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Project Report On Sales and Distribution Management Autosaved Fdkjaskl
Project Report On Sales and Distribution Management Autosaved Fdkjaskl
BY
AMIT KUMAR
ID- ASM12PGDM006
Submitted to
1
CERTIFICATE
This is to certify that AMIT KUMAR bearing Roll Number ASM1204003, is a bonafide
(Batch 2012-14), Approved by AICTE, Ministry of HRD, New Delhi. Internship report on
“SALES AND DISTRIBUTION MANAGEN (C.G)” is prepared by him/her under the guid-
ance of Prof: RAVI KUMAR, in partial fulfillment of the requirements for the award of Post
2
Internship Completion Certificate
It is here by certified that Mr. /Ms. _AMIT KUMAR , student of the Acharya School of
Management has completed the Internship at our organization _TRIMURTI ENTER-
PRISES BHILAI from_27-OCT-2013_ to _04-01-2014 successfully.
Mr. AMIT KUMAR during his/her stay at our organization has performed the assigned
worked satisfactorily and conduct was good. The student has attended all days for com-
pleting his/her internship.
Reporting Officer
(With Name, Designation
Contact Number & Seal)
3
DECLARATION
I AMIT KUMAR, hereby declare that the Internship report entitled “SALES AND DISTRI-
BUTION MANAGEMENT IN (C.G) ”with reference to “TRIMURTI ENTERPRISES
BHILAI” prepared by me under the guidance of (Prof: RAVI KUMAR) , faculty of the
Acharya School of Management.
I also declare that this Internship project is towards the partial fulfillment of the curriculum
requirements of PGDM Program at the Acharya School of Management.
I have undertaken this project for a period of 10 weeks. I further declare that this
project is based on the original study undertaken by me and has not been submitted
for the award of any degree/diploma from any other University/Institution.
Date: 22-Jan-2014
4
TABLE OF CONTENTS
CONTENTS Page No
12
Chapter 8: Recommendations 64
Chapter 9: Conclusion 68
5
CHAPTER 1
EXECUTIVE SUMMARY
6
Executive Summary
The main objective of the project is to get the full knowledge of the
distribution network of the products of the HUL and how they are using
the distribution network as a key differentiating factor from its competitors.
This is also to find the preferences of customer and there market knowledge
and product information, information about the presence of the rivals of HUL and
all the other options they have in the market. HUL are also looking to tap the
market in rural sector, so they also taking into consideration the needs and
wants of the people there. The study was done with reference to many products of
HUL and there distribution channel in DURG, BHILAI of (C.G).
It was a useful learning to understand the working of HUL.
7
CHAPTER 2
8
Objective of the Study
To find the ways to use the distribution network as the key differentiating
factor from its competitors.
Limitayion of study
9
The distributors showed lack of interest due to time constraint or some other
personal issues.
CHAPTER 3
INDUSTRY PROFILE
10
Industry Profile
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer pack-
aged goods. Items in this category include all consumables (other than groceries/pulses)
people buy at regular intervals. The most common in the list are toilet soaps, detergents,
shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and house-
hold accessories and extends to certain electronic goods. These items are meant for daily
The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector
in the economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to
USD 30 billion in 2012. FMCG sector will witness more than 60 per cent growth in rural
and semi-urban India by 2010. Indian consumer goods market is expected to reach $400
billion by 2010.Hair care, household care, male grooming, female hygiene, and the choc-
olates and confectionery categories are estimated to be the fastest growing segments. At
present, urban India accounts for 66% of total FMCG consumption, with rural India ac-
11
counting for the remaining 34%. However, rural India accounts for more than 40% con-
sumption in major FMCG categories such as personal care, fabric care, and hot bever-
ages. In urban areas, home and personal care category, including skin care, household
care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods
segment, it is estimated that processed foods, bakery, and dairy are long-term growth
categories in both rural and urban areas.The growing incline of rural and semi-urban folks
for FMCG products will be mainly responsible for the growth in this sector, as manufac-
turers will have to deepen their concentration for higher sales volumes.
Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco Com-
pany), and Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury
India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico Industries,
Nirma, Coca-Cola, Pepsi and others. As per the analysis by ASSOCHAM, Companies
Hindustan Unilever Ltd, Dabur India originates half of their sales from rural India. While
Colgate Palmolive India and Marico constitutes nearly 37% respectively, however Nestle
India Ltd and GSK Consumer drive 25 per cent of sales from rural India.
tion, a large number of opportunities is available in the FMCG sector. The Finance Minis-
ter has proposed to introduce an integrated Goods and Service Tax by April 2010.This is
an exceptionally good move because the growth of consumption, production, and em-
than 35% of the total cost of consumer products - the highest in Asia.. The bottom line is
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that Indian market is changing rapidly and is showing unprecedented consumer business
opportunity.
CHAPTER 4
COMPANY PROFILE
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Company Profile
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight
soap bars, embossed with the words "Made in England by Lever Brothers". with it, began
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 Manufac-
turing Company, followed by Lever Brothers India Limited (1933) and United Traders Lim-
ited (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 52.10% equity in the company. The rest of the shareholding is
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
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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
Since the very early years, HUL has vigorously responded to the stimulus of eco-
nomic growth. The growth process has been accompanied by judicious diversification,
The liberalization of the Indian economy, started in 1991, clearly marked an inflex-
ion 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 con-
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 1996, HUL
and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Uni-
lever Limited, to market Lakme's market-leading cosmetics and other appropriate prod-
ucts 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, Unilever Nepal Limited (UNL), and its
15
factory represents the largest manufacturing investment in the Himalayan kingdom. The
UNL factory manufactures HUL's products like Soaps, Detergents and Personal Products
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.
HUL launched a slew of new business initiatives in the early part of 2000’s. Project
Shakti was started in 2001. It is a rural initiative that targets small villages populated by
less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence
even as it benefits business. Currently, there are over 45,000 Shakti entrepreneurs cov-
ering over 100,000 villages across 15 states and reaching to over 3 million homes.
In 2002, HUL made its foray into Ayurvedic health & beauty center category with
the Ayush product range and Ayush Therapy Centers. Hindustan Unilever Network, Direct
to home business was launched in 2003 and this was followed by the launch of ‘Pure-it’
In 2007, the Company name was formally changed to Hindustan Unilever Limited
after receiving the approval of shareholders during the 74th AGM on 18 May 2007. Brooke
Bond and Surf Excel breached the Rs. 1,000 crore sales mark the same year followed by
Wheel which crossed the Rs. 2,000 crore sales milestones in 2008.
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BRANDS
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. Sixteen of HUL’s brands featured
in the ACNielsen 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. It has consistently had the largest number of brands in the Top 50, and in
The company has a distribution channel of 6.3 million outlets and owns 35 major
Indian brands. Its brands include Kwality Wall's ice-cream, Knorr soups & meal mak-
ers, Lifebuoy, Lux, Pears, Breeze, Liril, Rexona, Hamam and Moti soaps, Pure-it water
purifier, Lipton tea, Brooke Bond (Roses, Taj Mahal, Taaza, Red Label) tea, Bru cof-
fee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry
detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and
creams, Vaseline lotions, Fair and Lovely creams, Lakme beauty products, Clear, Clinic
Plus, Clinic All Clear, Sunsilk and Dove shampoos, VIM dishwash, Ala bleach, Domex
disinfectant, Modern bread, Axe deo sprays and Comfort fabric softeners.
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MILESTONE ACHEIVED
Five of HUL's leading brands – Lux, Dove, Pears, Clinic Plus and Sunsilk – won
Four HUL brands featured in the top 10 list of the Economic Times Brand Equity's
HUL was awarded the Bombay Chamber Civic Award 2007 in the category of Sus-
HUL was selected as the top Indian company in the FMCG sector for the Dun &
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19
HUL DISTRIBUTION NETWORK
WHOLESALERS
RETAILERS
CUSTOMERS
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This is the whole Distribution Chain of HUL to cover the rural market. The company have
remarkably worked upon to make the supply chain from manufacturers to retailers simple
with very few number of mediators and jobbers. It has helped them to maintain the trans-
parency in the cycle and also have let them established a prompt delivery process. The
products are manufactured in the factories all across India and then is supplied from there
to the various Carriage and Forwarding (C&F) units which are 5-10 per state depending
on the area they have to cover and are established by the company. These C&F units
then supply the products to the various Wholesalers confined to their area only and ac-
cording to the wholesalers demand. The wholesalers then supply the products to the
semi-wholesalers and the retailers as per the volume of their order. Then the semi-whole-
salers deliver the products to the retailers and customers.
MANUFACTURER
STAGE 1-
C&F
In this stage the products reach to the Carriage and Forwarding unit from various manu-
facturing units established all across India. The volume of the delivery depends upon the
quantity required/ordered by the C&F unit. The depot sends the request of the volume of
the products to the Head Office, which then order the various factories to supply the prod-
ucts to the mentioned depot. The supply is met within a week. HUL has 45 C&F’s with
7000 stockists and 2000+ suppliers and associates to target the market.
21
C&F
WHOLESALERS
STAGE 2-
The C&F then supplies the products according to the demand of various wholesalers.
Each of the depot cover a region assigned to them.
Each C&F acquires 5-7 trucks and hire 4-5 more trucks to supply products everyday.
They work on the concept of advance payment by DD by the wholesalers and deposit
them in the bank which is transferred to the head office.
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HUL DISTRIBUTION NETWORK IN RURAL MARKET
WHOLESALERS
AGENTS
RETAILERS
CUSTOMERS
IN Rural Geographic Regions of India the product which should be made by the manu-
factures can be delivered through by C & F unit and these unit provide stock in the hand
of the merchant wholesalers. Wholesaler delivers the product or stock to the different
retailers (who sales stock in breaking bulk) through by agents. The main difference in
urban and rural areas distribution networks are the agent who made relation between
23
merchant wholesalers to retailers. Retailers can sell stock in small quantity to the ultimate
consumers.
24
CHAPTER 5
SWOT ANALYSIS
25
SWOT ANALYSIS
Strengths
and hence, fill the shelves of most outlets. The new sales organization named 'One
HLL' brings "Household and Personal Care “and foods distribution networks to-
success. HLL has been continuously able to grow at a rate more than
growth rate for FMCG Sector, thereby reaffirming its future stronghold in Indian
women from the rural sector market HLL 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
Weakness
26
HLL'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
a b l e t o e a r n m o r e p r o f i t s . B u t h i g h e r m a r g i n s a t t r a c t e d competition in
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. As shown in above figure,
the key differentiators for an FMCG player are ability to call shots and pricing
power, and HLL has shown weakness over both the refactors. HLL's weakness
was its inability to transform its strategies at the right time. They continued w i t h t h e
same old strategy which helped them gain profits but was not genuine
Lack of pricing power in core business and absence of growth drivers have put HLL on a
deflationary mode.
Opportunities
India is one of the world's largest producer of FMCG goods but its exports are miniscule
as compared t o p r o d u c t i o n . T h o u g h I n d i a n C o s . h a v e b e e n g o i n g g l o b a l ,
ences. HLL is one of the top companies exporting FMCG goods from India. An
27
expansion of horizons towards more and more countries would help HLL grow its con-
sumer base and henceforth the revenues. Opportunity in Food Sector - The advent of
modern trade has opened up greater opportunities for HLL 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.
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
the core business in revenues has come down from 87% in FY99 to 70% in
FY05. Over a period of five years, ITC has extended its presence into areas
like foods, retailing, hotels, greetings, agro, paper, etc. These are businesses
that can give it growth impetus in the long run. With ITC gaining momentum in
28
the greatest threat to HLL's Business. SSKI India has gone on to say, "they maintain
Out performer on ITC with a price target of Rs. 2200, while our under performer call on
29
CHAPTER 6
30
The Data for this project was collected through Primary and Secondary sources.
PRIMARY DATA:
It is essential to collect PRIMARY DATA to make sample survey. A successful and the
naire was framed and distributed manually among different people who are residing in
SECONDARY DATA:
This Report is dedicated to Secondary information about company profile and var-
ious decisions taken by the company regarding product line expansion, product
line pruning and various other matters related to product line. I have collected this
information with the help of internet and journals. This report gives you relevant
31
I have collected all the information with the help of Internet, Journals and Second-
ary source.
SAMPLE PLAN
Size- 43 respondents.
ANALYSIS OF DATA
1. Editing
2. Classifying
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CHAPTER 7
33
1. Do you keep products of HUL in your outlet/shop?
a).Yes 88 b). No 12 .
100
88
90
80
70
60
50
40
30
20
12
10
0
Yes No
34
2. Why don’t you keep the products of HUL in your shop or why did you stop keeping
its products?
d). no supplier 3
4.5
4
4
erratic supply
3.5
3
3 lack of demand
2.5
low margin
2 2
2
no supplier
1.5
1
1 don’t know about the
company
0.5
0
1
35
2. From whom do you purchase your product?
1). Distributor 25
3). Agency 18
4). Wholesaler 17
17
25
Distributor
Dealer/ Agent
18 Agency
Wholesaler
40
36
3. How do you rate the delivery process of the distributor/dealer?
a) Excellent 25
b) Above Average 33
c) Average 38
d) Below Average 4
e) Extremely Poor 0
4 0
25
Excellent
Above Average
38
Average
Below Average
Extremely Poor
33
37
4. Are you satisfied with the distributor/dealer behavior?
Yes 68
No 32
80
68
70
60
50
Yes
40
32 No
30
20
10
0
1
38
5. Are you satisfied with the delivery of the goods supplied by distributor/ dealer?
Yes 71
No 2
29
Yes
No
71
39
6. Are they providing you adequate supply of goods?
Yes 76
No 24
80 76
70
60
50
Yes
40
No
30 24
20
10
0
1
Yes 78
40
No 22
90
78
80
70
60
50 Yes
40 No
30
22
20
10
0
1
41
8. What is the mode of payment to the distributor/ Dealer by Retailer?
Cash 62
Credit 24
Cheque 14
14
Cash
Credit
24
Cheque
62
42
9. Are they providing you any discount on cash payment?
Yes 52
No 48
53
52
52
51
50 Yes
No
49
48
48
47
46
1
10. Any extra benefit for the increment of the sales given by them?
Windows Display 75
43
Canopy 5
Any extra benefit for the increment of the sales given by them?
20
Windows Display
Long term sales plan
Canopy
75
44
1. Can agents regularly make aware you about the new products of HUL regular or
not?
Yes 72
No 28
Can agents regularly make aware you about the new products
of HUL regular or not?
80
72
70
60
50
Yes
40
No
28
30
20
10
0
1
45
FINDINGS
46
CHAPTER 8
RECOMMENDATIONS
Recommendations
47
HUL should serve channel partners and customers by replacing damaged prod-
ucts continuously.
HUL should improve the response time and try to deliver products on time.
HUL should increase the quality of packaging of their product to decrease the dam-
ages.
Launching for several sales promotional schemes for existing wholesaler and dis-
tributors instance, it has started the ‘Vijeta – Rista jeet ka’ scheme last year to
provide a platform for the wholesaler and HUL to grow the business by earning
48
CHAPTER 9
CONCLUSION
Conculaction
49
With the study of the topic we can know about the distributor relationship with the retailers
With the study it can be easily known how the retailers are been selected HINDUSTAN
UNILEVER LIMITED (Super value store) and what the terms and conditions regarding
the selection of the retailers and what are the benefits being provided to the retailers and
what are the various benefits being provided to the retailers in order to increase their
sales.
The company is making there strategies regarding the customer and the various product
assortment being provided to the retailers and whether the distributor is helping the re-
tailers in managing the demand of the retailers and also the sales agent behavior and
delivery man behavior affects the sale of the retailers as well as the distributor.
So, my study is visualize the distribution channel of the HINDUSTAN UNILEVER LIM-
50
ARTICLES:
WEBLIOGRAPHY
Books:-
Websites:-
www.hul.com
www.google.com
Business World
Economic Times
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