Assignment Assessment Report

Campus: Hyderabad Year/semester 201

Level: ACL-2 Assignment Type
Module Name: Sales Assessor’s Name
Student’s Name: Narendra laxman Reddy Reqd Submission Date
e-mail id & Mob No Dnr.reddy1551@gmail.com Actual Submission Date
Stream PGDBM Submitted to :

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.
Company Introduction to HUL
Hindustan Unilever Limited (HUL) is India's largest Fast Moving
Consumer Goods Company with a heritage of over 75 years in India
and touches the lives of two out of three Indians.

HUL works to create a better future every day and helps people feel
good, look good and get more out of life with brands and services that
are good for them and good for others.

With over 35 brands spanning 20 distinct categories such as soaps,

detergents, shampoos, skin care, toothpastes, deodorants, cosmetics,
tea, coffee, packaged foods, ice cream, and water purifiers, the
Company is a part of the everyday life of millions of consumers across
India. Its portfolio includes leading household brands such as Lux,
Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline,
Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke
Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

The Company has over 15,000 employees and has an annual turnover
of Rs.17, 523 cores (financial year 2009 - 2010). HUL is a subsidiary of
Unilever, one of the world’s leading suppliers of fast moving consumer
goods with strong local roots in more than 100 countries across the
globe with annual sales of about €40 billion in 2009. Unilever has about
52% shareholding in HUL.

Introducing PUREIT into the market

In 2005 HUL come up with water purifier called PUREIT is said to kill
harmful bacteria and virus from the water and it also removes the
suspended organic impurities and pesticides.

Pureit has been launched on a pilot basis through the

company's rural initiative - Project Shakti.

•The company plans to add 2,500 more executives over the next nine
months to Pureit’s existing sales team of 7,500.

•Besides traditional advertising such as television commercials, the

company is promoting the product through non- traditional channels
such as hospitals, clinics, government and non-government bodies and
health care agencies. And it becomes the most advanced in home
water purifier. Price just Rs 2000.

Q1. What sales methods HUL has adopted for selling

pure it?
 By going through the case study I noticed that the sales
method applied by the HUL is direct sales method the main reason for
adopting direct selling method is as they are new with their product
called PUREIT water purifier in market because it is effective and
economic in respect of the products in question. It helps to save
channel costs and a good chunk of advertising costs. It also helps to
remain close to the consumers, service them better and get direct
feedback. And can more profits then most other firms who sell through
the conventional retail stores. The system particularly suits products
that need demonstrations and educating of consumers, and products,
which normally benefits a great deal from the personal interaction
between the customer and salesperson. In particular, direct selling
makes selling in new markets and selling new products easier
compared to conventional marketing.

And With the help of articles I found that even they adopted
the following methods

• Adopted the total productive maintenance (TPM) to meet zero

error, zero loss.
• Focuses on short supply chain for distribution.
• To meet the every need of people every where.

Direct selling method

Direct selling is the sale of a consumer product or service,

person-to-person, away from a fixed retail location, marketed through
independent sales representatives who are sometimes also referred to
as consultants, distributors or other titles. This is also called network
marketing.

Direct selling benefits customers who seek an alternative to

regular shopping methods. Direct selling companies market their
products through the person-to-person method, away from retail
locations, through a network of independent sales people.

Some common types of direct selling methods are

telemarketing, direct mail, and direct response.

• Telemarketing - This is one of the chief direct sales tactics

prevalent today. There are different methods used to get your
sales flowing and also make customers happy to take your calls.
You should be very pleasant and stay on the point while making
your sales pitch.

• Direct Mail - This is marketing conducted exclusively through

mail. Direct mail may vary in format, but usually conforms to
standard mailing requirements. A direct mail package includes a
letter, brochure or even both.
 • Direct Response - This is an advertising technique that urges
consumers to respond in a certain manner, usually to buy a
product, and also provides them the means to do so. A business
reply card is a direct response tool.

Direct selling companies include two types: Single level

marketing (SLM) or Multilevel marketing (MLM).

• Single Level Marketing - Rewards the sellers for their personal

sales activity. They cannot sponsor any other distributorship or
sales personnel. Income comes only in the form of commission or
bonus.

• Multi Level Marketing - In this strategy, the seller recruits

other distributors or sales people, and also receives commissions
and bonuses on the sales they make. Down liners are necessary
to increase the sales force, and thus generate a huge number of
sales.

Some Importance points of direct selling

• Direct selling is a good way to meet and socialize with people.

• we can explain and even demonstrate complex products
• It’s convenient for the customer and easy to bring in other
individuals who need to be involved.
• We can learn more about what the customer wants.
• We can build a personal relationship.
• We can use our selling skills to convince the customer to buy.

. To be a success in sales, we must learn not only the basic

techniques, but also the way these should be applied. It takes
consistent effort, vision and also focus. As we say, when we love what
we will never lose interest; this applies to direct sales. We must believe
in what we are selling and be passionate about it, so that our
customers feel your excitement and are in turn enthused. By truly
caring about our consumer's best interests, we will be able to succeed
in direct sales, and build a group of loyal, lifetime clients.

Q2. What could be the problems or issues in this sales

method?

Direct selling has quite a few drawbacks as well. It lacks

one important merit, which is characteristically present in conventional
retailing, where the consumer visits the retail shop and picks up her
requirement; she has a number of options. In direct selling does not
allow any options. And, there are products, which a consumer will not
in any case buy without comparing rival brands. Since direct selling
offers only one brand, it has a limitation in such a context.

Moreover, although direct selling saves channel costs, commissions

paid to sales persons-cum-distributors amount to as high as 30 or 35%
of the retail price, especially when multi-level marketing model is used.
Also, recruiting, training, motivating and retaining good sales people
most of whom are part timers is also a difficult and expensive task.
Another minus point is that the companies opting for direct selling
cannot sell the products through retail shops.

The logic is that sales mostly result out of the sales persons cum
distributors efforts in developing a clientele for the product and the
rewards thereof should go to them and not to any retail store.
Moreover, only when the channel margins are avoided, can the scheme
be viable. This means that once a firm chooses the direct selling
option, it loses the option of selling through the conventional method.
The firm depends solely on the sales persons and there is no second
route. Thus, there is an additional risk when a company opts for direct
selling.

For direct selling to work, the face-to-face interaction must be capable

of producing a significant value addition to the consumer, compared to
purchasing from a retail shop. Products to which this idea does not
apply may not gain much from the system. Finally, the method will not
be effective when times and circumstances change

Q3.What selling method you would suggest to HUL

going forward?

HUL India’s largest fast moving consumer goods company

(FMCG) With over 35 brands spanning 20 distinct categories such as
soaps, detergents, shampoos, skin care, toothpastes, deodorants,
cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers,
the Company is a part of the everyday life of millions of consumers
across India. Its portfolio includes leading household brands such as
Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline,
Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke
Bond, Bru, Knorr, Kissan, Kwality Wall’s and pureit.

As company into FMCG goods my advice is it’s good to follow

the direct selling method because FMCG selling is unique, It also help
us to build stronger relationships with customers and we can develop
the key factors of products with the given feedback by the customers.
And we get the products personal attention.

Were direct selling provides ideal platform. There are some products
which needs recommendation from others for buying.

For example, most of the health complements are priced above

Rs.500 and people won’t take risks in their health as these products
may lead to side effects. In these cases, when a consumer is convinced
about the product, then they accept at that price.

Direct Selling is the best way of marketing for many products. Because
we, the Indians usually won’t say ‘No’ to a person who’s coming to our
home to show/demonstrate a product and direct selling create
awareness about the product as well as the brand. After a point of time
these brands may go for premium positioning in retail outlets.

For example, products like pureit, that require demonstration to

convey the finer points of their operation are ideal for direct selling
because a knowledgeable salesperson can personally conduct that
demonstration for every customer. Some sources say that direct selling
generally market products for which there is an established demand.
But PUREIT is a clear exception for this statement. They entered into
direct selling with products which are altogether new to the market at
that time. Nowadays all FMCG Goods is going for advertisements.

Further we can have difference approaches towards different

segments. Many sources said that the people in urban and metros can
be convinced easily when we compare with rural people. Rural people
are sceptical and they are not aware of many products. But the rapid
growth of the companies like RCM, HUL etc is proving it otherwise.

There are some important points that not only HUL but all
FMCG companies should kept in mind to make the direct sales
method affective.

• Encourage the direct sales force to obtain new customers

through a customer referral program. Add incentives to the team
by offering cash, gifts, gift certificates or any other item your
business can afford to increase the amount of referrals. This can
be accomplished by a survey type of postcard that the sales
team can mail, hand out, email or personally deliver to current
customers.

• Use a direct sales force to attend festivals and other seasonal

celebrations locally to find new customers and get the word out
about us, and our services, products and company. Offer
samples, flyers, brochures and any other literature or information
we can that will help the sales team meet new customers and to
allow potential customers to learn more about the company and
products. An individualized approach will help potential
customers remember how helpful our direct sales force team
was the next time they need our product.
 • Use a direct sales force to increase your business’ online
presence through social network sites that are becoming
increasingly popular as a way to reach new and existing
customers. Track the results of this marketing method by
providing some type of survey card at our place of business that
asks customers how they learned of us or our products. Give a
gift or other incentive to the salesperson that brings in the most
customers through a social network site.

• Gather our direct sales force weekly either in person or via

conference calls to review present tactics and marketing plans,
results and to make any necessary adjustments early on. Use
these meetings to motivate and encourage the team for the best
results.

Conclusion: I conclude that Hindustan Unilever ltd. Is a leading

FMCG company in India and from last three consecutive years has
shown accelerated growth in FMCG portfolio. Customers in India are
also spending more in FMCG as their standard of living is growing. HUL
has placed itself successfully in the position of market leader in FMCG
products. Though there was some downfall in sales and profit of the
company in the beginning of this decade but after that HUL has shown
considerable rise in both sales and profit. The future of the company is
also looking bright as FMCG market in India is still expanding and so
we can safely conclude that HUL will be able to secure its number one
position in FMCG product.