Operations strategy of HUL

Topics: Strategic management, Marketing, Rural Pages: 7 (1707 words) Published: December 9, 2014

HUL or Hindustan Unilever is a corporate giant in the fast moving consumer goods industry in the Indian market which was formed in 1933 as Lever Brothers India Limited. Its headquarter is in Mumbai, India. The company provides employment for more than 41,000 employees. With its 20 plus brands it announces its presence to various consumer segments. HUL covers about 6.4 million outlets in all over the country. The HUL products have made their presence in our country so strong that according to Nielsen Market Research, two out of three Indian consumers use HUL products. MISSION

HUL's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

This paper focuses on Hindustan Unilever Ltd.(HUL).It shines light over the value chain process of HUL and the corporate strategies adopted by them for their efficient functioning. Hindustan Unilever Ltd is the largest fast moving consumer goods company in the world. HUL stands out in terms of their highly innovative products and ideas which in turn helps them to retain their position as the market leaders. This article also briefly describes the value chain process adopted by HUL to produce its wide range of product varieties. The core competency of HUL lies in its distribution system. The large and formidable distribution network used by the HUL consisting over 3400 distributors and 16 million outlets help them to ensure a longer shelf life for their products. Their reputation and goodwill among the consumers also make them a formidable presence in the industry. Since the majority stock option is controlled by the parent company Unilever, it gives HUL a global platform for their products. HUL introduced a five point corporate strategy to adapt itself to rising demands of tech savvy consumers which has been described in brief. VALUE CHAIN PROCESS

HUL’s business process and its brands have an impact at every stage of the value chain - from procuring raw materials, manufacturing, distribution, to consumer use and disposal. Therefore, changes are implemented in their value chain in such a way that it positively influences the value chain .


Product Development
HUL has focussed widely on the product development factor. The focus has been on various segments from low price products to premium products. Most of the HUL products are developed on a global scale by following the policies and procedures laid down by Unilever. HUL has entered untapped markets and tried to focus on products which can satisfy the demands of all class of customers. Their products are widely ranged from health care, personal care, household care, to beverages etc . Inbound logistics

The inbound logistics of HUL includes storing in warehouses and in the form of maintaining the manufactured goods. The logistics management is 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. Procurement and Manufacturing

The procurement procedure undertaken by HUL is followed by a combination of backward integration with suppliers. HUL has its own farms when it comes to the production of agro based products and owns about 19 tea estates which produces tea leaves which are certified by Rain Forest Alliance. It also has a strong network of suppliers materials for the production purpose. HUL follows a speedy process of procurement to carry out efficient sourcing of raw materials to meet the growing demand. Similarly it also has a speedy process of manufacturing. In 2009-10, materials consumed and purchase of goods in HUL was about INR 8,901 crores. HUL has its own production departments which focus only on the packaging of goods produced.

Service and Logistics
Hindustan Unilever, which once pioneered...
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