BCG Matrix of HUL

Introduction of HUL
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit. The Company has over 16,000 employees and has an annual turnover of around Rs. 21,736 crores (financial year 2011 - 2012). HUL is a subsidiary of Unilever, one of the worlds leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about 46.5 billion in 2011. Unilever has about 52% shareholding in HUL.

LUX: Lux is a star for HUL. Lux enjoy market share of 16%. this industry have high growth rate of 10%. HUL comes with different variants in Lux quite frequently in order to maintain their position. SUNSILK: Sunsilk is star for HUL HUL holds 47.8% market share in shampoo industry and SunSilk has 32% from it. FAIR & LOVELY: Fair & Lovely is star for HUL India has around 3000 crore of Skincare market, where HUL is a leader with estimated 70% market share and fair & lovely is around 60% share from it. SURF EXCEL: Surf excel is star for HUL. It has market share of 37% from 9000 crore market in detergent powder industry in India.

RIN: Rin is question mark for HUL HUL has market share of 37% from 9000 crore market in detergent powder industry in India and Rin have only 4.8%. PEPSODENT: Pepsodent is question mark for HUL HUL has market share of 30% in the 5000 crore plus oral care business in which 14% is comes from pepsodent.

DOMEX: Domex is question mark for HUL It has around 20% market share from toilet cleaner business WHEEL: Wheel is dog for HUL It has around 14% market share in detergent industry Major competitors - Nirma, Fena. AXE: Axe is cash cow for HUL Market share of 25% Major Competitors Nike, Park Avenue. Vaseline petroleum jelly: It is Cash cow for HUL Market share around 90% Major competitors Jonson & Johnson

Introduction of BCG Matrix

The BCG matrix method is based on product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. To ensure long term value creation, a company should have a portfolio of product that contain both high growth product in need of cash input and low growth products that generate lot of cash. It has two dimension: I. II. Market Share Market Growth

The basic idea behind it is that bigger the market share a product has or the faster products market grows the better it is for company.

STARS (high growth, high market share)

Stars are using large amounts of cash. Stars are leaders in the business. Therefore they should also generate large amounts of cash. Stars are frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold your market share in Stars, because the rewards will be Cash Cows if market share is kept

CASH COWS (low growth, high market share)

Profits and cash generation should be high. Because of the low growth, investments which are needed should be low. Cash Cows are often the stars of yesterday and they are the foundation of a company.

DOGS (low growth, low market share)

Avoid and minimize the number of Dogs in a company. Watch out for expensive rescue plans Dogs must deliver cash, otherwise they must be liquidated.

QUESTION MARKS (high growth, low market share)

Question Marks have the worst cash characteristics of all, because they have high cash demands and generate low returns, because of their low market share If the market share remains unchanged, Question Marks will simply absorb great amounts of cash. Either invests heavily, or sells off, or invests nothing and generates any cash that you can. Increase market share or deliver cash

BCG Matrix of HUL

Relative Market share (Cash Generation) HIGH LOW

STAR
LUX SUNSILK SURF EXCEL FAIR & LOVELY

QUESTION MARK
RIN PEPSODENT DOMEX

CASH COW
AXE Vaseline petroleum jelly

DOG
WHEEL