Distribution Model in HLL

As mentioned in one of my post - i mentioned about distrubution model of ITC. Now its time to tell you guys the model for the second biggest FMCG in India, HLL.

Starting with Factory, then to C&F and finally to the Distributors. In HLL they are called RS - Redistribution. For rural markets, the distributors are called Streamline RS.

Lets start with RS. They supply stock to Wholesalers, Retailers and IDC (Indirect Coverage). IDC is something like a RBD (Rural Brand Distributor) in ITC. Now in case of Rural Distributor (Streamline RS), they supply stock to Star Sellers (in different towns). The Star Sellers covers markets between 2 and 50 K. They are like SCPs (Stock Carrying Point) in ITC.

Apart from that, they also have Shakti in place (Women Empowerment and Selling).

FMCG Product Categories

There are mainly 4 product categories in FMCG:

1. Home and Personal Care (Home Care and Personal Care)
2. Foods and Beverages
3. Cigarettes
4. Alcohol

These categories can be divided in sub categories. Lets take one by one:

1a. Household Care: It can be divided into the following categories

• Fabric wash - Laundry soaps and Synthetic detergents
• Household cleaners - Dish/utensil cleaners, floor cleaners, Toilet cleaners, Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish

1b. Personal Care: It can be divided into the following categories

• Oral Care - Toothpaste
• Skin Care - Creams, Lotions, Gellies
• Hair Care - Hair Oil, Shampoos
• Personal Wash - Soaps
• Cosmetic & Toiletries
• Talcums
• Deodorants
• Perfumes
• Paper Products - (tissues, diapers, sanitary)
• Shoe care

2a. Foods

• Confectionary
• Staples/ Cereals
• Bakery products - Biscuits, bread, cakes
• Snack food
• Chocolates
• Ice cream
• Processed fruits
• Vegetables
• Meat
• Dairy products
• Branded flour, rice, sugar

2b. Beverages

• Tea
• Coffee
• Juices
• Bottled water
• Health beverages
• Soft drinks

Fascination for FMCG - Part 1

A mother's feed is paramount for a newborn. But gradually, mother has to rely on nutritious food for the better health of her baby. Now, she is ready for a branded diet - a Ceralac. This is one of the first few experiences with FMCG which may have had happened to us.

At very stage of life, one is in constant touch with one or other FMCG brands. The first instance with FMCG in daily routine is a visit to bathroom to brush ones teeth. One is ready for a Colgate wash with an Oral-B brush. Other looking for freshness buy a Close Up. Now is time for my face, to remove a day long beard. Ready to wet the face, zip off the shaving kit to have access to Park Avenue shaving Cream & Gillette blades, to have a smooth shave.

Mother as her kid to use dettol soap to fight against the unwanted germs. The kid ask for a Horlicks in south India and Bournvita in North, before he sets off for a hectic day. Here the bells rings and everyone of them are set for Maggi Noodles Recess break or a Sunfeast biscuit. Now is the time for a Thanda break in summers. Some adventure freak guys love mountain Dew and others game for much like Coke. Standing in front of them are set of faculty members prefer an adult drink (non-bacha drink) - Thumps Up, taste the thunder. Here comes a lady faculty willing to consume not more than 1 calorie, goes for Diet Coke.

The experiences and touchpoints with FMCG brands end with an All Out or a Good Night - a ,mosquito repellent.

Everyone of us are linked with a portfolio of brands, which we consume every month. Consciously or unconsciously, we use these brands as vocabulary in our discussions. A few instances:

1. Confirming packets of Lays before leaving for an expedition
2. Comparison of Aashirwad and Shakto Bhog Atta (discussion in Kitis)
3. Royal Challenge vs Seagrams Scotch
4. Two smokers convincing each other their set of brands - Is Wills Classic superior than Gold Flake Filter Kings?

And the list is endless. Throughout the days we are connected to all these lovely brands.

EXERCISE
Just while reading this book, have a look in your surroundings and observe the portfolio of brands. Just make a list of FMCG brands. Now move in your surroundings and observe more closely - roads, gardens etc and make a new list.

After making this many of you will find that its actually difficult live without them. THATS THE POWER OF FMCG.