Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, with leadership in Home & Personal Care Products and Foods & Beverages.
HUL's brands, spread across 20 different consumer categories, touch the lives of two
out of three Indians. They offer the company with a range of combined volumes of about
4 million tones and sales of Rs.13,718 crores.
The mission that inspires HUL's over 15,000 employees is to "add strength to life". With
35 Power Brands, HUL meets everyday needs for nutrition, hygiene, and personal care
with brands that help people feel good, look good and get more out of life.
It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the
equity. A Fortune 500 transnational, Unilever sells Foods, Home and Personal Care
brands in about 100 countries worldwide.
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look good and get
more out of life.
There deep roots in local cultures and markets around the world give them their strong
relationship with consumers and are the foundation for their future growth. They will
bring knowledge and international expertise to the service of local consumers - a truly
Their long-term success requires a total commitment to outstanding standards of
performance and productivity, to working together effectively, and to a willingness to
hold new ideas and learn continuously.
To succeed also requires, they believe, the highest standards of corporate behaviour
towards everyone they work with, the communities they touch, and the environment on
which they have an impact.
This is their road to sustainable, profitable growth, creating long-term value for their
shareholders, their people, and their business partners. These all things help them in
making their distribution network stronger.
If we see their achievements then we will understand that how
managing their business.
The Board of Directors of the HUL act as a guardian to the Company as also the
protectors of shareholder’s interest.
This top body include of a Non- Executive Chairman, four whole time Directors and five
independent Non – Executive Directors. The Board of the Company represents the best
mix of professionalism, knowledge and experience.
If we talk about the products offered by HUL then we have long q for them. HUL offers
more than 150 products under 32 brands which make them big company.
They have divided there all brands into Super brands and Mega brands and they merge
these brands according to market conditions.
Some of their popular products
1. Home and personal care products
a. Personal wash products like ux, dove, pears, etc
b. Laundry products like surf, wheel, Vim liquid
c. Skin care products like ponds, Aviance
d. Hair care products like Sunsilk,
e. Deodorants like axe, Rexona
And many more
a. Tea like lipton, Brook Bond
b. Coffee like Bru
c. Ice-cream like Kwality Wall’s
On asking about their Distribution system he told me that, their focus is not only to
enable easy access to their brands, but also they want to touch consumers with a three-
a) Product availability
b) Brand communication
c) Higher levels of brand experience
He told me that through these things we are getting our brands closer to the consumer.
These initiatives create employment and vocational opportunities through its nation-
Actually they were using ‘one size fit for all’ distribution strategy to serve all of their
outlets. But due to change in consumer demography, consumer behavior and market
structure, that distribution system failed to deliver the results. So they adopted three-
way strategy. And today success is based on formulating and executing a clear strategy
for distribution system.
Opening of rural market also forced Hindustan Unilever to change its distribution system
He told me that:
1. They focus on product package & making logistics in the channel more efficient.
2. They inform the dealers (selected distributers) about the status of their new
product through sending mail, broacher which help them to plan their own
3. He told me that their distribution is carried on through indirect channels, i.e., the
middlemen. Which helps them serving their customer’s needs better & at lower
cost. Moreover, these middlemen help them in providing information which brings
them closer to their customers.
4. They Select distribution – Selling through only those middlemen who will give
their product special attention where their target customers are more.
5. Proper steps to improve inventory management & reduce stock – outs, thus,
getting early sales in the program.
Actually Hindustan Unilever's distribution network is recognised as one of its key
strengths. As I have told you that there focus is not only to enable easy access to their
brands, but also to touch consumers with a three-way strategy, so this helps them in
making their distribution network more reliable and strong.
HUL's products, manufactured across the country, and are distributed through a
network of about 7,000 re-distribution stockists covering about one million retail outlets.
The distribution network directly covers the entire urban population.
He told me that the general trade includes grocery stores, chemists, wholesale and
general stores. The services of Hindustan Unilever are tailor-made which attracts the
customers and distributors.
He explain this by giving different cases:
At the supermarkets: Self-service stores and supermarkets are fast rising in metros and
large towns. To service modern retailing outlets in the metros, HUL has set up a full-
scale Distribution Network, 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 their
brands at the store itself, through product tests and in-store sampling.
In the villages: In the rural markets to fully meet the increasing needs and increased
purchasing power of the rural population. The company has brought all markets with
populations of below 50,000 under one rural Distribution Network. The team includes an
exclusive sales force and exclusive re-distribution stockists, under the charge of best
Managers. The team focuses on building superior availability, while enabling brand
building in the deepest interiors. HUL's distribution network in rural India already directly
covers about 50,000 villages, reaching about 250 million consumers, through about
Harnessing Information Technology: An IT-powered system has been implemented to
supply stocks to re-distribution stockists on a continuous replacement basis. The
objective is to analyse HUL's growth by ensuring that the right product is available at the
right place in right quantities, in the most cost-effective manner. For this, stockists have
been connected with the company through an Internet-based network, called RSNet, for
online interaction on orders, dispatches, information sharing and monitoring. Today, the
sales system gets to know every day what HUL stockists have sold to almost a million
outlets across the country. HUL's end-to-end supply chain, which also includes a back-
end system connecting suppliers, all company sites and stretching right upto stockists.
All these type of things helps HUL in making their network wide and deep. They use
right strategy, at right place, at right time.
In the end it could be said that HUL's SCM is one of the best in the world and it is quite
difficult for any company to challenge it. In India if we see, we will find that LUX is
available everywhere and it is through this SCM only that HUL is able to do that.
Flow chart of Distribution Network
In some cases Manufacturer
directly deliver to
retailer’s door Retailer
step, this is
possible if HUL is
dealing with any
big Retailer Customer
Strategy for Demarcate salesmen’s territories
On asking him about this he told me that it is based on the performance, location and
demand. He told me that suppose, there are 5 sales executives and they have different
level of performance. Out of five, two are good in rural areas, and remaining in urban
areas, because they are living in that area and everybody understand them, trust them
so we will allot them that area because we want business and they are doing that. He
told me that sometimes this thing do not work because sales person feels
uncomfortable so we have to demarcate them randomly, means where there is a need
for more workforce.
In urban areas they can demarcate territories easily because here retailers want good
services, timely delivery but in rural areas they have to demarcate according to their
residence because there people buys on trust, if they do not know the sales person then
they will not take any type of products or services from that person.
And In last he told me that they believe in demarcate the territory according to the
location of the sales person.
1. Hindustan Lever by Professor Chris Trimble of the Tuck School of Business at
Dartmouth College, 2002 Trustees of Dartmouth College
2. Lever, Nirma 16-year-old row ends, 27 June 2007, www.domainb.com
3. HLL, www.megaessays.com
5. HLL's `Shakti' to help partners in rural India, Vinay Kamath, New delhi, april 25,
PepsiCo entered India in 1989 and has grown to become one of the country’s leading
food and beverage companies. One of the largest multinational investors in the country,
PepsiCo has established a business which aims to serve the long term dynamic needs
of consumers in India. PepsiCo India and its partners have invested more than U.S.$1
billion since the company was established in the country. PepsiCo provides direct and
indirect employment to 150,000 people including suppliers and distributors.
PepsiCo encourage consumers with a range of products from treats to healthy eats, that
deliver joy as well as nutrition. PepsiCo serves different products which covers
low calorie Diet Pepsi
2. Hydrating and nutritional Beverages
3. Isotonic sports drinks
4. Juice based drinks
5. Local brands
Lehar Evervess Soda
Mangola add to the diverse range of brands.
PepsiCo’s foods company
Frito-Lay is the leader in the branded salty snack market and all Frito Lay products are
free of trans-fat. It manufactures
Lay’s Potato Chips
The company’s high fibre breakfast cereal
Low fat and roasted snack options
Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to reduce fats
and all of its products contain nutritional labeling on their packets.
Treat all customers and suppliers honestly, fairly and objectively. Avoid any unfair or
deceptive practice and always present our services and products in an honest and
They believed that one of the main reasons for the company's growth over the decade
and the leadership status it has acquired in almost all its business segments was
PepsiCo's efficient distribution and logistics management operations.
Actually there distribution method depends on the various standards such as the Direct
Store Delivery (DSD) system, the broker warehouse system, the vending and food
service system and the pre-sell method.
PepsiCo's highly advanced distribution system is well supported by state-of-the-art
logistics systems. PepsiCo upgraded its technical capabilities time to time in order to
strengthen its logistics management activities. PepsiCo's bottlers employed wireless
technologies to strengthen their distribution system and effectively serve the customers
in the markets in which they operated. They launch ‘Power of One’ program in 1998 to
improve their distribution system which do not help them till 2004.
They believe in local distribution systems because in India there are two markets rural
and urban and the main problem for every FMCG company is that in India there is
unorganized retail due to which they have to ‘indianize’ their strategies to attract Indians.
PepsiCo's distribution system was aimed at making available all or most of the products
in its portfolio within a distance easily reachable by consumers. Based on its
experience, PepsiCo had developed various distribution models to offer its products and
services to customers in the India. These included the Direct Store Delivery (DSD),
Broker Warehouse Distribution (BWD) and Vending & Food Service (V&FS) systems.
Direct Store Delivery (DSD) is a method of delivering products from a distributor directly
to the retail store, bypassing a retailer's warehouse. The vendor manages the product
from order to shelf. Major DSD categories include beverages and snacks.
Broker Warehouse Distribution (BWD) is a method of delivering the products to
distributor and Vending & Food Service (V&FS) systems is a method of delivering
products to the Restaurants.
PepsiCo's distribution system aimed at making available all or most of the products in its
portfolio within a reachable distance to their consumers.
The growing Indian soft drinks market sees strong competition among different
beverage companies. So Distribution network should be free of weakest link. If
customer does not find one product then he/she will go for the alternative which will be
not good for the company and Pepsico believes that their distribution Network is very
good and effective because anybody can find their beverage (pepsi) anywhere.
They have small warehouses or we can say distributors in every area where they store
their products and those distributers then distribute those products to different retailers.
They have about 1.2 million outlets (CSD) in their distribution network.
In case of
Demarcate of Sales Persons
They demarcate their employee’s territory according to their residence because they
believe in local hiring of people because they understand the behavior of their target
markets she said that now it is time when there is a throat cut competition and to fight
with that much of competition we need those persons who understands the customer.
She told me that generally there allotment is based on social and environmental factor.
According to them in today’s world if you are not socially active then there will be no
business for you. Pepsico needs a deep distribution network so for this they need so
many personals as sales executive.
1. Pepsi plans a $500-million splash in India, 22 Sep 2008, 0150 hrs IST, ET
2. Pepsi To Add 15,000 Retail Outlets In West, Posted: 2004-07-16,