A Comparative Study of Distribution Channel of HUL and P & G

PROJECT SYNOPSIS

Faculty of Management Studies

10/5/2012

Submit By : MBA FT :

Hemant Meena 103

A Comparative Study of Distribution Channel of HUL and P & G

TABLE OF CONTENTS Title of the Project ................................................................................................................. 1 Introduction ............................................................................................................................. 1 Literature Review.1 Objectives .................................................................................................................................. 2 Research Design & Methodology ...................................................................................... 2 Expected Outcome ................................................................................................................. 2 References..2

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A Comparative Study of Distribution Channel of HUL and P & G

Title of the Project

A Comparative Study of Distribution Channel of HUL and P & G

Introduction
Hindustan Unilever Limited (HUL) and Proctor & Gamble (P&G) are the market leaders in the FMCG sector. Both the firms have diversified portfolio of products, successfully selling in the market. Thus, maintaining an efficient distribution channel so as to make the products available to the customers is a serious matter of concern for both the FMCG giants.
Both HUL and P&G have products in Health Care and Nutrition, Personal Care, Food and Beauty segments. Thus, though having similar portfolio of products and competing in the same market and having similar target segment of customers, both the firms follow different distribution strategies for different products. The aim of this product is to analyze the distribution channel for both the firms, and thereafter perform a comparative study for analyzing the difference between the distribution channels used by HUL and P&G.

Review of Literature
ShareGyan.com NewsDesk, January 9, 2009 HUL ready to streamline distribution network Hindustan Unilever Ltd (HUL), the countrys largest household and personal care products maker by sales is increasing its so-called go to market (GTM) initiative, introduced in Mumbai last year, in an attempt to refurbish its national distribution network and streamline its supply chain. HULs GTM initiative in Mumbai was aimed at rationalizing its distribution network, make it more proficient, deliver stocks to retailers faster and reduce inventory on their product shelves. It farmed out the task of stock deliveries to logistics provider Mahindra Logistics as part of the Mumbai project. Sai Prasanna Ragu, Muthu Kumar R, IBS Case Development Centre, 2008 P&Gs Logistics Revolution: Co-creating Value Proliferation of products, brands, companies and even distribution channels and media have necessitated consumer goods industry giants to shift their attention from brand marketing and positioning towards a cross-functional focus. While manufacturers vied for significant shelf space, retailers competed for winning customer attention and loyalty. However, their inability in rightly assessing consumer demand created market imbalance in the form of either excessive stocks or stock outs. The need to produce and deliver goods based on real demand made both manufacturers and retailers rethink/review their business relationships and co-create value for each other. This involved integration of their operations across the supply chain and delivery of the rights goods to the right place at the right time with the right operational costs. Page | 1

A Comparative Study of Distribution Channel of HUL and P & G

Objectives
To study the Sales and Distribution network of HUL and P&G in India To understand the Role of distribution channels of HUL & P&G. To analyze the issues creating problems in Sales and Distribution Channel. Recommend the possible solutions for the distribution channel

Research Design & Methodology

The research design and methodology would primarily involve the specification of various procedures to make decisions regarding: Identification of relevant Information to be collected Data collection Primary information required for comparing the distribution channels of HUL and P&G will include collecting information about the channels from retailers and identification of various factors which influences the retailers to switch between different channels and problems associated with every channel.
Primary Research The first step would be to conduct interviews with retailers and distributors. They would cover various parameters like on-time delivery, fulfillment of orders, sales promotion schemes etc. from retailers point of view. Secondary Research It includes browsing online through various journals, articles, magazines etc.

It will include designing the appropriate scales (Nominal, Ordinal, Interval and Ratio) to measure the various variables that will help in comparison of Distribution Network of HUL and P&G.

Expected Outcome
The expected outcome would help me in gaining insights about the sales and distribution channel of two FMCG giants HUL and P&G. Research will help new comers to know market position in respect to its competitors. Know the ways to improve distribution channel and brand positioning. This project will help the company to identify its core competencies. This project work will show the competitor analysis, strategic gap analysis to the company about their various products.

References
1. http://www.ibscdc.org/Free%20Cases/MM0030-1.pdf

2.

http://www.sharegyan.com/market-news/09-01-2009/hul-ready-to-streamline-distributionnetwork-001618.html

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