PROJECT ON

RETAIL MANAGEMENT

(PERSONAL SELLING IN RETAIL)

BY

AMRIT DAS
BATCH- 15

SESSION- 2005 – 2007

INSTITUTE OF MANAGEMENT AND DEVELOPMENT

NEW DELHI
 CONTENTS

1.DECLARATION

2.PERSONAL SELLING

3. PERSONAL SELLING IN RETAIL

4.STAGES OF PERSONAL SELLING

5. FMCG SECTOR-An overview

6. TOP PLAYERS IN FMCG

7.ABOUT HINDUSTAN UNILIVER LTD

8. SWOT ANALYSIS OF HUL

 DECLARATION

I, Amrit Das, bearing Enrollment No. 251091463 a student of Institute of

Management & Development, New Delhi affiliated to MKU, pursuing Masters in
Business Administration hereby declare that the Project Report title “Personal
Selling Of Retail in FMCG Sector” is an original..Work carried out by me
availing the guidance and services of my project guide by Prof Arvind Arora , &
work under taken by me is not submitted to any other University or
institutions for award of any degree/diploma/certificate or published any time
report.
PERSONAL SELLING-Meaning

Face to face selling in which a seller attempts to persuade a buyer to make

a purchase. Delivery of a specially designed message to a prospect by a seller,
usually in the form of face-to-face communication, personal correspondence, or
a personal telephone conversation.

Unlike advertising, a personal sales message can be more specifically targeted

to individual prospects and easily altered if the desired behavior does not
occur. Personal selling, however, is far more costly than advertising and is
generally used only when its high expenditure can be justified. For example,
the marketing of a sophisticated computer system may require the use of
personal selling, while the introduction of a new product to millions of
consumers would not. Two other forms of personal selling that are not used
with high-end products are door-to-door selling and home demonstration
parties. These two personal selling methods are primarily used for personal
care products, cosmetics, cookware, encyclopedias, books, toys, food, and
other items of special interest to homemakers. Ideally, personal selling should
be supported by advertising to strengthen its impact.
PERSONAL SELLING IN RETAIL

Personal selling in retailing is essentially a matching of the customer's needs

with the retailer's merchandise and services. In general, the more skillfully this
match is made the better the personal selling. If salespeople make a good
match not only is a sale made but a satisfied customer is created (or
maintained). Thus, a long term, profitable relationship can be established.

There are three basic skills needed by salespeople to make this match
effectively:

 Salespeople must be skilled at learning the needs of the customer.

 They must have a thorough knowledge of the merchandise and service

offered by the retailer.

 They must have the ability to convince the customers that the
merchandise and service offered by their store can satisfy the customer's
needs better than that of their competitors.
STAGES OF PERSONAL SELLING PROCESS

Stage One - Prospecting.

Prospecting is all about finding prospects, or potential new customers.

Prospects should be 'qualified,' which means that they need to be assessed to
see if there is business potential, otherwise you could be wasting your time. In
order to qualify your prospects, one needs to:

 Plan a sales approach focused upon the needs of the customer.

 Determine which products or services best meet their needs.
 In order to save time, rank the prospects and leave out those that are
least likely to buy.

Stage Two - Making First Contact.

This is the preparation that a salesperson goes through before they meet with
the client, for example via e-mail, telephone or letter. Preparation will make a
call more focused.

 Make sure that you are on time.

 Before meeting with the client, set some objectives for the sales call.
What is the purpose of the call? What outcome is desirable before you
leave?
 Make sure that you've done some homework before meeting your
prospect. This will show that you are committed in the eyes of your
customer.
 To save time, send some information before you visit. This will wet the
prospect's appetite.
 Keep a set of samples at hand, and make sure that they are in very good
condition.
 Within the first minute or two, state the purpose of your call so that time
with the client is maximised, and also to demonstrate to the client that
your are not wasting his or her time.
 Humour is fine, but try to be sincere and friendly.
Stage Three - The Sales Call (or Sales Presentation).

It is best to be enthusiastic about your product or service. If you are not

excited about it, don't expect your prospect to be excited.

Focus on the real benefits of the product or service to the specific needs of your
client, rather than listing endless lists of features.

Try to be relaxed during the call, and put your client at ease.

Let the client do at least 80% of the talking. This will give you invaluable
information on your client's needs.

Remember to ask plenty of questions. Use open questions, e.g. TED's, and
closed questions i.e. questions that will only give the answer 'yes' or the answer
'no.' This way you can dictate the direction of the conversation.

Never be too afraid to ask for the business straight off.

Stage Four - Objection Handling.

Objection handling is the way in which salespeople tackle obstacles put in their
way by clients. Some objections may prove too difficult to handle, and
sometimes the client may just take a dislike to you (aka the hidden objection).
Here are some approaches for overcoming objections:

 Firstly, try to anticipate them before they arise.

 'Yes but' technique allows you to accept the objection and then to divert
it. For example, a client may say that they do not like a particular colour,
to which the salesperson counters 'Yes but X is also available in many
other colours.'
 Ask 'why' the client feels the way that they do.
 'Restate' the objection, and put it back into the client's lap. For example,
the client may say, 'I don't like the taste of X,' to which the salesperson
responds, 'You don't like the taste of X,' generating the response 'since I
do not like garlic' from the client. The salesperson could suggest that X is
no longer made with garlic to meet the client's needs.
 The sales person could also tactfully and respectfully contradict the
client.
Stage Five - Closing the Sale.

This is a very important stage. Often salespeople will leave without ever
successfully closing a deal. Therefore it is vital to learn the skills of closing.

 Just ask for the business! - 'Please may I take an order?' This really
works well.
 Look for buying signals (i.e. body language or comments made by the
client that they want to place an order). For example, asking about
availability, asking for details such as discounts, or asking for you to go
over something again to clarify.
 Just stop talking, and let the client say 'yes.' Again, this really works.
 The 'summary close' allows the salesperson to summarise everything
that the client needs, based upon the discussions during the call. For
example, 'You need product X in blue, by Friday, packaged accordingly,
and delivered to your wife's office.' Then ask for the order.
 The 'alternative close' does not give the client the opportunity to say no,
but forces them towards a yes. For example 'Do you want product X in
blue or red?' Cheeky, but effective.
FMCG SECTOR-An overview

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer
packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list
are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe
polish, packaged foodstuff, household accessories and extends to certain
electronic goods. These items are meant for daily of frequent consumption and
have a high return.

A major portion of the monthly budget of each household is reserved for FMCG
products. The volume of money circulated in the economy against FMCG
products is very high, as the
number of products the consumer use is very high. Competition in the FMCG
sector is very high resulting in high pressure on margins.

FMCG companies maintain intense distribution network. Companies spend a

large portion of their budget on maintaining distribution networks. New
entrants who wish to bring their products in the national level need to invest
huge sums of money on promoting brands. Manufacturing can be outsourced.
A recent phenomenon in the sector was entry of multinationals and cheaper
imports. Also the market is more pressurized with presence of local players in
rural areas and state brands.
TOP PLAYERS IN FMCG

Hindustan Unilever Ltd.

ITC (Indian Tobacco Company)

Nestlé India

GCMMF (AMUL)

Dabur India

Asian Paints (India) .

Cadbury India

Britannia Industries

Procter & Gamble Hygiene and Health Care

Marico Industries
HINDUSTAN UNILIVER LTD-PROFILE

Hindustan Unilever Limited (HUL), a 52%-owned subsidiary of Anglo-Dutch

giant Unilever, has been working its way into India since 1888, when it started
selling its products there. As India's largest consumer goods firm, HUL markets
more than 400 brands.

Hindustan Lever Limited (HLL) is India's leading consumer goods supplier, with
a focus on the Fast-Moving Consumer Goods (FMCG) category that includes
detergents, soap, shampoo, deodorant, toothpaste, and other personal care
items, and cosmetics. HLL's personal care brands include soap brands such as
Lux, Lifebuoy, Liril, Breeze, Dove, Pear's, and Rexona; shampoos and hair
coloring brands including Sunsilk Naturals and Clinic; skin care brands Fair &
Lovely and Pond's; and oral care brands Pepsodent and Close-Up. The
company's cosmetic line is led by the Lakme brand; HLL also produces a line of
Ayurvedic personal and healthcare items under the Ayush brand. In addition to
the FMCG segment, HLL has developed a line of food items, primarily under
the Kissan and Knorr Annapurna brands, as well as the ice cream brand
Kwality Wall's. In the early 2000s, HLL also acquired baked goods producer
Modern Food Industries. In addition to its domestic brand family, HLL sells
bulk foods, including maize, rice, salt, and atta. HLL is also an active exporter,
shipping its FMCG and food brands, as well as rice; marine products including
surimi, shrimp, crabsticks, and others; and castor oil. HLL has completed a
restructuring of its business in the first half of the 2000s, streamlining its
brand portfolio, from 110 brands to 35 "power" brands, while exiting a number
of businesses, such as teas (sold to the Woodbriar Group in 2006) and
specialty chemicals. HLL maintains a strong manufacturing presence in India,
with some 80 factories located throughout the country; the company also
subcontracts to more than 150 third-party producers. HLL is itself a subsidiary
of Unilever, which controls 51.55 percent of the group. HLL is listed on the
Mumbai Stock Exchange.
SWOT ANALYSIS OF HINDUSTAN UNILEVER LIMITED

Strength
1.Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer
Goodscompany, touching the lives of two out of three Indians with over 20
distinctcategories in Home & Personal Care Products and Foods & Beverages..

2.Due to its long presence in India, has deep penetration, 20 consumer

productcategory, over 15,000 employees, including over 1,300 managers,
is to "add vitalityto life."

3.The company derives 44.3% of its revenues from soaps and detergents,
26.6% frompersonal care products, 10.5% from beverages, and the rest from
foods, ice creams,exports, and other products.

4.Low cost of production due to economic of scale. Better market penetration

.
5.HUL is also one of the country's largest exporters; it has been recognised as a
Golden Super Star Trading House by the Government of India.

Weakness
1.Profitability is uneven across product line

Opportunities
1.Increasing per capita national income resulting in higher disposable income.

2.Growing middle class and growing urban population.

3. Increasing gifts cultures.

4.Increasing departmental stores concept - impulse @ at cash counters.

5. Globalization.
Threats
Competition IN FMCG sector from well established names.