Unilever Five Forces Analysis

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BEGINNING OF AN ERA (BACKGROUND) In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG). [1] In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies were merged in November 1956 and the new entity that came into existence after merger was called as Hindustan Lever Limited (HLL). HLL offered 10% of its equity to the Indian public, and it was the first among the foreign subsidiaries to do so. Hindustan Lever Limited became…show more content…
Threat of new entrants: The entry barrier for the new players is very low. They can easily enter the fairness cream market with new category introductions. New entrants are a regular feature in this segment of the skincare market, trying to capitalize on the same value proposition. 2. Bargaining power of buyers: Bargaining power of consumers is high as they have a lot many options available in the similar price range. They can easily switch to other brands if they are not satisfied with Fair and Lovely. 3. Bargaining power of suppliers: Bargaining power of suppliers is low as there are similar products in the fairness market segment. 4. Threat of substitute products: Threat of substitute products is very high. Similar fairness creams are available in the market at a comparable price range. 5. Rivalry amongst existing competitors: Certainly, there is rivalry among the existing competitors in the fairness cream segment. But, Fair & Lovely - a INR 1,000 crores brand - is the market leader in this segment having captured at least 53% of the total fairness creams market. The competition can be best understood, if it is divided into three separate categories - Mass premium, Equivalent pricing and the Men 's segment, as shown in the table below.
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