Hindustan-Unilever-Limited-HUL by jodhajodhpur

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									    Distribution System of
Hindustan Unilever Ltd.

                   Submitted by :
                   Kavita Dua (924)
                   Priyanka Singhal (943)
   Earlier known as Hindustan Lever Limited
   Was formed in 1933 as Lever Brothers India
   Headquartered in Mumbai,
   HUL is the market leader in Indian products such
    as tea, soaps, detergents etc.
   The company’s statement of corporate purpose is
    to “meet the everyday needs of people,
Introduction (cont’d)
Some of its brands include
 Kwality Wall's ice cream,
 Lifeboy,
 Lux,
 Breeze,
 Liril,
 Hamam,
 Pureit Water Purifier,
 Lipton tea,
 Brooke Bond tea,
 Bru Coffee,
 Pepsodent and toothpaste and brushes and many more.
Introduction (cont’d)

   The company was renamed in late June
    2007 to "Hindustan Unilever Limited“, to
    provide the optimum balance between
    maintaining heritage of the company and
    future benefits.

   HUL holds 100 factories across India for
    manufacturing its diverse product range.
Distribution System – Meaning

   Distribution system’s focus to enable easy
    access to their brands, touch consumers
    with a three-way convergence - of product
    availability, brand communication, and
    higher levels of brand experience.
What Distribution system
should do?
 The most obvious function of providing the
  logistics support to get the company’s product to
  the end customer.
 Another established role is that of financing. The
  channel partners are expected to extend credit to
  the next level of customers. Some channel
  members however also receive credit and the net
  credit extended is minimal.
What Distribution system
should do?
 The most neglected role of the channel is information
  flow –
  1. outward flow - about the company offerings
  2. inward flow about customer’s needs.
  However most channel members are reluctant to part with
  information on customers fearing disintermediation.
  Thereby a very vital input to a company’s responsiveness
  is lost.
 Value added services that supplemented the company’s
  effort – such as local sales,repairs, promotion, repacking,
  minor customisation, etc.
Distribution System of HUL
 HUL's products, are distributed through a
  network of about 7,000 redistribution
  stockists covering about one million retail
 The general trade comprises grocery stores,
  chemists, wholesale, kiosks and general
 Hindustan Unilever provide tailor made
  services to each of its channel partners.
Distribution System of
HUL (Cont’d)
 HUL is using the point of purchase method for
  much higher level of direct contact, through in-
  store facilitators, sampling, education and
 It has developed customer management and
  supply chain capabilities for partnering emerging
  self-service stores and supermarkets.
 2,000 suppliers and 7,500 distributors serve
  HLL’s 100 factories which are decentralized
  across 2 million square miles of territory
Distribution at the Villages
 The company has brought all markets with
  populations of below 50,000 under one rural sales
 The team comprises an exclusive sales force and
  exclusive redistribution stockists.
 The team focuses on building superior availability
  of products.
 In rural India, the network directly covers about
  50,000 villages, reaching 250 million consumers,
  through 6000 sub-stockists.
Distribution at the Supermarkets

   HUL has set up a full-scale sales
    organisation, for this channel to serve
    modern retailing outlets.

   Product tests and in-store sampling is
    provided to consumers.
Harnessing Information
 An IT-powered system has been implemented to
  supply stocks to redistribution stockists.
 The objective is to make the product available at
  the right place and right time in the most cost
  effective manner.
 For this, stockists have been connected through an
  Internet-based network, called RS Net, for online
 RS Net is part of Project Leap, HUL's end-to-end
  supply chain.
Pioneering new channels
  Hindustan Unilever is simultaneously creating
  new channels, designed on the same principle of
  holistic contact with consumers.

1) Project Shakti :HUL's partnership with Self Help
   Groups of rural women. Started in 2001, Project
   Shakti has already been extended to about 50,000
   villages in 12 states - Andhra Pradesh, Karnataka,
   Gujarat and others.
2) Hindustan Unilever Network (HUN): it is the
   company's arm in the Direct Selling channel. It
   presents a range of customised offerings in Home
   & Personal Care and Foods.

3) Out-of-Home : this deals in providing vending
   machines for hot beverages like tea and coffee.
   HUL’s alliance with Pepsi Co. has significantly
   strengthened the channel.

4) Health and Beauty services : Lakme Salons
   provide specialised beauty services and solutions,
   under the recognised authority of the Lakme
   brand. The Ayush Therapy Centres provide easy
   access to authentic Ayurvedic treatments and

Hindustan Unilever, which once pioneered
distribution in India, is today reinventing
distribution - creating new channels, and
redefining the way current channels are
serviced. In the process it is converging
product      availability,   with    brand
communication and brand experience.
Thank You

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