A PROJECT ON

Brand comparison of ITCs PCP range with current market leaders and suggesting promotional strategies for brand positioning

Presented By : Ghanshyam Gupta ghanshyamgupta7@gmail.com

IILM GURGAON

1. RESEARCH DESIGN 1.1 Title of the Study:

Brand comparison of ITCs PCP range with current market leaders and suggesting promotional strategies for brand positioning

1.2 Description of the project in brief:

The study allocates the brand comparison of ITCs Fiama di Wills , Vivel , Superia range with the top Personal Care Products (PCP) Brands like P&G , HUL , Loreal , and others in the Jaipur market, and what strategy should ITC adopt to get a competitive edge over the other existing brands in Jaipur market. The study will show the existing awareness level of ITCs PCP and the assessment of market share in Jaipur city. The research includes the survey of retail outlets as well as customers in Jaipur city. A sample of 150 retail outlets and 50 customers are taken from the population (Jaipur city). The target segment of retailers survey are various departmental stores, women cosmetic store , chemist , general stores and grocery stores in various areas fixed by ITC and the target segment of customers were the middle class household living in these area. For this study primary data will be collected through schedules and stratified random sampling technique is used for the purpose of collection of data. Description of strata (location) and sample: 1. 2. 3. 4. 5. Vaishali Nagar And Vidhyadhar Nagar, Raja Park , Jawahar Nagar and Adarsh Nagar, Sodala , Shyam Nagar and C- Scheme, Mansarovar, Tonk Road , Janta Store, Bapu Bazaar and other wall city area.

Description of Sub-strata: 1. 2. 3. 4. Grocery Stores, Key A/cs, Women Cosmetic Stores, Chemist/General Stores.

IILM GURGAON

Description of Products that are taken into Consideration for the study:
1. Fiama Di Wills range of products.

2. Vivel. 3. Superia.

1.3 Objective of the Study:

1. Brand comparison of PCP ranges with current market leaders P&G , HUL , Garnier and Others. 2. Assessment of market share of Fiama Di Wills, Vivel and Superia. 3. Suggesting model for proper distribution network. 4. And finally suggesting Promotional Strategies and local level activation for Fiama di Wills, Vivel, Superia.

1.4 Perceived value to the organization:

1. Research will help the company to know how to have a competitive edge over its competitors. 2. Market share of the companys brands will be known. 3. What strategies should the company adopt for promoting its products in comparison with its competitors. 4. The availability and awareness of its products in the market. 5. The demand for the PCP range of products offered by the company.

1.5 Methodology:
The first step is to collect data. Data is divided into two: Primary Data: Primary data are those data that are collected for the first time and they are original in character. Since the study undertaken involves an exhaustive study of the brand comparison of ITCs PCP range with current market leaders and suggesting promotional strategies for brand positioning, we need to collect primary data in this context. The methods for the collection of primary data in this study include direct interviews with the retailers and the customers and filling up of questionnaire with the retailers and the customers. IILM GURGAON

Secondary Data: Secondary data are those data which are already collected by someone else for a purpose and are available for the present study. The various sources of the secondary data used for this study are: 1. The company website , 2. The internet , 3. Previous reports , 4. Marketing Journals and articles. Once the data has been collected the next step is to analyze the collected data with the help of quantitative statistical methods. Likert scale will also be used in the course of the project. The analysis is done by using graphical representation.

1.6 Limitations of the study:

The various limitations of the study are: Assessment of data: The study has been undertaken by students possessing limited skills. It is not an easy task to comprehend the vast amount of data and use relevant information for the purpose of studying the given problem. High levels of understanding of the various aspects of marketing are called for which is limited. Time constraints: The project had to be undertaken only for three months which may not be sufficient in order to get accurate results. Limited scope: The area which is taken into consideration for the study is restricted only to Jaipur city. Cost constraint: The cost involved in doing the project is high.

IILM GURGAON

1. INTRODUCTION

We regularly talk about things like butter, potato chips, toothpastes, razors, household care products, packaged food and beverages, etc. But do we know under which category these things come? They are called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover and are relatively cheaper. 2.1 FMCG in INDIAIndia has a population of over 1 billion and 4 climatic zones . Several religious and personal beliefs, 15 official languages, different social customs and food habits characterize Indian consumer class. Besides , India is also different in culture if compared with other Asian countries. Therefore, India has high distinctiveness in demand and the companies in India can get lot of market opportunities for various classes of consumers. Consumer goods marketers experience that dealing with India is like dealing with many small markets at the same time. Indian consumer goods market is expected to reach $400 billion by 2010. India has the youngest population amongst the major countries. There are a lot of young people in India in different income categories. Consumer goods marketers are often faced with a dilemma regarding the choice of appropriate market segment. In India they do not have to face this dilemma largely because rapid urbanization, increase in demand, presence of large number of young population, any number of opportunities are available . The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity. As the restrictions on foreign investments were relaxed in 1991, Multi-National Companies have been entering India since then.

IILM GURGAON

2.2 FMCG in 2008 True to its name, the fast moving consumer goods industry remained on the fast track in 2008, as the rising input costs, high inflation rates or the economic downturn failed to hinder the pace of activity in the sector. As per a study done by industry chamber Ficci, FMCG industry is projected to grow by 16 per cent to Rs 95,150 crore during 2008-09, up from Rs 85,470 crore last year, keeping in mind the rising raw material prices, increase in costs of various inputs like petro-based raw and packaging materials, and above all, that of key ingredient -- palm oil. The year also saw FMCG growth in rural market overtaking that of the urban market. The estimated number of households using FMCG products in rural India have grown from 13.6 crore in 2004 to 14.3 crore in 2007. FMCG products continued to show good momentum aided by increasing demand in rural markets worth Rs 27,369 crore. Ficci had said about 35 per cent of the offtake for FMCG products come from rural areas. A study by market research firm AC Nielsen for the April-September 2008 period showed that across a wide range of sectors, including skin creams and lotions, hair oils, toothpaste and candies, volume and value growth in rural markets have been significantly higher than urban markets. Skin creams and lotions grew 26 per cent by volumes in rural markets compared with 12 per cent in urban markets for the April-September period. In value terms also, rural markets grew faster than their urban counterparts in skin creams and lotions, according to AC Nielsen reports. Ultimately, FMCG majors chose to bite the bullet. For instance, soap prices were hiked by various companies, including Wipro, Godrej, Reckitt Benckiser and HUL between Re 1 and Rs 4 for products to the range of one kilogram. Similarly, prices of hair oil brands and detergents were also hiked by 4-5 per cent. The year also saw FMCG growth in rural market overtaking that of the urban market. While the sector maintained a 17-18 per cent growth in the urban market, this year, according to industry estimates, rural market showed over 20 per cent growth. Ficci had said about 35 per cent of the offtake for FMCG products come from rural areas. A study by market research firm AC Nielsen for the April-September 2008 period showed that across a wide range of sectors, including skin creams and lotions, hair oils, toothpaste and candies, volume and value growth in rural markets have been significantly higher than urban markets. IILM GURGAON

2.3 Analysis of FMCG Sector Strengths: 1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities: 1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending Threats: 1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand 3.Tax and regulatory structure

IILM GURGAON

2.4 PERSONAL CARE PRODUCTS Personal care products are generally used for personal health and hygiene. It includes products like body talc, body scrub, tooth paste, tooth brush, tongue cleaner, tooth powder, bathing salts, bathing gel, essential oils, moisturizer, skin creams, face wash, hair oil, hair shampoo, hair conditioner, soap, nail and cuticle care products. The personal care product market was a success on all counts in 2005-2006 with good performances from each of the Big 5 markets. In recent years, consumer health awareness has slowly been increasing and this has led people trying to take better care of them. The major demand is for the products that are of basic need for the consumers like soap, shampoo, hair oil etc. The personal care products industry consists of four major sub-sectors manufacturing a range of products Face Care Products - Face is the reflection of an individuals physical appearance. Generally, the beauty of a person is described by the look of ones face. Thus, to enhance the beauty of the face people use face care products whose market is growing at double digits. The industry manufactures products like astringent, face cream, face scrub, face toner, moisturizer, cleanser, etc. Some of these products are used for clarification and purification of the facial skin from dust and harmful rays of the sun while others are used for toning. Hand and Foot Care Products- As the name suggest these products are used to enhance the beauty of hands and feet. The hand and foot care product market segment, grew 5.9% in 2005 to a total of 338.2 million dollars, and included many successful product introductions. These included herbal and organic products, as well as products for youthful skin. Men are also starting to take better care of themselves, resulting in growth in the mens foot care products market segment. Hand and foot care products can be broadly categorized into cuticle care products, foot scrub, hand and foot cream, nail care products etc. Hair Care Products - Hair care was the largest market segment, both in 2004 and in 2005 with sales reaching 350 million dollars. The price war has had its impact on the shampoo and styling categories. Sales in hair coloring products has stabilized while hair conditioners and hair repair products, showed significant growth. Consumers are willing to buy special, more costly, products because these products are used for many purposes like hair cleansing, hair conditioning and hair coloring. Some important hair care products are mentioned below: Hair Shampoo Hair Styling Gel Hair Colors Cosmetics- The global cosmetics market continues to benefit from a combination of strong macroeconomic trends creating opportunities for new product niches. The strongest growth in IILM GURGAON Hair Conditioner Hair Glaze Hair Oil Hair Spray

the global cosmetics market in 2005 was derived from developing regions such as Eastern Europe and Latin America and key markets in Asia-Pacific, with expansion linked to large populations, rising disposable incomes, modernising retail and distribution networks and increased industry awareness amongst consumers. Cosmetics are items to enhance or protect the appearance or odor of the human body. The products included in this category are: Eye makeup product Face makeup product Lip makeup product

SOURCE: CMIE

IILM GURGAON

2.5 GROWTH OF PERSONAL CARE INDUSTRY The personal care industry had an excellent growth rate in all the major markets of the world in 2005-2006. Since the past few years, people have become more conscious about their appearance and look, leading to a huge demand for these products in the whole world. New products are launched by the leading brands to attract consumers. The trends in all the leading personal care markets show that this industry is showing a massive potential for growth. The womens beauty industry is growing at rate of approximately USD 202.254 billion every year where as the global market for cosmetics alone USD 30.33 billion. The global personal care products industry is growing at a very rapid pace; some of the factors responsible are: Rise in consumer spending power, Increased demand due to people consciousness, Key demographic factors, Entry of herbal and organic products, Lifestyle and climactic changes, and Massive advertising and promotiom strategy

Body care products claiming to firm, tone and lift offer consumers a quick-fix solution for body woes. The industry turns over $100 billion every year & the cosmetics market alone is worth more than $15 billion worldwide. The UK market is worth $6.2 billion with a +5.3% growth rate. People in the UK spend on average $2,000 a year on beauty treatments & cosmetics. The cosmetics market is expected to be worth $351 million by 2009. Total expenditure on male grooming products in the is expected to reach $1.5 billion by 2008. Spending on own-label personal care products rose to $7.4 billion last year. The global personal care products industry is growing at a very rapid pace.

IILM GURGAON

2.6 Future Prospects The future for the personal care products industry is very prosperous, which can be analyzed by the rising growth trends of the industry. But there are many concerns related to the chemicals and toxins used as ingredients for making personal care products. These substances can affect our health and the environment also. They are absorbed through our skin and can enter our bloodstream thereby affecting our kidney and liver, and thus can have very harmful effects on our bodies and when these products are washed off from the body; they are released in to the environment. Many companies are addressing these problems and are shifting their focus to the natural and organic products. These products are beneficial to our health as well as environment, because very less quantity of synthetic compounds and toxic elements are used in these products. In most of the countries the demand for organic products has been rising steadily. According to a study conducted by the Natural Personal Care Consumers: Unlocking Future Potential, the organic products market in UK alone will rise from USD 18.19 million in 2007 to USD 24.26 million in the year 2011. Organic and natural personal care products industry has profited much from the growing consumer awareness and their changing lifestyles. These developments have also helped in introduction of a lot of organic products in the market. Despite many sectors showing signs of maturation in the key, developed markets, innovation remains high and while economic prosperity continues many consumers are proving willing to make the trade up, signaling a positive future for value sales.

IILM GURGAON

1. COMPANY PROFILE
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 19 billion* and a turnover of over US $ 5.1 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 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. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.

IILM GURGAON

ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including eenabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3,67,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."

3.1 THE ITC LEADERSHIP

Flowing from the concept and principles of Corporate Governance adopted by the Company, leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of shareholders, carries the responsibility for strategic supervision of the Company. The strategic management of the Company rests with the Corporate Management Committee comprising the whole time Directors and members drawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its assigned business. This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom, and the need for supervision and control

IILM GURGAON

3.2 MANAGEMENT HIERARCHY

3.3 ITCs VALUES

The ITC Vision

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 Companys stakeholders.

The ITC Mission

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

IILM GURGAON

3.4 BUSINESSES

Cigarettes:
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

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 carries forward this proud tradition 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

Lifestyle Retailing:
ITCs Lifestyle Retailing Business Division has established a nationwide retailing presence 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 Clublife 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.

Personal Care:
In line with ITC's aspiration to be India's premier FMCG company, recognized for its worldclass quality and enduring consumer trust, 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 IILM GURGAON

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.

Education and Stationary Products:

ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering. Today, ITC continues to blend its core capabilities to market a growing range of education and stationery products. These capabilities include, a. Manufacturer of Indias first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard. b. Knowledge of image processing, printing & conversion garnered from its Packaging & Printing Business c. Brand Building & Trade Marketing & Distribution strengths resident in its FMCG Business. ITCs stationery Brands are marketed as Classmate and Paperkraft, with Classmate addressing the needs of students and Paperkraft targeted towards college students and executives.

Safety Matches:
As part of its strategic initiative to create multiple drivers of growth in the FMCG sector, ITC commenced marketing safety matches sourced from the small-scale sector. The Matches business leverages the core strengths of ITC in marketing and distribution, brand building, supply chain management and paperboard & packaging to offer Indian consumers high quality safety matches. ITCs range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro.

Agarbattis:
As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and cottage units in 2003. This business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and strengths in trade marketing and distribution.

HOTELS:
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With over 100 hotels in more than 75 destinations, ITC-Welcomgroup has set new standards

IILM GURGAON

of excellence in the hotel industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's

Hotels business is one of India's finest and fastest growing hospitality chains. ITC Hotels' commitment to delivering globally benchmarked services, embedded in a culture deeply rooted in India's rich tradition of hospitality, gives it a unique and distinct identity.

Paperboards and Specialty Papers

ITCs Paperboards and Specialty Papers Division is Indias largest and most technologically advanced paper and paperboards business. ITC caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements through its four world-class mills in India. Having pioneered many speciality applications like cigarette tissues, packaging boards, aseptic cartons and gypsum liners, ITCs Paperboards and Specialty papers business enjoys market leadership in the value-added paperboards segment, and also has a significant share of the Indian paperboards market. It is also the largest Indian exporter of coated boards.

Agri business:
ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based on strong and enduring farmer partnerships, that has revolutionized and transformed the rural agricultural sector. A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices and intensive research, has built a competitive and efficient supply chain that creates and delivers immense value across the agricultural value chain. One of the largest exporters of agri products from the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee & Spices.

INFORMATION TECHNOLOGY
ITC InfoTech, a global IT services company, is today one of Indias fastest growing IT services and solutions providers. Based out of a picturesque 35 acre campus in the heart of Bangalore city, ITC InfoTech, through wholly-owned subsidiaries in the UK and US, provides outsourced IT services and solutions to leading global customers. ITC InfoTech offers IT services and solutions across five key industry verticals: Banking, Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) & Retail, Manufacturing & Engineering Services, Travel, Hospitality & Transportation and Media & Entertainment.

IILM GURGAON

3.5 ITC GROUP OF COMPANIES:

IILM GURGAON

3.6 ITC BRANDS

IILM GURGAON

3.7 ITCs PERSONAL CARE DIVISION

IILM GURGAON

ITC launched an exclusive line of prestige fine fragrances under the Essenza Di Wills brand in mid 2005. The Essenza Di Wills range of perfumes reinforces ITCs tradition of bringing worldclass products to Indian consumers to enrich the quality of their lives. Essenza Di Wills embodies a fine balance between the classic and the contemporary. The brand personifies exclusivity, innate style, sophistication and magnetism. The Essenza Di Wills line has been developed with the assistance of French perfumery experts to give it the mystique and premium luxury quality that go with the best of international brands. Inizio, the signature range under Essenza Di Wills captures the very essence of attraction between a man and a woman with its two distinct lines - Inizio Femme (for women) and Inizio Homme (for men). The women's fine fragrance revolves around 'Floral Fruity Musky' notes while the men's fine fragrance is centered on 'Oriental Woody Fruity' notes. The bath and body care products share the same olfactory signature of the fine fragrances, to offer a harmonized grooming experience. The latest addition to the Essenza Di Wills portfolio is the Aqua range for men (Aqua Homme) that offers a distinctive and fresh aquatic fragrance. The Aqua range includes an AfterShave Lotion, a Deodorant, a Hair & Body Shampoo and a Bathing Bar. Essenza Di Wills has significantly enhanced its brand salience in the lifestyle space by being the associate sponsors of the Wills Lifestyle India Fashion Week, the country's most premier fashion event that brings together the leading designers of the country. The Essenza Di Wills fashion line, specially designed for the brand by one of Indias leading designers, Varun Bahl, received high appreciation at the Spring-Summer show in September 2007. Essenza Di Wills is available at Wills Lifestyle stores, select John Players stores and select premium outlets. In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products comprising shampoos, conditioner, shower gels and soap. This premium range is a unique blend of nature and science that promises gentle effective care. It is an outcome of 4 years of extensive research and development by experts at ITC R&D Centre. The packaging for all Fiama Di Wills products has been developed by a leading European design firm and the fragrances have been developed by an international fragrance house in France. Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA, offers a range of five variants. Each of these is designed to deliver a specific hair benefit to the consumer. 1. Everyday Mild is a gentle caring shampoo suitable for daily use. 2. Aqua Balance is a gentle moisturizing shampoo ideal for dry, dull hair. IILM GURGAON

3. Volume Boost is a gentle volumizing shampoo ideal for thin, limp hair. 4. Silky Strong helps make hair smooth, silky and strong and is ideal for weak, damaged hair. 5. Shine in Style makes hair shiny and manageable, easy to style and is ideal for dull to normal hair. Each of these shampoos can be complemented with Fiama Di Wills Polishing Drops conditioner. This gentle conditioner enriched with Avocado Oil and Burdock extract promises to make hair shiny, soft and smooth. It also gives the additional benefits of UV protection as it contains Sunflower Seed extract, which is a natural UV absorber. The Fiama Di Wills product line also consists of a 3-variant range of transparent shower gels which are unique as they come with suspended beads: Mild Dew is for soft, moisturized skin. Clear Springs is for clear healthy skin. Exotic Dream is for stimulating freshness.

The Fiama Di Wills range of soaps has been launched under the sub - brand Skin Sense. The first variant to be introduced in this range is Soft Green. This is a gentle caring soap, which helps enhance retention of skin proteins making skin look beautiful and youthful. Between February and June 2008, ITC expanded its personal care portfolio with the launch of Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and Vivel, a range of soaps and shampoos, cater to the specific needs of a wide range of consumers. Backed by consumer insights, these ranges offer the unique value proposition of providing the multiple benefits of Nourishment, Protection and Hydration in every single product. Thus providing, the ever-discerning consumer, complete care. The Vivel Di Wills range is available in two variants. Its unique carton pack has been developed by ITC's design team to provide a novel consumer experience. Vivel Di Wills Sheer Radiance is enriched with Olive Oil, to provide skin lustre to make it radiant. Vivel Di Wills Sheer Crme is enriched with Shea Butter, to moisturize skin to make it soft and supple.

IILM GURGAON

The Vivel range of soaps is available in four variants: Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in providing youthful glow to the skin. Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel beautifully soft. Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in providing clear skin. Vivel Ayurveda Essence is enriched with multiple Ayurvedic Ingredients which help protect skin from germs and harsh environment, keeping it healthy and beautiful. The Vivel range of shampoos is available in three variants:

Vivel Shine & Glow is suitable for dull to normal hair and is enriched with Green Tea Extract and Conditioners. It adds shine to hair. Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra Conditioners and Soya Protein. It makes hair soft and fragrant. Vivel Volume & Bounce is suitable for oily to normal hair and contains Jojoba Oil and Conditioners. It adds volume and bounce to hair.

The product portfolio was further enhanced with the launch of Ultrapro anti-dandruff shampoo under the umbrella brand Vivel in December 2008. Ultrapro promises to fight dandruff twice as effectively while also providing care for hair through the plus benefits of Nourishment and Moisturisation. In the popular segment, ITC has launched a range of soaps and shampoos under the brand name Superia. Superia Soaps enriched with natural ingredients give radiant glowing skin. Superia Soaps are available in four variants : 1. Fragrant Flower: with the fragrance of Rose & Lavender Oil 2. Soft Sandal: with the fragrance of Sandal & Almond Oil 3. Natural Glow: with Neem & Coconut Oils 4. Healthy Glow: with Orange Oil IILM GURGAON

Superia shampoos with triple conditioners and natural ingredients bring a natural shine to hair. Superia shampoos are available in two variants:
1. Shiny Black with Triple Conditioners and the natural goodness of

Hibiscus & Brahmi extracts.

2. Vibrant Green with Triple Conditioners and the natural goodness of

Amla & Arnica extracts. Another addition to the Superia shampoo portfolio, Superia Maxi Protect Active Health shampoo contains Dandruff Fighter along with Vitamins & Soya Protein. It fights multiple types of dandruff causing germs and leaves hair & scalp feeling clean & healthy.

3.8 BENCHMARK COMPETITOR OF ITC PCP RANGE: 1. FIAMA DI WILLS DOVE. (Premium segment) 2. VIVEL DI WILLS LUX INTERNATIONAL. (Mid premium segment) 3. VIVEL LUX. (Mid popular segment) 4. SUPERIA DYNA, GODREJ NO.1, BREEZE. (Popular segment)

3.9 SWOT Analysis OF ITC Strengths

IILM GURGAON

ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. 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 The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. To fund its FMCG start-up, the company is still dependent 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 subsidized 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.

Opportunities

Core brands such as Aashirvaad, Mint-o, and 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 community of practice that links rural Indian farmers using the Internet. This is an original and 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. ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Aashirvaad Select in the

IILM GURGAON

Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate. Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's premier FMCG business. 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.

Threats The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings. 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.

4 Applying Porters five forces model in ITCs context:

IILM GURGAON

Porters five forces model was developed by Michael E. Porter in 1979. Porter's five forces include three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers, bargaining power of customers

The threat of substitute products: Toilet soaps in India are mostly used in the bar form. The other form that could act as a substitute is Shower form. Showers are a distant dream for 70% of Indias population, who live in the villages where there is not even a regular supply of drinking water. In the urban areas, people bathe by using a bucket of water, mug, and a bar of soap. Although most of the urban houses have a shower facility, showers are seldom used because of the scarcity of water. Thus there isnt much threat to ITC from the substitute products for soaps in the personal care segments. The threat of the entry of new competitors:

IILM GURGAON

The Indian FMCG sector is a highly profitable market that yields high returns. This has resulted in the entry of many new competitors like Anchor that has forayed into the soap segment for mass market. Sales from a single distributor for Dyna have reportedly risen from two to eight lakhs approximately in the last two years in Jaipur. This has indeed decreased the profitability of ITC in the mentioned segment.

The intensity of competitive rivalry: This is the major determinant of the competitiveness of the company. Certain rivals compete aggressively and some rivals compete in non-price dimensions such as innovation, marketing, etc. There are a number of competitors who have their soaps in the same price segment as ITC does. Further, there also exist companies who launch soaps with a medicinal value or liquid hand wash soaps who add to the fierce competition.

The bargaining power of customers: Indian consumers are quite price-sensitive. They have an ability to put the firm under pressure. With a number of competitors present in the same price-strata, a companys decision to revise its prices could backfire strongly. There are many factors that could affect the bargaining power of customers. These are: buyer concentration to firm concentration ratio degree of dependency upon existing channels of distribution bargaining leverage buyer volume differential advantage of industry products The bargaining power of suppliers:

IILM GURGAON

Suppliers of raw materials, components, labor, and services to the firm can be a source of power over the firm. Depending upon the degree of differentiation in the products the suppliers could charge excessively high prices for unique resources.

5 DISTRIBUTION CHANNEL
Distribution (or place) is one of the four elements of marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the allimportant end-user. Numbers of Distribution Channel Levels

ITC has a Supply Chain which facilitates the flow of their product to final Consumers. The manufacturing plants located across the country, delivers the product to many hubs of ITC from where the product is distributed to Whole Sale Service Providers (WSP). There are many Wholesale Dealers (WD) who get the product from these WSPs and through their channels, the IILM GURGAON

product reaches in the market and finally to the consumers. There are retailers, secondary wholesalers and salesman who are the final component in this supply chain before the end consumers. 5.1 KEY TERMS: There are some company-specific terms that we need to know before understanding the supply chain model in ITC. On the basis of starting and finishing points of the goods being transported, we have: Factory Hub WSP WD WD :K1 WSP(C&F) {Jodhpur & Jaipur}:K2 WD : K3 Retailer: K4

5.2 DISTRIBUTORS OF ITC IN JAIPUR 1. Pawan Associates Pvt Ltd

2. Khandelwal Enterprises Pvt Ltd

3. S.K.Manu Trades Pvt Ltd 4. Pawan Specialities Pvt Ltd.

IILM GURGAON

5.3 Flow Chart of Supply Chain at ITC

FACTORY

HUB WSP

WD

RETAILERS

Retailer

Secondary Whole sellers Secondary Whole Sellers

SALESMAN

CONSUMER

IILM GURGAON

5.4 Advertising Expenses as percentage of Sales

We can see here that Nirma, Godrej & ITC also have less advertising expenses (as % to sales) than HUL. Importantly, Henkel has zero advertising expenses in 2008, which may explain the fact that awareness level in consumers for Henkel brands is low. HUL advertising is done mainly in case of soaps (for example Dove; done mainly to reaffirm that its not a soap!), shampoos, deodorants (Axe), laundry detergents (Surf Excel, Rin) etc. With the introduct ion of home water purifier (Pure It), considerable advertising & promotional expenses have go ne into it. Of late, we see very little of Nirma advertisements. This is apparent from its advertising expense as % to sales, which is very low (only 1.54%). ITC is altogether a different story. Cigarettes & o ther tobacco related products which constitute approx. 85% of its sales, all relate to intoxication or habitual consumption patterns having intensely brand loyal consumers and thus almost no advertising (surrogate advertising is done) is needed either to reaffirm the brands or introduce new consumers to the brands (there is regulatory angle as well). Current consumers of these tobacco products are the biggest advertising agents that ITC has and of course, they do it volunta IILM GURGAON

rily and without knowing what theyre doing. But while moving faster into nontobacco FMCG business riding high on its strength of distribution network matching or surpassing in some cases that of HUL, ITC has started aggressive advertising campaigns (Fiama Di Wills shampoo, Vi vel soap, Sunfeast biscuits, Bingo snacks etc), directly focusing on marquee brands of HU Llike Sunsilk & Lux 5.5 Distribution Expenses as percentage of Sales

ITC has some of the lowest distribution expenses (as % to sales figures) & P&G has the highest. HUL is lower in this respect than Nirma & P&G, but higher than Henkel. This can be explained somewhat from the impact of the variable, Time Band of purchase, on the increased transport int ensity for HUL in the last mile for some of the products like household personal care, laundry de tergent, branded atta etc in the first & last week of the moth. ITC (tobacco), Henkel (largely B2 B) are mostly protected from this implication of the variable. Another important thing to remember that value density of FMCG goods is relatively lower, cau sing share of transportation costs in the overall cost structure to be relatively higher. This implie s dispersed manufacturing, locating manufacturing plants nearer to major markets. So one locati on manufacturing to get higher economies of scale and on the other hand, trying to serve geogra

IILM GURGAON

phically diverse markets may not be economically attractive for FMCG sector. Compared to HU Ls 40 manufacturing plants across India, Nirma, the 2nd largest FMCG major in soaps and detergents category, has 6 manufacturing plan ts, all located in and around Gujarat. So, transportation cost of Nirma, if it tries to cater to pan Indian market will be higher. This is supported by the fact that Nirmas higher distribution cost percentage than HUL. For P&G, the same reasons significantly affect its distribution cost which is highest for the group analyzed.

5.6 SALES COMPARISON OF ITC SOAPS WITH BENCH MARK COMPETITOR SUPERIA AND GODREJ NO.1
CHART NO.1

SALES COMPARISON OF VIVEL AND LUX

CHART NO.2

SALES COMPARISON OF VIVEL DI WILLS AND LUX INTERNATIONAL

CHART NO.3

SALES COMPARISON OF FIAMA DI WILLS AND DOVE CHART NO.4

IILM GURGAON

5.7 MARKET SHARE CHART SHOWING THE OVERALL MARKET SHARE

CHART NO.5

Inference:
The above chart shows that LUX is having 33% of the market share followed by Breeze at 22 % and Godrej No1. at 19 %.

Area wise market share

TONK ROAD CHART NO.6

Inference:
From the above we can infer that in Tonk Road Lux is having the maximum market share i.e. 36% followed by Breeze 18% and Godrej No1 17%. FDW, Vivel and Superia are having 0%, 4% and 13%.

SODALA CHART NO.7

Inference:
From the above chart we can infer that Lux is having 38% Breeze 27% and Godrej No1. 13%.FDW, Vivel and Superia are having 0%, 4% and 7% respectively.

Ram Bagh Circle CHART NO.8

IILM GURGAON

Inference:
From the above chart we can infer that Lux is having 29% Breeze 23% and Godrej No1. 28%. FDW, Vivel and Superia are having 1%, 8% and 4% respectively.

Janta Store CHART NO.9

Inference:
From the above chart we can infer that Lux is having 40% Breeze 11% and Godrej No1. 15%. FDW, Vivel and Superia are having 1%, 12% and 13% respectively.

5.8 COMPARISON BETWEEN ITC SOAPS AND ITs BENCHMARK COMPETITOR

IILM GURGAON

COMPARISON BETWEEN LUX & VIVEL CHART NO.10

Inference:
From the above chart we can infer that Lux is having 85% market share whereas Vivel is having 15% of the market share in Jaipur city.

COMPARISON BETWEEN DYNA & SUPERIA CHART NO.11

Inference:
From the above chart we can infer that Dyna is having 54% market share whereas Vivel is having 46% of the market share in Jaipur city.

COMPARISON BETWEEN DOVE & FDW CHART NO.12

Inference:
From the above chart we can infer that Dove is having 89% market share whereas FDWl is having 11% of the market share in Jaipur city.

IILM GURGAON

1.

5 ANALYSIS AND INTERPRETATION OF SURVEY CONDUCTED ON RETAILERS Amount spent by retailer on soaps every month. CHART NO.13

Inference:
From the above chart we can infer that 40.21% of the retailers buy soaps worth less than Rs5000, 36.08% buy soaps between 5000- 10000 and 23.71% buy soaps worth more than Rs 10000.

2. Buying preference of shop keepers. CHART NO.14

Inference:
From the above chart we can infer that 37% of the retailers prefer buying LUX, 26% prefer buying Breeze,12% prefer Godrej No.1, 11% prefer Dyna and Superia, 2% and 1% Dove and Pears respectively.
3.

Particulars of soap having demand. CHART NO.15

IILM GURGAON

Inference:
From the above chart we can infer that 32% of the retailers feel that fagrance has more demand in their area when compared to color, flavor and weight stands at 20%, 28% and 20% respectively. 4. Retailers rationale behind buying a particular soap.

CHART NO.16

Inference:
From the above chart we can infer that 43% of the retailers buy a particular soap because of consumer demand, 32% buy due to schemes given by retailers, 22% because of cash discount and 3% because of impressive salesman.

5.

Satisfaction level of retailers with the supply mechanism of ITC.

CHART NO.17

Inference:
From the above chart we can infer that 7% of the retailers are very satisfied with the supply mechanism of ITC, 51% are satisfied, 25% have a neutral opinion and 17% are not satisfied with it.

6. Changes the retailers would like to see in ITC soaps CHART NO.18

Inference:
From the above chart we can infer that 23% of the retailers would like to see the change in packaging, 12% in weightage, 26% in color and 39% in fragrance of soaps offered by ITC.

IILM GURGAON

7. Preference of schemes offered by retailers. CHART NO.19

Inference:
From the above chart we can infer that 45% of the retailers would prefer free gifts per carton, 5% would prefer holiday package, 3% would prefer movie tickets, 14% would prefer scratch and win offers 33% would prefer privileged dealer and high value customer offers.

ANALYSIS AND INTERPRETATION OF SURVEY CONDUCTED ON CUSTOMERS 1. FACTORS IMPORTANT FOR BUYING A PARTICULAR SOAP
CHART NO.20

Inference:
From the above chart we can infer that 44%of the respondents feel that advertisement and price are the major factor that plays an important role in buying a particular soap,18% feel that

IILM GURGAON

endorser is a major factor, 12% voted for awareness, 9% for availability, 16 % for skin type and product feature.
2.

FACTORS INFLUENCING CUSTOMERS CHART NO.21

BUYING

BEHAVIOR

OF

THE

Inference:
From the above chart we can infer that 40% of the respondents feel that their buying behavior is influenced by their own preference, 28% by advertisements, 18% by work group, 10% by family and friends and 4% by the schemes and offer provided by the company.

3. SOAPS USED BY CUSTOMERS FOR BATHING CHART NO.22

Inference:
From the above chart we can infer that 34% of the respondents use LUX for bathing, 18% use Dove, 8% use Dyna, 6% individually use Vivel and Breeze, 4% use Superia and FDW individually, 2% use Godrej No.1 and 18% use other soaps.

4. VISIBILITY OF ITC SOAPS CHART NO.23

Inference:
From the above chart we can infer that 42% of the respondents feel that ITC soaps have visibility, 34% feel that they are sometimes visible, 12 % feel that they are very visible and 6% individually feel that they are not much visible and not at all visible.

5. INFLUENCE OF TV & PRINT MEDIA ON BUYING BEHAVIOR OF CUSTOMERS CHART NO.24

IILM GURGAON

Inference:
From the above graph we can infer that 52% of the respondents feel that TV and print media influence the buying behavior of the respondents, 23% strongly agree, 25% gave a neutral response.4

6. CUSTOMERS RESPONSE TOWARDS THE STATEMENT "HIGH PRICE HIGH QUALITY" CHART NO.25.

Inference:
From the above graph we can infer that 11% of the respondents strongly agree with the statement, 31% agree with it, 32% have a neutral response, 19% disagrees with it and 7% strongly disagrees with it.
7.

CUSTOMER RESPONSE ATTRACTIVENESS OF SOAPS CHART NO.26

TOWARDS

PACKAGING

Inference:
From the above chart we can infer that 35% of the respondents feel that Dove has a better packaging, 20% feel that FDW has a better packaging, 22% feel that LUX has a better packaging, 11% feel that VDW has a better packaging, 8% feel that breeze has a better packaging and 4% feel that Dyna has a better packaging.

8. PREFERED WEIGHT OF BARS USED BY CUSTOMERS CHART NO.27

Inference:
From the above chart we can infer that 42% of the respondents prefer bars of 75-100 gms, 28% prefer bars of 100 gms and above, 22% prefer bars of 50-75 gms and 8% prefer bars below 50gms.

IILM GURGAON

9. PREFERRED VARIANTS OF THE CUSTOMERS CHART NO.28

Inference:
From the above graph we can infer that 32% of the respondents would prefer Rose, 28% would prefer Lime, 24% would prefer Sandal and 16% would prefer Almond.

5 FINDINGS
1. The study shows that LUX is having 33% of the market share followed by Breeze at 22 % and Godrej No1. at 19 %. in Jaipur city.

IILM GURGAON

2. When compared Lux is having 85% market share whereas Vivel is having 15% of the market share in Jaipur city. 3. When compared Dyna is having 54% market share whereas Vivel is having 46% of the market share in Jaipur city. 4. When compared Dove is having 89% market share whereas FDWl is having 11% of the market share in Jaipur city 5. From the survey conducted on retailers 40.21% of the retailers buy soaps worth less than Rs5000, 36.08% buy soaps between 5000- 10000 and 23.71% buy soaps worth more than Rs 10000. 6. 37% of the retailers prefer buying LUX, 26% prefer buying Breeze,12% prefer Godrej No.1, 11% prefer Dyna and Superia, 2% and 1% Dove and Pears respectively. 7. The study shows 32% of the retailers feel that fagrance has more demand in their area when compared to color, flavor and weight stands at 20%, 28% and 20% respectively. 8. 43% of the retailers buy a particular soap because of consumer demand, 32% buy due to schemes given by retailers, 22% because of cash discount and 3% because of impressive salesman. 9. 7% of the retailers are very satisfied with the supply mechanism of ITC, 51% are satisfied, 25% have a neutral opinion and 17% are not satisfied with it. 10. 23% of the retailers would like to see the change in packaging, 12% in weightage, 26% in color and 39% in fragrance of soaps offered by ITC. 11. It was found that 45% of the retailers would prefer free gifts per carton, 5% would prefer holiday package, 3% would prefer movie tickets, 14% would prefer scratch and win offers 33% would prefer privileged dealer and high value customer offers. 12. Inference was drawn that 44%of the respondents feel that advertisement and price are the major factor that plays an important role in buying a particular soap,18% feel that endorser is a major factor, 12% voted for awareness, 9% for availability, 16 % for skin type and product feature. 13. 40% of the respondents feel that their buying behavior is influenced by their own preference, 28% by advertisements, 18% by work group, 10% by family and friends and 4% by the schemes and offer provided by the company.

IILM GURGAON

14. The study reveals that 34% of the respondents use LUX for bathing, 18% use Dove, 8% use Dyna, 6% individually use Vivel and Breeze, 4% use Superia and FDW individually, 2% use Godrej No.1 and 18% use other soaps. 15. 42% of the respondents feel that ITC soaps have visibility, 34% feel that they are sometimes visible, 12 % feel that they are very visible and 6% individually feel that they are not much visible and not at all visible.

16. 52% of the respondents feel that TV and print media influence the buying behavior of the respondents, 23% strongly agree, 25% gave a neutral response.
17. It was known that 11% of the respondents strongly agree with the statement, High price

high quality 31% agree with it, 32% have a neutral response, 19% disagrees with it and 7% strongly disagrees with it. 18. 35% of the respondents feel that Dove has a better packaging, 20% feel that FDW has a better packaging, 22% feel that LUX has a better packaging, 11% feel that VDW has a better packaging, 8% feel that breeze has a better packaging and 4% feel that Dyna has a better packaging. 19. 42% of the respondents prefer bars of 75-100 gms, 28% prefer bars of 100 gms and above, 22% prefer bars of 50-75 gms and 8% prefer bars below 50gms. 20. 32% of the respondents would prefer Rose, 28% would prefer Lime, 24% would prefer Sandal and 16% would prefer Almond.

8 RECOMMENDATIONS

IILM GURGAON

1. ITC should do more promotions of its PCP range as it is new to the market to have a

leading edge from its competitors. It needs to capture more market in rural and urban area as well by evolving some USP.
2. The company should come up with more and more retailer schemes such as free gifts,

scratch coupons movie tickets as the sales of soaps are influenced by the retailers.

3. ITC should come up with more variants and fragrance in its PCP division like lime rose.

4. ITC should concentrate more on advertisements of its products on TV during the peak hours and it should put hoardings and bill boards in the major areas of the city. It should also send pamplates with news paper and magazines in order to increase the awareness of the products. 5. As Indian customers are price sensitive ITC come up with different pricing strategy like penetration strategy to increase its market share. 6. The sales person of ITC should be given proper training and knowledge about the product and schemes offered by the company to improve its sales. 7. The sales person should be properly monitored and controlled to have a greater efficiency of work. 8. The sales person should also maintain good relation with the retailers as he is the only person who contacts the retailer more frequently and they should not be changed frequently. 9. The company should concentrate more on the display of the products in the shops. 10. The company can come up for schemes for customers like free pouch of shampoo with every bar of soap.
11. Constant feedback from the customers would be beneficial for the development of the

products as 20% of the loyal customers bring 80% of the revenue to the company.

9 CONCLUSION

IILM GURGAON

The over all conclusion derived from this study is that the personal care industry enjoys a very good & strong position in Indian market, as such soap is one of most demanded & necessary goods of day to day use without which Indians will find it really difficult to clean their body. Rural people can survive without it, but when comes the hygiene use of soap is advisable to be used. Every section of the society whether it is middle, upper middle or higher segment uses soaps especially in urban areas. Basically as per the research it is found that the major section of the youth population uses one or the other soaps in which freshness, protection against germs and fragrance plays major role . Mid quality soaps has major market share in urban areas. The major aspect of consumer buying behavior in terms of promotional benefits which came into being after this research is that if the consumers are satisfied with the quality & other major aspects of the respective commodity, some small benefits or schemes are not going to distract them with their Brand loyalty. As such in this study it is found that although consumers are not satisfied & not having proper knowledge about various promotional schemes of their soaps, but still they are satisfied, want to continue & recommend the same brand to others too. This over all study reveals the fact that it is the functionality in terms of efficiency & effectiveness of the product which overall affects the consumer purchase decision-making brand promotion, advertisements celebrity endorsement only can not attract a consumer. So the marketer should use more effective tools to communicate the same to its target customers apart from attracting for additional benefits & offers.

10 REFERENCES
WEBSITES REFFERED IILM GURGAON

1. http://marketingpractice.blogspot.com/2007/01/lux-celebrating-beauty.html

2. http://www.livemint.com/2007/08/09000855/Hindustan-Unilever8217s-mar.html

3. http://www.financialexpress.com/news/now-hul-and-itc-in-soap-opera/257449/2 4. http://www.zimbio.com/Investments+stock+market/articles/30/Hindustan+Unilever+HU L+ITC+Stock+Comparison 5. http://www.itcportal.com/sets/itc_frameset.htm 6. http://www.itcportal.com/sets/leadership_frameset.htm 7. http://www.itcportal.com/sets/values_frameset.htm 8. http://www.itcportal.com/sets/itc-research-development.htm 9. http://www.itcportal.com/sets/news_frames.html 10. http://money.rediff.com/companies/itc-ltd/12630003 11. http://en.wikipedia.org/wiki/ITC_Limited 12. http://www.termpaperslab.com/term-papers/137540.html 13. http://www.oppapers.com/essays/Itc-Swot-Analysis/181517

BOOKS REFFERED:
1. Marketing Management Philip Kotler.

IILM GURGAON

The eleventh edition published by Pearson Education, Singapore Pvt. Ltd, India branch, 482 F.I.E. Patparganj, Delhi 110092, India. Printed in India by Thomson Press (I) Ltd.

2. Modern Marketing- Rsn Pillai and Baghavati

S. Chand & Co. New Delhi, 3rd Edition 2004.

3. Consumer Behaviour- Leon. G Schiffman and Lazark Anuk,

New Delhi, 9th Edition 2004.

4. 22 Immutable Laws of Branding- Al Rice and Laura Rice

11 ANNEXTURE Customer questionnaire

Dear Sir/Madam, You are invited to participate in a survey that will be used to determine the factors which affect the buying behavior of bathing soaps of major brands. Your survey responses will be confidential. Thank you very much for your time and support.

IILM GURGAON

QUESTIONNAIRE

NAME: GENDER: CONTACT NO:

AGE: INCOME:

1. Rate the following factors on 1-5 scale which you consider important while buying a

particular soap. [Where 1 is for least important and 5 is for most important] FACTORS Price Packaging Color Fragrance Brand
2. What factors influence you the most while purchasing soaps. [1- Least Influencing, 5-Most

RATING

Influencing.] FACTORS Family & Friends Own preference Advertisements Schemes/Offers Work Groups

RATING

3. Which soap do you generally use for bathing ?

SOAPS FIAMA DI WILLS: DOVE: VIVEL DI WILLS LUX SUPERIA GODREJ NO.1 IILM GURGAON

PREFERENCE

BREEZE: DYNA OTHERS

4.

Do you agree with the concept of Higher price higher quality? Strongly disagree Disagree Neutral Agree Strongly agree

5. Please rank the level of attractiveness of packaging of following soaps.

[Please Rate it from 1-8, where 1 is for worst and 8 is best] SOAPS FIAMA DI WILLS DOVE VIVEL DI WILLS LUX SUPERIA GODREJ NO.1 DYNA BREEZE RATING

6. How visible are ITCs soaps on the store where you usually buy your soaps from?

a. Very visible b. Visible c. Sometimes visible d. Not much visible IILM GURGAON

e. Not visible at all

1. The advertisement in T.V, print media or any other source determines the choice you make

when you decide to buy soaps. strongly disagree disagree neutral agree strongly agree

2. On the scale of 1-9 rate the factors that you consider important while buying a particular

soap (1- Least important, 9-Most important) : Factors Awareness Product Features Schemes or discounts Store-keepers recommendation Skin-type Advertisements Celebrity who endorsed the brand Availability in a store Visibility in the store Rating

3. Weight of the soap bar you generally use is : a. Less than 50gms b. 50-75gms c. 75-100gms d. 100gms or above IILM GURGAON

1. Which of the following variants do you like the most: a. Rose b. Sandal c. Almond d. Lime e. Other (specify)

1.

Do you look for a specific brand while buying soap? If yes, please specify the name.

Retailer Survey

SURVEY
IILM GURGAON

We, on behalf of ITC, would like our retailers and wholesalers to participate in an open survey to check the satisfaction level of people buying soaps and shampoos. The details you provide would be kept confidential and would be used for academic purposes only. Your opinion is important to us. Thank you for your participation.

Name: Store: Phone No.: Q.1) How much soap do you generally buy in a month? (Cartons/ sets/ rupee amount)

Q.2) Which soap sells most within a price range of Rs.8-Rs.12?

Q.3) Identify the particulars of the soap that has more demand in your area? Color Flavor Fragrance Weight Q.4) How often do salesmen/ company personnel visit your shop? Everyday DOVE FIAMA DI WILLS VIVEL DI WILLS LUX SUPERIA BREEZE DYAN GODREJ NO.1 Every week Every month Whenever u call

Q.5) What is the rationale behind buying a particular soap? 1. Consumer demand 2. Schemes given by company for you IILM GURGAON

3. Cash discount you receive 4. Impressive salesman 5. Others, specify :

Q.7) How satisfied are you with the supply mechanism of ITC? Underline your choice. Very satisfied Satisfied Neutral Not satisfied Very dissatisfied

Q.8) Please suggest changes in terms of the following that you would like to see in Superia soaps. Packaging Weightage Color Fragrance Other Q.9) Who is your favorite company to buy soaps from and why?

Q.10) Which scheme would you like to be offered from ITC on the basis of your order? 1. Free gifts per carton 2. Holiday packages 3. Tickets to movies 4. Scratch and win offers 5. Privileged dealer or high value customer offers 6. Any other

Q.11) Any other comments or complaints that you would like to bring into our notice.

IILM GURGAON