Hindustan Unilever

A study of Sales and Distribution

Presented by
Aathira G Krishna
D Nisha
Vision of HUL
 HUL - “Add vitality to life"
• Formerly Hindustan Lever Limited (renamed in
late June 2007)
• India's largest Fast Moving Consumer Goods
company
• Combined volumes of about 4 million tonnes and
sales of nearly Rs. 13718 crores.
• Golden Super Star Trading House - Govt of India.
• Over 15,000 employees, including over 1,300
managers
 Product mix

Home & Water

Foods
Personal Care Purifier
 Personal Lux , Lifebuoy, Dove
wash
Pears, Rexona, Breeze,
Laundry Surf Excel, Wheel, Rin

Skin care Fair & Lovely, Ponds, Vaseline

Hair care Sunsilk and All clear

Hindustan
unilever ltd
Oral care Pepsodent , Close up

Deodorant
AXE, Rexona
s
Color
Lakme
cosmetics

Ayurvedic Ayush
 Sales hierarchy
General Sales Manager (GSM)

Regional Sales Manager(RSM)

Area Sales Manager (ASM)

Sales Officer (SO)

Territory Sales In-charge (TSI)

 NETWORK
• 7,500 distributors serve
– 4,000 Redistribution stockists
• 35 C&FAs in the country
• 40 manufacturing plants - 2 million square
miles territory
• 6.3 million retail outlets
• About 250 million rural consumers
DISTRIBUTION NETWORK FOR GENERAL TRADE
FACTORY

CARRYING AND FORWARDING

AGENT

DISTRIBUTER

URBAN AREA RURAL AREA

REDISTRIBUTER STAR
REDISTRIBUTION
(RD) SELLER
STOCKIST(RS)
 REDISTRIBUTION
STOCKIST

FAMILY
WHOLESELLER RETAILING
GROCERIES

PURELY SEMIWHOLE
WHOLESALE SALE
DISTRIBUTION NETWORK OF MORDERN TRADE

FACTORY

C&F

CUSTOMER SERVICE
PROVIDER

BIG BOX RETAILER

CUSTOMER
 Sales Process

Secondary
Sale
• Factory • Distributors
•C&F • Customer
Agents
Primary Sale Tertiary Sale
 Operational aspects of Distributor
• Permanent journey plan
• Frequency of visit
• Beet
• Replenishment
– EOQ
– Permanent Dispatch Plan
– UNIFY
 PROJECT
SAKTHI

NEW
RS Net INNOVATIVE Project
Initiative DISTRIBUTION Streamline
CHANNEL

GO TO
MARKET
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 wherein the women from the rural
sector market HLL products, and hence, are
able to reach the same wavelength as of the
common man in village.
Project Streamline
• HUL initiated a Streamline initiative in 1997-
cater to the needs of the inaccessible market
• Focuses on extending distribution to villages
with less than 2000 people
RS INITIATIVE

• Launched in 2001
• Connecting Redistribution Stockists (RSs) through
an internet based system
• Account for about 80% of the company's
turnover
• RS Net is one of the largest B2B e‐commerce
initiatives ever undertaken in India.
• The IT‐powered system has been implemented to
supply stocks to redistribution stockists on a
continuous replenishment basis.
 Go to Market
• Kick started at Mumbai last June
• Uses concept of JIT
• 42 cities and towns across India by the end of
2009
• In hands with Mahindra Logistics

• Cost cutting and restructuring initiative

 Keys of Sales & Distribution
• 80: 20 principle
• Customers have the tendency to buy products
which occupy more shelf space and are placed
at “eye” level

THUMB RULE
For Population of 1 lakh
“250 to 300 outlets”
 Interesting facts about HUL
• Turnover – 13,OOO crores
• Investment - ???
-18%

• 2009 – 15,000 employees

• 2013 - ????
00!!!
 Conclusion
• HUL leads distribution foray in India
• Followed up more than 80% of the company
• Has wide distribution network
• HUL’s success = Its Distribution

Change is the only thing

that remains constant in
HUL distribution