Strengths and weaknesses of HLLs Distribution Model Strengths 1. Removes heterogeneity of the Indian market 2.

Vast Coverage- HUL virtually covers every geographical segment of the country. 3. Deeply Penetrated-HULs distribution system has enabled to penetrate into rural areas and small towns. 4. Covers all income groups-With Around a million retail points, HUL is able to cater to every income group.

Weaknesses 1. Huge Cost- Setting up of extensive distribution system with 7500 distributors and about million retail points requires huge cost, thus resulting in a hit on their bottomlines. 2. Time Involved-Setting up of extensive distribution network with million retail points involves great amount of time. 3. Extensive Hiring- large number of distributors. 4. Centralization Vs Decentralization.

HLL DISTRIBUTION MODEL HUL caters to seven million distinct outlets across India (one for every 29 households) and 59% of these stores are in rural India. HUL directly services over one million stores and has network of over 7000 stockists and distributors. HUL's products are distributed through a network of 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. There are 35 C&FAs in the country who feed these redistribution stockists regularly. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever provides tailor made services to each of its channel partners. It has developed customer management and supply chain capabilities for partnering emerging selfservice stores and supermarkets. Around 2,000 suppliers and associates serve HULs 40 manufacturing plants which are decentralized across 2 million square miles of territory. DISTRIBUTION MODEL- P& G 1. Reducing the number of price points. 2. Focus on class A and B towns. 3. Less presence in rural areas.

4. REDUCING NUMBER OF PRODUCT VARIANTS. DISTRIBUTION MODEL-NESTLE 1. IDENTIFICATION OF SELECTIVE MARKETS 2. WEEDING OUT LOW PROFITABILITY PRODUCTS.