SWOT ANALYSIS

Strengths:
Strong brand portfolio, price, quantity & variety.

Innovative Aspects. Presence of Established distribution networks in both urban and rural areas. 3400 distributers 16 million outlets over the world. 700 million customer base. Strong R&D of the company Highly skilled human resource. Corporate Social Responsibility(CSR)

SWOT Analysis Weaknesses:

Strong Competitors. Low exports level(at present). Changing consumption pattern. High advertising costs.

SWOT Analysis
Opportunities:
Large domestic market over a billion population. Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers.

SWOT Analysis

Threats:
 Tax and regulatory structure.

 Mimic of brands  Entry of ITC in FMCG sector.  Increasing cost of raw material.

RIVALS
Consumer in this category enjoy multitude of choices. It does not cost anything for a consumer to buy one brand of shampoo instead of another, making the industry quite competitive.

SUPPLIERS
Consumer product faces some amount of supplier power simply because of the cost they incur when switching suppliers Suppliers that do a large amount of business with these companies are also beholden to their customers.

Verdict: limited supply power

BUYERS(CUSTOMERS)
Consumer faces weak buying power because customers are fragmented and have little influence on price or product. Considering buyer power retailers it is very high since they are able to negotiate the price with the companies.

Verdict: Strong buyer power from retailers.

POTENTIAL ENTRENT
Given the amount of capital investment needed to enter certain segment in house hold consumer products, the threat of new entrant is fairly low. Whether the new entrant can get its products on the shelves of the same retailers as its much larger rivals.

THREAT OF SUBSTITUTE
Within the consumer product industry, brand succeeds in helping to build a competitive advantage, but even the pricing power of the brands can be eroded.

STRATEGIES FOLLOWED AT HUL

 Distribution strategy.  Distribution

network(direct selling)  Brand extension strategy  Line extension strategy  Promotional strategy

MARKETING STRATEGIES OF HUL FOR RURAL INDIA

For long term benefits, HUL started Project Streamline in 1997. Appointed 6000 Sub-stockists that directly covers about 50,000 villages & 250 million customers. Integrate Economic, Environment & Social objectives with Business agenda. Project Shakti, partnership with Self help groups of Rural women & covers 5000 villages in 52 districts in different states.

EVERYDAY I WILL SELL. EVERYDAY I WILL EARN. MONEY. RESPECT

Started in 2001, Shakti is HUL's rural initiative, which targets small villages with population of less than 2000 people or less. micro-enterprise opportunities for rural women Providing health n hygiene education through shaktivani program ishakti portal Shakti has already been extended to about 15 states ,80,000 villages in with 45,000 women entrepreneurs and generating Rs.700-1000 per month to each women.

Corporate social responsibility

Providing education on health and hygiene Women empowerment Water management Rehabilitation of special or underprivileged children Care for the destitute and HIV-positive Rural development. Plays active role in natural calamities

STRATEGIES ..
Concentrate on CORE Build momentum to the water business Develop competitive capabilities Integrated management development system

Manage cost pressure

Strong commitment to governance & CSR

18

HUL should
Think and operate strategically Be aware of international trends

Integrated management system Have greater commitment to their own professional development.

Be team focused

NEW MANAGEMENT DEVELOPMENT SYSTEM

19

NOW YOU CAN SEE THE VIDEO OF PROJECT SHAKTI IN RURAL AREA LAUNCHED BY HUL.

PRESENTED BY KULDEEP OJHA CHANDRABHAN BHALAVI DINESH SALAME