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Marketing Final Hul
Marketing Final Hul
INDEX
CHAPTER NO. 1 2 3 4 5 6 7 8 9 10
TITLE INTRODUCTION OF HUL VISSION MISSION OF HUL ABOUT DISTRIBUTION CHANNEL EVOLUTION OF THE DISTRIBUTION MODEL : CHANNEL OF DISTRIBUTION of HUL THE DISTRIBUTION NETWORK IN RURAL MARKET HUL SET TO STREAMLINE DISTRIBUTION NETWORK FINDINGS CONCLUSION BIBLIOGRAPHY
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These products endow the company with a scale of combined volumes of about 4 million tones and sales of nearly Rs.13718 crores touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The companys Turnover is Rs. 20, 239 crores (for the 15 month period January 1, 2008 to March 31, 2009).
HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life." HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity. The rest of the shareholding is distributed among 360,675 individual shareholders and financial institutions.
Hindustan Unilever Limited (HUL) (BSE: 500696) is India's largest consumer goods company based in Mumbai, Maharashtra. It is owned by the British-Dutch company Unilever which controls 52% majority stake in HUL. Its products include foods, beverages, cleaning agents and personal care products.
Brands
Annapurna salt and atta Bru coffee Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea Kissan squashes, ketchups, juices and jams Lipton tea Knorr soups & meal makers and soupy noodles Kwality Wall's frozen dessert Modern Bread, ready to eat chapattis and other bakery items
Homecare Brands
ActiveWheel detergent Cif Cream Cleaner Comfort fabric softeners Domex disinfectant/toilet cleaner Rin detergents and bleach Sunlight detergent and colour care Surf Excel detergent and gentle wash Vim dishwash Magic Water Saver
Aviance Beauty Solutions Axe deodorant and aftershaving lotion and soap LEVER Ayush Therapy ayurvedic health care and personal care products Breeze beauty soap Clear anti-dandruff hair products Clinic Plus shampoo and oil Close Up toothpaste Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants
Lakm beauty products and salons Lifebuoy soaps and handwash range Liril 2000 soap Lux soap, body wash and deodorant Pears soap Pepsodent toothpaste Pond's talcs and creams Rexona soap Sunsilk shampoo Sure anti-perspirant Vaseline petroleum jelly, skin care lotions TRESemm
Type
Public
Traded as
Industry
Consumer goods
Founded
1932
Headquarters
Key people
Products
Revenue
Net income
Employees
16,500 (2011)
Parent
Website
www.hul.co.in
MISSION:
Unilevers mission is to add vitality of life. They meet every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. Our mission Enthused with Vitality.
Vitality is at the heart of everything we do. It's in our brands, our people and our values. Vitality means different things to different people. Some see it as energy, others view it more broadly as a healthy state of body and mind of feeling alive. Whatever their personal definition, millions of people around the world use our productsdaily to add Vitality to their lives - whether that's through feeling great because theyve got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. Ever since the 19th Century when William Hesketh Lever stated that the companys mission was "to make cleanliness common place; to lessen work for women; to foster health and contribute to personal attractiveness, that life may be more enjoyable and rewarding for the people who use our products," Vitality has been at the heart of our business.
Vitality defines what we stand for: our values, what makes us different, and how we contribute to society. It's the common thread that links our brands and its central to the unique way we operate around the world.
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The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers.
Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does not reach the consumer before first going through a channel involving the farmer, exporter, importer, distributor and the retailer. Also called the channel of distribution.
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Channel Design
A firm can design any number of channels. Channels are classified by the number of intermediaries between producer and consumer. A level zero channel has no intermediaries. This is typical of direct marketing. A level one channel has a single intermediary. This flow is typically from manufacturer to retailer to consumer.
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Phase I The first phase of its distribution network had wholesalers placing bulk orders directlywith the company. Large retailers also place direct orders, which comprised almost 30 percent of the total orders collected. T h e company salesman grouped all these orders and placed an indent w i t h t h e H e a d Office. Goods were sent to these markets, with the company salesman as the consignee.The salesman then collected and distributed the products to the respective wholesalers, against cash payment, and the money was remitted to the company.
Phase II
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The Redistribution Stockist also undertook demand stimulation activities on behalf of the company. The second characteristic of this period was the changes brought in as the company realised that the Redistribution Stockist
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This system helped in transshipment, bulk breaking, and acted as a stock point to minimise stock-outs at the Redistribution Stockist level.In the recent past, .significant change has been the replacement of the Company Depot bya system of third party; the Carrying and Forwarding Agents (C&FAs). The C&FAs actas buffer stock-points to ensure that stock-outs did not take place. The C&FA system hasalso resulted in cost savings in terms of direct transportation and reduced time lag indelivery. The most important benefit has been improved customer service to theRedistribution Stockist.
RSNet
An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. The objective is to catalyze HULs growth by ensuring that the right product is available at the right place in right quantities, in the most cost-effective manner.
For this, stockists have been connected with the com pany through an Internet-based network, called RSNet, for online interaction on orders, dispatches Information sharing and monitoring. RS Net covers about 80% of
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Now it has started to leverage that valuable infrastructure to expand its reach to a huge and overlooked group of consumers: the rural poor.F o r r u r a l I n d i a , H U L h a s e s t a b l i s h e d a s i n g l e d i s t r i b u t i o n c
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1. Manufacturer_Customer: This is also known as direct selling because no Middlemen are involved. A producer may sell directly through his own retail stores, for example, Bata. This is the simplest and the shortest channel. It is fast and economical. Small producers and producers of
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2. Manufacturer _ Retailer _ Customer: This is one stage distribution channel having one middleman, i.e., retailer. In this channel, the producer sells to big retailers like departmental stores and chain stores who in turn sell to customer. This channel is very popular in the distribution of consumer durables such as refrigerators, T V sets, washing machines, typewriters, etc. This channel of distribution is very popular these days because of emergence of departmental stores, super markets and other big retail stores. The retailers purchase in large quantities from the producer and perform certain marketing activities in order to sell the product to the ultimate consumers.
3. Manufacturer _ Wholesaler _ Retailer _ Customer : This is the traditional channel of distribution. There are two middlemen in this channel of distribution, namely, wholesaler and retailer. This channel is most suitable for the products with widely scattered market. It is used in the distribution of consumer products
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HULs distribution network is recognized as one of its key strengths -- that which helps reach out its products across the length and breadth of this vast country The need for a strong distribution network is imperative, since hul has to gain the visibility and has to capture the minds of Indians every here It has 2000+ suppliers and associates 7,000 stock list and direct coverage in around million retail outlets across India. To meet the ever-changing needs
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Its because of the change in buying pattern of the consumer due to more disposable income. There are different channels of distribution like Modern Trade, which covers al chains of super markets , who get the stocks directly from the company. Wholesalers and second leg of big retail outlets called Super Value stores come under the surveillance of the distributor along with the mass retail outlets. There is also this new concept in the its distribution channel called Kiosk. Kiosk is a small shop that sells only s a c h e t s a n d l o w p r i c e d i t e m s ( b e l o w R s . 1 0 / - ) . K i o s k
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The strategy of distribution should take into account the purchasing habit of the rural people. While consumables are purchased in the village shop or Shandies or in bigger villages, the consumer durables are purchased only in Mandi centers, large towns or nearby cities. Hence the distribution center has to take the purchasing habit of the rural people into account, so that
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2. Use of Cooperative:
Over three lakh cooperative society operate in the rural are as for or different purposes like, marketing cooperatives, dairy corporative, farmer service corporative societies, consumer corporative and other multi purpose corporative. Given the number of such societies, there is at least one corporative society of one form or another for every two or three villages. These societies are linked to higher level of society like taluk, district, or state level. Thus these corporative have an arrangement for centralized procurement and distribution through their respective state level federation. Such state level federation cans be motivated to procure and distribute consumables items and low level durablesitems to the member societies for selling to the rural consumers
Comparative analysis Rural: For rural India, HUL has established a single distribution channel b y c o n s o l i d a t i n g categories. In a significant move, with long-term benefits, HUL has mounted an initiative, Project Streamline, to further increase its rural reach with the help of rural sub-stock lists. As a result, the distribution network directly covers about 50,000 villages, reaching about 250 million consumers. Consolidation has to be done in the rural setup as the road and transport facilities are not very good hence one channel is used. Urban An IT-powered system has been implemented to supply stocks to redistribution stock lists o n a c o n t i n u o u s r e p l e n i s h m e n t b a s i s . T h e o b j e c t i v e i s t o c a t a l y z e H U L s g r o w t h b y ensuring that the right product is available at the right place in right quantities, in the most cost-
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Pune: Hindustan Unilever Ltd (HUL), the countrys largest household and personal care products maker by sales, is expanding its so-called go to market (GTM) initiative, launched in Mumbai last year, in an attempt to revamp its national distribution network and streamline its supply chain. The project has been a success in Mumbai, where it was started in June, and will be rolled out in 42 cities and towns across India by the end of 2009, Hemant Bakshi,
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HULs GTM initiative in Mumbai was aimed at rationalizing its distribution network, make it more efficient, deliver stocks to retailers faster and reduce inventory on their product shelves. It farmed out the task of stock deliveries to logistics provider Mahindra Logistics as part of the Mumbai project. In Mumbai, the company consolidated its 21 distributors into four mega distributors, who now account for sales of about Rs480 crore, another senior HUL executive said. Bakshi said dealership reduction has been an ongoing exercise, but declined to provide figures about the pilot project.
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Unilever has said it is looking at global savings of 1.5 billion (Rs9,855 crore) annually by 2010 through the restructuring operations. The HUL executive and the HUL business associate added that the company is restructuring other aspects of its operations as part of the GTM project and that it would cut back on losses and in-transit theft. The consolidation is aimed at giving the distributors, who typically operate on a 4% profit margin, a bigger share of the pie at a time when they are being wooed by other sectors. At least a couple of our distributors are now owners of close to Rs100 crore companies, up from the Rs8-10 crore business they had just under an year ago, the HUL executive said. Our distribution network is changing from being one driven by entrepreneurs to becoming large professional distribution houses with service orientation, Bakshi said.
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The consumer products business works on personal relationships and it helps for retailers to have an equation with the distributor, the HUL business associate said. With retailers now putting a range of global products in every segment on their shelves, HUL, a major player in the food, personal care and home segments, faces the threat of shrinking market share. A May report from the Federation of Indian Chambers of Commerce and industry, before the crash in financial markets and a global economic slowdown, projected Indias
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CHAPTER8: FINDINGS
The new Hindustan Lever see an exciting opportunity for growth. They have 35 powerful brands covering all segments, with leading market positions in most.
Today, these are stronger and more relevant to the consumer than ever. The people are energized by the scale of the opportunity and determined to seize it.
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The scale of the business and operations gives them the resources needed.
They are delivering good services and the changes they brought in the products are welltaken by the customers, by this they are generating sustainable profitable growth.
Hul believes proper channel of distribution gives an impact on the company. It affects its growth. If the channel is not properly managed then the company may face loss in profit.
Hul tries that to full fill the requirement of the people involves in distribution channel.
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CHAPTER9: CONCLUSION
HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio
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These products are manufactured over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's distribution network comprises about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers.
HUL distribution is a key strength for the company to supply their products to anywhere in the country. This includes, maintaining favourable trade relations, organizing providing demand innovative incentives to retailers and
Each business of HUL portfolio has customized the network to meet its objectives. The most obvious function of providing the logistics support is to get the companys product to the end customer. The HUL distribution network has seen a lot of evolvement over time. From Wholesalers placing order directly with the company, to Registered
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In recent years, the FMCG sector declined due to down trading. Also because of presence of large number of companies trying to seize this opportunity, this force the old HLL for the change and thus, their transformation has resulted in a new HLL, which has successfully faced this challenge and reversed this trend.
It has done so by substantially strengthening their brands and building capabilities. This has already begun to yield benefits and they are returning to growth. Volume growth is being followed by value growth, which in turn is bringing profit growth. India is one of the most exciting markets offering great potential.
Over the next 10 years, the per capita income in India is likely to double. In FMCG, there is an opportunity to catalyze penetration, increase usage, and upgrade consumers.
As a result, the FMCG market is expected to grow to over Rs. 100,000 crores from its current base of Rs. 40,000 crores. The new Hindustan Lever sees an exciting opportunity for growth. They have 35 powerful brands covering all
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The people are energized by the scale of the opportunity and determined to seize it. The scale of the business and operations gives them the resources needed. They are delivering good services and the changes they brought in the products are well taken by the customers, by this they are generating sustainable profitable growth.
www.WIkepedia.com
www.HUl.com
www.Fmcg.com
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en.wikipedia.org/wiki/ Hindustan_Unilever
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