PRESENTED BY:-

• Avick Biswas MANAGERIAL

ECONOMICS
I.S.B&M, BANGALORE
MISSION STATEMENT

Unilever's mission is to add Vitality to life.

 LOGO

This is the logo of

“UNILEVER”
 INTRODUCTION TO HUL
• Lever brothers is founded by WILLIAM HESKETH LEVER in 1890

• Key player in food & household product industry

• Historically grew through acquisitions

• LEVER BROTHERS, THE OLD NAME WAS CHANGED INTO UNILEVER

AFTER THE MERGER OF LEVER BROTHERS & MARGARINE UNIE IN 1930

• UNILEVER IS A MULTI NATIONAL COMPANY

• IT IS ONE OF THE LARGEST CONSUMER GOODS COMPANIES IN THE

WORLD

• ITS BRANDS ARE ON SALE IN 151 COUNTRIES

 PRODUCT OF FOCUS
SURF EXCEL

• It is the oldest detergent

To be present in INDIA
Since 1960.
• It believes that children must
be free to experience their
LIFE for themselves…
 BRAND EVALUTION
HISTORY:-

• Launched in 1959 & first in Indian

detergent powder market.

• It was the first Fast Moving Consumer

Goods (FMCG) for Detergent.

• Brand to set up a one-stop

shop - called Care line - for people seeking solutions to their varied
laundry problems.

• Surf was the first brand of detergent that was advertised on TV. It is
advertise on more than 300 channels across the globe .

• Introduced the concept of bucket wash to housewives who were used to

washing clothes with laundry soap bars.
 PRODUCT
• SURF EXCEL
• Advance
• Tropical
• Small & mighty
• Automatic
• Blue detergent
• Quick wash
RANGE & PRICEOF PRODUCT

2KG 1KG 500G 115G 50G

25G
Rs405 Rs210 Rs115 Rs20
RS10 Rs5
 A comparison of cost price with sale price of Products in
product line

• Quantity Cost Price in Rupees Sale Price in Rupees

25 grams 4.7 5
50 grams 9.5 10
115 grams 19 20
500 grams 110.50 115
1000 grams 199.50 210
2000 grams 385 405
PROFIT RATIO
 DEMAND
ANALYSIS
Factors affecting demand:

 Price of the product,

 Price of substitutes and complements,

 Income of the household,

 Taste and preference of the household, and

 The amount annually spent on advertisement of the

product.

Law of demand : Law of demand states that the amount

demanded of a commodity and its prices are inversely related,
other remaining constant.
 CAUSES OF CHANGES IN
DEMAND
Increase in demand decrease in demand

 Consumers income rises Consumers income fall.

 Prices of substitute good rises Prices of substitute good fall

 Prices of complements fall Prices of complements rise

 Taste and preference change Taste and preference change

• in favor of the commodity in against of the commodity

 SUPPLY FOR THE
PRODUCT
• Supply channel : Distributers.
wholesalers.
Retailers.
• Cheaper price range of Rs.450 to Rs.2
• Very good geographical distribution
across whole India.
• Both Urban and Rural market segment
covered.
Distribution channel
 PRICING
• Primary : STRATEGY
1. Cost-plus pricing : Mark-up to the cost of the product
2. Competitive Pricing : Price dependent upon price of the
competitors.

• Secondary :
1. Customer-Segment Pricing.

DISTRIBUTION PRICING STRATEGY:

FOR EXAMPLE:

List price Rs. 100

Add: Distributor price (5%) Rs. 105
Add: Trade price (5%) Rs. 110.25
Final Retail price (10%) Rs. 121
 CROSS ELASTICITY OF
DEMAND :
• Cross Elasticity of the demand is defined as the ratio
of the percentage change in the demand for one good to
the percentage change in the price of some other goods.

• Substitute goods: Tide, Ariel, Rin, ghadi etc.

Cross Elasticity will be positive in this case

• Complement goods: detergent cake, liquid soap .

Cross Elasticity will be Always negative.
 SWOT FOR SURF
EXCEL
• STRENGTH

• India’s largest selling detergent company.

• Brand innovation and renovation.

• Reach of the product.

• Competitive advantage.

• Supply chain & distribution.

 WEAKNES
SES
• Labour and input cost.

• Finance.

• Managing scale.

• Raw material.
 OPPORTUNITIES
• Indian market for FMCG is growing @ 20%

• Niche target market.

• Market penetration

• Geographical export
 THREAT
• Cheaper product eat into HUL market
share.

• Competitor trade strategy.

• Urban consumer are shopping less.

• Product from it’s own stable.

 DEMAND
FORCAST
IN SHORT RUN:

• Increase the promotion and marketing of surf excel .

• Reduce the price of quick wash surf excel to wither the

competition from P&G
• ( TIDE )

• Investment of rupees 150 core in distribution network .

(Specially on Wednesday and Thursday )

• Work on R & D to find tune Cost reduction to make the

pricing more competitive.
 IN LONG
RUN
• Introduce existing products into a new market, build on a
strength.

• Identify key sustainability issue for detergent market in India , as

well as bench marking current sustainability.

• Increase the production to 10 -12 tones / hour.

• Maximize the share in 5000 Crore in detergent market.

• Wider geographic coverage than rivals.

• Recognition as a leader in technology and/or product innovation

 MARKET
•
STRUCTURE
Type of market : OLIGOPOLY
• Oligopoly = An oligopoly is a market form in which
a market or industry is dominated by a small number of sellers
(oligopolists)

• Because there are few sellers, each oligopoliest is likely to be aware of

the actions of the others. The decisions of one firm influence, and are
influenced by, the decisions of other firms.

• REASONS – FEW PLAYERS LIKE :

HUL ( blue,matic)
Nirma
P&G ( Tide,Aerial)
Henkel India (Mir, persil, porwall,
vernel,purex)
Reckitt Benckiser ( Varnish)
• RESTRICTED MARKET.

• AVAILABILITY OF VARITIES.

• SELLING COST.

• SIMILAR PRODUCTS.

• STABLE MARKET.

• PRICING.
 Break Even Analysis of
Surf

Total Sales
Total Variable
Cost
Total Fixed Cost
 Break Even
Analysis

Break Even Point = Total Fixed Cost

S.P per unit- V.C per
unit
 Fixed cost
Break even(2005) =
Variable cost
1-
Sales

1,205,298
=
14,474,255
1-
18,119,110

= RS 5,991,714

Break Even(2004) = Rs 7,521,253

Break Even (2003) = Rs 6,808,887

 Break-Even
Analysis
TC
Revenue
VC

FC

2005 2004
Sales
2003
 Break-Even
Analysis
Costs TC
VC

Loss
FC

Sales
2004
THANK
U!