(HUL

)
Submitted by : Kavita Dua (924) Priyanka Singhal (943)

Introduction
    

Earlier known as Hindustan Lever Limited Was formed in 1933 as Lever Brothers India Limited. Headquartered in Mumbai, HUL is the market leader in Indian products such as tea, soaps, detergents etc. The company’s statement of corporate purpose is to “meet the everyday needs of people, everywhere.”

Introduction (cont’d)
Some of its brands include  Kwality Wall's ice cream,  Lifeboy,  Lux,  Breeze,  Liril,  Hamam,  Pureit Water Purifier,  Lipton tea,  Brooke Bond tea,  Bru Coffee,  Pepsodent and toothpaste and brushes and many more.

Introduction (cont’d)
 The

company was renamed in late June 2007 to "Hindustan Unilever Limited“, to provide the optimum balance between maintaining heritage of the company and future benefits. holds 100 factories across India for manufacturing its diverse product range.

 HUL

Distribution System – Meaning

 Distribution

system’s focus to enable easy access to their brands, touch consumers with a three-way convergence - of product availability, brand communication, and higher levels of brand experience.

What Distribution system should do?

The most obvious function of providing the logistics support to get the company’s product to the end customer. Another established role is that of financing. The channel partners are expected to extend credit to the next level of customers. Some channel members however also receive credit and the net credit extended is minimal.

What Distribution system should do?
The most neglected role of the channel is information flow – 1. outward flow - about the company offerings 2. inward flow about customer’s needs. However most channel members are reluctant to part with information on customers fearing disintermediation. Thereby a very vital input to a company’s responsiveness is lost.  Value added services that supplemented the company’s effort – such as local sales,repairs, promotion, repacking, minor customisation, etc.

Distribution System of HUL
 HUL's

products, are distributed through a network of about 7,000 redistribution stockists covering about one million retail outlets.  The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores.  Hindustan Unilever provide tailor made services to each of its channel partners.

Distribution System of HUL (Cont’d)

HUL is using the point of purchase method for much higher level of direct contact, through instore facilitators, sampling, education and experience. It has developed customer management and supply chain capabilities for partnering emerging self-service stores and supermarkets. 2,000 suppliers and 7,500 distributors serve HLL’s 100 factories which are decentralized across 2 million square miles of territory

Distribution at the Villages

  

The company has brought all markets with populations of below 50,000 under one rural sales organisation. The team comprises an exclusive sales force and exclusive redistribution stockists. The team focuses on building superior availability of products. In rural India, the network directly covers about 50,000 villages, reaching 250 million consumers, through 6000 sub-stockists.

Distribution at the Supermarkets
 HUL

has set up a full-scale sales organisation, for this channel to serve modern retailing outlets. tests and in-store sampling is provided to consumers.

 Product

Harnessing Information Technology
 

An IT-powered system has been implemented to supply stocks to redistribution stockists. The objective is to make the product available at the right place and right time in the most cost effective manner. For this, stockists have been connected through an Internet-based network, called RS Net, for online interaction. RS Net is part of Project Leap, HUL's end-to-end supply chain.

Pioneering new channels
Hindustan Unilever is simultaneously creating new channels, designed on the same principle of holistic contact with consumers. 1) Project Shakti :HUL's partnership with Self Help Groups of rural women. Started in 2001, Project Shakti has already been extended to about 50,000 villages in 12 states - Andhra Pradesh, Karnataka, Gujarat and others.

Cont’d
2) Hindustan Unilever Network (HUN): it is the company's arm in the Direct Selling channel. It presents a range of customised offerings in Home & Personal Care and Foods. 3) Out-of-Home : this deals in providing vending machines for hot beverages like tea and coffee. HUL’s alliance with Pepsi Co. has significantly strengthened the channel.

Cont’d
4) Health and Beauty services : Lakme Salons provide specialised beauty services and solutions, under the recognised authority of the Lakme brand. The Ayush Therapy Centres provide easy access to authentic Ayurvedic treatments and products.

Conclusion
Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience.

Thank You

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