Life Bouy Fire Mm .docx

By Yogesh gowda Muthappa K.M Afzal pasha Tranzi K.C

20182MBA0552 20182MBA0520 20182MBA0486 20182MBA0548

MD Jaffar laskar 20182MBA0517

ACKNOWLEDGEMENT

Before we get into thick of things, we would like to add a few words of appreciation for the people who have been a part of this project right from its inception. The writing of this project has been one of the significant academic challenges we have faced and without the support, patience, and guidance of the people involved, this task would not have been completed.It is to them we owe our deepest gratitude.

It gives Us Immense pleasure in presenting this project report on “PROJECT TOPIC” It has been our privilege to have a team of project guide who have assisted us from the commencement of this project. The success of this project is a result of sheer hard work, and determination put in by us with the help of my project guide. We hereby take this opportunity to add a special note of thanks for PROF. SANJAY KUMAR . His wisdom, knowledge, and commitment to the highest standards inspired and motivated us. Without his insight, support, and energy, this project wouldn’t have kick-started and neither would have reached fruitfulness.

We also feel heartiest sense of obligation to who helped me in collection of data & resource material & also in its processing as well as in drafting manuscript. The project is dedicated to all those people, who helped us while doing this project.

INTRODUCTION Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai, Maharashtra. It is a subsidiary of Unilever, a British-Dutch company. HUL's products include foods, beverages, cleaning agents, personal care products and water purifiers. HUL was established in 1933 as Lever Brothers and, in 1956, became known as Hindustan Lever Limited, as a result of a merger among Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It employs over 16,000 workers while it also indirectly helping to facilitate the employment of over 65,000 people. The company was renamed in June 2007 as "Hindustan Unilever Limited".

Life buoy Lifebuoy is a brand of soap marketed by Unilever. Lifebuoy was originally, and for much of its history, a carbolic soap containing phenol (carbolic acid, a compound extracted from coal tar). The soaps manufactured today under the Lifebuoy brand do not contain phenol. Currently there are many variants of Lifebuoy. Lifebuoy was introduced by Lever Brothers in 1895 in England. Originally a carbolic soap containing phenol, different varieties were later introduced without the medicinal carbolic smell, such as the coral-colored Lifebuoy during the late 1950s and Lifebuoy Minty Refresher in 1966.[1] Lifebuoy was one of the most popular soaps in the United States from approximately 1923 to the mid-‘50s,[2] when perfumed soaps took over the market. It was the best selling medicated/health soap in North America until roughly 1951. It was well known for its red and yellow packaging, red color and octagonal shape, as well as its carbolic aroma. Sometime in 1951 or 1952, due to declining sales, Lever Bros

Unilever’s Vision Statement Unilever’s corporate vision is “to make sustainable living commonplace. We believe this is the best long-term way for our business to grow.” This vision statement puts emphasis on sustainability, especially among consumers. The following components are notable in Unilever’s vision statement: 1. Commonplace sustainable living 2. Best long-term way 3. Business growth Commonplace sustainable living is a core component in Unilever’s corporate vision statement. This component shows the company’s efforts in changing its products to suit current market conditions. For example, through sustainable design for home care and personal care products, Unilever helps consumers reach their goals to integrate sustainability in their lives. The corporate vision also states that commonplace sustainability is the best long-term way for the business. Unilever understands the importance of sustainability and other market trends shaping the industry. Moreover, the vision statement reflects the company’s view of sustainability as a way to maintain business growth. This vision statement aligns with Unilever’s corporate social responsibility strategy to address business stakeholders in the consumer goods industry.

Unilever’s Mission Statement Unilever’s corporate mission is “to add vitality to life. We meet every day needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.” This mission statement underscores how the company satisfies customers in various aspects of their lives. The following are the significant components in Unilever’s mission statement: 1. Adding vitality to life 2. Meeting everyday needs for nutrition, hygiene, and personal care 3. Helping people feel good, look good, and get more out of life Adding vitality to life is a general indicator of business strategy in Unilever’s corporate mission statement. Such vitality is the value that consumers can expect from the company’s products. The corporate mission also specifies the aspects of life where such vitality is added. For example, Unilever’s food products address consumers’ vitality needs in terms of nutrition. Furthermore, through these products, the company attracts customers who want to feel good, look good, and get more out of life. The mission statement’s specification of the types of products provides a foundation for the product.

Micro Environmental Factors These are internal factors close to the company that have a direct impact on the company’s strategy. These factors include: 

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Customers: Organizations survive on the basis of meeting the needs, wants and providing benefits for their customers. Failure to do so will result in a failed business strategy. Employees: Employing the correct staff and keeping these staff motivated is an essential part of the strategic planning process of an organization. Training and development plays an essential role particular in service sector marketing inorder to gain competitive edge. Suppliers: Increase in raw material prices will have a knock on affect on the marketing mix strategy of an organization. Prices may be forced up as a result. Closer supplier relationships are one way of ensuring competitive and quality products for an organization. Media: Positive or adverse media attentions to a company’s product or service can in some cases make or break it. Consumer programmes with a wider and more direct audience can also have a very powerful and positive impact, forcing the company to change their tactics. Competitors: The name of the game in marketing is differentiation. What benefit can the company offer which is better then their competitors? Can they sustain this differentiation over a period of time from their competitors? Competitor analysis and monitoring is crucial if the company is to maintain its position within the market. Competitors include Revlon, Oriflame, Mac, Avon, Maybelline, etc.

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According to Stonehouse and al ‘the macro environment is the part of the environment over which the business can rarely exert any direct influence but to which it must respond’. To analyse Unilever’s external environment critically, the basic method is PESTEL, which focuses on the change in terms of politics, economy, society, technology, environment and laws. The main factors that influence Unilever’s macro environment are economy and society. For economic factor, new emerging market is developing rapidly, such as India which stands for $300 million every year. According to the economic situation,

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the whole world is undergoing a revolution in the history. The economic power has transferred from developed countries to China and other emerging market. With market reform, the speed of development in new emerging economies is much faster than that of developed countries. And this discrepancy is more easily to be found. Because of such specific market, political aspect also should be taken into account. In some countries where increasing GDP and rate of employment is everything, like South Africa, negotiation and special treatment from government will become good advantages for companies. Obviously, Unilever has done well in capitalizing this advantages into growth. In India, besides retail market in cities, Unilever also shows great interest in rural market, which is often ignored by other enterprises. The company has invested much in rural population who are the biggest potential consumers in the future though rank lowest now in global economy. Unilever has given fully play to opportune time, advantageous terrain an popular support of its subsidiary Hindustan lever ltd, exploiting rural retail market in-depth and finally gained a national vision in India. What’s more, the economic factor in macro environment not only refers to the domestic economy. Global economy situation also influenced its development a lot. The economic crisis in 2008 has affected almost every nation, every industry in the world. So does Unilever. Take Chinese market for an example, in recent 30 years, particularly in recent ten years, the GDP has grew with an increase never under 10%, but in 2008 after September, the number dropped to 9.5%, lower than that of the second quarter. For political factor, similarly, let’s hold Chinese market as the example. When Unilever enter Chinese market at first, it can only establish joint venture on the ground of the restricted policies at that time. The company set up Shanghai Lever Ltd with local enterprises in 1986. However, both party had divergence on development strategies and the joint venture structure leaded to decreased management efficiency. In 1999, Unilever gave up joining investment with local enterprises and turn to co-operate with its headquarter, building up Unilever Ltd, China. This change has greatly enforced the company’s control over business in China. Besides economy and politics, social factor also affect Unilever. Since the late 1990s, Unilever has confronted an awkward situation in China. As Unilever pursue the multi brand strategy, only 14% Chinese knew what Unilever is at that time. But its competitor, Nestle and P&G has already gained well public awareness. Thus the company started marketing with social responsibility. “Unilever Hope Star” project is then designed to help 200 impoverished students for their university with financial assistance. The then president of Unilever also flied to Chongqing to meet with the first 25 students. In addition, it invested hundreds of

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Hope School in many parts of China. All these efficient public-service activities has increased Unilever’s reputation and fostered a positive corporate image. Micro environment includes suppliers, distributors, customers, competitors and publics. As to Unilever, among them the most important one is distributors and competitors weigh much as well. For the competitors, P&G, undoubtedly, is Unilever’s closest one. There are fierce rivalries between two companies in many fields like hair product. P&G has introduced Head-shoulders, REJOICE and PANTENE successively, known as professional anti-scurf, smooth hair and conditioning hair shampoos. Thus, Unilever has launched a new brand “CLREAR” in order to cover its shortage in anti-handcuff market. This has been not a small impact on P&G.

BCG MATRIX 1. BCG Matrix (Boston consulting Group): The Boston consulting group a leading management consulting firm develops and popularized the growth share matrix as shown in figure. BCG MATRIX of Unilever Pvt. Ltd: According to the Unilever Pvt. Ltd, the relative market share and market growth rates of different products of unilever are given below:- Name Relative Market Share Market Growth Rate Brooke bond supreme 41% 45.03% Knorr noodle 51% 29% Lux 21% 29.15% Surf Excel 23% 27.37% Lifebuoy shampoo 15% 85.03% Rexona deodorant 2% 8% BCG MATRIX Figure: Star ??? Broke bond supreme Lifebuoy shampoo Market growth rate High Knorr noodles Cash Cow Dog Surf excel Rexona deodorant low Lux High low Relative Market ShareKamran Mukhtiar 2. Conclusions: There are the conclusions for Unilever Pvt. Ltd products, how they are lying in the BCG matrix is given below: 1. Surf Excel & Lux :The market share value of Surf excel and Lux are high and relative market growth rate of Surf excel and Lux are low, that is why Surf excel and Lux are lying in BCG Matrix at Cash cow point. 2. Broke bond supreme & Knorr noodles: The market share value of Broke bond supreme and Knoor noodles are high and relative market growth rate of Broke bond supreme and Knoor noodles are high, that is why Broke bond supreme and Knoor noodles are lying in BCG Matrix at Star point. 3. Lifebuoy Shampoo: The market share value of Lifebuoy Shampoo is low and relative market growth rate of Lifebuoy Shampoo is high, that is why Lifebuoy Shampoo is lying in BCG Matrix at??? Point. At this point, Company makes their investment on this product to get the point of CASH COW and STAR in BCG matrix. 4. Rexona deodorant: The market share value of Rexona deodorant is low and relative market growth rate of Rexona deodorant is low, that is why Rexona deodorant is lying in BCG Matrix at Dog point. Kamran Mukhtiar

Unilever’s Five Forces Analysis Porter’s Model Overview: Unilever’s Five Forces Analysis Unilever deals with a wide variety of external factors, considering the extent of its operations in the global consumer goods market. However, as shown in this Five Forces analysis, such external factors lead to variations in the intensities of the five forces impacting the business. The following are the intensities of the five forces in affecting Unilever: 1. 2. 3. 4. 5.

Competitive rivalry or competition (strong force) Bargaining power of buyers or customers (strong force) Bargaining power of suppliers (moderate force) Threat of substitutes or substitution (weak force) Threat of new entrants or new entry (weak force)

Competitive Rivalry or Competition with Unilever (Strong Force)

Competition is a major force in Unilever’s industry environment. This section of the Five Forces analysis identifies the external factors that present the impact of firms on each other. The strong force of competitive rivalry against Unilever is based on the following external factors and their intensities:   

High number of firms (strong force) High aggressiveness of firms (strong force) Low switching costs (strong force) There are many firms operating in the consumer goods industry. This external factor imposes a strong force on Unilever. In addition, these firms are generally aggressive, further adding to the intensity of competition. Unilever also experiences tough competition because of low switching costs. For example, it is easy for consumers to switch from one firm to another. Thus, a high level of competition is shown in this

section of Unilever’s Five Forces analysis, highlighting the need to consider competitive rivalry as a high-priority force in the company’s industry environment.

Bargaining Power of Unilever’s Customers/Buyers (Strong Force)

Unilever’s business and industry environment depend on the response of consumers to its products. The influence of buyers on business performance is considered in this section of the Five Forces analysis. Unilever must address the following external factors that lead to the strong force of the bargaining power of customers:   

Low switching costs (strong force) High quality of information (strong force) Small size of individual buyers (weak force) The low switching costs make it easy for consumers to transfer from Unilever’s products to other companies’ products. This external factor contributes to the strong intensity of the bargaining power of buyers. In addition, consumers have access to high quality of information about consumer goods, making it even easier for them to decide when transferring from Unilever to other providers. For example, buyers can compare products based on online information. The small size of an individual consumer’s purchases has minimal impact on Unilever’s profits. However, the low switching costs and high quality of information outweigh this third external factor in the industry environment. Based on this section of the Five Forces analysis, the bargaining power of customers is one of the strongest forces affecting Unilever’s consumer goods business.

Bargaining Power of Unilever’s Suppliers (Moderate Force)

Suppliers impact Unilever’s industry environment by affecting the level of supply available to firms. This section of the Five Forces analysis presents the influence of suppliers on companies. The following are the external factors that contribute to the moderate force of the bargaining power of suppliers on Unilever:

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Moderate size of individual suppliers (moderate force) Moderate population of suppliers (moderate force) Moderate overall supply (moderate force) While Unilever has large suppliers like foreign firms that supply paper and oil, the average supplier is moderate in size. This external factor imposes a moderate intensity force on the consumer goods industry environment. In addition, the moderate population of suppliers enables them to impose significant but limited influence on firms like Unilever. Similarly, the moderate level of the overall supply adds to such significant but limited influence of suppliers. For example, any supplier’s change in production level leads to significant but limited change in the availability of raw materials used in Unilever’s business. Other firms in the industry are similarly affected. As shown in this section of the Five Forces analysis of Unilever, the bargaining power of suppliers is a significant but moderate consideration in the consumer goods industry environment

Threat of Substitutes or Substitution (Weak Force)

Substitutes can reduce Unilever’s revenues and the strength of firms in the consumer goods industry environment. The impact of substitution is determined in this section of the Five Forces analysis. In Unilever’s case, the following external factors are responsible for the weak force of the threat of substitution:   

Low switching costs (strong force) Low substitute availability (weak force) Low performance to price ratio of substitutes (weak force) The low switching costs enable consumers to easily use substitutes to Unilever’s products. This external factor imposes a strong force on the company and the consumer goods industry environment. However, the overall impact of substitution is weakened because of the low availability of substitutes. For example, it is easier to access Unilever’s Close-Up toothpaste from grocery stores than to obtain substitutes like homemade organic dentifrice. In relation, most substitutes have low performance with minimal or insignificant cost difference when compared to consumer goods readily available in the market. This condition makes Unilever’s products more attractive than substitutes, thereby further weakening the intensity of the threat of substitution. This

section of Unilever’s Five Forces analysis shows that the threat of substitutes is a minor issue in the business.

ANSOFF’S MATRIX

Market Penetration This strategy focuses on increasing the volume of sales of existing products to the organisation’s existing market. Questions asked:  How can we defend our market share?  How can we grow our market?

Product Development This strategy focuses on reaching the existing market with new products. Questions asked:  How can we expand our product portfolio by modifying or creating products?

Market Development This strategy focuses on reaching new markets with existing products in the portfolio. Questions asked:  How can we extend our market?  Through new market sectors?  Through new geographical areas?

Diversification This strategy focuses on reaching new markets with new products. Diversification can be either related or unrelated. Related Diversification: The organisation stays within a market they have familiarity with. Unrelated Diversification: The organisation moves into a market or industry they have no experience with. This is considered a high risk strategy.

SWOT Analysis of Lifebuoy Lifebuoy is one of the oldest products from Unilever. Lifebuoy was the first soap to have a disinfectant chemical carbonic acid in it which gave it strong medicinal scent and red color. Lifebuoy is amongst the top 15 brands in the world and is a billion dollar brand from many years in the past.

Strengths in the SWOT Analysis of Lifebuoy: Brand Credibility: Lifebuoy

has been successful in gaining the trust of its customers have been in the market for over 100 years. Its health-centric approach and communication have helped it gain credibility and a loyal set of customers.

Medicinal approach: Lifebuoy has positioned itself as a product with a medicinal approach which could combat germs and provide a healthy disinfectant bathing soap.

Affordable: Lifebuoy has been priced at a range in order to be affordable to all kinds of markets especially rural markets.

Strong Distribution:Lifebuoy has a strong distribution channel worldwide which makes the product available in the farthest corner of various countries. Lifebuoy has made special efforts to be present in the rural markets where the demand for the product is really high.

Unilever Product: Lifebuoy has a competitive advantage coming from the armory of Unilever which provides it support in distribution as well as in finances.

Weaknesses in the SWOT Analysis of Lifebuoy : Perception of a male centric brand: Lifebuoy is perceived to be a male centric brand and even after many efforts by Lifebuoy to project the brand as a family brand. Not popular in urban markets: While the brand has priced the product in order to be available for all especially rural markets, its urban market penetration is relatively low.

Perception as an inferior product: Due to its low prices and an image of “not being beauty soap”, Lifebuoy is considered as an inferior product.

Opportunities in the SWOT Analysis of Lifebuoy : Increasing disposable income: Disposable

incomes of people around the world are increasing and thus it is also expected that consumption in the FMCG industry is going to increase which will eventually increase sales.

Promote Lifebuoy with a message: Unilever has concentrated in providing social messages by promoting its products. Lifebuoy has also been one of the many products which have been promoted with a social message. To add to this Lifebuoy should take up on missions to fight global epidemics.

Increasing health awareness: There

is an increase in health awareness globally which can provide Lifebuoy an advantage considering its disinfectant composition.

Threats in the SWOT Analysis of Lifebuoy : Intense competition: Lifebuoy is subjected to intense competition from various local as well as global products such as Dettol and Savlon etc. Intense competition impacts market share.

Market Cannibalization: Unilever

has many products in same category such as Lux, Dove etc. Although all the products are positioned to different market segments but they cannibalize each other at a microscopic level.

Increasing awareness of Herbal products: Awareness of herbal based products is increasing globally. This can affect Lifebuoy’s market which is essentially a chemical based product.

CONCLUSION Hindustan unilever ltd, is a leading FMCG company in India and from last three consecutive years has shown accelerated growth in FMCG portfolio. Customers in India are also spending more in FMCG as their standard of living is growing .HUL has placed itself successfully in the position of market leader in FMCG products though there was some downfall in sales and profit of the company in the beginning of this decade but after that HUL has shown considerable rise in both sales and profit. The future of the company is also looking bright as FMCG market in India is still expanding and so we can safely conclude that HUL will be able to secure its number one position in FMCG product.

HUL has also started project SHAKTI that has provided it direct reach to rural market this may be considered a revolutionary step since the urban market is reaching its saturation level and there is a huge scope exploring rural market this will also be helpful not only increasing its market share but also fight competition.

BIBLIOGRAPHY In order to make this project we have taken the help of the following websites. . www.wikipedia.com . www.oppapers.com . www.hul.co.in . www.pdfcoke.com