diversification of hindustan unilever limited
TRANSCRIPT
NAME :
ATUL S. NIKAM
PRAVIN S. KHANGAVKAR
TOPIC :
DIVERFICATION IN FIVE COMPNY
CLASS : T.Y.BMS
DIV : A
ROLL NO : 58,59
SUBJECT : MARKETING
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 path-
breaking 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 World¶s 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.
It¶s 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 CanadaFastest 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 ³Beauty 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 didn’t 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 Nestlé launched Special.T.
We launched the Nestlé Cocoa Plan which will supply 38 million high quality, disease-resistant plantlets to farmers helping them rejuvenate their farms and increase productivity. The Nescafé 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 Nestlé 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 Nestlé Health Science and the Nestlé 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 Exchanges’s 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 CareWith a legacy of over 100 years, Johnson’s® Baby is a market leader in its category, driving the trends and developments in the baby space.
Johnson’s® Baby aspires to touch every baby in India with brands operating in the widest consumer spectrum. From premium products like Johnson’s® Baby Top-To-Toe® Wash- the first ever liquid bath product for babies, Johnson’s® 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.
Women’s HealthIndia has the largest Women’s Health business in Asia Pacific and the 3rd largest napkin market for Johnson & Johnson globally. Women’s 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 CareOur 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.
OTCGlobally, 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
Nescafé
The world’s 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 Nestlé 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 world’s 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.