Company Prep

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Compendium Vol 1

Know The Company

1
Coca-Cola
The world's largest beverage
About the Firm company sells products in some
200 countries and generates about
The Coca-Cola Company is the 40% of its sales in the US. Outside
world’s largest beverage company. the US, unit case volume is
The company owns or licenses highest in Mexico, China, Brazil,
and market more than 500 non- and Japan.
alcoholic beverage brands,
primarily sparkling beverages but
also a variety of still beverages
such as waters, enhanced waters,
juices and juice drinks, ready-to-
drink teas and coffees, and energy
and sports drinks.

Its branded beverage products


available to consumers throughout The Company is home to more
the world through a network of than 500 beverage brands, some
Company-owned or -controlled 20 of those billion-dollar-brands,
bottling and distribution operations including four of the top five soft
as well as independent bottling drinks: Coca-Cola, Diet Coke,
partners, distributors, wholesalers Fanta, and Sprite. In addition to
and retailers — the world’s largest soft drinks, it markets waters, juice
beverage distribution system. drinks, energy and sports drinks,
and ready-to-drink teas and
Beverages bearing trademarks coffees. Other top brands include
owned by or licensed to Coca-Cola Minute Maid, Powerade, Dasani,
account for 1.9 billion of the and vitaminwater.
approximately 60 billion beverage
servings of all types consumed
worldwide every day.
2
Brand Portfolio
Carbonated Soft drinks | Bottled Water | Juices | Sports drinks | Tea & Coffee

Energy drinks & Shots | Alternative drinks

Category Product Tagline/USP Competitors

Coca-Cola Taste the feeling Pepsi


Carbonated Soft
Fanta Zyada Fanta Zyada Fun Mirinda
drinks
Sprite Clear Hai 7Up, Mountain Dew

Minute Maid Feel the orange feel the Tropicana, Real,


pulp BNatural
Juice Drink
Maaza Har mausam mein aam Frooty, Slice

Mineral Water Kinley Boond Boond mein Aquafina, Bisleri


sacchai

Vision: Mission:
People: Be a great place to work where
people are inspired to be the best they can To Refresh the world...
be. To inspire moments of optimism and
Portfolio: Bring to the world a portfolio of happiness…
quality beverage brands that anticipate and To create value and make a difference.
satisfy people’s desires and needs.
Partners: Nurture a winning network of
customers and suppliers, together we create
mutual, enduring value.
Planet: Be a responsible citizen that makes a
difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to share-
owners while being mindful of our overall 3
responsibilities.
Weakness:
SWOT Analysis Competition with Pepsi: Pepsi is
a thorn in the flesh for Coca cola.
Strengths: Coca cola would have been the
clear market leader had it not been
Market power over suppliers for Pepsi. The competition in these
and competitors:Due to its size, two brands is immense and we
The Coca-Cola Company can don’t think Pepsi will give up so
exercise its market power over easily.
suppliers by requiring lower prices
from them. The company can also Product Diversification is low:
use its size to affect the Where Pepsi has made a smart
competition by underpricing some move and diversified into the
of its items, acquiring the smaller snacks segment with products like
competitors or saturating the Lays and Kurkure, Coca cola is
market with many of its own missing from that segment. The
products. segment is also a good revenue
driver for Pepsi and had Coca cola
Wide audience reach: The Coca- been present in this segment,
Cola Company’s distribution these products would have been
network allows the chain to reach an additional revenue driver for the
more customers than most of its company.
rivals could reach. Wide audience
reach does not only help the Absence in health beverages:
company to target more customers Obesity is a major problem
affecting people nowadays. The
Vast global presence: Coca cola
business environment is changing
is present in 200 countries across
and people are taking measures to
the world. Chances are, any
ensure that they are not obese.
country that you go to, you will find
Carbonated beverages are one of
coca cola present in that market.
the major reasons for fat intake
and Coca cola is the largest
Customer Loyalty: With such
manufacturer of Carbonated
strong products, it is natural that
beverages. The inference is that
Coca cola has a lot of customer
the consumption of beverages in
loyalty.
developed countries might go
down as people will prefer a
healthy alternative.
4
Threats:
Opportunities: Raw material sourcing: Water is
the only threat to Coca cola. The
Diversification: Diversification in
weakness of Coca cola was the
the health and food business will
suspected use of pesticides or vast
improve the offerings of Coca cola
consumption of water. However,
to their customers. This will also
the threat here is that water
ensure that they get better revenue
scarcity is on the rise. With the
from existing customers by cross
climate changing, and regions of
selling their products. The supply
various countries facing scarcity of
chain which is distributing their
water, sooner or later someone
beverages can also distribute
might raise fingers on beverage
these snacks thereby sharing the
companies. Thus, Water sourcing
load of Supply chain costs.
is an axe which can fall anytime on
the head of Coca cola. If water is
Developing nations: Although
limited or rationed, Coca cola can
developed nations have a high
experience a major downfall in
presence of Coca cola, these
their revenue and capacity of
countries are slowly moving
distribution. The same can affect
towards healthy beverages.
its arch rival Pepsi as well.
However developing countries are
still being introduced to the delight
Indirect competitors: Coffee
of carbonated drinks and soft
chains like Starbucks, Café coffee
drinks. Countries like India which
day, Costa coffee are on the rise.
are developing and have a hot
These chains offer a healthy
summer, find the consumption of
competition to Coca-cola’s
cold drinks almost doubled during
carbonated drinks. They might not
summers. Thus the higher
be a big competition for Coke, but
consumption in developing
they do give a dent to its beverage
environment’s can be a good
market. Similarly, health drinks like
opportunity to capitalize for Coca
Real and Tropicana as well as
cola.
energy drinks like Red bull and
Gatorade are stealing away the
market share indirectly.

5
HUL

About the Firm


Hindustan Unilever Limited
(HUL) is India's largest Fast
Moving Consumer Goods
company with a heritage of
over 80 years in India. On any
given day, nine out of ten
Indian households use HUL
products to feel good, look
good and get more out of life.
The Company has about
18,000 employees and has a
sales of INR 34,619 crores
(financial year 2017-18). HUL
is a subsidiary of Unilever, one
of the world’s leading suppliers
of Food, Home Care, Personal
Care and Refreshment
products with sales in over 190
countries and an annual sales
turnover of €53.7 billion in
2017. Unilever has over 67%
shareholding in HUL.

8
Brand Portfolio
Home Care | Food & Refreshment | Water Purifier | Personal Care

With over 40 brands spanning 20 distinct categories including soaps, detergents,


shampoos, skincare, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods,
ice cream, frozen desserts, water and air purifiers, the Company is part of the daily life
of millions of consumers.

Category Product Tagline Competitors TG Positioning


Ariel, Tide, Indian
Surf Excel Daag achche hai Stain-remover
Nirma women
Nimbu ki shakti aur
Transforming
hazaro phoolo ki
washing into a
Wheel khushboo; mehangi Rin Homemakers
Home delightful
wali dhulai budget
Care experience
mein samai
Pril (Henkel),
Stain-
Khar Khar ka moh Odopic,
Vim Homemakers remover; easy
tod jawab Godrej Dish
washing
Wash
100% Germ
Domex Protection; Million Harpic, Lizol Homemakers Germ-killer
more germs will die
Bringing
Bru se hoti hain Upper and moments of
Bru Nescafe
khushiyaan shuru middle class warmth and
happiness
Food & Just Lagao Kuch Bhi Heinz, Upper and Makes food
Kissan
Refreshm Khao Delmonte middle class interesting
ents Batchelors,
Tummy bhi khush, Upper and Taste and
Knorr Chings,
Mummy bhi khush middle class health
Maggi
Way to
Quality
celebrate
Kwality A treat for every Amul, Baskin conscious
special
Walls occasion Robbins children and
moments in
adults
life
9
Brand Portfolio
Category Product Tagline Competitors TG Positioning
Urban,
Not Just Soap Its
semi-
Skin Care; ab
Vivel, urban;
Lux khubsuriti se darr Beauty soap
Lifebuoy upper and
kaisa; Lux brings
middle
out the star in you
class
Nivea,
for timeless Lakme, Beauty
Pond’s beauty; The Johnson & oriented Skincare
miracle is you Johnson, people
Personal Vaseline
Care Skincare with
Everybody is Urban
Dove Olay, Nivea moisturizing
beautiful women
element
Nivea,
Lakme, Middle
The healing
Vaseline Johnson & class, all Skincare
power of vaseline
Johnson, age groups
Pond’s
The Axe Effect-
Set Wet, Urban
Axe Gets you more Fragrance
Zatak youth
than before
Oral care
Colgate,
Pepsode Das nahi to bas oriented
Anchor, Oral- Oral care
nt nahi urban
B
households
Taazgi Jo Paas Colgate, Urban
Close Up Fresh breath
Laye Pepsodent youth
Upper and
Kent RO,
Water As safe as boiled middle Safe drinking
Pureit Eureka
Purifier water class water
Forbes
households

10
SWOT Analysis
Strengths:

Strong brand equity:


Being a part of the Unilever group Brand loyalty:
and carrying a strong legacy since HUL has a strong brand image
its inception in 1934, HUL enjoys a because of the myriad of CSR
strong brand equity activities like Project Shakti, which
helps convert buyers into a loyal
Innovation:
consumer base.
Two R&D centres situated at
Mumbai and Bangalore are
dedicated for single-mindedly
working towards innovative
products Weakness:

Market leader: House of brands:


HUL is the leading FMCG While having a diverse product
company in the country providing portfolio is helpful, it also poses
various advantages to it. challenges for HUL for being
Brand visibility and awareness: house of brands as a broad brand
From soap to mineral water, HUL portfolio might cause confused
is touching the lives of 1.3 positioning.
billion people daily and thus, at the
same time, leveraging huge brand Decrease in market share:
visibility and awareness. Presence of other strong FMCG
companies in the market has
Diverse product portfolio: limited the market share for HUL
This is one of the major
contributors for huge brand
visibility and awareness.
Wide distribution network: HUL
has a strong 4 tier distribution
system in place for smooth
functioning of its business.

11
Opportunities: Threats:

Untapped markets: Though HUL Cluttered competition:


has begun penetrating into rural Considering the low barriers to
markets, there is still immense entry in the FMCG market, more
scope in this front considering the and more local as well as branded
growth in these markets. players come in, causing cut-throat
competition in the market.
Increase in disposable income:
With the rise in spending capacity Increasing buyers’ power: With
of consumers, the avenues for the availability of choices, buyers’
growth in FMCG markets is power has been continuously
colossal. increasing making it a worrisome
state for FMCG companies
Structuring of retail segment:
With the growth in modern trade
and retail segment, the awareness
of brands has increased manifold
providing great opportunities for
Recent Trends /
consumer goods markets. Future Goals
Internet usage: With increased HUL is moving towards
penetration of smartphones and premiumisation of Indian FMCG
internet usage, consumers have consumers, i.e., it is trying to move
become more accessible. most of the consumer base from a
value segment product user to a
premium segment user, say, from
Tide to Surf Excel. This would
provide them capture a more
focused target which can be
studied better.

12
Ad Analysis

Bru Ad
https://www.youtube.com/watch?v=dz Execution:
m23U7GGRc Becoming a mother is one of the most
Objective: To increase brand significant parts of a woman’s life. The brand
resonance by establishing Bru as a uses this to create an immediate emotional
harbinger of good news, strengthening connect with the consumers. The storyline
its positioning as a beverage that is builds on emphasizing the importance of the
consumed during moments of warmth moment when she would be announcing the
and happiness good news to her husband. The ad perfectly
Target Consumer: Household places the product in the scenario when the
purchases' decision makers pathos of the storyline is at its peak i.e.,
Insight: People often share happiness when she announces the news by
or celebrate it with beverages symbolically placing a small cup of coffee
Benefits & RTB: Coffee is a hot next to his. The storyline fits well with the
beverage that makes you feel better tagline “Bru se hoti hai khushiyan shuru” and
and energetic. Its warmth can be reinforces how Bru can be a part of special
metaphorically used to resonate with occasions like these. The rhythmic music
warmth in relationships and the special provides indulgence in the storyboard and at
moments. the same time initiates recall. The use of
colours matching with the brand logo also
helps in recall.

14
P&G
About the Firm Social responsibility:
P&G is one of the largest and amongst the “Shiksha” is the flagship program of
fastest growing consumer goods companies P&G towards its social sensitivity.
in India. Established in 1964, P&G India now Partnering with NGO’s like Save the
serves over 650 million consumers across child, Round table India, Army and
India. Its presence pans across the Beauty & Navy wives welfare associations,
Grooming segment, the Household Care P&G has created true impact in the
segment as well as the Health & Well Being lives of needful with 140 schools
segment, with trusted brands that are across India.
household names across India. P&G India Live, Learn and Thrive initiatives
currently invested in the country via its five reach 300 million kids pan India,
plants and over nine contract every second of every day two
manufacturing sites, as well as through the children benefit from this program.
26,000 jobs it creates directly and indirectly. P&G believes in strength of its
Sustainability efforts: P&G has been giving employees. “You can take away our
great attention to sustainability of products in physical assets – our factories, our
various dimensions. From manufacturing to equipment, our products – but just
packaging P&G performs life cycle analysis leave behind our people, and we will
to find out the biggest impact and rightly be able to rebuild this company in a
focus in that direction to reduce the decade” – Richard Dupree, former
environmental impact for the range of P&G Chairman. Living by this value,
products. Some key pointers are as follows: employees of P&G built a wall for
Plants powered with 100% renewable energy Shiksha School at Pune.
Using 100% renewable or recycled materials
in all products and packaging
Having zero consumer or manufacturing Current MD of P&G India:
waste going to landfills Madhusudan Gopalan(42), Alumnus
Designing products that delight consumers of IIM Calcutta from 1999 has been
while maximizing the conservation of working with P&G and had taken up
resources this new position after heading
Ariel, Tide were pioneers in compact Indonesia business.
detergents with less raw material and
optimised packaging handling and Olay has
been introduced with pump and a lighter
bottle to save 400 tons of plastic used every
year. 16
Brand Portfolio

Brand
Tagline Competitors Target Group Positioning
(Category)
AmbiPur Characteristic
(Home & Breathe Happy, AirWick - RB, Premium & mid, s approach -
car Badbu hatayein Godrej Aer Click, SEC - A1 A2 A3 Doesn't mix
Freshners Khushiyan Layein Odonil - Dabur B1 with the bad
) odour
Thought
Ariel provoking
Premium,
(Fabric Share the load Surf Excel - HUL approach - Is
SEC - A1 A2 A3
Care) washing only
women's job?
Price Quality
Tide plus- white
Tide Mid-scale, Approach -
plus, Put stains
(Fabric Rin - HUL SEC - A3 B1 B2 Extra power
back where they
Care) C1 tide, Extra
belong
power white
Oral B Quality
Sensodyne, Premium & mid,
(Oral care #1 ToothBrush approach -
Colgate, SEC - A1 A2 A3
- tooth used by Dentists Protect your
Pepsodent B1
brush) teeth
Trust - Break
All categories the silence,
Whisper Kadam Badhaye
StayFree J&J, (mass), Young Unlimited
(Feminine ja, My life my
Sofy - Unicharm adults & kids who hygiene
Hygiene) rules
are achievers Limitless
confidence
Quality
Gillet All categories
The Best a man Wide range of approach -
(Men's (mass), Indian
can get Gillet products Have a safe
grooming) Men
shave
Brand Portfolio

Venus Quality
Smooth skin, Premium & mid,
Gillet Veet - RB, approach -
Nopain, No SEC - A1 A2 A3
(Feminine Syska Have a safe
chemicals B1
grooming) shave
Pampers Huggies -
Doctor's No. 1 KimberlyCLark, Upper & mid, Care for child
(Baby MamyPoko pants -
choice SEC - A B C and reliable
care) Unicharm
Olay (Skin #Reborn, Share Feel young
Dove - HUL,
& the secret of Upper & Middle, and reborn,
L'Oreal,
personal younger looking Sec - A2 A3 B1 it’s not over
Nivea
care) you yet
Thought
Vicks provoking
#TouchForCare, Zandu Balm - All categories,
(Personal approach -
Caring for families Emami, Mother and kids in
Health Love and
for generations Amruthanjan 6-12
care) care of a
mother
Characteristic
approach -
Upper & mid
Pantene Garnier - Loreal, Stronger,
Strong is Beautiful Youth, SEC -
(Hair care) Sunsilk - HUL thicker, and
A2, A3, B1, B2
the intense
black
Upper & mid Characteristic
head& 100% Dandruff
Loreal, Youth, SEC - approach -
shoulders free, Dandruff
Clinic Plus - HUL A2, A3, B1, B2, reliable within
(Hair care) Nahi Chalega
C1 3 washes

18
SWOT Analysis

Strengths: Weakness:

Product offerings and price ranges


Acquisition of First aid Beauty in are limited compared to
July 2018, between mass and competitors (lack of segmentation)
premium gives a new category for
P&G Slow technology roll-outs, lack of
recent innovation will hurt its brand
image in the long term
P&G's focus on product
performance has been strongest P&G remains heavily reliant on
and significantly influenced developed markets while not
consumer selection process leveraging from China and India,
which are low hanging fruits

Top 2 in beauty and personal care Organic growth is challenging. The


category of the global market group is struggling to deliver the
expected growth and still navigates
below targets. Though 2017 saw
Global presence, P&G products positive results from P&G’s major
sold in 180 countries brands in oral care and skin care, it
was not sufficient to compensate
the continuing erosion of its share
in men’s grooming and hair care.

19
Opportunities:

Dental rinses and mouth washes


are having huge growth prospects
(CAGR) in Asia pacific, which
includes India
Recent Trends /
Future Goals
Olay's dynamic innovation and
more product launches could add P&G is looking at Baby care, Fabric
to its brand equity being world's care, Home care and Feminine care as
number 3 brand focus group of categories from FY18.
And strategizing towards accelerating
Natural beauty products are top-line growth by boosting product trials
awaited from P&G while reducing promotional spend,
extracting consumer insights and
Rural markets penetration in India innovative product ranges. It aims at
is a huge untapped opportunity. saving USD2 billion by efficient
Expected to grow exponentially by marketing techniques and USD7 billion
2025 savings on COGS.

P&G’s vision 2020 is reliance on


Threats: renewable energy and efficient energy
consumption patterns (Targeting low
water consumptions in plants reduced
Pantene loses to its rivals in world-
transportation costs).
wide markets, more segmentation
is needed to fill gaps in shampoo
P&G’s value share has declined by 0.1
portfolio
percentage point from FY16 to FY17
while the competitors have moderately
Challenging environment for men's
grown or steadily grown
grooming leads to shrinking market
shares
P&G has been successful in achieving
supply chain efficiency and identifying
Local competition is expected to
potential growth patterns else divesting
be more rampant as entry into the
from the portfolios. The divestment of 41
FMCG industry is not restricted
BPC brands had simplified the portfolio
and unbranded products are still
significant in the Indian markets

Increasing buyers’ power: With the


availability of choices, buyers’
power has been continuously
increasing making it a worrisome 20
state for FMCG companies.
Ad Analysis

Tide Extra power: Tide plus – White plus


https://www.youtube.com/watch?v=LBEM1NrR-2w

Business Objective: Create consumer perception that “Tide” gives the best white.

TG: Mid-scale consumers, SEC - A3 B1 B2 C1

Insight: Brightest white is most desirable and there is pride in white, whiter than milk,
tube light, snow, ice-cream and the cricket team uniform.

Benefits & reason to believe: Tide gives the brightest white compared to other
detergents which is desirable.

Execution: Mother compares whiteness of kid’s uniform with perceived brightest things
but realises that it is not brighter than Tide White. And hence she adopts tide to get the
brightest white with a funny jingle shouting out “tide Hai”.

22
Reckitt Benckiser

About the Firm


Name of firm: Reckitt Benckiser
Industry : Consumer goods
CEO : Rakesh Kapoor since
September 2011 (He is from XLRI)
Revenue : 15 Billion USD approx. |
Market Cap : 55 Billion $
Global Headquarter : Slough, United Why we’re here : We believe there's
Kingdom India Headquarter : a better way to do business – we like
Gurgaon to call it 'betterbusiness'. Socially,
Founder & Timeline : environmentally and financially, we
1814 (J&J Colman) act responsibly and sustainably. We
1823 (Benckiser) believe passionately in doing things
1840 (Reckitt & Sons) the right way, and we believe the
1938 (merger of Reckitt & Sons and better way helps us deliver high
J&J Colman) quality products that touch
1999 (merger of Reckitt & Colman and consumers each and every day.
Benckiser) Health is no longer just the absence
of illness, it’s being able to lead a
Who we are : We’re 40,000+
fitter and happier life. Our
entrepreneurs, all inspired by a vision
responsibility is to help people
of a world where people are healthier
achieve this, while making the right
and live better. At the heart of our
kind of social and environmental
rapidly growing consumer health
impact. That’s what we call
business is a passionate desire to help
betterbusiness.
people feel better. We invest in res

24
Brand Portfolio
In Health and Hygiene Home our highly focused portfolio of Power brands which
are market leaders.

Tag line /
Brand Competitors Advertisement Campaigns
Product Info
Health Care
https://www.youtube.com/w #MaaMaane Dett
Dettol (Market Be 100% sure Savlon, Lifebuoy
atch?v=q9TgWTtl1X8
https://www.youtube.com/w
ol Ka Dhula
Leader) atch?v=bJhWa24nCjA Dettol Dettol Ho!
https://www.youtube.com/w
Wax cream & atch?v=Qi9jNUNviQM Don’t shave it,
Veet (ML) Ann French, Nair https://www.youtube.com/w
strips Just Veet it
atch?v=wLaeZemYzKE

Skore, https://www.scoopwhoop.co
‘Do the Rex’. m/Durex-Ads/#.cjtrk1idh latest -
Durex (ML) Sexual Wellbeing.
Kamasutra, https://www.youtube.com/w
#durexjeans
Moods atch?v=f6_uYhXG138

https://www.youtube.com/w
atch?v=786TwnXO68M #AbMontuBolega
Strepsils Ab montu bolega Vicks ,Halls https://www.youtube.com/w
atch?v=0FFrVoxzTHw
Campaign
Infant Nutrition – Neoclate,
Nutramigen For allergies MyElecare
- -

Burning? Take
Gaviscon’ -
Gelusil ,
Gaviscon Heartburn and
Ranitidine
- -
indigestion
solution

Acne treatment Ponds, Loreal,


Clearasil Vicco, Himalaya
- -
cream
FabFeet’ & ‘Great
feet feeling’– Krack Cream,
Scholl Footcare Nevo
- -
Products
Targeted relief Cuprofen,Iburprof
Nurofen from pain’ en, Solpadeine
- -
Brand Portfolio

Hygiene & Home Care Brands

https://www.youtube.co Havas India


GoodKnight, m/watch?v=WcrHySRS https://www.campaignin
Pest Control
Mortein Prodcuts
All out, q5shttps://www.youtube. dia.in/article/cannes-
com/watch?v=XS9XSPi contenders-2017-havas-
Hit,Baygon 6bzU india/436976

‘Ready for https://www.youtube.co We're really


Domex,
Harpic (ML) Harpic
Sanifresh
m/watch?v=XQGbt-
Challenge?’ tnypk sorry’ - UK

‘Protects like
Domex,
Lysol mother’ - -
Mr.Muscle
Disinfectant

Trust Pink! Tide, Ghadi,


Vanish Forget stains Surf, Rin , Ariel - -

Brightening the
Odonil,
Airwick air’ - Room - -
ambipur
freshener
Nestle

About the Firm


Nestle India is a subsidiary of
NESTLE S.A of Switzerland. The
company built its first Indian factory in
Moga, Punjab in 1961. Now it has
presence across India with 8
factories, 4 branch offices in Delhi,
Mumbai, Chennai and Kolkata to
facilitate the sales and marketing of Categories present across:
its products and a large number of
co-packers. Nestle India’s Head Milk and Nutrition
office is located in Gurgaon, Chocolates and Confectionary
Haryana. It has always focussed on Beverages
Taste, Nutrition, Health and Wellness Prepared dishes and Cooking Aids
and wellbeing of the customers.

Founder: Henri Nestle


Tagline: Good Food, Good Life

India Chairman and Managing


Director: Mr Suresh Narayanan

28
Brand Portfolio

Competi
Category Product Tagline TG Positioning
tors
Have a Men and Broad in appeal,
Kitkat break. Have Women of young in feel, big
a KitKat all ages in stature
Munch Khao, Men and
Delicious crunchy
Munch apne Manch Women of
treat for fans
pe aao! all ages
Cadbury, Positioned as
To love is to Young
Alpino Ferrero way to share the
Share couples
India, message of love
Amul, Young Use the product;
Bar One Kaafi hai
Mars couples get the girl
India Try something
Chocolates Plan, Eat & Brand new to get
Milky Bar Children
learn (Snickers something more
, Galaxy, yummier
Delight in Milky Really lasts
Eclairs Children
every bite way) longer
The Mint with Parle
Polo
the hole
Party
Treats
Children, More refined way
Nestle Men and to fresh breath
Classic Women of throughout the
all ages day
29
Brand Portfolio

Compet Positionin
Category Product Tagline TG
itors g
it all starts
Urban
NESCAFE with a
adults
Nescafe
100% pure
NESCAFE Coffee at its urban
instant
Classic best youth
coffee
NESCAFE Beyond the premium
SUNRISE cup urban
Tough day
HUL at work?
A taste of Bru, Sit back,
Beverages Nestea adults
freedom Starbuc open a
ks NESTEA
and relax
a true café
Nescafe premium style
Cappuccino urban experience
at home
Makes you
A taste
Nescafe premium sense the
worth
Gold urban real coffee
savouring
feeling
30
Brand Portfolio
NESCAFE Ready-to-
drink
Everyday Milk
Everyday Ghee
Nestle a+ Nourish
Milk
Nestle a+ Nourish
Dahi
Keep fit. Look Amul
Nestle a+ SLIM Milk
Milk good Kwality urban
Products Keep fit. Look Parag family
Nestle a+ SLIM Dahi
good Britannia
If it's Greek,
Nestle a+ GREKYO
you bet its
Yoghurt
divine
ActiPlus
Bhuna Jeera Raita
Go ahead -
Milkmaid Create sweet
stories
Pregnant
& breast
Baby & me
feeding
women
Kids
Nutritious Milk Kellogg,
Nutrition above 2
Nestle Neslac for growing Pepsico,
years of
kids Bagrry
age
Big nutrition for Kids (2 - 5
Ceregrow 31
small tummies years)
Brand Portfolio

Provides
Top
fast relief
ramen
Kids, Youth, from hunger.
Maggie Foodles
Working Easy to
Noodles Tasty
professional prepare. 2
treat
minutes
MTR
noodles
Maggie
Pazzta
Maggie
Prepared Sauce
dishes and Pepsico
cooking Quaker
children,
aides oats,
health
Maggie Oats Health is Kellogs, Healthy
conscious
Noodles Enjoyable GSK, Breakfast
working
Marico
people
Saffola
Oats
children,
Single serve
health
Maggi Cup-a- Taste the HUL soups in
conscious
licious Soups Twist Knorr instant
working
format
people
Youth who like
to experiment
Maggi hotheads Crazy mirchi love
with different
taste
Prepared Maggi Chicken
dishes and Noodles
cooking aides health
Maggie Atta Taste bhi, Health Patanjali, Healthy and
conscious,
Noodles bhi Top ramen tasty noodles
family
Taste bhi, Health
Maggi Cuppa
bhi

32
Brand Portfolio

Maggi
Urban
Bhuna
family
Masala
Maggi
Coconut
Prepared
milk powder
dishes
Maggi
and
Magic
cooking
cubes
aides
Everyday food
Maggi becomes tastier
Masala-ae- and healthier
Magic with Masala-ae-
magic
Helps to kickstart
the day of entire
The Mother
Breakfast Kellogg, family with
Nesplus kadak (25-35
Cereals Pepsico goodness of
Nashta years)
wholegrains and
multigrains.

33
SWOT Analysis
Strengths:
Weakness:
The company enjoys good support of
parent company Nestle S.A. Maggi was banned by Food Safety and
Strong brands like Nescafe, Kitkat and the Standards Authority of India (FSSAI) in
company is known for its product June 2015 for five months for allegedly
innovation containing lead beyond permissible
limits, forcing Nestle India to withdraw
Operating in India over 105 years. the product from the market
Nestle India, achieved a major landmark Maggi controversy affected the brand
in the financial year 2017 as the first listed name of Nestle. Response to Maggi
food company to cross Rs. 10000 crore ban was very brief and not culture
sales in India sensitive

The company has provided direct and Heavy dependence on milk and
indirect employment to over one million nutrition products that contributes
people. nearly 47.6% of the company’s top line

Maggi attains over 60% market share,


touches pre-crisis level in value terms Threats:
loyalty.
The company is facing stiff competition
from new entrants like Ferrero India
Opportunities: and Patanjali Products.

The company has a global portfolio of Raising cost of input is another threat
about 2000 brands, so the company can is a common problem faced by most of
capitalise on the product and brand the companies in Fast Moving
strength of the parent company. Consumer Goods sector.

Nestle is looking to expand its portfolio in Maggi ban negative publicity is


premium durables, cereals, pet care, coffee probably the major threat for the
and skin health accessing the potential in company and if the issue have not
India. been raised, the company would have
reached Rs.10000 crore mark a couple
of years ago.

34
Ad Analysis

NESPLUS - The KADAK Nashta

Link:https://www.youtube.com/watch?v=YdVB0BnWdRQ#action=share

Target: Mother (25 – 35 years)

Insights: Every morning, mother wishes to wake her children with a ‘kadak’ note.
And mother’s love is the driving force for every children to wake up.

Objective: Nestle enters Indian’s breakfast cereal market which is forecasted to


expand to Rs 2,610 crore by 2020 from Rs 1,440 crore in 2015, according to
market research firm Euromonitor International.

Benefits – Highlights the tasty and healthy aspects of the product with a focus on
how Nesplus breakfast cereals remain crunchy even in warm milk until the last
bite.

Execution: Mother wakes her children with a kadak note and serves her children
Nesplus which remains crunchy even in the warm milk.

36
L'Oréal

About the Firm


Started in 1909 by Eugene Schueller,
L’Oréal is now the world’s largest
cosmetics company. Headquartered in
France, the company started in the
hair-colour business and then
branched out to cleansing and beauty Categories present
products. Now it operates in hair across:
colour, skin care, sun-protection,
make-up, perfume and hair care. It
Consumer Products
entered the Indian market in 1994 and Division
has been growing at a rate of 30% Luxury Products
over the past 10 years. It is the third Professional Products
largest cosmetic operator in the
country with 8.5% market share.

It is present across multiple distribution


channels with over 15 brands and has
a strong presence in salons with
L'Oréal Professional . It is
headquartered at Mumbai, has two
manufacturing facilities in Pune and
Himachal Pradesh and also a
Research & Innovation Centre and
employs 1600 people across offices.

38
Brand Portfolio

39
Brand Portfolio
Product Tagline/
Product Positioning TG Competitors
Category Product
Positions itself
as the best
beauty product
Young, affluent
Because you are and you should
L’Oréal middle class HUL, Oriflame,
worth it. use it as you are
Paris and upper class Marico
worth it.
women
Associates itself
with class and
sophistication
Styles your hair
Brylcreem, Set
Hair Gel- Extra for a long time Mainly urban
Wet, Park
strong hold with a strong youth
Avenue
hold
Roll On and
Spray
Keeps you Urban middle
Deodorant-48H Vini Cosmetics,
Consumer smelling fresh and upper class
anti-perspirant Nivea,
Products and feeling dry men
and 96H non-
Division
Garnier stop dry feel
Urban middle Nivea, Ponds,
Affordable daily class and upper Neutrogena,
Face Wash
care face wash class men and Himalaya
women
Shampoo-
Fortifies your High Income
Noone makes
hair and gives and middle P&G, HUL,
your hair
them shine income group of Marico
stronger
all ages

Middle and
Makes you more
Maybelline upper class
Make it happen beautiful with
New York women of age HUL, Elca
subtle care
group 18-35 Cosmetics,
Revlon
Ralph World of Ralph
Timeless, Upper class Elca Cosmetics,
Lauren Lauren
authentic style fragrances Wella India
Fragrances
Prestige,
Armani Upper class Elca Cosmetics,
It speaks for you exquisite product
Fragrances fragrances Wella India
Luxury
Products A modern
Are you alive?" lifestyle, a mix of
Fragrances with refinement,
Diesel Urban youth
"retro-modern" provocation and
notes humor. 40
Brand Portfolio
Product Tagline/
Product Positioning TG Competitors
Category Product
Works in
Upper class men
partnership with
L'oreal and women
L'Oreal Wella
Profession willing to spend
Professional Professionals
al time and money
salons and
on grooming
hairdressers
Products for
hairdressers;
Upper class men
helps them in
and women
improving their Wella
Professio Matrix willing to spend
skills with Professionals
nal time and money
specialized
Products on grooming
training
Division
Programs
Luxury hair care
Upper class
brand distributed
women who
through high end
want the
hair salons
absolute top
Kerastase (Special Toni and Guy
notch treatment
Kerastase areas
at a salon with
in some high end
the best people
salons, adds to
and products
the appeal)
Urban upper
class who
High tech
actively seek
dermatological
help from
products for
dermatologists/s
La Roche A better life for primary/secondar
kin experts.
Posay sensitive skin y skin care and
Marketed
treatment;
Active through these
contains thermal
Cosmetics experts and not
spring water
in the mass
market
Therapeutic Urban upper
skincare class; products
Health is
Vichy products that can with rare
beautiful
prevent & correct minerals of
skin damage medicinal value
Upwardly mobile
Various Bath & Body
urban consumer
health, oral Nature's way to Works, LLC
Body Luxury natural looking for
and skin beautiful 3. Sephora USA,
Shop care natural products
care Inc.
which won't
products 41
harm the skin
SWOT Analysis
Strengths:

Continuing research and innovation,


active in the dermatological and
pharmaceutical fields and the top
nanotechnology patent holder in USA
Opportunities:

World’s largest cosmetic company, third Can tap the rising premiumisation trends
biggest in India and growing disposable income

Established premium affordable Greater market share due to registered


cosmetics brand in India patents

Consumer is convinced about the high Increase in demand for organic products
quality of products will work in their favour as they have been
using organic since start
Widespread distribution (presence in 130
countries) contributing to economies of
scale
Threats:
Dominant presence of L'Oréal
Professional in salon hair care Stiff competition, especially HUL and
Marico in India
Weakness:
Economic downturn in several
countries
Decentralised organisational structure,
too many subdivisions
Very wide range of product portfolio
High R&D costs mean lesser profit
margins

42
Focus/Goals
L’Oréal is very strong in the salon channels as well as higher end personal care products. It uses
brand segmentation to drive growth and operates strict brand segmentation across its portfolio to
retain its exclusive brand identity. For each of its brands L’Oréal maintains distinct retailing
channels to keep its brand image intact. L’Oréal Paris and Garnier share the same retailing space
in western markets but the distinctions are made on the basis of price and product offerings.
L’Oréal uses Garnier to penetrate low income consumers in emerging markets whereas L’Oréal
Paris is reserved for urban consumers.

According to L’Oréal, the Indian beauty market presents significant opportunity for growth as
beauty products still have a lower penetration -approximately 50% of the Indian households use
shampoo and close to 25% use skin care products. The challenge is to capture significant growth
in Tier II and Tier III Indian cities as L’Oréal products still haven’t penetrated in the interiors,
where competitors’ products in the same price range are doing well. L’Oréal India MD, Jean-
Christophe Letellier believes in building aspirations for the long-term. And India's fast- growing
beauty market is his playground. He said, “our Desire Now is to be More Affordable”.

L’Oréal’s $1 Billion Revenue Target in India by 2020

L’Oréal’s 2020 roadmap in India is to become a billion-dollar company in terms of revenues and
this aim had propelled the company to ramp up its research and innovation (R&I) activities in the
country. According to L’Oréal India Managing Director Jean-Christophe Letellier, the R&I
centers in Mumbai and Bangalore are striving towards sustainable innovation, in order to meet
the company's target of reducing carbon emissions by 60% from its plants and distribution
centers by 2020. L’Oréal aims to make India one of its top five markets by the next few years
(currently India is among top 15). It aims to generate revenues to the tune of Rs 7,000 crore (~$1
billion) from India by 2020.

L’Oréal’s Sharing Beauty with All – “Carbon Balanced” Ambition for 2020

L’Oréal India’s strong commitment to their 2020 road map includes a tangible assurance to
pursue sustainable growth in parallel with sustainable development. Currently, it sources Guar
gum from Rajasthan in India, through the Sustainable Guar Initiative run in partnership with the
Solvay Group. Guar – one of the few species that can cope with the local hydro-climatic
conditions – is the only source of income for people living in a desert region that is already very
exposed to the consequences of climate change.

43
Awards/Recognitions

1. L’Oréal India receives globally recognised EDGE Gender Equality


Certification for the second time in a row

L’Oréal India receives the worldwide Economic Dividends for Gender Equality
(EDGE) certification in recognition for its commitment to achieving and sustaining
gender equality in the workplace. L’Oréal India was awarded the prestigious EDGE
certificate for the first time in 2015, making it the only company in India to be
accredited with the EDGE MOVE Level second time in a row. EDGE MOVE is the
second level certification awarded to the company that has already implemented a
framework for change, achieved significant milestones and further commits to
sharpen its action plan on gender equality policies and practices.

2. L’Oréal named as one of the world’s most ethical companies by the


Ethisphere Institute
L’Oréal has been recognized by the Ethisphere Institute, a global leader in defining
and advancing the standards of ethical business practices, as a 2016 World’s Most
Ethical Company®. The World’s Most Ethical Companies recognizes organizations
who align principle with action, work tirelessly to make trust part of their corporate
DNA, and in doing so, shape future industry standards by introducing tomorrow’s best
practices today. Being an honouree for the seventh time underscores L’Oréal’s
commitment to leading ethical business standards.

44
Ad Analysis

L'Oréal Paris Casting Crème Gloss Ad: https://www.youtube.com/watch?v=-


wIRxwZJ4f0

Objective:
To create in the customers an intent to purchase by focussing on the ease of usage and
the benefits of the product
Target Customer:
Urban women in the age 18-35
Insight:
Generally, hair colouring is seen as a tedious and messy process for which you need to
go to a salon. The entire ad focusses on how simple, easy and fun the process is.
Benefits:
The customers get a high quality hair colouring product which is easy to use, lasts long
and looks attractive.
Execution:
The colour theme (pink) from their costumes to the balloons used is in line with the
product packaging.
The music is peppy and fast in tone with the mood of the video.
The process of colouring is shown in very clear and simple steps.
The benefits are clearly shown- lasts for 28 washes and the social media likes.
The celebrity, Deepika Padukone is apt for the target audience.

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