1. December SALES & DISTRIBUTION NETWORK OF HINDUSTAN UNILEVER 21, 2008 Sales & Distribution Network of Hindustan Uni Lever (HUL)- DOVE bathing Soap (Region: Kolkata) 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) & backward flow from customers to company (order, Payment). FMCG major HUL is the subsidiary of UNILEVER with a market capitalization of $ 14 billion. HUL owns 35 of India’s 150 most trusted & powerful brands and is Market Leader across categories • Fabric wash, Personal wash, Dish wash, hair wash, skin applications, Talcum powders, packet tea, Jams • Number two: Toothpaste, instant coffee, ketchup The sales and distribution challenge of HUL HUL caters to Seven million distinct outlets across India (one for every 29 households) 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. 1
2. December SALES & DISTRIBUTION NETWORK OF HINDUSTAN UNILEVER 21, 2008 HUL’s Approach to Distribution Direct Coverage Indirect Coverage Streamline Distribution 2
3. December SALES & DISTRIBUTION NETWORK OF HINDUSTAN UNILEVER 21, 2008 S & D of HUL in Kolkata Hindustan Unilever in Kolkata covers the consumers mainly with the combination of C&F and stockists who indirectly deal with the Retail outlets. The company which is headquartered in Mumbai has appointed M/s Mitra Logistic Pvt. Ltd as the C & F agent for Easter region (West Bengal, Assam, Orrisa & Bihar). C & F agents can be classified into 2 types, one with investment and the other without investment. The without investment C&F agents are mere Forwarding agents and act as the