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K.GOVINDARUNK.GOVINDARUNMBA MBA
PERIYAR UNIVERSITY,SALEMPERIYAR UNIVERSITY,SALEM
Vision & MissionVision & Mission
VISION STATEMENTVISION STATEMENT
Outstanding stain removal ability on a wide range of stains. Give the acute water scarcity in most of India.
MISSION STATEMENTMISSION STATEMENT
Unilever's mission is to add Vitality to life.
INTRODUCTION TO HUL
Lever brothers is founded by WILLIAM HESKETH LEVER in 1890
Key player in food & household product industry
Historically grew through acquisitions
LEVER BROTHERS, THE OLD NAME WAS CHANGED INTO UNILEVER AFTER THE MERGER OF LEVER BROTHERS & MARGARINE UNIE IN 1930
Contd……..
UNILEVER IS A MULTI NATIONAL COMPANY
IT IS ONE OF THE LARGEST CONSUMER GOODS COMPANIES IN THE WORLD
ITS BRANDS ARE ON SALE IN 151 COUNTRIES
It is the oldest detergent to be present in INDIASince 1960. It believes that children must be free to experiencetheir LIFE for themselves…First detergent powder in India was DET.Then SURF came with its strong sales promotion,
advertisement and distribution width.Followed by TOMCO’S MAGIC and then NIRMA.
BRAND EVALUTION
HISTORY:-
Launched in 1959 & first in Indian detergent powder market. It was the first Fast Moving Consumer Goods (FMCG) for Detergent. Brand to set up a one-stop shop - called Care line - for people seeking solutions to their varied laundry problems. Surf was the first brand of detergent that was advertised on TV. It is advertise on more than
300 channels across the globe . Introduced the concept of bucket wash to housewives who were used to washing clothes
with laundry soap bars.
Some Facts….
To Approx 4000 crore detergent market is amongst the largest FMCG categories in India, next only to edible oils and biscuits.The Indian market for detergent is amongst the largest in the world.
Some Facts….
Reasons of migrationSurf to Surf excel
Surf became known only for whiteness Surf Excel (stain removal) : Positioned
with the baseline ‘removes stain without fading colours’ (Surf Excel Hai Na..)
To boost its image as that of a modern and contemporary brand.
External Factors - IndiaExternal Factors - India
Demographic factorsDemographic factors
Large population base – 1.14 billion
High birth rate- 21.76 births/1,000 population
Population migration trend-from rural to urban
Over a period of 90 years, the rural population increased from 213Mn – 629Mn
Increase in Urban population(More than eight times-from 26 Mn to 218Mn )
Increase in working women due to economic development
Increasing literacy levels
Growing population of middle- and upper-middle class
Economic factorsEconomic factors
Growing economy – Increased purchasing power of middle class
NABARD has set up a refinancing window with a corpus of US$
204.92 million for agro processing infrastructure and market
development.
FMCG Sector expected to grow by over 60% by 2010
100% FDI allowed in FMCG sector
Political & LegalPolitical & Legal
India is a stable democracy
Moderate regulations by government in FMCG sector
Competitive Competitive factorsfactors
SubstitutesSubstitutes are available for Surf Excel in the names of HUL ( blue,matic) Nirma P&G ( Tide, Aerial) Henkel India (Mir, persil, porwall,vernel,purex) Reckitt Benckiser ( Varnish) Omo Bonux Sunlight Rin Domex
PRODUCT MIX OF SURF EXCELPRODUCT MIX OF SURF EXCEL
HUL have three brands in laundry category.. 1. Surf excel 2. Rin 3. Wheel In 2006 Rin supreme bar was replaced by surf excel
bar. Mainly targeting mothers and children Positioning as every type of stain removal. Surf Excel is available in 3 variants: Surf Excel Blue,
Surf Excel Quick Wash and Surf Excel Automatic.
PRODUCT
SURF EXCEL Advance Tropical Small & mighty Automatic Blue detergent Quick wash
To continue market leadership 37.8% in Indian market.
Approaching new markets. Launching product extensions. Maintain brand loyalty. Increase frequency of usage. Launching variants in the washing machine category.
- 4 Ps- 4 Ps
RANGE & PRICEOF PRODUCT
2KG 1KG 500G 115G 50G 25G Rs405 Rs210 Rs115 Rs20 RS10
Rs5
A comparison of cost price with sale price of Products in product line
Quantity Cost Price in Rupees
Sale Price in Rupees
25 4.7 5
50 9.5 10
115 19 20
500 110.5 115
1000 199.5 210
2000 385 405
PRICING STRATEGY
Primary :1. Cost-plus pricing : Mark-up to the cost of the product2. Competitive Pricing : Price dependent upon price of the
competitors.
Secondary : 1. Customer-Segment Pricing.
DISTRIBUTION PRICING STRATEGY:
FOR EXAMPLE:List price Rs. 100Add: Distributor price (5%) Rs. 105Add: Trade price (5%) Rs. 110.25Final Retail price (10%) Rs. 121
SUPPLY FOR THE PRODUCT
Supply channel : Distributers. wholesalers. Retailers.
Cheaper price range of Rs.2 to Rs.450 Very good geographical distribution across whole India. Both Urban and Rural market segment covered.
Distribution channel
SURFEXCEL-STP
Segment
Home Care – Premium Detergent – Bar, Powder, Matic.
Target Group
Every Indian Household – for washing purposes.
Positioning
Surf Excel has constantly upgraded itself over the years, to
answer the constantly changing washing needs of the
Indian homemaker
POP Promotion POP Promotion
SWOT FOR SURF EXCEL
STRENGTHS
Strong Brand Portfolio Quantity and Variety Solid Base of the Company Innovative Aspects Unique Selling Points High quality Reach of the products social responsibility of the company Competitive advantages Success of the Slogan - 'Dirt is Good'
WEAKNESSES
Strong Competitors High Price of the Product Substitute Product Policy of Spending for the Social Responsibility Financials of the company Lack of control in the markets Lack of Reliability of data, plan predictability Lack of Competitive Strength
OPPORTUNITIES
Indian market for FMCG is growing @ 20% Niche target market. Market penetration Geographical export Changing lifestyle of the people New markets, vertical, horizontal Increasing the volume of production Seasonal Weather & Fashion influences Geographical Export & Import Niche Target Market Business and product development Technology Development & Innovations Applying tactics & surprise
OPPORTUNITIES TO GROW CONSUMPTIONS
THREATS
Cheaper product eat into HUL market share. Competitor trade strategy. Urban consumer are shopping less. Product from it’s own stable. Political effects Legislative effects Environmental effects Economic Crisis Change in the lifestyle Introduction to Local Products Obstacles faced Increase in production and labour cost Chances of Price War
MARKET STRUCTURE
Type of market : OLIGOPOLY
Oligopoly = An oligopoly is a market form in which a market or industry is dominated by a small number of sellers (oligopolists)
Because there are few sellers, each oligopoliest is likely to be aware of the actions of the others. The decisions of one firm influence, and are influenced by, the decisions of other firms.
RESTRICTED MARKET.
AVAILABILITY OF VARITIES.
SELLING COST.
SIMILAR PRODUCTS.
STABLE MARKET.
PRICING.
Way aheadWay ahead
Way aheadWay ahead
Way aheadWay ahead
CHILD DEVELOPMENTCHILD DEVELOPMENT
Way aheadWay ahead
RECYCLINGRECYCLING
Experienced players.
Competitive advantage with well laid distribution
and retail network.
Innovative advertising approaches.
Willingness to venture out with new variants.
THE END
THANK U