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Hindustan UnileverA study of Sales and Distribution
Presented by Aathira G Krishna
D Nisha
Vision of HUL
HUL - “Add vitality to life"
• Formerly Hindustan Lever Limited (renamed in late June 2007)
• India's largest Fast Moving Consumer Goods company
• Combined volumes of about 4 million tonnes and sales of nearly Rs. 13718 crores.
• Golden Super Star Trading House - Govt of India. • Over 15,000 employees, including over 1,300
managers
Sales hierarchy
NETWORK
• 7,500 distributors serve – 4,000 Redistribution stockists
• 35 C&FAs in the country • 40 manufacturing plants - 2 million square
miles territory
• 6.3 million retail outlets • About 250 million rural consumers
DISTRIBUTION NETWORK FOR GENERAL TRADE
FACTORYFACTORY
CARRYING AND FORWARDING AGENT
CARRYING AND FORWARDING AGENT
DISTRIBUTERDISTRIBUTER
URBAN AREAURBAN AREA RURAL AREARURAL AREA
REDISTRIBUTION STOCKIST(RS)
REDISTRIBUTION STOCKIST(RS)
REDISTRIBUTER(RD)
REDISTRIBUTER(RD)
STAR SELLERSTAR
SELLER
REDISTRIBUTION STOCKIST
REDISTRIBUTION STOCKIST
WHOLESELLERWHOLESELLER FAMILY GROCERIES
FAMILY GROCERIES RETAILINGRETAILING
PURELY WHOLESALE
PURELY WHOLESALE
SEMIWHOLESALE
SEMIWHOLESALE
DISTRIBUTION NETWORK OF MORDERN TRADE
FACTORY
C&F
CUSTOMER SERVICE PROVIDER
BIG BOX RETAILER
CUSTOMER
Sales Process
Operational aspects of Distributor
• Permanent journey plan• Frequency of visit• Beet • Replenishment– EOQ– Permanent Dispatch Plan– UNIFY
Project “Shakti”
• Rural India is spread across 627,000 villages and possesses a serious distribution challenge for FMCG Cos.
• HLL has come up with a unique and successful initiative wherein the women from the rural sector market HLL products, and hence, are able to reach the same wavelength as of the common man in village.
Project Streamline
• HUL initiated a Streamline initiative in 1997- cater to the needs of the inaccessible market
• Focuses on extending distribution to villages with less than 2000 people
RS INITIATIVE
• Launched in 2001• Connecting Redistribution Stockists (RSs)
through an internet based system• Account for about 80% of the company's
turnover• RS Net is one of the largest B2B e commerce ‐
initiatives ever undertaken in India.• The IT powered system has been implemented ‐
to supply stocks to redistribution stockists on a continuous replenishment basis.
Go to Market
• Kick started at Mumbai last June• Uses concept of JIT• 42 cities and towns across India by the end of
2009• In hands with Mahindra Logistics
• Cost cutting and restructuring initiative
Keys of Sales & Distribution
• 80: 20 principle• Customers have the tendency to buy products
which occupy more shelf space and are placed at “eye” level
THUMB RULEFor Population of 1 lakh
“250 to 300 outlets”
Interesting facts about HUL
• Turnover – 13,OOO crores• Investment - ???
• 2009 – 15,000 employees• 2013 - ????
-18%
00!!!
Conclusion
• HUL leads distribution foray in India• Followed up more than 80% of the company• Has wide distribution network• HUL’s success = Its Distribution
Change is the only thing that remains constant in
HUL distribution