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PROJECT AT GLANCE
Name of the Unit : BALAK SALES AGENCY
Address : “Deep prakash”
23/35, new jagnath plot,
Rajkot – 360001.
Year of Establishment: 1931
Constitution : A Public Ltd. Multinational Co.
Dealership of : Hindustan Lever Limited
Head office : Mumbai
Type of Product : [1] Home & personal care products[2] Food & Beverages
Personnel : Workers -41000
Managers -1550
Operations in India : spread across 70 + locations in India.
Its operation involves 2000
suppliers & 7000 stockiest & agents.
Competitors : Palmolve, Nirma, Godrej, Emami.
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INDEX
No Name Page No.
1 Introduction 3
2 History & Development 4
3 Achievements 8
4 Corporate Purpose 9
5 Social Responsibility 10
6 Products 13
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INTRODUCTION
In today’s modern world, we see many different products coming into the market, some products going outof the market, sales of some products going up where as
sales of others going down & so on. There are numerous
ranges of multifarious products available in the market.
There are so many giant industries and companies
manufacturing a series of products.
One such company is HINDUSTAN LEVER
LIMITED. Hindustan lever limited is one of the most
famous companies in India. In today’s domestic market
Hindustan lever limited has captured the major share. It is aknown fact that Hindustan lever limited is a multinational
company. Hindustan lever limited is particularly famous for
different types of soap, cosmetic items and detergents.
I got my training in BALAK SALES AGENCY,
Which is the dealer of this company. I received necessary
information from Mr. Prakash R. Mehta who is the proud
owner of Balak Sales Agency. He provided me information
about history, production & marketing mix.
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HISTORY & DEVELOPMENT
The Indian industries are moving rapidly on the path of change, development and innovation. The company knowntoday as Hindustan lever limited began its operations a
hundred year ago. It was engaged in the import, distribution
& sales of soap and later on other detergents. Food
manufacturing facilities were set up in 1930.
In the year 1956 Hindustan lever ltd came into beingthrough a merger of
Two lever brother India limited
Hindustan vanaspati mfg co. ltd.
United traders limited
During the last 2 decades, major diversification programmers as well a capital investment in backward areas
are undertaken. All through this period the company hascontinued to invest in and strengthen it selling &
distribution system.
The 1998, sunlight soap was introduction in India.
After sunlight Dalda, pears, lifebuoy, lux soap, vim etc.were introduced in India. In 1955, 65% of management in
lever industries were Indians.
In the year 1991
Lifebuoy plus, breeze sandalwood, surf ultradetergent launched.
In the year 1992
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• Dab gram soap unit commissioned.
• HLL was recognized by Govt.of India as
Star trading house in exports.
In the year 1993
• Hindustan lever’s largest competitions Tata oil
co. joined hands with Hindustan lever w.e.f. 1st
April 1993. Merger was ultimately accomplished
in December 1994.• Launching of Vim Bar
In the year 1994
• Nepal lever limited formed in which Hindustan
lever acquired 80% equity stake.• 50:50 joint ventures between Hindustan ever
and US based Kimberlerg–Clarck Corporation.
New venture named Kimberlerg Clarck Lever
Ltd. Formed to marked haggis diaper & kotex
feminine care products. Factory set up in Pune
in 1995.
•
Hindustan lever introduced walls.
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In the year1995
• A 50:50 joint venture between Hindustan lever
limited and Lakme Ltd.• Brooke bond A1 launched.
In the year 1996
• Merger of Group Company. Brooke bond Lipton
India ltd. With Hindustan lever ltd.• Joint venture with Lakme Ltd. Started operation
on 1st January 1996.
• Introduction of branded Aata.
• Launching of Surf Excel.
In the year 1997• Set up of international research laboratory in
Banglore.
• New regional innovation centers come up.
In the year 1998
• Ponds India ltd. Merger with Hindustan lever ltd.
W.e.f.1st January, 1998.
• HLL acquired 50% equity in Lakme Lever Ltd.
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In the year 2000
• HLL acquired 74% stake in modern food
industries ltd, the first public sector co. bedisinvested by the govt. of India. The company
has celebrated its Diamond jubilee. Mr. S.M.
Dutta Chairman (1991) enlightened the spirit by
ushering the following graceful words. “The
history of Hindustan lever ltd in not a history
so much as retelling of a spirit that had
permitted every steps of this company. It’s atribute and record.”
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ACHIEVEMENTSOF HINDUSTAN LEVER LIMITED
In the year of 1992, Hindustan lever ltd. Wasrecognized as ‘star trading house in exports”
The Forbes Globle ranked HHL as the world’s
household product company.
The eastern economics review has been selecting HHL
as “India’s o.1 co. in overall leadership.”
The marketing strategy & distributions channel of
HHL has also been ranked 1st.
OF BALAK SALES AGENCY
Achieved glorious result in Arjun Award contest-
Saurashtra Zone – 1996.
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CORPORATE PURPOSE
To meet the everyday need of people everywhere – toanticipate the aspirations of customer & to respond
creatively & competitively with branded products &
services, which raise the quality of life.
To bring the wealth of knowledge & international
expertise to the service of local customers-A RULY
MULTI LOCAL MULTINATIONAL.
HLL’s long term success requires a total commitmentto exceptional standard of performance & productivity,
to working together effectively, to embrace new ideas
and learn continuously.
To believe that to success requires the highest standard
of corporate behavior toward employees, consumers &the societies & world in which we live.
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2. social responsibility toward the consumers
Although marketing is about meeting needs, wants and
preference of the consumers up to the mark, understandingcustomer’s and wants is not always a simple task.
Some customer have needs of which they are fully
conscious or sometimes the customers become confused
when faced with multiple products to choose. Customer’soriented thinking requires the company to define customer
need from the customer’s point of view because ultimately
“customer is the king of the market.”
Company gives response to the customer’s need or
what they really need. The key to professional marketing is
to understand the customers real better the competitors can.
3. social responsibility towards the employee
There are many reasons, which make an employee
dissatisfied on the part of the company. One such reason of
dissatisfaction is towards wages, money wages and real
wages. If both are satisfied than a worker can worker can
work enthusiastically.
Hindustan lever ltd provides just & fair amount of
salaried and wages to its employees and thereby provides ahigher level of inspiration. They provide health and medical
facilities not only to employees but also to the family
members. They also provide premiums and bonds andtraveling expenses reimbursement.
4. social responsibility toward the government11
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Government’s major service of revenue is
collection of taxes & duties. Hindustan lever ltd pays taxes
regularly and thus discharge their obligation towardsgovernment.
The company’s reputation based on high
principles of ethics reliability & pride in the products isfairly well known. If the inheritors of that legacy guard
these principles the flag of Hindustan lever ltd will fly as
proud in incoming century as it does today.
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PRODUCTS
HLL mainly deals in 2 types of products
i. home & personal care products
personal wash
- lifebuoy gold
- lifebuoy neem tulsi
- liquid lifebuoy
- lux –ink, white, squabble- lux international
- lux facial wash
- lux shower gel- rexona
- liril
- jai
- dove fabric wash
- surf
- surf excel- rin
- ala
household care
- rin shakti- vim bar
- vim paste
- domex
- vim micro
- magic dish wash- raid mosquito coil & mats
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hair oil & creams
- sunsilk
- Vaseline hair tonic
Skin care
- Vaseline
Perfumes
- rexona active
- rexona cotton drive
ii. food and beverages
a) tea
b) coffee
c) fruit products
d) staple foods- Annapurna salt
- Annapurna aata
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MARKETING MIX
Marketing is a comprehensive term; it includes all
resources and a set of activities that facilitate the flow of goods & services from product to consumers. To plan outmarketing activities and to provide better facilities we have
to select specific market target in from of market segments
or sub division of market. The marketer formulates a
combination of a number of devices or types of marketing
activities that are co-ordinate into single marketing
programmed to reach a particular target or market segment.The combination of those marketing methods or devices is
known ad the marketing mix.
A successful marketing strategy must have a marketingmix as well as target market for which the marketing mix is
prepared. The elements that make up marketing mix are 4
and they are as under;
I. Decision on product or service
II. Decision on price
III. Decision on promotion
IV. Decision on place or distribution
The success of company will be assorted to only by
buying the right product linked with the right promotion atthe right price & in the right place. What is right is to be
declared by the customer. The decision on one element can
also affect the other elements because the marketing mix is
changed as per change in environmental force.
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In the simplest manner, the basic marketing mix is the
blending of 4 inputs or submits which forms the marketing
system. The 4 inputs are also known as the 4ps of marketing
mix. They are;
1) Product mix
2) Price mix promotion
3) Promotion mix
4) place mix
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Following design shows the area of marketing mix
One thing should be noted that 4ps represented the
seller views the marketing tools available for influencing
buyers report.
17
Product mixBrand
Style
Colour
Design
Product line
Package
Warranty
service
Price mix pricing
pricing policy
basic price
terms of credit
discount
allowance
Marketing
Strategy
Marketing mix
Focus on the target
Market
Promotion mix personal selling
advertising
publicity
sales promotion
dealers aids
consumer aids
Place mixdistribution channel
wholesaler
retailer
mercantile agents
physical distribution
transport
warehouse
inventory
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Lauterbarn suggested 4cs corresponding to 4ps. They
are as follows:
1. products : customer needs and wants
2. price : cost of the customer
3. place : convenience
4. promotion : communication
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INDEX
No.
Name Page no.
1 Introduction 20
2 Product variety 21
3. Colour 22
4. Designs 22
5 Feature 23
6 Size 247 Qualities 25
8 Brand name 25
9 After sale service 26
10 Product width 26
11 Product line 26
12 Conclusion 28
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INTRODUCTION
The product is the most tangible and important singlecomponent of the marketing programmed. The product policy and strategy is the corner stone of a marketing mix.
Without a production there is the nothing to distribute,
nothing to promote and nothing to price.
“A product is anything that can be offered to a
market for attention, acquisition, use or consumptionthat might satisfy a want or a need. It includes physical
product, services persons place, organization and ideas.”
- Philip kotler
Product is a vehicle by which a company provides &
drives consumer’s satisfaction. It is the engine that pulls the
rest of the marketing programmed. If the product fails tosatisfy consumer demand, no additional cost of any of the
ingredients of the marketing mix will improve the product
performance in the market place.
Product mix is the heart of marketing mix. To the
marketer products are building blocks of marketing plan.
Good products are key to market success. The marketer
takes products decisions first and these decisions are centralto other marketing decisions such as price, promotion and
distribution.
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A product is the sum total of physical, economic,
social and psychological benefits. Marketing must define
their market in terms of production function - what the
consumers expect from the product. Thus, the product mustcompile the customer’s and wants.
The product mix contains the following point:
A.Product variety
B.Colour
C.DesignD.Feature
E.Size
F. Quality
G.Brand name
H.After sales service
I. Product width
J. Product lineK.Product consistency
1. PRODUCT VARIETY
Product variety includes the number of products
produced by the company. Different products may satisfy
similar or different needs. Therefore, the marketer has to
make his strategy carefully in order to satisfy the needs of particular segment of customers.
In the case of Hindustan lever ltd, there are numerous products; Hindustan lever ltd is a leader in home and
personal care products and food & beverages, all of which
makes Hindustan lever ltd India’s largest packaged mass
consumption goods (pmcg) company.21
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2. COLOUR
Colour is one of the product. By using different colour
combination, customers can be attracted. It is used to
stimulate the demand of products. Not only has this but thecolour also helped to enhance the beauty of the product.
As Hindustan lever ltd offers a variety of product,
colour in each product is different and attractive. Foreg.HLL research center has developed the rich, creamy
VSSELINE INTENSIVE CARE BODY LOTION, which
contains the natural goodness of milk cream and the deepnourishing values of vitamin E. As it contains milk, the
colour of this product has also been kept white & sky.
3. DESIGNS
It reflects the outlook of the product. It is the
totality of feature that deflects how a product looks &
function in terms of customer’s requirement. Incompetition, it will offer one of the most potential ways to
differentiate and position a company’s product and service.
Design is particularly important in making and marketing
durable equipment retail services and packaged goods from
the customer’s point of view, a well designed product would
be pleasant to look at and easy to open install, use, repair &
dispose of. The designer has to consider all the above facts
while designing the product.
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One very attractive of HLL is “pond’s talcum powder.
The covering i.e. the packaging tin has got an eye-catching
design. So far as PONDS is concerned there are so many
types. Following are the most common ones.
I. PONDS DREAM FLOWER WITH FLORAL
EXTRACTS shows pink- white colour combination
& flower drawn on the tin.II. PONDS MAGIC WITH 12- HOUR FRAGRANCE
shows purple white colour combination and butters
and stars drawn on the tin.
4. FEATURES
The term feature refers to choose inherent
characteristic of the product, which makes it different and
unique from other products. A feature has the power to
switch up the consumer from product. So, the company
has to become innovative in adding new features to its products.
So far as HHL is concerned it includes innovative
feature almost in it every product.
For e.g. the recent product improvement is Lifebuoy
Neem Tulsi, which has got the herbal feature of Tulip &
Neem.
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6. QUALITY
Quality is the pre requisite to market leadership.
Industry with low quality products cannot run longer.
Consumers do not want cheap quality but they want valuefor money. They are ready to spend more for high quality
so the firms will have to seriously examine their product
quality.
One of the corporate practices of HLL is quality
policy. HLL is very much concerned about the quality of its
products and has a separate quality functioning term.
7. BRAND NAME
A brand name is a name, symbol or design or a
combination of these, intended to identify the goods or
services of one seller or group of sellers and to differentiate
them from those of competitors. Branding is the best means
to capture and return the consumers demand in acompetitive market. The marketer creates brand equity,
brand loyalty and brand image for its product only through
branding.
Thus it is one of the most effective & competitive
tools and in a way represents A FACT IN THE CROWD
STRATEGY. In taking brand decision the firm ha to
consider the target market; cultural influence on the marketand role the brand will play in its business strategy.
Over the past 70 years, HHL has introduced about110 brands. It focuses on 30 power brands, most of which
have become market leaders and household name in the
country.
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8. AFTER SALES SERVICE
After sales service is an important aspect of
marketing transaction. It covers repairs, spare parts &maintenance. Marketing research emphasizes the
importance of after sales services in the marketing
campaign. After sales services is normally for big
appliances and huge equipments.
Though after sales services are carried out by
machinery industries, HLL is not far back from it. At the back of every product cover, HLL mentions that if you (i.e.
customer) have any quires write us at so and so address.
9. PRODUCT WIDTH
Width in the product mix refers to the number of
product line marketed by the firm.
HLL provider a wide range of products to its
customers. It includes home and personal care products,
food and beverages and cosmetics items.
10. PRODUCT LINE
Product line consists of different products that are
closely related to each other in a sense that they satisfy a particular class of needs or are used together, as are
distributed through the same channels, or process common
physical and technical attributes.
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CONCLUSION
Thus, product mix is the heart of any successful
marketing strategy. Product mix planning is largely theresponsibility of the company’s strategic planner. Acompany’s product mix has a certain width, length, depth,
and consistency. These 4 dimensions of the product mix
provide the handles for defining the company’s product
strategy.
The company can expand its business in 2 ways byadding new product warranty to each product and finally
by pursuing more product line. The product mix of any
company should be such that all the facilities and features,
which a consumer demands, must be gracefully met. The product mix should be such that it is beneficial to the
producer as well.
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INDEX
No.
Name Page no.
1 Introduction 30
2 Pricing Objective 31
3. Pricing Policy 32
4. Factors Affecting Pricing 32
5 Price List 33
6 Discount And Allowances 347 Credits Terms 34
8 Price Sensitivity 35
9 Government Policy 35
10 Pricing Method 36
11 Types of Pricing 36
12 Conclusion 37
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INTORDUCTION
Pricing decisions have strategic importance in any
enterprise. It is the only element in marketing mix,accounting for demand & sales revenue where other elements are cost factors. To a manufacturer, price
represents quality of money received by the firm or seller.
To a consumer, it represents sacrifice and hence his
perception of the value of the product.
Pricing is equivalent to the total product offering. Thisoffering includes a brand name, a package, products
benefits, and service after sale, delivery, credit & so on.
From the member’s point of view, the price also covers the
total market offering i.e. the consumers are also purchasinginformation through advertising, sales promotion, personal
selling & distribution methods that has been adopted. The
consumer gets these values and also covers their costs. Wecan now define price as the money value of a product or
services agreed upon a market transaction. We have a king
of price equation, where
Money (Price) = Bundle of expectation or satisfaction
Companies handle pricing in a variety of ways. In
small companies’ price are set by top management where asin large companies pricing is typically handled by a separate
division.
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The pricing mix should cover the following points: -
1. Pricing Objective
2. Factors affecting pricing3. Pricing policy
4. Price list
5. Discount & allowance
6. Credit terms7. Price sensitivity
8. Govt. policy
9. Pricing method
PRICING OBJECTIVE :-
To take decision regarding the price is most difficult
task for manager. A firm must set a price a price for the
first time. When the firm develops or acquires a new
product, when it introduces its regular product into a newdistribution channel or geographical area and when it
enters into a new contract work.
Thus, every marketing planning involves a pricing
decision. Therefore all marketing planners must make
accurate & planned pricing decision. The company has
some definite idea about what it wants to accomplish
with its particular product.
a) To achieve target return of investment.
b) To stabilize the price.
c) To maintain or improve target share of market.d) To meet competition.
e) To prevent competition.
f) To maximize profit.
g) To maintain an image.31
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2. PRICING POLICY :-
Pricing is an important element in the marketing mix.
Arrival at the right selling price is essential in sound
marketing mix. Price policies provide the generalframework within which the price decision can be made.
Price policies are guidelines to carry out pricing strategy.
Price policy must change and adopt themselves with the
changing objectives and changing environment.
Balak sales agency does not have any pricing policy,
because it is dealer & the company fixes the final price of the product for both dealer & retailers. It fixes commission,
transport charges, other expenses etc.
FACTORS AFFECTING PRICING: -
There are various factors affecting price. The marketer
has to know the firm’s cost function and the influence of external environment variable like competitor’s reaction and
government policy, besides knowing how demand varies
across different price levels.
Hindustan lever limited considers a number of factors
while deciding upon the price. The factors include:
a) Price of competitors b) Production cost
c) Govt. excise
d) Customers’ demand
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These four factors play an important role in deciding
pricing. Cost is the most important factor to be taken into
consideration while setting the price of the base of deciding
the pricing. The next important factor is the govt. taxes. If the govt. taxes are to be paid more, then the prices of the
product will also increasing accordingly. While customer’s
demand and firms cost function serve to provide the
boundaries of price decision, environmental forces tend tohave an upward or downward involving effect of the price.
PRICE LISTPrice list proved very helpful to dealers, retailers &
consumers. They become aware of the maximum price
limit. The companies have to orient & circulate price list
periodically among the dealers. The price list of every
company is reprinted from time to time depending on the
changes like technology, tax, rebates etc. price list forms an
internal part of the teamwork of the company. It is astatement, which shows the future, profits indirectly.
Hindustan lever limited prepares price list at the time
of budget every year. If there are any changes taking place
in the price then price list is reprinted & circulated.
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5. DISCOUNT AND ALLOWANCES
Discount and allowances are price concession offered
to traders or buyers in the form of deduction from the price
list or from the amount of bills or invoices. Manycompanies are also ready to grant discounts, allowances &
special terms to their dealers and customers that they may
feel to realize how title profit may be made. Company
should measure the cost of granting each discount or allowances against its impact on marketing the sale. They
should than establish better polices as to what should be
granted to customer in bidding for their business. There arevarious types of discounts & allowances like cash discount,
functional discount, seasonal discount, quality discount,
advertisement allowances, window display amt, trade in
allowance etc.
Hindustan lever limited allows quantity discount to its
dealer. To customer, it gives seasonal discount, buy one getone free scheme, 20% off at Diwali time, Dove Special
Offer, Etc.
6. CREDIT TERMS: -
It refers to the rules & regulations in the form of an
agreement between the producer and dealers or producers
and consumers in relation to credit facilities available from
the company. Depending on the policy of the managementof the company, credit terms may remain the same or
different from consumer to consume. Credit terms change
over a period of time. In today’s market it is a fact that eachcompany has to give a short or long-term credit. Then only
it can expand & sustain its market in cutthroat competition.
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Hindustan lever limited gives cash & credit facilities
to its customers but mostly they prefer cash payment.
7. PRICE SENSITIVITY: -
This is one of the customer’s behavior that
comforts the marketer. Price sensitivity is the change in
behavior of customer due to price change. The marketer hasto perform the task of knowing the customers who are
highly price sensitivity.
In this company price sensitivity is less because of diversified products. Price sensitivity is low if the buyer has
difficulty comparing two alternative buyers are less pieces
sensitive where the expenditure on the product is how
compared to the total cost of the end products.
8. GOVERNMENT POLICY: -
The government’s fiscal policy also contributes
towards the pricing decision. Here the company has to
consider taxes, customs and excise duties on the product of the firm. If the government increases the taxes and excise
duties, the price of the product also increases. Even if the
firm wants to reduce the end price to the customer to
generate demand, it may not be able to do so mainly
because of the government policy.
Thus, price mix receives more attention of the manager
because it is much more important in marketing mix.
Therefore the decision relating to prices usually appears at
the center stage. Price is such a tool, which can attract more
customers. It is reasonable with best quality. Price mix plays a critical role in the operation and the management of
the business unit.35
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9. PRICING METHOD: -
Cost demand and competition underline the different
pricing methods that a firm may accept.
Hindustan lever limited adopt the demand oriented
pricing method. In the long run the best pricing policy in a
competitive market is the market-based method of pricing.
It is safer to follow the process of import competitors whodominates the market such a price policy will prevent price
war and assure normal profit.
10. TYPES OF PRICING: -
Companies usually don’t set a single price for the
product or service, but refers variation in geographically,
purchase timing, purchase frequency etc. There are different
types of pricing, which are as under: -
1) Discretionary or differentiated pricing2) Discounted pricing
3) Promotional pricing
4) Product line pricing
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CONCLUSION
Thus in nutshell price mix is interpreted to mean,
“Money value received against exchange of goods or services.”
If also indicates buyers intensity of desire to purchase
also. In other words it means the factor at which buyers are
willing to pay for a product keeping in view its utility.
The pricing are to be determined very carefully
keeping in view different factor like market conditions,demand, supply, economic environment, etc.
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INDEX
No.
Name Page no.
1 Introduction 39
2 Advertising 41
3. Advertising Media 44
4. Sales Promotion 47
5 Position of Sales Promotion 49
6 Personal Selling 507 Publicity 52
8 Conclusion 54
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INTRODUCION
Promotion is a term form Latin, which means “move
from one end to another.” It is a communicative activitywhose main object is to pursue customers to accept ideas, products & service. If the company has super product, best
package and also fair price, the people will not buy its
product until they are not informed. Thus, promotion is
persuasive communication to inform potential customers of
the existence of product to persuade and convince them
these products have want satisfying capabilities.
Promotion is responsible for awakening and
stimulating consumer demand for product. It can create and
stimulate demand capture demand from rivals and maintainsdemand for product even against keen competition. It is true
that nothing can be sold and nothing can make money
without some means of promotion.
So, promotion also plays a vital role in marketing mix,
promotion is the process of marketing mix. Promotion is the
process of marketing communication involving influence.
All the marketing communication must be planned as part
of total system not as independent pieces.
The promotion mix includes four totals they are: -
1. Advertisement
2. Sales promotion
3. Personal selling
4. Publicity
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All these tools have one dimension in common i.e.
they are all communication a message to customer “Buy
Me”. Promotion is the process of marketing communication
to inform, persuade, remind & influence consumers or usersin favor of the product or service. It is said that in a
competitive market, without promotion nothing can be sold.
In essence, promotion is the spark plug of our
marketing strategy. It is not enough to communicate ideas.
Promotion persuades and convincing the buyer & influenceshis/her behavior to take desired action. Promotional efforts
act as powerful tool of competition providing the cutting
edge of its entire marketing program.
Promotion as an element of marketing mix has three
objectives: -
a) Information
b) Persuasion
c) Reminding
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Support to personal selling
Advertising can move the prospect nearer to the point
of purchase under favorable atmosphere. Salesman’s job iseasier and simple. Actual closing of sale is thus facilitated
by advertising, selling cost are reduced incidentally. It
should be noted that advertising and salesmanship are really
complementary and in no way competitive tools of promotion.
Brand patronage
In the long run, effect of advertising on brand and
campaign may be of great importance. The advertising
programme can aim at consumer awareness and attitudes.
Buyers may be induced to purchase. If the trial is
satisfactory, consumer may stick with the brand. Thus,
advertising tries to create and retain brand preference and brand loyalty, we can have advertising relevant to each
stage, in the buying progress.
Immediate buying action
Advertising may attempt to obtain immediate buying
action. For, instance, mail order advertising, direct action
retail advertising, price deal offers, last chance offers arespecial advertising persuading prospects and securing
prompt actions. Direct mail is the usual medium for
coupons, samples and other form of direct actionadvertising.
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Dealer support
National or big firms advertising extensively &
intensively to support dealers & distributors so that they canassure accelerated distribution. Advertising alone can create
mass markets for products, which are intrinsically sound
and can easily the consumers need and desire. Mass
marketing brings about reduction in the cost of productionas well as lot of distribution. Advertising is a powerful
promotion tools to establish & retain brand loyalty and even
stored patronage provides the product itself does not suffer from quality deficiencies; errors in designs or other
handicaps and the retailers do not have deterioration in their
customer service.
Create & Extend demand
“Advertisement is two edged weapon”. Itcreates demand for products and services and it also help to
maintain and extend demand. When new products,
developed products or improved products are launched in
the market, consumers are encouraged through advertising
to buy more of the product. Thus, advertising is the quickest
& most efficient way to reach the market.
Counteract competition
In the present world of service competition, a firm
cannot escape the responsibility of spending on advertising.When a competitor launches a new advertising campaign,
all other firms of the same industry are expected to follow
the same action with new aggressive campaign of their own.
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ADVERTISING MEDIA
Advertising is said to be a system of information and
the various means through which information is passed onform producer to consumers are termed as advertisingmedia. In a competitive market, a producer or manufacturer
of goods and services has to inform the consumers and
persuade them to buy his products. To serve this purpose,
the service of outside agencies is called for. Obviously“advertising is a tripartite relationship” between the
producers, consumers and the advertising agencies.
The most brilliant and original advertising ideas will be
wasted if they are not presented through the right media. It
is important for achieving the objectives of marketing. “An
advertising media is means or vehicle of delivering a
definite message”. It is a means through which an
advertising message or information is passed on to the prospective customers, readers, viewers, listeners, or
passerby. Example of media is newspapers, magazines,
radio, television, direct mails, posters, films, catalogues etc.
There are different advertising media. They can be
classified into indoor, outdoor, postal, display and special
media. Each division has sub divisions, which are shown, in
the chart.
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CHARTS SHOWING DIFFERENT ADVERTISING
MEDIAQ
To serve the above-mentioned objective and to obtainthe fruits by delivering all the benefits, advertising is the
only way to reach the customers at minimum cost and
maximum benefits.
The company can advertise the products by taking the
help of its own advertising department or by advertisingagency. The agency’s major role is purchase of media time
and space besides it is directly responsible for development
of all advertising copy and of the commercial.
There are various tools which are used to advertise the
product or service like print media, direct mail, outdoor
media, broadcast media, transit media and other form likedemonstration, exhibition etc. newspaper & magazines at
national levels and they also advertise on T.V. or different
channels ZEE, SONY, DDI, etc. they take the help of
advertising agency.
45
PRESS ADVTG.
Newspaper
Magazines &
Journals
OUTDOOR ADVTG.
Posters
Boards
Electric Display
Sandwich Board
Business Terms
& Trains
Sky Advertising
Others
DIRECT MAIL
Circular
Business Reply
Envelops, cards
Price List
Catalogue
Folders & Booklets
Personal Letters
Others
MISC. ADVTG.
Radio & TV
Cinema & Slides
Fair & Exhibitions
Loud Speakers
Demonstration
Posters & Telegraph
Dept.
Others
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SALES PROMOTION
The fast growing Indian market, increasing
competition in market, the maturing and the standardizationof product puts a pressure on the marketer to be innovativein his strategy. In this situation sales promotion helps to
motivate the consumers and indirectly increase the sales.
Sales promotion is an important instrument in
marketing to lubricate the marketing efforts. It is referred to
promotional activities other than personal selling,advertising and publicity, which stimulate the consumer
purchasing & dealer effectiveness. It includes display,
exhibition and showroom demonstration, free samples,
coupons, premiums, contests and various other non-recurring selling efforts. It is a plus ingredient in the
marketing mix; where as advertisement and personal selling
are essential and basic ingredients in the marketing mix. Itacts as a connecting link covering the gap between
advertising and personal selling. It is not merely a luxury or
a fashion. It has been came a necessity.
Usually, sales promotion programmed are primarily
short term in nature and designed to quickly stimulate sales.
It provides incentives to buy. Its objectives are as follows:
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A good presentation must satisfy 4 main objectives;
1. It must be complete that means it must cover
every point, which is likely to influence the prospective buyer.
2. It must be clear & sound, must not have
misunderstanding or vagueness in the prospects
mind.3. It must remove competing by providing that the
salesman’s product is definitely superior and is
the only product that will satisfy prospects wants.4. It must win confidence of prospects that
salesman’s statements are true and the salesman is
honestly trying to help the prospect.
At the time of using sales promotion company must
establish objectives, select a tool to develop the
programmed to reflect the programmers to implement andcontrol the programmers & evaluate the results. It can
arouse enthusiasm; create a buying mode or spark of
immediate reaction from customers, dealer and the firm’s
salesperson. But only sales promotion is not effective tool,
advertisement or personal selling effectively must support
it.
HLL has available the benefits of sales promotion.They prefer the following mode to promote their sales
S - Smilingly
A - Attentively
L - Loyally
E - Enthusiastically
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POSITION OF SALES PROMOTION
Sales promotion refers to activities other than personal
salesmanship, advertising and publicity which stimulateconsumers purchasing, dealer effectiveness e.g. Display,exhibition and showroom demonstration, free samples,
coupons, premiums and various other nonrecurring selling
efforts not in the ordinary routine.
It is plus ingredient in the marketing mix whereas
advertising and personal salesmanship is essential & basicingredients in the marketing mix.
In short, sales promotion is a bridge or connecting link
covering the gap between advertising and personal
salesmanship the two wings of promotion.
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SALES PROMOTION
(BRIDGE)
PERSONAL
SELLING
ADVERTISING
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PERSONAL SELLING PROCESS
A salesman is one who practices the profession of
selling. One can learn about selling & salesman just by
thinking about definition of personal selling.
“The process affecting the transfer, the profit too buyer
and seller of goods & predisposed to come back to the seller
for more of the same.”
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Pre- sale preparation
Prospecting
Pre approach
Approach
Sale presentation
Objections
Close
The follow up
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Why personal selling
We know that salesmanship is creative, persuasive and
educative process. It aims at providing services to buyers. Ithelps in winning the buyer’s confidence.
HLL believes that personal selling is necessary
because
In the modern world, it is time to go to customer.
To stay in competition, it is necessary to adopt
personal selling so that more efficient and effectiveservices can be provided to customer as compared to
competitors.
Adopting powerful tool of personal selling can reducecustomer’s unawareness.
The today’s world, market by complex technologies
and multiple choice, both product and sales and service
outlet the customer is increasingly becoming dependent on
the sales person. The customer is waiting an answer to the
question “why yours” and “why not “your competitors
product. The customer wants to the sure that he or she is
getting value for his or her money. Finally he/she wants to
be reassured that whenever service is required, the
salesperson will be there. In other words, the salesperson
that provides competitive product, information to thecustomer, helps the late to apply the product in his or her
situation and also reassure the customers on prices &
services.
Thus, it is a two-way communication. Sales personal
services as the company’s link to the customer and sell
products to many of its customer, which in turn is profitable
to the company.51
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PUBLICITY
In literacy sense, publicity means dissemination of
information about a company or a product by personal or non-personal means and it is not directly paid by theorganization. The organization is not identified as the
source of information. Publicity refers to an appeal made to
a mass people by any media. Thus, it constitutes a mass
approach. It involves securing space in all media read
viewed by a company’s for the specific purpose of assisting
in meeting the sales goal.
Publicity can be define as, “the only form of
commercially significant news about a product, an
institution. A service or a person published in space or radiotime that is not paid by the sponsor”.
From the above definition and meaning it is obviousthat ‘Advertisement ‘ is the message published while
“Advertising” is a programmed or it serves as activities
necessary to prepare the message and get it to the intended
market. Another point to be noted is that advertisement is
different from publicity. In the case of advertisement, the
public can identify the advertiser or the sponsor. The
advertiser pays for the advertisement. But in case of makes
publicity the business which is benefited from the publicitymakes no payment for it. Also the public cannot understand
who is behind such publicity.
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In publicity the major tools are mainly direct publicity
that is to send out description literature to the selected
buyers regularly. Fairs and exhibitions, one of the major
medias now used all over the world is another tool for promoting sale of customer goods as well as industrial
goods and high technology products, machines, plants &
equipment transport & mining equipment thus, publicity
media like posters, pamphlets, firms, radio, T.V., directmailing, demonstration, fairs & exhibitions, meeting,
conferences etc. may be arranged all together or one by one
as the case may be.
HLL publish its product with the help of posters, T.V.,
pamphlets etc.
Thus, marketing communication & promotion decision
are important as they help to move the product from
manufacture and to the consumption point. The relativeimportance of this element in the promotion is dependent in
the nature of proud market, overall marketing strategy and
the product life cycle stage besides buyers’ characteristics.
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CONCLUSION
In nutshell, promotion mix is simply the procedure inwhich any steps are taken for the purpose of obtaining or increasing sales. Often promotion mix refers to selling
efforts that are designed to support advertising and personal
selling.
As the promotion mix largely affects the profitability o
f the company and is a very crucial procedure the companymust prepare, maintain and develop an effective sales
promotion program in sales promotion of Hindustan Lever
Limited, following points are included: -
1. Size of incentive to offer
2. To decide the duration of offer
3. To determine the budget and4. Finally to implement
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INDEX
No
.
Name Page no.
1 Introduction 56
2 Distribution Channel 57
3. Physical Distribution 62
4. Organizational Responsibility for
Physical Distribution
68
5 Conclusion 69
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INTRODUCTION
Place mix is also called distribution mix. In themarketing field through which goods are sent, services are
flow or moved from producers to consumers, a proper
channel of distribution should be selected, so that the
products of the company can easily reach to the target
customers. The decision regarding whether the product is to
be marketed through marketer or retailer or through sole
selling, agents etc. should be taken carefully because
distribution rates are critical in nature as they affect the
reliability of the firm and its producer also the decisionaffect the market share of the firm and its producer also the
decision affect the market share of the firm. Following arethe major topics to be studied.
• Distribution channel
• Physical Distribution
In today’s economy there are many kinds of middlemen like wholesaler, retailer, dealer, facilitators,agents, brokers, sales force etc. Thus channel members
right from the producer up to the customer are interrelated
and thus it becomes a total distribution system. Channel
should be managed efficiently & efficiently & effectively.
Physical distribution looks after physical handling of
the goods assuring maximum customer’s service. It aims at providing delivery of right goods at the right time and at theright place to the right consumers. These activities cover
order processing, handling of goods, packaging,
warehousing, transportation, inventory control & customer
service, Old middlemen performs these functions and they
assure putting the product within an arms length of
customers desire & demand.56
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DISTRIBUTION CHANNEL
Most producers work with marketing intermediaries to
bring their product market. The marketing intermediariesmake up a marketing channel also called a trade channels or distribution indicates routes or paths through which goods
& services flow from the producer to the customers and it
includes
• Importance of distribution channel
• Channel levels
• Coverage
Marketing institution considered as channel
components are
All kind of agent middleman
such as wholesalers & retailers.
All kinds of great middleman
such as commission agents, brokers, warehousekeepers & so on.
The route or channel includes manufacturer & the
ultimate consumer as well as intermediaries. These
components are linked in the channel system by one or
more marketing flows such as transfer of title, physical
involvement of merchandise, transmission of marketing
information and the flow of money in the form of payment
of prices and other dues. The channel members right fromthe producer to the consumer are interrelated and we have
the total distribution system, which is responsible for
distribution of goods and services in order to satisfy in order
to satisfy consumer needs or desires.
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A.Importance of distribution channel
Why would a producer delegate some of the selling job
to the intermediaries. The delegation means relinquishingsome control over how and to whom the products are sold.
The producers appear to be placing the firms dissolving in
the hands of intermediaries. But producers do get several
advantages by intermediaries.
Hindustan Lever Limited uses intermediaries to
increase their efficiency in the marketing goods widelyavailable & accessible to target market through their
contacts, experience, specification & sale of operation.
Intermediaries usually offer the firm more than what it can
achieve on its own.
Making the product available to the customer is the
most convenience way in a function which only amiddleman can perform. Imagine a situation where no
middlemen exist, the cost of obtaining the product will be
very high. Further, there is also inconvenience which will
have to go through just obtain our requirement directly from
a manufacturer.
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B. Channel Levels
One of the important decisions that the firms have to
often take is the no. of channel system crates different levelof sales and costs. Once firm choose a marketing channel, it
must usually remain with it for a substantial period. The
chosen channel will significantly affect in the marketing
mix. In today’s economy most producers don’t sell their goods directly to the final users. Between them there are
some intermediaries who perform a variety of functions and
bears a variety of risks profits. These intermediaries makeup the marketing channel. Hindustan Lever Limited has 2
major channels of distribution.
1. C & F.A. System (i.e. Clearing and Forwarding
Agent) system
2. Wholesaler System
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1) C & F.A. System
2). WHOLESALER SYSTEM
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FACTORY
DEPOT (C & FA)
STOCKIST (RS) REDISTRIBUTION STOKIST
RETAILERS
CUSTOMERS
FACTORY
DEPOT (C & FA)
(RS) REDISTRIBUTION STOCRIST
RETAILERS
CUSTOMERS
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C.coverage
The term coverage means the spread of the area of
distribution of the company’s product. The coverage of themarket depends upon the distribution policy of the
company. The company initially wishes to cover smaller
area and it may wish to expand its horizons. The other
companies may think different as per their strategies.
HLL has spread across its operations in majority parts
of India including more than 3500 towns & 70000 rural
outlets.
D.indirect coverage
As said earlier, the company gives equal importance to
distribution in rural area also over the past few decades.
HLL has supplied to its rural customers directly as well as
indirectly – a wide range of product. The company believes
that in spite of the high rate of urban population growth, the
rural market offers opportunities, which are vast and are
relatively untapped.
Unlike in urban areas, there is a indirect distribution in
rural areas.
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PHYSICAL DISTRIBUTION
The marketing process is not complete simply by
creating super product and by creating a customer byaggressive salesmanship. Delivering the product to theconsumers at the right time and at the right place is an
equally important function of marketing this vital function
is called physical distribution. In simple language physical
distribution means “the process of delivering the product
to the user or consumers. Promptly, safely and in time.
Physical distribution involves mgt. pf flows of rawmaterials and finished products from the point of origin to
the point of consumption to meet the consumer’s need at
profit.
The major components of physical distribution are.
Order processing
Warehousing
Inventory management
Transportation
Importance of physical distribution
The ingredient of marketing mix, such as product, price and promotion constitute the step of marketing while physical distribution is considered half of the marketing.
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Order serving time can act as a competitive advantage
in the marketing mix. Customer is primarily interested in
prompt, punctual, safe & reliable delivery of service. Order
processing affects the customer service level in two ways.
1. It affects recording of time
2. It affects the consistency or uniformity of
delivery timeYour customer is interested much in the consistency of
delivery time i.e. assured delivery within a fixed period.
Buyers tend to shift their order to suppliers who can providesuperior order processing service. The firm has a standard
procedure for handling order, granting of credit invoicing
and collection of accounts. If there is delay in the execution
of the order or errors commission in the dispatch of goods it
would result into customer dissatisfaction. It will lose the
goodwill of the company.
B. Warehousing
The word storage means holding the stock of
goods for relatively longer period as the goods are not
immediately in demand. Warehousing involves more than
storage. Warehousing perform many of the usual function
of wholesalers, e.g. breaking bulk, dispatch of smaller
consignment to retailers, holding the stock of retailers,equality the goods flow to retailers, proving market
intelligence and many other more changing service of
manufacturer. A full service warehousing is called adistribution center.
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C.Inventory management
Marketing mgt. is directly interested in effective
management and control of inventory, as inventory mgt. is a powerful tool in the process of creation and satisfaction of
customer demand. Inventories are reservoirs of goods held
in anticipation of sales. Inventories are the link; inter
connecting the customer’s order and company’s productionactivity. In fact the entire physical distribution mgt. rotates
around the inventory mgt.
Inventory mgt. is the heart of the game of physical
distribution. Managerial decisions regarding
1. size
2. location
3. Significance is to taken.
In physical distribution system, inventory is
temporary in the form of raw material in process and
finished goods. On an avg. 30% of the total assets of a firm
are locked up in inventory.
According to the sales manager of HLL the
company maintains 1½ months of stock (made up and rawmaterials) to look after problems of storage and ordering at
factory, similarly stockiest and C & F.A. are required to
keep similar level of stocks.
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Inventories are kept to meet market demands
promptly. The inventory costs factors are as follows:
1. cost of marketing goods
2. Cost of holding goods i.e. warehouse expenses,interest etc.
In short, the entire physical distribution mgt. rotates
around the “inventory mgt. inventory mgt. aims at the
following three objectives.
I. Never run out of anything.
II. Never build up a very large inventory.III. Never send out too many small orders for more.
D. Transportation
It is one of the important tools of the distribution
system. To send the product at the right place, at right time
and at the right price, the marketers should be aware of their company’s transport decision. The companies can pipelines.
At the time of taking decisions about it critical such as
speed, frequency, tractability & cist should be considered.
Thus, transport is crux of the problems of physical
distribution.
In HLL the transportation of raw materials to factories
and finished goods to C & F.A. are duties assigned to the
transport department of the company. The “lease out modelwith big transport companies for services after price
negotiations.
Similarly transportation of goods to R.S. in the
responsibilities of C & F.A. who hires trucks and then
transports.
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ORGANISATIONAL RESPONSIBILITIES FORPHYSICAL DISTRIBUTION
In HLL different persons have shared theresponsibilities of physical distribution.
Company salesmen place R.S.’s order at C & F.A.
and oversee the equitable distribution of stocks of
the retail trade from R.S.
The deport managers oversee the equitable
distribution from C & F.A. to R.S. The areas manage places indents of stocks required
by C & F.A. at the factories and follow up.
Thus the location of physical distribution department
with the company is a secondary concern. The important
thing is that the company co-ordinates its physical
distribution & marketing activities in order to create highcustomer satisfaction at reasonable cost.
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CONCLUSION
Thus place mix is last but not the least P of the
marketing mix. It is a marketing term to describe the broadrange of activities concerned with efficient movement of theultimate consumer.
The company should carefully plan and check out
the best place mix after considering the following factors.
a. Company situation b. Product characteristics
c. Market features &
d. Economic environment.
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INDEX
No. Name Page no.
1 Slogans of product 71
2 Celebrities 72
3. Corporate practices 73
4. Various site of hill 74
5 What’s new? 75
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SLOGANS OF PRODUCTS
Pears soap : “ the pyre glycerin soap with tender touch’.Lux : “the first choice of filmstars – lux aur kya”.
lux jo chahe mujhme star jagaye.
Lifebuoy : ‘ lifebuoy hai jahan, tandurasti hai wahan’Liril : “taajgi main tun –liril rainfresh”Jai : “pehla pyar laye jaivan main bahar”
Breeze: “gulab ki pankhdiyon se Bana”.Hamam : “nature way of skin protection-
Hamam”Dove : “Dove is not a soap it contains ¼ th
moisturizing cream”Ponds
Dream flower : “floral extracts”- complete beauty care.
Pond’s magic : “12 hour frangrance – time releaseeffect.”Rexona : “har pal saath nibhaye”.
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CELEBRITIES
Lux : aishwarya rai & rani mukherjeeLiril : priety zinta
Lux sampoo: tabu
Jai lime : amisha patelWheel : sakshi tanwar(T.V. star)Breeze: hiten tejwani & gauri pradhan (T.V. stars)
Breeze (scent): rima lagoo & supriya(tu – tu main –main jodi)
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CORPORATE PRACTICES
Following are the major corporate practices whichHLL follows:
a) Safety & healthy policy
b) Quality policy
c) Environmental policy
d) Code of business policy.
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VARIOUS SITES OF HLL
On internet & e-commerce field also, HLL is not for away. Following are the various sites of it
www.Hll.com.
www.unilever.Com
www.castorword.com
www.pondsindia.com
www.avinceIndia.com www.sunsilknaturals.com
www.surfexcelhaina.com
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What’s new ?
New product arrival Following products are recently introduced by
HLL
• Pears mudbath
• Pears sleepydaughter
• Wheel active
• Wheel active bar • Wheel with power capsules
• Knor annapurna salt
• Ponds sandal talc
• Ponds dream flower magic
• Ponds light N fresh
New project
HLL is launching new products about women in
project shakti. This project is HLL’s initiative to usher
prosperity & up lift the standard of living in rural India.
HLL also has an attachment with Variance Company,
which deals with cosmetic and personal care products, &also which has a wide marketing and distribution network.
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Conclusion
We may conclude that in its entire life time, HLL has been an organization of attracting, moldings and holding thefinest talent in this country to shape a corporation that
stands today for the highest standard of quality, innovation
and the services to the customer and the country.
In the report presented, an attempt has been made to
focus on the marketing mix side of HLL through its R.S.Balak sales agency at Rajkot.
It was an excellent opportunity and I am glad that I
was provided an opportunity to make a project repot onsuch a famous company.
Las but not least, I cannot forget the golden wordsushered by one of the previous chairmen of HLL.