Sales and Distribution of Branded Vanaspati

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 e ecution 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 anne ures.
EMPI Business School
21.1 UNILEVER 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.
1.2
HINDUSTAN 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 01'2.%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. '. 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 as hair 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<
-%o+#h <-anaging a cascading hori6on of present ( future business and continuously capturing and nutring possible opportunity; T(len# <#ttracting "developing "relating ( e citing the best people. .no+le'/e <5upporting growth through better sharing what employees already know ( ac7uiring what they do not" and Cos#s 0ensuring total operational efficiency so that the company continues to generate cash to fund growth.
1.1 FROM 2HERE THE COMPAN
STARTED
'*** Lever soap"'5unlight'" introduced in !ndia through !mports
'+'* Vanaspati =hydrogenated edible fat> launched through imports.
'+)% &nilever created through -argarine &nie" .etherlands.
the merger of Lever 4rothers" &," and
'+)'
&nilever
registers
company
in
!ndia??Hindustan
Vanaspati
-anufacturing Company =HV->??for local manufacture of Vanaspati.
'+)) Lever 4rothers !ndia Limited =L4!L> incorporated in !ndia to manufacture 5oaps.
'+)$ &nited Traders Limited =&TL> incorporated in !ndia to market 9ersonal 9roducts.
'+$1 The three subsidiaries" HV-" L4!L and &TL" merge to form Hindustan Lever Ltd.=HLL>
'+$* Hindustan Lever @esearch Centre starts functioning .
'+3+ Chemicals comple commissioned at Haldia" Aest 4engal.
'++) HLL's largest competitor" Tata Bil -ills Company =TB-CB>" merges with the company. ? Crstwhile 4rooke 4ond !ndia ac7uires ,issan 4usiness from the &4 Droup and 8ollops icecream business from Cadbury ? 8oom 8ooma and Tea Cstates 9lantation divisions merged with 4rooke 4ond. 3 4rooke 4ond and erstwhile Lipton !ndia merge to form 4rooke 4ond Lipton !ndia Limited
'++2 HLL and &5?based ,imberley?Clark Corporation form $%<$% joint venture" ,imberley?Clark Lever Ltd.
'++$ HLL and !ndian cosmetics major" Lakme LT8" form $%<$% joint venture" Lakme Lever Ltd. HLL ac7uires ,wality and -ilkfood '%%E brand names and distribution assets. HLL and &5?based 5.C. Fohnson ( 5on !nc. form $%<$%joint venture" Lever Fohnson =Consumer 9roducts> 9vt. Ltd. HLL 5oaps and 8etergent sales cross one million tonnes.
'++1 HLL and associate company" 4rooke 4ond Lipton !ndia Limited" !ndia's biggest in :ood and 4everages" merge.
'++3 HLL and Dist 4rocades 4V form $%<$% joint venture" Lever Dist 4rocades" to market 'Dold 5eal :ermipan !nstant Geast' for baking industry.
'++* Droup company" 9ond's !ndia Ltd" merges with HLL. HLLac7uires Lakme brand" factories and Lakme Ltd's $%E e7uity in Lakme Lever Ltd. HLL ac7uires manufacturing rights of ,wality icecream. #ppellate #uthority of Dovernment of !ndia absolves HLL of insider trading charges" made by 5C4! in '++3" in the 44L!L merger.
0%%% HLL ac7uires -odern :oods" the first public sector company to be divested by the Dovernment of !ndia
1.4
2HERE
THE
COMPAN
HAS
REACHED
TODA
HLL has entered virtually every arena in thefast moving consumer goods market through organic growth" diversification" mergers and ac7uisitions. Today" the company markets more than ''% brands" in +$% packs. The products are sold in one million retail outlets" directly covering !ndia/s entire urban population and about $%"%%% villages. # satellite ?based communication system supports supply chain management. HLL has achieved market leadership in soaps and detergents as well as hair and skin care products and is the second largest manufacturer of dental care products. HLL is also market leader in tea" processed coffee" ice cream and fro6en desserts" tomato?based products" jams and s7uashes. HLL/s gross turnover in '++3 was @s *).2 billion and the 9rofit #fter Ta was @s. $.* billion. The contribution to the e che7uer is @s '1.2% billion..The breakthroughs at the Hindustan Lever @esearch Centre have
contributed greatly to the company's success. The @esearch Centre" which is the largest in !ndia/s private sector" gives HLL an edge over competitors by coming out with innovative products and processes" many of which are patented. HLL has over )1"%%% employees" and has created 0 lakh indirect jobs. !ts operations are spread across 3% locations in !ndia. There are over $% factories" of which 0* are in backward areas. The operations involve 0%%% suppliers and aassociates and 3%%% stockists and agents. !n addition to gaining leadership in !ndian markets" HLL has emerged as a major C porter. !t is a 5uper 5tar Trading House" an honour that only seven !ndian companies enjoy. Aith a portfolio of soaps" detergents" tea" tomato? based products" cosmetics" agri?products" leather products and marine products" HLL's e ports turnover in the year '+++ was @s '*%) crores.
1.5
BAC.-ROUND OF VANASPATI
!n '+'* Vanaspati =Hydrogenated edible fats> 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.
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 $%E nearly. -ajor competitors of 8#L8# are? @&CH!" the product of -B8! CB-9#.G. D#D#." the product of #-@!T !.8&5T@!C5. @#TH" the product of !TC.
1.6
PRESENT PRFILE OF VANASPATI
.ow the immediate competition of whole vanaspati market is with refined oil" it scores more on health front as it contains less amount off fat as compared to vanaspati. Consumers " today also like the taste of vanaspati but being more health consious" more and more people have switched over to refined oil. ,eeping this in mind company came up with new version of dalda vanaspati that is H.CA 8#L8# #CT!V/. #fter having test marketing it with the name of 8#L8# :CCL L!DHT in uttar pradesh. #fter test marketing certain draw back came up ' 0 @elated to name. @elated to packaging.
5o" company changed the name and packing and improved the 7uality. 5o" after removing these draw backs company came up with I.CA 8#L8# #CT!VCJ.
1.7
FUTURE PLANS
#t present dalda vanaspati comes in number of packing si6e 'litre" 0 litre "$ litre " '$ litres" '%%ml" 0%%ml" $%%ml. 4ut with its new product 8#L8# #CT!VC which is presently coming in 'litre pack only" company will increase the range only after the acceptance of the product.
1.8
DISTRIBUTION OF COO.IN- 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 < '. 9roviding for market coverage. 0. -aking sales contact.
). Holding inventory. 2. 9rocessing orders. $. Dathering market information. 1. Bffering customer support. :or their customers; i.e retailer" wholesalers" distributors are e7ually well suited for performing the following tasks efficiently such as < '. #ssuming product availability. 0. Bffering assortment convenience. ). 4reaking bulk. 2. C tending credits and financial assistance. $. 9roviding customer services. The stockiest for providing these facilities and services to the retailer" employ two or three sales person. :or every day in a week they have a fi ed route or market to cover. This is called a beat which usually consist of )$? 2% outlets. This implies salesman covers about 02%=1 K 2%> outlets a week.
1.:
MERCHANDISIN-
!n today competitive environment with the products coming in the available space in the outlets is shrinking day by day. Hence salesman needs to have e cellent relations with the retailer so as to place the product at good location and in such a manner that it includes customer to buy the product. -erchandising is a silent salesman. Dood merchandising is to insure availability of the products.
FLO2 OF DISTRIBUTION OF -OODS
F(c#o%& (# -(;%(ul(
F(c#o%& (# <(i*u%
:!.#.C!#L
9hysical flow
2holes(le%
Carrying and :orward #gent
:LBA
Re'is#%i=u#ion S#oc>is#s
Re#(ile%s
Consu?e%
1.1@
OB<ECTIVE OF THE PRO<ECTS
To study the e isting vanaspati market with respect to dalda distribution and see the gaps found" if any. 5uggestion to improve coverage and to launch the new product 8alda #ctive with co?field force and study the post launch self?movement and counter problem in the market with the concrete suggestion. To achieve the above objectives" the beat assigned was to be thoroughly studied along with the salesman of that area. The markets were to be earmarked in the beat" which had a scope of e pansion and to see that the product was placed in each outlet
1.11 NEED
The customer today shops for value and service due to several similar brands in the market competition has been tough" the distribution network has to be more transparent and efficient to ensure the availability in the each and every outlet suitable for. The company products can only be a market leader if" they are available with the ease and a support of an efficient distributing network. 4uilding distribution e7uity is a process of delivering value through building relations and making the shopping a pleasurable e perience. The management of distribution through retailing and merchandising is done in such a way that the consumer needs are more than satisfied. The promotions are also used to offer lasting value rather than to win temporary sales from competitors.
!n the distribution game the company/s first set of customer is the retailer. The retailer comes in the direct contact of the consumer and plays a very crucial role in promoting the brands and determining its customer value. Thus" it is imperative that the company protects his interests" services" his need and maintains a long?term relationship. The sales forces of the company and the salesman perform these crucial functions. # salesman takes the stock from the distributor and delivers it to the retailers. Bn his shoulders rests the responsibility of having good relations with the retailer" building reliability and confidence. He has to assure the retailers that he thinks of his best and will help him to make profits if he promotes the product. He by using his selling skills pushes the product with the retailer and increases the company sales. # salesman performs the crucial look of making the product available and visible to the consumer and ensuring sales. However if he becomes demotivated it can adversely affect the sales volume and goodwill of the company. 5alesman with low morale will be content to take orders without persuading the retailer to stock more" they will credit the competitors with more ability and blame poor sales records on ineffective advertising. Thus this negative attitude can also rub off on fellow sales people. !f a new product is launched" plans are earmarked to target the outlets suitable for the product. 9lans are to be made to make best possible effort to place the product in the outlets earmarked with a purpose to e pand the presence of the product reflecting an effective distribution network of the company.
Thus" with the objectives in mind" if fulfilled" will lead to a large presence of the products of the company in the market along with its effective distribution network.
1.12
SCOPE
The distribution e pansion ( new products launch of H!.8&5T#. LCVC@/5 Company were studied to cover the following aspects. '. 8etails of the outlets. 0. C isting Vanaspati market. ). 9roblems e isting at the outlets. 2. @elation with the salesman and the retailers. $. 5cope of e pansion in the market. 1. 9lacement of the new products in the market. 3. #cceptability of the new products.
2.1
PRO<ECT EAECUTION
BA BRIEFC
The purpose of summer training is to learn through real life first hand e perience with an effort to understand the distribution system and develop marketing skills. ! took up the project in the related fields. 8uring the e ecution of the project ! was e posed to the sales pressure felt by the sales team and tried to learn and grasp as much as possible. The project involved around the beat with salesman of that beat. De)in(#ion O) S(les?(n 03 He is the person who work under the stockiest of respective companies. Their main job is to take orders from the retail outlets and deliver them the food and services. 5alesman is a very important part in the work sales machinery. He is responsible for pushing the sales. His job is to take the stock from the distributor and sells it to the retailer. #lso telling them about the retailer ( consumer profit schemes according on the commencement of a project. ! was attached to a distributor and was deputi6ed along with salesman of the concern beat. The ?(;o% ;o=s in$ol$e' 03 5urvey of the beat and ensuring strict adherence to the beat according to the weekly schedule.
8etails retailers name and address" Vanaspati/s stocked. To see gaps in the market. Looking to the problems of the retailer and addressing it to sales officer concerned with them. 9roper merchandising of the new launched products and placing it in the market ensuring effective availability and accessibility. 4uilding effective relationship with the salesman and the retailer. 5hare market of dalda vanaspati with respect to other vanaspati in the market. ! was duly informed to report to -r. Dyan Chand " Dandhi .agar" Da6iabad. The concern distributor had three units running. The market was covered according to the weekly schedule.
Table 1 0 2EE.L SCHEDULE

UNIT 1 DA OUTLETS -onday .ehru .agar. ,avi .agar. 5hashtri .agar. ?????????????? Dhanta Dhar. Duru -andi. Aright Danj. 5abji -andi. .ai 4asti. Chopla. 5ihani Date. Chander 9uri. 8elhi Date. Dhandhi .agar. ,irana -andi. Turab .agar. @amte @am @oad. 8adari. Dhanta Dhar. Aright Danj. Duru -andi. 5abji -andi. Bne 4eat L 2% Butlets 20 2% S(les?(n 0 R(; .u?(%. AREA
Tuesday Aednessday
Thursday
)+
:riday
)* 2%
5aturday 5unday
20
Bne @oute L 1 4eats. Total outlets < 1 K 2% L 02% Butlets.

UNIT 2 DA OUTLETS -onday Vijay nagar Daushala. 9ratapvihar. ?????????????? 8asnagate Fatwara -aliwada 5abji -andi. .ai 4asti. Chopla. 5ihani Date. Chander 9uri. 8elhi Date. 8aulatpura @akeshmarg #ryanagar 4ajaria @ajnagar sec0) 5anjaynagar ,amla nehru nagar @ajnagar sec'%")"0"'"3"'2" Lohiyanagar. 9atelnagar Bne @oute L 1 4eats. Total outlets < 1 K 2% L 02% Butlets. Bne 4eat L 2% Butlets 2% )% S(les?(n 0 ASHO. RANA AREA
Tuesday Aednessday
Thursday
:riday
)0
5aturday
0$
5unday )$

UNIT 1 C(sh Uni# DA OUTLETS -onday Tuesday Aednessday Dovind 9uram Harsan. ?????????????? ,avi .agar #shok.agar .ehru .agar @aj .agar 5ector?'" '"3"+"0) 9atel .agar" !" !!" !!! .andgram Vijay .agar 9ratap Vihar Daushala 5hastri .agar Chiranjeev Vihar Bne 4eat L 2% Butlets )% 0$ S(les?(n 0 SURENDRA AREA
Thursday :riday 5aturday
2$ 2) )$
5unday
0$
Bne @oute L 1 4eats. Total outlets < 0%*.
1.1
RESERCH METHODOLO-
Rese%ch Desi/n 03
-arketing research is defined as a function that links the consumer" customer and public to the market through information. !nformation used to identify and define marketing opportunities and problems; to generate" define and enable marketing actions; to monitor marketing performances; and to improve understanding of marketing process. -arketing research specifies the information neede to address marketing issues" design the method for collecting information" manages and implement the data collection process" analyses the result and communicates the finding and there implications. 5ome of the most common activities are <? -easurement of market potentialities. -arket M 5hare analysis. 8etermination of market characteristics. 5ales analysis. 5tudies of business trends. 5hort range forecasting. Competitive product studies.
Long range forecasting. -arketing information system studies. 9ricing studies. The marketing research process consist of four major steps <? 8efining the problem and research objectives. 8eveloping the research plan. !mplementing the research plan. !nterpreting and reporting the finding. # set of systematic efforts were followed to achieve the objective of the project.
1.2
1ST OB<ECTIVE
To collect the data regarding the retailer name" address" items stocked at present" comment and remarks 1. D(#( Collec#ion Sou%ces
0
9rimary 5ources < 5alesmen; 5ales offices of the H.L.L :oods. 5econdary sales. 5ources <#naly6ing daily
2. D(#( Collec#ion Me#ho' 1. D(#( Collec#ion Ins#%u?en#
0 0
Bn route with salesman and personal collection of information. 5tructured format with the columns for respective details=@efer to #nne ure '>
4. Fiel' Pl(n
Bn route according to weekly schedule.
1.1
2ND OB<ECTIVE
To study the sales ( distribution of a branded vanaspati with respect to dalda vanaspati. 1. D(#( Collec#ion Sou%ces
0
9rimary 5ources
< List of concerned
category of outlet in the beat. 5econdary 5ources < 8aily activity report. 2. D(#( Collec#ion Me#ho' 1. D(#( Collec#ion Ins#%u?en# 4. S(?*lin/ Pl(n 5. Fiel' Pl(n
0 0 0 0
Bn route with salesmen. 5tructured format with the columns for respective details=@efer to #nne ure0> -aking calls on the outlets. Bn route according to the weekly report.
1.4
1RD OB<ECTIVE
To study the e pansion of outlets in the beat. 1. D(#( Collec#ion Sou%ces 2. D(#( Collec#ion Me#ho'
0 0
Bn route with salesmen. 5tructured format with the columns for respective details=@efer to #nne ure )>
1. S(?*lin/ Pl(n 4. Fiel' Pl(n
0 0
-aking calls on the possible outlets. Bn route according to the weekly report.
1.5
4TH OB<ECTIVE 0
Launch of the new product in the beat and near by town. 1. D(#( Collec#ion Sou%ces 2. D(#( Collec#ion Me#ho'
0 0
List of all outlet in the beat assigned. Bn route with salesman and personal collection of information.
1. D(#( Collec#ion Ins#%u?en#
5tructured format having details for the calls made and number of planned outlet with actual outlet done =@efere to #nne ure 2"$>
4. Fiel' Pl(n
#ccording to weekly schedule.
1.6
5TH OB<ECTIVE
To study the success of promoting activates made by the company and counter problems in market with appropriate suggestions. 1. D(#( Collec#ion Sou%ces
0
List of all outlet where the products were placed.
2. D(#( Collec#ion Me#ho' 1. D(#( Collec#ion Ins#%u?en#
0 0
-aking calls at the outlets. 5tructured format having details for the calls made and number of planned outlet with actual outlet done.
4.1
1ST OB<ECTIVE 0
To collect the data regarding the retailer/s name" address" product" and stocked.
Major function of the salesman are :'. Checking the available stock at the shop. 0. Cmphasi6ing the 7uality of the products. ). Converging the various schemes offered by the company for the retailers and the consumer. 2. Convincing the shopkeeper to stock more of the product. $. Taking the order. 1. 8elivering the ready stock. 3. @eplacement of damaged ( e pired packets. *. Handle adjustments" cash discount" and credit. +. 8istributes promotion material;. '%. Handle retailer/s 7uestion and objections. ''. @eport product weakness and complaints. The salesmen try his best to built good relationship with the retailers and gain his confidence. He has to make regular calls to every shop" every week" or bi weekly as the flow of stock demands. !n the evening after finishing his beat the salesman returns to the stockiest and prepares daily sales report.
Major problems faced by the salesman are :

'. &nder cutting; The shopkeepers are able to get the products at a much lower rate from the whole seller than from the salesman. This reduces the sales. 0. !rregular replacement; 5alesman are not clear about the replacement schemes. They are unable to take instant decision regarding the replacement of damaged and air leaked packets as well as e pired packets. ). .on payment of old schemes; Company keeps offering schemes for its retailers. 4ut these retailers do not get their gifts even after the successful completion of the schemes. :or no fault of this" salesman then has to face the brunt of the shopkeeper. 2. Competition policyD Hindustan lever food reimburses the salesman his salary through the distributor. This sometimes leads to lack of unity of command. The salesman get confused about whether he is working for the distributor or the company and whether he should listen to the sales officer or the stockiest. $. C pectations; The salesman e pects to the company to fulfill there social and psychological needs. They e pect that due welfare and care is taken by the company and there needs are looked into.
4.2
2ND OB<ECTIVE
To study sales ( distribution of branded vanaspati with respect to 8alda vanaspati. Vanaspati market is a very large market. There are number of brands e isting in the market today. To study sales ( distribution of these branded vanaspati a 7uestionnaire was prepared = see #nne ure ? 0 > The major competitive brands of 8alda vanaspati in the markets are <
'. Dagan < The product of #mrit industries. 0. @ath < The product of !TC. ). @uchi < The product of -odi Droup. 2. Bthers < Local brands like =5ajan" 5arthi NN>.
These brands are available in different packet si6e <? '%%ml" 0%%ml" $%%ml" 'ltr." 0ltr." $ltr." '%ltr. #t present" 8alda was available in all these pack si6es. #ccording to the survey it was found that ' day sale of Vanaspati in the market is ) tonnes appro . But of which 3%E of the sale is though 'litre packs and rest )%E through other's ='%%ml" 0%%ml" $%%ml" 0 ltr." $ ltr." '% ltr.>.
'litre pack sale 3%E Bther's pack sale )%E.
5urvey conducted in different areas gives the following sales of ' litre pack of different branded vanaspati e isting in the market for the month of Fuly.
'. @ath < '2$%% #ppro 0. Dagan < ')%%% #ppro ). 8alda < '1%%% #ppro 2. @uchi < *%%% #ppro $. Bther's < 2*"$%% #ppro
TO REPRESENT SALES OF 1LTR PAC. -RAPHICALL .
M(%>e# sh(%e o) $(%ious V(n(s*(#i B1 li#%e *(c>C
Through the graph it is seem that in branded vanaspati. 8alda is the market leader in this segment but the margin is meagre. Vanaspati that fall under the headings of other's =like sajan" sarthi NN.> 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.
DETAILS OF OTHER PAC.S FOR THE MONTH OF <UL . 5@@?l 2 li#%e 5 li#%e 1@ li#%e To#(l in li#%es @ath Dagan 8alda @uchi )%%% $%%% $+' '%%% *% +% 1) )% '0% *% ''2 2% ? '% ''% $ 001% )'*% 0%+' *'%
MAR.ET SHARE OF OTHER PAC.S OF BRANDED VANASPATI
#s we see the table which shows in $%%ml packs sale of 8alda is very low as compared to other brands. !t is because 3%E of vanaspati sale is of the 'litre packs where dalda is the market leader and retailer's always buy a define 7uantity of vanaspati in different packs according to demand. 5ince the sale of ' litre is high" so they buy relatively less amount of vanaspati available in other packs
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.
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.
PRESENT TO2N UNIT PRICES OF BRANDED VANASPATI. '. 8#L8# 0 $%%-L ' L!T@C $ L!T@C '% L!T@C $%%-L ' L!T@C 0 L!T@C $ L!T@C '% L!T@C $%%-L ' L!T@C 0 L!T@C $ L!T@C $%%-L ' L!T@C 0 L!T@C $ L!T@C '% L!T@C '2.*% 0*.$% '3%.$1 ))$.30 ').3$ 03.%% 12.%% '$$.2% 03$.%% '2.%% 0*.%% 1).%% '10.%% '2.$% 03.%% 1).%% '$$.%% 0*%.%%
0.
D#D#.
).
@#TH
2.
@&CH!
#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.
PAST RECORD SALE OF DALDA =Bne litre pack only>
EUANTIT SOLD THROU-HN OTH ER PAC.S B5@@?lF 2 l#%eF 5 l#%eF 1@ l#%eC
: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" e act 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 e hibits marketing leadership.
FINDIN-S3I
FINDIN-S3II
COMMENDS 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. 1. 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. 15 Ou#le#s0 :eel that the replacements 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 Cffective in packing @eady to solve problems Company is concerned for the retailers for the airleakOtronOother?
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.
4.1
1RD OB<ECTIVE
To study the e pansion of outlets in the beat<

#fter the list of all the outlets covered by the redistribution stockist was prepared the major job was tosee the gaps found in the market. The list was prepared in stuctured format and the call was made. 24@ eHis#in/ ou#le#s ?(%>e# +ise BR.S co$e%in/C M(%>e# .ehru nagar 5hastri nagar ,avi nagar no. o) ou#le# %3 0) %* M(%>e# 5ihanigate ,iranamandi Dandhinagar Tulabnagar Dhanta ghar Durumandi Aright gang 5abjimandi '2 %1 02 %1 8asnagate Fatwara -aliwada .ai basti Chopla 8elhigate %1 '% '% 5abjimandi '0 %2 '' %$ Tamte ramroad no. o) ou#le# '% '% 0' %0 %$
The problems and objections of the retailers were looked into" and if possible" were solved at the outlet itself in consultation with the concerened sales officer'/ through the telephone.
-ajor demand of the retailerswere< '. !nstant replacement of the damaged packets . 0. Difts O incentives on promoting the product. ). 'E cash discount should be conmpulsory. 8uring e pansion of new outlets major concentration was made on < '. ,irana store. 0. 9rovision store. ). .ew shops. 5tudy revealed that few markets had a good scope of e pansion. '. 5hastri .agar. 0. Dandhi .agar. ). Fatwara. 2. ,irana -andi. $. Chopla. There were certain outlets which has discounted the purchase of products through the distributor due to various reason" some of these problems are < '. &nder cutting < The shopkeepers are able to get the products at a much lower rate from the whole seller than from the salesman. This reduces the sales.
0. Communication gap between retailers and stockiest< This factor is also responsible for disturbing the flow of distribution of product through proper channel. :or e ample mismatching of accounts or payment related problems. ). Bbjection over delivery of the product < 8elay in delivery of ordered 7uantity within the stipulated time. Cause were made on these outlets which had stopped purchasing from salesman and make them sure that company sales officer will definitely solve the problem as soon as possible.
MAR.ETIN- STRATEBNE2 PRODUCT LAUNCH>
The !ntroduction 5tage <

The introduction stage starts when the product is first launched . !ntroduction takes time" and sales is apt to be slow. !n this stage "profits are negative or low because of the low sales and high distribution and promotion e penses. 9romotion spending is relatively high. The goals are to inform consumers of the new product and to get them to try it. # company might introduce its new product with the high price and high promotion e penses.This strategy is adopted to make the consumer feel that the 7uality of the product is superior than the other competitive brands in the market. -any buyers relate a product/s 7uality to its price " when it is difficult to judge 7uality before buying. The policy of high pricing needs the support of strong promotion by both the manufacturer and the middlemen.
4.4
4TH OB<ECTIVE
LAUNCH OF THE NE2 PRODUCT Aith the objective" to serve the customer giving them what they want and to stay away from competition. Company introduced H NEW DALAD ACT !E" after doing the test marketing of dalda feel light. This new inovation came from a careful study of the market and consumer need" after serving the customer for more than 1% years in this particular segment. The packing of the product was attractive. #t present company introduced it in one litre pack only and will increase the range after the acceptance of the product. LUANCH BRIEF 9@B8&CT C#TBDB@G 9#C, < < < .CA 8#L8# #CT!VC V#.#59#T! CBB,!.D B!L #.8 :#T5 B.C L!TC@
9@!CC TB T@#8C; B.C L!T@C =Bne case L 0% 9ackets> 0 Case ' Case '% 9ackets T@#8C B&TLCT5 < 5CLL!.D .B@- < L 0$% @sO? L '$% @sO? L 3$ @sO? 8isplay 8isplay 8isplay
,!@#.# 5TB@C5 .BT -B@C TH#. 0C#5C #T C#CH B&TLLCT5
SELLIN- STOR 0 !t is uni7ue" since it offer/s consumer the delicious taste of vanapati in a healthier way. !t do not stick in throughout. !t does not congeal on cooling that is does not form layer of fat on food . #fter having food cooked in dalda active " consumer donot feel la6y. 4ut he becomes all the more active . !t is healthier than any other vanapati because it contains two times the amount of healthy fats. !t remains in a pouring form even in winter/s. -argin to trade is better. 9roduct of Hindustan lever/s. Dis#%i=u#ion #(%/e# To be available in all kirana store by )/june 0%%%.
How to go about 9lan your call befor you leave for the market . Check ade7uate stock is there to meet the day/s re7uirement. Check for p.o.p" danglers ( leaflets in the unit are they in sufficient 7uantity . 5alesmen to carry a packet in his hand to introduce it to dealer. Let the dealer feel the pack by touching . 9.o.p" dangelers" to be hung by the helper before salesmen finishes his story. Hang up packs in danglers if there is the order. &se e isting rack for display of packet at hhe place were it cathes the consumer eye. Carry on with the sales call of other products. 9ut major efforts to merchandising.
FINDIN-S L(ucnch o) Ne+ D(l'( Ac#i$ The product was launched on 'st Fune 0%%%. # structured format was supplied to record number of call made" number of productive calls and 7uantity placed. The launch plan was for a week including D#Q!#4#8" -CC@&T" .B!8#. Target was to cover as many outlets as possible. The launch plan for DH#Q!#48 was for ) days. There was three units running for the launch" everyday for three days. @egular calls were made on the outlets and the details about the product" benefits" rate list and display schemes for retailer's were informed to them. The response of the product was not so encouraging and were able to make )%% calls out of which '2% calls were productive i.e around $%E of success was only achieved. 4ut as the product was new and at a very high price" $%E success was not discouraging.
8etails of the launch in the 'st weak is shown in the table" the towns which ! covered.
LAUNCH OF DALDA ACTIV 1ST 2EE.

8ay Thursday :riday 5aturday 5unday 2th Fune 8ate 'st Fune Town DQ4 DQ4 DQ4 -eerut @.5. .ame Dyan chand Dyan chand Dyan chand Dupta #gencies 5alesman 5urendra #shok @ana @aj kumar 9iyush =@.5.!> #dhesh 9iyush =@.5.!> #dhesh 8ubey 8ubey T.5.! 9raveen 9raveen 9raveen @ajeev Fetley Total Calls 0% 0$ )% )% 9roductive 1 '$ 0$ 0% E achieved )%E 20 *) 11 Volume ) '$ )$ )0
Tuesday
-eerut
Dupta #gencies
@ajeev Fetley
.o work due to heavy rain
Aednesda y Thursday To#(l
.oida .oida
5under 5under shoes
9raveen =@.5.!> #dhesh
)% 0% 165
'$ '% :@
$%E $%E 45
'$ '% 11@
P%o=le?s )(ce' in *l(cin/ #he *%oc'uc#

'. 4ecause of a very high price. 0. @etailier's were comparing it with earlier launched product 8alda feel
light.
). C piry date mentioned on packs. 2. 5hortage of time" to cover. $. !n -eerut the results were encouraging" but the stock available was very
less in 7uantity. #fter '$ days of launch" survey was conducted to the know the off?take of the product" to check whether display is there or not and to know the awareness of the product among consumers. # structured format was prepared to conduct the survey < = see #nne ure > The off?take of the product was only 0%E that is among '%% packets only 0% was sold. The ma imum number of packets were sold at )$O?. There was hardly any retailer who touched the -.@.9 of )+ rupees. OFF TA.E -RAPH
Packet sold 20%
Packet not sold 80%
SOLD AT DIFFERENT PRICES
30 25 20 15 10 5 0
30 25 20 20
Rs. 35
Rs. 34
Rs. 36
Rs. 39
Other's
This shows that ma imum 7uantity was sold at )2")$")1 rupees respectively. 5o" most of the customers accept the product at these prices. #s far as the 9osters " 8anglers" hangers ( other materials of display is concerned there were 2$E of the shops which really had a good display. Ahile others lack with something or the other. hangers to hang up the packets for greater visibility. :ew shops were not
DISPLA
!"era#e 40%
$ood displa 45%
No displa 15%
A+(%eness 0
#lthough the product was backed by television
advertisement" which started on 2th Fune" still the consumer's were not aware of the product" but slowly as the no of advertisement increased people started recogni6ing the product but" there was not much pushing for the product by the retailers. -ost of them did not e plained the benefits of the product to the customers. M(;o% *%o=le?s )(ce' =& #he %e#(ile%s in *%o?o#in/ #he *%o'uc#
'. High prrice 0. lack of awareness ). 5hortage of display materials 2. Consumers could not understand what e actly the product is"
!s it a
vanaspati or refined oil.

4ut at the end of the project" the repeat demand for the product started coming because of high promotional activities and television advertise. There were $) cases more sold ne t month. P%o'uc# c(n onl& =e *%o?o#e' in ( lon/ %un =ec(use0
'. The new product has a promotional backup i.e advertisement in print
media and television add.

0. !t is a uni7ue product" first of its kind. 4oth people will take time to
recogni6e ( feel the 7uality of the product.

). !t has a brand name 8alda attached to it. 2. !t is a product of HLL.
4.5
5TH OB<ECTIVE
FINDIN-S To s#u'& #he *%o?o#ion(l (c#i$i#ies o) #he ne+ *%o'uc#. The main objective was to know about the promotional activities and display related to the product" whether the schemes ( promotional activities of the company are acceptable and how they fared in the market. :rom time to time company did the activities for promoting the sales of the product.
'. Re#(ile%Is sche?e 0 #t the time of launch there was only a scheme for
retailers because whenever a product is launched in the market" the first stage of the success is measured by placement of the product. 5o" to place the product in the market there was only a scheme for retailers. 0$% '$% 3$ for 0 cases display for ' case display for '% case display
@etailers got their display amount only after successful completion of the 8isplay time which was for ' month. The activity worked for the company" this helped a lot in placing the product but ended up with unfair practice in the market.
D%(+=(c>
'. 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 -.@.9 of )+O?. 0. Ac#i$i#& 0 Television advertisement as we know" peoples rush for Television is the latest
things which is once shown on television.
communication median" especially when it is to cover a large population. Company had planned for aggressive advertisement for three months atleast" on various channels ? Qee television" 5oni" 8oordarshan
advertisement were shown between cricket matches also. :ew movies were sponsored by 8alda #ctiv on 5ma channel. 8ue to the advertisements shown on various started recogni6ing the product. among customers.
). Ac#i$i#& 0 #fter a successful completion of display scheme company
channel" customers have
#dvertisement had created awareness
had started another activity. This activity was for customers. Company had started redemption coupon's in news paper 9unjab ,esari =5ee #nne ure 1>. #s far as the success of these coupons is concerned" it did not go well as e pected by the company. @etailers had a very few coupons with them appro '%% in the whole market.
5.1
RECOMMENDATIONS 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.
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$e%(/e o) ou#le#s.
There should be atleast to @edistribution stockist because the work load on @.5. is too high to manage is the only stockist for both Tea and foods. To increase the number of beats The outlet which have stopped purchasing from redistribution stockists due to any kind of dispute between stockists and the retailer should be solved by the timely action of sales officer. The company should come out with suggestion Letter's that should be given on a 7uarterly basis to all the retailer's and stockist" so that the sales officer handling a particular belt is aware of the problems" grodges" grievances of the retailers. This will help him in taking timely action which will save the matter's from aggravating further. !t should try and reduced the price gap between the wholesaler rates and stockists rates. To reduce under cutting atmosphere prevailing in the market.
P%o?o#ion(l (c#i$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 e tent it has been detrimental to the e act 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. )$. 5o it was thought as immediate competitor of e isting vanaspati in the market. To reposition it"
company should create a mental awareness campaign that elucidate the features that are in the 8alda #ctiv that places it against refined oil. They should also highlight the features that the new product is superior than market than the already e isting vanaspati in the market and
because of this it is priced slightly higher" this can be done through advertisements" attaching or printing relevant literature on the pack. The company also introduced the coupon scheme but the response were not upto the mark. They can again relaunch this scheme with much more Vigour complementing the advertising campaign and this time coupon should also include the distinctive features of 8alda #ctiv. 5ome gift item can be given to promote sales. Three wheeler vans should be more colourful" displaying new 8alda #ctiv.
1%' ANNEAURE
LIST OF OUTLETS R. S. NOT COVERINS. No. A%e( N(?e o) Re#(ile%s A''%ess P%esen#l& S#oc>in/ N(#u%e Re?(%>s
4#h ANNEAURE
LAUNCH PLAN FOR DALDA ACTIVE
D(& D(#e To+n R.S. T.S.I. S(les? (n To#(l c(lls P#o'uc #i$e J (chie$e

5#h
ANNEAURE
FORMAT FOR OF TA.E OF DALD ACTIVE DISPLA CHEC.INN(?e o) %e#(ile%s A%e( No. o) c(ses No. sol' P%ice J o) #(>e Dis*l(& Re?(%>
CHAPTER- 1
INTRODUCTION
CHAPTER- 2
PROJECT EXECUTION
CHAPTER- 3
RESEARCH METHODOLOGY
CHAPTER- 4
FINDING & ANALYSIS
CHAPTER- 5
CONCLUSION & RECOMMENDATION S
CHAPTER- 6
APPENDIX
TABLE OF CONTENTS
CHAPTERS TOPICS AC.NO2LED-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<ECT EAECUTION 0.' # 4rief Table?' Aeekly 5cheduled Table?0 Aeekly 5cheduled Table?) Aeekly 5cheduled
CHAPTER31
RESEARCH METHODOLO).' @esearch 8esign ).0 'st Bbjective ).) 0nd Bbjective ).2 )rd Bbjective ).$ 2th Bbjective ).1 $th Bbjective ).3
CHAPTER34
FINDIN-S AND ANAL SIS 2.' 'st Bbjective :indings 2.0 0nd Bbjective :indings 2.) )rd Bbjective :indings 2.2 2th Bbjective :indings 2.$ $th Bbjective :indings
CHAPTER35
RECOMMENDATION AND SU--ESTIONS $.' @ecommendations
CHAPTER36
APPENDIA #nne ure?' :or 8etails of Butlets #nne ure?0 Puestionnaire #nne ure?) List of outlets are as not Covering #nne ure?2 Launch plan for .ew 9roduct #nne ure?$ :ormat for display checking oftake of new product and
#nne ure?1 9.B.9 and 8anglers
TO 2HOM IT MA CONCERN
This is to be certify that NITIN PATHA. a student of 9D84- ='+++? 0%%%>" C-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 2i#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 <AIN C-9! 4usiness 5chool" .ew 8elhi
SUMMER PRO<ECT REPORT

ON
SUBMITTED TO0
UNDER THE -UIDANCE OF0
9rof. @. 5. 9@#5#8
9rof. #-!T F#!.
=:aculty Duide>
SUBMITTED BY:
NITIN PATHA. P-DBM BMAR.ETIN-C '+++?0%%'
C-9! 4&5!.C55 5CHBBL NE2 DELHI31@


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SALES AND DISTRIBUTION OF BRANDED VANASPATI

EMPI Business School