MBA 101 in action: Running business - the HUL way!

Sudhir avers that it took him only 4 months to type the book although it took 20 years to write. In similar vein, it does not take long for most organizations to appreciate the advantages of running business in line with management principles taught in business schools- mostly under 101 courses, but most organizations may take lifetime to practice these  principles in letter and spirit. And this is the where Hindustan Lever has got the edge.

Most of the book lessons may not be new, but how Hindustan lever implements them come live through experience and practice sharing that Sudhir has brought out very effectively. Most companies, especially operating in developing economies, profess focus on growth, cost consciousness, meritocracy, differentiated workforce strategies implemented in sensitive and humane manner, grounded leadership, and importance of balancing character and competency while defining their definition of desirable talent.

Given the richness of experience Hindustan lever managers have in FMCG space- across all 4Ps of marketing, any conclusions or suggestions coming from their side merits deliberation. Defining marketing process as understanding customer needs and solving customer problems defined in-terms of Job to be done, is powerful way to differentiate it from its components, including publicity, advertisement or sales.

Some interesting insights that are worth reflecting, to understand their relevance in one’s business context includes:
1. Buyers are far more similar in behavior than you think- avoid over-segmentation
2. What matters is the quality the consumer gets and not quality designed in the laboratory
3. It is easier to get consumers adopt new category than to get them increase consumption
4. Price discounts do not recruit new consumers, encourage existing consumers to buy more
5. Lower price point is more important than cheaper price per kilo for low-income consumers
6. Build portfolio of brands at different price points to be resilient in times of crisis
7. Sales is a cost and not a revenue centre
8. Ensure availability of stock and not depth of stock- keep stock refilling cycle short.
9. Spend more on advertising deployment and not on advertising creation.
10. Look for reach than repetition in media plan- whisper to as many

Among my favorites is the practical suggestion of ensuring that decision has both the right and left brain backing – as Sudhir mentions that decisions are often created in inebriated state and validated and firmed up in sober state.

 Book full of insights that are real contradictions that become  obvious in hindsight!