hll case study

Download HLL Case Study

Post on 06-Apr-2015




1 download

Embed Size (px)



Identification of Problem High cost structure of HLL Unable to tap much of market in economy and popular segment of the detergent market Doesnt pay much importance to its ice cream and beverages business Small growth in soaps and detergent market on YoY basis

Understanding of Problem HLL cost structure is high due to high overheads and stringent quality parameters. HLL is leader in Premium brand detergents which constitutes only 2% of the total detergent market volume, remaining market ( popular and economy segment) which constitutes 98% of total detergent market is being tapped mostly by Nirma and unorganised sector.

Solutions to problem Do market research to know the reasons of lesser sale of its product in ice cream and beverage market To know reasons of small growth in its soaps and detergent market on YoY basis. To produce more products for economy and popular segment of the society. Upgrading consumers through innovation to new levels of quality and performance

Merits Consumer understanding and systems for building consumer insight. Distribution structure with wide reach, high quality coverage and ability to leverage scale Integrated supply chain and well spread manufacturing units Use of RSNet Penetrating into rural areas Giving employment to SHG Its well organised workforce

Demerits Competitors focusing on a particular product and eating up HLLs share, like Nirma focusing on soaps and detergents

Innovative Thinking To enter untapped market in branded Ayurvedic medicines and other such consumer products. Emerging Modern Trade can be effectively used for introduction of more upscale Personal Care products Opportunity in Food sector: changing consumer tastes

1.What kind of sales organization should HLL design for the current market

2.What factors should be taken into account while evaluating the performance of the distribution channel in providing support through sales force? Transportation Railways, Roads ,Waterways, Animals Communication ITC using internet, Mobile users Warehousing Central/State Warehousing , Cooperatives , Rural Godowns Market factorscompetitors, geography, Economy. Product factorslife cycle, size & weight, product value, consumer perceptions, product complexity. Manufacturer factors- company objective & Resources, Desire for control,Breadth of product life. Organization objectives mass appeal and rapid marketing. buying habit of customers- Understanding consumer needs and criteria for buying Channel Availability Channels may not be available

DISTRIBUTION DECISIONActivities involved in making products available to customers when and where Institutiona they want to purchase them. lPhysical


3.What kind of Sales organization HUL should develop for Rural India




MARKETING STRATEGIES OF HUL FOR RURAL INDIA Direct Coverage: HUL appointed a common stockist to service all outlets within a town and sell a limited selection of the brand portfolio. Towns consisted of populations of under 50,000 people. Indirect Coverage: HUL targeted retailers in accessible villages close to larger urban markets. Retail stockists were assigned a permanent route to ensure that all accessible villages in the vicinity were served at least once a fortnight. Streamline: Streamline leveraged the rural wholesale channel to reach markets inaccessible by road. Star Sellers were appointed among wholesalers in a particular village. Star Sellers would purchase stock from a local distributor and then distribute stock to retailers in smaller villages using local means of transport (e.g. motorcycles, rickshaws). Project Shakti: Project Shakti targeted the very small villages (