Bcg matrix hul

BCG Matrix of HUL and explanation on BCG Matrix

1. BCG Matrix : Presentation by- Abhinav Doye (02) Nidhi Moily (34) Pranav Kumar Singh (39) Sai Ajit Deshpande (46) Suvesh Raj Srivastava (57)

2. Introduction Given by Bruce Henderson of the Boston Consulting Group in 1968 Corporate strategy management tool Product portfolio framework For large product assortment To decide where to cut, where to invest Based on profitability and future potential

3. Components of BCG Matrix CASH COW High cash and profit generation Provides financial basis for the company (often former Stars) Low customer acquisition cost Can be milked to provide cash for riskier & struggling business Maturity phase of PLC STAR High generation and usage of cash Best Investment opportunity Growth phase of PLC

4. Components of BCG Matrix QUESTION MARK/ PROBLEM CHILD   Low market share, needs investment ​ Push & move to Star  quadrant​ Good  commercial potential ​ Usually at  introduction phase  of PLC DOG Poor profits Low cash generation and usage Negative cash flow   Decline phase  of PLC

5. Measurement scales Relative Market Share: Market Growth Rate: Market Share of your brand Market leader's market share Industry sales current year- Industry sales previous year Industry sales previous year 100 X How is your brand fairing vis-a-vis largest competitor's brand Analyzing the future scope of market growth

6. Market Share- Growth Analysis Sr No Product Leader Market Share Product Market Share Leader Relative Market share Market Growth Rate (Industry) Industry Category 1 Pepsodent Colgate 17% 53% 0.32 30% Dental care  Question Mark 2 Lipton Green Tea Tetley 15% 35% 0.43 14.4% Green Tea Question mark 3 Lifebuoy Lifebuoy 13.10% 13.10% 1 11.60% Bath and Shower  Star 4 Horlicks Horlicks 45% 45% 1 18% Health Drinks Star 5 Surf Excel Ariel 17.19% 30% 0.57 4.90% Homecare & Laundry Cash Cow 6 Brooke Bond Tata Tea 19% 19% 1 5.69% Tea Industry Cash Cow 7 Clinic Plus Clinic Plus 25% 25% 1 9% Shampoo Cash Cow 8 Domex Harpic 11.70% 75% 0.16 4% Toiletries Dog 9 Liril Lifebuoy 1% 13.10% 0.08 9% Bath and Shower Dog

7. BCG Matrix:  

8. Linking with PLC

9. Strategies for Portfolio Build: Lipton Green Tea, Pepsodent, Lifebuoy Increase market share to become star/ if a star, then cash cow Hold: Brooke Bond, Clinic Plus, Surf Excel Preserve market share Harvest:  Lipton Green Tea, Domex Increase short term cashflow regardless long-term effect Divest:  Liril Sell / liquidate for resource optimization

10. Conclusion EXIT ENTRY

11. THANK YOU