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STUDY OF THE BCG MATRIX FOR HINDUSTAN
UNILEVER LIMITED.
RAJALAXMI. RAJAMANICKAM
MCOM (B&F) PART -1
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EXECUTIVE SUMMARY
The BCG matrix is a chart developed by Bruce Henderson for Boston Consultancy
Group in 1968. The matrix uses market growth rate and market share as the
parameters for analyzing the portfolio of any organization.
The project specifically demands the study of BCG matrix for Hindustan Unilever
Limited (HUL). HUL marked the initiation of marketing branded fast moving
consumer goods (FMCG). In 1931, Unilever set up its first Indian subsidiary,
Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India
Limited (1933) and United Traders Limited (1935). In November 1956, these three
companies merged to form Hindustan Unilever Limited (then known as Hindustan
Lever limited).
Hindustan Unilever was recently rated among the top four companies globally in
the list of Global Top Companies for Leaders by a study sponsored by Hewitt
Associates, in partnership with Fortune magazine and the RBL Group.
The company was ranked number one in the Asia-Pacific region and in India. HUL
have an extremely wide market exposure with over 35 brands spanning across 20
distinct categories such as soaps, detergents, shampoos, skin care, toothpastes,
deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers.
HULs brands -- like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Suns
ilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna,
Kwality-Walls - are household names across the country and span many categories
- soaps, detergents, personal products, tea, coffee, branded staples, ice cream and
culinary products
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OBJECTIVES
Every research is bound with the prerequisite of devising certain objectives
that are going to shape up and guide the path of research. In respect of this project
the following objectives are being laid down,
1. To identify the product mix of HUL.
2. To analyze the product portfolio of HUL with respect to BCG matrix.
3. To highlight and recommend effective strategies for manoeuvring within the
BCG matrix.
The project will try to cover almost all the categories and label the entire
product range into following characterized quadrants of BCG matrix,
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RESEARCH METHODOLOGY
The research will be based upon the secondary sources of data as the purview of
the research is restricted to application of the BCG concept onto HUL involves
neither the discovery nor the evaluation of effectiveness.
In order to achieve the first objective secondary sources of data will be referred i.e.
books, internet, magazines, articles, websites, etc.
To fulfill the last two objectives, the help of hard facts and statistical data will be
taken, for such data collection various market surveys will be helpful. The data will
be analyzed and valuable inputs will be given in form of suggested strategies.
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CHAPTER 1: BCG MATRIX
BRIEF HISTORY OF BOSTON CONSULTANCY GROUP
The Boston Consulting Group was started up in 1963 by Bruce Henderson. Boston
Consulting Group was founded as the Management and Consulting Division of the
Boston Safe Deposit and Trust Company - a subsidiary of The Boston Company.
In 1968, The Boston Company spanned off BCG as a separate subsidiary. In 1965
Henderson thought that to survive, much less grow, in a competitive landscape
occupied by hundreds of larger and better-known consulting firms, a distinctive
identity was needed, and pioneered "Business Strategy" as a special area of
expertise for BCG. At some point he was said to have eclipsed McKinsey as the
top recruiter at Harvard, aggressively wooing its best students with high salaries
and the chance to make a difference in a cutting-edge firm In 1973 Bill Bain and
others left BCG to form Bain & Company, and two years later Henderson arranged
an employee stock ownership plan (ESOP), so that the employees could take the
company independent from The Boston Safe Deposit and Trust Company. The
buyout of all shares was completed in 1979.
In 1998 BCG created The Strategy Institute. Its purpose is to enrich the firm's
strategic thinking by applying insights from a variety of academic disciplines to the
strategic challenges facing both business and society.
The Boston Consulting Group (BCG) ranked 8th overall and first among smaller
companies in Fortune Magazine's 2007 "100 Best US Companies to Work For"
survey, based on strong employee development, a supportive culture, and
progressive benefits.
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BCG GROWTH-SHARE MATRIX
The model, the BCG matrix or growth/share matrix, was based on the Boston
Consulting Groups knowledge and work in the area of the experience curve and of
the product life cycle and how they relate to cash generation and cash
requirements.
The BCG Growth-Share Matrix is based on the observation that a company's
business units can be classified into four categories based on combinations of
market growth and market share relative to the largest competitor, hence the name
"growth-share". Market growth serves as a proxy for industry attractiveness, and
relative market share serves as a proxy for competitive advantage.
The BCG Growth-Share Matrix positions the various SBUs/product lines on the
basis of Market Growth Rate and Market Share relative to the most important
competitor as shown below.
1. Relative market share
This indicates likely cash generation, because the higher the share the more
cash will be generated. As a result of 'economies of scale' (a basic
assumption of the BCG Matrix), it is assumed that these earnings will grow
faster the higher the share. The exact measure is the brand's share relative to
its largest competitor. Thus, if the brand had a share of 20 percent, and the
largest competitor had the same, the ratio would be 1:1. If the largest
competitor had a share of 60 per cent, however, the ratio would be 1:3.
The reason for choosing relative market share, rather than just profits, is that
it carries more information than just cash flows. It shows where the brand is
positioned against its main competitors, and indicates where it might be
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likely to go in the future. It can also show what type of marketing activities
might be expected to be effective.
2. Market growth rate.
The reason for this is often because the growth is being 'bought' by the high
investment, in the reasonable expectation that a high market share will
eventually turn into a sound investment in future profits.
The theory behind the matrix assumes, therefore, that a higher growth rate is
indicative of accompanying demands on investment. This is outside the
range normally considered in BCG Matrix work, which may make
application of this form of analysis unworkable in many markets.
Where it can be applied, however, the market growth rate says more about
the brand position than just its cash flow. It is a good indicator of that
market's strength, of its future potential
(Of its 'maturity' in terms of the market life-cycle), and also of its
attractiveness to future competitors. It can also be used in growth analysis.
The Boston Consulting Group developed this model for managing a
portfolio of different business units (or major product lines). The BCG
growth-share matrix displays the various business units on a graph of the
market growth rate vs. market share relative to competitors:
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Star - a business unit that 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.
Question Mark (or Problem Child) - a business unit that 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. A question mark (also known as a "problem child") has
the potential to gain market share and become a star, and eventually a cash cow
when the market growth slows. Question marks must be analyzed carefully in
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order to determine whether they are worth the investment required to grow market
share.
Cash Cow - a business unit that has a large market share in a mature, slow
growing industry. Cash cows provide the cash required to turn question marks into
market leaders, to cover the administrative costs of the company, to fund research
and development, to service the corporate debt, and to pay dividends to
shareholders. Cash cows require little investment and generate cash that can be
used to invest in other business units.
Dog - a business unit that 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.
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 growing market
requires too much cash.
2. The higher the growth rate, the easier to gain market share.
Limitations / problems of the BCG Matrix
1. The problems of getting data on the market share and market rate
2. There is no clear definition of what constitutes a market.
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3. A high market share need not necessarily lead to profitability all the time.
4. The model employs only two dimensions market share and growth rate. This
may tempt management to emphasis a particular product or divest prematurely.
5. Low share businesses can be profitable too.
6. It considers the product or SBU only in relation to one competitor: the market
leader. It misses small competitors with fast growing market shares.
Uses / Application of BCG Matrix
1. If a company is able to use the experience curve to its advantage, it should be
able to manufacture and sell new products at a price low enough to get early
market share leadership. Once it becomes a star, it is destined to be profitable.
2. BCG model is helpful to management in evaluating the firm's current balance
among stars, cash cow, problem child and dogs.
3. BCG model is applicable to large companies that seek volume and experience
effects.
4. The model is simple and easy to understand.
5. It provides a base for management to decide upon and prepare for contingent
future courses of action.
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CHAPTER 2: HINDUSTAN UNILEVERLIMITED
History of Hindustan Unilever Limited
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goods Company; its journey began 75 years ago, in 1933, when the company was
first incorporated. The company stirring the lives of two out of three Indians with
over 20 distinct categories in Home & Personal Care Products and Foods &
Beverages and also one of the country's largest exporters. HUL's brands includes
Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic,
Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality
Wall's - are household names across the country and span many categories - soaps,
detergents, personal products, tea, coffee, branded staples, ice cream and culinary
products. They are manufactured in over 40 factories across India.
In the late 19th and early 20th century Unilever used to export its products to India.
This process began in 1888 with the export of Sunlight soap, which was followed
by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim soon after.
1. In 1931, HUL set up its first Indian subsidiary, Hindustan Vanaspati
Manufacturing Company, followed by Lever Brothers India Limited in the
year 1933 and United Traders Limited in 1935.
2. In 1956, these three companies merged to form Hindustan Unilever Limited.
HLL offered 10% of its equity to the Indian public, and it was the first
among the foreign subsidiaries to do so.
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3. In the year 1958 the company started its Research Unit at Mumbai Factory
namely The Hindustan Unilever Research Centre (HLRC).
4. .In the year 1962 the company's Formal Exports Department was started and
HUL recognized by Government of India as Star Trading House in Exports
in 1992.
5. A turning point to the company was guaranteed in the year 1993, HUL's
largest competitor, Tata Oil Mills Company (TOMCO), merges with the
company with effect from April 1, 1993, the biggest such in Indian industry
till that time. Merger ultimately accomplished in December 1994.
6. HUL formed Nepal Lever Limited in 1994, HUL and US-based Kimberley-
Clark Corporation form 50:50 joint venture as Kimberley-Clark Lever Ltd to
market Huggies diapers and Kotex feminine care products. Factory was set
up at Pune in 1995.
7. HUL acquired Kwality and Milk food 100% brand names and distribution
assets accordingly HUL introduced Wall's.
8. The company and Indian cosmetics major, Lakme Ltd came to joint ventures
and formed Lakme Lever Ltd and HUL recognized as Super Star Trading
House in 1995.
9. A group company, Pond's India Ltd was merged with HUL on January of the
year 1998.
10. In 2001, the company embarked on an ambitious programme, Shakti.
Through Shakti, HUL is creating micro-enterprise opportunities for rural
women, thereby improving their livelihood and the standard of living in rural
communities.
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11. The company's spotlight was turned on to Ayurvedic health & beauty, HUL
entered Ayurvedic health & beauty centre category with the Ayush range and
Ayush Therapy Centres 2002.
12. During the year 2003 the company launched Hindustan Lever Network, a
strong initiative by the company worth of Rs. 1800 crore for Direct Selling
Channel.
13. In line with company's business strategy to exit non-core business, the
Company has disposed its Mushroom business, which formed part of KICM
(Madras) Ltd and its Seeds Business also in the year 2004.
14. As of December 2005, Lever India Exports Ltd, Lipton India Exports Ltd,
Merry weather Food Products Ltd, Toc Disinfectants Ltd and International
Fisheries Ltd was merged with the company, both the five companies are wholly
owned subsidiaries of the company and Vasishti Detergents Ltd (VDL) came in to
fold of the company as a result of amalgamation of the Tata Oil Mills Company
Ltd, VDL was merged with the company in February, 2006.
15. In February 2007, the company has been renamed to "Hindustan Unilever
Limited" to strike the optimum balance between maintaining the heritage of the
Company and the future benefits and synergies of global alignment with the
corporate name of "Unilever".
16. During 2008, Unilever announced its collaboration with the Indian Dental
Association (IDA) in conjunction with World Dental Federation (FDI) through its
Pepsodent, leading oral care brand to help improve the oral health and hygiene
standards in India.
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COMPANY VISION
The four pillars of our vision set out the long term direction for the company
where we want to go and how we are going to get there:
1. We work to create a better future every day
2. We help people feel good, look good and get more out of life with brands
and services that are good for them and good for others.
3. We will inspire people to take small everyday actions that can
4. Add up to a big difference for the world.
5. We will develop new ways of doing business with the aim of doubling the
size of our company while reducing our environmental impact.
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CHAPTER 3: DATA ANALYSIS BCG MATRIX OF
HUL
MARKET GROWTH RATE ANALYIS:
The table 4.1 clearly depicts the various FMCG sectors in which the industries are
performing at a high rate, moderate rate and a low rate of growth. Since the entire
FMCG sectors growth rate is calculated to be 13%, thus this 13% benchmark will
be used to distinguish between the industries (w.r.t. HULs products) with high
growth rate and low growth rate.
High Growth Rate Industries Low Growth Rate Industries
Deodorant
Anti-Ageing Cream
Tooth Paste
Skin And Fairness Cream
Mens Fairness Product
Cleaners
Dish Wash
Detergent Powder
Toilet Soaps
Processed Food
Packed Wheat Flour
Tea Bags
Washing Cakes
Ice Creams
Shampoos
Toothpowder
Liquid Soaps
Shaving Products
Jam & Jellies
Moisturizing Creams
Packed Branded Tea
Coffee
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RELATIVE MARKET SHARE ANALYSIS:
The table 4.2 provides the relative market value of HUL products in comparison
with the largest competitor for the individual products. The market leader position
occur when the relative market value crosses 1.0 because then the organizations
market share in terms of sales is above that of its largest competitor. The bigger the
value (>1.0) the higher market share that product has and is more preferably placed
on the extreme of the BCG matrix.
High Market Share Low Market Share
AXE Deodorant
Fair & Lovely Fairness Cream
Wheel
Surf Excel
Lifebuoy
Lux
Clinic Plus
Sunsilk
Vaseline
Kissan Jam
Vim
Kwality Walls
Lipton28
Red Label
Knor Soups29
Close Up
Pepsodent
Fair & Lovely Menz Active
Domex
Rin
Dove Shampoo
Annapurna
Taj Mahal Tea Bags
Kissan Ketchup
Bru
Breeze
Taaza
Brooke Bond Sehatmand
Knor Meal Maker Range
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On the basis of above mentioned analysis, almost every product of HUL
is being analysed against the industry to which it belongs and then
placed in one of the 4 quadrants of BCG matrix.
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CHAPTER 4 : PRODUCT MIX OF HUL
(OBJECTIVE I)
The entire product range of HUL can be visualized in terms of the following of the
following segments12:
1. FOOD BRANDS
2. HOME CARE BRANDS
3. PERSONAL CARE BRANDS
I. FOOD BRAND SEGMENT:
HUL is one of Indias leading food companies. Its passion for understanding what
people want and need from their food - and what they love about it - makes its
brands a popular choice. The category that this segment tends to cover includes;
1. TEA13: A. 3 ROSES: The 3 Roses tea of HUL is known for its perfect colour,
strength and aroma that create a perfect tea moment. Being marketed while
keeping in mind the couples, it portrays itself as an essential drink with which they
can spend time talking about the everyday issues that matter to them.
Key facts
1. 3 Roses is a 30 year old regional brand and is the market leader in Tamil
Nadu.
2. It is one of the largest FMCG brands in Tamil Nadu across categories.
It has a strong presence in both in home and out of home segments.
B. RED LABEL: Red Label is for the housewife who seeks to bring her family
together over a cup of great Red Label with its perfect strength taste and colour.
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Key facts
a) Red Label is a 107 year old brand and has tremendous equity and heritage in
the Indian market.
b) It is the second largest tea brand in the country.
c) The oldest and largest brand in the Brooke Bond portfolio in India
d) It has both leaf and dust variants, as well as a health and immunity variant -
Red Label Natural Care. Red has also launched a premium variant under the
name Red Special.
C. TAAZA: Brooke Bond Taaza entered the lives of the contemporary Indian
housewife in the 1990s. And over the years, Taaza has found a place, not just in
her home but also in her heart. Taaza is a unique and refreshing blend of tea that's
sprinkled with fresh green tea leaves. It's her daily cup of joy that helps her to
refresh and connect with her inner self and aspirations.
Key facts
a. Taaza is a 20 year old brand with strong presence in North, West and
Eastern India.
b. It is the 3rd largest tea brand in the country with a portfolio spanning in both
leaf and dust segments.
c. It has a strong presence in the out of home segment in South India.
D. TAJ MAHAL: Brooke Bond Taj Mahal- Indias best tea since 1966. For over
four decades, Taj Mahal has been the gold standard of tea in India. It has been a
pioneer of innovations in the Indian tea market. Taj Mahal was the first to
introduce tea bags and also the first to usher-in new formats like instant tea and
dessert tea. Taj Mahal is special because it is made from the rarest and the best tea
leaves.
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Key facts
a
decade, exemplifying both discernment as well as the pursuit of excellence.
E. LIPTON: Lipton Yellow Label is a premium, full-bodied tea, made out of the
finest teas, perfect for the healthy Indian .Lipton Yellow Label has a unique
blend that has
22 high levels of natural Theanine, which along with other goodness of tea can
help you, clear your mind. The range also contains, Lipton Clear Green tea, which
combines the goodness of antioxidants and purifying effect of water to help
cleanse your body naturally.
F. Brooke Bond Sehatmand: The primary reason to introduce Brooke Bond
Sehatmand, a Vitamin Fortified Tea was to allow people to have access to a
healthier yet affordable product. Three Cups of BB Sehatmand guarantees delivery
of 50 % of the Recommended Dietary Allowance (RDA) of added B Vitamins,
required by a person.
Key facts
Tea brand enriched with Vitamins, The first tea of its kind to address vitamin
intake gaps among the masses.
Vitamins.
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2. COFFEE:
A. BRU: Bru has been on a constant Endeavour to bring better products and
formats to the consumer with every passing year. With the launch of Cappuccino
in 2007, Bru pioneered the launch of instant coffee premixes in India for the youth.
Burs specially selected and freshly roasted coffee beans offer a great cup of
aromatic coffee that makes those moments of genuine warmth and happiness even
more special
Key Facts
1. Number 1 Coffee brand in India
2. Unilever's only Coffee brand
3. Enjoys a rich heritage, came into existence in 1962 under the brand name
Deluxe Green Label
4. Consistently offering better and newer products to the consumer through
improved packaging solutions and innovative product formats.
KISSAN: Kissan is being projected to be the brand which will help dissolve
tension between mother and the family during informal good food moments.
Kissan acts as a catalyst, easing stressful moments at the dining table. With Kissan,
good food is loved not shoved!
Key facts
1. Kissan is in its 62nd year of its existence in India.
2. Category leaders in India
II. HOME CARE BRAND SEGMENT:
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1. ACTIVE WHEEL: Indias largest detergent brand, Wheel, aims to bring
delight back into the lives of lacks of women across India, by giving them a
magical wash experience of lemons and thousands of flowers.
Key Facts
a. The largest selling detergent brand in India.
b. Used by over 1 in 2 households in India
c. Famous for using Bollywood stars as its Brand Ambassadors.
2. RIN: It plays an integral part in enabling us to look good by providing
demonstrably superior whites, giving us the confidence to realize our ambitions.
Key Facts
a. Rin was launched in India as a bar in 1969 with the iconic lightning
mnemonic.
b. Rin powder was launched in 1994 as Rin Power White
c. Rin Matic for washing machines, launched in July 2008
3. SURF EXCEL: A pioneer in the Indian detergent powder market, Surf
Excel has constantly upgraded itself over the years, to answer the constantly
changing washing needs of the Indian homemaker.
III. PERSONAL CARE BRAND SEGMENT:
1. SOAP: The soap segment of HUL comprises of various brands catering to
different customer base.
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A. BREEZE: Breeze makes use of a new revolutionary global technology which
enhances the impact of world class perfumes in a much larger way, apart from
bringing out the goodness of glycerin.
B. LIRIL: New Liril 2000 makes every part of your skin come alive with
freshness. Its combination of lime extracts and tea tree oil freshens and cleanses
skin. Liril keeps skin germ-free and so beautiful that you cannot resist touching
it.
Key facts
A. one of the oldest soap brands in India
B. A brand that has been consistent in bringing alive freshness
C. A brand that has managed to create breakthrough advertising over the
years.
C.LUX: Lux stands for the promise of beauty and glamour as one of India's most
trusted personal care brands.
Key facts
1. The brand name Lux has been derived from Luxury
2. Since Leela Chitnis in 1929, Bollywood beauties throughout ages have
appeared in Lux commercials. Till date nearly 50 Bollywood heroines have
featured in Lux ads.
3. The first bar of Lux was made in India and sold for a princely sum of two
annas in 1934.
D. LIFEBUOY: It is an undisputed market leader for 112 years, has a compelling
vision to make 5 billion people across the world, feel safe and secure by meeting
their personal care hygiene & health needs
Key facts
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1. Undisputed Leader in the soaps market of India, with 18.4% shares.
2. Turnover of 350 million a year globally, 200 million in India.
3. Recent Awards: Voted in the top 10 most trusted brands in India in the
Brand Equity Survey (came in at No. 9 in 2008 as well) Marketing
excellence awards for its recent innovations and activations: Gold at the
Envies 2008 for best use of media innovation .ASIA Pacific CSR Award
2007, for Lifebuoy Swarthy Chetna.
E. PEARS: With the goodness of glycerine & natural oils, Pears is trusted
for being gentle, and is recommended by doctors and paediatricians
worldwide. It keeps your skin soft and smiling with innocence. It is so pure
that you can actually see through it!
Key facts
a. Pears were first made in 1789 by Andrew Pears in London. This is from
where it derived its name!
b. The most famous Pears 'face' is 'Bubbles', from an original painting by Sir
John Everett Millais in 1866. The painting later became to be the very first
advertising on the brand!
c. Pears are the worlds first registered brand and it is in existence continuously
since then.
2. DOVE: Since 1993, Indian women have relied on Dove for beautiful skin.
Dove is known to be a keeper of promises and has given real products to women
world over. To help you enjoy your own brand of beauty, Dove provides a wide
range of personal care, hair care, skin care and deodorants
Key facts
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in 1957; is one of the leading brands of Unilever
globally.
products from bar, lotions, body washes, face care and creams.
Fastest growing hair category brand in India.
3. ORAL CARE: HUL owns two major brands in the oral care segment with
toothpaste as its major product. These are;
A. PEPSODENT: It has a range of toothpastes and toothbrushes that could take
care of specific oral care needs. Pepsodent toothpaste fights germs to protect teeth
against cavities and gives strong teeth, fresh breath and healthy gums.
Key facts
by FDI (the largest dental association globally)
Range
Pepsodent Germ check+ Pepsodent Whitening Pepsodent 2in1
Center Fresh Pepsodent Gum Care Pepsodent Sensitive Pepsodent Kids
B. CLOSEUP: The brand has always had a youthful communication, one that has
always been unique and fun; using music, song and dance to get its message
across. It is aimed at every person who is young at heart.
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Key facts
launched in 1980
-segment for almost 3 decades
-day stars like John Abraham, Deepika
Padukone, Salman Khan, etc. are some of many who have been models of Closeup
in the early days of their careers)
Range
Close up Red Lemon Mint Menthol Milk Calcium
4. HAIR CARE: The hair care segment constitutes the major brands known
throughout the hair industry,
A. SUNSILK: The Sunsilk hair care range provides a complete hair care solution
and functions as a 3-step combination of cleansing, nourishing and manageability
that gives a 20 something girl the confidence to express herself.
Key facts
washed and styled in one day. Soft & Smooth Thick & Long Damaged Repair
Hair Fall Solution Stunning Black Shine Anti Dandruff
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B. CLINIC PLUS: For most Indians, the first interaction with shampoos has been
Clinic Plus. Over time, it has evolved to keep in step with the changing needs of
consumers by constantly renovating its offering to make sure it is the best solution
for the eternal desire of having long hair for both mom and daughters
Key facts
Range
Strong and Long Health Strong and Long Natural Strong and Long Anti Dandruff
SKIN CARE: The skin care segment caters to the beauty of the women and men
by providing products ranging from whiteness cream to anti marks.
A . PONDS: Ponds has been listening to womens needs and desires for 150 years
and this has enabled us to deliver new products customized to their needs. Ponds
accompanies them on their journey to enchance the beauty of their
Range: Age Miracle Flawless white Perfect Whit Beauty.
B. FAIR & LOVELY: Its skin-lightening technology is known to be the best in
the world! However, this hasnt stopped the brand from innovating further to
pioneer the development of cutting-edge fairness solutions.
Key facts
ds first fairness cream.
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It contains no bleach or harmful ingredients. Instead, it provides visible fairness
in a safe and reversible process.
In 2003, it was rated as the Twelfth Most Trusted Brand in India by ACNielsen
ORG-MARG.
In 2004, it was identified as a Super Brand.
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CHART BCG MATRIX OF HUL
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CHAPTER NO 5: RECOMMENDED STRATEGIES
Though HUL has been implementing several strategies to outperform and boost up
its market share. Following are some strategies that might lead to generation of
cash cows:
1. QUESTION MARKS:
Taj Mahal Tea bags in order to capture the market share of Tetley Tea bags should
also come up with its own range of Herbal or Green Tea bags. (Product
Development).
Close Up being a leader in the gel based toothpaste segment should try to cut the
monopolistic holding of Colgate in the market by:
a) Coming up with innovative cream based toothpastes
b) Entering into the toothpowder industry. Kissan Ketchup can boost up its market
share to outcast Maggi by expanding its geographical base by going for wide scale
product distribution, thereby substituting ketchups name with Kissan ketchup in
the minds of users. (Market Development).
2. STARS:
Having Vim, Wheel, Lifebuoy and Lux in the star segment and that too in an
industry with high growth rate, HUL should go for backward integration in order
to secure the supply of raw material for all the soaps. (Backward Integration)
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To maintain its market share Lakme Anti-Ageing should carry on excessive
interactive sessions with high network individuals. Record those sessions and use
them as advertisements to get their product indirectly endorsed by them. (Market
Development)
3. DOGS:
Brooke Bond Sehatmad should be sold off because the customer tastes and
nutritional requirements have changed from sipping vitamin B enriched tea to anti-
oxidants enriched tea. With the evolution of green tea, the demand by health
conscious an individual is more of anti-oxidants rather vitamin b, as fruits provides
an ample source of vitamins. (Liquidation)
LIMITATIONS
The entire project is based upon an extensive research extending from the
individual products market share data to that of the entire industry, but there is no
such thing as perfection when it comes to research because perfection is just a state
of relative comparison. The applicability of the findings of project suffers from
certain limitations, such as.
The dependence is entirely on the market surveys, annual financial statements of
the company and economic news.
There was an element of Time Constraint while carrying out the research, whereby
not all the products of HUL would have been covered by the project.
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CONCLUSIONS
An in-depth analysis of the entire markets data has been done and the
various SBUs and products of HUL have already been classified into
The four quadrants of BCG matrix.
Subsequent to their allocation into one of the four quadrants a detailed
parallelism will be drawn with.
The various strategies being discussed in the first chapter and will be quote
conclusively.
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BIBLIOGRAPHY
Websites:
http://www.hul.co.in
http://en.wikipedia.org/wiki/Growth-share_matrix#Critical_evaluation
http://www.maxi-pedia.com/BCG+matrix+model
http://www.economictimes.com
http://www.economictimes.com
http://www.economictimes.com
http://www.maxi-pedia.com/BCG+matrix+model
http://www.economictimes.com
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