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Presented by: Uday Jat , Abhinav Singla , Vishal Jagetia. Distribution Management of HUL. www.powerpointpresentationon.blogspot.com. Introduction. Hindustan Unilever Limited (‘HUL’), formerly Hindustan Lever Limited (it was renamed in late June 2007 as HUL)
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Presented by: UdayJat, AbhinavSingla, VishalJagetia Distribution Management of HUL www.powerpointpresentationon.blogspot.com
Introduction • Hindustan Unilever Limited (‘HUL’), formerly Hindustan Lever Limited (it was renamed in late June 2007 as HUL) • India's largest Fast Moving Consumer Goods company • HUL is also one of the country's largest exporters
Analysis of Distribution Management of HUL We have analyzed the distribution network of HUL from the following aspects: 1. Evolution of HUL’s distribution management 2. Distribution network & Channel design 3. Approaches to rural distribution
Evolution of HUL’s distribution management • The first phase of the HUL distribution management had wholesalers placing bulk orders directly with the company • The focus of the second phase, which spanned the decades of the 40s, was to provide desired products and quality service to the company‘s customers • The highlight of the third phase was the concept of "Redistribution Stockist" (RS) who replaced the RWs
HUL Carrying & Forwarding Agent Redistribution Stockiest Wholesaler Rural Retailers Urban Retailers Consumer
Channel Design Hindustan Lever Limited (HUL) has two types of channel selling: • Regular (traditional) retail channel • Direct Selling Channel in the name of Hindustan Lever Network(HLN)
Channel structure Redistribution stockists:- • Sales Margin: 4.76% which includes cash discount, unloading expenses from depot, distribution expenses to retailers, incentive schemes & other incidental expenses. • Modes of transport used: Rickshaw, tempo. • Incentive schemes • Software systems and Information System: UNIFY 8.3 (Developed by IBM & CMC). This software needs to be synchronized daily and the system updates any information/ incentive schemes / sales figures etc to and from the common shared platform. • Areas of Operations • Selling Operations: sells the goods to ‐ o Wholesaler o Retailers
Wholesaler: • Gets cash discounts and other schemes promoted by HUL (gets points under Vijeta Scheme). Retailers: • Sales Margin: Depends on the product • Soap, detergents ‐ 8% on MRP • Cosmetics ‐ 10% on MRP • Food items ‐ 8% on MRP Incentive schemes: • Company programs (Scheme Discounts + Cash Discounts) • TPR schemes based on Sales (1 % to 4 %) • Vijeta scheme is not for retailers.
Approaches to Rural Distribution Accessibility Indirect coverage Direct coverage Streamline Turnover per market / Business potential
Project Shakti C & F A MACTS 1 MACTS 3 MACTS 2 SHG 5 SHG …. SHG 4 SHG 1 SHG 3 SHG 6 SHG 2 CONSUMERS