Purvita Chatterjee

Mumbai, July 29 By targeting modern trade as a significant channel of distribution, HUL claims that today seven per cent of its turnover comes from this channel. While the urban general trade accounts for the bulk 60 per cent of turnover, the balance of 33 per cent comes from the rural outlets.

Appointing national key account managers across the country, HUL currently reaches its products across 4.5 lakh modern trade outlets. Having forged a joint venture with the Smollan Holdings of South Africa, HUL is now looking at building long term capabilities and bring in -store execution focus in servicing the company’s modern trade customers.

At the same time, HUL is also beefing up its out-of-home distribution channels by setting up vending machines for tea, coffee and soup brands. “We would be setting up these vending machines even within the modern outlets very soon and sales distribution through the out-of-home channel is going to become significant for the company in terms of directly reaching out to its customers,” stated an HUL National Key Account Manager.

Beverage brands such as Bru, Lipton and now soup brand Knorr will be added to its vending portfolio. In fact, some of the brands such as Bru Coffee will have freshly ground coffee as an added flavour as part of its vending distribution operations.

Importing high-end machines for its vending operations, HUL is now seeking to use this distribution method to build additional equity for its beverage brands.

“Considering the FMCG behemoth has been losing volume share in certain categories such as tea, its presence in modern trade through an alternate vending route might help the company in catching up in share,” observe analysts.

At the same time, HUL has been doling out programmes for its existing wholesalers and distributors. For instance, it has started the ‘Vijeta- Rishta Jeet Ka’ scheme last year to provide a platform for the wholesaler and HUL to grow the business by earning points and redeeming them.

Besides, it has also started the concept of Super Value stores to partner traditional stores to provide a range of services ranging from managing their inventory to setting up POS (point of sale) banners.

It has also set up the Unicare scheme with upmarket pharmacies and retailers to vend its premium brands.

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