(HUL)

Submitted by :
Kavita Dua (924)
Priyanka Singhal (943)
 Introduction
 Earlier known as Hindustan Lever Limited
 Was formed in 1933 as Lever Brothers India
Limited.
 Headquartered in Mumbai,
 HUL is the market leader in Indian products such
as tea, soaps, detergents etc.
 The company’s statement of corporate purpose is
to “meet the everyday needs of people,
everywhere.”
Introduction (cont’d)
Some of its brands include
 Kwality Wall's ice cream,
 Lifeboy,
 Lux,
 Breeze,
 Liril,
 Hamam,
 Pureit Water Purifier,
 Lipton tea,
 Brooke Bond tea,
 Bru Coffee,
 Pepsodent and toothpaste and brushes and many more.
Introduction (cont’d)
 The company was renamed in late June
2007 to "Hindustan Unilever Limited“, to
provide the optimum balance between
maintaining heritage of the company and
future benefits.

 HULholds 100 factories across India for

manufacturing its diverse product range.
Distribution System – Meaning

 Distribution system’s focus to enable easy

access to their brands, touch consumers
with a three-way convergence - of product
availability, brand communication, and
higher levels of brand experience.
What Distribution system
should do?
 The most obvious function of providing the
logistics support to get the company’s product to
the end customer.
 Another established role is that of financing. The
channel partners are expected to extend credit to
the next level of customers. Some channel
members however also receive credit and the net
credit extended is minimal.
What Distribution system
should do?
 The most neglected role of the channel is information
flow –
1. outward flow - about the company offerings
2. inward flow about customer’s needs.
However most channel members are reluctant to part with
information on customers fearing disintermediation.
Thereby a very vital input to a company’s responsiveness
is lost.
 Value added services that supplemented the company’s
effort – such as local sales,repairs, promotion, repacking,
minor customisation, etc.
Distribution System 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.
Distribution System of
HUL (Cont’d)
 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
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.
Distribution at the Supermarkets

 HUL has set up a full-scale sales

organisation, for this channel to serve
modern retailing outlets.

 Producttests and in-store sampling is

provided to consumers.
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.
Pioneering new channels
Hindustan Unilever is simultaneously creating
new channels, designed on the same principle of
holistic contact with consumers.

1) 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.
Cont’d
2) 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.

3) 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.
Cont’d

4) 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.
 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.
Thank You