IT Strategy Project HUL

Presented by: Group 6 NAME PRN No. Dhiraj Sonawane 12030241071 Harshit Shanker 12030241072 Karthik Kumar 12030241076 Nidhi Kindo 12030241084

Agenda
Introduction Industry & Economic Value Competitive Strategy Five Forces Analysis Conclusion

Introduction
Hindustan Unilever Ltd. Is Indias largest fast moving consumer Goods (FMCG) company Headquartered in Mumbai HUL products include foods, beverages, cleaning agents and personal products HUL touches the lives of two out of every three Indians everyday Mission: Add Vitality to life Diverse portfolio of leading brands:

Industry
FMCG [Fast Moving Consumer Goods] HUL industry segments:
Food and beverages Homecare Personal Care Water purifier

Economic Value
Indian FMCG industry Market size 4th largest in the world $ 25 billion constitutes 2.5% of India GDP

Annual profit
Market growth rate

$14.74 billion
Rural- 40%, Urban- 25%

Packaged food Others 3% 6% Beverages 12%

Sales
Soaps and detergents Personal Products Beverages Packaged food Others

Personal Products 31%

Soaps and detergents 48%

Competitive Strategy
Value Proposition
Creative value proposition: Selling beyond the Medias Reach Broader social purpose and business growth

Positioning
Variety Based Positioning:
Umbrella Products

Needs Based Positioning:

Dove to Lifebuoy

Access Based Positioning:

Rural, urban & semi-urban areas

Competitive Strategy
Trade off
Trade-off between profitability & market share Untapped opportunities in the upper segment of premium modern day Indian consumers

Integrated activities to match positioning

HUL has prepared a incubation strategy to position its food segment Launch of Kwality Swirl's parlours and Bru cafes space with integration of Unilever Food Solutions (UFS) with Out-of-home (OOH) HUL plans to further expand and strengthen its business with the use of technology and partnerships

Five Forces Analysis

Potential Entrants: Low resistance Easily enter market at low price

Threat of new entrants

Bargaining power of suppliers

Suppliers: Bargaining cost is minimal Homogenous Raw Material No Monopoly amongst suppliers

Buyers: Industry Competitors: P&G, Dabur, ITC Bargaining power is high

Switching cost is low

Highly price sensitive

Threat of substitute products or services

Substitutes:
Wide range of products choice Plenty of substitutes available

Bargaining power of Buyers

Conclusion
HUL has the expertise and industry experience to succeed in highly competitive changing demands of FMCG Industry. HULs current focus is expanding more on untapped Food & Beverages segment. HUL is having better edge over its competitors in terms of its supply chain management. HUL is the only FMCG Company in India, which concentrates more on rural marketing than urban and is involved in economic development of rural through its unique sustainable programme.

Reference

The India Way: How India's Top Business Leaders are Revolutionizing Management,Peter Cappelli (2010) . Retrieved from http://books.google.co.in/books/about/The_India_Way.html?id=KrmGsUh8IK4C The Five Competitive Forces That Shape Strategy, M. Porter (2008). Retrieved from http://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy/ Facts about HUL. Retrieved from http://www.hul.co.in/Images/HULFactsheettcm114188694.pdf HUL Sustainable strategy ..Retrieved from http://www.hul.co.in/sustainable-living/uslp/ http://www.hul.co.in/Images/USLP%E2%80%93India-2012-Progress-Report_tcm114241468.pdf Annual Report http://www.hul.co.in/Images/USLP%E2%80%93India-2012-ProgressReport_tcm114-241468.pdf HUL Financials: http://seekingalpha.com/instablog/2779031-montyuu/614371-hindustanunilever-ltd-stock-of-the-decade Forbes: P&G Versus Unilever In India, Indrajit Gupta (2010). Retrieved from http://www.forbes.com/2010/04/12/forbes-india-pg-unilever-soap-opera.html HUL Strategies competitive market. Retrieved from http://articles.economictimes.indiatimes.com/2012-09-28/news/34148327_1_unileverspokesperson-d-e-markets-unilever-ceo

Thank you.