Distribution Management of HUL

1. DISTRIBUTION MANAGEMENT OF
HUL
Krunal Gandhi
Ajay Singh
Jodha

3. Distribution Management 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.

4. Distribution Management of HUL
 HUL is using the point of purchase method for much
higher level of direct contact, through in-store
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.

5. Distribution Management AT
THE URBAN CENTERS
 Distribution of goods from the manufacturing site to C & F
agents take place through
either the trucks or rail roads depending on the time factor
for delivery and cost of transportation.
 Generally the manufacturing site is located such that it co
vers a bigger geographical segment of India.
 From the C & F agents, the goods are transported to RS’s
by means of trucks and the products finally make the ‘las
t mile’ based on the local popular and cheap mode of
transport.

6. 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.

7. RURAL DISTRIBUTION MODEL

8. E- Shakti (HUL)
Enhancing livelihoods.
75000 poor women have
benefited with an
additional income of
Rs.18.75 Crore through
a livelihood
enhancement
programme established
by a unique corporate-
NGO partnership

9. Distribution at the Supermarkets
HUL has set up a full-scale sales organisation, for this
channel to serve modern retailing outlets.
Product tests and in-store sampling is provided to
consumers.

10. 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.

11. Pioneering New Channels
Hindustan Unilever is simultaneously creating new channels,
designed on the same principle of holistic contact with
consumers.
 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.
 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.

12. Pioneering New Channels
 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.
 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.

13. EXAMPLE
 January 2011 rejigging rural distribution network
 What is the change?
 Removal of Star Seller
 Reduced margins of the distributors
 How?
 RDs will start from base town.
 Appoint wholeseller
 Star seller for long distance

14. 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.