HLL: Reinventing Distribution

© 2010 IBS. All rights reserved.

LOGO

© 2006 name of company. All rights reserved.

INTRODUCTION

HLL – India’s leading FMCG company.

Products -- Home & personal care, soaps & detergents,

industrial & agricultural products, foods & beverages.

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

house”.

Corporate objective – “to meet the everyday needs of people

everywhere.”

PRODUCT MIX

HLL

Personal wash

Lux, Lifebuoy, Dove, Pears,

Rexona,Breeze

LaundrySurf Excel, Wheel, Rin

Skin careFair & Lovely,

Ponds, Vaseline

Hair CareSunsilk & All

Clear

Oral CarePepsodent, Close Up

Deodorants Axe, Rexona

Color Cosmetics

Lakme

Ayurvedic Ayush

In the 20th century , HLL followed a traditional distribution

system.

In 1999, it took technology initiatives through RSNET.

Sales division was able to view day to day operations of

the supply chain.

Project Leap: aims to improve distributor responsiveness

and optimizing inventory levels.

Aviance– a direct marketing channel.

Responsible for selling personal care products through

beauticians.

Modified Distribution

Distribution Network of HLL

Factory

C & F Agent

Distributor

Urban Areas Rural Areas

Redistributor

Stockist(RS)

Redistributor

(RD)

Star

Seller

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.

Innovative Distribution

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.

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.

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.

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 continuous

replenishment basis.

Go to Market

• 74 cities 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.