The BCG matrix depends on the item life cycle hypothesis that can be utilized to figure out what needs ought to be given in the item arrangement of a specialty unit. As indicated by this method, organizations or items are delegated low or superior workers relying on their market development rate and relative piece of the overall industry. The fundamental thought behind it is that the greater the piece of the pie an item has or the quicker the item’s market develops the better it is for the organization.
BCG Matrix of Hindustan Unilever
Hindustan Unilever Limited (HUL) is India’s biggest quick moving purchaser products organization. The Anglo-Dutch organization Unilever claims a 52% lion’s share stake. HUL was framed in 1933 as Lever Brothers India Limited and appeared in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. furthermore, United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of more than 15,000 representatives and contributes to indirect livelihood of more than 52,000 individuals. (ArtiVaish, 2014) The organization was renamed in June 2007 as “Hindustan Unilever Limited”. The organization meets each day requirements for sustenance, cleanliness, and individual care, with brands that individuals feel great, look great and get more out of life.
HUL have a to a great degree wide market introduction with more than 35 brands traversing crosswise over 20 particular classifications, for example, cleansers, cleansers, shampoos, healthy skin, toothpastes, antiperspirants, beautifying agents, tea, espresso, bundled sustenance, dessert, and water purifiers. HUL’s brands – like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair and Lovely, Sunsilk, Clinic, Close-up, Pepsodent, Lakme, Brooke Bond, Kissan, Knorr, Annapurna, Kwality-Walls – are commonly recognized names the nation over and traverse numerous classifications – cleansers, cleansers, individual items, tea, espresso, marked staples, dessert and culinary items. They are fabricated in more than 35 manufacturing plants, a few of them in reverse territories of the nation. The operations include over 2,000 suppliers and partners. HUL’s conveyance organizes covers 6.3 million retail outlets counting direct reach to more than 1 million. (Purshottam, 2012) The BCG analysis of HUL is given below.
Stars
Star is a specialty unit that has a substantial piece of the overall industry in a quickly developing industry. Stars produce a lot of money on account of their solid relative piece of the overall industry, additionally expend a lot of money in view of their high development rate; consequently the money in every bearing roughly nets out. On the off chance that a star can keep up its substantial piece of the overall industry, it will end up being a cash cow when the market development rate decays.
HUL stars are
1. AXE Deodorant
2. Fair & Lovely
3. Lakme Anti Ageing
4. Vim
5. Wheel
6. Surf Excel
7. Lifebuoy
8. Lux
9. Kwality Walls
10. Kissan Jam
11. Knor Soup
All these products are contributing maximum to the market share. Taking AXE Deodorant as an example is contributing almost 25% in the market share. (Sandhu, 2013) Same is the case with the other stars of HUL as well.
Cash Cows
Cash Cow – a specialty unit that has a vast piece of the pie in develop, moderate developing industry. As pioneers in a develop showcase, cash cows display an arrival on resources that is more prominent than the market development rate, and along these lines create more money than they expend. Such specialty units ought to be “drained”, separating the benefits and contributing as meager money as could reasonably be expected.
The cash cows of HUL are:
1. Clinic Plus
2. Sunsilk
3. Vaseline
4. Red Label
Sunsilk made the biggest group for Indian young ladies which are – www.sunsilkgangofgirls.com. Sunsilk inventively thinks of a whole item scope of Soft and Smooth, Thick and Long, Damaged Repair, Hair Fall Solution, Stunning Black Shine and Hostile to Dandruff. Similar steps are taken for the other cash cows as well. (documents.mx, 2014)
Question Marks
Question Mark (or Problem Child) – a specialty unit that has a little piece of the pie in a high development showcase. Question marks are becoming quickly and in this way devour huge measures of money, but since they have low pieces of the pie they don’t produce much money. The outcome is huge net money utilization. A question mark (otherwise called an “issue kid”) can possibly pick up piece of the pie and turn into a star, and in the end a money dairy animals when the market development moderates.
The HUL question marks are
1. Close Up
2. Pepsodent
3. Annapurna
4. Fair & Lovely Menz Active
5. Domex
6. Rin
7. Breeze
8. Taj Mahal Tea Bags
9. Kissan Ketchup
10. Knor Meal Maker
Since they are the new participants or strugglers in the market for real share where the market is changing at a high pace, endeavors are being made to ensure that the pick up on their piece of the pie. Pepsodent went into a noteworthy change of its Germ check and Whitening toothpaste by thinking of the Sensitive and Gum care scope of toothpastes. (ArtiVaish, 2014) Knor soups thinking of the whole scope of soups running from tomato blend vegetable, Chinese to chicken soups.
Dogs
Dogs – a specialty unit that has a little piece of the overall industry in a develop industry. A dog may not require significant money since they have low piece of the pie and a low development rate and in this manner neither create nor expend a lot of money, and they are money traps as a result of the cash tied up in a business that has minimal potential and the capital that could better be conveyed somewhere else.
The dogs of HUL are
1. Taaza
2. Brooke Bond Sehatmand
3. Bru
Brooke Bond Sehatmad ought to be sold off in light of the fact that the client tastes and wholesome necessities have changed from tasting vitamin B improved tea to hostile to oxidants improved tea. With the advancement of green tea, the request by wellbeing cognizant people is a greater amount of against oxidants rather vitamin b, as natural products give an abundant wellspring of vitamins. (papers.ssrn, 2014)
So this is the financial analysis of HUL on the basis of BCG matrix.
References
documents.mx. (2014). Retrieved 2016, from www.documents.mx: http://documents.mx/documents/bcg-matrix-of-hul.html
papers.ssrn. (2014, August 4). Retrieved Octobar 2016, from papers.ssrn.com: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2124042
ArtiVaish. (2014, September 29). scribd. Retrieved Octobar 2016, from www.scribd.com: https://www.scribd.com/doc/241317694/Study-of-the-BCG-Matrix-for-Hindustan-Unilever-Limited
Purshottam, R. (2012, August 8). scribd. Retrieved Octobar 2016, from www.scribd.com: https://www.scribd.com/doc/102345905/BCG-Matrix-Hindustan-Unilever-Limited
Sandhu, G. S. (2013, January 24). slideshare. Retrieved Octobar 2016, from www.slideshare.net: http://www.slideshare.net/gurjantsandhu007/hul-bcg