hul presentation scm

8/2/2019 HUL Presentation SCM

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NEW PARADIGM OF DISTRIBUTION FOR

FMCG COMPANIES

GROUP-8GARGI,GIRISH,DEEPAK,SAPTHAMI,NAMIT,VAIBHAV aNAND


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SUMMARY

The case deals with different distribution

strategies adopted by FMCG companys that

is- HUL,P&G,NESTLE and DABUR.

How these companys are different in their

distribution strategies from each other.


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QUESTIONS

1.What are the strengths and weaknesses of HUL s

distribution model?

STRENGTHS:

HUL off-load the products on a large wholesaler, usually at largerdiscounts.

Smaller retailers buy the products directly from the wholesaler, this

leads to the need for a distributor with a large sales force ------- This

results in lower cost for manufacturing company.

HUL provide its product for every income and geographicalsegment in the country.

HUL maintains the heterogeneity in products for Indian markets.


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CONTIWEAKNESS:

Wholesale distribution lead to a reduction in cost, brand

building and customer recognition suffer in the long term.


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CONTI..2.Compare HULs distribution model with that of other

FMCG companies?

HUL Distribution model:

The first phase of the HUL distribution network had

wholesalers placing bulk orders directly with the company.

The second phase, was to provide desired products and

quality service to the company's customers. The third phase was the concept of "Redistribution

Stockiest.The RS was required to provide the distribution

units to the company salesman.


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DISTRIBUTION NETWORK OF HUL


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DISTRIBUTION MODEL OF P&G

Company focuses on demand based model, which

enables to reduce the quantum of waste.

P&G is getting out of rural market and focusing on

class A and B towns.


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DISTRIBTION MODEL OF NESTLE

It added on roughly Rs.3,50,000 retail points to its

network, the bulk of them is in smaller towns andrural areas.

Also added a slew of new products and variants.

Company has identified about 1443 millionhouseholds as its target groups.


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DISTRIBUTION MODEL OF DABUR

It reduced the number of distributors in small towns , as it wasuneconomical.

Company has appointed a system called superstockists.

A superstockist differ from a distributor in that he services 10 to 15

sub stockiest, who intern supply the retailer.

Dabur focused on a mantra called-instead of expanding distributionto increase demand for a product, demand must drive distribution.


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hul presentation scm

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