Draft Facilitation Guide for Interviews

Introduction
The aim behind this discussion is to understand HUL/GSK’s channel operating model, channel penetration,
channel service levels, terms of trade, margin structure and other incentives, technology adaption in channels,
etc. This has to be undertaken in three-fold ways – discreet interviews and discussions with channel partners
(distributors) of GSK and HUL, existing employees working in GSK/HUL through personal contacts, and analyst
reports covering this sector.

Interview Details (Please fill up before starting the interview)

A. Channel operating model and structure

1. What is the channel operating model and channel structure for HUL/ GSK? (By product segment/
region/ channel type)
2. Are the channel partners (distributors/ stockists) exclusive? How much of an overlap exists in the
distributor network of GSK and HUL?
3. Are there any specific channels for select products/ categories? Such as subscription,
ecommerce, Institutional etc.?
4. What are the channel margins at different levels:
i. Distributor
ii. Wholesaler
iii. Retailer (GT vs MT)
iv. Any other channel partner
5. Are the margins different by product category, type? If yes, please list them down.

B. Distribution Reach:
1. What is the distributor: retailer ratio typically? How does this vary by geography (rural vs. urban)?
2. What is the distribution of sales (%) by types of outlets for both GSK and HUL?
i. GT vs MT vs chemist vs. ecommerce, vs. institutional vs. any other
ii. Urban vs Rural
iii. North, South, West, East
3. What are the initiatives taken by GSK for penetration in rural?
4. How many sales outlets in India sell HUL/ GSK products? What is their split (no. and sales) by:
i. Split by zones (North, East, West, South)
ii. Split by states/ UTs,
iii. Split by urban/ semi-urban and rural

C. Distributors/ Retailers: - key questions to understand the differences in the GSK and HUL model
1. What are the major concerns of the distributor and retailer related to the merger?
2. What do they see as benefits of the merger e.g. increase in portfolio
3. Which are your focus distribution partners (chemists, GTs, etc.) for the distributors?
4. What is the distribution network of the distributors?
5. Which is the provider of technology systems (e.g. DMS, SFA) for GSK vs. HUL?
6. What is the typical credit period/inventory days?
7. What are the return policies?

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 Draft Facilitation Guide for Interviews
8. How does the order fulfillment and delivery happen? How do you place orders?
9. Have you deployed a dedicated sales team? If yes, how many employees and how much does it
cost?
10. Are there any product categories that you focus on?
11. How is your territorial reach decided?
12. What are the typical sales incentives, such as extra margin, discounts, etc. for more sales?
13. What are the dispute resolution policies with other distributors/retailers?

D. Online/Ecommerce:
1. What is the share of online channels in total sales (volume and value)?
2. What is the organization structure for handling online sales? Direct dealing with online channels
or distributors dealing with online channels?
3. Which product categories are targeted for ecommerce distribution?
4. Are there any exclusive partnerships with any online partners? (Dedicated website, etc.)
5. What are the return policies for online channels?
6. How are the margins/discounts decided for online partners?
7. Do you bundle your products for ecommerce channels? Who makes those decisions?

E. Modern Retail:
1. What is the distribution structure for modern retail across urban and rural markets? (Direct
engagement vs distributor route)
2. What are the clauses in the commercial agreements, w.r.t, shelf positioning, stock volume,
discounts, etc.?
3. What can be the key areas of conflict in the commercial relationships due to the merger?