Company Analysis Part

2
Team 6
Other Firms In The Industry
Particulars Key Brands/Sub -brands Market Share

Hindustan Unilever Limited Clinic Plus/Dove Dandruff care

47%

Procter & Gamble Head & Shoulder

22%

Himalaya Himalaya Herbals Anti Dandruff

5%

Cavin Kare Nyle

9%

Patanjali Kesh Kanti

4%

Dabur Dabur Vatika

7%

India Tobacoo Company Fiama Di Wills Total Damage Control

3%

Others -------------------------------------------
3%
• Cost leadership: Ensuring you cost less than
your competitor
• Differentiation: Ensuring you are different
from competitors
There are two types of competitive scope than
an organisation must choose between :-
board market: serving diverse market
narrow market: focusing on a niche market
• Focused Cost Leadership:
• Focused Differentiation:
• Integrated Cost Leadership/Differentiation
Hindustan Unilever Limited
• A leader in FMCG market
• Clinic Plus is cash cow for HUL
• Unilever uses broad differentiation as its generic strategy for competitive advantage.
• Its emphasis on features or characteristics that make the company’s products stand out
against competitors.
• Despite their relatively high selling prices, Unilever products are competitive because
they stand out from a majority.
• Objective is to grow through intensive efforts in product development.
• The company increases its sales volume to improve revenues and corresponding business
growth
ITC
• The company has adopted a combination of cost leadership, differentiation and
focus strategies to handle the competitive pressure.
• ITC offers discounts and coupons to achieve sales targets and handle the
competitive pressure by its closest rival.
• Being the experienced brand with strong foothold, the company uses
differentiation as a tool to reduce the pressure by other brands. Heavy
investment in marketing, advertisement and celebrity endorsement is made just
to differentiate the ITC Limited India First from other brands.
Core Business Strategy Of P&G
• Consumer understanding : It interacts with more than $ 5 million consumers each year
in nearly 60 countries. Conduct over 15000 research studies. Invests more than 350
million a year in consumer understanding.
• Innovation : Currently spends approximately 2 billion per year on research and
development. Translate consumer desires into new product.
• Brand Building : Shapes purpose :inspired, benefit – driven brands
• Go to market capabilities : Reaches retailers & consumers at the right place & time
• Scale : Drive efficiency & consumer value
 P&G
• Uses differentiation as its generic strategy for competitive advantage.
• Common mechanism to differentiate used by P&G include:-
Superior Quality and value
Uniqueness
Customer service
Distribution network reach
Product portfolio
• Its high investments for R&D ensures high quality and valuable products.
• Product uniqueness determines pricing and promotional activities.
• It partially applies cost leadership strategy on its hair care products ,focusing on cost or pricing to achieve
competitive advantage
• Pantene hair care products are priced relatively lower compared to competitors like
Unilever’s Dove hair care products.
• Automation is increasingly used to minimize cost and maximize efficiency in Procter &
Gamble’s production processes.
• P&G is a leader in returning capital to shareholders. It has a long
history of shareholder value creation ( explain dividend increase)
Qualitative Research
• Use differentiation strategy- Developing the uniqueness of business and the products which
help in attracting customers.
• Cost leadership strategy- Applied on P&G product focus on price to achieve competitive
advantage
ii. P&G Hair Care product priced relatively lower as compared to HUL Dove
• Strategy is to achieve competitiveness- The brand has long been marketed under the tagline,
"You Never Get a Second Chance to Make a First Impression", which has been identified as an
example of "anxiety marketing" commonly used by Procter & Gamble to drive sales by inducing fears
of social consequences associated with the condition that the product claims to address.
• Intensive growth strategy- (Market Penetration) Aim is to increase company market share& P&G
does this through market campaign to increase customer awareness.
• Using display strategy- P&G offers high profit margin to retailers & in return retailers
display P&G product in shelves in stores to attract customer & increase sales
Quantitative Research of P&G
Global Business Unit
Reportable % of Net % of Net Product categories(sub-Categories) Major brands
segments Sales Earnings

Beauty 19% 23% Hair Care (Conditioner, Shampoo, Styling Head & Shoulders,
Aids, Treatments) Pantene,
Hair Care(Conditioner, Shampoo, Styling
Aids, Treatments)

% of sales by Business Unit

Years ended june30 2018 2017 2016 2015 2014 2013 2012 2011

Hair Care 10% 10% 10% 11% 11% 11% 12% 11%
• Hair care market Is growing at the rate of 7% per annum in India
acquisition of brand like wella and Clairol will help P&G to
increase its market share up to 25%
• Spends around 10% of its 1000 crore turnover on advertising
• Urban player constitutes 61% of the hair care market
• Indian hair care industry is estimated at Rs 22,500 crore ($3.3
billion)
• The market is expected to grow annually by 6.9% (CAGR 2019-
2023).
Bibliography
• https://
www.rediff.com/business/report/indias-hair-care-industry-is-worth-rs-22500-crores/2019011
3.htm
• https://www.projectguru.in/overview-indian-shampoo-market/
• https://www.statista.com/outlook/70040000/119/hair-care/india#market-revenue
• https://www.hul.co.in/Images/hul-annual-report-2018-19_tcm1255-538867_1_en.pdf
• https://www.marketresearch.com/Mintel-Snapshots-v2587/Shampoo-Conditioners-India-Siz
es-12696789
/
• https://
economictimes.indiatimes.com/industry/cons-products/fmcg/huls-share-of-hair-care-market
-just-below-50-say-sources/articleshow/54786526.cms
• https://www.pg.com/en_IN/
• https://www.pg.com/en_IN/invest/pghh/annualreports/index.shtml
• https://economictimes.indiatimes.com/industry/cons-products/fmcg/pg-india-finds-a-winn