1

CHAPTER 1
INTRODUCTION
The rural market offers a big attraction to marketers. Distribution is one of the most
important variables in the marketing plans of most consumer goods manufactures. It is estimated
that there are over a million market intermediaries distributors, super-stockists, wholesalers,
transporters and retailers who are involved in the distribution of a variety of consumer goods all
over the country. Marketers use this network to access nearly 5100 cities and towns and over half
a million villages. The present study aims to assess the level of satisfaction of consumers with
regard to the Fast moving consumer goods distribution system in the rural markets.
RURAL FMCG DISTRIBUTION SYSTEM
Distribution channels play a pivotal role in marketing by performing a number of vital
distribution functions. Firms rely mostly on their marketing channels to generate customer
satisfaction, and to achieve differentiation over competition. The major area of concern for
companies is to make their products available in the remotest corners of the 6 lakh villages in the
country. This goal is not easy to achieve, and the major companies are incurring huge costs to
make their products to available in the 3.5 million rural outlets. The average monthly ale per
village shop is less than Rs 5,000/-, which restricts the variety and range of products stocked.
Since a significant portion of the sale is on credit, it puts most village shops in a self-limiting
sales cycle. The study done by Kashyap confirms the fact that despite the same products being
available in the village shop, 58 per cent of the villagers prefer to buy these from a Hat because
of better price, quality and variety. In a study conducted by Industrial Credit and Investment
Corporation of India , it was found that only 40 per cent of the shops in small towns have
electricity, while in feeder villages, this figure was 11 per cent. Shops in towns were located on
rented premises, while in interior villages in 88% of cases; the shops were located on owned
premises and lacked electricity. Over two-fifths of the retail outlets stocked 8-9 standard product
categories. It was found that three-fourths of the outlets that stocked 8-9 product categories kept
four items or less in each category, while one-fourth had 5-6 items in each category. The total
2

number of items stocked in retail outlets was about 50 in interior villages and 115 in feeder
villages.
RURAL CONSMER BEHAVIOUR
In the past, rural consumers purchased most of their requirements from nearby towns.
However, in recent times, a shift has been seen towards purchasing locally. This change in
consumer purchase behavior has important implications for the rural marketer. There is a need to
access retailers in towns and larger villages and promote products there, so that the products that
are purchased locally can reach smaller retail outlets in villages. Studies suggested that
promotion by the retailer supplement that effort at creating brand knowledge in rural markets. A
promotion announcing the benefits of a products or brand along with distribution efforts is
observed in rural markets in the category. Customer satisfaction is essentially the culmination of
a series of customer experiences or, the net result of the good ones minus the bad ones. It occurs
when the gap between customers expectations and their subsequent experience has been closed.
NEED FOR THE STUDY
Rural consumers are moving away from unbranded products to branded ones. Therefore
marketers have to promote their brands and also ensure that their brands live up to consumers
expectations. Dealers in the district towns and villages retailers play a vital role in the
movements of products to remote are therefore manufactures have to keep constant touch with
them
SCOPE OF THE STUDY
The Indian rural market with its vast size and demand base offers great opportunities to
marketers. Two-thirds of countries consumers live in rural areas and almost half of the national
income is generated here. It is only natural that rural markets form an important part of the total
market of India. Our nation is classified in around 450 districts, and approximately 630000
villages which can be sorted in different parameters such as literacy levels, accessibility, income
levels, penetration, distances from nearest towns, etc.
3

The success of a brand in the Indian rural market is as unpredictable as rain. It has always been
difficult to gauge the rural market. Many brands, which should have been successful, have failed
miserably. More often than not, people attribute rural market success to luck. Therefore,
marketers need to understand the social dynamics and attitude variations within each village
though nationally it follows a consistent pattern.
GENERAL OBJECTIVES
To study the important of rural distribution effectiveness of Fast moving consumer goods
of HUL company
SPECIFIC OBJECTIVES
Study of distribution channel of Hindustan Unilever Limited in rural market
Market survey of different retailers who provided the Hindustan Unilever Limited
products to the end consumers in rural market
To assess the level of satisfaction of rural retailers with regard to fast moving consumers
goods distribution system
To identify the major distribution problems associated with Hindustan Unilever Limited
To find out the ways of improving the effectiveness of distribution channel
To suggest the best possible distribution channel








4

RESEARCH METHODOLOGY
RESEARCH DESIGN
Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
In this research project researcher can take Descriptive Research for collection and analysis of
Data.
DESCRIPTIVE RESEARCH
Descriptive research includes surveys and fact-finding enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. The
main characteristics of this method are that the researcher has no control over the variables; he
can only report what has happened or what is happening.
TARGET POPULATION
Target population for this study is selected rural areas of Tiruvannamalai District .The target
areas for this study includes various selected villages retail outlet of Tiruvannamalai District.
SAMPLING TECHNIQUES
Convenience sampling has been considered for drawing the sample size
CONVENIENCE SAMPLING
Convenience sampling is typically only justified if the researcher wants to study the
characteristics of people passing by the street corner at a certain point in time, for example. It can
also be used if other sampling methods are not possible. The researcher must also take caution to
not use results from a convenience sample to generalize to a wider population.
SAMPLE SIZE
The questionnaire was administered 100 respondents out of which 100 valid questionnaire were
considered as sample size for study purpose.
5

METHOD OF DATA COLLECTION
Primary method of data collection with the help of structured close ended and open ended
questionnaire have used for this study.
PRIMARY DATA
The data, which is being collected for the first time and it, is the original data.
















6

CHAPTER II
REVIEW OF LITERATURE
Pravin Kumar Bhoyar and Asha Nagendra(2012) say that rural consumers were
highly satisfied with the availability of food items and were satisfied with toiletries and
cosmetics though the specific products/brand were not available under all categories, which just
solved their purpose without specific brand and they were least bothered about good/bad
availability products. These observations are in agreement with those of saran pant, who studied
that there are two distinct segment consumers in rural markets. One set of rural consumers who
cannot read, write and understand with ease. They have their own method of identification of
products and communication with retailers for instance ask erra sabbu (lifebuoy)
Anjan Chakravarty(2011) say that the rural market is seeing a new transition with the
development of agriculture, which is the principal occupation for the rural masses the
governments support has led to the adoption of modern agriculture technology as a result, the
purchasing capacity of the rural people is increasing with exposure to education and various
media, rural people are changing their consumption pattern. This article presents the findings of
an empirical study regarding the consumption pattern of rural people
Bakkappa and Deepali Walavalkar(2010) say that the product width in the case of fast
moving consumer goods companies products is adequately fast moving consumer goods
companies products is adequately vast, and facilitates easy application of the joint concept brand
proliferation is high in their sector, and product differentiation is not easy. Price therefore,
becomes an important determinant of final choice from among the brands in the consideration
which are below often to influence consumer buying behavior. Where product differentiation is
resorted to, the difference is often set well above the contest
Shukla Priteskumar (2012) say that over the past few years rural India has witnessed an
increase in the buying power of consumers accompanies by their desire to upgrade their standard
of living rural India with its traditional perception has grown over the years not only in terms of
income, but also in terms of thinking sector is the fourth largest sector in the economy. This
sector touches every aspect of human life. The fast moving consumer goods companys products
7

now realize that there is a lot of opportunities for them of enter into the rural market. It has a
strong multinational companys presence and is characterized by a well-established distribution
network, intense competition between the organized and unorganized segments and low
operational cost. At present, urban India accounts for more than 66% of total fast moving
consumer goods companies consumption with rural India accounting for the remaining 34%
however rural India accounts for more than 40% consumption in major fast moving consumer
goods companies categories such as personal care, fabric care etc.
Selva Kumar, et al (2013) say that rural India accounts for more than two million
consumers or 70% of the Indian population and 50% of the total FMCG market. The working
rural population is approximately 400 million. Average citizen in rural India has less than half
the purchasing power of their urban counter parts. Still this market has immense potential
enticing fast moving consumer goods companies to take different steps to capture it. Hindustan
Unilever Limited is the largest player in the industry and has the widest market coverage;
television reaches 65% of the urban consumers but only 35% of rural consumers. Alternatives
like wall painting and special packaging become an expensive.
Kumar Pardeep (2013) say that rural marketing in India is still at infancy stages and
faces the various types of problems with respect to marketing, product designing and positioning,
pricing, distribution and promotion. Todays corporation most understands the rural market on
different context to widen their business horizon. To expand their market and to exploiting the
opportunism available in the rural areas. The marketer must understand the growing complexities
of the rural market and makes strategy for the proper mixing of marketing mix. Hence it is
proposed that this study assess the various dimension of Indian rural markets. The main aim of
this study is to observe the potential of Indian rural markets and find out various problems being
faced by rural markets.
Sankar,Dev Narayan and Pareek(2013) say that almost all large consumers goods
companies operating in Bhutan actually operate through their Indian offices since India has a free
trade agreement with Bhutan has a unique rural market structure and the 4ps( product,place,price
and promotion) and 4As (Awareness,Availability,Affordability and Acceptability) of rural
marketing are also governed by unique regulations formulated by the government of Bhutan.
Bhutan is 69.1% rural and rural marketing becomes the most important subject for marketing in
8

Bhutan. In fact if Indian census benchmarks were applied to the Bhutan demographics, the
percentage of rural population would be beyond 90%.
Chattopadhyay,Subho Sarkar and Ak (2011) say that the rural market having
suffered due to the lack of sufficient exposure to the developmental process, remain at the lower
rung in the process of development as compared to its urban counterpart. However, a substantial
proportion of the global population resides lacking sophistication conceals in itself a tremendous
potential for growth. A prober blend of appropriate technology and pragmatic innovation in
business and marketing strategy may make this paper explores the different dimensions of
innovation of or penetration into the rural market and tries to identify a pattern of innovation that
would both enhance the futures.
Hagargi (June 2011) in this study, researcher finds that there is tremendous opportunity
for any company in rural India. But with this companies are facing many challenges in tackling
the rural markets, like to understand the requirement of rural consumers, proper distribution
channels, and effective marketing strategy to give their message across the rural consumers. By
applying some new innovative techniques for the above problem they can make good and can
have greater market share







9

PROFILE OF THE COMPANY
Introduction to Hindustan Unilever Limited
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company
with a heritage of over 80 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, Ponds, Vaseline, Lakm, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe,
Brooke Bond, Bru, Knorr, Kissan, Kwality Walls and Pureit.
The Company has over 16,000 employees and has an annual turnover of around Rs.25,206 crores
(financial year 2012 - 2013). HUL is a subsidiary of Unilever, one of the worlds leading
suppliers of fast moving consumer goods with strong local roots in more than 100 countries
across the globe with annual sales of 51 billion in 2012. Unilever has 67.25% shareholding in
HUL.
PROJECT SHAKTI
Hindustan Unilever Limited will increase the number of Shakti entrepreneurs that they recruit,
train and employ from 45,000 in 2010 to 75,000 in 2015.
India has more than 6,30,000 villages, most of these are 'hard to reach' and offer relatively lower
business potential. Hence, reaching them through the conventional distribution system is a
challenge.
At Hindustan Unilever Limited (HUL), they have always believed in an approach of doing
business which we call doing well by doing well. Project Shakti is a rural distribution initiative
10

that targets small villages. The project benefits HUL by enhancing its direct rural reach and also
creates livelihood opportunities for underprivileged rural women.
Shakti is their initiative that combines social responsibility, sustainability, and business strategy.
Shakti model is very strong and sustainable because it is the best way they can give it back to the
society through supporting our cause of ' empowering underprivileged rural women' along with
making business sense.
Shakti started with 17 women in one state. Today, it provides livelihood enhancing opportunities
to 48,000 women in 15 Indian states and provides access to quality products across 100,000+
villages and over 3 million households every month.
CONSUMERS
HUL is committed to providing branded products and services which consistently offer
value in terms of price and quality, and which are safe for their intended use. Products and
services will be accurately and properly labeled, advertised and communicated.
SHAREHOLDERS
HUL will conduct its operations in accordance with internationally accepted principles of
good corporate governance. They will provide timely, regular and reliable information on their
activities, structure, financial situation and performance to all shareholders.
BUSINESS PARTNERS
HUL is committed to establishing mutually beneficial relations with their suppliers,
customers and business partners. In their business dealings they expect their partners to adhere to
business principles consistent with their own.
COMMUNITY INVOLVEMENT
HUL strives to be a trusted corporate citizen and, as an integral part of society, to fulfill their
responsibilities to the societies and communities in which they operate.

11

PUBLIC ACTIVITIES
HUL companies are encouraged to promote and defend their legitimate business interests. HUL
will co-operate with governments and other organizations, both directly and through bodies such
as trade associations, in the development of proposed legislation and other regulations which
may affect legitimate business interests.HUL neither supports political parties nor contributes to
the funds of groups whose activities are calculated to promote party interests.
THE ENVIRONMENT
HUL is committed to making continuous improvements in the management of their
environmental impact and to the longer-term goal of developing a sustainable business.
HUL will work in partnership with others to promote environmental care, increase understanding
of environmental issues and disseminate good practice.
INNOVATION
In their scientific innovation to meet consumer needs they will respect the concerns of their
consumers and of society. They will work on the basis of sound science, applying rigorous
standards of product safety.
COMPETITION
HUL believes in vigorous yet fair competition and supports the development of appropriate
competition laws. Their companies and employees will conduct their operations in accordance
with the principles of fair competition and all applicable regulations.
BUSINESS INTEGRITY
HUL does not give or receive, whether directly or indirectly, bribes or other improper advantages
for business or financial gain. No employee may offer, give or receive any gift or payment which
is, or may be construed as being, a bribe. Any demand for, or offer of, a bribe must be rejected
immediately and reported to management.
12

HUL accounting records and supporting documents must accurately describe and reflect the
nature of the underlying transactions. No undisclosed or unrecorded account, fund or asset will
be established or maintained.
QUALITY POLICY:
Hindustan Lever Limited considers quality as one of the principal strategic objectives to
guarantee its growth and leadership in the markets in which it operates.
The company is committed to respond creatively and competitively to the changing needs and
aspirations of their consumers through relentless pursuit of technological excellence, innovation
and quality management across their businesses, and offer superior quality products and services
that are appropriate to the various price points in the market as well as to their commitment to
building shareholder value.
The company recognizes that its employees are the primary their of success in its operations and
is committed to training and providing them the necessary tools and techniques as well as
empowering them to ensure broad base compliance of this policy in the organization at all levels.
The company is committed to fulfill its legal and statutory obligations and international
standards of product safety and hygiene and will not knowingly sell product that is harmful to
consumers or their belongings. It will institute systems and measures to monitor compliance in
Order to meet its responsibilities to consumers. The company will maintain an open
communication channel with its consumers and customers and will carefully monitor the
feedback to continuously improve its products and services and set quality standards to fulfill
them. The company is committed to extend its quality standards to its contract manufacturers,
key suppliers and service providers and by entering into alliances with them, to jointly improve
the quality of its products and services. This policy is applicable to production from its own
facilities as well as to production that is outsourced.
The company will periodically review this quality policy for its effectiveness and consistency
with business objectives the company delegates authority and responsibility for dissemination
and implementation of this policy to each Business and Unit Head.

13

1) PRODUCTS OF HINDUSTAN UNILEVER LIMITED AVAILABLE
IN A RETAIL OUTLET

TABLE.1
Frequency Percent Cumulative Percent
Valid Yes 100 100.0 100.0

FIGURE NO.1


Inference:
Out of the total respondents 100% deal with Hindustan Unilever Products.



yes No
Series1 100 0
0
20
40
60
80
100
120
A
x
i
s

T
i
t
l
e

14

2) FROM WHOM DO YOU PURCHASE HINDUSTAN UNILEVER
LIMITED PRODUCTS
TABLE.2

Frequency Percent Cumulative Percent
Valid
Distributor 67 67.0 67.0
Dealer/agent 7 7.0 74.0
Wholesaler 26 26.0 100.0
Total 100 100.0


FIGURE NO.2


Inference:
Out of total respondents 67 respondents purchase from distributors,7 respondents purchase from
dealers, 26 respondents purchase from wholesalers.

15

3) SELECTED HINDUSTAN UNILEVER LIMITED PRODUCTS
AVAILABLE IN A OUTLE
TABLE.3

FIGURE NO.3


Inference
Out of total respondents 100 of them have Hamam soap, 97 respondents have Lifebuoy, 87
respondents have Lux, 92 respondents have pepsodent, 68 respondents have Fair & lovely, 96
respondents have Clinic plus, 74 respondents have Bru, 57 respondents have 3 roses, 67
respondents have 45 Rin


100
97
87
92
68
96
74
57
67
45
0
3
13
8
32
4
26
43
33
55
0
20
40
60
80
100
120
Avilable Not avilable
PRODUCTS Hamam Lifebuoy Lux Pepsodent
Fair &
lovely Clinic Plus Bru 3 Roses
Surf
excel Rin
Available 100 97 87 92 68 96 74 57 67 45
Not
available 0 3 13 8 32 4 26 43 33 55
Total 100 100 100 100 100 100 100 100 100 100
16

4) WHO BEARS THE LOSS OF THE DAMAGED GOODS?
TABLE.4
Frequency Percent Cumulative Percent
Valid
Retailers 14 14.0 14.0
Distributors 80 80.0 94.0
Sales person 6 6.0 100.0
Total 100 100.0


FIGURE NO.4


Inference:
Out of the respondents 14 say that the retailers are responsible for damaged goods, 80 say that
the distributors are responsible for damaged goods, 6 say that the sales person are responsible for
damaged goods


14
80
6
0
10
20
30
40
50
60
70
80
90
Retailers Distributors Sales person
Damaged goods
17

5) PRODUCTS REPLACEMENT TIME ON AN AVERAGE
TABLE.5

Frequency Percent Cumulative Percent
Valid
Within 1-2 days 21 21.0 21.0
Within 3-4 days 56 56.0 77.0
Within 5-6 days 15 15.0 92.0
Within 7-8 days 5 5.0 97.0
Above 8 days 3 3.0 100.0
Total 100 100.0


FIGURE NO.5


Inference:
Out of the total respondents 21% says replacement time is within 1-2days, 56% says replacement
time is within 3-4days, 15% says replacement time is within 5-6days, 5% says replacement time
is within 7-8days and 3% says replacement time is above 8days.

Within 1-2 days
Within 3-4 days
Within 5-6 days
Within 7-8 days
Above 8 days
21%
56%
15%
5%
3%
Replacement time
Series1
18

6) HOW MANY TIMES YOU LOSE SALES IN CASE OF NON-
AVAILABILITY OF GOODS IN A MONTH
TABLE.6
Frequency Percent Cumulative
Percent
Valid
0 times 62 62.0 62.0
1-5 times 17 17.0 79.0
6-10 times 8 8.0 87.0
11-15 times 10 10.0 97.0
More than 15 Times 3 3.0 100.0
Total 100 100.0

FIGURE NO.6

Inference:
Out of the total respondents 62 say that they loss sales in case of non availability of goods for 0
times, 17 say that they loss sales in case of non availability of goods for 1-5 times, 8 say that they
loss sales in case of non availability of goods for 6-10 times and 3 say that they loss sales in case
of non availability of goods for more than 15 times.
19

7) THE MARGIN ON THE COST PRICE THAT RETAILERS EARN ON A
PRODUCT

TABLE.7

Frequency Percent Cumulative Percent
Valid
1-4% 40 40.0 40.0
5-8% 45 45.0 85.0
9-12 11 11.0 96.0
13-15% 4 4.0 100.0
Total 100 100.0


FIGURE NO.7



Inference:
Out of the total respondents 40% say that they earn 1-4% profit margin on a product, 45% say
that they earn 5-8% profit margin on a product, 11% say that they earn 9-12% profit margin on a
product and 4% say that they earn 13-15% profit margin on a product.


0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1-4% 5-8% 9-12% 13-15%
40%
45%
11%
4%
Series1
20


8) THE SUPPLY SUFFICIENT TO MEET DEMANDS IN PEAK SEASONS

TABLE 8

Frequency Percent Cumulative Percent
Valid
Yes 86 86.0 86.0
No 14 14.0 100.0
Total 100 100.0



FIGURE NO.8



Inference
Out of the total respondents 86 respondents say that the company supply sufficient to meet
demand in peak seasons and 14 respondents say that the company does not supply sufficient to
meet demand in peak seasons.


Yes
86
No
14
Supply sufficient to meet demand
21

9) WHAT DOES THE COMPANY DO IN THE PEAK SEASONS
TABLE.9

Frequency Percent Cumulative
Percent
Valid
Increase in stocks 37 37.0 37.0
More frequent supply 7 7.0 44.0
Frequent replacement 8 8.0 52.0
More discount 48 48.0 100.0
Total 100 100.0


FIGURE NO.9

Inference:
Out of the total respondents37 say that the company increases stock in peak season, 7 say that the
company more frequently supply stock in peak season, 8 say that the company frequently replace
stock in peak season, 48 say that the company allows more discount in peak season.

22

10) MODE OF PAYMENT THAT A RETAILER FOLLOWS

TABLE.10

Frequency Percent Cumulative Percent
Valid
Cash 9 9.0 9.0
Credit 78 78.0 87.0
Cheque 13 13.0 100.0
Total 100 100.0


FIGURE NO.10





Inference:
Out of the total respondents 9 say they pay through cash, 78 say they pay through credit,13 say
they pay through cheque.


Cash Credit Cheque
Series1 9 78 13
0
10
20
30
40
50
60
70
80
90
A
x
i
s

T
i
t
l
e

Mode of payment
23

11) THE COMPANY PROVIDING ANY DISCOUNT ON CASH PAYMENT
TABLE.11

Frequency Percent Cumulative Percent
Valid
Yes 46 46.0 46.0
No 54 54.0 100.0
Total 100 100.0

FIGURE NO.11




Inference:
Out of the total respondents 46 say that the company provides discount on cash payment and54
say that the company does not provide discount on cash payment.

24

12) CREDIT PERIOD ALLOWED BY HINDUSTAN UNILIVER LIMITED
TABLE.12

Frequency Percent Cumulative
Percent
Valid
0 days 17 17.0 17.0
1-4 days 22 22.0 39.0
5-6 days 28 28.0 67.0
7-8 days 15 15.0 82.0
More than 8 days 18 18.0 100.0
Total 100 100.0


FIGURE NO.12


Inference:
Out of the total respondents 17% says that credit period is allowed for 0 days, 22% says that
credit period is allowed for 1-4 days, 28% says that credit period is allowed for 5-6days, 15%
says that credit period is allowed for 7-8 days and18% says that credit period is allowed for more
than 8 days
25

13) CREDIT FOLLOWED BY HINDUSTAN UNILEVER LIMITED
TABLE.13


Frequency Percent Cumulative Percent
Valid
Highly Satisfied 24 24.0 24.0
Satisfied 19 19.0 43.0
Neutral 19 19.0 62.0
Dissatisfied 25 25.0 87.0
Highly Dissatisfied 13 13.0 100.0
Total 100 100.0



FIGURE NO.13





Inference:
24 are highly satisfied, 19 are satisfied, 19 are neutral, 25 are dissatisfied and 13 are dissatisfied
with the credit followed by the company.
Highly
Satisfied
Satisfied Neutral Dissatisfied
Highly
Dissatisfied
Series1 24 19 19 25 13
0
5
10
15
20
25
30
A
x
i
s

T
i
t
l
e

Credit period rating
26

14) EXTRA BENEFIT FOR THE INCREMENT OF THE SALES GIVEN
BY HINDUSTAN UNILEVER LIMITED

TABLE.14

Frequency Percent Cumulative Percent
Valid
Windows Display 21 21.0 21.0
Shop Signage 5 5.0 26.0
Gift Voucher 70 70.0 96.0
None of the
above
4 4.0 100.0
Total 100 100.0

FIGURE NO.14


Inference:
Out of the respondents 21 say that they receive extra benefits through windows display, 5 say
that they receive extra benefits through shop signage, 70 say that they receive extra benefits
through gift voucher, 4 say that they dont receive extra benefits.

27

15) THE AGENT REGULARLY AWARE RETAILERS ABOUT THE NEW
HINDUSTAN UNILEVER LIMITED PRODUCTS

TABLE.15

Frequency Percent Cumulative Percent
Valid
Yes 80 80.0 80.0
No 20 20.0 100.0
Total 100 100.0


FIGURE NO.15




Inference:
Out of the total respondents 80 say that the agents aware the retailers of the new products
launched by the company and 20 say that the agents dont aware the retailers of the new products
launched by the company.

28


16) RESPONSE OF EMERGENCY ORDERS
TABLE.16

Frequency Percent Cumulative Percent
Valid
Highly Satisfied 18 18.0 18.0
Satisfied 12 12.0 30.0
Neutral 17 17.0 47.0
Dissatisfied 31 31.0 78.0
Highly Dissatisfied 22 22.0 100.0
Total 100 100.0


FIGURE NO.16




Inference:
18 are highly satisfied, 12 are satisfied, 17 are neutral, 31 are dissatisfied and 22 are dissatisfied
with the response of emergency by the company.

0
5
10
15
20
25
30
35
Highly
Satisfied
Satisfied Neutral Dissatisfied Highly
Dissatisfied
Series1 18 12 17 31 22
A
x
i
s

T
i
t
l
e

Emergency orders
29

17) DISTRIBUTOR RELATIONSHIP

TABLE.17

Frequency Percent Cumulative Percent
Valid
Highly Satisfied 44 44.0 44.0
Satisfied 23 23.0 67.0
Neutral 17 17.0 84.0
Dissatisfied 11 11.0 95.0
Highly
Dissatisfied
5 5.0 100.0
Total 100 100.0


FIGURE NO.17

Inference:
44 are highly satisfied, 23 are satisfied, 17 are neutral, 11 are dissatisfied and 5 are dissatisfied
with the distributor relationship with the retailers.
30

18) SERVICE FREQUENCY
TABLE.18

Frequency Percent Cumulative Percent
Valid
Highly Satisfied 38 38.0 38.0
Satisfied 30 30.0 68.0
Neutral 16 16.0 84.0
Dissatisfied 10 10.0 94.0
Highly
Dissatisfied
6 6.0 100.0
Total 100 100.0


FIGURE NO.18


Inference:
38 are highly satisfied, 30 are satisfied, 16 are neutral, 10 are dissatisfied and 6 are dissatisfied
with the service frequency of the company.

Series1
0
10
20
30
40
Highly
Satisfied
Satisfied Neutral Dissatisfied Highly
Dissatisfied
Series1 38 30 16 10 6
A
x
i
s

T
i
t
l
e

Service frequency
31

19) SALESMANS APPROACH
TABLE.19
Frequency Percent Cumulative Percent
Valid
Highly Satisfied 67 67.0 67.0
Satisfied 20 20.0 87.0
Neutral 8 8.0 95.0
Dissatisfied 3 3.0 98.0
Highly
Dissatisfied
2 2.0 100.0
Total 100 100.0

FIGURE NO.19

Inference:
67 are highly satisfied, 20 are satisfied, 8 are neutral, 3 are dissatisfied and 2 are dissatisfied with
the salesman approach of the company.
32

20) COMPANY PERSONS VISIT
TABLE.20

Frequency Percent Cumulative Percent
Valid
Highly Satisfied 46 46.0 46.0
Satisfied 22 22.0 68.0
Neutral 9 9.0 77.0
Dissatisfied 13 13.0 90.0
Highly
Dissatisfied
10 10.0 100.0
Total 100 100.0


FIGURE NO.20


Inference:
46% are highly satisfied, 22% are satisfied, 9% are neutral, 13% are dissatisfied and 10% are
dissatisfied with the credit followed by the company.
Highly Satisfied
46%
Satisfied
22%
Neutral
9%
Dissatisfied
13%
Highly Dissatisfied
10%
Company person's visit
33

CHAPTER V
FINDINGS & SUGGESTIONS
FINDINGS
100% of the retailers deal with Hindustan Unilever Products.
67 of the respondents purchase goods from the distributors
80% of the respondents say that the distributors are responsible for the damaged goods
during delivery.
56 respondents say that the replacement time is within 3-4 days only 3 respondents say
that the replacement time is above 8 days.
62 respondents say that they dont lose sales in case of non availability of goods in a
month only 3 say that they lose sales in case of non availability of goods in a month.
Only 4% say that they get the profit margin of 13-15% on a product the remaining
receive less than 12%.
86 respondents say that the company supplies sufficient to meet demand at peak seasons.
48 respondents say that the company gives more discount at the time of peak season to
increase the sales
78 respondents say that the company allows credit for payment of bills.
54 respondents say that the company does not provide much discount on cash payment.
Most of the respondents are dissatisfied with the credit period followed by Hindustan
Unilever Limited
Most of the respondents say that they receive gift vouchers as extra benefits for the
increment of the sales given by the company.
80% say that the agents give awareness of the new products introduced by the company.
Most of the respondents are dissatisfied with the response to emergency orders by the
company.
44% are highly satisfied with the distributor relationship of the company.
38% are highly satisfied with the service frequency of the company.
67%are highly satisfied with the salesman approach of the company.
46% are highly satisfied with the companies person visit per retail outlet only 10% are
highly dissatisfied.
34


SUGGESTIONS
The company should allow more credit period to the retailer to satisfy the retailers as in
rural areas the retailers might not be able to pay the amount in huge volume.
The company should give more shop signages to in order to increase the sales of a
product rather than giving gift vouchers to the retailers because visibility is more
important in rural areas as the customers may not be aware of the products in a retail
outlet.
The company should try to improve its response towards emergency orders in order to
sustain with its competitors.
Sales agent who is in rural market should be experience person because they are easily
made relationship with her retailers.
Hindustan Unilever Limited can provide a various new schemes to his retailers for
making potential retailers.














35

CHAPTER VI
CONCLUSION
From the details collected Hindustan Unilever Limited is in a satisfactory manner
towards the perception of the rural retailers. Yet the company has to improve in certain areas in
order to sustain in the market with its competitors. My study is visualizing the distribution
channel of the Hindustan Unilever Limited in rural areas and they say that retailers liked.




















36


CHAPTER VII
BIBLIOGRAPHY
Bhoyar Kumar Pravin and Nagendra Asha (2012) Effectiveness of Fast Consumers
Goods distribution channel,Indian journal of marketing, pp.17-22.
Chakravarty Anjan (2011), Consumer research,marketing mastermind,pp.53-56.
Bakkapa .B and Walavalkar Deepali (2010), Consumer Behaviour,marketing
mastermind, pp.19-21.
Shukla Priteskumar (2013). Research paper,Indian journal of research,vol:II
No.2,pp.49-52.
Selvakumar.M, Maria Jansi and Jegatheesan.K (2013), Market Survey,Facts for
you:pp.10-13
Kumar and Pardeep (2013), challenges and opportunities of Indian rural
market,International journal of marketing studies,pp.161-173
Sankar,Dev Narayan,Pareek and Gagan (2013), IUP journal of management
researchpp.7-28
Chattopadhyay,Subho and Sarkar(2011), IUP journal of business
strategyVol:III,PP.42-52

Internet reference:
www.hul.com






37


APPENDIX

QUESTIONNAIRE FOR HINDUSTAN UNILIVER LIMITED RETAILERS

A STUDY ON DISTRIBUTION EFFECTIVENESS OF HUL PRODUCTS IN RURAL
MARKETS WITH SPECIFIC REFERENCE TO THIRUVANNAMALAI DISTRICT.

Demographics
Retailer Name
Outlet Name
Outlet type
Location

1. A) Do you keep products of Hindustan Unilever Limited in your outlet/shop?
a) Yes b) No
1. B) State the reason for not stocking Hindustan Unilever Limited products in your shop?
-------------------------------------------------------------------------------------------------
2) From whom do you purchase your product?
a). Distributor b) Dealer/Agent c) Wholesaler
3) Which Hindustan Unilever Limited product you have in the outlet?
a)Hamam b)Lifebuoy c)Lux d)Pepsodent e)Clinic plus f)Bru g)3roses h)Surf excel i)Rin
4).Who bears the loss of the damaged goods?
a) Retailers b) Distributors c) Sales person
38

5) What is the replacement time on an average?
a) Within 1-2 days b) Within 3-4 c) 5-6 days d)within 7-8 days e) Above 8 days
6) How many times you lose sales in case of non-availability in a month?
a) 0 times b) 1-5 times c) 6-10 times d) 11-15 times e) more than 15 times
7) What is the margin on the cost price that you earn on a product?
a) 1-4% b) 5-8% c) 9-12% d) 13-15% e) more than 15%
8) Is the supply sufficient to meet demands in peak season?
a) Yes b) No
9). what does the company do in the peak seasons?
a) Increase in stocks b) More frequent supply c) Frequent replacement
d) More discount e) None of the above
10) Which mode of payment do you follow?
a) Cash b) Credit c) Cheque
11) Is the company providing you any discount on cash payment?
a) Yes b) No
12) What is the Credit period allowed by the company?
a) 0 days b) 1-4 days c) 5-6 days d) 7-8 days e) more than 8 days
13) Rate the credit followed by Hindustan Unilever Limited
a) Highly Satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly Dissatisfied
14) Do you get any extra benefit for the increment of the sales given by the company?
a) Windows Display b) Shop signage c) Gift voucher d) Dealer discount e) None of the above
15) Do the agent regularly aware you about the new Hindustan Unilever Limited products?
a) Yes b) No
39

Rate the following on the basis of the give certain factors

Q.NO PARTICULARS
Highly
Satisfied Satisfied Neutral Dissatisfied
Highly
Dissatisfied
16 Response for Emergency Order


17 Distributor Relationship


18 Service Frequency


19 Salesmans approach


20 Company Persons visit