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hul finalPresentation1

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  • 8/8/2019 hul finalPresentation1


    INTRODUCTION Hindustan Unilever Limited (HUL), formerly

    Hindustan Lever Limited (it was renamed in late June2007 as HUL)

    India's largest Fast Moving Consumer Goodscompany .

    HUL is also one of the country's largest exporters . The mission that inspires HUL's over 15,000

    employees, including over 1,300 managers, is to "add

    vitality to life." HUL meets everyday needs for nutrition, hygiene,

    and personal care with brands that help people feelgood, look good and get more out of life .

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    NETWORK OF HUL Evolution of HULs distribution network.

    Transportation and Logistics. Channel Design.

    Initiatives taken for channel member

    management. Field force management.

    Analytical framework.

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    Evolution Of HULs Distribution

    Network(TERRITORY DESIGN) 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 toprovide desired products and quality service

    to the company's customers . The highlight of the third phase was the

    concept of "Redistribution Stockist" (RS) whoreplaced the RWs .

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    Distribution At Villages

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    Distribution At Urban Centers Distribution of goods from the manufacturing site to

    C & F agents take place through either the trucks orrail roads depending on the time factor for deliveryand cost of transportation.

    Generally the manufacturing site is located such thatit covers a bigger geographical segment of India.

    From the C & F agents, the goods are transported to

    RSs by means of trucks and the products finallymake the last mile based on the local popular andcheap mode of transport.

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    New Distribution Channels Project Shakti

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    Project Streamline

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    Hindustan Lever Network Mother Depot and Just in Time System .

    Leveraging Information technology .

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    Base cccccc

    Straight-LinePattern First Call


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    Channel Design

    Redistribution Stockists Sales Margin: 4.76% which includes cash discount, unloading

    expenses from depot, distribution expenses to retailers, incentiveschemes & other incidental expenses.

    Modes of transport used: Rickshaw, tempo. Incentive schemes: Before 2000 holiday packages and tours but

    after 2000 no nonmonetary incentive for RS. Software systems and Information System: UNIFY 8.3 (Developed

    by IBM & CMC). This software needs to be synchronized daily and thesystem updates any information/ incentive schemes / sales figures etcto and from the common shared platform.

    Areas of Operations: Marked for each of the RS. Selling Operations: RSs sells the goods to

    o Wholesaler (gets 1.5 % max. discount from RS) o Retailers (gets 1.0% max. discount from RS)

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    Wholesaler: Gets cash discounts and other schemes

    promoted by HUL (gets points under VijetaScheme). Retailers:

    Total retailer base in Jamshedpur:Approximately 1070.

    Sales Margin: Depends on the product o Soap, detergents 8% on MRP o Cosmetics 10% on MRP o Food items 8% on MRP

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    Incentive schemes:

    Company programs (Scheme Discounts+ Cash Discounts)

    TPR schemes based on Sales (1 % to 4%)

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    Initiatives takentoImprove

    the Distribution Network

    Setting up of a full scale sales organisation

    comprising key account management and activationto impact, fully engage and service modern retailersas they emerge.

    Servicing Channel partners and customers withcontinuous daily replenishment.

    Leveraging scale and building expertise to serviceModern Trade and Rural Markets.

    Delaying of sales force to improve response timesand service levels.

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    Analytical Framework We tried to analyze HULs distribution network in the light of 20 most

    significant variables that affect the distribution part of channelmanagement for any organization in the business of marketing &selling of goods.

    Number of Consumers

    Geographic Dispersion of Consumers

    Frequency ofPurchase

    Tendency to Postpone Purchase

    Degree of Brand Loyalty

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    CONCLUSION As we know that HUL is having a wide variety of products line and

    width. HUL meets everyday needs for nutrition, hygiene, and personalcare with brands that help people feel good, look good and get moreout of life.

    It is very difficult for a sales person to go and capture each and everysegment of market,so it follows a Straight line pattern where one salesperson goes and capture a entire market segment in a straight linebasis so a sales person starts from its defined territory i.e their mainheadoffice(Base) then goes to their respective distributers in a straightline pattern.While one salesperson goes in a straight line pattern

    The sales person goes to every retailer on one-on-one basis and tries

    to exaggerate their current demand so that one-on-one problem canbe solved.As we know that their distribution persons are very hugelybased so every sales person goes on a straight line basis collects thegiven order and then finally return to the base and then give theircurrent order of their intermediaries to the company about the orders.

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    http://www.scribd.com/doc/15968265/HUL HUL Website (http://www.hul.co.in/)




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