Professional Documents
Culture Documents
HUL
REDISTRIBUTION STOCKISTS
WHOLESALERS
URBAN RETAILERS
PHASE 1B PHASE 1A DIRECT COVERAGE FOR LARGE VILLAGES INDIRECT COVERAGE MODEL: DISTRIBUTOR IN A LARGE VILLAGE SUPPLIES TO NEARBY VILLAGES
PHASE 2
OPERATION STREAMLINE
PHASE 3
PROJECT SHAKTI
PHASE 1A: DIRECT COVERAGE HUL appointed a common stockist to service all outlets within a town of population 50000 people and sell a limited selection of brand portfolio
PHASE 1B: INDIRECT COVERAGE HUL targeted retailers in villages closer to urban markets. Retailers had to ensure that all the villages in the vicinity were served atleast once a fortnight. PHASE 3:PROJECT SHAKTI
Underpriveleged rural women were invited to Goods are distributed from represent hul and sell its products on a cash carrying and forwarding carry basis. Each shakti entrepreneuer covered agents to rural distributors. It around 6-10 villages with population of less than leveraged the rural wholesale 2000. In rural, hul tripled its coverage from 2.5 channel to reach markets lakh stores to 7.5 lakh stores. inaccessible by road. In a Initiatives like shakti vani program and ishakti particular village a few portal wholesalers would purchase the stock from a local distributor and distribute CARRYING AND REDISTRIBUTION SHAKTI stock to retailers in smaller FORWARDING STOCKISTS DISTRIBUTOR villages using local means of AGENTS transport
Reason for the steep fall in the profit of the company in the year 2004: The FMCG market in Urban INdia was attaining the saturation level and so companies had to expand its market in rural India. This resulted in the downfall in the profit of HUL. There was very aggressive advertising campaign by ITC in that year to set itself in the market this affected HUL who was enjoying the position of market leader and resulted in the fall in the profit of the company.