Questionnaire: (For Retailer)

A STUDY OF DISTRIBUTOR PUSH AND CUSTOMER PULL IN HUL IN
BELGAUM RURAL
Questionnaire (for retailer)

Name of the outlet : __________________________________________________
Proprietor : __________________________________________________
Address : __________________________________________________
Telephone : __________________________________________________
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 HULs 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

BELGAUM RURAL
6. Indicate your view of HULs Push activities with respect to competitors.

FACTOR Very good Good Neutral Bad Worst
a) Sales margin
b) Lucky Draws
c) Stock supply
d) Gift offers
e) Slab wise targets
f) Offers
g)Schemes
h)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?

BELGAUM RURAL
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

BELGAUM RURAL
12 Conclusion 80
13 Bibliography 81
14 Annexure 83
TABLE OF CONTENTS

BELGAUM RURAL
EXECUTIVE SUMMARY
Hindustan Unilever Limited is India's largest Fast Moving Consumer Goods Company,
touching the lives of two out of three Indians. HULs 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.

BELGAUM RURAL
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..

BELGAUM RURAL
RETAILING
AND
RURAL MARKET

BELGAUM RURAL
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.

BELGAUM RURAL

BELGAUM RURAL
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: Its 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 HHs (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.

BELGAUM RURAL
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

BELGAUM RURAL
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.

BELGAUM RURAL
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.

BELGAUM RURAL
PUSH
&
PULL

BELGAUM RURAL
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.

BELGAUM RURAL
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

BELGAUM RURAL
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

BELGAUM RURAL
COMPANY
PROFILE

BELGAUM RURAL
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. HULs 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.

BELGAUM RURAL
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.
BELGAUM RURAL
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.

BELGAUM RURAL
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 companys 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.

BELGAUM RURAL
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 90s driven by its aggressive acquisition spree. From
Rs38bn turnover (contributed 70% by soaps, detergents and personal products), HULs
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.

BELGAUM RURAL
Profitable growth has been the new mantra of the FMCG majors Chairman, M S Banga,
who took over the reins from Keki Dadiseth 2 years ago. In contrast to Dadiseths
strategy of expansion through acquisition, Mr. Bangas 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

BELGAUM RURAL
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 organizations 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

BELGAUM RURAL
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.

BELGAUM RURAL
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 & Talcs
Color Cosmetics

BELGAUM RURAL
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

BELGAUM RURAL
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

BELGAUM RURAL
FOODS
Kissan
Knorr Annapurna

BELGAUM RURAL
LATEST DEVELOPMENT
HINDUSTAN LEVER IS NOW HINDUSTAN UNILEVER
FMCG major Hindustan Lever has informed that it has received governments 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.

BELGAUM RURAL
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)

BELGAUM RURAL
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, Ponds
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 companys 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 companys 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.

BELGAUM RURAL
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 companys
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

BELGAUM RURAL
HULs
DISTRIBUTION
NETWORK

BELGAUM RURAL
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.

BELGAUM RURAL
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 HULs 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.

BELGAUM RURAL
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.

BELGAUM RURAL
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,
Theyre 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

BELGAUM RURAL
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)

BELGAUM RURAL
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

BELGAUM RURAL
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

BELGAUM RURAL
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

BELGAUM RURAL
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.

BELGAUM RURAL
With this the companys 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 Companys 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 Companys continued commitment to local economy,
consumers, partners and employees. The new logo is symbolic of the companys 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.

BELGAUM RURAL
RESEARCH
METHODOLOGY

BELGAUM RURAL
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.

BELGAUM RURAL
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.

BELGAUM RURAL
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.

BELGAUM RURAL
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

BELGAUM RURAL
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

BELGAUM RURAL
PUSH
Q1. How long are you dealing with HUL products?
How long are you dealing with HUL products?
Cumulative
Frequency Percent Valid Percent Percent
Valid 1-2 YEARS 11 5.5 5.5 5.5
2-4 YEARS 35 17.5 17.5 23.0
4-6 YEARS 46 23.0 23.0 46.0
MORE THAN 6 YEARS 108 54.0 54.0 100.0
Total 200 100.0 100.0
How long are you dealing with HUL products?
1-2 YEARS
11.00 / 5.5%
2-4 YEARS
35.00 / 17.5%
MORE THAN 6 YEARS
108.00 / 54.0% 4-6 YEARS
46.00 / 23.0%

BELGAUM RURAL
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 HULs products you sell in your outlet?
Which category of HUL's products you sell in your outlet?
Cumulative
Valid personal care 28 14.0 14.0 14.0
Household care 31 15.5 15.5 29.5
Beverages 5 2.5 2.5 32.0
All 3 125 62.5 62.5 94.5
Other 11 5.5 5.5 100.0
Total 200 100.0 100.0
Which category of HUL's products you sell in your outlet?
Other
personal care
5.50 / 5.5%
14.00 / 14.0%
Household care
15.50 / 15.5%
Beverages
2.50 / 2.5%
All 3
62.50 / 62.5%

BELGAUM RURAL
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.

BELGAUM RURAL
Q3. Which brands of FMC products you kept in your outlet other than HUL?
P&G 160
Wipro 178
ITC 7
Others 110
Above graph indicates that 160 of the retailers out of 200 kept P&G, 178 for
wipro, 7for ITC and 110 for Others.

BELGAUM RURAL
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 Moderate Low Very Total

High Low
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.

BELGAUM RURAL
Q6. Indicate your view of HULs Push activities with respect to competitors.
Sales Margin
Cumulative
Valid Good 80 40.0 40.0 40.0
Neutral 80 40.0 40.0 80.0
Bad 40 20.0 20.0 100.0
Total 200 100.0 100.0
Sales Margin
Bad
40.00 / 20.0%
Good
80.00 / 40.0%
Neutral
80.00 / 40.0%
Out of total population of retailers 40% retailers opinion is providing Sales

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

BELGAUM RURAL
Lucky Draws
Cumulative
Valid Good 30 15.0 15.0 15.0
Neutral 90 45.0 45.0 60.0
Bad 80 40.0 40.0 100.0
Total 200 100.0 100.0
Lucky Draws
Bad
80.00 / 40.0%
Good
30.00 / 15.0%
Neutral
90.00 / 45.0%
Out of total population of retailers 15% retailers opinion is providing Lucky

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

BELGAUM RURAL
Stock Supply
Cumulative
Valid Good 107 53.5 53.5 53.5
Neutral 49 24.5 24.5 78.0
Bad 44 22.0 22.0 100.0
Total 200 100.0 100.0
Stock Supply
Bad
44.00 / 22.0%
Good
107.00 / 53.5%
Neutral
49.00 / 24.5%
Out of total population of retailers 53% retailers opinion towards Stock Suply is
Good, 24.5% are Neutral and 22% are Bad.

BELGAUM RURAL
Gift Offers
Cumulative
Valid Good 38 19.0 19.0 19.0
Neutral 72 36.0 36.0 55.0
Bad 90 45.0 45.0 100.0
Total 200 100.0 100.0
Gift Offers
Bad
90.00 / 45.0%
Good
38.00 / 19.0%
Neutral
72.00 / 36.0%
Out of total population of retailers 19% retailers opinion is providing Gift Offers
is Good, 36% are Neutral and 45% Bad.

BELGAUM RURAL
Slab wise Targets
Cumulative
Valid Neutral 13 6.5 6.5 6.5
Bad 120 60.0 60.0 66.5
Worst 67 33.5 33.5 100.0
Total 200 100.0 100.0
Slab wise Targets

Worst
67.00 / 33.5%
Neutral
13.00 / 6.5%
Bad
120.00 / 60.0%
Out of total population of retailers 6.5% retailers 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..

BELGAUM RURAL
Offers
Cumulative
Valid Good 102 51.0 51.0 51.0
Neutral 78 39.0 39.0 90.0
Bad 20 10.0 10.0 100.0
Total 200 100.0 100.0
Offers
Bad
20.00 / 10.0%
Good
102.00 / 51.0%
Neutral
78.00 / 39.0%
Out of total population of retailers 51% retailers opinion is providing Offers is

Good, 39% are Neutral and 10% Bad.

BELGAUM RURAL
Schemes
Cumulative
Valid Good 77 38.5 38.5 38.5
Neutral 67 33.5 33.5 72.0
Bad 56 28.0 28.0 100.0
Total 200 100.0 100.0
Schemes
Bad
56.00 / 28.0%
Good
77.00 / 38.5%
Neutral
67.00 / 33.5%
Out of total population of retailers 38.5% retailers opinion is providing Schemes

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

BELGAUM RURAL
Trade Discounts
Cumulative
Valid Good 34 17.0 17.0 17.0
Neutral 70 35.0 35.0 52.0
Bad 96 48.0 48.0 100.0
Total 200 100.0 100.0
Trade Discounts
Bad
96.00 / 48.0%
Good
34.00 / 17.0%
Neutral
70.00 / 35.0%
Out of total population of retailers 17% retailers opinion is providing Trade

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

BELGAUM RURAL
Q7. Rate the following factors which influence you in selling the products?
(1- Most important and 9- least)
Rate the Factors
Cumulative
Valid Sales Margin 24 12.0 12.0 12.0
Special Incentives 13 6.5 6.5 18.5
Stock Supply 27 13.5 13.5 32.0
Gift offers 15 7.5 7.5 39.5
Lucky Draws 11 5.5 5.5 45.0
Slab wise targets 11 5.5 5.5 50.5
Trade Discounts 23 11.5 11.5 62.0
Schemes 37 18.5 18.5 80.5
Offers 39 19.5 19.5 100.0
Total 200 100.0 100.0
Rate the Factors

30
20
20
19
14
10 12 12
P e rce n t
8
7
6 6
Rate the Factors

BELGAUM RURAL
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?
Cumulative
Valid Yes 67 33.5 33.5 33.5
No 133 66.5 66.5 100.0
Total 200 100.0 100.0
Does HUL provides you any special incentives for the shlf space?
Yes
67.00 / 33.5%
No
133.00 / 66.5%
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.

BELGAUM RURAL

BELGAUM RURAL
Q9. Are you satisfied with the push activities offered by the HUL?
Are you Satisfied with the Push activities offersd by HUL?
Cumulative
Valid Satisfied 120 60.0 60.0 60.0
Neutral 80 40.0 40.0 100.0
Total 200 100.0 100.0
Are you Satisfied with the Push activities offersd by HUL?

Neutral
80.00 / 40.0%
Satisfied
120.00 / 60.0%
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.

BELGAUM RURAL
PULL
Q1. What type of FMC products do you use?
What type of FMC products do you use?
Cumulative
Valid Personal care 55 27.5 27.5 27.5
household care 55 27.5 27.5 55.0
All -3 90 45.0 45.0 100.0
Total 200 100.0 100.0
What type of FMC products do you use?

All -3
90.00 / 45.0%
Personal care
55.00 / 27.5%
household care
55.00 / 27.5%
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.

BELGAUM RURAL
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
Brand Availability Effective Discounts offers Influence
ambassador in the advertisements by others
market
Which
HUL 9 17 12 13 13 11 75 Brands
P&G 4 16 10 6 8 5 49 FMCG
products
Wipro 1 14 9 15 20 10 69 do you
ITC 0 0 0 3 4 7 use?
14 47 31 37 45 26 200

BELGAUM RURAL
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 Quality Promotional Price All
Name activities
HUL 9 20 9 23 14 75
Why do
you use
this P&G 5 16 7 12 9 49
particular
Brand? Wipro 4 15 11 28 11 69
ITC 0 0 4 3 0 7
18 51 31 66 34 200

BELGAUM RURAL
Most of the consumer buy HULs 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 HULs products because of All these.
Q6. Are you aware of HUL products?
Are you aware of HUL products?
Cumulative
Valid Yes 199 99.5 99.5 99.5
No 1 .5 .5 100.0
Total 200 100.0 100.0
Are you aware of HUL products?

No
1.00 / .5%
Yes
199.00 / 99.5%

BELGAUM RURAL
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.

BELGAUM RURAL
Q7.If yes, which of the products you tried so far?
If Yes, which of the products you tried so far?
Cumulative
Valid SurfExcel 21 10.5 10.5 10.5
Rin Advanced Bar 18 9.0 9.0 19.5
Wheel Active Powder 42 21.0 21.0 40.5
Clinic AllClear 47 23.5 23.5 64.0
Lux 11 5.5 5.5 69.5
Life Boy 24 12.0 12.0 81.5
Pepsodent 17 8.5 8.5 90.0
Close Up 6 3.0 3.0 93.0
Taj Mahal 3 1.5 1.5 94.5
Brue 10 5.0 5.0 99.5
Red Label 1 .5 .5 100.0
Total 200 100.0 100.0

30
24
20 21
10 12
11
P e rce n t
9 9
6 5
0 3
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.

BELGAUM RURAL
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?
Cumulative
Valid T. V 67 33.5 33.5 33.5
Print media 11 5.5 5.5 39.0
By retailers 63 31.5 31.5 70.5
Sponsoring Events 4 2.0 2.0 72.5
Friends/ relatives 55 27.5 27.5 100.0
Total 200 100.0 100.0
40
34
30 32
28
20
10
Percent
6
0
T. V By retailers Friends/ relatives
Print media Sponsoring Events
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.

BELGAUM RURAL
Q10.Does HULs promotional activities influence you to buy its products?
Does HUL's promotional activities influence you to buy its products?
Cumulative
Valid Yes 67 33.5 33.5 33.5
No 133 66.5 66.5 100.0
Total 200 100.0 100.0
Does HUL's promotional activities

influence you to buy its products?
Yes
67.00 / 33.5%
No
133.00 / 66.5%
Above graph indicates that 77.5% of the consumers are enforced by the HULs
promotional activities and 22.5% are Not.
Major proportions (77.5%) of the consumers are enforced by the HULs promotional
activities.

BELGAUM RURAL

BELGAUM RURAL
Q12. Among the promotional activities, which do you feel better?
Among the promotional activities, which do you feel better?
Cumulative
Valid Free gifts 27 13.5 13.5 13.5
Discounts 81 40.5 40.5 54.0
Extra grams 92 46.0 46.0 100.0
Total 200 100.0 100.0
Among the promotional activities,

which do you feel better?
Extra grams
92.00 / 46.0%
Free gifts
27.00 / 13.5%
Discounts
81.00 / 40.5%
Out of total population of consumers 13.5% consumers 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.

BELGAUM RURAL
Q13. Indicate your view on HUL products?
Indicate your view on HUL products.
Cumulative
Valid Price 69 34.5 34.5 34.5
Quality 21 10.5 10.5 45.0
Taste 10 5.0 5.0 50.0
Quantity w. r. t price 62 31.0 31.0 81.0
Offers 38 19.0 19.0 100.0
Total 200 100.0 100.0

40
35
30 31
20
19
10
11
Percent
5
0
Price Quality Taste Quantity w . r. t pri Offers
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.

BELGAUM RURAL
HYPOTHESES

BELGAUM RURAL
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 HULs 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.

BELGAUM RURAL
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

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

BELGAUM RURAL
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% retailers opinion is providing Sales Margin is
Good, 40% are Neutral and 20% Bad with respect to competitors.
Out of total population of retailers 15% retailers opinion is providing Lucky Draws
is Good, 45% are Neutral and 40% Bad with respect to competitors.
Out of total population of retailers 53% retailers opinion towards Stock Suply is
Good, 24.5% are Neutral and 22% are Bad.
Out of total population of retailers 19% retailers 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% retailers opinion towards Slab wise Targets
is Neutral,60% are Bad and 33.5% Worst with respect to competitors

BELGAUM RURAL
Out of total population of retailers 51% retailers opinion is providing Offers is Good,
39% are Neutral and 10% Bad with respect to competitors.
Out of total population of retailers 38.5% retailers opinion is providing Schemes is

Good, 33.5% are Neutral and 28% Bad with respect to competitors.
Out of total population of retailers 17% retailers 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 doesnt.
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.

BELGAUM RURAL
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 HULs 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 HULs 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 HULs
promotional activities.

BELGAUM RURAL
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% consumers 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.

BELGAUM RURAL
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.

BELGAUM RURAL
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.

BELGAUM RURAL
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 activities
HUL 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 activities
HUL should try and give some extra grams, discounts and free gifts to the consumers.

BELGAUM RURAL
Bibliograp
hy

BELGAUM RURAL
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

BELGAUM RURAL
Annexur
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Questionnaire: (For Retailer)

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A STUDY OF DISTRIBUTOR PUSH AND CUSTOMER PULL IN HUL IN

Questionnaire (for retailer)

1. How long are you dealing with HUL products?

2. Which Category of HULs products you sell in your outlet?

BABASAB PATIL Page 1

6. Indicate your view of HULs Push activities with respect to competitors.

BABASAB PATIL Page 2

Highly Satisfied Satisfied Neutral

Dissatisfied Highly dissatisfied

SIGNATURE WITH SEAL

BABASAB PATIL Page 3

BABASAB PATIL Page 4

The Major Concurrent Project assigned me was A STUDY OF DISTRIBUTOR

PROBLEM STATEMENT: A STUDY OF DISTRIBUTOR PUSH AND

MAIN OBJECTIVE OF THE RESEARCH:

To assess the Push and Pull activities for HUL

To know the perception of the consumers.

To assess the product awareness of consumers and retailers satisfaction and

BABASAB PATIL Page 5

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:

It will help company to reduce the distribution cost.

SCOPE OF THE STUDY:

BABASAB PATIL Page 6

BABASAB PATIL Page 7

RETAILING AND RURAL MARKET

Visual merchandising in Retailing: -

BABASAB PATIL Page 8

BABASAB PATIL Page 9

What makes Rural Markets Attractive?

Rural Consumer Insights:

Rural India buys.

Products more often (mostly weekly).

Buy value for money, not cheap products

Rural Market Is a Homogeneous Mass

Disposable Income Is Low

BABASAB PATIL Page 10

Individuals Decide About Purchases

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

Why Different Strategies?

Understanding the rural consumer

Promotion and Marketing Communication

BABASAB PATIL Page 11

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BABASAB PATIL Page 13

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

BABASAB PATIL Page 15

PUSH AND PULL SYSTEMS

A pull supply chain drives production and distribution by customer orders

PUSH VERSUS PULL PROMOTIONAL STRATEGIES

o Large market segment

o Long distribution channels

o Mass communication has cost advantages

BABASAB PATIL Page 16

o Industrial products or complex new products

o Direct selling allows firms to educate users

o Short distribution channels

CHARACTERISTICS OF PUSH AND PULL SYSTEM

BABASAB PATIL Page 17