BCG matrix of hindustan uniliver limited

Categories: BusinessThe Matrix

Cash cows :are units with high market share in a slow-growing industry. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are regarded as staid and boring, in a "mature" market, and every corporation would be thrilled to own as many as possible. They are to be "milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.

Dogs, or more charitably called pets, are units with low market share in a mature, slow-growing industry.

These units typically "break even", generating barely enough cash to maintain the business's market share. Though owning a breakeven unit provides the social benefit of providing jobs and possible synergies that assist other business units, from an accounting point of view such a unit is worthless, not generating cash for the company. They depress a profitable company's return on assets ratio, used by many investors to judge how well a company is being managed.

Dogs, it is thought, should be sold off.

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Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is a large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. If the question mark does not succeed in becoming the market leader, then after perhaps years of cash consumption it will degenerate into a dog when the market growth declines.

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Question marks must be analyzed carefully in order to determine whether they are worth the investment required to grow market share.

Stars are units with a high market share in a fast-growing industry. The hope is that stars become the next cash cows. Sustaining the business unit's market leadership may require extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When growth slows, stars become cash cows if they have been able to maintain their category leadership, or they move from brief stardom to dogdom

Products of HUL:-

Personal wash:- Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona
Laundry:- Surf Excel, Rin ,Wheel & Ala bleech
Dishwasher :- Vim
Disinfectants:- Domex
Foods:- Kissan(Jam,Ketchup,Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread
Ice-cream:- Kwality Wall's
Bewerages:Tea:- Brooke bond, Lipton Coffee:- Brooke bond bru Beauty Products:- Fair & Lovely, Lakme, Ponds, Vaseline and Aviance Hair-Care:- Sunsilk naturals, Clinic , Dove and Lifebouy
Oral-Care:- Pepsodent and Close-up
Deo spray:- Axe and Rexona
Water Purifier:- Pureit
Ayurvedic Personal & health care:- Ayush

Detail of Hindustan uniliver limited in BCG matrix

CASH COWS:-

Need to more invest in certain products. ----- penetration in the toothpaste market is quite low, around 50%. Industry experts say that thanks to awareness and affluence in rural areas, there is a surge in demand with consumers graduating from 'datum' to toothpaste.

DOGS:-

HUL's share with brands like Sunsilk dipped to 50% (51.5%) and in value terms to 45.4% (46.5%) during the quarter. -----HUL's share dipped from 25% to 23.1%. Its value market share dipped to 28% during the quarter from 29.6% in April-June 2008, while Dabur's share increased to 10% (9.3%) and Colgate-Palmolive's
share to 49.5% (47.7%).

----- HUL’s market share in the detergents category also fell by 2.5% to 35% in the quarter to June compared to the year-ago period. QUESTION MARKS:-

----- Fair and lovely has good market and can grow at good rate.

----- Dabur share increased to 10 %.

----- colgate and Palmolive share increased to 49.5%

STARS:-

------ HUL still dominates the Rs5,500 crore soap market in India

----- 21 % market Growth.

----- 53 % market share
----- leading market player in fmcg.

BY: Harmeet Sehgal
Amit Kalwani

Updated: Jul 06, 2022
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BCG matrix of hindustan uniliver limited. (2016, Apr 26). Retrieved from https://studymoose.com/bcg-matrix-of-hindustan-uniliver-limited-essay

BCG matrix of hindustan uniliver limited essay
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