Hul vs p&g critical evaluation.

INTRODUCTION OF FMCG INDUSTRY

FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods.

The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management.

INTRODUCTON OF HUL

HUL good, look good and get more out of life with and services that are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soap, detergent, shampoo, skincare, Toothpaste, deodorants, cosmetic, tea, coffee, packaged foods, ice cream and water purifiers, The Company is a part of the everyday life of million customers across India. Its portfolio includes leading house hold brands such as Lux, Lifeboouy, Usrfexcel, Rin, Wheel, Fire&Lovely, Pond’s, Vaseline, Lakeme, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bon, Bru, Knorr, Kissa, Kwality Wall’s and pureit.

Works to create the better future every day and help people feelThe Company has over 16,000 employees and has an annual turnover of around RS. 19,401 crores (financial year 2010.2011). HUL good, look good and get more out of life with and services that are good for them and good for others.

HISTORY OF HULIn the summer of 1888, visitors to the Kolkata noticed full of sunlight soap bar , embossed

with the words “Made in England by Lever Brother’’ With it, began of era of marketing branded fast moving Consumers Goods(FMCG).

CEO of HUL is Nitin Paranjpe

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PRODUCTS OF HUL

1. Personal use: Lux, Price Rs 10 to 18

Lifebouy,price Rs14to16

Liril, Price Rs 18

Hmam, Price Rs 20

BREEZE

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Moti, Price RS 28

Dove, Price Rs 18 to 25

Pears and

Price Rs18 Rexona.

2. Laundry use: Surf excel,

Sun light,

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Rin,

Wheel, and

Ala bleech.

3. Dishwasher: Vim.

4.Disinfectants: Domex,

cif.

5.Foods: Kissan (jam, Ketchup, Squases),

6.Annapurna (Aata and salt),

Knorr soup,

7.Modern Bread Ice Creams: Kwality Wall

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8.Tea: Brooke bond,

Lipton, Taj mahal,

9.Coffee: Brooke bond,

Bru.

10.Beauty Products: Fair & Lovely,

lakeme, Pond’s,

Vaseline and

Aviance.

11.Hair care: Sunsilk Naturals,

Dove.

12.Oral Care: Pepsodent and Close up

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12. Deo spray: Axe and Rexona.13. Water purifier: Pureist Star India Pvt Ltd has tied up with Hindustan Unilever Limited (HUL) to advertise only (HUL) brands across all 10 star channels. Leading the pack will be Lifebuoy ads. According to media Buyers, the deal is estimated to be Rs 52 crores. This is the biggest deal after Vodafone took a similar step in 2007. When contracted, Kevin Vaz, executive V-P (advertising and sales), STAR India, refused to comment on the deal.

The Star India channel includes Star plus, Star one, Star utsav, Star movies, Star worlds, channel V, Star gold, Star pravah and Star vijay.Speaking on this initiative, Vaz said, “At Star, we have always gone that extra mile to provide our customers with exclusive campaigns that create a high impact for their brands, The first time was done as a network roadblock was in 2007,when Hutch changed to Vodafone, We are confident that this roadblock with HUL brands,Primarily Lifebuoy, will create as huge an impression in the mind of the customer as it did for Vodafone,”

HUL in 2008 spend close to Rs650 crore on TV and print advertisement.The company posts a net profit of Rs543.19 crore for the quarter ended June 30, 2009, as compared to Rs 558.18 crore same quarters last year. Total income stood at Rs453.61 crore for the quarter as compare to Rs 431.75 crore same quarters last year. The company in the quarter of 2009 increased its ad spend by 26%as part of its effort to drive up volume

COMPETITORS

1. KRAFT

2. P&G

3. NESTLE

4. LO’REAL

5. DABUR

6. ITC

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Capital structure (Rs crore)

From Year To YearClass Of Share

Authorized Capital

Issued Capital

Paid Up Shares

Paid Up Face Value

Paid Up Capital

2010 2011Equity Share 225.00 215.95 2159471968 1 215.95

2009 2010Equity Share 225.00 218.17 2181686781 1 218.17

2008 2009Equity Share 225.00 217.99 2179776077 1 217.98

2007 2008Equity Share 225.00 217.75 2177463355 1 217.75

2006 2007Equity Share 225.00 220.68 2206776097 1 220.68

2005 2006Equity Share 2,250.00 2,206.78 2206776097 10 2,206.78

2004 2005Equity Share 225.00 220.12 2201243793 1 220.12

2003 2004Equity Share 225.00 220.12 2201243793 1 220.12

2002 2003Equity Share 225.00 220.12 2201243793 1 220.12

2001 2002Equity Share 225.00 220.12 2201243793 1 220.12

2000 2001Equity Share 225.00 220.12 2201243793 1 220.12

1999 2000Equity Share 225.00 220.06 2200595070 1 220.06

SWOT ANALYSIS OF HUL

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INTERNAL ENVRONMENT

STERNGTH Variety of products Distribution Network Brand image Quality Management Innovation and R&D strength New division called HLL network.

Weakness Not able to compete with local competitor in the rural market Not focus on upper class population Pricing policy is not good Lacked of Raw material cost high priced product..

EXTERNAL ENIVRONMENT

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INTERNAL ENVIRONMENT

STRENGTH

WEAKNESS

Opportunities Huge Market Increasing per capital income Increasing consumption pattern Potential for making more impact of brand image.

Threat Loosing Market Share due to new Entrants ITC Ltd one of the biggest threats Proctor & Gamble Dabur Dettol Colgate, Nirma Babool

.

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Procter and gamble (P&G).

IntroductionIn 2001, P&G was in a period of declining growth. A Company where the

solution is always innovation, P&G knew it needed to accelerate its innovation development and increase its rate of innovation success. A leadership predicate,

With the world continually getting smaller and moving faster, sustaining solutions would be found in collaboration, not in solution. P&G Launched connect+develop, a systematic, company-wide open innovation program charged with bringing the outside in, and taking the inside out.

History of Procter and Gamble (P&G).

The CEO of P&G: Robert A Mcdonald.

The Procter and Gamble Company (P&G) is a giant in the area of customer goods. The leading maker of household product in the United States, P&G has operation in nearly 80 countries, more than half of the company’s revenues and derived overseas. Among its products, which fall in to the main categories of fabric care, home care, beauty care, baby care, family care, health care, snakes and beverages are 16 that generate more than $1 billion in annual revenues: Actonel (osteoporosis treatment); Always (feminine protection); Ariel, Downy, and tide (laundry care); bounty(paper towels); Charmin( bathroom tissue);crest (tooth paste);Folgers (coffee); Head and shoulders,pantene and wella (hair care);

Lams (pet food); Oley (skin care); pampers (diapers); and Pringles (snakes).Committed to remaining the leader in its markets, P&G is one of the most

aggressive marketers and is the largest advertiser in the world. Many innovations that are now common practice in corporate America-including extensive market research, the brand-management system, and employee profit-sharing programs-were first develop at Procter & Gamble.

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List of products of P&G.1. Gellete

2. Wilkisonsword

3. 7’o’ clock

4. Tide washing powder

5. Oral-B tooth brush

6. Ariel washing powder

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7. Head and Shoulder Shampoo

8. Pantine Shampoo

9. Whisper

10.Pampers baby napkins

11.Rejoice Shampoo

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Period Instrument Authorized Capital

Issued Capital

- P A I D U P -

Period Instrument Authorized Capital

From To (Rs. cr) (Rs. cr) From To

2010 2011Equity Share

35 32.46 2010 2011Equity Share


35 32.46 2009 2010Equity Share


35 32.46 2008 2009Equity Share


35 32.46 2007 2008Equity Share


35 32.46 2006 2007Equity Share


35 32.46 2005 2006Equity Share


35 32.46 2004 2005Equity Share


35 32.46 2003 2004Equity Share


25 21.64 2002 2003Equity Share


25 21.64 2001 2002Equity Share


25 21.64 2000 2001Equity Share


25 21.64 1999 2000Equity Share

Capital Structure (Procter and Gamble Hygiene and Health Care)

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SWOT ANALYSIS OF Procter and Gamble

INTERNAL ENVIRONMENT.

STRENGTH Strong financial position . Large scale of operations Strong branding . Product innovation. Developing markets infrastructure

Weakness 1. Customer concentration2. Lack of effective distribution in some countries

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INTERNAL ENVRONMENT

STRENGTH

WEAKNESS

EXTERNAL ENVIRONMENT.

OPPORTUNITIES Expansion in developing markets. Future growth plans Growing India FMCG products

Threats Regulatory Environment Intense competition Increase in prices of raw materials

HUL vs. P&G Critical Evaluation.

The recent war between HUL and P&G is over the advertisement featuring RIN and TIDE Natural. HUL(through its latest advertisement launch in last week of Feb.) openly challenges the superiority of its product RIN provide more brightness in comparison to TIDE Natural, which is the new product the P&G launched a couple of months ago in the mass segment positioning it against RIN as well as Wheel.

The rivalry between FMCG majors Hindustan Unilever and Proctor & Gamble isn't a mystery. And for their new shampoo campaigns the writing is already on the wall.

While P&G is re-launching Pantene next week claiming to be the number one brand, HUL has already taken a pre-emptive action by placing ads that say ‘Dove is the No.1 shampoo.’

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“Comparative advertising is always fun even in the case of the earlier cola wars. However, I personally don't expect this campaign to work as this campaign is more to do with research and is self indulgent,” said Piyush Pandey, executive chairman of Ogilvy & Mather, South Asia.

The reason for the self indulgence is because the market worth Rs 2000 crore

is now increasingly getting competitive. In the last one year, Pantene's market share has gone down by 60 basis

points, and HUL's Dove has gained over 130 basis points during the same period. So, P&G is now trying to regain the lost ground and market leader HUL is not in the mood to give away any of their market share. Thus comes out an aggressive marketing campaign.

“To support our innovations to drive new categories for the future and to make sure we are competitive in the share of voice, I mentioned earlier that the competitive intensity has certainly gone up and now we are seeing it across categories. Our strategy is that we don’t see it ground and we defend our leadership,” said R Sridhar, CFO of HUL.

The last two launches from P&G have seen very aggressive comparative advertising from HUL especially during the Tide-Rin face off which even went to the court.

And now with P&G planning to launch and re-launch many more products in the next two years, many of them in categories where HUL is the market leader, we can expect both the companies to whip up some more lather.

CONCLUSION

There is wide competition in between HUL and P&G is over the advertisement featuring RIN and TIDE

openly challenges the superiority of its product RIN provide more brightness in comparison to TIDE Natural,

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Hul vs p&g critical evaluation.

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