Hul Report

Only available on StudyMode
  • Download(s) : 293
  • Published : November 10, 2011
Open Document
Text Preview
Competitive Advantage of HLL
1. Strong well-established brands
2. Local manufacturing capacity and supply chain
3. Vast sales and distribution system
Challenges in sustaining the competitive advantage
1. The unorganized and scatter character of the Indian market

HLL Sales Organization based on Product Categories and Geography

Flow of goods
Goods produced in factoryDepot(Carry Forward Agent) Redistrbution

* More than one stockiest can be there in a large town
* Stockist sell to retailers and wholesellers


* HLL has four regional offices in Delhi(North),Kolkata(East),Mumbai(West),Chennai(South) * The regional offices are managed by a regional manager
* Each profit centre has sales force in each region
* Each profit center has the following hierarchy: 1. General Sales Manager(GSM) 2. Regional Sales Manager(RSM) 3.Area Sales Manager(ASM) 4.Sales Officer and Territory sales-in-charge(SO & TSI) * Sales officer managed 6 to 7 TSI. Each TSI managed 6 to 7 stockists.

Shortcomings of the structure
* Inappropriate for the small market. Population and potential business small did not justify the existence of stockist for each profit center. * Difference in scale of the contract that the ASM of HLL would make with the franchisee of a retail outlet and HLL would make with the retail chain throughout India. Called for a more evolved structure

HLL redesigned its Sales And Distribution System, internally called it the Diamond Structure

Features of the Diamond Structure
* top end of the diamond represented modern trade encompassed self-service stores and retail chains, and accounted for about 10% of the overall FMCG market. * middle and largest part of the diamond, profit-center-based sales teams continued to cultivate, penetrate, and grow markets. * The bottom end of the diamond represented direct distribution in rural markets and accounted for about...
tracking img