HUL & Pepsico


Published on

Published in: Health & Medicine, Business
  • Sir,
    We are working in the field of distribution in the area of muktsar, fazilka, n faridkot ,from the last 10 years, having association with companies like patanjali ayurved ltd, divya pharmacy, pbri , natureway network marketing p ltd , maxx mobiles etc. We have the proper infrastructure like investment, own godown, own transport vehicles and a proper trained staff. Now we are interested in work as a super stockist or c & f of the reputed company like you. Please let me know if we can serve u in any way.
    Ashu Bansal.
    Bansal Traders
    New Grain Market
    Muktsar ( Punjab )
    Ph no. 9569477700, 9876480278
    Are you sure you want to  Yes  No
    Your message goes here
  • dear sir,
    i am yad ram singh, and retired from army and i m interested in taking sales and distribution of your products in chandausi(near moradabad) UP.
    sir i want to know the terms and conditions.
    Are you sure you want to  Yes  No
    Your message goes here
  • Dear sir,
    I am alok pandey I am from delhi I am interested for having c&f of your company for upwest or delhi i have 1000 sq. ft.godown facilities & capable to full fill all formelities.we have experience in product handeling as well as its distribution .Kindly provide me more information on your proposal .You can contact me on my email--
    Thanks & Regards,
    Alok Pandey
    Mob: 88829 42882
    Are you sure you want to  Yes  No
    Your message goes here
  • jab download option hi nahi rakhna hai toh phir option kyun diya??????
    Are you sure you want to  Yes  No
    Your message goes here
  • hiiiiiiiiii
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

HUL & Pepsico

  1. 1. Introduction 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. Mission
  2. 2. 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 multi-local multinational. 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.
  3. 3. If we see their achievements then we will understand that how managing their business.
  4. 4. com e up. 2002 HUL enter s Ayur vedic healt h & beau ty centr e cate gory with the Ayus h
  5. 5. Board 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. Products 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
  6. 6. d. Hair care products like Sunsilk, e. Deodorants like axe, Rexona And many more 2. Foods a. Tea like lipton, Brook Bond b. Coffee like Bru c. Ice-cream like Kwality Wall’s 3. Water a. Pureit
  7. 7. Distribution System 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- way strategy 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- wide network. 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:
  8. 8. 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 strategies. 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.
  9. 9. Distribution Network 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
  10. 10. 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
  11. 11. 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 6000 sub-stockists. 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.
  12. 12. 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 Manufacturer Distributor
  13. 13. Retailer Customer In some cases Manufacturer Manufacturer directly deliver to retailer’s door Retailer step, this is possible if HUL is dealing with any big Retailer Customer
  14. 14. 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.
  15. 15. Bibliography 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, 3. HLL, 4. 5. HLL's `Shakti' to help partners in rural India, Vinay Kamath, New delhi, april 25,
  16. 16. Pepsico India 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
  17. 17. 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 1. Beverages  Pepsi  7 UP  Mirinda  Mountain Dew  low calorie Diet Pepsi 2. Hydrating and nutritional Beverages  Aquafina 3. Isotonic sports drinks  Gatorade 4. Juice based drinks  Tropicana100%
  18. 18.  Tropicana Nectars  Tropicana Twister  Slice. 5. Local brands  Lehar Evervess Soda  Dukes Lemonade 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  Cheetos  Uncle Chipps  Kurkure  Lehar brands The company’s high fibre breakfast cereal
  19. 19.  Quaker Oats  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. Distribution System 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 forthright manner. 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.
  20. 20. 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.
  21. 21. 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.
  22. 22. Distribution Network 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. Manufacturer In case of commercial Depot/Warehouse use
  23. 23. Manufacturer Distributor Restaurant Retailer Customer Customer 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.
  24. 24. Bibliography
  25. 25. 1. Pepsi plans a $500-million splash in India, 22 Sep 2008, 0150 hrs IST, ET Bureau, 2. Pepsi To Add 15,000 Retail Outlets In West, Posted: 2004-07-16, 3.