HUL CASE STUDY

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 Contents
@ Introduction to the case
@ Fabric Wash Sector
@ Challenges
@ Case Analysis
@ Distribution Network
@ Current Strategy
@ Sales Organizational Structure
 Introduction to the case
@ The case focuses on the Indian fabric wash
sector.
@ The case shows the growth potential and
increasing market share of HUL
@ The case also focus on the strength of
power brands of HUL in competition with
P&G and Nirma.
@ It also focuses on the distribution network
of HUL in urban and rural areas.
Products«..
Fabric Wash Sector
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 Challenges

@ Change in distribution Networks

@ Issues regarding rural penetration
@ Change in strategy
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 Evolution of HUL¶s distribution
Network
@ The first phase of the HUL distribution network
had wholesalers placing bulk orders directly with
the company
@ The focus of the second phase, which spanned
the decades of the 40s, was to provide desired
products and quality service to the company's
customers
@ The highlight of the third phase was the
concept of "Redistribution Stockist" (RS) who
replaced the RWs
Distribution at Villages«


   


Distribution at Urban Centers«
@ Distribution of goods from the manufacturing
site to C & F agents take place through
either the trucks or rail roads depending on
the time factor for delivery and cost of
transportation.
@ Generally the manufacturing site is located
such that it covers a bigger geographical
segment of India.
@ From the C & F agents, the goods are
transported to RS¶s by means of trucks and
the products finally make the µlast mile¶ based
on the local popular and cheap mode of
transport.
New Distribution Channels«


r To distribute their products in remote rural areas.
r 30% of FMCG business comes from villages with a
population less than 2,000.
r The Shakti model trains women from SHGs to
distribute HLL products of daily consumption such
as Detergents, Toilet soaps and Shampoos.
r The vision is to reach over 100,000 villages,
thereby touching about 100 million consumers.
The SHGs have chosen to adopt distribution of
HLL's products as a business venture.
Model
Project Streamline«.
 Initiatives Taken to Improve The
Distribution Network

@ Setting up of a fullüscale sales organization comprising key

account management and activation to impact, fully engage
and service modern retailers as they emerge.
@ Servicing Channel partners and customers with continuous
daily replenishment.
@ Leveraging scale and building expertise to service Modern
Trade and Rural Markets.
@ Delaying of sales force to improve response times and
service levels
@ Launching the Unicare scheme with upmarket pharmacies and
retailers to sale its premium brands.
@ Launching of several promotional schemes for existing
wholesalers and distributors.
 Current Strategy

@ Brand liberating Strategy

@ Focus on 30 power brands and 10
other regionally powerful brands
@ Direct Marketing
@ Importance on project Shakti for rural
thrust
@ Exporting its product for growth
strategy
  
   



GM
GM GM
(Personal
(Home care) (F & B)
care)

BM BM
(Surf) (Wheel)

RM
(West)

ASM ASM
(Urban) (Rural)

TSM
Thank--You
Thank