A PROJECT REPORT ON
“TO STUDY THE MARKET SHARE OF THE PERSONAL CARE PRODUCTS AT ITC PVT.LTD. (NAGPUR)
SUBMITTED TO UNIVERSITY OF PUNE BACHELOR OF BUSINESS ADMINISTRATION (TY BBA) SUBMITTED BY HARSHIT PRAVIN LUNAWAT
UNDER THE GUIDANCE OF ASSIST .Prof .RAHUL.TAMHANE
S.T.E.S SINHGAD COLLEGE OF SCIENCE AMBEGAON (BK), PUNE 2011-12
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CERTIFICATE
THIS IS CERTIFY THAT THIS PROJECT ENTITLED TO STUDY MARKET SHARE AND DEMAND OF THE PERSONAL CARE PRODUCTS. BONAFIED WORK CARRIED OUT BY MR. HARSHIT LUNAWAT STUDENT OF THIRD YEAR(TY) BACHELOR OF BUSINESS ADMINISTRATION(BBA) OF SINHGAD COLLEGE OF SCIENCE AS A PART OF FULLFILMENT OF DEGREE OF PUNE UNIVERSITY.
DR.SAMPADA JOSHI (PRINCIPAL)
EXTERNAL EXAMINAR
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MR RAHUL TAMHANE (INTENAL GUIDE)
DECLARATION
I, HARSHIT PRAVIN LUNAWAT hereby declare that this project report is the
record of authentic work carried out by me during the period 15 JAN to 30 JAN college/University or institute for the 2012 and has not been submitted to any other college/University award of any degree / diploma etc.
DATE: SIGNATURE
PLACE: Pune
(HARSHIT LUNAWAT)
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ACKNOWLEDGEMENT
I wish to express to gratitude to my college Sinhgad College of science to work with market research activity.
I am thankful to Dr. SAMPADA JOSHI, principal of Sinhgad College of science for her encouragement , active guidance & administrative support in organizing this project.
I am thankful to Professor RAHUL TAMHANE, Project guide, for his keen interest, encouragement, active guidance & support. His support & guidance for successful completion of this project is well appreciated.
Special thanks to Managing Director Mr. RAHUL MISHTA and Market Research Head MR.KSHITIJ KASHIKAR of ITC Pvt. Ltd. who gave opportunity to do my project in his esteemed company. His support & guidance for successful completion of this project is well appreciated.
At the end, I would like to render my sincere thanks to all who directly or indirectly involved in this project programmed.
HARSHIT PRAVIN LUNAWAT
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TABLE OF CONTENT
S.NO
CHAPTER
PAGE
1
EXECUTIVE SUMMARY
5
2
STATEMENT OF THE PROBLEM
7
3
OBJECTIVE OF THE STUDY
9
4
IMPORTANCE OF THE STUDY
11-12
5
COMPANY PROFILE
14-15
6
HISTORY AND EVOLUTION
17-24
7
PRODUCT PROFILE
26-38
8
RESEARCH METHODOLOGY
40-44
9
DATA INTERPRETATION AND ANALYSIS
46-56
10
LIMITATIONS
11
FINDINGS
60-62
12
RECOMMENDATIONS
64-65
13
CONCLUSION
67
14
BIBLIOGRAPHY
69
15
ANNEXURE
58
71-72
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EXECUTIVE SUMMARY
The project given to us was related “To know the market share of Personal Care Products and How to generate the demand?” The tasks were assigned to us on a weekly basis like to survey/research about the products and their market position related to the competitors products, also with an aim to know what grocery stores, chemist and cosmetics outlet wanted and what consumer demands and how to generate the demand and other various aspects. As the products were new and it was yet to be marketed to a large number of customers, it was essential to know the feedback of customers in order to formulate effective marketing and sales strategies for future and improve the quality of service to achieve better consumer satisfaction. The market survey and interaction with the consumers made us possible to measure the satisfaction of consumer by identifying the attributes, which gave consumers varying degrees of satisfaction. I have tried to know about the various sources where the ITC stand as a brand in its Personal Care Products and the questionnaire was one of the ways to get the information etc. The company offers many h ouseholds’ brands like Fiama di wills, Vivel, and Superia etc. I have mentioned about company’s background, product profile, limitations, findings which we came across during the project and also the recommendations which can to improve the position and selling of ITC’s Personal Care Products. Training with all the available Distributors and under the guidance of Mr. Peeyush Gupta helped me to understand the product and market which in turn helped to understand the stores and customers.
The problem which I faced while promoting the brand have been mentioned in detail in the report. The remark they gave about the ITC are also mentioned in the report
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STATEMENT OF THE PROBLEM
STATEMENT OF THE PROBLEM
Broadly speaking this study has been under taken on a detail study, consisting of areas covering the detail understanding of all the competitive brands of Personal Care Products. In India, Personal Care Products market since past few years, is flooded with different varieties of products of different companies. In such a situation the consumer is in dilemma in preferring a particular product because different brands of Personal Care Products amongst them. With much competition of different companies producing similar products the study is also aimed at those potential consumers of different brands and the other company’s brands like Hindustan Unilever, Proctor & Gamble etc. The different factors have been taken into consideration while ascertaining the consumer preference for Personal Care Products.
SIGNIFICANCE OF THE STUDY:
Although this study is conducted at small level (only Bhopal and nearby) yet the findings and suggestions of it will help the management of the organization i.e. ITC Ltd. in better way to understand the detail study of areas covering all the aspects of Personal Care Products it will also consist the detail understanding of the competitive brands of ITC ’s Personal Care Products. The study will also help the organization in making decision regarding promotional schemes and also identified the hidden opportunity in the certain areas. So the consumers find the product more attractive.
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OBJECTIVE OF THE STUDY OBJECTIVE OF THE STUDY:
The main objective of the study to utilize my theoretical knowledge in realm of marketing world to understand the complex or competitive market situations and gain experience with the organization, where I utilize eight weeks time to understand the difference between practical and theoretical knowledge. The study has been conducted to understand the detail study of all the aspects of retailing concerned with the ITC’s Personal Care Products. This project will help the ITC Ltd. To implement necessary steps to improve the market share especially in Bhopal. It will also help the organization to find out the loop holes.
THE MAIN OBJECTIVES OF THE PROJECT ARE:
To research about the brand awareness of the Personal Care Products. To check the availability, visibility and category movement of ITC and its competitor products. To know the impact of Retail Visibility on customers ultimate purchase intention. Understanding about the merchandizing system, visual merchandizing and display. To find out the problems faced by the retail/chemist/cosmetics outlets related to ITC products. To study the position of the ITC products in relation to competitors product. To place the products where it had not been placed and to explore the new areas. To find out the various ways of generating demand. To look out the working of distributors and salesperson.
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To look out the distribution channel and supply chain and give possible suggestion where ever possible. To know about the target customer’s of ITC’s personal Products.
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IMPORTANCE OF THE STUDY
IMPORTANT FOR THE STUDENT:
This course does not answer all the problems which arise in the practical field. There are many certain formulas for analyzing particular problems, but the aim of the study is to develop ability of decision making. A right decision at the right t ime itself helps the organization to run efficiently. Therefore, the eight weeks training is most important for the students of management. Summer training in any organization gives an idea in taking tactfully right decision at right time when problems come to an executive. So finding the solution of the problem, right decision making and knowledge of different types of marketing activities gives much more importance to the study. IMPORTANT FOR THE COMPANY:
Though today’s market is very competitive for all type of consumables, but I find that Personal Care Product market is more competitive market in a view that: (1) It is daily consumable product, (2) It is everybody’s requirement and (3) Only reputed Brands are in the market.
Therefore, every seller of this product has uphill task wholesaling the products. In such a market, it becomes highly imperative to take account of the constantly changing brand perception. It is here that this project becomes important as it aims to understand all the aspects and the detail study of all the competitive brands of ITC ’s Personal Care Product. The observational study made during the training would help the marketing division of ITC to devise effective market strategy for the given area that would ultimately help to strengthen their position in the market, would enhance brand preference amongst the consumers.
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THEORETICAL PERSPECTIVE OF THE STUDY Consumer is the sovereign in the market. All economies activity in the market namely, production, distribution, exchange, consumption are governed, regulated and adjusted in accordance with the needs and wishes of the consumers. Analysis of consumer behavior has considerable importance in marketing management, with the changing in its philosophy. In the early days these was basically sellers market, very few products concentrated in quality and reasonable price structure, with the emergence of the competitors market started flooding with goods and services, so each seller found it difficult to sell products if unable to communicate the consumers in respect of products’ quality and reasonable price.
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COMPANY PROFILE
COMPANY PROFILE;
ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 billion and a turnover of US $ 6 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness
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but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 26,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,09,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder."
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THE ITC WAY ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITC’s corporate strategies are:
Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses.
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Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.
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CORE VALUES ITC's Core Values are aimed at developing a customer-focused, high-performance organization which creates value for all its stakeholders: Trusteeship As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualize stakeholder value and interest on a long term sustainable basis. Customer Focus We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction. Respect for People We are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity. We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives. We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork. Excellence We do what is right, do it well and win. We will strive for excellence in whatever we do. Innovation We will constantly pursue newer and better processes, products, services and management practices.
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Nation Orientation We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels.
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PRODUCT PROFILE PRODUCT PROFILE
In line with ITC's aspiration to be India's premier FMCG company, recognized for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally. ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal. Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations use internationally recognized safe ingredients, subjected to the highest standards of safety and performance.
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FIAMA DI WILLS
In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products comprising shampoos, conditioner, shower gels and bathing bar. The Fiama Di Wills range combines the goodness of nature and science, providing gentle and effective care. The Fiama Di Wills product portfolio has been developed by scientists at the ITC R&D Centre, leveraging the expertise of International product formulation specialists. The fragrances, aesthetics and packaging have been developed in collaboration with European specialists. Fiama Di Wills products are targeted at the young, modern, aware customers who are confident of themselves and seek indulgences that make them feel alive and beautiful. The range combines exotic naturals like Sage, Watercress, Magnolia blossoms and the best of contemporary science like Hydro Restorative System and Cuticle Restore Technology to make the consumer feel beautiful, today, tomorrow. Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA, offer a range of five variants. Each of these is designed to deliver a specific hair benefit to the consumer :
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Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo suitable for regular use. Aqua Balance (with extracts of Magnolia Blossoms & Watercress) is a gentle moisturizing shampoo ideal for dry, dull hair. Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampoo ideal for thin, limp hair. Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth, silky and strong and is ideal for weak, damaged hair. Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny and manageable, easy to style and is ideal for dull to normal hair.
Each of these shampoos can be complemented with Fiama Di Wills Polishing Drops conditioner. This gentle conditioner enriched with Avocado Oil and Burdock extract promises to make hair shiny, soft and smooth. It also gives the additional benefits of UV protection as it contains Sunflower Seed extract, which is a natural UV absorber.
Launched in September 2010, the Fiama Di Wills Anti-Hairfall Shampoo is unique as it offers consumers the goodness of Brazil Nut, found in the Amazon Forests and the effectiveness of science with the Hair restore Technology. Brazil Nut, is known to seal in
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hair moisture giving it shine and a silky smooth texture. It also helps renew dry and lifeless hair. The Hair Restore Technology, developed at the ITC R&D Centre, helps repair cuticles and restore the protective lipid layer to reduce further damage. This strengthens hair and reduces hair fall due to breakage. The Anti-hairfall Conditioner also enriched with Brazil Nut extracts and the hair restore technology gives best results when used with Fiama Di Wills Anti-Hairfall Shampoo. The Fiama Di Wills product line also consists of a 3-variant range of transparent shower gels which are unique as they come with suspended beads:
Mild Dew (contains soft beads, extracts of peach and avocado) is for soft, moisturized skin. Clear Springs (contains jojoba beads, extracts of sea weed and lemongrass) is for clear, healthy, smoother skin. Exotic Dream (contains glitter beads, extracts of bearberry leaves and black currant) is for stimulating freshness.
Fiama Di Wills has expanded its range of personal care products by introducing Aqua Pulse shower gel, exclusively for men. The shower gel contains extracts of exotic naturals like sea minerals and blue lotus. This blue transparent shower gel refreshes and keeps skin healthy.
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The Fiama Di Wills range of bathing bars has been launched under the sub - brand SkinSense. The first variant to be introduced in this range is Soft Green. This is a gentle caring bathing bar, that helps enhance retention of skin proteins giving 6 pro care. Protein keeps skin moisturised, supple, youthful, even toned, radiant and smooth. Fiama Di Wills recently launched a range of transparent gel bathing bars. A first of its kind, a transparent liquid gel has been solidified into a bathing bar so that consumers get a superior bathing experience. The shower gel in a bathing bar format which has been crafted through a unique and patented freezing technology. Backed by deep consumer insights, this proprietary gel bathing bar is a result of years of extensive research and development by the scientists at the ITC R&D Centre.
Uniquely crafted, these Gel Bathing Bars are shaped like dew drops, have a transparent look, rich creamy lather, and a great long-lasting fragrance. These bathing bars are dermatologically tested and proven mild and contain the goodness of natural exotic extracts like Peaches, Avocadoes, Sea Weed and lemongrass. Launched in two variants that offer specific different skin benefits, are:
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Mild Dew - Contains extracts of peach and avocado which moisturise the skin. Clear Springs - Contains extracts of lemongrass & sea weed which gives Clear skin.
The Fiama Di Wills transparent Gel Bathing Bars are available at an attractive price of Rs. 25 for 110 grams. This differentiated range of bathing bars offers the consumer a delightful bathing experience.
The latest launch, the Fiama Di Wills Aqua Pulse Bathing Bar, crafted exclusively for men, gives an invigorating and rejuvenating fragrance and freshness. Its composition with Sea Minerals, Blue lotus and the Active Defense Complex gives a fresh and healthy skin.
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VIVEL
Between February and June 2008, ITC expanded its personal care portfolio with the launch of Vivel range of soaps and shampoos to cater to the specific needs of a wide range of consumers. This high quality range of soaps and shampoos are for the upper-mid and midmarket consumer segments. All products offer a unique value proposition of bringing together ingredients that provide the benefit of Nourishment, Protection and moisturization through one product, hence providing the ever discerning consumer complete care, which makes her beautiful and confident. The Vivel range of soaps is available in five variants:-
Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in providing youthful glow to the skin. Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel beautifully soft. Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in providing clear skin. Vivel Ayurveda Essence is enriched with multiple Ayurvedic Ingredients which help protect skin from germs and harsh environment, keeping it healthy and beautiful. Page 24
Vivel Silk Spring is enriched with Green Apple extracts and Olive oil which help in making skin smooth.
The portfolio was further expanded with the launch Vivel Milk Cream and Glycerine bathing bar in January 2010. This is creamy and luxurious bathing bar is enriched with the goodness of double moisturising ingredients of milk cream and glycerine. Glycerine penetrates deep into the skin and moisturises while milk cream locks in the moisture to leave the skin feeling soft and smooth. It is packed in a premium carton and has an extremely alluring fragrance.
Launched in May 2010, Vivel Deo Spirit Soap is targeted at the young, modern, Page 25
experimental, vivacious and trendy youth. The new variant made from exotic ingredients like Kiwi Fruit, known to condition the skin and Eucalyptus Oil with anti-bacterial properties, ensures a long lasting fragrance that refreshes the skin and leaves one rejuvenated for hours after every wash.
ITC forayed into the skin cream category with the launch of Vivel Active Fair in July 2010. Vivel Active Fair locks in fairness ingredients to deliver faster and longer-lasting fairness. This fairness cream helps the skin from the inside as well as the outside, thereby delivering visible results in just 7 days. Additionally, Vivel Active Fair is enriched with vitamins, minerals and moisturizers that provide total care to the skin. The cream has SPF 15 sun protection rating. The cream is suitable for all skin types.
The Vivel range of shampoos is available in three variants:-
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Vivel Shine & Glow is suitable for dull to normal hair and is enriched with Green Tea Extract and Conditioners. It adds shine to hair. Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra Conditioners and Soya Protein. It makes hair soft and fragrant. Vivel Volume & Bounce is suitable for oily to normal hair and contains Jojoba Oil and Conditioners. It adds volume and bounce to hair.
The product portfolio was further enhanced with the launch of Ultrapro antidandruff shampoo under the umbrella brand Vivel in December 2008. Ultrapro promises to fight dandruff twice as effectively while also providing care for hair through the plus plus benefits of Nourishment and Moisturisation.
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SUPERIA
The Superia range of soaps and shampoos have been launched to cater to the large popular market in the personal care category. The products under the Superia brand are made from scientifically developed formulations enriched with natural ingredients that have traditionally been known to be good for the skin and hair. The range offers consumers access to some of the best-in-class products in vibrant attractive packaging. Superia Soaps enriched with natural ingredients give radiant glowing skin. Superia Soaps are available in four variants :
1.
Fragrant Flower: with the fragrance of Rose & Lavender Oil
2.
Soft Sandal: with the fragrance of Sandal & Almond Oil
3.
Natural Glow: with Neem & Coconut Oils
4.
Healthy Glow: with Orange Oil
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Superia Lemon Fresh & Milky Glow Soaps Superia added two new soap variants to enhance its product portfolio. Superia Lemon Fresh with its lime extracts, mint oil and germ fighters keeps skin fresh, fragrant and glowing. Superia Milky Glow with the goodness of milk protein, saffron oil and the essence of jasmine, keeps skin soft and radiant.
Superia shampoos with triple conditioners and natural ingredients bring a natural shine to hair. Superia shampoos are available in two variants:
Shiny Black with Triple Conditioners and the natural goodness of Hibiscus & Brahmi extracts. Vibrant Green with Triple Conditioners and the natural goodness of Amla & Arnica extracts.
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Another addition to the Superia shampoo portfolio, Superia Maxi Protect Active Health shampoo contains Dandruff Fighter along with Vitamins & Soya Protein. It fights multiple types of dandruff causing germs and leaves hair & scalp feeling clean & healthy.
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RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Meaning of Research
Redman and Mory define research as a “systemized effort to gain new knowledge.” Some people consider research as a movement, movement from the known to the unknown. Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody, research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
Objectives of Research
The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose but the research objectives can be listed into a number of broad categories, as following:1. To gain familiarity with a phenomenon or to achieve new insights into it. Studies with this object in view are termed as exploratory or formulate research studies. 2. To portray accurately the characteristics of a particular individual, situation or a group. Studies with this object in view are known as descriptive research studies.
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3. To determine the frequency with which something occurs or with which it is associated with something else. Studies with this object in view are known as diagnostic research studies. 4. To test a hypothesis of a casual relationship between variables.Such studies are known as hypothesis-testing research studies.
MARKET RESEARCH: Marketing research has become most important tool for decision making in the field of marketing due to the following reasons.
Business environment is changes very rapidly which needs to continuous modification and improvement. It provides correct and reliable information about customer, competitors and one’s own activities to the manager, so that the huge amount spent on marketing activities to be utilized properly. Since modern business is customer oriented, it (MR) provides the producer a systematic and analytical approach based on assessment on customer requirements, which helps the producer in maximization of net profit by producing such products that fulfill the customer’s utmost level of satisfaction.
Thus marketing research is a systematic gathering, recording and analysis of data about the problem facing the company. It helps the marketing manager to develop and analyze new information, which is further helpful in developing marketing strategy. Now it can be said that marketing research covers a very wide variety of activities ranging from analysis of marketing potential and market share to studies of customers satisfaction and purchase intention.
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Significance of Research “All process is born of inquiry. Doubt is often better than over confidence, for it leads to inquiry and inquiry leads to invention.” Is a famous Hudson Maxim in context of which the significance of research can well be understood? Increased amounts of research make progress possible.
Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, has greatly increased in modern times. The increasing complex nature of business and government has focused attention on the use of research in solving operational problems. Research, as an aid to economic policy, has gained added importance, both for government and business .
Research Methodology Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also the methodology.
Sampling When field studies are undertaken in practical life, consideration of time and cost almost invariably lead to a selection of respondents i.e., selection of few items. In short, Sampling is the study of the part of the population or universe, or selecting a part of an aggregate, on the basis of which any conclusion can be taken out for whole aggregate. In other words we can say that sampling is the collection of
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information about an entire population through examining a part of it. So I have selected ---------------------------------- as sample to conduct my research.
Types of Sampling: 1) Probability Sampling 2) Non-Probability Sampling There are various types of sampling under the head of both sampling methods, while I had selected judgmental sampling under the head of NONPROBABILITY sampling. According to this particular sampling method, I had selected the sample on the basis of my analysis after considering the banks requirements and conditions which should followed by the businesses.
Data Collection Source Information was collected through both primary and secondary Sources.
Primary Data: In some cases the researchers may realize the need for collecting the first hand information. As in the case of everyday life, if we want to have first hand information or any happening or event, we either ask someone who knows about it or we observe it ourselves, we do the both. Thus, the two methods by which primary data can be collected is observation and questionnaire. Secondary Data: Any data, which have been gathered earlier for some other purpose, are secondary data in the hands of researcher. Those data collected first hand, either by the researcher or by someone else, especially for the purpose of the study is known as primary data.
The data collected for this project has been taken from the secondary source. Sources of secondary data are:-
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• • • • •
Internet Magazines Publications Newspapers Brouchers
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DATA INTERPRETATION AND ANALYSIS
Q- 1 what is the type of your business?
PERCENTAGE
GROCERY 427 53%
CHEMIST 148 19%
COSMETICS 225 28%
TOTAL 800 100
28%
Grocery 53%
Chemist Cosmetics
19%
INFERENCE: The above chart shows that out of the total sample size there were about 53% of grocery outlets, 28% of cosmetics outlets and 19% of chemist.
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Q-2 Name 3 companies whose selling is very high from your counter?
PERCENTAGE
Hindustan Unilever
Proctor & Gamble
ITC
TOTAL
496
277
27
800
62%
35%
3%
100%
3%
35%
Hindustan Unilever Proctor & Gamble ITC 62%
INFERENCE: Above chart shows that 62% shopkeepers said HUL product as its large product line so customers prefer to buy more and then 35% said P&G and 3% said ITC.
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Q- 3 which product do you sell most for the following classes?
Classes Soap Cream Shampoo Agarbattis Safety Matches TOTAL
Grocery 295 50 70 7 5
Chemist 89 5 7 -
Cosmetics 33 123 69 -
TOTAL 417 178 146 7 5
PERCENTAGE 56% 23% 19% 1% 1%
753
100%
350
300
295
250 Soap 200
Cream Shampoo
150
Agarbattis Safety Matches 89
100 70
69
50 50
33 7
5
5
7
0
0
7
0
0 Grocery
Chemist
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Cosmetics
0
Sales 1% 23%
Soap Agarbattis Shampoo 56%
Cream Safety Matches
19%
1%
INFERENCE:
From the above chart we can observe that mainly the grocery stores sell the higher percentage of soap from the total selling of soaps and where as cosmetics accounts for maximum selling of cream
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Q-4 Do you sell the ITC’s personal products like cream, shampoo, soap etc.?
Outlets Grocery Chemist. Cosmetics.
Yes 395 8 157
No 32 139 68
450 400
395
350 300 250
Grocery Chemist.
200 157
Cosmetics.
139
150 100
68 32
50 8 0 Yes
No
INFERENCE:
Above chart indicates that, large chunk of grocery stores sells the ITC’s product which accounts for 395 and where as chemist, only 8 shops said YES and 157 cosmetics said YES they sell ITC’s product . And from the above chart we can conclude that a chemist shop less likely to sell ITC Personal Care Products.
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Q-5 Does ITC give you schemes/offers etc?
Often
Sometimes
Rarely
Never
TOTAL
-
145
398
257
800
18%
50%
32%
100%
PERCENTAGE 0%
0% 18% 32%
Often Sometimes Rarely Never
50%
INFERENCE:
As we can observe there were no outlets, which get any schemes/offers etc often. Whereas there were many who get the offers/schemes rarely and among all, many were unsatisfied because they don’t get any.
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Q- 6 From where did you get the information?
Letter from Representative the company 150 PERCENTAGE 0%
19%
Stockiest/distributor
TOTAL
650
800
81%
100%
0% 19%
letter from the company Representative stockiest/distributor
81%
INFERENCE:From the above chart most of the outlet gets the information about the schemes, offers etc from the distributor and they receive hardly any letter or notification from the company.
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Q7- What is your satisfaction level with the following companies ? Mark out of 5?
Company Name Hindustan Unilever Proctor & Gamble ITC DABUR JOY
Rank 5 5 2 4 3
Rank 6 5
5
5 4 4 3 3
Rank 2
2 1 0 HUL
P&G
ITC
DABUR
INFERENCE:
From the above it can be seen that shopkeepers are satisfied with the HUL and P&G as because of their offers and schemes and the supply chain were regular and on time.
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Q8- What are the factors attract you most to sell the product of the particular company?
Margin 647 PERCENTAGE 81%
Offers 45 6%
Schemes 108 13%
TOTAL 800 100%
13%
6%
Margin Offers Schemes
81%
INFERENCE:
From the above data we can conclude that the main motivating factor for the shopkeepers is margin, which holds more than 80%.
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Q9- Which company gives you the overall benefits to sell the product?
HUL 391 PERCENTAGE 49%
P&G 409 51%
ITC 0%
DABUR 0%
TOTAL 800 100%
0%
HUL 49%
51%
P&G ITC DABUR
INFERENCE:
As per the data shown above P&G gives the overall benefit to the shopkeepers in terms of margin and offers and other factors.
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Q10- Are you satisfied with the distribution channel and supply chain provided by the ITC Company and its distributor?
PERCENTAGE
Yes
No
TOTAL
172 26%
478 74%
650 100%
26%
Yes No
74%
INFERENCE:
As per the data shopkeepers were not satisfied with the distribution and supply chain which accounts for more than 70%.
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LIMITATIONS
LIMITATIONS
The information given by the consumer and retailers may have bias factor or deviation.
The findings and conclusion are confirmed to the sample size.
Some consumers and retailers did not give us the correct information and some did not cooperate.
This data is not applicable for those who does not provide information but those are considered in population
The sample size is 800
The period of study is limited. We had given the time period of 2 months on that basis we cannot assume the result same for the overall country.
The results of analysis made in the study depends fully on the accuracy, reliability of information’s given by respondents.
As the customers or retailers do not believe on someone at once so the information provided by them may be incorrect.
As we interacted with the customers in the market, malls etc so they were not so much interested in giving their time so there might be a chance of not giving full and proper information.
As we were the trainees, so the distributors were reluctant to implement the ideas suggested by us.
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FINDINGS FINDINGS
After completing the training the things or the different instances and aspects I came across are:
The lifestyle or the usage of the consumer are continuously changing due to which they are switching very easily from one product to another as they see anything attracting or fascinating. They were unable to make product available which is mostly in demand like Fiama shower gel, from the past six months it was unavailable in the market and the shopkeeper especially cosmetics outlets demands more of a shower gel.
Mainly margin were the main issue in the market which led the shopkeeper to switch to sell the other products. For e.g. breeze soap a retailer gets a pack of 4 in 23rs and on the other hand Superia soap which is ITC’s product a retailer get in 25-27.22rs and the MRP of both the products are same i.e. 30rs. There are some products which are for tier III cities or suburbs like Superia soap/shampoo and the people in those areas mainly attract towards the displays, schemes, offer. And there were hardly any of these available.
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Full variants of the products were not available on shops and not even in stock like Fiama soap comes in 3 variants mild dew, clear springs and exotic dream and only one or two variants were available and the same is with the vivel soap and Superia soap. They were more focused in selling one product like vivel active fair cream as it was a new launch and they were not bothered about like Fiama and vivel shampoo and others. Shopkeepers were reluctant to buy the products from the distributors because of the difference in prices, as the wholesaler and distributor offering the different prices. Some retailers as well as customers complained that they has never understood the pricing strategy of ITC for e.g. at the time of launching of vivel moisturizer and vivel deo spirit soap it cost 15rs and suddenly after few months it increased to 18rs due to which the margin of retailer decreases and gradually the selling decreases also. The visits of a salesperson were irregular and there was a lacuna of information between company and distributor and between distributors and retailers about the products and schemes. Some products like vivel shampoo, Fiama shampoo, and Fiama soap are not well known in the market as they were not properly advertised or promoted. Before purchasing any product each and every shopkeeper wants to have a look at it either in real or in catalogs and salesperson while introducing a new product to shopkeeper did not carry any of those or the few salesperson carry but not all, so as a consequence shopkeeper didn’t order the product or didn’t show interest. As we all know that the relationship is the most important aspects and on that basis we can sell the product and stand as a leader in the market so there
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are the salesperson who are in the direct contact of shopkeepers and there were very few salesperson whose relation with the shopkeepers were good.
The supply chain is the backbone of any company and as I came to know from the shopkeeper and I also found personally that the shopkeeper did not get the ordered product on time either it is late by a week or when the demand vanishes of the particular product. The image of the company was not good in the market because there were few shopkeepers complained that they didn’t get the reward of the schemes of loyalty program and they didn’t get the promised amount of the particular window display. In each and every market there were couple of shops which were unexplored because salesperson before placing a product himself made a image in his mind about that shop that it would be difficult to clear their unique bills from that shop. Before placing any product in the market, a salesperson need to have a good knowledge about that product or they should have felt it and there were very few salesperson who had the knowledge of the product or they have felt it or used it before placing in the market. Most of the time when the problem arises and the shopkeeper say something for e.g. about the display not being provided. Distributors save their face from that situation by saying that we were unable to do because of company policies.
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RECOMMENDATIONS
RECOMMENDATIONS
Company should advertise or promote its product to increase the customer awareness like at the time of launching; the vivel active fairness cream didn’t advertise or promote properly. As the company is new in personal care products so they should offer good margin and schemes/offers than its competitor like HUL, P&G etc. to the retailers so that they get benefitted and focus more on selling the ITC’s products. As the products are not well not known in the market due to lack of advertizing and promotion, so to increase the product’s awareness they should try on door-to-door selling as the more people will get to know about this method and in tier II and tier III cities it could work well. Company should promote its products where the numbers of foot falls are maximum like in malls, colleges, schools, cinema theatre etc. through banners, hoardings, fliers etc. Company should arrange some kiosk in which the technician tells the customer about the features of the products on bigger outlets or cosmetic shops like the SPF 15 factor in vivel active fairness cream. Company should appoint few people who can keep record of the overall working of the salesperson from ordering to delivering and the time taken as
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well as they should focus also on the behavior of the salesperson with the shopkeeper and should take feedback also.
Product should be in a twilight zone and in the accessing area of the customer and where people stop for more time inside the store so that it could catch the eye of the customer. And also we should promote the product where the people stop for more time like in the crowded area and at the traffic signals. Products were available but not in length and depth, company should try to make those available also. Company should conduct the meetings and trainings in a regular interval to motivate the employees and others and try to find out the loopholes and ask for the idea to be implemented to fill that loop hole and whichever idea works in the market, will be awarded. There should be increase in a salary of a salesperson which would motivate them to work hard and honestly. Catalog should be provided to each and every salesperson so that before introducing any new product to the shopkeeper, they would have something to show them visually. Company should give the ads in newspaper, in local channels and sending messages through mobile to consumers as well as shopkeepers to increase the awareness of the product and if there is any scheme/offer/prizes. At the time or before launching any product they can campaign about it in the main market or near school and colleges and allot the free samples to few. The use of paper bags is increasing instead of polythene and in the coming future it will be banned so they should print the image of their product on the
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paper bags and promote it in the market. This will be no costly enough and could help to increase the awareness.
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CONCLUSION
After working on a project for two months there were so many things we came across about the working of the company with their distributors and the awareness of their personal care product among the customers and where they really lack in like in schemes, offers, distribution channel, working of the salesperson etc. We came to know what shopkeepers and customers think about the ITC’s product. We have found out loopholes where the company and distributor is weak or not focusing upon and we gave suggestions on their weakest point which could work if they implement and which could increase the brand awareness amongst the consumers and results increase in sales. We had conducted a survey in the form of questionnaire which was filled up by retailers and that gave us the idea where is the actual problem? So we worked on it for quite some time and gave the valuable recommendation which could further help them to increase their market share.
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BIBLIOGRAPHY
BIBLIOGRAPHY
www.itcportal.com ITC Limited Type
Public (BSE: 500875) Industry
Conglomerate Founded
24 August 1910 Headquarters
Kolkata, India Key people
Yogesh Chander Deveshwar, Chairman K. Vaidyanath, Director, Kurush Grant, Director, Rajiv Tandon (CFO) Products
Cigarettes Hotels Apparel
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Tobacco Foods Stationery Personal Care Paperboard and specialty papers Printing and packaging Matches and Agarbattis Infotech Revenue
US$6 billion (2009) Employees
26,150 (2009)
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ANNEXURE
QUESTIONNAIRE
Q1- what is the type of your business? Grocery
Chemist
Cosmetics
Q2- Name 3 companies whose selling is very high from your counter? Hindustan Unilever
Proctor & Gamble
ITC
Q3- which product do you sell most for the following classes? Classes Soap Cream Shampoo Agarbattis Safety Matches
Grocery
Chemist
Cosmetics
Q4- Do you sell the ITC’s personal products like cream, shampoo, soap etc.? Outlets Grocery Chemist. Cosmetics.
Yes
No
Q5- Does ITC gives you schemes/offers etc? Often
Sometimes
Rarely
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Never
Q6- from where did you get the information? Letter from the company
Representative
Stockiest/distributor
Q7- What is your satisfaction level with the following companies ? Mark out of 5? Company Name HUL P&G ITC DABUR JOY
Rank
Q8- What are the factors attract you most to sell the product of the particular company? Margin
Offers
Schemes
Q9- Which company gives you the overall benefits to sell the product? HUL
P&G
ITC
DABUR
Q10- Are you satisfied with the distribution channel and supply chain provided by the ITC Company and its distributor? Yes
No
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