Ponds SWOT Analysis 2024 – Unilever

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Ponds introduced Pond’s extract in 1886 and Pond’s Cold Cream and Vanishing Cream in 1914, both of which became beauty icons.

Pond’s Cream was invented in the United States as a patent medicine by pharmacist Theron T. Pond (1800–1852) of Utica, New York, in 1846. The first Pond’s product was created in 1846 and from that time the brand became Unilever’s fifth most profitable Personal care product.

1. A strong player in skin care: Pond’s is among the most powerful players in the Skin Care segment. It has a huge lead in the middle price segment, and it is one of the product that is preferred by the majority of people. It is a popular product for mass consumption.

2. Specific targeted market Focused target market: Women have always been the main goal market for Pond’s since its beginnings. The entire range of products and advertising has been geared toward women. Pond’s has a feminine look throughout its marketing.

3. A good products Good product line: Pond’s offers a solid product line. Time and time again, it has introduced new products, which have maintained the brand’s existence running and now at the maturing stage. It has a strong market capitalization, and with the launch of new products as well as new products, it guarantees that the market is consuming at a high level as well.

4. Deep pockets that have HUL’s backing: Since Pond’s is one of the brands from HUL, the Umbrella House of HUL, it has the assurance of large pockets and plenty of backing from the financial sector. But, it must be able to earn this backing. Certain of the products, like Ponds age miracle, Ponds age miracle, The Ponds cold cream, as and the Men’s skincare products are the real stars, and can mean big profits for the brand.

5. Great distribution Great distribution: Being from the HUL house Ponds has the benefit of having a great distribution since it is able to use its own channel for distribution channel of HUL, which is used in the FMCG channel.

6. Marketing throughout the years Over the years: For launching products that appeal to people in general, you require an effective marketing strategy that has mass appeal. Additionally, Ponds has launched a variety of ATL and BTL campaigns throughout the years and has also employed powerful brand ambassadors who have promoted the product and increased their acceptance on the marketplace. Even the point of purchase materials have been utilized very effectively and is now a much more than pushing for Ponds on the market.

Ponds Weaknesses – Ponds SWOT Analysis

1. Increase in cost Increase in costs: One of the biggest issues that confronts Ponds as brand is the gradual growth over time in the costs of the brand’s transportation costs and labour, and operations and distribution costs. Naturally, this affects the overall profitability that the company produces.

2. Margins being eroded by competition: There is a lot of competition which results in increasing discounts and price wars, leading to lower margins. This is a major issue in the market for skin care.

3. Rural level penetration: The penetration of the rural area of Ponds is quite low as a result of the lack of understanding of the importance to skin-care in the Rural region and also due to the higher cost of products compared to products for rural areas.

Ponds Opportunities – Ponds SWOT Analysis

1. Percentage of penetration increased: A higher rate of penetration is the main issue facing Ponds since the brand has noticed an increase in levels of penetration in urban areas however, it has a low penetration in rural areas. To boost this awareness, it must to increase awareness, a problem encountered with all FMCG brands.

2. Potential for expansion and market Potential for expansion and market growth: Not just Indian FMCG market, but the potential for market growth possibilities of international market is amazing because skin health care is expected to grow ever more, as more countries around the world are advancing their economies. When the markets of developed countries are becoming saturated, emerging economies can be lucrative for companies.

3. Men’s skin care: Skin care for men is an excellent chance to Pond’s which is among the few new players in this market. Gillette as well as Nivea are already in this area and Pond’s could create its own mark as well.

4. Cold cream Cold cream: Another market with plenty of potential and is dominating by Nivea is Cold cream industry. Ponds must penetrate this market through increasing its marketing and advertising to ensure that it can increase the brand’s recognition. This will lead to more turnover and therefore greater profits.

5. Age miracle: Pond’s Age Miracle is locked in an extended battle against Olay’s anti-aging cream, and both are set to go toe the other on the marketplace. Pond’s had the edge at first, however Olay quickly took the lead with more sophisticated marketing strategies. However, Pond’s cannot afford to lose this lucrative sector that is an icon in their BCG-based matrix.

Ponds Threats – Ponds SWOT Analysis

1. Competition: A significant threat to any brand of skin care currently is competition which is so intense that every brands has to defend their main strength while addressing weak points of the others. Ponds is no exception and is in danger in its main strength, which is powder – in which it is being targeted with Shower in Shower, Cinthol, Yardley, Nivea and numerous other brands.

2. Noise: There is plenty of chaos in the Skin health care industry that the process of separating is a real challenge. It is good news that Ponds is one of the differentiated brand thanks to the clever utilization of brand ambassadors and the staggering amount of money that is pumped into. It’s only a matter time before another brand can catch up.

3. Limited price market: The middle market has an incredible market price that is captured by Ponds however this means that Ponds is losing the upper end and lower end segments of the market. It requires line stretching to increase its reach to either of these markets.

Ponds SWOT Analysis Overview Template

This is the SWOT report that Ponds has done. Please let us know if you have additional suggestions to add.

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