Escolar Documentos
Profissional Documentos
Cultura Documentos
Distribution
Of
MET
5. Conclusion 15
6. Recommendations 16
The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$13.1 billion. Well-established distribution networks, as well as intense competition
between the organised and unorganised segments are the characteristics of this sector.
FMCG in India has a strong and competitive MNC presence across the entire value chain. It
has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $
billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the
most promising market for FMCG, and give brand makers the opportunity to convert them to
branded products. Most of the product categories like jams, toothpaste, skin care,
shampoos, etc, in India, have low per capita consumption as well as low penetration level,
but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well.
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by
MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and
27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up.
Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle
(9). These are figures the soft drink and cigarette companies have always shied away from
revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in
FMCG. Between them, they account for 35 of the top 100 brands.
The market growth over the past 5 years has been phenomenal, primarily due to consumers’
growing disposable income which is directly linked to an increased demand for FMCG goods
and services. Indeed, it is widely acknowledged that the large young population in the rural
and semi-urban regions is driving demand growth, with the continuous rise in their
disposable income, life style, food habits etc. On the supply side, the wide availability of raw
materials, vast agricultural produce, low cost of labor and increased organized retail have
helped the competitiveness of players.
While a price hike and cost-cutting were the first lines of defense in a bid to protect margins,
Indian manufacturers were able to let logic rather than bottom lines dictate measures, with
increased marketing efforts, a well-thought product mix and new launches helping them
emerge unscathed from the turmoil. The prospects going forward also remain promising.
The Company was incorporate in 1933, but the products of the company are sold in India
since 1888. The company has always operated with the belief that “What is Good for India is
good for HUL”.
HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer
goods with strong local roots in more than 100 countries across the globe with annual sales
of about €40 billion in 2009 Unilever has about 52% shareholding in HUL.
Hindustan Unilever was recently rated among the top four companies globally in the list of
“Global Top Companies for Leaders” by a study sponsored by Hewitt Associates, in
partnership with Fortune magazine and the RBL Group. The company was ranked number
one in the Asia-Pacific region and in India.
The mission that inspires HUL's more than 15,000 employees, including over 1,400
managers, is to help people feel good, look good and get more out of life with brands and
services that are good for them and good for others. It is a mission HUL shares with its
parent company, Unilever, which holds about 52 % of the equity.
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company,
touching the lives of two out of three Indians with over 20 distinct categories in Home &
Personal Care Products and Foods & Beverages. The company’s Turnover is Rs. 17,523
crores (for the financial year 2009 - 2010)
Business Presence
• Home and Personal Care (HPC) – Personal Wash, Oral Care, Skin Care,
Hair Care, Fabric Wash, Household Cleaning, Deodorants, Color Cosmetics
and Beauty and Wellness Service.
• Food and Beverages (F&B) – Tea, Jam, Flour, Sauces, Soup, Coffee, Ice
Cream, Bakery Products, Salt and Recipe Mix.
“To earn the Love and Respect of India, by making a real difference
to every Indian.”
REDISTRIBUTION STOCKIST
U1 and U2
The Stockists of the company are classified as U1 and U2 stoskist on the
basis of the product that they stock. U1 are the once who generally stock
products like Surf and Ponds whereas the U2 are the once who deal with
high profile products from HUL like Lakme and Dove. Stockist in HUL
system are refferd as Re Stockist (RS). The stockist is appointed for a
particular region of the city. Each stockist caters to around 700-900
Retailers in his area and then these retailers provide goods to the
Customers.
Project Shakti
HLL has come up with a unique and successful initiative wherein the
women from the rural sector market HLL products, and hence, are able to
reach the same wavelength as of the common man in village.
Process
Process
Launched in 2001