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    Environmental Scanning of HUL

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    Saurabh Sagar
    Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company. The document provides an introduction to HUL, including its market share, sales, and mission. It then performs a Porter's Five Forces analysis of the industry, identifying bargaining power of customers and suppliers, threat of new entrants and substitutes, and industry competition as key forces. Finally, the document conducts an ETOP (environmental threats and opportunities profile) analysis to identify political, economic, social, technological, environmental, and legal factors impacting opportunities and threats for HUL. It provides recommendations for HUL to focus on customer satisfaction over profits, track competitors, and consider new product categories.

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    Environmental Scanning of HUL

    Uploaded by

    Saurabh Sagar
    2K views22 pages
    Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company. The document provides an introduction to HUL, including its market share, sales, and mission. It then performs a Porter's Five Forces analysis of the industry, identifying bargaining power of customers and suppliers, threat of new entrants and substitutes, and industry competition as key forces. Finally, the document conducts an ETOP (environmental threats and opportunities profile) analysis to identify political, economic, social, technological, environmental, and legal factors impacting opportunities and threats for HUL. It provides recommendations for HUL to focus on customer satisfaction over profits, track competitors, and consider new product categories.

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    Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company. The document provides an introduction to HUL, including its market share, sales, and mission. It then performs a Porter's Five Forces analysis of the industry, identifying bargaining power of customers and suppliers, threat of new entrants and substitutes, and industry competition as key forces. Finally, the document conducts an ETOP (environmental threats and opportunities profile) analysis to identify political, economic, social, technological, environmental, and legal factors impacting opportunities and threats for HUL. It provides recommendations for HUL to focus on customer satisfaction over profits, track competitors, and consider new product categories.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views22 pages

    Environmental Scanning of HUL

    Uploaded by

    Saurabh Sagar
    Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company. The document provides an introduction to HUL, including its market share, sales, and mission. It then performs a Porter's Five Forces analysis of the industry, identifying bargaining power of customers and suppliers, threat of new entrants and substitutes, and industry competition as key forces. Finally, the document conducts an ETOP (environmental threats and opportunities profile) analysis to identify political, economic, social, technological, environmental, and legal factors impacting opportunities and threats for HUL. It provides recommendations for HUL to focus on customer satisfaction over profits, track competitors, and consider new product categories.

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    Environmental Scanning of

    HUL

    Prepared by :
    • Guntas Kour
    (MBA-4507/10)
    • Aditi Chopra
    (MBA-4556/10)
    Introduction of the
    Organization
    • 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.

    • HUL has enjoyed a competitive advantage as a sole provider of personal


    hygiene care products before the liberalization of India’s economy.

    • The company's Turnover is Rs. 17,523 crores (for the financial year 2009 -
    2010).

    • HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast


    moving consumer goods with strong local roots in more than 100
    countries across the globe with annual sales of about €40 billion in 2009
    Unilever has about 52% shareholding in HUL.
    Introduction of the
    Organization
    • Hindustan Unilever was recently rated among the top four
    companies globally in the list of “Global Top Companies for
    Leaders” by a study sponsored by Hewitt Associates, in partnership
    with Fortune magazine and the RBL Group. The company was
    ranked number one in the Asia-Pacific region and in India.

    • The mission that inspires HUL's more than 15,000 employees,


    including over 1,400 managers,is to help people feel good, look
    good and get more out of life with brands and services that are
    good for them and good for others. It is a mission HUL shares with
    its parent company,Unilever, which holds about 52 % of the equity.
    Porter’s Five Forces
    • Porter's Five Forces is a framework for industry analysis and
    business strategy development formed by Michael E. Porter of
    Harvard Business School in 1979.

    • It draws upon Industrial Organization (IO) economics to derive


    five forces that determine the competitive intensity and
    therefore attractiveness of a market.

    • Attractiveness in this context refers to the overall industry


    profitability. An "unattractive" industry is one in which the
    combination of these five forces acts to drive down overall
    profitability
    Porter’s Five forces Analysis
    Porter’s Five Force Analysis of HUL
    Bargaining Power of
    Customers
    • High bargaining power due to low cost of
    switching.

    • Price sensitivity in customers.

    • Customers are not reluctant to buy/try new


    products off the shelf.

    • Product Loyalty can be a favourable factor.


    Bargaining Power of
    Suppliers
    • Suppliers may determine the cost of raw
    material and other inputs affecting profitability.

    • But their bargaining power is not very high.

    • Oligopoly in the supplier side i.e. many suppliers


    available.
    Threat of New Entrants
    • Suppliers accessible.

    • Distributors accessible.

    • Low-cost switching.

    • Market Growth.

    • Cost effectiveness.
    Threats of Substitute
    Products
    • Complex and never ending needs of consumers.

    • Wide range of choices.

    • High expectations of consumers.

    • Low-cost switching.

    • Beneficial Alternatives.
    Competition within Industry
    • A large number of players.

    • Highly saturated industry therefore scarce


    customers.

    • Intensive Advertisements and low prices.


    Environmental Threats &
    Opportunities Profile ( ETOP )
    ETOP Analysis
    Why ETOP?
    • Helps organization in identifying Opportunities
    and Threats.

    • To consolidate and strengthen organisation's


    position.

    • Helps strategists in appripriate strategy


    formulation.

    • Helps to know the current position.


    How is ETOP done?
    • Environment is divided in different segments.

    • The impact of each segment is analyzed.

    • Each segment is sub-divided into sub-segments.

    • Impact of each sub-segment on Organization.


    ETOP Pros and Cons
    Pros Cons
    • Help to determine the • Does not show the
    key factors of threats interaction between
    and opportunities. these factors.

    • Help In strategy • It can’t reflect the


    formulation. dynamic environment.
    ETOP
    Factors Could Include
    Political International Trade, taxation policy
    Economic Interest rates, exchange rates, national
    income , inflation rate, unemployment,
    stock market
    Social Ageing Population, Attitude to work,
    Income distribution
    Technological Innovation, New Product development
    Environmental Global warming, environmental issues
    Legal Competition laws, corporate laws,
    employment laws, health and safety
    Opportunity Matrix
    • Market Leaders – Brand • Opportunities in food sectors.
    Awareness and Brand Value.
    • Expansion of horizons - countries
    beyond Asia.

    New products and product lines. • New markets may be available due
    to increase in disposable income
    and living standards.
    Threat Matrix
    • Increasing competition from • Low-cost switching over.
    Organizations like ITC which has
    entered sectors like
    food,retailing.,etc.

    • low priced substitutes and new


    entrants.

    • Dis-satisfaction or high quality of • Saturation in industry.


    products of other organizations.
    • Counter fight between its own
    products like Lux and Lifebuoy.
    Conclusion and Recommendations
    HUL is certainly the market leader in FMCG sector but there are
    a few recommendations:

    • HUL lowers the promotion cost so as to save money which is


    used in promotion more than required and thus increases the
    profit.
    • HUL aims at customer satisfaction rather than margins and
    profits.
    • HUL keeps a track of new products and promotion schemes of
    other firms and design policies accordingly.
    Conclusion and Recommendations
    • HUL Adopts the method Segmentation,Targetting and
    Positioning so as to get back all the consumers which it lost to
    other firms.

    • HUL comes out of the cocoon and try some new fields and
    come up with some new products.

    • HUL should stop playing the 70s and 80s script of brand
    extensions and big nationwide ad spend and think beyond that .
    Thank You
    .

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