Sales and distribution network of HUL[/b]
A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods and services from those who need or want them. Members of the marketing channel perform a number of key functions like forward flow of activity from the company to the customers(goods) and backward flow from customers to company(order,payment).
FMCG major HUL caters to seven million distinct outlets across India and 59% of these stores are in rural India. HUL directly services over 1 million stores and has a network of over 7000 stockists and distributors.
Unilever Sales and Distribution in India[/b]
- Modern trade
- Organized retail
- Self-service stores
- General trade
- Wholesale
- Family grocer
- Marginal retail
- Rural trade
- Multi-purpose-retail
HUL’s approach to distribution:[/b]
Direct-to-consumer distribution:[/b]
[/b]
Project “Sangam Direct”- a non-store home delivery retail business operates a dedicated call center with trained personnel in Mumbai. The center after procuring orders from customers passes them on for execution to a network of redistribution agents. This model, which does not call for owning a physical warehousing or selling facility, offers twin benefits of convenience and value to its customers. HUL, after understanding and analysing consumer response, wanted to take the ideaacross the country.
Diagramatic representation of the distribution channel[/b]
Sales force behind the distribution channel:[/b]
In case of HUL the sales are co-ordinated by Area Sales Manager (ASM), Activation Manager (AM), and a Territory Sales In-charge (TSI). These people act as a link between the stockist and the company. The goods move to the stockists godown by the company’s truck. The stockist then appoints a Re Stockist Salesman (RSSM) who is responsible for collecting the orders and payments from the retail outlets.
Evaluation and selection of channel members:[/b]
[/b]
The stockists are selected with a proper evaluation of the factors like the investment capacity, number of retail stores covered, appropriate sales force and infrastructure. HUL’s policy is to work in advance payment mode. To ensure this, the company maintains a stock of signed blank cheques of the stockist and these cheques are presented to the bank upon the receipt of order and generation of the bill.
Conclusion:[/b]
Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience. In the end it could be said that HUL's SCM is one of the best in India and it is quite difficult for any company to challenge it.
A marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods and services from those who need or want them. Members of the marketing channel perform a number of key functions like forward flow of activity from the company to the customers(goods) and backward flow from customers to company(order,payment).
FMCG major HUL caters to seven million distinct outlets across India and 59% of these stores are in rural India. HUL directly services over 1 million stores and has a network of over 7000 stockists and distributors.
Unilever Sales and Distribution in India[/b]
- Modern trade
- Organized retail
- Self-service stores
- General trade
- Wholesale
- Family grocer
- Marginal retail
- Rural trade
- Multi-purpose-retail
HUL’s approach to distribution:[/b]
Direct-to-consumer distribution:[/b]
[/b]
Project “Sangam Direct”- a non-store home delivery retail business operates a dedicated call center with trained personnel in Mumbai. The center after procuring orders from customers passes them on for execution to a network of redistribution agents. This model, which does not call for owning a physical warehousing or selling facility, offers twin benefits of convenience and value to its customers. HUL, after understanding and analysing consumer response, wanted to take the ideaacross the country.
Diagramatic representation of the distribution channel[/b]
Sales force behind the distribution channel:[/b]
In case of HUL the sales are co-ordinated by Area Sales Manager (ASM), Activation Manager (AM), and a Territory Sales In-charge (TSI). These people act as a link between the stockist and the company. The goods move to the stockists godown by the company’s truck. The stockist then appoints a Re Stockist Salesman (RSSM) who is responsible for collecting the orders and payments from the retail outlets.
Evaluation and selection of channel members:[/b]
[/b]
The stockists are selected with a proper evaluation of the factors like the investment capacity, number of retail stores covered, appropriate sales force and infrastructure. HUL’s policy is to work in advance payment mode. To ensure this, the company maintains a stock of signed blank cheques of the stockist and these cheques are presented to the bank upon the receipt of order and generation of the bill.
Conclusion:[/b]
Hindustan Unilever, which once pioneered distribution in India, is today reinventing distribution - creating new channels, and redefining the way current channels are serviced. In the process it is converging product availability, with brand communication and brand experience. In the end it could be said that HUL's SCM is one of the best in India and it is quite difficult for any company to challenge it.