Professional Documents
Culture Documents
Sales Channels
Sales Channels
Declaration:
I declare that this assignment is my individual work. I have not copied from any other
student’s work or from any other source except where due acknowledgment is made
explicitly in the text, nor has any part been written for me by another person.
Student’s Signature
Evaluator’s comments:
_____________________________________________________________________
DISTRIBUTION/SALES CHANNELS
When we look at the overall distribution network of HUL, it is the key strength of the
company. As it helps in supplying the products from Srinagar to Kanyakumari in the country.
Each business of HUL portfolio has customized the network to meet the objectives. Through
4,000 redistribution stockists HUL’s products are distributed which covers 6.3 million retail
outlets reaching the entire urban population, and about 250 million rural consumers. And also
there are 40 C&FAs in the country who feed these redistribution stockists regularly. The
company has developed customer management and supply chain capabilities for partnering
emerging self-service stores and supermarkets. HUL’s 40 manufacturing plants are
decentralized across 2 million squares miles of territory and they are being served by 2,000
suppliers and associates.
HUL reaches to the rural India through 6,000 sub-stockists to 50,000 villages finally to 250
million consumers. The accessibility and viability were the two criteria through which HUL
approached the rural market. It assigned a sub stockist who was responsible to access all the
villages at least once in a fortnight. The company also uses the wholesale channel, suitably
incentivising the retailers to distribute company products.
The distribution in the urban areas is done differently from the rural areas. The distribution of
goods from the manufacturing site to C & F Agents takes place through either the trucks or
rail road’s depending on the time factor for delivery and cost of transportation. And from the
C&F Agents the goods are transported to the retail stores by means of trucks and the products
finally make the ‘last mile’ based on the local popular and cheap mode of transport to reach
to the retail stores.
New Distribution Channels
Project Shakti
This model creates a symbiotic partnership between HUL and its consumers. This project has
enabled HUL to access 80,000 villages out of 638,000 villages. They had tied up with Self
Help Groups of rural women, which helped the company to extend its operations in rural
hinterlands. These SHGs women are also called “Shakti Amma”, and these get the stocks
from the rural distributor.
The revenue generated by the rural market is 60% of the overall revenue of the company and
the revenue generated by the urban market is 40%. So, we can say that the highest sales are
generated by the channels used for the rural market.
The company cannot emphasize more on the channels used in urban areas as the market is
more saturated. But the company can develop more channels to tap the rural markets by
targeting the bottom of pyramid. As we know that 80% of expenditure on advertisement is
done in the rural areas, and in the urban areas only 20% is spent on the advertisement. So, the
company has to emphasize on the rural channels.
Service Selling Company
In Service selling company we are taking Bajaj Allianz Life insurance company .ltd
Allianz entered India by setting up a liaison office in 1996. Subsequently, Allianz has set up
two joint ventures companies in India and is currently present in the Life and General
insurance business. The joint ventures are with Bajaj Auto Ltd, India’s lending two and three
wheeler manufacturer. Bajaj auto hold 74% and the remaining 26% is held by Allianz,
Germany company’s activities in India include Life and General Insurance and Risk
management.
BALIC (Bajaj Allianz Life Insurance Company) used Multi-Distribution Channels for
selling their Product mix.
BALIC has a large network in the market with over 213,000 Licensed agents. And this
distribution channel play very important role in the sales contribution for the company and
this is the channel for which the company gains or takeout maximum sales.
BANCASSURANCE:
The second very important sales distribution used by the company is Bancassurance in which
they Tie-up with 2 major scheduled banks around 170 Co-operative banks and regional rural
banks. Like Standard Chartered Bank, Syndicate bank and Jankalayan Shakari Bank etc
The company used this type of distribution channel to capture or target the maximum people
and this is the only way the company can reach to rural people by tie up with Regional Rural
banks.
Alternate Channels:
The third very important distribution channel used by the company is alternate channels in
which the company have tie-up with more than 300 Corporate Agents, 150 brokers And 3100
franchisees.
The company also introduced Online Selling and many of the retail product are available
online thus increasing the customer reach.
The above discuss distribution channel, the Agency channel and Agent will contributing
more to the sales of the product of a company.
My suggestion to the company for increasing the sales other than highest sales generator
channel is that company go for knops in the villages where the sales people tell the people the
importance of insurance in their life and make aware to the people regarding their product.
The another suggestion is that company make tie –up with different –different company for
selling their product .like as we all know that in the company the employees are come in the
income tax slab for this they go for different saving schemes so in that what company what
can do is that company have already tie –up with the company and the sales people only give
presentation regarding their product in front of the employees and give them the best choice
which is according to the need and preferences of the employees and which can solve the
problem of their income tax also and satisfy their financial securities need also.
The Agency channel and Agent contributes maximum to the sales of the product of the
company.
For increasing the sales other than highest sales generator channel is that the company go for
knops in the villages where the sales people tell the people the importance of insurance in
their life and make aware to the people regarding their product.