Hul Distribution Network 2b394x
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1
DISTRIBUTION NETWORK
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2
GROUP • • • • •
DISHA RAWAT (13) KAVITA (18) MANISHA SHAH (19) SALMAN (21) RAKESH AGGARWAL (33)
group no. 8
3
Contents Ø Ø Ø Ø Ø • • • Ø • • • •
•
Vision of HUL History of HUL Product mix Network Rural distribution network Shakti project Project streamline Lifeboy swasthaya chetna Urban distribution network Lakme beauty salon HLN Ayush therapy Program vijeta group no. 8
4
VISION OF HUL
group no. 8
5
Sunlight soap first imported in In
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6
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. • Over 15,000 employees, including over 1,300 managers group no. 8
7
group no. 8
8
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9
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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 •
group no. 8
11
DISTRIBUTION NETWORK FOR GENERAL TRADE
FACTORY
CARRYING AND FORWARDING AGENT
DISTRIBUTER
URBAN AREA
RURAL AREA
( RD ) STAR SELLER REDISTRIBUTION STOCKIST ( RSREDISTRIBUTER )
group no. 8
12
group no. 8
13
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
group no. 8
14
group no. 8
15
PROJECT SHAKTI •
In 2001,with partnership of self help group of rural women & covers 5000 villages in 52 districts in different states.
• •
SHAKTI targets small villages with the population of less then 2000.
• •
•
Providing health & hygiene education through shaktivani program. group no. 8
16
SHAKTI Now SHAKTI has been extended 80,000 villages in 15 states with 45,000 women entrepreneurs & generating Rs.700-1000 per month to each women.
•
group no. 8
17
Lifebuoy swasthaya chetna Ø Life boy swasthaya chetna (LBSC) is a rural health& hygiene initiative which was started in 2002. Ø LBSC was initiative in media dark villages in (UP, MP, Bihar, Orissa) with the objective of spreading awareness about the washing hands with the soup. Ø Being India's leading personal wash health brand Lifebuoy saw a role for itself in propagating the massage of hygiene & health in village • group no. 8
18
Lifebuoy swasthaya chetna Ø LBSC is multi-phased activity which works towards effecting behavior change amongst the rural population it touches. Ø It target children as they are the harbingers of change in society and mothers since they are the custodians of health. Ø The first interaction with students is then replicated with the women and finally the rest of the community. group no. 8
19
Modern Channel Architecture
Channels Prioritized in 2008-09 Supermarkets
Family Grocer
Self-service store where there is room for shoppers to browse and interact with the products. Over the counter store mainly for monthly household shopping.
Kiosk
A tiny over the counter store, easily accessible for emergency purchases. It stocks solely low unit packs
Wholesale
Route to Market group no. 8
20
Super Value Stores • Growth of organized retailing in India , in food and grocery segment. • Capture 2% of market share. • Many stores in small and big cities are being converted as SVSs of HUL. • Benefit to HUL is better display of its product and exclusive promotional offers for its customers. group no. 8
21
Lakme Beauty Salons • Professionals in salons are trained by lakme academy. • Offer regular and beauty care related services. • Selling lakme products. • Salons are set up in 71 locations in 28 Indian cities . • group no. 8
22
Ayush therapy treatment centers • Launched in 2002 • Collaborated with Arya Vaidya Pharmacy , leading name in ayurveda to set up Ayush Therapy Treatment Centers. • These centers provide health advice and therapy include stress relief , aches and pain relief ,hair and skin care. • Provide promotional schemes on Women’s Day. group no. 8
23
group no. 8
24
Hindustan Lever Network (HLN) • Independent company owned distribution channel. • Started in 2003 • An individual can be a part of HLN in two ways: Ø As privileged consumers Ø As HLN consultant • Currently, HLN is operating in 15oo towns with 3.5 lakh consultants. group no. 8
25
Program Vijeta • HUL launched this program in 2002 • Aimed at strong network of wholesalers . • Company tied up with Direm Marketing Services Pvt. Ltd , India’s leading marketing agency • This program is used as a platform to interact closely with its channel partners and build long lasting relationship. • http://vijeta-hul.net/hip.php group no. 8
26
Why all these program Ø To make people aware. Ø To increase consumption. Ø To increase revenue. Ø Improvement in livelihood and standard of living of rural communities. Ø Corporate social responsibility. •
group no. 8
27
Keys of Sales & Distribution • Customers have the tendency to buy products which occupy more shelf space and are placed at “eye” level • T H U M B R U LE
For Population of 1 lakh “250 to 300 outlets”
group no. 8
28
Initiatives in channel & customer management vNew sales organisation in place. vGreater focus on activation of modern retailers as they emerge. vSegmented approach to general trade and modern trade • Improved customer service. • Continuous replenishment operations. • Lower trade stock • Improved stock freshness vInformation Technology for efficiency. group no. 8
29
• HUL had different distributors for its home and personal care division and food division in the same area. Now, all the products would be sold by the same distributor in any one area. • Also, earlier, products from different divisions used different distributors, even in the same city. Now, products across divisions will be fed to retailers through unified distributors. • HUL has also tied up with Manpower Consultants to help distributors recruit group no. 8
30
Conclusion • HUL leads distribution foray in India • Has wide distribution network • HUL’s success = Its Distribution •
th e o n ly th in g th a t re m a in s co n sta n t in H U L d istrib u
group no. 8
31
Suggestions
EXPANSION
group no. 8
32
Thank you
group no. 8
33
1
DISTRIBUTION NETWORK
group no. 8
2
GROUP • • • • •
DISHA RAWAT (13) KAVITA (18) MANISHA SHAH (19) SALMAN (21) RAKESH AGGARWAL (33)
group no. 8
3
Contents Ø Ø Ø Ø Ø • • • Ø • • • •
•
Vision of HUL History of HUL Product mix Network Rural distribution network Shakti project Project streamline Lifeboy swasthaya chetna Urban distribution network Lakme beauty salon HLN Ayush therapy Program vijeta group no. 8
4
VISION OF HUL
group no. 8
5
Sunlight soap first imported in In
group no. 8
6
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. • Over 15,000 employees, including over 1,300 managers group no. 8
7
group no. 8
8
group no. 8
9
group no. 8
10
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 •
group no. 8
11
DISTRIBUTION NETWORK FOR GENERAL TRADE
FACTORY
CARRYING AND FORWARDING AGENT
DISTRIBUTER
URBAN AREA
RURAL AREA
( RD ) STAR SELLER REDISTRIBUTION STOCKIST ( RSREDISTRIBUTER )
group no. 8
12
group no. 8
13
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
group no. 8
14
group no. 8
15
PROJECT SHAKTI •
In 2001,with partnership of self help group of rural women & covers 5000 villages in 52 districts in different states.
• •
SHAKTI targets small villages with the population of less then 2000.
• •
•
Providing health & hygiene education through shaktivani program. group no. 8
16
SHAKTI Now SHAKTI has been extended 80,000 villages in 15 states with 45,000 women entrepreneurs & generating Rs.700-1000 per month to each women.
•
group no. 8
17
Lifebuoy swasthaya chetna Ø Life boy swasthaya chetna (LBSC) is a rural health& hygiene initiative which was started in 2002. Ø LBSC was initiative in media dark villages in (UP, MP, Bihar, Orissa) with the objective of spreading awareness about the washing hands with the soup. Ø Being India's leading personal wash health brand Lifebuoy saw a role for itself in propagating the massage of hygiene & health in village • group no. 8
18
Lifebuoy swasthaya chetna Ø LBSC is multi-phased activity which works towards effecting behavior change amongst the rural population it touches. Ø It target children as they are the harbingers of change in society and mothers since they are the custodians of health. Ø The first interaction with students is then replicated with the women and finally the rest of the community. group no. 8
19
Modern Channel Architecture
Channels Prioritized in 2008-09 Supermarkets
Family Grocer
Self-service store where there is room for shoppers to browse and interact with the products. Over the counter store mainly for monthly household shopping.
Kiosk
A tiny over the counter store, easily accessible for emergency purchases. It stocks solely low unit packs
Wholesale
Route to Market group no. 8
20
Super Value Stores • Growth of organized retailing in India , in food and grocery segment. • Capture 2% of market share. • Many stores in small and big cities are being converted as SVSs of HUL. • Benefit to HUL is better display of its product and exclusive promotional offers for its customers. group no. 8
21
Lakme Beauty Salons • Professionals in salons are trained by lakme academy. • Offer regular and beauty care related services. • Selling lakme products. • Salons are set up in 71 locations in 28 Indian cities . • group no. 8
22
Ayush therapy treatment centers • Launched in 2002 • Collaborated with Arya Vaidya Pharmacy , leading name in ayurveda to set up Ayush Therapy Treatment Centers. • These centers provide health advice and therapy include stress relief , aches and pain relief ,hair and skin care. • Provide promotional schemes on Women’s Day. group no. 8
23
group no. 8
24
Hindustan Lever Network (HLN) • Independent company owned distribution channel. • Started in 2003 • An individual can be a part of HLN in two ways: Ø As privileged consumers Ø As HLN consultant • Currently, HLN is operating in 15oo towns with 3.5 lakh consultants. group no. 8
25
Program Vijeta • HUL launched this program in 2002 • Aimed at strong network of wholesalers . • Company tied up with Direm Marketing Services Pvt. Ltd , India’s leading marketing agency • This program is used as a platform to interact closely with its channel partners and build long lasting relationship. • http://vijeta-hul.net/hip.php group no. 8
26
Why all these program Ø To make people aware. Ø To increase consumption. Ø To increase revenue. Ø Improvement in livelihood and standard of living of rural communities. Ø Corporate social responsibility. •
group no. 8
27
Keys of Sales & Distribution • Customers have the tendency to buy products which occupy more shelf space and are placed at “eye” level • T H U M B R U LE
For Population of 1 lakh “250 to 300 outlets”
group no. 8
28
Initiatives in channel & customer management vNew sales organisation in place. vGreater focus on activation of modern retailers as they emerge. vSegmented approach to general trade and modern trade • Improved customer service. • Continuous replenishment operations. • Lower trade stock • Improved stock freshness vInformation Technology for efficiency. group no. 8
29
• HUL had different distributors for its home and personal care division and food division in the same area. Now, all the products would be sold by the same distributor in any one area. • Also, earlier, products from different divisions used different distributors, even in the same city. Now, products across divisions will be fed to retailers through unified distributors. • HUL has also tied up with Manpower Consultants to help distributors recruit group no. 8
30
Conclusion • HUL leads distribution foray in India • Has wide distribution network • HUL’s success = Its Distribution •
th e o n ly th in g th a t re m a in s co n sta n t in H U L d istrib u
group no. 8
31
Suggestions
EXPANSION
group no. 8
32
Thank you
group no. 8
33
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