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HUL Presentation

HUL Presentation

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Published by Manish Kumar Pathak

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Published by: Manish Kumar Pathak on Jul 30, 2010
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Concept Paper

FMCG Company Hindustan Unilever

Mission Statement: Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good, and get more out of life. The company·s statement of corporate purpose is to ´meet the everyday needs of people, everywhere.µ

Hamam.000 crores. . brand communication.13. look good and get more out of life. wholesale. Some Of Its Brands Include: Kwality Wall's ice cream. Distribution System Of HUL: Hindustan Unilever's distribution network is recognized as one of its key strengths. Pepsodent and toothpaste and brushes and many more. Lux. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs. Pureit Water Purifier. Its focus is not only to enable easy access to our brands. Breeze. as much as is possible through instore facilitators. and personal care with brands that help people feel good. Bru Coffee. and higher levels of brand experience. Hindustan Unilever services each with a tailor-made mix of services. The mission that inspires HUL's 36. kiosks and general stores. HUL's brands are spread across a wide array of distinct consumer categories that touch the lives of more than half of Indians. The emphasis is equally on using stores for direct contact with consumers.About: Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company. with leadership in Home & Personal Care Products and Foods & Beverages. Liril. Brooke Bond tea. The general trade comprises grocery stores. Dove.of product availability. it has been recognized as a Golden Super Star Trading House by the Government of India. Lifebuoy. HUL is also one of the country's largest exporters. Lipton tea. Hindustan Unilever provides tailor made services to each of its channel partners. hygiene. " HUL meets everyday needs for nutrition.350 managers is to "add vitality to life.000 employees. but also to touch consumers with a three-way convergence . including over 1. chemists.

o HUL has set up a full-scale sales organization. sampling. .000 suppliers and 10000 + distributors serve 100 factories which are decentralized across 2 million square miles of territory. through product tests and in-store sampling. O It has developed customer management and supply chain capabilities for partnering emerging self-service stores and supermarkets. through in-store facilitators. O 2. Distribution At The SuperMarkets: At the supermarkets: Self-service stores and supermarkets are fast emerging in metros and large towns. To service modern retailing outlets in the metros.O HUL is using the point of purchase method for much higher level of direct contact. exclusively for this channel. o Product tests and in-store sampling is provided to consumers. innovative marketing initiatives are taken to provide consumers with experience of our brands at the store itself. HUL has set up a full-scale sales organization. education and experience. for this channel to serve modern retailing outlets. At the same time.

To service this segment.the accessibility and viability.The most common form of trading remains the grassroots buy-and-sell mode. This enables HUL to influence the retailers stocks and quantities sold through credit extension and trade discounts.Distribution in Villages: HUL approached the rural market with two criteria . scooters or the age-old bullock cart. O HUL's distribution network in rural India already directly covers about 50. . HUL has also revamped its sales organization to fully meet the emerging needs and increased purchasing power of the rural population. HUL's vision is to take this programme to 100. The company simultaneously uses the wholesale channel suitably incentivizing them to distribute company products. HUL assigned a sub stockist who was responsible to access all the villages at least once in a fortnight and send stocks to those markets. Shakti. thereby improving their livelihood and the standard of living in rural communities.000 under one rural sales organization. like cycles. The team comprises an exclusive sales force and exclusive redistribution stockists. The company has brought all markets with populations of below 50. HUL is creating micro-enterprise opportunities for rural women. This sub-stockists distribute the company's products to outlets in adjacent smaller villages using transportation suitable to interconnecting roads. O The company has brought all markets with populations of below 50. reaching about 250 million consumers.000 villages in 12 states. Hindu stan Unilever is trying to circumvent the barrier of motorable roads. and creating access to relevant information through the iShakti community portal. Thus. HUL appointed redistribution stockists who were responsible for all outlets and all business within a Particular town. through about 6000 sub-stockists. O The team comprises an exclusive sales force and exclusive redistribution stockists.000 villages impacting the lives of over a 100 million rural Indians. O The team focuses on building superior availability of products. Through Shakti. Over the last three years the company has embarked on an ambitious programme.000 under one rural sales organization. under the charge of dedicated managers.000 villages. In the villages. In the 25% of the accessible markets with low business potential. Shakti also includes health and hygiene education through the Shakti Vani Programme. The programme now covers about 50.

O Hindustan Unilever network (HUN): it is the company's arm in the direct selling channel. Gujarat and others. for online interaction. under the recognised authority of the Lakme brand. O Out-of-home : this deals in providing vending machines for hot beverages like tea and coffee.75 crore through a livelihood enhancement programme established by a unique corporate-NGO partnership Harnessing Information Technology: An IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. o RS Net is part of Project Leap. called RS Net.o Enhancing livelihoods o 75000 poor women have benefited with an additional income of Rs. The Ayush therapy centres provide easy access to authentic ayurvedic treatments and products. RS Net is part of Project Leap. HUL's end-to-end supply chain. For this. project Shakti has already been extended to about 50. all company sites and stretching right upto stockists. RS Net covers about 80% of the company's turnover. stockists have been connected through an Internet-based network. Karnataka. o An IT-powered system has been implemented to supply stocks to redistribution stockists.000 villages in 12 states .18. stockists have been connected with the company through an Internet-based network. The objective is to make the product available at the right place and right time in the most cost effective manner. HUL·s alliance with Pepsi co. It presents a range of customised offerings in home & personal care and foods. For this.Andhra Pradesh. Has significantly strengthened the channel. HUL's end-to-end supply chain. Started in 2001. O Health and beauty services : Lakme salons provide specialised beauty services and solutions. . for online interaction on orders. designed on the same principle of holistic contact with consumers. o Leverage Technology to establish complete connectivity o Harness knowledge across the chain o New channels for improved reach o Improve speed to marked through decentralized supply chain process Pioneering New Channels: Hindustan Unilever is simultaneously creating new channels. which also includes a back-end system connecting suppliers. called RSNet. O Project Shakti : HUL's partnership with self help groups of rural women.

Conclusion: In the end it could be said that HUL's SCM is one of the best in the world and it is quite difficult for any company to challenge it. In India if we see. In the process it is converging product availability. which once pioneered distribution in India. with brand communication and brand experience. is today reinventing distribution . Unilever has been able to: o Improve operational efficiency o Ensure the continuity of supply chain and manufacturing processes o Reduce operating costs Hindustan Unilever. By optimizing its database performance and utilization. . we will find that LUX is available everywhere and it is through this SCM only that HUL is able to do that.creating new channels. and redefining the way current channels are serviced.

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