PROJECT AT GLANCE

Name of the Unit Address : BALAK SALES AGENCY

: Deep prakash 23/35, new jagnath plot, Rajkot 360001.

Year of Establishment: 1931 Constitution Dealership of Head office Type of Product Personnel : A Public Ltd. Multinational Co. : Hindustan Lever Limited : Mumbai : [1] Home & personal care products [2] Food & Beverages : 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.

INDEX

No 1 2 3 4 5 6

Name Introduction History & Development Achievements Corporate Purpose Social Responsibility Products

Page No. 3 4 8 9 10 13

INTRODUCTION
In todays modern world, we see many different products coming into the market, some products going out of 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 todays domestic market Hindustan lever limited has captured the major share. It is a known 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.

HISTORY & DEVELOPMENT

The Indian industries are moving rapidly on the path of change, development and innovation. The company known today 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 being through 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 has continued 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 ultra detergent 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 levers 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 KimberlergClarck 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.

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.

In the year 2000

HLL acquired 74% stake in modern food industries ltd, the first public sector co. be disinvested 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. Its a tribute and record.

ACHIEVEMENTS OF HINDUSTAN LEVER LIMITED

In the year of 1992, Hindustan lever ltd. Was recognized as star trading house in exports The Forbes Globle ranked HHL as the worlds household product company. The eastern economics review has been selecting HHL as Indias 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 contestSaurashtra Zone 1996.

CORPORATE PURPOSE
To meet the everyday need of people everywhere to anticipate 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. HLLs long term success requires a total commitment to 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.

SOCIAL RESPONSIBILITY
Social responsibility of the business is newer concept. The money dose not measures the obligation of the company towards the community. The obligation, which is performance by the company is helpful to the company to build its own image & goodwill in the society. It indirectly helps business to expand their market. Such obligations are voluntary and hence are influenced purely by the companys desire to share its prosperity & also its profits with the community. It is expected that social responsibility and enlightened selfregulation can help marketers to fulfill social responsibility. Marketing strategies are formulated always in the light of the requirement of social responsibility. Managers at all levels in an organization are involved in the conflict and reconciling the following responsibility: A. To the society as a whole B. To he consumers C. To the employee D. To the government 1. Social responsibility towards the society The societal marketing concept holds that the organizations task is to determine the needs, wants and interest of target market and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves the customers and society is well being.
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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, understanding customers 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. Customers oriented thinking requires the company to define customer need from the customers point of view because ultimately customer is the king of the market. Company gives response to the customers 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 a higher 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 and traveling expenses reimbursement. 4. social responsibility toward the government
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Governments major service of revenue is collection of taxes & duties. Hindustan lever ltd pays taxes regularly and thus discharge their obligation towards government. The companys reputation based on high principles of ethics reliability & pride in the products is fairly 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 out marketing 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 marketing mix 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. II. III. IV. Decision on product or service Decision on price Decision on promotion Decision on place or distribution

The success of company will be assorted to only by buying the right product linked with the right promotion at the 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

Product mix
Brand 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 mix
distribution channel wholesaler retailer mercantile agents physical distribution transport warehouse inventory

One thing should be noted that 4ps represented the seller views the marketing tools available for influencing buyers report.
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Lauterbarn suggested 4cs corresponding to 4ps. They are as follows: 1. products 2. price 3. place 4. promotion : : : customer needs and wants : cost of the customer convenience communication

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INDEX
Name No . 1 2 3. 4. 5 6 7 8 9 10 11 12 Introduction Product variety Colour Designs Feature Size Qualities Brand name After sale service Product width Product line Conclusion Page no. 20 21 22 22 23 24 25 25 26 26 26 28

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INTRODUCTION
The product is the most tangible and important single component 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 consumption that 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 consumers satisfaction. It is the engine that pulls the rest of the marketing programmed. If the product fails to satisfy 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 central to 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 must compile the customers and wants. The product mix contains the following point: A.Product variety B.Colour C.Design D.Feature E. Size F. Quality G.Brand name H.After sales service I. Product width J. Product line K.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 Indias largest packaged mass consumption goods (pmcg) company.
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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 the colour 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 deep nourishing 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 customers requirement. In competition, it will offer one of the most potential ways to differentiate and position a companys product and service. Design is particularly important in making and marketing durable equipment retail services and packaged goods from the customers 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 ponds 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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5. SIZE If the product is of durable nature then it has to be a particular size. It may be big, small or as per consumers demand. Hindustan lever ltd for instance, offer following quality sizes in different Rexona soaps. Rexona coconut 100 gm Rexona coconut -125 gm Rexona coconut -150 gm Rexona coconut - 75gm Rexona sandal- 100gm Rexona sandal 125gm Rexona sandal - 75

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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 value for 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 a competitive 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 market and role the brand will play in its business strategy. Over the past 70 years, HHL has introduced about 110 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. 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. 10.

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HLL has so many products lines. For e.g. under premium soap product line it includes following. Dove Lifebuoy Liril Moti sandal Lux Lux international Jai Hamam Rexona and so on

11. PRODUCT CONSISTENCY Consistency in the product mix is the degree of similarity between each product line.

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CONCLUSION
Thus, product mix is the heart of any successful marketing strategy. Product mix planning is largely the responsibility of the companys strategic planner. A companys product mix has a certain width, length, depth, and consistency. These 4 dimensions of the product mix provide the handles for defining the companys product strategy. The company can expand its business in 2 ways by adding 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
Name No . 1 2 3. 4. 5 6 7 8 9 10 11 12 Introduction Pricing Objective Pricing Policy Factors Affecting Pricing Price List Discount And Allowances Credits Terms Price Sensitivity Government Policy Pricing Method Types of Pricing Conclusion Page no. 30 31 32 32 33 34 34 35 35 36 36 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. This offering includes a brand name, a package, products benefits, and service after sale, delivery, credit & so on. From the members point of view, the price also covers the total market offering i.e. the consumers are also purchasing information through advertising, sales promotion, personal selling & distribution methods that has been adopted. The consumer gets these values and also covers their costs. We can 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 as in 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 pricing 3. Pricing policy 4. Price list 5. Discount & allowance 6. Credit terms 7. 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 new distribution 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.
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1.

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 general framework 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 firms cost function and the influence of external environment variable like competitors 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

3.

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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 customers demand and firms cost function serve to provide the boundaries of price decision, environmental forces tend to have an upward or downward involving effect of the price. PRICE LIST Price 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 a statement, 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.

4.

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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. Many companies 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 are various 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 get one 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 management of the company, credit terms may remain the same or different from consumer to consume. Credit terms change over a period of time. In todays market it is a fact that each company 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 customers behavior that comforts the marketer. Price sensitivity is the change in behavior of customer due to price change. The marketer has to 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 governments 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.
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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 who dominates the market such a price policy will prevent price war and assure normal profit. 10. TYPES OF PRICING: Companies usually dont 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 pricing 2) 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
Name No . 1 2 3. 4. 5 6 7 8 Introduction Advertising Advertising Media Sales Promotion Position of Sales Promotion Personal Selling Publicity Conclusion Page no. 39 41 44 47 49 50 52 54

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INTRODUCION
Promotion is a term form Latin, which means move from one end to another. It is a communicative activity whose 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 maintains demand 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 users in 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 & influences his/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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ADVERTISING
An identified sponsor can define advertising as mass paid communication of goods services or ideas. Advertisement is one of the major tools, company used to direct persuasive communication to target buyers and public. It is a form of mass communication. A sponsor who wants to communicate about his product or service to customers pays it for. It is also overlapping to say that modern age is the age of advertising in fact it would be more realistic to say that it is due to advertising that modern trade & industries have been able to achieve such a remarkable progress. Advertising is not a mirror, which is not of fix, nor of stable nature but it have wings that enfold and fly over regions extents to which firm wishes or let it to reach. It attracts the consumers. Advertisement makes some review or place fort the, product in the delicate heart and dynamic mind of the indifference consumers by influencing it in so different manner that consumers are thumped to buy a product. Advertising programmed as an integral part of the promotion campaign may have one or more of the specific goals. Promotion of new product Advertising can make prospects at least aware of the entry of the new product in the market.
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Support to personal selling Advertising can move the prospect nearer to the point of purchase under favorable atmosphere. Salesmans job is easier 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 are special advertising persuading prospects and securing prompt actions. Direct mail is the usual medium for coupons, samples and other form of direct action advertising.

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Dealer support National or big firms advertising extensively & intensively to support dealers & distributors so that they can assure 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 production as 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. It creates 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 on form producer to consumers are termed as advertising media. 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

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

To serve the above-mentioned objective and to obtain the 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 advertising agency. The agencys 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 like demonstration, 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.

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Hindustan lever limited gives advertisement in all leading newspapers like the Times of India, The Economics Times and they also take the help of transit media. Their theme of advertising is Public awareness which is becoming true because in this competition market particularly for home and personal care products. There was a controversy whether advertisement is expenditure or an investment. Hindustan lever limited considered it as AN INVESTMENT WHICH CAN PAY RICH DIVIDENDS.

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SALES PROMOTION
The fast growing Indian market, increasing competition in market, the maturing and the standardization of product puts a pressure on the marketer to be innovative in 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 nonrecurring 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. It acts 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 salesmans product is definitely superior and is the only product that will satisfy prospects wants. 4. It must win confidence of prospects that salesmans 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 and control the programmers & evaluate the results. It can arouse enthusiasm; create a buying mode or spark of immediate reaction from customers, dealer and the firms 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 A L E Smilingly Attentively Loyally Enthusiastically
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POSITION OF SALES PROMOTION

Sales promotion refers to activities other than personal salesmanship, advertising and publicity which stimulate consumers 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 & basic ingredients in the marketing mix.
SALES PROMOTION (BRIDGE)

PERSONAL SELLING

ADVERTISING

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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PERSONAL SELLING PROCESS

Pre- sale preparation

Prospecting

Pre approach

Approach

Sale presentation

Objections

Close

The follow up

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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Why personal selling We know that salesmanship is creative, persuasive and educative process. It aims at providing services to buyers. It helps in winning the buyers 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 effective services can be provided to customer as compared to competitors. Adopting powerful tool of personal selling can reduce customers unawareness. The todays 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 the customer, 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 companys link to the customer and sell products to many of its customer, which in turn is profitable to the company.
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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 the organization. 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 companys 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 radio time that is not paid by the sponsor. From the above definition and meaning it is obvious that 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 publicity makes 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., direct mailing, 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 relative importance 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 in which 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 company must 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 and 4. Finally to implement

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INDEX
No . 1 2 3. 4. 5 Name Introduction Distribution Channel Physical Distribution Organizational Responsibility for Physical Distribution Conclusion Page no. 56 57 62 68 69

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INTRODUCTION
Place mix is also called distribution mix. In the marketing 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 decision affect the market share of the firm and its producer also the decision affect the market share of the firm. Following are the major topics to be studied. Distribution channel Physical Distribution In todays 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 customers service. It aims at providing delivery of right goods at the right time and at the right 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.
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DISTRIBUTION CHANNEL
Most producers work with marketing intermediaries to bring their product market. The marketing intermediaries make 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, warehouse keepers & 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 from the 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 relinquishing some 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 widely available & 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 a middleman 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 level of 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 todays economy most producers dont 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 make up 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

FACTORY

DEPOT (C & FA)

STOCKIST (RS) REDISTRIBUTION STOKIST

RETAILERS

CUSTOMERS

2). WHOLESALER SYSTEM

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 companys product. The coverage of the market 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 by aggressive salesmanship. Delivering the product to the consumers 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 raw materials and finished products from the point of origin to the point of consumption to meet the consumers 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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Physical distribution mgt. has assumed great importance as it alone can reduce the cost of transport, storage, material handling and order processing and holding of inventories. These are the basic building blocks or planned physical distribution because it can assure a competitive level of increasing demand while holding down the total cost of distribution as much as possible. The total cost approach, the idea of cost trade offers the system approach and avoidance of sub optimization of costs are principal supporting concepts of the modern physical distribution system. A. Order processing

Order processing is considered as the key to customer service and satisfaction. Order processing includes receiving, recording, filling and assembling of products for dispatch. The amt. of time required for the date of receipt of an order up to the date of dispatch of goods is reasonable and ad short as possible. The company is now using a computer system to speed up order handling. Measures are taken to ensure proper execution of orders. Order processing also includes Granting of credit Invoicing Collection of accounts

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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 time Your 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 provide superior 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 a distribution center.

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Warehousing is fixed facilities where companies store their inventories usually for longer period. In HLL, warehousing is very strictly followed up at C and F.A. & R.S. level. There are certain specifications for storage. For e.g. 1. All soaps are stacked in Honeycomb fashion to give proper air condition and minimum 6 inches space is to be kept between each stock. 2. Stock is made up on wooden plant to prevent moisture seepage. 3. Godowns are kept properly ventilated and are carefully checked everyday. 4. Stocks are rotated every week and dispatches are made in FIFO (First in first out) method. 5. After every 2 rows 11/2 feet space is provided between socks for walking and lifting stocks. 6. Nor more than 8 cartoons are to be stacked on top of other. For gunny bags up to 6 levels can be maintained. 7. Carbonic soap and detergents are being kept away from each other.

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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 customers order and companys production activity. 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 1 months of stock (made up and raw materials) 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 companys 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 model with 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 FOR PHYSICAL DISTRIBUTION

In HLL different persons have responsibilities of physical distribution. shared the

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 high customer 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 broad range of activities concerned with efficient movement of the ultimate 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. 1 2 3. 4. 5 Name Slogans of product Celebrities Corporate practices Various site of hill Whats new? Page no. 71 72 73 74 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 protectionHamam Dove : Dove is not a soap it contains th moisturizing cream Ponds Dream flower : floral extracts- complete beauty care. Ponds magic : 12 hour frangrance time release effect. Rexona : har pal saath nibhaye.

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CELEBRITIES

Lux : aishwarya rai & rani mukherjee Liril : priety zinta Lux sampoo: tabu Jai lime : amisha patel Wheel : 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 which HLL 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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Whats 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 HLLs 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 the finest 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 on such a famous company. Las but not least, I cannot forget the golden words ushered by one of the previous chairmen of HLL.

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