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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    21.121.1 UNILEVER AS THE PARENT COMPANUNILEVER AS THE PARENT COMPAN

    # fortune $%% transnational" &nilever sells over %%% foods ( home care (

    personal care brands through )%% subsidiary companies in ** !ndividual

    consumer chooses &nilever foods and personal care brands countries

    worldwide with products on sale in a further to" $% million times a day.

    &nilever is number one consumer goods Company in the world in market

    competitiveness. !n +)% &nilever created through the merger of lever

    brothers in &.,. and -argarine &nie" etherlands.

    1.21.2 HINDUSTAN LEVER LIMITED!S PROFILEHINDUSTAN LEVER LIMITED!S PROFILE

    H.L.L. is !ndia/s Largest fast moving consumer goods company" with a

    leadership in home ( personal care products " food ( beverages and

    specialty in chemicals with a turnover of 012.%3 Crores.

    H.L.L. was established in +$1 through the merge of Hindustan Vanaspati

    -anufacturing Company" Lever 4rother !ndia Ltd. ( &nited Traders Ltd.

    5ome of its 4rands are nearly %% years old.

    H.L.L. has entered virtually every arena in fast moving consumer goods

    market through organi6ed growth" diversification" merges ( ac7uisitions.

    Today the company markets more than % brands in +$% packs .The vision

    that inspires H.L.L./5 )1"%%% employees" including about )%% managers is

    to "Mee# e$e%&'(& nee' o) #he *eo*le e$e%&+he%e.,

    EMPI Business School

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    -%o+#h

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    +) &nilever registers company in !ndia??Hindustan Vanaspati

    -anufacturing Company =HV->??for local manufacture of Vanaspati.

    +)) Lever 4rothers !ndia Limited =L4!L> incorporated in !ndia to

    manufacture 5oaps.

    +)$ &nited Traders Limited =&TL> incorporated in !ndia to market

    9ersonal 9roducts.

    +$1 The three subsidiaries" HV-" L4!L and &TL" merge to form

    Hindustan Lever Ltd.=HLL>

    +$* Hindustan Lever @esearch Centre starts functioning .

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    ++$ HLL and !ndian cosmetics major" Lakme LT8" form $% 9vt. Ltd. HLL 5oaps and 8etergent sales

    cross one million tonnes.

    ++1 HLL and associate company" 4rooke 4ond Lipton !ndia Limited"

    !ndia's biggest in :ood and 4everages" merge.

    ++3 HLL and Dist 4rocades 4V form $%

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    contributed greatly to the company's success. The @esearch Centre" which is

    the largest in !ndia/s private sector" gives HLL an edge over competitors by

    coming out with innovative products and processes" many of which are

    patented.

    HLL has over )1"%%% employees" and has created 0 lakh indirect jobs. !ts

    operations are spread across 3% locations in !ndia. There are over $%

    factories" of which 0* are in backward areas. The operations involve 0%%%

    suppliers and aassociates and 3%%% stockists and agents.

    !n addition to gaining leadership in !ndian markets" HLL has emerged as a

    major porter. !t is a 5uper 5tar Trading House" an honour that only seven

    !ndian companies enjoy. Aith a portfolio of soaps" detergents" tea" tomato?

    based products" cosmetics" agri?products" leather products and marine

    products" HLL's eports turnover in the year +++ was @s *%)

    crores.

    1.51.5 BAC-ROUND OF VANASPATIBAC-ROUND OF VANASPATI

    !n +* Vanaspati =Hydrogenated edible fats> was launched through

    imports. &niliver sets up its first !ndian subsidiary" Hindustan Vanaspati

    manufacturing company in +) for local manufacturer of vanaspati.

    The famous brand 8alda came in the market in +)3. #fter 8esi Dhee this

    was the first vanaspati which was introduced in the market. #t that time

    people use to have only desi ghee no one uses vanapati" so it took few

    year/s to gain popularity amongst consumers.

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    Doing was tough with this product but with it/s uni7ue features and first of

    its kind with low cost" it finally established in the market . Consumers liked

    the taste of this product very much. 5lowly " the competitors started

    entering in this vanaspati market "so the market share of dalda was now

    divided between other. 4ut still even having competition with other brands "

    dalda has covered largest market share $%E nearly.

    -ajor competitors of 8#L8# are? @&CH!" the product of -B8!

    CB-9#G. D#D#" the product of #-@!T !8&5T@!5. @#TH" the

    product of !TC.

    1.61.6 PRESENT PRFILE OF VANASPATIPRESENT PRFILE OF VANASPATI

    ow the immediate competition of whole vanaspati market is with refined

    oil" it scores more on health front as it contains less amount off fat as

    compared to vanaspati.

    Consumers " today also like the taste of vanaspati but being more health

    consious" more and more people have switched over to refined oil. ,eeping

    this in mind company came up with new version of dalda vanaspati that is

    A 8#L8# #CT!V/.

    #fter having test marketing it with the name of 8#L8# :L L!DHT in

    uttar pradesh. #fter test marketing certain draw back came up

    @elated to name.

    0 @elated to packaging.

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    ). Holding inventory.

    2. 9rocessing orders.

    $. Dathering market information.

    1. Bffering customer support.

    :or their customers; i.e retailer" wholesalers" distributors are e7ually well

    suited for performing the following tasks efficiently such as have a big market share

    =when clubed together>. The vanaspati fall under this heads are mostly

    local player's and comparatives" less cheaper then the national brands.

    8alda" being the market leader and the first ever launched vanspati in the

    !ndian market has the share of only 1E.

    @easons for only 1E market share of 8alda.

    . ow consumer's have become more health conscious so most of

    people's have shifted to refined oil.

    0. 8alda is loosing its identify now" consumer's believe that the 7uality has

    gone very low from" last few months.

    ). 9rofit margin for @etailer's is relatively less as compared to other

    branded vanaspati" and so they push more off other brands on which

    they earn more profits.

    2. This is product which runs without any promotional activity. ,eeping"

    this in mind other competitive brands runs with scheme for retailer's like

    $O? off per case for cash payment and on the sale of 2% cases retailer

    will get few cases free.

    The story is 7uite different when we study sale of other packs si6e of

    vanaspati.

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    DETAILS OF OTHER PACS FOR THE MONTH OF

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    especially $%%ml and even if they think of keeping O0 litre pack they prefer

    other brands since their defined 7uantity of selling dalda is met by litre

    pack and so they push more of $%%ml pack of other brands in which they

    have higher margin.

    The same reason is for 0 litre packs where 8alda ends up )rd.

    !n $ litre packs the price of 8alda is relatively high as compared to other

    brands = difference of %O?> but still as it is consumed mostly by families

    where number of peoples are more the sale of $litre pack is satisfactory.

    The parameter's which effects the buying of vanaspati are liked according to

    the importance given by consumer's.

    . 9rice

    0. 4rand

    ). Puality

    2. Taste

    -ost of the consumers who consume vanaspati are the one's who are very

    price sensitive. The price of 8alda is slightly higher and that is negligible.

    !t sells one or two rupees more than the other brands in the market. 4rand

    !mage of 8alda is good" consumers who are consuming 8alda vanaspati

    wants only 8alda" they don/t want to compromise it with other brands" but

    if we talk about 7uality it was found that since past few months 7uality of

    8alda has really gone down as compared to other brands. 5o" peoples who

    were consuming only 8alda earlier were forced to shift to other brands.

    There were complaints regarding the 7uality. #s 8alda is the first brand so

    company should really look to it that its image does not spoil.

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    Ae can see from the earlier graph that 8alda is the market leader in litre

    pack and in other packs it has a noticeable presence. !t is only in the case of

    0 litre pack and some where it ends up last player in the game.

    -arketer's ( @etailers concentrate more on the form which is widely use

    and brings in higher profit =in the case of vanaspati it is litre pack>"

    therefore they do not flat much of other form's that are very near to the

    leader" because that can have an adverse effect on the form that is a major

    revenue earner. This is one of the most important reason that $%%ml pack

    of 8alda is not so popular and company is not aggressively trying to

    promote it because in tryhing to doing so the superiority of litre pack

    might suffer a set back.

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    PRESENT TON UNIT PRICES OF BRANDED VANASPATI.

    . 8#L8# 0 $%%-L 2.*% L!T@ 0*.$%

    $ L!T@ 3%.$1

    % L!T@ ))$.30

    0. D#D# 0 $%%-L ).3$

    L!T@ 03.%%

    0 L!T@ 12.%%

    $ L!T@ $$.2%

    % L!T@ 03$.%%

    ). @#TH 0 $%%-L 2.%%

    L!T@ 0*.%%

    0 L!T@ 1).%%

    $ L!T@ 10.%%

    2. @&CH! 0 $%%-L 2.$%

    L!T@ 03.%%

    0 L!T@ 1).%%

    $ L!T@ $$.%%

    % L!T@ 0*%.%%

    #s we can see that in the prices of 0 litre there is a gap of more than $ to 1O?

    and in the prices of $litre" * to $O?. 5o company should not change its

    price of litre pack but with other packs" they can keep it slightly near to the

    other competitive brands.

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    PAST RECORD SALE OF DALDA

    =Bne litre pack only>

    UANTIT SOLD THROU-HN OTHER PACS

    5@@?l 2 l#%e 5 l#%e 1@ l#%e

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    :rom the above graphs" we can see that there was sudden rise in the sales

    of Vanaspati in the moth of Fune" the reason for this sudden jump was the

    information that import duties on crude oil will be increased this lead to

    @apid buying by the retailers because they wanted to in cash this

    opportunity. The revised import duty which was talked about didn't come

    into being and there in the with of Fuly situation normalised.

    There has been a considerable changes in the outlook of the retailers

    regarding the company's products and services.

    5urvey was done keeping in mind three parameters i.e.

    9eople

    9roduct delivery and basic services

    Brgani6ations

    Peo*le

    To talk about the skills" behaviour and attitude of the people especially

    salesmen and stockists who service the retailers and understand their

    problems with a flair to solve it.

    P%o'uc# 'eli$e%& (n' =(sic se%$ice

    To talk about whether the product is delivered in good condition"

    convenient time" eact 7uantity" right place and the decisional power of

    salesman.

    O%/(niG(#ions

    !n the end" to talk about the demand of the product whether the company

    ehibits marketing leadership.

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    FINDIN-S3IFINDIN-S3I

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    FINDIN-S3IIFINDIN-S3II

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    COMMENDS AND SU--ESTIONS OF 8@ RESPONDENTSCOMMENDS AND SU--ESTIONS OF 8@ RESPONDENTS

    1. 4@ Ou#le#s0 :eel that the salesmen should be given more authority an

    replacements" be able to take 7uick decisions and authority to decide the

    display scheme.

    2. 55 Ou#le#s0 :eel that the under cutting issue should be stopped or

    reduced creating an unfair practice in the market.

    . 6@ Ou#le#s0 :eel that the margin should increase and incentives should

    be provided on more sales.

    4. 2@ Ou#le#s0 :eel that E cash discount should be compulsory.

    5. 5 Ou#le#s0 :eel that the replacements for the airleakOtronOother?

    packets should be instant and effective.

    6. 1@ Ou#le#s0 :eel that the plans should be implemented with total co?

    operation from senior people in the field.

    7. 5 Ou#le#s0 Company should stop manufacturing its Vansapati from

    outside and stant its own t manufacturing again.

    8. )$ outlets< were for praises for the company for its.

    Dood ads

    ffective in packing

    @eady to solve problems

    Company is concerned for the retailers

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    4eneficial schemes for the retailers.

    :. 15 Ou#le#s0 :eel that 7uality should be improved of Vanaspati and

    company should keep the prices of its other packs = 0%%ml" $%%ml" 0

    litre" $ litre" % litre> near to the competitors price.

    Su??e%&

    :rom a certain outlets the response was lukewarm while" it was very

    forthcoming from majority of outlets with a view that the details especially

    comments and suggestions will be redressed in the company and will be

    looked into keeping in mind the benefits of the company and the retailers

    and able to service the customers more effectively.

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    -ajor demand of the retailerswere#dhesh

    @ajeevFetley

    )% 0% 11 )0

    Tuesday -eerut Dupta#gencies

    9iyush

    [email protected].!>#dhesh

    @ajeevFetley

    o work due to heavy rain

    Aednesday

    oida 5under 8ubey 9raveen )% $ $%E $

    Thursday oida 5under shoes 8ubey [email protected].!>#dhesh

    0% % $%E %

    To#(l 165 :@ 45 11@

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    P%o=le?s )(ce' in *l(cin/ #he *%oc'uc#

    . 4ecause of a very high price.

    0. @etailier's were comparing it with earlier launched product 8alda feel

    light.

    ). piry date mentioned on packs.

    2. 5hortage of time" to cover.

    $. !n -eerut the results were encouraging" but the stock available was veryless in 7uantity.

    #fter $ days of launch" survey was conducted to the know the off?take of

    the product" to check whether display is there or not and to know the

    awareness of the product among consumers.

    # structured format was prepared to conduct the survey < = see #nneure >

    The off?take of the product was only 0%E that is among %% packets only

    0% was sold. The maimum number of packets were sold at )$O?. There

    was hardly any retailer who touched the [email protected] of )+ rupees.

    OFF TAE -RAPH

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    Packet sold

    20%

    Packet not

    sold

    80%

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    SOLD AT DIFFERENT PRICES

    This shows that maimum 7uantity was sold at )2")$")1 rupees

    respectively. 5o" most of the customers accept the product at these prices.

    #s far as the 9osters " 8anglers" hangers ( other materials of display is

    concerned there were 2$E of the shops which really had a good display.

    Ahile others lack with something or the other. :ew shops were not

    hangers to hang up the packets for greater visibility.

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    25

    30

    20

    5

    20

    0

    5

    10

    15

    20

    25

    30

    Rs. 35 Rs. 34 Rs. 36 Rs. 39 Other's

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    DISPLA

    A+(%eness 0 #lthough the product was backed by television

    advertisement" which started on 2th Fune" still the consumer's were not

    aware of the product" but slowly as the no of advertisement increased

    people started recogni6ing the product but" there was not much pushing for

    the product by the retailers. -ost of them did not eplained the benefits of

    the product to the customers.

    M(;o% *%o=le?s )(ce' =& #he %e#(ile%s in *%o?o#in/ #he *%o'uc#

    . High prrice

    0. lack of awareness

    ). 5hortage of display materials

    2. Consumers could not understand what eactly the product is" !s it a

    vanaspati or refined oil.

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    No displa

    15%

    !"era#e

    40%

    $ood displa

    45%

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    SALES AND DISTRIBUTION OF BRANDED VANASPATI

    4ut at the end of the project" the repeat demand for the product started

    coming because of high promotional activities and television advertise.

    There were $) cases more sold net month.

    P%o'uc# c(n onl& =e *%o?o#e' in ( lon/ %un =ec(use0

    . The new product has a promotional backup i.e advertisement in print

    media and television add.

    0. !t is a uni7ue product" first of its kind. 4oth people will take time to

    recogni6e ( feel the 7uality of the product.

    ). !t has a brand name 8alda attached to it.

    2. !t is a product of HLL.

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    4.54.5 5TH OB

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    D%(+=(c>

    . 8ue to the display scheme" there was the cut price practice which

    prevailed in the market" the product was sold at much lower rate"

    then the rate at which company wants it to trade.

    0. 5elling of the product will be more tough for the retailers when

    they will have to sell it at its original [email protected] of )+O?.

    0. Ac#i$i#& 0 Television advertisement as we know" peoples rush forthings which is once shown on television. Television is the latest

    communication median" especially when it is to cover a large population.

    Company had planned for aggressive advertisement for three months

    atleast" on various channels ? Qee television" 5oni" 8oordarshan

    advertisement were shown between cricket matches also. :ew movies

    were sponsored by 8alda #ctiv on 5ma channel.

    8ue to the advertisements shown on various channel" customers have

    started recogni6ing the product. #dvertisement had created awareness

    among customers.

    ). Ac#i$i#& 0 #fter a successful completion of display scheme company

    had started another activity. This activity was for customers. Company

    had started redemption coupon's in news paper 9unjab ,esari =5ee

    #nneure 1>.

    #s far as the success of these coupons is concerned" it did not go well as

    epected by the company. @etailers had a very few coupons with them

    appro %% in the whole market.

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    5.15.1 RECOMMENDATIONS 9 SU--ESTIONSRECOMMENDATIONS 9 SU--ESTIONS

    S(les M(n

    5hould be well versed with the pay scale structure.

    !ncentive slabs should be formulated to endure them for more sales.

    5ales man should be more friendly and solve the problems from both

    the retailers and company's point of view.

    5hould be motivated to open new outlets" keeping in mind the incentives

    being provided on it.

    5ales man should clear the schemes as soon as possible.

    5ale man should be energetic we patients 7uick decision maker

    problems solver and ready to do any kind of work related to his job

    profile.

    S#oc>is#s

    To maintain more friendly relationship with the sales man and retailers.

    &niversal launch of scheme along with the arrangement with the

    company.

    5hould have enough of display material for the outlets before launching

    a new product.

    S(les o))ice%

    To attend to complaints Oproblems being recorded by sales man as soon

    as possible.

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    To maintain cordial relationship with the sales man.

    #ll key accounts should be attended by sales officer and regular visit

    should be made every week. He should also appreciate them for their

    good work.

    @andom Osurprise checks to be made at the outlets to access the

    working of sales man and whether the schemes are duty fully given to

    the retailers irrespective of the category of the outlets.

    O%/(niG(#ions

    Clear set ? objectives for the replacement of old stock causing no in

    convenience to the retailers and sales man.

    Various schemes being offered to the retailers should be immediately

    be made available to them.

    5pecial badge or dress should be provided to sales man for

    identification.

    !ncentive package and salary package should be simplify .

    #n effective monopoly structure should be formulated for the retailers

    who are sincerely and effectively promoting the product range" with

    total authority delegated to the sales officer concerned.

    5alary should be directly reimbursed by the company to the sales man.

    To inc%e(se #he co$e%(/e o) ou#le#s.

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    There should be atleast to @edistribution stockist because the work

    load on @.5. is too high to manage is the only stockist for both Tea and

    foods.

    To increase the number of beats

    The outlet which have stopped purchasing from redistribution stockists

    due to any kind of dispute between stockists and the retailer should be

    solved by the timely action of sales officer.

    The company should come out with suggestion Letter's that should be

    given on a 7uarterly basis to all the retailer's and stockist" so that the

    sales officer handling a particular belt is aware of the problems" grodges"

    grievances of the retailers. This will help him in taking timely action

    which will save the matter's from aggravating further.

    !t should try and reduced the price gap between the wholesaler rates and

    stockists rates.

    To reduce under cutting atmosphere prevailing in the market.

    P%o?o#ion(l (c#i$i#ies )o% Ne+ D(l'( Ac#i$

    The cut price system which prevailing in the market due to the display

    scheme amount which resulted in wrong positioning in the mind of

    consumers" as far as the prices concerned to an etent it has been

    detrimental to the eact positioning of the product as the company

    wanted it to be pitched against refined oil but in some outlets it was

    sold at price lower than @s. )$. 5o it was thought as immediate

    competitor of eisting vanaspati in the market. To reposition it"

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    company should create a mental awareness campaign that elucidate

    the features that are in the 8alda #ctiv that places it against refined oil.

    They should also highlight the features that the new product is superior

    than market than the already eisting vanaspati in the market and

    because of this it is priced slightly higher" this can be done through

    advertisements" attaching or printing relevant literature on the pack.

    The company also introduced the coupon scheme but the response were

    not upto the mark. They can again relaunch this scheme with much more

    Vigour complementing the advertising campaign and this time coupon

    should also include the distinctive features of 8alda #ctiv.

    5ome gift item can be given to promote sales.

    Three wheeler vans should be more colourful" displaying new 8alda

    #ctiv.

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    %'ANNEUREANNEURE

    LIST OF OUTLETS R. S. NOT COVERIN-

    S. No. A%e( N(?e o)

    Re#(ile%s

    A''%ess P%esen#l&

    S#oc>in/

    N(#u%e Re?(%>s

    44#h#hANNEUREANNEURE

    LAUNCH PLAN FOR DALDA ACTIVE

    D(& D(#e To+n R.S. T.S.I. S(les?

    (n

    To#(l

    c(lls

    P#o'uc

    #i$e

    J

    (chie$e

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    5#h5#hANNEUREANNEURE

    FORMAT FOR OF TAE OF DALD ACTIVE DISPLA

    CHECIN-

    N(?e o)

    %e#(ile%s

    A%e( No. o)

    c(ses

    No. sol' P%ice J o)

    #(>e

    Dis*l(& Re?(%>

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    CHAPTER- 1

    INTRODUCTION

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    CHAPTER- 2

    PROJECTEXECUTION

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    CHAPTER- 3

    RESEARCH

    METHODOLOGY

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    CHAPTER- 4

    FINDING &

    ANALYSIS

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    CHAPTER- 5

    CONCLUSION &

    RECOMMENDATIONS

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    CHAPTER- 6

    APPENDIX

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    TABLE OF CONTENTSTABLE OF CONTENTS

    CHAPTERS TOPICS

    ACNOLED-EMENT

    ABSTRACT

    CHAPTER31 INTRODUCTION. &nilever as a 9arent Company

    .0 Hindustan Lever Ltd. 9rofile

    .) :rom were the Company 5tarted

    .2 Aere the company has reached today

    .$ 4ackground of Vanaspati

    .1 9resent 9rofile

    .3 :uture 9lans

    .* 8istribution of Cooking Bils and :ats

    .+ -erchandising

    Table :low of 8istribution of Doods

    .% Bbjective of the 9roject

    . eed

    .0 5cope

    CHAPTER32 PRO

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    CHAPTER3 RESEARCH METHODOLO-

    ). @esearch 8esign

    ).0 stBbjective

    ).) 0ndBbjective

    ).2 )rdBbjective

    ).$ 2thBbjective

    ).1 $thBbjective

    ).3

    CHAPTER34 FINDIN-S AND ANALSIS

    2. stBbjective :indings

    2.0 0ndBbjective :indings

    2.) )rdBbjective :indings

    2.2 2th Bbjective :indings

    2.$ $th Bbjective :indings

    CHAPTER35 RECOMMENDATION AND SU--ESTIONS

    $. @ecommendations

    CHAPTER36 APPENDI

    #nneure? :or 8etails of Butlets

    #nneure?0 Puestionnaire

    #nneure?) List of outlets are as not Covering

    #nneure?2 Launch plan for ew 9roduct

    #nneure?$ :ormat for oftake of new product anddisplay checking

    #nneure?1 9.B.9 and 8anglers

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    TO HOM IT MA CONCERNTO HOM IT MA CONCERN

    This is to be certify that NITIN PATHA a student of 9D84- =+++?

    0%%%>" -9! 4usiness 5chool has completed a bonafied and original

    research project entitled KL(unch o) Ne+ P%o;ec# (n' S(les (n'

    Dis#%i=u#ion o) B%(n'e' V(n(s*(#i i#h Res*ec# To D(l'( V(n(s*(#iK

    under my guidance and supervision.

    This project work is done for the partial fulfillment of the 9D84- course.

    The student has remained in constant touch with me and has completed the

    project as per re7uirement of the project.

    FACTUL -UIDE

    P%o). AMIT

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    A

    SUMMER PRO

    SUBMITTED BY:

    NITIN PATHA

    P-DBM MARETIN-

    +++?0%%

    -9! 4&5!55 5CHBBLNE DELHI3@

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