BALAK SALES AGENCY MBA Porject Report Prince Dudhatra

8/6/2019 BALAK SALES AGENCY MBA Porject Report Prince Dudhatra

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PROJECT AT GLANCE

Name of the Unit : BALAK SALES AGENCY

Address : “Deep prakash”

23/35, new jagnath plot,

Rajkot – 360001.

Year of Establishment: 1931

Constitution : A Public Ltd. Multinational Co.

Dealership of : Hindustan Lever Limited

Head office : Mumbai

Type of Product : [1] Home & personal care products[2] Food & Beverages

Personnel : Workers -41000

Managers -1550

Operations in India : spread across 70 + locations in India.

Its operation involves 2000

suppliers & 7000 stockiest & agents.

Competitors : Palmolve, Nirma, Godrej, Emami.

1



INDEX

No Name Page No.

1 Introduction 3

2 History & Development 4

3 Achievements 8

4 Corporate Purpose 9

5 Social Responsibility 10

6 Products 13

2



INTRODUCTION

In today’s modern world, we see many different products coming into the market, some products going outof the market, sales of some products going up where as

sales of others going down & so on. There are numerous

ranges of multifarious products available in the market.

There are so many giant industries and companies

manufacturing a series of products.

One such company is HINDUSTAN LEVER

LIMITED. Hindustan lever limited is one of the most

famous companies in India. In today’s domestic market

Hindustan lever limited has captured the major share. It is aknown fact that Hindustan lever limited is a multinational

company. Hindustan lever limited is particularly famous for

different types of soap, cosmetic items and detergents.

I got my training in BALAK SALES AGENCY,

Which is the dealer of this company. I received necessary

information from Mr. Prakash R. Mehta who is the proud

owner of Balak Sales Agency. He provided me information

about history, production & marketing mix.

3



HISTORY & DEVELOPMENT

The Indian industries are moving rapidly on the path of change, development and innovation. The company knowntoday as Hindustan lever limited began its operations a

hundred year ago. It was engaged in the import, distribution

& sales of soap and later on other detergents. Food

manufacturing facilities were set up in 1930.

In the year 1956 Hindustan lever ltd came into beingthrough a merger of

Two lever brother India limited

Hindustan vanaspati mfg co. ltd.

United traders limited

During the last 2 decades, major diversification programmers as well a capital investment in backward areas

are undertaken. All through this period the company hascontinued to invest in and strengthen it selling &

distribution system.

The 1998, sunlight soap was introduction in India.

After sunlight Dalda, pears, lifebuoy, lux soap, vim etc.were introduced in India. In 1955, 65% of management in

lever industries were Indians.

In the year 1991

Lifebuoy plus, breeze sandalwood, surf ultradetergent launched.

In the year 1992

4



• Dab gram soap unit commissioned.

• HLL was recognized by Govt.of India as

Star trading house in exports.

In the year 1993

• Hindustan lever’s largest competitions Tata oil

co. joined hands with Hindustan lever w.e.f. 1st

April 1993. Merger was ultimately accomplished

in December 1994.• Launching of Vim Bar

In the year 1994

• Nepal lever limited formed in which Hindustan

lever acquired 80% equity stake.• 50:50 joint ventures between Hindustan ever

and US based Kimberlerg–Clarck Corporation.

New venture named Kimberlerg Clarck Lever

Ltd. Formed to marked haggis diaper & kotex

feminine care products. Factory set up in Pune

in 1995.

•

Hindustan lever introduced walls.

5



In the year1995

• A 50:50 joint venture between Hindustan lever

limited and Lakme Ltd.• Brooke bond A1 launched.

In the year 1996

• Merger of Group Company. Brooke bond Lipton

India ltd. With Hindustan lever ltd.• Joint venture with Lakme Ltd. Started operation

on 1st January 1996.

• Introduction of branded Aata.

• Launching of Surf Excel.

In the year 1997• Set up of international research laboratory in

Banglore.

• New regional innovation centers come up.

In the year 1998

• Ponds India ltd. Merger with Hindustan lever ltd.

W.e.f.1st January, 1998.

• HLL acquired 50% equity in Lakme Lever Ltd.

6



In the year 2000

• HLL acquired 74% stake in modern food

industries ltd, the first public sector co. bedisinvested by the govt. of India. The company

has celebrated its Diamond jubilee. Mr. S.M.

Dutta Chairman (1991) enlightened the spirit by

ushering the following graceful words. “The

history of Hindustan lever ltd in not a history

so much as retelling of a spirit that had

permitted every steps of this company. It’s atribute and record.”

7



ACHIEVEMENTSOF HINDUSTAN LEVER LIMITED

In the year of 1992, Hindustan lever ltd. Wasrecognized as ‘star trading house in exports”

The Forbes Globle ranked HHL as the world’s

household product company.

The eastern economics review has been selecting HHL

as “India’s o.1 co. in overall leadership.”

The marketing strategy & distributions channel of

HHL has also been ranked 1st.

OF BALAK SALES AGENCY

Achieved glorious result in Arjun Award contest-

Saurashtra Zone – 1996.

8



CORPORATE PURPOSE

To meet the everyday need of people everywhere – toanticipate the aspirations of customer & to respond

creatively & competitively with branded products &

services, which raise the quality of life.

To bring the wealth of knowledge & international

expertise to the service of local customers-A RULY

MULTI LOCAL MULTINATIONAL.

HLL’s long term success requires a total commitmentto exceptional standard of performance & productivity,

to working together effectively, to embrace new ideas

and learn continuously.

To believe that to success requires the highest standard

of corporate behavior toward employees, consumers &the societies & world in which we live.

9





2. social responsibility toward the consumers

Although marketing is about meeting needs, wants and

preference of the consumers up to the mark, understandingcustomer’s and wants is not always a simple task.

Some customer have needs of which they are fully

conscious or sometimes the customers become confused

when faced with multiple products to choose. Customer’soriented thinking requires the company to define customer

need from the customer’s point of view because ultimately

“customer is the king of the market.”

Company gives response to the customer’s need or

what they really need. The key to professional marketing is

to understand the customers real better the competitors can.

3. social responsibility towards the employee

There are many reasons, which make an employee

dissatisfied on the part of the company. One such reason of

dissatisfaction is towards wages, money wages and real

wages. If both are satisfied than a worker can worker can

work enthusiastically.

Hindustan lever ltd provides just & fair amount of

salaried and wages to its employees and thereby provides ahigher level of inspiration. They provide health and medical

facilities not only to employees but also to the family

members. They also provide premiums and bonds andtraveling expenses reimbursement.

4. social responsibility toward the government11



Government’s major service of revenue is

collection of taxes & duties. Hindustan lever ltd pays taxes

regularly and thus discharge their obligation towardsgovernment.

The company’s reputation based on high

principles of ethics reliability & pride in the products isfairly well known. If the inheritors of that legacy guard

these principles the flag of Hindustan lever ltd will fly as

proud in incoming century as it does today.

12



PRODUCTS

HLL mainly deals in 2 types of products

i. home & personal care products

personal wash

- lifebuoy gold

- lifebuoy neem tulsi

- liquid lifebuoy

- lux –ink, white, squabble- lux international

- lux facial wash

- lux shower gel- rexona

- liril

- jai

- dove fabric wash

- surf

- surf excel- rin

- ala

household care

- rin shakti- vim bar

- vim paste

- domex

- vim micro

- magic dish wash- raid mosquito coil & mats

13



hair oil & creams

- sunsilk

- Vaseline hair tonic

Skin care

- Vaseline

Perfumes

- rexona active

- rexona cotton drive

ii. food and beverages

a) tea

b) coffee

c) fruit products

d) staple foods- Annapurna salt

- Annapurna aata

14



MARKETING MIX

Marketing is a comprehensive term; it includes all

resources and a set of activities that facilitate the flow of goods & services from product to consumers. To plan outmarketing activities and to provide better facilities we have

to select specific market target in from of market segments

or sub division of market. The marketer formulates a

combination of a number of devices or types of marketing

activities that are co-ordinate into single marketing

programmed to reach a particular target or market segment.The combination of those marketing methods or devices is

known ad the marketing mix.

A successful marketing strategy must have a marketingmix as well as target market for which the marketing mix is

prepared. The elements that make up marketing mix are 4

and they are as under;

I. Decision on product or service

II. Decision on price

III. Decision on promotion

IV. Decision on place or distribution

The success of company will be assorted to only by

buying the right product linked with the right promotion atthe right price & in the right place. What is right is to be

declared by the customer. The decision on one element can

also affect the other elements because the marketing mix is

changed as per change in environmental force.

15



In the simplest manner, the basic marketing mix is the

blending of 4 inputs or submits which forms the marketing

system. The 4 inputs are also known as the 4ps of marketing

mix. They are;

1) Product mix

2) Price mix promotion

3) Promotion mix

4) place mix

16



Following design shows the area of marketing mix

One thing should be noted that 4ps represented the

seller views the marketing tools available for influencing

buyers report.

17

Product mixBrand

Style

Colour

Design

Product line

Package

Warranty

service

Price mix pricing

pricing policy

basic price

terms of credit

discount

allowance

Marketing

Strategy

Marketing mix

Focus on the target

Market

Promotion mix personal selling

advertising

publicity

sales promotion

dealers aids

consumer aids

Place mixdistribution channel

wholesaler

retailer

mercantile agents

physical distribution

transport

warehouse

inventory



Lauterbarn suggested 4cs corresponding to 4ps. They

are as follows:

1. products : customer needs and wants

2. price : cost of the customer

3. place : convenience

4. promotion : communication

18



INDEX

No.

Name Page no.

1 Introduction 20

2 Product variety 21

3. Colour 22

4. Designs 22

5 Feature 23

6 Size 247 Qualities 25

8 Brand name 25

9 After sale service 26

10 Product width 26

11 Product line 26

12 Conclusion 28

19



INTRODUCTION

The product is the most tangible and important singlecomponent of the marketing programmed. The product policy and strategy is the corner stone of a marketing mix.

Without a production there is the nothing to distribute,

nothing to promote and nothing to price.

“A product is anything that can be offered to a

market for attention, acquisition, use or consumptionthat might satisfy a want or a need. It includes physical

product, services persons place, organization and ideas.”

- Philip kotler

Product is a vehicle by which a company provides &

drives consumer’s satisfaction. It is the engine that pulls the

rest of the marketing programmed. If the product fails tosatisfy consumer demand, no additional cost of any of the

ingredients of the marketing mix will improve the product

performance in the market place.

Product mix is the heart of marketing mix. To the

marketer products are building blocks of marketing plan.

Good products are key to market success. The marketer

takes products decisions first and these decisions are centralto other marketing decisions such as price, promotion and

distribution.

20



A product is the sum total of physical, economic,

social and psychological benefits. Marketing must define

their market in terms of production function - what the

consumers expect from the product. Thus, the product mustcompile the customer’s and wants.

The product mix contains the following point:

A.Product variety

B.Colour

C.DesignD.Feature

E.Size

F. Quality

G.Brand name

H.After sales service

I. Product width

J. Product lineK.Product consistency

1. PRODUCT VARIETY

Product variety includes the number of products

produced by the company. Different products may satisfy

similar or different needs. Therefore, the marketer has to

make his strategy carefully in order to satisfy the needs of particular segment of customers.

In the case of Hindustan lever ltd, there are numerous products; Hindustan lever ltd is a leader in home and

personal care products and food & beverages, all of which

makes Hindustan lever ltd India’s largest packaged mass

consumption goods (pmcg) company.21



2. COLOUR

Colour is one of the product. By using different colour

combination, customers can be attracted. It is used to

stimulate the demand of products. Not only has this but thecolour also helped to enhance the beauty of the product.

As Hindustan lever ltd offers a variety of product,

colour in each product is different and attractive. Foreg.HLL research center has developed the rich, creamy

VSSELINE INTENSIVE CARE BODY LOTION, which

contains the natural goodness of milk cream and the deepnourishing values of vitamin E. As it contains milk, the

colour of this product has also been kept white & sky.

3. DESIGNS

It reflects the outlook of the product. It is the

totality of feature that deflects how a product looks &

function in terms of customer’s requirement. Incompetition, it will offer one of the most potential ways to

differentiate and position a company’s product and service.

Design is particularly important in making and marketing

durable equipment retail services and packaged goods from

the customer’s point of view, a well designed product would

be pleasant to look at and easy to open install, use, repair &

dispose of. The designer has to consider all the above facts

while designing the product.

22



One very attractive of HLL is “pond’s talcum powder.

The covering i.e. the packaging tin has got an eye-catching

design. So far as PONDS is concerned there are so many

types. Following are the most common ones.

I. PONDS DREAM FLOWER WITH FLORAL

EXTRACTS shows pink- white colour combination

& flower drawn on the tin.II. PONDS MAGIC WITH 12- HOUR FRAGRANCE

shows purple white colour combination and butters

and stars drawn on the tin.

4. FEATURES

The term feature refers to choose inherent

characteristic of the product, which makes it different and

unique from other products. A feature has the power to

switch up the consumer from product. So, the company

has to become innovative in adding new features to its products.

So far as HHL is concerned it includes innovative

feature almost in it every product.

For e.g. the recent product improvement is Lifebuoy

Neem Tulsi, which has got the herbal feature of Tulip &

Neem.

23





6. QUALITY

Quality is the pre requisite to market leadership.

Industry with low quality products cannot run longer.

Consumers do not want cheap quality but they want valuefor money. They are ready to spend more for high quality

so the firms will have to seriously examine their product

quality.

One of the corporate practices of HLL is quality

policy. HLL is very much concerned about the quality of its

products and has a separate quality functioning term.

7. BRAND NAME

A brand name is a name, symbol or design or a

combination of these, intended to identify the goods or

services of one seller or group of sellers and to differentiate

them from those of competitors. Branding is the best means

to capture and return the consumers demand in acompetitive market. The marketer creates brand equity,

brand loyalty and brand image for its product only through

branding.

Thus it is one of the most effective & competitive

tools and in a way represents A FACT IN THE CROWD

STRATEGY. In taking brand decision the firm ha to

consider the target market; cultural influence on the marketand role the brand will play in its business strategy.

Over the past 70 years, HHL has introduced about110 brands. It focuses on 30 power brands, most of which

have become market leaders and household name in the

country.

25



8. AFTER SALES SERVICE

After sales service is an important aspect of

marketing transaction. It covers repairs, spare parts &maintenance. Marketing research emphasizes the

importance of after sales services in the marketing

campaign. After sales services is normally for big

appliances and huge equipments.

Though after sales services are carried out by

machinery industries, HLL is not far back from it. At the back of every product cover, HLL mentions that if you (i.e.

customer) have any quires write us at so and so address.

9. PRODUCT WIDTH

Width in the product mix refers to the number of

product line marketed by the firm.

HLL provider a wide range of products to its

customers. It includes home and personal care products,

food and beverages and cosmetics items.

10. PRODUCT LINE

Product line consists of different products that are

closely related to each other in a sense that they satisfy a particular class of needs or are used together, as are

distributed through the same channels, or process common

physical and technical attributes.

26





CONCLUSION

Thus, product mix is the heart of any successful

marketing strategy. Product mix planning is largely theresponsibility of the company’s strategic planner. Acompany’s product mix has a certain width, length, depth,

and consistency. These 4 dimensions of the product mix

provide the handles for defining the company’s product

strategy.

The company can expand its business in 2 ways byadding new product warranty to each product and finally

by pursuing more product line. The product mix of any

company should be such that all the facilities and features,

which a consumer demands, must be gracefully met. The product mix should be such that it is beneficial to the

producer as well.

28



INDEX

No.

Name Page no.

1 Introduction 30

2 Pricing Objective 31

3. Pricing Policy 32

4. Factors Affecting Pricing 32

5 Price List 33

6 Discount And Allowances 347 Credits Terms 34

8 Price Sensitivity 35

9 Government Policy 35

10 Pricing Method 36

11 Types of Pricing 36

12 Conclusion 37

29



INTORDUCTION

Pricing decisions have strategic importance in any

enterprise. It is the only element in marketing mix,accounting for demand & sales revenue where other elements are cost factors. To a manufacturer, price

represents quality of money received by the firm or seller.

To a consumer, it represents sacrifice and hence his

perception of the value of the product.

Pricing is equivalent to the total product offering. Thisoffering includes a brand name, a package, products

benefits, and service after sale, delivery, credit & so on.

From the member’s point of view, the price also covers the

total market offering i.e. the consumers are also purchasinginformation through advertising, sales promotion, personal

selling & distribution methods that has been adopted. The

consumer gets these values and also covers their costs. Wecan now define price as the money value of a product or

services agreed upon a market transaction. We have a king

of price equation, where

Money (Price) = Bundle of expectation or satisfaction

Companies handle pricing in a variety of ways. In

small companies’ price are set by top management where asin large companies pricing is typically handled by a separate

division.

30



The pricing mix should cover the following points: -

1. Pricing Objective

2. Factors affecting pricing3. Pricing policy

4. Price list

5. Discount & allowance

6. Credit terms7. Price sensitivity

8. Govt. policy

9. Pricing method

PRICING OBJECTIVE :-

To take decision regarding the price is most difficult

task for manager. A firm must set a price a price for the

first time. When the firm develops or acquires a new

product, when it introduces its regular product into a newdistribution channel or geographical area and when it

enters into a new contract work.

Thus, every marketing planning involves a pricing

decision. Therefore all marketing planners must make

accurate & planned pricing decision. The company has

some definite idea about what it wants to accomplish

with its particular product.

a) To achieve target return of investment.

b) To stabilize the price.

c) To maintain or improve target share of market.d) To meet competition.

e) To prevent competition.

f) To maximize profit.

g) To maintain an image.31



2. PRICING POLICY :-

Pricing is an important element in the marketing mix.

Arrival at the right selling price is essential in sound

marketing mix. Price policies provide the generalframework within which the price decision can be made.

Price policies are guidelines to carry out pricing strategy.

Price policy must change and adopt themselves with the

changing objectives and changing environment.

Balak sales agency does not have any pricing policy,

because it is dealer & the company fixes the final price of the product for both dealer & retailers. It fixes commission,

transport charges, other expenses etc.

FACTORS AFFECTING PRICING: -

There are various factors affecting price. The marketer

has to know the firm’s cost function and the influence of external environment variable like competitor’s reaction and

government policy, besides knowing how demand varies

across different price levels.

Hindustan lever limited considers a number of factors

while deciding upon the price. The factors include:

a) Price of competitors b) Production cost

c) Govt. excise

d) Customers’ demand

32



These four factors play an important role in deciding

pricing. Cost is the most important factor to be taken into

consideration while setting the price of the base of deciding

the pricing. The next important factor is the govt. taxes. If the govt. taxes are to be paid more, then the prices of the

product will also increasing accordingly. While customer’s

demand and firms cost function serve to provide the

boundaries of price decision, environmental forces tend tohave an upward or downward involving effect of the price.

PRICE LISTPrice list proved very helpful to dealers, retailers &

consumers. They become aware of the maximum price

limit. The companies have to orient & circulate price list

periodically among the dealers. The price list of every

company is reprinted from time to time depending on the

changes like technology, tax, rebates etc. price list forms an

internal part of the teamwork of the company. It is astatement, which shows the future, profits indirectly.

Hindustan lever limited prepares price list at the time

of budget every year. If there are any changes taking place

in the price then price list is reprinted & circulated.

33



5. DISCOUNT AND ALLOWANCES

Discount and allowances are price concession offered

to traders or buyers in the form of deduction from the price

list or from the amount of bills or invoices. Manycompanies are also ready to grant discounts, allowances &

special terms to their dealers and customers that they may

feel to realize how title profit may be made. Company

should measure the cost of granting each discount or allowances against its impact on marketing the sale. They

should than establish better polices as to what should be

granted to customer in bidding for their business. There arevarious types of discounts & allowances like cash discount,

functional discount, seasonal discount, quality discount,

advertisement allowances, window display amt, trade in

allowance etc.

Hindustan lever limited allows quantity discount to its

dealer. To customer, it gives seasonal discount, buy one getone free scheme, 20% off at Diwali time, Dove Special

Offer, Etc.

6. CREDIT TERMS: -

It refers to the rules & regulations in the form of an

agreement between the producer and dealers or producers

and consumers in relation to credit facilities available from

the company. Depending on the policy of the managementof the company, credit terms may remain the same or

different from consumer to consume. Credit terms change

over a period of time. In today’s market it is a fact that eachcompany has to give a short or long-term credit. Then only

it can expand & sustain its market in cutthroat competition.

34



Hindustan lever limited gives cash & credit facilities

to its customers but mostly they prefer cash payment.

7. PRICE SENSITIVITY: -

This is one of the customer’s behavior that

comforts the marketer. Price sensitivity is the change in

behavior of customer due to price change. The marketer hasto perform the task of knowing the customers who are

highly price sensitivity.

In this company price sensitivity is less because of diversified products. Price sensitivity is low if the buyer has

difficulty comparing two alternative buyers are less pieces

sensitive where the expenditure on the product is how

compared to the total cost of the end products.

8. GOVERNMENT POLICY: -

The government’s fiscal policy also contributes

towards the pricing decision. Here the company has to

consider taxes, customs and excise duties on the product of the firm. If the government increases the taxes and excise

duties, the price of the product also increases. Even if the

firm wants to reduce the end price to the customer to

generate demand, it may not be able to do so mainly

because of the government policy.

Thus, price mix receives more attention of the manager

because it is much more important in marketing mix.

Therefore the decision relating to prices usually appears at

the center stage. Price is such a tool, which can attract more

customers. It is reasonable with best quality. Price mix plays a critical role in the operation and the management of

the business unit.35



9. PRICING METHOD: -

Cost demand and competition underline the different

pricing methods that a firm may accept.

Hindustan lever limited adopt the demand oriented

pricing method. In the long run the best pricing policy in a

competitive market is the market-based method of pricing.

It is safer to follow the process of import competitors whodominates the market such a price policy will prevent price

war and assure normal profit.

10. TYPES OF PRICING: -

Companies usually don’t set a single price for the

product or service, but refers variation in geographically,

purchase timing, purchase frequency etc. There are different

types of pricing, which are as under: -

1) Discretionary or differentiated pricing2) Discounted pricing

3) Promotional pricing

4) Product line pricing

36



CONCLUSION

Thus in nutshell price mix is interpreted to mean,

“Money value received against exchange of goods or services.”

If also indicates buyers intensity of desire to purchase

also. In other words it means the factor at which buyers are

willing to pay for a product keeping in view its utility.

The pricing are to be determined very carefully

keeping in view different factor like market conditions,demand, supply, economic environment, etc.

37



INDEX

No.

Name Page no.

1 Introduction 39

2 Advertising 41

3. Advertising Media 44

4. Sales Promotion 47

5 Position of Sales Promotion 49

6 Personal Selling 507 Publicity 52

8 Conclusion 54

38



INTRODUCION

Promotion is a term form Latin, which means “move

from one end to another.” It is a communicative activitywhose main object is to pursue customers to accept ideas, products & service. If the company has super product, best

package and also fair price, the people will not buy its

product until they are not informed. Thus, promotion is

persuasive communication to inform potential customers of

the existence of product to persuade and convince them

these products have want satisfying capabilities.

Promotion is responsible for awakening and

stimulating consumer demand for product. It can create and

stimulate demand capture demand from rivals and maintainsdemand for product even against keen competition. It is true

that nothing can be sold and nothing can make money

without some means of promotion.

So, promotion also plays a vital role in marketing mix,

promotion is the process of marketing mix. Promotion is the

process of marketing communication involving influence.

All the marketing communication must be planned as part

of total system not as independent pieces.

The promotion mix includes four totals they are: -

1. Advertisement

2. Sales promotion

3. Personal selling

4. Publicity

39



All these tools have one dimension in common i.e.

they are all communication a message to customer “Buy

Me”. Promotion is the process of marketing communication

to inform, persuade, remind & influence consumers or usersin favor of the product or service. It is said that in a

competitive market, without promotion nothing can be sold.

In essence, promotion is the spark plug of our

marketing strategy. It is not enough to communicate ideas.

Promotion persuades and convincing the buyer & influenceshis/her behavior to take desired action. Promotional efforts

act as powerful tool of competition providing the cutting

edge of its entire marketing program.

Promotion as an element of marketing mix has three

objectives: -

a) Information

b) Persuasion

c) Reminding

40





Support to personal selling

Advertising can move the prospect nearer to the point

of purchase under favorable atmosphere. Salesman’s job iseasier and simple. Actual closing of sale is thus facilitated

by advertising, selling cost are reduced incidentally. It

should be noted that advertising and salesmanship are really

complementary and in no way competitive tools of promotion.

Brand patronage

In the long run, effect of advertising on brand and

campaign may be of great importance. The advertising

programme can aim at consumer awareness and attitudes.

Buyers may be induced to purchase. If the trial is

satisfactory, consumer may stick with the brand. Thus,

advertising tries to create and retain brand preference and brand loyalty, we can have advertising relevant to each

stage, in the buying progress.

Immediate buying action

Advertising may attempt to obtain immediate buying

action. For, instance, mail order advertising, direct action

retail advertising, price deal offers, last chance offers arespecial advertising persuading prospects and securing

prompt actions. Direct mail is the usual medium for

coupons, samples and other form of direct actionadvertising.

42



Dealer support

National or big firms advertising extensively &

intensively to support dealers & distributors so that they canassure accelerated distribution. Advertising alone can create

mass markets for products, which are intrinsically sound

and can easily the consumers need and desire. Mass

marketing brings about reduction in the cost of productionas well as lot of distribution. Advertising is a powerful

promotion tools to establish & retain brand loyalty and even

stored patronage provides the product itself does not suffer from quality deficiencies; errors in designs or other

handicaps and the retailers do not have deterioration in their

customer service.

Create & Extend demand

“Advertisement is two edged weapon”. Itcreates demand for products and services and it also help to

maintain and extend demand. When new products,

developed products or improved products are launched in

the market, consumers are encouraged through advertising

to buy more of the product. Thus, advertising is the quickest

& most efficient way to reach the market.

Counteract competition

In the present world of service competition, a firm

cannot escape the responsibility of spending on advertising.When a competitor launches a new advertising campaign,

all other firms of the same industry are expected to follow

the same action with new aggressive campaign of their own.

43



ADVERTISING MEDIA

Advertising is said to be a system of information and

the various means through which information is passed onform producer to consumers are termed as advertisingmedia. In a competitive market, a producer or manufacturer

of goods and services has to inform the consumers and

persuade them to buy his products. To serve this purpose,

the service of outside agencies is called for. Obviously“advertising is a tripartite relationship” between the

producers, consumers and the advertising agencies.

The most brilliant and original advertising ideas will be

wasted if they are not presented through the right media. It

is important for achieving the objectives of marketing. “An

advertising media is means or vehicle of delivering a

definite message”. It is a means through which an

advertising message or information is passed on to the prospective customers, readers, viewers, listeners, or

passerby. Example of media is newspapers, magazines,

radio, television, direct mails, posters, films, catalogues etc.

There are different advertising media. They can be

classified into indoor, outdoor, postal, display and special

media. Each division has sub divisions, which are shown, in

the chart.

44



CHARTS SHOWING DIFFERENT ADVERTISING

MEDIAQ

To serve the above-mentioned objective and to obtainthe fruits by delivering all the benefits, advertising is the

only way to reach the customers at minimum cost and

maximum benefits.

The company can advertise the products by taking the

help of its own advertising department or by advertisingagency. The agency’s major role is purchase of media time

and space besides it is directly responsible for development

of all advertising copy and of the commercial.

There are various tools which are used to advertise the

product or service like print media, direct mail, outdoor

media, broadcast media, transit media and other form likedemonstration, exhibition etc. newspaper & magazines at

national levels and they also advertise on T.V. or different

channels ZEE, SONY, DDI, etc. they take the help of

advertising agency.

45

PRESS ADVTG.

Newspaper

Magazines &

Journals

OUTDOOR ADVTG.

Posters

Boards

Electric Display

Sandwich Board

Business Terms

& Trains

Sky Advertising

Others

DIRECT MAIL

Circular

Business Reply

Envelops, cards

Price List

Catalogue

Folders & Booklets

Personal Letters

Others

MISC. ADVTG.

Radio & TV

Cinema & Slides

Fair & Exhibitions

Loud Speakers

Demonstration

Posters & Telegraph

Dept.

Others





SALES PROMOTION

The fast growing Indian market, increasing

competition in market, the maturing and the standardizationof product puts a pressure on the marketer to be innovativein his strategy. In this situation sales promotion helps to

motivate the consumers and indirectly increase the sales.

Sales promotion is an important instrument in

marketing to lubricate the marketing efforts. It is referred to

promotional activities other than personal selling,advertising and publicity, which stimulate the consumer

purchasing & dealer effectiveness. It includes display,

exhibition and showroom demonstration, free samples,

coupons, premiums, contests and various other non-recurring selling efforts. It is a plus ingredient in the

marketing mix; where as advertisement and personal selling

are essential and basic ingredients in the marketing mix. Itacts as a connecting link covering the gap between

advertising and personal selling. It is not merely a luxury or

a fashion. It has been came a necessity.

Usually, sales promotion programmed are primarily

short term in nature and designed to quickly stimulate sales.

It provides incentives to buy. Its objectives are as follows:

47



A good presentation must satisfy 4 main objectives;

1. It must be complete that means it must cover

every point, which is likely to influence the prospective buyer.

2. It must be clear & sound, must not have

misunderstanding or vagueness in the prospects

mind.3. It must remove competing by providing that the

salesman’s product is definitely superior and is

the only product that will satisfy prospects wants.4. It must win confidence of prospects that

salesman’s statements are true and the salesman is

honestly trying to help the prospect.

At the time of using sales promotion company must

establish objectives, select a tool to develop the

programmed to reflect the programmers to implement andcontrol the programmers & evaluate the results. It can

arouse enthusiasm; create a buying mode or spark of

immediate reaction from customers, dealer and the firm’s

salesperson. But only sales promotion is not effective tool,

advertisement or personal selling effectively must support

it.

HLL has available the benefits of sales promotion.They prefer the following mode to promote their sales

S - Smilingly

A - Attentively

L - Loyally

E - Enthusiastically

48



POSITION OF SALES PROMOTION

Sales promotion refers to activities other than personal

salesmanship, advertising and publicity which stimulateconsumers purchasing, dealer effectiveness e.g. Display,exhibition and showroom demonstration, free samples,

coupons, premiums and various other nonrecurring selling

efforts not in the ordinary routine.

It is plus ingredient in the marketing mix whereas

advertising and personal salesmanship is essential & basicingredients in the marketing mix.

In short, sales promotion is a bridge or connecting link

covering the gap between advertising and personal

salesmanship the two wings of promotion.

49

SALES PROMOTION

(BRIDGE)

PERSONAL

SELLING

ADVERTISING



PERSONAL SELLING PROCESS

A salesman is one who practices the profession of

selling. One can learn about selling & salesman just by

thinking about definition of personal selling.

“The process affecting the transfer, the profit too buyer

and seller of goods & predisposed to come back to the seller

for more of the same.”

50

Pre- sale preparation

Prospecting

Pre approach

Approach

Sale presentation

Objections

Close

The follow up



Why personal selling

We know that salesmanship is creative, persuasive and

educative process. It aims at providing services to buyers. Ithelps in winning the buyer’s confidence.

HLL believes that personal selling is necessary

because

In the modern world, it is time to go to customer.

To stay in competition, it is necessary to adopt

personal selling so that more efficient and effectiveservices can be provided to customer as compared to

competitors.

Adopting powerful tool of personal selling can reducecustomer’s unawareness.

The today’s world, market by complex technologies

and multiple choice, both product and sales and service

outlet the customer is increasingly becoming dependent on

the sales person. The customer is waiting an answer to the

question “why yours” and “why not “your competitors

product. The customer wants to the sure that he or she is

getting value for his or her money. Finally he/she wants to

be reassured that whenever service is required, the

salesperson will be there. In other words, the salesperson

that provides competitive product, information to thecustomer, helps the late to apply the product in his or her

situation and also reassure the customers on prices &

services.

Thus, it is a two-way communication. Sales personal

services as the company’s link to the customer and sell

products to many of its customer, which in turn is profitable

to the company.51



PUBLICITY

In literacy sense, publicity means dissemination of

information about a company or a product by personal or non-personal means and it is not directly paid by theorganization. The organization is not identified as the

source of information. Publicity refers to an appeal made to

a mass people by any media. Thus, it constitutes a mass

approach. It involves securing space in all media read

viewed by a company’s for the specific purpose of assisting

in meeting the sales goal.

Publicity can be define as, “the only form of

commercially significant news about a product, an

institution. A service or a person published in space or radiotime that is not paid by the sponsor”.

From the above definition and meaning it is obviousthat ‘Advertisement ‘ is the message published while

“Advertising” is a programmed or it serves as activities

necessary to prepare the message and get it to the intended

market. Another point to be noted is that advertisement is

different from publicity. In the case of advertisement, the

public can identify the advertiser or the sponsor. The

advertiser pays for the advertisement. But in case of makes

publicity the business which is benefited from the publicitymakes no payment for it. Also the public cannot understand

who is behind such publicity.

52



In publicity the major tools are mainly direct publicity

that is to send out description literature to the selected

buyers regularly. Fairs and exhibitions, one of the major

medias now used all over the world is another tool for promoting sale of customer goods as well as industrial

goods and high technology products, machines, plants &

equipment transport & mining equipment thus, publicity

media like posters, pamphlets, firms, radio, T.V., directmailing, demonstration, fairs & exhibitions, meeting,

conferences etc. may be arranged all together or one by one

as the case may be.

HLL publish its product with the help of posters, T.V.,

pamphlets etc.

Thus, marketing communication & promotion decision

are important as they help to move the product from

manufacture and to the consumption point. The relativeimportance of this element in the promotion is dependent in

the nature of proud market, overall marketing strategy and

the product life cycle stage besides buyers’ characteristics.

53



CONCLUSION

In nutshell, promotion mix is simply the procedure inwhich any steps are taken for the purpose of obtaining or increasing sales. Often promotion mix refers to selling

efforts that are designed to support advertising and personal

selling.

As the promotion mix largely affects the profitability o

f the company and is a very crucial procedure the companymust prepare, maintain and develop an effective sales

promotion program in sales promotion of Hindustan Lever

Limited, following points are included: -

1. Size of incentive to offer

2. To decide the duration of offer

3. To determine the budget and4. Finally to implement

54



INDEX

No

.

Name Page no.

1 Introduction 56

2 Distribution Channel 57

3. Physical Distribution 62

4. Organizational Responsibility for

Physical Distribution

68

5 Conclusion 69

55



INTRODUCTION

Place mix is also called distribution mix. In themarketing field through which goods are sent, services are

flow or moved from producers to consumers, a proper

channel of distribution should be selected, so that the

products of the company can easily reach to the target

customers. The decision regarding whether the product is to

be marketed through marketer or retailer or through sole

selling, agents etc. should be taken carefully because

distribution rates are critical in nature as they affect the

reliability of the firm and its producer also the decisionaffect the market share of the firm and its producer also the

decision affect the market share of the firm. Following arethe major topics to be studied.

• Distribution channel

• Physical Distribution

In today’s economy there are many kinds of middlemen like wholesaler, retailer, dealer, facilitators,agents, brokers, sales force etc. Thus channel members

right from the producer up to the customer are interrelated

and thus it becomes a total distribution system. Channel

should be managed efficiently & efficiently & effectively.

Physical distribution looks after physical handling of

the goods assuring maximum customer’s service. It aims at providing delivery of right goods at the right time and at theright place to the right consumers. These activities cover

order processing, handling of goods, packaging,

warehousing, transportation, inventory control & customer

service, Old middlemen performs these functions and they

assure putting the product within an arms length of

customers desire & demand.56



DISTRIBUTION CHANNEL

Most producers work with marketing intermediaries to

bring their product market. The marketing intermediariesmake up a marketing channel also called a trade channels or distribution indicates routes or paths through which goods

& services flow from the producer to the customers and it

includes

• Importance of distribution channel

• Channel levels

• Coverage

Marketing institution considered as channel

components are

All kind of agent middleman

such as wholesalers & retailers.

All kinds of great middleman

such as commission agents, brokers, warehousekeepers & so on.

The route or channel includes manufacturer & the

ultimate consumer as well as intermediaries. These

components are linked in the channel system by one or

more marketing flows such as transfer of title, physical

involvement of merchandise, transmission of marketing

information and the flow of money in the form of payment

of prices and other dues. The channel members right fromthe producer to the consumer are interrelated and we have

the total distribution system, which is responsible for

distribution of goods and services in order to satisfy in order

to satisfy consumer needs or desires.

57



A.Importance of distribution channel

Why would a producer delegate some of the selling job

to the intermediaries. The delegation means relinquishingsome control over how and to whom the products are sold.

The producers appear to be placing the firms dissolving in

the hands of intermediaries. But producers do get several

advantages by intermediaries.

Hindustan Lever Limited uses intermediaries to

increase their efficiency in the marketing goods widelyavailable & accessible to target market through their

contacts, experience, specification & sale of operation.

Intermediaries usually offer the firm more than what it can

achieve on its own.

Making the product available to the customer is the

most convenience way in a function which only amiddleman can perform. Imagine a situation where no

middlemen exist, the cost of obtaining the product will be

very high. Further, there is also inconvenience which will

have to go through just obtain our requirement directly from

a manufacturer.

58



B. Channel Levels

One of the important decisions that the firms have to

often take is the no. of channel system crates different levelof sales and costs. Once firm choose a marketing channel, it

must usually remain with it for a substantial period. The

chosen channel will significantly affect in the marketing

mix. In today’s economy most producers don’t sell their goods directly to the final users. Between them there are

some intermediaries who perform a variety of functions and

bears a variety of risks profits. These intermediaries makeup the marketing channel. Hindustan Lever Limited has 2

major channels of distribution.

1. C & F.A. System (i.e. Clearing and Forwarding

Agent) system

2. Wholesaler System

59



1) C & F.A. System

2). WHOLESALER SYSTEM

60

FACTORY

DEPOT (C & FA)

STOCKIST (RS) REDISTRIBUTION STOKIST

RETAILERS

CUSTOMERS

FACTORY

DEPOT (C & FA)

(RS) REDISTRIBUTION STOCRIST

RETAILERS

CUSTOMERS



C.coverage

The term coverage means the spread of the area of

distribution of the company’s product. The coverage of themarket depends upon the distribution policy of the

company. The company initially wishes to cover smaller

area and it may wish to expand its horizons. The other

companies may think different as per their strategies.

HLL has spread across its operations in majority parts

of India including more than 3500 towns & 70000 rural

outlets.

D.indirect coverage

As said earlier, the company gives equal importance to

distribution in rural area also over the past few decades.

HLL has supplied to its rural customers directly as well as

indirectly – a wide range of product. The company believes

that in spite of the high rate of urban population growth, the

rural market offers opportunities, which are vast and are

relatively untapped.

Unlike in urban areas, there is a indirect distribution in

rural areas.

61



PHYSICAL DISTRIBUTION

The marketing process is not complete simply by

creating super product and by creating a customer byaggressive salesmanship. Delivering the product to theconsumers at the right time and at the right place is an

equally important function of marketing this vital function

is called physical distribution. In simple language physical

distribution means “the process of delivering the product

to the user or consumers. Promptly, safely and in time.

Physical distribution involves mgt. pf flows of rawmaterials and finished products from the point of origin to

the point of consumption to meet the consumer’s need at

profit.

The major components of physical distribution are.

Order processing

Warehousing

Inventory management

Transportation

Importance of physical distribution

The ingredient of marketing mix, such as product, price and promotion constitute the step of marketing while physical distribution is considered half of the marketing.

62





Order serving time can act as a competitive advantage

in the marketing mix. Customer is primarily interested in

prompt, punctual, safe & reliable delivery of service. Order

processing affects the customer service level in two ways.

1. It affects recording of time

2. It affects the consistency or uniformity of

delivery timeYour customer is interested much in the consistency of

delivery time i.e. assured delivery within a fixed period.

Buyers tend to shift their order to suppliers who can providesuperior order processing service. The firm has a standard

procedure for handling order, granting of credit invoicing

and collection of accounts. If there is delay in the execution

of the order or errors commission in the dispatch of goods it

would result into customer dissatisfaction. It will lose the

goodwill of the company.

B. Warehousing

The word storage means holding the stock of

goods for relatively longer period as the goods are not

immediately in demand. Warehousing involves more than

storage. Warehousing perform many of the usual function

of wholesalers, e.g. breaking bulk, dispatch of smaller

consignment to retailers, holding the stock of retailers,equality the goods flow to retailers, proving market

intelligence and many other more changing service of

manufacturer. A full service warehousing is called adistribution center.

64





C.Inventory management

Marketing mgt. is directly interested in effective

management and control of inventory, as inventory mgt. is a powerful tool in the process of creation and satisfaction of

customer demand. Inventories are reservoirs of goods held

in anticipation of sales. Inventories are the link; inter

connecting the customer’s order and company’s productionactivity. In fact the entire physical distribution mgt. rotates

around the inventory mgt.

Inventory mgt. is the heart of the game of physical

distribution. Managerial decisions regarding

1. size

2. location

3. Significance is to taken.

In physical distribution system, inventory is

temporary in the form of raw material in process and

finished goods. On an avg. 30% of the total assets of a firm

are locked up in inventory.

According to the sales manager of HLL the

company maintains 1½ months of stock (made up and rawmaterials) to look after problems of storage and ordering at

factory, similarly stockiest and C & F.A. are required to

keep similar level of stocks.

66



Inventories are kept to meet market demands

promptly. The inventory costs factors are as follows:

1. cost of marketing goods

2. Cost of holding goods i.e. warehouse expenses,interest etc.

In short, the entire physical distribution mgt. rotates

around the “inventory mgt. inventory mgt. aims at the

following three objectives.

I. Never run out of anything.

II. Never build up a very large inventory.III. Never send out too many small orders for more.

D. Transportation

It is one of the important tools of the distribution

system. To send the product at the right place, at right time

and at the right price, the marketers should be aware of their company’s transport decision. The companies can pipelines.

At the time of taking decisions about it critical such as

speed, frequency, tractability & cist should be considered.

Thus, transport is crux of the problems of physical

distribution.

In HLL the transportation of raw materials to factories

and finished goods to C & F.A. are duties assigned to the

transport department of the company. The “lease out modelwith big transport companies for services after price

negotiations.

Similarly transportation of goods to R.S. in the

responsibilities of C & F.A. who hires trucks and then

transports.

67



ORGANISATIONAL RESPONSIBILITIES FORPHYSICAL DISTRIBUTION

In HLL different persons have shared theresponsibilities of physical distribution.

Company salesmen place R.S.’s order at C & F.A.

and oversee the equitable distribution of stocks of

the retail trade from R.S.

The deport managers oversee the equitable

distribution from C & F.A. to R.S. The areas manage places indents of stocks required

by C & F.A. at the factories and follow up.

Thus the location of physical distribution department

with the company is a secondary concern. The important

thing is that the company co-ordinates its physical

distribution & marketing activities in order to create highcustomer satisfaction at reasonable cost.

68



CONCLUSION

Thus place mix is last but not the least P of the

marketing mix. It is a marketing term to describe the broadrange of activities concerned with efficient movement of theultimate consumer.

The company should carefully plan and check out

the best place mix after considering the following factors.

a. Company situation b. Product characteristics

c. Market features &

d. Economic environment.

69



INDEX

No. Name Page no.

1 Slogans of product 71

2 Celebrities 72

3. Corporate practices 73

4. Various site of hill 74

5 What’s new? 75

70



SLOGANS OF PRODUCTS

Pears soap : “ the pyre glycerin soap with tender touch’.Lux : “the first choice of filmstars – lux aur kya”.

lux jo chahe mujhme star jagaye.

Lifebuoy : ‘ lifebuoy hai jahan, tandurasti hai wahan’Liril : “taajgi main tun –liril rainfresh”Jai : “pehla pyar laye jaivan main bahar”

Breeze: “gulab ki pankhdiyon se Bana”.Hamam : “nature way of skin protection-

Hamam”Dove : “Dove is not a soap it contains ¼ th

moisturizing cream”Ponds

Dream flower : “floral extracts”- complete beauty care.

Pond’s magic : “12 hour frangrance – time releaseeffect.”Rexona : “har pal saath nibhaye”.

71



CELEBRITIES

Lux : aishwarya rai & rani mukherjeeLiril : priety zinta

Lux sampoo: tabu

Jai lime : amisha patelWheel : sakshi tanwar(T.V. star)Breeze: hiten tejwani & gauri pradhan (T.V. stars)

Breeze (scent): rima lagoo & supriya(tu – tu main –main jodi)

72



CORPORATE PRACTICES

Following are the major corporate practices whichHLL follows:

a) Safety & healthy policy

b) Quality policy

c) Environmental policy

d) Code of business policy.

73



VARIOUS SITES OF HLL

On internet & e-commerce field also, HLL is not for away. Following are the various sites of it

www.Hll.com.

www.unilever.Com

www.castorword.com

www.pondsindia.com

www.avinceIndia.com www.sunsilknaturals.com

www.surfexcelhaina.com

74

http://www.castorword.com/

http://www.pondsindia.com/

http://www.avinceindia.com/

http://www.sunsilknaturals.com/

http://www.surfexcelhaina.com/

http://www.castorword.com/

http://www.pondsindia.com/

http://www.avinceindia.com/

http://www.sunsilknaturals.com/

http://www.surfexcelhaina.com/



What’s new ?

New product arrival Following products are recently introduced by

HLL

• Pears mudbath

• Pears sleepydaughter

• Wheel active

• Wheel active bar • Wheel with power capsules

• Knor annapurna salt

• Ponds sandal talc

• Ponds dream flower magic

• Ponds light N fresh

New project

HLL is launching new products about women in

project shakti. This project is HLL’s initiative to usher

prosperity & up lift the standard of living in rural India.

HLL also has an attachment with Variance Company,

which deals with cosmetic and personal care products, &also which has a wide marketing and distribution network.

75



Conclusion

We may conclude that in its entire life time, HLL has been an organization of attracting, moldings and holding thefinest talent in this country to shape a corporation that

stands today for the highest standard of quality, innovation

and the services to the customer and the country.

In the report presented, an attempt has been made to

focus on the marketing mix side of HLL through its R.S.Balak sales agency at Rajkot.

It was an excellent opportunity and I am glad that I

was provided an opportunity to make a project repot onsuch a famous company.

Las but not least, I cannot forget the golden wordsushered by one of the previous chairmen of HLL.

BALAK SALES AGENCY MBA Porject Report Prince Dudhatra

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