Swot Analysis Of HUL

5.7 HUL Growth Segments

1. Soaps and Detergents

This segment main driving factor for the revenues of HUL as it contributes approximately 49 percent of the total revenues. HUL’s brands like Lifebuoy, Lux, Liril, Rexona etc in Soaps and Wheel, Surf Excel, Surf, Vim in Detergent have helped the company to maintain its dominant position in the market when compared to P&G. The major growth drivers in this segment are sales volume and price of the products. With the increasing penetration of HUL in the rural market through its various initiatives like increase in Shakti Ammas etc. in the last quarter. Therefore, we expect the soaps and detergent market to grow at 10 percent as penetration in rural market is a slow phenomenon and based on the Historical

Revenue growth for HUL in this segment has been in moderate with higher contribution margin. High volumes and economical prices were mainly responsible for the increase in this segment. However, the increase in prices and high inflation has impacted the growth of segment but with the presence of strong brands like - Pond’s, Axe, Dove, CloseUp; Popular - Vaseline, Sunsilk, Pepsodent; Mass – Fair & Lovely, Clinic Plus etc across categories like - hair care, oral care, skin care, grooming, cosmetics & services etc will help the company to be the key beneficiary with the improving economic conditions and growing demand of this segment . Therefore, we expect the growth of this segment to be at 13-15 percent. As the demands increases, we expect the HUL to charge premium for the products in these category as the major target customer for this segment is upper middle class and

This segment of HUL has grown at 9.5 percent CAGR which major brands like Lipton, Taj Mahal, Bru etc. India is one of the largest consumer of Tea and we expect the HUL to be the key player in this segment. Again because of the presence of many competitors, the growth in this segment is mainly driven by the prices of the products and volume. Therefore, marketers play a very critical role for the same.HUL is the second largest tea player in the country and aggressively marketing its coffee brand : Bru. We expect that with the changing consumer pattern and growing preference of coffee , green tea. Premiumization is going to be the key revenue driver for HUL. Therefore, we expect the revenues to grow at 10-12 percent with the increasing volumes and premiumization of the products.

4. Packaged Food

This segment contributed approximately 7 percent of the total revenues. This segment holds a tremendous potential growth because of the changing lifestyle and rising income in the metros and tier-1 cities. HUL has brands like : Kissan, Knorr, Kwality Walls etc which company has not been able to establish as a high growth segment. This segment grew at a CAGR of approximately 19 percent. It faces huge competition from brands like – ITC, Britannia, Neslte etc. Therefore we have considered it growth to be 15-20 percent with lower