PROJECT REPORT ON ITC _Repaired_ 12

					PROJECT REPORT
―MARKET 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




                                     1
ACKNOWLEDGEMENT

A 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.

       .




                                                2
Table of contents

    1. 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
4     Competitive Analysis
       4.1 HUL
       4.2 P&G
       4.3 DABUR
5   Objective of the study
6   Availability and visibility of ITC personal care products
       6.1 Research methodology
       6.2 Areas Surveyed
       6.3 Analysis
7   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
8   Limitations


                                                3
9    Recommendations
10   BCG Matrix ITC
11   Bibliography
12   Appendix




                       4
5
Introduction – FMCG

Fast 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.




                                                6
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.




                                               7
8
Personal Care

The 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),Men’s 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.




                                                 9
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.




                                               10
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 2003-
2007.

Thus we can safely assume that personal care market has immense growth opportunity and it will
grow leaps and bounds in future.




                                               11
Executive Summary

The 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.




                                                 12
13
Company profile

ITC 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.




                                                 14
Vision statement

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




The mission statement

To 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."




                                               15
ITC’s corporate strategies are:

•      Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.

•     Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.

•      Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.

•      Ensure that each of its businesses is world class and internationally competitive.

•       Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities’ residing in ITC’s various businesses.

•      Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.

•      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.




                                                16
HISTORY OF ITC

ITC 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.


                                                17
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 mint-
o 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 Gels

                                               18
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.




                                           19
20
21
ITC -FMCG

Cigarettes
ITC is the market leader in cigarettes in India. It’s 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.




Foods
ITC 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




                                                 22
ITC’s six brand of food include:

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




Lifestyle retailing
ITC’s 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 & Stationary
ITC 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.




                                               23
Safety Matches
ITC’s 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.




Aggarbattis
ITC 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 care
ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC
has already launched an array of brands, each of which offers a unique and superior value
proposition to discerning consumers. Anchored on extensive consumer research and product
development, ITC's personal care portfolio brings world-class products with clearly
differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel 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.




                                                24
ITC Personal Care Products




                   25
MARKETING STRATEGY USED BY ITC


ITC 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 (e-
Choupal) 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 Superia—each 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.




                                                 26
Distribution system at ITC

The 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)




                                                27
SWOT ITC


Strengths
ITC 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.



Weaknesses
To 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.




Opportunities
Core 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.




                                                28
Threats

The 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.




                                                29
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. It’s 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.




                                                 30
SWOT Analysis HUL

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




Opportunities:                              Threats:
  • Large domestic market – over a             • Tax and regulatory structure.
     billion populations .                     • Mimic of brands
  • Untapped rural market.                     • Removal of import restrictions
  • Changing Lifestyles & Rising                  resulting in replacing of domestic
     income levels, i.e. increasing per           brands.
     capita income of consumers.               • Temporary Slowdown in Economy
  • Export potential and tax & duty               can have an impact on FMCG
     benefits for setting exports units.          Industry.




                                            31
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.




                                              32
SWOT Analysis P&G


Strengths                                Weakness

      •     Leading Market Position            •    Quality control Problem
      •     Diversified and innovative         •    Decreased Revenues in
            product Portfolio                       their Northeast Asian
      •     Strong Finances in past                 Market
            years




Opportunities                            Threats

      •     Developing Markets                 •    Competitors
      •     Demographic trends across          •    Rising cost of energy
            the world                               prices
                                               •    New Regulations




                                              33
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




                                                34
SWOT Analysis Dabur

STRENGTHS                                            WEAKNESS

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

OPPORTUNITIES                                        THREATS

  •   Untapped Market(Chyawanprash)                    •   Existing Competition( like Himani,
  •   Market Development                                   baidyanath and Zandu for Dabur
  •   Export opportunities.                                Chyawanprash and Marico,Keo Karpin,
  •   Innovation                                           HLL and Bajaj for Vatika Hair Oil)
  •   Increasing income level of the middle            •   New Entrants
      class                                            •   Threat from substitutes (like Bryllcream
  •   Creating additional consumption pattern              for Vatika hair oil)




                                                35
Objective of study the study

The 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 ITC’s
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 learning’s, conclusions and recommendation.




                                                36
Availability and Visibility of ITC‘s
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 products
                 378




                                                    82




                VISIBLE                         NOT VISIBLE




VISIBILITY OF PERSONAL          NO OF OUTLETS                      %
     CARE PRODUCTS
VISIBLE                   378                                 82

NOT VISIBLE               82                                  18

TOTAL                     460




                                     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 products
                      378




                                                                   82




                   AVAILABLE                                 NOT AVAILABLE




    AVAILABILITY OF                        NO OF OUTLETS                                 %
    PERSONAL CARE
      PRODUCTS
AVAILABLE                           378                                         82%
NOT AVAILABLE                       82                                          18%
TOTAL                               460




                                                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                  No. of shops                 Total                 % Availability

Superia Soap              312                        378                      82.5%
Superia Shampoo           260                        378                      68.7%
Vivel Soap                318                        378                      84.12%
Vivel Shampoo             340                        378                      89.9%

Fiama Di Wills Soap       253                        378                      66.9%


Fiama Di Wills            300                        378                      79.3%
Shampoo

Fiama Di Wills            201                        378                      53.17%
Conditioner

Fiama Di Wills            150                        378                      39.6%
Shower Gels




                                                42
          fiama Di Wills
         shower gel, 150             fiama Di Wills
                                      conditioner,         superia soap, 312
                                         201
                                                                          superia shampoo,
             fiama Di Wills
                                                                                 260
             shampoo, 300


                                                                               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 shampoos
          324




                126   114
                            67            61
                                                                   46
                                               30   26
                                 7                       4




COMPETITOR SHAMPOOS                                          %

SUNSILK                          324                         70
HEAD & SHOULDERS                 126                         27
PANTENE                          114                         25
DOVE SHAMPOO                         67                      15
AYUR SHAMPOO                         07                      01
CLINIC PLUS                          61                      13
CLINIC ALL CLEAR                     30                      06
CHIK SHAMPOO                         26                      06

VATIKA                               04                      0.8

GARNIER                              46                      10




                                 44
ANALYSIS BASED ON COMPETITOR SHAMPOOS

The 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 soaps
    340




            101     96
                            69                             67
                                           35         38          26
                                    6                                     2       2




COMPETITOR SOAPS                                                                %
LUX                                             340                             74
DOVE                                            101                             30
DETTOL                                          96                              21
PEARS                                           69                              15
LIRIL                                           06                              01
DYNA SOAP                                       35                              07
GODREJ NO 1                                     38                              08


                                                45
LIFEBOUY                                       67                               14
BREEZE                                         26                               05
SANTOOR                                        02                               0.4
MEDIMIX                                        02                               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 products
      436




                            24


            YES                   NO




                        Knowledge about ITC personal care products

Yes                              436                           94.7%

No                               24                            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 Sales
      425




                            35


            YES                  NO




                         Aggressive advertising will increase ITC Sales

Yes                              425                               92.39%

No                               35                                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 Period
This 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 Design
A 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          Percent         Valid Percent      Cumulative
                                                                                              Percent
Valid              15 to 25                     35               17.5                 17.5             17.5
                   25 to 35                     54               27.0                 27.0             44.5
                   35 to 45                     62               31.0                 31.0             75.5
                   45 to 55                     29               14.5                 14.5             90.0
                   more than 55                 20               10.0                 10.0            100.0
                   Total                       200              100.0                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 to   200000 to         more than       5.00
                     100000        200000      500000            500000


                                              Frequency               Percent          Valid Percent      Cumulative Percent

Valid                   less than 100000                    2                 1.0                   1.0                  1.0
                        100000 to 200000                   40                20.0                  20.0                 21.0
                        200000 to 500000                  125                62.5                  62.5                 83.5
                        more than 500000                   29                14.5                  14.5                 98.0
                        5.00                                4                 2.0                   2.0                100.0
                        Total                             200               100.0                 100.0



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




                                                          55
                            Do you use fairness cream




              150




              100
  Frequency




              50




               0
                               yes                              no



                            Frequency        Percent        Valid Percent     Cumulative
                                                                               Percent
Valid               Yes              152           76.0                76.0            76.0
                    No                  48         24.0                24.0           100.0
                    Total            200          100.0               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
        79
 80

 70

 60

 50

 40
                                                            31                30
 30

 20                      15            17         16
                                                                      12
 10

  0
      fair & lovely      Emami         Fairever   Ponds     garnier    Ayur   Lakme
                      Naturally Fair



Fair & lovely                                                    79
Emami Naturally Fair                                             15
Fairever                                                         17
Ponds                                                            16
Ayur fairness sunscreen                                          12
Lakme                                                            30
Garnier light                                                    31


As seen from the graph above Fair n lovely has a lion’s 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     1- 6 months     6 months - 1     1-2 years     more than 2
                      month                           year                          years




                                                 Frequency          Percent          Valid Percent      Cumulative
                                                                                                         Percent
Valid                 within one month                    11                5.5                   5.5             5.5
                      1- 6 months                          9                4.5                   4.5            10.0
                      6 months - 1 year                   23               11.5                  11.5            21.5
                      1-2 years                           47               23.5                  23.5            45.0
                      more than 2                        110               55.0                  55.0           100.0
                      years
                      Total                              200              100.0                 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                                                   66

  60
                             53
         51
  50

  40
                                                                        30
  30

  20

  10

   0
       Departmental Store Neighbourhood grocery        cosmetic shop   Big general stores
                                  store




Type of store                                                            %
Departmental store                                                      26%
Neighborhood grocery store                                              27%
Cosmetic shop                                                           33%
Big general store                                                       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 cream
      147




                                                                    99
                            94

                                                75




            Fairness          Moisturiser          Sunscreen     Removal of dark spots




Preferred attributes in a cream                                       %
Fairness                                                             35%
Moisturizer                                                          23%
Sunscreen                                                            18%
Removal of dark spots                                                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        Percent        Valid Percent        Cumulative Percent
Valid               low imp                  2              1.0                  1.0                  1.0
                    neutral                 17              8.5                  8.5                  9.5
                    imp                     53             26.5                 26.5                 36.0
                    very imp               128             64.0                 64.0                100.0
                    Total                  200            100.0                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




               0
                         low imp         neutral         imp        very imp




                                   Frequency       Percent      Valid Percent     Cumulative Percent

Valid               low imp                 19            9.5               9.5                  9.5
                    neutral                 23           11.5              11.5                 21.0
                    imp                     53           26.5              26.5                 47.5
                    very imp               105           52.5              52.5                100.0
                    Total                  200          100.0             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             Percent           Valid Percent         Cumulative Percent

Valid               no imp                   5                    2.5                    2.5                  2.5
                    low imp                 32                   16.0                   16.0                 18.5
                    neutral                 44                   22.0                   22.0                 40.5
                    imp                     95                   47.5                   47.5                 88.0
                    very imp                24                   12.0                   12.0                100.0
                    Total                  200                  100.0                  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




               0
                        no imp    low imp         neutral            imp        very imp




                                 Frequency            Percent              Valid Percent     Cumulative Percent

Valid               no imp                   11                5.5                     5.5                  5.5
                    low imp                  22               11.0                    11.0                 16.5
                    neutral                  49               24.5                    24.5                 41.0
                    imp                     106               53.0                    53.0                 94.0
                    very imp                 12                6.0                     6.0                100.0
                    Total                   200              100.0                   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




               0
                      no imp    low imp      neutral             imp    very imp




                                 Frequency             Percent         Valid Percent       Cumulative Percent

Valid              no imp                   8                  4.0                   4.0                  4.0
                   low imp                 13                  6.5                   6.5                 10.5
                   neutral                 48                 24.0                  24.0                 34.5
                   imp                     79                 39.5                  39.5                 74.0
                   very imp                52                 26.0                  26.0                100.0
                   Total                  200                100.0                 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




               0
                        no imp   low imp         neutral            imp       very imp



                                 Frequency            Percent             Valid Percent      Cumulative Percent

Valid               no imp                  11                    5.5                  5.5                  5.5
                    low imp                 21                   10.5                 10.5                 16.0
                    neutral                 46                   23.0                 23.0                 39.0
                    imp                     99                   49.5                 49.5                 88.5
                    very imp                23                   11.5                 11.5                100.0
                    Total                  200                  100.0                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




               0
                        low imp      neutral       imp           very imp




                                  Frequency      Percent         Valid Percent      Cumulative Percent

Valid               low imp                  4             2.0                2.0                  2.0
                    neutral                  2             1.0                1.0                  3.0
                    imp                     84            42.0               42.0                 45.0
                    very imp               110            55.0               55.0                100.0
                    Total                  200           100.0              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        neutral         agree       strongly agree
                   disagree



                                            Frequency           Percent          Valid Percent        Cumulative
                                                                                                       Percent
Valid                strongly disagree               26               13.0                     13.0             13.0
                     disagree                        57               28.5                     28.5             41.5
                     neutral                         44               22.0                     22.0             63.5
                     agree                           71               35.5                     35.5             99.0
                     strongly agree                   2                1.0                      1.0           100.0
                     Total                          200              100.0                    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




                        0
                                  strongly   disagree              neutral           agree        strongly agree
                                  disagree



                                             Frequency                Percent                Valid Percent         Cumulative
                                                                                                                    Percent
Valid                    strongly disagree                6                    3.0                        3.0                3.0
                         disagree                        51                   25.5                       25.5               28.5
                         neutral                         18                    9.0                        9.0               37.5
                         agree                          124                   62.0                       62.0               99.5
                         strongly agree                   1                     .5                         .5              100.0
                         Total                          200                  100.0                      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          neutral           agree        22.00
                                   disagree



                                              Frequency            Percent            Valid Percent      Cumulative
                                                                                                          Percent
Valid                    strongly disagree               7                    3.5                 3.5              3.5
                         disagree                       93                   46.5                46.5             50.0
                         neutral                        30                   15.0                15.0             65.0
                         agree                          68                   34.0                34.0             99.0
                         22.00                           2                    1.0                 1.0            100.0
                         Total                         200                  100.0               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          Percent         Valid Percent     Cumulative
                                                                                                         Percent
Valid                    strongly disagree                  65              32.5                 32.5            32.5
                         disagree                           88              44.0                 44.0            76.5
                         neutral                            15                  7.5               7.5            84.0
                         agree                              32              16.0                 16.0           100.0
                         Total                             200             100.0                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




                        0
                                  strongly    disagree              neutral           agree    strongly agree
                                  disagree



                                             Frequency                Percent             Valid Percent         Cumulative
                                                                                                                 Percent
Valid                    strongly disagree                12                    6.0                   6.0                 6.0
                         disagree                         44                   22.0                  22.0                28.0
                         neutral                          13                    6.5                   6.5                34.5
                         agree                           109                   54.5                  54.5                89.0
                         strongly agree                   22                   11.0                  11.0               100.0
                         Total                           200                  100.0                 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




                        0
                                     strongly    disagree        neutral         agree   strongly agree
                                     disagree



                                                   Frequency               Percent       Valid Percent       Cumulative Percent

Valid                        strongly disagree                2                   1.0                  1.0                  1.0
                             disagree                        23                  11.5                 11.5                 12.5
                             neutral                         26                  13.0                 13.0                 25.5
                             agree                          146                  73.0                 73.0                 98.5
                             strongly agree                   3                   1.5                  1.5                100.0
                             Total                          200                 100.0                100.0




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




                                                            73
                     Frequency       Percent        Valid Percent    Cumulative
                                                                      Percent
Valid    Yes                 115          57.5                57.5            57.5
         No                   85          42.5                42.5          100.0
         Total               200         100.0               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        Percent        Valid Percent      Cumulative Percent

Valid               yes                  127            63.5                 63.5                 63.5
                    no                       73         36.5                 36.5                100.0
                    Total                200           100.0                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 doesn’t.




                                                            75
                              Interest in buying new product


               100




               80
   Frequency




               60




               40




               20




                0
                      not at all   not interested    neutral        interested      vey interested
                     interested



                                            Frequency          Percent           Valid Percent       Cumulative
                                                                                                      Percent
Valid                not at all                      17              8.5                     8.5                  8.5
                     interested
                     not interested                  25             12.5                   12.5              21.0
                     neutral                         33             16.5                   16.5              37.5
                     interested                      82             41.0                   41.0              78.5
                     very interested                 43             21.5                   21.5             100.0
                     Total                          200            100.0                  100.0




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




                                                           76
Chi Square Test
Variables: Demographics i.e. Age, Family Income and Usage of Fairness Creams.


Family income per annum * Do you use fairness cream
                                                               do you use fairness       Total
                                                                     cream
                                                                yes           no

family income per    less than 100000   Count                          2             0            2
annum                                   % within do you            1.3%         .0%            1.0%
                                        use fairness
                                        cream
                     100000 to          Count                         34             6           40
                     200000             % within do you            22.4%      12.5%        20.0%
                                        use fairness
                                        cream
                     200000 to          Count                        102          23            125
                     500000             % within do you            67.1%      47.9%        62.5%
                                        use fairness
                                        cream
                     more than          Count                         14          15             29
                     500000             % within do you            9.2%       31.3%        14.5%
                                        use fairness
                                        cream
                     5.00               Count                          0             4            4
                                        % within do you             .0%        8.3%            2.0%
                                        use fairness
                                        cream
Total                                   Count                        152          48            200
                                        % within do you           100.0%     100.0%       100.0%
                                        use fairness
                                        cream



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

    a.   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 to   200000 to   more than    5.00
                 100000      200000      500000      500000
                            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 cream
                                                         do you use fairness       Total
                                                               cream
                                                          yes           no

age                15 to 25            Count                  18            17             35
                                       % within do         11.8%        35.4%       17.5%
                                       you use
                                       fairness
                                       cream
                   25 to 35            Count                  44            10             54
                                       % within do         28.9%        20.8%       27.0%
                                       you use
                                       fairness
                                       cream
                   35 to 45            Count                  51            11             62
                                       % within do         33.6%        22.9%       31.0%
                                       you use
                                       fairness
                                       cream
                   45 to 55            Count                  27               2           29
                                       % within do         17.8%         4.2%       14.5%
                                       you use
                                       fairness
                                       cream
                   more than 55        Count                  12               8           20
                                       % within do          7.9%        16.7%       10.0%
                                       you use
                                       fairness
                                       cream
Total                                  Count                 152            48         200
                                       % within do       100.0%         100.0%     100.0%
                                       you use
                                       fairness
                                       cream



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

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.




                                                           80
                    Correlation
                    Correlation 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       Imp factors while    Imp factors while   Imp factors while   imp factors while   imp fac
`                                                       buying new          choosing cream       choosing cream      choosing cream      choosing cream      choosin
                                                          product
Interest in buying new     Pearson Correlation                      1                  -.098             -.144(*)            .183(**)            .232(**)
product                    Sig. (2-tailed)                             .                 .166               .042                .010                .001
                           N                                      200                    200                 200                 200                 200
imp factors while          Pearson Correlation                  -.098                      1             .663(**)            -.140(*)           -.348(**)
choosing cream             Sig. (2-tailed)                       .166                       .               .000                .047                .000
Quality
                           N                                      200                    200                 200                 200                 200
imp factors while          Pearson Correlation               -.144(*)               .663(**)                   1            -.213(**)           -.381(**)
choosing cream             Sig. (2-tailed)                       .042                    .000                   .               .002                .000
Brand name
                           N                                      200                    200                 200                 200                 200

imp factors while          Pearson Correlation               .183(**)               -.140(*)            -.213(**)                  1             .697(**)
choosing cream             Sig. (2-tailed)                       .010                    .047               .002                    .               .000
Discounts
                           N                                      200                    200                 200                 200                 200
imp factors while          Pearson Correlation               .232(**)              -.348(**)            -.381(**)            .697(**)                  1
choosing cream             Sig. (2-tailed)                       .001                    .000               .000                .000                    .
Schemes
                           N                                      200                    200                 200                 200                 200
imp factors while          Pearson Correlation              -.214(**)               -.171(*)            -.274(**)            .194(**)            .257(**)
choosing cream             Sig. (2-tailed)                       .002                    .016               .000                .006                .000
Shopping
Convenience                N                                      200                    200                 200                 200                 200
imp factors while          Pearson Correlation               .365(**)              -.376(**)            -.374(**)             .174(*)            .430(**)
choosing cream             Sig. (2-tailed)                       .000                    .000               .000                .014                .000
Price
                           N                                      200                    200                 200                 200                 200
imp factors while          Pearson Correlation              -.257(**)                    .052               .041                -.012               -.025
choosing cream             Sig. (2-tailed)                       .000                    .464               .568                .863                .724
Performance
                           N                                     200                     200                 200                 200                 200
                    * Correlation is significant at the 0.05 level (2-tailed).




                                                                                    81
Analysis
As 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 Test

Variables: Duration of use of the product and Unavailability affects purchase


                  Duration of use of product * does unavailability affects purchase
                                                            does unavailability        Total
                                                             affects purchase
                                                             yes            no

duration of use      within one          Count                           10       1            11
of product           month               % within does             7.9%        1.4%       5.5%
                                         unavailability
                                         affects purchase
                     1- 6 months         Count                           9        0            9
                                         % within does             7.1%         .0%       4.5%
                                         unavailability
                                         affects purchase
                     6 months - 1        Count                           13       10           23
                     year                % within does            10.2%       13.7%      11.5%
                                         unavailability
                                         affects purchase
                     1-2 years           Count                           31       16           47
                                         % within does            24.4%       21.9%      23.5%
                                         unavailability
                                         affects purchase
                     more than 2         Count                           64       46        110
                     years               % within does            50.4%       63.0%      55.0%
                                         unavailability
                                         affects purchase
Total                                    Count                          127       73        200
                                         % within does           100.0%       100.0%     100.0%
                                         unavailability
                                         affects purchase


Chi Square Tests
                            Chi-Square Tests

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

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




                                                            83
Analysis

As 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 market
      460




                          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 & Analysis

On 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 aged-
12 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:                                                     Weakness :
    High Awareness                                              Presence of several competitors with same
    F & L USP – Fairness in 6 weeks                               product line
    World’s largest fairness cream brand with                   Many untapped market around the world
       presence in 40 countries and value of Rs 6                Entrance of foreign companies in India with
       billion.                                                    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
   Fair & Lovely is getting advantages by launching       publicity, with women’s groups calling the ad
     Fair& Lovely foundation that works for Women          regressive.
     Empowerment achievement and Transformation.         Threat from future new entrant to compete
   People prefer ―Fair & Lovely‖ when comparing           with them in such a cut-throat market
     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.



                                                         88
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, Unilever’s 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.




                                               89
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
    Company has advanced technology               alternatives by the competition.
       and well skilled professionals.          Advertisement flaws-
    The New Sunsilk Shampoo is a high             ○ Devaluation of product
       quality product in terms of hair            ○ Product’s quality loses its values
       protection.                                 ○ Poor promotion of free samples
    The target market is educated,                ○ No unique identification of
       professionals and belongs to premium    product
       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 anti-
       dandruff shampoos are another area
       where HUL can earn huge profits.
    Rural areas are a large prospective
       market where they can introduce
       Sunsilk.




                                             90
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 time—such as Leela Chitnis, Madhubala, Hema Malini and
Kareena Kapoor—to endorse the product. Lux’s secret of longevity has been its consistent
evolution—be 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 it’s good enough for a film star, then it’s good for you too to Play with beauty—have
conveyed the same message over the years.




                                                91
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 don’t 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.




                                             92
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 don’t 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.


                                             93
   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.




                                          94
BCG Matrix ITC




                 95
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




                                  96
   Appendix

   Questionnaire



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




                                 97
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




                                             98
    8. Rate the importance of the following factors while choosing a cosmetic cream,

Particulars                 No            Low           Neutral      Medium            High
                         importance    importance                   importance      importance
Quality
Recognized brand name
Discounts
Schemes
Shopping convenience
Price
Performance




    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               Strongly       Disagree       Neutral        Agree         Strongly
                          Disagree                                                    Agree
Word of mouth
Television Ad
Newspaper
Internet
Family/Friends
Package Design




                                             99
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




                                       100

				
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