Project Report on Itc Repaired_ 12 (1)

PROJECT REPORTMARKET STUDY ON VIABILITY OF FAIRNESS CREAMS AND REPORT ON THE AVAILABILITY & VISIBILITY OF ITC PERSONAL CARE PRODUCTS

PROJECT REPORT SUBMITTED AT Institute for Technology and Management Global Leadership Center Navi Mumbai SUBMITTED BY ANKITA JOSHI

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ACKNOWLEDGEMENTA successful completion of job is based upon the chain of factors combining together to make an integral outcome. The cooperation of the factors mixed with sincere effort can lead to best performance. My project is also no exception to this. Therefore I take this opportunity to express deep sense of gratitude to all those who have contributed significantly by sharing their knowledge and experience in the completion of this project work. I would like to thanks Mr. Siddhartha Kalra(Circle Head) who gave me a free hand as far as going about the project work concerned and Mr. Harish Bhatt(Area executive ) for his timely response via e-mail & personal meeting, which immensely helped in giving the project the initial direction it needed. I also express my sincere thank to my internal guide Professor Arun Kumar Saxena for his constant support and guidance throughout the project. I also would like to thank our director, Dr Raja, Professor BVR Murthy and the GLC department for giving me a wonderful opportunity to work in corporate world. I would also like to thank Professor Shelja Jose for guiding me through the market research. Last but not the least, my wholehearted thanks goes to the retailers and wholesalers and consumers with whom we interacted and all those people who indirectly or directly helped me with the project. I have made an honest and dedicated attempt to make the research material as authentic as it could. And I earnestly hope that it provides useful and workable information and knowledge to any person reading it.

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Table of contents1. Executive Summary 2. Introduction 2.1 FMCG 2.2 Personal Care 3. ITC 3.1 Company profile 3.2 Vision Statement 3.3 Mission Statement 3.4 Positioning Statement 3.5 ITC Corporate Strategies 3.6 History of ITC 3.7 ITC Business Portfolio 3.8 ITC FMCG 3.9 ITC Personal Care Products 3.10 Marketing Strategy used by ITC 3.11 ITC FMCG Supply Chain 3.12 ITC SWOT Competitive Analysis 4.1 HUL 4.2 P&G 4.3 DABUR Objective of the study Availability and visibility of ITC personal care products 6.1 Research methodology 6.2 Areas Surveyed 6.3 Analysis Market study on viability of fairness creams 7.1 Project methodology 7.2 Reference Period 7.3 Research Type 7.4 Sample Design 7.5 Sampling 7.6 Tools & Techniques 7.7 Analysis 7.8 Findings and Discussion Limitations3

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Recommendations BCG Matrix ITC Bibliography Appendix

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Introduction FMCGFast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items in this category include all consumables other than groceries/pulses. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for frequent consumption and have a high return. Typical characteristics of FMCG products include products that often cater to three very distinct but usually wanted for aspects - necessity, comfort, luxury. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers. Individual items are of small value (small SKU's) although all FMCG products put together account for a significant part of the consumer's budget. Often consumer spends little time on the purchase decision. Brand loyalties or recommendations of reliable retailer/ dealer drive purchase decisions. Limited inventory of these products (many of which are perishable) are kept by consumer and prefers to purchase them frequently, as and when required. A major portion of the monthly budget of each household is reserved for FMCG products. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word of mouth. Competition in the FMCG sector is very high resulting in high pressure on margins. FMCG companies maintain intense distribution network. Companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports. Also the market is more pressurized with presence of local players in rural areas and state brands. The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by end of 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. However penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products.

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FAST Moving Consumer Goods (FMCG) sector will witness more than 50 per cent growth in rural and semi-urban India by end of 2010, according to an analysis carried out by the Associated Chambers of Commerce and Industry of India. The Indian rural market with its vast size and demand base offered a huge opportunity that FMCG companies cannot afford to ignore. With 128 million households, the rural population is nearly three times the urban. Companies in this sector to benefit include known names such as Nirma, HLL, Dabur, ITC, Godrej, Britannia, Coca-Cola, Pepsi, among others. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. However the FMCG market penetration is less and the demand is more. Thus manufacturers will have to deepen their concentration for higher sales volumes. Some of the problems associated with rural markets are acute dependence on the vagaries of the monsoon, seasonal consumption linked to harvests, festivals and special occasions, poor roads and power problems and low capita disposable income. The other difficulty that FMCG companies are likely to face is that of logistics. India's 627,000 villages are spread over 3.2 million sq km. Delivering products to the 750 million Indians living in rural areas is a tough task.

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Personal CareThe Indian personal care industry is estimated at Rs 170 billion. The industry is comprised of Fabric Wash (Detergents Bars & Powders),Personal Wash (Toilet Soaps),Hair Care (Hair Oils, Shampoo, Hair gels, Dyes) ,Oral Care (Toothpaste, Toothbrush, Tooth Powder, Mouth Rinses),Skin Care (Ointments, Lotions, Moisturizers, Powders),Colored Cosmetics (Lipstick, Nail Enamels),Mens Toiletries (Shaving Products),Fragrances (Perfumes, Deodorants). Personal care industry has a low entry barrier and competition is severe. Besides the large multinational players, there are some leading domestic players as well as the huge unorganized players. Most of the market share is with the larger players, like HUL, Marico, P&G, ITC. However, cheaper imports and duplicate products are also affecting the major players. Companies have been adopting promotion schemes to dole out freebies and repackaging products in smaller packages to cater to a wider consumer base are some recent trends. The way ahead for the personal care companies is to introduce new and better product, improve penetration, and make the consumer trade up in price and quality. Rural marketing will be a major thrust area for all companies as the urban markets are near saturation levels in terms of penetration. Hair care, feminine care, skincare and make-up are the key markets driving growth within the personal care sector. Most of the markets in the personal care sector are highly consolidated, with the top five players controlling about three-quarters of the total market share; fragrances being the only exception.

Sectoral growth is fueled by factors such as ever-increasing population, increased disposable income, evolving awareness of personal grooming and the modernization of organized retail in India.

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Indian market of personal care products

Each of these segments exhibits unique trends and growth patterns. For example, the largest segment of personal hygiene products is largely dominated by bar soaps. The second largest segment being hair care products .The skin care market is relatively smaller and is growing at a high rate while moving away from basic creams and moisturizers to specialized products such as anti-wrinkle and dark circle removing creams.

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Certain statistics are given below The Indian fragrances market generated total revenues of $62.2 million in 2008, representing a compound annual growth rate (CAGR) of 8.9% for the period spanning 2004-2008. The Indian hair care market generated total revenues of $596.3 million in 2007, representing a compound annual growth rate (CAGR) of 12.7% for the period spanning 2003-2007. The Indian make-up market generated total revenues of $79.7 million in 2007, representing a compound annual growth rate (CAGR) of 9.2% for the period spanning 2003-2007. The Indian personal hygiene market generated total revenues of $1.5 million in 2007, representing a compound annual growth rate (CAGR) of 4.9% for the period spanning 20032007. Thus we can safely assume that personal care market has immense growth opportunity and it will grow leaps and bounds in future.

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Executive SummaryThe report is an earnest endeavor made to understand the present market scenario of fairness creams in the northern region and simultaneously ascertain visibility and availability of ITC personal care products. ITC has launched fairness cream under its brand Vivel in Kerala. I was required to conduct a market study see the coverage by ITC products and bring out the potential and loyal retailers so that the company could maintain the market leadership in the existing business scenario in the personal care market. During the course of study I visited around 460 retail stores and conducted personal interviews with the retailers to find out major competitors in personal care segment. I also used observation technique to ascertain penetration of the ITC personal care and the market potential for the new products. Also interviews were conducted to determine major competitors in fairness cream segment. Also the motive of research was to also ascertain promotional tools for marketing, and provide recommendation for the same. Research also included studying the behavior of consumers about their preferences for fairness creams, and ascertains the overall buying behavior of consumers with the help of questionnaire.

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Company profileITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander Deveshwar. The company has its registered office in Kolkata. It employs over 20,000 people at more than 60 locations across India. 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. It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's foremost private sector companies with a market capitalization of over US $ 22 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 is one of India's most valuable and respected corporations.

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Vision statementSustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders

The mission statementTo enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

Positioning statement"Enduring Value. For the nation. For the Shareholder."

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ITCs 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 ITCs various businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyze 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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HISTORY OF ITCITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. The Company's ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 70 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Sagaar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

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In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands minto and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels18

and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

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ITC -FMCGCigarettesITC is the market leader in cigarettes in India. Its highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment. ITC's has presence in overseas markets as well. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands.

FoodsITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The Foods business strives to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. ITC's state-of-the-art Product Development facility is located at Bangalore. The Foods business is represented in 4 categories in the market. These are:

Ready To Eat Foods Staples Confectionery Snack Foods

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ITCs six brand of food include:

Kitchens of India Aashirvaad Sun feast mint-o Candyman Bingo!

Lifestyle retailingITCs ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di Wills an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country. With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today.

Education & StationaryITC made its entry into the stationery business in the year 2002 with its premium range of notebooks. ITC's Education and Stationery Products are marketed under the brands "Classmate" and "Paperkraft". The Classmate range of products is targeted at satisfying education & stationery needs of students & young adults. The product range includes Notebooks, Math Instruments, Scholastic Products as well as Writing Instruments.

The Paperkraft range of products aims at satisfying the stationery needs & office consumables need of office executives & working professional. The continuously expanding product range under Paperkraft includes Premium Business Paper, Paper Stationery, Markers & Highlighters.

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Safety MatchesITCs range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro. With differentiated product features and innovative value additions, these brands effectively address the needs of different consumer segments. The Aim brand is the largest selling brand of Safety Matches in India. ITC also exports regular and premium safety matches brands to markets such as Middle East, Africa and the USA. ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and marketing strengths, especially the breadth and depth of the Company's trade marketing and distribution.

AggarbattisITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide consumer acceptance. The premium range from ITC, Mangaldeep Spriha has two offerings, Pratiti and Sarvatra and is specially hand rolled by Cottage Industries, Sri Aurobindo Ashram, Pondicherry.

Personal careITC 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 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.

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ITC Personal Care Products

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MARKETING STRATEGY USED BY ITCITC started an earnest exercise by creating a new brand image and corporate philosophy by investing in new business categories like personal care, premium apparel, rural business (eChoupal) and foods. All along using its famed distribution strengths built through its successful past businesses like cigarettes, paperboards and packaging, hotels and agri business, to create synergies across its verticals and help prop up its new businesses, like personal care and foods. ITC has a well thought-out strategic approach. Rather than acquiring weaker brands to get into these new segments inorganically, it created a range of new personal care and branded apparel brands. The first step in this well-planned strategy was the launch of Wills Lifestyle, the premium branded apparel business in 2002. ITC then moved on to take the competition head on in the FMCG domain, through ITC Foods in August 2001, and personal care business, which is the focal point of this story, in 2005. It has created good impact with its well etched-out Personal Care Brands. Under this category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia were designed to take care of various sets of consumer segments. But behind this launch was five years of intensive on ground research of market conditions and consumer expectations. Over one lakh consumers were surveyed across the country to test various prototypes. Acceptance benchmark was kept as high as 90 percent for the final products. ITC called this exercise as '3E approach explore, establish and execute. As an adage goes 'if you have to win a race, you have to clearly target the No 1', ITC too aimed the No 1 which happened to be the formidable HUL (which still reigns over 50 percent of the FMCG market). And ITC's target was HUL and P&G only. ITC roped in its tobacco business veteran Sandeep Kaul to spearhead the personal care launch; it also sought help from product formulation and branding experts in Europe and America to formulate the fragrance, aesthetics and packaging. Many of the brands have also been developed at its R&D centre. The results are there for everyone to see. In less than four years, ITC has been able to create brand awareness and consumer acceptance for its five product lines Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superiaeach targeted at the needs, aspirations and usage behaviour of different consumer segments. Kaul informs that the strategy for designing personal care is that everyone is a potential consumer.

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Distribution system at ITCThe process of passing down each passing the product down the chain to the next organization through Chain of intermediaries, before it finally reaches the consumer or end-user is known as the 'distribution chain' or the 'channel.' A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers, Dealer Or wholesaler, who sells to end customers Advertisement typically used for consumption goods

ITC follows: CHANNEL WISE DISTRIBUTION Here the total product is divided into different channels like, Health care product, Personal care products, Home products & etc. BEAT WISE DISTRIBUTION Here total market is divided into different areas where the products are served to all the outlets exist in that area. ITC supply chain consists of diverse categories with different priorities More than 1000+ SKUs Buying Value $68 MM Warehousing space of more than 3.5m SFT around 55+ locations Products manufactured at 45+ plants More than 650 trucks moved every day Direct distribution from factories to Distributors. Indirect movement through RDCs Combination of Rail/Road/Sea movement within the country depending on the product type. (Target is Safer, Faster, cost effective)

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SWOT ITC

StrengthsITC leveraged it traditional businesses to develop new brands for new segments. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

WeaknessesTo fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market. Unrelated diversification is also a major weakness of ITC.

OpportunitiesCore brands such as Aashirwad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration.ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. e-Choupal is a well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

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ThreatsThe obvious threat is from competition, both domestic and international. ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future.

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Competitive analysis

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, touching the lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to Hindustan Unilever Limited. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. It has over 35 brands. Its a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India.

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SWOT Analysis HULStrengths: Weaknesses: Strong brand portfolio, price quantity "Me-too" products which illegally & variety. mimic the labels and brands of the established brands. Innovative Aspects. Presence of Established distribution Strong Competitors & availability of substitute products. networks in both urban and rural areas. Low exports levels. Solid Base of the company. High price of some products. Corporate Social High Advertising Costs. Responsibility(CSR)

Opportunities: Large domestic market over a billion populations . Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers. Export potential and tax & duty benefits for setting exports units.

Threats: Tax and regulatory structure. Mimic of brands Removal of import restrictions resulting in replacing of domestic brands. Temporary Slowdown in Economy can have an impact on FMCG Industry.

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Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment. Procter & Gamble entered Indian markets in 1951 with Vicks Product Inc. USA, branch of P & G. Procter & Gamble India since then has launched Whisper - the breakthrough technology sanitary napkin, Ariel detergent, Ariel super soaker, Pantene Pro-V shampoo, Head & Shoulders shampoo, Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter & Gamble Home Products Limited launched Pampers - world's number one selling diaper brand. Today, Proctor & Gamble is the second largest FMCG company in India after Hindustan Lever Limited.

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SWOT Analysis P&G

Strengths Leading Market Position Diversified and innovative product Portfolio Strong Finances in past years

Weakness Quality control Problem Decreased Revenues in their Northeast Asian Market

Opportunities Developing Markets Demographic trends across the world

Threats Competitors Rising cost of energy prices New Regulations

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Dabur India Limited is the fourth largest FMCG Company in India with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. The company has kept an eye on new generations of customers with a range of products that cater to a modern lifestyle, while managing not to alienate earlier generations of loyal customers. Dabur was founded in the year 1884 by Dr. S K Burman. Dabur is headquatered in Ghaziabad Uttar Pradesh. Mr Anand Burman is the current chairman of the company. Dabur has a employee strength of approx 3000. Dabur is an investor friendly brand as its financial performance shows. The company's growth rate rose from 10% to 40%. Dabur had a turnover of approximately Rs. 3390.9 Crore in the fianancial year(2009-10) & Market capitalization of over US$ 3.5 Billion (Rs 15500 Crore), Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit Juice Category

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SWOT Analysis DaburSTRENGTHS Strong presence in well defined niches( like value added Hair Oil and Ayurveda specialties) Core knowledge of Ayurveda as competitive advantage Strong Brand Image Product Development Strength Strong Distribution Network Extensive Supply Chain IT Initiatives R & D a key strength WEAKNESS Seasonal Demand( like chyawanprash in winter and Vatika not in winter) Low Penetration(Chyawanprash) High price(Vatika) Limited differentiation (Vatika) Unbranded players account for the 2/3rd of the total market(Vatika)

OPPORTUNITIES Untapped Market(Chyawanprash) Market Development Export opportunities. Innovation Increasing income level of the middle class Creating additional consumption pattern

THREATS Existing Competition( like Himani, baidyanath and Zandu for Dabur Chyawanprash and Marico,Keo Karpin, HLL and Bajaj for Vatika Hair Oil) New Entrants Threat from substitutes (like Bryllcream for Vatika hair oil)

35

Objective of study the studyThe objective of the summer training is to ensure that I as a management student develop in real life experience for handling the specific project and also to develop all understanding of the various management activities related to the area of my specialization. This training gives us a substantial corporate exposure and also serves as a useful tool of interaction with the corporate sector. The project has been derived from the field of Marketing and is entitled as Market study on the consumer preference for fairness creams & report on the visibility and availability of ITCs brand of personal care products .identification of consumer behavior for fairness creams The main idea behind this project is: Estimate market potential for fairness creams Identify major competitors in fairness cream market Consumer preference for various promotional schemes Important factors that influence buying of fairness cream Understanding the visibility and availability of ITC brand of personal care products To know the competitor of each line of ITC personal care product in the market. To analyze all the data and provide learnings, conclusions and recommendation.

36

Availability and Visibility of ITCs personal care products

37

Research Methodology

Exploratory research was conducted in 20 areas of Dehradun mentioned below (source list) regarding visibility and availability of ITC personal care products and also to ascertain competitors in each line of ITC personal care products. A total of 460 retail stores were surveyed. During the course of the study a no. of stores that were scattered all over Dehradun (source list mentioned below) were visited. Written record of the number and names of the stores in the city was maintained. It was very difficult to tabulate a record of all the retailers and wholesalers present in the city and then carry out our study, in the short span of time that was allotted. As a result retailers were selected according to our convenience. All shops and areas were surveyed that could possibly be approached. A personal interview as well as observation was used to carry out the study. Personal interviews were conducted with the retailers to ascertain major competitors of ITC. Observation was used to ascertain the visibility of ITC personal care products.

38

Areas Surveyed

Paltan Bazaar Dhamavaala Jhanda Bazaar Band Bazaar Sabzi Mandi Pipal Mandi Tilak road Hanuman Chowk Karanpur Market Premnagar Panditwadi Kaanwli road Nehru colony Araghar Dharampur Ajabpur Ballupur road Kaulagarh Dilaram bazaar

39

Analysis:Visibility of ITC personal care products378

82

VISIBLE

NOT VISIBLE

VISIBILITY OF PERSONAL CARE PRODUCTS VISIBLE NOT VISIBLE TOTAL

NO OF OUTLETS 378 82 460 82 18

%

40

ANALYSIS BASED ON VISIBILITY

The above chart shows that from 460 retailers it is observed that ITC products are visible in 378 shops & 82 shops do not have ITC personal care products. So this indicates that ITC has high visibility. Absence of ITC brands in shops shows that this patch of outlets is lacking distributors attention, brand awareness among retailers or consumers.

Availability of ITC personal care products378

82

AVAILABLE

NOT AVAILABLE

AVAILABILITY OF PERSONAL CARE PRODUCTS AVAILABLE NOT AVAILABLE TOTAL

NO OF OUTLETS

%

378 82 460

82% 18%

41

ANALYSIS BASED ON AVAILABILITY

The above chart shows that from 460 retailers it is observed that ITC products are available in 378 shops & 82 shops do not have ITC personal care products. So this indicates that ITC has high brand prevalence. Absence of ITC brands in shops shows that this patch of outlets is lacking distributors attention, brand awareness among retailers or consumers.

Availability of ITC personal care brands in retail outlets

Brands Superia Soap Superia Shampoo Vivel Soap Vivel Shampoo Fiama Di Wills Soap 312 260 318 340 253

No. of shops 378 378 378 378 378

Total

% Availability 82.5% 68.7% 84.12% 89.9% 66.9%

Fiama Di Wills Shampoo Fiama Di Wills Conditioner Fiama Di Wills Shower Gels

300

378

79.3%

201

378

53.17%

150

378

39.6%

42

fiama Di Wills shower gel, 150

fiama Di Wills conditioner, 201 superia soap, 312

fiama Di Wills shampoo, 300

superia shampoo, 260 vivel soap, 318

fiama Di Wills soap, 253 vivel shampoo, 340

As seen from the graph above Vivel brand of ITC products is available in above 85% of retail outlets, followed by Superia brand of soaps and shampoos. Least available are Fiama shower gels with approximately 40% availability on retail stores.

43

Major competitor shampoos324

126

114 67 7 61 30 26 4 46

COMPETITOR SHAMPOOS SUNSILK HEAD & SHOULDERS PANTENE DOVE SHAMPOO AYUR SHAMPOO CLINIC PLUS CLINIC ALL CLEAR CHIK SHAMPOO VATIKA GARNIER 324 126 114 67 07 61 30 26 04 46

% 70 27 25 15 01 13 06 06 0.8 10

44

ANALYSIS BASED ON COMPETITOR SHAMPOOSThe above chart throws light on major competitor brand of shampoos. As seen above, Sunsilk has larger market share with 324 shops out of 460 shops reporting Sunilk as top selling shampoo. Sunsilk is followed by Head & Shoulders and Pantene. Around 126 and 114 shops reported Head & Shoulders and Pantene as top selling brand of shampoo.

Major competitor soaps340

101

96 69 35 6 38 67 26 2 2

COMPETITOR SOAPS LUX DOVE DETTOL PEARS LIRIL DYNA SOAP GODREJ NO 1 340 101 96 69 06 35 38

% 74 30 21 15 01 07 08

45

LIFEBOUY BREEZE SANTOOR MEDIMIX

67 26 02 02

14 05 0.4 0.4

ANALYSIS BASED ON COMPETITOR SOAPS

The above chart throws light on major competitor brand of soaps. As seen above, Lux has larger market share with 340 shops out of 460 shops reporting Lux as top selling soap .Lux is followed by Dove and Dettol. Around 101 and 96 shops reported Dove and Dettol as top selling brand of shampoo.

46

Knowledge about ITC personal care products436

24 YES NO

Knowledge about ITC personal care products Yes No 436 24 94.7% 5.21%

As seen above in the graph approximately 95% of retailers have knowledge of ITC personal care products. This indicates high level of awareness among retailers regarding ITC personal care products.

47

Agressive advertising will increase ITC Sales425

35

YES

NO

Aggressive advertising will increase ITC Sales Yes No 425 35 92.39% 7.6%

As seen in the above graph approximately 92% of retailers feel that aggressive advertising will increase sale of ITC personal care products. This indicates high need of aggressive advertising for ITC personal care products.

48

Market study on viability of fairness cream

49

PROJECT METHODOLGY

Understand and study the plans and prepare a questionnaire

Use quantitative and exploratory research for data

Analyze the collected data for detecting the gaps,deficiencies & areas of improvement

Develop recommendations based on the findings.

Reference PeriodThis study is conducted for the period of 3 months starting from 15th of May 2010.

50

Research Type

EXPLORATORY RESEARCH: The study was conducted to ascertain viability of fairness creams in Indian markets. Also the study was conducted to ascertain major competitors in fairness cream market and consumer preference.

Sample DesignA sample design is a definite plan for obtaining a sample for a given population. It refers to a techniques or procedure adopted in selecting items for the sample.

Sampling:Further, the design that has been adopted for the study of the given topic is CONVENIENT SAMPLING.

The following is the sample design that has been adopted for the study. 1. Population:- Finite(Dehradun) 2. Sampling Unit:- Areas of Dehradun 3. Sample size:- A total of 200 consumers and 460 retail outlets.

51

Tools and techniques: Primary Data: - Primary data was collected during the course of research period with the help of the questionnaire that was designed for the consumers to collect the information that was required to carry out the research. Personal interview were conducted with the retailers to ascertain major competitor in fairness cream market. Secondary Data: - Secondary data was collected from books, articles, Internet and

previous research papers that had been conducted by the company representatives and officials.

Instrument:

Questionnaire for consumers Personal Interviews with retailers

Tools and techniques of Analysis Simple statistical tools and techniques like average, frequency, ratios, tables and graphs, chi square tests, correlation were used.

52

Analysis

53

age

70

60

50

Frequency

40

30

20

10

0 15 to 25 25 to 35 35 to 45 45 to 55 more than 55

Frequency Valid 15 to 25 25 to 35 35 to 45 45 to 55 more than 55 Total 35 54 62 29 20 200

Percent 17.5 27.0 31.0 14.5 10.0 100.0

Valid Percent 17.5 27.0 31.0 14.5 10.0 100.0

Cumulative Percent 17.5 44.5 75.5 90.0 100.0

As seen in the graph above maximum respondents are in the age group of 25 to 45 years.

54

family income per annum

125

100

Frequency

75

50

25

0 less than 100000 100000 to 200000 200000 to 500000 more than 500000 5.00

Frequency Valid less than 100000 100000 to 200000 200000 to 500000 more than 500000 5.00 Total 2 40 125 29 4 200

Percent 1.0 20.0 62.5 14.5 2.0 100.0

Valid Percent 1.0 20.0 62.5 14.5 2.0 100.0


As seen above maximum respondents are in the income group of Rs 200000 to 500000

55

Do you use fairness cream

150

Frequency

100

50

0 yes no

Frequency Valid Yes No Total 152 48 200

Percent 76.0 24.0 100.0

Valid Percent 76.0 24.0 100.0

Cumulative Percent 76.0 100.0

As seen in the above graph out of 200 consumers 152 consumers are users of fairness creams i.e. 76% consumers use fairness cream while 24 % consumers do not use fairness cream.

56

90 80 70 60 50 40 30 20 10 0 fair & lovely Emami Naturally Fair Fairever Ponds garnier Ayur Lakme 15 17 16 12 31 30 79

Fair & lovely Emami Naturally Fair Fairever Ponds Ayur fairness sunscreen Lakme Garnier light

79 15 17 16 12 30 31

As seen from the graph above Fair n lovely has a lions share in fairness cream market. Approximately 40% of the respondents use fair & lovely while 16% of the respondents use Garnier and Lakme is used by 15% respondents.

57

Duration of use of product

120

100

80

Frequency

60

40

20

0 within one month 1- 6 months 6 months - 1 year 1-2 years more than 2 years

Frequency Valid within one month 1- 6 months 6 months - 1 year 1-2 years more than 2 years Total 11 9 23 47 110 200

Percent 5.5 4.5 11.5 23.5 55.0 100.0

Valid Percent 5.5 4.5 11.5 23.5 55.0 100.0


As seen in the graph above, 55% of the respondents have been using their cream since more than 2 years, followed by 23% of the respondents using their cream since 2 years.

58

70 60 51 50 40 53

66

30 30 20 10 0 Departmental Store Neighbourhood grocery store cosmetic shop Big general stores

Type of store Departmental store Neighborhood grocery store Cosmetic shop Big general store

% 26% 27% 33% 15%

As seen in the graph above, consumer preference for stores to buy skin care cream is varied. 26% of consumers buy skin care cream from departmental store. 27% buy from neighborhood grocery store. 33% buy from cosmetic shop and 15% of the consumers buy from big general store.

59

Preferred attributes in cosmetic cream147

94 75

99

Fairness

Moisturiser

Sunscreen

Removal of dark spots

Preferred attributes in a cream Fairness Moisturizer Sunscreen Removal of dark spots

% 35% 23% 18% 24%

As seen in the graph above 35% of the consumers wanted fairness in their skin cream.23% of the consumers voted for moisturizer.18% and 24% of the consumers preferred sunscreen and removal of dark spots attributes in their cream.

60

Quality

140

120

100

Frequency

80

60

40

20

0 low imp neutral imp very imp

Frequency Valid low imp neutral imp very imp Total 2 17 53 128 200

Percent 1.0 8.5 26.5 64.0 100.0

Valid Percent 1.0 8.5 26.5 64.0 100.0

Cumulative Percent 1.0 9.5 36.0 100.0

As seen in the graph above 64% of respondents rated quality as a very important attribute while choosing a cosmetic cream

61

Brand Name

120

100

80

Frequency

60

40

20



Percent 9.5 11.5 26.5 52.5 100.0

Valid Percent 9.5 11.5 26.5 52.5 100.0


As seen in the graph above, approximately 53% respondents rated Brand name as a very important factor while choosing a cosmetic cream.

62

Discounts

100

80

Frequency

60

40

20

0 no imp low imp neutral imp very imp

Frequency Valid no imp low imp neutral imp very imp Total 5 32 44 95 24 200

Percent 2.5 16.0 22.0 47.5 12.0 100.0

Valid Percent 2.5 16.0 22.0 47.5 12.0 100.0


As seen in the graph above, approximately 48% respondents rated Discounts as an important factor while choosing a cosmetic cream.

63

Promotional Schemes

120

100

80

Frequency

60

40

20



Percent 5.5 11.0 24.5 53.0 6.0 100.0

Valid Percent 5.5 11.0 24.5 53.0 6.0 100.0


As seen in the graph above, approximately 53% respondents rated Promotional Schemes as an important factor while choosing a cosmetic cream.

64

Shopping Convenience

80

60

Frequency

40

20



Percent 4.0 6.5 24.0 39.5 26.0 100.0

Valid Percent 4.0 6.5 24.0 39.5 26.0 100.0


As seen in the graph above, approximately 40% respondents rated Shopping Convenience as an important factor while choosing a cosmetic cream.

65

Price

100

80

Frequency

60

40

20



Percent 5.5 10.5 23.0 49.5 11.5 100.0

Valid Percent 5.5 10.5 23.0 49.5 11.5 100.0


As seen in the graph above 50% respondents rated Price as an important factor while choosing a cosmetic cream.

66

Performance

120

100

80

Frequency

60

40

20



Percent 2.0 1.0 42.0 55.0 100.0

Valid Percent 2.0 1.0 42.0 55.0 100.0


As seen in the graph above, approximately 50% respondents rated Performance as a very important factor while choosing a cosmetic cream.

67

Word of Mouth

80

60

Frequency

40

20

0 strongly disagree disagree neutral agree strongly agree

Frequency Valid strongly disagree disagree neutral agree strongly agree Total 26 57 44 71 2 200

Percent 13.0 28.5 22.0 35.5 1.0 100.0

Valid Percent 13.0 28.5 22.0 35.5 1.0 100.0


As seen in the graph above, approximately 36% respondents agreed that Word of Mouth influenced their buying of cream.

68

TV Ads

125

100

Frequency

75

50

25



Percent 3.0 25.5 9.0 62.0 .5 100.0

Valid Percent 3.0 25.5 9.0 62.0 .5 100.0


As seen in the graph above, approximately 62% respondents agreed that TV Ads influenced their buying of cream.

69

Newspaper

100

80

Frequency

60

40

20

0 strongly disagree disagree neutral agree 22.00

Frequency Valid strongly disagree disagree neutral agree 22.00 Total 7 93 30 68 2 200

Percent 3.5 46.5 15.0 34.0 1.0 100.0

Valid Percent 3.5 46.5 15.0 34.0 1.0 100.0


As seen in the graph above, approximately 47% respondents disagreed that Newspaper/Magazines influenced their buying of cream.

70

Internet

100

80

Frequency

60

40

20

0 strongly disagree disagree neutral agree

Frequency Valid strongly disagree disagree neutral agree Total 65 88 15 32 200

Percent 32.5 44.0 7.5 16.0 100.0

Valid Percent 32.5 44.0 7.5 16.0 100.0


As seen in the graph above, approximately 44% respondents disagreed that Internet influenced their buying of cream.

71

Family/Friends

120

100

80

Frequency

60

40

20



Percent 6.0 22.0 6.5 54.5 11.0 100.0

Valid Percent 6.0 22.0 6.5 54.5 11.0 100.0


As seen in the graph above, approximately 55% respondents agreed that Family/Friends influenced their buying of cream.

72

Package Design

150

120

Frequency

90

60

30



Percent 1.0 11.5 13.0 73.0 1.5 100.0

Valid Percent 1.0 11.5 13.0 73.0 1.5 100.0


As seen in the graph above, approximately 73% respondents agreed that Package Design influenced their buying of cream.

73

Frequency Valid Yes No Total 115 85 200

Percent 57.5 42.5 100.0



As seen in the graph above 57.5% respondents admitted to changing creams with season and 42.5% consumers used the same cream in all the seasons.

74

Does unavailability affects purchase

140

120

100

Frequency

80

60

40

20

0 yes no

Frequency Valid yes no Total 127 73 200

Percent 63.5 36.5 100.0



As seen in the above graph 63.5% respondents admitted that unavailability of their product affects purchase, while 36.5% consumers responded that it doesnt.

75

Interest in buying new product

100

80

Frequency

60

40

20

0 not at all interested not interested neutral interested vey interested

Frequency Valid not at all interested not interested neutral interested very interested Total 17 25 33 82 43 200

Percent 8.5 12.5 16.5 41.0 21.5 100.0

Valid Percent 8.5 12.5 16.5 41.0 21.5 100.0


As seen in the graph above, approximately 41% respondents were interested in buying a new product.

76

Chi Square TestVariables: Demographics i.e. Age, Family Income and Usage of Fairness Creams. Family income per annum * Do you use fairness creamdo you use fairness cream yes no family income per annum less than 100000 Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream 2 1.3% 0 .0% Total

2 1.0%

100000 to 200000

34 22.4%

6 12.5%

40 20.0%

200000 to 500000

102 67.1%

23 47.9%

125 62.5%

more than 500000

14 9.2%

15 31.3%

29 14.5%

5.00

0 .0%

4 8.3%

4 2.0%

Total

152 100.0%

48 100.0%

200 100.0%

Chi Square TestsValue Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a. 29.444(a) 27.096 20.522 200 df 4 4 1 Asymp. Sig. (2-sided) .000 .000 .000

4 cells (40.0%) have expected count less than 5. The minimum expected count is .48.

77

Bar Chart

120

do you use fairness cream yes no

100

80

Count

60

40

20

0 less than 100000 100000 to 200000 200000 to 500000 more than 500000 5.00

family income per annum

As seen above approximately 67% of the respondents who use fairness creams are in the income range of 200000 to 500000. Respondents in the income range of above 500000 do not use fairness creams.

78

Age * Do you use fairness creamdo you use fairness cream yes no age 15 to 25 Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream Count % within do you use fairness cream 18 11.8% 17 35.4% Total

35 17.5%

25 to 35

44 28.9%

10 20.8%

54 27.0%

35 to 45

51 33.6%

11 22.9%

62 31.0%

45 to 55

27 17.8%

2 4.2%

29 14.5%

more than 55

12 7.9%

8 16.7%

20 10.0%

Total

152 100.0%

48 100.0%

200 100.0%

Chi Square testsValue Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 21.264(a) 20.750 3.105 200 df 4 4 1 Asymp. Sig. (2-sided) .000 .000 .078

1 cells (10.0%) have expected count less than 5. The minimum expected count is 4.80.

79

Bar Chart

60

do you use fairness cream yes no

50

40

Count

30

20

10

0 15 to 25 25 to 35 35 to 45 45 to 55 more than 55

age

As seen above maximum users of fairness creams are in the age group of 35 to 45 years. However respondents below 35 years are non users of fairness creams. 35.4% respondents in the age group of 15 to 25 do not use fairness creams. 20.8% of respondents in the age group of 25 to 35 do not use fairness creams.

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CorrelationCorrelation between two variables Interest in buying new product and Important factors while choosing a cream. Important factors namely Quality, Brand name, Discounts, Schemes, Shopping Convenience, Price, Performance.Interest in buying new product Pearson Correlation Sig. (2-tailed) N imp factors while choosing cream Quality imp factors while choosing cream Brand name Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N imp factors while choosing cream Discounts imp factors while choosing cream Schemes imp factors while choosing cream Shopping Convenience imp factors while choosing cream Price imp factors while choosing cream Performance Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) N Pearson Correlation Sig. (2-tailed) 1 . 200 -.098 .166 200 -.144(*) .042 200 .183(**) .010 200 .232(**) .001 200 -.214(**) .002 200 .365(**) .000 200 -.257(**) .000 Imp factors while choosing cream -.098 .166 200 1 . 200 .663(**) .000 200 -.140(*) .047 200 -.348(**) .000 200 -.171(*) .016 200 -.376(**) .000 200 .052 .464 200 Imp factors while choosing cream -.144(*) .042 200 .663(**) .000 200 1 . 200 -.213(**) .002 200 -.381(**) .000 200 -.274(**) .000 200 -.374(**) .000 200 .041 .568 200 Imp factors while choosing cream .183(**) .010 200 -.140(*) .047 200 -.213(**) .002 200 1 . 200 .697(**) .000 200 .194(**) .006 200 .174(*) .014 200 -.012 .863 200 imp factors while choosing cream .232(**) .001 200 -.348(**) .000 200 -.381(**) .000 200 .697(**) .000 200 1 . 200 .257(**) .000 200 .430(**) .000 200 -.025 .724 200

` Interest in buying new product

imp fac choosin

N 200 * Correlation is significant at the 0.05 level (2-tailed).

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AnalysisAs seen from the result above correlation between Quality and Interest in buying new product is 0.98. Correlation between Brand name and Interest in buying new product is -144 significant at 0.05 level. As negetive correlation exists, respondents who were more interested in quality and brand name were most unlikely to buy a new product. Correlation between Discounts and Interest in buying new product is .183 and Correlation between Schemes and Interest in buying new product is .232, significant at 0.01 level. As positive correlation exists , respondents interested in Discounts and Schemes were most interested in buying new product. Negetive correlation, -0.214 significant at .01 level exists between shopping convenience and Interest in buying new product. Also Performance and Interest in buying new product are negetively correlated. Thus respondents most interrested in shopping convenience and performance were not interested in buying new product. A positive correlation of 0.365 significant level 0.01 exists between Price and Interst in buying new product. Thus respondents interested in price were most likely to try new product.

82

Chi Square TestVariables: Duration of use of the product and Unavailability affects purchase

Duration of use of product * does unavailability affects purchase does unavailability affects purchase yes no duration of use of product within one month Count % within does unavailability affects purchase Count % within does unavailability affects purchase 6 months - 1 year Count % within does unavailability affects purchase Count % within does unavailability affects purchase more than 2 years Count % within does unavailability affects purchase Count % within does unavailability affects purchase 10 7.9% 1 1.4%

Total

11 5.5%

1- 6 months

9 7.1%

0 .0%

9 4.5%

13 10.2%

10 13.7%

23 11.5%

1-2 years

31 24.4%

16 21.9%

47 23.5%

64 50.4%

46 63.0%

110 55.0%

Total

127 100.0%

73 100.0%

200 100.0%

Chi Square TestsChi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 10.687(a) 14.485 6.475 200 df 4 4 1 Asymp. Sig. (2-sided) .030 .006 .011

a 2 cells (20.0%) have expected count less than 5. The minimum expected count is 3.29.

83

AnalysisAs seen above 63% of the consumers who use their cream for more than two years responded that unavailability does not affect their purchase.

Availability of Fairness Creams in market460

230

214

212

Fair & Lovely

Fairever

Fairone

Emami Naturally Fair

As seen from the graph above out of 460 outlets Fair & Lovely has 100% presence. Fairever was present in 50% of the retail outlets. While Fairone and Emami Naturally Fair were present in 47% and 46% of the retail outlets respectively.

84

emami 6.64

fairever 5.94

fairone 5.63

fair & lovely 26.82

As seen above in the graph Fair & Lovely sells approximately 27 pieces monthly on an average. Fairone and Fairever sell 6 pieces monthly on an average, while Emami sells around 7 pieces.

85

Findings & AnalysisOn analyzing the data we can say that fairness cream market is viable. Most of the respondents are in the age group of 25 to 45 years. Approximately 63% of the respondents have an income in the range of 200000 to 500000.Around 76% of the respondents use fairness creams. There is a huge opportunity in this market and making ample use would be profitable. Major competitor identified in case of fairness cream is fair & lovely. Fair & lovely is a HUL brand. It has huge penetration with 40% respondents using fair & lovely. Since only one major competitor is identified we should focus more on marketing strategy followed by fair & lovely. However Garnier Light and Lakme also occupy approximately 15% and 16% share. We have considered these responses as null because the target group of Vivel Fairness cream is middle class consumers. Our main focus is on the consumers who use fairness creams like fair & lovely, fairever, fairone, and emami naturally fair. Respondents were asked the list of attributes they would prefer in a cream. The topmost attribute was fairness followed by removal of dark spots and moisturizer. Thus respondents do not just want fairness but also factors like moisturizer, sunscreen in their creams. Consumers are very sensitive towards their skin. As on analyzing the important factors while choosing a cream we find that Quality, performance and Brand name is highly important factor in choosing a cream. Shopping convenience is rated as important. Thus, this asserts the fact that consumer wants convenience. Price of cream is also a deciding factor in buying of cream. Price was rated as a medium important factor influencing the decision of consumer. Promotional Schemes, Discounts are important factors that affect buying behavior of consumer. Promotional tools like word of mouth, Internet are not among the top factors that influence buying behavior. However TV ads, family members influence the purchase decision of consumers. Promotional tools such as Package design important to consumer. However promotions through Newspaper and Magazines do not influence buying behavior of consumers. 47% respondents disagreed that newspaper Ads influence their buying behavior.

North India is subject to extreme weather changes as a result consumers also change their skincare regimen. Approximately 58% respondents said that their face cream changes with season. Also if, a product is unavailable in the market consumers switch to using another product. 64% of the respondents admitted that unavailability affects their purchase.

86

Consumers are loyal to their skin cream brand, as total of 55% respondents have been using their cream for more than 2 years. 41% of the respondents were interested in buying a new skin cream. Middle class consumers in the income range of 200000 to 500000 are maximum users of fairness creams. Consumers who are mid aged are maximum users of fairness creams. However young consumers comparatively do not use fairness creams. Our target market consists of middle class consumers in the middle age group. Consumers interested in Price, Schemes, Discounts are most likely to try a new product. However consumers who rated Quality, brand name, shopping convenience important were least interested in buying new product. Unavailability of the product does not affect consumers using their cream since two years. Consumers are brand loyal and unavailability will not affect their purchase. As part of the retailer survey out of 460 outlets fair & lovely is availability was 100%. Also Fair & Lovely sold maximum no of pieces monthly. Thus we identify Fair & Lovely as our major competitor. Fair & lovely was launched in 1975 by HUL. HUL with Fair & Lovely has a massive 53 % market share.

Over the years HUL launched fair & Lovely Fairness Cream-1978, Fair & Lovely Ayurvedic Cream-2001, Fair & Lovely Fairness Cream with extra brightness-2003, Fair& Lovely Menz Active-2006, Fair & Lovely Body Fairness Milk, Fair & Lovely Anti Marks, Anti Ageing Cream, Perfect Radiance Cream, Fair and Lovely Multivitamin Cream. Target market for fair & lovely comprise of young women aged-18 to 35 and school girls aged12 to 14 belonging to middle class families (rural, urban people) Promotional techniques used comprise TV Ads, Fairness Meter and Fair & Lovely Scholarship Programme. Fair & Lovely has 3 types of positioning namely Value Positioning, Benefits driven positioning, Problem/Solution positioning.

87

SWOT Fair & Lovely

Strength: High Awareness F & L USP Fairness in 6 weeks Worlds largest fairness cream brand with presence in 40 countries and value of Rs 6 billion.

Weakness : Presence of several competitors with same product line Many untapped market around the world Entrance of foreign companies in India with high efficiency to beat domestic players.

Opportunity : Threats : Extending the equity of its leading fairness There are several existing competitors in the cream brand "Fair & Lovely" to premium Fair & market with the same product category. Lovely soap. The brand has had its share of negative publicity, with womens groups calling the ad Fair & Lovely is getting advantages by launching Fair& Lovely foundation that works for Women regressive. Empowerment achievement and Transformation. Threat from future new entrant to compete with them in such a cut-throat market People prefer Fair & Lovely when comparing with any other brands. condition. Challenges to deal with competition and consumer choice and buying behavior

Visibility and availability of ITC products is approximately 82% which is quite high despite being in the earlier growth stage. From the data collected it can be stated that ITC personal care products is still venturing in the Dehradun market to establish itself. It has just come out through its introductory stage. It still has a long way to go, which can be eased out by engaging in more promotional activity for both the customers as well as the retailers. Dehradun market seem to be more affected by the advertisement done by different brands of shampoo, hence if popular mass media like television are used then it will prove to be very beneficial. Retailers of Dehradun seem to be great influencer for the customer hence retailers should be motivated to promote ITC personal care products more than competitors brand. Awareness among retailers about ITC personal care is very high. Sunsilk is the major competitor among shampoos. It acquires 70% of the market share in Dehradun.

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Sunsilk is a leading brand of Unilever, marketed in more than 50 countries in Asia, Latin America, the Middle East and North Africa. It was launched in India in 1964. In the initial years in India, Sunsilk was a cosmetic beauty shampoo. Within ten years of its launch in India Sunsilk launched a tonic shampoo for dandruff, which was the first anti-dandruff shampoo in India. In the India, Unilevers goal was to position Sunsilk as a brand that understood the problems faced by women and their needs and preferences. Sunsilk had a range re-launch in 2006 followed by launch of new variants in 2007 when conditioners, Livon and hair masks were introduced transforming Sunsilk into a complete hair care brand. The price of Re 1 and 2 for Sunsilk shampoo sachets shows how the price also reflects a concern to make the purchase more convenient, since the rupee is denoted in this value. Sunsilk is also available in Rs 45 and Rs 169 price bottles to cater to the demands keeping in mind the wants of this particular customer segment.

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SWOT SUNSILK Strength Weakness Sunsilk owned by HUL Limited is Competitor has strong promotional one of the largest organizations in activities. India. Customers are offered better alternatives by the competition. Company has advanced technology and well skilled professionals. Advertisement flaws Devaluation of product The New Sunsilk Shampoo is a high quality product in terms of hair Products quality loses its values protection. Poor promotion of free samples No unique identification of The target market is educated, product professionals and belongs to premium and middle class. Company totally owned, systematic distribution network, transparent communication system. Very good distribution network all over India, in all major and small cities. Opportunity Threat Consumers are becoming more Political and Economic factors. quality conscious Partial Government policies. Customer base is increasing with High rate of competition. effective marketing. Local and Foreign competition. Introducing variants like baby shampoo Shampoo plus conditioner and antidandruff shampoos are another area where HUL can earn huge profits. Rural areas are a large prospective market where they can introduce Sunsilk.

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Lux is the major competitor identified in the soap segment. It acquires 74% of the market share in Dehradun. Lux was introduced in 1929, in India, as a bathing soap. It is Owned by global consumer products giant Unilever Plc., the parent company of Hindustan Unilever Ltd (HUL) with a market valued at Rs6,000 crore. Lux is positioned as a beauty soap in India, and HUL has since used successful film actors of the timesuch as Leela Chitnis, Madhubala, Hema Malini and Kareena Kapoorto endorse the product. Luxs secret of longevity has been its consistent evolutionbe it the soap colour, packaging or new variants, the brand has banked on innovation to keep its youthful image intact. Extending the soap cake to a range of shower gels, liquid soaps and moisturizing bars has helped the brand keep consumers excited and the competition at bay. What has not changed is the consistency in its communication and its positioning. Its tag lines If its good enough for a film star, then its good for you too to Play with beautyhave conveyed the same message over the years.

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Limitations The time period for the study was not enough for such a vast topic. It was difficult for the storekeepers to pinpoint the sales of a particular brand in retail stores No proper data was available about the stores in the city. As the nature of research was exploratory so it was difficult to cover each and every retailer. Many retailers dont express their original perception and views because of biasness. The market study on fairness cream was gender specific with 90% of females participating in the study as compared to 10 % males. Certain open ended questions were not answered with justice.

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Recommendations Even as visibility and availability of ITC personal care products is 84% we should strive for more penetration among the consumers. Using penetration strategy for ITC personal care would be appropriate given that personal care is still in the nascent stage. Analyzing and identifying major competitors. Keeping a tab on their strengths and weakness and accordingly preparing own strategy. Increasing awareness for personal care among the consumers and retailers. Efficient marketing of products to retailers. Increasing the efficiency of distribution system. Ensuring every shop in the area houses ITC personal care products. Appointing knowledgeable distributers who can market personal care products to shopkeepers. Positioning and marketing Fiama soap as a cosmetic product. As most of the cosmetic shops did not keep Fiama while keeping Dove and Pears. Sell Out space can be increased to increase the awareness among the consumers. Sponsorships to local events would be an efficient marketing technique. Van promotions Tie up with regional/local newspapers running competitions at the time of festive season. As fairness cream is soon being launched in northern India. Adapting the cream according to the preference of consumer. Apart from fairness other attributes such as moisturizer and removal of dark spots should be included. Giving occasional discounts Introduction of promotional schemes. Example: Promotional schemes such as buy fairness cream and get a soap for free Variants of fairness cream can be introduced. Availability of cream in all the retail outlets to ensure penetration and also giving importance to convenience of the consumer. Introducing variations of cream according to season to ensure consumers dont switch to other product. Package design should be made as attractive as possible. Wooing youngsters with attractive packaging. Variants of cream targeting youth. Appropriate pricing of the product so as to serve our target market.

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The company should try to create not only brand awareness but also an interest among the target group to use the shampoo and feel the effect. Motivating retailers to sell ITC personal care products.

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BCG Matrix ITC

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Bibliography

www.itcportal.com wikipedia.org/wiki/ITC Limited Moneycontrol.com www.economywatch.com www.indianindustryprofiles.com www.researchandmarkets.com www.google.com www.business-standard.com/india www.indiaretailing.com

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AppendixQuestionnaire

1. Personal Details: Age: 15 to 25 25 to 35 35 to 45 45 to 55 Above 55 Gender: Male Female Family Income per annum: Less than 100,000 100,000 to 200,000 200,000 to 500,000 More than 500,000 2. Do you use fairness creams? Yes No

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3. If yes, please select the appropriate option Fair & Lovely Emami Naturally Fair Fairever Others

4. If other, please specify

5. Duration of use of the product: Within 1 month 1-6 months 6 months to 1 year 1-2 years More than 2 years 6. What attributes you prefer in a cream (multiple choices) Fairness Moisturizer Sunscreen Removal of dark spots Herbal extracts 7. Where do you usually prefer to buy skin care products like creams from? Department store Neighborhood Grocery store Cosmetic shops Big general stores

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8. Rate the importance of the following factors while choosing a cosmetic cream, Particulars Quality Recognized brand name Discounts Schemes Shopping convenience Price Performance No importance Low importance Neutral Medium importance High importance

9. Other than the product, which of the following would influence the most on your buying of a particular cream, mark on the scale of 1 to 5 where 1: strongly disagree, 2: disagree, 3: neutral, 4: agree, 5: strongly agree Particulars Word of mouth Television Ad Newspaper Internet Family/Friends Package Design Strongly Disagree Disagree Neutral Agree Strongly Agree

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10.Does your preference for creams change with season? Agree Disagree 11.Does unavailability of the product of your choice affect your purchase? Agree Disagree 12.If a new product with similar attributes as of the product of your choice is launched, rate your interest in buying that product? Not at all interested Not interested Neutral Interested Very interested

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Project Report on Itc Repaired_ 12 (1)

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Transcript of Project Report on Itc Repaired_ 12 (1)