Why personal care?

The personal care category has the largest number of brands, i.e., 21, Note: There are 11 HUL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category.

List of top fmcg companies

COMPANY ITC HUL MARKET CAP (IN CRORES) 256,769 127,144

GODREJ
DABUR INDIA LTD. COLGATE PALMOLIVE MARICO LTD. EMAMI

28,107
27,261 18,329 13,137 10,788

NOW THE QUESTION CALLED INTO PLAY..

WHAT IS MARKET CAP THEN???? Market capitalization (or market cap) is the total value of the issued shares of a publicly traded company; it is equal to the share price times the number of shares outstanding. As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company's net worth.

Cont..
Market cap reflects only the equity value of a company. It is important to note that a firm's choice of capital structure has a significant impact on how the total value of a company is allocated between equity and debt.

Future plan of the major player

Hul finding- HUL saw a slowdown in discretionary spends by consumers. Skincare and ice creams were two categories that saw reduced spending. Both categories were affected by the shutting down of modern trade stores that contributed to a disproportionate amount of sales. About 300 modern trade stores have closed in the last year.

Cont.
Hul initiatives- it is investing in what it terms are categories of the future. These products conditioners, shower gels, tea bags and so on now make up Rs.1000 crore in sales. Other initiatives includes- it is powering ahead with trebling its rural direct distribution reach, as part of an initiative it had launched in July 2010. The company has added a million outlets across rural India to its distribution network so far.

Cont.
UNILEVER SUSTAINABLE LIVING PLAN We work to create a better future every day, with brands and services that help people feel good, look good and get more out of life. Our first priority is to our consumers then customers, employees, suppliers and communities. When we fulfil our responsibilities to them, we believe that our shareholders will be rewarded.

What did hul want to accomplish in future?

By 2020, we will help more than a billion people take action to improve their health and wellbeing through: HEALTH AND HYGIENE NUTRITION GREENHOUSE GASES BETTER LIVELIHOODS

Itc future plan..

TC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel', "Engage" and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally. Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs

Colgate palmolive.
FUTURE PLAN

Colgate future plan of 3 ps

People Performance Planet

Who will be the major player? Personal care

Hindustan unilever

Why??
More product category and variety.. More acceptance in rural markets.. Rural consumer feel old is gold Though selection of the real hero is a bit shillyshallied in nature.

KSF of fmcg (personal care)

Newness (composition) Price Good relationship with channels Performance

Potentiality of personal care..

FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products.

Growth drivers..
Increasing urbanization Rising participation of women in urban work force. Growing importance of looks and personal grooming not only for personal but professional reasons. Increase in disposable income. Population.

Stability of demand..

Habits are easy to develop but hard to leave

Competitive advantages
Product differentiation Price differentiation Retailer relationship