HLL: Reinventing Distribution

1. LOGO HLL: Reinventing Distribution © 2010 IBS. All rights reserved.

3. Products -- Home & personal care, soaps & detergents, industrial & agricultural products, foods & beverages.

4. Recognized by the Govt .of India- “golden super star trading house”.

5. Corporate objective – “to meet the everyday needs of people everywhere.”© 2006 name of company. All rights reserved.

6. PRODUCT MIX

8. In 1999, it took technology initiatives through RSNET.

9. Sales division was able to view day to day operations of the supply chain.

10. Project Leap: aims to improve distributor responsiveness and optimizing inventory levels.

11. Aviance– a direct marketing channel.

13. 3-point strategy Connect- Supply Chain Management system connected the various distributors and stockists through an extranet. Attract- Attract customers by offering them various products and facilities at the click of a mouse. Transact- Conducted actual business through its extensive distribution set up.

14. Innovative Distribution

15. Project “Sangam” A non-store home delivery retail business – was conceptualized (2001) and test marketed by HLL in Mumbai. “Sangam” operates a dedicated call centre with trained personnel in Mumbai. The centre after procuring orders from customers passes them on for execution to a network of re-distribution agents. This model, which does not call for owning a physical warehousing or selling facility, offers the twin benefits of convenience and value to its customers. HLL, after understanding and analyzing consumer response, wanted to take the idea across the country.

16. 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. Apart from product reach, the initiative also creates brand awareness among the rural people.

18. Project “Streamline” HLL initiated a streamline initiative in 1997 to cater the needs of the inaccessible market. Focuses on extending distribution to villages with less than 2000 people.

19. RS “Initiative” Launched in 2001. Connecting Redistribution Stockists (RSs) through an internet based system. Account for about 80% of the company’s turn over. 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 continuousreplenishment basis.

20. Go to Market 74cities and towns across India by the end of 2010. Tie up with Pepsi foods to jointly market beverages and soft drinks through vending machines. Cost cutting and restructuring initiative.

21. THANK YOU