PRESENTED BY

KASHMALA MUKHTIAR
ID NO:6440
shahzadkhan.lecturer@gmail.com

MAJOR PRESENTATION

INTRODUCTION- HUL
Hindustan Unilever Limited (HUL) is India's
largest FMCG company, touching the lives of two
out of three Indians with over 20 distinct
categories in home & personal care products and
food & beverages. They endow the company with
a scale of combined volumes of about 4 million
tonnes and sales of over Rs. 13,000 crores

HUL BRANDS IN
THE BATHING SOAP CATEGORY
LUX
Lifebuoy
Dove
Hamam
Pears
Liril
Breeze
Rexona

VISION STATEMENT
We help people around the world meet
everyday needs for nutrition, hygiene
and wellbeing, with brands that help
people look good, feel good and get
more out of life..

MISSION STATEMENT

Mission is to add vitality to life

INTRODUCTION-LUX
1960
LUX went
colored

1929
LUX launched
in India

1916
LUX launched
in USA as
Laundry soap

1925
LUX launched
in USA as
Toilet soap

SEGMENTATION

On Age- 16-35 years

Based on Income- Middle income Group

Gender- Female

POSITIONING
Over

the years positioned as a

beauty soap of the Stars

SHIFT IN POSITIONING FROM STARS TO

COMMON GIRL

INTERNAL ASSESSEMENT
The internal assessment is done by collecting
information from six ways .
Management
Marketing
Finance
Operations
Research and Development
Management information system

MANAGEMENT

MARKETING
Creating and building demand.
second-largest advertiser in the world.
long-standing social missions.

FINANCE

Finance has direct input into our long, medium

and short-term plans as well as our cost reduction
programmes and innovation projects.

PRODUCTION/OPERATIONS

Improve performance
Developing an understanding

RESEARCH AND DEVELOPMENT

Discover delivers functional benefits through
new product technology
Design creates winning products, packages and
claims
Develop implements mixes for local markets.
Location situated in the Bangalore.

MANAGEMENT INFORMATION SYSTEM

Management Information System in the various
level of managerial approach.
The operational level
The knowledge level
The management level
The strategic level

EXTERNAL ASSESSMENT
They

followed Marketing Research

System for the external assessment

STRENGTHS
Brand image
Number of verities
Excellent marketing department
Assisted by a highly regarded
Marketing research unit
Financial backing
Large scale force
Effective and attractive packaging
The brand has innovative sale promotions tactics

WEAKNESS

Loss of market share to some of its own product as

Rexona.
Tall structure.
Huge cost and expenses.
Emphasizing only few products while ignoring others
which could give them potential market share e.g
beverages section.
The wear rate of the soap is very high it gets mushy and
soggy quickly.
Some of its advertisements have been quite controversial.

OPPORTUNITIES
High rate of population growth.
People are becoming more conscious.
Innovation in unilever may creates opportunity to
more penetrate in the market.
Unilever Hindustan has opportunity to develop new
markets by identifying the needs of customer.
Products diversification would also help the brand
greatly .
Explore new markets.

THREATS
Possible increase of market share of pears etc.
Rising inflation.
Reduces personal disposable of consumer.
Their may be imitation of products in India which
may damage the goodwill of unilever Hindustan
limited.
Purchase the products of foreign companies
Local companies

Proposed Strategies
Concentric Diversification
Horizontal Diversification
Product Development
Forward Integration

Strength-S
1.
2.
3.
4.
5.

Weaknesses-W

Brand Image
1.
Number of Products
2.
Excellent marketing dept. & 3.
marketing research unit
4.
Financial Backing
ExperiencedTop
5.
Management
6.

Tall Organization Structure

High Operating Expenses
High Cost of Production
Increasing Number of Small
Competitors
Unbranded Products
Gets mushy and soggy quickly

Opportunities-O
1.
2.
3.
4.
5.

Hygiene Consciousness
Increasing Population
Innovation (R&D)
Product Diversification
Explore New Market

SO Strategies

WO Strategies

Introduce product for gents and Introduce lux Shampoo

kids.
And lux face wash
(S1,S3,S4,O3,O4)
(W4,W5,O2,O3,O5)

Threat-T
1.
2.
3.

4.
5.

Rising inflation, decrease

in purchasing power
High taxation
Distribution and retailer
ship can create problems
any time
Possible
negative
publicity
Competitors Soap

ST Strategies
They must have
distribution channel
(S4,T3)

WT Strategies
their

own They should improve the quality of

their soap
(W6,T5)

S
P
A
C
E
M
A
T
R
I
X

Internal Strategic Position

External Strategic Position

Financial strength (FS)

Environmental Stability (ES)

ROI (35% )
Leverage (1414537)
Cash flow ( 137005)
Earnings per share (116.14)
Total

+2
+2
+4
+4
12

Technological changes
Rate of inflation
Competitive pressure
Barrier to entry into market
Total

Average
3

Average
-2.5

Competitive Advantage(CA)

Industry Strengths(IS)

Market share
Product Quality
Customer Loyalty
Technology know-how
Total

Average
-3
X-axis: -3+ 3.75 = +0.75
Y-axis: 3+ (-2.5) = +0.5

-4
-3
-3
-2
12

Growth potential
Profit Potential
Resource utilization
Financial stability
Total

Average
+3.75

-1.5
-2.0
-3.5
-3.0
-10

+3
+4
+4
+4
15

SPACE
MATRIX:

FS

Be +6
Conservativest +5
+4
+3
+2
Wor +1
st

CA

-6 -5 -4 -3 -2 -1

-1

Aggressive
Product
development
Forward integration
Concentric

diversification
Horizontal
diversification

+1 +2 +3 +4 +5 +6

Best-2
-3

Defensive

-4
-5
Worst-6

ES

Competitive

IS

Markte Share
40%

60%

Lux

Lu
x

Other

 As

the growth is declining in the existing market

so the company can go for Concentric
diversification and make soap for gents and kids
as well through which they can increase their
growth and can generate more revenues,
The company can also go for Horizontal
Diversification i.e. they can produce shampoo in
order to earn more amount.

GE MATRIX OF LUX
Industry
Attractiveness

Business Unit Strength

Strong

Average

Weak

High

Grow

Grow

Hold

Medium

Grow

Hold

Harvest

Low

Hold

Harvest

Harvest

Strategic Alternatives

Key Factors:

Weight

Product Dev

Con. Div

Forward Integ.

Horizontal Div

3
4

Fix
1
2

EXTERNAL FACTORS
Develop the product quality
Should have Own distribution channels

5
5

3
3

An increase in products for kids

5
2

4
5

The local companies

5
Rising inflation, this reduces disposable income of 5
consumers
Gents are also brand and skin conscious
5
Rural area market to expand
5

3
3

3
3

4
3

3
3

1
1

3
3

6
7

3
3

INTERNAL FACTOR

Consumer loyalty

Market share is 64%

Strong financial position

Good promotion strategies

Only focus female, should introduce products for 5

gents and kids
Gets mushy and soggy quickly
5
65

2
38

2
29

1
40

50

Plan A

Plan B

Decision on the
basis of QSPM
From the analysis we conclude that
the company should choose
Product Development as Plan A
and if any problem lies in
implementation, they can go for
Horizontal Diversification
as Plan B.