The corporate objective of HLL is “to meet the everyday needs of people everywhere”. This is met through an extensive distribution system that covers the diverse geographical boundaries of the country. This caselet gives an insight into the measures taken by HLL to extend its distribution system and create special channels for specific products — like Lakmé Beauty parlors for its beauty products. It also discusses the rural distribution channels of HLL under Project Shakti.
Issues:
» Need for extending beyond traditional distribution
» Role of internet in servicing dealers and customers
» Relevance of product specific channels of distribution
Introduction

Hindustan Lever Ltd (HLL), one of India’s leading companies in the fast moving consumer goods (FMCG) sector, sold products that spanned home and personal care products, soaps and detergents, industrial and agricultural products, food and beverages…    
Questions for Discussion:
Despite having an extensive distribution channel that served to “meet everyday needs of people everywhere,” HLL’s profits have been declining. Where do you think HLL has gone wrong? What can it do to improve its market position?
HLL has introduced specially designed products at affordable prices to tap the rural sector. Discuss in detail the initiatives taken by HLL to improve distribution in this context. Suggest some other measures it can undertake to strengthen its position in this segment.