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Contents

Contents
CHAPTER 1
Industry and Company overview
1.1 Industry overview ............................................................................................................................... 8

1.2 Global scenario ................................................................................................................................... 8

1.3 Indian scenario .................................................................................................................................... 8

1.4 Company Vision .................................................................................................................................. 9

1.5 SWOT Analysis..................................................................................................................................... 9

1.6 HUL Products……………………………………………………………………………………………………………………………... 11

1.7 HUL competitors............................................................................................................................... 12

1.8 Company Turnover…………………………………………………………………………………13

CHAPTER 2
Job Description
2.1 Work plan given and done ………………………………………………………………………………………………………… 15
2.2 Timeline of activities expected during the project period………………………………………………………….. 17
2.3 Actual timeline of activities………………………………………………………………………………………………………… 18
2.4 Description of relevant training received ........................................................................................ 19
2.5 Description of jobs or task those I accomplished ............................................................................ 19

CHAPTER 3
Analysis of Job Performance
3.1 Challenges faced and task accomplished......................................................................................... 20
3.2 Concepts covered in class ................................................................................................................ 21
3.2.1 Marketing mix (4P’s) ................................................................................................................. 21
3.2.2 Levels of distribution................................................................................................................. 23

3.3 Learning in organization................................................................................................................... 23


3.3.1 Salesman task and targets ........................................................................................................ 23
3.3.2 Delay in supply .......................................................................................................................... 24

3.3.4 Concepts covered ...................................................................................................................... 25


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Marketing Practices in HUL
Contents

3.4.1 Business Contribution: ............................................................................................................ 25

3.4.2 Monthly Operating Cycle (MOC)…………………………………………………………… 25

CHAPTER 4
Summary of learning & Recommendations
4.1 Learning & Reflections ..................................................................................................................... 28
4.2 Recommendations ........................................................................................................................... 29

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Marketing Practices in HUL
Executive Summary

Executive Summary

The Summer Internship placement is an evident practice to be followed by every


management professional student like MBA professional. The internship helps every
management professional to integrate theoretical Knowledge with the practices followed in the
organization.
From 03-04-2018 to 14.06.2018, I worked in Hindustan Unilever Limited, Trichy for my
summer internship placement (SIP). My major specialization is marketing. This SIP helped me
to gain industrial experience in a marketing company.
The first chapter in this report deals with the Industry and company profile, global and
Indian scenario. The second chapter in the report deals with the summary of my work and
description. The third chapter in the report clearly explains about the jobs done by me. The
fourth chapter in a report deals with the how I developed my skills and what are all the concepts
that helped me to work smartly. Finally, reports deals with the overall conclusion or summary of
learning. The purpose of this internship is to know about the process of distribution in terms of
value and volume of the HUL. The distribution effectiveness includes the type of the channel,
preferences, margin level of the product, purchase behavior, stock damage policy etc.

I had a great chance to work in HUL and it was a good time. I have learned many things
from there. There are many people taught me each and every information’s. The real-life
marketing is totally different from what I have learned. But there are some similar things also I
found but the most activities are different. That’s what help us to make them convince and the
word of marketing is not only enough with the terms of sales and profit, credit etc. & marketing
is beyond this all.
This internship guided me to know more about sales. Hindustan Unilever Limited is a
great place to do internship which helped me to integrate marketing concepts with real marketing
environment.

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Marketing Practices in HUL
Industry and Company overview

CHAPTER 1

Industry and Company overview

1.1 Industry overview


Fast-moving consumer goods (FMCG), also called consumer packaged goods (CPG),
refer to products that are highly in-demand, sold quickly, and affordable. Such items are
considered “fast-moving” as they are quick to leave the shelves of a store or
supermarket because consumers use them on a regular basis.
Fast-moving consumer goods include packaged food, toiletries, beverages, stationery,
over-the-counter medicines, cleaning and laundry products, plastic goods, personal care goods,
as well as consumer electronics, including mobile phones and headphones.
Some fast-moving consumer goods are highly perishable such as meat, dairy products,
baked goods, fruits, and vegetables. Sales of FMCG are usually affected by discounts being
offered by the stores, holidays, and other seasonal periods.

Packaging is critical for FMCGs. The logistics and distribution systems often require
secondary and tertiary packaging to maximize efficiency. The unit pack or primary package is
critical for product protection and shelf life but provides information and sales incentives to
consumers.
Fast-moving consumers goods are nondurable products that sell quickly at relatively low
cost. FMCGs have low profit margins, but they account for more than half of all consumer
spending.

Though the profit margin made on FMCG products is relatively small (more so for
retailers than the producers/suppliers), they are generally sold in large quantities; thus, the
cumulative profit on such products can be substantial. FMCG is a classic case of low margin and
high volume business.

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Marketing Practices in HUL
Industry and Company overview

Company overview
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company with the market leaders of home and personal care product and food and beverages. It
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.

1.2 Global scenario


Unilever is a Dutch-British transnational consumer goods company co-headquartered in
Rotterdam, Netherlands and London, United Kingdom. Its products include food, beverages,
cleaning agents and personal care products. It is the world's largest consumer goods company
measured by 2012 revenue. Unilever is the world's largest producer of food spreads, such as
Margarine. Unilever is one of the oldest multinational companies; its products are available in
around 190 countries.

1.3 Indian scenario


Hindustan Unilever limited, Formerly Hindustan Lever Limited, is India’s largest consumer
products company and name was formed in 1933 as lever Brother’s India Limited. It is currently
headquartered in Mumbai, India and its 41000 employees are working there. HUL is the market
leader in Indian products such as tea, soaps, detergents, as its product have become daily
household name in India. The Anglo-Dutch company Unilever limited downs a majority stake in
Hindustan Unilever Limited.

Hindustan unilever limited (HUL) is India’s largest fast-moving consumer goods


company with a heritage of over 80 years. It has over 35 brands. HUL is the market leader in
Indian consumer products with presence in over 20 consumer categories. Nine out of ten Indian

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Marketing Practices in HUL
Industry and Company overview

households use our products every day to feel good, look good and get more out of life; giving us
a unique opportunity to build a brighter future.

Nearly 900 suppliers work with our supply chain that spans 28 of our own factories and
several others that manufacture on our behalf. Our products are stocked in warehouses dotted
across the country and delivered to 3,500 customers. HUL has 28 factories and 9 offices and
creates employment opportunities for several thousand more across its value chain – from
smallholder farmers, who provide raw materials to the distribution partners who take the
products to customers and consumers. Your Company has a clear and compelling strategy that
focuses on Winning with Brands and Innovation, Winning in the Marketplace, Winning through
Continuous Improvement and Winning with People. This is underpinned by the Unilever
Sustainable Living Plan (USLP) that sets our vision to increase the size of the business, whilst
decoupling it with our environmental footprint and increasing our positive social impact.

1.4 Company Vision


Our vision is to grow our business, while decoupling our environmental footprint from our
growth and increasing our positive social impact.

1.5 SWOT Analysis

Strengths:
1) Brand visibility – From soap to mineral water, HUL is shaping the life of 1.3 billion people
daily. Being in consumer goods market with its 20 consumer categories such as soap, tea,
detergents, shampoo etc. & each having large assortments, helped HUL in occupying the large
shelf space of Grocery /departmental stores which itself explains the acceptance/demand of their
products in the market.

2) Market leader in consumer goods: According to Nielsen data 2 out of three Indian
consumers use HUL products. HUL used selective targeting strategy to emerge as a market
leader in the Indian market.

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Marketing Practices in HUL
Industry and Company overview

3) Innovative FMCG Company: Hindustan Unilever Research center (HURC), Mumbai&


Unilever Research India, Bangalore, both research facilities were bought together in a single site
in Bangalore in 2006.

4) Extensive & integrated distribution system: HUL’s brands are now household name which
is only possible due to its 4 tier distribution system namely

a) Direct Coverage through common stockiest within a town of population under 50000 people.

b) Indirect coverage: Villages closer to larger urban markets have been targeted

Weakness
1) Decreasing Market share: Competitors focusing on a particular product & eating up HUL’s
share, like Ghadi & Nirma detergent eating up HUL’s wheel detergent market share.

2) Large number of brands in different product categories: Sometimes having broad brand
portfolio can lead to confused positioning. Price positioning in some categories allows for low
price competition like AMUL captured Kwality’s market share.

Opportunity

1) Expanding market: By penetrating more in the rural markets through its project Shakti
AMMA and transition of unorganized business to organized one will lead to further expansion of
the consumer goods market.

2) Awareness in usage rate of consumer goods: People getting more aware and conscious
about the usage may be through advertising /word of mouth /doctor prescription, is resulting in
increase in usage rate of these products.

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Industry and Company overview

Threats

1) Competition in the market: With increasing number of local & national players it’s
becoming very hard for the companies to differentiate themselves from others. There is also
threat from counterfeit products destroying its brand image in the market.

2) Price of commodities: Increasing price of commodities will result in further increase in the
price. Further increase in price will result in decrease in sales, margins & brand switching

1.6 HUL PRODUCTS


Home care:

 Active Wheel detergent


 Cif Cream Cleaner
 Comfort fabric softeners
 Domestos disinfectant/toilet cleaner
 Rin detergents and bleach
 Sunlight detergent and colour care
 Surf Excel detergent and gentle wash
 Vim dishwash and Magic – Water Saver

Personal Care:

 Axe deodorant and after shaving lotion and soap


 Breeze beauty soap
 Clear anti-dandruff hair products
 Clinic Plus shampoo and oil
 Close Up toothpaste
 Dove skin cleansing & hair care range: bar, lotions, creams and anti-perspirant deodorants
 Denim shaving products
 Fair & Lovely skin-lightening products
 Hamam

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Industry and Company overview

 Lakme beauty products and salons


 Lifebuoy soaps and hand wash range
 Liril 2000 soap
 Lux soap, body wash and deodorant
 Pears soap
 Pepsodent toothpaste
 Pond's talcs and creams
 Rexona soap
 Lever Ayush soap, Face wash, toothpaste
 Sunsilk shampoo
 Vaseline petroleum jelly, skin care lotions
 Tresemme.

Foods and beverages:

 Annapurna salt
 Annapurna Atta
 Bru coffee (Instant, Green label)
 Brooke Bond (3 Roses, Taj Mahal, Taaza, Red Label) tea
 Kissan (squashes, ketchups, juices and jams)
 Lipton tea
 Knorr soups & meal makers

1.7 HUL competitors


1. Procter & Gamble
2. ITC
3. Colgate
4. Patanjali
5. Dabur
6. Nestle
7. Marico

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Industry and Company overview

1.8 Company turnover


The company has about 18,000 employees and has a sales of INR 38224 crores (financial
year 2018-19). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of food,
home care, personal care and refreshment products with sales in over 190 countries. Unilever
has over 52% shareholding in HUL.

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Marketing Practices in HUL
Job Description

CHAPTER 2

Structure of RS point

RS point owner

manager front-end
office accountant operations

IT empolyees team leader

IT operators
( beat planning, man sales man
power in RS point)

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Marketing Practices in HUL
Job Description

Job/ task description


 New beat arrangement
 Finding new outlets
 To cover all, uncover outlets
 Order taking and cash collection
 Palmtop verification
 Physically stock checking in godowns

Work plan given and done


1. Product data collection in godown

In first three days I was assigned to work in a distribution office godown to know
about HUL products. I am going to explain about my work and observation in godown in those
three days. It helped me actually to know about the products and its various brands. I noted down
each and every products name, price, lifetime, categories and cases (box). From that I learnt
more about the products. Hindustan products are classified into three categories. They are

 Food and beverages


 Personal products
 Detergents ( home care)

Based on that, products are stored in the godown. Then I came to know about their delivery
process in the godown through workers in the godown and from godown in charge staff. The
godown in charge collects the abstract from the office and gives it to workers for arranging
products for the outlets (shops) based on the order taken from salesman during visits. Workers
start packing the products for each shop from the given abstract. Godown in charge staff checks
those details and loads into vehicles using delivery boys in the godown. Through vehicles they
deliver the products to outlets. The high number of products are demanded in the place like
thillai nagar and N.S.B Road, because in sub urban area many cosmetics, personal products are
not sold much.

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Job Description

2) Visits with salesman


After completing godown work, work allotted for me is visit with salesman in the field.
So, I went with different salesman to different places, both rural and urban. They taught me
about their work in the market. From them I came to know more about marketing basic process
going in the marketing area. My observations during that visits are how they collect money and
how they take order from outlets (shops). Then I came to know about how they use palmtop
(phone) for their work. Using palmtop salesman takes order and does other works. Palmtop is
called as Hand held terminal (HHT). In that app each salesman has different login id and
password. Using that, every day morning salesman mark attendance and updates it to receive
their beat (area) that they have to cover that day. For each beat there may be 15-25 outlets. It
depends upon the value about the outlets in that beat.

3) Cash collection and Order taken


After completing visit with salesman my KAE told me to do salesman work
individually (Cash collection and order taken) in different beats. I started that work and did for
20 days. Every day I went to different beats in trichy area. From that I learnt basic marketing
field work. I had good interaction with retailers during my visit. They explained about their
relationship with our agency and satisfaction level on HUL products. During that time I learnt
about super market, retailers contribution in HUL. While taking I order explained about the
newly launched product with scheme and sampling product to convince them to buy that
product. Good retailers can maintain one credit bill. From that visit I came to know about
consumer buying behavior for HUL products, which one they buy the most and which one they
buy least. In a normal retail shop they depend mostly on HUL products, because HUL has 35
brands with 20 categories.

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Job Description

4 Find out new uncovered outlets


My company guide told me to find out new uncovered outlets in different area. During
my field visits I found out 10 new uncovered outlets by visiting more shops in different area. I
talked with retail owners and explained about these following facilities
1) Schemes from the company

2) Cash discount

3) Return options

4) Display facilities

5) Direct delivery to their shops

6) Credit bill facilities

5 Collecting data from consumers

During my visit, I met retailers and customers and had a good interaction with them
related to my internship training. They are also cooperated well. In that visit I asked them about
their satisfaction level regarding Hindustan products. Customers gave different answers based on
their perception. Many of them are satisfied with the products. Some of them are not satisfied
with their products. Most of the consumers want HUL to launch foods products.

2.2 Timeline of activities expected during the project period


When I joined here my KAE gave me different task to develop my marketing skills
and also it helps me to know the basic marketing skills in a given three months period.
 To know the brands and categories available in HUL.
 To find out uncovered outlets.
 To learn strategy and process following in HUL and agency
 To know the work of marketing executives in agency.
 HUL products packing methods for wholesale, retail and supermarket.
 Consumer buying behavior on HUL products.
 Comparison between HUL and other FMCG companies in sales promotion, offers, STP.

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Job Description

2.3 Actual timeline of activities


Based on their work allocation I tried my best in many different work like data
collection towards HUL, salesman work, interaction with retailers towards HUL brands and
agency, covered new outlets. I completed my work in a given period. Especially order taken&
cash collection, HUL marketing strategy, data collection. My KAE allotted me many task to
complete in a given period. First he allotted me to collect HUL products details in godown to
know about HUL brands and categories; it helped me during my field visit with salesman. So,
based on that I did my work and completed that data collection in three days. From that I almost
came to know about HUL products available in my agency.
Then I went with different salesman in different beats to know retailers buying
behavior in HUL products and also their habit how they collect money and take orders in
different shops. Almost twenty days I went with different salesman to cover all beats. Based on
location consumers buying behavior may change.

I completed all my tasks successfully. Because, completing tasks before the


exact deadline not a simple thing. While doing these activities, my guide reminded me to finish
the tasks, what they have given to me to accomplish. Therefore, it was easy for me in achieving
the tasks and completing those works. In addition, he gave guidance and taught me how to start,
how to complete and so on. By having this encouragement I could do thing successfully and with
clear objectives.

2.4 Description of relevant training received


As a marketing professional I should know how to sell products in market. So, based on
that my KAE told me to sell a new launched product in retail shop by explaining about that new
product scheme, offers and showing its sampling piece to convince them to buy. During my
order taking visit I had sampling pack of new products in my bag and I explained about it to
retailers.
I learned how to do sales and how to handle the retailers and wholesalers for poor
distribution and rest of the time my KAE taught VLOOKUP and pivot functions in excel.

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Job Description

My KAE told to check salesman activities in retail shop how they collect credits and take
orders based on retailers buying level. As a marketing student I should watch their activities as
training officer which will help me in future it clearly specifies my job description as a sales
officer in a company. So, I watched their activities for few days. These are the key activities; I
have carried out these job functions during my summer internship placement. Moreover, I
observed so many things in the distribution channel, super market and retail shops, regarding the
marketing and selling activities.

2.5 Description of jobs or task those I accomplished

During my three months summer internship training I did many tasks given by my
KAE. Here I am going to list the tasks which I did during the given period.

 HUL products data collection


 Order taken and credit collection
 Installing Shikhar application in 10 outlets
 Found out 10 uncovered outlets
 Checked invoice report for delivery process
 Collecting damaged products from retail shop
 Selling new launched products in shops
 Retail data collection
 Order taken using palmtop
 Supplying goods to retail shop which are the due product
 Convincing retailers

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Analysis of Job Performance

CHAPTER 3

Analysis of Job Performance

Here I am going to analyze my job performance which I did in three-month internship


period. The way I have dealt with them to accomplish my tasks, what are all the chapters I
covered in the classroom, what are all the extra concepts I have learned, observations and
practices observed in the organization and practices understood through academic inputs.

3.1 Challenges faced and task accomplished

I am new to this marketing field and to this organization, I did not know, what are all
their procedures and what are all the products they have been manufacturing and distributing,
kilograms of the particular product, cost of that corresponding product, for how much agency is
been buying from the manufacturing unit, for how much agency has distributing the products to
the retail shops and super markets. Totally, I did not know their pricing methodologies and
margin percentage from the company and to the agency and retail shops, malls, and super
markets. Since, I want to avert this kind of problems; I studied, every product with kilograms.
Moreover, I observed their pricing in the corresponding outlet.
Second challenge which I faced during my training period is covering new outlets in a
given period. My KAE told to cover 40 outlets in 3 days. But I achieved only 25 outlets due to
lack of time. I tried my level best in that given period. Finding new outlet is not easy, we should
explain about company schemes, offers, delivery facilities etc. Remembering HUL products and
brands in our mind at the beginning stage of training is the big challenge which I faced, because
HUL has 30 brands and 25 categories. After one week only I came to know about all products.
Like that during my salesperson training I faced same problem while placing orders in
palmtop. There are many SKU’s(stock keeping unit) in palmtop. Then, I gradually started to
rectify my mistakes and make my mind to keep everything in control. Since, I want to rectify
these mistakes and problems, I have taken extra time to work and clarify my doubts and
questions.

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Analysis of Job Performance

3.2 Concepts covered in class

3.2.1 Marketing mix (4P’s)


Product:
The HUL product portfolio has been mostly into 4 categories that are food and drinks,
home care, personal care and water purifiers. The entire product range across categories in the
HUL marketing mix is discussed as follows. In the food and drinks segment HUL has Kwality
Wall’s, Cornetto and Magnum in the ice creams category. In the tea category HUL has Lipton
and under the brand name Brooke Bond it has Taaza, 3 Roses, Red Label and Taj Mahal. In the
coffee category Hindustan Unilever has the brand BRU. Under the brand name Annapurna it
sells Salt and Atta. It also sells its instant food making products and spices under the brand Knorr
with noodles, soup, snacking and spices. It also Kissan which is in the jam, squashes and ketchup
segments.

Price:

Hindustan Unilever (HUL) is one of the leading company, offering many products and
hence a wide price range. Since HUL is a market leader in almost all the segment it is present in
it keeps a very competitive price for all the products as the competition is quite stiff in the
segments and as the customer in segment are looking for value for money products. As the
company tries to reach the maximum number of customers in all income segment HUL produces
products with different packages and hence very different prices although the quality remains the
same. Hindustan Unilever also has various professional product for which it follows premium
pricing strategy for example TONI & GUY is very premium priced as compared to Lakmé.
When HUL comes up with new products it comes up with bundling strategy where in it packs a
small sample to the main product although the product is either in the same category or with the
same brand name. This gives an insight of how HUL prices’ its products in its marketing mix.

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Analysis of Job Performance

Place:

HUL has a very wide outreach into many deep pockets of the country. Hindustan Unilever
has 6.4 million outlets across the country out of which 2 million are the retail outlets. HUL also
has 30 factories across the country which are further connected to more than 2700 stockists
which again then reach the retail outlets which are the convenience stores and the super markets.
This shows the strong place & distribution marketing mix strategy of HUL. To reach the rural
sector HUL has various rural distributors which then forward to the rural sub stockists to the
rural retailers. With the coming up of Carry and Forward agencies it has been able to reach many
deep pockets of the country with a significant cost reduction. Apart from the regular distribution
channel HUL also employs multi-level marketing to reach to customers requiring professional
beauty products.

Promotion:

Hindustan Unilever (HUL) has been heavily investing in the brand promotions as it needs
them mostly for brand recall and many a times for introducing new brands. Therefore Hindustan
Unilever primarily uses aggressive promotion and advertising its marketing mix. The
advertisements of HUL brands are in the form of television commercials, newspaper ads or any
other magazines and as well as with the online presence as well. Most of the times these
campaigns are targeted by telling stories to build relations rather than to sell them directly. HUL
also has tied up with many celebrities such as Shahrukh Khan, Kareena Kapoor, Kajol, Varun
Dhawan as well as with the professional hair stylist Jawed Habib. Hindustan Unilever also
participates in tons of CSR activities such as the famous project Shakti to empower rural women,
Sanjivani a mobile service camp, water conservation projects and many more. HUL also time
and again organizes various campaigns to create awareness among the viewers and improve
health and well being. Hence, this concludes the HUL marketing mix.

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Analysis of Job Performance

3.2.2 Levels of distribution


1. Intensive distribution: In this type, the company sells its products to as many outlets as
possible. The main aim is to ensure the product is available everywhere in the market.
Based on that small to medium level retailers bought HUL products. From petty shop to
hyper market HUL distribute its products.

2. Selective distribution: In this type, the company chooses a few retailers to sell their
products. The level of customer service required to sell the product is higher compared to
products sold through intensive distribution. In this HUL targets chemist, fancy stores to
distribute their personal care products such as fair&lovely, ponds, axe perfume.

3. Exclusive distribution: In this type, the company limits the number of distributors by
only allowing one or very few retailer to carry its brand in a select geographical territory.
The strategy is aimed at protecting brand image, and the products include luxury and
industrial goods and brands like high priced fairness cream, body lotion, pears soap,
lipton green tea.

3.3 Learning in organization

3.3.1 Salesman task and targets


During my visit with salesman I observed his task and targets given by company
and agency.

Salesmen are divided into five types.

1. FNB.
2. DETS.
3. PP.
4. D+F (Dets + Foods).
5. HUL

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Analysis of Job Performance

Each salesman will have one palmtop (Mobile) with I square application installed.
Application which contains SKU (Stock keeping unit) according to their divisions. Every
morning they have to sync their palmtop with the server to update beat, schemes, target, perfect
day, etc...After update they will get the pending bills from MIS and voucher from agency owner
for that pending bills. Salesman is assigned to a particular beat every day and there will be 15 to
25 outlets. As a salesman they have to visit the outlets and collect the cash and take the orders
from outlets owner.

1. EFOS (Effective Feet on Street)


As a salesman he has to work on market minimum 04:30hrs and for every shop he has
to spend minimum 5 minutes to maximum 20 minutes. Salesman should visit all outlets whether
the retailer is billing or not.
2. Perfect day:
The total lines achieved by a salesman on a particular day is called perfect day. If
suppose one salesman’s today’s target is 65 lines means he should achieve that 65 lines or more
within that day. Then only those lines will be considered under the perfect day. It includes
different product lines. It will also be considered perfect day if the same product line is taken
from different outlets. If it is not achieved on that particular day it will be added on the same beat
perfect day target for the next week.
3. Assortment:
It is purely based on the monthly target achieved by a salesman. The company will
give a total number of lines to be achieved in that whole MOC. The salesman should achieve that
target rate within that particular MOC. Then only the salesman can get their additional
incentives.
Assortment means it is classified into three categories:
 Easy to sell:
Products that are bought regularly by the outlets.
 Easy to earn:
HUL company allotted some products to salesman to place orders into the outlets. From
that they can earn RS. 1.50 for each line.

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Analysis of Job Performance

3.3.2 Delay in supply

In this distribution center they have a lethargic way of distributing the products to the
outlet. Because of this issue the wholesalers and retailers are dissatisfied on the company’s
supplying capacity. Actually, the company’s rule on distributing the products is n+1 day. It
means, the RS point should supply the products to their outlet on the next day of order has taken.
n- Represents the day of order taking
1- Represents the one more day from the order has taken
But now the situation in the RS point is very difficult because of the stock delay and
some delivery problems. So, therefore it take nearly n+4 days at some of the places because of
unavailability stock in the godown. Because of this supply, salesmen are struggling to get the
collection amount for the previous purchased product and it also reflects the next order.

3.4 Concept covered


3.4.1 Business Contribution

• Detergent 50%

• Foods and Beverages 30%

• Personal Product 20%

3.4.2 Monthly Operating Cycle (MOC)

Certain target will be fixed for every employee working in the HUL that target should be
achieved in one month. Every Monthly Operating Cycle starts 21 and ends 20. If they
achieved, they get an incentive.
3.4.3Ten Days Period (TDP)

There are three TDP for every month (21 to 30, 31 to 10 and 11 to 20)
Ten Days Period Target Value
21 to 30 35%
31 to 10 65%to70%
11 to 20 70%to100%

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Marketing Practices in HUL
Analysis of Job Performance

Merchandising organization
1. General trade channel specialist (GTCS), they handle channel activation and
manage the merchandiser
2. Merchandising supervisor, they manage multiple Rs point
3. Merchandiser, they execute visibility (display) tasks

3.5.2 Retailer margin

MRP- maximum retail price


TUR- town unit rate, if there is no scheme TUR rate is applicable.
Retailers margin =MRP-TUR

Product categories Percentage of TUR


DETS 8%
PP 10%
FOODS 9%

3.5.3 Retailers
1) Vijaytha- selected products in large quantity.
2) Family grocer- carry fresh goods, FMCG products.
3) Mass retailers- they buy medium quantity in all categories
4) Fancy stores-shops carry ornaments and fancy items, usually sells PP and
lakme
5) Kiosks- keep limited assortment and often have small and crumped space

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Marketing Practices in HUL
Analysis of Job Performance

3.5.4 Existing practices of the organization

Credit Bases on Outlets

Beats Days

15
Wholesale
7
Super market
7
Mass retailer
7
Small traders
7
Kiosk

3.6 Observations on the practices


I had a very good observation during my internship with the HUL Limited. I see
different categories of outlets and it was great exposure to me. I observed how the stock
comes in and comes out in the Redistribution point. I observed how they finding out the
potential outlets for the P4. I observed the company culture and Compared it to what I studied
in my class. I observed the problems with the distributors regarding the delivery maintenance
and also did a project on it. I also work on buying behavior of Trichy people regarding Knoor
product. Overall my learning and observation was good at HUL.

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Marketing Practices in HUL
Summary of Learning and Recommendations

Chapter 4

4.1Summary of learning

This internship program gave a clear idea about the difficulties infield of sales.
Internship in HUL gave me a handful of experience about marketing and sales in order to
achieve my career goal as a marketer. I came to know about segmentation, targeting and
positioning in the field of marketing. I Learnt about the marketing mix that is followed in
FMCG Company. I got the knowledge on real time experience on the field of sales. This helps
to improve my communication negotiation skills and also managing a team skill. I also
found that there is a huge opportunity in sales domain. Finally I came to know, if a person is
sincere in his work irrespective of any domain or fields he can reap their success. it also during
training the opportunity to study the salesman problem and their difficulties faced in their
market , by leading a team of salesman gave a exposure how to behave as an marketing
manager and thus gave a idea of looking into opportunities in the market for placing the
product. Summer internship in Hindustan Unilever Ltd is a wonderful opportunity for me to
choose my career as marketing and also help me to find out the skills &knowledge I have and
what I have to develop more to shine in the field of marketing.

Mainly I was focusing on selling activities, such as, order taking, convincing the retailers,
perception and attitude of consumers towards selecting the product and purchasing the items,
their perception related to buying and buying culture of people. Not only that, I have observed
People’s consumption level, attitude towards quality and maximum retailer prices in the
particular products. Because, I want to know about perception of people and buying culture of
the people, who are living in the rural area and who live in the city and villages. Because, by
knowing these details, we can develop one’s business and start new startups for my entire career.
Without understanding these activities, no one can start a business and sustain in the competitive
market.

6
Marketing Practices in HUL
Summary of Learning and Recommendations

o I learned the sales and distribution from HUL through the distribution. Because
they have three ten days plan. It helps to the increase sales.
o The HUL has unique month of cycle. The other companies’ business cycle is 01-
30. But HUL month of cycle is 21-20.
o I learned about outlet types. Because every outlet have different programs and
sales also different. The outlet is playing major role in sales.
o The distribution should bill for all shops in every month. The distribution gives
more cash discount for increase the sales. Because they satisfy the customer
needs.
o HUL has the practice of taking expiry products. Once the product dates are
expired it should be exchanged by salesmen before and after three months from
expiry date.

4.2 Recommendations

 Increase of credit days to the certain outlets.


 Increase the schemes for products.
 Timely delivery and regular orders taken with all focused Sku’s.
 Need to focus on all division
 Continue investing behind Innovations and Promotion
 Need to launch Brand Extensions for lower and middle segments

4.2 Conclusion

Company has a good position in Trichy market. According to the market survey DETS
and foods and beverages are moving good in trichy mrket compared to down growth of
personal products in Trichy. This internship program helped me to understand marketing
and selling is different and how to apply the theoretical knowledge in to practical. I would
have believed sales is easy if I read marking books alone but in real life marketing is
different and I am happy to work in this field.

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Marketing Practices in HUL
References

References
(2018). Retrieved from Hindustan Unilever Limited: https://www.hul.co.in/
(2018). Retrieved from Indian Retailer:
https://www.indianretailer.com/article/operations/marketing/Hindustan-Unilever-adopts-new-
promotion-strategy.a3552/
Frazier, G. (1999). Organizing and managing channels of distribution. journal of academy of marketing
science.
Kotler, P. (2012). Marketing Management. Upper Saddle River: Prentice Hall.
Venugopal, P. (2008). Sales and Distribution Mangaement. An indian perspective. India: Sage.

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Marketing Practices in HUL

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