Channel Structure (Special Focus is on Indore Rural Area)

Typically, the goods produced in each of the HULs 40 factories aresent to a depot with the help of a carrying and forwarding agent(C&FA). The company has its depot in every state of the country.The C&FA is a third party and gets servicing fee for stock and delivery of the products. In each town, there is at least are distribution stockist (RS) who takes the goods from the C&FA and sells them to retail outlets. Redistribution Stockists: Total number of RS in Indore = 2

distribution expenses to retailers, incentive schemes & other incidental expenses. f transport used: Rickshaw, tempo. monetary incentive for RS. o Wholesaler (gets 1.5 % max. discount from RS) o Retailers (gets 1.0% max. discount from RS) Wholesaler: Gets cash discounts and other schemes promoted by HUL (getspoints under Vijeta Scheme) Retailers:

o Soap, detergents-8% on MRP o Cosmetics-10% on MRP o 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.

Field Sales Force

To meet the everchanging needs of the consumer, HUL has set up a distribution network that ensures availability of all their products, inall outlets, at all times. This includes, maintaining favourable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things.

The important activities that HUL field sales force does are (i) target chasing and (ii) reporting on a daily basis. Account information is maintained on palmtops given by HUL.