Question
Topic: Student Questions
Unilever & P&g
Related Discussions
- Off Page
- Marketing Research
- Companies Changed The Strategy Based On Research
- Marketing Targeting Stragety Of A Music Band
- Competition
- Trade Show Actions
- Blackpink - Strengths And Weaknesses
- Qs About Competitor Audit Analysis
- Final Year University Dissertation Question Help!
- Dissertation Ideas Based On Interests
- Search more Know-How Exchange Q&A
Community Info
Top 25 Experts
(Student Questions)
- mgoodman 36,279 points
- Gary Bloomer 32,138 points
- Jay Hamilton-Roth 28,001 points
- Peter (henna gaijin) 23,790 points
- Carl Crawford 22,363 points
- wnelson 21,503 points
- Chris Blackman 10,081 points
- Pepper Blue 8,859 points
- SRyan ;] 8,290 points
- Blaine Wilkerson 7,890 points
- steven.alker 6,430 points
- SteveByrneMarketing 6,267 points
- telemoxie 6,160 points
- bobhogg 4,824 points
- MANSING 4,819 points
- Levon 4,419 points
- Mushfique Manzoor 4,218 points
- Corpcommer 3,952 points
- darcy.moen 3,605 points
Unilever's Indian Subsidiary HLL, is the largest FMCG company in this country and has been around for more than 5 decades. P&G India is also one of the largest FMCG companies here and between HLL and P&G, these two companies covered almost 85% of the market. However things are starting to get tougher for these two giants.
Many regional players have sprung up in the last decade and they have managed to establish themselves in their own states and have eaten up a lrge chunk of HLL's and P&G's customers. The products they offer are cheap and largely targeted towards the lower income groups in this country. HLL has also come out with products in this price category but these products are facing severe competition. HLL has been witnessing a fall in profits in the last one year.
To combat this onslaught of cost-competitive products, P&G slashed its product prices by almost 40% so that they could increase sales volumes. HLL followed suit. Shampoos, Detergents, Soaps which are the main products of these two companies are now being sold at prices 40% lower than last year's. However, its been 6 months since this move and the profits have not risen.
My question is that why is it that when these two companies have the best distribution systems in the world operating for them through a very strong distribution network(reaching out to the most rural villages), the best brains in the business working for them(MBA's from the top institutes in Asia who are even sent to the remotest parts in the country for training), the best and the most well known brands in their portfolio, a national presence, HUGE media budgets, great quality products etc etc. still they cannot compete with these local players which just operate in a few states and have been around only for a few years and are no way close to having the logistical systems that HLL nd P&G have.
Are the markets of tommorow just going to compete on cost and not brands?