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HLL initiates pilot project to book orders online 

Namrata Singh  
Mumbai, January 7: A pilot project initiated by FMCG-major Hindustan Lever Ltd (HLL) in Delhi, providing sales representatives with hand-held terminals to stock data, may well be the igniting point for the multinational's move towards e-commerce.

Says HLL general sales manager (personal products) Sanjiv Kakkar: ``We plan to replicate the pilot project to cover six major metro cities by the end of 2000.'' The idea is to book orders online with connectivity at the stockist level where data can be downloaded.

The pilot project is being conducted by the personal products division of HLL. The company has 250 SKUs of personal products in the metro towns.

According to Kakkar, HLL's other businesses such as soaps and detergents would eventually piggy-back on this set-up of the PP division when the corporate finally kicks of e-commerce activities such as B2B and B2C.

Meanwhile, HLL has launched a unique customer loyalty programme - Personal Products Prestige Club - to strengthen its relationship with key retailers.

It has tied up with Citibank to issue co-branded Citibank-HLL credit cards to key retailer outlets. As part of the Prestige Club, 200 retailers have been picked up in Mumbai.

By providing these key retailers with HLL-Citibank credit cards, the company has initiated the process of moving money electronically - another positive step towards e-commerce. Kakkar, however, said that it is still a while till the company finally initiates e-commerce activities.

The aim of the HLL-Citibank card is to give credit to retailers in terms of Prestige Points against activities run. Retailers can redeem these points against their credit card purchases. The credit card will have benefits relating to life and household insurance worth Rs 5 lakh and Rs 50,000 each, access to ATMs and access to Citibank's tie-up with vendors for special discount offers.

Says Kakkar, ``We plan to take this initiative to five other metro cities to enroll about 15,000 retailers in the Prestige Club by the end of 2000. These should contribute 45-50 per cent of HLL's total personal products turnover in these six metro cities.''

A third of HLL's personal products turnover comes from these six metro cities. ``We expect the personal products business in these metros to grow at 1.25 times the company's overall growth,'' said Kakkar. About 10 per cent of the retailers contribute about 30-45 per cent of HLL's personal products business. The balance 90 per cent of the retail trade-about 4,00,000 outlets- has a fragmented share.

HLL aims to recognise these retail outlets and focus on these through initiatives such as the Personal Products Prestige Club.

The company is also taking the initiative to beef up its merchandising at retail outlets to increase consumer loyalty. The company has roped in third party merchandisers to improve the visual impact at the retail end.

Highlighting this at a special dealer meet organised by HLL here on Friday, the company said that it would shortly relaunch leading shampoo brand Clinic All Clear. The relaunch will be accompanied by a special consumer lottery scheme.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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