Hindustan Unilever Limited`s Channel Design Decisions to Penetrate Inaccessible Markets

Code : MM0080

Year :
2020

Industry :FMCG

Region : Asia

Teaching Note:Available

Structured Assignment :Not Available

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Abstract: This case describes the channel design adopted by Hindustan Unilever Limited (HUL) to reach inaccessible markets. In 2003, HUL had changed its strategy toward rural markets to arrest the degrowth in sales. As against its earlier strategy of each business division dealing with the rural market on an individual basis, the multinational adopted a single organizational-push approach to achieve greater penetration and sales.

HUL planned to reach 235,000 villages, up from 85,000 villages in 2003. It planned to reach villages with a population of less than 2,000. This would help the company penetrate deeper into the market, which would eventually lead to better sales. The case explores how channel design decisions are taken, the various steps to be followed in the channel design process, and the decision to be made in every process. The case can be used to illustrate the channel design process, and to identify and evaluate major channel alternatives. It also gives ample scope to discuss the criteria used to select a good distribution channel.

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Pedagogical Objectives:

  • To identify the requirements for channel design.
  • To understand how to establish channel objectives and constraints based on consumer need.
  • To explore and evaluate various channel alternatives available .


    Keywords : Rural market; Project Shakti; Inaccessible Rural Markets; Indirect Coverage Distribution Model; Direct Coverage Model; Project Streamline; Rural Distribution Model; Distribution Network; Sales Channel design

    Contents :
    » INTRODUCTION
    » A NOTE ON HUL
    » HUL’S DISTRIBUTION NETWORK IN DIFFERENT PHASES
    » HUL’S RURAL DISTRIBUTION MODEL
    » CHANNEL DESIGN FOR INACCESSIBLE RURAL MARKETS
    » LAST MILE CHALLENGES IN INACCESSIBLE MARKETS
    » EXHIBITS


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