Sales Concepts used by HUL

• Law of 250 by Gerard:

• Sales Executives talk to distributors and customers to gain information on prospects who
would be interested in similar types of water purifiers.
• The sales teams approach these prospects further.

• Lead Identification:
• Internal Sources: Software that keep customer and related data.
• External Sources used: Distributors, Wholesalers.
• Web sources: People who inquire based on digital and print media ads.
• 4Ps of Marketing:
• Product: Products are made or designed keeping in mind existing products in the market that
target the same customer segment. Competitor analysis is vital.
• Place: The primary objective is to make sales to the distributor and convince them about the
superior quality and benefits of the product to the distributors customers as we as to the
distributor in terms of value.
• Promotion: New products are promoted with discounts and offers using print media, visual
media and digital media.
• Price: Priced based on the market and competitors. i.e. Penetrative Pricing technique.
• PureIt belongs to a product segment that is crowded by many well known brands and it is difficult
to find brand loyalists. The sales for water purifier are motivated by features and price points,
rather than brand loyalism. Additionally the product category is older and well established. Hence,
Price skimming is not opted.
• Commitment to buying:
• The commitment at the distributor end is based on long term relations that HUL has maintained.
• PureIt is not involved in door to door selling like Eureka forbes.
• The purchase is mostly driven online, showrooms or retail stores.
• There is an internal sales personnel at every retail shop Pureit has its presence in.
• This is how sales is driven at customer end.
• Commitment is taken by purchase at the store.
• Follow ups are taken by the company if the purchase is not made within a certain time limit.

• Supply chain Management:

• New dealers and distributors are acquired in 2 ways by the company.
• Firstly, HUL approaches the dealers for partnership.
• Secondly Dealers approach HUL for partnership.

• Demand Management:
• Company and distributors have a demand forecasted and based on that the stock is delivered.
• Timings:
• Pureit Sales personnels are not required to visit during particular times.
• They have flexible working hours.
• Whenever the customer is available, they need to be ready to make the sales call.

• Discounting:
• Negotiations are mostly concentrated in the middle phase and closing phase because the
purchase is made at the retail store where generally the buyer is present and need not be identified.
• Sales personnel have liberty to facilitate the middle phase by giving certain amounts of discounts
to convert the customer.
• For sales at distributor end, Sales people at HUL have provisions to talk to senior managers and
provide more discounts if the order value is very high.

• Forecasting:
• Sales forecast is done based on a lot of parameters: No. of available sales people and their ability
indices, Previous year targets, demand fluctuations etc.
• Successful Sales:
• At HUL, Sales success is not just a matter of individual growth and success. If the targets are
achieved successfully each time, it is not considered sales success, but if the company grows, if
the company is able to penetrate the market more, then the sales department is considered
successful.

• Sales People are CEO-lite:

• Sales people have to be in contact with the accounts team, the service team, the product team, the
QA/QC team, R&D team and also the legal team.

• Allowances:
• To motivate the retailers, the sales team are facilitated to provide them with gifts based on the
targets, performance achieved by them.