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HUL Distribution Network (Final Presentation)

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company and one of the country's largest exporters. HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. The document discusses HUL's distribution management in India, including the evolution of its distribution network from wholesalers to redistribution stockists. It also covers HUL's supply chain management, transportation and logistics, channel design, and initiatives to manage channel members such as setting up a sales organization and daily replenishment programs.

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2K views22 pages

HUL Distribution Network (Final Presentation)

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company and one of the country's largest exporters. HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. The document discusses HUL's distribution management in India, including the evolution of its distribution network from wholesalers to redistribution stockists. It also covers HUL's supply chain management, transportation and logistics, channel design, and initiatives to manage channel members such as setting up a sales organization and daily replenishment programs.

Uploaded by

angihp
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Topic : Distribution Management of Hindustan

Unilever¶s (HUL) in India

Subject : Distribution Management


Faculty : Prof. Bins Mathew
Stream: MMM, SEM V

Presenter:
Angela Nediyodi Roll No. M08
Deepali Aparaj Roll No. M02
Introduction«..

Ä Hindustan Unilever Limited (µHUL¶), formerly Hindustan


Lever Limited (it was renamed in late June 2007 as
HUL).
Ä India's largest Fast Moving Consumer Goods company
Ä HUL is also one of the country's largest exporters
Ä The mission that inspires HUL's over 15,000
employees, including over 1,300 managers, is to "add
vitality to life.³
Ä HUL meets everyday needs for nutrition, hygiene, and
personal care with brands that help people feel good,
look good and get more out of life.
á T Analysis
Strength ]eakness
r Innovative Aspects r átrong Competitors
r Presence of established r Low Export Level (at
distribution network in both Present)
r átrong R&D r Changing consumption
r Highly skilled HR pattern
r Effective CáR r High advertising costs

spportunity Threat
r Large domestic Market r Mimic of brands
r Untapped rural Market r New Entrants (ITC, P&G)
r Changing life styles & rising r Increasing cost of raw
income levels material
Analysis of Distribution Network

e have analyzed the distribution network of HUL from the


following aspects:

1. áupply Chain Management


2. Evolution of HUL¶s distribution network
3. Transportation & Logistics
4. Channel Design
5. Initiatives taken for channel member management
áupply Chain«..

Level 1 áets ácope PLAN


& Context,
áegments &
Products áource Make Deliver

Return

Build to Build to Engineer Level-2


átock rder to order Identifies major
Configurations
Level 3
Identifies Key Business activities

áchedule Issue Product átage Release


Production Package Product
product & test product
Activities to Deliver
Evolution of Distribution Network

Ä The 1st phase of the HUL distribution network


had wholesalers placing bulk orders directly with
the company
Ä The focus of the 2nd phase, which spanned the
decades of the 40s, was to provide desired
products and quality service to the customers
Ä The highlight of the 3rd phase was the concept
of "Redistribution átockist" (Rá) who replaced
the R s.
Distribution at Villages«

RURAL DISTRIBUTIsN MsDEL


Distribution at Urban Centers«
Ä Distribution of goods from the manufacturing site
to C&F agents takes place through either trucks or
rail/road depending on the time factor for delivery and
cost of transportation.
Ä Generally the manufacturing site is located such that
it covers a bigger geographical segment of India.
Ä From the C&F agents, the goods are transported
to Rá¶s by means of trucks and the products
finally make the µlast mile¶ based on the local popular
and cheap mode of transport.
New Distribution Channels«
áhakti peration
Project átreamline«.
áhaktiman¶s to Power Rural Reach

Ä µáhaktimaans¶ are been roped in by HUL to fulfil its ambition of


reaching villages with population of less than 2,000 and are beyond
the reach of the company¶s redistribution stockists (Rá).

Ä Every day, áhaktiman sets out on a bicycle which has been


provided by HUL for him to commute to villages to distribute
products and sachets of popular brands like heel, Lifebuoy,
Pond¶s, Brooke Bond, among others, to aspiring consumers.

Ä Earlier, these consumers had to satisfy their needs by purchasing


products from nearby villages where the company has direct
distribution. Now, their needs will be met in their own villages by
the visiting shaktimaans.

Ä This FMCG Giant will push 25,000 áhaktiman¶s-distributors on


cycles ± into action in 1.5 lakh remote villages.
Hindustan Lever Network

Ä It is the company's arm in the Direct áelling


channel, one of the fastest growing in India today
Ä It already has about several lakh consultants A a
independent entrepreneurs, trained and guided by
HLN's expert managers
Ä The New Compensation plan for HLN partners
provides new exciting ways of earning substantial
income in addition to offering rewards like
revenue sharing through the innovative concept of
³pools´
Hindustan Lever Network

?    
      
Ä Certain C&F agent¶s were selected across the country
to act as mother depots. Each of them has a
minimum number of JIT depots attached for stock
requirements.
Ä All brands and packs required for the set of
markets which the MD and JITs service in a given
area are sent to the mother depot by all
manufacturing units.
Market Leadership across various
FMCG Categories
Channel Design

Hindustan Lever Limited (HUL) has


two types of channel selling viz

1. Regular (traditional) retail channel &

2. Direct áelling Channel in the name of


Hindustan Lever Network (HLN).
Channel átructure
Redistribution Stockiest:-

Ä á    ·   


   

  
     
       
          

Ä 

 
    


Ä    


  
     
 
  

A
   
 á

Ä á
     
 
 á   !" #$ %&

  ' (() * 
   
 
+  
      
 
,    ,  
  
 
  

   


Ä - 
. 
  
  
 á

Ä á . 
 á   


A
o holesaler (gets 1.5 % max. discount from Rá)
o Retailers (gets 1.0% max. discount from Rá)
Channel átructure
Contd«
]  
Ä Gets cash discounts and other schemes promoted by HUL (gets
points under Vijeta ácheme).
°   
Ä *
/  /  / / 0   / -
1 / 23/

Ä á /   / & /


/ / 
 /
Ä áoap, detergents A 8% on MRP
Ä Cosmetics A 10% on MRP
Ä Food items A 8% on MRP
Incentive schemes:
Ä Company programs (ácheme Discounts + Cash Discounts)
Ä TPR schemes based on áales (1 % to 4 %)
Ä Vijeta scheme is not for retailers.
Initiatives Taken to Improve The
Distribution Network

Ä áetting up of a fullAscale sales organization comprising key


account management and activation to impact, fully engage
and service modern retailers as they emerge.
Ä áervicing Channel partners and customers with continuous
daily replenishment.
Ä Leveraging scale and building expertise to service Modern
Trade and Rural Markets.
Ä Delaying of sales force to improve response times and
service levels
Ä Launching the Unicare scheme with up market pharmacies and
retailers to sale its premium brands.
Ä Launching of several promotional schemes for existing
wholesalers and distributors.
Thank You

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