HUL BCG MATRIX

HUL BCG MATRIX

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  HUL 1 “We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.”
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  COMPANY’S PROFILE  Owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. HUL  Formed in 1933 as Lever Brothers India Limited.  India's largest consumer goods company based in Mumbai, Maharashtra.  Company was renamed in June 2007 as “Hindustan Unilever Limited”. 2
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  CONTINUED . .. . . .  Hindustan Unilever's distribution covers over 2 million retail outlets across India directly. HUL  Its products include foods, beverages, cleaning agents and personal care products.  Has an employee strength of over 16,500 employees.  Has annual turnover of around Rs.20736 crores in 2011-12. 3
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  WHAT IS BCGMATRIX?  BCG matrix is often used to prioritize which products within company product mix get more funding and attention HUL  It has 2 dimensions: MARKET SHARE & MARKET GROWTH and 4 category Stars, Cash cows, Dogs, Question marks ? 4
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  ASSUMPTIONS OF BCG 1. This matrix assumes that a larger market share in a growth market leads to profitability. An effort to obtain a large market share in a slowly HUL growing market requires too much cash. 2. The higher the growth rate, the easier to gain market share. 5
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  HUL 6
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   DOG  It has a small market share in a mature industry.  A dog may not require substantial cash because dogs have low market share and a low growth rate and thus neither generate nor consume a large amount of cash. HUL  QUESTION MARK (Problem Child)  It has a small market share in a high growth market.  Question marks are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash.  It has the potential to gain market share and become a star, and eventually a cash cow when the market 7 growth slows.
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   STAR  It has a large market share in a fast growing industry.  Stars generate large amounts of cash because of their strong relative market share, but also consume large amounts of cash because of their high growth rate. HUL  CASH COW  It has a large market share in a mature, slow growing industry.  As leaders in a mature market, they exhibit a return on assets that is greater than the market growth rate, and thus generate more cash than they consume.  Such business units should be "milked", extracting the profits and investing as little cash as possible. 8
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  HUL PRODUCT MIX Theentire product range of HUL can be visualized in terms of the following of the following segments:  FOOD BRANDS HUL (KISSAN, ANNAPURNA, KNORR, KWALITY WALLS, BROKE BOND, TAJ MAHAL)  HOME CARE BRANDS (SURF EXCEL, VIM, WHEEL, RIN, BLEACH, DOMEX)  PERSONAL CARE BRANDS (PEPSUDENT, CLOSE UP, AXE, REXONA, SUNSILK, DOVE , LIFEBUOY, LIRIL, LUX, PEARS, FAIR & LOVELY, LAKEME, PONDS, VASELINE, ETC.) 9
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  GROWTH AND MARKET SHARE HUL 10
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  MARKET GROWTH ANALYSIS HUL 11 Figures are acc. To CII survey, braket are for previous figures.
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  MARKET SHARE ANALYSIS HUL 12
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  HUL 13
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  BCG OF HUL HUL 14
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  HUL PRESENTED BY: RAHUL BANGA RACHITAMOHANTY EKTA UNIYAL GURJANT SINGH SANDHU 15