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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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