Hindustan Unilever Limited [HUL]

Abstract

The project is titled as Improving the ROI for Bangalore Metro Distributors and was done for HUL Bangalore. In the changing landscape with the growth of ecommerce business, the GT channel sales growth have slowed down while the cost of servicing the market is continuously increasing. This has severely affected the profitability for a GT distributor which requires us to evaluate different levers to grow sales and reduce his cost of operations with optimal investment In the project I was assigned to work on SRI RAMNATH DISTRIBUTER. I have calculated their average ROI. Benchmarked it with other similar Distributors and compared them to the distributor to understand the comparative performance in each cost and investment levers. In order to look at improving their efficiency in sales and assortment, I analysed the channel wise performance to find which channel were showing the most degrowth in the last 2 years. I further looked at various execution metrics to find where these degrowing channels can improve. The several execution metrics used were Total assortments, Service Mix, Bills Productivity and Basepack Analysis. I also classified the outlets into value buckets in terms of their monthly sales and created a list of focus outlets which are causing the most losses. Finally I concluded that if the required changes are made for the focus outlets their can be a good amount of increase in the ROI (Approx. 1.4%)