The Distribution Network of Hindustan Unilever LTD in rural area Project Shakti

2009

CENTURION SCHOOL OF RURAL ENTERPRISE MANAGEMENT PARLAKHEMUNDI

A REPORT ON
The Distribution Network of Hindustan Unilever LTD in rural area ProjectShakti
SUMBITTED TO: Prof.Dayal Swapna Kolluru

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT

SUMBITTED BY: Manoranjan Panigrahi Monalisha Dash Mohit Agarwal Neelam Sahu

CENTURION SCHOOL OF RURAL ENTERPRISE MANAGEMENT PARLAKHEMUNDI

Report Certificate

This is to certify that we are the student of PGDM (2009-2011) has worked on a report titled The Distribution Network of Hindustan Unilever LTD in rural area ProjectShaktiAt Ratna Agency,Parlakhemundi during trimester-I in partial fulfillment of the requirement for the programmed. This is his original work to the best of my knowledge.

Date: - __________ Seal:

Signature___________ Name of Faculty: Prof.Dayal Swapna Kolluru

DECLARATION

We are the student of Centurion School of Rural Enterprise Management do here by declare that the a report entitled The distribution Network of Hindustan Unilever LTD in

rural area is a bona fide work done by me at Ratna agency, Distributor of HUL,
Parlakhemundi in partial fulfillment for the award of degree in Post Graduate Programme in Management 2009-2011. No part of this report has been submitted to anyone at time before and any other University for award of any degree or diploma

PLACE DATE

Manranjan Panigrahi Monalish Dash Mohit Agarawal Neelam Sahu

ACKNOWLEDGEMENT
One of the pleasant parts of presenting this report is the opportunity to thanks those who have made significant contribution towards its completion. We would like to express my sincere gratitude to Mr. P.Bala Krishna, Proprietor of Ratna Agency, Parlakhemundi, and Distribution Office who has been a storehouse of valuable information and has consistently been a strong positive guiding force in our endeavor. We would also like to take this opportunity to thank our respected faculty, Prof.DayalSwapna Kolluru for their esteemed guidance and all their time. Without all their inputs, it would have been impossible for me to complete this project and submit it in the form which it has taken.

Manranjan Panigrahi Monalish Dash Mohit Agarawal Neelam Sahu

Contents

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.

Executive Summary ..7 Introduction ...8 Objective..............15 Methodology16 Limitation 18 Analysis Of the survey .......19 Findings ...26 Suggestion .......27 Conclusion............................................................................28 Annexure..............................................................................29 Reference..............................................................................30 Bibliography........................................................................30

EXECUTIVE SUMMARY
This project is carried to find out the distribution network of HUL in rural area based on Gajapati district by using the different marketing research tools. It also studies the relation between HUL & Shakti group. This study focused on HUL product distribution in rural area.

HUL distribution to retailers or Shakti group, ability to identify the distribution network under different condition defined by their company. With better understanding of retailers or Shakti group, companies can determine the action required to meet the retailers or Shakti group needs. The research results shows that the distribution network of HUL in rural area is different when considered by marketing strategies programmed regarding above & below the line activities.

As part of this report a questionnaire was prepared for the distribution network survey was done at different places like distributor, retailers or Shakti group. The above survey findings have been interpreted in form of table & graph .The conclusion was drawn from the findings

INTRODUCTION
Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG) Company. HLL products are manufactured over 40 factories across India and the associated operations involve over 2,000 suppliers and associates. Hindustan Lever Limited's distribution network comprises about 4,000 redistribution stockiest, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers. HLL is also one of India's largest exporters. It has been recognized as a Golden Super Star Trading House by the Government of India. Presently, HLL has over 15,000 employees including over 1,300 managers. Its mission is to "add vitality to life." The Anglo-Dutch company Unilever owns a majority stake in Hindustan Lever Limited. Hindustan Unilever Limited (abbreviated to HUL) formerly Hindustan Lever Limited is Indias largest consumer products company and has an annual turnover of over Rs 13,000 crores (calendar year 2008). It was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in late June 2007 to Hindustan Unilever Limited. In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business World, one of Indias leading business magazines. The rating was based on a compilation of the magazines annual survey of Indias Most Reputed Companies over the past 25 years. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as Soaps, Tea, Detergents and Shampoos amongst others with over 700 million Indian consumers using its products. It has over 35 brands. Sixteen of HULs brands featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. Its a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). In the late 19th and early 20th century Unilever used to export its products to India. This process began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim soon after. In 1931, Unilever set up its first Indian 8

subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). The three companies were merged in November 1956 and the new entity that came into existence after merger was called as Hindustan Lever Limited. HLL offered 10% of its equity to the Indian public, and it was the first among the foreign subsidiaries to do so. Currently, Unilever holds 51.55% equity in the company while the rest of the shareholding is distributed among about 380,000 individual shareholders and financial institution Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired Brooke Bond through an international acquisition. Similarly, Lipton's link with India date back to 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) had been in Indian market since 1947. It joined the Unilever ranks through an international acquisition of Chesebrough Pond's USA in 1986. The liberalization of Indian economy in 1991 and subsequent removal of the regulatory framework allowed HLL to explore every single product and opportunity segment, without any constraints on production capacity. The 1990s witnessed a string of crucial mergers, acquisitions and alliances. 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. In one of the most talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April 1, 1993. In July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). Brooke Bond Lipton India Limited launched Wall's range of Frozen Desserts in 1994 and by the end of the year, HLL entered into a strategic alliance with the Kwality Ice-cream Group families. BBLIL merged with HLL, with effect from January 1, 1996. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited (NLL). The NLL factory manufactures HLL's products like Soaps, Detergents and Personal Products both for the domestic market and exports to India. In January 2000, as part of its divestment strategy, the government decided to award 74 per cent equity in Modern Foods to HLL. In 2002, HLL acquired the government's remaining stake in Modern Foods. In February 2007, the company has been renamed to "Hindustan Unilever Limited" to strike the optimum

balance between maintaining the heritage of the Company and the future benefits and synergies of global alignment with the corporate name of "Unilever". Opportunities for corporate to explore there... let's look at the definition of urban and rural India. The Census defined urban India as - "All the places that fall within the administrative limits of a municipal corporation, municipality, cantonment board etc or have a population of at least 5,000 and have at least 75 per cent male working population in outside the primary sector and have a population density of at least 400 per square kilometer. Rural India, on the other hand, comprises all places that are not urban!" Now for some facts and figures. The Indian rural market today accounts for only about Rs 8 billion (53 per cent - FMCG sector, 59 per cent durables sale, 100 per cent agricultural products) of the total ad pie of Rs 120 billion, thus claiming 6.6 per cent of the total share. So clearly there seems to be a long way ahead With the urban market saturated, FMCG companies are now targeting the rural markets. In spite of the income imbalance between urban and rural India, rural holds great potential since 70% of Indias population lives there. Due to the recent government measures like waiver of loans, national rural employment guarantee scheme and increasing minimum support price, disposable income in rural India has been rapidly increasing. However, rural markets present their own sets of problems. These include poor infrastructure, dispersed settlements, lack of education and a virtually nonexistent medium for communication. Furthermore, retailers cannot be present in the entire centre as many of them are so small that it makes them economically unfeasible. Time and again marketing practitioners have waxed eloquent about the potential of the rural market. But when one zeroes in on the companies that focus on the rural market, a mere handful names come to mind. Hindustan Lever Limited (HLL) is top of the mind with their successful rural marketing projects like 'Project Shakti' and 'Operation Bharat'. The lynchpin of HLL's strategy has been to focus on penetrating the market down the line and focusing on price point. Furthermore, activating the brand in the rural market through activities, which are in line with the brand itself, is what sums up HLL's agenda as far as the rural market is concerned informs MindShare Fulcrum general manager R Gowthaman. Amul is another case in point of aggressive rural marketing. Some of the other corporate that are slowly making headway in this area are 10

Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance Corporation, Cavin Kare, Britannia and Hero Honda to name a few. Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti. This project was started in 2001 with the aim of increasing the companys rural distribution reach as well as providing rural women with income-generating opportunities. This is a case where the social goals are helping achieve business goals. The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the executives of HUL identifying the uncovered village. The representative of the company meets the panchayat and the village head and identify the woman who they believe will be suitable as a SA. After training she is asked to put up Rs 20,000 as investment which is used to buy products for selling. The products are then sold door-to-door or through petty shops at home. On an average a Shakti Amma makes a 10% margin on the products she sells. An initiative which helps support Project Shakti is the Shakti Vani programme. Under this programme, trained communicators visit schools and village congregations to drive messages on sanitation, good hygiene practices and women empowerment. This serves as a rural communication vehicle and helps the SA in their sales. The main advantage of the Shakti programme for HUL is having more feet on the ground. Shakti Ammas are able to reach far flung areas, which were economically unviable for the company to tap on its own, besides being a brand ambassador for the company. Moreover, the company has ready consumers in the SAs who become users of the products besides selling them. Although the company has been successful in the initiative and has been scaling up, it faces problems from time to time for which it comes up with innovative solutions. For example, a problem faced by HUL was that the SAs were more inclined to stay at home and sell rather than going from door to door since there is a stigma attached to direct selling. Moreover, men were not liable to go to a womans house and buy products. The company countered this problem by hosting Shakti Days. Here an artificial market place was created with music and promotion and the ladies were able to sell their products in a few hours without encountering any stigma or bias.

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This model has been the growth driver for HUL and presently about half of HULs FMCG sales come from rural markets. The Shakti network at the end of 2008 was 45,000 Ammas covering 100,000+ villages across 15 states reaching 3 m homes. The long term aim of the company is to have 100,000 Ammas covering 500,000 villages and reaching 600 m people. We feel that with this initiative, HUL has been successful in maintaining its distribution reach advantage over its competitors. This programme will help provide HUL with a growing customer base which will benefit the company for years to come. These are the major products of HUL in category wise:Personal Wash: Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears

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LAUNDRY:- Surf Excel, Rin ,Wheel & Ala bleech

BEAUTY CARE:- Fair & Lovely, Lakme, Ponds, Vaseline and Aviance

ORAL-CARE:- Pepsodent and Close-up

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DISHWASHER:- Vim

HAIR-CARE:- Sun silk, Clinic-plus, Clinic all clear, Dove and Lifebuoy

TOTAL PRODUCT SEGMENT OF HUL DEAL BY THE DISTRIBUTOR Personal wash Laundry Hair-Care Foods Beauty Products Tea Coffee Ice-cream Disinfectants Deo spray Dishwasher Oral care Beverages Hair Oil Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears and Rexona Surf Excel, Rin ,Wheel,Sunlight,Ok & Ala bleach Sunsilk naturals, Clinic , Dove and Lifebuoy Kissan(Jam,Ketchup,Squashes), Annapurna(Aata and salt), Knorr Soups, Modern Bread Fair & Lovely, Lakme, Ponds, Vaseline Brooke bond, Lipton , Taz Mahal & 3Roses Brooke bond, bru Kwality Wall's Domex Axe and Rexona Vim Close-up,Pepsodent Kissan Clinc plus,Clini All Clear

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OBJECTIVES

1. S ince major it y o f Ind ian people living in t he rural areas successfu l d isposal o f product s of a part icular co mpany depends upo n t he market ing net work in t hose areas in t heir expansio n programme in t he fie ld o f market ing.

2.

Under t he abo ve cir cumst ances st eps t aken by t he HUL t o cover up t heir market ing net work in t he rural ar eas in t he Gajapat i dist r ict wit h fo r mat io n o f S hakt i groups are app licable ot her t han t he dist r ibut ing agenc y & ret ailers so appoint ed by t he co mpany t o do so.

3. The pro ject Shakt i per for med by t he co mpany in t he rural area t o manage t he market ing net work has been considered as a d ir ect link bet ween t he co mpany & rural people in t he field of market ing wit hout an y

int er mediar y & such process definit ely improve t he vo lume o f t ransact io n wit h addit io nal mar ket ing support to t he co mpany wit h wide publicit y o f t heir product s in t hose areas.

4. Pro ject Shakt i pro vides engagement s t o the rural wo man in t he market ing act ivit y facilit at ing t o improve t heir financial condit io n.

5. The rural consumer s are supposed t o get t heir necessit ies so called t he co mpany product s in reaso nable pr ice at their door st eps.

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METHODOLOGY
SCOPE OF THE STUDY The scope of the study is very much limited. This report is based on the data provided by the distributers. The geographical scope of the research is limited as it was carried on a limited area i.e. Gajapati district. This research is mostly based on primary data. The primary data is collected through the structured questioner and all the findings and recommendation/suggestions are based on the distributers opinion. RESEARCH INSTRUMENTS: Method of collecting information is primary data collection method i.e. personal interview and observations. Primary data have been collected from the distributors by interviewing them and providing those questionnaire\.This questionnaire is given to the distributors. The questionnaire which was given by the course facilitators of CSREM were carefully planned, so that distributors wouldnt face any difficulties in answering. RESEARCH DESIGN: A research design is the specification of methods and procedure for acquiring information needed. It is the overall operational pattern or framework of the research that stipulates what information to be collected from which source by what procedures. A research design forms the framework of the entire research process. The research design is presented below in the form of a flow chart. Problem Identification Preliminary Investigation Concept Generation Concept Evaluation and development Pilot Study Questionnaire Generation and Data collection 16 Preparation and Suggestion of Research Report Analysis and Interpretation of Data and Graphs Recommendation and Suggestion Classification and Tabulation of Data

COLLECTION OF DATA 1) PRIMARY DATA: All the people from the Shakti groups and distributors were persionally visited and interviewed. They were the main source of Primary data. The method of collection of primary data was personal interview through a structured questionnaire. 2) SECONDARY DATA: It was collected from internal sources. The secondary data was collected on the basis of organizational annual report, official records, news papers, magazines, management books, preserved information in the companys database and website of the company.

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LIMITATIONS: The majo r Limit at io ns ar e as fo llows:1) The st udy was carr ied out in Gajapat i dist . Only, hence t he suggest io ns and find ings are int ended for t hat part only. 2) The samp le t aken is ver y small as compared t o t he tot al number o f d ist r ibut ors. 3) The ma jor limit at ion was t hat t he sur vey was conduct ed in a sho rt durat ion. Hence, lack o f t ime is co nsidered as a major limit at io n. 4) One o f t he major limit at ions o f t he st udy is t hat the ent ir e st ud y is co nduct ed by only o ne per son so t here must be so me area which has been o ver looked by t he researcher. In spit e o f all t he limit at ions, car e has been t aken t o provide t he best po ssib le dat a.

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Analysis
Having discussed about the scope, objectives, source of data, methodology we now concentrate on the analysis of the data collected through questionnaire. The data were collected personally by serving a questionnaire to the distributors. Their responses are recorded carefully. Thereafter the other aspects of TV advertisement, Internet, Magazine, are tabulated and analysis. From my field survey about the functioning of the project Shakti in Gajapati district, it is observed that the aim & object of formation of Shakti groups are many fold in nature especially helpful for the rural woman supported with self employment for them for their economic upliftment. More over in order to ensure well functioning of the project Shakti short term training programmes & workshops should be organized in regular intervals in rural area by the concerned agencies on retail marketing so as to enable them to undertake the work more efficiently for their overall development for a longer period. Table showing functioning of Shakti groups in the Gajapati district & their year wise improvement. YEAR
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
60 50 50 40 30 20 10 0 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 9 15 24 32 NUMBER OF GROUPS Column2

Number of Groups
9 15 24 32 50

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Hindustan Unilever -Solution

OBJECTIVE

Hindustan Unilever

Enter rural Indian market for long-term opportunity and growth

Micro-distributor
STRATEGY

Womens network

Create distribution models involving SHG community members and micro-credit financing

TACTICS

Homes

Personally reach customers in their homes

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Hindustan Unilever Benefits Untapped potential reached through new sales & distribution channel Model replicated elsewhere 45,000 Shakti ammas' earn individual monthly income of 700-1,000 rupees Key partnerships established with micro-creditors and SHGs Micro-entrepreneurs act as brand ambassadors, promoting Standard of living improvements UNILEVER: SALES & DISTRIBUTION IN INDIA

OBJECTIVE

Hindustan Unilever

Micro-distributor
STRATEGY

Womens network

TACTICS

Homes

Modern trade Organized retail Self- service stores General trade Wholesale Family grocer Marginal retail Rural trade

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Multi-purpose Retail

HULs approach to rural distribution

Indirect coverage

Direct coverage

Streamline

Turnover per market DETAILS OF PRODUCT OF HUL BEING DISPOSED UP IN GAJAPATI DISTRICT
50 nos. of Shakti groups have been formed in Gajapati district enrolling 850 Shakti Ammas in these groups. The retail marketing of all consumer goods except the food items are being undertaken by the Ammas as need of the villagers on regular basis. Moreover the products HUL are being disposed up through retail marketing in the villages by the retailers, Shakti / SHG groups as detailed under.

Sales
3% 5% 9% 11% 46% soaps & detergent personal care products Beverages Foods icecream 26% others

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SWOT Analysis
Strength HUL enjoys a formidable distribution network covering over 3400 distributors and 16 million outlets. This helps them maintain heavy volumes, and hence, fill the shelves of most outlets. The new sales organization named 'One HUL' brings "Household and Personal Care" and foods distribution networks together, thereby aligning all the units towards the common goal of achieving success. HUL has been continuously able to grow at a rate more than growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian market.
18 16 14 12 10 8 6 4 2 0 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009

FMCG Growth HUL's FMCG Performance

HUL Outperforms

Project Shakti - Rural India is spread across 500,000 villages and possesses a serious distribution challenge for FMCG Cos. HUL has come up with a unique and successful initiative wherein the women from the rural sector market HUL products, and hence, are able to reach the same wavelength as of the common man in village. Apart from product reach, the initiative also creates brand awareness amongst the lower strata of society. This has brought about phenomenal results. Weaknesses HUL's market dominance, originating from its extensive reach and strong brand presence, allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, the margins grew, and company was able to earn more profits. But higher margins attracted competition in areas of operations. HUL's strategy remained focused on

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creating power brands and earning higher margins. It was not left with any other option but to try cutting down the costs in order to protect volumes, if not increase it.

Competitive Pressure

Brand relevance

Ability to call shots / Pricing power

Resource employment and excess cash generation

Appetite to take risk and stay invested

Ability to evolve and enter newer business

As shown in above figure, the key differentiators for an FMCG player are ability to call shots and pricing power, and HUL has shown weakness over both these factors. HUL's weakness was its inability to transform its strategies at the right time. They continued with the same old strategy which helped them gain profits but were not genuine in this changed environment. HUL's risk aversion and market myopia led to stagnation of business, and ferocity of competition forced it into a defensive mode. Lack of pricing power in core business and absence of growth drivers have put HUL on a deflationary mode. Opportunities India is one of the world's largest producers of FMCG goods but its exports are miniscule as compared to production. Though Indian Cos. has been going global, their focus is more towards Asian countries because of the similar preferences. HUL is one of the top companies exporting FMCG goods from India. An expansion of horizons towards more and more countries would help HUL grow its consumer base and henceforth the revenues. 24

Opportunity in Food Sector - The advent of modern trade has opened up greater opportunities for HUL to diversify its brand and strength its food division. It could look at introducing products from its parents stable like margarines and could also look at expanding its Knorr range of products. Consumer expenditure on food (US $ billions)
180 160 140 120 100 80 60 40 20 0 Thailand S. Korea Taiwan Brazil Russia UK India China

Well-placed to take advantage of future FMCG Growth - HUL reach out 80% of 207 million households in the country through various brands. It has a very well-defined product portfolio spread across many product categories. Penetration levels for some major categories like skin-cream (22%), shampoo (38%), toothpaste (48%) and processed foods continue to remain low offerings but great growth opportunities products.

Threats
ITC has reduced its dependence on the cigarettes business - Contribution of the core business in revenues has come down from 87% in FY03 to 70% in FY08. Over a period of five years, ITC has extended its presence into areas like foods, retailing, hotels, greetings, agri, paper, etc. These are businesses that can give it growth impetus in the long run. With ITC gaining momentum in each of these businesses, it is turning into a consumer monolith, and hence, the greatest threat to HUL's Business. 25

Findings
The major findings from data analysis are as follows: 1. It is found t hat placement o f HUL product is good as in near ly 95% o ut let s, product s are found.

2. The villager s are familiar about t he goods o f HUL and all t he consu mer goo ds are being provided t o t hem which are being seen in each & ever y village for it s qualit y, dur abilit y & pr ice mat t ers.

3. LUX soap ho lds t he major percent age of sales i. e. 63% in co mpar iso n t o it s co mpet it ors like Det tol, Cint ho l, and Sant or etc.

4. About 65% of ret ail owner s are awar e of t he schemes of t he co mpany.

5. Fair & Lovely, Ponds t alc powder, Rin so ap, Clinic plus shampoo, Clo seup t oot hpast e & Sur f det ergent powder have been considered as fast mo ving goods in t he rural area.

6. The Ammas in S hakt i groups are int erest ed t o undert ake t he ret ai l market ing act ivit ies in rural area due t o receive o f lit t le more margin in shape of co mmissio n t hen t he ret ailer s. 7. The distributor should take little more incentive for disposal of the goods of HUL so as to increase the volume of transaction as expected from them by the company.

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Suggestions
The following suggestions are given for improvement in the sale of HUL products: 1. Frequent visit of company staff should be ensured so as encourage the retailers in their marketing activity. 2. More no. of Shakti groups should be formed in different areas for providing engagement the rural women. 3. Every retailer and Shakti group must be aware of the schemes are introduced by the HUL from time to time. 4. Prices of costly product should be reviewed in comparison to other company products and reduced the price if found necessary. 5. Company should hike the profit margin of the Shakti Ammas to encourage them in the retail marketing activities. 6. Company should ensure timely delivery of consumer goods to different rural areas by its own arrangement and see that all the goods are available with the retailers & Shakti group in all the time. 7. Company should provide different types of sales training to the Shakti Ammas. 8. The commitments of the company to be honest with customers about problems and shortcomings. 9. Clear, prompt and courteous communication that convey consistent details. 10. Good behavior and dealings by the company staff with the (dealers, retailers, Shakti groups) so as to encourage them in the marketing activity.

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Conclusion
Wit h limit ed per iod in hand, best possible effort has been made t o know abo ut t he var io us aspect s o f HUL product s wit h refer ence t o it s co mpet it ors. Dur ing o ur fie ld sur vey it is obser ved t hat t he funct io ning of S hakt i groups in rura l areas are seems t o be sat isfact or y and beneficia l to t he concer ned co mpany as well as t o t he S hakt i groups undert aking ret ail market ing in t hose area. S imilar effo rt s should be t aken by t he ot her companies for for mat io n o f ret ail sale s gro ups in t he rural areas basing on t he needs o f t he rur al people in t heir day t o day necessit y o f goods being produced by t he m for pro mot ion o f t heir sale s t urno ver and providing engagement to the rural people. Hope, t his st udy wil l help t he aspirant s, who will t ake up t he similar work in fut ure.

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ANEXTURE

Questionnaire
The distribution Network of Hindustan Unilever LTD in rural area (Project Shakti) (Demography Details) Name: Age: . .

Occupation: - .. Place: ...

1. Do you have t aken dist r ibut ion agency o f any co mpany YES NO

Wh ich co mpany.. 2. Wh ich are t he differ ent HUL product s which you are dealing? 3. Ho w you are gett ing t he product s (Transport at io n) 4. What is t he mode o f dist r ibut io n? (I) Personally (II) Use Sales- force

5. What is your order deliver y t ime? 6. Do you t ake t he help of ret ailer s to sell yo ur product ? 7. What t he frequency o f your order. 8. Ho w many S hakt i group member work wit h you.

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REFERENCE
1. www.managementparadise.com 2. www.mckinsey.com 3. www.timesofindia.com 4. www.scribd.com 5. www.wikipedia.com 6. www.hul.com

Bibliography
1. Philip Kolter, Marketing Management (Prentice Hall of India pvt. Ltd., New Delhi 2. W.J. Stanton, M.J. Etzel, B.J. Walker, Fundamental of Marketing (Mc Graw Hills, New York) 3. Annual Report (2008) of the company

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