Hindustan Unilever Ltd (HUL), India?s largest FMCG company, is determined to use the current economic crisis to singularly focus on its growth.? We think that consumer understanding is key to achieving this, specially at a time like this, it is crucial to understand and respond to changing consumer and shopping behaviour,” said Hindustan Unilever chairman Harish Manwani while addressing shareholders at the company?s annual general meeting (AGM).
Manwani referred to a unique ?paradox? in strategy, which he referred to as ?business as usual on growth, business unusual on costs?. Currently HUL has 35 brands in its product portfolio and 50,000 employees on its roll.
?A responsible business must ensure that while it continues to invest in growth, it is simultaneously reshaping the cost structure for the worst-case scenario, that is ‘business unusual on costs,’? Manwani said. HUL?s new `go-to-market? distribution model reduces complexity at the front end and enables efficiencies across one extended supply chain and consequently considerable reduction in cost. The company has embarked on a `war on waste? to drive efficiencies in turbulent times. Manwani elaborated on steps the company has taken to improve the ?return on marketing investment? (ROMI). Identification of media elasticity of every brand to drive superior ROMI and also ?advanced marketing mix modelling techniques? to assess all the marketing levers to drive for growth and superior yields from marketing investment.
Manwani emphasized the need to plan for and manage the business more dynamically given the volatility in the input costs.