m

1. StuDocu is not sponsored or endorsed by any college or university
HUL Strategy
Operations (Fore School of Management )
StuDocu is not sponsored or endorsed by any college or university
HUL Strategy
Operations (Fore School of Management )
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603

2. HINDUSTAN UNILEVER LIMITED
STRATEGY FRAMEWORKS
The next part talks about Porter’s Value Chain. Porter’s value chain is a
framework for developing an analytic structure that follows
interdependent activities from raw material acquisition or idea through
production and finally, into the hands of a customer. Value chains
streamline the processes that take a product from concept to market.
Porter’s value chain analysis of Hindustan Unilever Limited
Hindustan Unilever Limited does not take it as a rigid, standalone framework by assigning
the equal importance to all activities.
1. Primary Activities.
1.1 Inbound Logistics
Solid ties with vendors are crucial since they need help to receive, store and sell the
commodity. Inbound logistics of HUL is very efficient in the manner it excels itself the form
of storing in warehouses and in the form of maintain the goods manufactured. The logistics
management is very efficient with respect to rural areas. The focus of HUL is to make
available the goods to the shops and retail outlets which supplies HUL products to its
consumers. It has tied up with Mahindra logistics with farmers and owns 19 tea estates. HUL
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603

3. collaborated with the UNICEF to support the delivery of essential hygiene products to tea-
plantation workers in those estates in the response to COVID-19
1.2 Operations
The importance of analyzing operational activities raises when raw material arrives, and
Hindustan Unilever Limited is ready to process the raw material into the end product and
launch it in the market. HUL implements kaizen, Total Quality Management (TQM) and cost-
optimization. The Sumerpur factory won “National Energy Conservation Award” for saving
567 MWh.
1.3 Outbound Logistics
HUL has a total of 35 Clearing & Forwarding agents and has partnered with Future Group
Logistics. Hindustan Lever Network is the direct selling channel that covers 50,000 villages.
Shakti Amma provides penetration in villages with no roads for trucks. HUL is a full-scale
sales organization for supermarkets. It employs technologies like RSNet for monitoring.
1.4 Marketing and Sales
Hindustan Unilever Limited highlights the advantages and differentiation points of the brands
delivered to reassure consumers that their offerings are superior than rivals.
Some examples of Hindustan Unilever Limited's marketing and sales activities are- sales
force, advertising, promotional activities, pricing, channel selection, quoting and building
relations with channel members. In order to plan its promotion and distribution operations the
organization uses a marketing funnel strategy. Dependent upon the corporate interests of
Hindusan Unilever Limited, brand name, competitive dynamics and current position on the
market, the marketing approach can either be moved or pulled in nature.
1.5 Services
Hindustan Unilever will play an important role in the growth of customer satisfaction through
its pre-sale and post-sales services. Post-sales facilities are essential to modern consumers
such as marketing and promotional events. HUL has Lakme salons, Dove Litmus Tests and
in-store sampling.
2.Secondary/Support Activities
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603

4. Primary value chain operations are organized and supported by support activities. The
following study of Hindustan Unilever Limited's support operations may be used as well.
2.1 Firm infrastructure
The company's architecture applies to a number of operations, such as quality control,
management of regulatory affairs, accounting, finance, planning and strategic management.
Hindustan Unilever Limited has five whole time Directors and five independent non-
executive Directors. It has two self-sufficient divisions-Home & Personal Care and Foods
supported by certain central functions.
2.2 Human resource management
The company has 500+ CEOs in India and abroad. Through assessing the recruiting and
training expenses and achieving their proportional profit, the organization meets the expense
minimization goals. This value chain support operation would be enhanced by the high
reliance of the Hindustan Unilever Limited on the talent of employees. HUL’s Future Leaders
Program is an example.
2.3 Technology development
Almost all supply chain operations in a new advanced technology age rely on technical
support. Hindustan Unilever Limited is expected to understand the value of technological
advancement through technology convergence in the manufacturing, delivery, marketing and
human resources industries. It can be separated into product and production phases. Examples
of these include program automation, customer care assisted by technology, research into
product design and data processing. The Hindustan Unilever Limited research and
development department is categorized under this division.
2.4 Procurement
Processes involved in buying inputs, including machines, machinery, raw materials, services,
raw materials and other things required to manufacture the end product, can be found in the
supply chain purchase. As Hindustan Unilever Limited blends its sourcing operations with
various value chain activities, it needs to take special note in order to maximize the incoming,
operational and outbound value chain. It follows a sustainable sourcing code of conduct.
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603

5. BCG Matrix
The BCG matrix depends on the item life cycle hypothesis that can be utilized to figure out
what needs ought to be given in the item arrangement of a specialty unit. As indicated by this
method, organizations or items are delegated low or superior workers relying on their market
development rate and relative piece of the overall industry. The fundamental thought behind
it is that the greater the piece of the pie an item has or the quicker the item’s market develops
the better it is for the organization.
BCG Matrix of Hindustan Unilever
Stars
Star is a specialty unit that has a substantial piece of the overall industry in a quickly
developing industry. Stars produce a lot of money on account of their solid relative piece of
the overall industry, additionally expend a lot of money in view of their high development
rate; consequently, the money in every bearing roughly nets out. On the off chance that a star
can keep up its substantial piece of the overall industry, it will end up being a cash cow when
the market development rate decays.
HUL stars are
1. AXE Deodorant
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603

6. 2. Glow & Lovely
3. Lakme Anti-Ageing
4. Vim
5. Wheel
6. Surf Excel
7. Lifebuoy
8. Lux
9. Kwality Walls
10. Kissan Jam
11. Knor Soup
12. Horlicks
All these products are contributing maximum to the market share. For instance: HUL saw in
GlaxoSmithKline’s Horlicks a unique opportunity to acquire the #1 HFD Portfolio in the
largest Health Food Drinks (HFD) Market globally. Consequently, its HFD category had a
Rs. 42Bn Turnover with 20% EBIT margin in 2018.
Cash Cows
Cash Cow – a specialty unit that has a vast piece of the pie in develop, moderate developing
industry. As pioneers in a develop showcase, cash cows display an arrival on resources that is
more prominent than the market development rate, and along these lines create more money
than they expend. Such specialty units ought to be “drained”, separating the benefits and
contributing as meager money as could reasonably be expected.
The cash cows of HUL are:
1. Clinic Plus
2. Sunsilk
3. Vaseline
4. Red Label
5. Hellmann’s
Sunsilk made the biggest group for Indian young ladies. Sunsilk inventively thinks of a whole
item scope of Soft and Smooth, Thick and Long, Damaged Repair, Hair Fall Solution,
Stunning Black Shine and Hostile to Dandruff. Similar steps are taken for the other cash cows
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603

7. as well. Hellmann’s entry in India is a key Cash Cow for Unilever with sales just about
holding their own currently in the spreads industry. Investment in Hellmann’s has been
largely limited to advertising campaigns as of now.
Question Marks
Question Mark (or Problem Child) – a specialty unit that has a little piece of the pie in a high
development showcase. Question marks are becoming quickly and, in this way, devour huge
measures of money, but since they have low pieces of the pie, they don’t produce much
money. The outcome is huge net money utilization. A question mark (otherwise called an
“issue kid”) can possibly pick-up piece of the pie and turn into a star, and in the end a money
dairy animal when the market development moderates.
The HUL question marks are
1. Close Up
2. Pepsodent
3. Annapurna
4. Fair & Lovely Menz Active
5. Domex
6. Rin
7. Breeze
8. Taj Mahal Tea Bags
9. Kissan Ketchup
10. Knor Meal Maker
Since they are the new participants or strugglers in the market for real share where the market
is changing at a high pace, endeavors are being made to ensure that the pick up on their piece
of the pie. Pepsodent went into a noteworthy change of its Germ check and Whitening
toothpaste by thinking of the Sensitive and Gum care scope of toothpastes. Knorr soups
thinking of the whole scope of soups running from tomato blend vegetable, Chinese to
chicken soups.
Dogs
Dogs – a specialty unit that has a little piece of the overall industry in a develop industry. A
dog may not require significant money since they have low piece of the pie and a low
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603

8. development rate and in this manner neither create nor expend a lot of money, and they are
money traps as a result of the cash tied up in a business that has minimal potential and the
capital that could better be conveyed somewhere else.
The dogs of HUL are
1. Taaza
2. Brooke Bond Sehatmand
3. Bru
Brooke Bond Sehatmad ought to be sold off in light of the fact that the client tastes and
wholesome necessities have changed from tasting vitamin B improved tea to hostile to
oxidants improved tea. With the advancement of green tea, the request by wellbeing
cognizant people is a greater amount of against oxidants rather vitamin b, as natural products
give an abundant wellspring of vitamins.
Downloaded by 17K41A0 232 (17k41a0232@sru.edu.in)
lOMoARcPSD|9989603