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

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

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