Study Bay Coursework Assignment Writing Help<\/p>\n
Hindustan Unilever Limited\u00a0is Indias largest\u00a0consumer goods\u00a0company based in\u00a0Mumbai, Maharashtra. It is owned by the British-Dutch company\u00a0Unilever\u00a0which controls 52 majority stake in HUL. Its products include foods, beverages,\u00a0cleaning agents\u00a0and\u00a0personal care products.<\/p>\n
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of\u00a0Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in\u00a0Mumbai,\u00a0India\u00a0and has an employee strength of over 16,500 employees\u00a0and contributes to indirect employment of over 65,000 people.\u00a0The company was renamed in June 2007 as \u201cHindustan Unilever Limited\u201d.<\/p>\n
Lever Brothers started its actual operations in India in the summer of 1888, when crates full of Sunlight soap bars, embossed with the words \u201cMade in England by Lever Brothers\u201d were shipped to the Kolkata harbour and it began an era of marketing branded Fast Moving Consumer Goods (FMCG).<\/p>\n
Hindustan Unilever\u2019s distribution covers over 2 million retail outlets across India directly and its products are available in over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.<\/p>\n
We\u00a0have\u00a0analyzed\u00a0the\u00a0distribution\u00a0network\u00a0of\u00a0HUL\u00a0from\u00a0the\u00a0following\u00a0aspects:<\/p>\n
Evolution\u00a0of\u00a0HUL\u2019s\u00a0distribution\u00a0network<\/p>\n
Channel\u00a0Structure<\/p>\n
Initiatives\u00a0taken\u00a0for\u00a0channel\u00a0member\u00a0management.<\/p>\n
Field\u00a0force\u00a0management<\/p>\n
Analytical\u00a0Framework<\/p>\n
HUL\u2019s\u00a0distribution\u00a0network\u00a0has\u00a0evolved\u00a0with\u00a0time.\u00a0The\u00a0first\u00a0phase\u00a0of\u00a0the\u00a0HUL\u00a0distributionnetwork\u00a0had\u00a0wholesalers\u00a0placing\u00a0bulk\u00a0orders\u00a0directly\u00a0with\u00a0the\u00a0company.\u00a0Large\u00a0retailers\u00a0also\u00a0placeddirect\u00a0orders,\u00a0which\u00a0comprised\u00a0almost\u00a030\u00a0per\u00a0cent\u00a0of\u00a0the\u00a0total\u00a0orders\u00a0collected.\u00a0<\/p>\n
The\u00a0companysaleman\u00a0grouped\u00a0all\u00a0these\u00a0orders\u00a0and\u00a0placed\u00a0an\u00a0indent\u00a0with\u00a0the\u00a0Head\u00a0Office.\u00a0Goods\u00a0were\u00a0sent\u00a0tothese\u00a0markets,\u00a0with\u00a0the\u00a0company\u00a0salesman\u00a0as\u00a0the\u00a0consignee.\u00a0The\u00a0salesman\u00a0then\u00a0collected\u00a0and distributed\u00a0the\u00a0products\u00a0to\u00a0the\u00a0respective\u00a0wholesalers,\u00a0against\u00a0cash\u00a0payment,\u00a0and\u00a0the\u00a0money\u00a0was remitted\u00a0to\u00a0the\u00a0company. The focus of the second phase, which spanned the decades of the 40s,\u00a0was\u00a0to\u00a0provide\u00a0desired\u00a0products\u00a0and quality service to\u00a0the\u00a0company\u2019s\u00a0customers.\u00a0In\u00a0order to\u00a0achieve\u00a0this,\u00a0one\u00a0wholesaler in\u00a0each\u00a0market\u00a0was\u00a0appointed\u00a0as\u00a0a\u00a0\u201cRegistered Wholesaler,\u201d a\u00a0stock point\u00a0for\u00a0the\u00a0company\u2019s products\u00a0in\u00a0that market.\u00a0The company\u00a0salesman still covered the market, canvassing for orders from the rest\u00a0of the trade.\u00a0He then distributed stocks\u00a0from\u00a0the Registered Wholesaler\u00a0through distribution units maintained\u00a0by the\u00a0company.\u00a0The\u00a0Registered\u00a0Wholesalersystem,\u00a0therefore,\u00a0increased\u00a0the\u00a0distribution\u00a0reach\u00a0of\u00a0the\u00a0company\u00a0to\u00a0a\u00a0larger\u00a0number\u00a0of\u00a0customers.<\/p>\n
The highlight of the third phase was the concept of \u201cRedistribution Stockist\u201d (RS) who replaced\u00a0the\u00a0RWs.\u00a0The RS\u00a0was required\u00a0to provide the\u00a0distribution units to the company salesman.\u00a0The second\u00a0characteristic\u00a0of this period\u00a0was\u00a0the\u00a0establishment\u00a0of the\u00a0\u201cCompany\u00a0Depots\u201dsystem.\u00a0This\u00a0system\u00a0helped\u00a0in\u00a0transshipment,\u00a0bulk\u00a0breaking,\u00a0and\u00a0as\u00a0a\u00a0stockpoint\u00a0to\u00a0minimise\u00a0stockouts\u00a0at\u00a0the\u00a0RS\u00a0level.\u00a0In\u00a0the\u00a0recent\u00a0past,\u00a0a\u00a0significant\u00a0change\u00a0has\u00a0been\u00a0the\u00a0replacement\u00a0of\u00a0the Company\u00a0Depot\u00a0by\u00a0a\u00a0system\u00a0of\u00a0third\u00a0party Carrying\u00a0and\u00a0Forwarding Agents\u00a0(C&FAs).\u00a0The C&Fas act\u00a0as\u00a0buffer stock-points to ensure\u00a0that\u00a0stock \u2013 outs\u00a0did\u00a0not take\u00a0place.\u00a0The\u00a0C&FA system\u00a0has also resulted\u00a0in\u00a0cost\u00a0savings\u00a0in\u00a0terms\u00a0of direct transportation\u00a0and\u00a0reduced time lag\u00a0in\u00a0delivery.\u00a0The\u00a0most important benefit\u00a0has\u00a0been\u00a0improved\u00a0customer\u00a0service\u00a0to\u00a0the\u00a0RS.\u00a0The\u00a0role performed\u00a0by\u00a0the Redistribution Stockists includes:\u00a0Financing stocks, providing warehousing facilities, providing manpower,\u00a0providing service to retailers,\u00a0implementing promotional\u00a0activities,extending\u00a0indirect\u00a0coverage,\u00a0reporting\u00a0sales\u00a0and\u00a0stock\u00a0data,\u00a0demand\u00a0simulation\u00a0and\u00a0screening\u00a0for transit\u00a0damages<\/p>\n
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. This includes, maintaining favorable trade relations, providing innovative incentives to retailers and organizing demand generation activities among a host of other things. Each business of HUL portfolio has customized the network to meet its objectives. The most obvious function of providing the logistics support is\u00a0to\u00a0get\u00a0the\u00a0company\u2019s\u00a0product\u00a0to\u00a0the\u00a0end\u00a0customer.<\/p>\n
HUL\u2019s products, are distributed through a network of 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. There are 35 C&FAs in the country who feed these redistribution stockists regularly. The general trade comprises grocery stores, chemists, wholesale, kiosks and general stores. Hindustan Unilever provides tailor made services to each of its channel partners. It has developed customer management and supply chain capabilities for partnering\u00a0emerging\u00a0self-service\u00a0stores\u00a0and\u00a0supermarkets.\u00a0Around\u00a02,000\u00a0suppliers\u00a0and\u00a0associates\u00a0serve\u00a0HUL\u2019s\u00a040\u00a0manufacturing\u00a0plants\u00a0which\u00a0are\u00a0decentralized\u00a0across\u00a02\u00a0million\u00a0square\u00a0miles\u00a0of\u00a0territory.<\/p>\n
Schematic\u00a0of\u00a0HUL\u2019s\u00a0Distribution\u00a0Network<\/p>\n
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\u00e2\u20ac\u0090stockists.<\/p>\n
HUL approached the rural market with two criteria \u00e2\u20ac\u0090 the accessibility and viability. To service this segment, HUL appointed a Redistribution stockist who was responsible for all outlets and all business within his particular town. In the 25% of the accessible markets with low business potential, HUL assigned a sub stockist who was responsible to access all the villages at least once in a fortnight and send stocks to those markets.<\/p>\n
This sub\u00e2\u20ac\u0090stockist distributes the company\u2019s products to outlets in adjacent smaller villages using transportation suitable to interconnecting roads, like cycles, scooters or the age\u00e2\u20ac\u0090old bullock cart. Thus, Hindustan Unilever is trying to circumvent the barrier of motorable roads. The company simultaneously uses the wholesale channel, suitably ncentivising them to distribute company products. The most common form of trading remains the grassroots buy\u00e2\u20ac\u0090and\u00e2\u20ac\u0090sell mode. This enables HUL to influence the retailers stocks and quantities sold through credit extension and trade discounts. HUL launched this Indirect Coverage (IDC) in 1960s.Under the Indirect Coverage (IDC) method, company vans were replaced by vans belonging to Redistribution Stockists, which serviced a select group of neighbouring markets.<\/p>\n
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\u2019s by means of trucks and the products finally make the \u2018last mile\u2019 based on the local popular and cheap mode of transport.<\/p>\n
Direct marketing: Selling products through direct dealing with consumers bypassing intermediaries.<\/p>\n
Traditional methods: cold calling, telephone selling, and door-to-door calling, telemarketing, mail order, direct-mail selling, direct radio selling, magazine and TV advertising<\/p>\n
The main advantages of selling direct are that there is no need to share profit margins and the producer has complete control over the sales process. Products are not sold nearby those of competitors either.<\/p>\n
Specific market factors that would encourage direct selling are \u2013<\/p>\n
need for an expert sales force, to demonstrate products, provide detailed pre-sale information and after-sales service<\/p>\n
Unwillingness of retailers, distributors, dealers and other intermediaries to sell the product<\/p>\n
Clout of competitors over existing distribution channels<\/p>\n
There are significant costs associated with selling direct which may be higher than the costs associated with using an intermediary to generate the same level of sales. However, there are several potential advantages of using an intermediary.<\/p>\n
Greater efficiency in distribution logistics<\/p>\n
Lower overall costs (even after including margins or commissions)<\/p>\n
Variety seeking behavior of consumer at point of sale<\/p>\n
Lack of resources \/ expertise for producers in direct selling<\/p>\n
It is the system the marketer reaches the intended final user with the help of others. These resellers generally take ownership of the product, though in some cases they may sell products on a consignment basis (i.e., only pay the supplying company if the product is sold). Under this system intermediaries may be expected to assume many responsibilities to help sell the product. The indirect methods include \u2013<\/p>\n
Under this system the marketer engages another party who then sells and distributes directly to the final customer. This is most likely to occur when the product is sold through large store-based retail chains or through online retailers, in which case it is often referred to as a trade selling system.<\/p>\n
This indirect distribution system has the product passing through two or more distributors before reaching the final customer. The most likely scenario is when a wholesaler purchases from the manufacturer and sells the product to retailer<\/p>\n
This model creates a symbiotic partnership between HUL and its consumers. Started in the late 2000, Project Shakti had enabled Hindustan Lever to access 80,000 of India\u2019s 638,000 villages .HUL\u2019s partnership with Self Help Groups(SHGs) of rural women, is becoming an extended arm of the company\u2019s operation in rural hinterlands. Project Shakti has already been extended to about 12 states- Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu, Chattisgarh, Uttar Pradesh, Orissa, Punjab, Rajasthan, Maharashtra and West Bengal. The respective state governments and several NGOs are actively involved in the initiative. The SHGs have chosen to partner with HUL as a business venture, armed with training from HUL and support from government agencies concerned and NGOs. Armed with micro-credit, women from SHGs become direct-to-home distributors in rural markets.<\/p>\n
The model consists of groups of (15-20) villagers below the poverty line (Rs.750 per month) taking micro-credit from banks, and using that to buy our products, which they will then directly sell to consumers. In general, a member from a SHG selected as a Shakti entrepreneur, commonly referred as \u2018Shakti Amma\u2019 receives stocks from the HUL rural distributor. After being trained by the company, the Shakti entrepreneur then sells those goods directly to consumers and retailers in the village. Each Shakti entrepreneur usually service 6-10 villages in the population strata of 1,000-2,000. The Shakti entrepreneurs are given HUL products on a `cash and carry basis\u2019.<\/p>\n
To improve the efficiency of a process, business organization by simplifying or eliminating<\/p>\n
unnecessary steps, using modernizing techniques, or taking other approaches. To cater to the needs of the inaccessible market with high business potential HUL initiated a Streamline initiative in 1997. Project Streamline is an innovative and effective distribution network for rural areas that focuses on extending distribution to villages with less than 2000 people with the help of rural sub-stockists\/Star.Sellers who are based in these very villages. As a result, the distribution network directly covers as of now about 40 per cent of the ruralpopulation. Under Project Streamline, the goods are distributed from C & F Agents to Rural Distributors (RD), who has 15-20 rural sub-stockists attached to him. Each of these sub-stockists \/ star sellers is located in a rural market. The sub-stockists then perform the role of driving distribution in neighboring villages using unconventional means of transport such as tractor and bullock carts. Project Streamline being a cross functional initiative, the Star Seller sells everything from detergents to personal products. Higher quality servicing, in terms of frequency, credit and full-line availability, is to be provided to rural trade as part of the newdistribution strategy.<\/p>\n
It is the company\u2019s arm in the Direct Selling channel, one of the fastest growing in India today. It already has about several lakh consultants \u2013 all independent entrepreneurs, trained and guided by HLN\u2019s expert managers. HLN has already spread to over 1500 towns and cities, covering 80% of the urban population, backed by 42 offices and 240 service centres across the country. It presents a range of customised offerings in Home & Personal Care and Foods.<\/p>\n
The New Compensation plan for HLN partners provides new exciting ways of earning substantial income in addition to offering rewards like revenue sharing through the innovative concept of \u201cpools\u201d Mother Depot and Just in Time System. In order to rationalise the logistics and planning task, an step has been the formation of the Mother Depot and Just in Time System (MD-JIT). Certain C&FAs were selected across the country to act as mother depots. Each of them has a minimum number of JIT depots attached for stock requirements. All brands and packs required for the set of markets which the MD and JITs service in a given area are sent to the mother depot by all manufacturing units.<\/p>\n
The JITs draw their requirements from the MD on a weekly or bi-weekly basis. Leveraging Information technology HUL customers are serviced on continuous replenishment. This is possible because of IT connectivity across the extended supply chain of about 2,000 suppliers, 80 factories and 7,000 stockists. This sophisticated network with its voice and data communication facilities has linked more than 200 locations all over the country, including the head office, branch offices, factories, depots and the key redistribution stockists. They have also combined backend processes into a common Shared Service infrastructure, which supports the units across the country. All these initiatives together have enhanced operational efficiencies, improved the service to the customers and have brought us closer to the marketplace.<\/p>\n
The RS Net initiative, launched in 2001, aims at connecting Redistribution Stockists (RSs) through an internet based system. It now covers stockists of the Home & Personal Care business and Foods & Beverages in close to 1200 towns and cities. Together they account for about 80% of the company\u2019s turnover. RS Net is one of the largest B2B e\u00e2\u20ac\u0090commerce initiatives ever undertaken in India. It provides linkages with the RS\u2019s own transaction systems, enables monitoring of stocks and secondary sales and optimises RS\u2019s orders and inventories on a daily basis through online interaction on orders, despatches, information sharing and monitoring. The IT-powered system has been implemented to supply stocks to redistribution stockists on a continuous replenishment basis. Today, the sales system gets to know every day what HUL stockists have sold to almost a million outlets across the country. Information on secondary sales is now available on RS Net every day. RS Net is part of Project Leap. Project Leap begins with the supplier runs through the factories and depots and reaches up to the RSs. This ensures HUL\u2019s growth by ensuring that the right product is available at the right place in the right quantities and at the right time in the most cost effective manner. Leap also aims at reducing inventories and improving efficiencies right through the extended supply chain. RS Net has come as a force multiplier for HUL Way, the company\u2019s action plan to not only maximise the number of outlets reached but also to achieve leadership in every outlet. RS Net has enabled stockists to place orders on a Continuous Replenishment System. This in turn has unshackled the field force to solely focus on secondary sales from the stockists to retailers and market activation. It has also enabled RSs to provide improved service to retail outlets. Simultaneously, HUL is servicing the rural market, key urban outlets, and the modern trade as a single concern. In 2000, HUL identified improved supply chain management as a critical business priority and launched a comprehensive initiative, \u201cProject Leap,\u201d tasked with increasing supplier\/distributor responsiveness, reducing inventory buffers, and optimizing planning and scheduling. HUL chose the Adexa iCollaboration suite for facilitating centralized monitoring of the SCM, live customer \/supplier collaboration, and integrating demand and distribution planning with production scheduling.<\/p>\n
With the aggregated view of data provided by the iCollaboration suite, HUL was able to combine sales and distribution efforts on the diverse product lines, which resulted in significant savings on the cost side for inventories and distribution. HUL updates inventory positions, shipments and customer orders on a daily basis with these software packages and can get a pulse on the market real time.<\/p>\n
Hindustan\u00a0Lever\u00a0Limited\u00a0(HUL)\u00a0has\u00a0two\u00a0types\u00a0of\u00a0channel\u00a0selling\u00a0\u2013<\/p>\n
i. Regular\u00a0(traditional)\u00a0retail\u00a0channel,\u00a0\u00a0<\/p>\n
ii. Direct\u00a0Selling\u00a0Channel\u00a0in\u00a0the\u00a0name\u00a0of\u00a0Hindustan\u00a0Lever\u00a0Network\u00a0(HLN).\u00a0<\/p>\n
HUL\u00a0 has\u00a0 a\u00a0 well\u00a0 entrenched\u00a0 high\u00a0 distribution\u00a0 model\u00a0 which\u00a0 comprises\u00a0 of\u00a0 C&FAs,\u00a0 Redistribution\u00a0stockists,\u00a0wholesalers\u00a0and\u00a0retailers\u00a0(as\u00a0shown\u00a0earlier).\u00a0Hindustan\u00a0Unilever\u2019s\u00a0distribution\u00a0network\u00a0recognized\u00a0as\u00a0one\u00a0of\u00a0its\u00a0key\u00a0strengths.\u00a0Its\u00a0focuses\u00a0on\u00a0Product\u00a0availability,\u00a0Brand\u00a0communication,\u00a0and\u00a0 higher\u00a0levels\u00a0of\u00a0brand\u00a0experience.<\/p>\n
HUL\u2019s\u00a0Sales\u00a0Break up\u00a0through\u00a0different\u00a0channels:\u00a0<\/p>\n
Sales Break-up Through Different Channels<\/p>\n
Modern Retail :7%<\/p>\n
General Urban Trade: 60%<\/p>\n
Rural Areas: 33%<\/p>\n
Typically, the goods produced in each of the HUL\u2019s 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. In each town,there is at least a redistribution stockist (RS) who takes the goods from the C&FA and sells them to retail outlets.<\/p>\n
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. HUL found it expensive to appoint one stockist exclusively for each town. Secondly, the retail revolution in the country has changed the pattern the customers shop. Large retail self service shops or modern trade outlets were becoming commonplace.\u00a0<\/p>\n
In\u00a0 response\u00a0 to\u00a0 these\u00a0 problems,\u00a0 HUL\u00a0 redesigned\u00a0 its\u00a0 sales\u00a0 and\u00a0 distribution\u00a0 channel\u00a0 and\u00a0 the\u00a0 new\u00a0 system\u00a0 is\u00a0 known\u00a0 as\u00a0 \u2018diamond\u00a0 model\u2019\u00a0 in\u00a0 the\u00a0 company.\u00a0 At\u00a0 the\u00a0 top\u00a0 end\u00a0 of\u00a0 the\u00a0 diamond,\u00a0 there\u00a0 are\u00a0 the\u00a0 self\u00a0 service\u00a0 retail\u00a0 stores\u00a0 which\u00a0 constitute\u00a0 about 10%\u00a0 of\u00a0 the\u00a0 total\u00a0 FMCG\u00a0market.\u00a0The middle, fatter part of the diamond represents the profit-center based sales team. In the bottom of the pyramid is the rural marketing and distribution which accounts for 20% of the business. As a result of the new distribution plan the company has planned to reduce the number of Redistribution Stockists in small towns.<\/p>\n
For example, the number of redistribution stockists in Jharkhand have been reduced from 3 to 1 last year.<\/p>\n
Sales Margin: 4.76% which includes cash discount, incidental expenses.<\/p>\n
Modes of transport used: Rickshaw, tempo.<\/p>\n
Incentive schemes: Before 2000 holiday packages and tours but after 2000 no non\u00e2\u20ac\u0090monetary incentive for RS.<\/p>\n
Software systems and Information System: Synchronized daily and the system updates any information\/ incentive schemes \/ sales figures etc to and from the common shared platform.<\/p>\n
Areas of Operations: Marked for each of the RS.<\/p>\n
Selling Operations: RSs sells the goods toWholesaler (gets 1.5 % max. discount from RS) Retailers (gets 1.0% max. discount from RS)<\/p>\n
To\u00a0 meet\u00a0 the\u00a0 ever-changing\u00a0 needs\u00a0 of\u00a0 the\u00a0 consumer,\u00a0 HUL\u00a0 has\u00a0 set\u00a0 up\u00a0 a\u00a0 distribution\u00a0 network\u00a0 that\u00a0 ensures\u00a0 availability\u00a0 of\u00a0 all\u00a0 their\u00a0 products,\u00a0 in\u00a0 all\u00a0 outlets,\u00a0 at\u00a0 all\u00a0 times.\u00a0 This\u00a0 includes,\u00a0 maintaining\u00a0 favourable\u00a0 trade\u00a0 relations,\u00a0 providing\u00a0 innovative\u00a0 incentives\u00a0 to\u00a0 retailers\u00a0 and\u00a0 organizing\u00a0 demand\u00a0 generation\u00a0activities\u00a0among\u00a0a\u00a0host\u00a0of\u00a0other\u00a0things.\u00a0\u00a0<\/p>\n
The\u00a0 important\u00a0 activities\u00a0 that\u00a0 HUL\u00a0 field\u00a0 sales\u00a0 force\u00a0 does\u00a0 are\u00a0 (i)\u00a0 target\u00a0 chasing\u00a0 and\u00a0 (ii)\u00a0 reporting\u00a0 on\u00a0 a\u00a0 daily\u00a0 basis.\u00a0 Account\u00a0information\u00a0 is\u00a0 maintained\u00a0 on\u00a0 palmtops\u00a0 given\u00a0 by\u00a0 HUL.\u00a0\u00a0<\/p>\n
HUL\u00a0 has\u00a0 limited\u00a0 the\u00a0 network\u00a0 channel\u00a0 selling\u00a0 to\u00a0 categories\u00a0 of\u00a0 Home\u00a0 &\u00a0 Personal\u00a0 Care\u00a0 (HPC)\u00a0 and\u00a0 Food\u00a0 products\u00a0 with\u00a0 exclusive\u00a0 brands\u00a0 for\u00a0 this\u00a0 channel.\u00a0 That\u00a0 is,\u00a0 these\u00a0 particular\u00a0 brands\u00a0 (products)\u00a0 are\u00a0 all\u00a0 exclusive\u00a0 to\u00a0 HLN,\u00a0 specifically\u00a0 developed\u00a0 for\u00a0 the\u00a0 Direct\u00a0 Selling\u00a0 channel,\u00a0 and\u00a0 not\u00a0 available\u00a0 in\u00a0 the\u00a0 retail\u00a0 channel.\u00a0 The\u00a0general\u00a0 trade\u00a0 comprises\u00a0 grocery\u00a0 stores,\u00a0 chemists,\u00a0wholesaler,\u00a0kiosks\u00a0andgeneral\u00a0stores.\u00a0Hindustan\u00a0Unilever\u00a0services\u00a0each\u00a0with\u00a0a\u00a0tailor made\u00a0mix\u00a0of\u00a0services.<\/p>\n
HUL has taken the following initiatives to improve its distribution network: Setting up a full scale sales organisation 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, delayering of sales force to improve response times and service levels, revamping of its sales organisation in the rural markets to fully meet the emerging needs and increased purchasing power of the rural population. HUL\u2019s distribution network in rural India already directly covers about 50,000 villages, reaching about 250 million consumers through about 6,000 sub stockists.<\/p>\n
Implementation of supply chain system that connects stockists across the country, and also includes a back\u00e2\u20ac\u0090end system connecting suppliers, all company sites and stretching right up to stockists. IT tools have been deployed for connectivity across the extended supply chains. Backend processes have been combined into a common Shared Service infrastructure. Launching of Project Shakti through which the company is able to extend its operations in villages. HUL has also included several NGOs and state governments as the initiative helps rural women to improve their financial position. Launching of HUL Network to leverage the channel of direct selling by presenting customised offerings in 11 home and personal care and food categories. Starting of franchised Lakme Beauty Salons and Ayush Therapy centres to offer standardised services, in line with the strategy to leverage the equity of its brands through relevant services, finding out Innovative ways to reach out to its consumers, particularly in rural areas byleveraging non\u00e2\u20ac\u0090conventional media like wall paintings, cinema vans, weekly markets (haats),fairs and festivals.<\/p>\n
Initiating the concept of Super Value Stores (SVS) in urban areas to partner traditional stores to provide a range of services ranging from managing their inventory to setting up POS (point of sale) banners. In addition to this, to boost up traditional retail in the face increasing in\u00e2\u20ac\u0090roads made by large, modern retailing chains like Spencer\u2019s, Reliance Fresh etc (whereHUL is squeezed harder for discounts), HUL started restructuring some of the selected SVSs into the form of self\u00e2\u20ac\u0090service retail shops a la modern retails. This is to protect & maintain the competitive advantage that HUL has over its biggest competitors in the other markets (e.g., P&G), with its very deep distribution reach through traditional retail.<\/p>\n
Launched the Unicare scheme with upmarket pharmacies and retailers to sale its premium brands.Undertaking several initiatives for traditional channels in order to improve its capabilities at the front\u00e2\u20ac\u0090end by developing skills for stockists\u2019 sales force. Under \u2018Project Dronacharya\u2019, the FMCG major continuously imparted training to over 10,000 stockist salesmen.<\/p>\n
Launching of several promotional schemes for existing wholesalers and distributors. For instance, it has started the \u2018Vijeta \u00e2\u20ac\u0090 Rishta Jeet Ka\u2019 scheme last year to provide a platform for the wholesaler and HUL to grow the business by earning points and redeeming them.<\/p>\n
Eventhough, the Supply Chain has been described in a concise manner here, each of the levels might have a number of sublevels. In certain respects, the company has cut down on the number of intermediaries by themselves as they found that maintaining a wide intermediary network is not financially feasible.<\/p>\n
HUL has itself franchiseed certain products through dedicated outlets like Pond\u2019s studio where the level of intermediaries are limited. Still, currently those products are in the premium segment.<\/p>\n
HUL has started partnering with select retailer in \u201cSuperValueShops\u201d cutting down on all the intermediaries, but again reachability of these shops to the entire population will be an issue.<\/p>\n
In the hypothetical situation, where HUL retails all its product only through its existing network of SVS, it would be inconvenient and more expensive for a large number of consumers to buy from there if we include the conveyance charges incurred by the customer. Moreover the customer wont be able to buy perishable products of the distance is very large since the product would get spoiled by the time it reaches home.<\/p>\n
HUL being the largest FMCG company in the country can\u2019t afford to lose large geographies in the country due to these reasons. It would want to reach out to every potential customer. On the first look, it seems that the product cost increases as the number of intermediaries increase, but due to the above mentioned reasons of convenience and lesser travelling cost for end consumer, it is always desireable to have a certain number of intermediaries.<\/p>\n
We have done research on a brand HUL and studied its marketing channel structure and also the way the whole system works. In its network, we understand that there are intermediaries and less of direct selling. This method proved to be good for HUL which has large penetration and if it needs to work alone without intermediaries, it would lead to high inventory costs and hence price of goods also increases.<\/p>\n
Hence it is good for HUL to have a certain level of intermediaries to reduce the costs on the company and prevent that cost from being transferred to the consumers.<\/p>\n
Limitation:<\/p>\n
This report talks about HUL and its marketing channel. It is a niche topic (sample nursing essay examples by the best nursing assignment writing service) and HUL being one of the biggest FMCG brands and a brand operating for so long has streamlined the process. This limited out study scope. But established practices were understood and appreciated.<\/p>\n
Scope :<\/p>\n
We have worked only with FMCG sector and a particular brand. This will hold true for HUL but will not be applicable for other brands in neither same FMCG category nor in other categories. Many factors like penetration, number of distributors, margins of distributors, inventory levels, product lifetime etc play a critical role in determining costs incurred in the product. This study can be carried out in others categories and sectors to understand the impact of middlemen on the price of the goods. Hence a vast scope is available for researchers on this issue.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
Study Bay Coursework Assignment Writing Help Hindustan Unilever Limited\u00a0is Indias largest\u00a0consumer goods\u00a0company based in\u00a0Mumbai, Maharashtra. It is owned by the British-Dutch company\u00a0Unilever\u00a0which controls 52 majority\u2026<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7822,7724,7820,7548,7826,8080,8079,8077,8078,8081,7605],"tags":[103,95,83,94,80,86,79,98,93,104,7647,99,92,82,102,85,8,101,97,87,96,91,89,90,88,100,1402,84,6940,81],"class_list":["post-85810","post","type-post","status-publish","format-standard","hentry","category-best-dissertation-writing-service-uk","category-best-dissertation-writing-services","category-dissertation-title-generator","category-dissertation-writing-services-cost","category-dissertation-writing-services-in-usa","category-master-thesis-writing-service","category-online-thesis-writing-services","category-phd-dissertation-help-and-editing-helper-in-usa","category-professional-dissertation-writing-service","category-write-my-dissertation","category-writing-dissertation-and-grant-proposals","tag-150-200-words-discussion-with-a-scholarly-reference","tag-200-300-words-response-to-classmate-discussion-question","tag-250-word-analysis-essay","tag-bachelor-of-nursing-assignments","tag-case-study","tag-essay-bishops-website","tag-expert-online-nursing-writing-service","tag-fast-nursing-papers","tag-freelance-case-study-writing-service","tag-health-medicine-assignment-help-australia","tag-health-care-an","tag-health-care-assignment-help-service","tag-healthcare-assignment-writing-services-by-top-writers","tag-healthcare-essay-writing-services-by-medical-academics","tag-healthcare-writing-help-by-certified-medical-academics","tag-i-need-to-submit-this-assignment","tag-medical-essay-writing-service","tag-nursing-assessment-help","tag-nursing-assignment-help","tag-nursing-assignment-help-australia","tag-nursing-assignment-help-sydney","tag-nursing-assignment-writers","tag-nursing-assignments-examples-assignment-help-nursing","tag-pay-someone-to-do-my-nursing-assignment","tag-professional-case-study-writers","tag-quality-nursing-essay-writing-service","tag-write-a-paper","tag-write-a-review","tag-write-an-essay","tag-writing-assignment"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/85810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=85810"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/85810\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=85810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=85810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=85810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}