Assignment Assessment Report

Campus: Bangalore Year/semester 2011/2nd semester

Level: ACL II Assignment Type Sales
Module Name: Sales Assessor’s Name Mr. Subramanian
Student’s Name: K.Kishore Kumar Reqd Submission Date 23rd feb
kamisettykishorekumar@gmail.c 23rd feb
e-mail id & Mob No Actual Submission Date
om
Stream Marketing Submitted to : Mr. Subramanian

Certificate by the Student:

Plagiarism is a serious College offence.
I certify that this is my own work. I have referenced all relevant materials.
(Student’s Name/Signatures)

Expected Outcomes Assessment Criteria Grade based Feedback

on D,M,P,R
system
General Parameters
Clarity Clear understanding of
the concept
Analytical Thinking- Ability to analyze the
problem realistically
Research Done- Research carried out to
solve the problem
Formatting & Concise& clear
Presentation- thinking along with
presentation
Subject Specific Parameters
Understanding of the
Clarity
channels of Sales
Ability to analyze the
Analytical Thinking product specifications
and the problems .

Grades Grade Descriptors Achieved Yes/No (Y / N)

P A Pass grade is achieved by meeting all the requirements defined.
M Identify & apply strategies/techniques to find appropriate solutions
D Demonstrate convergent, lateral and creative thinking.

Assignment Grading Summary (To be filled by the Assessor)

OVERALL ASSESSMENT GRADE:
TUTOR’S COMMENTS ON
ASSIGNMENT:

SUGGESTED MAKE UP PLAN

(applicable in case the student is asked
to re-do the assignment)

REVISED ASSESSMENT GRADE

TUTOR’S COMMENT ON REVISED
WORK (IF ANY)
Date: Assessor’s Name / Signatures:
 Assignment on Product wise Selling

1.Study the Case below and answer the following questions:

a. What sales methods HUL has adopted for selling Pure It?
b. What could be the problems or issues in this sales method?
c. What sales method would you suggest to HUL going forward?

“In 2007 I was doing my MBA and staying in a shared flat with two of my classmates, I
used to notice small kiosks near many stations in Mumbai then. All station roads had
these small brown colored kiosks with 2 sales people standing beside them. These brown
colored kiosks had Hindustan Unilever written on them. It had a container type of
equipment. One day I and my friend went to one such kiosk (due to Brand Hindustan
Unilever) and asked what was it all about.
They told us very professionally about this new Water Purifier from Hindustan Unilever.
They kept explaining it and the word Hindustan Unilever was very prominent in their
description.
I was concerned if it was real or fake because:
1) I had not seen any ad for it very unlikely for a Hindustan Unilever product
2) The perception of HUL was of a typical FMCG company dealing with Soaps, oils etc
But a water purifier?
The salespersons showed us all sorts of company documents and authorized letters. They
also said that “Pure it” being an unconventional product, HUL is going for Direct
Marketing Approach in this case. Then they demonstrated the working of “pure it” and
offered us clear and “germ free” drinking water from the purifier.
No advertising, direct approach to customers! I was impressed. We exchanged numbers
and then next day we received a call from them .By evening a guy came to our home for
detailed demonstration and we liked it. We ordered one. Next day itself it was installed at
our home.
It worked well and now I have bought a second one in my new flat where I’m staying
with my family.”

Pureit is the water purifier appliance from HUL. Pureit made its test marketing debut in
2005. The brand was initially launched in Chennai. During the test marketing, the result
was pretty encouraging and the brand was launched nationally in 2007.
The domestic water purifier appliances market is estimated to be Rs 450 crore and is
dominated by Aquaguard from Eureka Forbes. This category was not growing very fast
because of the high cost of the product. The entry level water purifier was costing
anywhere between Rs 5000- Rs10,000.

Pureit is a battery operated purifier made of high-quality plastic and has a storage
capacity of 18 litres. The company uses the following differentiation points against the
main competitor Aquaguard by claiming that the product works without gas/electricity
thus the cost per litre of pure water is very less. More over the brand is priced at a
tempting Rs 2000 which makes it the lowest priced purifier compared to Aquaguard or
Kent.

Pureit is being positioned on the basis of its performance. The brand claims that the water
from the purifier is ' as safe as the boiled water'. By claiming that it purifies water as safe
as boiling water, Pureit is trying to achieve Points of Parity with Aquaguard and Kent
which also claims the same feature. Along with this POP, the brand tries to differentiate
on the following points:
a. No electricity/gas; b. Cost per litre low; and c. Price of the product is also low
Pureit works on different cleaning layers to ensure purity. There is a fibre mesh layer
which removes visible dirt. Next there is a unique carbon trap that filters harmful
pesticides and dirt. The next is the USP for Pureit – “Germ-kill processor” which kills all
the bacteria and virus. Then there is a polisher which gives clear odorless water and a
battery life indicator which tells you when to replace the battery. The product has a
capacity of 9 liters in the upper chamber and 9 liters in the transparent chamber.
According to the product website, the battery lasts for 1500 liters and the replacement
battery costs Rs 250.
As and when the battery life indicator button turns “red” it is understood that the battery
is exhausted. Battery must then be replaced immediately. Till the time the battery is
replaced, the “auto switch off” function in-built in the purifier automatically switches off
the water supply. This ensures that no one drinks water from it that might not be pure
anymore.
Pureit is now being promoted through all media. There are ads in local print as well as
TV. Being the FMCG major, HLL was able to place the product in most of the
supermarkets and key consumer points. The brand uses the tagline " As Safe as Boiled
water'. The brand is mainly targeting households (mothers) which have small kids.

Apart these common above the line promotions, what has struck me was the below the
line promotions that HUL has undertaken for Pureit. A visit to my doctor proved it. There
was a product displayed prominently in his clinic with all necessary brochures and
inquiry forms. The brand is using the influencing power of the medical fraternity to its
advantage. For the doctor, it just means that his patient has access to pure water while
waiting but for the brand this small gesture adds lot of authenticity. HUL has done pretty
good homework on this product. The brand is available in shops and also sold through
direct marketing associates.

Although the low price of this product will help it to penetrate many households, there
are certain issues also. Pureit is a consumer durable that requires after sales support.
When even specialist consumer durable companies are blamed for offering poor after
sales support, can an FMCG company deliver efficient customer service? Another issue
is the battery. Will HUL be able to offer this spare without delay? It is crucial that the
consumer replace the battery at the right time and use this product. A delay in the supply
of battery can cause non-usage for Pureit at households thus causing bad word of mouth.
May be it is because of this fear that HUL in its website tells the consumers to buy an
additional spare battery.
 1. What sales methods HUL has adopted for selling Pure It?

Ans. The method used by HUL for the sales of “Pure it” is direct sales.
The Hindustan Unilever (HUL) has adopted following methods for selling their
Product “Pureit” are Diesel Marketing Approach, On spot demonstration using Kiosks,
Home delivery product marketing, Product display as clinics, Media Promotion.
Hindustan Unilever Pure it water purifier has 4 purification stages like- Pre-filter
purification, activated carbon purification, Germ kill Processor and Unique Polisher. It
has 9 liters of storage capacity. This water purifier does not require electricity. This
maintenance free water purifier Germ kill Battery Kit which is heart of purification
system needs to be replaced after drawing 1500 liters of purified water. This Germ kill
Battery Kit costs Rs 300 plus additional Rs 15 as delivery charges.
This advanced in-home water purifier comes with many unique benefits -
complete protection from all water-borne diseases, great convenience, and unmatched
affordability. This water purifier has 4 purification stages like- Pre-filter purification,
activated carbon purification, Germ kill Processor and Unique Polisher. Pure it’s unique
Germ kill Processor technology kills all harmful viruses and bacteria and removes
parasites and pesticide impurities, giving you water that's as safe as boiled water. What's
more, it doesn't need gas, electricity or continuous tap water supply. It runs on a
maintenance free battery kit that needs to be replaced after drawing 1500 liters of water.
Having this purifier will not only relieve you from fuel cost and effort but also from your
worries about your family's health hazards.
It is probably the most controversial raincoat in India right now. An advertisement
by Hindustan Unilever used a salesman in a yellow raincoat to throw a challenge that if
consumers found a water purifier that could work without running water or power, get
switched off if it is not in use and provide "germ kill," the company would give them Rs.
1 crore

Hindustan Unilever says it broadened the market for water purifiers by creating
Pureit. While it has meant that HUL has already sold three million units of Pureit, it has
not been easy for a company built on selling small consumable products, including soap
and toothpaste, to sell the somewhat bulkier water purifiers. The company uses its
existing franchisees but asks them to set up extra space for its dedicated sales teams and
to keep products known as Safe Water Zones.
 HUL perfected this formula in South India before going national and yet, the
quick ramp-up meant after-sales service found it hard to keep up. But as HUL looks to
enter rural markets, ensuring good after-sales service will be hard.

HUL tried several pilot projects to reach out to villages. It worked with Micro
Finance Institutions (MFIs) to sell and extend credit through them. But a study by social
consulting company, Monitor, found that MFI agents, used to selling loans, found it hard
to transport and sell water purifiers. They also bore the brunt of lapses in after-sales
servicing. HUL may now use MFIs only to extend credit and use its own sales team for
the rest.
 2. What could be the problems or issues in this sales method?
Ans. The problems or issues in the HUL Pure It product sales method are:
• Poor Customer Support
• The response to the customers problems are very poor
• Change of battery
• Worst service & rate
• No response on its customer service
• Irresponsibility towards customer
• Complaints never addressed
• Replacement of Germ kill Battery kit
• Auto switch off when battery is over
• Complaints for sedimentation of moss are seen at the bottom of the
purifier.
 3. What sales method would you suggest to HUL going forward?

Ans. The sales method that I would suggest to HUL is Typical Work Activity. This
activity will depend on the market and setting. In addition, specific responsibilities will
vary according to level of seniority (client contact, for example, will increase with
experience).

Typical activities may include:

• Maintaining relationships with existing customers through regular review visits;

• Visiting potential customers to demonstrate products and gain new markets;
• Acting as a contact between a company and its existing and potential markets;
• Contacting clients by phone to negotiate terms of an agreement and conclude
sales;
• Gathering market and customer information;
• Staffing trade exhibitions and demonstrations;
• Negotiating variations in price, delivery and specifications with managers;
• Advising on forthcoming product developments and discussing special
promotions;
• Visiting retail and wholesale outlets;
• Checking quantities of goods on display and in stock;
• Recording sales and order information and sending copies to the sales office;
• Reviewing own sales performance;
• Gaining a clear understanding of customers' businesses and requirements;
• Making accurate, rapid cost calculations;
• Feeding future buying trends back to employers.