An analysis of HUL from a strategic business management point of view.

1. Mohini Sahu – A07
Prabhu Dass FJ – A20
Rohan Singh – A26
Renu Dhillon – A36
Nitish Singh – A47
Deepak B – A50

2. Mission & Vision
A truly multi – local multinational
Unilever is dedicated to meeting everyday needs of people everywhere. Around the
world, their food & home and personal care brands are chosen by individual consumers
160 million times a day. Anticipating their needs and aspirations is the task of their local
subsidiaries who bring to the service of their consumers the best international brands
and expertise. This is why they describe themselves as a truly multi – local multinational.

3. Inbound
Logistics
Operations Outbound
Logistics
Marketing
Activities
Customer
Service
• Global scale,
local agility
• Strong network of
Suppliers
• Strong Backward
Integration . Eg
Own 19 tea
estate
• Direct sourcing
from farmers
• Project “Shakti” to
tap remote rural
areas
• Created 70,000
women micro-
entrepreneurs
• Strong
penetration in
Indian rural
markets by
offering small
pack sizes
• Last Mile Reach
Eg.Shaktimaans
• ``Perfect stores''
are standardized
ones with set
plans for fixtures
and products and
display
• TV and non-TV
mediums to reach
our consumers
• ‘Kan Khajura
Tesan’, flagship
free mobile radio
channel
• Co-creation,
engage with
consumers
through digital
communications
and social media
• Customer care
via Care line,
Levercare
Firm Infrastructure
HR Management
Technology
Development
Procurement
• Manufacturing
units with 100%
zero non-
hazardous waste
to landfill
• Reduction in total
waste per tonne
of production
• Reduction in CO2
per tonne of
production
A simpler, diverse and agile organization that will help move faster, innovate better and leverage glo
scale.
Geo tagging to understand the proximity of the villages, Wireless technology to get the real time
Information on demand pattern and trends , Project ‘My Business Information’ tapped into Big Data
‘The ‘Procure to Pay’ project ensured sustained world class levels of payment
'Record to Report' project began with the vision of creating accounting excellence centre
Value Chain Analysis

4. Points of Leverage
Strong penetration in Indian rural markets with its distribution
networkFinancial muscle to create the entry barrier for the new entrants
Creative Marketing Campaigns and its extraordinary reach
A very high Brand Value
Economies of scale

5. Diverse portfolio of
leading brands
Brand Leadership-
HUL is No.1 in most of the
categories it operates-
Soaps, Hair Care, Home
Care, Tea, Oral Care, Skin
Care
- Soaps- No.1,
- Hair Care- No.2
Distribution
- 29 owned manufacturing
locations
- Over 1800 suppliers &
associates
- Over 3,500 stockists
- Direct Coverage – over 3
million outlets
- 6.3 million retail outlets
reaching the entire urban &
250 million rural customers
- Turnover in 2014-15 INR
30,170 crores
Core Competencies

6. Competitive Advantages
HUL’s aim is not only to enable easy access to their brands, but
also to touch consumers with a 3 way convergence of:
- Product availability
- Brand communication
- Higher levels of brand experience
Innovative marketing initiatives are taken to
provide consumers with experience of HUL

7. McKinsey's 7s Framework
Super-ordinate Goals
Equality of opportunity
Conducting operations
ethically
Long term partnership
with suppliers/ business
associates
Promotion on merit
HUL believes in being
good corporate citizens
Structure
a) Centralized
Functions
 Finance
 HRM
 Research
 IT
 Corporate & Legal
b) Decentralized
Functions
 Strategic Mgmt
 Operational Mgmt
 Functional Level Mgmt
System
HUL has one of the best
MIS systems supported by
the Adonis software
system to coordinate day
to day activities with its
huge distribution network
including depots,
wholesalers and retailers
Further, to govern
everyday activities, it
depends on informal
procedures too

8. Style
 Equality of opportunity
 Conducting operations
ethically
 Long term partnership
with suppliers/ business
associates
 Promotion on merit
 HUL believes in being
good corporate citizens
Staff
 Committed to diversity
in a working environment
 Recruits & promotes
employees on sole basis
of qualifications & abilities
 Committed to safe &
healthy working conditions
for all employees
 Maintains good comm.
with employees through
company based
consultation procedures
Skills
 Maintains an extensive
distribution network that
enables it access to
millions of customers
 It’s 46+ factories ensure
uninterrupted supply of
FMCG for captive
consumption
 Marketing & Branding-
backed by unparalleled
financial muscle
McKinsey's 7s Framework

9. Strategy
 The direction & scope of
the co: over the long term
 Strategy is to introduce
new & innovative products
at competitive prices which
give value for money
 This is the prime reason
that HUL emphasizes a lot
on R&D
 This is why it has been
termed as the most
reputed FMCG brand in
the country.
McKinsey's 7s Framework

10. Growth Strategies
Concentration
High concentration through wide varieties in Home Care & Personal Care
categories
Integration
Backward Integration: Merger of Brooke Bond with Tea Estates and
Doom Dooma - Two plantation companies of Unilever
Horizontal Integration
Personal Care Category: Take over of Lakme, Ponds
Food & Beverages Category: Take over of Brooke Bond Lipton India
Limited (BBLIL), Kissan

11. Growth Strategies
Diversification
Related Diversification: Through takeovers
Unrelated Diversification: Through its Product Categories -
 Food & Beverages
 Home Care
 Personal Care
 Water Purifier
Two Main Growth Strategies
Concentratio
n
Diversificatio
n