Institute Of Management Technology, Nagpur
Sales and Distribution Management
Course Facilitator: Prof Sanjeev Tripathi
Assignment 4: Distribution Network
Priya Sharma (08FT051)
Navdeep Gupta (08IT024)
Gopal Krishna Garg(08FN043)
Ananya Nandi (08HR031)
Kapil Tuteja (08IT018)
N. Suryaprakash (08FT039)
Distribution channels make possible the routinization of purchasing decisions which results in a reduction of cost of marketing operations. In this report we are also required to study the distribution network and the multiple marketing channels of the same product. The product chosen by us for the project is LUX Soap which is one of the flagship brands of the India’s largest FMCG Company, Hindustan Unilever Limited (HUL).
During the course of study we discovered that there are many channels for the distribution of Lux. Also the company adopts different starategies for distributing products at the Rural level. We would be discussing that in details in the report. The report is completed with the telephonic interviews with the dealers at some of the stores in different parts of India. But also a part of our report is based on the Secondary Research where we could not find substantial Primary Data.
About the company
Hindustan Unilever Limited (abbreviated to HUL), formerly Hindustan Lever Limited, is India's largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai, India and its 41,000 employees are headed by Harish Manwani, the non-executive chairman of the board. HUL is the market leader in Indian products such as tea, soaps, detergents, as its products have become daily household name in India. The Anglo-Dutch company Unilever owns a majority stake in Hindustan Unilever Limited.
Hindustan Lever Limited's distribution network comprises about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HLL is also one of India's largest exporters.
Lux soap was first launched in 1916 as laundry soap targeted specifically at 'delicates'. The name 'Lux' was chosen as a play on the word "luxury." Lux has been marketed in several forms, including bar and flake and liquid (hand wash, shower gel and cream bath soap). Lux toilet soap was introduced in 1925 as bathroom soap. Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Since its launch in India in the year 1929, Lux has offered a range of soaps in different colours and world class fragrances. Lux is a beauty soap of film stars. Lux recognized the need for a compelling message about beauty that would resonate with women of today.
From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours. In the early 1990s, Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturizing bars. With icons of beauty endorsing the brand, the offerings made by Lux have always been superior and have always led the market, setting benchmarks for competition. Lux has beauty offerings in two of the four market segments – popular and premium, spanning the needs of varied consumers.
Lux Toilet Soap in the popular segment has in the past years offered its consumers a range of soaps enriched with the goodness of a variety of nourishing ingredients – rose extracts, almond oil, milk cream, fruit extracts and honey which are known to...