Summer Internship Report At Zydus Wellness

SUMMER INTERNSHIP PROJECT, PGPM 2013-15 0

SUMMER INTERNSHIP

REPORT

IBS BUSINESS SCHOOL, AHEMEDABAD

HUZEFA DAUDI

13BSP0295


SUMMER INTERNSHIP

PROJECT

As partial fulfillment of requirements for the award of

Post Graduate Program in Management

Report on Identifying factors behind decreasing market share

Of Zydus Wellness in Indore

Faculty Mentor Corporate Mentor

Prof. Prashant Saxena Mr. Vineet Shrivastava

Intern Huzefa Daudi

PGDM

13BSP0295


AUTHORIZATION

This is to certify that Mr. Huzefa Daudi, has completed her summer internship at Zydus

Wellness, and has submitted this project report entitled Identifying factors behind decreasing

market share towards partial fulfillment of the requirements for the award of the Post Graduate

Program in Management.

This Report is the result of his own work and to the best of my knowledge no part of it has

earlier comprised any other report, monograph, dissertation or book. This project was carried

out under my overall supervision.

Date:

Place:

……………………………

Faculty Guide


ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successful completion of the project

would be incomplete without the mention of the people who made it possible.

I would like to take the opportunity to thank and express my deep sense of gratitude

to my corporate mentor Mr. Vineet Shrivastava and my faculty mentor Prof.

Prashant Saxena. I am greatly indebted to both of them for providing their valuable

guidance at all stages of the study, their advice, constructive suggestions, positive

and supportive attitude and continuous encouragement, without which it would

have not been possible to complete the project.

I would also like to thank Mr. Sudhir Abhyankar (Senior Sales Officer.) who in

spite of busy schedule has co-operated with me continuously and indeed, his

valuable contribution and guidance have been certainly indispensable for my

project work.

I owe my wholehearted thanks and appreciation to the entire staff of the company

for their cooperation and assistance during the course of my project.

I hope that I can build upon the experience and knowledge that I have gained and

make a valuable contribution towards this industry in coming future.


Table of Contents AUTHORIZATION ..................................................................................................................................................................... 2

ACKNOWLEDGEMENT ............................................................................................................................................................. 3

EXECUTIVE SUMMARY ............................................................................................................................................................ 6

CORPORATE INFORMATION.................................................................................................................................................... 7

COMPANY DETAIL ................................................................................................................................................................... 8

INTRODUCTION ....................................................................................................................................................................... 9

Need of Project ................................................................................................................................................................... 9

Objective of the Project ...................................................................................................................................................... 9

ORGANISATIONAL BACKGROUND......................................................................................................................................... 10

SUGAR FREE .......................................................................................................................................................................... 11

Competitive Communication Scenario ............................................................................................................................. 12

Primary Competitors for Sugarfree ................................................................................................................................... 13

Current Communication Strategies .................................................................................................................................. 14

Packaging, Price & Value Proposition ............................................................................................................................... 14

EVERYUTH NATURALS ........................................................................................................................................................... 15

Everyuth Naturals is presented in the following category ................................................................................................ 16

Product Range ................................................................................................................................................................... 17

`` ........................................................................................................................................................................................ 18

Packaging, Price and Key Benefits..................................................................................................................................... 18

CURRENT SCENARIO.............................................................................................................................................................. 19

Distributors Description .................................................................................................................................................... 20

Role of a Distributor .......................................................................................................................................................... 21

Retailers Description ......................................................................................................................................................... 22

Sales Records .................................................................................................................................................................... 23

Sales Summary .................................................................................................................................................................. 29

PROBLEM STATEMENTS ........................................................................................................................................................ 30

OBSERVATIONS ..................................................................................................................................................................... 31

Feedback report of local area distributors and retailers .................................................................................................. 33


IMPROVEMENTS ................................................................................................................................................................... 34

LIMITATIONS ......................................................................................................................................................................... 36

RECOMMENDATIONS............................................................................................................................................................ 37

CONCLUSION ......................................................................................................................................................................... 38


EXECUTIVE SUMMARY

The project was started on 18th of Feb after knowing all the relevant information

about the different varieties available, under the guidance of Mr.Sudhir Abhyankar

(S. S. Officer).The first part of my project involves the study of distributors

allocated to me Identification of their problem areas and helping them in order to

increase sale. For this I used the method of personal interviews. At the same time,

they were being made aware of the incremental scheme of Zydus Wellness for the

distributors. Along with the distributors a study of retailers was conducted to better

understand the grievances and identify the gaps. For this I visited around 1200

outlets in Indore, ie, New & Old Indore and spoke to them. I was also supposed to

find out new retail outlets and convince them to sell Sugar Free & EverYuth

products by showing them the opportunity of getting attached with a big FMCG

brand like Zydus Wellness and increase the customer base. Despite of summer and

low demand I was successful in persuading people and a number of new retail sale

points were developed and the sale was increased. The second part of my internship

is to assist Regional Sales Officer in collection and compilation of data of sales per

outlet under the distributors in Indore.


CORPORATE INFORMATION

BOARD OF DIRECTORS: Pankaj R. Patel

Chairman

Elkana N. Ezekiel

Managing Director

DIRECTORS: H. Dhanrajgir

Mukesh M. Patel

Dr. B. M. Hegde

Prof. Indiraben J. Parikh

Ganesh N. Nayak

Dr. Sharvil P. Patel

AUDITOR M/s Manubhai& Co.,

Chartered Accountants

COMPANY SECRETARY Dhaval N. Soni

REGISTERED AND “Zydus Tower”,

HEADOFFICE Satellite Cross Roads,

Sarkhej-Gandhinagar Highway,

Ahmedabad-380 015.

www.zyduswellness.in

http://www.zyduswellness.in/


COMPANY DETAIL

Industry Food and Skin Care

Foundation 1984

Head Office Ahmedabad, India

Area Served Global

Products Sugarfree, EverYuth, Nutralite, Actilife.

Production Unit Baddi (HP), Sikkim (Assam).

Type Public

Bombay Stock Exchange 531335

National Stock Exchange ZYDUSWELL

Net Worth Rs. 2,565 Million

Net Fixed Assets Rs. 943 Million

Net Current Assets Rs.1,564 Million

Cash & Bank Balance Rs. 1,908 Million

Website www.zyduswellness.in, www.everyuth.com,

www.sugarfreeindia.com

Source : Annual Report

http://www.zyduswellness.in/

http://www.everyuth.com/

http://www.sugarfreeindia.com/


INTRODUCTION

Need of Project

The project was an attempt to know the reasons behind low sale of Sugar Free &

EverYuth in Indore. Despite of being the first in the industry, and having the first

mover advantage and the brand name, the sale has fallen down incredibly due to

some reasons. There is a need to revamp the company and position it all over again

in the mind of the consumers. In doing so firstly the grievances of the distributors

and the retailers were required to be solved in order to encourage them for push

sales. Secondly a study of consumer’s decision making factors is required in order

to understand their priorities which can be worked upon. For this purpose a project

is undertaken to find out the market scenario.

With the help of the responses given by the consumers, retailers and distributors,

the company will be able to understand its strengths, weakness, opportunities and

threats.

Objective of the Project

The objectives of the project are as follow:

The main objective of this project is to probe the reasons for decreasing market share of

Zydus Wellness and to find out the measures that can be adopted to increase the sales.

To study the distribution channel in the retail chain of Zydus Wellness.

To identify the issues related to Zydus Wellness retailers and distributors

To get the retailers feedback from specific regions

To add up new retailers in the area

To find out short term problem in every sub-region that can be sorted out.


ORGANISATIONAL BACKGROUND

Zydus Wellness Limited was incorporated as

Carnation Nutra-Analogue Foods Limited. Initially the company was engaged in the

business of manufacturing, buying and selling of all types of health food products,

low fat, and low cholesterol including table margarine, cheese, butter and substitute

products. The name of the company has been changed from ‘Carnation Nutra-

Analogue Foods Limited’ to ‘Zydus Wellness Limited’.

Zydus Wellness, a subsidiary of Cadila Healthcare, is one of India's fastest growing

and most respected companies in the healthcare and skincare division.

Sugar free

Gold

Natura

D lite

Everyuth Naturals

Peel off Masks

Facewash

Scrub

Face-Pack

Foot Scrub

Home Facial

Nutralite

Yummy Spread

Omega3

Sandwich spread

withCheese

Mayonnaise Lite

Mayonnaise Regular

Actilife


SUGAR FREE

Sugar Free as a brand has come a long way in twenty years of its existence. It has transformed

from an ethical brand of sugar substitute for diabetic patients to a FMHG (fast moving health

goods) brand for calorie-conscious, busy, and healthy lifestyle-seeking urban dweller. In the

journey, the brand has gone through substantial changes in packaging and distribution. It has

earned undisputed market leadership and has gained strong equity amongst consumers, retailers,

and health experts (chemists and physicians).

On marketing communications front, it is contemplating to embark upon a new brand endorser

strategy and has roped in ‘Bipasha Basu’ – one of the leading actresses of Indian cinema,

known for her fitness consciousness. Bipasha has been signed as the brand ambassador and the

lead protagonist in TVC – which is going to be fundamentally different from the previous

communication platforms. The new TVC featuring Bipasha Basu presents Sugar Free as a

symbol of health-oriented lifestyle as opposed to the product benefit of lowering the calorie

intake, highlighted in all previous communications.

With 70 per cent market share, Sugar Free is leading the category in an INR 1.2 billion sugar

substitute market (estimated in mid-20013) that is growing at 20 per cent per annum. Sugar Free

is best positioned to exploit the market in its favor as it has twin offerings in Aspartame (Sugar

Free Gold) and Sucralose (Sugar Free Natura) – two fast growing sub-categories within the

sugar substitute market. Sugar Free follows an umbrella branding strategy, positioning its

variants on the basis of primary usage – table top vs. cooking and not on product attributes.

Zero, Sugarite, and Steviocal have made their intentions clear that they will take the route of

product differentiation in their communication strategy and will play up the recent negative

reports on Asparatame to gain shares from this sub-category. This is certainly going to create

consumer dissonance and draw consumer attention towards the ingredients of artificial

sweetener brands. Consumers are becoming savvy and are increasingly concerned over food

safety issues. Sugar Free has reasons to be worried about this barrier as Sugar Free Gold

(Asparatame) is the flagship variant in its portfolio.


Competitive Communication Scenario

Sugar Free is the most visible brand with a number of celebrities from different domains of

popular culture endorsing it (Raveena Tandon, popular movie actress; Harsha Bhogle, popular

cricket commentator and anchor; and Sanjeev Kapoor, India’s most famous and respected chef).

Sugar Free has been leveraging endorsement strategy for the past few years/campaign cycles;

however, the messaging is focused more on calorie reduction, positioning the brand as a

healthier alternative to sugar. Though there is a subtle difference in communication cues for

Sugar Free Gold and Natura, the main message remains in the same domain for both the

variants.

Equal is another brand that is also using TVC for its communication, and positioning itself as a

sweetener of choice for diabetic patients. The product soon gained recognition through the

support of pharmacists and doctors who lauded the health benefits of the low-calorie sweetener.

By the early 1980s, Canderel was being marketed in much of Europe.

Zero is highlighting its zero-calorie benefit and leveraging the product shape and attributes to

own this space. Its focus seems to be on building ‘product differentiation’ and generating a

brand switch from Sugar Free and other available brands. Waldemar Ventura Rodriguez, better

known by his friends and associates as "Wally" is the grandson of don Ventura Rodriguez, one

of Puerto Rico’s most respected legendary figures in the food and beverage distribution

business. Wally inherited the natural business acumen and intuitive ability to identify profitable

opportunities from his grandfather.

Kalorie 1, Sugarite, Steviocal and other brands have not yet come out with any campaigns that

are currently visible in the category, but are likely to be aggressive in their communication

strategy either on point of purchase or on product differentiation.


Primary Competitors for Sugarfree

Brand &

Manufacturer

Tageted

Consumers

Promotion

Startegies

Distributions Pricing Market

Share

Sugar free

Gold

Zydus

Wellness

12 million

fitness

conscious

consumer in

metros and

big cities

Cheeni Kum,

infilm

placement,

Bipasha Basu,

Akshay Kumar,

Sanjeev Kapoor

Ad.

Strong distribution

channel with field

force of 3000, reaches

100000 chemists and

200000 doctors

including physicians,

specialists, and

super specialists

Rs 55 for

100

tablets

70%

Equal 2000

Monsanto, US

World’s No.1,

Problem solution

mode, the best

indegridents give

clean sugar taste.

Rs 130

for 100

tablets

15-20%

Sweetex

Sweetos

Ensigns

Healthcare

Pvt Ltd, Pune

Suga Rite

Rigil, South

America

Heat stable hence

cook and Bake. Twin-pronged strategy

of targeting doctors

and diabetic forums

Rs 85 for

100

tablets

Kalorie,

Mankind

Pharma, India

Wasim Akram ( a

pakistani circketer

who is diabetic)

Zero 2005,

Alembic

Consumer

belonging

to age 30 to

40 years

Promoted as

‘livwlite’;

Two-phase

promotion: Phase

1: educate about

sucralose. Phase 2:

focused

on benefits of zero

with

years TV as lead

medium.

Rs 60for

90 tablets

Targeting

10%

market

share


Current Communication Strategies

To overcome the current communication challenges, marketing barriers posed by the existing

and emerging competition, and to appeal to the targeted segments, Sugar Free is redefining the

category communication code. Its communication works in a way that makes product

differentiation redundant or bracketed for people with special needs. The focus is on building

consumer pull for the brand. Sugar Free is advertising to make lifestyle cues more important to

consumers as long as the product delivers on the basic function of healthier lifestyle and fitness.

Sugar Free has become a fashion statement on fitness orientation and a consumer conversation

currency on healthy lifestyle.

Large scale sampling of D’Lite, the drink variant of the brand, is generated for appropriate

consumer interaction in the context of on-the-go consumption and complements the brand’s

strategic intent.

Packaging, Price & Value Proposition

Brand Application Price of

pallet

packs

Price of

sachet

packs

Price of

powder

packs

Value

Proposition

Molecule

Sugar free

Gold

Table top

applications

like tea

coffee juice

nimbupani

etc

Rs 20 (40

tablet)

Rs 55 (100+10

tablets)

Rs

130(300+30

Tablets)

Rs 175 (500

Tablets

Rs 35 ( 25+5

tablets)

Rs 60 (50

tablets)

Rs 95 (100

tablets)

Rs 90 (100

gms)

Healthier

alternative

to sugar

Aspartame

Sugar free

Natura

Ideal for

cooking &

baking like

halwa,

cakes,

desserts etc

Rs 20 (20

Pellet pack)

Rs 60 (100

Pellet packs)

Rs 110(200

pellet packs)

160 (300

Pellet packs)

Rs35 (25

sachets packs)

Rs65 (50

sachets packs)

Rs 125 (100

sachet packs)

Rs 100 (100

gms)

Zero-

Calorie

Sweetner

Sucralose

made

from

sugar


EVERYUTH NATURALS

India is experiencing a tremendous growth in FMCG market space. Higher disposable income,

Increased product awareness, affordable pricing, and shift in lifestyles have together been

instrumental in the change in the amount and pattern of consumer spending, thereby resulting in

strong growth in the industry. Growth in these segments has resulted in increase in sales as a

result; the selectivity and consumer perception of a certain brand plays a very crucial role and is

gaining importance in the decision making. Consumer experience and after-Sales support has

become an integral part of the product. Satisfactory perception and development of a brand

helps in customer retention and in generation of the brand loyal customer.

The face is a reflection of one's inner health. Keeping this in mind, Zydus Wellness Ltd.

introduced a range of specialty skincare products under the brand name of EverYuth Naturals.

These skincare products have been designed to work from within the skin to reflect a clear,

beautiful & healthy skin outside.

While having the advantage of being a 'skincare brand from a healthcare company', EverYuth

Naturals has always come up with products that are designed keeping in mind the different

needs and skin types of women. These products are fortified with the power of natural

ingredients that are known for their efficacy and skin nourishing properties. As a result, the

brand promises nature's goodness along with the benefits of proven scientific research.

Today, EverYuth Naturals has a strong leadership presence in advanced skincare segments like

soapfree face wash, face masks, skin exfoliators amongst others. It also includes specialty

dermatologically tested skincare solutions for sun protection, pigmentation and acne.

EverYuth has recently forayed into the market of male skincare with the launch EverYuth

Menz. With this new range, the brand has filled the vacuum of a basic skin care range for men

in the Indian market. In a first of its kind, EverYuth has launched the first scrub for males in

India. EverYuth Menz is India’s first comprehensive skincare range designed keeping in mind a

man’s rigorous lifestyle and his specific needs.


Everyuth Naturals is presented in the following category

Scrubs

Face washes

Bathing Bars

Peel off Mask

EverYuth Men


Product Range

Sr No. Product Name Sr No. Product Name

01 EverYuth Golden Glow Peel off

Mask

15 EverYuth Fruit Soap

02 EverYuth Orange Peel off Mask 16 EverYuth Neem Soap

03 EverYuth Aloe Vera face wash 17 EverYuth Orange Foot Scrub

04 EverYuth Lemon face wash 18 EverYuth Papaya Home Facial

05 EverYuth Fruit face wash 19 EverYuth Rose Home Facial

06 EverYuth Grape face wash 20 EverYuth Neem Home Facial

07 EverYuth Neem face wash 21 EverYuth Haldi & Chandan face pack

(New)

08 EverYuth Saffron face wash 22 EverYuth Fairness Peel off Mask

(New)

09 EverYuth Peach Cream face wash 23 EverYuth 3 in 1 Neem face pack

(New)

10 EverYuth Strawberry Scrub 24 EverYuth Tulsi Turmeric Face wash

(New)

11 EverYuth Walnut Scrub 25 EverYuth Menz Skin Balancing face

wash

12 EverYuth Apricot Scrub 26 EverYuth Menz Pollution Defense face

wash

13 EverYuth Cucumber face pack 27 EverYuth Menz Exfoliating facial

scrub

14 EverYuth Oil Clear Lemon Soap 28 EverYuth Menz Whitening cream


``

Packaging, Price and Key Benefits

Product Name Price in Sachets Price in Tube/

Bars

Key Benefits

EverYuth Golden

Glow Mask

8gms X3 = Rs 45 50gm Rs 75

90gm 115

Gives Instant fairness

and Golden Glow in

Just 15 Minutes

EverYuth Orange Peel

Off

50gms= Rs 70

90gms =Rs 100

3X action,

Stimulates blood

circulation & increase

oxygen supply to

tighten skin.

EverYuth Walnut

Scrub

25gms X 3 = Rs105 5gm = Rs 65

100gms = Rs 105

Provide Nourishment

to skin

Everyuth Strawberry

Scrub

25gms X 3 = Rs105 5gm = Rs 65

100gms = Rs 105

Gives clear ,radiant,

fair skin

EverYuth Oilclear

Lemon Bathing Bar

- 75gm X 4 = Rs 128 Lemon extracts

EverYuth Neem

Bathing Bars

- 75gm X 4 = Rs 128 Neem extracts

EverYuth Lemon

Face wash

- 100ml= Rs65 Gives you flow less

skin with oil free and

refreshed look.

EverYuth Fruit Face

wash

-

60ml= Rs 55

100ml= Rs 65

Provides intensive

hydration and

revitalizes the skin.

EverYuth Neem Face

wash

- 60ml= Rs 55

100ml= Rs 65

Fight bagainst

bacterial infections.

EverYuth Saffron

Face wash

- 60ml= Rs 55

100ml= Rs 65

Whiten Skin tone,

Clear and light skin

EverYuth Tulsi

Turmeric Face wash

(New)

- 60ml = RS 35 Helps prevent

pimples,

Help reduce Marks.


CURRENT SCENARIO

As far as Indore is concern, Indore is a huge market of skin and health

concisions customers. That’s why company has put two different distributors of the company’s

products in two different markets of Indore. One is Old Indore where distribution of products is

done by Dolphin Traders, and another area is handled by Sunil Agency. Both the distributors

are successful in the proper distribution of goods in the market place.

Zydus Wellness

Sunil Agency

Grocers Chemists Cosmetics

Dolphin Traders

Cosmetics Grocers Chemists


Distributors Description

Dolphin Traders

Mr Dinesh Garg is the owner of Dolphin Traders. Old Indore area is totally served by Dolphin

Traders. Around 830 outlets are under Dolphin Traders who gets services from Dolphin

Traders. Total 12 salesmen working for Dolphin Traders, as they are also having other products

dealerships as well. 4 salesmen are working for Zydus products taking orders and collecting

previous bill amounts from the customers. They are also having 3 loaders to distribute goods to

the retailers shop. Total turnover of Dolphin Traders is Rs.55 lac, and Zydus turnover is about

Rs. 11 lac per annum. They have a good command over there salesmen. Environment of the

distributor’s points is good. Sometimes avoid providing Cash Discounts to the retailers as they

complain for the non ethical behavior of the distributor.

Sunil Agency

Mr. Sunil Karve is the owner of Sunil Agency. New Indore part is covered by Sunil Agency.

They have covered around 630 outlets in the New Indore area. Total 6 salesmen working under

them 2 for Zydus Wellness, Collection orders from the retail outlets and collecting previous

order’s bill amount from the outlets. 4 loaders are there to distribute goods to the retail outlets.

Total turnover of Sunil Agency is Rs. 35 Lac where for Zydus Wellness they have Rs. 9 lac of

turnover per annum. Working environments is not as good as salesmen come very late in the

morning and end up early from the market. Sunil Agency’s work ethics are very clear. They

provide proper schemes to the retailers and provide proper discounts on the goods.


Role of a Distributor

Distribution is one of the four aspects of marketing. A distributor is the middleman between the

manufacturer and retailer. After a product is manufactured, it may be warehoused or shipped to

the next echelon in the supply chain, typically a distributor, retailer or consumer. In industries

such as FMCG, where many of the materials are made continuously and/or in large batches,

shipments also must be large, in the form of truckloads or railcars, to make economic sense.

From a practical standpoint, it's not feasible for a single supplier to fulfill many thousands of

small orders to customers around the world. Enter the distributor, who buys large material

quantities from a supplier/manufacturer, then creates smaller material units and delivers those

units to many customers, in a timely fashion. They are distinct from brokers, who neither take

delivery or nor title to the material, and surplus buyers, who typically buy aged material or

overage and resell it at a discount.

Unlike big users that can buy truckload quantities direct from a supplier, most FMCG

manufacturers have neither the cash flow nor the storage space to make that approach viable.

The distributor, however, has both storage space and the resources to purchase product in

quantity, as well as the equipment and personnel necessary to sort and package it in small

orders. They can, in effect, manage the small manufacturer's inventory for him. Good

communication between the distributor and customer ensures an unbroken supply chain, and

helps the distributor manage his own warehouse inventory, to ensure timely material turnover

and no dead stock or stock outs. Successful distributors, therefore, are shipping experts, using

either their own truck fleets or cost-effective common carriers.

An important benefit provided to end-users is financing and credit, critical to both small and

large businesses, particularly during down cycles, says one distributor's spokesman. Another is

assuming the responsibility for product quality. The distributor's relationship both with the

material supplier and hundreds (or thousands) of customers gives him leverage to resolve

quality issues -- the supplier doesn't want to risk losing his customer base. Third, the distributor

is knowledgeable about all of his suppliers' products, and can offer technical advice and training

to his customers, to help them make the right material choices. He also can provide market

intelligence, alerting end-users to price trends or impending shortages.


Retailers Description

Chemists

Chemists are those retailers, whom we provide mostly health care products like Sugar free Gold

and Sugar free Natura. Some of the chemist also deals in skin care products like our Face

washes and scrubs of EverYuth. The payment behavior of chemists is mostly very instant. Bill

to bill order system is done with the entire chemist. Last bill is paid then the next order is taken

from them. Mostly store owner talks very less with salesmen, ask there workers to put the order

as per the demand of store.

Grocers

Grocers are those whom we provide our both products Sugar free as well as EverYuth. As they

have all the range of household items. Grocer only demands for a lagerest selling product of

ours like Sugar free Gold and in EverYuth Face wash and scrubs. Buying and payment behavior

of grocers is also well. Bill to bill payment system is done with entire grocers. Orders are taken

by salesmen mostly as per the routine requirement and sale of retail outlet. Behavior with our

salesmen is good.

Cosmetics

Cosmetics store is like a skin care store where all types of skin problem solutions are available

with a product. Also it is a store of fashionable items for both genders. Mostly we provide

EverYuth products to a cosmetics store. Its is stop where we can put our whole range of skin

care products we have like scrubs, peel off mask, face washes, bathing bars foot scrubs etc.

Buying and payment behavior of cosmetics store keeper is also good. Sometimes they delay in

payment as per the market conditions and place fewer amounts of products order.


Sales Records

Sunil Agency Product Placement record of Feb’14

Sr.No Area No of outlets Goods Placed Remaining

01 Tilak Nagar 55 7 48

02 Palasia 51 14 37

03 LIG HIG 62 8 54

04 Vijay Nagar 65 19 46

05 IndrapuriVishnupuri 57 11 46

06 Chavni 53 5 48

07 Khajrana 42 12 30

08 MalwaMill 37 6 31

09 Sukhliya 44 12 32

10 SapnaSangeeta 39 3 36

11 Sch. No 114 17 2 15

12 Dawa Bazaar 45 29 16

13 Kanadia Road 5 5 0

14 Patnipura 9 9 0

15 GeetaBhawan 6 6 0

16 M Y Hospital 10 10 0

17 Sindhi Colony 7 7 0

18 Khatiwala Tank 5 5 0

19 Ananad Bazar 8 8 0

20 Saket Nagar 6 6 0

21 Nanda Nagar 7 7 0

22 Misc. 44 44 0

Total 674 235 439

35%

65%

Sunil Agency Product Placement Chart Feb'14

Goods Placed Remaining


Dolphin Traders Product Placement Records of Feb’14

Sr No Area Name No of outlets Goods Placed Remaining

1 Kalani Nagar 35 7 28

2 Airort Road 32 10 22


4 Ada Bazaar 13 6 7

5 Juni Indore 38 13 25

6 Sudhama Nagar 52 19 33

7 Rajendr Nagar 39 11 28

8 Gumashta Nagar 37 6 31

9 Biyabani 17 7 10

10 JawaharMargh 37 16 21

11 Sangam Nagar 52 15 37

12 Sikh Mohallah 18 11 7

13 SubhashMargh 28 10 18

14 Annapurna 47 17 30

15 Paraspar Nagar 10 3 7

16 Marothia Bazaar 16 8 8

17 Ranipura 31 13 18

18 Dhar Road 38 15 23

19 Misc. 266 266 0

Total 828 456 372

55%

45%

Dolphin Traders Product Placement Chart Feb '14



Sunil Agency Product Placement Records of March’14



2 Palasia 51 15 36

3 LIG HIG 62 16 46



6 Chavni 53 13 40

7 Khajrana 42 14 28

8 MalwaMill 37 07 30

9 Sukhliya 44 15 29


11 Sch. No 114 17 3 14



14 Patnipura 9 9 0






1 Saket Nagar 6 6 0

2 Nanda Nagar 7 7 0

3 Misc. 44 44 0

Total 674 280 394

42%

58%

Sunil Agency Product

Placement

Chart March'14



Dolphin Traders Product Placement Records of March’14

Sr No Area Name No. Outlets Goods Placed Remaining




4 Ada Bazaar 13 02 11





9 Biyabani 17 07 10









18 Dhar Road 38 08 30

19 Misc. 266 256 10

Total 828 410 418

50% 50%

Dolphin Agency Product Placement Chart March '14

Goods Placed Remainig


Sunil Agency Product Placement Records of April’14



2 Palasia 51 23 28

3 LIG HIG 62 22 40



6 Chavni 53 13 40

7 Khajrana 42 23 19

8 MalwaMill 37 7 30

9 Sukhliya 44 15 29


11 Sch. No 114 17 3 14



14 Patnipura 9 9 0






1 Saket Nagar 6 6 0

2 Nanda Nagar 7 7 0

3 Misc. 44 44 0

0

Total 674 325 349

48% 52%

Sunil Agency Product Placement Chart April'14

Goods Placed Goods Remaining


Dolphin Traders Product Placement Records of April’14

Sr No Area Name No of outlets Goods Placed

Remaini

ng




4 Ada Bazaar 13 6 7





9 Biyabani 17 7 10









18 Dhar Road 38 5 33

19 Misc. 266 246 20

Total 828 439 389

48% 52%

Chart Title Dolphin Traders Product Placement Chart April'14

Goods Placed Goods Remaining


Sales Summary

Sunil Agency

In the month of February 2014 total no outlet is 674, where goods placement is done at 235

outlets only, remaining are 439 outlets, that means only 35% market is covered in the month of

February’14. In the month of March’14 total no outlets were again 674, placement of goods

done at 280 stores, again unsuccessful in placement at 394 stores, that means only 42% of

market is covered. In the last month of my study i.e. April’14 with the same no of total outlet

674, goods placement done at 325 stores, that means 48% of market is covered. But still half of

the market is remaining. The above sales records show a slow growth in terms of product

placement by Sunil Agency. There is a growth but still to go very far at least 80-85% market

should be covered.

Dolphin Traders

In the starting of my study, February 2014 total no outlet under Dolphin Traders is 828, where

goods placement is done at 456 outlets only, remaining are 372 outlets, that means only 55%

market is covered in the month of February’14. In the month of March’14 total no outlets were

again 828, placement of goods done at 410 stores, again unsuccessful in placement at 418

stores, that means only 50% of market is covered. In the last month of my study i.e. April’14

with the same no of total outlet 828, goods placement done at 325 stores, that means 48% of

market is covered. This shows a decrease in the market share of Zydus Wellness in Old Indore

area or a high decrease of product placement by Dolphin Traders. This contains many reason

behind the decrement of the market share.


PROBLEM STATEMENTS

For Consumers

The brand perception and loyalty of the consumer plays a crucial role along with the after sale

support and the consumption experience is an integral part of the augmented product for the

consumer. Inconvenience is caused to customers when they need to register their complaints on

different company-defined stages. This escalates consumers cost in terms of time and money.

For Brand Owners & Manufacturers

Product Quality plays an important role in differentiation and in gaining viable advantage. One

way to enhance the consumer’s perception of the product quality is through gaining their view

point and suggestions also from the after-sales services.

After sales service adds value to the product and helps the company to show a reliable and high

quality image. Many customers have downgrades high quality products because of the deprived

quality of customer service and unresolved customer complaints. This leads to customer

dissatisfaction and loss of the repeat sales. Hence there exists an outmost need to develop the

image of the brand in the minds of consumer.


OBSERVATIONS

Sales force need to be Increased

Lack of sales force with both the distributors, 3 salesmen handling a huge

market of 850 outlets and 680 outlets, each area contains around 40-50

outlets approx for a single salesmen covering 50 outlets per day is a tough

task. They just go to the retailers collects there amount of last bill and ask

simply once for any order not even explain retailers about any new product

launch. Lack of knowledge is also one of the major points that affect the

placement of goods in the market. Salesmen are not trained as per the

requirement of the job so that they can explain the retailers about the product

newly launched in the market and answer the queries of retailers on the spot.

Other Stockiest

As I have been visiting the market regularly since last 2 months, some of the

retailers complaining about some stockiest providing goods at lower rate,

this is because of some stockiest purchasing goods from other states and

providing to the retailers at lower rates than the distributors. To complete the

target some distributors from other states sell goods in other states at

minimum rates of margin. This activity cuts the market of local distributors

so that the product placement of goods in the market become lower and the

distributors has to beer loss.


Taxation Policy

According to some taxation policy, every retailer should have a special

trading number or registration number called TIN No. Distributors are not

supposed to supply goods to those retailers who do not have TIN. Many of

the small traders do not have as they do not have a level of earning so that

they can pay taxes. But the distributors are bound to supply goods to the

only retailer who have TIN. That’s why many orders get cancelled due these

policies.

Absentees of Salesmen

Irregularity of salesmen in visiting outlets due to a large number of outlets is

to be taken care by very few salesmen. Some outlets get missed by the

salesmen. As the retailers complains about the absenteeism of salesmen a

there outlet for orders.

Lack of Promotional Material

Retailers asking for posters, banners or any standee to be given by company

as they are loyal to the company and sell only our products no alternative of

our products are sold by them. They asked for more advertisement posters so

that customer gets knowledge about the products in the market.

Scheme Distribution

Schemes or discounts are not distributed properly to the retailers by

distributors. Retailers complain about distributors that cash discount is not

given by the distributor but the salesmen have promised to provide.

Miscommunication happens between retailers and distributors that leads

retailer to purchase goods from stockiest. A retailer complains that most of

the time he pays the bill on delivery so he is eligible for 1% discount that

company offers but the distributor denied to give discount


Feedback report of local area distributors and retailers

Sr. No Feedback from Local Area Distributors and Local Retailers

01 Commission is less in comparison to other competitors brand

02 Transport Problem (Vehicles are not reaching in time/Single vehicle supply is wanted

by LAD)

03 Market visit required jointly with company’s officials for effective outcome

04 Other Local Area Distributors are infiltrating into the area

05 No free gift products are supplied by Zydus Wellness on certain amount of sale to

LADs as given by other competitor companies.

06 No Promotional material given by the company

07 Incentive scheme circular required

08 Better incentive plans should be implemented

09 Lifespan of the product is small compared to other brands

10 Leakage/Packing/Packaging problem


IMPROVEMENTS

Upgrade Products

Line extensions and upgrades of existing brands will ensure continued

consumer relevance. Rapid upgrade leads consumer reliability and brand

loyalty. That leads to a large number of varieties that a consumer can have

every product that suits according to his health or skin type.

Tie-up with Accenture

Accenture Strategy operates at intersection of business and technology.

Because technology is transforming every organization, we need

technology- enabled strategy to take advantage of opportunities. Accenture

derive value, shape new businesses and design operating models for the

future.

Secondary Driven Primary Sales

Maintaining balance between demand and supply in the secondary market,

So that demand can be successfully completed without any exceed in the

stock. A regular supply can be provided to avoid stock out situations.

Balancing in a way that leads to a good balance in stock to keep distributors

satisfy.


Infrastructure

State-of-the-art facility for Nutralite set up new facility in Sikkim for Sugar

Free and EverYuth. Accenture is also working upon building infrastructure

all over India for our company. So that our network becomes more strong

and wide to keep every customer in the reach of our product.

Minimal Working Capital

Almost entire business is on advance collection terms. Hardly 1 week dues

are allowed for any distributor or stockiest. This strategy leads to very

minimum risk of amount blockage and distributors are also working on the

same strategy of collecting bill amount every week then only another bill is

generated by our salesmen.


LIMITATIONS

The project was conducted in Indore only, so the limited area of the study may

affect the conclusions.

Some of the retailers could not give their proper response due to lack of time.

They at times tend to get biased and project a rosy picture which may affect

the reliability and relevance of the project.

It might also be so that some retailers were not motivated enough to respond

properly although full attempt was made to keep it as unbiased as possible.

There was no provision of visiting cards for the summer trainees which hinder

communication at times with retailers.

The duration of the project was short, so the scope of more in-depth

evaluation was not possible


RECOMMENDATIONS

Zydus Wellness should come up with schemes for customers along with

retailers as it would be a real boost to the sales and also it will help the

company to get back its lost customers.

It was seen that the price of the largest selling variety of Sugar Free which is

Sugar free Gold priced Rs 55 for 100 tablets, and the competitor product of

Zero priced Rs 60 for 90 tablets. Thus the price can be increased and thereby

margin of the retailers can be increased.

Also it was seen that price is not a major concern for the consumers when it

comes to a necessity like sugar free for regular consumers, so the price can be

increased by a rupee or two and the quality can be improved.

If EverYuth can do certain promotions as its competitor Garnier, Himalaya, etc does then

it can attract sales. Promotion with the help of boards, hoardings etc. and also it can

advertise in radio.

The company should try to adopt a relatively short period incentive system in

order to make it more friendly and achievable.

Differential margin should be given by the LADs to the retailers depending

upon the location and sales.

The organization should schedule these kinds of projects on a more regular

basis as at this point of growing stage of the organization.


CONCLUSION

On the whole, this internship was a useful project; it was a wonderful experience with Zydus

Wellness. I have gained new knowledge, skills and met many new people. I achieved several of

my learning goals, however for some the conditions did not permit. I got insight into

professional practice. I learned the different facets of working within a FMCG company. I

experienced that Marketing, as in many organizations, is an important factor for the progress of

projects.

The internship was also good to find out what my strengths and weaknesses are. This helped me

to define what skills and knowledge I have to improve in the coming time. It would be better

that the knowledge level of the language is sufficient to contribute fully to projects. After my

master I think that I could start my working career.

Summer Internship Report At Zydus Wellness

Marketing

Transcript of Summer Internship Report At Zydus Wellness