SWOT Analysis for henkel India
Strengths
|
Weaknesses
|
• Strong R& D• Presence in more than 125 countries
.• Henkel is the world market leader in adhesives, sealants and surface treatments. • henkel India strong in washing segment, Pril Liquid strengthens its position in the market, gains 82% market share |
• Not well diversified product portfolio (Not present in every segment, for example the company is mostly operating in the Hair Colors, washing, cosmetics & adhesives market.)
• Not present where market potential is high like hair shampoo .• weak advertising |
Opportunities | Threats |
• can come with product like hair shampoo, hair oil , hairy dye where still the market potential is high
• Can come up with products like chick whose market penetration is almost very high both in urban as well a rural areas. |
• Can loose market share to rivals like godrej ,if distribution channel function well
.• Need to come out with more umbrella brands in each segment else can be subjected to hostile takeover by both local or mnc’s player operating within the market |
Strengths
|
Weaknesses
|
• Ability to understand local market
• Strong distribution network 1300 Stockists well organized.
• Strong in shampoo segment.
• Strong product portfolio with Brands like chick, nyle which are best sellers in southern India.
• Ability to cater unpenetrated rural market where again chick brand is the leader.
• Strong R&D
• Strong marketing team.
|
• Not having world wide operations.
• Not having strong products in the to hair colors segment.
• Not having strong products in the hair oil segment.
|
Opportunities
|
Threats
|
• Can to go for more vertical mergers so as to tap more market mostly in the northern zone where the reach is still weak.
• can go for more more acquisition so as to increase their reach both in local and global market
|
• More and more FMCG companies are coming to India, so company might loose share within their strong shampoo segment.
• Shampoo market is getting saturated so need to find other segments where opportunity is high like hair color, hair dye etc.
|
Strengths
|
Weaknesses
|
• Strong and well differtiated brands.
• Brand portfolio includes both global Unilever brands and local brands of specific relevance to India.
• Consumer understanding and systems for building consumer insight.
• Distribution structure with wide reach, high quality coverage and ability to leverage scale.
• Access to Unilever global technology
|
• Increased
consumer spends on education consumer durable, entertainment, travel
etc resulting in lower share of wallet for FMCG.
• Limited success in changing eating habits of people.
• Complex supply chain configuration.
• Price positioning in some categories allows for low price competition(lux, pears)
|
.Opportunities
|
Threats
|
• Market and brand growth through increased penetration especially in rural areas.
• Brand growth through increased consumption depth and frequency of usage across all categories.
• Upgrading consumers through innovation to new levels of quality and performance.
• Growing consumption in Out of Home categories.
|
• Low priced competition now present.
• Grey imports.
• Spurious/counterfeit products in rural areas and small towns.
• Changes in fiscal benefits Unfavourable raw material prices in oilsetc.
|
Strengths
|
Weaknesses
|
• Largest seller of haircare and beauty products in the world.
• Company has advantage of economies of scale in packaging and advertising.
• Net profit has doubled every 5 years during the last decade.
|
• Decentralized organizational structure that can make control difficult.
• Distribution channel still in the nascent stage in India.
|
Opportunities
|
Threats
|
• Concentrate
along with hair-styling and color, skincare,& cosmetics in other
segments like hair shampoo, hair oil which holds the fastest growing
field in india
|
• L'Oreal's products are luxuries that could be hurt by an economic downturn.
• a potential for monopoly that restricts it from entering into large mergers
|
Strengths
|
Weaknesses
|
• Large market
• Established brand with loyal consumers products like Gillette
• Expansion investment is low compared to new-market entry
• India provides strong development ground for innovative products
|
• Considerable amount of time and effort to move into new segments
• Expanding in India only does not provide a compelling case for a “global” brand
|
Opportunities
|
Threats
|
• Can
go for more mergers and acquisition within the country so as to
increase its product portfolio market share which is still low in India
|
• Competition from both local and global players which includes HUL,calvinkare, marico,dabur.
|
Strengths
|
Weaknesses
|
• Differentiated products Strong herbal and natural profile.
• More than 100 years of experience in Ayurveda.
• Wide distribution network.
• Covering 1.5 million retail outlets.
• High penetration in urban and rural areas.
• Strong brands in diverse categories of health and personal care
|
• Sticking to only Ayurvedic technology.
• No much upgrading in the product portfolio form last 5 years
|
Opportunities
|
Threats
|
• Potential for expansion in the smaller town is still available.
• Need to be become global player and explore more geographical region is still there.
|
• Competitive environment with diverse players.
|
Strengths
|
Weaknesses
|
• Understanding of Indian consumer behavior in the hair oil segment.
• Large distribution network all over India.
• Rural market reach
|
• Not strong within the shampoo segment, having hardly any share.
• Not having any antidandruff hair oil whose market potential is worth 25% of the total oil market in India.
|
Opportunities
|
Threats
|
• Need to concentrate within the various others market potential zones like hair shampoo, hair colorants etc.
|
• Competition from the diverse players present in the market can cause loss of market share.
|
Strengths
|
Weaknesses
|
• World wide operations operations are based in 16 countries products are sold in over 100 countries across six continents.
• L’Oreal operates 12 R&D centers worldwide including India.
• Strong local tie up with modi group, getting advantage of the various distribution channel of the local company.
• Extensive R&D
|
• Product line suits only urban market.
• Highly priced
• Low market share in other segments like hair shampoo, where there is high market in India
|
Opportunities
|
Threats
|
• Can introduce low price like that of lakme which will suit to all customers in India.
|
• Loss of market shares due to others players coming market.
|
Strengths
|
Weaknesses
|
• Established brand name.
• Diversified business model
• Ability to find out new business opportunity.
• Widespread selling and distribution network.
• Experienced management team
• Use
of various business model like EVA (economic valve added which is a
financial tool) serves as a one point indicator for business
performance.
• Leader in hair dye market
|
• Not having strong market within the hair oil market,
• Not having strong market within the shampoo.
• Rural penetration of it consumer product is still low.
|
Opportunities
|
Threats
|
• Can bring out products within the hair oil segment as well as hair shampoo.
• EVA
tool creates an opportunity for each individual and each function to
analyse how each process can be made EVA friendly and hence more
productive
|
• Can lose market share to various new entrants in the hair dye segment from rivals like L’Oreal, henkel, Revlon e
|
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