A REPORT ON

The Distribution Network of Hindustan Unilever LTD in rural area

Project“Shakti”

SUMBITTED TO:
Prof.Dayal Swapna Kolluru

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

SUMBITTED BY:

Manoranjan Panigrahi
Monalisha Dash
Mohit Agarwal
Neelam Sahu

2
 CENTURION SCHOOL OF RURAL ENTERPRISE
MANAGEMENT
PARLAKHEMUNDI

Report Certificate

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

Date: - __________ Signature___________

Seal: Name of Faculty: Prof.Dayal Swapna Kolluru

DECLARATION

3
We are the student of Centurion School of Rural Enterprise Management do here by declare
that the a report entitled “The distribution Network of Hindustan Unilever LTD in

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

PLACE Manranjan Panigrahi

DATE Monalish Dash
Mohit Agarawal
Neelam Sahu

4
 ACKNOWLEDGEMENT

One of the pleasant parts of presenting this report is the opportunity to thanks those who have
made significant contribution towards its completion.

We would like to express my sincere gratitude to Mr. P.Bala Krishna, Proprietor of Ratna
Agency, Parlakhemundi, and Distribution Office who has been a storehouse of valuable
information and has consistently been a strong positive guiding force in our endeavor.

We would also like to take this opportunity to thank our respected faculty, Prof.DayalSwapna
Kolluru for their esteemed guidance and all their time. Without all their inputs, it would have
been impossible for me to complete this project and submit it in the form which it has taken.

Manranjan Panigrahi
Monalish Dash
Mohit Agarawal
Neelam Sahu

5
 Contents

1. Executive Summary …………………………………………..7

2. Introduction …………………………………………………...8
3. Objective……………………………………………..............15
4. Methodology…………………………………………………16
5. Limitation ……………………………………………………18
6. Analysis Of the survey ………………………………….......19
7. Findings ……………………………………………………...26
8. Suggestion ……………………………………………….......27
9. Conclusion............................................................................28
10. Annexure..............................................................................29
11. Reference..............................................................................30
12. Bibliography........................................................................30

6
EXECUTIVE SUMMARY

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

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

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

7
INTRODUCTION
Hindustan Lever Ltd (HLL) is India's largest Fast Moving Consumer Goods (FMCG) Company.
HLL products are manufactured over 40 factories across India and the associated operations
involve over 2,000 suppliers and associates. Hindustan Lever Limited's distribution network
comprises about 4,000 redistribution stockiest, covering 6.3 million retail outlets reaching the
entire urban population, and about 250 million rural consumers. HLL is also one of India's
largest exporters. It has been recognized as a Golden Super Star Trading House by the
Government of India. Presently, HLL has over 15,000 employees including over 1,300
managers. Its mission is to "add vitality to life." The Anglo-Dutch company Unilever owns a
majority stake in Hindustan Lever Limited.

Hindustan Unilever Limited (abbreviated to HUL) formerly Hindustan Lever Limited is India’s
largest consumer products company and has an annual turnover of over Rs 13,000 crores
(calendar year 2008). It was formed in 1933 as Lever Brothers India Limited and came into
being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has
employee strength of over 15,000 employees and contributes for indirect employment of over
52,000 people. The company was renamed in late June 2007 to “Hindustan Unilever Limited”.

In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25
years by Business World, one of India’s leading business magazines. The rating was based on a
compilation of the magazine’s annual survey of India’s Most Reputed Companies over the past
25 years. HUL is the market leader in Indian consumer products with presence in over 20
consumer categories such as Soaps, Tea, Detergents and Shampoos amongst others with over
700 million Indian consumers using its products. It has over 35 brands. Sixteen of HUL’s brands
featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008).
According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands
List. It’s a company that has consistently had the largest number of brands in the Top 50 and in
the Top 10 (with 4 brands).

In the late 19th and early 20th century Unilever used to export its products to India. This process
began in 1888 with the export of Sunlight soap, which was followed by Lifebuoy in 1895 and
other famous brands like Pears, Lux and Vim soon after. In 1931, Unilever set up its first Indian

8
subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India
Limited (1933) and United Traders Limited (1935). The three companies were merged in
November 1956 and the new entity that came into existence after merger was called as
Hindustan Lever Limited. HLL offered 10% of its equity to the Indian public, and it was the first
among the foreign subsidiaries to do so. Currently, Unilever holds 51.55% equity in the company
while the rest of the shareholding is distributed among about 380,000 individual shareholders
and financial institution

Brooke Bond entered Indian market in 1900 and in 1903 it launched Red Label tea in the
country. In 1912, Brooke Bond & Co. India Limited was formed. Unilever acquired Brooke
Bond through an international acquisition. Similarly, Lipton's link with India date back to 1898.
Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated.
Pond's (India) had been in Indian market since 1947. It joined the Unilever ranks through an
international acquisition of Chesebrough Pond's USA in 1986.

The liberalization of Indian economy in 1991 and subsequent removal of the regulatory
framework allowed HLL to explore every single product and opportunity segment, without any
constraints on production capacity. The 1990s witnessed a string of crucial mergers, acquisitions
and alliances. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with
significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB
Group and the Dollops Ice-cream business from Cadbury India. In one of the most talked about
events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged
with HLL, effective from April 1, 1993. In July 1993, Brooke Bond India and Lipton India
merged to form Brooke Bond Lipton India Limited (BBLIL). Brooke Bond Lipton India Limited
launched Wall's range of Frozen Desserts in 1994 and by the end of the year, HLL entered into a
strategic alliance with the Kwality Ice-cream Group families. BBLIL merged with HLL, with
effect from January 1, 1996. HLL has also set up a subsidiary in Nepal, Nepal Lever Limited
(NLL). The NLL factory manufactures HLL's products like Soaps, Detergents and Personal
Products both for the domestic market and exports to India. In January 2000, as part of its
divestment strategy, the government decided to award 74 per cent equity in Modern Foods to
HLL. In 2002, HLL acquired the government's remaining stake in Modern Foods. In February
2007, the company has been renamed to "Hindustan Unilever Limited" to strike the optimum

9
balance between maintaining the heritage of the Company and the future benefits and synergies
of global alignment with the corporate name of "Unilever".

Opportunities for corporate to explore there... let's look at the definition of urban and rural
India. The Census defined urban India as - "All the places that fall within the administrative
limits of a municipal corporation, municipality, cantonment board etc or have a population of at
least 5,000 and have at least 75 per cent male working population in outside the primary sector
and have a population density of at least 400 per square kilometer. Rural India, on the other
hand, comprises all places that are not urban!"

Now for some facts and figures. The Indian rural market today accounts for only about Rs 8
billion (53 per cent - FMCG sector, 59 per cent durables sale, 100 per cent agricultural products)
of the total ad pie of Rs 120 billion, thus claiming 6.6 per cent of the total share. So clearly there
seems to be a long way ahead

With the urban market saturated, FMCG companies are now targeting the rural markets.
In spite of the income imbalance between urban and rural India, rural holds great potential since
70% of India’s population lives there. Due to the recent government measures like waiver of
loans, national rural employment guarantee scheme and increasing minimum support price,
disposable income in rural India has been rapidly increasing. However, rural markets present
their own sets of problems. These include poor infrastructure, dispersed settlements, lack of
education and a virtually nonexistent medium for communication. Furthermore, retailers cannot
be present in the entire centre as many of them are so small that it makes them economically
unfeasible.

Time and again marketing practitioners have waxed eloquent about the potential of the rural
market. But when one zeroes in on the companies that focus on the rural market, a mere handful
names come to mind. Hindustan Lever Limited (HLL) is top of the mind with their successful
rural marketing projects like 'Project Shakti' and 'Operation Bharat'. The lynchpin of HLL's
strategy has been to focus on penetrating the market down the line and focusing on price point.
Furthermore, activating the brand in the rural market through activities, which are in line with
the brand itself, is what sums up HLL's agenda as far as the rural market is concerned informs
MindShare Fulcrum general manager R Gowthaman. Amul is another case in point of aggressive
rural marketing. Some of the other corporate that are slowly making headway in this area are
10
Coca Cola India, Colgate, Eveready Batteries, LG Electronics, Philips, BSNL, Life Insurance
Corporation, Cavin Kare, Britannia and Hero Honda to name a few.

Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti. This project
was started in 2001 with the aim of increasing the company’s rural distribution reach as well as
providing rural women with income-generating opportunities. This is a case where the social
goals are helping achieve business goals.

The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the executives of
HUL identifying the uncovered village. The representative of the company meets the panchayat
and the village head and identify the woman who they believe will be suitable as a SA. After
training she is asked to put up Rs 20,000 as investment which is used to buy products for selling.
The products are then sold door-to-door or through petty shops at home. On an average a Shakti
Amma makes a 10% margin on the products she sells.

An initiative which helps support Project Shakti is the Shakti Vani programme. Under this
programme, trained communicators visit schools and village congregations to drive messages on
sanitation, good hygiene practices and women empowerment. This serves as a rural
communication vehicle and helps the SA in their sales.

The main advantage of the Shakti programme for HUL is having more feet on the ground. Shakti
Ammas are able to reach far flung areas, which were economically unviable for the company to
tap on its own, besides being a brand ambassador for the company. Moreover, the company has
ready consumers in the SAs who become users of the products besides selling them.

Although the company has been successful in the initiative and has been scaling up, it faces
problems from time to time for which it comes up with innovative solutions. For example, a
problem faced by HUL was that the SAs were more inclined to stay at home and sell rather than
going from door to door since there is a stigma attached to direct selling. Moreover, men were
not liable to go to a woman’s house and buy products. The company countered this problem by
hosting Shakti Days. Here an artificial market place was created with music and promotion and
the ladies were able to sell their products in a few hours without encountering any stigma or bias.

11
This model has been the growth driver for HUL and presently about half of HUL’s FMCG sales
come from rural markets. The Shakti network at the end of 2008 was 45,000 Ammas covering
100,000+ villages across 15 states reaching 3 m homes. The long term aim of the company is to
have 100,000 Ammas covering 500,000 villages and reaching 600 m people. We feel that with
this initiative, HUL has been successful in maintaining its distribution reach advantage over its
competitors. This programme will help provide HUL with a growing customer base which will
benefit the company for years to come.

These are the major products of HUL in category wise:-

Personal Wash: Lux. Lifebuoy, Liril , Hamam, Breeze, Moti , Dove, Pears

12
LAUNDRY:- Surf Excel, Rin ,Wheel & Ala bleech

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

13
ORAL-CARE:- Pepsodent and Close-up

DISHWASHER:- Vim

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

14
 TOTAL PRODUCT SEGMENT OF HUL DEAL BY THE DISTRIBUTOR

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

OBJECTIVES

1. Since majority of Indian people living in the rural areas successful

disposal of products of a particular company depends upon the marketing
network in those areas in their expansion programme in the field of
marketing.

2. Under the above circumstances steps taken by the HUL to cover up their
marketing network in the rural areas in the Gajapati district with
15
 formation of Shakti groups are applicable other than the distributing
agency & retailers so appointed by the company to do so.

3. The project Shakti performed by the company in the rural area to manage
the marketing network has been considered as a direct link between the
company & rural people in the field of marketing without any
intermediary & such process definitely improve the volume of transaction
with additional marketing support to the company with wide publicity of
their products in those areas.

4. Project Shakti provides engagements to the rural woman in the marketing

activity facilitating to improve their financial condition.

5. The rural consumers are supposed to get their necessities so called the
company products in reasonable price at their door steps.

METHODOLOGY
SCOPE OF THE STUDY

The scope of the study is very much limited. This report is based on the data provided by the
distributers. The geographical scope of the research is limited as it was carried on a limited area
i.e. Gajapati district.

This research is mostly based on primary data. The primary data is collected through the
structured questioner and all the findings and recommendation/suggestions are based on the
distributer’s opinion.

RESEARCH INSTRUMENTS:

16
Method of collecting information is primary data collection method i.e. personal interview and
observations. Primary data have been collected from the distributors by interviewing them and
providing those questionnaire\.This questionnaire is given to the distributors. The questionnaire
which was given by the course facilitators of CSREM were carefully planned, so that distributors
wouldn’t face any difficulties in answering.

RESEARCH DESIGN:

A research design is the specification of methods and procedure for acquiring information
needed. It is the overall operational pattern or framework of the research that stipulates what
information to be collected from which source by what procedures. A research design forms the
framework of the entire research process.

The research design is presented below in the form of a flow chart.

Problem Identification Classification and Tabulation of

Data
Preliminary Investigation
Analysis and Interpretation of
Concept Generation
Data and Graphs
Concept Evaluation and
development Recommendation and
Suggestion
Pilot Study

Preparation and Suggestion of

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

17
LIMITATIONS:

The major Limitations are as follows:-

1) The study was carried out in Gajapati dist. Only, hence the suggestions
and findings are intended for that part only.
2) The sample taken is very small as compared to the total number of
distributors.
3) The major limitation was that the survey was conducted in a short
duration. Hence, lack of time is considered as a major limitation.

18
 4) One of the major limitations of the study is that the entire study is
conducted by only one person so there must be some area which has been
overlooked by the researcher.

In spite of all the limitations, care has been taken to provide the best
possible data.

Analysis
Having discussed about the scope, objectives, source of data, methodology we now concentrate
on the analysis of the data collected through questionnaire. The data were collected personally by
serving a questionnaire to the distributors. Their responses are recorded carefully. Thereafter the
other aspects of TV advertisement, Internet, Magazine, are tabulated and analysis.

From my field survey about the functioning of the project Shakti in Gajapati district, it is
observed that the aim & object of formation of Shakti groups are many fold in nature especially
helpful for the rural woman supported with self employment for them for their economic

19
upliftment. More over in order to ensure well functioning of the project Shakti short term
training programmes & workshops should be organized in regular intervals in rural area by the
concerned agencies on retail marketing so as to enable them to undertake the work more
efficiently for their overall development for a longer period.

Table showing functioning of Shakti groups in the Gajapati district & their year wise
improvement.

YEAR Number of Groups

2004-2005 9
2005-2006 15
2006-2007 24
2007-2008 32
2008-2009 50
60
50
50

40
32
30
24 Column1
20 15
9
10

0
2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

Hindustan Unilever -Solution

Enter rural
Indian market for
OBJECTIVE Hindustan Unilever
long-term
opportunity and
growth
Create
distribution
models involving
SHG community
members and
Micro-distributor
20
micro-credit
financing
STRATEGY

Women’s network

Personally reach
Homes customers in
TACTICS their homes

21
Hindustan Unilever – Benefits

Untapped potential
reached through new
OBJECTIVE Hindustan Unilever sales & distribution
channel

Model replicated
elsewhere
45,000 Shakti
‘ammas' earn
Micro-distributor individual monthly
income of 700-1,000
rupees
STRATEGY
Key partnerships
established with
Women’s network micro-creditors and
SHGs

Micro-entrepreneurs
act as brand
ambassadors,
TACTICS Homes promoting

Standard of living
improvements

Modern trade

Organized retail

Self- service stores

22
UNILEVER: SALES & DISTRIBUTION IN INDIA

General trade

Wholesale

Family grocer

Marginal retail
Rural trade

Multi-purpose

Retail
HUL’s approach to rural distribution

Indirect Direct coverage

A

b
c
c

s
s

y
il

t
i

coverage

Turnover per market

DETAILS OF PRODUCT OF HUL BEING DISPOSED UP IN GAJAPATI

DISTRICT Streamline
50 nos. of Shakti groups have been formed in Gajapati district enrolling 850 Shakti
Ammas in these groups. The retail marketing of all consumer goods except the food items are
being undertaken by the “Ammas” as need of the villagers on regular basis. Moreover the
products HUL are being disposed up through retail marketing in the villages by the retailers,
Shakti / SHG groups as detailed under.

23
 Sales
3% 5%
soaps & detergent
9% personal care products
Beverages
Foods
11% 46%
icecream
others

26%

SWOT Analysis
Strength

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

18
16
14
12
10
FMCG Growth
8 Column1
6
4
2
0
Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009

HUL Outperforms

Project Shakti - Rural India is spread across 500,000 villages and possesses a serious distribution
challenge for FMCG Cos. HUL has come up with a unique and successful initiative wherein the
women from the rural sector market HUL products, and hence, are able to reach the same
wavelength as of the common man in village. Apart from product reach, the initiative also
24
 creates brand awareness amongst the lower strata of society. This has brought about phenomenal
results.

Weaknesses

HUL's market dominance, originating from its extensive reach and strong brand presence,
allowed it to raise the prices even as raw materials were getting cheaper. Hence, though the
volumes decreased, the margins grew, and company was able to earn more profits. But higher
margins attracted competition in areas of operations. HUL's strategy remained focused on
creating power brands and earning higher margins. It was not left with any other option but to try
cutting down the costs in order to protect volumes, if not increase it.

Competitive Pressure Brand relevance

Ability to call shots / Pricing power

Resource employment and Appetite to take risk and stay Ability to evolve and enter
excess cash generation invested newer business

As shown in above figure, the key differentiators for an FMCG player are ability to call shots
and pricing power, and HUL has shown weakness over both these factors.

HUL's weakness was its inability to transform its strategies at the right time. They continued
with the same old strategy which helped them gain profits but were not genuine in this changed
environment. HUL's risk aversion and market myopia led to stagnation of business, and ferocity

25
of competition forced it into a defensive mode. Lack of pricing power in core business and
absence of growth drivers have put HUL on a deflationary mode.

Opportunities

India is one of the world's largest producers of FMCG goods but its exports are miniscule as
compared to production. Though Indian Cos. has been going global, their focus is more towards
Asian countries because of the similar preferences. HUL is one of the top companies exporting
FMCG goods from India. An expansion of horizons towards more and more countries would
help HUL grow its consumer base and henceforth the revenues.

Opportunity in Food Sector - The advent of modern trade has opened up greater opportunities
for HUL to diversify its brand and strength its food division. It could look at introducing
products from its parents stable like margarines and could also look at expanding its Knorr range
of products.

Consumer expenditure on food (US $ billions)

180
160
140
120
100
80
60
40
20
0
Thailand S. Korea Taiwan Brazil Russia UK India China

Well-placed to take advantage of future FMCG Growth - HUL reach out 80% of 207 million
households in the country through various brands. It has a very well-defined product portfolio
spread across many product categories.

26
 Penetration levels for some major categories like skin-cream (22%), shampoo (38%),
toothpaste (48%) and processed foods continue to remain low offerings but great growth
opportunities products.

Threats

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

Findings

The major findings from data analysis are as follows:

1. It is found that placement of HUL product is good as in nearly 95%

outlets, products are found.

2. The villagers are familiar about the goods of HUL and all the consumer
goods are being provided to them which are being seen in each & every
village for its quality, durability & price matters.

3. LUX soap holds the major percentage of sales i.e. 63% in comparison to
its competitors like Dettol, Cinthol, and Santor etc.

4. About 65% of retail owners are aware of the schemes of the company.

5. Fair & Lovely, Ponds talc powder, Rin soap, Clinic plus shampoo, Close-
up toothpaste & Surf detergent powder have been considered as fast
moving goods in the rural area.

27
 6. The “Ammas” in Shakti groups are interested to undertake the retail
marketing activities in rural area due to receive of little more margin in
shape of commission then the retailers.

7. The distributor should take little more incentive for disposal of the goods of HUL so as to
increase the volume of transaction as expected from them by the company.

Suggestions

The following suggestions are given for improvement in the sale of HUL products:

1. Frequent visit of company staff should be ensured so as encourage the retailers in their

marketing activity.

2. More no. of Shakti groups should be formed in different areas for providing engagement

the rural women.

3. Every retailer and Shakti group must be aware of the schemes are introduced by the HUL

from time to time.

4. Prices of costly product should be reviewed in comparison to other company products

and reduced the price if found necessary.

5. Company should hike the profit margin of the Shakti “Ammas” to encourage them in the

retail marketing activities.

6. Company should ensure timely delivery of consumer goods to different rural areas by its

own arrangement and see that all the goods are available with the retailers & Shakti

group in all the time.

28
 7. Company should provide different types of sales training to the Shakti “Ammas”.

8. The commitments of the company to be honest with customers about problems and

shortcomings.

9. Clear, prompt and courteous communication that convey consistent details.

10. Good behavior and dealings by the company staff with the (dealers, retailers,

Shakti groups) so as to encourage them in the marketing activity.

Conclusion

With limited period in hand, best possible effort has been made to know about

the various aspects of HUL products with reference to its competitors. During

our field survey it is observed that the functioning of Shakti groups in rural

areas are seems to be satisfactory and beneficial to the concerned company as

well as to the Shakti groups undertaking retail marketing in those area. Similar

efforts should be taken by the other companies for formation of retail sales

groups in the rural areas basing on the needs of the rural people in their day to

day necessity of goods being produced by them for promotion of their sales

turnover and providing engagement to the rural people. Hope, this study will

help the aspirants, who will take up the similar work in future.

29
 ANEXTURE

Questionnaire
The distribution Network of Hindustan Unilever LTD in rural area (Project “Shakti”)

(Demography Details)

Name: - ……………………………………………………………….

Age: - ……………………………………………………………….

Occupation: - …………………………………………………………..

Place: - …………………………………………………………...

1. Do you have taken distribution agency of any company

YES NO

Which company………………………………..

2. Which are the different HUL products which you are dealing?

3. How you are getting the products (Transportation)

30
 4. What is the mode of distribution?

(I) Personally (II) Use Sales-force

5. What is your order delivery time?

6. Do you take the help of retailers to sell your product?

7. What the frequency of your order.

8. How many “Shakti” group member work with you.

REFERENCE

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

31
Bibliography

1. Philip Kolter, Marketing Management (Prentice Hall of India pvt. Ltd., New Delhi

2. W.J. Stanton, M.J. Etzel, B.J. Walker, Fundamental of Marketing (Mc Graw Hills, New
York)

3. Annual Report (2008) of the company

32