12Jun27-FC-Perfect-stores-add-zing-to-HUL's-sales-growth_tcm114-289918.pdf
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Perf ect stores a d d zing to HUE s sa les grow th Firm doubles network by adding 500,000 outlets in FYl 2 M eghna A A aiti Mu mb ai HINDUSTAN Unilever (HUL) added 500,000 re- tail outlets in the financial year 2011 12, doubling its ‘perfect stores’ network. The move aims to improve availability and visibihty of company’s products at the point of purcha se. Project ‘perfect stores’ is the world’s biggest consumers connect initiative in the Unilever family to raise the Indian arm’s falling market. “ It is now established that stores which are consistently perfect witnessed growth in sales well ahead of average retail growth and had higher market share in growth for HUEs ove rall portfolio ,” an HUL spo kes pers on told Fi nancial Chronicle. HUL has been facing a stiff fight ft’ om its g lob al archrival Procter & Gamble in addition to home- grown firms such as Dabur, ITC and Godrej Consumer in the battle for India’s bur- geoning consuming class. After the expansion, the Indian subsidiary of the Anglo Dutch MNC now has POINT OF PURCHASE: The stores account for more than 90 per cent of HUUs turnover from the retail outlets channel 1,100,000 ‘perfect stores’ which together account for more than 90 per cent of HU Es turnover fr om t he re- tail outlets channel. The re- tail channel delivers the biggest share of sales and profits for HUL. By upg rad- ing conventional retail out- lets to perfect stores, HUL hopes to allow them to compete with retail outlets. Perfect stores deliver higher sales and market shares than the average store s. Project iQ, which uses sophisticated analytics to reach out to these stores, won the 2011 Global Unilever IT Award for ‘re- leasing the power of infor- mation’. “This programme has been supported by so- phisticated an^ytics (Project iQ) which has helped our sales force to drive better ex- ecution and higher through- puts in stores. More impor- tantly, it has helped us im- prove our overall service lev- els by 260 b asis points during the year, with an even sharp- er improvement of 400 b asis points in modem U a de ,” said Harish Manwani, chairman of HUL said in a letter to the shareholders for 2011 12. Perfect stores have a standardised look and feel with set plans for fixtures and products and display. HUEs experience shows a neat, segmented arrange- ment of similar products helps boost sales by 30 per cent of a store since 70 per cent of purchase decisions are made on the spo t. “This is a good move by the com- pany to increase breadth and penetration of its stores, make it m ore efficient, deliv- er stocks faster and reduce inventory on product shelves,” said Jagdeep Kap oor, chairman and man- aging director of Samsika Marketing Consu ltants. meghnamaiti @mydigitalfc.com Financial Chronicle - Mumbai Wed, 27 Jun-12 Pg# :6 Size : 322 s q.cm.
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Transcript of 12Jun27-FC-Perfect-stores-add-zing-to-HUL's-sales-growth_tcm114-289918.pdf
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Perfect stores add zing to HUEs sales growthFirm doubles network by adding 500,000 outlets in FYl 2M eg h n a AAaitiMumbai
HINDUSTAN Unilever (HUL) added 500,000 retail outlets in the financial year 2011-12, doubling its perfect stores network. The move aims to improve availability and visibihty of companys products at the point of purchase. Project perfect stores is the worlds biggest consumers connect initiative in the Unilever family to raise the Indian arms falling market.
It is now established that stores which are consistently perfect witnessed growth in sales well ahead of average retail growth and had higher market share in growth for HUEs overall portfolio, an HUL spokesperson told Financial Chronicle. HUL has been facing a stiff fight ftom its global archrival Procter & Gamble in addition to homegrown firms such as Dabur, ITC and Godrej Consumer in the battle for Indias burgeoning consuming class.
After the expansion, the Indian subsidiary of the Anglo-Dutch MNC now has
POINT OF PURCHASE: The stores account for more than 90 per cent of HUUs turnover from the retail outlets channel
1,100,000 perfect stores which together account for more than 90 per cent of HUEs turnover from the retail outlets channel. The retail channel delivers the biggest share of sales and profits for HUL. By upgrading conventional retail outlets to perfect stores, HUL hopes to allow them to compete with retail outlets.
Perfect stores deliver higher sales and market shares than the average stores. Project iQ, which uses sophisticated analytics to reach out to these stores, won the 2011 Global Unilever IT Award for releasing the power of information. This programme has been supported by sophisticated an^ytics (Project
iQ) which has helped our sales force to drive better execution and higher throughputs in stores. More importantly, it has helped us improve our overall service levels by 260 basis points during the year, with an even sharper improvement of 400 basis points in modem U-ade, said Harish Manwani, chairman of HUL said in a letter to the shareholders for 2011-12.
Perfect stores have a standardised look-and-feel with set plans for fixtures and products and display. HUEs experience shows a neat, segmented arrangement of similar products helps boost sales by 30 per cent of a store since 70 per cent of purchase decisions are made on the spot. This is a good move by the company to increase breadth and penetration of its stores, make it more efficient, deliver stocks faster and reduce inventory on product shelves, said Jagdeep Kapoor, chairman and managing director of Samsika Marketing Consultants.
Financial Chronicle - Mumbai Wed, 27 Jun-12 Pg# :6 Size : 322 sq.cm.
Perfect stores add zing to HUEs sales growth
Firm doubles network by adding 500,000 outlets in FYl 2
