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Marketing Management | "Competitive Strategies Followed by FMCG Sector in India Related to Two Companies HUL & ITC"

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Competitive Strategies Followed by FMCG Sector in India
Related to Two Companies HUL & ITC

- by Ritesh Kumar Verma *

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Page - 2

Analysis of Both Companies

HUL & ITC are major companies in FMCG market in India. When we compare both companies on the basis of their strategies i.e. , their competitive strategies in the present market. When we look at the present segment breakup for both of the companies then we came to know that their different products vary too much in the market.



HUL Segment Breakup



ITC Segment Breakup

Now let us take a comparative analysis of both the companies under some heads:

HUL ITC
Hindustan Unilever (HUL) is the largest pure-play FMCG company in the country and has one of the widest portfolio of products sold via a strong distribution channel. It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams. ITC is not a pure-play FMCG company, since cigarettes is its primary business. It is diversifying into non-tobacco. FMCG segments like foods, personal care, paper products, hotels and agri-business to reduce its exposure to cigarettes.
Performance Performance
After stagnating between 1999 and ’04, the company is back on the growth track. In the past three years, till 2008 HUL’s net sales have witnessed a CAGR of 11%, while net profit has posted a CAGR of 17%. Despite diversification, ITC’s reliance on cigarettes is still huge. The tobacco business contributes 40% to its revenues, and accounts for over 80% of its profit. This cash-generating business has enabled it to take ambitious, but expensive bets in new segments and deliver modest profit growth.





Ritesh Kumar Verma,
IBSAR, Mumbai


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