Electronic copy available at: http://ssrn.

com/abstract=2124042
0




Study of the BCG Matrix for
Hindustan Unilever Limited






Himanshu Yadav
MBA (Finance) MBL,
National Law University,
Jodhpur, Rajasthan




E-mail: himanshuyadav_151@yahoo.com

Electronic copy available at: http://ssrn.com/abstract=2124042
1

EXECUTIVE SUMMARY

The project required an inherent study of the Boston Consultancy Group (BCG) matrix in
order to develop an intricate understanding of its underlying concept. The BCG matrix is a
chart developed by Bruce Henderson for Boston Consultancy Group in 1968. The
fundamental notion of developing such a chart was to enable multi-divisional or multi-
product companies to analyse its various business units (SBUs) or products. The matrix uses
market growth rate and market share as the parameters for analysing the portfolio of any
organisation. Thus acting as a powerful portfolio management tool, it helps the organisation
to examine and allocate resources among its various units or products.
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.
The mission that inspires HUL's more than 15,000 employees, including over 1,300
managers, is to add vitality to life". The company meets every day needs for nutrition,
hygiene, and personal care, with brands that help people feel good, look good and get more
out of life. It is a mission HUL shares with its parent company, Unilever, which holds about
52 % of the equity.
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, Sunsilk, 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,
Electronic copy available at: http://ssrn.com/abstract=2124042
2

coffee, branded staples, ice cream and culinary products. They are manufactured in over 35
factories, several of them in backward areas of the country. The operations involve over
2,000 suppliers and associates. HUL's distribution network covers 6.3 million retail outlets
including direct reach to over 1 million.
The project will try to cover almost all the categories and label the entire product range into
following characterised quadrants of BCG matrix,
Cash Cows
Question Marks
Dogs
Stars


3

RESEARCH 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 analyse the product portfolio of HUL with respect to BCG matrix.
3. To highlight and recommend effective strategies for manoeuvring within the BCG
matrix.


4

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 fulfil 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 analysed and
valuable inputs will be given in form of suggested strategies.

5

Chapter 1: BCG Matrix

I. Brief history of Boston Consultancy Group
The Boston Consulting Group was started up in 1963 by Bruce Henderson and from its
inception sought to establish itself in the planning and was considered the pioneer of Business
Strategy analysis. 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 spinned off BCG as a separate subsidiary.
1

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.As his
client list grew, Henderson targeted the nation's best business schools. 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. He
encouraged the brilliant young minds he hired to come up with innovative ideas that were
meant to dazzle hardened corporate veterans.
2

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.
3

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.
4

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.
5



1
http://www.bcg.com/this_is_bcg/bcg_history/Printable.pdf
2
http://en.wikipedia.org/wiki/Boston_Consulting_Group#_note-0
3
Ibid
4
Ibid
5
http://money.cnn.com/galleries/2007/fortune/0701/gallery.bestcos/8.html
6

II. BCG Growth-Share Matrix
In the late 1960s a consultant for the Boston Consulting Group presented his ideas about
cash deficient and growth deficient businesses and the need for a balance between cash
generators and cash users.
In the late 1960s the Boston Consulting Group developed a portfolio business model based
on this thinking. 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 growth-share matrix was intended to analyse a portfolio from a corporate perspective
because it is only at that level that cash balance is meaningful. A business may, however, be
segmented further using this diagnostic tool to understand the positions of its various product
lines or market segments. This portfolio can therefore be made up of products in a multi-
product company, divisions in a multidivisional company and companies in a conglomerate.
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 growth-share matrix thus maps the business unit positions within
these two important determinants of profitability
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;
Relative market share
6

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, implying that the organization's brand

6
http://futureobservatory.dyndns.org/9435.htm#The_Boston_Matrix_
7

was in a relatively weak position. If the largest competitor only had a share of 5 per cent, the
ratio would be 4:1, implying that the brand owned was in a relatively strong position, which
might be reflected in profits and cash flows. If this technique is used in practice, this scale is
logarithmic, not linear.
On the other hand, exactly what is a high relative share is a matter of some debate. The best
evidence is that the most stable position (at least in FMCG markets) is for the brand leader to
have a share double that of the second brand, and triple that of the third. Brand leaders in this
position tend to be very stable - and profitable.
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 likely to go in the future. It can also show what
type of marketing activities might be expected to be effective.
Market growth rate
7

Rapidly growing brands, in rapidly growing markets, are what organizations strive for; but
the penalty is that they are usually net cash users - they require investment. 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. The cut-off point is usually chosen as 10
per cent per annum. Determining this cut-off point, the rate above which the growth is
deemed to be significant (and likely to lead to extra demands on cash) is a critical
requirement of the technique; and one that, again, makes the use of the BCG Matrix
problematical in some product areas. What is more, the evidence, from FMCG markets at
least, is that the most typical pattern is of very low growth, less than 1 per cent per annum.
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

7
http://futureobservatory.dyndns.org/9435.htm#The_Boston_Matrix_
8

(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 calculation of the relative market share and market growth is as follows-

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:














9

This framework assumes that an increase in relative market share will result in an increase in
the generation of cash. This assumption often is true because of the experience curve;
increased relative market share implies that the firm is moving forward on the experience
curve relative to its competitors, thus developing a cost advantage. A second assumption is
that a growing market requires investment in assets to increase capacity and therefore results
in the consumption of cash. Thus the position of a business on the growth-share matrix
provides an indication of its cash generation and its cash consumption.
Henderson reasoned that the cash required by rapidly growing business units could be
obtained from the firm's other business units that were at a more mature stage and generating
significant cash. By investing to become the market share leader in a rapidly growing market,
the business unit could move along the experience curve and develop a cost advantage. From
this reasoning, the BCG Growth-Share Matrix was born.
Resources are allocated to business units according to where they are situated on the grid as
follows:
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 and thus neither generate nor consume a large amount of cash, and dogs are cash
traps because of the money tied up in a business that has little potential and the capital
that could better be deployed elsewhere. Unless a dog has some other strategic
purpose, such businesses are candidates for divestiture, and it should be liquidated if
there is little prospect for it to gain market share.
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. The result is large net cash consumption. 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. If the question mark does not
succeed in becoming the market leader, then after perhaps years of cash consumption
it will degenerate into a dog when the market growth declines. Question marks must
be analyzed carefully in order to determine whether they are worth the investment
required to grow market share.
10

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; therefore the cash
in each direction approximately nets out. If a star can maintain its large market share,
it will become a cash cow when the market growth rate declines. The portfolio of a
diversified company always should have stars that will become the next cash cows
and ensure future cash generation. If successful, a star will become a cash cow when
its industry matures.
Cash Cow - a business unit that has a large market share in a mature, slow growing
industry. As leaders in a mature market, cash cows 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. 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.
Because the cash cow generates a relatively stable cash flow, its value can be
determined with reasonable accuracy by calculating the present value of its cash
stream using a discounted cash flow analysis. Cash cows require little investment and
generate cash that can be used to invest in other business units.
After plotting the Growth-share matrix, the same would typically look like this:

11

III. Strategic Options for the Four Types of Business Units

QUESTION MARKS
Strategic options for question marks include-
Market penetration
The most frequently used strategy is to take the existing product (or service) in the existing
market and try to obtain improved `penetration' (or, more accurately, an increased share) of
that market. There are two ways in which this can be achieved: Increasing sales to existing
customers and Finding new customers in the same market. In general, the first strategy means
persuading users to use more. This may be achieved by motivating them to use the product
on more occasions, perhaps by replacing an indirect competitor; for example, inducing a
house-hold to eat beans on toast an extra time each week, instead of fish fingers. It may, on
the other hand, simply be to use the product more often without any need to take business
from competitors; as Unilever used Timotei to promote the more regular shampooing of hair.
Possibly it may be to use more each time; promotions offering `30 per cent more free' may
have, as one objective, the intention of persuading customers to get into the habit of using
more. The second strategy almost invariably relates to taking business directly from
competitors, increasing both penetration and market share.
Market development
The expansion of the total market served by a business, achieved by (1) entering new
segments-by expanding the geographic base of the business or by using new channels
to reach un-served customers; (2) conversion of nonusers-by lower prices or increased
(or specially designed) promotion; and (3) increasing usage by present users-by
developing and promoting new uses for the product.
8


Product development
This involves a relatively major modification of the product or service, such as
quality, style, performance, variety and so on. Adding sausages to tinned baked beans
will possibly cause some existing users to increase their usage, but may also attract
new users. To be most effective, such developments should extend the `product' into a

8
http://www.marketingpower.com/mg-dictionary-view1826.php
12

new segment, or to a new competitive position in relation to the clusters of
consumers.

Divestment
The term is used as a corporate strategy in which a company sells off a business unit
in order to focus their resources on a -in their view- more profitable or promising
market.
9


STARS
Strategic options for stars include-
Integration forward, backward and horizontal
Forward integration: a strategy for growth in which a company develops by seeking
ownership of, or some measure of control over, its distribution systems.
Backward Integration: A form of vertical integration that involves the purchase of
suppliers in order to reduce dependency.
Horizontal integration:
1. The expansion of a business by acquiring or developing businesses engaged in the
same stage of marketing or distribution. The most common approach is to buy out
competitors. It is also known as horizontal expansion.
2. The combination of two or more separate enterprises at the same stage in the channel
through ownership, including mergers or acquisitions)
10

Market penetration
Market development
Product development
Joint ventures




9
http://www.investordictionary.com/definition/divestment.aspx
10
http://www.marketingpower.com/mg-dictionary-view1406.php
13

COWS
As regards cows, it is desirable to maintain the strong position as long as possible and
strategic options include-
Product development
Concentric diversification
Concentric diversification: a growth strategy in which a company seeks to develop by
adding new, but related, products to its existing product lines to attract new customers.
If the position weakens as a result of loss of market share or market contraction then options
would include Retrenchment (or even divestment)

DOGS
Strategic options for dogs would include-
Retrenchment (if it is believed that it could be revitalized)
Liquidation
Divestment


IV. The BCG Matrix and one size fits all strategies
The BCG Matrix method can help to understand a frequently made strategy mistake:
having a one size fits all strategy approach, such as a generic growth target (9 percent
per year) or a generic return on capital of say 9.5% for an entire corporation.
In such a scenario:
Cash Cows Business Units will reach their profit target easily. Their management
have an easy job. The executives are often praised anyhow. Even worse, they are
often allowed to reinvest substantial cash amounts in their mature businesses.
Dogs Business Units are fighting an impossible battle and, even worse, now and then
investments are made. These are hopeless attempts to "turn the business around".
14

As a result all Question Marks and Stars receive only mediocre investment funds. In
this way they can never become Cash Cows. These inadequate invested sums of
money are a waste of money. Either these SBUs should receive enough investment
funds to enable them to achieve a real market dominance and become Cash Cows (or
Stars), or otherwise companies are advised to disinvest. They can then try to get any
possible cash from the Question Marks that were not selected.

V. 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.

VI. 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.
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.

VII. Critiques of BCG Matrix
1. In another word: by definition, only a single company can have a share greater than
1.0 in any given market. Thus, in the BCG matrix, there can be but one cash cow or
one star per market.
2. The BCG model implies resource allocation rules regarding cash usage.

15

VIII. 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.

IX. Strategic Use of B.C.G Matrix
1. The BCG growth share matrix is widely used as a strategic planning tool giving
planners a sense of direction.
2. The matrix facilitates the strategic planning process and service as a rich source of
ideas about possible strategic options.
3. In multi-product organizations, management can use this matrix as a guide to allocate
limited resources. BCG MATRIX 22% 10% market growth rate 0% 10x 1.5x 1x 0.1x

16

Chapter 2: Hindustan Unilever Limited

I. 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.
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.
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.
In the year 1958 the company started its Research Unit at Mumbai Factory namely
The Hindustan Unilever Research Centre (HLRC).
In the year 1962 the company's Formal Exports Department was started and HUL
recognised by Government of India as Star Trading House in Exports in 1992.
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.
17

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.
HUL acquired Kwality and Milkfood 100% brand names and distribution assets
accordingly HUL introduced Wall's.
The company and Indian cosmetics major, Lakme Ltd came to joint ventures and
formed Lakme Lever Ltd and HUL recognised as Super Star Trading House in 1995.
A group company, Pond's India Ltd was merged with HUL on January of the year
1998.
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.
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.
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.
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.
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.
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".
During 2008, Unilever announced its collaboration with the Indian Dental
Association (IDA) in conjunction with World Dental Federation (FDI) through its
18

Pepsodent, leading oral care brand to help improve the oral health and hygiene
standards in India.
HUL identified five key platforms and have articulated goals, both short term and long term
goals, stretching to 2015, would work in areas of health & nutrition & women empowerment
on the social front, the economic agenda would be to enhance livelihoods and the
environmental agenda would focus on water conservation and cutting green house gases.
Currently, Unilever holds 51.55% equity in the company while the rest of the shareholding is
distributed among about 380,000 individual shareholders and financial institutions.
HUL believes that an organisation's worth is also in the service it renders to the community.
HUL is focusing on health & hygiene education, women empowerment, and water
management. It is also involved in education and rehabilitation of special or underprivileged
children, care for the destitute and HIV-positive, and rural development.

II. Company Vision
11

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:
We work to create a better future every day
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.
We will inspire people to take small everyday actions that can
add up to a big difference for the world.
We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.


11
http://www.hul.co.in/aboutus/ourvision/default.aspx

19

Chapter 3: Product Mix of HUL
(OBJECTIVE I)

The entire product range of HUL can be visualised in terms of the following of the following
segments
12
:
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. TEA
13
:
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
3 Roses is a 30 year old regional brand and is the market leader in Tamil Nadu.
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.
It has two functionally differentiated variants - 3 Roses Natural Care and 3 Roses
Mind Sharp.


12
The products shown are those which are easily available and have a sizeable market share in their respective
segments
13
No. 1 in Tea category, HUL Factsheet, http://www.hul.co.in/Images/HULFactsheettcm114188694.pdf
20

3 Rose range:



3 Roses Regular 3 Roses Natural Care 3 Roses Mind Sharp

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.
Key facts
Red Label is a 107 year old brand and has tremendous equity and heritage in the
Indian market.
It is the second largest tea brand in the country.
The oldest and largest brand in the Brooke Bond portfolio in India
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
Range

Red Label 250gms Red Label Dust Red Label Natural Care Red Label 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
Taaza is a 20 year old brand with strong presence in North, West and Eastern India.
21

It is the 3rd largest tea brand in the country with a portfolio spanning in both leaf and
dust segments.
It has a strong presence in the out of home segment in South India.
Range

Taaza Leaf Taaza Dust

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.
Key facts
Taj Mahal was launched in 1966 by Brooke Bond.
Ustad Zakir Hussain, the tabla maestro was the brands ambassador for over a decade,
exemplifying both discernment as well as the pursuit of excellence.
Taj Mahal is the most premium brand of tea in the Indian market.
Since 2006, Saif Ali Khan is the brand ambassador.
Range

Taj Mahal Taj Mahal Teabags Taj Mahal Flavoured Tea Bags

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.
Key facts
14


Lipton Yellow Label Lipton Clear Green Tea Lipton Darjeeling Tea

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
A Tea brand enriched with Vitamins, The first tea of its kind to address vitamin intake
gaps among the masses.
3 Cups of Brooke Bond Sehatmand a day helps satisfy 50% of the RDA of B
Vitamins.
Range

Brooke Bond Sehatmand



14
Lipton is the # 1 tea in the world, HUL Factsheet
23

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. Brus 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
Number 1 Coffee brand in India
Unilever's only Coffee brand
Enjoys a rich heritage, came into existence in 1962 under the brand name Deluxe
Green Label
Consistently offering better and newer products to the consumer through improved
packaging solutions and innovative product formats

Bru Roast Bru Instant Bru Ice cappuccino Bru hot cappuccino
and Ground

3. 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
Kissan is in its 62
nd
year of its existence in India.
Category leaders in India.
24


Kissan Jam Kissan Squashes Kissan Tomato Ketchup Pichkoo

Kissan Squeezo Ketchup Mango Pineapple Strawberry

4. MODERN: Modern has a heritage of over 42 years and has presence across India.
Modern was the first brand to operate a fully mechanised bakery. Modern has evolved
to keep in step with the changing needs of consumers by constantly renovating its
offering to make it relevant for all segments and to meet various needs, occasions and
usages by consumers.
Key facts
Indias No 1 Bread
Touches the lives of 3 million families

Brown Bread Atta Shakti Modern - Multi-seed bread Modern

5. READY TO COOK: The ready to cook segment can be further divided into:
(a) KNOR SOUPS: The Knorr range of soups is available in a number of tasty and
exciting varieties. There is a flavour to literally suit every taste palate; the Classic
range of soups with flavours like Thick Tomato, Mixed Vegetable Chicken Delite
and Tomato Twisty Pasta, the Oriental range with flavours like Sweet Corn
Vegetable, Sweet Corn Chicken and Hot n Sour and the Indian range with flavours
like Tomato Makhni and Corn Mast Masala

25

(b) KNOR MEAL MAKER RANGE: Knorr Ready to Cook helps the consumer
make her family's favourite dishes at home and helps her get restaurant like taste at
home itself. It comes in the Indian Ready to Cook range and Chinese Ready to
Cook range.
Key facts
Knorr in India is generic to soups.
Knorr is the largest soup brand in India and has a lions share of the soup market in
India 70%
All Knorr products have no added preservatives and are a healthy choice option.
Range

Classic Soups Chinese Soups Indian Soups

Indian Meal Maker Range Chinese Meal Maker Range Soupy Noodles Range

6. KWALITY WALLS: Kwality Walls, the brand with a big heart, offers a range of
delightful frozen desserts that bring smiles to the faces of millions of Indians kids,
teens and adults.
Key facts
Unilever is the world's biggest ice cream manufacturer, operating under the
Heartbrand.
Heartbrand products are sold in more than 40 countries worldwide and has an annual
turnover of 5 billion
Also sold as Algida in Italy & Turkey, Langnese in Germany, Kibon in Brazil, Streets
in Australia and Ola in the Netherlands
26

Range

Cornetto Feast Paddle Pop Selection

II. HOME CARE BRAND SEGMENT:

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
The largest selling detergent brand in India.
Used by over 1 in 2 households in India
Famous for using Bollywood stars as its Brand Ambassadors.
Range

Blue Bar Lemon & Orange Lemon & Jasmine Green Bar

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
Rin was launched in India as a bar in 1969 with the iconic lightning mnemonic.
Rin powder was launched in 1994 as Rin Power White
Rin Matic for washing machines, launched in July 2008

27

Range

Rin Bar Rin Powder Rin Jasmine Powder Rin Matic

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.
Range

Quick Wash Detergent Powder Blue Detergent Powder Detergent Bar

Gentle Wash Matic Top Load


III. PERSONAL CARE BRAND SEGMENT:

1. SOAP: The soap segment of HUL comprises of various brands catering to different
customer base.

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 glycerine.


28

Key facts
Launched in 1988 as a family beauty soap with the promise of a fresh feeling of
nature
Comes in 5 attractive variants Lemon Twist, Rose Mallika, Sandal Sparsh, Rajni
gandha & Morning Muskaan
Range

Lemon Twist Rose Mallika Sandal Sparsh Rajni Gandha

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
One of the oldest soap brands in India
A brand that has been consistent in bringing alive freshness
A brand that has managed to create breakthrough advertising over the years
Range

Liril 2000 soap

C. LUX: Lux stands for the promise of beauty and glamour as one of India's most trusted
personal care brands.

29

Key facts
The brand name Lux has been derived from Luxury
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.
The first bar of Lux was made in India and sold for a princely sum of two annas in
1934
Range

Lux Strawberry Lux Peach Lux Purple Lotus Lux International

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
Undisputed Leader in the soaps market of India, with 18.4% share.
Turnover of 350 million a year globally, 200 million in India.
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:
o Gold at the Emvies 2008 for best use of media innovation
o ASIA Pacific CSR Award 2007, for Lifebuoy Swasthya Chetna
Range

Core Soaps Handwash Range SkinGuard ClearSkin

30

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
Pears was first made in 1789 by Andrew Pears in London. This is from where it
derived its name!
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!
Pears is the worlds first registered brand and it is in existence continuously since
then.

Range

Pears Pure & Gentle Pears Germ Shield Pears Oil Clear

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
Launched first in the US in 1957; is one of the leading brands of Unilever globally.
Dove has its footprint in 80 countries worldwide with a range of superior products
from bar, lotions, body washes, face care and creams.
It is the leading bar brand in UK, US and Canada.
Fastest growing hair category brand in India
31

Range

Dove Bathing range Dove Hair Care range Dove Deodorants Range

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
Endorsed by FDI ( the largest dental association globally)
Among the most trusted brands in India (Brand Equity, Economic Times, India)
Also sold as Mentadent, Zhonghua, PS and Signal in other countries
Range

Pepsodent Germicheck+ 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.
32

Key facts
First HUL offering in the oral care category
First gel toothpaste in India launched in 1980
Market leader in the gel-segment for almost 3 decades
Making stars out of models (Present-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

Closeup 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
Number 1 in Asia, Latin America and the Middle East
Sales of more than 1 billion a year.
Recent Awards: Holds the Guinness World Record for the most heads of hair washed
and styled in one day.
Created the largest community for Indian girls which is
www.sunsilkgangofgirls.com


33

Range

Soft & Smooth Thick & Long Damaged Repair

Hair Fall Solution Stunning Black Shine Anti Dandruff

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
The largest selling Shampoo brand in India.
The most widely distributed Shampoo brand in India
Range

Strong and Long Health Strong and Long Natural Strong and Long Anti Dandruff

5. 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 customised to their needs. Ponds
accompanies them on their journey to enhance the beauty of their skin
34

Range

Age Miracle Flawless White Perfect White 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
Developed in 1975, Fair & Lovely is the worlds first fairness cream.
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.
Range

Multivitamin Ayurvedic Balance Antimarks Menz active Winter Fairness


35

Chapter 4: Data Tabulation

In order to design the BCG matrix of HUL and to diversify the various products into Cash
Cows, Dogs, Stars and Question marks, data had been collected at the industry level from
various authenticated sources. Thus the entire data is being tabulated in three spheres:

I. MARKET GROWTH RATE DATA:
This industry level data will help us to portray the various segments in which the
HUL has launched its products to be into High or Low market growth rate. For this
purpose a recently conducted survey of the FMCG (Fast Moving Consumer Goods)
industry by CII (Confederation of Indian Industry) has been consulted. The
highlights of which are:

The FMCG industry as a whole has maintained a higher growth of 13% in the
fiscal year April-March 2010-11
The market or industry growth rate of various segments of FMCG are as follows:

Growth Rate Segments/Sectors
15

Excellent growth of above 20
percent
(>20%)
Deodorant 41.5% (40%), Anti-ageing
cream 30.5% (30%), Tooth paste 22%
(20%), Skin and fairness cream 18%
(16%), Mens Fairness product 32%
(32%), Hair colorants/dies 22% (21%),
Cleaners and repellents 23% (22%),
Feminine hygiene 22% (20%), Baby
diapers 21% (20)% and Dish wash
27% (26%)

15
Figures in brackets are the previous year 2009-2010 growth rates
36

High growth rate of 10 to 20
percent
(10-20%)
Detergent powder 16% (15%), washing
cakes 13% (13%), toilet soaps 16%
(15%), tooth brush 13% (13%),
fairness cream 18% (16%), mens hair
grooming and styling 20% (18%),
branded coconut oil 10% (10%),
shampoos 12% (9.8%), baby care 17%
(17%) and skincare 15% (15%).
Moderate growth of 0 to 10
percent
(0-10%)
Toothpowder 1.8% (2%), Liquid soaps
7% (6%), Shaving products 8% (7%),
and coconut oil 2% (2%)
Table: 4.1

II. RELATIVE MARKET SHARE DATA:
The relative market data has been calculated for almost all the products of HUL
whereby their market share is being evaluated with respect to the largest competitor
in the market;






The market share has been analysed on the basis of various Business articles, Annual
Financial Statements of HUL and its competitors, Market Research firms, etc. Efforts
have been made to attain the most accurate market share in the present market
scenario since being a FMCG industry the volatility is quite high. A detailed is hereby
provided along with the calculated RVM;


37

S. NO. INDUSTRY
HUL PRODUCT
AND ITS
MARKET SHARE
(C1)
LARGEST
COMPETITOR AND
ITS MARKET
SHARE
(C2)
RELATIVE
MARKET
VALUE
(RMV)
=C1/C2
1. DEODRANT
AXE Deodorant
(25%)
Fa
(8.5%)
2.94
16

2. TOOTHPASTE
Close Up and
Pepsodent
(32.8 %)
Colgate - Palmolive
{Colgate Dental
Cream, Active Salt,
and Cibaca}
(52.4%)
0.62
17

3.
FAIRNESS
CREAM
Fair & Lovely
(76%)
Cavin Kares
{Fairever}
(15%)
5.06
18

4.
MENs
FAIRNESS
CREAM
Fair & Lovely
Menz Active
(<5%)
Emami
{Fair & Handsome}
(Almost equal to 70%)
0.04
19

5.
FLOOR
CLEANER
Domex
(10.5%)
Reckitt Benckiser
{Harpic}
(80%)
0.13
20

6.
DETERGENT
BAR
Rin
(4.2%)
Nirma
(35%)
0.12
21

7.
DETERGENT
POWDER
Wheel
(20.83%)
Nirma
{Ghari}
(13.5%)
1.54
22


16
Business Standard, http://www.business-standard.com/india/news/can-axe-retain-its-effect/415654/
17
Colgate Financial Statements, http://www.colgate.co.in/
18
http://www.articlesbase.com/health-articles/there-are-a-number-of-fairness-creams-in-the-market-939990.html
19
http://www.hindustantimes.com/StoryPage/Print/590367.aspx
20
Mariquity, Market club of MDI, http://www.mdi-marquity.com/Case-Study/Reckitt%20Benckiser%20-
%20Harpic%20Case.pdf
21
http://toostep.com/insight/success-story-of-nirma; http://www.lbhat.com/advertising/comparative-advertising-
the-debate-is-back/
22
http://articles.economictimes.indiatimes.com/2011-05-06/news/29517095_1_ghari-detergent-brand-nirma
38

8.
DETERGENT
POWDER
Surf
(35%)
Wheel
(20.83%)
1.68
9.
TOILET SOAP
Lifebuoy
(18.4%)
Nirma
(10%)
1.84
10.
Lux
(15.5%)
Nirma
(10%)
1.55
11.
SHAMPOO
Dove
(7.9%)
Pantene
(9.4%)
0.84
23

12.
Clinic Plus
(21.1%)
Pantene
(9.4%)
2.24
24

13.
Sunsilk
(15.8%)
Pantene
(9.4%)
1.68
14. ATTA
Annapurna
(26%)
ITC
{Ashirwad}
(40%)
0.65
25

15. TEA BAG
Taj Mahal
(25%)
Tata Tetley
(56%)
0.44
26

16.
MOISTURISING
CREAM
Vaseline
(55.6%)
Nivea
(20.2%)
2.75
17.
FOOD
Kissan Ketchup
(26%)
Maggi Ketchup
{Nestle}
(47%)
0.55
18.
Kissan Jam
(65%)
Mapro Jam
(21%)
3.09
Table: 4.2



23
http://www.business-standard.com/india/news/dove-flies-high-pantene-waits-inwings/408550/
24
http://www.livemint.com/2010/08/10224005/N-Rajaram--As-leaders-we-ha.html
25
http://www.hindustantimes.com/
26
http://www.slideshare.net/sushmagurav/market-research-on-tea-in-india
39

III. RELATIVE SEGMENTS SALES DATA
27
:
The entire range of HUL offering is being divided into five major segments and the
segmental analysis of it is being here under done for the year ended 31 March 2011;

(in crores)
PRODUCTS
SEGMENT
TOTAL SALES OF
HUL
SALES OF
PRODUCTS
IN 2010-11
SALES OF
PRODUCTS AS %
OF TOTAL SALES
Soaps and
Detergents
20,018.51 8,791.56
44.6
Personal Products
20,018.51 5,844.10
29.7
Beverages
20,018.51 2,343.97
11.9
Foods
20,018.51 902.57
4.6
Ice Creams
20,018.51 274.58
1.4
Exports
20,018.51 1,171.79
5.6
Others 20,018.51 656.05 2.2
Table: 4.3

(in crores)
PRODUCTS
SEGMENT
SALES OF
PRODUCTS
IN 2010-11
SALES OF
PRODUCTS IN
2009-10
% OF GROWTH
IN EACH
SEGMENT
Soaps and
Detergents
8,791.56
8,265.64 6.168501
Personal Products
5,844.10
5,047.90 14.64603
Beverages
2,343.97
2,142.43 8.990537
Foods
902.57
730.78 21.11338
Ice Creams
274.58
231 17.28249
Table: 4.4

27
Annual Financial Statement of HUL for the year 2010-2011
40

Chapter 5: Data Analysis BCG Matrix of
HUL
(OBJECTIVE II)


After going through the data being collected and tabulated in the chapter 4, the analysis will
be done of each table to design the BCG matrix of the various products 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


41

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 organisations 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
Lipton
28

Red Label
Knor Soups
29


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

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


28
HUL Factsheet, No 1 tea in the world
29
HUL Factsheet, No 1 in the soup segment with 70% share
42

BCG MATRIX OF HUL



High
Low



AXE Deodorant
Fair & Lovely
Lakme Anti Ageing
Vim
Wheel
Surf Excel
Lifebuoy
Lux
Kwality Walls
Kissan Jam
Knor Soup




Close Up
Pepsodent
Annapurna
Fair & Lovely Menz Active
Domex
Rin
Breeze
Taj Mahal Tea Bags
Kissan Ketchup
Knor Meal Maker




Clinic Plus
Sunsilk
Vaseline
Red Label







Taaza
Brooke Bond Sehatmand
Bru

STARS QUESTION MARKS
CASH COWS DOGS
Low High
M
a
r
k
e
t

G
r
o
w
t
h

Market Share
43

Chapter 6: Conclusions &
Recommendation
(OBJECTIVE III)

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.

1. COWS: Since the cows needed to be milked now and then, and efforts are to be made
to ensure that they maintain the largest share in the market the following strategies are
being adopted by HUL;

Product Development:
Sunsilk created the largest community for Indian girls which is
www.sunsilkgangofgirls.com.
Sunsilk innovatively comes up with an entire product range of Soft & Smooth,
Thick & Long, Damaged Repair, Hair Fall Solution, Stunning Black Shine and
Anti Dandruff.
Clinic Plus 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.
Vaseline the moisturising cream has developed itself from just being a
petroleum jelly to a leader among moisturisers with Vaseline Total Moisture,
Vaseline Aloe Cool, Fresh Vaseline Healthy White and Vaseline Lip Care.

Concentric Diversification:
To keep milking its cash cow Red Label, the HUL after floating its company
entered into a series of merger and acquisition of related tea companies
starting with Brooke Bond and then Lipton. Lipton was added because it
catered to only the premium segment whereas Red Label focussed upon
44

middle level segment. Thus a manoeuvred approach to widen the customer
base.

2. STARS: The stars though generate funds but need to be constantly invested into
because their prospectus of becoming cash cows depends on the pre-requisite of them
being the market leader.

Market Development:
AXE came out with highly innovative products (like Axe Instinct, Axe Dark
Temptation, Axe Pulse and Axe Denim) and intensive sexually provocative
advertisements thereby converting the non-users of deodorant products into its
users.

Market Penetration:
Kissan Jams new squeeze collection of different fruit flavours namely mango,
blueberry, etc. in attractive and kids friendly packaging is an attempt to boost
more sales within the existing kid segment.

Joint Venture:
Initially HUL and Lakme Limited, a TATA company, came out with Lakme
Unilever Limited, a 50:50 joint venture. Though later on the Lakme Limited
sold its entire divested selling its entire shares to HUL.

Backward Integration:
The Doom Dooma and Tea estate, two production facilities of Unilever were
merged with Brooke Bond. Later in 1995, Brooke Bond and Lipton were
merged to form Brooke Bond Lipton India Limited (BBIL)
30
. BBIL acquired
Kwality and Milkfood 100% brand names and distribution assets accordingly
and HUL introduced Wall's ice creams.


30
Because of the high growth rate of tea industry, they both were stars in that period and later on switched into cash
cows
45

3. QUESTION MARKS: Since they are the new entrants or strugglers in the market for
major share where the market is changing at a high pace, efforts are being made to
make sure that the gain on their market share.

Product Development:
Pepsodent entered into a major modification of its Germicheck and Whitening
toothpaste by coming up with the Sensitive and Gumcare range of toothpastes.
Knor soups coming up with the entire range of soups ranging from tomato mix
vegetable, Chinese to chicken soups.

Market Penetration:
Kissan Ketchup has come up with a new packaging called Pichkoo, the
attempt has been to induce the users to use more and more of ketchup every
time they use it.

4. DOGS: Dogs they are run on breakeven point and in the eyes of an accountant they
are not even viable. But can be important for synergies;

Divestment:
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


RECOMMENDATIONS:

The existing strategies for the various segment of the entire product range of HUL have
already been concluded. Certain recommendations are hereby given for the selection and
adoption of strategies;


46


While implementing the strategy due consideration should be given to the above shown
movements of products through various quadrants in order to ensure that only strategies
within possibility of success sequences are being executed.

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)
47

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
31


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)
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 individuals is more of anti-oxidants rather vitamin b, as fruits
provide an ample source of vitamins. (Liquidation)




31
Being an industry with low growth rate, conversion of it being an entrant though will be requiring lot of
investment but if processed will end up providing HUL with one more cash cow
48

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.

49

BIBLIOGRAPHY

Books:
Prasad LM, Business Policy; Strategic Management, Sultan Chand & Sons, 2001
Aaker David A, Strategic Market Management, 6
th
Edn; John Wiley & Sons Inc., 2005
Wheelan Thomas L& Hunger David J, Strategic Management & Business Policy;
Entering 21
st
Century Global Society, 6
th
Edn, Addison- Wesley, 1998

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

Reports:
HUL Factsheet
HUL, Annual Financial Statement 2010-11