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

HUL follows three main growth strategies: 1) Concentration - Achieving high concentration through wide product varieties in key categories like home care and personal care. 2) Integration - Pursuing backward integration through acquisitions of tea estates and forward integration through distribution network. 3) Diversification - Related diversification through takeovers and unrelated diversification across food & beverages, home care, personal care, and water purifier categories. These strategies have helped HUL become the leading FMCG company in India.

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0% found this document useful (0 votes)
113 views12 pages

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

HUL follows three main growth strategies: 1) Concentration - Achieving high concentration through wide product varieties in key categories like home care and personal care. 2) Integration - Pursuing backward integration through acquisitions of tea estates and forward integration through distribution network. 3) Diversification - Related diversification through takeovers and unrelated diversification across food & beverages, home care, personal care, and water purifier categories. These strategies have helped HUL become the leading FMCG company in India.

Uploaded by

andrew garfield
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Mohini Sahu – A07

Prabhu Dass FJ – A20


Rohan Singh – A26
Renu Dhillon – A36
Nitish Singh – A47
Deepak B – A50
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.
Value Chain Analysis
Inbound Operations Outbound Marketing Customer
Logistics Logistics Activities Service
• Global scale, • Manufacturing • Project “Shakti” to • ``Perfect stores'' • Co-creation,
local agility units with 100% tap remote rural are standardized engage with
• Strong network of zero non- areas ones with set consumers
Suppliers hazardous waste • Created 70,000 plans for fixtures through digital
• Strong Backward to landfill women micro- and products and communications
Integration . Eg • Reduction in total entrepreneurs display and social media
Own 19 tea waste per tonne • Strong • TV and non-TV • Customer care
estate of production penetration in mediums to reach via Care line,
• Direct sourcing • Reduction in CO2 Indian rural our consumers Levercare
from farmers per tonne of markets by • ‘Kan Khajura
production offering small Tesan’, flagship
pack sizes free mobile radio
Firm Infrastructure • Last Mile Reach
'Record to Report' project began with the vision ofchannel
creating accounting excellence centre
Eg.Shaktimaans
A simpler, diverse and agile organization that will help move faster, innovate better and leverage glo
HR Management scale.
Geo tagging to understand the proximity of the villages, Wireless technology to get the real time
Technology Information on demand pattern and trends , Project ‘My Business Information’ tapped into Big Data
Development
Procurement ‘The ‘Procure to Pay’ project ensured sustained world class levels of payment
Points of Leverage
Strong penetration in Indian rural markets with its distribution
network
Financial 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
Core Competencies

Distribution Diverse portfolio of


- 29 owned manufacturing
locations leading brands
- Over 1800 suppliers &
associates Brand Leadership-
- Over 3,500 stockists HUL is No.1 in most of the
categories it operates-
- Direct Coverage – over 3 Soaps, Hair Care, Home
million outlets Care, Tea, Oral Care, Skin
- 6.3 million retail outlets Care
reaching the entire urban & - Soaps- No.1,
250 million rural customers
- Turnover in 2014-15 INR - Hair Care- No.2
30,170 crores
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
McKinsey's 7s Framework
System
Super-ordinate Goals Structure
HUL has one of the best
Equality of opportunity a) Centralized
MIS systems supported by
Functions
the Adonis software
Conducting operations  Finance
system to coordinate day
ethically  HRM
to day activities with its
 Research
huge distribution network
Long term partnership  IT
including depots,
with suppliers/ business  Corporate & Legal
wholesalers and retailers
associates
b) Decentralized
Further, to govern
Promotion on merit Functions
everyday activities, it
 Strategic Mgmt
depends on informal
HUL believes in being  Operational Mgmt
procedures too
good corporate citizens  Functional Level Mgmt
McKinsey's 7s Framework
Style Staff Skills

 Equality of opportunity  Committed to diversity  Maintains an extensive


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

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