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Transcript of Hindustan Unilever
SUMMER TRAINING REPORT
ON
“DIRECT SELLING”
PROCEDURE
AT
HINDUSTAN UNILEVER NETWORK
(Submitted in Partial fulfillment of the requirement for the
award of Bachelor of Information & Management)
SUBMITTED BY:
RAVIKANT SHARMA
BIM-FINAL
SESSION (2007-10)
UNDER THE KIND GUIDANCE OF:
PARVEEN TYAGI
(DIRECTOR OF NIE)
OPPOSITE MAHINDRA TECH, NOIDA
(AICTE & AIMA AFFILATION)
ACKNOWLEDGMENT
First and foremost, I extend my heartfelt gratitude towards my college and HINDUSTAN
UNILEVER NETWORK for giving me an opportunity to work on this project.
I extend my heartfelt thanks to Mr. PARVEEN TYAGI for being my Mentor & Project
Guide for the Summer Internship. His constant guidance and motivation has enabled the
successful completion of this project .
It would have certainly not been possible had it not been for all of the aforementioned,
who took a great deal of interest in the progress and assisted me throughout my
internship.
The corporate exposure & training an inevitable of professional academic is the best
manifestation of industry academic interaction. Accordingly, I must, in all humility, than
HINDUSTAN UNILEVER NETWORK for providing me excellent opportunity to
pursue this academic exercise.
Last but not least, I would like to thank all consultants of the company how inspired and
helped me to my job effectively
RAVIKANT SHARMA
EXECUTIVE SUMMARY
Summer internship at HINDUSTAN UNILEVER NETWORK gave me the opportunity
to observe the organization process, their marketing and distribution pattern.
The objective of the project was to understand the system of value proposition and long
lasting relationship with the customer and after understanding the system, giving
suggestions on how to improve the sales by plugging the aberrations in the system.
I spent most of the time on understanding the dynamics of this new business. During my
training I was exposed to the various processes which HINDUSTAN UNILEVER
NETWORK was following in its day to day working. First of all, I was exposed to HUN
scenario as a whole and then my study was concentrated on DIRECT SELLING BY
HUN.
I had visited many Consultants, understanding their system of working, understanding
how they perceive the system from delivery point of view which was very important as
he is the ultimate face to the customer.
Finally, I studied the market projection; the data is collected on observation,
questionnaire basis.
These eight weeks at HUN has provided me with immense exposure to various services
which HUN is providing to the customers.
TABLE OF CONTENTS
1. Company Profile
2. Objective of study
3. Research Methodology
4. Introduction to study
5. Data Analysis & Interpretation
6. Finding
7. Conclusion
8. Recommendations
9. Limitations
10. Bibliography
11. Annexure
COMPANY PROFILE
HINDUSTAN UNILEVER NETWORK
Launched in 2003, Hindustan Unilever Network (HUN) is the direct selling arm of
Hindustan Unilever Limited. HUN is a multi-brand direct selling business, with the
objective to become the most preferred business opportunity in the country. HUN’s
business model is very simple. It partners its Consultants in achieving success by
presenting them with a business and self- development opportunity that is truly
rewarding.
Hindustan Unilever Network’s multilevel direct selling module lays specific emphasis on
training and support through HUN Centers and HUN Academy. This unique module
pioneered by Unilever is known as Partnership Marketing. This is tri-partite relationship
b/w the Consultants, their Sponsors and the Company. In this type of module, the
company offers a strong support system to individual entrepreneurs in the following
ways:
Create comprehensive learning programmes for imparting business and product
knowledge as well as personal development.
Creating training and self-study materials.
Conducting training programmes at regular intervals.
Providing support through HLN Centres in terms of point of purchase, product
demonstration and networking opportuinies.
This Partnership Marketing module is currently being promoted by Unilever in three
countries, viz., South Africa, Thailand and India.
VISION STATEMENT
To earn the love and respect of India by making a real difference to the lives of million
Indians.
MISSION STATEMENT
Helping each one of them get more out of life with a range of products that promote
beauty, health & vitality.
PRODUCT & BRAND SALIENCE
HUN has developed a wide range of products catering to the daily needs of the Indian
family. HUN products are developed based on a deep understanding of the consumer’s
habits and needs. Every products goes through rigorous tests for quality to ensure that our
customer enjoy world-class formulation.
RANGE OF PRODUCTS
Aviance Beauty Solution
Ayush Spa Respiratory and pain
relief
Lever Home
D.I.Y
Aviance Prestige Range
Aviance Men’s Solutions
Salon PRO
Ayush Spa skin rejuvenation
Ayush Spa hair vitalization
These products are specifically developed for the Direct Selling Channel, and not
available on sale at any retail outlets. Realizing the importance of providing sound
product knowledge and the right advice to its consumers, HUN continuously trains and
keeps its Consultant updated with new learning tools. This enables the Consultants to
offer expert advice to their customers in choosing the products best suited to their needs.
TRAINING & WORKSHOPS
Along with a portfolio of world- class brands, HUN also supports its Consultants with
world-class training to achieve success in their direct selling business. HUN trains its
Consultants in conducting Beauty Parties for Aviance and Better Living Workshops for
Ayush. It has also developed special training material to guide Consultants in the best
way to set up their own kiosks and Exhibition. All training material is developed by
experts and all the consultants receive a certificate at the end of the training
.
NETWORK BACKUP & SUPPORT
To initiate and help all the consultants and people within their network and their
prospects to achieve their goals, HUN Services Centers across the country. These centers
play a pivotal role in meeting the needs and servicing the massive Consultant community
spread across 1500 cities in India. HUN Services Centers provide the right ambience and
impetus for learning, conducting business and networking opportunities to existing
Consultants and their prospects. These centers are manned by courteous and experienced
staff that provide information about products, impart product and business training, assist
in the administrative formalities and address queries and specific grievances of the
Consultants.
CREATING NEW LEARNING & CULTURAL
PARADIGMS
Training and development are inseparable aspects of any business activity, more so in the
networking business where one needs to constantly adapt to the changing market
dynamics, upgrade skill sets and acquire the right product knowledge to succeed.
HLN informs each and every Consultant about every new learning opportunity. Special
stress is laid on attending the training programmes so that the consultant understands and
imbibes the nuances of the HUN business ethics and opportunities. Training is imparted
in different areas like basics of Business Building through Leadership Seminars.
A unique concept of certification has also been developed by HLN wherein anyone can
become a certified Star Trainer and use the company training modules to train in his/her
line of sponsorship.
OBJECTIVES OF STUDY
Following were the objectives of the study conducted:
To study the basic concepts of Direct Selling.
To study the consultant goals as consultant start their journey.
To study the basic processes that will help consultant to achieve their goals.
To learn in-depth about the Unique Selling Proposition’s (USP’s) & the quality
story of HUN’s Products that can become the pillars of consultants business and
help them to create a loyal consumer base
RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. Why a
research has been undertaken, how the research problem has been defined, what data has
been collected and what particular method has been adopted and a lot of similar other
questions are coined for research methodology.
Redmen and Mory defines “Research as a systematized effort to gain new
knowledge”.
It basically describes the procedure for conducting the study. It includes research design,
sample size, data collection and procedure of analysis of research instrument.
RESEARCH DESIGN
A research design is purely and simply the framework for a study that guides and
collection and analysis of required data. It is the conceptual structure within which the
research is conducted. Its function is to provide for the relevant evidence with minimum
expenditure of effort, time and money. In this project I have used Descriptive Research
Design.
DATA COLLECTION
After the research design was formulated, the process of data collection was initiated.
PRIMARY DATA
I have collected the primary data for my study by interviewing a number of consultants of
“HINDUSTAN UNILEVER NETWORK”.
SECONDARY DATA
The secondary data has been collected from the official site of the company.
RESEARCH TECHNIQUE
As the main source of data is primary data, so survey is used as a method of data
collection .A survey is a research technique in which information is gathered from a
sample of consultant by the questionnaire and an interview.
RESEARCH TOOL
The Direct selling questionnaire and structured interview are used as a tool of survey
research technique.
SAMPLING
It is the process of using a small number of items or parts of a large population to make
conclusions about the whole population.
SAMPLE SIZE
A sample size of 50 consultants was taken and found to be appropriate for the purpose of
study.
INTRODUCTION TO STUDY
WHAT IS DIRECT SELLING?
Direct Selling can be best described as the marketing of products and services directly to
consumers in a face to face manner, generally in their homes or the homes of others, at
their workplace and other places away from retail locations, usually through explanation
or personal demonstration, by an independent direct salesperson. Worldwide, the number
of direct sellers is growing at 220,000 per week.
MLM – A DEFINITION
Multilevel marketing allows sellers to build a business through their own sales efforts and
by inviting others to become sellers. Remuneration is based on a seller's personal sales
and on the combined sales of those people they have sponsored, trained and motivated.
DIRECT SELLING VS DIRECT MARKETING
The main difference between the two methods of selling is the face to face or personal
contact with the consumers in case of Direct Selling versus a contact through some form
of media in case of Direct Marketing. However, Direct Selling organizations may
sometimes use direct mail to enhance their business.
BENEFITS TO CONSUMERS
This form of marketing goods or services directly to consumers takes place: at the
customer's convenience often in his/her home either on a one-to-one basis, or in the
context of a sales party. Customers value the advantages of convenience personalized
attention a good selection of products ability to examine the products for a period of time
protected by a customer refund policy.
BENEFITS TO SELLERS
Many of these people have chosen direct selling because they want to own their own
business, but do not have : considerable funds required to buy a franchise or start a new
company training time education Among the top five reasons people sell direct are that
they: like and believe in the product like being their own boss, and working their own
hours like the supplemental family income or like making extra money for themselves
feel that the harder they work, the more money they can make enjoy selling and meeting
people.
BENEFITS TO COMPANIES
In today's world of rapid change, direct selling offers companies: a direct distribution
channel that can be accessed immediately bypassing rigid and costly traditional
distribution channels.
DIRECT SELLING REALITY
Direct selling businesses now operate in 170 markets worldwide. In the US, Western
Europe, Japan and Australia, direct selling accounts for 0.70% to 1% of the national
Gross Retail Product. DSAs affiliated with WFDSA are now established in 60 markets
worldwide and in 2007 alone accounted for collective sales of US $203 billion - 70% of
the total direct sales channel. The fastest growing worldwide direct selling markets are
Russia, Eastern Russia, Eastern Europe, China, and India. Direct selling is the world’s
largest provider of micro-business opportunities. Sales in the U.S. have more than
doubled in the last decade to more than $30 billion and are now more than $100 billion
worldwide.
In India, direct selling has existed for the past 15-20 years and several large MNCs have
entered the market recently. It is estimated that during the past eight years about
14,00,000 persons have benefited from the opportunities offered by the industry
generating a turnover in excess of Rs.3110 crore alone.
People from literally all walks of life, of all ages, are successful in direct sales. About 75
percent of those working in direct sales are women, 10 percent are African American, six
percent are Latino and three percent are Asian, Native American or other. Many people
start part-time, and later leave their other careers when direct selling becomes more
lucrative.
A direct selling business opportunity is equivalent to a mini-franchise with an affordable
entry cost for a business kit and sample products which is normally charged at cost and is
refundable if a direct seller decides not to go ahead. In some markets, DSOs make no
charge for a business kit. Direct selling is a dynamic and vibrant channel of distribution
that offers a potentially exciting income opportunity to a large and growing number of
people across the globe. It is a form of person–to-person contact activities that helps
people to be a part of the globe organization without any great financial investment and
yet experience and earn rich reward in terms of entrepreneurial practice ,great lifestyle ,
secured future for both themselves and their families , and a wonderful bonding with
society. An entrepreneurial streak, flexible attitude, and investment of quality time and
tireless efforts are all one need to succeed in this line of business.
Both Hindustan Lever and Hindustan Unilever Network with their world class product
suite and services are designed to meet this growth.
WHY DIRECT SELLING?
Research shows some of the most popular reasons people choose direct selling are:
Direct selling is a good way to meet and socialize with people.
Direct selling offers flexible work schedules.
Direct selling is a good way to earn extra income.
Direct selling is a good way to own a business.
Earnings are in proportion to efforts.
Anyone can do it.
There are no required levels of education, experience, financial resources or physical
condition. People of all ages and from all backgrounds have succeeded in direct selling.
Direct sellers are independent contractors. You're your own boss, which means you can:
Work part-time or full-time - you choose when and how much you want to work.
Set your own goals and determine yourself how to reach them.
Earn in proportion to your own efforts. The level of success you can achieve is
limited only by your willingness to work hard.
Own a business of your own with very little or no capital investment.
Receive training and support from an established company.
CUSTOMERS’ RESPONSE TO DIRECT SELLING
According to recent surveys, 74 percent of Americans have purchased goods or services
through direct sales. That's more than the number who have purchased through television
shopping and on-line computer services combined. People value the products available
through direct selling and 45 percent of Americans want to buy from direct sellers.
PRIMARY METHODS OF SELLING
Direct selling companies primarily sell their products by one of the two approaches:
Group Demonstration or Party Plan:
Under this system the salespersons demonstrates products to a group of guests, invited by
a host/hostess at a convenient location to a group of prospective customers who are aware
of the purpose of the meeting before hand and are interested in the demo.
One-on-One or Person to Person:
The salesperson talks to one customer at a time under this system.
How to identify legitimate direct selling opportunities:
Start up costs should be minimal. The startup fees in direct selling companies are
generally modest - usually the cost of a sales kit. Companies want to make it easy and
inexpensive for you to start. Pyramid schemes make their money through fees paid by
new recruits or by loading inventory or training aids on them. High entry fees should be a
warning sign.
You should be able to return unsold inventory. Companies belonging to the Direct Selling
Association "buy back" unsold marketable products purchased within the prior 12 months
if you decide to quit the business, for 90 percent of the price you paid for them. The DSA
Code of Ethics requires that member companies do this. Beware of opportunities that
encourage "front end loading," or buying large inventories of unreturnable products to
reach achievement levels or receive a "special" or larger "discounted" price.
Is the money you'll earn based on the sale of products or services? The answer should be
"absolutely." This is a key element of a legitimate business. Direct selling, like other
methods of retailing, depends on selling to customers who use and/or consume the
product. This requires quality products and services sold at competitive prices. Beware of
any business that claims you can get rich by solely using their products or by recruiting
new people into the business. You should also believe in the products or services you'll
be selling.
Ask yourself, "Would I buy this product if I weren't in the sales organization?" If the
answer to that is no, think twice about the opportunity.
How to Get Started:
1. Identify a company and product that appeal to you.
Check our list of member companies or look in your local phonebook.
2. Take your time deciding.
Does "getting in on the ground floor" mean that everyone joining after you will be less
satisfied or happy? A legitimate opportunity won't disappear overnight. Think long-term.
3. Ask questions.
About the company, its leadership, the products or services, start-up fees, realistic costs
of doing business, average earnings of distributors, return policies, and anything else
you're concerned about.
4. Get copies of all company literature.
And read it!
5. Consult with others who have had experiences with the company and its
products.
Check to see if the products or services are actually being sold to consumers.
6. Investigate and verify all information.
Do not assume that "official looking" documents are accurate or complete or even
produced by the company, as opposed to the person trying to recruit you.
7. Need help evaluating a company?
Check to see if the company in which you're interested is a member of the Direct Selling
Association. If it is, you can be assured the company has pledged to abide by and uphold
the DSA Code of Ethics. In addition, you might want to call your local Better Business
Bureau, state attorney general or consumer protection office.
DATA ANAYSIS AND INTERPRETATION
PRIMARY DATA FINDINGS
The following data analysis and interpretation has been done on the basis of primary data
collected through the medium of questionnaire.
DISTRIBUTION OF WORKFORCE
RATIO OF GENDER OF CONSULTANTS IN HUN
INTERPRETATION
The figure above shows that direct selling business is very popular among the females.
Females contribute a huge chunk of this business ( 84% ) as compared to males ( 16 % ).
The reasons attributed to such popularity among females are that women consider this as
a good way to meet and socialize with people. Also, direct selling offers flexible work
schedules and is a good way to earn extra income. Some of the women find direct selling
a good way to own a business.
AGE OF CONSULTANTS IN HUN
INTERPRETATION
The chart for age wise distribution above clearly shows that this business of direct selling
is very popular among young generation. The respondents above the age of 35 also
started this business when they were young and now they have reached respectable
positions like that of director, manager, senior manager etc. One of the primary reasons
for young adults liking this business of direct selling is that they are more energetic and
more enterprising to try out new things in life and this is a relatively new concept of
selling. Also, it is very popular among college going students who use it to socialize as
well as earn some income out of this.
OCCUPATION OF CONSULTANTS
INTERPRETATION
The distribution graph shows a uniform mix of people from all backgrounds like working
professionals, business people, students and housewives. The important thing to note here
is that housewives and students form a major chunk (56%) of the entire workforce. For
housewives as well as college students, direct selling acts as a medium to earn some extra
income as well as socialize. It is because of this reason that people who are working get
less involved with direct selling.
FORM OF BUSINESS (MAIN, SIDE)
INTERPRETATION
The chart above clearly indicates that how the people perceive this business. Although,
many of the respondents were of the view that this is a very secure business once your
network is set up but on the whole, people take this business as a side business to earn
some extra income. Direct selling, generally, is the main business for college going
students and housewives.
LEVELS ACHIEVED IN BUSINESS BY CONSULTANTS IN HUN
INTERPRETATION
The graph above shows that as in any organization, direct selling (HUN ) also has a large
no. of people at the base level i.e. consultant level ( 4%- 14%) . As represented by the
graph, half of the respondents are at 4-7% level implying that they have just joined. A
less number of consultants (12) are there at 10 -14 % level. They are generally the people
who are 4-8 months old in this system. There are 8 managers in the group and it typically
takes around 9-12 months to become a manager, that is when your network is set up and
the future is secure. However, the time frames given above are not sacrosanct and it
really depends on the amount of effort and the seriousness with which one approaches
this business. There was a special case in which a consultant has become a manager in
only 4 months. Also, there were 4 senior managers and a director among the surveyed
people. The senior managers were there in direct selling with HUN for 18-24 months and
director was there for more than 2.5 years.
FREQUENCY OF TRAINING OF CONSULTANTS IN HUN
INTERPRETATION
This pie chart shows that most of the consultants do attend training provided by experts
regularly. HUN supports its Consultants with world-class training to achieve success in
their direct selling business. The Consultants are trained in conducting Beauty Parties for
Aviance and Better Living Workshops for Ayush. HUN has also developed special
training material to guide Consultants in the best way to set up their own kiosks and
Exhibition. All training material is developed by experts and all the consultants receive a
certificate at the end of the training. 48% of the surveyed people attend training on a
regular basis while another 36% are those who are working somewhere else and hence
are able to attend trainings and workshops sometimes. 16% of the workforce surveyed is
those people who either provide training or who are not able to attend trainings due to
one reason or the other.
MOTIVATION LEVEL OF CONSULTANTS IN HUN THROUGH
TRAINING
INTERPRETATION
The motivation level among the consultants in general is average to high. The findings
when explored deeply indicate that the people who attend trainings on a regular basis are
more motivated than those who don’t. Thus, trainings provided
by HUN are designed in an effective manner which helps to keep the motivation level of
employees very high. Only 14% of workforce is low on motivation which shows that the
direct selling business of HUN will grow more and more and more and more workforce
will join to promote this upcoming business.
SECURITY IN DIRECT SELLING IN HUN
INTERPRETATION
The chart above shows that not very high no. of people ( 28%) believe that this business
is really secure and generally these people are also of the opinion that once the network is
set up and one has reached at least at the manager level , one can feel secure about this
business. One needs to build up his/her network and cannot really boost his/her earnings
only on the basis of the sale one does. Therefore, it is a combined effort of downline that
helps the upline to notch up good significant earnings. Thus, security levels are average
in this business.
SUPPORT FROM UPLINE IN HUN TO DOWNLINES
INTERPRETATION
This graph shows the support one gets when he/she joins this business. A very large
percentage of people ( 92% ) are satisfied with their upline and the support they provide.
This actually reflects back on the company’s training and workshop module which is
designed to perfection. A new consultant, thus, on joining doesn’t feel demotivated at any
stage and hence actually boosts the business of his/her upline. It is very important for
upline to keep their downline motivated because ultimately they are the ones who bring
business for the uplines and also themselves.
SECONDARY DATA FINDINGS
DIRECT SELLING GROWTH RATES
INTERPRETATION
Direct selling business is growing at around 5% consistently over the last decade but it is
gaining pace now as the growth in 2005-06 stood at 5.6%.
DIRECT SELLING VS RETAIL SELLING
Comparison with Retail Growth Rate
(vertical axis = annual percent change)
INTERPRETATION
The graph above shows that direct selling grew at a greater pace than retail from 2001 to
2003. However, retail sales grew more during 2004-2006 but again both these methods of
selling are now growing at around 6% which means that direct selling is slowly and
steadily increasing its presence in the market.
MAJOR PRODUCT GROUPS
INTERPRETATION
The graph above shows that clothing, personal care and home and family durables form a
major part of the products sold through direct selling all over the world.
LOCATION OF SALES
SALES STRATEGY
GENDER WISE DISTRIBUTION AGE WISE DISTRIBUTION
MARITAL STATUS EDUCATION BACKGROUND
HOURS PER WEEK
WORLDWIDE SALES
WORLDWIDE SALESFORCE
INTERPRETATION
Here we find that the worldwide sales as well as sales force are increasing steadily and
hence this business is here to stay.
Also, we observe that our findings from the primary data are in line with secondary data
findings be it gender wise distribution, age wise distribution of workforce or the method
of selling
FINDINGS
RATIO OF GENDER OF CONSULTANTS IN HUN
Females contribute a huge chunk of this business as compared to males .
AGE OF CONSULTANTS IN HUN
Direct selling is very popular among young generation..OCCUPATION OF CONSULTANTS
Survey shows a uniform mix of people from all backgrounds like working professionals, business people, students and housewives. FORM OF BUSINESS (MAIN, SIDE)
People take this business as a side business to earn some extra income. Direct selling,
generally, is the main business for college going students and housewives.
FREQUENCY OF TRAINING OF CONSULTANTS IN HUN
Survey shows that most of the consultants do attend training provided by experts regularly.
MOTIVATION LEVEL OF CONSULTANTS IN HUN THROUGH
TRAINING
The findings when explored deeply indicate that the people who attend trainings on a
regular basis are more motivated than those who don’t.
SECURITY IN DIRECT SELLING IN HUN
Security levels are average in this business.
.
CONCLUSION
Based on the data analysis and interpretation, we have identified following key
observations:
Direct seling worldwide is growing at a rapid pace
Direct Selling is more popular among young generation
Direct Selling workforce at HUN is completely dominated by females
Housewives and college students form a major part of HUN’s workforce
More workforce at base level and has just joined
Motivation level among the workforce is in direct correlation with attending
trainings and workshops
Full support of the upline to new joinees
Most of the consultants take this business as their side business
Level of security not very high in this business
Training sessions are held on weekdays
Some of the other findings from the subjective questions in the questionnaire and the
subsequent interview are:
Some of the major problems faced by consultants in selling their product are:
Lack of trust
Customers usually donot trust the product because they are not aware of the drect selling
arm of HUL. This actually poses a lot of roblems and it takes a skilled consultant to
convince the customers about the authenticity of the product. In some cases, even free
usage is promoed by the consultant in order to get a loyal customer.
High Prices
Another problem apart from lack of trust is that people think that the prices of the
products are high as cmpared to other retail products available. This can agin be
attrubuted to lack of marketing by HUN.
Product Packaging
The products are available in only very few sizes and therefore it is unable to meet the
demand of many customers. Some of them want to try small sizes first and then buy
bigger sizes but because of small sizes they end up buying nothing. Also, the consultants
recognise this fact and are trying their best to influence the top management to do
something about this. Also, a couple of products are very loosely packed i.e. they are not
sealed properly. This again creates a problem of trust among customers.
One of the other key issues to be addressed here is that the information dissemination is
not smooth . In fact, information lies only with the director or senior manager and the
people below that level in the organisation are not informed regularly about the new
schemes that the company is offering in a particular period and also the other happenings
on the product development front and company’s expansion plans etc. This poses a very
big threat to the organisation in near future because if your workforce is not fully aware ,
they will lose the focus as well as motivation and hence lose out on sales and thereby hit
company’ business adversely.
RECOMMENDATIONS
In light of conclusions above, following recommendations are suggested as a part of 8–
point program:
1. Training sessions on weekends
The training sessions if held on weekends would serve a 3-fold purpose:
a. It would encourage working professionals to join who would otherwise not be
able to attend trainings.
b. It would promote a good mix of youth as well as experienced people.
c. It would also encourage males toward this business as they can take some free
time out on weekends and hence promote direct selling.
2. Organise Camps in colleges
As already mentioned, college students are very much attracted towards this business.
Hence , organising more and more camps in colleges would ultimately lead to a energetic
and enthusiastic workforce with a very strong social network.
3. Increase Awareness
The consultants are facing problems regarding lack of confidence and trust among
customers and hence brand building should be promoted. The advertisements of HUL
must also lay some emphasis on HUN i.e. direct selling so that the customer is atleast
aware of the company he is buying a product of and when one identifies it with market
leader HUL, the products will sail through.
4. Success stories to be reiterated
The training sessions are effective at present but they can always be made betterby teling
success stories of HUN consultants who began their careers as every other individual and
have now reached great heights in their businesses. Once a while, these successful people
should be called to deliver talks on how they became successful and discuss their
strategies of selling the products.
5. Incentive based Trainings
Consultants should be given some incentives to attend the training because we have seen
that there is a direct correlation between motivation and training. Hence it becomes even
more important for consultants to attend the training. Also, consultants can bring in their
customers in the training so that it becomes easy for experts to convince a new comer.
6. Improve Product Packaging
This is a very long term recommendation because its not possible to produce in different
sizes very easily.Hence company should take its time but make sure that it is able to roll
out new products in attractive sizes so as to meet the demand.
7. Encourage Direct selling as main business
Training sessions and success stories are some ways of encouraging the consultants to
take this as their main business.
8. Information Flow should be smooth and proper
The major drawback in this system is the lack of information flow. The consultants need
to be aware of each and every development of the company and also about the new
schemes being launched. This promotes sales to the consultants and ultimately the
company benefits.
LIMITATIONS
Despite the comprehensiveness of this survey and the use of a representative sample,
there are some important limitations. Respondents to the survey were asked to base their
responses on records or personal knowledge. Since it is impossible to determine which
responses were based on official records and which were based on personal knowledge,
the most conservative view would be that all responses were estimates by the individual
or agency respondent.
Responses to survey questions likely were influenced by the respondents' perceptions of
direct selling as a business in their jurisdictions.
The major limitation of the survey method is that it relies on a self-report method of data
collection. Intentional deception, poor memory, or misunderstanding of the question can
all contribute to inaccuracies in the data.
Furthermore, this method is descriptive, not explanatory, and, therefore, cannot offer any
insights into cause-and-effect relationships. Also, Surveys provide only verbal
descriptions of what respondents say they do or how they feel about something.
Responses cannot always be taken as accurate descriptions of what the respondents
actually do or really feel about something. This is particularly true for behavior contrary
to generally accepted norms of society. Moreover, errors due to time constraint for the
consultants cannot be ruled out. The sample size 50 chosen here is from a single city
only, so that might lead to some kind of a biased results and hence interpretations.
BIBLIOGRAPHY
PRIMARY DATA SOURCE:
1. QUESTIONNAIRE ON DIRECT SELLING PROCEDURE OF
HINDUSTAN UNILEVER NETWORK
2. INTERVIEWS OF CONSULTANTS
SECONDARY DATA SOURCE:
WEBSITE REFERENCES:
1. www.directselling.in
2. www.dsa.org
3. www.wfdsa.org
4. www. hln .co.in
5. www.hun.co.in
6. www. directselling business.com
BOOKS REFERENCES:
1. Direct Selling Channels by Roosebloom bert
2. Direct Selling 101 by Neil and Dana Phillips
3. The 2007-2012 Outlook for Direct Selling Establishments in India
by Philip M. Parker
QUESTIONNAIRE ON DIRECT SELLING PROCEDURE OF
HINDUSTAN UNILEVER NETWORK
-Name: _________________________
-Age (in years): ______________
-Sex (M / F): ______________
-Occupation: ______________
-Is this (HUL consultant) your main business or side business? (main/ side) ________
-How long have you been associated with HUL as a consultant? (In months)
___________
-Your current level in this business?
• 4-7% • 10-14% • Manager • Senior Manager • Director
-How regularly do you attend training provided by HUL?
• Rarely • Sometimes • Mostly
-Do you feel motivated after attending a training seminar?
• High • Average • Low
-How do you rate your up line in terms of the support they have provided?
• Good • Average • Poor
-Do you get the product easily and on time? ____________
-How satisfied are you with HUL’s products? _________
-How satisfied are your customers with HUL’s products? ___________
-How satisfied are you with compensation plan (Margins offered by HUL)? __________
-What do you think is the level of security in this business?
• High • Average • Poor
-What kind of problems you generally face while selling your products?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_______________________________________________________________________
-Ways to improve direct selling process / Your personal experiences / Customer
feedback/ Any other comments
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________