A PROJECT REPORT

ON
“Rural Marketing & Distribution Channel of Hindustan Unilever Limited.”
Submitted to Savtribai Phule Pune University in Partial fulfillment of the requirements for the
Degree of
Master’s in Business Management (M.B.A)
By
Mohit Ajay Mantri
Roll No.
A Study Conducted for the company
Hindustan Unilever Limited
At
Akemi Education Society’s
Akemi Business School
Pune -411057
 CERTIFICATE

This is to certify that Mr. Mohit Ajay Mantri who is a Bonafide student of Akemi Education
Society’s Akemi Business School, Village: Marunji, Pune – 411057, has worked on Project
titled “Rural Marketing & Distribution Channel of Hindustan Unilever Limited” and has
successfully completed the project work in partial fulfillment of the requirements of Savaitribai
Phule Pune University for the Award of Degree of Master’s in Business Management (M.B.A)

This report is the record of student’s own efforts under our supervision and guidance.

Internal Guide Director, Akemi Business School

 DECLARATION

I, Mr.Mohit Ajay Mantri hereby declare that the Project is a record of authentic work carried out
by me during the academic year 2018-2019 and has not been submitted to any other University
or Institute towards the award of any Degree or Diploma.

Signature of the student

 ACNOWLEDEGEMENT

I am deeply indebted to many people for the successful completion of this project.
I would like to take this opportunity and go on record to thank them for their help and support.
I am thankful to the Akemi Education Society’s Akemi Business School, Pune for all the support
provided for this project.
I express my deep sense of gratitude and sincere feelings of obligation to my Project Guide Mr.
Ujjaval More who helped me in overcoming many difficulties and who imparted me the
necessary conceptual knowledge.
I also wish to acknowledge the excellence support of my Company Guide for this
work.
I wish to thank all my teachers and friends too, for their helpful inputs, insightful comments,
steadfast love and support.
 Executive Summary

Rural marketing involves the process of developing, pricing, promoting, distributing rural
specific product and a service leading to exchange between rural and urban market which
satisfies consumer demand and also achieves organizational objectives. It is a two-way
marketing process. It involves the selling of products and services by urban marketers in rural
areas. These include: Pesticides, FMCG Products, Consumer durables, etc. 2. Rural to Urban:
Here, a rural producer sells his produce in urban market. This may not be direct. There generally
are middlemen, agencies, government co-operatives, etc who sell fruits, vegetables, grains,
pulses and others. These include selling of agricultural tools, cattle, carts and others to another
village in its proximity. Features of Indian Rural Markets: · Large, Diverse and Scattered Market:
Rural market in India is large, and scattered into a number of regions. There may be less number
of shops available to market products. · Major Income of Rural consumers is from Agriculture:
Rural Prosperity is tied with agriculture prosperity. In the event of a crop failure, the income of
the rural masses is directly affected. · Standard of Living and rising disposable income of the
rural customers: It is known that majority of the rural population lives below poverty line and has
low literacy rate, low per capital income, societal backwardness, low savings, etc. But the new
tax structure, good monsoon, government regulation on pricing has created disposable incomes.
Today the rural customer spends money to get value and is aware of the happening around him. ·
Traditional Outlook: Villages develop slowly and have a traditional outlook. This is gradually
changing due to literacy especially in the youth who have begun to change the outlook in the
villages. · Rising literacy levels: It is documented that approximately 45% of rural Indians are
literate. Hence awareness has increases and the farmers are well-informed about the world
around them. They are also educating themselves on the new technology around them and
aspiring for a better lifestyle. Diverse Socioeconomic background: Due to dispersion of
geographical areas and uneven land fertility, rural people have disparate socioeconomic
background, which ultimately affects the rural market. Infrastructure Facilities: The
infrastructure facilities like cemented roads, warehouses, communication system, and financial
facilities are inadequate in rural areas. Hence physical distribution is a challenge to marketers
who have found innovative ways to market their products. As part of planned economic
development, the government is making continuous efforts towards rural development. In this
age of liberalization, privatization and globalization, rural market offers a big attraction to the
marketers to explore markets that are untapped. The rural market in India is quite fascinating and
challenging in spite of all the difficulties existing. The potential is enormous. Even though, these
markets have weaknesses they also have tremendous opportunities which should be availed by
the marketers. It is well known that “Markets are created and not born”. The market so created
should be tapped effectively. Indian rural market has a vast size and demand base. Rural
marketing involves the process of developing, pricing, promoting, distributing rural specific
product and a service leading to exchange between rural and urban market which satisfies
consumer demand and also achieves organizational objectives. As part of planned economic
development, the government is making continuous efforts towards rural development. Rural
markets today are critical for every marketer - be it for a branded shampoo or a television. Earlier
marketers thought of van campaigns, cinema commercials and a few wall paintings to entice
rural folks under their folds. Today a customer in a rural area is quite literate about myriad
products that are on offer in the market place, thanks to television. Many companies are foraying
into the rural markets and educating them on newer products and services
 INDEX

Chapter Particulars Page No.

1 Nomenclature & List of Abbreviations
Introduction
2 Objectives of the project
3 Theoretical Background of the Topic
4 Company Profile:
 History of Organization
 Organization of Chart
 Product Profile
5 Research Methodology:
 Methods Used, Sampling Techniques
 Sources of Data
 Data collection
 Tools used for Analysis
6 Data Interpretation & Analysis
7 Findings
 Observations
 Conclusions
8 Learning from the project Benefit to the
Organisation
9 Suggestions/ Recommendations
10 Scope and Limitations
11 Annexure:
 Bibliography
 Questionnaire

Chapter I
1. INTRODUCTION

1.1 RURAL MARKETING INTRODUCTION

Rural Markets constitute an important segment of overall economy. Typically, a rural

market will represent a community in a rural area with a population of 2500 to 3000 people.
Rural marketing is as old as the civilization. Surplus of service and products are exchanged in
earlier days in the barter system. The introduction of currency, transport, and communication has
increased the scope of rural market. Here we’ll discuss the present scenario of rural marketing
especially rural produce, and its importance, current trends, and highlights certain problems
related to rural marketing. Further the improvements which make the rural marketing system
most effective.

INDIAN RURAL MARKET

Marketing may aptly be described as the process of defining, anticipating and

knowing customer needs, and organizing all the resources of the company to satisfy them. In
fact, satisfaction of customer’s needs and wants provides the rationale for the firm’s existence.
Knowledge of consumer behavior, therefore, is vital for a firm to achieve its marketing goals.
The consumer’s behaviour comprises the acts, processes and social relationships exhibited by
individuals, groups and organizations in searching, obtainment, use of, and consequent
experience with products and services. An understanding and knowledge of the motives
underlying consumer behavior helps a firm in seeking better and more effective ways to satisfy
its customers. It helps to select appropriate sales and advertising strategies, and to plan marketing
programmer in a more efficient manner.
The rural market of India started showing its potential in the 1960s. The 70s and 80s
witnessed its steady development. And, there are clear indications that the 21st century is going
to see its full blossoming. In our country, where research on consumer behaviour has been
nominal, not much systematized information is available about the rural consumers. Only a few
enlightened companies, known for their marketing orientation, viz., Hindustan Lever, Philips
India, Asian Paints, Singer and Larsen and Toubro have made concrete efforts in this direction.
But, by and large, we have still to understand the rural buyer, his habits, attitudes and behaviour,
particularly from the marketing point of view.
Many assumptions prevail about rural marketing. For instance, one assumption is
that the rural buyer is not very discriminating. Once he is persuaded to buy a particular product,
he develops a strong affinity for it, and if satisfied, becomes brand loyal. As a result, Indian
manufacturers are generally known to prefer selling fewer items at higher prices than selling
more items at lower prices. A contrary view is that the rural buyer, being suspicious of the
marketer’s hard sell techniques, is quite discriminating, and is not easily persuaded. Yet another
assumption is that the rural buyer is not particularly keen about quality and packaging. Some
other assumptions can be quoted. But, all these need deep probing for arriving at valid and
reliable conclusions. Consumer research, thus, is indispensable for entering the rural segment of
the market.

Percentage distribution of households and income

Area Households Population

Rural 72.6 74.6

Urban 27.4 25.4

All-India 100 100

Rural Population Statistics

Percentage of total
Population Number of Villages
villages
Less than 200 114267 17.9
200-499 155123 24.3
500-999 159400 25
1000-1999 125758 19.7
2000-4999 69135 10.8
5000-9999 11618 1.8
10000 & above 3064 0.5
Total 636365 100
1.2 Introduction of Distribution System of HUL

HUL's products, are distributed through a network of 4,000 redistribution stockists,

covering 6.3 million retail outlets reaching the entire urban population, and about 250 million
rural consumers. There are 35 C&FAs in the country who feed these redistribution stockists
regularly. The general trade comprises grocery stores, chemists, wholesale, kiosks and general
stores. Hindustan Unilever provides tailor made services to each of its channel partners. It has
developed customer management and supply chain capabilities for partnering emerging self-
service stores and supermarkets. Around 2,000 suppliers and associates serve HUL’s 40
manufacturing plants which are decentralized across 2 million square miles of territory.

Distribution at the Rural Area (Villages)

The company has brought all markets with populations of below 50,000 under one rural sale
Organization. The team comprises an exclusive sales force and exclusive redistribution stockiest.
The team focuses on building superior availability of products. In rural India, the network
directly covers about 50,000 villages, reaching 250 million consumers, through 6000 sub-
stockiest.
HUL approached the rural market with two criteria the accessibility and viability. To
service this segment, HUL appointed a Redistribution stockiest who was responsible for all
outlets and all business within his particular town. In the 25% of the accessible markets with low
business potential, HUL assigned a sub stockiest who was responsible to access all the villages at
least once in a fortnight and send stocks to those markets. This sub-stockiest distributes the
company's products to outlets in adjacent smaller villages using transportation suitable to
interconnecting roads, like cycles, scooters or the age old bullock cart. Thus, Hindustan Unilever
is trying to circumvent the barrier of motor able roads. The company simultaneously uses the
wholesale channel, suitably incentivizing them to distribute company products. The most
common form of trading remains the grassroots buy-and-sell mode. This enables HUL to
influence the retailers stocks and quantities sold through credit extension and trade discounts.

Chapter 2

OBJECTIVE OF THE PROJECT

 To the marketing promotional strategy to be adopted is demonstration of product features

and advantages. Print media and posters do not make any impact.

 In spite of this, the common traits of rural consumers are low purchasing power, low
standard of living, low per capita income and low economic and social positions.

 These influencers need to be kept in mind when a marketer decides on rural marketing

 A marketer should aim for communication Television, radio, video and theatre are some
of the traditional media that a rural consumer identifies with.
  The above are some of the factors that differentiate the rural consumer from his urban
counterpart. A marketer has to decide on all the above parameters while designing a
marketing plan.

 Sensitise participants on the nuances of rural marketing environment Develop capabilities

for clearly identifying, complex, real life rural marketing problems in a holistic
perspective. Identify and assess rural market potential for products and services

Chapter 3

Theoretical Background of the Topic

Rural marketing is promotion of a company’s products in the rural markets by using strategies
which differ from that of urban market. The rural market more price sensitive but it has
preference quantity. The term ‘rural marketing’ has gained wider currency in both academic
and corporate world sin India. Business organizations have frequently used the word in their
marketing rhetoric, while, academics have written plethora of textbooks on the subject. This
bears testimony to the growing interest in the phenomenon called rural marketing in various
business schools .However, it should be made clear in the beginning that this phenomenon of
rural marketing is specific to rural marketing The current set of literature and textbooks on
rural marketing does not present any systematic body of knowledge, which can be classified as a
separate stream of inquiry within the marketing discipline. The focus of the literature, mainly
written in the post-liberalization period, is on highlighting the potential of the vast untapped rural
markets and providing description of a few cases of commercial organizations marketing in
rural areas. The literature has uncritically borrowed theories, frameworks, and concepts from the
mainstream marketing discipline, which has stifled the growth of the subject as an independent
field of scholarly investigation. It has reduced rural marketing merely to a context where the
existing commercial marketing knowledge is to be applied. Barring a few brilliant attempts at
constructing a systematic body of knowledge in rural marketing, there is hardly any substantive
work done in the area of rural marketing. In the absence of any theoretical basis of rural
marketing, it cannot claim the status of a separate domain of inquiry or a sub discipline within
the broader marketing discipline. There is an urgent need for building a distinct perspective and a
sound theoretical base for rural .The extant work in rural marketing has used the theories,
models, concepts, vocabulary, and frameworks of commercial marketing. While there should not
be any artificial barriers to adopting concepts and tools from the mainstream marketing literature,
but without a theoretical basis or a perspective of its own, blind adoption of marketing theories
would create an identity crisis for rural marketing and smother the progress of the nascent field.
So far, rural marketing has remained resigned merely to a context for application of commercial
marketing knowledge. As a result, rural marketing has not created its own vocabulary, concepts,
and ideas. The field of rural marketing is yet to gain a wider acceptance of the global academic
community as a field of scholarly research; and it is yet to have its reviewed journal as a
repository of the special kind of knowledge. I foresee no significant progress of rural marketing
as a separate stream of inquiry within the marketing discipline until it finds its
distinct perspective .The development perspective has existed for over half a century now. I
advocate that rural marketing be studied from the development perspective. Rural marketing
should attempt to answer how marketing can be used to enhance the development of a
rural region and its people. Taking this unique perspective, rural marketing will have a scope for
developing it own theoretical base, useful concepts, vocabulary, and tools. Industrial marketing
and services marketing had also faced the similar identity crisis in their growth trajectory
however, these marketing sub disciplines grew to a respectable position today as they could
identify and follow their own distinct perspectives.
 Chapter 4

Company Profile
Hindustan Unilever Limited (HUL) is a British-Dutch manufacturing company headquartered
in Mumbai, India Its products include foods, beverages, cleaning agents, personal care products
water purifiers and consumer goods

HUL was established in 1933 as Lever Brothers Following merger of constituent groups in 1956,
it was renamed as Hindustan Lever Limited. The company was renamed in June 2007 as
"Hindustan Unilever Limited".

As of 2019 Hindustan Unilever portfolio had 35 product brands in 20 categories and employs
18,000 employees with sales of Rs. 34,619 crores in 2017-18 In December 2018, HUL
announced its acquisition of Glaxo Smithkline’s India business for $3.8 billion in an all equity
merger deal with 1:4.39 ratios. However the integration of 3800 employees of GSK remained
uncertain as HUL stated there was no clause for retention of employees in the deal In January
2019, HUL said that it expects to complete the merger with Glaxo Smith Kline Consumer
Healthcare (GSKCH India) this year HUL is the market leader in Indian consumer products with
presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst
others with over 700 million Indian consumers using its products. Sixteen of HUL's brands
featured in the AC Nielsel Brand Equity list of 100 Most Trusted Brands Annual Survey (2014),
carried out by Brand Equity, a supplement Hindustan Unilever's corporate headquarters are
located at Andheri Mumbai.

The campus is spread over 12.5 acres of land and houses over 1,600 employees. Some of the
facilities available for the employees include a convenience store, a food court, an occupational
health center, a gym, sports & recreation center and a day care center. The Campus is designed
by Mumbai-based architecture firm Kapadia Associates.

The campus received a certification from LEED (Leadership in Energy and Environmental
Design Gold is a 'New Construction' category, by Indian Green Building Council (IGBC),
Hyderabad, under license from the United States Green Building Council (USGBC)

The company's previous headquarters was located at Backbay Reclamation, Mumbai at the Lever
House, where it was housed for more than 46 years

HISTORY OF HUL

1. FMCG came into in existence in 1888 when Sun Light soap was firstly seen at
KOLKATA harbor. It was made by Lever brothers in England.

2. After that in 1895 Lifebuoy and after that Lux, Pears and Vim bar.

3. In 1918 Vanaspati was launched.

4. Dalda was launched in 1937.

5. In 1931 Lever brothers made 1st subsidiary in India

6. In 1933 they joint with Hindustan Vanaspati manufacturing company

7. In 1935 they joint with united traders limited

8. All these 3 players mixed together and form HUL in 1957.

9. HUL offers 10% of its equity to Indian public.

10. Unilever holds 52.10% shares and rest is distributed amongst about 360675 individual
shareholders and financial institutions
 11. Brooke bond is present in India back to 1900 and its Red Label band was launched in
1903. In 1912 it joined with lever brothers.

12. Unilever acquired LIPTON in 1972

13. Ponds India ltd is working in India since 1947 and it is acquired by HUL in 1986 by an
international acquisition.

14. Tata oil Mills Company merged with HUL in 1993.

15. In 1996 Tata made 50-50% joint venture for LAKME with HUL and in 1998 it was
completely sold to HUL.

16. HUL made 50-50% joint venture with Kimberley Clark corp. in 1994 as Kimberley clark
lever ltd which makes haggis diapers and kotex sanitary pads.

17. Unilever established its subsidiary in Nepal as NEPAL UNILEVER LTD.

18. In 2002 HUL launched AYUSH ayurvedic soap.

19. In 2004 it came into the water purifier segment and launched PURE-it

20. In 2007 it formally formed as HUL from HUL that is HINDUSTAN UNILEVER
LIMITED

Hindustan Unilever's distribution covers over 1 million retail outlets across India
directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all
retail outlets in India. The company claims that two out of three Indians use its many home and
personal care products, food and beverages. The company has been in controversy for showing
its ads of Fair & Lovely. The ads typically show a dark skinned person failing in life until he/she
applies the cream and becomes fair within a week or so.
HUL Products
Personal wash:- Lux, Lifebuoy Pears, Breeze, Liril, Rexona, Hamam and Moti soaps

Foods:- Kissan squashes and jams, Annapurna salt and atta, Modern Bread,
Knorr soups & meal
Laundry:- Surf, Rin and Wheel

Beauty Products:- Pond's talcs and creams, Vaseline lotions, Fair and Lovely creams,
Lakmé
Bewerages:- Lipton tea, Brooke Bond, Taj Mahal, Taaza, Red Label
Hair-Care:- Clinic Plus, Clinic All Clear, Sunsilk and Dove
Oral-Care:- Pepsodent and Close Up
Deo spray Axe, Rexona
Water Purifier:- Pure it
Dishwasher :- Vim
Ice-cream:- Kwality Wall's

HUL appoints Sanjiv Mehta as its new MD

Mr. Mehta will replace Nitin Paranjpe, who has been elevated to the position of the global head
of HUL's parent firm Unilever's homecare business. Mr. Paranjpe, who will become a member of
the FMCG giant's leadership executive team, will report directly to global Chief Executive Paul
Polman.

COMPANY INFORMATION

CHAIRMAN : Harish Manwani

MANAGING DIRECTOR & CEO : Sanjiv Mehta
DIRECTOR : Aditya Narayan
DIRECTOR : S Ramadorai
DIRECTOR : R A Mashelkar
ED (FINANCE & IT) AND CFO : Sridhar Ramamurthy
EXECUTIVE DIRECTOR(SUP. CHAIN) : Pradeep Banerjee
COMPANY SECRETARY : Dev Bajpai
INDEPENDENT DIRECTOR : O P Bhatt
INDEPENDENT DIRECTOR : Sanjiv Misra
AUDITOR: Lovelock & Lewes
IND NAME: Personal Care – Multinational
HOUSE NAME: MNC Associate – Unilever
 Chapter 5
Research Methodology

1. Research objectives
1. To know about the market of HUL personal care products in rural areas, specifically in Pune

city.
2. To understand distribution of HUL personal care products in the area.
3. To understand demand for HUL personal care products.
2. Research Methodology

Introduction:

RESEARCH: Research in common parlance refers to a search for knowledge. One can define
Research as a scientific and systematic search for pertinent information on a specific topic. In
fact, research is an art of scientific investigation. Research is an academic activity and as such
the term should be used in a technical sense. In short, the search for knowledge injective and
systematic method of finding solution to a problem is research. The systematic approach
concerning and the formulation of a theory is also research. As term research refers to the
systematic method.
Research Methodology:
Research methodology refers to the analysis of principles of methods, rules and techniques. It
involves the systematic study of methods which are applied to analyze a specific project or study.
In order to make the research organized and to increase its reliability different methodologies are
 adopted. Research methodology involves the collection of theories, concepts or ideas,
comparative studies to different approaches and individual methods which are conduced when a
research work is performed.

Research Design
Research Design : Descriptive research Design.
Sampling technique- Judgment Sampling
Size – 150 respondents.
Unit - Students, Businessmen, Employees and some housewives.
Unit size – 60 Student, 19 Businessman, 30 Employees, 41 Housewife.
Primary Data - Primary data has been collected by means of questionnaire & Interview method.
Secondary Data-The secondary data source of data includes company official site, various
internet sites
Tools for Data Collection – Questionnaire & Interview

Sources of data and tools for data collection

Primary Data
The data that is being collected for the first time or to particularly fulfill the objectives of the
project is known as primary data.

The above primary data were collected through responses of consumer, Wholesaler & Retailer
were conducted through questionnaire & interview prepared for them.

Data collected by interview

Hindustan Lever Limited (HUL) has two types of channel selling-

i. Regular (traditional) retail channel,
ii. Direct Selling Channel in the name of Hindustan Lever Network (HLN).
HUL has a well-entrenched high distribution model which comprises of C&FAs, Redistribution
Stockiest, wholesalers and retailers (as shown earlier). Hindustan Unilever's distribution network
is recognized as one of its key strengths. Its focuses on Product availability, Brand
communication, and higher levels of brand experience.

Channel Structure (Special Focus is on)

Typically, the goods produced in each of the HUL's 40 factories are sent to a depot with the help
of a carrying and forwarding agent (C&FA). The company has its depot in every state of the
country. The C&FA is a third party and gets servicing fee for stock and delivery of the products.
In each town, there is at least a redistribution stockiest (RS) who takes the goods from the C&FA
and sells them to retail outlets. In Maharashtra the C&FA is in Pune district is serviced by
Redistribution Stockists at Pune

The HUL management realized certain problems with the existing sales model. HUL
found it expensive to appoint one stockiest exclusively for each town. Secondly, the retail
revolution in the country has changed the pattern the customers shop. Large retail self-service
shops are becoming commonplace. In response of these problems, HUL redesigned its sales and
distribution channel and the new system is known as 'diamond model' in the company. At the
top end of the diamond, there are the self-service retail stores which constitute 10% of the total
FMCG market. The middle, fatter part of the diamond represents the profit center based sales
team. In the bottom of the pyramid is the rural marketing and distribution which accounts for
20% of the business. As a result of the new distribution plan the company has planned to reduce
the number of RS in small towns.
Field Sales Force:
To meet the ever changing needs of the consumer, HUL has set up a distribution network that
Ensures availability of all their products, in all outlets, at all times. This includes, maintaining
Favorable trade relations, providing innovative incentives to retailers and organizing demand
Generation activities among a host of other things. The important activities that HUL field sales
force does are (i) target chasing and (ii) reporting on a daily basis. Account information is
maintained on palmtops given by HUL. During our research and informal survey of HUL field
sales force, we came to know that for the last two years, training is not being given at all to the
 sales force. HUL has limited the network channel selling to categories of Home & Personal Care
(HPC) and Food products with exclusive brands for this channel.

Redistribution Stockiest:
Total number of large RS in Pune. This is going to be reduced to only one with effect from next
month of this year. There are other many sub distributer, C&FAs, & Stockiest in research area.

Sales Margin: 4.76% which includes cash discount, unloading expenses from depot,
Distribution expenses to retailers, incentive schemes & other incidental expenses.

Modes of transport used: Rickshaw, tempo & company transport system.

Incentive schemes: Before 2000 holiday packages and tours but after 2000 no non-monetary
incentive for RS.

Software systems and Information System: UNIFY 8.3 (Developed by IBM & CMC). This
Software needs to be synchronized daily and the system updates any information/ incentive
Schemes / sales figures etc. to and from the common shared platform.

Wholesaler (gets 1.5 % max. discount from RS)

Retailers (gets 1.0% max. discount from RS)

Wholesaler:
Gets cash discounts and other schemes promoted by HUL (gets points under Vijeta Scheme).

Retailers:
Total retailer base in research area: Approximately 1070.
Sales Margin: Depends on the product
1. Soap, detergents -8% on MRP
2. Cosmetics -10% on MRP
 Incentive schemes:
1. Company programs (Scheme Discounts + Cash Discounts)
2. TPR schemes based on Sales (1 % to 4 %)
3. Vijeta scheme is not for retailers.

Secondary Data
b) Secondary Data
Secondary data are that type of data, which are already assembled and need not to collected from
outside. These types of data were
i) Company Profile
ii) Product Profile
iii) Competitors Profile

New distribution channels

A) Project Shakti
This model creates a symbiotic partnership between HUL and its consumers. Started in
the late 2000, Project Shakti had enabled Hindustan Lever to access 80,000 of India's 638,000
villages .HUL's partnership with Self Help Groups (SHGs) of rural women, is becoming an
extended arm of the company's operation in rural hinterlands. Project Shakti has already been
extended to about 12 states - Andhra Pradesh, Karnataka, Gujarat, Madhya Pradesh, Tamil Nadu,
Chhattisgarh, Uttar Pradesh, Orissa, Punjab, Rajasthan, Maharashtra and West Bengal. The
respective state governments and several NGOs are actively involved in the initiative. The SHGs
have chosen to partner with HUL as a business venture, armed with training from HUL and
support from government agencies concerned and NGOs. Armed with micro-credit, women from
SHGs become direct to home distributors in rural markets.
The model consists of groups of (15 - 20) villagers below the poverty line (Rs.750 per
month) taking Micro-credit from banks, and using that to buy our products, which they will then
directly sell to consumers. In general, a member from a SHG selected as a Shakti entrepreneur,
 commonly referred as 'Shakti Amma' receives stocks from the HUL rural distributor. After being
trained by the company, the Shakti entrepreneur then sells those goods directly to consumers and
retailers in the village. Each Shakti entrepreneur usually service 6-10 villages in the population
strata of 1,000 - 2,000. The Shakti entrepreneurs are given HUL products on a `cash and carry
basis.'
B) Project Streamline
To cater to the needs of the inaccessible market with high business potential HUL
initiated a Streamline initiative in 1997. Project Streamline is an innovative and effective
distribution network for rural areas that focuses on extending distribution to villages with less
than 2000 people with the help of rural sub-stockiest/Star Sellers who are based in these very
villages. As a result, the distribution network directly covers as of now about 40 per cent of the
rural population.
Under Project Streamline, the goods are distributed from C & F Agents to Rural
Distributors (RD), who has 15-20 rural sub-stockists attached to him. Each of these sub ]
stockists / star sellers is located in a rural market. The sub-stockists then perform the role of
driving distribution in neighboring villages using unconventional means of transport such as
tractor and bullock carts. Project Streamline being a cross functional initiative, the Star Seller
sells everything from detergents to personal products.
Higher quality servicing, in terms of frequency, credit and full-line availability, is to
be provided to rural trade as part of the new distribution strategy.
 Chapter 6

Data Presentation, Analysis and Interpretation

Q1. How many Sample size Profile?

Sample Unit No of respondents size
Students 27
Employee 20
Businessman 13
Housewife 40
Total 100

Data collection from people

Student Businessmen Empolyee House wife

26.67%

40.00%

20.00%

13.33%

Interpretation: Above pie-chart is explaining sample groups of study. In total 100 sampling

group 40% are Student, 13% are Business man, 19% are Employees & remaining 26% are House

wife.

Q2 what is type of media?

i)Television ii)News paper
Sample Unit 100 100
yes 75 85
No 25 15

Media 
90

80

70

60

50

40

30

20

10

0
Television News paper

Interpretation: As per Above Bar Graph say that in media coverage the Television of media
coverage is YES is 75 and NO is 25. While the media coverage of the Newspaper of media
coverage is YES 85 and NO is 15.

Q3. How many know about HUL?

Sampling Size 100 In Percentage
A) Yes 72 72%
B) No 28 28%

Know HUL

No; 22.00%

Yes; 78.00%

Interpretation: As per Above Pie Chart shows that the HUL Company know about 78% says
YES about know this company while the 22% says NO about know this company.

Q.4 How many used toothpaste of all products?

Name of Toothpaste Sample Size
Colgate 55
Peposdent 19
Close –up 5
Others 21
Total 100

Use of Toothpaste

Others; 20.67% Peposdent; 18.67%

Close – up ; 5.33%

Colgate; 55.33%

Interpretation : As per Above Pie Chart shows that the Toothpaste are used as 55 of Colgate 19
of Peposdent 5 of Close –up and 21 of Others are used then in daily routines.

Q5. How many used Detergent?

Name of Detergent Sample Size
Wheel 25
Surf Excel 13
Tide 19
Rin 36
Total 100

Uses of Detergent

Others; 7.33% Surf Excel ; 12.67%

Wheel; 25.33%
Tide; 18.67%

Rin; 36.00%

Interpretation: As per Above the Pie Chart shows that the uses of Detergents are as 36% of Rin
While the 19% of Tide While 25% of Wheel While 13% OF Surf Excel and 7% of Others are
used them.

Q6. How many used of Soap?

Name of Soap Sample Size
Lux 49
Dettol 16
Lifeboy 27
Others 8
Total 100

Use of Soap

Others; 8.13%

Dettol; 16.25%

Lux ; 48.75%

Lifeboy; 26.88%

Interpretation: As per Above Pie Chart shows that 49% of lux while 27% of lifeboy while 16%
of Dettol and while others of 8% are used of them.

Q7. How many used of Utensil Cleaner?

Name of Utensil Cleaner Sample Size
Vim 52
Pril 17
Others 32
Total 100

Use of Utensil Cleaner

Pril ; 17.00%

Vim; 52.00%

Other; 31.00%

Interpretation: As per above the Pie Chart shows that the used of Utensil Cleaner are as 52% of
Vim while 31% of others and 17% of Pril are used of them.
Q8. How many used of Fairness Cream?

Name of Fairness Cream Sample Size

Fair & Lovely 71
Olay 2
Pond’s 13
Others 14
Total 100

Use of Fairness Cream

Other; 14.00%

Olay; 2.00%

Pond’s ; 12.67%

Fair & lovely ; 71.33%

Interpretation: As per above Pie Chart shows that the used of use of Fairness Cream are as 71%
of Fair & Lovely cream while 13% of Pond’s while 2% of Olay and while of 14% of Others are
used them.
Q9. How many used Talcum Powder?
Name of Talcum Powder Sample Size
Ponds 81
Dermi Cool 9
Spinz 6
Others 4
Total 100

Use of Talcum powder

Other; 4.00% Spinz; 6.00%

Dermi cool; 8.67%

Ponds; 81.33%

Interpretation: As per Above the Pie Chart shows The used of Talcum Powder are as 81% of
Ponds while 9% Dermi Cool while 6% of Spinz and 4% of Others are used them.

Q10. How many used Deodorant?

Name of Deodorant Sample Size
Axe 55
Cintol 25
 Fa 10
Others 10
Total 100

Deodorant

Others; 10.00%
Fa ; 10.00%

Axe ; 55.00%
Cintol; 25.00%

Interpretation: As per Above the Pie Chart shows the use of Deodorant are as 55% of Axe while
25% of Cintol while 10% Fa and 10% of Others are used them.

Chapter 7
Findings

Observations:
1. In all study understand that more people use HUL product every day as compare to other
competitors.
2. So there is more market demand for HUL product.
3. People in Rural area use Lux, Lifebuoy and Fair & Lovely more than other brands & local
brands.
4. There are many people no use of Kissan Jam.
5. In Rural area TV media is very reach.
6. In Rural people attract to buy HUL because Television media & brand loyal.
7. Other more people buy HUL because his preference to use.
8. In Rural area use of Tata Premiums is more as compare to other brands of Tata Tea.
9. To understand there are many loyal brands of HUL in rural area.
10. To help large market of HUL product as compare to competitors product
11. To help Retailer for reach the HUL product to consumer.

Conclusions:
 While the rural market certainly offers a big attraction to marketers, it would be naïve to
think that any company can enter the market without facing any problems and walk away
with a sizable share.
 Distribution is the most important variable in the marketing plans of most consumer goods
manufacturers, because managing such a massive sales and distribution network is in itself a
huge task.
 Firms rely mostly on their marketing channels to generate customer satisfaction and to
achieve differentiation over competition.
 Majority of the companies are incurring huge costs to make their products available in the 3.5
million rural outlets.
 There are a whole lot of channels involved in the distribution network. FMCG distribution
has the maximum channel partners in the Indian rural market. The wholesaler is the most
important source of information for the retailer.
 The marketer would try their best to motivate the wholesaler to get the retailer in the rural
market to stock his company’s products, particularly the newer products.
 The purchase decision was not limited to one person from family but it was a collective
decision. Peer group had almost no role in their purchase decision. Neighbors and friends did
not have predominant role in purchase decision.
 Once the frequently-purchased products were out of shelf it took a lot of time to reach the
shelf back. Very few rural consumers had awareness about different consumer protection
acts.
 Chapter 8

Learning from the project Benefit to the Organisation

 Rural markets are geographically scattered, with lesser number of shops to market
products and goods

 The HUL Company only making product with best quality and ingredients with ther
shape, size, color, quantity and price of them

 They also focus in to target to lower class people who wants to buy the product for them.

 The income of the rural population is largely dependent on rural activities of agriculture
and labor. Therefore in case of natural calamities leading to crop failure may affect the
income of the rural population.

 Majority of the rural population have low per capita income and low purchasing power.
They have low standards of living and income. But introduction of government schemes
have increased the employment status, income status and the standard of living of the
rural population, leading to a new trend of consumer pattern.
  The literacy level is low and lot of persuasion is needed to convince the rural people
regarding any product and service. It requires a lot of effort and patience.

 The infrastructure is not developed and inadequate; there is lack of proper roads,
communication channels; power and storage facilities.

 The rural population has a traditional outlook and takes to changes at a slow pace.

 Due to geographic scatteredness and remoteness of rural areas media reach is less and
difficult.

 The rural population can be divided into three segments, the rich farmers and land
owners, they are very few in number, have money but do not form a large demand base;
the middle class, they are the largest consumers in the rural market sector; the poor, they
too form a large segment of the rural consumers, but have very low purchasing power and
income.

 If your marketing 4ps are good the product will sell directly without advertising through
to them.

 The rural market are dependent on seasonal demand, demand is high after harvesting or
during the festive season.

Chapter 9

SUGGESTIONS

1. Marketing through multi – level marketing channels, kitty parties, social gathering and etc.
where people within the same rural community can be encouraged as the influence to make a
purchase through the opinions of friends and peer group is more in rural consumers.

2. In addition, efforts should be made to use the distribution channels more effectively to reach in
the deeper pockets of the rural market. Thus availability of the product is very important as rural
consumers are not loyal to one brand.

3. Efforts should be made to increase the distribution network (retail outlets), and make available
 the products to the rural market.

4. Should try to connect with them through aggressive marketing by print and T.V. advertisement as
this is the most important factor in influencing buying decision

5. Promotional strategies should be according to the age group factor of buying decision in rural
market. As the factors of influences are different in different age groups.

6. While planning for rural market company should plan considering the factors of buying decision
like: life style, buying capacity of the buyer and etc. as they try different products as suggested
by the peers, neighbor and others.

Chapter 10
Scope and Limitations
Scope of the project:
1. Large Population: According to 2011 census rural population is 71% of total
population and it is scattered over a wide range of geographical area

2. Rising Rural Prosperity: Average income level has improved due to modern
farming practices, contract farming, industrialization, migration to urban areas and
remittance of money by family members settled abroad.

3. Growth in Consumption: There is a growth in purchasing power of rural consumers.

The average per capita household expenditure is Rs. 382.

4. Changing Lifestyle: Lifestyle of rural consumer changed considerably.

 5. Life Cycle Advantage: The products, which have attained the maturity stage in
urban market, is still in growth stage in rural market. E.g. popular soaps, skin cream,
talcum powder, etc.

6. Market Growth Rate Higher than Urban: As per the survey made by NCAER
the growth rate of FMCG market and durables market is higher in rural areas. The rural
market share is more than 50% for products like body talcum powder, toilet soaps
cooking oil, hair oil etc.

7. Rural Marketing is not Expensive: To promote consumer durables inside a state costs
Rs one crore while in urban areas it will costs in millions.

Limitations of the project:

1. Deprived people and deprived markets:

The number of people below the poverty line has not decreased in any appreciable manner. Thus,
poor people and consequently underdeveloped markets characterize rural markets. A vast
majority of rural people is tradition bound, and they also face problems such as inconsistent
electrical power, scarce infrastructure and unreliable telephone system, and politico-business
associations that hinder development efforts.

2. Lack of communication facilities:

Even today, most villages in the country are inaccessible during the monsoons. A large number of
villages in the country have no access to telephones. Other communication infrastructure is also
highly underdeveloped.
3 Transport:

Many rural areas are not connected by rail transport. Many roads have been poorly surfaced and
got severely damaged during monsoons. The use of bullock carts is inevitable even today. Camel
carts are used in Rajasthan and Gujarat in both rural and urban sectors.

4. Many languages and dialects:

The languages and dialects vary from state to state, region to region and probably from district to
district. Since messages have to be delivered in the local language, it is difficult for the marketers
to design promotional strategies for each of these areas. Facilities such as phone, telegram and
fax are less developed in villages adding to the communication problems faced by the marketers.

5. Dispersed markets:
Rural population is scattered over a large land area. And it is almost impossible to ensure the
availability of a brand all over the country. District fairs are periodic and occasional in nature.
Manufacturers and retailers prefer such occasions, as they allow greater visibility and capture the
attention of the target audience for larger spans of time. Advertising in such a highly
heterogeneous market is also very expensive.

6. Low per capita Income:

The per capita income of rural people is low as compared to the urban people. Moreover, demand
in rural markets depends on the agricultural situation, which in turn depends on the monsoons.
Therefore, the demand is not stable or regular. Hence, the per-capita income is low in villages
compared with urban areas.

7. Different way of thinking:

There is a vast difference in the lifestyles of the people. The choice of brands that an urban
customer enjoys is not available to the rural customer, who usually has two to three choices. As
such, the rural customer has a fairly simple thinking and their decisions are still governed by
customs and traditions. It is difficult to make them adopt new practices.
 Chapter 11
Annexure

Bilbliography :

 www.google.com

 www.hul.com

 A Marketing Management By Philip Kotler

 Rural Marketing: Pradeep Kashyap

 QUESTIONAIRE

 Name :- ________________________________________________________________

 Address :- _____________________________________________________________

City :- _______________ mobile No :- _______________ State:- _______________

 Occupation :- _______________

(Tick just one box please)

1) Do you watch Advertisement on Television & Newspaper?

i] Television :- A) Yes __ B) No__ ii] Newspaper :- A) Yes __ B) No__

2) Have you heard of HUL before?

A) Yes __ B)No __

3) Which type of Toothpaste you prefer to use?

A) Pepso dent __ B) Colgate __ C) Close – up __ D) Other __

4) Which type of Detergent you prefer to use?

A) Surf Excel __ B) Tide __ C) Rin __ D) Wheel__ E) Other__

5) Which Soap do you prefer to use?

A) Lux __ B) Lifebuoy __ C) Dettol __ D) Other __

6) Which Utensil Cleaner do you prefer to use?

A) Vim __ B) Others __ C) Pril __

7) Which Fairness Cream do you prefer to use?

A) Fair & lovely __ B) Ponds __ C) Olay __ D) Other __

8) Which Talcum powder do you prefer to use?

A) Spinz __ B) Ponds __ C) Dermi Cool __ D) Other __

9) Which Deodorant do you prefer to use?

A) Axe __ B) Cintol __ C) Fa __ D) Other __

10) Are you satisfied with HUL?

A) Yes __ B) No _