EMERGING MARKETS : Group 07Mehul Goswamy (17), Vilas Bhagane (05), Pratik Thakkar (54) & Nitesh Tolani (57), Kishore V ( 58)

INTRODUCTION TO EMERGING MARKETS

INTRODUCTION TO EMERGING MARKETS

INTRODUCTION TO EMERGING MARKETS

INTRODUCTION TO EMERGING MARKETS

HUL ….OVERVIEW

Owned by the British-Dutch company Unilever which controls 52% majority

stake in HUL.

Formed in 1933 as Lever Brothers India Limited.

India's largest consumer goods company based in Mumbai, Maharashtra.

Company was renamed in June 2007 as “Hindustan Unilever Limited”.

Hindustan Unilever's distribution covers over 2 million retail outlets across

India directly.

Its products include foods, beverages, cleaning agents and personal care

products.

Has an employee strength of over 16,500 employees.

Has annual turnover of around Rs.25810 crores in 2012-13

HUL ….PAN INDIA FOOTPRINT

HUL ….AS AN FMCG GIANT

HUL ….OVERVIEW

Source-HUL_Annual_Report_2012-13

LIFEBUOY SWASTHYA CHETNA INITIATIVE

HUL found out that rural people perceive that “Visual clean is safe clean” and this lead to infrequent hand wash and limited use of soap.

Therefore HUL decided to educate customers on germs & the consequences of germs on health in order to increase soap usage as a means of deterring bacterial infection.

HUL teamed up with Ogilvy & Mather to designed a behavioral change education campaign.

They outlined the following key messages: - Invisible germs are everywhere. - Germs causes diseases common to rural families including painful stomach, eyes & skin

infections. - Lifebuoy soap can protect you from germs. - Wash your hands with lifebuoy soap to prevent infection.

HUL titled the program- Lifebuoy Swasthya Chetna or Lifebuoy Glowing Health.

LIFEBUOY SWASTHYA CHETNA INITIATIVE

One of the largest sustainable direct contact programmes for hygiene education in the world.

Started in 2002 , the aim of the programme is to create awareness about disease causing germs and to promote basic hygiene practices like washing hands with soap as a preventive measure.

With a focus on rural communities, the programme target school children's, women, and community elders.

LIFEBUOY SWASTHYA CHETNA INITIATIVE

SUCCESS OF LIFEBUOY SWASTHYA CHETNA INITIATIVE

It started with 8 Indian states, and covered more than 70 million people by the end of 2004

Lifebuoy’s Swasthya Chetna hygiene education campaign reached 120 million people in nearly 51000 villages in India over the period 2002-2008 .

2003-04: sales grew by 30%

End of 2005: reached 86 million rural consumers

30% increase in awareness of germs, 20% in understanding the association between germs and diseases.

Washing with soap has become a kind of ritual.

The behavioral change has successfully happened Covering 130 million people in 30,000 villages since 2002, the Life buoy Swasthya Chetna programme has made its mark as the single largest private hygiene education project in the world.

SUNSILK –GOG

Background Towards the end of 2002 Sunsilk, which was then sponsoring the Miss India pageant, decided to establish an online presence for the endeavour. The success of this activity spawned the idea of developing a portal for young girls and soon thereafter the Sunsilk Naturals (as the brand was known back then) came into being. The site at this time was replete with substantial hair and beauty content while prominently featuring Jawed Habib as hair care expert. This in turn successfully resonated with the target audience paving the way for an exclusive all-girl community that is today widely recognized as Gang Of Girls.

SUNSILK –GOG

Strategic Insights :

Over the years the website has evolved in its look, tone and core content. However, it has always operated on certain fundamental principles and with a thorough understanding of its TG.

Sunsilk gang of girls is an exclusive online community for such like minded girls. The site is built on the philosophy that girls love to gang together to express what they feel. It is a place for young urban women to come and say what they mean.

It is founded on three pillars and has been operating on these since its inception. These are self-expression, interactivity and hair & fashion content.

The brand recognizes this and broadly wishes to operate in the space of fashion and style.

SUNSILK –GOG

Execution:

Platforms for Self-Expression - Share videos,Pictures,Create and share own music Showcase performance art, writing

Space to Interact with Other Users - Girl talk-Most active session on website

Interactive Tools & Applications - Complete make over machine Exciting games Handy applications

Spirit of Ganging- Gang Blogs

Rich & Informative Content - Hair styling & hair care, Fashion trends Blogs by female celebrities

SUCCESS OF SUNSILK –GOG

Results • Total Registration – 7,16,621 • Average Monthly Page Views – 30,00,000 • Average Monthly Hits – 1,20,00,000 • Average Monthly Unique Visitors – 97,086 • Total Number of Gangs – 42,586 • Average Visit Length – 11.06 minutes

PESTL

POLITICAL•Political Stability•Tax regulation•Trade regulation

ECONOMICAL•Downturn•Interest rate•Exchange rate•Inflation rate

SOCIAL•Life style•Age•Religion•Education•Income

TECHNOLOGICAL•R&D activity•Information tech.•New machines•Product innovations

LEGAL•Employment laws•Health & Safety laws•Consumer Laws

SWOT

STRENGTHS•Strong Brands •Catering to all Segments/TG•Product variety•Price adaption•Distribution Network•Reach to 6.4 million retail outlets•Direct Reach to 1.5 million retail outlets•2 R&D centre's in India

WEAKNESS•Market share limited due to presence of other strong FMCG brands•Stiff competition from domestic players & international brands

OPPORTUNITIES•Tap rural markets•Increase penetration in urban areas•Increase in purchasing power hence increase in demand•Diversification

THREATS•Increasing competition•FDI in Retail•Competition from local products

HUL ….BCG

ANSOFF

LEARNING & CONCLUSION

Each market offers a different opportunity for different companies.

Understand the customer.

Keep constant eye on Consumer behavior.

Make Quick entry & take first mover advantage.

Don’t underestimate competitor(Local /International)

Be clear about how you want to engage in each marketMarket to sell intoRegional or global production platformInnovation and product development hubAccess to talent pool Supply sourceMarket infrastructure development

LEARNING & CONCLUSION

InnovationFor emerging marketsFrom emerging markets

Cost increase when there is a lack of credibility and trust

Each generic strategy will require investing in different capabilities and processesExecution excellence in emerging markets requires-

Leaders who have world class aspirationsFlexibility and adaptabilityDoing beyond what is immediately demanded by the market place

MNCs often fail in emerging markets for two key reasonsLack of local knowledgeNot listening to local managers

Good governance is a way to assure your customers, employees, partners, and investors that you will live up to your promises

THANK YOU

QUESTIONS ??