Hul Gsk Interview_madurai.docx

Interview Location: Thirunagar, Madurai Insights from interaction with Super markets (Self-service format): Product Portfolio: HUL Food and Refreshments: Knorr, Bru, Brookebond, Kwality Walls Personal Care: Dove, Lifebuoy, Sunsilk, Ponds, Pepsodent, Fair&Lovely, Closeup, Pears, Ayush Lever Home Care: Comfort, Surf, Rin, Vim

GSK Oral Care: Sensodyne toothpaste and brush Refreshments: Horlicks, Junior Horlicks, Boost OTC: ENO

Distribution Channel: HUL Single distributor is responsible for supplying all 3 categories (Food, Personal and Home Care) in a particular area

GSK Single distributor takes care of all the categories

Distributor pushes set of SKUs across all three categories Eligible for display incentives

No such push to stock standard set of SKUs. Only fast moving SKUs are stocked Eligible for display incentives

Retailer Servicing: HUL Distributor Salesman specific to Food/Personal care/Home care visit retail stores and take orders separately on alternate days Order frequency: Once in every week Supply lead time: 1 day

GSK Single Distributor Salesman visits retail stores and takes order for oral care, refreshment, OTC categories together Order frequency: Once in every week Supply Lead time: 1 day

Service Quality: HUL Owing to a very broad product portfolio, order fulfillment is low Distributor salesman specific to 3 categories visit on different days of the week. These salesmen take orders for other category products in case of immediate requirement. Hence, the retail outlets are serviced 3-4 days a week

GSK Order fulfillment is higher than HUL Retail outlets are serviced once in a week. In case of any immediate requirement, distributor takes order on call and supplies the next day

Key Insights:  

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Super Markets were predominantly stocked with larger SKUs; Sachet variants of Shampoos, Horlicks, Fair&Lovely were not stocked Lower order fulfillment is a big cause of concern for HUL products. With a very large variety, order fulfillment of ~75% was observed in 2 super markets chosen for interview When retailers were posed with the question of if they would prefer merging of distribution network of HUL, GSK the response was negative. Retailers felt that merging of distribution networks would further increase the variety and bring down fulfillment There is a huge opportunity to display GSK’s Horlicks sachets in super markets Horlicks was displayed adjacent to HUL’s refreshment brands like Bru, Brookebond Oral care and personal care brands are displayed adjacently Sensodyne was given prominent display among other oral care brands

Insights from interaction with Drug Stores: Product Portfolio: HUL Personal Care: Pepsodent, Vaseline, Lifebuoy

GSK Oral Care: Sensodyne toothpaste and brush Refreshments: Horlicks, Junior Horlicks, Boost OTC: ENO, Crocin

*Sachet form of Horlicks was not stocked Distribution Channel: HUL Single distributor takes order for all personal care products

GSK Single distributor takes care of all the categories

No push to stock standard set of SKUs

No such push to stock standard set of SKUs. Only fast moving SKUs are stocked Eligible for display incentives

Retailer Servicing: HUL Distributor Salesman specific to Personal care visits drug stores and take orders Order frequency: Once in every week

GSK Single Distributor Salesman visits drug stores and takes order for oral care, refreshment, OTC categories together Order frequency: Once in every week

Supply lead time: 1 day Order fulfillment is high

Supply Lead time: 1 day Order fulfillment is high

Key Insights:       

Standard Horlicks is the top fast moving drink in drug stores followed by Horlicks Lite and Junior Horlicks. Women and Mother’s Horlicks sales is relatively week. Horlicks is one of the most trusted drinks brand and nourishment supplement. Classic malt flavor followed by Chocolate are widely preferred Heavy marketing push is essential for relatively weaker brands like Boost, Women, Mother’s Horlicks Viva, Maltova were not stocked in any of the drug/super markets in the locality GSK’s food/ personal care distribution network is stronger than HUL with respect to drug stores Sensodyne sells more than Pepsodent/Close up in drug stores, due to the unique brand positioning – doctor recommended remedy for teeth sensitivity When HUL gets access to GSK’s strong distribution network of drug stores, HUL can accelerate display of its products focusing on personal/home hygiene/Ayurveda – Lifebuoy, Surf, Ayush Lever, Comfort, 3 Roses Natural in sachet form in such stores