A Summer Internship Report on General Training at HUL with Special Reference to “SELLING OF VENDING MACHINE” Submitted to Prestige Institute of Management & Research, Indore Towards partial fulfilment for The degree of MASTER OF BUSINESS ADMINISTRATION (MBA) Under the Guidance of Prof. Sunil Kumar Verma Submitted by: Vibhor Khandelwal Session: 2013-15 Prestige Institute of Management & Research, Indore (M.P.) [An Institution approved by AICTE/UGC, Approved program Affiliated to DAVV, INDORE] PIMR, Indore Page 1 Indore-452010 CERTIFICATE OF APPROVAL We approve this Summer Project Report titled “General Training at Hindustan Unilever Limited with special reference to promotion and selling of vending machine” as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Master Of Business Administration in Marketing Management for which it has been submitted. It is understood that by this approval we do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted. Power Pro Enterprises (Authorised concessionary of HUL) PIMR, Indore Page 2 PREFACE The project is a part of the academic curriculum required for the fulfilment of the two years full time programme, pursuing Master of Business Administration in PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH, INDORE. The project called Summer Internship Programme was undertaken at HINDUSTAN UNILEVER LIMITED. The project aimed at analysing the market potential of HUL Vending Products with respect to its competitors. The study was carried out interacting closely with the sales team as well as distributors and dealers of UJJAIN REGION. It also involved face to face interaction between different customers and corporate individuals. The project has shown a significant light on the market share of different products under Vending Division (Lipton Tea, Bru Coffee, Taj Mahal Tea Bags and some other products) with respect to its competitors like Nestle, Georgia, Wagh Bakri, and Amazon etc. Academically, the project provides a unique opportunity to have an exposure to real life business environment and to have an insight into the management ins and outs, thus helping learning to be more purposeful and meaningful. PIMR, Indore Page 3 ACKNOWLEDGEMENT After the completion of Summer Internship Report work, words are not enough to express our feelings about all those who helped us to reach our goal, feeling above this our indebtedness to the almighty for providing us this moment in life. First and foremost, we take this opportunity to express our deep regards and heartfelt gratitude to our guide Prof. Sunil Kumar Verma, PIMR, Indore for his inspiring guidance and timely suggestions in carrying out our internship successfully. He has also being a constant source of inspiration for us. Working under his guidance has been an opportunity for us to learn more and more. We extend our deepest gratitude to Dr. Yogeshwari Phatak, Director, PIMR, Indore for providing all the necessary facilities and true encouraging environment to bring out the best of our endeavours. Last but not the least we thank our family for their support, patience, blessings and understanding while completing my research. Vibhor Khandelwal PIMR, Indore Page 4 CERTIFICATE BY FACULTY GUIDE This is to certify that Vibhor Khandelwal of Master of Business Administration (MM) in academic year 2013-15 has completed his SUMMER TRAINING PROJECT work on General Training at HUL with Special Reference to “SELLING OF VENDING MACHINE”. It is a bona fide presentation of work by him under my guidance and supervision. Guided by: Prof. Sunil Kumar Verma Date: PIMR, Indore Page 5 DECLARATION I, undersigned, hereby declare that the following project title: General Training at HUL with Special Reference to “SELLING OF VENDING MACHINE” is an authentic work done by me. The information and data given in this report are true to the best of my knowledge. I also acknowledge that I took the help of primary & secondary data collection through various available resources. VIBHOR KHANDELWAL PIMR, Indore Page 6 EXECUTIVE SUMMARY Hindustan Unilever Limited is the Indian arm of the Anglo-Dutch Company – UNILEVER. Both Unilever & HUL have established themselves well in the Fast Moving Consumer Goods (FMCG) category. Unilever is a multinational consumer goods company and its products are grouped into 4 main segments: Personal Care, Home Care, Foods and Refreshment. Unilever owns more than 400 brands among which the main selling ones are: Axe, Dove, Knorr, Lipton, Lux, Surf, Sunsilk etc. Unilever was a result of the merger between the Dutch Margarine Company, Margarine Unie, & the British soap maker, Lever Brothers, way back in 1930. For 84 years, Unilever was the undisputed market leader but now faces though competition from Procter & Gamble and Colgate-Palmolive. The project gives a comprehensive idea about the “SALES AND PROMOTION OF VENDING PRODUCT” of one of the most important business sector in India, the FAST MOVING CONSUMER GOODS (FMCG) sector. The project was an endeavour to study the existing Vending Business and the Lipton’s presence in it. The objective of the training was to identify customer requirement Lipton Tea/ Coffee Vending Machine by the cold calling process, survey for promotion, using marketing strategies and selling of tea / coffee vending machine in various organization & to study the customer feedback process for installed machines at Ujjain City. The summer training was conducted for 45 days at Ujjain city under the guidance of S.T. Enterprises & HUL Vending Division Team from bottom to the top level key persons where I was able to understand each & every small step with developed, forecast for the next opportunities and the enhancement of the business with the help of clear aim & vision resulting into Customer Satisfaction. The task of installing a vending machine gets accomplice after several rounds of negotiations the respective company representative is made acquainted with the benefit his organization will get with Lipton. For this, a comprehensive cost-benefit has to be presented to him to convert the prospect into key account of HUL. Once an order is placed, the Lipton crew along PIMR, Indore Page 7 with the distributor installs the Lipton Vending Machine. Proper and regular technical support and proper providing service of premixes are provided for machine. PIMR, Indore Page 8 CONTENTS CHAPTER TITLE PAGE No. Chapter 1 9-65 1.1 Introduction 10 1.2 History 12 1.3 Vision & Mission 20 1.4 Organizational Structure 24 1.5 Financial Performance 28 1.6 Personnel Policies 32 1.7 Products & Services Offered 38 1.8 Areas of Operation 41 1.9 Vending Scenario In India 47 1.10 Technical Specification of Vending Machine 50 1.11 Competitor Products 63 Chapter 2 66-67 2. Introduction to the Project 67 Chapter 3 68-69 3. SWOT Analysis 69 Chapter 4 70-72 4.1 Conclusion 71 4.2 Suggestion 72 Chapter 5 73-74 5. Future implication of study 74 Chapter 6 75-76 6. Observations & learning 76 Chapter 7 77-78 7. Recommendations 78 Chapter 8 79-80 8. Bibliography 80 PIMR, Indore Page 9 CHAPTER 1 1.1INTRODUCTION PIMR, Indore Page 10 INTRODUCTION Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. The Company has over 16,000 employees and has an annual turnover of INR 27408 crores (financial year 2013 - 2014). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €49.8 billion in 2013. Unilever has 67.25% shareholding in HUL. Hindustan Unilever’s distribution covers over 1 million retail outlets across India directly and its products are available in over 6.3 million outlets in the country, nearly 80% of all retail outlets in India. The company claims that two out of three Indians uses its many home and personal care products, foods and beverages. HUL works to create a better future everyday and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others. PIMR, Indore Page 11 1.2 HISTORY PIMR, Indore Page 12 HISTORY In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it began an era of marketing branded Fast Moving Consumer Goods (FMCG). Followed by Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim, Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so.