HUL CASE STUDY

HUL CASE STUDY

GROUP 7VIVEK KAPOOR

SAMRATANKIT JAIN

SUDHANSHUALLEN SANGEET

NIRAJ SINGH

Contents

Introduction to the case Fabric Wash Sector Challenges Case Analysis

Distribution Network Current Strategy Sales Organizational Structure

Introduction to the case

The case focuses on the Indian fabric wash sector.

The case shows the growth potential and increasing market share of HUL

The case also focus on the strength of power brands of HUL in competition with P&G and Nirma.

It also focuses on the distribution network of HUL in urban and rural areas.

Products…..

Fabric Wash Sector

Fabric Wash Sector

Pre-Wash

Synthetic detergents

Laundry Soap

Post-wash

Fabric Whitener/Blue

Bleach

Starch

Challenges

Change in distribution Networks Issues regarding rural penetration Change in strategy

Case Analysis

Evolution of HUL’s distribution Network

The  first  phase  of  the  HUL  distribution  network  had  wholesalers  placing  bulk  orders  directly  with  the  company

The  focus  of  the  second  phase,  which  spanned  the  decades  of  the  40s,  was  to  provide  desired  products  and  quality  service  to  the  company's   customers

The  highlight  of  the  third  phase  was  the   concept  of  "Redistribution  Stockist"  (RS)  who  replaced  the  RWs

Distribution at Villages…

RURAL DISTRIBUTION MODEL

Distribution at Urban Centers…

Distribution  of  goods  from  the  manufacturing  site  to  C  &  F  agents  take  place  through   either  the  trucks  or  rail  roads  depending  on  the  time  factor  for  delivery  and  cost  of  transportation.

Generally  the  manufacturing  site  is  located  such  that  it  covers  a  bigger  geographical   segment  of  India.

 From  the  C  &  F  agents,  the  goods  are  transported  to  RS’s  by  means  of  trucks  and  the  products  finally  make  the  ‘last  mile’  based  on  the  local  popular  and  cheap  mode  of   transport.  

New Distribution Channels…

Project SHAKTI To distribute their products in remote rural areas. 30% of FMCG business comes from villages with a

population less than 2,000. The Shakti model trains women from SHGs to

distribute HLL products of daily consumption such as Detergents, Toilet soaps and Shampoos.

The vision is to reach over 100,000 villages, thereby touching about 100 million consumers. The SHGs have chosen to adopt distribution of HLL's products as a business venture.

Model

Project Streamline….

Initiatives Taken to Improve The Distribution Network

Setting  up  of  a  full‐scale  sales  organization  comprising  key  account  management  and  activation  to  impact,  fully  engage   and  service  modern  retailers  as  they  emerge.  

Servicing  Channel  partners  and  customers  with  continuous  daily  replenishment.   

Leveraging  scale  and  building  expertise  to  service  Modern  Trade  and  Rural  Markets.  

Delaying  of  sales  force  to  improve  response  times  and service  levels

Launching  the  Unicare  scheme  with  upmarket  pharmacies  and  retailers  to  sale  its  premium  brands.  

Launching  of  several  promotional  schemes  for  existing wholesalers  and  distributors.

Current Strategy

Brand liberating StrategyFocus on 30 power brands and 10

other regionally powerful brandsDirect Marketing Importance on project Shakti for rural

thrustExporting its product for growth

strategy

GM(Home care)

BM(Surf)

RM(West)

ASM (Urban)

TSM

ASM(Rural)

BM(Wheel)

GM (Personal care)

GM(F & B)

New Sales Organizational Structure

Thank-You