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Hindustan Unilever

A 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
FACTORY

CARRYING AND
FORWARDING AGENT

DISTRIBUTER

URBAN RURAL
AREA AREA

REDISTRIBUT STAR
REDISTRIBU
ION SELLE
TER(RD)
STOCKIST(R R
S)
REDISTRIBUT
ION
STOCKIST

FAMILY
WHOLESE RETAILIN
GROCERI
LLER G
ES

PURELY SEMIWH
WHOLES OLESALE
ALE
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 RULE
For Population of 1 lakh
“250 to 300 outlets”
Interesting facts about HUL
• Turnover – 13,OOO crores
• Investment - ???
-
18
%
• 2009 – 15,000 employees
• 2013 - ????
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

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