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

    Direct Indirect No Coverage

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    Chart 1.5.3

    Chart 1.5.4

    74%

    7%

    19%

    TATA TEA

    Direct Indirect No Coverage

    69%6%

    25%

    OTHER

    Direct Indirect No Coverage

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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.