Professional Documents
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Industry and Company Overview
Industry and Company Overview
Contents
CHAPTER 1
Industry and Company overview
1.1 Industry overview ............................................................................................................................... 8
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
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
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
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.
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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.
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
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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Marketing Practices in HUL
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
Personal Care:
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Industry and Company overview
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
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Industry and Company overview
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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 operators
( beat planning, man sales man
power in RS point)
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Marketing Practices in HUL
Job Description
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
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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Marketing Practices in HUL
Job Description
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Marketing Practices in HUL
Job Description
2) Cash discount
3) Return options
4) Display facilities
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.
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Marketing Practices in HUL
Job Description
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Marketing Practices in HUL
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.
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.
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Analysis of Job Performance
CHAPTER 3
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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Marketing Practices in HUL
Analysis of Job Performance
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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Marketing Practices in HUL
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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Marketing Practices in HUL
Analysis of Job Performance
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.
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.
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Marketing Practices in HUL
Analysis of Job Performance
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.
• Detergent 50%
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
3.5.3 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
Beats Days
15
Wholesale
7
Super market
7
Mass retailer
7
Small traders
7
Kiosk
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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.
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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
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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