996, HUL and yet another Tata company, Lakme Limited,
formed a 50:50 joint venture, Subsequently in 1998, LakmeLimited sold its brands to HUL and divested its 50% stake in
the joint venture to the company.HUL formed a 50:50 joint venture with the US-based Kimberly
Clark Corporation in 1994,In January 2000, in a historic step, the government decided to
award 74 per cent equity in Modern Foods to HUL, therebybeginning the divestment of government equity in public sectorundertakings (PSU) to private sector partners.
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&RODUCT Mix PRODUCT LINES&RODUCT Mix PRODUCT LINES
dustan Unilever Ltd
ersonal wash
laundrykin careair care
Oralcare
Deodrantsolor cosmetics
Ayurvedic
, ,Lux lifebuoy dove, ,Pears rexona breeze
Surf excel Wheelsunlight
&Fair lovely Pondsvaseline
SunsilkClinic
Pepsodentcloseup
Axerexona
lakme
ayush
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SWOTSWOTANALYSIS OF HUL:ANALYSIS OF HUL:
STRENGHTS:
Unmatched distribution network- a must to cater rural
market. Strong Brand Portfolio, Price, Quantity & Variety.
Innovative Aspects.
Solid Base of the company (3400 distributors,16 million
Outlets over the world, 700 million customer base).
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Highly skilled human resource.
Strong R&D Team.
Corporate Social Responsibility. :EAKNESS
Changing Consumer Tastes & Preferences.Low Export Levels.
High Cost Of Production.
Me-too products which illegally mimic the labels and brandsof the established brands.
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Competitive Products :PPORTUNITIESChanging LifestylesRising income levels
Untapped rural market.
Large domestic market population over 1 billion .Export potential and tax & duty benefits for setting exports
units.
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:HREATS
Entry of new companies and brands in the FMCG sector.
Increasing cost of raw materials.
Slowdown in an economy can have an impact on the FMCG
sector.
Duplication of brands.
Tax and regulatory implications.
Removal of import restrictions resulting in replacing ofdomestic brands.
Store-branded or private-label offerings.
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BCG MATRIXBCG MATRIX
STARS:
Hair care, skin care,premium soaps &water (pure it)
QUESTION MARKS:
Processed food
CASH COWS:
Mass soaps, beverages,oral care, laundry,
colour cosmetics
DOGS:
Sea food exports
RKET GROWTH
HIGH
LOW
MARKET SHARE
HIGH LOW
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Existing Products New Products
Markets
Markets
ANSOFF MATRIXANSOFF MATRIX
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JOURNEY OF SURF EXCEL
HUL introduced Surf in 1959, first detergent powder in thecountry.
The promise of superlative whiteness- connected with the
consumers and helped to establish the brand.
It was the first detergent brand on TV.
The 1970 saw the launch of nirma, and surf had tocommunicate the idea of price value equation to itsconsumers.
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In 1990 mid priced detergent Ariel and Surf ultra were introduced.
Concentrates had taken over the top performance image leadership
amongst detergent powders.
In1996 surf was re-launched as surf excel, its positioning claimingto clean a wide variety of stains.
In 2003 surf excel quick wash was introduced to address thecomplaint of shortage of water
In 2005 surf excel matic was introduced to address the need of fast
growing washing machine consumer.
In 2006 detergent bar was introduced to its portfolio.
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PRODUCT LIFE CYCLE OFSURF EXCEL:
urf excel
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INTRODUCTION:
qSurf was introduced in the year 1954.
qIn 1970 surf had to face competition from Nirma,for which they launched the Lalita- jicampaign, which was quiet successful.
qIt was the first ever detergent brand to advertise ontelevision.
qThe era of Lalita Ji ensured that Surf representedthe woman of that epoch, which in turn managedto instill confidence among consumers.
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qIn1990 Ariel (P&G) was introduced as a competition tosurf ultra, to which surf responded by introducing surf
ultra, mid price powder segments. Campaign daagdhundte reh jaaoge.
qIn due course HUL kept improving and innovating surfby adding various features to it.
qIn 1996 surf was re-launched as surf excel and positionedas jaise bhi daaho surf excel hai na
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GROWTH:
Surf has entered the growth stage by having increase in profitsby approx 25%.
Surf excels recent campaign of daag ache hain has caught
the attention of the consumers and also led to increase insales.
At this stage surf excel competes with brands like Ariel,Henko, Tide, Nirma etc.
Here they follow the concept of aggressive advertisement andselling.
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In their advertisement they try to differentiate
their products with that of the competitors.They keep upgrading their product so as to achieve
higher market share.
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PORTERS FIVE FORCESPORTERS FIVE FORCES
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THREAT OF NEW ENTRANTS:
Low threat of new entrants.
Entry of ITC ltd and P&G products.
Launch of Nirma.
Entry of Henko detergent.
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THREAT OF SUBSTITUTES:
.Threat of substitutes is high
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RIVALRY AMONG
COMPETITORS:
High rivalry among the competitors.
Low profitability.
Competition with respect to price, quality and
innovation.
High advertising cost involved in differentiating theproducts from that of the competitors.
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BARGAINING POWER OF
BUYERS:
High bargaining power
High switching cost
Price sensitivity
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BARGAINING POWER OFSUPPLIERS:
High bargaining power of.suppliers
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SEGMENTATION,TARGETING,POSITIONONG:
:TARGET MARKETSurf excel s target market has always been the middle class of
.india since the 1950s
POSITIONING Surf excel is positioned as the stain remover Surf Excelhain na
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MARKETING MIX
PRODUCT
PRICE
PLACE
PROMOTION
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PRODUCT
SURF EXCEL MATIC
SURF EXCEL QUICKWASH
SURF EXCEL BLUE
SURF EXCEL BAR
SURF EXCEL GENTLE WASH
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PRICE
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PROMOTION
TV Advertisements
Newspaper articles
Promotional offers
Features housewives.
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uy a Whirlpool proeries washing machine& et 1 year's supply
f Surf Excel Matic*etergent FREE
Offer valid until stocklasts* :Disclaimer One year's
detergent here implies 6
.kgs As per IMRB survey of2998 the average annualconsumption of Surf Excel
Matic is approximately 6kgs
URF EXCEL MATIC OFFER
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Get a 16 litre bucket with Surf Excelblue 3.3 kg pack. MRP: Rs.380/-**(inclusive of all taxes)
Get Surf Excel quick wash 1kg and Comfortfabric conditioner 200ml bottle in a combo pack.Surf Excel quick wash removes stains and
Comfort gives 7 days long freshness to yourclothes. Surf Excel quick wash 1 kg Rs. 146 +Comfort fabric conditioner 200ml Rs. 29 =Rs. 175 Pay Rs. 163*/- for the combo pack andsave Rs. 12/-*(inclusive of all taxes)
urf Excel Blue Bucket Pack
urf Excel Quick wash Freshness Combo Pack
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JOURNEY OF RINDETERGENT
Rin was launched in a bar form in a testmarket in 1969 and extendednationally in 1970.
In the late 1980s, Rin faced its first realcompetition with the launch of low-price discount detergent bars. Atprices 60% lower than Rin,
The advertising campaign 'Zara sa Rin'went on to become a 'white - off-whitecrossover' was developed.
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This route was hugely successful in establishing a superior brand image.in the consumer's mind
the entry of Rin Shakti powder a highly aspirational brand was now.available at a very affordable price Proof of performance in the
-communication was depicted in the form of a wash rewash test where the.brand claimed to remove dirt from clothes washed with ordinary bars
Since then a continuous programme of product innovation and improvement.has taken place on the brand
, .In 2008 the brand came up with the promise of Double Whiteness Rinadopted the" , "Tagline Duguni Safedi Duguni Chamak
, "This year Rin came with another advertisement with a new tagline"Chamakte Rahna
Rin has already started promoting its new found positioning theme duringthe Dance Premier League where the contestants are made to say the
.tagline
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RIN
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INTRODUCTION
Introduced in 1970.
initially, positioned as - 'Rin is not asoap, it is a totally new idea for
washing clothes'. The benefits clearlyoutlined that the bar hadconcentrated cleaning power hencewashed 50% more clothes.
The memorable baseline 'Whitenessstrikes with Rin' was introduced and astrong brand property - the mnemonicof the lightning flash was developed.
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,In the late 1980s Rin faced its first real competition with- . %the launch of low price discount detergent bars At prices 60
, .lower than Rin they were positioned as a low sog product
.The brand has finally found its right positioning statementChamakte Rahna
Thetagline has a strong connection with the brand promise and at
the same time helped the. .brand to ladder up The ad is also very nicely made
.
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GROWTH
Today Rin has three variants: Rin Supremebar, Rin Shakti bar and Rin powder. RinSupreme and Rin Shakti operate at twodistinctly different price points. While the
Rin Shakti proposition is superiorwhiteness vis--vis mass- market, the RinSupreme proposition is superiorperformance to give whites that look likenew.
Rin Supreme bar was launched in 2002 asthe No mud bar. While ordinary barshave up to 40% mud-like ingredients, NewRin Supreme is made with patented PureClean technology to keep clothes looking
white like new for longer. Like a trueleader Rin has been successful
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.Early 2004 saw the advent of a brand new Rin Shakti powder RinShakti paved the way with a brand new proposition of double
whiteness along with a powerful innovation of No mitti powder as it dissolved thoroughly in water as opposed to ordinary
- .powders which left behind a mud like residue The suffix .Shakti has now been dropped from the powder pack
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MATURITY
Maturity stage
Rin is facing its toughest competitionin the form of Tide from P&G.
2005 Amitabh Bachchan was ropedin as brand ambassador (model) forthe brand. The ads were trying to
reinforce the positioning of Rin asthe premium detergent soap.