Document Sample
					                PROJECT AT GLANCE

Name of the Unit        :   BALAK SALES AGENCY

Address            : “Deep prakash”
                      23/35, new jagnath plot,
                      Rajkot – 360001.

Year of Establishment: 1931

Constitution       : A Public Ltd. Multinational Co.

Dealership of         : Hindustan Lever Limited

Head office           : Mumbai

Type of Product      : [1] Home & personal care products
                      [2] Food & Beverages

Personnel            : Workers -41000
                      Managers -1550

Operations in India : spread across 70 + locations in India.
                    Its          operation involves 2000
                    suppliers & 7000 stockiest & agents.

Competitors          : Palmolve, Nirma, Godrej, Emami.


No              Name         Page No.
1    Introduction               3
2    History & Development      4
3    Achievements               8
4    Corporate Purpose          9

5    Social Responsibility     10
6    Products                  13


      In today’s modern world, we see many different
products coming into the market, some products going out
of the market, sales of some products going up where as
sales of others going down & so on. There are numerous
ranges of multifarious products available in the market.
There are so many giant industries and companies
manufacturing a series of products.

      One such company is HINDUSTAN LEVER
LIMITED. Hindustan lever limited is one of the most
famous companies in India. In today’s domestic market
Hindustan lever limited has captured the major share. It is a
known fact that Hindustan lever limited is a multinational
company. Hindustan lever limited is particularly famous for
different types of soap, cosmetic items and detergents.

     I got my training in BALAK SALES AGENCY,
Which is the dealer of this company. I received necessary
information from Mr. Prakash R. Mehta who is the proud
owner of Balak Sales Agency. He provided me information
about history, production & marketing mix.


     The Indian industries are moving rapidly on the path
of change, development and innovation. The company
known today as Hindustan lever limited began its
operations a hundred year ago. It was engaged in the
import, distribution & sales of soap and later on other
detergents. Food manufacturing facilities were set up in

     In the year 1956 Hindustan lever ltd came into being
through a merger of

        Two lever brother India limited
        Hindustan vanaspati mfg co. ltd.
        United traders limited

      During the last 2      decades, major diversification
programmers as well a       capital investment in backward
areas are undertaken. All   through this period the company
has continued to invest     in and strengthen it selling &
distribution system.

     The 1998, sunlight soap was introduction in India.
After sunlight Dalda, pears, lifebuoy, lux soap, vim etc.
were introduced in India. In 1955, 65% of management in
lever industries were Indians.

     In the year 1991
          Lifebuoy plus, breeze sandalwood, surf ultra
detergent launched.
In the year 1992
     Dab gram soap unit commissioned.
     HLL was recognized by Govt.of India as

    Star trading house in exports.

In the year 1993
   Hindustan lever’s largest competitions Tata oil
     co. joined hands with Hindustan lever w.e.f. 1st
     April 1993. Merger was ultimately accomplished
     in December 1994.
   Launching of Vim Bar

  In the year 1994

     Nepal lever limited formed in which
      Hindustan lever acquired 80% equity stake.
     50:50 joint ventures between Hindustan ever
      and US based Kimberlerg–Clarck Corporation.
      New venture named Kimberlerg Clarck Lever
      Ltd. Formed to marked haggis diaper & kotex
      feminine care products. Factory set up in Pune
      in 1995.
     Hindustan lever introduced walls.

In the year1995

        A 50:50 joint venture between Hindustan lever
         limited and Lakme Ltd.
        Brooke bond A1 launched.

    In the year 1996

        Merger of Group Company. Brooke bond Lipton
         India ltd. With Hindustan lever ltd.
        Joint venture with Lakme Ltd. Started operation
         on 1st January 1996.
        Introduction of branded Aata.
        Launching of Surf Excel.

    In the year 1997
       Set up of international research laboratory in
       New regional innovation centers come up.

    In the year 1998

        Ponds India ltd. Merger with Hindustan lever
         ltd. W.e.f.1st January, 1998.
        HLL acquired 50% equity in Lakme Lever Ltd.

In the year 2000

   HLL acquired 74% stake in modern food
    industries ltd, the first public sector co. be
    disinvested by the govt. of India. The company
    has celebrated its Diamond jubilee. Mr. S.M.
    Dutta Chairman (1991) enlightened the spirit by
    ushering the following graceful words. “The
    history of Hindustan lever ltd in not a history
    so much as retelling of a spirit that had
    permitted every steps of this company. It’s a
    tribute and record.”


  In the year of 1992, Hindustan lever ltd. Was
   recognized as ‘star trading house in exports”
  The Forbes Globle ranked HHL as the world’s
   household product company.
  The eastern economics review has been selecting HHL
   as “India’s o.1 co. in overall leadership.”
  The marketing strategy & distributions channel of
   HHL has also been ranked 1st.


  Achieved glorious result in Arjun Award contest-
   Saurashtra Zone – 1996.


 To meet the everyday need of people everywhere – to
  anticipate the aspirations of customer & to respond
  creatively & competitively with branded products &
  services, which raise the quality of life.
 To bring the wealth of knowledge & international
  expertise to the service of local customers-A RULY
 HLL’s long term success requires a total commitment
  to exceptional standard of performance & productivity,
  to working together effectively, to embrace new ideas
  and learn continuously.
 To believe that to success requires the highest standard
  of corporate behavior toward employees, consumers &
  the societies & world in which we live.


     Social responsibility of the business is newer concept.
The money dose not measures the obligation of the
company towards the community. The obligation, which is
performance by the company is helpful to the company to
build its own image & goodwill in the society. It indirectly
helps business to expand their market.

      Such obligations are voluntary and hence are
influenced purely by the company’s desire to share its
prosperity & also its profits with the community. It is
expected that social responsibility and enlightened self-
regulation can help marketers to fulfill social responsibility.
Marketing strategies are formulated always in the light of
the requirement of social responsibility.

       Managers at all levels in an organization are involved
in the conflict and reconciling the following responsibility:

        A. To the society as a whole
        B. To he consumers
        C. To the employee
        D. To the government

     1. Social responsibility towards the society

      The societal marketing concept holds that the
organization’s task is to determine the needs, wants and
interest of target market and to deliver the desired
satisfaction more effectively and efficiently than

competitors in a way that preserves the customers and
society is well being.
     2. social responsibility toward the consumers

      Although marketing is about meeting needs, wants
and preference of the consumers up to the mark,
understanding customer’s and wants is not always a simple
      Some customer have needs of which they are fully
conscious or sometimes the customers become confused
when faced with multiple products to choose. Customer’s
oriented thinking requires the company to define customer
need from the customer’s point of view because ultimately
“customer is the king of the market.”

     Company gives response to the customer’s need or
what they really need. The key to professional marketing is
to understand the customers real better the competitors can.

     3. social responsibility towards the employee

         There are many reasons, which make an
employee dissatisfied on the part of the company. One such
reason of dissatisfaction is towards wages, money wages
and real wages. If both are satisfied than a worker can
worker can work enthusiastically.

           Hindustan lever ltd provides just & fair amount of
salaried and wages to its employees and thereby provides a
higher level of inspiration. They provide health and medical
facilities not only to employees but also to the family
members. They also provide premiums and bonds and
traveling expenses reimbursement.
    4. social responsibility toward the government

          Government’s major service of revenue is
collection of taxes & duties. Hindustan lever ltd pays taxes
regularly and thus discharge their obligation towards

          The company’s reputation based on high
principles of ethics reliability & pride in the products is
fairly well known. If the inheritors of that legacy guard
these principles the flag of Hindustan lever ltd will fly as
proud in incoming century as it does today.


   HLL mainly deals in 2 types of products

i. home & personal care products

    personal wash
       - lifebuoy gold
       - lifebuoy neem tulsi
       - liquid lifebuoy
       - lux –ink, white, squabble
       - lux international
       - lux facial wash
       - lux shower gel
       - rexona
       - liril
       - jai
       - dove
    fabric wash
       - surf
       - surf excel
       - rin
       - ala
    household care
       - rin shakti
       - vim bar
       - vim paste
       - domex
       - vim micro
       - magic dish wash
       - raid mosquito coil & mats

     hair oil & creams
        - sunsilk
        - Vaseline hair tonic

     Skin care
        - Vaseline

     Perfumes
        - rexona active
        - rexona cotton drive

ii. food and beverages

      a) tea
      b) coffee
      c) fruit products
      d) staple foods
        - Annapurna salt
        - Annapurna aata

                    MARKETING MIX

     Marketing is a comprehensive term; it includes all
resources and a set of activities that facilitate the flow of
goods & services from product to consumers. To plan out
marketing activities and to provide better facilities we have
to select specific market target in from of market segments
or sub division of market. The marketer formulates a
combination of a number of devices or types of marketing
activities that are co-ordinate into single marketing
programmed to reach a particular target or market segment.
The combination of those marketing methods or devices is
known ad the marketing mix.

    A successful marketing strategy must have a
marketing mix as well as target market for which the
marketing mix is prepared. The elements that make up
marketing mix are 4 and they are as under;

          I.   Decision on product or service
         II.   Decision on price
        III.   Decision on promotion
        IV.    Decision on place or distribution

     The success of company will be assorted to only by
buying the right product linked with the right promotion at
the right price & in the right place. What is right is to be
declared by the customer. The decision on one element can
also affect the other elements because the marketing mix is
changed as per change in environmental force.

     In the simplest manner, the basic marketing mix is the
blending of 4 inputs or submits which forms the marketing
system. The 4 inputs are also known as the 4ps of
marketing mix. They are;

       1) Product mix
       2) Price mix promotion
       3) Promotion mix
       4) place mix

    Following design shows the area of marketing mix

    Product mix                                  Price mix
       1.    Brand                                     1.   pricing
       2.    Style                                     2.   pricing policy
       3.    Colour                                    3.   basic price
       4.    Design                                    4.   terms of credit
       5.    Product line                              5.   discount
       6.    Package                                   6.   allowance
       7.    Warranty
       8.    service

                                   Marketing mix
                                 Focus on the target

     Promotion mix                               Place mix
        1.    personal selling                         1. distribution channel
        2.    advertising                                 a. wholesaler
        3.    publicity                                   b. retailer
        4.    sales promotion                             c. mercantile agents
              a. dealers aids                          2. physical distribution
              b. consumer                                 a. transport
                  aids                                    b. warehouse
                                                          c. inventory

     One thing should be noted that 4ps represented the
seller views the marketing tools available for influencing
buyers report.

     Lauterbarn suggested 4cs corresponding to 4ps. They
are as follows:

  1. products     :    customer needs and wants
  2. price        :    cost of the customer
  3. place        :    convenience
  4. promotion    :    communication


      Name                      Page no.
1     Introduction                 20
2     Product variety              21
3.    Colour                       22
4.    Designs                      22
5     Feature                      23
6     Size                         24
7     Qualities                    25
8     Brand name                   25
9     After sale service           26
10    Product width                26
11    Product line                 26
12    Conclusion                   28


     The product is the most tangible and important single
component of the marketing programmed. The product
policy and strategy is the corner stone of a marketing mix.
Without a production there is the nothing to distribute,
nothing to promote and nothing to price.

     “A product is anything that can be offered to a
market     for    attention, acquisition,    use     or
consumption that might satisfy a want or a need. It
includes physical product, services persons place,
organization and ideas.”
                                        - Philip kotler

      Product is a vehicle by which a company provides &
drives consumer’s satisfaction. It is the engine that pulls the
rest of the marketing programmed. If the product fails to
satisfy consumer demand, no additional cost of any of the
ingredients of the marketing mix will improve the product
performance in the market place.

      Product mix is the heart of marketing mix. To the
marketer products are building blocks of marketing plan.
Good products are key to market success. The marketer
takes products decisions first and these decisions are central
to other marketing decisions such as price, promotion and

     A product is the sum total of physical, economic,
social and psychological benefits. Marketing must define
their market in terms of production function - what the
consumers expect from the product. Thus, the product must
compile the customer’s and wants.

     The product mix contains the following point:

     A. Product variety
     B. Colour
     C. Design
     D. Feature
     E. Size
     F. Quality
     G. Brand name
     H. After sales service
     I. Product width
     J. Product line
     K. Product consistency


     Product variety includes the number of products
produced by the company. Different products may satisfy
similar or different needs. Therefore, the marketer has to
make his strategy carefully in order to satisfy the needs of
particular segment of customers.

     In the case of Hindustan lever ltd, there are numerous
products; Hindustan lever ltd is a leader in home and
personal care products and food & beverages, all of which
makes Hindustan lever ltd India’s largest packaged mass
consumption goods (pmcg) company.
     Colour is one of the product. By using different colour
combination, customers can be attracted. It is used to
stimulate the demand of products. Not only has this but the
colour also helped to enhance the beauty of the product.

     As Hindustan lever ltd offers a variety of product,
colour in each product is different and attractive. Foreg.
HLL research center has developed the rich, creamy
contains the natural goodness of milk cream and the deep
nourishing values of vitamin E. As it contains milk, the
colour of this product has also been kept white & sky.

           It reflects the outlook of the product. It is the
totality of feature that deflects how a product looks &
function in terms of customer’s requirement. In
competition, it will offer one of the most potential ways to
differentiate and position a company’s product and service.
Design is particularly important in making and marketing
durable equipment retail services and packaged goods from
the customer’s point of view, a well designed product
would be pleasant to look at and easy to open install, use,
repair & dispose of. The designer has to consider all the
above facts while designing the product.

     One very attractive of HLL is “pond’s talcum powder.
The covering i.e. the packaging tin has got an eye-catching
design. So far as PONDS is concerned there are so many
types. Following are the most common ones.

          EXTRACTS shows pink- white colour combination
          & flower drawn on the tin.
          shows purple white colour combination and butters
          and stars drawn on the tin.

             The term feature refers to choose inherent
     characteristic of the product, which makes it different
     and unique from other products. A feature has the power
     to switch up the consumer from product. So, the
     company has to become innovative in adding new
     features to its products.

       So far as HHL is concerned it includes innovative
     feature almost in it every product.

       For e.g. the recent product improvement is Lifebuoy
     Neem Tulsi, which has got the herbal feature of Tulip &

5.   SIZE
     If the product is of durable nature then it has to be a
particular size. It may be big, small or as per consumers

     Hindustan lever ltd for instance, offer following
quality sizes in different Rexona soaps.

         Rexona coconut – 100 gm

         Rexona coconut -125 gm

         Rexona coconut -150 gm

         Rexona coconut - 75gm

         Rexona sandal- 100gm

         Rexona sandal – 125gm

         Rexona sandal - 75

          Quality is the pre requisite to market leadership.
Industry with low quality products cannot run longer.
Consumers do not want cheap quality but they want value
for money. They are ready to spend more for high quality
so the firms will have to seriously examine their product

          One of the corporate practices of HLL is quality
policy. HLL is very much concerned about the quality of its
products and has a separate quality functioning term.

          A brand name is a name, symbol or design or a
combination of these, intended to identify the goods or
services of one seller or group of sellers and to differentiate
them from those of competitors. Branding is the best means
to capture and return the consumers demand in a
competitive market. The marketer creates brand equity,
brand loyalty and brand image for its product only through

          Thus it is one of the most effective & competitive
tools and in a way represents A FACT IN THE CROWD
STRATEGY. In taking brand decision the firm ha to
consider the target market; cultural influence on the market
and role the brand will play in its business strategy.

         Over the past 70 years, HHL has introduced about
110 brands. It focuses on 30 power brands, most of which
have become market leaders and household name in the


         After sales service is an important aspect of
marketing transaction. It covers repairs, spare parts &
maintenance. Marketing research emphasizes the
importance of after sales services in the marketing
campaign. After sales services is normally for big
appliances and huge equipments.

          Though after sales services are carried out by
machinery industries, HLL is not far back from it. At the
back of every product cover, HLL mentions that if you (i.e.
customer) have any quires write us at so and so address.


          Width in the product mix refers to the number of
product line marketed by the firm.

         HLL provider a wide range of products to its
customers. It includes home and personal care products,
food and beverages and cosmetics items.

     10.  PRODUCT LINE
           Product line consists of different products that
are closely related to each other in a sense that they satisfy
a particular class of needs or are used together, as are
distributed through the same channels, or process common
physical and technical attributes.

    HLL has so many products lines. For e.g. under
premium soap product line it includes following.

         -   Dove
         -   Lifebuoy
         -   Liril
         -   Moti sandal
         -   Lux
         -   Lux international
         -   Jai
         -   Hamam
         -   Rexona and so on

           Consistency in the product mix is the degree of
similarity between each product line.


          Thus, product mix is the heart of any successful
marketing strategy. Product mix planning is largely the
responsibility of the company’s strategic planner. A
company’s product mix has a certain width, length, depth,
and consistency. These 4 dimensions of the product mix
provide the handles for defining the company’s product

     The company can expand its business in 2 ways by
adding new product warranty to each product and finally
by pursuing more product line. The product mix of any
company should be such that all the facilities and features,
which a consumer demands, must be gracefully met. The
product mix should be such that it is beneficial to the
producer as well.


      Name                        Page no.
1     Introduction                   30
2     Pricing Objective              31
3.    Pricing Policy                 32
4.    Factors Affecting Pricing      32
5     Price List                     33
6     Discount And Allowances        34
7     Credits Terms                  34
8     Price Sensitivity              35
9     Government Policy              35
10    Pricing Method                 36
11    Types of Pricing               36
12    Conclusion                     37


     Pricing decisions have strategic importance in any
enterprise. It is the only element in marketing mix,
accounting for demand & sales revenue where other
elements are cost factors. To a manufacturer, price
represents quality of money received by the firm or seller.
To a consumer, it represents sacrifice and hence his
perception of the value of the product.

      Pricing is equivalent to the total product offering. This
offering includes a brand name, a package, products
benefits, and service after sale, delivery, credit & so on.
From the member’s point of view, the price also covers the
total market offering i.e. the consumers are also purchasing
information through advertising, sales promotion, personal
selling & distribution methods that has been adopted. The
consumer gets these values and also covers their costs. We
can now define price as the money value of a product or
services agreed upon a market transaction. We have a king
of price equation, where

  Money (Price) = Bundle of expectation or satisfaction

     Companies handle pricing in a variety of ways. In
small companies’ price are set by top management where as
in large companies pricing is typically handled by a
separate division.

       The pricing mix should cover the following points: -

        1. Pricing Objective
        2. Factors affecting pricing
        3. Pricing policy
        4. Price list
        5. Discount & allowance
        6. Credit terms
        7. Price sensitivity
        8. Govt. policy
        9. Pricing method

          To take decision regarding the price is most difficult
     task for manager. A firm must set a price a price for the
     first time. When the firm develops or acquires a new
     product, when it introduces its regular product into a new
     distribution channel or geographical area and when it
     enters into a new contract work.
          Thus, every marketing planning involves a pricing
     decision. Therefore all marketing planners must make
     accurate & planned pricing decision. The company has
     some definite idea about what it wants to accomplish
     with its particular product.

           a) To achieve target return of investment.
           b) To stabilize the price.
           c) To maintain or improve target share of market.
           d) To meet competition.
           e) To prevent competition.
           f) To maximize profit.
           g) To maintain an image.
     Pricing is an important element in the marketing mix.
Arrival at the right selling price is essential in sound
marketing mix. Price policies provide the general
framework within which the price decision can be made.
Price policies are guidelines to carry out pricing strategy.
Price policy must change and adopt themselves with the
changing objectives and changing environment.

     Balak sales agency does not have any pricing policy,
because it is dealer & the company fixes the final price of
the product for both dealer & retailers. It fixes commission,
transport charges, other expenses etc.


     There are various factors affecting price. The marketer
has to know the firm’s cost function and the influence of
external environment variable like competitor’s reaction
and government policy, besides knowing how demand
varies across different price levels.

    Hindustan lever limited considers a number of factors
while deciding upon the price. The factors include:

        a) Price of competitors
        b) Production cost
        c) Govt. excise
        d) Customers’ demand

     These four factors play an important role in deciding
pricing. Cost is the most important factor to be taken into
consideration while setting the price of the base of deciding
the pricing. The next important factor is the govt. taxes. If
the govt. taxes are to be paid more, then the prices of the
product will also increasing accordingly. While customer’s
demand and firms cost function serve to provide the
boundaries of price decision, environmental forces tend to
have an upward or downward involving effect of the price.

     Price list proved very helpful to dealers, retailers &
consumers. They become aware of the maximum price
limit. The companies have to orient & circulate price list
periodically among the dealers. The price list of every
company is reprinted from time to time depending on the
changes like technology, tax, rebates etc. price list forms an
internal part of the teamwork of the company. It is a
statement, which shows the future, profits indirectly.

     Hindustan lever limited prepares price list at the time
of budget every year. If there are any changes taking place
in the price then price list is reprinted & circulated.

       Discount and allowances are price concession offered
to traders or buyers in the form of deduction from the price
list or from the amount of bills or invoices. Many
companies are also ready to grant discounts, allowances &
special terms to their dealers and customers that they may
feel to realize how title profit may be made. Company
should measure the cost of granting each discount or
allowances against its impact on marketing the sale. They
should than establish better polices as to what should be
granted to customer in bidding for their business. There are
various types of discounts & allowances like cash discount,
functional discount, seasonal discount, quality discount,
advertisement allowances, window display amt, trade in
allowance etc.

       Hindustan lever limited allows quantity discount to
its dealer. To customer, it gives seasonal discount, buy one
get one free scheme, 20% off at Diwali time, Dove Special
Offer, Etc.

       It refers to the rules & regulations in the form of an
agreement between the producer and dealers or producers
and consumers in relation to credit facilities available from
the company. Depending on the policy of the management
of the company, credit terms may remain the same or
different from consumer to consume. Credit terms change
over a period of time. In today’s market it is a fact that each
company has to give a short or long-term credit. Then only
it can expand & sustain its market in cutthroat competition.

        Hindustan lever limited gives cash & credit facilities
to its customers but mostly they prefer cash payment.

          This is one of the customer’s behavior that
comforts the marketer. Price sensitivity is the change in
behavior of customer due to price change. The marketer has
to perform the task of knowing the customers who are
highly price sensitivity.
          In this company price sensitivity is less because
of diversified products. Price sensitivity is low if the buyer
has difficulty comparing two alternative buyers are less
pieces sensitive where the expenditure on the product is
how compared to the total cost of the end products.
     The government’s fiscal policy also contributes
towards the pricing decision. Here the company has to
consider taxes, customs and excise duties on the product of
the firm. If the government increases the taxes and excise
duties, the price of the product also increases. Even if the
firm wants to reduce the end price to the customer to
generate demand, it may not be able to do so mainly
because of the government policy.
     Thus, price mix receives more attention of the
manager because it is much more important in marketing
mix. Therefore the decision relating to prices usually
appears at the center stage. Price is such a tool, which can
attract more customers. It is reasonable with best quality.
Price mix plays a critical role in the operation and the
management of the business unit.
     Cost demand and competition underline the different
pricing methods that a firm may accept.

      Hindustan lever limited adopt the demand oriented
pricing method. In the long run the best pricing policy in a
competitive market is the market-based method of pricing.
It is safer to follow the process of import competitors who
dominates the market such a price policy will prevent price
war and assure normal profit.

     Companies usually don’t set a single price for the
product or service, but refers variation in geographically,
purchase timing, purchase frequency etc. There are
different types of pricing, which are as under: -

            1) Discretionary or differentiated pricing
            2) Discounted pricing
            3) Promotional pricing
            4) Product line pricing

     Thus in nutshell price mix is interpreted to mean,
“Money value received against exchange of goods or

     If also indicates buyers intensity of desire to purchase
also. In other words it means the factor at which buyers are
willing to pay for a product keeping in view its utility.

    The pricing are to be determined very carefully
keeping in view different factor like market conditions,
demand, supply, economic environment, etc.


      Name                          Page no.
1     Introduction                     39
2     Advertising                      41
3.    Advertising Media                44
4.    Sales Promotion                  47
5     Position of Sales Promotion      49
6     Personal Selling                 50
7     Publicity                        52
8     Conclusion                       54


     Promotion is a term form Latin, which means “move
from one end to another.” It is a communicative activity
whose main object is to pursue customers to accept ideas,
products & service. If the company has super product, best
package and also fair price, the people will not buy its
product until they are not informed. Thus, promotion is
persuasive communication to inform potential customers of
the existence of product to persuade and convince them
these products have want satisfying capabilities.

     Promotion is responsible for awakening and
stimulating consumer demand for product. It can create and
stimulate demand capture demand from rivals and
maintains demand for product even against keen
competition. It is true that nothing can be sold and nothing
can make money without some means of promotion.

     So, promotion also plays a vital role in marketing mix,
promotion is the process of marketing mix. Promotion is
the process of marketing communication involving
influence. All the marketing communication must be
planned as part of total system not as independent pieces.

    The promotion mix includes four totals they are: -

       1. Advertisement
       2. Sales promotion
       3. Personal selling
       4. Publicity

      All these tools have one dimension in common i.e.
they are all communication a message to customer “Buy
Me”. Promotion is the process of marketing communication
to inform, persuade, remind & influence consumers or users
in favor of the product or service. It is said that in a
competitive market, without promotion nothing can be sold.

     In essence, promotion is the spark plug of our
marketing strategy. It is not enough to communicate ideas.
Promotion persuades and convincing the buyer &
influences his/her behavior to take desired action.
Promotional efforts act as powerful tool of competition
providing the cutting edge of its entire marketing program.

     Promotion as an element of marketing mix has three
objectives: -

            a) Information
            b) Persuasion
            c) Reminding


     An identified sponsor can define advertising as mass
paid communication of goods services or ideas.

     Advertisement is one of the major tools, company used
to direct persuasive communication to target buyers and
public. It is a form of mass communication. A sponsor who
wants to communicate about his product or service to
customers pays it for. It is also overlapping to say that
“modern age is the age of advertising in fact it would be
more realistic to say that it is due to advertising that modern
trade & industries have been able to achieve such a
remarkable progress.”

     Advertising is not a mirror, which is not of fix, nor of
stable nature but it have wings that enfold and fly over
regions extents to which firm wishes or let it to reach. It
attracts the consumers. Advertisement makes some review
or place fort the, product in the delicate heart and dynamic
mind of the indifference consumers by influencing it in so
different manner that consumers are thumped to buy a

     Advertising programmed as an integral part of the
promotion campaign may have one or more of the specific

  Promotion of new product

     Advertising can make prospects at least aware of the
entry of the new product in the market.
  Support to personal selling

     Advertising can move the prospect nearer to the point
of purchase under favorable atmosphere. Salesman’s job is
easier and simple. Actual closing of sale is thus facilitated
by advertising, selling cost are reduced incidentally. It
should be noted that advertising and salesmanship are really
complementary and in no way competitive tools of

  Brand patronage

      In the long run, effect of advertising on brand and
campaign may be of great importance. The advertising
programme can aim at consumer awareness and attitudes.
Buyers may be induced to purchase. If the trial is
satisfactory, consumer may stick with the brand. Thus,
advertising tries to create and retain brand preference and
brand loyalty, we can have advertising relevant to each
stage, in the buying progress.

  Immediate buying action

      Advertising may attempt to obtain immediate buying
action. For, instance, mail order advertising, direct action
retail advertising, price deal offers, last chance offers are
special advertising persuading prospects and securing
prompt actions. Direct mail is the usual medium for
coupons, samples and other form of direct action

  Dealer support

     National or big firms advertising extensively &
intensively to support dealers & distributors so that they can
assure accelerated distribution. Advertising alone can create
mass markets for products, which are intrinsically sound
and can easily the consumers need and desire. Mass
marketing brings about reduction in the cost of production
as well as lot of distribution. Advertising is a powerful
promotion tools to establish & retain brand loyalty and even
stored patronage provides the product itself does not suffer
from quality deficiencies; errors in designs or other
handicaps and the retailers do not have deterioration in their
customer service.

  Create & Extend demand

          “Advertisement is two edged weapon”. It
creates demand for products and services and it also help to
maintain and extend demand. When new products,
developed products or improved products are launched in
the market, consumers are encouraged through advertising
to buy more of the product. Thus, advertising is the
quickest & most efficient way to reach the market.

  Counteract competition

          In the present world of service competition, a
firm cannot escape the responsibility of spending on
advertising. When a competitor launches a new advertising
campaign, all other firms of the same industry are expected
to follow the same action with new aggressive campaign of
their own.
                ADVERTISING MEDIA

     Advertising is said to be a system of information and
the various means through which information is passed on
form producer to consumers are termed as advertising
media. In a competitive market, a producer or manufacturer
of goods and services has to inform the consumers and
persuade them to buy his products. To serve this purpose,
the service of outside agencies is called for. Obviously
“advertising is a tripartite relationship” between the
producers, consumers and the advertising agencies.

      The most brilliant and original advertising ideas will
be wasted if they are not presented through the right media.
It is important for achieving the objectives of marketing.
“An advertising media is means or vehicle of delivering
a definite message”. It is a means through which an
advertising message or information is passed on to the
prospective customers, readers, viewers, listeners, or
passerby. Example of media is newspapers, magazines,
radio, television, direct mails, posters, films, catalogues etc.

     There are different advertising media. They can be
classified into indoor, outdoor, postal, display and special
media. Each division has sub divisions, which are shown, in
the chart.


    Newspaper      Posters             Circular            Radio & TV
    Magazines &    Boards              Business Reply      Cinema & Slides
    Journals       Electric Display    Envelops, cards     Fair & Exhibitions
                    Sandwich Board      Price List          Loud Speakers
                    Business Terms      Catalogue           Demonstration
                     & Trains            Folders &           Posters &
                    Sky Advertising      Booklets             Telegraph Dept.
                    Others              Personal Letters    Others
                                         Others

     To serve the above-mentioned objective and to obtain
the fruits by delivering all the benefits, advertising is the
only way to reach the customers at minimum cost and
maximum benefits.

      The company can advertise the products by taking the
help of its own advertising department or by advertising
agency. The agency’s major role is purchase of media time
and space besides it is directly responsible for development
of all advertising copy and of the commercial.

     There are various tools which are used to advertise the
product or service like print media, direct mail, outdoor
media, broadcast media, transit media and other form like
demonstration, exhibition etc. newspaper & magazines at
national levels and they also advertise on T.V. or different
channels ZEE, SONY, DDI, etc. they take the help of
advertising agency.

     Hindustan lever limited gives advertisement in all
leading newspapers like the Times of India, The Economics
Times and they also take the help of transit media. Their
theme of advertising is “Public awareness” which is
becoming true because in this competition market
particularly for home and personal care products. There was
a controversy whether advertisement is expenditure or an
investment. Hindustan lever limited considered it as “AN

                  SALES PROMOTION

     The fast growing Indian market, increasing
competition in market, the maturing and the standardization
of product puts a pressure on the marketer to be innovative
in his strategy. In this situation sales promotion helps to
motivate the consumers and indirectly increase the sales.

     Sales promotion is an important instrument in
marketing to lubricate the marketing efforts. It is referred to
promotional activities other than personal selling,
advertising and publicity, which stimulate the consumer
purchasing & dealer effectiveness. It includes display,
exhibition and showroom demonstration, free samples,
coupons, premiums, contests and various other non-
recurring selling efforts. It is a plus ingredient in the
marketing mix; where as advertisement and personal selling
are essential and basic ingredients in the marketing mix. It
acts as a connecting link covering the gap between
advertising and personal selling. It is not merely a luxury or
a fashion. It has been came a necessity.

      Usually, sales promotion programmed are primarily
short term in nature and designed to quickly stimulate sales.
It provides incentives to buy. Its objectives are as follows:

  A good presentation must satisfy 4 main objectives;

       1. It must be complete that means it must cover
          every point, which is likely to influence the
          prospective buyer.
       2. It must be clear & sound, must not have
          misunderstanding or vagueness in the prospects
       3. It must remove competing by providing that the
          salesman’s product is definitely superior and is
          the only product that will satisfy prospects wants.
       4. It must win confidence of prospects that
          salesman’s statements are true and the salesman
          is honestly trying to help the prospect.

     At the time of using sales promotion company must
establish objectives, select a tool to develop the
programmed to reflect the programmers to implement and
control the programmers & evaluate the results. It can
arouse enthusiasm; create a buying mode or spark of
immediate reaction from customers, dealer and the firm’s
salesperson. But only sales promotion is not effective tool,
advertisement or personal selling effectively must support

    HLL has available the benefits of sales promotion.
They prefer the following mode to promote their sales

              S    -    Smilingly
              A    -    Attentively
              L    -    Loyally
              E    -    Enthusiastically


     Sales promotion refers to activities other than
personal salesmanship, advertising and publicity which
stimulate consumers purchasing, dealer effectiveness e.g.
Display, exhibition and showroom demonstration, free
samples, coupons, premiums and various other
nonrecurring selling efforts not in the ordinary routine.

     It is plus ingredient in the marketing mix whereas
advertising and personal salesmanship is essential & basic
ingredients in the marketing mix.

                      SALES PROMOTION

           PERSONAL                  ADVERTISING

     In short, sales promotion is a bridge or connecting link
covering the gap between advertising and personal
salesmanship the two wings of promotion.


                   Pre- sale preparation


                      Pre approach


                     Sale presentation



                      The follow up

      A salesman is one who practices the profession of
selling. One can learn about selling & salesman just by
thinking about definition of personal selling.

     “The process affecting the transfer, the profit too buyer
and seller of goods & predisposed to come back to the
seller for more of the same.”

  Why personal selling

     We know that salesmanship is creative, persuasive and
educative process. It aims at providing services to buyers. It
helps in winning the buyer’s confidence.
    HLL believes that personal selling is necessary
   In the modern world, it is time to go to customer.
   To stay in competition, it is necessary to adopt
    personal selling so that more efficient and effective
    services can be provided to customer as compared to
   Adopting powerful tool of personal selling can reduce
    customer’s unawareness.
     The today’s world, market by complex technologies
and multiple choice, both product and sales and service
outlet the customer is increasingly becoming dependent on
the sales person. The customer is waiting an answer to the
question “why yours” and “why not “your competitors
product. The customer wants to the sure that he or she is
getting value for his or her money. Finally he/she wants to
be reassured that whenever service is required, the
salesperson will be there. In other words, the salesperson
that provides competitive product, information to the
customer, helps the late to apply the product in his or her
situation and also reassure the customers on prices &
     Thus, it is a two-way communication. Sales personal
services as the company’s link to the customer and sell
products to many of its customer, which in turn is profitable
to the company.

     In literacy sense, publicity means dissemination of
information about a company or a product by personal or
non-personal means and it is not directly paid by the
organization. The organization is not identified as the
source of information. Publicity refers to an appeal made to
a mass people by any media. Thus, it constitutes a mass
approach. It involves securing space in all media read
viewed by a company’s for the specific purpose of assisting
in meeting the sales goal.

      Publicity can be define as, “the only form of
commercially significant news about a product, an
institution. A service or a person published in space or radio
time that is not paid by the sponsor”.

     From the above definition and meaning it is obvious
that ‘Advertisement ‘ is the message published while
“Advertising” is a programmed or it serves as activities
necessary to prepare the message and get it to the intended
market. Another point to be noted is that advertisement is
different from publicity. In the case of advertisement, the
public can identify the advertiser or the sponsor. The
advertiser pays for the advertisement. But in case of makes
publicity the business which is benefited from the publicity
makes no payment for it. Also the public cannot understand
who is behind such publicity.

     In publicity the major tools are mainly direct publicity
that is to send out description literature to the selected
buyers regularly. Fairs and exhibitions, one of the major
medias now used all over the world is another tool for
promoting sale of customer goods as well as industrial
goods and high technology products, machines, plants &
equipment transport & mining equipment thus, publicity
media like posters, pamphlets, firms, radio, T.V., direct
mailing, demonstration, fairs & exhibitions, meeting,
conferences etc. may be arranged all together or one by one
as the case may be.

    HLL publish its product with the help of posters, T.V.,
pamphlets etc.

     Thus, marketing communication & promotion decision
are important as they help to move the product from
manufacture and to the consumption point. The relative
importance of this element in the promotion is dependent in
the nature of proud market, overall marketing strategy and
the product life cycle stage besides buyers’ characteristics.


      In nutshell, promotion mix is simply the procedure in
which any steps are taken for the purpose of obtaining or
increasing sales. Often promotion mix refers to selling
efforts that are designed to support advertising and personal

      As the promotion mix largely affects the profitability o
f the company and is a very crucial procedure the company
must prepare, maintain and develop an effective sales
promotion program in sales promotion of Hindustan Lever
Limited, following points are included: -

     1.   Size of incentive to offer
     2.   To decide the duration of offer
     3.   To determine the budget and
     4.   Finally to implement


No.                Name                   Page no.

1     Introduction                           56
2     Distribution Channel                   57
3.    Physical Distribution                  62
4.    Organizational Responsibility for      68
      Physical Distribution
5     Conclusion                             69

      Place mix is also called distribution mix. In the
marketing field through which goods are sent, services are
flow or moved from producers to consumers, a proper
channel of distribution should be selected, so that the
products of the company can easily reach to the target
customers. The decision regarding whether the product is to
be marketed through marketer or retailer or through sole
selling, agents etc. should be taken carefully because
distribution rates are critical in nature as they affect the
reliability of the firm and its producer also the decision
affect the market share of the firm and its producer also the
decision affect the market share of the firm. Following are
the major topics to be studied.
                   Distribution channel
                   Physical Distribution
     In today’s economy there are many kinds of
middlemen like wholesaler, retailer, dealer, facilitators,
agents, brokers, sales force etc. Thus channel members
right from the producer up to the customer are interrelated
and thus it becomes a total distribution system. Channel
should be managed efficiently & efficiently & effectively.
     Physical distribution looks after physical handling of
the goods assuring maximum customer’s service. It aims at
providing delivery of right goods at the right time and at the
right place to the right consumers. These activities cover
order processing, handling of goods, packaging,
warehousing, transportation, inventory control & customer
service, Old middlemen performs these functions and they
assure putting the product within an arms length of
customers desire & demand.

      Most producers work with marketing intermediaries to
bring their product market. The marketing intermediaries
make up a marketing channel also called a trade channels or
distribution indicates routes or paths through which goods
& services flow from the producer to the customers and it
             Importance of distribution channel
             Channel levels
             Coverage
    Marketing institution considered as channel
components are
     All kind of agent middleman such as wholesalers
        & retailers.
     All kinds of great middleman such as commission
        agents, brokers, warehouse keepers & so on.
       The route or channel includes manufacturer & the
ultimate consumer as well as intermediaries. These
components are linked in the channel system by one or
more marketing flows such as transfer of title, physical
involvement of merchandise, transmission of marketing
information and the flow of money in the form of payment
of prices and other dues. The channel members right from
the producer to the consumer are interrelated and we have
the total distribution system, which is responsible for
distribution of goods and services in order to satisfy in
order to satisfy consumer needs or desires.

  A. Importance of distribution channel

     Why would a producer delegate some of the selling
job to the intermediaries. The delegation means
relinquishing some control over how and to whom the
products are sold. The producers appear to be placing the
firms dissolving in the hands of intermediaries. But
producers do get several advantages by intermediaries.

     Hindustan Lever Limited uses intermediaries to
increase their efficiency in the marketing goods widely
available & accessible to target market through their
contacts, experience, specification & sale of operation.
Intermediaries usually offer the firm more than what it can
achieve on its own.

     Making the product available to the customer is the
most convenience way in a function which only a
middleman can perform. Imagine a situation where no
middlemen exist, the cost of obtaining the product will be
very high. Further, there is also inconvenience which will
have to go through just obtain our requirement directly
from a manufacturer.

  B. Channel Levels

     One of the important decisions that the firms have to
often take is the no. of channel system crates different level
of sales and costs. Once firm choose a marketing channel, it
must usually remain with it for a substantial period. The
chosen channel will significantly affect in the marketing
mix. In today’s economy most producers don’t sell their
goods directly to the final users. Between them there are
some intermediaries who perform a variety of functions and
bears a variety of risks profits. These intermediaries make
up the marketing channel. Hindustan Lever Limited has 2
major channels of distribution.

     1. C & F.A. System (i.e. Clearing and Forwarding
        Agent) system
     2. Wholesaler System

 1)     C & F.A. System


                 DEPOT (C & FA)






                               DEPOT (C & FA)

                       (RS) REDISTRIBUTION STOCRIST



  C. coverage

      The term coverage means the spread of the area of
distribution of the company’s product. The coverage of the
market depends upon the distribution policy of the
company. The company initially wishes to cover smaller
area and it may wish to expand its horizons. The other
companies may think different as per their strategies.

     HLL has spread across its operations in majority parts
of India including more than 3500 towns & 70000 rural

  D. indirect coverage

      As said earlier, the company gives equal importance to
distribution in rural area also over the past few decades.
HLL has supplied to its rural customers directly as well as
indirectly – a wide range of product. The company believes
that in spite of the high rate of urban population growth, the
rural market offers opportunities, which are vast and are
relatively untapped.

     Unlike in urban areas, there is a indirect distribution in
rural areas.


      The marketing process is not complete simply by
creating super product and by creating a customer by
aggressive salesmanship. Delivering the product to the
consumers at the right time and at the right place is an
equally important function of marketing this vital function
is called physical distribution. In simple language physical
distribution means “the process of delivering the product
to the user or consumers. Promptly, safely and in time.
Physical distribution involves mgt. pf flows of raw
materials and finished products from the point of origin to
the point of consumption to meet the consumer’s need at

    The major components of physical distribution are.

                 Order processing
                 Warehousing
                 Inventory management
                 Transportation

Importance of physical distribution

     The ingredient of marketing mix, such as product,
price and promotion constitute the step of marketing while
physical distribution is considered half of the marketing.

      Physical distribution mgt. has assumed great
importance as it alone can reduce the cost of transport,
storage, material handling and order processing and holding
of inventories. These are the basic building blocks or
planned physical distribution because it can assure a
competitive level of increasing demand while holding down
the total cost of distribution as much as possible. The total
cost approach, the idea of cost trade offers the system
approach and avoidance of sub optimization of costs are
principal supporting concepts of the modern physical
distribution system.

  A.      Order processing

          Order processing is considered as the key to
customer service and satisfaction. Order processing
includes receiving, recording, filling and assembling of
products for dispatch.

          The amt. of time required for the date of receipt
of an order up to the date of dispatch of goods is reasonable
and ad short as possible. The company is now using a
computer system to speed up order handling. Measures are
taken to ensure proper execution of orders. Order
processing also includes

           Granting of credit
           Invoicing
           Collection of accounts

     Order serving time can act as a competitive advantage
in the marketing mix. Customer is primarily interested in
prompt, punctual, safe & reliable delivery of service. Order
processing affects the customer service level in two ways.

           1. It affects recording of time
           2. It affects the consistency or uniformity of
              delivery time
      Your customer is interested much in the consistency of
delivery time i.e. assured delivery within a fixed period.
Buyers tend to shift their order to suppliers who can
provide superior order processing service. The firm has a
standard procedure for handling order, granting of credit
invoicing and collection of accounts. If there is delay in the
execution of the order or errors commission in the dispatch
of goods it would result into customer dissatisfaction. It
will lose the goodwill of the company.

  B.   Warehousing

           The word storage means holding the stock of
goods for relatively longer period as the goods are not
immediately in demand. Warehousing involves more than
storage. Warehousing perform many of the usual function
of wholesalers, e.g. breaking bulk, dispatch of smaller
consignment to retailers, holding the stock of retailers,
equality the goods flow to retailers, proving market
intelligence and many other more changing service of
manufacturer. A full service warehousing is called a
distribution center.

      Warehousing is fixed facilities where companies store
their inventories usually for longer period.

          In HLL, warehousing is very strictly followed up
at C and F.A. & R.S. level. There are certain specifications
for storage.

  For e.g.

    1. All soaps are stacked in “Honeycomb fashion to
       give proper air condition and minimum 6 inches
       space is to be kept between each stock.
    2. Stock is made up on wooden plant to prevent
       moisture seepage.
    3. Godowns are kept properly ventilated and are
       carefully checked everyday.
    4. Stocks are rotated every week and dispatches are
       made in FIFO (First in first out) method.
    5. After every 2 rows 11/2 feet space is provided
       between socks for walking and lifting stocks.
    6. Nor more than 8 cartoons are to be stacked on top of
       other. For gunny bags up to 6 levels can be
    7. Carbonic soap and detergents are being kept away
       from                    each                  other.

  C. Inventory management

     Marketing mgt. is directly interested in effective
management and control of inventory, as inventory mgt. is
a powerful tool in the process of creation and satisfaction of
customer demand. Inventories are reservoirs of goods held
in anticipation of sales. Inventories are the link; inter
connecting the customer’s order and company’s production
activity. In fact the entire physical distribution mgt. rotates
around the inventory mgt.

      Inventory mgt. is the heart of the game of physical
distribution. Managerial decisions regarding

     1. size
     2. location
     3. Significance is to taken.

          In physical distribution system, inventory is
temporary in the form of raw material in process and
finished goods. On an avg. 30% of the total assets of a firm
are locked up in inventory.

          According to the sales manager of HLL the
company maintains 1½ months of stock (made up and raw
materials) to look after problems of storage and ordering at
factory, similarly stockiest and C & F.A. are required to
keep similar level of stocks.

    Inventories are kept to meet market demands
promptly. The inventory costs factors are as follows:
          1. cost of marketing goods
          2. Cost of holding goods i.e. warehouse expenses,
             interest etc.
     In short, the entire physical distribution mgt. rotates
around the “inventory mgt. inventory mgt. aims at the
following three objectives.
        I. Never run out of anything.
       II. Never build up a very large inventory.
      III. Never send out too many small orders for more.
D.   Transportation
     It is one of the important tools of the distribution
system. To send the product at the right place, at right time
and at the right price, the marketers should be aware of
their company’s transport decision. The companies can
pipelines. At the time of taking decisions about it critical
such as speed, frequency, tractability & cist should be
considered. Thus, transport is crux of the problems of
physical distribution.
     In HLL the transportation of raw materials to factories
and finished goods to C & F.A. are duties assigned to the
transport department of the company. The “lease out model
with big transport companies for services after price
     Similarly transportation of goods to R.S. in the
responsibilities of C & F.A. who hires trucks and then


     In HLL different persons have            shared   the
responsibilities of physical distribution.

     Company salesmen place R.S.’s order at C & F.A.
      and oversee the equitable distribution of stocks of
      the retail trade from R.S.
     The deport managers oversee the equitable
      distribution from C & F.A. to R.S.
     The areas manage places indents of stocks required
      by C & F.A. at the factories and follow up.

      Thus the location of physical distribution department
with the company is a secondary concern. The important
thing is that the company co-ordinates its physical
distribution & marketing activities in order to create high
customer satisfaction at reasonable cost.


          Thus place mix is last but not the least P of the
marketing mix. It is a marketing term to describe the broad
range of activities concerned with efficient movement of
the ultimate consumer.

           The company should carefully plan and check out
the best place mix after considering the following factors.

         a. Company situation
         b. Product characteristics
         c. Market features &
         d. Economic environment.


No.                 Name          Page no.

1     Slogans of product             71
2     Celebrities                    72
3.    Corporate practices            73
4.    Various site of hill           74
5     What’s new?                    75


Pears soap :     “ the pyre glycerin soap with tender
Lux :       “the first choice of filmstars – lux aur kya”.
            lux jo chahe mujhme star jagaye.
Lifebuoy : ‘ lifebuoy hai jahan, tandurasti hai wahan’
Liril :     “taajgi main tun –liril rainfresh”
Jai         :    “pehla pyar laye jaivan main bahar”
Breeze :    “gulab ki pankhdiyon se Bana”.
Hamam       :    “nature way of skin protection-
Dove :      “Dove is not a soap it contains ¼ th
moisturizing cream”
Dream flower : “floral extracts”- complete beauty care.
Pond’s magic : “12 hour frangrance – time release
Rexona      :    “har pal saath nibhaye”.


Lux :      aishwarya rai & rani mukherjee
Liril :    priety zinta
Lux sampoo: tabu
Jai lime   :     amisha patel
Wheel :    sakshi tanwar(T.V. star)
Breeze :   hiten tejwani & gauri pradhan (T.V. stars)
Breeze (scent): rima lagoo & supriya
           (tu – tu main –main jodi)


 Following are the major corporate practices which
HLL follows:

      a) Safety & healthy policy
      b) Quality policy
      c) Environmental policy
      d) Code of business policy.

               VARIOUS SITES OF HLL

    On internet & e-commerce field also, HLL is not for
away. Following are the various sites of it

       www.unilever.Com

    What’s new ?

               New product arrival
          Following products are recently introduced by

               Pears mudbath
               Pears sleepydaughter
               Wheel active
               Wheel active bar
               Wheel with power capsules
               Knor annapurna salt
               Ponds sandal talc
               Ponds dream flower magic
               Ponds light N fresh

                       New project

     HLL is launching new products about women in
project shakti. This project is HLL’s initiative to usher
prosperity & up lift the standard of living in rural India.

     HLL also has an attachment with Variance Company,
which deals with cosmetic and personal care products, &
also which has a wide marketing and distribution network.


     We may conclude that in its entire life time, HLL has
been an organization of attracting, moldings and holding
the finest talent in this country to shape a corporation that
stands today for the highest standard of quality, innovation
and the services to the customer and the country.

     In the report presented, an attempt has been made to
focus on the marketing mix side of HLL through its R.S.
Balak sales agency at Rajkot.

     It was an excellent opportunity and I am glad that I
was provided an opportunity to make a project repot on
such a famous company.

     Las but not least, I cannot forget the golden words
ushered by one of the previous chairmen of HLL.


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