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8 1
DISTRIBUTION NETWORK

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 GROUP MEMBERS
• DISHA RAWAT (13)
• KAVITA (18)
• MANISHA SHAH (19)
• SALMAN (21)
• RAKESH AGGARWAL (33)

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 Contents
Ø Vision of HUL
Ø History of HUL
Ø Product mix
Ø Network
Ø Rural distribution network
• Shakti project
• Project streamline
• Lifeboy swasthaya chetna
Ø Urban distribution network
• Lakme beauty salon
• HLN
• Ayush therapy
• Program vijeta
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VISION OF HUL

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Sunlight soap first imported in In

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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.
• Over 15,000 employees, including
over 1,300 managers
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 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
•

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 DISTRIBUTION NETWORK FOR GENERAL TRADE

FACTORY

CARRYING AND FORWARDING AGENT

DISTRIBUTER

URBAN AREA RURAL AREA

( RD ) STAR SELLER
REDISTRIBUTION STOCKIST ( RSREDISTRIBUTER
)

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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

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 PROJECT SHAKTI
• In 2001,with partnership of self help
group of rural women & covers 5000
villages in 52 districts in different
states.
•

• SHAKTI targets small villages with the

population of less then 2000.
•

• Providing health & hygiene education

through shaktivani program.
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•
 SHAKTI
Now SHAKTI has been extended
•

80,000 villages in 15 states with

45,000 women entrepreneurs &
generating Rs.700-1000 per month
to each women.

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 Lifebuoy swasthaya chetna
Ø Life boy swasthaya chetna (LBSC) is a rural
health& hygiene initiative which was
started in 2002.
Ø LBSC was initiative in media dark villages in
(UP, MP, Bihar, Orissa) with the objective
of spreading awareness about the washing
hands with the soup.
Ø Being India's leading personal wash health
brand Lifebuoy saw a role for itself in
propagating the massage of hygiene &
health in village
•

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 Lifebuoy swasthaya chetna
Ø LBSC is multi-phased activity which works
towards effecting behavior change
amongst the rural population it touches.
Ø It target children as they are the
harbingers of change in society and
mothers since they are the custodians of
health.
Ø The first interaction with students is then
replicated with the women and finally
the rest of the community.

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 Modern Channel
Architecture
Channels Prioritized in 2008-09
Self-service store where there is
Supermarkets room for shoppers to browse and
interact with the products.
Over the counter store mainly for
Family Grocer monthly household shopping.
A tiny over the counter store, easily
accessible for emergency
Kiosk purchases. It stocks solely low unit
packs

Wholesale Route to Market

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 Super Value Stores
• Growth of organized retailing in
India , in food and grocery
segment.
• Capture 2% of market share.
• Many stores in small and big cities
are being converted as SVSs of
HUL.
• Benefit to HUL is better display of its
product and exclusive promotional
offers for its customers.
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 Lakme Beauty Salons
• Professionals in salons are trained by
lakme academy.
• Offer regular and beauty care related
services.
• Selling lakme products.
• Salons are set up in 71 locations in
28 Indian cities .
•

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 Ayush therapy treatment
centers
• Launched in 2002
• Collaborated with Arya Vaidya
Pharmacy , leading name in
ayurveda to set up Ayush Therapy
Treatment Centers.
• These centers provide health advice
and therapy include stress relief ,
aches and pain relief ,hair and skin
care.
• Provide promotional schemes on
Women’s Day. group no. 8 23
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 Hindustan Lever Network
(HLN)
• Independent company owned
distribution channel.
• Started in 2003
• An individual can be a part of HLN in
two ways:
Ø As privileged consumers
Ø As HLN consultant
• Currently, HLN is operating in 15oo
towns with 3.5 lakh consultants.
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 Program Vijeta
• HUL launched this program in 2002
• Aimed at strong network of
wholesalers .
• Company tied up with Direm
Marketing Services Pvt. Ltd , India’s
leading marketing agency
• This program is used as a platform to
interact closely with its channel
partners and build long lasting
relationship.
• http://vijeta-hul.net/membership.php
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 Why all these program
Ø To make people aware.
Ø To increase consumption.
Ø To increase revenue.
Ø Improvement in livelihood and
standard of living of rural
communities.
Ø Corporate social responsibility.
•

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

T H U M B R U LE
For Population of 1 lakh
“250 to 300 outlets”

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 Initiatives in channel &
customer management
vNew sales organisation in place.
vGreater focus on activation of modern
retailers as they emerge.
vSegmented approach to general trade
and modern trade
• Improved customer service.
• Continuous replenishment operations.
• Lower trade stock
• Improved stock freshness
vInformation Technology for efficiency.
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• HUL had different distributors for its
home and personal care division and
food division in the same area. Now,
all the products would be sold by the
same distributor in any one area.
• Also, earlier, products from different
divisions used different distributors,
even in the same city. Now, products
across divisions will be fed to retailers
through unified distributors.
• HUL has also tied up with Manpower
Consultants to help distributors recruit
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 Conclusion
• HUL leads distribution foray in India
• Has wide distribution network
• HUL’s success = Its Distribution
•

th e o n ly th in g th a t re m a in s co n sta n t in H U L d istrib u

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Suggestions

EXPANSION

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Thank you

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