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Summer Internships 2011 PGDM 2010-12

Summer Internship Project Report on


LIVE PROJECT ON BRANDING IN EMERGING CHANNEL FOR MEN PERSONAL CARE CATEGORY
Undertaken at ITC LTD

JAIPUR
Prepared By: (AKASH SHARMA) (Student Roll No.10GMOO2)

Company Guide VINOD BEWANI AREA EXECUTIVE

Faculty Guide RUSTAM BORA ASST PROFFESOR

ACKNOWLEDGEMENT

The making of any project requires contribution from many people, right from inception till its completion. In our case also, there had been a few people who have made this happen. It was not only learning but also an enriching experience.

We would like to thank Mr. Vinod Mewani for being a source of inspiration and for the valuable suggestions provided throughout. His constant follow-ups and result orientation ensured that we successfully meet the deadlines.

The making of any project requires contribution from many people, right from inception to its completion. In our case also, there had been a few people who have made this happen. It was not only learning but also an enriching experience.

We thank our colleagues and friends for providing constant encouragement and help. Finally, we are grateful to our families for their moral support and understanding.

Teachers open the door, but you must enter by yourself

EXCUTIVE SUMMARY
This study titled Live Project Branding in Emerging Channel for Men Personal Category

The main objective to initiate a study on salon outlets for emerging a new channel and potential for the personal care in fiama di wills in men category. Understand the channel in term of need and category. By studying these outlets and dividing them in terms of posh area wise, location and size of outlet, customer profile and foot fall, employee working, brand they use , customer spend . So by that these outlets is divided in form of gold outlets, silver outlets, bronze outlet by area wise and find in them most opportunity outlet for visibility and product sale potential .

During project I covered jaipur city and find out the major salon outlets for visibility and sale of product and from them some salon outlets like Shades, style and Style N Scissors, Jitendra hair cutting saloon, NIMS Vickys, New look, and many other. Further it was seen from the final findings The effective visibility of product can be done by gold outlets the reason is that mostly of them are unisex salon and their location is on pose area the customer are of upper class and upper middle class. This class spends more money for their luxury life and quality product. The effective sale and visibility can be done by silver outlets. The reason is that mostly customer of upper middle class and middle class and They are ready to sale product and they give the space for visibility according to suitable for them and company representative needed and in return outlets owners get the benefit in term of money and sale of product they get the margin that motivate to them join with the company.

Some outlets are not ready for product visibility some reason are in gold outlets mostly representative are not interested they say that this product is also sale out in organization and un organization store. We sale only professional product which are sale in only salon outlets. If anyone who is interested they put condition that space for visibility according to them and they are not satisfied by the company benefit so they want to increase benefit if yes than fine otherwise they say no. In silver outlets most of the owner is ready to provide space for visibility but the company have some condition that the product which will visible it should be cash purchase. Most of the outlets are disagree on this condition.

INDIA TABACCO COMPANY LIMITED


ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then 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, Agribusiness, Foods, Lifestyle Retailing, Education & Stationery and Personal Care the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 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. 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 hotelier. Over time, the strategic forays into new businesses are expected to garner a share of these emerging high-growth markets in India. 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 26,000 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 4,08,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value ,For the Nation ,For the Shareholder."

ITC VISION

Sustain ITCs position as one of the Indias most Valuable corporations through world Class performance, creating growing value For the Indian & the companys Stake holders.

ITC MISSION
To enhance the wealth generating capability of Enterprise in a globalizing environment, delivering Superior & sustainable stake holder value. Over the years, ITC has evolved from a single Product Company to a multiple business corporation. Its business separated over a wide spectrum, Ranging from cigarettes & tobacco to hotels Packaging, paper & paperboards & international.

FAST MOVING CONSUMER GOODS (FMCG) IN PERSONAL CAR:

The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organized and unorganized. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. In line with ITC's aspiration to be India's premier FMCG company, recognized for its world-class 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 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. Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations use internationally recognized safe ingredients, subjected to the highest standards of safety and performance. The Companys unwavering focus on quality, innovation and differentiation backed by deep consumer insights, world-class R&D and an efficient and responsive supply chain will further strengthen its leadership position in the Indian FMCG industry.

FIAMA DI WILLS

In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products comprising shampoos, conditioner, shower gels and bathing bar. The Fiama Di Wills range combines the goodness of nature and science, providing gentle and effective care. The Fiama Di VXWills product portfolio has been developed by scientists at the ITC R&D Centre, leveraging the expertise of International product formulation specialists. The fragrances, aesthetics and packaging have been developed in collaboration with European specialists. Fiama Di Wills products are targeted at the young, modern, aware customers who are confident of themselves and seek indulgences that make them feel alive and beautiful. The range combines exotic naturals like Sage, Watercress, Magnolia blossoms and the best of contemporary science like Hydro Restorative System and Cuticle Restore Technology to make the consumer feel beautiful, today, tomorrow.
Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA, offer a

range of five variants. Each of these is designed to deliver a specific hair benefit to the consumer :

Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo suitable for regular use.( 200 ML, RS 115 /100 ML, RS 59,/ 9ML RS 3) Aqua Balance (with extracts of Magnolia Blossoms & Watercress) is a gentle moisturizing shampoo ideal for dry, dull hair. (200 ML RS 115, 100 ML RS 59) Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampoo ideal for thin, limp hair.( 200ML RS 115, 100ML RS 59) Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth, silky and strong and is ideal for weak, damaged hair.( 200 ML RS 115, 100 ML 59, 9ML RS3) Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny and manageable, easy to style and is ideal for dull to normal hair.(200ML RS115, 100ML RS59)

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. (100 ML RS68) Launched in September 2010, the Fiama Di Wills Anti-Hairfall Shampoo is unique as it offers consumers the goodness of Brazil Nut, found in the Amazon Forests and the effectiveness of science with the Hair restore Technology. Brazil Nut, is known to seal in hair moisture giving it shine and a silky smooth texture. It also helps renew dry and lifeless hair. The Hair Restore Technology, developed at the ITC R&D Centre, helps repair cuticles and restore the protective lipid layer to reduce further damage. This strengthens hair and reduces hair fall due to breakage. The Anti-hairfall Conditioner also enriched with Brazil Nut extracts and the hair restore technology gives best results when used with Fiama Di Wills Anti-Hairfall Shampoo.( 200 ML RS115, 100ML RS 59, 9ML RS 3) 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 (contains soft beads, extracts of peach and avocado) is for soft, moisturized skin. (200 ML RS 99,) Clear Springs (contains jojoba beads, extracts of sea weed and lemongrass) is for clear, healthy, smoother skin. (200 ML RS 99) Exotic Dream (contains glitter beads, extracts of bearberry leaves and black currant) is for stimulating freshness.( 200ML RS 99)

The Fiama Di Wills range of bathing bars 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 bathing bar, that helps enhance retention of skin proteins giving 6 pro care. Protein keeps skin moisturised, supple, youthful, even toned, radiant and smooth. Fiama Di Wills recently launched a range of transparent gel bathing bars. A first of its kind, a transparent liquid gel has been solidified into a bathing bar so that consumers get a superior bathing experience. The shower gel in a bathing bar format which has been crafted through a unique and patented freezing technology. Backed by deep consumer insights, this proprietary gel bathing bar is a result of years of extensive research and development by the scientists at the ITC R&D Centre. Uniquely crafted, these Gel Bathing Bars are shaped like dew drops, have a transparent look, rich creamy lather, and a great long-lasting fragrance. These bathing bars are dermatologically tested and proven mild and contain the goodness of natural exotic extracts like Peaches, Avocadoes, Sea Weed and lemongrass. Launched in two variants that offer specific different skin benefits,

Are: Mild Dew - Contains extracts of peach and avocado which moisturisation the skin.(115 g RS 30)

Clear Springs - Contains extracts of lemongrass & sea weed which gives Clear skin. (115g RS30) The Fiama Di Wills transparent Gel Bathing Bars are available at an attractive price of Rs. 25 for 110 grams. This differentiated range of bathing bars offers the consumer a delightful bathing experience.

THE LATEST LAUNCH IN MEN PERSONAL CARE CATEGORY IN FIAMA DI WILLS


Fiama Di Wills has expanded its range of personal care products by introducing Aqua Pulse shower gel, exclusively for men. The shower gel contains extracts of exotic naturals like sea minerals and blue lotus. This blue transparent shower gel refreshes and keeps skin healthy. Fiama Di Wills Aqua Pulse Bathing Bar, crafted exclusively for men, gives an invigorating and rejuvenating fragrance and freshness. Its composition with Sea Minerals, Blue lotus and the Active Defense Complex gives a fresh and healthy skin. ( 200 ML RS99 and 130 gm RS 35)

GLOBEL HONOR
ITC constantly endeavours to benchmark its products, services and processes to global standards. The Company's pursuit of excellence has earned it national and international honors. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of "the world's best big companies". Forbes has also named ITC among Asia's 'Fab 50' and the World's Most Reputable Companies. ITC has several firsts to its credit:

ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines of the Netherlands-based Global Reporting Initiative (GRI), a UN-backed, multi stakeholder international initiative to develop and disseminate globally applicable Sustainability Reporting Guidelines.

ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The Development Gateway Award recognizes ITC's eChoupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of its contribution to

development priorities like poverty reduction, its scale and replicability, sustainability and transparency.

ITC has won the inaugural 'World Business Award', the worldwide business award recognising companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The award has been instituted jointly by the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation.

ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007, the Award for 'CSR in Emerging Economies 2005' and 'Excellence in Corporate Governance' in the same year. These Awards have been instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and Centre for Corporate Governance. ITC Hotel Gardenia, Bengaluru is the first Indian Hotel and world's largest, to get the LEED Platinum rating - the highest green building certification globally. The Company's Green Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh are the first units of their kind in the world to get ISO 14001environment management systems certification.

ITC's cigarette factory in Kolkatais the first such unit in India to get ISO 9000 quality certification and the first among cigarette factories in the world to be awarded the ISO 14001 certification. ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001Environment Management Systems certification. ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001. ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in the world. ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10 units in the world to bag the Social Accountability (SA 8000) certification. ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also certified for the standard ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration Laboratories (NABL). This certification is awarded for "General requirement for the competence of Testing & Callibration Laboratories". ITC Chairman Y C Deveshwar has received several honours over the years. Notable among them are: Year Award 2011 The Padma Bhushan, one of the highest civilian awards in the country by the Government of India in recognition of his distinguished service of a high order to the Nation.

SWOT ANALYSIS
The organization has some major strength that gives it a competitive advantage over its rivals. 1. Strong Financial Performance: On 31st march, 2010, ITCs market cap was Rs. 114000 cores with a Gross income of Rs.26,863 cores and Profit after tax of Rs. 4061 cores. The company continues its impressive record of financial performance.

2. Products Portfolio: ITCs portfolio of products and services is represented by over 50 energetic Brands in a range of more than 650 stock keeping units (SKUs). 3. Distribution Network: ITCS products are available in over 6 million retail outlets in the country. Its formidable Distribution organization directly services more than 2 million of these retail outlets. It used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. 4. Environmental Friendly: ITC has a status of being Water Positive for the 8th consecutive year, Carbon Positive for the 5th year in succession and solid waste recycling positive for 3 years in a row. ITC is the only enterprise in the world of its size to have achieved and sustained these three global environmental distinctions. As consumers and investors become more environment friendly, these considerations will provide the organization an opportunity to create USPs and stronger brand loyalty and brand equity. 5. Research & Development: ITC recognizes that cutting edge R&D can foster breakthrough innovation and create powerful sources of sustainable competitive advantage. This vision has led to the establishment of a state of the art R&D centre at Bengaluru with over 50 world- class scientists. Its R&D program will create new game changing business opportunities. 6. Socially Responsibility: ITCs initiatives to build social capital through extensive community engagement have led to the creation of sustainable livelihood opportunities for over 5 million people. ITC has helped create more than 20,000 rural women entrepreneurs. ITCs supplementary education initiative has reached out to over 200000 school children in rural areas. ITCs value chain supports over 5 million livelihoods. 7. Brand Equity: ITC is one of the best known brands in India.

Weaknesses: In spite of several strengths, there remain some areas of weakness and concern for the organization. 1. Dependency on the tobacco business: To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco revenue. Cigarettes account for 47% of the companys turnover and for 80% of its profits. So there is an argument that ITCs move into FMCG is being subsidized by its tobacco operations. But despite the negative connection of tobacco with poor health and premature death so it was now constant in growth. 2. Not present in many important sectors: Although ITC is a diversified company trading in a number of business sectors such as cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care and other FMCG products, greeting cards, Information Technology, safety matches, incense sticks and stationery etc. Yet, it does not have presence in many important sectors such as insurance, infrastructure, banking and financial services, BPO, telecom, automotive etc. and thus becomes comparatively weak when compared with other conglomerates like the Bharti group, the Tata group and the Ambani groups Opportunity
1. Leveraging its brand equity ITCs products & services are of high quality. If

ITC enter into any business or launch any product, consumer know its ITCs product, consumers shall trust these to be of good quality. ITCs brand equity would make ITC successful in most sectors.
2. Core brands such as Aashirvaad, Mint-o, Bingo!

And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration Technology, supporting business solutions.

3. ITC is moving into new and emerging sectors including Information

4. 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. Take a look at eChoupal here http://www.itcportal.com/agri_exports/echoupal_new.htm
5. 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 Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulat
6. 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.

THREAT

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.

ORGANISATION STRUCTURE

Board of Director

Audit committee

Compensation Committee

Nomination committee

Investor service Committee

Sustainability Committee

Corporate Management committee

65

Divisional / Strategic Business unit

(SBU),

Corporate function ,each head by a HOD Corporate Function include Planning and Treasury, Accounting, Taxation Risk management , he got Secretarial, Human Resource , Corporate Communications, Corporate Affairs, Internal Audit and Research and Development.

Management Committee, each headed by a division SBU chief executive. business includes : Fmcg, Hotels, Papers Specialty and Packaging, Agri business and Information Technology.

BRANCH STRUCTURE BRANCH MANAGER

ASSITANT MANAGER {GR2}


PAMS

ASSITANT MANAGER
{GR1/3} FOOD/BINGO

ASSITANT MANAGER
{GR4} CIGRATTE

AREA EXICUTIVE

AREA EXICUTIVE

AREA EXICUTIVE

SUPERVISIOR

SUPERVISIOR

SUPERVISIOR

SALES TEAM (DS)

SALES TEAM (DS)

SALES TEAM (DS)

GROCERY RETAIL IS KEY TO ITC: This channel share significant share of industry and the imperative is to continually grow ITC share and quantum of business from this channel. Visibility excellence in grocery retail is ensured through proper execution, maintenance and monitoring of merchandising inputs with the assistance of third party merchandisers and team leaders. And outlets servicing to be in line with business potential of respective category groups and main focus on classified outlet to build servicing and focus in the right outlets.
GROCERY RETAIL CHANNEL:

ITC FMCG category has a large number of stock key units the grocery channel has been spilt by following category groups to provide a SHARPER FOCUS & SUPERIOR QUALITY OF SERVICING. Grocery retail channel is divided into 5 segments for distribution of products they are: PREMIUM Outlets: In this category the product is supply in outlet are all foods includes bingo, all personal care, agarbatti, instant mixes & pasta, matches .
Grocery 1: In this category the product is supply in outlet are stables, biscuits,

confectionary, ready to eat (includes instant mixes and pasta), cigarettes. Grocery 2: In this category the product is supply in outlet are shampoos, soaps, agarbatti, matches. Grocery 3: In this category the product is supply in outlet are bingo. Common: In this category the product is supply in outlet are all foods (includes bingo) all personal care, agarbatti, matches.

Role of grocery DS: the main role is products availability in the right outlet with right quality and then ensure that every call to an outlet is productive and strive to maximum range of sell in to an outlet and ensure that grow in business from each outlet and monitoring freshness as per norms and ensure stock rotation and

maintain visibility and built trade relationship and as norm credit management at an outlet level. Role of grocery team leaders: The main work is give training, development & motivation of his ds team and responsibility for DS performance and supports the DS in driving category/ range/ focus stock key units availability /productivity. Responsible for improving distribution measures in the channels ,credit management and conflict resolution at an outlet level and prospecting for new high potential outlet and monitoring and tracking competition activities . Role of grocery delivery units: The delivery of order taken has to be done on the very next day. And ensure that delivering is done on time .They use public transport for delivery. Visibility guidelines (unpaid visibility)

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