Internship Report on

SALES AND DISTRIBUTION MANAGEMENT IN (HUL)

BY

Sandeep Mishra

ID- 22MBA

Submitted in partial fulfillment for award of degree Master of Business Administration (MBA)
ACADEMIC SESSION: [2022 – 2024]

INTERNAL GUIDE
Prof:Dr. HARSIT ERIC WILLIAMS

1
 CERTIFICATE

This is to certify that SANDEEP MISHRAbearing Roll Number ASM1204003, is a bonafide

Student of Joseph School Of Business And Commerce (JSBS&C) (Batch 2023-2024), Approved

by AICTE, Ministry of HRD, New Delhi. Internship report on “SALES AND DISTRIBUTION

MANAGEN (C.G)” is prepared by him/her under the guidance of Dr. HARSIT ERIC

WILLIAMS in partial fulfillment of the requirements for the award of Joseph School Of

Business And Commerce (JSBS&C)

ADVISOR
Prof:Dr. HARSIT ERIC WILLIAMS

2
Internship Completion Certificate

It is here by certified that Mr. /Ms. _SANDEEP MISHRA, student of the Acharya School of
Management has completed the Internship at our organization _TRIMURTI ENTERPRISES
BHILAI from_27-OCT-2013_ to _04-01-2014 successfully.

Mr. SANDEEP MISHRAduring his/her stay at our organization has performed the assigned
worked satisfactorily and conduct was good. The student has attended all days for completing
his/her internship.

Reporting Officer
(With Name, Designation
Contact Number & Seal)

3
DECLARATION

I AMIT KUMAR, hereby declare that the Internship report entitled “SALES AND
DISTRIBUTION MANAGEMENT IN (C.G) ”with reference to
“TRIMURTI
ENTERPRISES BHILAI” prepared by me under the guidance of (Prof:Dr. HARSIT ERIC
WILLIAMS) , faculty of the Acharya School of Management.

I also declare that this Internship project is towards the partial fulfillment of the curriculum
requirements of PGDM Program at the Acharya School of Management.

I have undertaken this project for a period of 10 weeks. I further declare that this project is
based on the original study undertaken by me and has not been submitted for the award of
any degree/diploma from any other University/Institution.

Place: Bangalore Signature of the student

Date: 22-Jan-2014

TABLE OF CONTENTS

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 CONTENTS Page No
Chapter 1: Executive Summary 06

Chapter 2: Objective of the Study 08

Chapter 3: Industry Profile 10

12

Chapter 4: Company Profile 35

Chapter 5: SWOT Analysis 43

Chapter 6: Methodology of data collection 46

Chapter 7: Analysis and Findings 55

Chapter 8: Recommendations 64

Chapter 9: Conclusion 68

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6
 CHAPTER 1 Executive Summary

The main objective of the project is to get the full knowledge of the
distribution network of the products of the HUL and how they are using the
distribution network as a key differentiating factor from its competitors. This is
also to find the preferences of customer and there market knowledge and product
information, information about the presence of the rivals of HUL and all the other
options they have in the market. HUL are also looking to tap the market in rural
sector, so they also taking into consideration the needs and wants of the people there.
The study was done with reference to many products of HUL and there distribution
channel in DURG, BHILAI of (C.G).
It was a useful learning to understand the working of HUL.

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 CHAPTER 2 OBJECTIVE OF THE STUDY

Objective of the Study

 To understand the distribution network of Hindustan Unilever Ltd.

 To find the ways to use the distribution network as the key differentiating factor from
its competitors.

Scope of the study

 The scope of the study is confined to distribution networks in DURG, BHILAI

only, as the project duration is short time.

Limitayion of study

 The distributors showed lack of interest due to time constraint or some other personal
issues.

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 CHAPTER3 INDUSTRY PROFILE

Industry Profile

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables (other than groceries/pulses) people buy at

regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste,

shaving products, shoe polish, packaged foodstuff, and household accessories and extends to

certain electronic goods. These items are meant for daily of frequent consumption and have a

high return.

The Indian FMCG sector with a market size of US$14.8 billion is the fourth largest sector in the

economy. The FMCG market is set to double from USD 14.7 billion in 2008-09 to USD 30 billion in

2012. FMCG sector will witness more than 60 per cent growth in rural and semi-urban India by 2010.

Indian consumer goods market is expected to reach $400 billion by 2010.Hair care, household care,

male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the

fastest growing segments. At present, urban India accounts for 66% of total FMCG consumption, with

rural India accounting for the remaining 34%. However, rural India accounts for more than 40%

consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban

areas, home and personal care category,including skin care, household care and feminine hygiene, will

keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed

foods, bakery, and dairy are long-term growth categories in both rural and urban areas.The growing

incline of rural and semi-urban folks for FMCG products will be mainly responsible for the growth in

this sector, as manufacturers will have to deepen their concentration for higher sales volumes.

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Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian Tobacco Company), and

Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints (India), Cadbury India, Britannia

Industries, Procter & Gamble Hygiene and Health Care, Marico Industries, Nirma, Coca-Cola, Pepsi

and others. As per the analysis by ASSOCHAM, Companies Hindustan Unilever Ltd, Dabur India

originates half of their sales from rural India. While Colgate Palmolive India and Marico constitutes

nearly 37% respectively, however Nestle India Ltd and GSK Consumer drive 25 per cent of sales from

rural India.A rapid urbanization, increase in demands, presence of large number of young population, a

large number of opportunities is available in the FMCG sector. The Finance Minister has proposed to

introduce an integrated Goods and Service Tax by April 2010.This is an exceptionally good move

because the growth of consumption, production, and employment is directly proportionate to reduction

in indirect taxes which constitute no less than 35% of the total cost of consumer products - the highest

in Asia.. The bottom line is that Indian market is changing rapidly and is showing unprecedented

consumer business opportunity.

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 CHAPTER 4

Company Profile

In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight

soap bars, embossed with the words "Made in England by Lever Brothers". with it, began an

era of marketing branded Fast Moving Consumer Goods (FMCG).Soon after followed Lifebuoy

in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and

the famous ‘Dalda’ brand came to the market in 1937.

In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company,

followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three

companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian

public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the

company. The rest of the shareholding is distributed among about 360,675 individual shareholders and

financial institutions.

The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red
Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the
Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were
forged in 1898.Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was
incorporated.Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an
international acquisition of Chesebrough Pond's USA in 1986.Since the very early years, HUL has vigorously
responded to the stimulus of economic growth. The growth process has been accompanied by judicious
diversification, always in line with Indian opinions and aspirations.The liberalization of the Indian economy,
started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory
framework allowed the company to explore every single product and opportunity segment, without any
constraints on production capacity Simultaneously, deregulation permitted alliances, acquisitions and mergers.
In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1996, HUL and yet another Tata
company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-
leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited
sold its brands to HUL and divested its 50% stake in the joint venture to the company.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994, Kimberly-

Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also set up a
14
subsidiary in Nepal, Unilever Nepal Limited (UNL), and itsfactory represents the largest

manufacturing investment in the Himalayan kingdom. The UNL factory manufactures HUL's products

like Soaps, Detergents and Personal Products both for the domestic market and exports to India.The

1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages

front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in

Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Ice-cream

business from CadburyIndia HUL launched a slew of new business initiatives in the early part of

2000’s. Project Shakti was started in 2001. It is a rural initiative that targets small villages populated by

less than 5000 individuals. It is a unique win-win initiative that catalyses rural affluence even as it

benefits business. Currently, there are over 45,000 Shakti entrepreneurs covering over 100,000 villages

across15statesandreachingtoover3millionhomes. On 17th October 2008, HUL completed 75 years of

corporate existence in India. In 2002, HUL made its foray into Ayurvedic health & beauty center

category with the Ayush product range and Ayush Therapy Centers. Hindustan Unilever Network,

Direct to home business was launched in 2003 and this was followed by the launch of ‘Pure-it’ water

purifier in 2004.In 2007, the Company name was formally changed to Hindustan Unilever Limited after

receiving the approval of shareholders during the 74th AGM on 18 May 2007.Brooke Bond and

Surf Excel breached the Rs. 1,000 crore sales mark the same year followed by Wheel which crossed

the Rs. 2,000 crore sales milestones in 2008.

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 BRANDS

HUL is the market leader in Indian consumer products with presence in over 20

consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700

million Indian consumers using its products. Sixteen of HUL’s brands featured in the ACNielsen

Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand

Equity, HUL has the largest number of brands in the Most Trusted Brands List. It has

consistently had the largest number of brands in the Top 50, and in the Top 10 (with 4 brands).

The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands.

Its brands include Kwality Wall's ice-cream, Knorr soups & meal makers, Lifebuoy, Lux,

Pears, Breeze, Liril, Rexona, Hamam and Moti soaps, Pure-

it water purifier, Lipton tea, Brooke Bond (Roses, Taj Mahal, Taaza, Red Label) tea, Bru coffee,

Pepsodent and Close Up toothpasteandbrushes, and Surf, Rin and Wheel laundry detergents, Kissan

squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair and Lovely

creams, Lakmebeauty products, Clear, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, VIM

dishwash, Ala bleach, Domex disinfectant, Modern bread, Axe deo sprays and Comfort fabric softeners

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 MILESTONE ACHEIVED

❖ Five of HUL's leading brands – Lux, Dove, Pears, Clinic Plus and Sunsilk – won the

Reader's Digest Trusted Brand 2008 Awards.

❖ Four HUL brands featured in the top 10 list of the Economic Times Brand Equity's Most

Trusted Brands 2008 survey

❖ HUL was awarded the Bombay Chamber Civic Award 2007 in the category of

Sustainable Environmental Initiatives.

❖ HUL was selected as the top Indian company in the FMCG sector for the Dun &

Bradstreet - American Express Corporate Awards 2007.

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HINDUSTAN UNILEVER LIMITED INDIA’S LARGEST FMCG COMPANY

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HUL DISTRIBUTION NETWORK

MANUFACTITS ALL ACROSS INDIA

C&F 1 C&F 2 C&F 3 C&F 4 C&F 5 C&F 6

C&F 7

STOCKIST STOCKIST STOCKIST STOCKIST STOCKIST STOCKIST

S S S S S S

STOCKISTS

WHOLESALER
S
RETAILERS

CUSTOMER

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This is the whole Distribution Chain of HUL to cover the rural market. The company have
remarkably worked upon to make the supply chain from manufacturers to retailers simple with
very few number of mediators and jobbers. It has helped them to maintain the transparency in
the cycle and also have let them established a prompt delivery process. The products are
manufactured in the factories all across India and then is supplied from there to the various
Carriage and Forwarding (C&F) units which are 5-10 per state depending on the area they have
to cover and are established by the company. These C&F units then supply the products to the
various Wholesalers confined to their area only and according to the wholesalers demand. The
wholesalers then supply the products to the semi-wholesalers and the retailers as per the volume
of their order. Then the semi-wholesalers deliver the products to the retailers and customers.

MANUFACTURER

STAGE 1-

C&F

In this stage the products reach to the Carriage and Forwarding unit from various manufacturing
units established all across India. The volume of the delivery depends upon the quantity
required/ordered by the C&F unit. The depot sends the request of the volume of the products to
the Head Office, which then order the various factories to supply the products to the mentioned
depot. The supply is met within a week. HUL has 45 C&F’s with 7000 stockists and 2000+
suppliers and associates to target the market.

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 C&
F

WHOLESALER
STAGE 2-S

The C&F then supplies the products according to the demand of various wholesalers. Each of
the depot cover a region assigned to them.

Each C&F acquires 5-7 trucks and hire 4-5 more trucks to supply products everyday.

They work on the concept of advance payment by DD by the wholesalers and deposit them in
the bank which is transferred to the head office.

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 HUL DISTRIBUTION NETWORK IN RURAL MARKET

ALL ACROSS INDIA

C&F 1 C&F 2 C&F 3 C&F 4 C&F 5 C&F 6 C&F 7

STOCKIST STOCKIST STOCKIST STOCKIST STOCKIST STOCKIST STOCKIST

S S S S S S S

IN Rural Geographic Regions of India the product which should be made by the manufactures
can be delivered through by C & F unit and these unit provide stock in the hand of the merchant
wholesalers. Wholesaler delivers the product or stock to the different retailers (who sales stock
WHOLESALERS

AGENTS

RETAILERS
in breaking bulk) through by agents. The main difference in urban and rural areas distribution
networks are the agent who made relation between merchant wholesalers to retailers. Retailers
CUSTOMER
can sell stock in small quantity to the ultimate consumers.
S

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\

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 CHAPTER 5

SWOT ANALYSIS

Strengths

H LL e nj o ys a fo rm id a bl e d i s t r i bu t i o n n e t wo rk co ve r i ng o ve r 34 0

0 d i s t r ib u to rs an d 1 6 million outlets. This helps them maintain heavy volumes,

and hence, fill the shelves of most outlets. The new sales organization named 'One HLL'

brings "Household and Personal Care “and foods distribution networks together, thereby

aligning all the units towards the common go a l o f a chi e v i ng su cce ss.

HL L ha s be e n co n t in u o u s l y ab le to g ro w a t a ra te m ore th an growth rate

for FMCG Sector, thereby reaffirming its future stronghold inIndianmarket.

Project ShaktiRral India is spread across 627,000

villages and possesses

s e r i o u s di s t r i b u t io n ch a l l e n ge fo r F MC G Co s . HL L ha s co me up wi

th a un i q ue a nd su cce ssful i nitiative wherein the women from the rural sector market

HLL products, and hence, are able to reach the same wavelength as of the common man in

village. Apart from product reach, th e i n i t ia t i ve a l so cre a te s bra n d a wa re

n e ss am on g s t th e lo we r s t ra ta o f so c ie t y. Thi s h a s brought about

phenomenal results.

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 Weakness
HLL's market dominance, originating from its extensive reach and strong brand presence, allowed it to

raise the prices even as raw materials were getting cheaper. Hence, though the volumes decreased, th

e m argin s g re w, a n d co mp an y wa s a bl e to e a rn m ore p ro f i t s . Bu t hi g he r ma

rg i n s a t t racted competition in areas of operations. HLL's strategy remained focused on

creating power brands and earning higher margins. It was not left with any other option but to try

cutting down the costs in order to protect volumes, if not increase it. As shown in above figure, the key

differentiators for an FMCG player are ability to call shots and pricing power, and HLL has

shown weakness over both the re factors. HLL's weakness was its inability to transform its

strategies at the right time. They continued wi th th e sam e o ld s t ra teg y wh i ch he l p ed

the m ga i n p ro f i t s b u t wa s n o t ge n u in e in th i s cha n g e e nvironment. HLL's

risk aversion and market myopia led to stagnation of business, and ferocity of competition

forced it into a defensive mode. Lack of pricing power in core business and absence of growth drivers

have put HLL on a deflationary mode.

Opportunities

India is one of the world's largest producer of FMCG goods but its exports are miniscule as

compared to p rod u c t i o n . Th o ug h Ind i a n Co s . ha ve be e n go i n g g lo

b a l , th ei r fo cu s i s m ore to wa rd s Asia n countries because of the similar

preferences. HLL is one of the top companies exporting FMCG goods from India. An

expansion of horizons towards more and more countries would help HLLgrow its consumer base

and henceforth the revenues. Opportunity in Food Sector - The advent of modern trade has

opened up greater opportunities for HLL to diversify its brand and strength its food division. It

could look at introducing products from its parents stable like margarines and could
28
 also look at expanding its Knorr range of products. Well-placed to take advantage of future

FMCG Growth – HUL reach out 80% of 207 million households in the country through

various brands. It has a very well-defined product portfolio spread across many product

categories. Penetration levels for some majorCategories like skin-cream (22%), shampoo (38%),

toothpaste (48%) and processed foods, continue to remain low offerings but great growth

opportunities products.

Threats

ITC has reduced its dependence on the cigarettes business - Contribution of the core

business in revenues has come down from 87% in FY99 to 70% in FY05. Over a period of five

years, ITC has extended its presence into areas like foods, retailing, hotels, greetings, agro,

paper, etc. These are businesses that can give it growth impetus in the long run. With ITC

gaining momentum in each of these businesses, it is turning into a consumer monolith, and

hence, the greatest threat to HLL's Business. SSKI India has gone on to say, "they maintain Out

performer on ITC with a price target of Rs. 2200, while our under performer call on HLL remains

unaltered (price target of Rs. 160)."

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 CHAPTER 6

METHODOLOGY OF DATA COLLECTION

Methodology of Data Collection

The Data for this project was collected through Primary and Secondary sources.
PRIMARY DATA:

It is essential to collect PRIMARY DATA to make sample survey. A successful and the most popular

technique of data collection is through a questionnaire, thus a questionnaire was framed and distributed

manually among different people who are residing in the CHATTISGARH region.

SECONDARY DATA:

DATA COLLECTION TOOL:

I have collected all the information with the help of Internet, Journals and Secondary source.

SAMPLE PLAN

Units- People residing in the Chhattisgarh region.

Size- 43 respondents.

NALYSIS OF DATA

Two preliminaries should be followed for analyzing the data:-

1. Editing

2. Classifying

.
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CHAPTER 7

ANALYSIS AND FINDINGS

1. Do you keep products of HUL in your outlet/shop?

a).Yes 88 b). No 12 .

2. Why don’t you keep the products of HUL in your shop or why did you stop
keeping its products?

a). erratic supply 4

b). lack of demand 2

c). low margin 2

d). no supplier 3

e). don’t know about the company 1

37
2. From whom do you purchase your product?

1). Distributor 25

2). Dealer/ Agent 40

3). Agency 18

4). Wholesaler 17

38
3. How do you rate the delivery process of the distributor/dealer?

a Excellent 25
b Above Average 33
c Average 38
d Below Average 4
e Extremely Poor 0

39
40
4. Are you satisfied with the distributor/dealer behavior?

Yes 68

No 32

41
5. Are you satisfied with the delivery of the goods supplied by distributor/ dealer?

Yes 71

No 2

42
6 Are they providing you adequate supply of goods? Yes
76
No 24

7 Is the distributor taking the damages/ compensation regularly?

43
Yes 78

No 22

44
8 What is the mode of payment to the distributor/ Dealer by Retailer?

Cash 62

Credit 24

Cheque 14

45
 9. Are they providing you any discount on cash payment?

Yes 52

No 48

Are they providing you any discount on cash payment?

53

52 52

51

50
Yes No

49

48 48

47

46
1
1
0. Any extra benefit for the increment of the sales given by them?

46
Windows Display 75

Long term sales plan 20

Canopy 5

Any extra benefit for the increment of the sales given by them?

20
Windows Display Long term sales plan Canopy

75

47
1. Can agents regularly make aware you about the new products of HUL regular or not?

Yes 72

No 28

48
FINDINGS

1. 88% of distributer keep HUL product in their outlet.

2. 25% of retailor purchase our product from distribute.
40% of retailor purchase our product from dealer or agents.
18% of retailor purchase our product from agencies. 17%
of retailor purchase our product from wholesaler
3. 68% of retailor are satisfied with our distributer or dealer behavior.
4. 71% of retailor satisfied with the delivery of goods supply by distributer /dealer.
5. 76% of dealer providing adequate supply if goods
6. 52% of dealer providing cash discount.
7. 72% of distributer provide information about new launch of HUL products.
8. Majority of 33% of retailor do not keep the stocks due to low margins.

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 CHAPTER 8 RECOMMENDATIONS

Recommendations

 HUL should serve channel partners and customers by replacing damaged products

continuously.
 HUL should improve the response time and try to deliver products on time.
 HUL should encourage to the dealer to provide cash discount.
HUL should increase the quality of packaging of their product to decrease the

damages.
 Launching for several sales promotional schemes for existing wholesaler and

distributorsinstance, it has started the ‘Vijeta – Rista jeet ka’ scheme last year to provide

a platform for the wholesaler and HUL to grow the business by earning points and

redeem them.

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 CHAPTER 9
CONCLUSION

With the study of the topic we can know about the distributor relationship with the retailers of the

largest firm in retail Sector are:

HINDUSTAN UNILEVER LIMITED.

With the study it can be easily known how the retailers are been selected HINDUSTAN UNILEVER

LIMITED (Super value store) and what the terms and conditions regarding the selection of the

retailers and what are the benefits being provided to the retailers and what are the various benefits

being provided to the retailers in order to increase their sales.

The company is making there strategies regarding the customer and the various product assortment

being provided to the retailers and whether the distributor is helping the retailers in managing the

demand of the retailers and also the sales agent behavior and delivery man behavior affects the sale of

the retailers as well as the distributor.

So, my study is visualize the distribution channel of the HINDUSTAN UNILEVER LIMITED in rural

areas and they say that retailers liked

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 ARTICLES:
WEBLIOGRAPH
Y
Books:-

C R Kothari (Research Methodology)

Websites:-
www.hul.com
www.google.com

Magazines & Newspapers:-

Business World Economic Times The Times of India

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