NAME : ATUL S. NIKAM PRAVIN S. KHANGAVKAR TOPIC : DIVERFICATION IN FIVE COMPNY CLASS DIV : : T.Y.

BMS A 58,59 MARKETING

ROLL NO : SUBJECT :

Introduction of Product Diverficiation :Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets.

Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. At the corporate level, it is generally very interesting[clarification needed ] entering a promising business outside of the scope of the existing business unit. Diversification is part of the four main growth strategies defined by the Product/Market

Ansoff matrix:Ansoff pointed out that a diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line,

whereas diversification usually requires a company to acquire new skills, new techniques and new facilities.

The

different

types

of

diversification

strategies:The strategies of diversification can include internal development of new products or markets, acquisition of a firm, alliance with a complementary company,licensing of new technologies, and distributing or importing a product line manufactured by another firm. Generally, the final strategy involves a combination of these options. This combination is determined in function of available

opportunities and consistency with the objectives and the resources of the company. There are three types of diversification: concentric, horizontal, and conglomerate.

Concentric diversification
This means that there is a technological similarity between the industries, which means that the firm is able to leverage

its technical know-how to gain some advantage. For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the marketing effort would need to change. It also seems to increase its market share to launch a new product that helps the particular company to earn profit. For instance, the addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialities Ltd. is an example of technological-related concentric diversification. The company could seek new products that have technological or marketing synergies with existing product lines appealing to a new group of customers.This also helps the company to tap that part of the market which remains untapped, and which presents an opportunity to earn profits.

Horizontal diversificati
The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. In a competitive environment, this form of diversification is

desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability. In other words, this strategy tends to increase the firm's dependence on certain market segments. For example, a company that was making notebooks earlier may also enter the pen market with its new product.

DIVERSIFICATION OF HINDUSTAN UNILEVER LIMITED HOME CARE PRODUCTS: Surf Excel was introduced in 1959. It is apioneer in the Indian detergent powder market, Surf Excel has constantly upgraded itself over the years, to answer theconstantly changing washing needs of the Indian homemaker. Today Surf Exceloffers outstanding stain removal ability on a wide range of stains. Surf Excel quick wash is powered with a pathbreaking technology- it reduces water consumptionand time taken for rinsing by 50%. It is a significant benefit, given the acute water scarcity in most of India.

VIM BAR Created in 1885, the Vim brand is still innovating and using the magic of naturalingredients to create unbeatable results over a hundred years later. Key Facts Vim was the original hand dishwashing brand: so we invented the whole category!

Vim is sold in four continents, is the leading hand dishwashing brand in twentycountries, and is available to more than 2 billion people around the world.

Vim began life as a soap (both in England, and in Thailand, where King Rama Vasked Unilever to supply his household with soap), but is now available as acomplete range of hand dishwashing including bars, powders and liquids.

.Cif- The Worlds leading cream cleaner which gives you the power to deal withthe toughest dirt is now in India.

K ey Facts

Cif is the number 1 cream cleaner in the World.

It is the number one cleaner in various countries including France, Germany,Russia.

Its a 500 million Euro Brand.

Cif is Sold in 51 countries around the globe.

Personal care brands Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk,are recognised and love by consumers across India. They help consumers to look good and feel good and in turn get more out of life.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 productsfrom 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

LAKME

Lakme was the first major beauty brand in India and takes pride in being the experton Indian Beauty for over 50 years. It is complete beauty brand spanning colour cosmetics, skin care & hair styling products and extending to beauty services through the network of Lakme BeautySalons.

Its bond with beauty and fashion is manifested through the Lakme Fashion Week,which is now the largest fashion event of its kind in the country. Lakme has a foot print of over 1200 assisted sales outlets, which is the largest spanof outlets with Beauty Advisors in the country

anuary 2010

We sold our remaining Alcon shares to Novartis and also acquired Kraft Foods frozen pizza business.
March 2010

We faced a challenge from Greenpeace who wanted to be reassured about our commitment to sustainable Palm Oil. It was the first time we saw social media being used in a substantial way to challenge us and ask questions. We didnt get the handling of our response to the campaign itself quite right in social media, but on the issue at its heart palm oil - we took steps to both strengthen our position and to explain it more clearly.
May 2010

This month Nestl launched Special.T.

We launched the Nestl Cocoa Plan which will supply 38 million high quality, disease-resistant plantlets to farmers helping them rejuvenate their farms and increase productivity. The Nescaf Plan was also launched investing CHF 500 million to address responsible farming, sourcing and consumption across our coffee supply chain.

We also awarded the first Nestl Prize in Creating Shared Value to IDE Cambodia for its Farm Business Advisors programme and we

announced our partnership with the Forest Trust to work to combat deforestation.
September 2010

We announced the creation of Nestl Health Science and the Nestl Institute of Health Sciences, innovative ventures aimed at the prevention and eventually treatment of chronic medical conditions with science-based personalised nutrition solutions.
January 2011

We voluntarily submitted our policies and procedures to the FTSE4Good Policy Committee for independent review.
March 2011

We became the first infant formula manufacturer to be included in the FTSE4Good Index. This is the London Stock Exchangess responsible investment index and the only index that evaluates companies on their responsible marketing of breast-milk substitutes, alongside human rights and supply chain criteria.

April 2011

China was at the forefront, as we announced a partnership in April with Chinese food company Yinlu, a manufacturer of ready-to-drink peanut milk and canned rice porridge.

July 2011

We announced a partnership with Hsu Fu Chi, a confectionery and snacks manufacturer.

November 2011

We became the first food company to partner with the Fair Labor Association. This partnership will help us investigate if children are working in cocoa farms that supply our factories and, where we find problems, to solve them.

TATA COMPANY
Coffee Tata Global Beverages is present across the complete value chain, with coffee plantations, coffee curing, roasted and grounded coffees, instant coffees and coffee vending. Its Indian brands include Mr Bean, Mysore Gold, Coorg Pure, Tata Cafe and Tata Kaapi. In the US, Eight O'Clock Coffee is the best-selling whole-bean coffee, and the third-largest coffee brand by volume, in the country. Tea Tata Global Beverages has several major brands in the Indian market, among them Tata Tea, Tetley, Kanan Devan, Chakra Gold, Agni and Gemini. The group sells specialty teas under the brands of Tetley, Good Earth (USA), Grand (Russia) and Jemca (the Czech Republic). Tata Global Beverages also has an interest in Joekels Tea Packers, the third-largest tea company in South Africa; two Polish tea brands, Vitax and Flosana; and the China-based Zhejiang Tea Export and Import Company, which manufactures instant tea extracts. Water Tata Global Beverages produces and markets the Himalayan brand of bottled mineral water through the Mount Everest Mineral Water Company. Food additives Table salt is sold in four varieties - pure salt, iodised salt, crystalline salt and vacuum evaporated salt - under the brand names Tata Salt, Tata Salt Lite, I-Shakti Powder Salt and I-Shakti Crystal Salt.

Tata Salt also offers flavoured variants under the brand name Tata Salt Flavoritz. Telecommunications Tata Communications is one of the world's leading telecom solutions providers, with a global network of cable and satellite connectivity and a range of voice, data and enterprise solutions.

JOHNSON AND JOHNSON

Baby Care
With a legacy of over 100 years, Johnsons Baby is a market leader in its category, driving the trends and developments in the baby space. Johnsons Baby aspires to touch every baby in India with brands operating in the widest consumer spectrum. From premium products like Johnsons Baby Top-To-Toe Wash- the first ever liquid bath product for babies, Johnsons Baby Skincare Wipes to low cost outlay packs of soaps and powders that are more accessible to consumers at the bottom of the pyramid, our offerings cover an entire range.

Womens Health
India has the largest Womens Health business in Asia Pacific and the 3rd largest napkin market for Johnson & Johnson globally. Womens Health Division in India markets the popular brands Stayfree, Carefree and O.B. Tampons. Stayfree offers multiple variants at varied price points that cater to consumer needs spreading across different consumer needs. A strong market player, Stayfree drives market trends and developments in the sanitary health category.

Oral & Wound Care

Our Oral & Wound care segment sports power brands like BAND-AID, LISTERINE and Savlon. BAND-AID is one of our leading products in this space and has become a generic name in the wound care space. LISTERINE is a market leader* in the mouthwash category; Savlon Antiseptic Liquid and Soap are common household names in this space.

OTC
Globally, OTC is the largest contributor to the Consumer business of Johnson & Johnson. In India OTC franchise is present in various segments with strong brands.

NESTLE COMPANY

Nescaf
The worlds most trusted and enjoyed coffee - rich in natural goodness, flavour and convenience.

DRINK Since 1977, the Juicy Juice brand has endeavoured to help parents raise happy, healthy kids by providing them with a wide variety of nutritious juice options. All Nestl Juicy Juiceproducts are made from real fruit juice, providing an excellent source of vitamin C with no added sugars or artificial flavours. Juicy Juice products combine the wholesome goodness of real fruit and a delicious taste that will make your child smile with every glass. An easy way to ensure your kids get refreshed and have one of their daily recommended servings of fruits and vegetables

.Maggi

Quick and easy solutions - like bouillons, soups and seasonings, to help chefs and professional kitchens bring out the flavour and nutrition of fresh food ingredients.

WATER PRODUCT Pure Life was launched in 1998 to help meet the global need for a safe drinking water with a pleasant taste at an affordable price. Now present in more than 20 countries, Pure Life is the worlds most popular bottled water brand.

Kit Kat
Delighting consumers all over the world, Kit Kat is a favourite chocolate treat thanks to light wafers and delicious chocolate.

Parle Product of Diversification:Parle Agro is an Indian private limited company founded in 1929. It owns the brands including Frooti, Appy, LMN, Hippo and Bailley. Several Parle soda brands including Citra Thums Up, Limca, Gold Spot and Maaza were sold to Coca Cola in 1993 for a reported $40 million. At the time of sale, the Parle brands together had a 60% market share in the industry. The brand was strong in South India. Citra was phased out by 2000 to make way for Coke's international brand, Sprite

History:Parle Products was founded in 1929 in British India. It was owned by the Chauhan family of Vile Parle, Mumbai. The Parle brand became well known in India following the success of products such as the Parle-G biscuits and Thums Up soft drink. The original Parle company was split into three separate companies owned by the different factions of the original Chauhan family: Parle Products, led by Vijay, Sharad and Anup Chauhan (owner of the brands Parle-G, Melody, Mango Bite, Poppins, Monaco and KrackJack) Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia (owner of the brands such as Frooti and Appy) Parle Bisleri, led by Ramesh Chauhan All three companies continue to use the family

trademark name "Parle". Parle Agro Parle Agro commenced operations in 1984. It started with beverages, and later diversified into bottled water (1993), plastic packaging (1996) and confectionary (2007). Frooti, the first product rolled out of Parle Agro in 1985, became the largest selling mango drink in India. Parle Agro brands:Parle Agro Pvt. Ltd operates under three major business verticals: Beverages fruit drinks, nectars, juice, sparkling drinks Water packaged drinking water Foods confectionery, snacks Parle Agro also diversified into production of

PET preforms (semi-finished bottles) in 1996. Its customers include companies in the beverages, edible oil, confectionery and pharmaceutical segments.