XI.

Presence of Expert Influencer in decision-making:

Positions in the sales force vary depending on whether the expert influencers (such
as physicians, brand experts) are involved or not. If current, consumer purchasing
behaviour may be subcontracted, and the expert influencer, in addition to the end-
user, becomes a network client. In such circumstances, two salesforce groups are
necessary to appeal to both sectors.

The role of expert influencer is slightest for FMCG items. But, players in the market
on other hand, aim to align products with regulatory bodies/authorities and run
advertising with experts remarking on a product's better characteristics in order to
shift purchasing behaviour from variety-seeking to subcontracting and increase
brand loyalty. This also implies to HUL.

XII. Element of Crisis Purchase Exists:

The availability of a product becomes critical if a crisis buying factor occurs in its
purchasing decision. HUL has no products that fall under this category.

XIII. Element of Risk Aversion Exists:

The consumer is more risk-averse if the amount of customer engagement in the

purchase decision process is higher. Channel members may "unsell" a brand in this
circumstance by making explicit or inferred comments. This implies that in such a
circumstance, sales are contingent on a number of factors, including how the
company treats channel members ("keeping them happy") so that they aren't
motivated to unsell the brand as a result of pressure from competitors. This variable
has no bearing on HUL's FMCG products. This might have a big influence on the
"Pure It" water purifier if channel reps start selling it instead of field salespeople as
they do today.

XIV. Product Perishability:

If the item is perishable (short shelf life) the "speed" aspect becomes critical in
reaching the end customers, then T&L becomes extremely important. HUL's FMCG
items are not perishable by nature, although they do have a shelf life. As a result,
this isn't a key factor for HUL.

XV. Time Band associated with purchase of product: 

If a product's demand or purchase is seasonal or cyclical (for example, newspaper

and milk are most in demand in the first three hours of the day; cooking oil, rice, and
other grocery items are most in demand in the first week of the month), then high
T&L and infrastructural requirements are required for the "last mile" during the peak
demand period. Outside of the peak necessary time period, it is possible to have idle
capacity in the locations specified above. Some of HUL's goods are affected by the
variable indicated above. Labelled Atta-'Annapurna' in the food segment; this
element of the demand time band persists to some extent in segments such as
Laundry Detergents, Shampoo & Hair Oil, and so on. The relevance of T&L for HUL
is shown by the fact that the intensity of transport for the above-mentioned items
between producers increases in the first and fourth weeks of each month. This is in
addition to the daily restocking of goods at merchants by wholesalers.

XVI. Fungibility:

Fungibility refers to the ability of a thing or commodity's component units to be

substituted for one another. Crude oil, wheat, orange juice, precious metals, and
currencies are examples of highly fungible goods. Fungibility has nothing to do with
being able to trade one commodity for a different one. For all intents and purposes, it
relates exclusively to the ease with which one unit of a commodity may be replaced
with another unit of the same item. Because branded FMCG items are not fungible
(branding is used to "decommoditize" and distinguish the product), channel members
will continue to be important.

XVII. Extent of Customization possible:

The degree of personalization has a direct impact on economies of scale; the more
customization, the fewer economies of scale. The importance of the sales field force
often rises as the amount of customisation of the offering rises. Such modifications
are not possible in the case of mass-produced FMCG HUL items, thus the cost of
HUL is cheaper in this respect due to better economies of scale and reduced
criticality of field personnel in terms of product customisation.

XVIII. Negative/Positive Reinforcing Product:

Negative reinforcing items (such as insurance, a washing machine, a vehicle battery,

and so on) are those that are acquired to prevent or decrease the problem. Positive
reinforcement items (perfumes, chocolates, vacations, and so on) are those that
satisfy the senses. The shopping experience becomes a critical aspect for positive
reinforcement merchandise in order to confirm pleasant sentiments. HUL's Axe and
Rexona deodorants, as well as Lux, Lakme, and other cosmetics, are clearly positive
reinforcement items. As a result, high-visibility displays may be found in most
shopping malls and other public places to repeat the sentiments. Customers are
prepared to pay extra for these brands.

XIX.Value/Volume Ratio of the Product:

Because of its two crucial characteristics – T&L cost and retailer ROI/sq. cm – this
ratio is critical for both the corporation and the retailer (retailers are actually in the
real estate business in true sense). The higher the ratio, the better for both the firm
and the retailer, as a lower T&L cost per unit volume transported for the company
and a higher ROI per unit of shelf space for the retailer. Value density is lower in
general for FMCG items, as well as for HUL. Furthermore, the growing tendency
toward smaller pack sizes raises packing density (higher package density raises
prices to some extent, but substantially favours robotic handling, lowering handling
costs). Because transportation costs will be greater due to lower value density, it
makes economic sense to situate manufacturing operations close to important
markets. This is why HUL has a total of 40 production sites spread around the
country. This is a reference to the fact that most large FMCG companies (including
HUL) employ contractual production distributed throughout the globe to reduce
shipping costs.