CH Institute of Management and Communication

PGDM-IInd

TERM-IVth

Summer Project ReportOn

Impact of Wal-mart (Best price) on Rural Wholesale

SUBMITTED TO:- SUBMITTED BY:-

CHIMC College Indore CHIMC College Indore Amit Kumar Gupta Amit Kumar Gupta

CHIMC PGDM Batch 2 Page 1

Hindustan Unilever LimitedHindustan Unilever Limited

Summer Internship Project ReportOn

Impact of Wal-Mart (Best Price) on rural wholesale

Submitted ByAmit Kumar GuptaUnder the Guidance of

Dr. Mayank Saxena Mr. Satish KarekarDirector of CHIMC Indore Zone Manager of HUL Bhopal (MP) Prof. Girish BhatiaProgram coordinater of PGDM CHIMC Indore

CHIMC PGDM Batch 2 Page 2

CHIMC PGDM Batch 2 Page 3

CONTANTCONTANT

SR.SR. NONO

TOPICTOPIC PAGE NO.PAGE NO.

11 ACKNOWLEGEMENE ACKNOWLEGEMENE 44

22 CERTIFICATECERTIFICATE 55

33 SELF CERTIFICATE SELF CERTIFICATE 66

44 INTRODUCTION OF HUL 77

55 HISTORY TO HULHISTORY TO HUL66 INTRODUCTION OF

WAL-MART(BEST PRICE)

8-108-10

66 MISSIONMISSION 1111

77 VISSIONVISSION 1212

88 OBJECTIVEOBJECTIVE 1313

99 SEGMENTATIONSEGMENTATION 1414

1010 MARKETING MIX 15-3415-34

1111 MAJOR COMPETITOR 3535

1212 IMPACT OF BEST PRICE 36-4136-41

1313 PROBLEM IDENTIFY 4242

1414 RESEARCH METHODOLOGY 43-4743-47

1515 SWOT ANALYSIS 48-4948-49

ACKNOWLEGEMENETACKNOWLEGEMENET

CHIMC PGDM Batch 2 Page 4

It is our pleasure to place on record my sincere gratitude towards Mr. SATISH

KAREKAR their precious time providing continuous ideas and expert guidance to

My Project Report. It was their direction and encouragement at every moment and

Step that motivated me to steer the research work confidently and successfully.

I am also thankful my college CHIMC which provides me not only books but

Also Practical knowledge by this i learn a lot. I especially thankful to

INTERNET that has to provide me valuable Guidance, Which is Helpful to

Fulfillment my Project Report.

DECLARATIONDECLARATION

CHIMC PGDM Batch 2 Page 5

I am AMIT KUMAR GUPTA of PGDM (2010-2012) studying at CHIMC Indore Solemnly declare that the

project work titled- “ IMPACT OF WAL-MART (BEST PRICE) ON RURAL WHOLE SALE” was carried

out by me at HINDUSTAN UNILEVER, in partial fulfillment of the PGDM program me. This program me

was undertaken as a part of Academic curriculum

According to the University rules and norms and by no commercial interestand motives.

AMIT KUMAR GUPTA

CERTIFICATECERTIFICATE

This is to certify that the Project title Impact of Wal-Mart (Best price) on

CHIMC PGDM Batch 2 Page 6

Rural Wholesale is a true work carried out by AMIT GUPTA student

of P.G.D.M  of CH Institute of Management & Communication

INDORE for fulfillment of a project report. He has worked under our guidance

and direction. His work is found to be satisfactory and complete in all respect.

SELF CERTIFICATESELF CERTIFICATE

CHIMC PGDM Batch 2 Page 7

This is to certify that the PROJECT entitled Impact of Wal-Mart (Best price) on

Rural Wholesale by me is an authentic work carried out for the partial fulfillment

of the requirements for the award of the PGDM under the guidance Of

Mr. SATISH KAREKAR The matter embodied in this project work as not been

Submitted earlier for award of diploma to the best of my knowledge and belief.

INTRODUCTION OF HULINTRODUCTION OF HUL

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer

CHIMC PGDM Batch 2 Page 8

Goods Company with a heritage of over 75 years in India and touches the lives of

two out of three Indians.

HUL works to create a better future every day and helps people feel good, look

good and get more out of life with brands and services that are good for them and

good for others.

With over 35 brands spanning 20 distinct categories such as soaps, detergents,

shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged

foods, ice cream, and water purifiers, the Company is a part of the everyday life of

millions of consumers across India. Its portfolio includes leading household brands

such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline,

Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru,

Knorr, Kissan, Kwality Wall’s and Pureit.

The Company has over 16,000 employees and has an annual turnover of

around Rs.19, 401 crores (financial year 2010 - 2011). HUL is a subsidiary of

Unilever, one of the world’s leading suppliers of fast moving consumer goods with

strong local roots in more than 100 countries across the globe with annual sales of

about €44 billion in 2011. Unilever has about 52% shareholding in HUL.

HISTORY OF HULHISTORY OF HUL

Year Milestones 1888 Sunlight soap introduced in India.

1895 Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai,

Chennai, Kolkata,and Karachi.

1902 Pears soap introduced in India.

CHIMC PGDM Batch 2 Page 9

1903 Brooke Bond Red Label tea launched.

1905 Lux flakes introduced.

1913 Vim scouring powder introduced.

1914 Vinolia soap launched in India.

1918 Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs,Jurgens, Verschure Creameries, and Hartogs.

1922 Rinso soap powder introduced.

1924 Gibbs dental preparations launched.

1925 Lever Brothers gets full control of North West Soap Company.

1926 Hartogs registers Dalda Trademark.

1930 Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie.

1931 Hindustan Vanaspati Manufacturinsg Company registered on November 27; Sewrifactory site bought.

1932 Vanaspati manufacture starts at Sewri.

1933 Application made for setting up soap factory next to the Vanaspati factory at Sewri;Lever Brothers India Limited incorporated on October 17.

1934 Soap manufacture begins at Sewri factory in October; North West Soap Company'sGarden Reach Factory, Kolkata rented and expanded to produce Lever brands.

1935 United Traders incorporated on May 11 to market Personal Products.

1937 Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM.

1939 Garden Reach Factory purchased outright; concentration on building up DaldaVanaspati as a brand.

1941 Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company

CHIMC PGDM Batch 2 Page 10

acquires ownsales force.

1942 Unilever takes firm decision to "train Indians to take over junior and seniormanagement positions instead of Europeans".

1943 Personal Products manufacture begins in India at Garden Reach Factory.

1944 Reorganisation of the three companies with common management but separatemarketing operations.

1947 Pond's Cold Cream launched.

1951 Mr. Prakash Tandon becomes first Indian Director. Sham nagar, Tiruchy, and Ghaziabad Vanaspati factories bought.

1955 65% of managers are Indians.

1956 Three companies merge to form Hindustan Unilever Limited, with 10% Indian equityparticipation.

1957 Unilever Special Committee approves research activity by Hindustan Unilever.

1958 Research Unit starts functioning at Mumbai Factory.

1959 Surf launched.

1961 Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205

managers are Indians.

1962 Formal Exports Department starts.

1963 Head Office building at Backbay Reclamation, Mumbai, opened.

1964 Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched.

1965 Signal toothpaste launched; Indian shareholding increases to 14%.1966 Lever's baby food, more new foods introduced; Nickel catalyst production

begins;Indian shareholding increases to 15%. Statutory price control on Vanaspati; Taj Mahal tea launched.

1967 Hindustan Unilever Research Centre, opens in Mumbai.

CHIMC PGDM Batch 2 Page 11

1968 Mr. V. G. Raja dhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit commissioned at Andheri; informal price control on soap.

1969 Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched.

1971 Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched.

1973 Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha.1974 Pilot plant for industrial chemicals at Taloja; informal price control on

soaps withdrawn; Liril marketed.1975 Ten-year modern isation plan for soaps and detergent plants; Jammu

project work begins; statutory price control on Vanaspati and baby foods withdrawn.

1976 Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning.

1977 Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to18.57%.

1978 Indian shareholding increases to 34%; Fair & Lovely skin cream launched.1979 Sodium Tripolyphospate plant at Haldia commissioned.1980 Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever

shareholding in the company comes down to 51%.1982 Government allows 51% Unilever shareholding.1984 Foods, Animal Feeds businesses transferred to Lipton.

1986 Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds comesout; Khamga on Soaps unit and Yavatmal Personal Products unit start production.

1988 Launch of Lipton Taaza tea.1990 Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.1991 Surf Ultra detergent launched.1992 HUL recognised by Government of India as Star Trading House in Exports.1993 HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with

the company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group.

1994 HUL forms Unilever Nepal Limited, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HUL acquires Kwality and Milk food 100% brand names

CHIMC PGDM Batch 2 Page 12

and distribution assets. HUL introduces Wall's.1995 HUL and Indian cosmetics major, Lakme  Ltd., form 50:50 joint venture

– Lakme Lever Ltd.; HUL enters branded staples business with salt; HUL recognised as Super Star Trading House.

1996 Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of Group company, Brooke Bond Lipton India Limited, with HUL, with effect from January 1;HUL introduces branded atta; Surf Excel launched.

1997 Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centres also come up.

1998 Group company, Pond's India Ltd., merges with HUL with effect from January 1, 1998.HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd.

2000 Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India.

2002 HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centres.

2003 Launch of Hindustan Lever Network; acquisition of the Amalgam Group.

2005 Launch of "Pureit" water purifiers.

INTRODUCTION OFINTRODUCTION OF

WAL MART (BEST PRICE)WAL MART (BEST PRICE)

1960s:

• Sam Walton opens first discount store in Rogers, AK.

• 24 stores in Arkansas with $24 million in sales.

• Two stores open outside of Arkansas in Missouri and Oklahoma.

CHIMC PGDM Batch 2 Page 13

• Wal-Mart is incorporated.

1970s:

• Home office and Distribution Center opens.

• Company is listed on the Hew York Stock Exchange.

• Acquires 16 Mohr-Value stores and Hutcheson Shoe Company.

• 276 stores, 21,000 employees, and $1.248 billion in sales.

1980s:

• Sam Club opens and Largest distribution center opens to-date

• Acquires Kuhn’s Big K, Grand Central Shoes, and Woolco stores

• Forbes magazine ranks Wal-Mart #1 retailer for eight years straight

• 882 stores, 104,000 employees, and $8.4 billion in sales

• Wal-Mart Satellite Network (largest private satellite communication in U.S. linking all facets of company operations)

• Celebrates 25th anniversary

CHIMC PGDM Batch 2 Page 14

1990s:

• Opens stores in Mexico, Puerto Rico, Canada, Argentina, Brazil, Germany and England

• Acquires Western Merchandisers, Pace Warehouse Clubs, Woolco, Interspar, Wertkauf, and ASDA Group

• 1,995 stores, 1,140,000 employees, 239 super-centers, 433 Sam’s Club, 276 international stores, and $105 billion in sales.

2000s:

• Fortune magazine ranks Wal-Mart 5th “Global Most Admired All-Stars”

• Hispanic Business magazine ranks Wal-Mart in “Top 25 Diversity Recruitment Programs”

• Owns 95.1% share in Seiyu stores, Japan

• 6,200 facilities globally, 1.6 million employees, and $345 billion in sales

• Joint-venture with Bharti Enterprises, India – est. Bharti Wal-Mart Private Limited

CHIMC PGDM Batch 2 Page 15

• Opens stores in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and South Korea

• 3,000th international stores opens in Sao Paulo, Brazil

MISSIONMISSIONThe company’s Mission is to “Add Vitality to life” by meeting every day needs for

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

good ,and get more out of life.

True to its mission of adding vitality to life right from the morning cup of tea to the

brushing routine bed time, the company and its brands contribute in their own little

ways to making the lives of people easy, Meaningful and happy.

This mission of HUL inspires over 15000 employees with 35 power brands.

CHIMC PGDM Batch 2 Page 16

VISSIONVISSION

The Company’s vision is to Sustainable, profitable growth, creating long-term

Value for company’s shareholders their people and their business partners.

CHIMC PGDM Batch 2 Page 17

OBJECTIVEOBJECTIVEThe Company’s objective is to earn the love and respect of india by making a real

difference to the lives of million Indians.

HUL considers quality as one of the principle strategic objectives to guarantee its

Growth and leadership in the markets in which it operates. The company is

Committed to responds creatively and competitively to the changing needs and

Aspirations of their consumers through relentless pursuit of technological

Excellence, innovation and quality management across their business and offer

Superior quality products and services those are appropriate to the various price

Points in the market as well as to their commitment to building shareholder value.

CHIMC PGDM Batch 2 Page 18

SEGMENTATIONSEGMENTATION

It is a process of dividing a potential market in to distinct sub-market of consumers

with common needs and Characteristics.

As we know that HUL’s product is the most useful for everyone. We use the

product from morning to till we sleep.

It has many varieties of product which is used by everyone from the age of 5 to 60

years. But according to me Teenagers (age 14 to 35) use the product the most.

There are three classes of segments (upper, middle and lower) according to the

Income.

CHIMC PGDM Batch 2 Page 19

MARKETING MIXMARKETING MIX

Marketing mix describes the specific combination of marketing elements and used

to achieve an organization or individuals objectives and satisfy the target market.

These are some elements of marketing mix------

Product:-

There are many product lines---

1.Home and personal Brands.

2.Food Brands.

CHIMC PGDM Batch 2 Page 20

Home and personal Brands:-

Our personal care brands, including Axe, Dove, Lux, Pond's, Rexona and Sunsilk,

are recognised and love by consumers across India. They help consumers to look

good and feel good – and in turn get more out of life.

HUL has a diverse portfolio of brands offering home care solutions for millions of

consumers across India.

A. Personal WashB. LaundryC. Skin CareD. Hair CareE. Orel careF. DeodorantsG.Color Cosmetics

CHIMC PGDM Batch 2 Page 21

A. Personal wash :- Lux, Life buoy, Liril, Hamam, Dove, Pears, Breeze, Rexona.

Lux

Lux – For soft and smooth skin!

Lifebuoy

Lifebuoy is available in multiple variants in soaps and specialist formats such as liquid hand wash, catering to the entire family.

Liril 2000

Liril 2000-Now come closer to your loved ones.

CHIMC PGDM Batch 2 Page 22

Hamam

Holistic skin care experiences perfected over the ages to deliver healthy, beautiful skin.

dove

Dove stands for real beauty. All around the world, Dove is making real women feel more beautiful.

Pears

Pears – the purest and most gentle way to skincare.

Breeze

Breeze, with the goodness of glycerin gives soft, fragrant and smooth skin.

CHIMC PGDM Batch 2 Page 23

Rexona

Rexona gives you silky skin irresistible to touch that keeps the romance alive.

B. Laundry:- Serf excel, Rin, Wheel, Vim, cif, Comfort, Domex, sunlight.

Surf Excel

Giving your kids the freedom to get dirty and experience life, safe in the knowledge that Surf Excel will remove those stains.

Rin

Rin provides ‘best in class whiteness’ which is demonstrable.

CHIMC PGDM Batch 2 Page 24

Active Wheel

New Active Wheel – with Power of lemons and freshness of thousands of flowers.

Vim

Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

Cif

Cif- the best cleaner to let you shine.

CHIMC PGDM Batch 2 Page 25

Comfort

The world’s largest fabric conditioner brand.

Domex

The sheer power of Domex bleach gives you the confidence you need, eradicating all known germs.

Sunlight

Sunlight is a color care brand.

CHIMC PGDM Batch 2 Page 26

C. Skin Care:- Fair & lovely, Pond’s, Vaseline.

Fair & Lovely

More than 30 years ago, a unique brand was born. Wrapped within a humble lavender tube, it went on to become the World’s No.1 Fairness cream.

Pond’s

Get the expert to look after your skin.

CHIMC PGDM Batch 2 Page 27

Vaseline

Your skin is amazing. It deserves to be treated as such.

D. Hair Care:- Sunsilk, Clinic Plus, Lux, Dove ,Clear.

Sunsilk

Sunsilk has had a re-style.

Clinic Plus

Clinic Plus - makes hair inside strong, outside long.

Clear

CHIMC PGDM Batch 2 Page 28

New Clear with Essential Oils, guarantees Zero dandruff and leaves your hair feeling fabulous.

E. Oral Care:- Pepsodent, Close-up,

Pepsodent

Pepsodent India is committed to improve the overall Oral health of Indians.

Closeup

Freshness that brings you Closer.

CHIMC PGDM Batch 2 Page 29

F. Deodorants:- Axe, Rexona.

Axe

Axe with Best Quality Fragrance.

Rexona

Rexona gives you silky skin irresistible to touch that keeps the romance alive.

G. Colour cosmetics:- Lakme.

CHIMC PGDM Batch 2 Page 30

Lakme

Lakme is an ally to the Indian Woman and inspires her to express her unique beauty and sensuality. Thus, enabling her to realize the potency of her beauty.

2. Foods Brands:- HUL is one of India’s leading food companies. Our passion

for understanding what people want and need from their food - and what they love

about it - makes our brands a popular choice.

A. TeaB. CoffeeC. FoodsD. Ice Cream

Red Label

Brooke Bond Red Label… 'Chuskiyaan Zindagi ki'

Brooke Bond Taaza

CHIMC PGDM Batch 2 Page 31

Brooke Bond Taaza

Brooke Bond Taj Mahal

Brooke Bond Taj Mahal is an exclusive selection of teas for the discerning consumer.

Brooke Bond Sehatmand

BB Sehatmand – Jo Sehatmand Woh Aage Har Dum (One who is healthy is a step ahead…. Always)

Lipton

Lipton has a range of vitality teas that truly encompass the goodness of tea.

CHIMC PGDM Batch 2 Page 32

Brooke Bond 3 Roses

Playful banter, a little mischief, serious conversation… there’s no time for young couples like the time spent sharing a cup of 3 Roses.

Bru

Bru se hoti hain khushiyaan shuru…

Modern

Modern – A Wholesome & Nourishing, Hygienically produced & Reliably Safe Bread.

Kissan

CHIMC PGDM Batch 2 Page 33

With Kissan, good food is loved not shoved.

Knorr

Knorr helps families make meal times special, nutritious, tasty and healthy.

Annapurna

Partnering with the mom in nurturing her dreams, Annapurna Atta is aimed at helping her provide wholesome tasty nutrition to her family. 

Kwality Wall’s

A good honest scoop of daily pleasure.

CHIMC PGDM Batch 2 Page 34

Price:-

A price is the flexible element than other. It is based on revenue.

HUL’s is the target to the upper, middle and lower class customer so the price of their process products is not much high.

They give discount also on their product. They also offer “Buy one Get one free”.

Hul gives special discount of some product such as Lux & Lifebuoy gives 3%,

They give scratch card on wheel soap, and they give special offer on display window, two windows Rs.300 and four windows Rs.600.

They give 5% extra discount on bill to wholesaler, distributer are also give 1.5% discount on bill.

CHIMC PGDM Batch 2 Page 35

PRODUCT NAME RATE MRPLUX 34gm 4.63/- 5/-LUX 65gm 9.26/- 10/-LUX 90gm 16.65/- 18/-LUX Fresh set(3*90)gm 48.15/- 52/-LIFEBUOY 81gm 9.26/- 10/-LIFEBUOY 120gm 16.65/- 18/-LIFEBUOY (3*90)gm 35.19/- 38/-LIFEBUOY (4*90)gm 64.81/- 66/-DOVE 50gm 18.18/- 20/-DOVE 75gm 35.19/- 38/-LIRIL 75gm 23.15/- 24/-REXONA 97gm 16.67/- 18/-HAMAM 100gm 19.44/- 21/-BREEZE 38gm 3.74/- 5/-RIN SERF EXCIL 72gm 6.48/- 7/-RIN SERF EXCIL 100gm 9.26/- 10/-RIN SERF EXCIL 250gm 23.15/- 25/-RIN SERF EXCIL 384gm 35.19/- 38/-WHEEL 152gm 4.35/- 5/-WHEEL 105gm 2.62/- 3/-VIM BAR 95gm 4.63/- 5/-VIM BAR 180gm 9.26/- 10/-VIM BAR 360gm 18.52/- 20/-VIM BAR (set3)gm 38.90/- 42/-PEPSODENT 20gm 4.54/- 5/-PEPSODENT 40gm 9.9/- 10/-PEPSODENT 80gm 25.45/- 28/-PEPSODENT 200gm 54.55/- 60/-CLOSE UP 35gm 9.9/- 10/-CLOSE UP 40gm 13.64/- 15/-CLOSE UP 80gm 30/- 33/-CLOSE UP 150gm 54.55/- 60/-FARI & LOVELY 4gm 3.36/- 4/-FARI & LOVELY 9gm 6.36/- 7/-

CHIMC PGDM Batch 2 Page 36

FARI & LOVELY 15gm 18.18/- 20/-FARI & LOVELY 25gm 37.27/- 41/-FARI & LOVELY 50gm 69.9/- 76/-FARI & LOVELY 80gm 100/- 111/-

Promotion:-

The promotion methods used by the organization to promote its product awareness in the market are----

Advertisements:-

The ads are displayed in the news paper with present offers in running.

Electronic Media:-

Ads are displayed at different TV channels, FM, and Radio to create awareness among the people in Urban as well as in Rural areas.

Seasonal Discount:-

Special offer schemes are offered to customers on the festival, occasion to promote sales.

CHIMC PGDM Batch 2 Page 37

Place:-

It is important to marketing activities that make products available to consumer at

right time and in a convenient location so these products are available at shopping

mall, outlet or any grocery shop which is nearby home .

A person can find these products anywhere.

CHIMC PGDM Batch 2 Page 38

Contribution to different sectors

Home & Personal 74.30%

Foods 16.20%

Exports 7.30%

Others 2.20%

74%

16% 7%

2%

Home & Personal

Foods

Exports

Others

CHIMC PGDM Batch 2 Page 39

Coverage area’s

coverage Area No. of counterRaisen 100Berasia 60Mandideep 70Obedullaganj 75Indus Town 40

29%

17%

20%

22%

12%

Raisen

Berasia

Mandideep

Obedullaganj

Indus Town

CHIMC PGDM Batch 2 Page 40

Major competitors

Procter and Gamble (P & G) India.

Godrej Consumer Products LTD.(GCPL)

Dabur India LTD.

Colgate Palmolive India LTD.

Marico Limited.

Indian Tobacco Company (ITC)

Gillette

John son & Johnson

Britannia

Amul

CHIMC PGDM Batch 2 Page 41

Bharti Wal mart (Best Price)

(It has opened 22 Nov.2010)

CHIMC PGDM Batch 2 Page 42

Impact of Bharti Wal -mart (Best Price)

Awareness

Always Low Prices"Always Low Prices" That was Sam Walton's pricing philosophy when he opened the first Wal-Mart in 1962. Today, we're still committed to bringing you great products at our Every Day Low Prices, whether you're shopping in your local store or at Wal-Mart.

It is based on cash-and-carry store

Self-service store offers business members multiple benefits of price, convenience, choice, quality and hygiene all under one roof

Unique ‘Mera Kirana’ and Business Solutions Centre created to share solutions with small and medium retailers on best practices in assortment planning, layout and fixtures, displays, backroom, licenses, hygiene, customer retention, accounting and value added services.

‘My Partner’ programme that includes seminars on taxation for kirana owners, food safety & hygiene workshops & live demonstrations for hotels, restaurants and caterers.

CHIMC PGDM Batch 2 Page 43

Facility

WHO CAN BE A MEMBER?

Businessmen which include:

Retailers

Wholesalers

Manufacturers

Traders

Self employed professionals

These all must have proper business license or vat/tot number, with past 2 months sales report.

AGE:18 years and above.

All the members will be given a card , which they have to show at the time of entrance in the premises.

One businessman will be given two more additional cards for other members of his family.

Membership Cards are made free of cost.

CHIMC PGDM Batch 2 Page 44

THE BENEFITS OF BECOMING A MEMBER

Low and transparent prices.

All items under one roof.

New and excitement items.

Relevant items for your business.

Freehand hygienic food items.

Targeted customers

Retailers

Wholesalers

Institutional customers

Retail buyers are not encouraged by the Bharti- Wal-Mart BEST PRICE modern

Wholesale, but this segment is also giving a significant business to company.

CHIMC PGDM Batch 2 Page 45

Major clients

Border security force

Army

Air force

Medium and small retailers

It has tie-ups with 30,000 retailers and 8,000 suppliers across the country.

General information

There is a minimum fixed quantity for some of the product categories.

No maximum limit.

Same and fair price for small and big retailers or wholesalers.

The customers who purchase in bulk have some negotiation power In some product category.

The security system is very good.

Cashiers are provided with buzzers/alarms, if any problem occurs they press it.

PRODUCTS

Multi brand and multi category store with 7000 different items.

CHIMC PGDM Batch 2 Page 46

Major categories

FMCG

Consumer durables

Dairy products

Fruits and vegetables

Tobacco

Stationary

( All products are from Indian only).

Growth

By and large growth is increasing because they are cover all the rural small and big Retailer and wholesaler; they are also given the always low price.

Problem identify

CHIMC PGDM Batch 2 Page 47

Whole seller and Retailer Problem

To collect the money for pay.

Supply chain management.

Distributer Problem

Decrease of sales.

Collection of the money in the market.

Research methodology The information obtained for the study is from secondary data sources.

CHIMC PGDM Batch 2 Page 48

Secondary data comprises of information obtained from annual reports, journals, and brochures of different FMCG Company’s.  

It also includes organizational manuals and other important documents maintained and published by various FMCG companies. It also includes information collected from websites, business magazines, business news papers etc. Moreover it also contained information’s collected from the various pamphlets published by different FMCG companies.

Research Design: A research design specifies the method and procedures for conducting a particular study. It can broadly be defined grouped as Exploratory Research, Descriptive Research and Causal Research.

An Exploratory Research is a preliminary investigation, which does not have a rigid design &focuses on the discovery of the new ideas.

A Descriptive Research is a well structured study undertaken when the researcher wants to know the characters tics of certain group.

A Causal Research is undertaken when the researcher is interested in knowing the cause effect relationship between two or more variables. In this research the descriptive research is u s e d t o a n a l y z e t h e d i f f e r e n t o u t l e t s t h a t a n s w e r “ w h o , w h a t , w h e n , w h e r e a n d h o w ” o f t h e subject under investigation. Data is the key activity of marketing research.

Data can be obtained from two important sources namely:-1. Primary2. secondary

CHIMC PGDM Batch 2 Page 49

Primary Data:P r i m a r y d a t a a r e g a t h e r e d f o r t h e s p e c i f i c p u r p o s e o r f o r a s p e c i f i c r e s e a r c h  project, consist of original information for the fulfillment of project objective.When the data are required for the particular study can be found neither in the internal record of t h e e n t e r p r i s e s n o r i n p u b l i s h e d s o u r c e .I n s o m e c a s e s i t m a y b e c o m e n e c e s s a r y t o c o l l e c t original data. Primary data can be collected in four ways:-

1. Observation.2. Focus.3. Survey.4. Experiment.

Secondary data:Secondary data are the data, which already exists somewhere. Secondary data provide starting point for research and after that the advantage of low cost and ready availability. Secondary data can be divided into two types:

1. Internal data.2. External data.

When researcher uses the data that has already been collected by other data are called secondary data. Secondary data can be obtained from journals i.e. internal sources report, government publication and books, professional bodies etc. Internal data are reports and memos generated within an organisation to facilitate its operations and annual report. External data are those specially produce for outside consumption.

Research Methodology:

CHIMC PGDM Batch 2 Page 50

A questionnaire was designed.

The dealers were visited personally and a detailed feedback and questioning session

was carried out.

The internal shop display across brands were put inside the market mapping sheets to

get the share of Display among all brands across product categories.

Limitations of the Survey:

Due to Lack of time, not all the dealers were questioned.

Not all dealers were willing to reveal figures regarding sales of various products and

brands from their counter.

Findings of the Study:

CHIMC PGDM Batch 2 Page 51

There was a very high correlation between internal shop display and amount of brand

sale in all the counters.

The most important factor for a dealer to stock a particular company’s product was not

margin but the after sales service provided by the company as they have come to the

conclusion that customer loyalty is the best form to increase sales and loyalty can only

be achieved by selling them products of companies which had an excellent after sales

service network.

It was the convincing power of the Dealer which finally persuades the consumer to choose a particular brand and not totally the strategies or action plans implemented in the corporate offices so there is a high need to stay in touch with the market.

Swot analysis

Strengths:-

CHIMC PGDM Batch 2 Page 52

Strong brand Portfolio, Price quality & Variety.

Innovative Aspects.

Presence of established distribution network’s in both urban & rural areas.

Solid base of the company.

Corporate social responsibility.

Weakness:-

“Me-too” products which illegally mimic the labels and brands of the established brands.

Strong competitors & availability of the substitute products.

Low exports levels.

High price of the some products.

Opportunities:-

Large domestic market-over a billion populations.

Untapped rural market.

Changing life style & rising income levels, i.e. increasing price income of customers.

CHIMC PGDM Batch 2 Page 53

Export potential and tax & duty benefits for setting exports.

Threats:-

Tax and regulatory structure.

Mimic of brands.

Removal of import restrictions resulting in replacing domes.

Temporary slowdown in economy can have an impact on FMCG.

Recommendation

As it is obvious from the study the products of HUL have approached the high water mark of sale in the global consumer market. However, there are genuine reasons to observe that they have yet to attain the cutting edge status on many counts. In this regard a few suggestions can be m a d e t o g i v e t h e r e q u i r e d b o o s t t o t h e m a r k e t i n g p r o s p e c t s o f H U L p r o d u c t s . T h e s e c a n b e summed up as follows:

CHIMC PGDM Batch 2 Page 54

An attempt should be made by HUL management to tap all the potentials offered by the global market by devoting a more substantial, efficient and better equipped resource base. This task can be accomplished in the first place by implementing a stronger and more ending distribution channel for various products so that even those sections of consumers who are not accessible so easily, can be covered with greater ease.

E f f i c i e n t   i n f r a s t r u c t u r a l   b a s e   c o u p l e d   w i t h   b e t t e r   a n d   m o r e  c o m p r e h e n s i v e   a d v e r t i s i n g strategies should be resorted to; though HUL is presently surfing ahead of others on the path o f t a k i n g s o m e g r e a t i n i t i a t i v e s i t s h o u l d b e m o r e c o n c e r n e d a b o u t i t f o r t h e p u r p o s e o f   corporate image building.

A g r i c u l t u r a l   p u r s u i t s   r e q u i r e d   t o   m e e t   t h e   d e m a n d s   o f   c e r t a i n  a g r o   b a s e d   a n d   c u l i n a r y  product segments should be more planned, systematized, efficiently viable and less cost-effective.

The price structure for various products should be more within the limit of affordability for consumers; the grassroots consideration in this regard should not be ignored. Here, the policy of loco-centric rather than uniform price structure would certainly be more advantageous.

Industrial manufacturing units of these products should be set up at places lying nearest to the places where sources and raw materials for different products could be available in the easiest possible way.

HUL should go for more planned and sensible marketing and advertising strategies with a view to accomplishing the task of global brand image buildings.

Hyper marketing and retailing network should get special attention as vital components of HUL’s marketing policy.

CHIMC PGDM Batch 2 Page 55

Bibliography

Books Kotler P.

Magazines Business Barons Business Today Business World

Newspapers

CHIMC PGDM Batch 2 Page 56

The Economic Times. The Indian Express. The Business Standard. The Hindustan Times.

Internet website

www.google.com www.indiainfoline.com www.HUL.com www.unilever.com www.altavista.com

Annexure

Questionnaire used for Analysis

Dear Sir/Madam,I would, therefore, request you to kindly assist us in our efforts by sparing a little time to give us your valuable feedback and suggestions in the feedback from below. Please do not hesitate to inform us of any observation that you think may be relevant. We assure you that we would try to come up to your expectations.

Name of the Dealer : __________________________________

CHIMC PGDM Batch 2 Page 57

Name of the Trade Partner/Shop : __________________________________

Type of Dealer : __________________________________

Contact Details : __________________________________

1. What all products do you sell from your shop?

Personal wash

Lundry

Skin Care

Hair Care

Orel Care

Deodorants

Colour cosmetics

Foods

2. Which brands do you stock/sell?

HUL P & G ITC Godrej Dabur Marico Any Others (Please Specify) ___________________________

3. What is the total Counter Size/Sales of the following Products in your shop?

CHIMC PGDM Batch 2 Page 58

HUL P&G ITC Godrej Dabur Marico Others Total

HUL

PW

P&G

LW

DB

OC

MAR.

OC

Total

4. What is your annual/monthly turnover in :

All products ___________

5. Which are the important factors for you to stock a particular brand?

Customer Demand ______

After Sales Service ______

Terms of Credit ______

Sales Promotions ______

Any Others(Please Mention) ____________________________________

CHIMC PGDM Batch 2 Page 59

____________________________________

6. Any suggestions/feedback for the Company?

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

____________________________________________________________________________________

_________

Thank You for sparing your valuable time, Have a nice day!!!!!

CHIMC PGDM Batch 2 Page 60