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SALES AND DISTRIBUTION OF BRANDED VANASPATI

ABSTRACT

The project has been undertaken to study the sales and distribution of

branded Vanaspati and Launch of new product of Hindustan Lever's

Company. The project was assigned for a particular town to be covered

along with salesman.

The information listed in the report is gathered from the market and the

facts are true to my knowledge.

The report has si parts. The first part gives a brief outline of the company

distribution system. !t also scope describes the objective" need and scope

of the project. The second part consist of project eecution details.

The third part gives a details of research methodology adopted and the

fourth part findings and analysis .

The fifth part consist of recommendations and suggestions. The last part

consists of anneures.

EMPI Business School

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21.121.1 UNILEVER AS THE PARENT COMPANUNILEVER AS THE PARENT COMPAN

# fortune $%% transnational" &nilever sells over %%% foods ( home care (

personal care brands through )%% subsidiary companies in ** !ndividual

consumer chooses &nilever foods and personal care brands countries

worldwide with products on sale in a further to" $% million times a day.

&nilever is number one consumer goods Company in the world in market

competitiveness. !n +)% &nilever created through the merger of lever

brothers in &.,. and -argarine &nie" etherlands.

1.21.2 HINDUSTAN LEVER LIMITED!S PROFILEHINDUSTAN LEVER LIMITED!S PROFILE

H.L.L. is !ndia/s Largest fast moving consumer goods company" with a

leadership in home ( personal care products " food ( beverages and

specialty in chemicals with a turnover of 012.%3 Crores.

H.L.L. was established in +$1 through the merge of Hindustan Vanaspati

-anufacturing Company" Lever 4rother !ndia Ltd. ( &nited Traders Ltd.

5ome of its 4rands are nearly %% years old.

H.L.L. has entered virtually every arena in fast moving consumer goods

market through organi6ed growth" diversification" merges ( ac7uisitions.

Today the company markets more than % brands in +$% packs .The vision

that inspires H.L.L./5 )1"%%% employees" including about )%% managers is

to "Mee# e$e%&'(& nee' o) #he *eo*le e$e%&+he%e.,

H.L.L. 8ivisions operate in three major domestic and international

businesses.


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. Home Care ( 9ersonal 9roducts.

0. :oods ( 4everages.

). Chemicals

Through these H.L.L. has achieved a leaders position in each of these

4usiness 5egments.

. H.L.L. has achieved market leadership in soaps ( detergents as well ashair and skin care products

0. H.L.L. is also a market leader in tea ( processed coffee.

). H.L.L. has also achieved great heights in chemical business segment.

The organi6ation stands the test of time" whose bedrock is the imagination

of its people.

!magination is nothing but the power of mind to think of something as

possible to achieve in the future. !t is the mental faculty of inspired thinking

to create tomorrow/s reality. 9roject -illennium is that initiative to create

Hindustan Liver Ltd. for a new era with the collective imagination of their

people. !n the course of last month employees across the company

facilitated by the 9roject -illennium team; have generated ideas on the four

focus areas was launched through

imports. &niliver sets up its first !ndian subsidiary" Hindustan Vanaspati

manufacturing company in +) for local manufacturer of vanaspati.

The famous brand 8alda came in the market in +)3. #fter 8esi Dhee this

was the first vanaspati which was introduced in the market. #t that time

people use to have only desi ghee no one uses vanapati" so it took few

year/s to gain popularity amongst consumers.


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Doing was tough with this product but with it/s uni7ue features and first of

its kind with low cost" it finally established in the market . Consumers liked

the taste of this product very much. 5lowly " the competitors started

entering in this vanaspati market "so the market share of dalda was now

divided between other. 4ut still even having competition with other brands "

dalda has covered largest market share $%E nearly.

-ajor competitors of 8#L8# are? @&CH!" the product of -B8!

CB-9#G. D#D#" the product of #-@!T !8&5T@!5. @#TH" the

product of !TC.

1.61.6 PRESENT PRFILE OF VANASPATIPRESENT PRFILE OF VANASPATI

ow the immediate competition of whole vanaspati market is with refined

oil" it scores more on health front as it contains less amount off fat as

compared to vanaspati.

Consumers " today also like the taste of vanaspati but being more health

consious" more and more people have switched over to refined oil. ,eeping

this in mind company came up with new version of dalda vanaspati that is

A 8#L8# #CT!V/.

#fter having test marketing it with the name of 8#L8# :L L!DHT in

uttar pradesh. #fter test marketing certain draw back came up

@elated to name.

0 @elated to packaging.


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5o" company changed the name and packing and improved the 7uality. 5o"

after removing these draw backs company came up with IA 8#L8#

#CT!VJ.

1.71.7 FUTURE PLANSFUTURE PLANS

#t present dalda vanaspati comes in number of packing si6e litre" 0 litre "$

litre " $ litres" %%ml" 0%%ml" $%%ml. 4ut with its new product 8#L8#

#CT!V which is presently coming in litre pack only" company will

increase the range only after the acceptance of the product.

1.81.8 DISTRIBUTION OF COOIN- OILS 9 FATSDISTRIBUTION OF COOIN- OILS 9 FATS

9roducts from the factories come direct to the carrying and forward agent in

Dha6iabad. The carrying and forward agent stocks the product and

distributes it further to the stockiest. Dha6iabad has only one stockiest who

covers whole of Dha6iabad market.

5tockiest are independent middlemen who earn ) to 2E margins on the

sales they make. Their investment include a godown" a unit =usually a three

wheeler> for transportation" two to three salesman according to the need and

minimum inventory level they are asked to maintain by the company. The

distribution is by the company as they are well suited for performing

distribution tasks.

The tasks they perform for the manufacturers are have a big market share

=when clubed together>. The vanaspati fall under this heads are mostly

local player's and comparatives" less cheaper then the national brands.

8alda" being the market leader and the first ever launched vanspati in the

!ndian market has the share of only 1E.

@easons for only 1E market share of 8alda.

. ow consumer's have become more health conscious so most of

people's have shifted to refined oil.

0. 8alda is loosing its identify now" consumer's believe that the 7uality has

gone very low from" last few months.

). 9rofit margin for @etailer's is relatively less as compared to other

branded vanaspati" and so they push more off other brands on which

they earn more profits.

2. This is product which runs without any promotional activity. ,eeping"

this in mind other competitive brands runs with scheme for retailer's like

$O? off per case for cash payment and on the sale of 2% cases retailer

will get few cases free.

The story is 7uite different when we study sale of other packs si6e of

vanaspati.


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DETAILS OF OTHER PACS FOR THE MONTH OF

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especially $%%ml and even if they think of keeping O0 litre pack they prefer

other brands since their defined 7uantity of selling dalda is met by litre

pack and so they push more of $%%ml pack of other brands in which they

have higher margin.

The same reason is for 0 litre packs where 8alda ends up )rd.

!n $ litre packs the price of 8alda is relatively high as compared to other

brands = difference of %O?> but still as it is consumed mostly by families

where number of peoples are more the sale of $litre pack is satisfactory.

The parameter's which effects the buying of vanaspati are liked according to

the importance given by consumer's.

. 9rice

0. 4rand

). Puality

2. Taste

-ost of the consumers who consume vanaspati are the one's who are very

price sensitive. The price of 8alda is slightly higher and that is negligible.

!t sells one or two rupees more than the other brands in the market. 4rand

!mage of 8alda is good" consumers who are consuming 8alda vanaspati

wants only 8alda" they don/t want to compromise it with other brands" but

if we talk about 7uality it was found that since past few months 7uality of

8alda has really gone down as compared to other brands. 5o" peoples who

were consuming only 8alda earlier were forced to shift to other brands.

There were complaints regarding the 7uality. #s 8alda is the first brand so

company should really look to it that its image does not spoil.


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Ae can see from the earlier graph that 8alda is the market leader in litre

pack and in other packs it has a noticeable presence. !t is only in the case of

0 litre pack and some where it ends up last player in the game.

-arketer's ( @etailers concentrate more on the form which is widely use

and brings in higher profit =in the case of vanaspati it is litre pack>"

therefore they do not flat much of other form's that are very near to the

leader" because that can have an adverse effect on the form that is a major

revenue earner. This is one of the most important reason that $%%ml pack

of 8alda is not so popular and company is not aggressively trying to

promote it because in tryhing to doing so the superiority of litre pack

might suffer a set back.


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PRESENT TON UNIT PRICES OF BRANDED VANASPATI.

. 8#L8# 0 $%%-L 2.*% L!T@ 0*.$%

$ L!T@ 3%.$1

% L!T@ ))$.30

0. D#D# 0 $%%-L ).3$

L!T@ 03.%%

0 L!T@ 12.%%

$ L!T@ $$.2%

% L!T@ 03$.%%

). @#TH 0 $%%-L 2.%%

L!T@ 0*.%%

0 L!T@ 1).%%

$ L!T@ 10.%%

2. @&CH! 0 $%%-L 2.$%

L!T@ 03.%%

0 L!T@ 1).%%

$ L!T@ $$.%%

% L!T@ 0*%.%%

#s we can see that in the prices of 0 litre there is a gap of more than $ to 1O?

and in the prices of $litre" * to $O?. 5o company should not change its

price of litre pack but with other packs" they can keep it slightly near to the

other competitive brands.


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PAST RECORD SALE OF DALDA

=Bne litre pack only>

UANTIT SOLD THROU-HN OTHER PACS

5@@?l 2 l#%e 5 l#%e 1@ l#%e


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:rom the above graphs" we can see that there was sudden rise in the sales

of Vanaspati in the moth of Fune" the reason for this sudden jump was the

information that import duties on crude oil will be increased this lead to

@apid buying by the retailers because they wanted to in cash this

opportunity. The revised import duty which was talked about didn't come

into being and there in the with of Fuly situation normalised.

There has been a considerable changes in the outlook of the retailers

regarding the company's products and services.

5urvey was done keeping in mind three parameters i.e.

9eople

9roduct delivery and basic services

Brgani6ations

Peo*le

To talk about the skills" behaviour and attitude of the people especially

salesmen and stockists who service the retailers and understand their

problems with a flair to solve it.

P%o'uc# 'eli$e%& (n' =(sic se%$ice

To talk about whether the product is delivered in good condition"

convenient time" eact 7uantity" right place and the decisional power of

salesman.

O%/(niG(#ions

!n the end" to talk about the demand of the product whether the company

ehibits marketing leadership.


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FINDIN-S3IFINDIN-S3I


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FINDIN-S3IIFINDIN-S3II


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COMMENDS AND SU--ESTIONS OF 8@ RESPONDENTSCOMMENDS AND SU--ESTIONS OF 8@ RESPONDENTS

1. 4@ Ou#le#s0 :eel that the salesmen should be given more authority an

replacements" be able to take 7uick decisions and authority to decide the

display scheme.

2. 55 Ou#le#s0 :eel that the under cutting issue should be stopped or

reduced creating an unfair practice in the market.

. 6@ Ou#le#s0 :eel that the margin should increase and incentives should

be provided on more sales.

4. 2@ Ou#le#s0 :eel that E cash discount should be compulsory.

5. 5 Ou#le#s0 :eel that the replacements for the airleakOtronOother?

packets should be instant and effective.

6. 1@ Ou#le#s0 :eel that the plans should be implemented with total co?

operation from senior people in the field.

7. 5 Ou#le#s0 Company should stop manufacturing its Vansapati from

outside and stant its own t manufacturing again.

8. )$ outlets< were for praises for the company for its.

Dood ads

ffective in packing

@eady to solve problems

Company is concerned for the retailers


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4eneficial schemes for the retailers.

:. 15 Ou#le#s0 :eel that 7uality should be improved of Vanaspati and

company should keep the prices of its other packs = 0%%ml" $%%ml" 0

litre" $ litre" % litre> near to the competitors price.

Su??e%&

:rom a certain outlets the response was lukewarm while" it was very

forthcoming from majority of outlets with a view that the details especially

comments and suggestions will be redressed in the company and will be

looked into keeping in mind the benefits of the company and the retailers

and able to service the customers more effectively.


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4.4. RDRD OBe# no. o) ou#le# M(%>e# no. o) ou#le#

ehru nagar %3 5ihanigate %

5hastri nagar 0) ,iranamandi %

,avi nagar %* Dandhinagar 0

Tulabnagar %0

Dhanta ghar 2 Tamte ramroad %$

Durumandi %1

Aright gang 02 8asnagate 0

5abjimandi %1 Fatwara %2-aliwada

ai basti %1 5abjimandi %$

Chopla %

8elhigate %

The problems and objections of the retailers were looked into" and if

possible" were solved at the outlet itself in consultation with the concerenedsales officer'/ through the telephone.


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-ajor demand of the retailerswere

. 8ue to the display scheme" there was the cut price practice which

prevailed in the market" the product was sold at much lower rate"

then the rate at which company wants it to trade.

0. 5elling of the product will be more tough for the retailers when

they will have to sell it at its original [email protected] of )+O?.

0. Ac#i$i#& 0 Television advertisement as we know" peoples rush forthings which is once shown on television. Television is the latest

communication median" especially when it is to cover a large population.

Company had planned for aggressive advertisement for three months

atleast" on various channels ? Qee television" 5oni" 8oordarshan

advertisement were shown between cricket matches also. :ew movies

were sponsored by 8alda #ctiv on 5ma channel.

8ue to the advertisements shown on various channel" customers have

started recogni6ing the product. #dvertisement had created awareness

among customers.

). Ac#i$i#& 0 #fter a successful completion of display scheme company

had started another activity. This activity was for customers. Company

had started redemption coupon's in news paper 9unjab ,esari =5ee

#nneure 1>.

#s far as the success of these coupons is concerned" it did not go well as

epected by the company. @etailers had a very few coupons with them

appro %% in the whole market.


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5.15.1 RECOMMENDATIONS 9 SU--ESTIONSRECOMMENDATIONS 9 SU--ESTIONS

S(les M(n

5hould be well versed with the pay scale structure.

!ncentive slabs should be formulated to endure them for more sales.

5ales man should be more friendly and solve the problems from both

the retailers and company's point of view.

5hould be motivated to open new outlets" keeping in mind the incentives

being provided on it.

5ales man should clear the schemes as soon as possible.

5ale man should be energetic we patients 7uick decision maker

problems solver and ready to do any kind of work related to his job

profile.

S#oc>is#s

To maintain more friendly relationship with the sales man and retailers.

&niversal launch of scheme along with the arrangement with the

company.

5hould have enough of display material for the outlets before launching

a new product.

S(les o))ice%

To attend to complaints Oproblems being recorded by sales man as soon

as possible.


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To maintain cordial relationship with the sales man.

#ll key accounts should be attended by sales officer and regular visit

should be made every week. He should also appreciate them for their

good work.

@andom Osurprise checks to be made at the outlets to access the

working of sales man and whether the schemes are duty fully given to

the retailers irrespective of the category of the outlets.

O%/(niG(#ions

Clear set ? objectives for the replacement of old stock causing no in

convenience to the retailers and sales man.

Various schemes being offered to the retailers should be immediately

be made available to them.

5pecial badge or dress should be provided to sales man for

identification.

!ncentive package and salary package should be simplify .

#n effective monopoly structure should be formulated for the retailers

who are sincerely and effectively promoting the product range" with

total authority delegated to the sales officer concerned.

5alary should be directly reimbursed by the company to the sales man.

To inc%e(se #he co$e%(/e o) ou#le#s.


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There should be atleast to @edistribution stockist because the work

load on @.5. is too high to manage is the only stockist for both Tea and

foods.

To increase the number of beats

The outlet which have stopped purchasing from redistribution stockists

due to any kind of dispute between stockists and the retailer should be

solved by the timely action of sales officer.

The company should come out with suggestion Letter's that should be

given on a 7uarterly basis to all the retailer's and stockist" so that the

sales officer handling a particular belt is aware of the problems" grodges"

grievances of the retailers. This will help him in taking timely action

which will save the matter's from aggravating further.

!t should try and reduced the price gap between the wholesaler rates and

stockists rates.

To reduce under cutting atmosphere prevailing in the market.

P%o?o#ion(l (c#i$i#ies )o% Ne+ D(l'( Ac#i$

The cut price system which prevailing in the market due to the display

scheme amount which resulted in wrong positioning in the mind of

consumers" as far as the prices concerned to an etent it has been

detrimental to the eact positioning of the product as the company

wanted it to be pitched against refined oil but in some outlets it was

sold at price lower than @s. )$. 5o it was thought as immediate

competitor of eisting vanaspati in the market. To reposition it"


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company should create a mental awareness campaign that elucidate

the features that are in the 8alda #ctiv that places it against refined oil.

They should also highlight the features that the new product is superior

than market than the already eisting vanaspati in the market and

because of this it is priced slightly higher" this can be done through

advertisements" attaching or printing relevant literature on the pack.

The company also introduced the coupon scheme but the response were

not upto the mark. They can again relaunch this scheme with much more

Vigour complementing the advertising campaign and this time coupon

should also include the distinctive features of 8alda #ctiv.

5ome gift item can be given to promote sales.

Three wheeler vans should be more colourful" displaying new 8alda

#ctiv.


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5#h5#hANNEUREANNEURE

FORMAT FOR OF TAE OF DALD ACTIVE DISPLA

CHECIN-

N(?e o)

%e#(ile%s

A%e( No. o)

c(ses

No. sol' P%ice J o)

#(>e

Dis*l(& Re?(%>


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CHAPTER- 1

INTRODUCTION


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CHAPTER- 2

PROJECTEXECUTION


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CHAPTER- 3

RESEARCH

METHODOLOGY


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CHAPTER- 4

FINDING &

ANALYSIS


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CHAPTER- 5

CONCLUSION &

RECOMMENDATIONS


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CHAPTER- 6

APPENDIX


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TABLE OF CONTENTSTABLE OF CONTENTS

CHAPTERS TOPICS

ACNOLED-EMENT

ABSTRACT

CHAPTER31 INTRODUCTION. &nilever as a 9arent Company

.0 Hindustan Lever Ltd. 9rofile

.) :rom were the Company 5tarted

.2 Aere the company has reached today

.$ 4ackground of Vanaspati

.1 9resent 9rofile

.3 :uture 9lans

.* 8istribution of Cooking Bils and :ats

.+ -erchandising

Table :low of 8istribution of Doods

.% Bbjective of the 9roject

. eed

.0 5cope

CHAPTER32 PRO

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CHAPTER3 RESEARCH METHODOLO-

). @esearch 8esign

).0 stBbjective

).) 0ndBbjective

).2 )rdBbjective

).$ 2thBbjective

).1 $thBbjective

).3

CHAPTER34 FINDIN-S AND ANALSIS

2. stBbjective :indings

2.0 0ndBbjective :indings

2.) )rdBbjective :indings

2.2 2th Bbjective :indings

2.$ $th Bbjective :indings

CHAPTER35 RECOMMENDATION AND SU--ESTIONS

$. @ecommendations

CHAPTER36 APPENDI

#nneure? :or 8etails of Butlets

#nneure?0 Puestionnaire

#nneure?) List of outlets are as not Covering

#nneure?2 Launch plan for ew 9roduct

#nneure?$ :ormat for oftake of new product anddisplay checking

#nneure?1 9.B.9 and 8anglers


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TO HOM IT MA CONCERNTO HOM IT MA CONCERN

This is to be certify that NITIN PATHA a student of 9D84- =+++?

0%%%>" -9! 4usiness 5chool has completed a bonafied and original

research project entitled KL(unch o) Ne+ P%o;ec# (n' S(les (n'

Dis#%i=u#ion o) B%(n'e' V(n(s*(#i i#h Res*ec# To D(l'( V(n(s*(#iK

under my guidance and supervision.

This project work is done for the partial fulfillment of the 9D84- course.

The student has remained in constant touch with me and has completed the

project as per re7uirement of the project.

FACTUL -UIDE

P%o). AMIT

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A

SUMMER PRO

SUBMITTED BY:

NITIN PATHA

P-DBM MARETIN-

+++?0%%

-9! 4&5!55 5CHBBLNE DELHI3@


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