LOGO

HLL: Reinventing Distribution

© 2010 IBS. All rights reserved.

INTRODUCTION
 HLL – India’s leading FMCG company.

 Products -- Home & personal care, soaps & detergents,

industrial & agricultural products, foods & beverages.

 Recognized by the Govt .of India- “golden super star

trading house”.

 Corporate objective – “to meet the everyday needs of

people everywhere.”

© 2006 name of company. All rights reserved.

 PRODUCT MIX

HLL

Color
Personal Hair Oral Deodora Ayurved
Laundry Skin care Cosmeti
wash Care Care nts ic
cs
 Modified Distribution
 In the 20th century , HLL followed a traditional distribution
system.

 In 1999, it took technology initiatives through RSNET.

 Sales division was able to view day to day operations of

the supply chain.
 Project Leap: aims to improve distributor responsiveness
and optimizing inventory levels.
 Aviance– a direct marketing channel.
 Responsible for selling personal care products through
beauticians.
Distribution Network of HLL
Factory
Factory

C
C&&F
F Agent
Agent

Distributor
Distributor

Urban Rural
Rural Areas
Areas
Urban Areas
Areas

Redistributor
Redistributor Redistributor
Redistributor Star
Star
Stockist(RS)
Stockist(RS) (RD)
(RD) Seller
Seller
 3-point strategy
• Connect- Supply Chain Management system connected t
he various distributors and stockists through an extranet.

• Attract- Attract customers by offering them various prod

ucts and facilities at the click of a mouse.

• Transact- Conducted actual business through its extensi

ve distribution set up.
Innovative Distribution
 Project “Sangam”
• A non-store home delivery retail business – was conceptualiz
ed (2001) and test marketed by HLL in Mumbai.
• “Sangam” operates a dedicated call centre with trained pers
onnel in Mumbai. The centre after procuring orders from cus
tomers passes them on for execution to a network of re-distri
bution agents.
• This model, which does not call for owning a physical wareh
ousing or selling facility, offers the twin benefits of convenie
nce and value to its customers. HLL, after understanding and
analyzing consumer response, wanted to take the idea across
the country.
 Project “Shakti”
• Rural India is spread across 627,000 villages and possesses a
serious distribution challenge for FMCG Cos.

• HLL has come up with a unique and successful initiative wh

erein the women from the rural sector market HLL products,
and hence, are able to reach the same wavelength as of the co
mmon man in village.

• Apart from product reach, the initiative also creates brand aw

areness among the rural people.
 Project “Streamline”
• HLL initiated a streamline initiative in 1997 to cater the n
eeds of the inaccessible market.

• Focuses on extending distribution to villages with less tha

n 2000 people.
 RS “Initiative”
• Launched in 2001.

• Connecting Redistribution Stockists (RSs) through an inte

rnet based system.

• Account for about 80% of the company’s turn over.

• RS Net is one of the largest B2B e‐commerce initiatives e

ver undertaken in India.

• The IT‐powered system has been implemented to supply s

tocks to redistribution stockists on a continuous
replenishment basis.
 Go to Market
• 74 cities and towns across India by the end of 2010.

• Tie up with Pepsi foods to jointly market beverages a

nd soft drinks through vending machines.

• Cost cutting and restructuring initiative.