Presentation on Close UP toothpaste
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The document provides information on Hindustan Unilever Limited (HUL) and its toothpaste brand Close Up. It discusses that HUL is one of the largest Fast Moving Consumer Goods (FMCG) companies in India with Close Up being a market leader in the gel toothpaste segment. The document also analyzes Close Up's marketing mix, segmentation, targeting, positioning and product life cycle. It further provides financial details of HUL such as revenues, profits, assets, expenses and organizational structure. Finally, it discusses the training needs and culture of HUL.
Presentation on Close UP toothpaste
- 1. Final Presentation on Close up Prepared by : Sawmyak Ch.Deb Roll no: P15FC079
- 2. Sectorial Information Fast Moving Consumer Goods otherwise known as CPG, is one of the biggest industries’ in the world and there are a lot of facts that stand the FMCG industry apart as a career choice: • FMCG companies are behind the biggest brands in the world. FMCG is all about names, the product which everyone recognizes from trips to the supermarket or from ads on television. • The FMCG industry changed fast and is constantly evolving. From the pace at which goods leave the shelves to the rate of product innovation and career progression, things move quickly. • FMCG companies can beat recession. Consumers will always need to buy the products created by FMCG companies. They may not buy big items like refrigerators or cars in a recession period but , floors still need to be cleaned , clothes need to be laundered & aches and pains still need to be soothed. • According to a report by Boston Consulting Group and the Confederation of Indian Industry, India’s robust economic growth and growing household incomes would increase consumer spending to US$ 3.6 trillion by 2020. The maximum consumer spending is likely to be seen occurring in food, consumer durables, housing, transport and communication sectors.
- 3. GDP Contribution to the Economy GDP Coribution Manufacturing Agriculture Services 19% 48% 33% Market Share Food Products Personal care and Household Healthcare
- 4. Historical Growth / De-growth pattern • The FMCG sector has grown at an annual average of about 11 per cent over the last decade. The overall FMCG market is expected to increase at (CAGR) of 14.7 per cent to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7 per cent to reach US$ 100 billion during 2012-2025.Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share. • Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the consumer market. The Government of India's policies and regulatory frameworks such as relaxation of license rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per cent in single-brand retail are some of the major growth drivers for the consumer market. Revenues($)Expected 0 50 100 150 2010 2011 2012 2013 2014 2025 Revenues($)Expected Revenues($)Expected
- 5. Reasons for Growth/ De-Growth patterns observed in FMCG sector • 100% FDI allowed in food processing and single brand retail and 51% in multi –brand retail is also the reason for growth of this sector. • Government initiative & support like loan waivers, disbursements through NREGA Programme, Pradhan Mantri Jan Dhan Yojana. • Growth of India’s FMCG purchased through modern trade is surpassing growth of FMCG purchased in general trade • In 2013 ,market size of the organized FMCG sector was 8 percent of the overall organized retail market and is expected to reach 30 percent by 2020.This represents the influence of modern retail over the FMCG sector • Share of the modern retail in FMCG sales is estimated to be 10 percent to 12 percent by 2016. • FMCG companies are partnering with major retail players to increase brand communication and boost their share in modern retail.
- 6. Porters 5 Forces model of FMCG Sector Industry High Competitveness Bargaining power of supplier's- Modest Barriers to entry - Modest Bargaining power of Customer - Low Threats of Substitute - High
- 7. Company Information • Name of the Company Hindustan Unilever Limited. • Date of Establishment 17 October 1933 • Revenue 4708.22(USD in Millions) • Market Cap 1739427.5602647(Rs in millions) • Corporate Address Unilever House B.D.Sawant Marg, Chakala Andheri East Mumbai-400099, Maharashtra www.hul.co • Management details Chairperson- Harish Manwani MD- Sanjiv Mehta Directors – Pradeep Banerjee, Kalpana Morparia, Sanjiv Mishra, O P Bhatt, S Ramadorai, Aditya Narayan, PB Balaji. • Business Operation Household &Personal Products. • Financials Total Income- Rs 314431.6 Million (year ending Mar 2015) • Net Profit - Rs 43152.6 Million (year ending Mar 2015) • Company Secretary Dev Bajpai • Bankers Deutsche Bank, HDFC Bank, ICICI Bank, Indian Bank, Punjab Bank, Royal Bank of Scotland, State Bank of Hyderabad, State Bank Of India, Standard Chartered bank, Syndicate Bank, Union Bank , Bank of Baroda, Bank of America, HSBC Bank . • Auditors BSR &Co LLP Vision of the Company • Our purpose is to make sustainable living commonplace. We work to create a better future every day, with brands and services that help people feel good, look good, and get more out of life.
- 8. Product/Services offered by the company Sl no. Categories’ Products Target market 1 Personal Wash Pears Soap, Liril, Hamam, Denim Shaving Products. Upper Class ,Upper middle Class, Middle Middle Class. 2 Laundry Surf Excel, SunLight,Rin, Wheel & Ala Bleach Upper middle Class, Middle Middle Class, Lower Class . 3 Dishwasher Vim Upper Class ,Upper middle Class, Middle Middle Class. 4 Disinfectants Domex, Cif Upper middle Class, Middle Middle Class. 5 Foods Kissan (Jam, Ketchup, Squashes), Annapurna (Aata & Salt), Knorr Soups. Upper Class ,Upper middle Class, Middle Middle Class,Lower Class. 6 Ice -Creams Kwality Wall’s Upper Class ,Upper middle Class, Middle Middle Class. 7 Beverages Brooke Bond ,Lipton, Taj Mahal, Brooke Bond bru Upper Class ,Upper middle Class, Middle Middle Class. 8 Beauty Products Fair & Lovely,Lakme,Ponds,Vaseline & Aviance Upper Class ,Upper middle Class, Middle Middle Class. 9 Hair Care Sunsilk naturals,Clinic,Dove & Lifebuoy Upper middle Class, Middle Middle Class. 10 Oral care Pepsodent & Closeup Upper Class ,Upper middle Class, Middle Middle Class,Lower Class. 11 Deo Spray Axe & Rexona Upper middle Class, Middle Middle Class,Lower Class. 12 Water Purifier PureIt Upper Class ,Upper middle Class.
- 9. Competitor Analysis • The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors within your market, strategies that will provide you with a distinct advantage, the barriers that can be developed in order to prevent competition from entering your market, and any weaknesses that can be exploited within the product development cycle. 35% 31% 8% 6% 4% 16% Sales HUL ITC Nestle Britannia Dabur Others
- 10. SWOT Analysis of Close UP Strengths 1. First gel toothpaste in India. 2. The Dual Benefits (Shiny white teeth+ Fresh Breath) and a modern ingredient (Mouthwash) makes it very appealing. 3. Market leader in the gel Segment for almost 3 decades. 4. Excellent advertising and branding of the product. 5. Size Advantages. Weakness 1. Popular only in urban areas. 2. Bad acquisitions. 3. Cost Structure. Opportunities 1. First mover of the gel paste segment. 2. Strong positioning of the product in the segment. 3. Innovations. Threats 1. Many variants of toothpaste can be confusing for the consumer. 2. Many people in rural India still clean their teeth with traditional products (neem twigs, salt ash). 3. New entrants in the segment. 4. Change in tastes.
- 11. Marketing Mix of Close UP toothpaste 4P’s Features Product Attractiveness - Various sizes are available with attractive packaging. Expectations - Expected to give whiter and shiner teeth. Benefits - Fresh Breath for 12 hour, Strong teeth. Price 150 gram @ Rs 90 100 gram @ Rs 15 75 gram @ Rs 35 28 gram @ Rs 10 Place Stores Malls Kirana Shops Online Stores. Promotion Sales Promotion – Magazines. Branding – Creating a Brand Image of the product in the minds of the public Advertisement – Hoardings, TV Ads are used.
- 12. Segmentation Targeting and Positioning • Segmentation- A market strategy which differentiates a broad target market into small portions of consumers having similar demands. • Targeting – Process of evaluating market segment by doing Market Opportunity analysis. Competition analysis of the market is also done to identify “Blue Ocean”. • Positioning – A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the minds of the customer. Segmentation 1. Upper middle class, Middle class, Lower middle class. 2. Men, Women, Children. 3. Taste and Flavors. Targeting 1. Urban population specially the youth. Positioning 1. Toothpaste that is also mouthwash for fresh breath.
- 13. Product Life Cycle Close up Introduction Growth Maturity Decline Revenue’s Time
- 14. Gross Profit and Net Profit Margin of the company. 2015, 49.16% 2014, 48.90% 2013, 45.71% 2012, 44.93% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 2015 2014 2013 2012 Comparison of GP margin & NP margin Gross Profit margin = Gross Profit/Sales*100 Net Profit Margin = Net Profit/ Sales*100
- 15. Working Capital 0.96 0.97 0.98 0.99 1 1.01 1.02 1.03 1.04 1.05 1.06 1.07 2015 2014 2013 2012 Working Capital = Current Assets/ Current Liabilities
- 16. Debt to Equity ratio 14.00599595 16.44273178 18.15870313 12.48847284 0 2 4 6 8 10 12 14 16 18 20 2015 2014 2013 2012 DEBT-TO-EQUITY RATIO Debt to Equity ratio shows the relationship of the capital provided by creditors to the amount provided by shareholders. It indicates Financial Leverage of the Company.
- 17. Comparison of Direct & Indirect expenses 0 10000 20000 30000 40000 50000 60000 2015 2014 2013 2012 Direct Expenses Indirect Expenses
- 18. Fixed assets added during the year. Particulars 2015 (in crores) 2014(in crores) Fixed Assets 4370.51 4145.94 Fixed Assets Added 584.57
- 19. Organization Structure Chairman Director Finance Director Marketing Director Exports Director HR Technical Director, Legal & Sectorial Director personal products Director ICFD Director Detergent Director Beverages Director Research
- 20. Training needs of the Company • The needs of individual are objectively identified and necessary interventions are planned for identified groups, which gets rolled out in a phased manner through training calendar. • The training and development program is charted out to cover the no. of trainees existing staff. The programs also cover the identification of resource personnel for conducting development program, frequency of training and development programs can also be designed depending upon job requirement and analysis. Selection of trainees is also facilitated by job analysis. • Meaning of Training and Development according to HUL: Training and development need = standard performance – actual performance Training Design: • The trainer: Before starting a training program, a trainer analyses his technical, interpersonal, judgmental skills in order to deliver quality content to trainers. • The trainees: The company do the close scrutiny of the trainees and their profiles, age, experience needs and expectations. • Training climate: Training climate comprises of ambience, tone, and feelings, positive perception for training program, etc. • Trainee’s learning style: The learning style, age, experience, educational background of trainees has been kept in mind in order to get the right pitch to the design of the program. • Training Strategies: Once the training objective has been identified, the translates it into specific training areas and module. The trainer prepares the priority list of about what must be included, what could be included. • Training Tactics: Once the objectives and strategy of the training program becomes clear, trainer comes in the position to select most appropriate tactics or method or techniques. The method selection depends on following factors: Trainee’s background - Time allocated - Style preference of trainer
- 21. Organizational Culture • Hindustan Unilever Limited has been recognized as among the Best Employers of 2013 in India in a survey by Aon Hewitt. • Unilever Sustainable Living Young Entrepreneur’s Awards. Three years ago HUL launched the annual Unilever Sustainable Living Young Entrepreneurs Awards in partnership with the University of Cambridge Institute for Sustainability Leadership (CISL), and in collaboration with Ashoka. It’s a programme which celebrates and supports people under the age of 35 who are working on a unique product, service or application that will help create a brighter future for those in need. • Backing the Global Goals The Awards are part of Unilever’s efforts to support the 17 United Nations Global Goals for Sustainable Development, due to be ratified this month. These ambitious goals set out to end extreme poverty, tackle climate change, empower women, secure universal water access, and reduce hunger by 2030. Cultures is what constructs a successful organization with innovation, measurable impact, financial stability and leadership for sustainable growth.
- 22. Bibliography • http://www.naukri.com • http://www.hul.com • http://www.mbaskool.com • http://www.reuters.com • http://www.glassdoor.com • http://www.ibef.org • http://www.moneycontrol.com • http://www.close-up.com