logging in or signing up SPACE CHART ANALYSIS-Uniliver ujjwal_028 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1243 Category: Education License: All Rights Reserved Like it (11) Dislike it (0) Added: December 12, 2009 This Presentation is Public Favorites: 3 Presentation Description Strategic Positioning and action Evalutation Request: Please Dont ask to send the ppts. to your mails or about the download link. Sorry Comments Posting comment... By: 170292 (16 month(s) ago) awesome...!!! the presentation is too good and precise..and i want this..esp. coz i want to use ur space chart analysis for my project. can u pls also send me the data source for the same?? i mean the basis on which u rated the company's financial position , competitive advantage,etc..pls..i want it asap.:) my mail id is hemilsmiles@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: ravish1 (17 month(s) ago) hey brother i need this ppt if u pls send me on my id it will be great help from your side (ravish1@ymail.com) please brother its request... Saving..... Post Reply Close Saving..... Edit Comment Close By: Sudarshna (26 month(s) ago) Could I please download the presentation? Saving..... Post Reply Close Saving..... Edit Comment Close By: sehrimalik (27 month(s) ago) o thanks i got it atlast Saving..... Post Reply Close Saving..... Edit Comment Close By: mbabma (28 month(s) ago) i want to download sapce matrix Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: SPACE CHART ANALYSIS Under Guidance Of Prof. Abhijeet Naag (Chief Academic Advisor, ISMR,PUNE) HLL ‘Lever’ ages the power of Hindustan : HLL ‘Lever’ ages the power of Hindustan In tune with its global identity, FMCG giant Hindustan Lever Ltd. (HLL) has finally re-christened itself as Hindustan Unilever Ltd. (HUL) after getting the government nod. The name change got the board of directors’ approval which was followed by shareholders’ approval in May 2007. The new name asserts the equilibrium between the company’s heritage in the country and the desired global alignment with its corporate brand ‘Unilever’. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… The company has also released its new logo which is being publicised through massive campaigns. The new logo carries Unilever’s statement of ‘adding vitality to life’. It incorporates the ‘U’ of Unilever that comprises of 25 different vitality icons and has the name Hindustan Unilever Ltd. inscribed at the bottom. According to the company officials, the corporate name will enhance Unilever’s global scale operations which will in turn benefit the Indian business locally and globally. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… Type : Public company BSE:HUL Headquarters : Mumbai, India Industry : Fast Moving Consumer Goods (FMCG) Products : Home & Personal Care, Foods, Water Purifier Parent : Unilever Plc Website : www.hul.co.in SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… Hindustan Unilever Limited (abbreviated to HUL) (BSE: HUL) formerly Hindustan Lever Limited, is India’s largest consumer products company and has an annual turnover of over Rs 13,000 crores (calendar year 2007). It was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.. It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in late June 2007 to “Hindustan Unilever Limited”. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business World, one of India’s leading business magazines. The rating was based on a compilation of the magazines annual survey of India’s Most Reputed Companies over the past 25 years. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as Soaps, Tea, Detergents and Shampoos amongst others with over 700 million Indian consumers using its products. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… It has over 35 brands. Sixteen of HUL’s brands featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. It’s a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007 SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 9: In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. CONT… SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 10: 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). These three companies merged to form HUL in November 1956. CONT… SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Mission : Mission Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com 6 Factors : 6 Factors Six factors that make Hindustan Lever well-positioned to continue to succeed in India . In each case, HLL local strength are complemented by Unilever’s global strength. The factors are:- SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 13: An unmatched brand that serve many Indians that make up this market. The innovation and R&D capabilities that position us uniquely to straddle the pyramid. A track record of building large and profitable mass market, giving us a head- start in new, growing segment. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 14: A versatile distribution network that is capable of managing both traditional and modern trade. A good track – record of combining corporate responsibility and business strategies to aid rural development in India. A strong local talent base. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Present Status : Present Status Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs.13718 crores. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com HUL's Products : HUL's Products Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic Plus, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's, Dove, ELLE 18, Axe, Bru, Domex, Vim, Breeze, Liril, Rexona, Lipton Taaza Tea, Pears, Vaseline, Lakme and many more. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com HLL powers ahead on powerbrands : HLL powers ahead on powerbrands For fast moving consumer goods giant Hindustan Lever Ltd (HLL), it is time to reap benefits arising out of efforts taken in past. Its strategy to focus on key brands tagged as `power brands` and fighting low price competition by focussing on technology and innovation, is paying rich dividends. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… The benefits are evident from three per cent growth in net sales (discontinued business taken for comparison). Moreover, it is continuing business has grown by 3.5 per cent mainly on the back of growth in its power brands. HPC (home and personal care) power brands recorded growth of 4.6 per cent, while foods and beverages power brands grew by 8.3 per cent. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 19: Hindustan Unilever Limited (HUL) announced its results for December Quarter 2008. Net Sales grew by 17% and FMCG by 21% with underlying volume growth of 2%. HPC Business grew 21% driven by price growth in Soaps and Detergents and all round volume growth in Personal Products. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 20: Foods business grew by 23% with a strong performance across Beverages, Processed foods and Ice-Cream. However, impact of high input cost inflation continued in this quarter. Year -to-date investment behind brands continues at 10.1% of turnover, growing at 16%. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com SWOT - HUL : SWOT - HUL Strengths Product portfolio: As many as 129 product lines which no other FMCG has. Quality of manpower Strong and well differentiated brands with leading share positions. Distinctly placed products providing reach to every segment of society. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 22: Consumer understanding and systems for building consumer insight Integrated supply chain and well spread manufacturing units Distribution structure with wide reach, high quality coverage – The launch of project “Shakti” has helped HUL to create brand awareness and extensive reach in rural India. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 23: Access to Unilever global technology, capability and sharing of best practices from other Unilever companies. Well placed to take advantage of growth in rural India and lower strata of the society through “Shakti”. It could look at introducing products from its parent company like margarine in order to cater to changing consumer tastes and opportunities in food sector. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in various countries. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 24: Weaknesses Price positioning in some categories allows for low price competition like Amul captured Kwality’s market. Limited success in changing eating habits of people. Competitors focusing on a particular product and eating up HUL’s share, like Nirma focusing on soaps and detergents. No company exist which do not possess any weakness SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 25: Success : It brings over confidence, arrogance, proudness etc. Rather the company being successful, should also be humble and should possess humility. Large organization: Because of which decision making is very slow. Co-ordination between the different department is not well organised. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 26: Opportunities Growing consumer base due to increasing income levels and new consumers from lower strata of the society. Untapped market in branded Ayurvedic medicines and other such consumer products. Opportunity in Food sector: changing consumer tastes. Expansion of horizons towards more and more countries SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 27: Threats Unfavourable raw material prices due to inflation, reducing profitability. Heavy onslaught of competition in the core categories from emerging players like ITC will result in higher advertising expenditure Spurious/counterfeit products in rural areas and small towns. Reduction in real income of consumers due to high inflation. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com BCG MATRIX : BCG MATRIX SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com BCG MATRIX : BCG MATRIX 1. Stars (=high growth, high market share)- use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 30: 2. Cash Cows (=low growth, high market share)- profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high- Foundation of a company SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 31: 3. Dogs (=low growth, low market share)- avoid and minimize the number of dogs in a company.- beware of expensive ‘turn around plans’.- deliver cash, otherwise liquidate SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 32: 4. Question Marks (= high growth, low market share)- have the worst cash characteristics of all, because high demands and low returns due to low market share- if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 33: either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com SPACE CHART : SPACE CHART Space chart comprises of four dimensions which are: Company’s Competitive advantage Company’s Financial strength Industry strength Environmental Stability SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s Competitive Advantage : Company’s Competitive Advantage SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s FinancialStrength : Company’s FinancialStrength SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s IndustryStrength : Company’s IndustryStrength SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s Environmental stability : Company’s Environmental stability SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 39: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Business andFinancial Metrics : Business andFinancial Metrics Sales growth of 13.36% in CY'07 and 9.38% in CY'06 can be attributed to aggressive launches, re-launches of products and a hike in product prices. HUL Total Income and Net Profit over the years (in Rs. Crore) SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 41: The net Income of the company has not increased at the same pace as revenues because of a decline in margins (from 18.5% in CY'04 to 16.7% in CY'07)in its soaps and detergents business and investment in IT and water purifier business in CY 05-06. There is an insignificant change in company's revenue mix in CY04-07 period. Soaps and Detergents business contributes highest (46%) towards revenues followed by Personal care products (26%). SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 42: Despite being highest revenue generator soaps and detergents business is not the most profitable segment. Personal care contributes highest (46.2%) towards the EBIT which is due to high margins and low penetration of the market. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Discussion FY'09 (Financial Year 2009) : Discussion FY'09 (Financial Year 2009) HUL has shown steady sales growth by 19-20 % in Jan - Sep'08 but it was largely price led due to a hike in product prices in the previous two quarters . Volume growth has decreased from 10.2% in Q1CY08 to 6.8% in Q3CY08. HUL Total Sales Revenue distribution across segments (in %) SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 44: EBIT margins fell by 30bps to 12.9 due to inflation of Commodities prices but net profit saw a raise to 34% on account of income from sale of properties. HUL EBIT distribution across segments (in %) SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Business Segments : Business Segments HUL revenue distribution across segments for CY'07 SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 46: Soaps and Detergents : 46% Revenue, 44% EBIT Personal Care Products : 26% Revenue, 46.2% EBIT Beverages : 11% Revenue,10.3% EBIT Foods : 4% Revenue, 0.8% EBIT Ice Cream : 1% Revenue, 0.6%EBIT Others: growth of 41.5% SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Per Capita consumption of personalCare product : Per Capita consumption of personalCare product SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 48: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 49: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 50: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 51: Out of four posture in the SPACE market that are: Aggressiveness posture Competitive posture Conservative posture Defensive posture HUL lies in the aggressive posture. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Aggressive Posture : Aggressive Posture HUL enjoys a competitive advantage and also has a high financial strength. HUL belongs to an attractive industry i.e. FMCG, which operates in an relatively stable environment. HUL fully exploits the opportunities available in the FMCG industry, also it tries to acquire P&G’s market share. HUL concentrate on the resource available and uses it to the maximum which help to achieve high market share. It is similar to generic strategy of cost leadership strategy. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 53: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com FMCG industry is an industry of low cost producer in the industry (HUL). Here the firm sells its product either at average industry prices to earn a product higher than that of its rivals, below the average industry prices to gain market share. Firms which succeed in cost leadership often have internal strengths as: Access of capital required to make a significant investment. Skills in designing products for deficient manufacturing. Slide 54: A presentation by:- Aarti , Ujjwal, Moonjoy, Narendra Group No - 2 ISMR, PUNE , SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com SPACE CHART ANALYSIS OF HUL You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
SPACE CHART ANALYSIS-Uniliver ujjwal_028 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1243 Category: Education License: All Rights Reserved Like it (11) Dislike it (0) Added: December 12, 2009 This Presentation is Public Favorites: 3 Presentation Description Strategic Positioning and action Evalutation Request: Please Dont ask to send the ppts. to your mails or about the download link. Sorry Comments Posting comment... By: 170292 (16 month(s) ago) awesome...!!! the presentation is too good and precise..and i want this..esp. coz i want to use ur space chart analysis for my project. can u pls also send me the data source for the same?? i mean the basis on which u rated the company's financial position , competitive advantage,etc..pls..i want it asap.:) my mail id is hemilsmiles@gmail.com Saving..... Post Reply Close Saving..... Edit Comment Close By: ravish1 (17 month(s) ago) hey brother i need this ppt if u pls send me on my id it will be great help from your side (ravish1@ymail.com) please brother its request... Saving..... Post Reply Close Saving..... Edit Comment Close By: Sudarshna (26 month(s) ago) Could I please download the presentation? Saving..... Post Reply Close Saving..... Edit Comment Close By: sehrimalik (27 month(s) ago) o thanks i got it atlast Saving..... Post Reply Close Saving..... Edit Comment Close By: mbabma (28 month(s) ago) i want to download sapce matrix Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: SPACE CHART ANALYSIS Under Guidance Of Prof. Abhijeet Naag (Chief Academic Advisor, ISMR,PUNE) HLL ‘Lever’ ages the power of Hindustan : HLL ‘Lever’ ages the power of Hindustan In tune with its global identity, FMCG giant Hindustan Lever Ltd. (HLL) has finally re-christened itself as Hindustan Unilever Ltd. (HUL) after getting the government nod. The name change got the board of directors’ approval which was followed by shareholders’ approval in May 2007. The new name asserts the equilibrium between the company’s heritage in the country and the desired global alignment with its corporate brand ‘Unilever’. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… The company has also released its new logo which is being publicised through massive campaigns. The new logo carries Unilever’s statement of ‘adding vitality to life’. It incorporates the ‘U’ of Unilever that comprises of 25 different vitality icons and has the name Hindustan Unilever Ltd. inscribed at the bottom. According to the company officials, the corporate name will enhance Unilever’s global scale operations which will in turn benefit the Indian business locally and globally. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… Type : Public company BSE:HUL Headquarters : Mumbai, India Industry : Fast Moving Consumer Goods (FMCG) Products : Home & Personal Care, Foods, Water Purifier Parent : Unilever Plc Website : www.hul.co.in SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… Hindustan Unilever Limited (abbreviated to HUL) (BSE: HUL) formerly Hindustan Lever Limited, is India’s largest consumer products company and has an annual turnover of over Rs 13,000 crores (calendar year 2007). It was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.. It is headquartered in Mumbai, India and has an employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in late June 2007 to “Hindustan Unilever Limited”. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business World, one of India’s leading business magazines. The rating was based on a compilation of the magazines annual survey of India’s Most Reputed Companies over the past 25 years. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as Soaps, Tea, Detergents and Shampoos amongst others with over 700 million Indian consumers using its products. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… It has over 35 brands. Sixteen of HUL’s brands featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. It’s a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007 SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 9: In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. CONT… SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 10: 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). These three companies merged to form HUL in November 1956. CONT… SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Mission : Mission Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com 6 Factors : 6 Factors Six factors that make Hindustan Lever well-positioned to continue to succeed in India . In each case, HLL local strength are complemented by Unilever’s global strength. The factors are:- SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 13: An unmatched brand that serve many Indians that make up this market. The innovation and R&D capabilities that position us uniquely to straddle the pyramid. A track record of building large and profitable mass market, giving us a head- start in new, growing segment. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 14: A versatile distribution network that is capable of managing both traditional and modern trade. A good track – record of combining corporate responsibility and business strategies to aid rural development in India. A strong local talent base. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Present Status : Present Status Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs.13718 crores. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com HUL's Products : HUL's Products Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic Plus, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's, Dove, ELLE 18, Axe, Bru, Domex, Vim, Breeze, Liril, Rexona, Lipton Taaza Tea, Pears, Vaseline, Lakme and many more. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com HLL powers ahead on powerbrands : HLL powers ahead on powerbrands For fast moving consumer goods giant Hindustan Lever Ltd (HLL), it is time to reap benefits arising out of efforts taken in past. Its strategy to focus on key brands tagged as `power brands` and fighting low price competition by focussing on technology and innovation, is paying rich dividends. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com CONT… : CONT… The benefits are evident from three per cent growth in net sales (discontinued business taken for comparison). Moreover, it is continuing business has grown by 3.5 per cent mainly on the back of growth in its power brands. HPC (home and personal care) power brands recorded growth of 4.6 per cent, while foods and beverages power brands grew by 8.3 per cent. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 19: Hindustan Unilever Limited (HUL) announced its results for December Quarter 2008. Net Sales grew by 17% and FMCG by 21% with underlying volume growth of 2%. HPC Business grew 21% driven by price growth in Soaps and Detergents and all round volume growth in Personal Products. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 20: Foods business grew by 23% with a strong performance across Beverages, Processed foods and Ice-Cream. However, impact of high input cost inflation continued in this quarter. Year -to-date investment behind brands continues at 10.1% of turnover, growing at 16%. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com SWOT - HUL : SWOT - HUL Strengths Product portfolio: As many as 129 product lines which no other FMCG has. Quality of manpower Strong and well differentiated brands with leading share positions. Distinctly placed products providing reach to every segment of society. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 22: Consumer understanding and systems for building consumer insight Integrated supply chain and well spread manufacturing units Distribution structure with wide reach, high quality coverage – The launch of project “Shakti” has helped HUL to create brand awareness and extensive reach in rural India. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 23: Access to Unilever global technology, capability and sharing of best practices from other Unilever companies. Well placed to take advantage of growth in rural India and lower strata of the society through “Shakti”. It could look at introducing products from its parent company like margarine in order to cater to changing consumer tastes and opportunities in food sector. It can be a leader in exports by positioning itself as a sourcing hub for Unilever companies in various countries. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 24: Weaknesses Price positioning in some categories allows for low price competition like Amul captured Kwality’s market. Limited success in changing eating habits of people. Competitors focusing on a particular product and eating up HUL’s share, like Nirma focusing on soaps and detergents. No company exist which do not possess any weakness SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 25: Success : It brings over confidence, arrogance, proudness etc. Rather the company being successful, should also be humble and should possess humility. Large organization: Because of which decision making is very slow. Co-ordination between the different department is not well organised. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 26: Opportunities Growing consumer base due to increasing income levels and new consumers from lower strata of the society. Untapped market in branded Ayurvedic medicines and other such consumer products. Opportunity in Food sector: changing consumer tastes. Expansion of horizons towards more and more countries SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 27: Threats Unfavourable raw material prices due to inflation, reducing profitability. Heavy onslaught of competition in the core categories from emerging players like ITC will result in higher advertising expenditure Spurious/counterfeit products in rural areas and small towns. Reduction in real income of consumers due to high inflation. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com BCG MATRIX : BCG MATRIX SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com BCG MATRIX : BCG MATRIX 1. Stars (=high growth, high market share)- use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. - frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 30: 2. Cash Cows (=low growth, high market share)- profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high- Foundation of a company SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 31: 3. Dogs (=low growth, low market share)- avoid and minimize the number of dogs in a company.- beware of expensive ‘turn around plans’.- deliver cash, otherwise liquidate SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 32: 4. Question Marks (= high growth, low market share)- have the worst cash characteristics of all, because high demands and low returns due to low market share- if nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 33: either invest heavily or sell off or invest nothing and generate whatever cash it can. Increase market share or deliver cash. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com SPACE CHART : SPACE CHART Space chart comprises of four dimensions which are: Company’s Competitive advantage Company’s Financial strength Industry strength Environmental Stability SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s Competitive Advantage : Company’s Competitive Advantage SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s FinancialStrength : Company’s FinancialStrength SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s IndustryStrength : Company’s IndustryStrength SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Company’s Environmental stability : Company’s Environmental stability SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 39: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Business andFinancial Metrics : Business andFinancial Metrics Sales growth of 13.36% in CY'07 and 9.38% in CY'06 can be attributed to aggressive launches, re-launches of products and a hike in product prices. HUL Total Income and Net Profit over the years (in Rs. Crore) SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 41: The net Income of the company has not increased at the same pace as revenues because of a decline in margins (from 18.5% in CY'04 to 16.7% in CY'07)in its soaps and detergents business and investment in IT and water purifier business in CY 05-06. There is an insignificant change in company's revenue mix in CY04-07 period. Soaps and Detergents business contributes highest (46%) towards revenues followed by Personal care products (26%). SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 42: Despite being highest revenue generator soaps and detergents business is not the most profitable segment. Personal care contributes highest (46.2%) towards the EBIT which is due to high margins and low penetration of the market. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Discussion FY'09 (Financial Year 2009) : Discussion FY'09 (Financial Year 2009) HUL has shown steady sales growth by 19-20 % in Jan - Sep'08 but it was largely price led due to a hike in product prices in the previous two quarters . Volume growth has decreased from 10.2% in Q1CY08 to 6.8% in Q3CY08. HUL Total Sales Revenue distribution across segments (in %) SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 44: EBIT margins fell by 30bps to 12.9 due to inflation of Commodities prices but net profit saw a raise to 34% on account of income from sale of properties. HUL EBIT distribution across segments (in %) SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Business Segments : Business Segments HUL revenue distribution across segments for CY'07 SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 46: Soaps and Detergents : 46% Revenue, 44% EBIT Personal Care Products : 26% Revenue, 46.2% EBIT Beverages : 11% Revenue,10.3% EBIT Foods : 4% Revenue, 0.8% EBIT Ice Cream : 1% Revenue, 0.6%EBIT Others: growth of 41.5% SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Per Capita consumption of personalCare product : Per Capita consumption of personalCare product SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 48: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 49: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 50: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 51: Out of four posture in the SPACE market that are: Aggressiveness posture Competitive posture Conservative posture Defensive posture HUL lies in the aggressive posture. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Aggressive Posture : Aggressive Posture HUL enjoys a competitive advantage and also has a high financial strength. HUL belongs to an attractive industry i.e. FMCG, which operates in an relatively stable environment. HUL fully exploits the opportunities available in the FMCG industry, also it tries to acquire P&G’s market share. HUL concentrate on the resource available and uses it to the maximum which help to achieve high market share. It is similar to generic strategy of cost leadership strategy. SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com Slide 53: SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com FMCG industry is an industry of low cost producer in the industry (HUL). Here the firm sells its product either at average industry prices to earn a product higher than that of its rivals, below the average industry prices to gain market share. Firms which succeed in cost leadership often have internal strengths as: Access of capital required to make a significant investment. Skills in designing products for deficient manufacturing. Slide 54: A presentation by:- Aarti , Ujjwal, Moonjoy, Narendra Group No - 2 ISMR, PUNE , SPACE CHART ANALYSIS OF HUL, BY AARTI, UJJWAL,MOONJOY,NARENDRA (FROM I.S.M.R,PUNE),www.ismrpune.com SPACE CHART ANALYSIS OF HUL