SUMMER TRAINING REPORT

MARKET ANALYSIS ON DIRECT SELLING OF HERBAL PRODUCTS

AT

“SUKHAYUBHAVA HERBAL PVT. LTD.”

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

THE MASTER OF BUSINESS ADMINSTRATION

SESSION : 2017-2019
SUBMITTED BY :
Priya Puniyani
MBA 3rd Sem.
CLASS ROLL NO: 25/MBA/17
REG. NO. :…………………….

VAISH COLLEGE OF ENINEERING

AFFILIATED TO
MAHARSHI DAYANAND UNIVERSITY, ROHTAK
 Acknowledgement

This Summer Internship opportunity I had with Sukhayubhava Herbal Pvt. Ltd. was an
excellent learning and professional development. Therefore, I consider myself as a very
lucky individual to be part of this organization.
Before Starting with company details I would like to express my deepest gratitude and
special thanks to the Mrs. Nishu Tyagi who in spite of being extraordinarily busy with her
duties ,took time out to hear , guide and keep me on the correct path and allowing me to
carry out my project at their esteemed organization and extending during their training.
It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to
Mrs. Monika Goyal (Head of Operations), Mr.Rajan Makkar (Head of Marketing) for their
careful and precious guidance which were extremely valuable for my study both
theoretically and practically.
I precise as this opportunity as a big milestone in my career development .I will strive to use
gained skills and knowledge in the best possible way and I will continue to work on their
improvement, in order to attain desired career objective. Hope to continue cooperative with
all of you in the future.
Sincerely

Priya Puniyani
 Declaration

This report is all about analyzing the direct selling market of herbal products at
Sukhayubhava Herbal Pvt. Ltd. The main aim is to have a knowledge market of Herbal
Products and also increase awareness of ayurveda among potential members and
already existing member of this company.

Direct selling was done using various strategies or techniques so as to retain existing
customers and to acquire new customers using multilevel marketing
.Sukhayubhava Herbal private limited is a direct selling company which deals in herbal
products in various segments.

The motive of the report is to understand the direct selling market for Herbal
Products in India and how multilevel marketing functions.
 TABLE OF CONTENTS

Chapter 1: INTRODUCTION
Chapter-2: OBJECTIVE AND METHODOLOGY
Chapter-3: CONCEPTUAL DISCUSSION
Chapter-4: DATA ANALYSIS
BIBLIOGRAPHY
ANNEXURE
Introduction
 1.1Overview of Industry as a Whole

Direct Selling

Direct Selling means the marketing of the consumer products and services directly to the
consumer generally in their homes or homes of others, at their workplace and other work
place and other places away from permanent retail locations, usually through explanations or
demonstrations of the product by a “Direct Seller”.
Direct Sales is a channel that has long been used by traders to sell goods and services to
consumers and business customers. As its name implies, the practice typically involves a
salesperson moving from door-to-door and knocking uninvited, then attempting to sell a
product or service at the doorstep or in the home. There is wide-spread concern that door-to-
door marketing approaches are associated with this marketing approach- for example, its
unsolicited nature; the high-pressure tactics that may be employed by some sales people and
the potential targeting of more vulnerable consumer groups. For example, it can arise when
consumers have purchased goods or services that do not meet their needs, their wants or their
budget.

Direct Marketing:

Direct Marketing is a type of advertising in which companies communicate directly to the

consumers through formats like Direct mail, text messaging and telemarketing. Direct selling
on other hand involves marketing and demonstration of a product or service directly to the
customer usually through a personal contact /relationship with the salesperson.
 Other Person to Person Partly Plan Groups
2%

18%

80%

Figure 1

Person to Person selling is the dominant form of selling witnessed in the direct
selling market.

In direct marketing people are communicated through most the marketing is conveyed
through face to face or people to peoples. it majorly dominated as traditional marketing
strategies where manufacturer and customer have very less two side communication.
Global history and evolution of direct selling

There was no Big Bang moment for direct selling, no moment when out of nothing
everything began. The industry, the oldest distribution channel in history, began appearing
alongside the development of civilizations. As hunter-gatherers settled down to farm and
build towns, the first direct sellers began to sell their wares across Europe, Africa and Asia.
The modern direct selling industry can be considered to have pioneered in the USA with the
establishment of Avon in 1886. With the success of this model, involving lower sales and
distributions costs and greater direct interaction with the consumer, the portfolio of products
grown to cosmetic ,personal care ,household goods, accessories and other products over
time. The movement was supported by engagement of women as direct sellers who
considered this opportunity as a means of empowerment and self-reliance.

Picture 1
Women Are Welcomed

“[Our Founder David H. McConnell] understood that women were natural salespeople who
could easily relate to other women and passionately market beauty products.”
—Sheri McCoy, CEO, Avon Products Inc.

Multilevel Marketing Plans

The introduction of multilevel marketing Compensation plans (MLM Plans) opened another
chapter in the evolution of direct selling. Introduced in the mid-twentieth century, the plan
for the first time enabled consumers to benefits from the success by became them the option
to become the direct selling partner of the business. MLM pla ns become widely accepted
and a large number of companies adopted the same including global major like: Avon,
Tupperware and Amway.

Global Direct Selling Industry

World Federation of the direct selling associations announced 2015 figures it had
gathered from organizations –

Regions and countries

WFDSA reports the sales volume generated in 2015 by its member countries as $184 billion
and the number of individual direct sellers as 103 million. The sales volume in 2015 represents
a 7.7% growth from the previous year in constant dollars

.
Middle East/Africa
1%

Europe
19%

Asia Pecific
46%

America
34%

Figure 2

As the chart to the right shows, Asia-Pacific remains to be the world’s largest direct selling
region with a 46% share. Among the regions, Europe has been the fastest-growing in the last
four years, followed by Asia-Pacific. Europe has grown from 16% in 2011 to 19% in 2015
and Asia-Pacific from 44% to 46%. Losing its share to these two regions, Americas has
gone down from 39% to 34% in four years.

When we turn to countries, the US still keeps its #1 position with an annual sales volume of
$36.1 billion. China is a close second with $35.5 billion. The US market’s growth rate in 2015
was 4.8% and China’s was 19%. So, it is very likely that China will be announced as the
world’s largest direct selling market by this time next year.

The top ten markets are ranked, together with their shares in the global volume, as follows:
US (20%), China (19%), South Korea (9%), Germany (8%), Japan (8%), Brazil (5%),
Mexico (4%), France (2%), Malaysia (2%), and UK (2%). In 2011, while the US was at
20%, China’s share was 11%.
Direct Selling industry with MLM Plans
The success of MLM compensation plans however, led to a number of fraudulent money
circulation schemes globally. The scammers posed as direct selling enterprises to gain from
the popularity of the direct selling MLM plans. It has taken significant time i different
economies to distinguish between the two, and recognise direct selling as a legitimate
business model. Acknowledging the importance of direct selling as sales and distribution
model and its potential for promoting self-employment, governments across the globe have
taken firm steps to distinguish it from artificial money circulation and Ponzi schemes.

This has primarily been done either (a) by introducing specific legislations to govern the
direct selling industry, or (b) by recognising direct selling as a rightful business model
within existing consumer laws. The industry also self-regulates by creation of specific and
stringent guidelines for its members, which are governed by local associations accredited by
a global association.

Today, direct selling is a US167 billion (2012) industry globally, engaging over 89 million
direct sellers. Asia-Pacific forms the largest direct selling market with a share of 44 per cent
followed by North America, Central and South America (20 per cent share, each) and
Europe (15 per cent).

Picture 2

Product Categories

In 2015, wellness category was the largest one globally with 34% share. Cosmetics category
produced 32% of the volume. Household goods and durables accounted for 11%, and
clothing and accessories for 7%.
Region-wise wellness was the strongest in Asia-Pacific (41%). In fact, its share was 89% in
Philippines, 64% in Hong Kong, and 63% in Taiwan. This category was the weakest in
Americas (29%).

Direct Selling Industry In India

Direct Selling is an alternate form of distributing products and services. Instead of

using traditional distribution channel
(Manufacturer–distributor–wholesaler–retailer–consumer). Direct Selling companies
sell their products and services directly to consumers. That is why it is called ‘Direct
Selling’.

When these consumers or customers like their products and services, naturally they start
sharing it with others. Direct Selling companies pay you when people buy their products and
services from your recommendation.

But the awesomeness doesn’t stop there, you are given an option to build a team of
distributors (generally consisting of happy consumers recommended by you and those you
recommend and those they recommend and so on). Contrary to common misconception,
you are not paid to recruit people; you are paid depending on the total sales volume
generated by your entire team.

Picture-3
Instead of spending money on traditional advertisements & other marketing methods,
Direct Selling companies rewards their consumers turned distributors for their word of
mouth advertisement effort.
Unfortunately, most people are unaware of the clear definition of this industry, and
frequently confuse it with pyramid schemes recruiting people to earn money

Picture - 4

Industry Market Size

With more than 180 Billion annual revenue, Direct Selling industry has already proved
itself in Global market. But Indian direct selling market has some interesting stats too.

Picture-5
“The direct selling market in India has grown at a CAGR of 16 per cent over the past five
years to reach INR75 billion today. The market grew at a lower rate of 4 per cent in 2013-14
due to slowdown in the industry.
The Indian Direct Selling Industry is well placed to successfully foray into international and
domestic markets. However, there are many issues and challenges that need to be overcome
to make that vision a reality.

In states such as Andhra Pradesh, Telangana and Kerala, the direct selling business has been
impacted due to lack of regulatory clarity. There is a need for the central as well as respective
state governments to arrive at a comprehensive policy for the industry, which would enable
the industry to grow and create both direct and indirect employment.”

India is one of the fastest growing economies in the world. Over the past decade, the gross
domestic product (GDP) and per capita income has grown at an average annual rate of seven
per cent and five percent, respectively. By 2015, with a projected GDP of $2.18 trillion, India
is expected to be the 11th largest economy in terms of GDP based on the market exchange
rate and the fourth largest in terms of purchasing power parity (PPP).
With the increase in growth rate, per capita incomes rose, urbanisation increased and the
percentage of people below the poverty line declined. In addition, the Indian consumer
market underwent changes. There has also been a shift in the pattern of consumption – from
necessities to discretionary consumption. In 2007, India was ranked the 12th largest
consumer market in the world and it is expected to be the ffth largest consumer market by
2025 after the United States (US), Japan, China and the United Kingdom (UK).

With economic development and growing consumerism, the retail sector in India also under
rent significant changes. Various store and non-store retail formats have evolved to cater to
this growing market and direct selling is one such non-store retail format.

Direct selling offers self-employment opportunities to a large number of people, especially

women. The number of direct sellers in India has almost doubled between 2004 and 2009. In
terms of the number of direct sellers, India ranked 11th among the top direct selling countries
in 2009-10.In future this sector is expected to offer employment opportunities not only in
urban areas but also in rural areas. Indirect employment is expected to be generated in
manufacturing and the supply chain, as direct selling companies develop India as a sourcing
hub. The direct selling industry not only offers an alternative employment opportunity but
has also contributed in terms of increased incomes for those who have entered the industry as
direct sellers. The survey revealed that most direct sellers are happy with the quality of their
employment. Financial independence, development of personal and business skills, flexible
timings and an improved ability to take care of families are other benefits of direct selling.

Direct sellers have pointed out that direct selling has helped them to build self-esteem and
confidence and develop their sales skills. It has enabled women to be financially
independent and increased their ability to save. Direct selling also provided a safety net
during the global slowdown as a large number of direct sellers joined this sector during that
time. In fact, the number of direct sellers increased by 4.84 per cent during the slowdown
period (2008-10)

Due to its specialised nature, Direct Selling covers both direct selling market in India
business-to-business and business-to- consumer aspects. Direct Selling is one of the oldest
modes of sale, and bears similarities to the traditional consumer goods model. Direct Selling
witnessed aggressive growth post liberalisation when many global companies entered India.
Amway was one of the first major global Direct Selling companies to enter India in the year
1995, though it started its commercial operations in 1998. It was followed by companies like
Avon, Oriame and Tupperware in 1996. Around the same time Modicare was one the first
few Indian companies to adopt this channel of distribution.
The Formation of Direct Selling Associations

The Indian Direct Selling Association IDSA is an autonomous, self-regulatory body for the
direct selling industry in India. The Association acts as an interface between the industry
and policy-making bodies of the Government facilitating the cause of Direct Selling
Industry in India.
IDSA strives to create and further an environment conducive to the growth of direct selling
industry in India, partnering industry and government alike through advisory and
consultative activities.
IDSA catalyses change by working closely with government on policy issues,
enhancing efficiency and ushering in desired credibility , clarity & confidence in
Direct Selling.

Benefits of Direct Selling

Modern direct selling can be considered to have been kick-started in India in 1980s. The
industry witnessed
major growth post-liberalisation with many global players entering the Indian market.
Amway was one of the first major global direct selling companies to enter India in the year
1995, which was followed by companies like; Avon,
Oriflame and Tupperware in 1996. Around the same time Modicare was one the first few
Indian companies to adopt this channel of distribution.1 Today, the direct selling market in
India is estimated to be around INR72
billion.1 Our interactions with industry stakeholders suggest that the industry has also
created a positive impact on several other social and economic parameters:

A) Additional income opportunities:

Direct selling provides additional income opportunities to a large number of people and
promotes micro-entrepreneurship. Currently, over 5 million direct sellers are estimated to be
engaged with the industry, and are projected to grow further with the growth of the industry.
In addition to providing income opportunities, direct selling lso imparts transferable skills in
sales and management, which can be used outside the direct selling industry, as well.

B) Women empowerment:
Direct selling offers self-employment opportunities to a large number of people, especially
women. Direct selling gives women the flexibility to manage their time and balance their
work and personal lives. The industry in FY13 is estimated to
have provided self-employment to 3.4 million female distributors. Many companies work
towards the empowerment of women.

C) Development of the SME sector:

Many direct selling companies rely on SMEs for manufacturing their products. In a lot of
cases, the direct selling companies impart the manufacturing know-how, technology and
processes to enable the SMEs to produce excellent products. Many direct selling companies
also invest in providing the right equipment and machines to the SMEs for production.
Driven
by these initiatives, several SMEs have now developed capabilities to cater to the needs
of other MNCs and have commenced supplying to them, in the process promoting India
as a manufacturing destination.

D) Employment generation:

Besides providing additional income opportunities to direct sellers, the industry also
generates a large number of jobs. Majority of the direct selling companies outsource
production, packaging and distribution of their products, thus generating direct employment
across the value chain.

E) CSR initiatives:

In terms of responsibilities towards society,direct selling companies have been in the

forefront. Many of the companies involved in direct selling actively contribute towards social
activities. Avon’s Breast Cancer Crusade and Amway’s Sunrise project for education are
well known for their social impact.

F) Contribution to the government exchequer:

The operating model for direct selling generates tax contributions to the government across
its value chain. Total tax contribution by the direct selling industry to the government in
FY13 alone is estimated to be INR10 billion. This includes direct and indirect tax
contributions through corporate income taxes, import duties and VAT. Going forward, the
industry has the potential to create a significant social and economic impact in India.
Our estimates suggest that the industry has the potential to reach a size of INR645 billion
by 2025, driven by growth in consumer markets and increase in the penetration of direct
selling to globally comparable levels.This could however be contingent oncreating an
enabling environment for the industry, and mitigation of some of the challenges it is facing
today.

1- Immense market potential of INR 645 billion.

Picture-7

2- Offering self-employment opportunities to 18 million.

Picture-8
3- With the potential to economically empower- 11 million women.

Picture-9

4- And the ability to contribute INR 90 billion to the exchequer

Picture-10

5- With CSR contribution of INR 0.5 billion.

 6- And employment to 2.5 million people.

Picture-11

Ayurveda

Ayurveda is an ancient art of healing that has been in practice in India for more than 5,000
years. It is often considered as the medical side of Yoga and is highly effective in dealing
with chronic illnesses, weakening effects of chemotherapy and metabolic problems.
Ayurveda in India has grown by many folds over the years and has a number of Ayurvedic
rejuvenation centres throughout the country, many of which can be found in leading hotels
and resorts. While these Ayurvedic rejuvenation centres offer relaxation through massages
and beauty treatments, Ayurvedic hospitals offer treatments to various chronic and severe
illnesses.

Ayurveda in India uses a pranic system of healing, which aims at correcting the doshas in a
body by balancing its life energy. The treatment involves different types of massages
depending on the ailment; application of herbal oils and liquids on the body; typical
massage techniques such as uzhichil and pizhichil; covering the body with herbs, leaves;
and different types of herbal powders.

The advantage of Ayurveda is that it uses natural elements for treatment purposes and the
solutions provided are tailor-made to specifically address an individual’s problem. Like
homeopathy, Ayurvedic treatment requires time to take effect. The
treatment course usually stretches to at least two weeks before the effects can be seen.

Herbal Products

Herbal Products Herbal products are made of plant extracts, plant roots, leaves, etc and used
as per their properties. The word herbal is derived from the mediaeval Latin liber herbalis
(“book of herbs”) Herbal products are free of chemicals. However, pesticides may have been
used in their growing.

How herbal product is different from Ayurvedic products?

Ayurveda is medicinal science which includes use of herbs as well as heavy metals like
gold, silver, copper, tin, mercury, sulphur, animal extracts, etc. Ayurveda is derived from
the Sanskrit word Āyurveda which means ‘life-knowledge’. Ayurveda products may
contain toxic levels of metals, etc.

Benefits of Ayurveda

AYURVEDA, a natural herbal healing system that is known to treat body's disorders through
herbs and natural formulations. It is the one of the old ancient system of healing. Ayurveda
originated in India around 3000 years back. Ayurveda corrects the abnormalities and health
by promoting use of herbal components, unique health practices and special healthy diet. The
word Ayurveda drives from Sanskrit which mean is science of life. Ayurveda works to pacify
mind, body and spirit to manage ailments.
The Ayurveda is based on three doshas which are three natural entities that are known to
manage body's all functioning. These doshas are formed through the combination of five
elements (Air, Fire, Earth, Water,and Space). These doshas are

1. Vata dosha– formed from air and space elements. This is known to controlnerve
impulses, respiration, circulation and other movement functions.
2. Kapha dosha– formed of water and earth elements. This is known to controlgrowth
and immunity of the body.
3. Pitta dosh– formed of water and fire. This manages the metabolism of thebody.
Picture-12
1.2Profile of the organization

About the company

Driven by an objective to provide and maintain an optimum state of health, Sukhayubhava

Herbal Private Limited (SHPL), a year old company is engaged, in the direct selling of
Herbal Products and Ayurvedic medicines at competitive prices. Since Ayurveda is the need
and demand for the future generation, so the idea clicked into the mind and SHPL was
formed. Empowered with experience and vast resources, the company offers a wide range of
herbal, personal and health care products and is totally committed to provide pure, natural,
safe and effective products, thereby, enhancing and enriching the lives of all those they touch.

At SHPL, it's all about co-creating value with our customers. There is a continuous
innovation involved in making the products, developing new ideas and providing solutions
which satisfy customers' needs.

SHPL as a company, believe in successful interaction and continuous dialogues through

special platforms like social media to create an experience that WOW’s the consumers.
SHPL value their customers and therefore time to time quality test reports are generated for
herbal products. Research and development department is committed towards product
development and constant enhancement of quality.

Address:

Head Office -

DSS -61,

Urban Estate 2, Hisar -125001 ,Haryana

Vision:

SHPL vision is to be one of the largest empires in herbal and natural products in the coming
future and want to bring the change in life of people through the power of ayurveda.

Core purpose

No matter what the size of our Customers; No

matter what the market condition is;
We will always be driven by the sole mission for our customer network grow , our
business will grow.
Never ever made negative marketing of other products.
Always increasing the awareness of herbal products in Customers.

Values

Always be customer oriented.

Share complete information about the products.
Avoid negative marketing of the competitor products.

Company Management Structure:

 Monika Goyal - Head
of Opertions

Rajjan Makker - Head

of Marketing

Nishu Tyagi -
Supervisor

Figure - 3

1.3 Company offerings

Company offer wealth of opportunities to become an independent business owner. SHPL

present low cost –low risk opportunity to begin your business..Having associated with
SHPL, you can avail retail discount up to 33 % on complete product mix. If you wish, you
can refer these products to your friends and family members so that they can benefit from the
essence from the essence of ayurveda

To become a member of SHPL, you have to submit a duly filled in application/form along
with your KYC documents to the company head office within a period of 30 days of
joining.
Picture- 13

Incomes from SHPL

At any time you would achieve a slab of 35%, you become a silver star. To become a Silver
Star and door opens to earn other benefits from this business.

Let’s understand, SHPL gives rank income to associates who became certified star.
To become a certified star, you should be not less than Silver Star.

How a Silver Star became certified Star?

Whenever a silver star does 35000 group Business Volumes (BVs) in any month, he will
become a certified star but this group business will not include Silver Star Bv’s.

Rank Income

Gold Star:

When any associate under you qualify as certified star and does a business of 30,000 BV
groups from non certified star legs including his personal purchase in a period of one
month , he will become a gold star.

Rewards: 20 % of first generations of repurchase income.

For example: if your first generation repurchase bonus is rupees 2Lac in a month in that
case you will get Rs. 40,000 as a rank income as a gold star associate.
Diamond Star:

When any associate under you qualify as certified star and does a business of 30,000 BV
groups from non certified star legs including his personal purchase in a period of one
month , he will become a Diamond star.

Rewards: 10% of second generations of repurchase income.

nd
For example: if your 2 generation Repurchase bonus is 2, 00,000Rupees in a month then
you will get 20,000 Rupees as a rank income in Diamond Star associate.

Platinum Star:

When any associate under you qualify as certified star and does a business of 30,000 BV
groups from non certified star legs including his personal purchase in a period of one
month , he will become a platinum star.

When any associate under you qualify as certified star and does a business of 30,000 BV
groups from non certified star legs including his personal purchase in a period of one
month , he will become a Platinum star.

Reward: 4 % of third generations repurchase Income

rd
For example: if your 3 generation repurchase bonus is 2,00,000Rupees in a month then you
will get 80,000Rupees as a rank income as a Platinum star associate

Team Bonus

Anyone can became a leader and earn team bonus on business volumes (BV’s) earned
by your down-line generations up to 5 levels.

It is as follows 5%-4%-3%-2%-1%. (1% bonus to 5 level down line, 2% to level 4 and so

forth).
1.4 Product Pricing

In SHPL products are priced as two different types which are as follows:

MRP: When a customer purchase any of company product from online stores orwithout
using discount card (also known as membership card), he/she will be charged at MRP
printed price on that particular product.

DP: Distributer price is that price at which all members of SHPL are eligible
topurchase any of products with discounted price.
 Picture- 14

Business Volume: Company has allotted business volumes (BV) for any productcustomer

purchase from company. Whenever from our down-line buy any product
from company, they will earn business volumes as fixed for all products: subsequently
customer will get equal BVs on his purchase .Same is true for his down – line as well.
Along with these lines, your business volume will continue to accumulate.

Performance Bonus /Repurchase Bonus

Business Volume Percentage %

0 to 1000 0%
1001 to 15000 15%
15001 to 35000 21%
35001 to 75000 27%
75001 to 150000 32%
150001 onwards 35%

Table- 1

1.5 Company Products

SHPL is direct selling company which sells herbal products in three segments .all the
products are made of herbs extracts and chemical free which don’t have negative side effects
.these products can be use for any age group or gender.

These segments are divided into three categories as follows :

 1. Health Care Products
2. Personal Care Products
3. Skin & Beauty Care Products

Health Care Products:

Health care products are focused on medicine line products which are made of natural herbs
.these products are made to not just cure illness but making us healthy for long time. All
these products are made of herbs extraction and beneficial in long terms. These products are
available at MRP and DP as well with up to 26 %. SHPL makes 12 products in Health care
lines. These are as per below

1) SHPL TULSI ARK

2) SHPL GREEN TEA

3) SHPL SCION
4) SHPL DESID

5) SHPL FLUENTA
6) SHPL CONSFREE

7) SHPL SANDHI CARE

8) SHPL BASILOC

9) SHPL AGP
10) SHPL ALOEVERA JUICE
11) SHPL KARELA JUICE

Personal Care Product

Personal care products are made for day to day uses for everyone. These are developed on
extraction base of herbs .all the products are available at MRP and DP as well.
1) SHPL TALCUM POWDER

2) SHPL SHAMPOO
3) SHPL HAND WASH

4 SHPL BODY WASH

5) SHPL HAND SANITIZER

6) SHPL HAIR OIL

SKIN & BEAUTY CARE PRODUCT

This segment of products is focused on the skin and beauty care. All the products are
made of herbs extractions with all the products there are no negative side effects. These
products can be used for all age and gender with little advisory (in term of using). The
unique selling point for products are they can be used for any age group which mean the
cost of having multiple products can be easily avoided.

1) SHPL FACE PACK

2) SHPL FACE WASH

3) SHPL SUNSCREEN LOTION

4) SHPL TULSI CREAM

5) SHPL ALOE GEL

1.6 Challenges for company

Lack of awareness of herbal products in peoples

Since people are not habitual to products made of herbs .people are not
completely aware of benefits from herbal products.
Lack of knowledge of Direct Selling Companies in peoples Since direct
selling companies are in its starting phase, people are not aware of direct
selling companies
Activating Network of members
SHPL is a network based company, growth of any organization not just depend
on increasing members of network but also keeping them active and connected
with the organization.
Over expectations of Customers regarding their earnings Peoples have
unrealistic expectations of the amount of work involved compared to
revenue realized.
Lack of experience of working in MLM based companies
One of the biggest challenges for an MLM organization is less people are less
experience holder and they are not fully aware of MLM plans
Other MLM based Companies
In India there are hundreds of MLM companies which are not following the
guidelines of government and Ministry of Ayush . which creates a
misunderstanding among peoples.
1.7 Major competitors

In business, a company in the same industry or a similar industry which offers asimilar
product or service. The presence of one or more competitors can reduce the prices of goods
and services as the companies attempt to gain a larger market share. Competition also
requires companies to become more efficient in order to reduce costs. SHPL have
competitions from many big FMCG companies which deals in Herbal products or
Ayurvedic products and MLM companies.

Patanjali

Patanjali is an Indian FMCG company. Manufacturing unit headquarter is located in the

industrial area of haridwar, while the registered office is located at Delhi. The company
manufactures mineral and herbal products.
Also has the manufacturing unit in Nepal under the trademark Nepal Gramaudhyog and
imports majority of herbs in India from Himalayas of Nepal.
It’s the fastest growing FMCG Company in India.
Valued at 30Billion Rupees.
Revenue 5000Crore Rupees in 2015-16. Number
of employee 200,000 in 2011-12. Nearly 47000
retail outlets in all over India. More than
50000000 consumers reach.
Over 1000 products.
More than 1500 Associate Farmers

Modicare

Modicare is one of the India’s direct selling companies and is a major player in an industry is
dominated by multinational giants.
Started in 1996.
Company has 40 centres across the country that supplies products to over 2700 cities.
 Product are in the categories of personal care ,colour cosmetics & skin care ,home care
,auto care , nutrition , food & beverages & Health and wellness

Tupperware India Pvt. Ltd.

Tupperware celebrates more than two decades of changing lives in India by transforming,
empowering and inspiring women across the country and the global. This 70-year-old
globally admired company. Tupperware believes that building and investing in people helps
them grow; and the company grows together with them. The brand has helped women all
over the world to gain confidence and turn their dreams into reality. Almost 3 million
successful Sales Force members in over 80 countries across the world are a shining example
of this.

Oriflame

Oriflame is a leading beauty company selling direct. We are present in more than 60
countries, of which we are the market leader in more than half. Oriflame has its origin in
Sweden with corporate offices in Switzerland. We offer a wide range of high-quality beauty
products as well as a unique opportunity to join our sales force and start your own business.

K-LINK India

K-LINK International that flourish and operates in more than 50 countries. K-LINK
India is one of the branches of K-LINK International.

K-LINK started its Indian Operation formally during Jan 2001 with Chennai as the
Headquarters and its branches in Kolkata and Kanpur and slowly spread its business roots to
grow rapidly touching almost all states in India.
Simple Start, Strong Strategy, Proven Products, Aggressive Agenda, Powerful
Promotions, Dynamic Distribution and Never-ending network. These are the Principles
that had riven the K-LINK Management during the launch of their Indian Operation.
1. We are proud to be a direct sales company that is vigorous, idealistic and strategic with the
goal of creating a situation of ‘Win – Win’ for distributors, customers, staff, trading partners
and our business associates.

2. We operate in a very competitive industry and challenging, which is constantly

evolving. Therefore, it is very important for us not to rest on our achievements, we
continue to develop new methods and means for sustainable progress, gives its
distributors and customers around the world, trust and belief that K-LINK really “Your
Global Link”.

3. Products and Business that we undertake is the best in the industry. ‘Unity is
Power‘was the foundation that we made a switch to run a very profitable business, we
have always believed that success can be achieved with the cooperation of teams that are
very strong. This culture we always strive to grow within our company. Our products
consist of Health supplement Products, Personal care, Beauty, Agro and FMCG.

4. Some of our products are widely known among others, K-Liquid Chlorophyll, K-Flax,
Protein Pro and Ayurveda Series.

5. K-LINK has a proven system that is able to increase the ability of distributors, in order
to succeed in this lucrative Business. We continue to grow and thrive and continue to
strive to be a Direct Selling Company dominant in India.

1.8 SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage
of planning and helps marketers to focus on key issues. SWOT stands for strengths,
weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.
Opportunities and threats are external factors.

Strength is a positive internal factor. A weakness is a negative internal factor. An

opportunity is a positive external factor. A threat is a negative external factor. We analysed
the SWOT and these are the some of Strengths, Weakness, opportunities and threats.
Why SWOT analysis needed?

SWOT Analysis is a simple but useful framework for analyzing your organization's
strengths and weaknesses, and the opportunities and threats that you face. It helps you focus
on your strengths, minimize threats, and take the greatest possible advantage of
opportunities available to you.

Strengths

Herbal products
One of the major strengths of SHPL is dealing in Product which are made of
herbs extraction. It gave us advantage of long term no negative side effects of
using and helpful for good healthy life. All the products which use any kind of
herbs are clearly mentioned on the labels of products and certified from ministry
of AYUSH.

Chemical Free products

SHPL products are made of herbs extraction and there is minimal use of
chemical. That much amount of chemical is mandatory to mentioning these
products in forms as per the Ministry of Ayush Guidelines. Chemical free
products are good for health and have no side effects.

Based on Direct Selling

SHPL is using direct selling method for product as well online business for
selling its products. Our Indian Government now started supporting direct selling
industry and made many act in favour, protaction of rights of direct selling
industry

Support of ministry of AYUSH

Ministry of Ayush supports herbal medicine industry and as well promoting

other herbal product manufacturing companies and it issues

 certain guidelines to protect rights of consumer as well direct seller. To
manufacture herbal product in India every company require certificate from
ministry of AYUSH.
The National Medicinal Plants Board (NMPB) set-up in November 2000 by the
Government of India has the primary mandate of coordinating all matters
relating to medicinal plants and support policies and programmes for growth of
trade, export, conservation and cultivation. The Board is located in the
Department of Ayurveda, Yoga & Naturopathy, Unani and Siddha &
Homeopathy (AYUSH) of the Ministry of Health & Family Welfare.

Knowing Consumer Needs

SHPL is starting up company and as its in early stage all the products are
developed as per consumer need. The total numbers of products are increased
from past little time as the customer new demand arises for certain product.
SHPL Trifla was one of the good examples of consumer needs where customer
demands for herbal toothpaste. To survive in market of herbal products, it is
always better to know your customers and make those products which satisfy
majority of customers with single product
Multilevel Marketing
SHPL is direct selling company which use MLM plans where traditional
marketing rules are not followed instead of that, people are become part of
organization and they refer products in their circle and it makes ladders of
multilevel and also gives a alternative source of income to the members of
company

Weakness

Product Reach ability is in early stage

This company is in early stages, the major drawback is limited reach ability of
products and awareness of company products which will be removed with the
 passage of time. In MLM companies it takes time for products penetration as
compare to traditional market.
Branding Image as in early stage
This company is a year old and making an brand image takes long period. If people
are not aware of products they prefer to go for already existed good image brands
Competition from big brands
SHPL have competition from not just from MLM companies but also to face the
competition from big giant’s herbals manufacturing companies. SHPL is more
focused on quality where as other big companies have advantages of low cost with
economy scale and higher market reach ability.

Less Knowledge
Company is its early stage ,it also create a challenge of facing the changing market
conditions rapidly which is results of less knowledge and experience.

Less Capital
SHPL is small venture company and also it’s a new company. it works with small
capital because it’s not required higher capitals because there are no as such
expenses of traditional marketing.

Opportunity

Ever Increasing of herbal Products market

India is well known country for Ayurveda and Herbs. Herbal industry is not just
limited in India but has a lot of growth over worldwide. The herbal skin caremarket
has increased at a double digit CAGR FY’2011 to FY’2016. Rising awareness about
the benefits of using herbal skin care products has enhanced the revenues of the
market. People prefer more herbal products than the products containing chemicals.

Increasing awareness of Ayurveda

 Ayurveda is more than 5000 Years old and usage of its in various products or
mostly in medicine is well known to everyone. These herbs can also be used for
other products as well, which increase the consumption of herbal product and
people are now more aware of ayurveda.

Government focus on Direct Selling industry

Direct selling industry is supported by government and in india direct selling is
regulated by IDSA (India direct selling association).all the guidelines are made clear
so there is no miss understanding regarding direct selling business. The growth of
direct selling industry shows positive signs as per the report of FICCI (Federation of
Indian Chambers of Commerce & Industry).

Increases Awareness regarding herbal products

The awareness of Ayurveda has also increased and there is a steady stream of
interesting titles which is attributing to the increased interest in this ancient field of
medicine. It is gradually entering into mainstream medical health care and is being
adopted by various doctors, chiropractors, naturopaths, herbalists and nutritionists. It
is being considered as an enduring part of the new global paradigm of healing
system today.

Loss of trust on Allopathic

Herbal products are always known as trustful and healthy products and its trusted by
educated and non-educated both kind of peoples. People are getting aware of side
effects of allopathic medicine as its cure many illness or negative side effect in long
term whereas in Ayurvedic products its safe and no fear of any kind of negative side
effect. This is main reason people are now shifting back to Herbal products which are
based on Ayurveda.
Threats

Competition from Big Brands

When any new companies tries to make something new in any category of business
,that will consumes time and other resources as well but whereas big brands can does
same thing very easily and less time will be taken. Same thing is applicable for SHPL
which have competition with big brands.

Fake direct selling companies

In real industry scenario there are many fake Ayurvedic companies which claimed
to be genuine but they found guilty. The image of MLM base company was misused
by fraud companies. It creates trust issue and makes more hardworking to build an
trust in Consumers.

Many companies on the name of ayurveda selling chemical filled

products
In the market there are many companies found guilty selling chemical filled
products with name of Ayurvedic products which not just cause health but also
break the public faith in Ayurveda products.

Slow process of recovery

When we compare herbal with allopathic, the process of recovery is slow in
ayurveda.
Objective and
Methodology
 2.1 Learning outcome

With the help of this project I had an opportunity to apply what we have learnt in our
course curriculum. This project assigned was good and this project was not only
restricted to particular domain in management but was covering many important
aspects in management.

Ayurveda and Herbal Products

Ayurvedic medicine (“Ayurveda” for short) is one of the world's oldest holistic (“whole-
body”) healing systems. It was developed more than 3,000 years ago in India. It's based on
the belief that health and wellness depend on a delicate balance between the mind, body,
and spirit. This internship period gave a brief overview of ayurveda knowledge and how can
be its beneficial for our health but also for business.

Herbal product is one type of dietary supplement. They are sold as tablets, capsules, powders,
teas, extracts, and fresh or dried plants. People use herbal medicines to try to maintain or
improve their health. Many people believe that products labelled "natural" are always safe
and good for consumption.

Multi level Marketing

SHPL is MLM based company and this concept is totally different from traditional
marketing. Here people work for their own or we can say its non-salaried work where every
individual have chance of earning for as much he work for company. It follows referral
marketing or network marketing as much our network increases our earning too increases.
Companies business grows as much this network grows and as well the earning of members.
We learn about various incomes associated with MLM Company.

Communication skills
Being a Marketing company, here we learn how to present our self with the product and
promoting in front of not just customer but as well other peoples such as in Meetings. I
learned that we must be able to communicate with our prospects,customers, peers and
managers in a clear and concise way about the value(s) your company provides.

Familiarising with sales practices

Here we learned network marketing sales where sales is done with help of our circle and
building this network for further more sales growth. Its been a good experience to sell
products and satisfy consumer with these products. In SHPL we learned and understand miss
selling can cause our company goodwill, causes negative marketing. I learned here never
does negative marketing of any other brands in comparison to our products .always focused
on targeted consumer with their specific needs and prefer them those needed most products.

Customer handling

In direct selling market, customers are directly connected with the company and
communicate their feedback directly it’s been a good experience to handle different types of
customers and knowing the reality of market of sales. Its gives me great experience and
improved my patience, knowledge and communications skills as well which will be
beneficial for my further growth in Marketing industry. In marketing customer is the key of
success and we must know how to drive carefully them for maximum customer satisfaction
with company profits.

E-KYC

SHPL is member driven organization where each and every customer has a certain identity
number which is known as member id number. It is registered through E-KYC document
which is filled by customer and then it registered on company website. These E-KYC are
maintained in the system as well for sorting and quick access purpose. I also learned how to
sort they form in company database and how to use them whenever they are required.
 2.2 Objective of the study

To understand the various skills involved during Sales process in company. To

learn about the multi level marketing plans.
To handle potential customers.
To know the need of the customers.
To motivate the inactive customers to carry on sales by using various
schemes.

2.3 Scope of the study

To understand the direct selling market.

To know how direct selling market is appropriate for herbal products. To
know the future of herbal product industry in India.
To analyse the multilevel marketing and how it perform with herbal products
industry.
To know how direct selling market and MLM plans works together.
To study of ayurveda and how it will take over Allopathic medicines in future
years.
Conceptual Discussion
3.1 Direct selling of herbal products
Direct selling is a method of selling products where traditional marketing strategies such as
using (manufacturer- wholesaler-retailer-customer) to sell their products but in direct selling
this method of supply chain reduced to (manufacturer-customer). Many companies follows
direct selling methods to sale their products.
Herbal products are made herbs and based on extraction of herbs. It is treated as best
method for selling herbal product through herbal products because it reduces the cost of
products and also customer has direct contact with companies. For this our company use
MLM plans and communicate with customers through Telephone, email, meetings, social
media etc.

3.2 Marketing Strategies of The Company

References:

SHPL aim is to satisfy the customer in terms of their need by providing them qualitative
products and income with minimal efforts at low investment. Information of products are
provided through meetings , face to face conversation by consumers/members ,tale calling
for reach ability and increasing company awareness. Our company provide medical
checkup free at their head office or on customer request made on call. By satisfying
consumers not just increase company sales but also improves company goodwill and faith.

Competitiveness:

The company is innovative and uses MLM business plan fulfill the income
prospective of customers. SHPL provide products to customer whenever they
required by using network marketing.

Direct Marketing

Globe capital market executive’s reaches to the does of the customer by fixing
 appointments with the interested customer, they describe the details of the product.
Executive give demonstration of the products so that customer can understand
better.

Outlets:
Company products are available at their registered outlets. In various cities and these
numbers are increasing day by day. These outlets have all the listed products and their
Distributer price and as well MRP.

Outlet Name Contact Person Contact Number Address City

SHPL Tarun Kumar 9729201232 135,Canal colony,Gali Fathebad
No 3,Near Siddhartha
Hospital
SHPL Sunil Kumar 9896072700 C/O SR Investments, Tohana
Girl School road,Tohana
SHPL Deepak Kumar 9717379666 #197-A,Flat No 2,Gali Delhi
No.3,Dabri Palam
Road,Vaishali

Internet:

Company provides detailed information about the products on Internet so that customer
can know about the product easily and completely. All the products are available on
online store as such on Flipkart. All these product are available at the MRP price
Picture-15
Data Analysis
4.1 Analysis of job done

Student work profile (Learning and Responsibility)

The work profile of intern is to learn about analysing the market of herbal products and
learning about consumers, herbal products. The responsibility in this internship period is
divided into three targets/parts.

Generation of Leads

Since this work was new in the field so this work had to start from ground level and
generate new leads to sustain in the market and increase our sales .network marketing is
one of the best and easiest method of marketing to grow our sales as well our skills from
known peoples. Although the rate of meeting with people remained very less in early
stages, for making people agree to be part of SHPL, is the main criteria for achieving first
target. This activity gives us mixed result. This activity often got success and generated
many leads through it but it also landed me in awkward position where the customer were
in different mood and made us hear words for which a marketer should be always
prepared to hear. Customer talking always remained more difficult then it’s look like to
make him not just agree to develop in interest of herbal product but also make him active.
At SHPL after getting the products knowledge in the first week at the branch I was also
allotted a target of achieving 5 Members. After I became known to the market and skills to
convey them to be part of SHPL within first week I achieved 5 members and also received
reward for that work as achievement of target.
After the third week my performance also improved and I was able to get close to the next
targets which is 30 Members, though it looked difficult to achieve in the beginning. To get
awareness of the every product and started meeting with more peoples but I can convince
only 21 members till target date but this helped me to improve my selling skills in future
and developing more convincing skills ..
ANNEXURE
ANNEXURE
Annexure was made to know that how much people are aware of herbal products and what
they actually think herbal products. This questionnaire was filled by the people whom I
discussed about SHPL and SHPL herbal products. This questionnaire carry questions
regarding whether they know about these products ,are they interested in buying herbal
products or they feel about these product expensive or not. Some of the questions are
mentioned below:

Questions
1. Do you use herbal medicines for treatment of common disease like cold,
cough, allergic etc?
A)Yes
B)No
2. Do you use consume herbal products without doctor's prescription?
A)Yes
B) No
3. Do you go for brands for using herbal product?
A)Yes
B) No
4. Are herbal products are reliable to your pocket?
A)Yes
B) No
5. Do you like to earn something side by side of using herbal products?
A)Yes
B) No
6. Do you use any of herbal care products?
A)Skin& Beauty care product B)Health Care product
C) Personal Care Products D) None of above

7. Do you like to earn something side by side of using herbal products? If

yes, proceed next.
A)Ye
s B)
No

8. DO you like to have discount card to get herbal products at some

discounted rate?
A)Yes
B) No

9. Will you refer these products in your circles?

A)Yes
B) No

Interpretation of the Annexure

These questionnaire ware designed to make new customers and check whether
they are aware of herbal products or not and are they interested in earning
money through network marketing.
These questionnaire were filled by 21 members of my circle and these
customer response as below

Table .2

Status of Customers No. of Respondents

Already Members of SHPL None

Interaction with Number of Peoples 40

Cold Response 15

Interested in membership 21

Interested in products 10

Product sell to peoples 7

Not interested 12

Out of range/not available 5

Total target 30
4.2 E-KYC Completions
With the sales of products, I also learned about E-KYC documents which are the document
of information each and every member/customer of the company. When any customer feels
to have the additional discount on MRP of the products or be part of company he/she can
register with E-KYC document. Every E-KYC has unique associate id number which is used
while registering in database of company.
E-KYC document carry his/her personal information and additionally other documents
proofs such as Pan Card number ,Bank details but these documents are optional and not
required in every case. IF any of member start earning income through product reference
and purchases these document are mandatory to be submitted to company. Nominee name
details are also given in E-KYC for the nominee. All these information are not just carried in
the document but also in Company database. I also completed more than 1000 member
details in the database and sorted after the sales target period is over.

(E-KYC to be added)
Website View of SHPL Website

This is company official website where every member can check there progress or
purchasing related information by login id, which is provided once they have complete E-
KYC documents. Anyone can have all the information on website such as Business plan,
products, bank details, schemes etc.
Picture -16

Registering Customer with SHPL

With the E-KYC or associate registration form, new members can be member of the
company. First of all members visit the official website and by clicking register button. Its
redirect to new page where, associate id number is to be written, only valid associate id can
go further step of registration. once it verify the pin user can proceeds and provide Sponsor
Id which is basically the referral id and every member id became sponsor id if he/she refer
another members to organizations. After this details provided in E-KYC documents are filled
on the website which generates a unique member id and password.
 Picture -17

Once these steps are completed, user can go further and fill the
mandatory details such as:
 Picture -18

After this a member id card is issued for that member id with their name,
mobile number and member id.

Picture - 19
 RECOMMENDATIONS
After having an experience of one and a half month as an intern would like to
suggest the following things:

1. Company has an advantage herbal products in SHPL is

known for, the customer who need healthy life and chemical
free products life.SHPL is mainly focused on customer
satisfaction through these products on their demands and this
will lead to customer satisfaction and will hip to have more
references from the satisfied customer
2. The company have advantage of direct seller of herbal
products which reduce the product cost and that extra cost
can be transferred to the directly consumer as their income
and also other income by refereeing these products
3. The company is continuously working on their products
strategy and new products for future as their customers’
demands.
BIBLIOGRAPHY
BIBLOGRAPHY

www.shplbusiness.comason 01/07/2017
http://www.worldofdirectselling.com/global-direct-selling-
2015/ason05/07/2017
http://directsellingnews.com/index.php/view/dsn_announces_the_2017_global_100#.
WXhGY-uGPIUason 05/07/2017
http://www.idsa.co.in/IndustryReports.htmlason
06/07/2017http://www.idsa.co.in/members.htmlas06/07/2017
http://www.rusticart.in/difference-herbal-ayurveda-natural-organic-products/as on
06/07/2017
http://jeevana.in/2014/04/14/increasing-awareness-use-ayurvedic-medicine-
benefits/ason 06/07/2017
http://www.nmpb.nic.in/ason 08/06/2017