hul report sumit chaturvedi

8/7/2019 Hul Report Sumit Chaturvedi

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To study and analyze the distribution channlem of hul

on refrence of tea and coffee brand and suggest solution

to clear bottleneck

A PROJECT REPORT

Submitted by

SUMIT CHATURVEDI

In partial fulfillment for the award of the diploma

Of

POST GRADGUATE DIPLOMA IN MANAGEMENT

JAGAN INSTITUTE OF MANAGEMENT

JAIPUR

JULY 2010


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Jagan institute of management studies, Jaipur

BONAFIDE CERTIFICATE

Certified that this project report TO STUDY AND ANALYSE THE DISTRIBUTION

CHANNLE OF HUL ON REFRENCE OF TEA AND COFFEE BRAND ANDSUGGEST SOLUTION TO CLEAR THE BOTTLENEACK is the bonafide workof

SUMIT CHATURVEDI of PGDM Batch 2009-2011 who carried out the

project work under my supervision.

SIGNATURE

Ms. POOJA KUDESIAAsst. Professor

Date-21/03/2010


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Acknowledgement

I am grateful to Mr.Prashant sharma whose encouragement ,guidance and support from

the initial to the final level enabled me to develop an understanding of the subject.

I am grateful to Ms.pooja kudesia whose guidance enabled me to complete the project as

per requirement.

Lastly , I offer my regards and blessing to all of those who supported me in any respect

during the completion of the project.

Thanking you,

SUMIT CHATURVEDI


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TABLE OF CONTENT PAGE NO.

1.Cover Page & Title Page .1

2.Bona fide Certificate .......2

3.Acknowledgement ..3

4.Table of Contents ..4

6.Introduction ..5

7.Resarch methodology .10

8.Analysis&finding 13

9.findings 24

10.suggestion 25

11.Bibliography 26


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INTRODUCTION OF ORGANISATION


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COMPANY PROFILE

Vision and mission of HUL

Mission

Unilevers misssion is to add vitality of life.They meet every day needs for

nutrition,hygene, and personal care with brands that help people feel good, look good and

get more out of life.

Vision

The vision of Hindustan Lever is to integrate social, economical, and environmental

considerations into its business and brands. The company also aims to focus on climate

change, water, packaging and sustainable agricultural resources as our key sustainability

themes. The company also focuses on making global partnerships on nutrition and

hygiene issues.

1. Introduction - Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) formerly Hindustan Lever Limited (it was

renamed in late June 2007 as 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. These products endow the

company with a scale of combined volumes of about 4 million tones and sales of nearly

Rs. 13718 crores. HUL is also one of the country's largest exporters; it has been

recognized as a Golden Super Star Trading House by the Government of India. The

mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to

"add vitality to life." HUL meets every day needs for nutrition, hygiene, and personal


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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 52.10% of the

equity. The rest of the shareholding is distributed among 360,675 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. These products are manufactured over40 factories across India. The operations

involve over 2,000 suppliers and associates. HUL's distribution network comprises about

4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban

population, and about 250 million rural consumers.

The distribution network of HUL is analyzed from the following aspects:

1. Evolution of HULs distribution network

2. Transportation & Logistics

3. Channel Design

4. Initiatives taken for channel member management.

5. Field force management


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BUSINESS MODEL OF HUL:


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Brands


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RESEARCH MEHODOLOGY


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RESEARCH

RESEARCH DESIGN

DATA COLLECTION TECHNIQUE

DATA ANALYSIS

RESEARCH

Research has its special significance in solving various operational and market planning

problems of the business and the industry.

Market research is the investigation of the structure and development of the market for the

purpose of formulating efficient policies for purchasing, production and sales.

Operational research refers to application of mathematical, logical and analytical techniques

to the cost minimization and profit maximization problems.

All these are of great help to people in business and industry.

RESEARCH DESIGN

Research Design is needed because it facilitates the smooth sailing of the various research

operations, there by making the research as efficient as possible yielding maximalinformation with minimal expenditure of effort, time & money.


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Research design stands for advanced planning of method to be adopted for collecting the

relevant data and the techniques to be used in their analysis, keeping in view the objective of

the research and the availability of staff, time and money.

Three traditional categories of research design are:

ExploratoryEXPLANTION: The study was conducted by Hindustan lever Ltd in 6-7 areas of Jaipur

mentioned below (source list) for the first time regarding market review and comparative

analysis between unorganized and organized retail stores.. Thus it is an exploratory type

of research.

DescriptiveDATA COLLECTION TECHNIQUE

The data collection technique is of two types-

I1) Primary Data Collection-

The primary data are those data, which are collected afresh, thus happens to be original in

character. It can be collected by questionnaires, interview, observation etc.

2) Secondary Data collection:

Secondary data means the one that is already available i.e. they refer to the data, which has

been collected and analyzed by someone else. In this report the secondary data has been

collected from the companies Sales Booklet, Magazines, Newspapers and form HUL

distributor ,retailer,salesman

Sample Size: Retail Outlets Which I visited in the training.


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ANALYSIS AND FINDING


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Analyze The Entire Distribution Chain


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Role of DepotDepot is not only a agent but also company own office set up at given location .Main role of Depot is following:

1. Highly equipped office with basic infrastructure like telephone, internet, generator, AC

etc.2. Proper Co-ordination with Sales Team & Head Office.3. Adequate transport facility with local cartage and destination freight services withmaterial handling labor are available. Easily operating upcountry markets with doordelivery arrangement.

4.Prompt Services, proper reporting with complete details.5.Perpetual Inventory Control with ageing of stocks.6.Payment Follow up & accounts reconciliation.7.Maintain Cleanliness & Hygiene.8.Properly execute the directions given by the company & delegate to whole channel.9.Timely Informing about market updates, sales etc through available infrastructure liketelephone, email, fax etc.In hul Depot margin is 1%

Role of DistributorDistributor main role is to distribute goods to retailer.

In hul Distributor margin is 4%1. Timely Supply to Retailer.

2. Inventory Control, According to the hul Company Norms a distributor haveminimum 15 days stock in their godown.

3. Focus on Coverage.4. Focus on sales.

5. Make good relation with retailers.6. A distributor should have appropriate godown size.

7. Should have good infrastructure.8. Give Discount timely to sws.9. Focus on institution sales .

10. Should have risk taking capability.


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Role of salesmanSalesman at least must have the following attitude :1. Serving all people as the candidates of our customer.

2. Just put in our mind that there is no second chance to meet the customer, only today.3.Make list (people or company contact details)4. Having good product knowledge.5. Pro active in making relationship with any body.

6. Open mind..7. Keep learning

8. Set written goals.9. Make a plan; how to realize the goals.

10. Work the plan.11. After all; the salesman may expect the best for the result


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Organized retail stores:

a. National Handloom.b. Reliance Retail (Reliance Fresh)c. Others

1. Sample size:- A total of410 unorganized retail stores with 30 organized retailstores and 100 consumers.

Analysis of unorganized retail outlets

1.1Coverage of the companyTable 1.1.1

BRAND Direct Indirect No Coverage

HUL 367 43 0

Chart 1.1.1

90%

10%

HUL

Direct Indirect


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Interpretation:

hul covers all the retail outlets under study and 90% were under direct coverage i.e

salesman of hul distributor (of that area) visits weekly on these stores. Rest 10% outlets

source the hul products either from wholesaler or any other retail outlet.

1.2Categorization of retail outlets based on HUL salesTable 1.2.1

CATEGORY NO. OF OUTLETS % SHARE

CATEGORY ' A ' (No Coverage) 0 0.0

CATEGORY ' B ' (1-5000) 230 56.1

CATEGORY ' C ' (5001-10000) 99 24.1

CATEGORY ' D ' (10001-15000) 33 8.0

CATEGORY ' E ' (15001-20000) 18 4.4

CATEGORY ' F ' (>20000) 30 7.3


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Chart 1.2.1

Interpretation:-

The above pie chart shows the classification of retail outlets present in areas under study.

The categorization is made on the basis of monthly sales of hul products by the retailers

and the whole sellers. It has been divided into 6 categories mentioned above.

There are no A category outlets as hul covers all the Retail outlets under study whereas

category B has highest share of 56% with 230 outlets and most of total retail outlets fall

under Category B & Category C (80%) visited by the Researchers here.

It can be seen that only 7% outlets fall under category E i.e. greater than 20000 Rs

0%

56%24%

8%

5%7%

NO. OF OUTLETS

CATEGORY ' A ' (No Coverage) CATEGORY ' B ' (1-5000)

CATEGORY ' C ' (5001-10000) CATEGORY ' D ' (10001-15000)CATEGORY ' E ' (15001-20000) CATEGORY ' F ' (>20000)


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1.3Coverage with respect to competitorsTable 1.5.1

BRAND Direct Indirect No Coverage

HUL 367 43 0

GODREJ 308 21 81

TATA 305 27 78

OTHER 281 26 103

Chart 1.5.1

Chart 1.5.2

90%

10% 0%

HUL

Direct Indirect No Coverage

75%

5%20%

GODREJ



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Chart 1.5.3

Chart 1.5.4

74%

7%

19%

TATA TEA


69%6%

25%

OTHER



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Chart 1.5.5

Interpretation:

Among the competitors only hul covers most of the outlets (90%) directly, rest covers

approx. 70-75 % of outlets directly. Also tata tea, godrej & other has no presence in

approx. 20-25 % outlets but hul full coverage. This is the strength of hul company.

0

50

100

150

200

250

300

350

400

DirectIndirect

No Coverage

367

43

0

308

21

81

305

27

78

281

26

103


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FINDING

After close study of the present market situation prevailing in the areas assigned the

researchers, following are the observations.

1. Availability of all the products is not uniform in all the arias. For instance, thesupply is not meeting the demand in particular areas or shops.

2. Some of aria like wall city , sanganer where Distributor Focus On OnlyWholesale market not retail market.

3. Beat plan & Route is not there in distributor point .4. Root listing is not there in distributor point.5. Some of the distributor are not running schemes on HUL products in retail

market.

6. Supply of goods is not proper. Because in some aria like Sanganer , VKI wheredistributor is not giving timely supply.

7. BRU and 3ROSE have very less availability.8. Schemes, Discounts, offers, coupons etc. are not reaching to the retailers and

customers whereas tata tea and godrej on the other hand are successfully doing that.

8. Retailers and even wholesalers are not satisfied with the supply system of hul.9. It was found that Taza is most favored brand and is sold most.

10.TATA TEA is emerging as major Competitor in the organized retail outlets.


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RECOMMENDATIONS & SUGGESTIONS

1. Company should start a program for the loyal retailers and wholesalers to reducetheir complaints by providing timely supply and replacement. This will help in

increasing their sales.

2. The packaging of taza and 3 rose (75g and 50g packs) must be improved for itsbetter sales.

3. Salesmen should be properly dressed and should have good communication skillsto effectively promote the products, by making sure that the product reaches each

and every retailer and also increase the visibility of the products by arranging the

product clearly on the shelf or rack and show its prominence.

4. To increase the number of stock keeping units {SKU} available in the retailersstore. Each salesman should stress the retailers to keep the maximum SKUs and to

maintain these SKUs throughout. With this, the replacement of the damaged and

expired packs should be prompt and without any hassles, so that retailer can be

saved from the loss of the expired and damaged goods.

5. Company should adopt innovative packaging techniques, as they have their ownpackaging unit as consumers are highly attracted towards new packaging.

6. The company should take proper measures that the schemes and offers are notgulped by the middlemen ,and that it benefits the retailers and customers.

7. Launching of several promotional schemes for existing wholesalers anddistributors. For instance, it has started the Vijeta - Rishta Jeet Ka scheme last

year to provide a platform for the wholesaler and HUL to grow the business by

earning points and redeeming them.


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Bibl iography:

1. www.hul .com2. Search Engine www.Google.com3. Information collected by distributor and retailers.

hul report sumit chaturvedi

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