Business Case Studies,Marketing Strategies Case Study, Reliance JIO: Leadership Strategy in the Indian Telecom Sector

Code : MM0080 Year :2020 Industry :FMCG			Region : Asia Teaching Note:Available Structured Assignment :Not Available
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HUL’S DISTRIBUTION NETWORK IN DIFFERENT PHASES: In the first phase of distribution, HUL sold its products directly to wholesalers and key retailers; there was no concept of a company distributor/dealer. The wholesaler’s salesman went to the market and took orders from retailers on a weekly or fortnightly basis. In the evening, the salesman gave the order details to the wholesaler. The next day, the delivery boys went to the market to deliver the order and collect money from the retailers. They then gave the money to the wholesaler...

HUL’S RURAL DISTRIBUTION MODEL When it came to the rural distribution model, HUL modified it from time to time based on its changing requirements (Refer to Exhibit III for various channel options adopted by HUL for rural market). Before making any change in its distribution model, HUL evaluated its distribution model based on market coverage and the profitability of channel partners. Some of the rural distribution models adopted by HUL were..

CHANNEL DESIGN FOR INACCESSIBLE RURAL MARKETS HUL was looking for better channel options to increase penetration in markets with a population of below 2,000 which were inaccessible. The company aimed to provide good coverage in a cost-effective manner. As the market was scattered, it was difficult for HUL to increase coverage while keeping costs low..

LAST MILE CHALLENGES IN INACCESSIBLE MARKETS Analysts opined that in villages, the direct coverage model would not be cost-effective due to low sales volumes. Therefore, HUL should focus on increasing sales volumes to reduce costs. K. S. Ramesh, former head of CavinKare , said, “The model (Direct Coverage Model) is probably been forced from the West where there are far fewer outlets and so 100% reach is absolutely necessary.”.

EXHIBITS:
Exhibit I: HUL’s Gross Sales from 2001 to 2007 (in Rs. billion)
Exhibit II: Distribution Flow Charts of HUL
Exhibit III: Various Channel Options Adopted by HUL for Rural Market