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Introduction of Hul

Hindustan Unilever has a distribution network of approximately 7,000 redistribution stockists that cover over one million retail outlets across urban and rural areas of India. This network aims to provide easy access to HUL brands while also communicating the brand message and offering consumers a positive brand experience. The stockists distribute products manufactured across India to both traditional grocery and general stores as well as larger retail outlets. HUL tailors its services to each type of retail outlet. In urban areas, products move from manufacturing sites to stockists to retail outlets, sometimes using local transportation for the last mile. In rural areas, HUL has established a sales organization to serve emerging demand.

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66 views

Introduction of Hul

Hindustan Unilever has a distribution network of approximately 7,000 redistribution stockists that cover over one million retail outlets across urban and rural areas of India. This network aims to provide easy access to HUL brands while also communicating the brand message and offering consumers a positive brand experience. The stockists distribute products manufactured across India to both traditional grocery and general stores as well as larger retail outlets. HUL tailors its services to each type of retail outlet. In urban areas, products move from manufacturing sites to stockists to retail outlets, sometimes using local transportation for the last mile. In rural areas, HUL has established a sales organization to serve emerging demand.

Uploaded by

SujataJoshi
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION OF HUL’s DISTRIBUTION NETWORK

Hindustan Unilever's distribution network is recognised as


one of its key strengths. Its focus is not only to enable
easy access to brands, but also to touch consumers with a
three-way convergence - of product availability, brand
communication, and higher levels of brand experience.

 HUL's products, manufactured across the country, are


distributed through a network of about 7,000 redistribution
stockists covering about one million retail outlets. The
distribution network directly covers the entire urban
population.

 The general trade comprises grocery stores, chemists,


wholesale, kiosks and general stores. Hindustan Unilever
services each with a tailor-made mix of services. The
emphasis is equally on using stores for direct contact with
consumers, as much as is possible through in-store
facilitators.
Hindustan Lever Limited (HUL) has two types of channel
selling
1) Regular (traditional) retail channel,
2) Direct Selling Channel in the name of Hindustan
Lever Network (HLN).
Areas of Operations: Marked for each of the RS.

Selling Operations: RSs sells the goods to Wholesaler


(gets 1.5 % max. discount from RS).
Wholesaler:
Gets cash discounts and other schemes promoted by HUL
(gets points under Vijeta Scheme).

Retailers:
A business which sells goods to the consumer, as
opposed to a wholesaler or supplier which normally sell
their goods to another business.
Retailers include large businesses such as Wal-Mart, and
also smaller, non-chain locations run independently such
as a family-run bookstore.

URBAN:
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.

Self-service stores and supermarkets are fast emerging in


metros and large towns. To service modern retailing
outlets in the metros, HUL has set up a full-scale sales
organisation, exclusively for this channel.
The business system delivers excellent customer service,
while driving growth for the company and the store.
At the same time, innovative marketing initiatives are
taken to provide consumers with experience of our brands
at the store itself, through product tests and in-store
sampling.
RURAL:
HUL has also established its sales organisation in the rural
markets to fully meet the emerging needs and increased
purchasing power of the rural population.
The company has brought all markets with populations of
below 50,000 under one rural sales organisation.

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