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SARATH KUMAAR K S
(Register No.MB19B19)
Under the Guidance and Supervision of
Prof. BALATHANDAYUTHAPANI M
This is mainly to create awareness about the product and knowledge about the product
and its easiness. I was given with certain route map to be followed. It contains number of
shops to be covered. My task is to approach all the grocery and petty shops and provide them
with the demo for the product. By showing demo I must convince the customer and take
order for the product. I must give the unique feature of the product to justify from other
products. I also get details of the shop for further contact. Once I get the order from the
customer I forward it to the distributor agency and ensure delivery of the product to customer.
I visit different areas every day.
The company is producing detergent soap and detergent powder of various sizes. The
detergent powder was especially for washing machines as it has low lather formula. Richwin
bars has made a great impact on rural customers. Richwin targets lower income consumers
who suffer hand irritation as the result of using less-expensive and lower quality detergent
powders. Categories of Richwin are – Richwin washing powder- lemon and floral, Richwin
detergent cake – lemon, rose and floral. Detergent cakes are available at the pack of 175 gm,
200 gm and 225 gm single use sachet. Richwin washing powder are available at the pack of
200 gm, 500 gm and 1 kg.
I visited nearly 300 outlets. In which there is only 41 productive outlets. It is really a
difficult to convince the customer as the product is not in a correct form. I re-visit all the
shops for future orders and also for first orders.
I learned about the sales job. Also how to approach to customer? How to convince the
customer? How to have good customer relationship? How to manage peoples? How to handle
stressed situation? Time management, convincing, customer relationship are some of the key
learning. For success of product we should create more awareness of product and should
change the channel from B2B to B2C. It should be made available easy for the consumers. Or
else form of the product should be changed. More attractive offers should be given if to
continue with the same product form.
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ACKNOWLEDGEMENT
My very special gratitude and heartfelt thanks to our beloved CHAIRMAN AND
VICE CHAIRMAN for the blessings and best wishes to carry out my project work.
I would like to express my deep sense of gratitude to our CEO Prof. S. MOHAN for
permitting me to undertake this project work and providing all the necessary facilities and
support to complete this work.
I take this opportunity to thank all non-teaching and computer centre staff who helped
me directly/ indirectly to prepare my project report. I also express my gratitude to my loving
parents and beloved friends who are a constant source of motivation to me and for their
support and encouragement throughout this project work.
I am indebted to the powerful Almighty for all the blessings showered on me and for
being with me throughout this project.
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TABLE OF CONTENTS
CHAPTER SI PAGE
CONTENTS
NO. NO. NO
1 INTRODUCTION 7
2.2 PRODUCTS 12
2.3 APPLICATIONS 12
3 MARKET ANALYSIS 16
3.1.1 COMPETITORS 17
4
3 3.3.2 GEOGRAPHICAL SEGMENTATION 19
3.4 TARGETING 19
3.5 POSITIONING 20
4 INTERNSHIP ROLES 21
4
4.1 SALES PROGRESS 22
5 KEY LEARNING 23
6 6 CONCLUSION 26
7 REPORT 28
7
7.1 WEEKLY REPORT 29
5
TABLE OF CONTENTS
6
CHAPTER 1: INTRODUCTION
7
1.1 INDIAN FMCG INDUSTRY
Fast Moving Consumer Goods (FMCG) sector is the fourth largest and one of the
rapidly growing sectors of Indian economy. The sector includes 3 major segments –
household and personal care accounting for 50 percent, healthcare accounting for 31 percent
and finally, food and beverages for 19 percent of the sector’s contribution. The sector is
forecasted to achieve a phenomenal growth from US $ 49 billion in 2016 to US $ 103.7
billion in 2020. The CAGR of the FMCG market in India is expected to be 27.86 percent by
2020. The urban segment account for about 55 percent of the revenue generated and is
expected to experience a steady revenue growth at 8 percent in FY19. The rural segment is
also catching up gradually. Revenue generated in rural segment is estimated to increase to
about 15 to 16 percent in FY19 from an estimated 10 percent in FY18.
120
100
80
60
103.7
83.3
40
68.4
57.4
49
43.1
38.8
35.7
20
33.3
31.6
0
2011 2012 2013 2014 2015 2016 2017 F 2018 F 2019 F 2020 F
The fact that agriculture, MSMEs, education, healthcare, infrastructure and employment as
per the Union Budget 2018 – 19 will be directly impacting the FMCG sector in India. These
initiatives are believed to increase the disposable income levels which will thereby turn
1
Source: Indian FMCG Industry Analysis at https://www.ibef.org/download/FMCG-June-2018.pdf
8
beneficial to the FMCG market. With strategies like customisation, expansion, new product
launches, promotions and offers the FMCG industry is experiencing a magnificent growth.
45% Urban
55% Rural
The detergent market in India is divided into three segments – premium, mid-range,
and popular. The premium segment comprises Ariel and Surf. The mid-range segment
comprises Tide, Henko, and Rin. And the popular segment comprises Mr White, Wheel,
Nirma and Ghari. The market share of the detergents in the premium segment is 15%, and
that of the mid-range and popular are 40% and 45% respectively.
These detergent brands are considered organized players in the industry and comprise
60% of the total market. The remaining 40% of the market is saturated with regional and
small unorganized players. Reports show that India’s per capital consumption of detergent
stands at 2.7kg – the lowest in the world, whereas places like Philippines and Malaysia has
per capita consumption at 3.7 kg, and in USA it is around 10kg. Before 1985, Hindustan
Unilever’s Surf held the number one position in the detergent market in India. However,
when Nirma Chemicals launched a detergent brand called Nirma, catering to the middle and
lower middle class customers. Surf was evicted from its number one position. Soon, HUL
realized that there were fragments of the market which were untouched by major detergent
players in India and it came up with two low-priced detergents called Wheel and Rin to cater
to the lower middle class group.
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According to India Detergent Market Outlook, 2021, the overall market for detergent
is growing with a CAGR of 13.06% from the last five years. Detergents are available in three
forms, namely powder detergent, bar detergent and liquid detergent. Powder detergents are
widely accepted by Indian consumers and dominate the industry. Even though detergent bars
are still used in rural areas, they are fast disappearing from the market because of
ineffectiveness. In the past, consumers in India used to wash clothes by hand but today, with
the advancement of technology, more and more people are shifting to washing machines.
Hence, detergent companies have tweaked their products to enable the washing of clothes in
all types of washing machines - top load, front loading, fully automatic, and semi-automatic
washing machines. In addition, detergent companies have started manufacturing powder
detergents in packs of 20 grams, 200 grams, 500 grams, 1 kg, and 2 kg to the needs of those
who prefer to buy in small packets and in bulk.
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CHAPTER 2 : ORGANIZATION PROFILE AND PORTFOLIO
11
2.1 COMPANY OVERVIEW
The company is producing detergent soap and detergent powder of various sizes. The
detergent powder was especially for washing machines as it has low lather formula. Richwin
bars has made a great impact on rural customers.
Starting as a one-man outfit from a 200 sq ft room in 2010, Richwin became a very
successful company within 8 years. Richwin become a great competitor for all the local
players in southern India and soon it would become a good competitor for organized players
in that industry. They also going to launch liquid detergents and toilet soaps. They are very
conscious in purchasing of raw materials in order to maintain the quality standard. To
maintain the quality the appointed a special team to maintain their standards.
2.2 PRODUCTS
Detergent cakes
Washing powders
2.3 APPLICATIONS
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2.4 ROLE OF WOMEN IN PURCHASE DECISION
Consumer behaviour in India has been changing drastically everyday and gender has
changed into a major factor influencing purchase intentions. Almost 80 percent of the
household purchase decisions are controlled by women, most particularly in the area of fast
moving consumer goods (Persona design, 2013). Women, both working and non-working,
have developed a significant role in the family consumptions and form a prominent segment
in marketing (Kapil Kathuria, Poonam Rana 2016). It becomes very essential for marketers to
concentrate more on women consumers and analyse their purchase intentions and brand
perceptions regarding FMCG products
Domestic and industrial cleaning products market is growing day by day with increase
in per capita income, product innovations by manufacturers, awareness among consumers
and government mission on “Swatch Bharat”. The trend in the market is to replace natural
vegetable oil based cleaning material with synthetic material for better cleaning properties
and reduced cost. Cleaning products market is growing at the rate of 5% per annum in India.
Sales Director
ASM
Distributor
Retailer
End customer
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2.7 SWOT ANALYSIS
Strength
Good quality
Lower price
Extensive distribution cost
Low operational cost
Weakness
Opportunity
Expanding market
Focusing on R&D
High potential of rural market
Introduction of better variants by technology development and innovations
Threats
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2.8 MARKETING STRATEGY
Product
In the case of Richwin detergents, various varieties such as a free and a clear version
were created to meet the more specific needs of certain allergic sensitive members of its
target market.
Categories of Richwin are – Richwin washing powder- lemon and floral, Richwin
detergent cake – lemon, rose and floral.
Detergent cakes are available at the pack of 175 gm, 200 gm and 225 gm single use
sachet. Richwin washing powder are available at the pack of 200 gm, 500 gm and 1 kg.
Place
Knowledge of a market helps a company to determine the best place for a product to
be sold. This is more than simply choosing right store for distribution, it is also the study
of where the products should be placed in the store itself.
The product is available at convenience stores and the sachets and bars are even
available at petty shops for rural people.
Promotion
When Richwin was introduced in the year 2010, it started distributing free samples to
the people. It also started discounts on the products which ultimately resulted in more
people truing the product.
They also providing free delivery of their products to the dealers in Erode district
where for the other districts they are delivering for the least price on transportation.
Price
Richwin follows penetration strategy in their pricing. Their products are cheaper than
other competitors. They are offering a quality product at a reasonable price.
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CHAPTER 3 : MARKET ANALYSIS
16
3.1 MARKET POTENTIAL
Nirma
Rin
Surf excel
Ghari detergent
Tide
Active wheel
Price is affordable
Removes strains
Fragrance is good
Easily available in shops
Good for white cloth
The most important aspect of the fast moving consumable goods is its distribution
channel strength. This is because the markets of FMCG products are competitive and so,
there are lot pf substitute present. So, in case a potential buyer wants to buy detergent from
its nearby store and not go far to buy it. So, the understanding is to disperse the products
arm’s length and make it available anywhere.
In case of Richwin, the distribution network of some well organised players comes
into picture. Richwin was launched in India in 2010 and it had an advantage, as many players
were already present in the country before that. So Richwin was actually passed on to the
already present distributors, resulting in saving preposition for the product to reach its
customers.
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3.2.2 Positioning strategy
Richwin has found its formula, the same global positioning as a detergent that cleans
perfectly. So using whiteness as a base Richwin has now highlighting the whitening powder
against its competitors.
It trying to capture super whiteness segment while many companies are fighting for
colour segment and safedi segment.
Points of Parity
Quality
Strong distribution channel
Points of Difference
Affordability
No separate detergent for washing machines
Richwin has many detergent categories available on the market, each with different
prices which appeal to different target markets.
For example :
Richwin targets lower income consumers who suffer hand irritation as the result of
using less-expensive and lower quality detergent powders.
For rural consumers the key barrier to upgrading their detergent is a limited laundry
budget. Consumers in this segment are looking for an affordable product that provides
superior whiteness, mildness on hands and a good fragrance, which other existing lower end
products currently don’t offer.
Technology used
While other Indian “value” detergent brands contain calcium carbonate and other
insoluble cheap filters that can be abrasive on fabric and hands during the handwash process.
Richwin bars uses water soluble sodium sulphate that helps in providing the additional
benefit of keeping your hands soft. Richwin delivers a strong product cleaning and whitening
performance via a dual surfactant system and brightener technology.
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3.3 MARKET SEGMENTATION
Richwin targets women aged between 18 to 54 years old. Over the years, Richwin
constantly directs its marketing strategies to suit women of these ages. This is because when
it comes to laundry, women belonging to this category hold the power to make decisions.
Also, the housewives are considered to be an important part of the market segment as is
generally seen that the housewives are the one who do the monthly shopping of the products.
Income
Low income people are the main segments of customers who prefer this detergent.
Region
They are operating in the states of Tamil Nadu, Kerala, Karnataka, Andhra Pradesh,
Telangana and Maharashtra.
Rural
Richwin observed that being premium was not working efficiently as the consumers
were moving to rival products due to the price factors. It therefore introduced sachets and
detergent bars, these were priced much lower than other organised players. It basically aimed
to tap the rural and semi urban markets in the country.
3.4 TARGETING
Mass marketing
Richwin has more loyal customers with its products ranging low price segments. It
spreads huge market in southern India.
Concentrated marketing
It segregated its market in the later years for low cost and also they are trying to enter
into premium category. It also going to introduce liquid detergents in premium segment.
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3.5 POSITIONING
Initial positioning
Richwin is known to produce quality detergent products with cheaper price. In mid-
2010 Richwin was launched and it was mainly used by middle and lower segment and it was
priced at affordable. It has a superior technology and created fragrance oriented detergent
powder. Richwin USP has been its quality. It plays a lot of attention to its quality which
reached to its customer. Soon Richwin is going to launch a premium product in the market, so
they repositioned themselves.
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CHAPTER 4: INTERNSHIP ROLES
21
4. INTERNSHIP ROLES
In Richwin detergents I have been treated as an entry level sales executive. I have
been assigned to do sales in different areas in region of Erode. I had been directed by the
Sales Officer Mr. Shiva Kumar. I reported him in weekly basis. I did my internship for
duration of 3 months.
I have been working under Richwin detergents as a sales executive for detergent
products (washing powder and detergent cake). I was allotted to cover the majority of areas in
Erode where plenty of shops are available.
My task is to approach the shops in different areas and provide them with demo of the
product and making them convince to take order. I was given with list of shops to be visited.
If I get the orders I used to forward it to the Sales Officer Mr. Shiva Kumar for delivery.
At first it was very difficult and challenging to convince people. But later on I learned
how to approach and convince people. I used to convince people by explaining the per pack
costing and quality difference. It was a challenging task to attain the first month target. But
somehow managed to attain it.
In second month the same process continued. I used to visit different areas every day.
I also follow up the customer for future relationship and orders. I have also worked under
purchase officer. I have got quotations from various companies before placing an order by the
purchase officer.
In third month I have also done some quality checking work through which I had
learned a lot. Making sales and checking the quality make me to learn more about the field. I
also take orders from various shops.
But on overall it is good opportunity for me to know about the market and sales job. It
is really a challenging job. It helped me to learn about convincing customers.
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CHAPTER 5: KEYLEARNING
23
5.1 CONVINCING CUSTOMER
The key factor that I have learnt during is convincing a customer, that essentially
means,
1. How to show demo of a product to customer?
2. What makes them satisfied?
3. Learning their needs and filling the gaps with our products.
4. Another major thing required is patient in convincing.
Even though the customer is not interested in the product, it is my responsibility
to make them at least aware about the product.
Some use premium detergent products, Convincing these type of customers are
very much difficult.
When it comes to the sales job, Customers are the most important players. So it
is much required to understand about their behaviour.
They vary based on their mind-set, which can be categorized as professionals,
youngsters etc.
Each has different perception on things.
The problem I faced in this is the customers do not understand the product usage.
They keep on stick to their views on this product.
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As the product price is little high the purchasing power of certain customers also
plays a role.
I faced many rejection from customers, it makes stressed. But never reflected it
in anywhere.
Some customers could not understand even for a long time but they have the
power to purchase.
At once I had to visit shops and at same time I have to finish my report for
company also. That time it makes stressed, but I planned and executed both in a
good way.
Corporate is a big hierarchy with a mix of rules and regulations and tasks are
assigned based on the hierarchy level.
I have understood the flow in the corporate structure and how it could function
with all its departments.
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CHAPTER 6: CONCLUSION
26
6. CONCLUSION
27
\
CHAPTER 7: APPENDIX
28
WEEKLY REPORT
Date of joining.
Met Mr.Shivakumar (sale manager), brief about the
04/05/18
company and daily work assignments.
FRIDAY
Met Mr.Sudharsan (MD), talked few words about the
industry.
Reported to Mr.Shivakumar.
05/05/18 Went along with him and visited about 10 shops around
SATURDAY RN Pudur area.
07/05/18 to 12/05/18
14/05/18 to 19/05/18
29
managed the work going on workshop.
21/05/18 to 26/05/18
28/05/18 to 02/06/18
30
Got quotation from various steel companies.
30/05/18
WEDNESDAY Reported to managing Director.
04/06/18 to 09/06/18
11/06/18 to 16/06/18
31
18/06/18 to 23/06/18
25/06/18 to 30/06/18
02/07/18 to 07/07/18
32
09/07/18 to 14/07/18
16/07/18 to 21/07/18
23/07/18 to 25/07/18
33
34
35
36