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A SUMMER TRAINING PROJECT REPORT ON Study of

DIRECT SELLING PROCEDURE OF RDPL FOR THE PARTIAL FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION SESSION 2009-2011 SUBMITTED TO-: Mr. Yoginder kataria M.B.A faculty M.B.A/09/01 SUBMITTED BYAbhishek Parashar M.B.A 2ND YEAR ROLL NO: -

Bhagwan Mahaveer Institute of Engineering and Technology

Maharshi Dayanand University, Rohtak

DECLARATION
I, ABHISHEK PARASHAR Roll No. MBA/09/01 MBA 2nd of BHAGWAN

MAHAVEER INSTITUTE OF ENGINEERING & TECHNOLOGY, SONEPAT hereby, declare that the report entitled STUDY DIRECT OF SELLING PROCEDURE OF RDPL is an original piece of work & the same has not been submitted to any other institute for the award of any other degree. The seminar presentation of the report was made on_______________________________________________________________ & the suggestion given by the faculty members were duly incorporated.

Signature of the project incharge Mr. Y.S. Kataria MBA faculty

Signature of the candidate

Signature of HOD (Mrs. Priyanka Sehgal)

Signature of Director (Director B.M.I.E.T.)

ACKNOWLEDGMENT
The study is not the work of individual but a number of persons are directly or indirectly help me in preparation of this project report. So it is my duty of express my gratitude to those that helped and assisted me in giving shape to this project report.
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First an foremost, my intellectual debt is to those persons who have contributed significantly to the emerging field of my project and whose work has been quoted copiously and used extensively by me in completing this book. I am thankful to Mr. Shailendra Rajvansh( Manager) RDPL, who guided me to complete my project report having very friendly nature. I would also like to thank my HOD Mrs. Priyanka Sehgal. Who helped me in the preparation of my project report. In spite of her busy schedule, gave me time and valuable guidance through out of my guidance work. However, I accept the sole responsibility for any possible errors of omission and commission and would be extremely grateful to the readers of this projects.

[Abhishek
Parashar]

EXECUTIVE SUMMARY
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Summer internship at RDPL NETWORK gave me the opportunity to observe the organization process, their marketing and distribution pattern. The objective of the project was to understand the system of value proposition and long lasting relationship with the customer and after understanding the system, giving suggestions on how to improve the sales by plugging the aberrations in the system. I spent most of the time on understanding the dynamics of this new business. During my training I was exposed to the various processes which RDPL NETWORK was following in its day to day working. First of all, I was exposed to RDPLN scenario as a whole and then my study was concentrated on DIRECT SELLING BY RDPLN. I had visited many Consultants, understanding their system of working, understanding how they perceive the system from delivery point of view which was very important as he is the ultimate face to the customer. Finally, I studied the market projection; the data is collected on observation, questionnaire basis. These eight weeks at RDPLN has provided me with immense exposure to various services which RDPLN is providing to the customers.

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SIGNIFICANCE OF STUDY
Direct selling procedure in RDPL is beneficial for the company.

Improve Product Packaging Sucees in the business

Maintain reliable support and service. Maintain Selling on customer provided specifications.

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OBJECTIVES OF STUDY
Following were the objectives of the study conducted: To study the basic concepts of Direct Selling. To study the consultant goals as consultant start their journey. To study the basic processes that will help consultant to achieve their goals. To learn in-depth about the Unique Selling Propositions (USPs) & the quality story of RDPLNs Products that can become the pillars of consultants business and help them to create a loyal consumer base

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LITERATURE REVIEW
By utilizing the primary data available for the analysis, this report attempts to analyze the growth of direct selling in the business. Thereby giving a direction to forecast the future in a logical manner.

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FOCUS OF STUDY
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Direct selling:Direct Selling can be best described as the marketing of products and services directly to consumers in a face to face manner. Direct selling is a good way to meet and socialize with people. Direct selling offers flexible work schedules. Direct selling is a good way to earn extra income. Direct selling is a good way to own a business.

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CONCEPTUALIZATION
Direct selling(also called Multi-level marketing) is a retail channel for the distribution of goods and services. At a basic level it may be defined as marketing and selling products, direct to consumers away from a fixed retail location. Sales are typically made through party plan, one to one demonstrations, and other personal contact arrangements. A text book definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs."

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INTRODUCTION TO COMPANY
RDPL
RDPL Group of Companies so shouldered and taken to the grand success by the support of a expert team of professional in the field of constructions and city development. The company has put its heart and soul to promote the real estate business for a decade or more, resulting in, the company has achieved many milestones, despite several global recession and economic meltdown in the country even in the recent past. RDPL Landmark & Infrastructure Ltd. which is a sister concern of RDPL Group of Companies is registered under the Companies Act 1956 and having its Regd. Office at B-160, Sector 1, Avantika, Rohini, Delhi-110085. Having its Corporate Office at 304-306, 3rd Floor, Roman Court, Shushant City, Kundli, Sonipat (Hry), the company is escalating its multifarious business activities not only sale purchase of Commercial plots, residential plot, flats,

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duplex, Independent house, SCF, SCOs, but also agricultural land through its dealers net work. Launched in 2003, Rural development pvt. Ltd. Network (RDPLN) is the direct selling arm of rural development pvt. ltd. RDPLN is a multi-brand direct selling business, with the objective to become the most preferred business opportunity in the country. RDPLNs business model is very simple. It partners its Consultants in achieving success by presenting them with a business and self- development opportunity that is truly rewarding. RDPL Networks multilevel direct selling module lays specific emphasis on training and support through RDPLN Centers and RDPLN Academy. This unique module pioneered is known as Partnership Marketing. In this type of module, the company offers a strong support system to individual entrepreneurs in the following ways:

Create comprehensive learning programmes for imparting business and product knowledge as well as personal development.

Creating training and self-study materials.

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Conducting training programmes at regular intervals. Providing support through RDPLN Centres in terms of point of purchase, product demonstration and networking opportuinies.

This Partnership Marketing module is currently being promoted by Unilever in three countries, viz., South Africa, Thailand and India.

VISION STATEMENT
To earn the love and respect of India by making a real difference to the lives of million Indians.

MISSION STATEMENT
Active participation in the growth of national economy.

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The diversified business plans and projects of RDPL Landmark & Infrastructure Ltd. will contribute to the rural development and upgradation of lower income group by the way of generating employment opportunity. To provide quality products and produces of its own industry/farm.

PROJECTS
RDPL Landmark & Infrastructure (P) Ltd.

Real Estate activities Sale/Purchase of Agricultural Land. Commercial (Shop, SCF, SCO, Malls.) Residential (Plots, duplex, Flats, Pentahome.)
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RDPL Infrastructure (P) Ltd.

Constructions of Fly overs, Bridges, National Highways, State Highways etc. Constructions of Corporate buildings, Govt. buildings etc.

RDPL Bazar Corporation.

Aloe Vera Scalar Pendent Garments Export- Import (through franchisee) Footwear (Men/Women) Bio-diesel {Jatrofa, Kai(Algae)} Outlets of all daily usage products (through Franchisee)

RDPL lease & Finance (P) Ltd.

Home Loans Vehicle Finance Cash Loan Loan against property Loan on Consumer durables

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RDPL Tours and Travels (P) Ltd.

Package Tour Time Sharing Scheme

RDPL Insurance Services (P) Ltd.

Life Insurance & General Insurance.

RDPL Informations & Broadcasting (P) Ltd.

Monthly Magazines publication in Hindi RDPL INDIA TIMES Daily News paper (Hindi/ English) News Channel (Hindi/ English) Entertainment Channel (Hindi)

RDPL Software Research and Development (P) Ltd.

Software development and designing.

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These products are specifically developed for the Direct Selling Channel, and not available on sale at any retail outlets. Realizing the importance of providing sound product knowledge and the right advice to its consumers, RDPLN continuously trains and keeps its Consultant updated with new learning tools. This enables the Consultants to offer expert advice to their customers in choosing the products best suited to their needs.

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OPENING THE PROJECTS

CSC opened: SONIPAT(Haryana) on 1st May 2010 DOOMDOOMA(Assam) on 24th June 2010 VARANASI(U.P) on 16th July 2010 ANANTNAG, Srinagar (J&K)

CSC shortly opening : DULIAJAN(Assam) SANGRUR(Punjab) KANPUR(UP) MUZAFFARPUR(Bihar) SULTANPUR(U.P.)

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TRAINING & WORKSHOPS

Along with a portfolio of world- class brands, RDPLN also supports its Consultants with world-class training to achieve success in their direct selling business. RDPLN trains its Consultants in conducting Beauty Parties for Aviance and Better Living Workshops for Ayush. It has also developed special training material to guide Consultants in the best way to set up their own kiosks and Exhibition. All training material is developed by experts and all the consultants receive a certificate at the end of the training

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NETWORK BACKUP & SUPPORT

To initiate and help all the consultants and people within their network and their prospects to achieve their goals, RDPLN Services Centers across the country. These centers play a pivotal role in meeting the needs and servicing the massive Consultant community spread across 1500 cities in India. RDPLN Services Centers provide the right ambience and impetus for learning, conducting business and networking opportunities to existing Consultants and their prospects. These centers are manned by courteous and experienced staff that provide information about products, impart product and business training, assist in the administrative formalities and address queries and specific grievances of the Consultants.

CREATING PARADIGMS

NEW

LEARNING

&

CULTURAL

Training and development are inseparable aspects of any business activity, more so in the networking business where one needs to constantly adapt to the changing market dynamics, upgrade skill sets and acquire the right product knowledge to succeed.

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RDPLN informs each and every Consultant about every new learning opportunity. Special stress is laid on attending the training programmes so that the consultant understands and imbibes the nuances of the RDPLN business ethics and opportunities. Training is imparted in different areas like basics of Business Building through Leadership Seminars.

A unique concept of certification has also been developed by RDPLN wherein anyone can become a certified Star Trainer and use the company training modules to train in his/her line of sponsorship.

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RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. Why a research has been undertaken, how the research problem has been defined, what data has been collected and what particular method has been adopted and a lot of similar other questions are coined for research methodology. Redmen and Mory defines Research as a systematized effort to gain new knowledge.

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It basically describes the procedure for conducting the study. It includes research design, sample size, data collection and procedure of analysis of research instrument.

RESEARCH DESIGN
A research design is purely and simply the framework for a study that guides and collection and analysis of required data. It is the conceptual structure within which the research is conducted. Its function is to provide for the relevant evidence with minimum expenditure of effort, time and money. In this project I have used Descriptive Research Design.

DATA COLLECTION
After the research design was formulated, the process of data collection was initiated.

PRIMARY DATA

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I have collected the primary data for my study by interviewing a number of consultants of RDPL.

SECONDARY DATA
The secondary data has been collected from the official site of the company.

RESEARCH TOOL
The Direct selling questionnaire and structured interview are used as a tool of survey research technique.

DATA COLLECTION TECHNIQUES

1) QUESTIONNAIRE

Self structured questionnaire was prepared and contains many multiple choice questions along with close and open-ended questions.

2) INTERVIEW

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Respondents were interviewed randomly. No set format was prepared for interviewing the respondents. In case of some respondents, face-to-face could not be held because respondent wanted some time out of their busy schedule

DATA ANALYSIS
Data is analysed by using : HISTOGRAMS, PIE CHARTS Weighted average are also used to analyze the data. The weighted average score has been used to calculate the importance of a factor and also to know the most preferred factor for the customers.

(C)

SAMPLING DESIGN

Sampling unit
It is a geographical one. Such as state, distinct, village etc. or a construction unit such as house, flat etc. or it may be social unit such as family, club, school etc. or it may be an individual.
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The research is focused on the correct mix of consumer businessman, serviceman (Govt./Pvt.), self employed/professional, students etc.

Sample size
This refers to the number of items to be selected from the universe to constitute a sample. Due to limitation of time and money it is not possible to contact each and every individual in the city. Keeping in mind these constraints, a total sample size of 50 respondents is considered appropriate to keep the sample accurate as well as manageable.

Sampling Techniques
This refers to the procedure by which the respondents should be chosen. The study is conducted on the basis of convenience sampling. Respondents are conducted as per convenience of the researcher. Random sampling techniques are also applied as respondents were selected randomly. The samples were taken by the method of judgment sampling.

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INTRODUCTION TO STUDY

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Direct selling(also called Multi-level marketing) is a retail channel for the distribution of goods and services. At a basic level it may be defined as marketing and selling products, direct to consumers away from a fixed retail location. Sales are typically made through party plan, one to one demonstrations, and other personal contact arrangements. A text book definition is: "The direct personal presentation, demonstration, and sale of products and services to consumers, usually in their homes or at their jobs." Industry representative, the World Federation of Direct Selling Associations (WFDSA), reports that its 59 regional member associations accounted for more than US$114 Billion in retail sales in 2007, through the activities of more than 62 million independent sales representatives. According to the WFDSA, consumers benefit from direct selling because of the convenience and service it provides, including personal demonstration and explanation of products, home delivery, and generous satisfaction guarantees. In contrast to franchising, the cost for an individual to start an independent direct selling business is typically very low with little or no required inventory or other cash commitments to begin. The United States Direct Selling Association (DSA) reported that in 2000, 55% of adult Americans had at some time purchased goods or services from a direct selling representative and 20% reported that they were currently(6%) or had been in the past(14%) a direct selling representative. Most direct selling associations, including the Bundesverband Direktvertrieb Deutschland, the direct selling association of Germany, and the WFDSA and DSA
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require their members to abide by a code of conduct towards a fair partnership both with customers and salesmen. Most national direct selling associations are represented in the World Federation of Direct Selling Associations (WFDSA). Direct selling is distinct from direct marketing because it is about individual sales agents reaching and dealing directly with clients. Direct marketing is about

business organizations seeking a relationship with their customers without going through an agent/consultant or retail outlet.

By far the majority of direct selling companies use a multi-level compensation plan, where the agent is paid not only for their own sales but also a percentage of the sales of other representatives they introduce into the organization and help train.

WHAT IS DIRECT SELLING?

Direct Selling can be best described as the marketing of products and services directly to consumers in a face to face manner, generally in their homes or the
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homes of others, at their workplace and other places away from retail locations, usually through explanation or personal demonstration, by an independent direct salesperson. Worldwide, the number of direct sellers is growing at 220,000 per week.

MLM A DEFINITION
Multilevel marketing allows sellers to build a business through their own sales efforts and by inviting others to become sellers. Remuneration is based on a seller's personal sales and on the combined sales of those people they have sponsored, trained and motivated.

DIRECT SELLING VS DIRECT MARKETING

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The main difference between the two methods of selling is the face to face or personal contact with the consumers in case of Direct Selling versus a contact through some form of media in case of Direct Marketing. However, Direct Selling organizations may sometimes use direct mail to enhance their business.

BENEFITS TO CONSUMERS
This form of marketing goods or services directly to consumers takes place: at the customer's convenience often in his/her home either on a one-to-one basis, or in the context of a sales party. Customers value the advantages of convenience personalized attention a good selection of products ability to examine the products for a period of time protected by a customer refund policy.

BENEFITS TO SELLERS
Many of these people have chosen direct selling because they want to own their own business, but do not have : considerable funds required to buy a franchise or start a new company training time education Among the top five reasons people sell direct are that they: like and believe in the product like being their own boss, and working their own hours like the supplemental family income or like making

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extra money for themselves feel that the harder they work, the more money they can make enjoy selling and meeting people.

BENEFITS TO COMPANIES
In today's world of rapid change, direct selling offers companies: a direct distribution channel that can be accessed immediately bypassing rigid and costly traditional distribution channels.

DIRECT SELLING REALITY

Direct selling businesses now operate in 170 markets worldwide. In the US, Western Europe, Japan and Australia, direct selling accounts for 0.70% to 1% of the national Gross Retail Product. DSAs affiliated with WFDSA are now established in 60 markets worldwide and in 2007 alone accounted for collective sales of US $203 billion - 70% of the total direct sales channel. The fastest growing worldwide direct selling markets are Russia, Eastern Russia, Eastern Europe, China, and India. Direct selling is the worlds largest provider of microbusiness opportunities. Sales in the U.S. have more than doubled in the last decade to more than $30 billion and are now more than $100 billion worldwide.
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In India, direct selling has existed for the past 15-20 years and several large MNCs have entered the market recently. It is estimated that during the past eight years about 14,00,000 persons have benefited from the opportunities offered by the industry generating a turnover in excess of Rs.3110 crore alone. People from literally all walks of life, of all ages, are successful in direct sales. About 75 percent of those working in direct sales are women, 10 percent are African American, six percent are Latino and three percent are Asian, Native American or other. Many people start part-time, and later leave their other careers when direct selling becomes more lucrative. A direct selling business opportunity is equivalent to a mini-franchise with an affordable entry cost for a business kit and sample products which is normally charged at cost and is refundable if a direct seller decides not to go ahead. In some markets, DSOs make no charge for a business kit. Direct selling is a dynamic and vibrant channel of distribution that offers a potentially exciting income opportunity to a large and growing number of people across the globe. It is a form of personto-person contact activities that helps people to be a part of the globe organization without any great financial investment and yet experience and earn rich reward in terms of entrepreneurial practice ,great lifestyle , secured future for both themselves and their families , and a wonderful bonding with society. An

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entrepreneurial streak, flexible attitude, and investment of quality time and tireless efforts are all one need to succeed in this line of business.

WHY DIRECT SELLING?

Research shows some of the most popular reasons people choose direct selling are: Direct selling is a good way to meet and socialize with people. Direct selling offers flexible work schedules. Direct selling is a good way to earn extra income. Direct selling is a good way to own a business. Earnings are in proportion to efforts. Anyone can do it. There are no required levels of education, experience, financial resources or physical condition. People of all ages and from all backgrounds have succeeded in direct selling. Direct sellers are independent contractors. You're your own boss, which means you can: Work part-time or full-time - you choose when and how much you want to work. Set your own goals and determine yourself how to reach them.

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 Earn in proportion to your own efforts. The level of success you can achieve is limited only by your willingness to work hard. Own a business of your own with very little or no capital investment. Receive training and support from an established company.

CUSTOMERS RESPONSE TO DIRECT SELLING

According to recent surveys, 74 percent of Americans have purchased goods or services through direct sales. That's more than the number who have purchased through television shopping and on-line computer services combined. People value the products available through direct selling and 45 percent of Americans want to buy from direct sellers.

PRIMARY METHODS OF SELLING

Direct selling companies primarily sell their products by one of the two approaches:

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Group Demonstration or Party Plan:

Under this system the salespersons demonstrates products to a group of guests, invited by a host/hostess at a convenient location to a group of prospective customers who are aware of the purpose of the meeting before hand and are interested in the demo.

One-on-One or Person to Person:

The salesperson talks to one customer at a time under this system.

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INTRODUCTION TO DIRECT SELLING OPPORTUNITIES How to identify legitimate direct selling opportunities:
Start up costs should be minimal. The startup fees in direct selling companies are generally modest - usually the cost of a sales kit. Companies want to make it easy and inexpensive for you to start. Pyramid schemes make their money through fees

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paid by new recruits or by loading inventory or training aids on them. High entry fees should be a warning sign. You should be able to return unsold inventory. Companies belonging to the Direct Selling Association "buy back" unsold marketable products purchased within the prior 12 months if you decide to quit the business, for 90 percent of the price you paid for them. The DSA Code of Ethics requires that member companies do this. Beware of opportunities that encourage "front end loading," or buying large inventories of unreturn able products to reach achievement levels or receive a "special" or larger "discounted" price. Is the money you'll earn based on the sale of products or services? The answer should be "absolutely." This is a key element of a legitimate business. Direct selling, like other methods of retailing, depends on selling to customers who use and/or consume the product. This requires quality products and services sold at competitive prices. Beware of any business that claims you can get rich by solely using their products or by recruiting new people into the business. You should also believe in the products or services you'll be selling. Ask yourself, "Would I buy this product if I weren't in the sales organization?" If the answer to that is no, think twice about the opportunity.

HOW TO GET STARTED:

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1.

Identify a company and product that appeal to you.

Check our list of member companies or look in your local phonebook.

2.

Take your time deciding.

Does "getting in on the ground floor" mean that everyone joining after you will be less satisfied or happy? A legitimate opportunity won't disappear overnight. Think long-term.

3.

Ask questions.

About the company, its leadership, the products or services, start-up fees, realistic costs of doing business, average earnings of distributors, return policies, and anything else you're concerned about.

4.

Get copies of all company literature.

And read it!

5.

Consult with others who have had experiences with the and its products.

company

Check to see if the products or services are actually being sold to consumers.

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6.

Investigate and verify all information.

Do not assume that "official looking" documents are accurate or complete or even produced by the company, as opposed to the person trying to recruit you.

7.

Need help evaluating a company?

Check to see if the company in which you're interested is a member of the Direct Selling Association. If it is, you can be assured the company has pledged to abide by and uphold the DSA Code of Ethics. In addition, you might want to call your local Better Business Bureau, state attorney general or consumer protection office.

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Company Name
Avon Products, Inc. Amway Corporation Vorwerk & Co. KG Herbalife Ltd. Mary Kay Inc.

Year Founded 2010 Revenues (USD)

1886 1959 1883 1980 1963 10.9 billion 8.2 billion 3.15 billion 2.4 billion 2.4 billion 2.3 billion 2.21 billion 2.1 billion 1.68 billion 1.52 billion 1.23 billion

Primerica Financial Services Inc. 1977 Tupperware Brands Corp. 1951

Forever Living Products Intl. Inc. 1978 Oriflame Cosmetics Natura Cosmeticos SA Nu Skin Enterprises Inc. 1967 1969 1984

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DATA ANAYSIS AND INTERPRETATION

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STRENGTHS
Customer oriented marketing strategies. Low manufacturing cost. 24X 7 Customer support. Selling on customer provided specifications. RDPL always keen to embed latest technology in its products. It has a reliable support and service. Efficient Inventory management.

WEAKNESSES
Lack of relations between the individual and society

OPPORTUNITIES
India, Pakistan and Bangladesh are the untapped markets. Market penetration in education and Government markets. Cost reduction in latest technology. Partnership or acquiring of suppliers.
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New concept for company save time and lead profit

THREATS
Major competitors in the market. Most of the countries are hit by recession which may result in the reduction of revenues. Government Policies. Rapid change in technology obsoletes the product in small span of time. Aggressive marketing by competitors.

PRIMARY DATA FINDINGS

The following data analysis and interpretation has been done on the basis of primary data collected through the medium of questionnaire.

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DISTRIBUTION OF WORKFORCE RATIO OF GENDER OF CONSULTANTS IN RDPLN

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INTERPRETATION
The figure above shows that direct selling business is very popular among the females. Females contribute a huge chunk of this business ( 84% ) as compared to

males ( 16 % ). The reasons attributed to such popularity among females are that women consider this as a good way to meet and socialize with people. Also, direct selling offers flexible work schedules and is a good way to earn extra income. Some of the women find direct selling a good way to own a business.

AGE OF CONSULTANTS IN RDPLN

INTERPRETATION
The chart for age wise distribution above clearly shows that this business of direct selling is very popular among young generation. The respondents above the age of 35 also started this business when they were young and now they have reached

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respectable positions like that of director, manager, senior manager etc. One of the primary reasons for young adults liking this business of direct selling is that they are more energetic and more enterprising to try out new things in life and this is a relatively new concept of selling. Also, it is very popular among college going students who use it to socialize as well as earn some income out of this.

OCCUPATION OF CONSULTANTS

INTERPRETATION
The distribution graph shows a uniform mix of people from all backgrounds like working professionals, business people, students and housewives. The important thing to note here is that housewives and students form a major chunk (56%) of the entire workforce. For housewives as well as college students, direct selling acts as a medium to earn some extra income as well as socialize. It is because of this reason that people who are working get less involved with direct selling.

FORM OF BUSINESS (MAIN, SIDE)

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INTERPRETATION

The chart above clearly indicates that how the people perceive this business. Although, many of the respondents were of the view that this is a very secure business once your network is set up but on the whole, people take this business as a side business to earn some extra income. Direct selling, generally, is the main business for college going students and housewives.

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LEVELS ACHIEVED IN BUSINESS BY CONSULTANTS IN RDPLN

INTERPRETATION
The graph above shows that as in any organization, direct selling (RDPLN ) also has a large no. of people at the base level i.e. consultant level ( 4%- 14%) . As represented by the graph, half of the respondents are at 4-7% level implying that they have just joined. A less number of consultants (12) are there at 10 -14 % level. They are generally the people who are 4-8 months old in this system. There are 8 managers in the group and it typically takes around 9-12 months to become a manager, that is when your network is set up and the future is secure. However, the time frames given above are not sacrosanct and it really depends on the amount of effort and the seriousness with which one approaches this business. There was a special case in which a consultant has become a manager in only 4 months. Also, there were 4 senior managers and a director among the surveyed people.

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FREQUENCY OF TRAINING OF CONSULTANTS IN RDPLN

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INTERPRETATION

This pie chart shows that most of the consultants do attend training provided by experts regularly. RDPLN supports its Consultants with world-class training to achieve success in their direct selling business. The Consultants are trained in conducting Beauty Parties for Aviance and Better Living Workshops for Ayush. RDPLN has also developed special training material to guide Consultants in the best way to set up their own kiosks and Exhibition. All training material is developed by experts and all the consultants receive a certificate at the end of the training. 48% of the surveyed people attend training on a regular basis while another 36% are those who are working somewhere else and hence are able to

attend trainings and workshops sometimes. 16% of the workforce surveyed is those people who either provide training or who are not able to attend trainings due to one reason or the other.

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MOTIVATION LEVEL OF CONSULTANTS THROUGH TRAINING

IN RDPLN

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INTERPRETATION
The motivation level among the consultants in general is average to high. The findings when explored deeply indicate that the people who attend trainings on a regular basis are more motivated than those who dont. Thus, trainings provided by RDPLN are designed in an effective manner which helps to keep the motivation level of employees very high. Only 14% of workforce is low on motivation which shows that the direct selling business of RDPLN will grow more and more and more and more workforce will join to promote this upcoming business.

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SECURITY IN DIRECT SELLING IN RDPLN

INTERPRETATION
The chart above shows that not very high no. of people ( 28%) believe that this business is really secure and generally these people are also of the opinion that once the network is set up and one has reached at least at the manager level , one can feel secure about this business. One needs to build up his/her network and cannot really boost his/her earnings only on the basis of the sale one does. Therefore, it is a combined effort of downline that helps the upline to notch up good significant earnings. Thus, security levels are average in this business.

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SUPPORT FROM UPLINE IN RDPLN TO DOWNLINES

INTERPRETATION
This graph shows the support one gets when he/she joins this business. A very large percentage of people ( 92% ) are satisfied with their upline and the support they provide. This actually reflects back on the companys training and workshop module which is designed to perfection. A new consultant, thus, on joining doesnt feel demotivated at any stage and hence actually boosts the business of his/her upline. It is very important for upline to keep their downline motivated because ultimately they are the ones who bring business for the uplines and also themselves.

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SECONDARY DATA FINDINGS

DIRECT SELLING GROWTH RATES

INTERPRETATION
Direct selling business is growing at around 5% consistently over the last decade but it is gaining pace now as the growth in 2005-06 stood at 5.6%.

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DIRECT SELLING VS RETAIL SELLING

Comparison with Retail Growth Rate (vertical axis = annual percent change)

INTERPRETATION
The graph above shows that direct selling grew at a greater pace than retail from 2001 to 2003. However, retail sales grew more during 2004-2006 but again both these methods of selling are now growing at around 6% which means that direct selling is slowly and steadily increasing its presence in the market.

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MAJOR PRODUCT GROUPS

INTERPRETATION
The graph above shows that clothing, personal care and home and family durables form a major part of the products sold through direct selling all over the world.
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LOCATION OF SALES

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SALES STRATEGY

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GENDER WISE DISTRIBUTION DISTRIBUTION

AGE

WISE

MARITAL STATUS

EDUCATION BACKGROUND

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HOURS PER WEEK

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WORLDWIDE SALES

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WORLDWIDE SALESFORCE

INTERPRETATION
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Here we find that the worldwide sales as well as sales force are increasing steadily and hence this business is here to stay. Also, we observe that our findings from the primary data are in line with secondary data findings be it gender wise distribution, age wise distribution of workforce or the method of selling

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FINDINGS
RATIO OF GENDER OF CONSULTANTS IN RDPLN
Females contribute a huge chunk of this business as compared to males .

AGE OF CONSULTANTS IN RDPLN

Direct selling is very popular among young generation.

OCCUPATION OF CONSULTANTS

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Survey shows a uniform mix of people from all backgrounds like working professionals, business people, students and housewives.

FORM OF BUSINESS (MAIN, SIDE)

People take this business as a side business to earn some extra income. Direct selling, generally, is the main business for college going students and housewives.

FREQUENCY OF TRAINING OF CONSULTANTS IN RDPLN

Survey shows that most of the consultants do attend training provided by experts regularly.

MOTIVATION LEVEL OF CONSULTANTS THROUGH TRAINING

IN RDPLN

The findings when explored deeply indicate that the people who attend trainings on a regular basis are more motivated than those who dont.

SECURITY IN DIRECT SELLING IN RDPLN

Security levels are average in this business.

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LIMITATIONS

Despite the comprehensiveness of this survey and the use of a representative sample, there are some important limitations. Respondents to the survey were asked to base their responses on records or personal knowledge. Since it is impossible to determine which responses were based on official records and which
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were based on personal knowledge, the most conservative view would be that all responses were estimates by the individual or agency respondent. Responses to survey questions likely were influenced by the respondents' perceptions of direct selling as a business in their jurisdictions. The major limitation of the survey method is that it relies on a self-report method of data collection. Intentional deception, poor memory, or misunderstanding of the question can all contribute to inaccuracies in the data. Furthermore, this method is descriptive, not explanatory, and, therefore, cannot offer any insights into cause-and-effect relationships. Also, Surveys provide only verbal descriptions of what respondents say they do or how they feel about something. Responses cannot always be taken as accurate descriptions of what the respondents actually do or really feel about something. This is particularly true for behaviour contrary to generally accepted norms of society. Moreover, errors due to time constraint for the consultants cannot be ruled out. The sample size 50 chosen here is from a single city only, so that might lead to some kind of a biased results and hence interpretations.

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CONCLUSION

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Based on the data analysis and interpretation, we have identified following key observations:

Direct seling worldwide is growing at a rapid pace Direct Selling is more popular among young generation Direct Selling workforce at RDPLN is completely dominated by females Housewives and college students form a major part of RDPLNs workforce More workforce at base level and has just joined Motivation level among the workforce is in direct correlation with attending trainings and workshops Full support of the upline to new joinees Most of the consultants take this business as their side business Level of security not very high in this business Training sessions are held on weekdays

Some of the other findings from the subjective questions in the questionnaire and the subsequent interview are: Some of the major problems faced by consultants in selling their product are:

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 Lack of trust
Customers usually donot trust the product because they are not aware of the drect selling arm of RDPLN. This actually poses a lot of roblems and it takes a skilled consultant to convince the customers about the authenticity of the product. In some cases, even free usage is promoed by the consultant in order to get a loyal customer.

High Prices
Another problem apart from lack of trust is that people think that the prices of the products are high as cmpared to other retail products available. This can agin be attrubuted to lack of marketing by RDPLN.

Product Packaging
The products are available in only very few sizes and therefore it is unable to meet the demand of many customers. Some of them want to try small sizes first and then buy bigger sizes but because of small sizes they end up buying nothing. Also, the consultants recognise this fact and are trying their best to influence the top management to do something about this. Also, a couple of products are very

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loosely packed i.e. they are not sealed properly. This again creates a problem of trust among customers.

One of the other key issues to be addressed here is that the information dissemination is not smooth . In fact, information lies only with the director or senior manager and the people below that level in the organisation are not informed regularly about the new schemes that the company is offering in a particular period and also the other happenings on the product development front and companys expansion plans etc. This poses a very big threat to the organisation in near future because if your workforce is not fully aware , they will lose the focus as well as motivation and hence lose out on sales and thereby hit company business adversely.

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RECOMMENDATIONS
In light of conclusions above, following recommendations are suggested as a part of 8point program: 1.

Training sessions on weekends

The training sessions if held on weekends would serve a 3-fold purpose: a. b. c. It would encourage working professionals to join who would otherwise not It would promote a good mix of youth as well as experienced people. It would also encourage males toward this business as they can take some be able to attend trainings.

free time out on weekends and hence promote direct selling. 2.

Organise Camps in colleges

As already mentioned, college students are very much attracted towards this business. Hence , organising more and more camps in colleges would ultimately lead to a energetic and enthusiastic workforce with a very strong social network.

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3.

Increase Awareness

The consultants are facing problems regarding lack of confidence and trust among customers and hence brand building should be promoted. The advertisements of RDPL must also lay some emphasis on RDPL i.e. direct selling so that the customer is atleast aware of the company he is buying a product of and when one identifies it with market leader RDPL, the products will sail through. 4.

Success stories to be reiterated

The training sessions are effective at present but they can always be made betterby teling success stories of RDPLN consultants who began their careers as every other individual and have now reached great heights in their businesses. Once a while, these successful people should be called to deliver talks on how they became successful and discuss their strategies of selling the products.

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5.

Incentive based Trainings

Consultants should be given some incentives to attend the training because we have seen that there is a direct correlation between motivation and training. Hence it becomes even more important for consultants to attend the training. Also,

consultants can bring in their customers in the training so that it becomes easy for experts to convince a new comer. 6.

Improve Product Packaging

This is a very long term recommendation because its not possible to produce in different sizes very easily.Hence company should take its time but make sure that it is able to roll out new products in attractive sizes so as to meet the demand. 7.

Encourage Direct selling as main business

Training sessions and success stories are some ways of encouraging the consultants to take this as their main business. 8.

Information Flow should be smooth and proper

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The major drawback in this system is the lack of information flow. The consultants need to be aware of each and every development of the company and also about the new schemes being launched. This promotes sales to the consultants and ultimately the company benefits.

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ANNEXURE
In this we show sample of questionnaire Questionnaire about the study of Direct Selling in RDPL

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QUESTIONNAIRE ON DIRECT SELLING PROCEDURE OF RDPL

-Name: _________________________ -Age (in years): ______________ -Sex (M / F): ______________ -Occupation: ______________

-Is this (RDPL consultant) your main business or side business? (main/ side) ________ -How long have you been associated with RDPL as a employee? (In months) ___________ -Your current level in this business?
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Sales executive

Manager

Senior Manager

Director

-How regularly do you attend training provided by RDPLN? Rarely Sometimes Mostly

-Do you feel motivated after attending a training seminar? High Average Low

-How do you rate your up line in terms of the support they have provided? Good Average Poor

-Do you get the product easily and on time? ____________ -How satisfied are you with RDPLs products? _________

-How satisfied are your customers with RDPL products? ___________ -How satisfied are you with compensation plan offered by RDPL?
__________
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-What do you think is the level of security in this business?

High Average Poor

-What kind of problems you generally face while selling your products?
__________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ _______________________

-Ways to improve direct selling process / Your personal experiences / Customer feedback/ Any other comments
__________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________
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__________________________________________________________________ __________________________________________________________________ ________________________________________

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BIBLIOGRAPHY
PRIMARY DATA SOURCE:
1. QUESTIONNAIRE ON DIRECT SELLING PROCEDURE OF RURAL DEVELOPMENT PVT. LTD.

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2.

INTERVIEWS OF CONSULTANTS

SECONDARY DATA SOURCE: WEBSITE REFERENCES:

1. 2. 3. 4. 5. 6. www.directselling.in www.dsa.org www.wfdsa.org www.hln.co.in www.rdpllandmark.com www.directsellingbusiness.com

BOOKS REFERENCES:
1. Direct Selling Channels by Roosebloom bert

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2. 3.

Direct Selling 101 by Neil and Dana Phillips The 2007-2012 Outlook for Direct Selling Establishments in India by Philip M. Parker

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