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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 Vision of HUL History of HUL Product mix Network Rural distribution network• Shakti project• Project streamline• Lifeboy swasthaya chetna 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 India in 1888.

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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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Product mix

Home & Personal Care Foods Water Purifier

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Hindustan unilever ltd

Personal wash

LaundrySurf Excel, Wheel, Rin

Skin careFair & Lovely, Ponds, Vaseline

Hair careSunsilk and All clear

Oral carePepsodent , Close up

DeodorantsAXE, Rexona

Color cosmeticsLakme

AyurvedicAyush

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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

REDISTRIBUTION

STOCKIST(RS)

REDISTRIBUTER(RD)

STAR SELLE

R

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NEW INNOVATIVE DISTRIBUTION CHANNEL

PROJECT SAKTHI Super

value stores

Lakme beauty salons

Ayush therapy treatme

nt centres

Lifebuoy swasthya

chetna

Program vijeta

Project streamli

ne

HLN

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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 Life boy swasthaya chetna (LBSC) is a rural health&

hygiene initiative which was started in 2002. 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.

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

LBSC is multi-phased activity which works towards effecting behavior change amongst the rural population it touches.

It target children as they are the harbingers of change in society and mothers since they are the custodians of health.

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

Self-service store where there is room for shoppers to browse and interact with the products.

Channels Prioritized in 2008-09

Supermarkets

Family GrocerOver the counter store mainly formonthly household shopping.

Kiosk

A tiny over the counter store, easilyaccessible for emergency purchases. It stocks solely low unit packs

Wholesale Route to Market20

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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.

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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:As privileged consumers 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.php26group no. 8

Why all these program

To make people aware.To increase consumption.To increase revenue.Improvement in livelihood and standard of

living of rural communities.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

THUMB RULEFor Population of 1 lakh

“250 to 300 outlets”

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Initiatives in channel & customer management

New sales organisation in place.Greater focus on activation of modern retailers as they

emerge.Segmented approach to general trade and modern

trade• Improved customer service.• Continuous replenishment operations.• Lower trade stock• Improved stock freshnessInformation 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 better sales staff

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Conclusion

• HUL leads distribution foray in India• Has wide distribution network• HUL’s success = Its Distribution

Change is the only thing that remains constant in

HUL distribution

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Suggestions

EXPANSION

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Thank you