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HUL Analysis

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Mohini Sahu A07 Prabhu Dass FJ A20 Rohan Singh A26 Renu Dhillon A36 Nitish Singh A47 Deepak B A50
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Page 1: HUL Analysis

Mohini Sahu – A07

Prabhu Dass FJ – A20

Rohan Singh – A26

Renu Dhillon – A36

Nitish Singh – A47

Deepak B – A50

Page 2: HUL Analysis

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.

Page 3: HUL Analysis

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

DevelopmentProcurement

• 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 global

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

Page 4: HUL Analysis

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

Page 5: HUL Analysis

Diverse portfolio ofleading 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

Page 6: HUL Analysis

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

brands

Page 7: HUL Analysis

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

Page 8: HUL Analysis

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

Page 9: HUL Analysis

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

Page 10: HUL Analysis

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

Page 11: HUL Analysis

Growth StrategiesDiversification

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

Page 12: HUL Analysis

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