Distributor push and customer pull @ hul project report mba marketing

A STUDY OF DISTRIBUTOR PUSH AND CUSTOMER PULL IN HUL IN BELGAUM RURAL

Questionnaire (for retailer)

1. How long are you dealing with HUL products?

a) 1 to 2 year b) 2 to 4 year

c) 4 to 6 year d) More than 6 year

2. Which Category of HUL’s products you sell in your outlet?

a) Personal care b) Household care c) Beverages

d) All above 3 e) Other (please specify)

……………………………….

3. Which brands of FMC products you kept in your outlet other than HUL?

a) P&G b) ITC

c) WIPRO d) Specify if any

other………………………………

4. Rate the following FMCG brands w. r. t their push activities. (1-V-High,2-High,3-

Moderate, 4-Low, 5-V-Low)

a) P&G b) ITC

c) HUL d) WIPRO

5. What are the facilities, which the competitors provide which HUL does not?

……………………………………………………………………………………

…………………………………………………………………………………….

BABASAB PATIL Page 1

Name of the outlet : __________________________________________________

Proprietor : __________________________________________________

Address : __________________________________________________

Telephone : __________________________________________________


6. Indicate your view of HUL’s Push activities with respect to competitors.

FACTOR Very good Good Neutral Bad Worsta) Sales marginb) Lucky Drawsc) Stock supplyd) Gift offerse) Slab wise targetsf) Offersg)Schemesh)Trade Discounts

7. Rate the following factors which influence you in selling the products?

(1- Most important and 9- least)

a) Sales margin

b) Special Incentives

c) Stock supply

d) Gift offers

e) Lucky Draws

f) Slab wise targets

g) Trade discounts

h)Schemes

i)Offers

8. Does HUL provide you any special incentives for the shelf space that you provide

for their products?

Yes No

Specify if

any__________________________________________________________________



________________________________________________________________________

______

9Are you satisfied with the push activities offered by the HUL?

Highly Satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

10. What kind of Push activities do you expect from the company to increase your

sales?

________________________________________________________________________

________________________________________________________________________

____________

SIGNATURE WITH SEAL

Thank you

Sl No Contents Page No

1 Executive Summary 2

2 Retailing And Rural Market 4

3 Push And Pull 10

4 Introduction Of The Company 14

5 Hul Distribution Network 30

6 Article 39

7 Research Design 41



8 Data Analyses And Interpretations 46

9 Hypotheses 71

10 Finding 74

11 Suggestions 78

12 Conclusion 80

13 Bibliography 81

14 Annexure 83

TABLE OF CONTENTS



EXECUTIVE SUMMARY

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods Company,

touching the lives of two out of three Indians. HUL’s mission is to “add vitality to life”

through its presence in over 20 distinct categories in Home & Personal Care Products and

Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and

personal care, with brands that help people feel good, look good and get more out of life.

The Major Concurrent Project assigned me was A STUDY OF DISTRIBUTOR

PUSH AND CUSTOMER PULL IN HUL in Belgaum Rural. This project taken

up by me as a part of academic assignment to find out the attributes that affect the

Satisfaction and expectation of the Wholesalers, retailers and Consumers with respect

to the distributors functioning and also it will help distributor to know the attributes

that affect the sales.

PROBLEM STATEMENT : “A STUDY OF DISTRIBUTOR PUSH AND

CUSTOMER PULL IN HUL in Belgaum rural.”

MAIN OBJECTIVE OF THE RESEARCH:

To assess the Push and Pull activities for HUL

SUB OBJECTIVES:

To evaluate the present Push and Pull activities of major players in the market

To know the perception of the consumers.

To understand the special Push activities and Pull activities undertaken at HUL

company.

To assess the product awareness of consumers and retailers satisfaction and

expectations towards HUL.



METHODOLOGY:

Personal Interaction with TSI, RSP and interviews with retailer.

A research survey (using questionnaire) would be conducted.

*TSI- Territory Sales Inspector

RSP- Rural Sales Promoter

OUTCOME & BENEFITS OF THE STUDY:

This study would bring into light on the expectation of the Wholesalers, retailers

and Consumers with respect to the distributors functioning.

It will help distributor to take the necessary steps to improve the promotional

activities.

It will help distributor to know the attributes that affect the sales.

It will help company to reduce the distribution cost.

IT will help to know about the factors affecting the awareness of the products.

SCOPE OF THE STUDY:

My study is restricted to only Belgaum rural wholesalers (Vijeta), retailers and consumers.

The whole study and analysis is done to improve the push and pull activities as well as the

expectation of the Wholesalers, retailers and Consumers with respect to the distributors

functioning..



RETAILING

AND

RURAL MARKET



RETAILING AND RURAL MARKET

Retailing is very diverse and sometimes the edges start to blur with other type of

business. The word retail comes from the Old French retaille “to cut off”. So a

wholesaler or manufacturer sells bulk lots while the retailer is willing to sell off smaller

or individual pieces. Of course this definition only takes us so far because many

wholesalers also sell retail and many retailers also sell wholesale in larger lots.

Further, the common usage of retail is based more on whether the business deals directly

with the public. .

A local physical location is not even necessary for the definition of retail anymore now

that retailing and eBay selling can be retail businesses into themselves. The best

definition of retail might be any business whose product or service is made for, and

targeted to, the consuming public.

Visual merchandising in Retailing: -

Selling goods using visual stimuli is an old age practice, but with increasing growth of

retail industry, the art or arguably the science of visual merchandising has come to

occupy a newfound fancy. Marketers especially retailers, consider it as an inspirable part



of their overall branding effort. But even as it continues to grow, like all other branding

efforts, the understanding of its impact and effectiveness is still in its infancy.



What makes Rural Markets Attractive?

Rural Consumer Insights:

Rural India buys….

Products more often (mostly weekly).

Buys small packs, low unit price more important than economy.

In rural India, brands rarely fight with each other; they just have to be present at

the right place.

Many brands are building strong rural base without much advertising support.

Fewer brand choices in rural: number of FMCG brand in rural is half that of

urban.

Buy value for money, not cheap products

Some Myths:

Rural Market Is a Homogeneous Mass

Reality: It’s a heterogeneous population. Various Tiers are present depending on the

incomes like Big Landlords, Traders, small farmers; Marginal farmers: Labors, artisans.

State wise variations in rural demographics are present viz. Literacy (Kerala 90%, Bihar

44%) and Population below poverty line (Orissa 48%, Punjab 6%)

Disposable Income Is Low

Reality: Number of middle class HH’s (annual income Rs 45,000- 2, 15,000) for rural

sector is 27.4 million as compared to the figure of 29.5 million for urban sector. Rural

incomes CAGR was 10.95% compared to 10.74% in urban between 1970-71 and 1993-

94.



Individuals Decide About Purchases

Reality: Decision making process is collective. Purchase process- influencer, decider,

and buyer, one who pays can all be different. So marketers must address brand message

at several levels. Rural youth brings brand knowledge to Households (HH).

Why Different Strategies?

Rural markets, as part of any economy, have untapped potential. There are several

difficulties confronting the effort to fully explore rural markets. The concept of rural

markets in India is still in evolving shape, and the sector poses a variety of challenges.

Distribution costs and non-availability of retail outlets are major problems faced by the

marketers. The success of a brand in the Indian rural market is as unpredictable as rain.

Many brands, which should have been successful, have failed miserably. This is because,

most firms try to extend marketing plans that they use in urban areas to the rural markets.

The unique consumption patterns, tastes, and needs of the rural. Consumers should be

analyzed at the product planning stage so that they match the needs of the rural people.

Therefore, marketers need to understand the social dynamics and attitude variations

within each village though nationally it follows a consistent pattern. The main problems

in rural marketing are:

Understanding the rural consumer

Poor infrastructure

Physical Distribution

Channel Management

Promotion and Marketing Communication



Dynamics of rural markets differ from other market types, and similarly rural marketing

strategies are also significantly different from the marketing strategies aimed at an urban

or industrial consumer.

Strategies to be followed:

Marketing Strategy:

Marketers need to understand the psyche of the rural consumers and then act accordingly.

Rural marketing involves more intensive personal selling efforts compared to urban

marketing. Firms should refrain from designing goods for the urban markets and

subsequently pushing them in the rural Areas. To effectively tap the rural market a brand

must associate it with the same things the rural folks.

It can be done by utilizing the various rural folk media to reach them in their own

language and in large numbers so that the brand can be associated with the myriad rituals,

celebrations, festivals, “melas” and other activities where they assemble.

Distribution Strategy:

One of the ways could be using company delivery vans which can serve two purposes- it

can take the products to the customers in every nook and corner of the market and it also

enables the firm to establish direct contact with them and thereby facilitate sales

promotion. However, only the bigwigs can adopt this channel. The companies with

relatively fewer resources can go in for syndicated distribution where a tie-up between

non-competitive marketers can be established to facilitate distribution. Annual “melas”

organized are quite popular and provide a very good platform for distribution because

people visit them to make several purchases. According to the India n Market Research

Bureau, around 8000 such melas are held in rural India every year. Rural markets have

the practice of fixing specific days in a week as Market Days (often called “Haats’) when

exchange of goods and services are carried out. This is another potential low cost

distribution channel available to the marketers. Also, every region consisting of several

villages is generally served by one satellite town (termed as “Mandis” or Agri-markets)

where people prefer to go to buy their durable commodities. If marketing managers use

these feeder towns they will easily be able to cover a large section of the rural population.



Promotional Strategy:

Firms must be very careful in choosing the vehicle to be used for communication. Only

16% of the rural population has access to a vernacular newspaper. So, the audiovisuals

must be planned to convey a right message to the rural folk. The rich, traditional media

forms like folk dances, puppet shows, etc with which the rural consumers are familiar and

comfortable, can be used for high impact product campaigns.



PUSH

&

PULL



PUSH STRATEGY

A marketing strategy that uses aggressive personal selling and trade advertising to

convince a wholesaler or retailer to carry and sell particular merchandise.

PULL STRATEGY

A marketing strategy that stimulates consumer demand to obtain product distribution.





PUSH AND PULL SYSTEMS

A push supply chain makes production and distribution decisions based on forecasts

(Build-to-stock

A pull supply chain drives production and distribution by customer orders

(Build/Assembly-to-Order)

PUSH VERSUS PULL PROMOTIONAL STRATEGIES

Pull strategy

o Large market segment

o Long distribution channels

o Mass communication has cost advantages



Push strategy

o Industrial products or complex new products

o Direct selling allows firms to educate users

o Short distribution channels

o Used in poorer nations for consumer goods where direct selling only way to

reach consumers

CHARACTERISTICS OF PUSH AND PULL SYSTEM



COMPANY

PROFILE



INTRODUCTION OF THE COMPANY

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer

Goods Company, touching the lives of two out of three Indians. HUL’s mission is to “add

vitality to life” through its presence in over 20 distinct categories in Home & Personal

Care Products and Foods & Beverages. The company meets everyday needs for

nutrition, hygiene, and personal care, with brands that help people feel good, look good

and get more out of life.

Hindustan Unilever Limited (HUL) and its constituent companies have been in India since 1931.

Over these decades, while HUL has benefited from the developments in the country, it

has contributed equally to these developments.

Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition,

hysgiene, and personal care with brands that help people feel good, look good and get

more out of life.

Their deep roots in local cultures and markets around the world give us their strong

relationship with consumers and are the foundation for their future growth. We will bring

their wealth of knowledge and international expertise to the service of local consumers - a

truly multi-local multinational.

Their long-term success requires a total commitment to exceptional standards of

performance and productivity, to working together effectively, and to a willingness to

embrace new ideas and learn continuously.

To succeed also requires, we believe, the highest standards of corporate behavior towards

everyone we work with, the communities we touch, and the environment on which we

have an impact.



This is their road to sustainable, profitable growth, creating long-term value for their

shareholders, their people, and their business partners

In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap

bars, embossed with the words "Made in England by Lever Brothers". With it began an

era of marketing branded Fast Moving Consumer Goods (FMCG).Soon after followed

Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was

launched in 1918 and the famous Dalda brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing

Company, followed by Lever Brothers India Limited (1933) and United Traders Limited

(1935). These three companies merged to form HUL in November 1956; HUL offered

10% of its equity to the Indian public, being the first among the foreign subsidiaries to do

so. Unilever now holds 51.55% equity in the company. The rest of the shareholding is

distributed among about 380,000 individual shareholders and financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the

company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India

Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an

international acquisition. The erstwhile Lipton's links with India were forged in 1898.

Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was

incorporated.

Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold

through an international acquisition of Chesebrough Pond's USA in1986.

Since the very early years, HUL has vigorously responded to the stimulus of economic

growth. The growth process has been accompanied by judicious diversification, always in

line with Indian opinions and aspirations.

The liberalization of the Indian economy, started in 1991, clearly marked an inflexion in

HUL's and the Group's growth curve. Removal of the regulatory framework allowed the



company to explore every single product and opportunity segment, without any

constraints on production capacity.

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the

most visible and talked about events of India's corporate history, the erstwhile Tata Oil

Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995,

HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture,

Lakme Lever Limited, to market Lakme's market-leading cosmetics and other appropriate

products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to

HUL and divested its 50% stake in the joint venture to the company.

HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in

1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary

Pads. HUL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its

factory represents the largest manufacturing investment in the

Himalayan kingdom. The NLL factory manufactures HUL's products like Soaps,

Detergents and Personal Products both for the domestic market and exports to India.

The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the

Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General

Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan

business from the UB Group and the Dollops Ice cream business from Cadbury India.

As a measure of backward integration, Tea Estates and Doom Dooma, two plantation

companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke

Bond India and Lipton India merged to form Brooke Bond Lipton India Limited

(BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages

business. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. By the

end of the year, the company entered into a strategic alliance with the Kwality Ice-cream



Group families and in 1995 the Milk food 100% Ice-cream marketing and distribution

rights too were acquired.

Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal

restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in

1998. The two companies had significant overlaps in Personal Products, Specialty

Chemicals and Exports businesses, besides a common distribution system since 1993 for

Personal Products. The two also had a common management pool and a technology base.

The amalgamation was done to ensure for the group, benefits from scale of economies

both domestic and export market.

In January 2000, in a historic step, the government decided to award 74 per cent equity in

Modern Foods to HUL, thereby beginning the divestment of government equity in public

sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic

extension of the company's wheat business. In 2002, HUL acquired the government's

remaining stake in Modern Foods.

In 2003, HUL acquired the Cooked Shrimp and Pasteurized Crabmeat business of the

Amalgam Group of Companies, a leader in value added Marine Products exports.

Hindustan Lever Limited, 51.6% subsidiary of Unilever Plc, is the largest FMCG

Company in the country, with a turnover of Rs118bn. The company’s business sprawls

from personal and household care products to foods, beverages and specialty chemicals.

The company has a dominating market share in most categories that it operates in such as

toilet soaps, detergents, skincare, hair care, color cosmetics, etc. It is also the leading

player in food products such as packaged tea, coffee, ice cream and other culinary

products.

Brand equities are built over a period of time by technological innovations, consistent

high quality, aggressive advertisement and marketing. Availability near the consumer



through a wide distribution network is another crucial success factor, as products are of

small value, frequently purchased, daily use items. HUL is strong on both these fronts

with leading brands, which are market leaders in their respective categories, and a 1mn

strong direct retail reach.

HUL is the market leader in the detergent and toilet soap industry with market share of

60% and 40% respectively. Nirma is a close competitor in detergents and has been slowly

gaining ground in toilet soaps too. The other significant competitor in detergents is P&G.

In oral care segment, HUL has emerged as a strong No 2 player with 36% market share.

In the hair care segment, HUL dominates the shampoo market with a 64.5% share and is

the No 2 player in hair oils. HUL has a 54% market share in skin creams. In the foods

business, Tata Tea in packet tea, Nestle in coffee and culinary products, GCMMF (Amul)

in ice creams, and Godrej Pillsbury in staple food are the main competitors.

HUL grew at a fast pace in the mid 90’s driven by its aggressive acquisition spree. From

Rs38bn turnover (contributed 70% by soaps, detergents and personal products), HUL’s

turnover has now grown to Rs118bn, with soaps and personal products contributing 57%

to turnover and beverages and food products contributing to 29% of turnover. Growth

during the last few years has largely been driven by the personal products business.

However the pace of growth has slackened significantly in the last two years with several

key segments registering a growth in 2001 soaps business (Rs21bn) de-grew by 1% and

detergent sales (Rs20bn) grew by 7%. Other personal products (household care, oral acre,

skin care, hair care, color cosmetics) registered a 14% yo-yo growth to Rs24.6bn.

Expansion of the foods business, which has been identified as a major growth area, has

not been as fast as anticipated. Beverage sales move largely with commodity price trends,

which have remained on a downtrend. Branded tea business degree by 10% in F12/01 to

rs16bn, while the Rs3bn coffee business registered a 7% yo-yo growth. Ice-cream

business has failed to takeoff registering a 3% growth. The staple food business, once

considered a high potential growth area witnessed a decline of 10% yoy to Rs2.4bn.



Profitable growth has been the new mantra of the FMCG major’s Chairman, M S Banga,

who took over the reins from Keki Dadiseth 2 years ago. In contrast to Dadiseth’s

strategy of expansion through acquisition, Mr. Banga’s strategy revolves around

rationalization. A focus on 30 power brands, which are major contributors to profitability,

seeking new avenues of

expanding distribution reach, improving profitability of foods businesses have been the

thrust areas. Non-FMCG businesses are either being are hived off or are being

strengthened by partnerships with players who have the technological expertise in those

businesses. The strategy has paid results with profits registering a 24% yo-yo growth in

2001, despite a flat top line growth.

PRESENT STRUCTURE

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods

Company, touching the lives of two out of three Indians with over 20 distinct

categories in Home & Personal Care Products and Foods & Beverages. They have the

company with a scale of combined volumes of about 4 million tones and sales of

Rs.10, 000 cores.

HUL is also one of the country's largest exporters; it has been recognized as a Golden

Superstar Trading House by the government of India.

The mission that inspires HUL's 36,000 employees, including over 1,350 managers, is

to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and

personal care with brands that help people feel good, look good and get more out of

life. It is a mission HUL shares with its parent company, Unilever, which holds 51.55%

of the equity. The rest of the shareholding is distributed among 380,000 individual

shareholders and financial institutions.

HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,

Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna,

Kwality Wall's – are household names across the country and span many categories -

soaps, detergents, personal products, tea, coffee, branded staples, ice cream and

culinary products. They are manufactured in close to 80 factories. The operations

involve over 2,000 suppliers and associates. HUL's distribution network, comprising

about 7,000 redistribution stockiest, directly covers the entire urban population, and

HUL has traditionally been a company, which incorporates latest technology in all its



operations. The Hindustan Lever Research Center (HLRC) was set up in 1958, and

now has facilities in Mumbai and Bangalore.

HLRC and the Global Technology Centers in India have over 200 highly qualified

scientists and technologists, many with post-doctoral experience acquired in the US

and Europe.

HUL believes that an organization’s worth is also in the service it renders to the

community. HUL is focusing on health & hygiene education, women empowerment,

and water management. It is also involved in education and rehabilitation of special

or underprivileged children, care for the destitute and HIV-positive, and rural

development. HUL has also responded in case of national calamities / adversities and

contributes through various welfare measures, most recent being the village built by

HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami

caused devastation in south India.

Over the last three years the company has embarked on an ambitious program,

Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural

women, thereby improving their livelihood and the standard of living in rural

communities. Shakti also includes health and hygiene education through the Shakti

Vani Program, and creating access to relevant information through the Shakti

community portal. The program now covers about 50,000 villages in 12 states. HUL's

vision is to take this program to 100,000 villages impacting the lives of over 100

million rural Indians.

HUL is also running a rural health program – Lifebuoy Swasthya Chetana. The

program endeavors to induce adoption of hygienic practices among rural Indians and

aims to bring down the incidence of diarrhea. It has already touched 70 million

people in approximately 15000 villages of 8 states. The vision is to make a billion

Indians feel safe and secure.

If Hindustan Lever straddles the Indian corporate world, it is because of being single-

minded in identifying itself with Indian aspirations and needs in every walk of life.

MANAGEMENT STRUCTURE

Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods (FMCG)

Company. It is present in Home & Personal Care and Foods & Beverages categories.

HUL and Group companies have about 36,000 employees, including 1350 managers.



The fundamental principle determining the organization structure is to infuse speed and

flexibility in decision-making and implementation, with empowered managers across the

company's nationwide operations. For this, HUL is organized into two self-sufficient

divisions - Home & Personal Care & Foods - supported by certain central functions and

resources to leverage economies of scale wherever relevant.

Board

Divisions

Central functions

Businesses

Board

At the apex is the Board, headed by the Chairman, and comprising 5 whole time

Directors and 5 independent non-executive Directors. The day to day operations are

supervised by the National Management comprising the Vice Chairman, Managing

Director (HPC), Managing Director (Foods) And The Finance Director

Divisions

Each division is self-sufficient with dedicated resources and assets in sales, marketing,

commercial, and manufacturing. The two divisions are further reorganized into

categories.

Typically, each category and each function - Sales, Commercial, Manufacturing - is

headed by a Vice President. They with their respective Managing Director comprise that

Division's Management Committee.



For managing sales operations, HUL divides the country into four regions, with regional

branches in Delhi, Kolkata, Chennai and Mumbai. Headed by a Regional Manager, they

comprise Regional Sales Managers and Area Sales Managers, assisted by dedicated field

forces, comprising Sales Officers and Territory Sales In charges. In Marketing, each

category has a Marketing Manager who heads a team of Brand Managers dedicated to

each or a group of brands.

The commercial team of a Division is responsible for its supply chain management.

There are teams dedicated to sourcing, planning and logistics. Each Division has a

nationwide manufacturing base, with each factory peopled by teams of Production,

Engineering, Quality Assurance, Commercial and Personnel Managers.

Central functions

HUL's Central Functions are Finance, Human Resources, Technology, Research,

Information Technology, Legal & Secretarial, and Corporate Affairs. Their services are

shared across the company. But, wherever necessary, managerial resources are dedicated

exclusively to a business. For example, each Division now has dedicated HR managers.

HUL believes that while it leverages the scale of a large corporate, it must also retain the

soul of a small company. Its organization structure, which has and will continue to evolve

with time, is aimed at achieving this knitting.

Businesses Home & Personal Care

Personal Wash

Fabric Wash

Home Care

Oral Care

Skin Care

Hair Care

Deodorants & Talc’s

Color Cosmetics



Foods

Tea

Coffee

Branded Staples

Culinary Products

Ice Creams

Modern Foods ranges

New Ventures

Hindustan Lever Network

Ayush ayurvedic products & services

Saga

Purest water purifiers

Exports HPC

Beverages

Marine Products

Rice

Castor

PRODUCTS OF HUL:

BRANDS OF HUL:

HOME AND PERSONAL CARE:

Lux

Breeze

Liril

Dove

Lifebuoy

Pears

Hamam

Rexona



LAUNDRY:

Surf Excel

Rin

Wheel

SKIN CARE:

Fair and Lovely

Ponds

HAIR AND CARE

Sun silk Natural

Clinic

ORAL CARE:

Pepsodent

Close-Up

DEODRANTS:

Axe

Rexona

COLOUR COSMETIC:

Lakme

AYURVEDIC PERSONAL AND HEALTH CARE:

Ayush

TEA:

Brooke bond

LiptonCOFFEE

Bru

FOODS

Kissan



Knorr Annapurna



LATEST DEVELOPMENT

HINDUSTAN LEVER IS NOW HINDUSTAN UNILEVER

FMCG major Hindustan Lever has informed that it has received government’s approval

change its name to “Hindustan Unilever Limited” following which, its new corporate

identity represented by a new logo will come into effect. “The identity symbolizes the

benefits we bring to our consumers and the communities we work in. Our new identity

will help us confidently position ourselves in every aspect of our business,” Hindustan

Unilever CEO Doung Baillie said.



M/S NAGA TRADERS

(RURAL DISTRIBUTOR)

BELGAUM

Naga traders are the rural distributors for Hindustan Unilever Limited and also they are

supplying the products to the Shakti dealer; they are supplying retailer in rural area like.

Bagewadi

M.K Hubli

Hukkeri

Itagi/pariswad

Kanapur

Nesargi

Piranwadi

Ganeshpur

Sambra

Yamakanamardi etc......

Shakti dealer

S C.Hubli (munushikatti)

S A.Kaktikar (Belagundi)

S A.Tigodoli (Shindoli)



They deal in products of HUL

Lux, Pears, Hamam, Rexona, Liril, Life bouy

Surf excel, Rin, Wheel

Sunsilk, Clinic plus

Pepsodent, Close-up

Fair and lovely, Pond’s

Brooke bond, Lipton Bru etc…..

HUL's INITIATIVE IN RURAL DEVELOPEMENT:

Hindustan Unilever Limited (HUL) and its constituent companies have been in India since 1931.

Over these decades, while HUL has benefited from the developments in the country, it

has contributed equally to these developments.

HUL has consciously woven India's imperatives with the company's strategies and

operations. The company’s main contributions include developing and using relevant

technologies, stimulating industrialization, boosting exports, adding value to agriculture

and generating productive employment and income opportunities.

HUL has been proactively engaged in rural development since 1976 with the initiation of the

Integrated Rural Development Program in the Etah district of Uttar Pradesh, in

tandem with the company’s dairy operations. This Program now covers 500 villages in the district.

Subsequently, the factories that HUL continued establishing in less-developed regions of the country

have been engaged in similar program in adjacent villages.

These factory-centered activities mainly focus on training farmers, animal husbandry, generating

alternative income, health & hygiene and infrastructure development.The company has acquired a

wealth of experience and learning from these activities.

KEY LEARNINGS ON RURAL DEVELOPEMENT:



The principal issue in rural development is to create income-generating opportunities for the

rural population. Such initiatives are successful and sustainable when linked with the company’s

core business and is mutually beneficial to both the population for whom the program is intended

and for the company. Based on these insights, HUL launched Project Shakti in the year

2001, in keeping with the purpose of integrating business interests with national interests



HUL’s

DISTRIBUTION

NETWORK



HUL DISTRIBUTION NETWORK

The company salesman grouped all these orders and placed an indent with the Head

Office. Goods were sent to these markets, with the company salesman as the consignee.

The salesman then collected and distributed the products to the respective wholesalers,

against cash payment, and the money was remitted to the company.

The focus of the second phase, which spanned the decades of the 40s, was to provide

desired products and quality service to the company's customers. In order to achieve this,

one wholesaler in each market was appointed as a "Registered Wholesaler," a stock point

for the company's products in that market. The company salesman still covered the

market, canvassing for orders from the rest of the trade. He would then distribute stocks

from the Registered Wholesaler through distribution units maintained by the company.

The Registered Wholesaler system, therefore, increased the distribution reach of the

company to a larger number of customers.

The highlight of the third phase was the concept of "Redistribution Stockiest" (RS) who

replaced the RWs. The RS was required to provide the distribution units to the company

salesman. The RS financed his stocks and provided warehousing facilities to store them.

The RS also undertook demand stimulation activities on behalf of the company.

The second characteristic of this period we realized that the RS would be able to provide

customer service only if he was serviced well. This knowledge led to the establishment of

the "Company Depots" system. This system helped in transshipment, bulk breaking, and

as a stock point to minimize stock-outs at the RS level.

In the recent, a significant change has been the replacement of the Company Depot by a

system of third party Carrying and Forwarding Agents (C&FAs). The C&FAs act as

buffer stock-points to ensure that stock-outs did not take place. The C&FA system has

also resulted in cost savings in terms of direct transportation and reduced time lag in

delivery. The most important benefit has been improved customer service to the RS.



The role performed by the Redistribution Stockiest has also undergone changes over the

years. Financing stocks, providing manpower, providing service to retailers,

implementing promotional activities, extending indirect coverage, reporting sales and

stock data, screening for transit damages are some of the functions performed by the RS

today.

HUL has grown manifold over the years. In the process, the number of factories and the

number of SKUs too have increased. In order to rationalize the logistics and planning

task, an innovative step has been the formation of the Mother Depot and Just in Time

System (MD-JIT). Certain C&FAs were selected across the country to act as mother

depots. Each of them has a minimum number of JIT depots attached for stock

requirements. All brands and packs required for the set of markets which the MD and

JITs service in a given area are sent to the mother depot by all manufacturing units. The

JITs draw their requirements from the MD on a weekly or bi-weekly basis.

At present, HUL's products, manufactured across the country, are distributed through a

network of about 7,000 redistribution stockiest covering about one million retail outlets.

The distribution network directly covers the entire urban population.

In addition to the ongoing commitment to the traditional grocery trade, HUL is building a

special relationship with the small but fast emerging modern trade. Our scale enables us

to provide superior customer service including daily servicing, improving their range

availability whilst reducing inventories. We are using the opportunity of interfacing more

directly with our consumers in this retail environment through specially designed

communication and promotions. This is building traffic into the stores while yielding

high growth for our business.

An IT-powered system has been implemented to supply stocks to redistribution stockiest

on a continuous replenishment basis. The objective is to catalyze HUL’s growth by

ensuring that the right product is available at the right place in right quantities, in the

most cost-effective manner. For this, stockiest have been connected with the company

through an Internet-based network, called RS Net, for online interaction on orders,

dispatches, information sharing and monitoring.



RS Net covers about 80% of the company's turnover. Today, the sales system gets to

know every day what HUL stockiest have sold to almost a million outlets across the

country. RS Net is part of Project Leap,

HUL's end-to-end supply chain, which also includes a back-end system connecting

suppliers, all company sites and stretching right up to stockiest.

RS Net has come as a force multiplier for HUL Way, the company's action-plan to

maximize the number of outlets reached and to achieve leadership in every outlet, by

unshackling the field force to solely focus on secondary sales from the stockiest to

retailers and market activation. HUL Way has also led to implementing best practices in

customer management and common norms and processes across the company. Powered

by the IT tools it has further improved customer service, while ensuring superior

availability and impact visibility at retail points.

THE CHALLENGE OF THE RURAL MARKETS

70% of India's population resides in villages. Penetrating the rural markets is, therefore,

one of the key challenges for any marketer. While rural markets present a great

opportunity to companies, they also impose major challenges. At HUL, they have been at

the forefront of experimenting with innovative methods to reach the rural consumer.

Indirect coverage

Under the Indirect Coverage (IDC) method, company vans were replaced by vans

belonging to Redistribution Stockiest, which serviced a select group of neighboring

markets.

Operation Harvest

The reach of conventional media and, therefore, awareness of different products in rural

markets is weak. It was also not always feasible for the Redistribution Stockiest to cover

all these markets due to high costs involved. Yet, these markets are important since

growth opportunities are high.



Operation Harvest endeavored to supplement the role of conventional media in rural

India and, in the process, forge relationships and loyalty with rural consumers. Operation

Harvest also involved conducting of Product Awareness Programs on Vans. Cinema van

operations these are typically funded by the Redistribution Stockiest. Cinema Van

Operations have films and audio cassettes with song and dance sequences from popular

films, also comprising advertisements of HUL products Single Distribution Channel.

For rural India, HUL has established a single distribution channel by consolidating

categories. In a significant move, with long-term benefits, HUL has mounted an

initiative, Project Streamline, to further increase its rural reach with the help of rural sub-

stockiest. It has already appointed 6000 such sub-stockiest. As a result, the distribution

network directly covers about 50,000 villages, reaching about 250 Million consumers.

Distribution will acquire a further edge with Project Shakti, HUL's partnership with Self

Help Groups of rural women. The project, started in 2001, already covers over 5000

villages in 52 districts of Andhra Pradesh, Karnataka Madhya Pradesh and Gujarat, and is

being progressively extended. The vision is to reach over 100,000 villages,

They’re by touching about 100 million consumers. The SHGs have chosen to adopt

distribution of HUL's products as a business venture, armed with training from HUL and

support from government agencies concerned and NGOs. A typical Shakti entrepreneur

conducts business of around Rs.15000 per month, which gives her an income in excess of

Rs.1000 per month on a sustainable basis. As most of these women are from below the

poverty line, and live in extremely small villages (less than 2000 population), this earning

is very significant, and is almost double of their past household income

For HUL, the project is bringing new villages under direct distribution coverage. Plans

are being drawn up to cover more states, and provide products/services in agriculture,

health, insurance and education. This will both catalyze holistic rural development and

also help the



SHGs generate even more income. This model creates a symbiotic partnership between

HUL and its consumers, some of whom will also draw on the company for their

livelihood, and helps build a self-sustaining virtuous cycle of growth.

CHANNEL STRUCTURE

(Source: www.hll.com/channel structure)


http://www.hll.com/channel


CARRY AND RE-DISTRIBUTOR STOCKIEST

RE-DISTRIBUTOR STOCKIEST

Supermarkets- Self- service stores where there is a room for shoppers to browse and

interact with the products.

Family grocer- Over the counter store mainly for monthly household shopping

Kiosk- A tiny over the counter store, easily accessible for emergency purchases. It

stocks solely low unit packs.

Wholesale- Sells stock to small retailer and end user



DISTRIBUTION CHANNEL

OLD DISTRIBUTION CHANNEL OF HUL:

Manufacturer (Chennai)

C & F (Hubli)

RD

Wholesalers

Retailers

End customer

Notation:

C & F: Carriage Forward

RD: Rural Distributor



NEW DISTRIBUTION CHANNEL OF HUL:

Notation:

3) C & F: Carriage Forward 4) RD: Rural Distributor

5) Lab RS: Lab Regional Stockiest 6) SS: Star Seller 7) SE: Shakti Entrepreneur



ARTICLE



HLL ANNOUNCES NEW CORPORATE IDENTITY

Company name is now Hindustan Unilever Limited

Mumbai, June 25, 2007: Hindustan Lever Limited today announced that it has obtained

approval from the Government for the change of the company name to Hindustan

Unilever Limited.

With this the company’s new corporate identity represented by a new logo and the new

name Hindustan Unilever Limited comes into effect. The shareholders of the company

had earlier approved the proposal for change of name at the Company’s 74 th Annual

General Meeting on May 18, 2007.

The Company believes that the new name provides the optimum balance between

maintaining the heritage of the Company and the synergies of global alignment with the

corporate name of Unilever. Most importantly the name retains “Hindustan” as the first

word in its name to reflect the Company’s continued commitment to local economy,

consumers, partners and employees. The new logo is symbolic of the company’s mission

of ‘Adding Vitality to life’. It comprises of 25 different icons representing the

organization, its brands and the idea of Vitality.

Mr Doug Baillie, CEO, Hindustan Lever Limited, said, “The identity symbolizes the

benefits we bring to our consumers and the communities we work in. Our mission is full

of promise for the future, opening up exciting opportunities where we have competitive

advantage for developing our business and our new identity will help us confidently

position ourselves in every aspect of our business.”

“The new name and the new logo will leverage the positioning, scale and synergy that

comes with being part of Unilever globally. It positions our organization on a global scale

and through the combination of retaining ‘Hindustan’ in the name brings the very best of

local and global to the forefront. For us this is really an opportunity, collectively as an

organization, to renew and strengthen our commitment to continue our endeavour to earn

the love and respect of India, by making a real difference to every Indian,” Mr Baillie

added.



RESEARCH

METHODOLOGY





TITLE OF THE PROJECT

“A STUDY OF DISTRIBUTOR PUSH AND CUSTOMER PULL IN HUL in

Belgaum rural.”

MAIN OBJECTIVES:

To assess the Push and Pull activities for HUL.

SUB OBJECTIVES:

To evaluate the present Push and Pull activities of major players in the market

To know the perception of the consumers.

To understand the special Push activities and Pull activities undertaken at HUL

company.

To assess the product awareness of consumers and retailers satisfaction and

expectations towards HUL.

SAMPLE DESIGN:

POPULATION:

Population for this research is 980 retailers of Belgaum Rural.

Sample size is 200.



SAMPLE AREA:

Belgaum Rural (CIDC)

Khanapur

Nandgad

Londa

Hukkeri

Yamakanamaradi

Ganeshpur

Peeranwadi

Bagewadi

Sambra

Majagaon

Macchhe

M.K.Hubli

SAMPLING METHOD:

The process of drawing sample units from the population is called sampling method.

In order to have the unbiased results in the survey, the appropriate method of sampling

i.e. “stratified sampling” adopted. It also includes convenience sampling.



DURATION OF THE PROJECT

10 weeks

FIELD WORK

This market research involved a field work of 3 weeks where in I have administered pre-

tested questionnaire to retailers. I have carried out the survey to 351 respondents by

having the personal interaction with them.

Vijeta outlets = “Whole sellers”

Star outlets = “Retailers”

Consumers

TOOLS USED FOR ANALYSIS:

1. Sample testing in SPSS software

2. Graphical Representation of Analysis:

a) Pie charts

b) Bar Diagrams

DATA COLLECTION APPROACH:

Primary data:

Primary data is collected in ONE phase,

Out of Belgaum city (Belgaum rural) Primary data has been used to carry out

the research successfully. The secondary data has been collected from various

journals and publications. For the purpose of gathering primary data a

structure and non-disguised questionnaire was designed to collect data from

the retailer. The questionnaire contains both open-ended and close-ended

questions.



Method of Communication:

In order to minimize the bias in data collection, the method of personal interview was

adopted.

THE SOURCES OF THE DATA ARE AS FOLLOWS:

The study relies to a great extent on primary data and to some extent on secondary data:

PRIMARY DATA:

Questionnaire

Observation and interview technique

SECONDARY DATA:

Information is collected through internet

From various text books

Journals and magazines

LIMITATION OF THE STUDY:

The study is restricted in the scope owing to the following limitations:

The study is limited to a particular geographical area that is Belgaum rural only.

The information and data collected and analyzed is restricted to the researchers’

knowledge and ability.

The answers that I have got from the retailers cannot be considered as totally

perfect because of various personal and other limitations.

Cost and time was also another limiting factor that affected the study.

As retailer expectations and experiences include more of psychological aspects

the survey made during a particular time period will give the information about



the retailers during that particular time period. In order to be up-to-date in

understanding the level of satisfaction periodic surveys are necessary.

DATA

ANALYSIS AND

INTERPRETATION



PUSH

Q1. How long are you dealing with HUL products?

How long are you dealing with HUL products?

11 5.5 5.5 5.5

35 17.5 17.5 23.0

46 23.0 23.0 46.0

108 54.0 54.0 100.0

200 100.0 100.0

1-2 YEARS

2-4 YEARS

4-6 YEARS

MORE THAN 6 YEARS

Total

ValidFrequency Percent Valid Percent

CumulativePercent



How long are you dealing with HUL products?

108.00 / 54.0%

46.00 / 23.0%

35.00 / 17.5%

11.00 / 5.5%

MORE THAN 6 YEARS

4-6 YEARS

2-4 YEARS

1-2 YEARS

Above graph indicates that 54% of the retailers are dealing with HUL from more

than 6 years.

23% of the retailers are dealing with HUL from 4-6 years, 17.5% and 5.5% are

from 2-4 and 1-2 respectively.

Q2. Which Category of HUL’s products you sell in your outlet?

Which category of HUL's products you sell in your outlet?

28 14.0 14.0 14.0

31 15.5 15.5 29.5

5 2.5 2.5 32.0

125 62.5 62.5 94.5

11 5.5 5.5 100.0

200 100.0 100.0

personal care

Household care

Beverages

All 3

Other

Total


CumulativePercent



Which category of HUL's products you sell in your outlet?

5.50 / 5.5%

62.50 / 62.5%

2.50 / 2.5%

15.50 / 15.5%

14.00 / 14.0%

Other

All 3

Beverages

Household care

personal care

It clearly seen from the above graph that 62.5% of retailers among the total of 200

retailers are sell all categories(Personal Care, Household Care and Beverages) of

HUL products, 15%, 14%,5.5% of retailers sell Only Household Care, Personal Care

products and others respectively and 2.5% of retailers are sell only Beverages.



Q3. Which brands of FMC products you kept in your outlet other than HUL?

Above graph indicates that 160 of the retailers out of 200 kept P&G, 178 for

wipro, 7for ITC and 110 for Others.


P&G 160

Wipro 178

ITC 7

Others 110


Q4. Rate the following FMCG brands w. r. t their push activities. (1-V.High, 2-

High,3-Moderate, 4-Low and 5-V.Low)

Very

High

High Moderate Low Very

Low

Total

HUL 8 18 19 6 2 53

P&G 6 10 21 11 2 50

Wipro 18 12 10 3 2 45

ITC 1 3 2 1 7

Others 9 15 16 4 1 45

Total 42 58 68 25 7 200

Wipro has a very high Push activities compare to HUL and Others, HUL has high

Push activities compare to Others, P&G have Moderate Push activities. P&G is

comparatively Low.



Q6. Indicate your view of HUL’s Push activities with respect to competitors.

Sales Margin

80 40.0 40.0 40.0

80 40.0 40.0 80.0

40 20.0 20.0 100.0

200 100.0 100.0

Good

Neutral

Bad

Total


CumulativePercent

Sales Margin

40.00 / 20.0%

80.00 / 40.0%

80.00 / 40.0%

Bad

Neutral

Good

Out of total population of retailers 40% retailer’s opinion is providing Sales

Margin is Good, 40% are Neutral and 20% Bad.



Lucky Draws

30 15.0 15.0 15.0

90 45.0 45.0 60.0

80 40.0 40.0 100.0

200 100.0 100.0

Good

Neutral

Bad

Total


CumulativePercent

Lucky Draws

80.00 / 40.0%

90.00 / 45.0%

30.00 / 15.0%

Bad

Neutral

Good

Out of total population of retailers 15% retailer’s opinion is providing Lucky

Draws is Good, 45% are Neutral and 40% Bad.



Stock Supply

107 53.5 53.5 53.5

49 24.5 24.5 78.0

44 22.0 22.0 100.0

200 100.0 100.0

Good

Neutral

Bad

Total


CumulativePercent

Stock Supply

44.00 / 22.0%

49.00 / 24.5%

107.00 / 53.5%

Bad

Neutral

Good

Out of total population of retailers 53% retailer’s opinion towards Stock Suply is

Good, 24.5% are Neutral and 22% are Bad.



Gift Offers

38 19.0 19.0 19.0

72 36.0 36.0 55.0

90 45.0 45.0 100.0

200 100.0 100.0

Good

Neutral

Bad

Total


CumulativePercent

Gift Offers

90.00 / 45.0%

72.00 / 36.0%

38.00 / 19.0%

Bad

Neutral

Good

Out of total population of retailers 19% retailer’s opinion is providing Gift Offers

is Good, 36% are Neutral and 45% Bad.



Slab wise Targets

13 6.5 6.5 6.5

120 60.0 60.0 66.5

67 33.5 33.5 100.0

200 100.0 100.0

Neutral

Bad

Worst

Total


CumulativePercent

Slab wise Targets

67.00 / 33.5%

120.00 / 60.0%

13.00 / 6.5%

Worst

Bad

Neutral

Out of total population of retailers 6.5% retailer’s opinion towards Slab wise

Targets is Neutral,60% are Bad and 33.5% Worst

Distributer should target the customers and then he should provide the Slab wise

Targets..



Offers

102 51.0 51.0 51.0

78 39.0 39.0 90.0

20 10.0 10.0 100.0

200 100.0 100.0

Good

Neutral

Bad

Total


CumulativePercent

Offers

20.00 / 10.0%

78.00 / 39.0%

102.00 / 51.0%

Bad

Neutral

Good

Out of total population of retailers 51% retailer’s opinion is providing Offers is

Good, 39% are Neutral and 10% Bad.



Schemes

77 38.5 38.5 38.5

67 33.5 33.5 72.0

56 28.0 28.0 100.0

200 100.0 100.0

Good

Neutral

Bad

Total


CumulativePercent

Schemes

56.00 / 28.0%

67.00 / 33.5%

77.00 / 38.5%

Bad

Neutral

Good

Out of total population of retailers 38.5% retailer’s opinion is providing Schemes

is Good, 33.5% are Neutral and 28% Bad.



Trade Discounts

34 17.0 17.0 17.0

70 35.0 35.0 52.0

96 48.0 48.0 100.0

200 100.0 100.0

Good

Neutral

Bad

Total


CumulativePercent

Trade Discounts

96.00 / 48.0%

70.00 / 35.0%

34.00 / 17.0%

Bad

Neutral

Good

Out of total population of retailers 17% retailer’s opinion is providing Trade

Discounts is Good, 35% are Neutral and 48% Bad.



Q7. Rate the following factors which influence you in selling the products?

(1- Most important and 9- least)

Rate the Factors

24 12.0 12.0 12.0

13 6.5 6.5 18.5

27 13.5 13.5 32.0

15 7.5 7.5 39.5

11 5.5 5.5 45.0

11 5.5 5.5 50.5

23 11.5 11.5 62.0

37 18.5 18.5 80.5

39 19.5 19.5 100.0

200 100.0 100.0

Sales Margin

Special Incentives

Stock Supply

Gift offers

Lucky Draws

Slab wise targets

Trade Discounts

Schemes

Offers

Total


CumulativePercent

Rate the Factors

Rate the Factors

Pe

rce

nt

30

20

10

0

2019

12

668

14

7

12



From the above graph it is clearly seen that 20% of the retailers influenced to sell

the products by Offers, 19% -Schemes, 14 %-Stock Supply, 12 %Margin and 12

%- Trade Discounts.

Q8. Does HUL provide you any special incentives for the shelf space that you

provide for their products?

Does HUL provides you any special incentives for the shlf space?

67 33.5 33.5 33.5

133 66.5 66.5 100.0

200 100.0 100.0

Yes

No

Total


CumulativePercent

Does HUL provides you any special incentives for the shlf space?

133.00 / 66.5%

67.00 / 33.5%

No

Yes



From the above graph it is clearly seen that out of 200 retailers 33.5% retailers

said Yes HUL provides special incentives for the shelf space and 66.5% said NO.



Q9. Are you satisfied with the push activities offered by the HUL?

Are you Satisfied with the Push activities offersd by HUL?

120 60.0 60.0 60.0

80 40.0 40.0 100.0

200 100.0 100.0

Satisfied

Neutral

Total


CumulativePercent

Are you Satisfied with the Push activities offersd by HUL?

80.00 / 40.0%

120.00 / 60.0%

Neutral

Satisfied

Above graph indicates that 60% of the consumers are satisfied with the Push

activities Offered by HUL and 40% of the retailers are Neutral.

Over all the retailers are satisfied.



PULL

Q1. What type of FMC products do you use?

What type of FMC products do you use?

55 27.5 27.5 27.5

55 27.5 27.5 55.0

90 45.0 45.0 100.0

200 100.0 100.0

Personal care

household care

All -3

Total


CumulativePercent

What type of FMC products do you use?

90.00 / 45.0%

55.00 / 27.5%

55.00 / 27.5%

All -3

household care

Personal care

Above graph indicates that 55% of the consumers are using both Personal Care

and Household Care products and no consumer is using only the Beverages.

45% of consumers are using All (Personal Care, Household Care and Beverages)

the FMCG products.



Q2 & Q4. Which Brands FMCG products do you use? / Which factors influence you to buy this particular brand only?

Which factors influence you to buy this particular brand only? Total

Which Brands FMCG products do you use?

Brand ambassador

Availability in the

market

Effective advertisements

Discounts offers Influence by others

HUL 9 17 12 13 13 11 75

P&G 4 16 10 6 8 5 49

Wipr

o

1 14 9 15 20 10 69

ITC 0 0 0 3 4 7

14 47 31 37 45 26 200

HUL will sell largely in the market because of brand name , availability in the market

Brand Ambassador. And P&G will sell in the market because of effective

advertisements. And Wipro will sell in the market because of Discounts, Offers and

Influence by others.



Company should consider the other promotional like Discounts and offers which is

best provided by the Wipro.

Q4.Why do you use this particular brand? Because of

Because of Total

Brand

Name

Quality Promotional

activities

Price All

Why do you use this particular Brand?

HUL 9 20 9 23 14 75

P&G 5 16 7 12 9 49

Wipro 4 15 11 28 11 69

ITC 0 0 4 3 0 7

18 51 31 66 34 200

Most of the consumer buy HUL’s products because of Brand Name and Quality of

the product consumers buy Wipro because of Promotional Activities and price



compare to HUL, some consumers buy P&G because of Quality and most of the

consumers buy HUL’s products because of All these.

Q6. Are you aware of HUL products?

Are you aware of HUL products?

199 99.5 99.5 99.5

1 .5 .5 100.0

200 100.0 100.0

Yes

No

Total


CumulativePercent

Are you aware of HUL products?

1.00 / .5%

199.00 / 99.5%

No

Yes

It clearly seen from the above graph that 99.5% of consumers among the total of

200 consumers are Aware of HUL and 0.5% are Not.





Q7.If yes, which of the products you tried so far?

If Yes, which of the products you tried so far?

21 10.5 10.5 10.5

18 9.0 9.0 19.5

42 21.0 21.0 40.5

47 23.5 23.5 64.0

11 5.5 5.5 69.5

24 12.0 12.0 81.5

17 8.5 8.5 90.0

6 3.0 3.0 93.0

3 1.5 1.5 94.5

10 5.0 5.0 99.5

1 .5 .5 100.0

200 100.0 100.0

SurfExcel

Rin Advanced Bar

Wheel Active Powder

Clinic AllClear

Lux

Life Boy

Pepsodent

Close Up

Taj Mahal

Brue

Red Label

Total


CumulativePercent



Pe

rce

nt

30

20

10

0

53

9

12

6

24

21

911

Above graph indicates that 24% of the consumers have tried Clinic All Clear,

21% of consumers tried Wheel Active Powder 12% Life Boy 11% Surf Excel 9%

Pepsodentand 9% Rin Advanced.



Q9.Which of the media influenced you the most to buy the product?

Which of the media influenced you the most to buy the product?

67 33.5 33.5 33.5

11 5.5 5.5 39.0

63 31.5 31.5 70.5

4 2.0 2.0 72.5

55 27.5 27.5 100.0

200 100.0 100.0

T. V

Print media

By retailers

Sponsoring Events

Friends/ relatives

Total


CumulativePercent



Friends/ relatives

Sponsoring Events

By retailers

Print media

T. V

Pe

rce

nt

40

30

20

10

0

28

32

6

34

It clearly seen from the above graph that 33.5% of consumers among the total of 200

consumers are Influenced by T.V,31.5%- retailers,27.5% of consumers are Influenced

by Friends and Relatives, 31.5% of consumers are Influenced by Retailer and

5.5% ,2%of retailers are by Print media and Sponsoring Events.



Q10.Does HUL’s promotional activities influence you to buy its products?

Does HUL's promotional activities influence you to buy its products?

67 33.5 33.5 33.5

133 66.5 66.5 100.0

200 100.0 100.0

Yes

No

Total


CumulativePercent

Does HUL's promotional activities

influence you to buy its products?

133.00 / 66.5%

67.00 / 33.5%

No

Yes

Above graph indicates that 77.5% of the consumers are enforced by the HUL’s

promotional activities and 22.5% are Not.

Major proportions (77.5%) of the consumers are enforced by the HUL’s promotional

activities.





Q12. Among the promotional activities, which do you feel better?

Among the promotional activities, which do you feel better?

27 13.5 13.5 13.5

81 40.5 40.5 54.0

92 46.0 46.0 100.0

200 100.0 100.0

Free gifts

Discounts

Extra grams

Total


CumulativePercent

Among the promotional activities,

which do you feel better?

92.00 / 46.0%

81.00 / 40.5%

27.00 / 13.5%

Extra grams

Discounts

Free gifts

Out of total population of consumers 13.5% consumer’s opinion is providing free

gifts are a better promotional activity. And 46% consumers said providing extra

grams are better promotional activity and 40% said discounts are the better

promotional activity.



Q13. Indicate your view on HUL products?

Indicate your view on HUL products.

69 34.5 34.5 34.5

21 10.5 10.5 45.0

10 5.0 5.0 50.0

62 31.0 31.0 81.0

38 19.0 19.0 100.0

200 100.0 100.0

Price

Quality

Taste

Quantity w. r. t price

Offers

Total


CumulativePercent



OffersQuantity w. r. t priTasteQualityPrice

Pe

rce

nt

40

30

20

10

0

19

31

5

11

35

Out of 200 consumers 35.5% of consumers are satisfied with the price of the HUL

products..

10.5% consumers are satisfied with the Quality of product, 5.05% of consumers are

satisfied with the Taste, 31% of consumers are satisfied with Quantity w. r. t Price

and 19% of consumers are satisfied with the Offers provided by the HUL.



HYPOTHESES



Hypotheses: For the purpose of analyzing the gathered information few marketing

hypotheses were the major issues in a successful conclusion of the research.

1. Issue: Satisfaction of retailers towards HUL’s Push activities……….

H0: More than 50% of retailers are satisfied with the Push activities offered by HUL.

H1: Less than 50% of retailers are satisfied with the Push activities offered by HUL.

Z > - 1.64 Accept H0.

Using Z test can prove this

Computation of Z value

Z= P-P/ sigma P

P=0.50 , q = (1-P) =0.50 , N=200

where P= X/N = Respondents favoring Ho

Total sample size

P=120/200=0.60

Sigma P = P (1-P)/ N =0.0353

Z= 0.60-0.50/0.0353

Z =2.832

K= -1.64 (table value of Z)

Conclusion;

Since the calculated Z value (2.832) is greater than the critical value (k= -1.64) null hypothesis (Ho) is accepted.

Result : More than 50% of retailers are satisfied with the Push activities offered by HUL.



1. Issue: Promotional activities enforced to buy HUL products…

H0: More than 40% of consumers said Discounts and Extra grams are the best

promotional.

H1: Less than 40% of consumers said Discounts and Extra grams are the best promotional.

Z - 1.64 Accept H0.

Using Z test can prove this

Computation of Z value

Z= P-P/ sigma P

P=0.40 , (1-P) =0.60 , N=200

where P= X/N = Respondents favoring Ho

Total sample size

P=173/200=0.86

Sigma P= P (1-P)/ N = 0.0012

Z= 0.86-0.40/0.0012

Z = 13.29

K= -1.64 (referring table value of Z)

Conclusion;

Since critical value (K= -1.64) is less than calculated Z value (13.29) null hypothesis is accepted.



Result

More than 40% of consumers said Discounts and Extra grams are the best promotional.



FINDINGS

PUSH

From the survey it is found that 54% of the retailers are dealing with HUL from more

than 6 years and 23% of the retailers are dealing with HUL from 4-6 years, 17.5%

and 5.5% are from 2-4 and 1-2 respectively.

It clearly seen from the above chapter that 62.5% of retailers among the total of 200

retailers are sell all categories(Personal Care, Household Care and Beverages) of

HUL products, 15%, 14%,5.5% of retailers sell Only Household Care, Personal Care

products and others respectively and 2.5% of retailers are sell only Beverages.

Out of 200, 160 of the retailers kept P&G, 178 for wipro, 7for ITC and 110 for Others

respectively.

Wipro has a very high Push activities compare to HUL and Others, HUL has high

Push activities compare to Others, P&G have Moderate Push activities. P&G has

comparatively Low P.A.

Out of total population of retailers 40% retailer’s opinion is providing Sales Margin is

Good, 40% are Neutral and 20% Bad with respect to competitors.

Out of total population of retailers 15% retailer’s opinion is providing Lucky Draws

is Good, 45% are Neutral and 40% Bad with respect to competitors.

Out of total population of retailers 53% retailer’s opinion towards Stock Suply is

Good, 24.5% are Neutral and 22% are Bad.

Out of total population of retailers 19% retailer’s opinion is providing Gift Offers is

Good, 36% are Neutral and 45% Bad with respect to competitors.

Out of total population of retailers 6.5% retailer’s opinion towards Slab wise Targets

is Neutral,60% are Bad and 33.5% Worst with respect to competitors



Out of total population of retailers 51% retailer’s opinion is providing Offers is Good,

39% are Neutral and 10% Bad with respect to competitors.

Out of total population of retailers 38.5% retailer’s opinion is providing Schemes is

Good, 33.5% are Neutral and 28% Bad with respect to competitors.

Out of total population of retailers 17% retailer’s opinion is providing Trade

Discounts is Good, 35% are Neutral and 48% Bad with respect to competitors.

From the data analysis and interpretation it is found that 20% of the retailers

influenced to sell the products by Offers, 19% -Schemes, 14 %-Stock Supply, 12

%Margin and 12 %- Trade Discounts.

Out of 200 retailers 33.5% retailers said that HUL provides special incentives for the

shelf space and 66.5% said that it doesn’t.

Out of 200 retailers 60% of the consumers are satisfied with the Push activities

Offered by HUL and 40% of the retailers are Neutral.

Over all the retailers are satisfied.



PULL

As the survey conducted 45% of consumers are using All (Personal Care, Household

Care and Beverages) the FMCG products, 55% of the consumers are using both

Personal Care and Household Care products and no consumer is using only the

Beverages.

From the data analysis I come to know that HUL will sell largely in the market

because of brand name and availability in the market Brand Ambassador. And P&G

will sell in the market because of effective advertisements. And Wipro will sell in the

market because of Discounts, Offers and Influence by others.

Company should consider the other promotional like Discounts and offers which is

best provided by the Wipro.

Most of the consumer buy HUL’s products because of Brand Name and Quality of

the product consumers buy Wipro because of Promotional Activities and price

compare to HUL, some consumers buy P&G because of Quality and most of the

consumers buy HUL’s products because of All these.

Out of 99.5% of consumers among the total of 200 consumers are Aware of HUL and

0.5% are Not.

Above graph indicates that 24% of the consumers have tried Clinic All Clear, 21% of

consumers tried Wheel Active Powder 12% Life Boy 11% Surf Excel 9% Pepsodent

and 9% Rin Advanced.

It clearly seen from the above graph that 33.5% of consumers among the total of 200

consumers are Influenced by T.V,31.5%- retailers,27.5% of consumers are Influenced

by Friends and Relatives, and 5.5% ,2%of retailers are by Print media and

Sponsoring Events.

Major proportions (77.5%) of the consumers are influenced by the HUL’s

promotional activities.



Out of total population of consumers, 46% consumers said providing extra grams are

better promotional activity and 40% said discounts are the better promotional activity

And 13.5% consumer’s opinion is providing free gifts are a better promotional

activity..

Out of 200 consumers 35.5% of consumers are satisfied with the price of the HUL

products. 10.5% consumers are satisfied with the Quality of product, 5.05% of

consumers are satisfied with the Taste, 31% of consumers are satisfied with Quantity

w. r. t Price and 19% of consumers are satisfied with the Offers provided by the HUL.



SUGGESTIONS

Research has been made on the topic “Distributer Push and Consumer Pull in HUL” to

identify the Push activities for retailers and Pull activities for consumers at Belgaum

Rural. Whole study only depends upon Belgaum rural retailers and consumers.

Based on the analysis and the interpretation of the data given in the previous chapter,

suggestions are recorded as follows.

Still few of the rural retailers’ choice of stocking depend on the factors like schemes,

discounts, offers and margin and it attracts bulk orders to distributor. Distributor must

satisfy retailers in respect to above Push activities.

Distributor should maintain stock of all HUL products as it is existing for real long

time in FMCG market and as it caters all range of customers.

Discount, Offers, Gift Offers and company incentive should be passed on to the

retailer by the distributors and distributor should periodically review the performance

of their retailer.

Most of the retailers are not happy with the distributors for not identifying them as

aggressive retailers to carry out the slab target scheme. Hence the distributor should

identify potential retailer outlets to carry out the slab wise targets.

There is no credit facility provided to the retailers where as Competitors are providing

good credit facility to retailers hence HUL distributor should provide at least one

week credit facility so that distributer can be competitive and retailers can place Bulk

orders.



PULL

Company should consider the other promotional activities like Discounts and offers

which is best to attract consumers for example offers and discounts given by the

Wipro which is fetching them high profit.

As most of the consumers are influenced by the retailers therefore some amount can

be invested into push activities apart from huge investment on advertisement.



CONCLUSION

In todays competitive world survival is the fetest. This project brought up many facts

regarding Push and Pull activities of HUL for retailers and consumers. By this survey I

can conclude that HUL is really in need to perform better.

In case of Push activitiesHUL distributor should try to provied some more additional offers to the existing ones

like Special incentives, Gift Offers, Lucky Draws, Slab wise Targets and credit facilities

to the retailers.

In case of Pull activitiesHUL should try and give some extra grams, discounts and free gifts to the consumers.



Bibliograp

hy



Marketing By Lamb, Hair, McDaniel

Advertising Management by Rajeev Batra, John G. Myers

ICFAI Journal

Marketing Management by Philip kotler

Marketing Research by Parshu Raman

www.hll.com

www.hllshakti.com

www.hulindia.com


http://www.hllshakti.com/

http://www.hll.com/


Annexur

e


