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