A Assessment Front Sheet - e-WLCI

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Nov 18, 2013 (3 years and 7 months ago)

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Assignment
Assessment
Report


Campus:

HYD

Year/semester


Level:


Assignment Type


Module Name:


Assessor’s Name


Student’s Name:

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E
Student’s
Name
/Signatures)


Expected Outcomes

Assessment
Criteria

Grade

based on
D,M,P,R
system


Feedback

General Parameters

Clarity

Clear
understanding of
the concept



Analytical Thinking
-


A
bility
to
analyze

the problem
realistically



Research Done
-


Research carried
out to solve the
problem



Formatting &
Presentation
-


Concise& clear
thinking along with
presentation



Subject Specific Parameters

Clarity

Understanding of
the channels of
Sales




Analytical Thinking

Ability to analyze
the
product
specifications and
the problems .








Grades

Grade Descriptors

Achieved Yes/No (Y /


Assignment Grading Summary (To be filled by the Assessor)

OVERALL ASSESSMENT GRADE:


TUTOR’S COMMENTS ON

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TUTOR’S COMMENT ON
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Assessor’s Name / Signatures:



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1.

Study the Case below and answer the following questio
ns:

a.

What sales methods HUL has adopted for selling Pure It?

b.

What could be the problems or issues in this sales method?

c.

What sales method would you suggest to HUL going forward?


“In 2007 I was doing my MBA and staying in a shared flat with two of my classm
ates, I used to notice
small kiosks near many stations in Mumbai then. All station roads had these small brown colored kiosks
with 2 sales people standing beside them. These brown colored kiosks had Hindustan Unilever written on
them. It had a container ty
pe of equipment. One day I and my friend went to one such kiosk (due to
Brand Hindustan Unilever) and asked what was it all about.

They told us very professionally about this new Water Purifier from Hindustan Unilever. They kept
explaining it and the word
Hindustan Unilever was very prominent in their description.

I was concerned if it was real or fake because:

1) I had not seen any ad for it very unlikely for a Hindustan Unilever product

2) The perception of HUL was of a typical FMCG company dealing with S
oaps, oils etc But a water
purifier?

The salespersons showed us all sorts of company documents and authorized letters. They also said that
“Pure it” being an unconventional product, HUL is going for Direct Marketing Approach in this case.
Then they demonst
rated the working of “pure it” and offered us clear and “germ free” drinking water
from the purifier.

N)

P

A Pass grade is achieved by meeting all the requirements defined.


M

Identify & apply strategies/techniqu
es to find appropriate solutions


D

Demonstrate convergent, lateral and creative thinking.


No advertising, direct approach to customers! I was impressed. We exchanged numbers and then next
day we received a call from them .By evening a guy came
to our home for detailed demonstration and we
liked it. We ordered one. Next day itself it was installed at our home.

It worked well and now I have bought a second one in my new flat where I’m staying with my family.”


Pureit is the water purifier applianc
e from HUL. Pureit made its test marketing debut in 2005. The brand
was initially launched in Chennai. During the test marketing, the result was pretty encouraging and the
brand was launched nationally in 2007.


The domestic water purifier appliances marke
t is estimated to be Rs 450 crore and is dominated by
Aquaguard from Eureka Forbes. This category was not growing very fast because of the high cost of the
product. The entry level water purifier was costing anywhere between Rs 5000
-

Rs10
, 000
.



Pureit is

a battery operated purifier made of high
-
quality plastic and has a storage capacity of 18 litres.
The company uses the following differentiation points against the main competitor Aquaguard by
claiming that the product works without gas/electricity thus t
he cost per litre of pure water is very less.
More over the brand is priced at a tempting Rs 2000 which makes it the lowest priced purifier compared
to Aquaguard or Kent.


Pureit is being positioned on the basis of its performance. The brand claims that th
e water from the
purifier is ' as safe as the boiled water'. By claiming that it purifies water as safe as boiling water, Pureit
is trying to achieve Points of Parity with Aquaguard and Kent which also claims the same feature. Along
with this POP, the bran
d tries to differentiate on the following points:



a. No electricity/gas;

b. Cost per litre low;

and c. Price of the product is also low



Pureit works on different cleaning layers to ensure purity. There is a fibre mesh layer which removes
visible dirt
. Next there is a unique carbon trap that filters harmful pesticides and dirt. The next is the USP
for Pureit


“Germ
-
kill processor” which kills all the bacteria and virus. Then there is a polisher which
gives clear odorless water and a battery life indic
ator which tells you when to replace the battery. The
product has a capacity of 9 liters in the upper chamber and 9 liters in the transparent chamber. According
to the product website, the battery lasts for 1500 liters and the replacement battery costs Rs
250.


As and when the battery life indicator button turns “red” it is understood that the battery is exhausted.
Battery must then be replaced immediately. Till the time the battery is replaced, the “auto switch off”
function in
-
built in the purifier automa
tically switches off the water supply. This ensures that no one
drinks water from it that might not be pure anymore.


Pureit is now being promoted through all media. There are ads in local print as well as TV. Being the
FMCG major, HLL was able to place th
e product in most of the supermarkets and key consumer points.
The brand uses the tagline " As Safe as Boiled water'. The brand is mainly targeting households
(mothers) which have small kids.



Apart these common above the line promotions, what has struck
me was the below the line promotions
that HUL has undertaken for Pureit. A visit to my doctor proved it. There was a product displayed
prominently in his clinic with all necessary brochures and inquiry forms. The brand is using the
influencing power of the

medical fraternity to its advantage. For the doctor, it just means that his patient
has access to pure water while waiting but for the brand this small gesture adds lot of authenticity. HUL
has done pretty good homework on this product. The brand is avail
able in shops and also sold through
direct marketing associates.


Although the low price of this product will help it to penetrate many households, there are certain issues
also. Pureit is a consumer durable that requires after sales support. When even spe
cialist consumer
durable companies are blamed for offering poor after sales support, can an FMCG company deliver
efficient customer service? Another issue is the battery. Will HUL be able to offer this spare without
delay? It is crucial that the consumer r
eplace the battery at the right time and use this product. A delay in
the supply of battery can cause non
-
usage for Pureit at households thus causing bad word of mouth. May
be it is because of this fear that HUL in its website tells the consumers to buy an

additional spare battery.






























T
HE SALES METHODS

HUL
HAS ADOPTED FOR SELLING PURE IT
:


Pure it is the world’s most advanced in
-
home water purifier. Pure it, a breakthrough offering of
Hindustan Unilever (HUL
), HUL is an Indian FMC
G

company with good market share and brand
reputation. HUL launched its
‘Pure It’

water purifier

brand in 2007 after a successful test
marketing drive.

Pure it provides complete protection from all water
-
borne diseases, unmatched convenience
and affordabi
lity. Pure it’s unique Germ kill Battery technology kills all harmful viruses and
bacteria and removes parasites and pesticide impurities, giving you water that is "
as safe as
boiled
water"

Pure it has an advanced 4 stage purification which gives you safe
water that's completely free
from harmful germs







1.

Microfiber Mesh: Removes visible dirt to give safe drinking water.

2.

Compact Carbon Trap: Removes harmful parasites and pesticides to give clean
drinking water.

3.

Germk
ill Processor: Uses 'programmed chlorine release technology' to target and
remove invisible harmful viruses and bacteria and provide pure drinking water.

4.

Polisher : Removes chlorine and other contaminants to make water clear,
odourless and great tasting

Pu
re it not only renders water micro
-
biologically safe, but also makes the water clear,
odorless and good
-
tasting. Pure it does not leave any residual chlorine in the output
water. The output water from Pure it meets stringent criteria for microbiologically
safe
drinking water, from one of the toughest regulatory agencies in the USA, EPA
(Environmental Protection Agency).The performance of Pure it has also been tested by
leading scientific and medical institutions in India and abroad. This patented
technologi
cal breakthrough has been developed by HUL.


HUL had to adopt the right strategy for selling their

new product. Apart from different
kinds of sales methods such as .



Best quality of used plastic (ABS food grade)



Best quality based technological parts used
.



Designed and developed to provide “As safe as Boiled Water”



Very attractive design in two color ( Royal blue and Burgundy )



Quick service (with In 24 hour).

HUL used

direct marketing approach to the customers.

Direct marketing

involves communication by
a marketer to a prospect, without an
intermediary, via a medium that supports some degree of interaction. The concept has
largely merged with the idea of database marketing, which involves the establishment
and maintenance of quantities of data about prosp
ects and customers, which is exploited
in order to enhance the probability of making a sale to each of them.

Direct marketing is intrusive, both in relation to the privacy of personal behaviour, and
into the privacy of personal data. The degree of sensitiv
ity varies greatly, depending on
the person, the data and the context.






Personal
selling
is oral communication with potential buyers of a product with the
intention of making a sale. The personal selling may focus initially on developing a
rel
ationship with the potential buyer, but will always ultimately end with an attempt to
"close the sale"




Personal selling is one of the oldest forms of promotion. It involves the use of a
sales
force

to support a
push strategy

(encouraging int
ermediaries to buy the product) or a
pull strategy

(where the role of the sales force may be limited to supporting retailers and
providing after
-
sales service).

Kiosks
are
free

standing
, semi
-
permanent display or
retail outlet
, within a large retail
establishment

or a
shopping

mall.


HUL set up their
kiosks
near railway stations, bus stops and malls...etc.










The company uses the following differentiation points against the main competitor

Aquaguard by claiming that the product
works without gas/electricity

thus the cost per
liter of pure water is very less.


HUL

has done pretty good homework on this product. This category was not growing very
fast because of the high cost of th
e product.

More over the brand is priced at a tempting Rs 2000 which makes it the lowest priced

purifier compared to Aqua guard or Kent.


The brand is available in shops and also sold through direct marketing associates.

The brand is mainly
targeting

households (
mothers
) who have small
kids
,
and they are
delivering free products for doctors mainly child specialist.































PROBLEMS OR ISSUES IN SALES METHODS USED BY PURE IT


The basic problem with the sale of pure it water purifie
rs with reference to
customer

complaints were that of the battery backup and the battery life and the life of
this product Some questions were also put up by the customers in regards to the warranty
and the extended warranty of this product. Also some cust
omer did complain against the
services of the HUL. This was in fact much delayed and time consuming to the customers
of Pure it.


Issues in
Direct Marketing


(a) Privacy of Personal Behaviour

People's interest in enjoying 'private space' is abused by the
intrusions that are inherent in
most direct marketing techniques. A further problem is the manipulation of personal
behavior

that is the primary purpose of marketing databases and consumer profiles.
A

related matter that disturbs some consumers is the pres
umption by marketers that
computer
-
generated communications based on database content represents a relationship
with a person.

(b) Privacy of Personal Data

People have a strong interest in controlling the use of data that relates to themselves.
Convention
al direct marketing practice abuses many aspects of privacy protection
principles. On the list of most serious public concerns, financial data appears very high.

The abuse of personal data is being extended by the endeavour on the part of marketers to
conv
ert hitherto anonymous transactions into identified ones, through such means as so
-
called 'loyalty' schemes.

Public concern is evidenced through the periodic media coverage of such matters as
abuse of data collections such as the telephone white pages, cou
ncil records of dog
registrations and building approvals, and State government land titles and marriage
registration data.

(c) Consumer Profiling

Consumer profiling involves the accumulation, acquisition and cross
-
referencing of data
about individuals, p
ossibly combined with geo
-
demographic data; followed by its use for
various micro
-
marketing purposes.

(d) Consumer Interests More Generally

Privacy is one of a number of contentious issues that arise in the relationship between
marketers and consumers, i
n such areas as conditions of contract, and the recourse and
sanctions available in the event of malperformance by the marketer.

Although considerable progress has been made in relation to consumer rights, the
regulatory arrangements are not technology
-
neu
tral, and much of it evaporates in the
electronic context.

Issues in kiosks


1.

It could be hard for the prospects to listen to the demonstration, due to the tough
weather conditions prevailing in India.


2.

Though displayed on roads, not all the public
show in
terest in kiosk
demonstration. Especially, high profile prospects may not be interested, as they
look for more comfortable demonstration rather than a road
-
side demo.


3.

The cost of employing a sales force. Sales people are expensive. In addition to the
basi
c pay package, a business needs to provide incentives to achieve sales
(typically this is based on commission and/or bonus arrangements) and the
equipment.



4.

The location of the kiosk is a key factor. The traffic at the store, the peak traffic
times, the n
umber of people in the store traffic that are relevant for you, the
location of kiosk within the store; these are some important factors that usually go
wrong with kiosks.


5.

The important parameter is the quality of personnel. Since it will finally be a
per
son who will speak about the product, his/her training and his/her execution
skills could make or break the entire effort.


6.

Though this reaches the mass audience, the target audience may or may not be
reached.

.


















SALES METHODS I WOULD SUGGE
ST TO PUREIT
GOING FORWARD


Only kiosks and personal selling cannot reach the prospect,
most of the cases

advertisement
is also needed.



Display Advertising
: the use of web banners or banner ads placed on a third
-
party website to drive traffic to a company's o
wn website and increase product
awareness.





Search Engine Marketing

(SEM)
: a form of marketing that seeks to promote
websites

by increasing their visibility in
search engine

result pages (SERPs)
through the use of either paid placement, contextual advertising, and paid
inclusion, or through the use of free
search engine optimization

techniques.




Search Engine Optimization

(SEO):

the process of improving the vi
sibility of a
website or a web page in search engines via the "natural" or un
-
paid ("organic" or
"algorithmic") search results
.




Social Media Marketing
:

the pro
cess of gaining traffic or attention through
social media websites such as Facebook, Twitter and LinkedIn.




Email Marketing
:

involves directly marketing a commercial message
to a group
of people using electronic mail.




Referral Marketing
:

a method of promoting products or services to new
customers through referrals, usually word of mouth.




Affiliate Marketing
:

a marketing practice in which a business rewards one or
more affiliates for each visitor or customer brought about by the affiliate's own
marketi
ng efforts.




Content Marketing
:

involves creating and freely sharing informative content as
a means of converting prospects into customers and customers into repeat buyer
s.