Hindustan Unilever Limited (HUL) is a consumer goods company headquartered in Mumbai, India. It is a subsidiary of Unilever, a British company. Its products include food, beverages, detergents, personal care products, water purifiers and other fast-moving consumer goods.
Let us look into the Overview of Nestle and then we can move on to the BCG Matrix of HUL.
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Overview of HUL ( Hindustan Unilever Ltd )
HUL was founded in 1931 as Hindustan Vanaspati Manufacturing Co. and was renamed Hindustan Lever Limited after a merger of the separate groups in 1956. The company was renamed Hindustan Unilever Limited in June 2007.
Hindustan Unilever’s corporate headquarters is located in Andheri, Mumbai. The campus is spread over 12.5 acres of land and houses over 1,600 employees. Facilities available to employees include a grocery shop, food court, health centre, gym, sports and recreation centre and a daycare centre. The campus was designed by Mumbai-based architectural firm Kapadia Associates.
The campus has been certified LEED (Leadership in Energy and Environmental Design) Gold in the ‘New Construction’ category by the Indian Green Building Council (IGBC), Hyderabad, under licence from the United States Green Building Council (USGBC).
In 2019, Hindustan Unilever’s portfolio comprised 44 product brands across 14 categories. The company has 18,000 employees and had a turnover of `34,619 crores in the financial year 2017-18.
What is BCG Matrix?
BCG growth-share matrix classifies different business units or products into 4 different categories like Dogs, Stars, Cash Cows and Question Mark.
These classifications are based on the growth rate of the industry and the market share of the respective businesses which are relative to the largest competitor present, for that reason, BCG Matrix is also called as Growth-Share Matrix
Also, Read the SWOT Analysis of HUL in a Simplified Way.
BCG Matrix of HUL ( Hindustan Unilever Ltd )
BCG Matrix of HUL contains the Dogs, Stars, Cash Cows, and the Question Mark. In this reading of the BCG Matrix of HUL, we will analyse the company’s low growth products, products that attract sales, high growth products, and products that may attract sales or may become low growth products in future.
Dogs
The dogs of HUL are 1. taaza 2. Brooke Bond Sehatmand 3. Bru Brooke Bond Sehatmad should be divested as customers’ tastes and healthy eating needs have evolved from vitamin B containing tea to oxidation inhibiting tea. With the rise of green tea, the demand of health-conscious people has increased for vitamin B rather than oxidation inhibiting tea as natural products provide a rich source of vitamins.
Stars
The HUL stars are 1. AXE Deodorant 2. Fair & Lovely 3. Lakme Anti Ageing 4. Vim 5. Wheel 6. Surf Excel 7. Lifebuoy 8. Lux 9. Kwality Walls 10. Kissan Jam 11. Knorr Soup.
All these products contribute the most to the market share. For example, the deodorant AXE contributes almost 25% of the market share. (Sandhu, 2013) The same is true for the other stars of HUL.
Cash Cows
HUL Cash cows are 1. Shampoos, 2. soaps, 3. daily morning things and fast foods
Sunsilk has created the largest group for young Indian women, namely www.sunsilkgangofgirls.com. Sunsilk is inventive and offers a whole range of products: Soft and smooth, thick and long, repair damaged hair, solution for hair loss, stunning black shine and enemy of dandruff. Similar steps are being taken for the other cash cows.
Questions
The HUL question marks are 1. Close Up 2. Pepsodent 3. Annapurna 4. Fair & Lovely Menz Active 5. Domex 6. Rin 7. Breeze 8. Taj Mahal Tea Bag 9. Kissan Ketchup 10. Knorr Meal Maker.
Being the new entrants or combatants in the market fighting for real market share where the market is changing at a fast pace, efforts are being made to ensure that they get their piece of the pie. Pepsodent has made a remarkable change to its germ control and whitening toothpaste by thinking of the sensitive and gum care section of the toothpaste. (ArtiVaish, 2014) Knorr Soups thinks of the whole range of soups, from tomato and vegetable soups to Chinese soups and chicken soups.
