Download - Sales and Distribution -Hindustan Uni Lever
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Hindustan UnileverA study of Sales and Distribution
Presented by Aathira G Krishna
D Nisha
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Vision of HUL
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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
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Sales hierarchy
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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
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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
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REDISTRIBUTION STOCKIST
REDISTRIBUTION STOCKIST
WHOLESELLERWHOLESELLER FAMILY GROCERIES
FAMILY GROCERIES RETAILINGRETAILING
PURELY WHOLESALE
PURELY WHOLESALE
SEMIWHOLESALE
SEMIWHOLESALE
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DISTRIBUTION NETWORK OF MORDERN TRADE
FACTORY
C&F
CUSTOMER SERVICE PROVIDER
BIG BOX RETAILER
CUSTOMER
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Sales Process
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Operational aspects of Distributor
• Permanent journey plan• Frequency of visit• Beet • Replenishment– EOQ– Permanent Dispatch Plan– UNIFY
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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.
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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
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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.
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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
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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”
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Interesting facts about HUL
• Turnover – 13,OOO crores• Investment - ???
• 2009 – 15,000 employees• 2013 - ????
-18%
00!!!
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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