HUL DLM

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GROUP – 7 UTKARSH SAHU C-52 BHUPESH MAHARA C- DEEPAK KUMAR C-26 ROHIT MISHRA C-14 NIPUPAM NISHANT C-20 AMBUJ PANDEY C-17

PROFILE:

PROFILE Type Description Industry Fast moving consumer goods , public sector Founded 1933 Head quarters Mumbai, India Key people Harish manwani(CHAIRMAN) , Nithin paranjpe(CEO managing director) Products Home and personal care, foods and water purifier Revenue Rs 20,869.57crs Employees Over 65,000 direct and indirect employees Parent Unilever

BRANDS:

BRANDS FOOD BRANDS HOME CARE BRANDS PERSONAL CARE BRANDS WATER

FOOD BRANDS:

FOOD BRANDS

HOME CARE BRAND:

HOME CARE BRAND

PERSONAL CARE BRAND :

PERSONAL CARE BRAND

DISTRIBUTION SYSTEM- MEANING:

DISTRIBUTION SYSTEM- MEANING Distribution system focus to enable easy access to their brands, touch consumers with three way convergence of - Product availability Brand communication Provide different level of brand experience.

WHAT DISTRIBUTION SYSTEM SHOULD DO?:

WHAT DISTRIBUTION SYSTEM SHOULD DO? The most important function of distribution system is to provide logistic support to get the company’s product to end customer. Another established role is that of financing. The channel partners are expected to extend credit to next level customers. Some channel members however also receive credit and the net credit is extended minimal.

DISTRIBUTION CHANNEL:

DISTRIBUTION CHANNEL

Contd-:

Contd- HUL have 2,000 suppliers, 7000 redistribution stockiest covering about one million retail outlets. HUL is using point of purchase method for much higher level of direct contact through install facilitators, sampling , education and experience. It has developed customer relationship management and supply chain capabilities for partnering emerging self-service stores and super markets.

DISTRIBUTION AT VILLAGES:

DISTRIBUTION AT VILLAGES The company has brought markets with populations of 50,000 under one rural sales organization. The team comprises of exclusive sales forces and exclusive redistribution and stockiest. The team focuses on availability of products. In rural India, the HUL network covers about 50,000 villages, reaching 250 million consumers, through 600 sub-stockists.

DISTRIBUTION AT SUPERMARKETS:

DISTRIBUTION AT SUPERMARKETS HUL has a set-up of full scales sales organization for this channel to serve modern retailing supermarkets. Products tests and in-store sampling is provided to consumers.

PIONERING NEW CHANNEL:

PIONERING NEW CHANNEL Project shakti- HUL’S partnerships with self help group of rural women. Started in 2001, Project shakti has already been extended to about 50,000 villages in 12 states like Andhra pradesh, Karnataka, M.P, Haryana, Maharashtra and Gujarat. Hindustan Unilever Network- It is the company’s arm in direct selling channel. It presents a range of customized offerings in Home and personal care foods.

Contd-:

Contd- Out of home- this deals in providing vending machines for hot beverages like tea and coffee. HUL alliance with pepsico has significantly strengthened the channel. Health and beauty services- Lakme salons provide specialized beauty services and solutions, under recognized authority of the lakme brand. Ayush therapy Centers - It provide easy access to authentic SPA & ayurvedic treatments and products

DISTRIBUTION NETWORK:

DISTRIBUTION NETWORK

DISTRIBUTION NETWORK:

DISTRIBUTION NETWORK The distribution network of HUL is one of the key strengths that help it to supply most products to almost any place in the country from Srinagar to Kanyakumari .

CHANNEL DESIGN:

CHANNEL DESIGN Hindustan lever limited has two types of channel selling- Regular retail channel Direct selling channel in the name of Hindustan lever limited. HUL has a well entrenched high distribution model which comprises of C&FAs, Redistribution Stockiest, wholesalers and retailers (as shown earlier). Hindustan Unilever's distribution network is recognized as one of its key strengths. Its focuses on Product availability, Brand communication, and higher levels of brand experience.

CHANNEL STRUCTURE:

CHANNEL STRUCTURE Typically, the goods produced in each of the HUL's 40 factories are sent to a depot with the help of a carrying and forwarding agent (C&FA). The company has its depot in every state of the country. The C&FA is a third party and gets servicing fee for stock and delivery of the products. The HUL management realized certain problems with the existing sales model. First, the model was not viable for small towns with small population and small business

FIELD SALES FORCE:

FIELD SALES FORCE The important activities that HUL field sales force does are Target chasing Reporting on a daily basis.

Contd-:

Contd- HUL has limited the network channel selling to categories of Home & Personal Care (HPC) and Food products with exclusive brands for this channel. That is, these particular brands (products) are all exclusive to HLN, specifically developed for the Direct Selling channel, and not available in the retail channel. The general trade comprises grocery stores, chemists, wholesaler, kiosks and general stores. Hindustan Unilever services each with a tailor‐made mix of services.

RECRUITMENT AND SELECTION:

RECRUITMENT AND SELECTION Following steps were followed in HUL recruitment process- They first invite applications from different channel members. They invite the application through- Internet Personal contact

Contd-:

Contd- After invitation they calculate their cost. How much cost they incur in the whole recruitment process. They consult their finance department for the approval of final budget for the whole process. They then do the little survey on the what type of channel members they require what is their reach for the product?

Contd-:

Contd- After the survey they give all their guidelines to channel members what function they have to perform? Then the final selection of the channel member is done. After final selection if require channel members are send for final training.

MOTIVATION:

MOTIVATION Motivation of channel member is require to realize channel member potential. HUL uses the following tools to motivate their channel members- Incentives Special discount schemes Heavy seasonal discounts Reduction of overall risk.

CHANNEL CONFLICT IN HUL:

CHANNEL CONFLICT IN HUL HUL is facing a conflict in their distribution system – Conflict was for the product distribution by the distributers. The distributors were not happy with the distribution strategy of HUL. For resolving this conflict HUL decide -: Earlier, 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.

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