EMERGING MARKETS : Group 07
Mehul 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 programLifebuoy 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
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
•Market share limited due to
presence of other strong
FMCG brands
•Stiff competition from
domestic players &
international brands
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 market
Market to sell into
Regional or global production platform
Innovation and product development hub
Access to talent pool
Supply source
Market infrastructure development
LEARNING & CONCLUSION
Innovation
For emerging markets
From emerging markets
Cost increase when there is a lack of credibility and trust
Each generic strategy will require investing in different capabilities and
processes
Execution excellence in emerging markets requiresLeaders who have world class aspirations
Flexibility and adaptability
Doing beyond what is immediately demanded by the market place
MNCs often fail in emerging markets for two key reasons
Lack of local knowledge
Not 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
QUESTIONS ??
THANK YOU