1. Presented by: UdayJat, AbhinavSingla, VishalJagetia Distribution Management of HUL www.powerpointpresentationon.blogspot.com

2. Introduction • Hindustan  Unilever  Limited  (‘HUL’),  formerly  Hindustan  Lever  Limited  (it  was  renamed  in  late  June  2007  as  HUL) • India's  largest  Fast  Moving  Consumer  Goods  company • HUL  is  also  one  of  the  country's  largest  exporters

3. Analysis of Distribution Management of HUL We  have  analyzed  the  distribution  network  of  HUL from the following  aspects: 1. Evolution of HUL’s distribution management 2. Distribution network & Channel design 3. Approaches to rural distribution

4. Evolution of HUL’s distribution management • The first phase of the HUL distribution management 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

5. HUL Carrying & Forwarding Agent Redistribution Stockiest Wholesaler Rural Retailers Urban Retailers Consumer

6. Channel Design Hindustan Lever Limited (HUL) has two types of channel selling: • Regular (traditional) retail channel • Direct Selling Channel in the name of Hindustan Lever Network(HLN)

7. Channel structure Redistribution stockists:- • Sales  Margin:  4.76%  which  includes  cash  discount,  unloading  expenses  from  depot,  distribution  expenses  to  retailers,  incentive  schemes  &  other  incidental  expenses.   • Modes  of  transport  used:  Rickshaw,  tempo.   • Incentive  schemes   • Software  systems  and  Information  System:  UNIFY  8.3  (Developed  by  IBM  &  CMC).  This  software  needs  to  be  synchronized  daily  and  the  system  updates  any  information/  incentive  schemes  /  sales  figures  etc  to  and  from  the  common  shared  platform.   • Areas  of  Operations • Selling  Operations:   sells  the  goods  to  ‐   o Wholesaler   o Retailers  

8. Wholesaler:   • Gets  cash  discounts  and  other  schemes  promoted  by  HUL  (gets  points  under  Vijeta  Scheme).     Retailers:   • Sales  Margin:  Depends  on  the  product   • Soap,  detergents  ‐  8%  on  MRP   • Cosmetics              ‐ 10%  on  MRP   • Food  items            ‐  8%  on  MRP Incentive  schemes:    • Company  programs  (Scheme  Discounts  +  Cash  Discounts)   • TPR  schemes  based  on  Sales  (1  %  to  4  %)   • Vijeta  scheme  is  not  for  retailers.  

9. Approaches to Rural Distribution Accessibility Indirect coverage Direct coverage Streamline Turnover per market / Business potential

10. Direct Coverage

11. Indirect Coverage

12. Streamline

13. Project Shakti C & F A MACTS 1 MACTS 3 MACTS 2 SHG 5 SHG …. SHG 4 SHG 1 SHG 3 SHG 6 SHG 2 CONSUMERS

14. Thank-You