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A
Project Report
On
“A STUDY ON RETAILERS SATISFACTION
TOWARDS
WIPRO’S GLUCOVITA
IN
BELLARY DISTRICT”
Submitted to Gulbarga University,Gulbarga
In partial fulfillment of the requirement for the award of
Master of Business Administration
Submitted by
SUNILKUMAR S. KULKARNI
Reg, No.001G-709
Under the Guidance of
Internal External
Prof.Manmath Nath Samataray Mr. ROBERT .Y
Faculty for MBA Sales officer
DODDAPPA APPA INSTITUTE FOR
MASTER OF BUSINESS ADMINISTRATION
GULBARGA
2003
Doddappa Appa Institute for MBA
ACKNOWLEDGEMENT
The completion of this study makes me to recall with gratitude several persons
who have extended their co-operation in one way or the other in this venture.
I am indebt to wipro Limited for allowing me to undertake my project work in
their esteemed organization. First and foremost I acknowledge my deep sense
of gratitude to Mr. Robert Y of WIPRO LIMITED for his guidance.
I express my sincere thanks to Mr. Director Prof. B.B. Patil, I also wish to
express my deepest gratitude to my guide Prof. Manmath Nath Samantaray for
giving his valuable guidance and timely support to complete this project
successfully.
I also wish to thank all my friends who helped me in many ways to complete this
study successfully. Last I thank my parents without whose motivation and
support this would have not been completed.
SUNILKUMAR S. KULKARNI
Doddappa Appa Institute for MBA
DECLARATION
I have by declare that the project report entitled “ A STUDY ON RETAILERS
SATISFACTION TOWARDS WIPRO’S GLUCOVITA IN BELLARY DISTRICT”
has been prepared during my during my academic year 2002-2003 under the
guidance of Mr. Prof. Manmath Nath Samantaray, M.B.A. Doddappa Appa
institute of Master of Business Administration, Gulbarga. This project report has
been submitted to Gulbarga University, Gulbarga through Doddappa Appa
Institute of Master of Business Administration, Gulbarga in partial fulfillment for
the award of degree of master of Business Administration.
The empirical findings in this report as based on the data collected by teams.
While preparing this report I have not copied from any other report. I also
declare that this report has not been submitted to any other University for award
of any degree or diploma.
Date:
Place:
SUNILKUMAR S. KULKARNI
Doddappa Appa Institute for MBA
CERTIFICATE
This is to certify that the project entitled” A STUDY ON RETAILERS
SATISFACTION TOWARDS WIPRO’S GLUCOVITA IN BELLARY DISTRICT”
has usefully completed him project work in the partial fulfillment for the award of
“Master of Business Administration” from Gulbarga University,Gulbarga.
Further it is certified that this project or thereof has not been previously
submitted to any other university for the requirement of Master of Business
Administration.
Date :
Place : Gulbarga
Director
(PROF. B.B PATIL)
Doddappa Appa Institute for MBA
CERTIFICATE
This in to certify that the project entitled “A STUDY ON RETAILERS
SATISFACTION TOWARDS WIPRO’S GLUCOVITA IN BELLARY DISTRICT”
prepared by Mr. SUNIL KUMAR S. KULKARNI has been conducted under my
direct supervision and guidance I am satisfied regarding the authenticity of his
observations and inferences.
This study is in partial fulfillment for the award of “Master of Business
Administration” from Gulbarga University, Gulbarga.
Further it is certified that this project or thereof has not been previously
submitted to any other university for the requirement of Master of Business
Administration.
Date :
Place: Gulbarga
Prof.Manmath Nath Samantaray
Doddappa Appa Institute for MBA
CONTENTS
CHAPTER 1
1.1 Introduction of the study
1.2 Objectives of the study
1.3 Scope of the study
1.4 Methodology of study
1.5 Limitation of the study
CHAPTER 2
Theoretical Background
CHAPTER 3
3.1 Company Profile
3.2 Product Profile
CHAPTER 4
Analysis & Interpretation of data
CHAPTER 5
5.1 Findings
5.2 Conclusion
5.3 Suggestion
Annexure
Bibliography
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Retailers are the direct consumers. To stay ahead with
consumers, the marketers need to stay ahead with retail customers.
The retailers have the potential to know their consumers better than
consumer manufacturers ever could. They are truly the buying agents
for the consumer’s world. The overall efficiency and consumer focus
of power retailers put considerable pressure on the manufacturers to
sharpen their demand creation skills, especially regarding consumer
insights, technical innovation, and advertising. The irony of all this is
that the rise of the power retailers has helped put the customers focus
more than ever on the consumer. The way to win with power retailers
is to win with consumers.
Retailers are powerful partners in delivering brand values
to customers. They are also fierce competitors in capturing the profits
that come from doing so. Marketers need more than power brands to
get their “ faire share” of the profits. They need smart promotion plans
and smart negotiation skills and should be clear about what they want.
Fortunately, although retail practice have changed quite drastically in
recent decades, marketers fundamental object: distribution, pricing,
shelf placement and merchandising.
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Retailers play huge roles in marketing of customer products
today. Work closely with the sale force to create program that address
retailers wearing needs . at the same time, never let an emphasis on
the customer get in the way of your ( the marketers) primary force: the
consumer
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1.2 OBJECTIVES OF THE STUDY
1 To carryout the detailed study on retailers preference to
Glucovita.
2. To study retailers preparation towards dealing Glucovita.
3. To survey retailers opinion on price, quality, margin, visibility of
Glucovita.
4. To understand the factors that motivate dealers in dealing
Glucovita.
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1.3 SCOPE OF THE STUDY:
1 The research has been conducted to enable management to
know the opinion about the new product and how they deal with
Wipro’s newly launched product.
2 The information collected will help to take correct and in time
decision.Now a day, we see that technology is very much
advanced, leading to increase in challenges to human skills and
efficiency. This has given rise to the introduction of newer and
products every day in the market.
3 There is a free market in the fast moving consumer group
industries, permitting free entry and free exit to any firm. So,
whenever a new product is launched in such markets, it may not
have any competitor at initial stage and consequently may make
huge profits.some disguised questions it includes a mixture of
closed end questions and open ended questions to facilitate
easy answering.
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1.3 METHODOLOGY OF THE STUDY
The study was conducted for Wipro Ltd in and around of Bellary
district.
The method of study was emphasized on secondary and primary
data.
PRIMARY DATA:
The primary data was collected through questionnaires,
personal interview and observing the respondents of that particular
area.
The sample size was selected randomly. There were
200 sample taken from in and around Bellary district. out of 200
respondents . 50 were from Bellary, 50 were from Hospet, 50 were
from Gangavati, 50 were from H. B. Halli. These were taken in this
study
SECONDARY DATA:
The secondary data was collected from annual report of the
organization, magazines, news paper and etc. these sources were
immense help for the study.
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1.5 LIMITATIONS OF THE STUDY:
The study carried out involved the following limitations
Time was a major limitation for not taking a detailed study
Cost: Cost was also another limitation factor.
Area: The study is not representative of Karnataka State
Information: There was no proper source for getting the
information related to research and developments.
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THEORETICAL BACKGROUND
RETAILING
Retailing includes all the activities in selling goods or services
directly to final consumer for their personal or non-business use. A
retailer or retail store is any business enterprise wholesale volume
comes primarily from retailing.
Any organization that does this type of selling whether a
manufacturer, whole seller is doing retailing. It does not matter how
person, mail, telephone or vending machine) sells the goods or
service or where they are sold (in a store on the street or in the
consumer’s home)
Types of retailers
Retail organization exhibits great verity and new forms keep
emerging. Several classifications have been proposed. For our
purpose we will discuss store retailing, non-store retailing and retail
organization.
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Store retailing: Consumer today can shop for goods and
services in a wide verity of stores. The most important retail store
type many of which are found in most countries fall into eight
categories stores discount store off-price retailers super-store and
catalog showrooms. Perhaps the known type of retailer is the
department store. Japanese department stores such a
Takashimaya and Mitsukoshi attract millions of shoppers each year.
These stores features art galleries cooking classes and children
play grounds. The EL courts ingle department store chain in Spain
drawn crowds of Spanish shoppers.
Like products, retail store type pass through stages of growth
and decline that can be described as the retail life cycle. A retail
store type emerges, enjoys a period of accelerated growth reaches
maturity and then declines. Older retail form took many years to
reach maturity, but newer retail forms reach their maturity much
earlier. The department store took 80 years to reach maturity, while
wars house retail outlets more modern form of retailing, reached
their maturity in 10 years.
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Product categories can position themselves as offering one of
four levels of service.
Self service retailing: Used in many retailing operations especially
for obtaining convenience goods and to some extent shopping
goods. Self-service is the cornerstone of all discount operations.
Many customers are willing to carry out their own locate compare
select process to save money.
Self-selection retailing: Involves customers in finding their own
goods, although they can ask for assistance customers complete
their transaction by paying sales. Person for the item self
selection organizations have higher operating expenses than self-
service operations because of the additional staff requirements.
Limited service retailing: provides more sales assistance because
these retailers carry more shopping goods and customers need
more information. Because the stores also offer service (such as
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credit and merchandise return privilege) not normally found in less
service-oriented stores they have higher operating cost.
Full service retailing: Provides sales people who are ready to
assist in every phase of the locate compare select process.
Customers who like to be waited on prefer this type of store. The
high staffing cost along with the higher proportion of the specialty
goods and slower moving items (fashions, jewelry, cameras) the
more liberal merchandise return policies, various credit plan free
delivery, home servicing of durable and customer facilities such a
lounges and restaurants results in high cost retailing.
By combining these different service levels with different
assortment breadth, we can distinguish the four broad positioning
strategies available to retailers.
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1) Blooming dale’s typifies stores that features a board product
assortment and high value added. Stores in this quadrant pay close
attention to store design product quality, service and image. This profit
margin is high and if they are fortunate enough to have high volume,
they will be very profitable.
2) Tiffany typifies stores that features a narrow line and low value added.
Such stores appeal to price conscious consumers. They keep their
cost and price low by designing similar stores and centralizing buying
merchandising advertising and distribution.
3) War mart typifies stores that feature a broad line and low value
added.they focus on keeping prices low so that they have an image of
being a place for good buys. They make up for their low margin by
achieving a high volume.
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Non-store retailing:
A though the overwhelming majority of goods and services is sold
through stores nonstore retailing has been growing much faster than store
retailing, amounting to more than 12% of all consumer purchase. Some
observers predict that, as much half of all general merchandise will be
sold through non-store retailing by the end of the century. Non store
retailing falls in to four major categories, direct selling, direct marketing,
automatic vending and buying service. Some observers foresee as much
as third of all general merchandise retailing being done through non store
channels, such as mail order shopping, T V shopping, home computer
shopping via the internet by the end of the century.
Retail Organization:
Although many retail stores are independently owned, an increasing
number are falling under some form of corporate retailing. Retail
organizations achieve many economies of scale. Such as greater
purchasing power wider brands recognition and better-trained employees.
The major types of corporate retailing corporate chain stores. Voluntary
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chain, retailer co-operatives consumer co-operatives franchise
organization and merchandising conglomerates are described.
Retailer marketing decisions:
Retailers today are anxious to find new marketing strategies to
attract and hold customers. In the past, they held customers by offering a
convenient location, special or unique assortments of goods, greater or
better services than competitors, and store credit cards to enable their
buyers to buy on credit. All of this has changed today many stores offer
similar assortment. National brands such as Calvin Klein lzod and lever
now found in most department stores mass merchandise out lets and off
price discount stores. In their drive for volume the national brand
manufacturers placed their branded goods every where. The result has
been that retail stores and other retailers have grown to look more and
more alike.
Service differentiation also has eroded many department stores
have trimmed their service and many discount’s have increased their
services. Customers have become smarter, more price sensitive
shoppers. They do not a reason to pay more for identical brands
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especially when service differences are diminishing nor do they need to
get credit cards have become almost universally accepted by all stores.
For all these reasons, many retailers today are rethinking their
marketing strategy. For example in the face of increased competition from
discount houses and specialty stores department stores are waging come
backward. Historically located in the center of cities many have opened
branches in sub urban shopping centers where parking is plenty and
family incomes are higher. Others are running more frequent sales,
remodeling their stores and experimenting with mail order and
telemarketing. Facing competition from super stores, super markets are
opening larger stores carrying a larger number and variety of items and
up grading their promotional budgets and moved heavily into private
brands to reduce their dependence on national brands and increase their
profit margins.
We will now examine the marketing decision faced by retailers in
the areas of the target market product assortment and procurement
service and store atmosphere price, promotion and place.
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Target market decision:
A retailer’s most important decision concerns the target market
should the store focus on up scale or down scale shoppers? Do the
market is defined want variety assortment depth or convenience? Until
the target market is defined and profiled, the retailer cannot make
consistent decision on product assortment stores décor, advertising
messages and media price levels and so on.
Too many retailers have not clarified their target market they are
satisfying none of them well. Even seals which service so many different
people must define better which groups to make its major target
customers so that it can fine tune its product assortment prices locations
and promotions to these groups.
Some retailers have defined their target market quite well.here are
two prime examples whose founders are among the richest men in the
United States.
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Product Assortment & Procurement Decision:
The retailer’s product assortment must match the target market’s
shopping expectations. In fact it becomes a key element in the
competitive battle among similar retailers. The retailers have to decide on
product assortment breadth (narrow or wide) and depth (shallow or deep).
thus in the restaurant business, restaurant can offer a narrow and shallow
assortment ( small lunch counters) a narrow and deep assortment
(delicatessen), a broad and shallow assortment (cafeteria) or a broad and
deep assortment (large restaurant ). Another product assortment
dimension is the quality of the goods. The customer is interested in
product quality as well as product range.
The retailer’s real challenge begins after the stores product
assortment and quality level has been defined. There will always be
competitors with similar assortment and quality. The challenge is to
develop product differentiation strategies for retailers.
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Feature some exclusive national brands that are not available at
competing retailers. Thus shops might get exclusive right to carry the
dresses of well known international designer.
1) Feature mostly private branded merchandise: Benton and the gap
design most of the clothes carried in their respective stores. Many
supermarket and chain are carrying an increasing percentage of
privates branded merchandise.
2) Feature blockbuster distinctive merchandise event: Bloomingdale’s will
run month long shown featuring the goods of another country. Such as
India or china throughout its stores.
3) Feature surprise or ever chaining merchandise: Benetton changes
some portion of its merchandise every month so that customer will
want to drop in frequently. Loehmann’s offers surprise assortments of
distress merchandise (goods that the owner must sell immediately
because it needs cash) over stock and close outs.
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4) Feature the latest or newest merchandise first: the sharper image will
lead other retailers in introducing the newest electronic appliance from
around the world.
5) Offer merchandise customizing services: Harrod’s of London will make
custom-tailored suits, shirts and ties for customers in addition to their
ready made men’s wear.
6) Offer a highly targeted assortment: Lane Bryant carries goods for the
larger women. Brookstone offers unusual tools and gadgets for the
persons who want to shop in an “adult toy store”.
Once the retailer decides on the product assortment strategy, the
retailer must decide on procurement sources policies and practices. In
small businesses the owner usual handles merchandise selection and
buying. In large firms buying is a specialized function and full time job.
Consider supermarket in the corporate headquarter of a super
market chain special buyers (sometimes called merchandise managers)
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are responsible for developing brand assortment and listening to new
brand presentations by sales persons. In some chain these buyers have
the authority to accept or reject new item. In other chains, they are limited
to screening obvious rejects and obvious accepts they bring other items
to the chain store buying committee for approval.
Even when an item is accepted by a chain store buying committee,
individual stores in the chain may not carry it. According to one
supermarket chain executive “no matter what the sales representatives
sell or buyers buy, the person who has the greatest influence on the final
sale of the new item is the store manager”. In the nations chain
supermarkets two third of the new items accepted at the warehouse are
ordered on the store manager’s own decision and only one third
represents required stocking by headquarters.
Manufactures face major challenges trying to get their new item
onto store shelves. They offer the nation’s supermarket between 150 and
250 new item each week of which store buyers reject over 70 percent.
Store buyers also delete one item for every new item since store space is
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at a premium. For this reason, manufactures are very interested in
knowing the acceptance criteria used by buyers, buying committee and
store managers A C Nicalson company asked store managers to rank on
three point scale. The important of different elements influenced their
decision to accept a new item. They found that buyers are most
influenced (in order of importance) by strong evidence of consumer
acceptance, a well designed advertising and sales promotion plan, and
generous financial incentives to the trade.
Retailers are rapidly improving their procurement skills. They master
the principles of demand forecasting, merchandise selection. Stock space
allocation and display. They are using computers to track inventory
compute economic order quantities prepare orders and generate print out
of the dollars spent on vendors and products. Supermarket chains are
using scanner data to manage their merchandise mix better on a store-
by-store basis. for example public and Florida has installed large floral
departments in its stores in high-income areas than in low-income areas.
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Stores are also learning to measure Direct Product Profitability
(DPP). Which enables them to measure products handling costs from the
time it reaches their warehouse until a customer buys it and takes it out of
their retail store. DPP measures only the direct cost associated with
handling the product receiving. Moving to storage paperwork, selection,
checking, loading and space cost. Resellers who have adopted DPP learn
to their surprise that the gross margin on a product profit. For example
some high volume products may have such high handling cost that they
are less profitable and deserve less shelf space than some low volume
products.
Clearly manufactures and vendors are facing increasing
sophisticated retail buyers, vendors thus need to understand the retailers
changing requirements and to develop competitive attractive off that help
retailers serve their customers better.
Price decision:
The retailers prices are a key positioning factor and must be decide
in relation to the target market the product and service assortment mix,
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and competition. All retailers would like to charge high mark ups and
achieve high volume but usually the two-do not go together. Most retailers
fall into the high mark up lower volume group (fine specialty stores) or the
low mark up higher volume group (mass merchandise and discount
stores). Within each of these groups there are further gradations. Thus
X’s on Redeo Drive in Beverly Hills prices suits starting at $1000 and
shoes at $400 fall in excess of the prices of fine department stores. At the
other extreme 47th street photo in New York City is a super discounted of
well-known branded merchandise pricing below even normal discounters
and catalog houses. Some brands such as the tag line of appliances.
Retailers must pay attention to pricing tactics most retailers will put
low price on some item to serve as traffic builders or loss leaders. They
will run storewide sales on occasion. They will plan markdowns on slower
moving merchandise. For example shoe retailers expect to sell 50% on
their shoes at the normal mark ups, 25% at a 40% mark up and the
remaining 25% at cost.
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A growing number of retailers have abandoned sales pricing in favor
of every day low pricing. EDLP could lead to lower advertising costs,
greater pricing stability and higher retail profits. General motors Saturn
division, dealers refuse to bargain one of the wal mart’s major customer
appeals is its every day low prices. In 1989, sears introduced ELDP only
to abandon it a year later because its costs could not support the EDLP
initiative. Feature cities a study showing that supermarket chains
practicing every day low pricing are often more profitable than those
practicing sales pricing
Coughlan and Vilcassim believe that in a duopolistic retail market
with no retail differentiation a sales price retailer will eventually be forced
to become an EDLP retailer if it is facing an EDLP competitor. Both firms
would be unable to make above normal profit because of competitive
price pressure. Both firms will be tempted to run occasional sales in the
hope of gaining a temporary advantage.
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Promotion Decision:
Retailers use a wide range of promotion tools to generate traffic and
purchases. They place ads run special sales, issue money saving
coupons and more recently have been adding frequently shoppers
program in store food sampling and coupons on shelves or at check out
points. Each retailer must use promotion tools that support and reinforce
its image positioning. Fine stores will place taste full-page ads in
magazines such as vogue and harpers. They will carefully train their sales
people in how to treat customers, interpret their needs and handle
complaints. Off price retailers will arrange their merchandise to promote
the idea of bargains and large saving while staining on service and on the
floor sales assistance.
Price decision:
Like real estate agents, retailers are accustomed to saying that the
three keys to success are location and location. For example customer
primarily choose the nearest bank and gas station. Department store
chains oil companies and fast food franchisers must exercise great care
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in selection location. The problem breaks down into selection region of
the country in which to open outlets, then particular cities, and then
particular sites. A supermarket chain for example might decide to operate
in the Midwest and Southeast, within the Midwest, in the cities and
suburbs of Chicago, Milwaukee and Indianapolis and within the Chicago
region in14 location mostly suburban. Two of the savviest location expert
in recent years have been the off price retailer T.J. Maxx and toy store
giant toys R us. Both retailers put the majority of their new locations in
areas with rapidly growing numbers of young families. The undisputed
winner in the “place race” is Wal-Mart, whose strategy of being the first
mass merchandiser to locate in small and rural markets has been one of
the key factors in its phenomenal success.
Large retailers must wrestle with the problem of the whether to
locate several small stores in many locations or a few large stores in
fewer locations. Generally speaking the retailers should locate enough
stores in each city or region to gain promotion and distribution economies.
The larger the individual stores, the greater there trading area or reach.
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Retailers have a choice of location their stores in the central
business district, a regional shopping center, a community shopping
center a shopping strip or within a larger store.
Central business districts represent the oldest and most heavily
trafficked city area often known as “downtown”. Store and office rents,
such as Detroit’s have been hit by a flight to the suburbs. The result
has been a deterioration of down town retailing facilities with the
remaining retailers catering to a lower income group of shoppers.
Regional shopping centers are large suburban malls containing 40 to
over 200 stores. they usually draw customers from a five-mile to
twenty-mile radius. Typically, the malls feature one or two nationally
known anchor stores, such as J.C Panneyor Lord and Taylor and a
great number of smaller stores many under franchise operation. Malls
are attractive because of generous parking one stop shopping
restaurants, and recreational facilities. Successful malls charge rents
and may get a share of the mall stores profits.
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Community shopping centers are smaller malls typically one anchor
store and between 20 and 40 smaller stores.
Strip malls (also called shopping strip) contain a cluster of stores
usually housed in one long building, serving a neighborhood’s normal
needs for groceries, hardware, laundry and gasoline. They usually
serve people within a five month to ten-minute driving range.
A location within a larger store describes a growing phenomenon in
which certain well known retailers- McDonald’s, Starbucks, Nathan’s,
Dunkin Donuts- are locating new smaller units as concession space
within larger stores or operations, such as airports, schools wal-marts
and caldors.
In view of the relationship between high traffic and high rents,
retailers must decide on the must advantageous location for their outlets.
They can use variety of methods to assess location, including traffic
counts several models for site location have also been formulated.
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Retailers can assess a particular store’s effectiveness by looking
at four dictators.
1) Number of people passing by on an average day.
2) Percentage who enter the store.
3) Percentage of those entering whom buy.
4) Average amount spent per sale.
A store might be doing poorly for several reasons: it is in a poorly
trafficked location, not enough passers by drop in too many drop ins
browse but do not buy, or the buyers do not buy very much. Each
problem can be remedied.poor traffic is remedied by a better location;
drop ins are increased by better window displays and sales
announcements; and the number buying and the amount purchased
are largely a function of merchandise quality, price and personal selling
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Trends in retailing:
At this point, we can summarize the main development that
retailers need to make to take into account as they plan their
competitive strategies.
New retail forms:
New retail forms constantly emerge to threaten established
retail form. A New York bank will deliver money to its important
customers offices or homes. Adelphi College offers, “ commuter train
classroom education “ in which business people commuting between
long island and Manhattan can earn credit towards an M B A degree.
American Bakeries started Hippopotamus Food Stores to allow
customers to buy institutional size packages at savings of 10 to 30%.
One “ new “ and very lucrative form of retailing is actually a revival of
the oldest form of retailing; push cart peddlers.
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Shortening retail life cycle:
New retail forms are facing a shortening life span. They are
rapidly copied and quickly lose their novelty.
Non-store retailing:
The electronic age has significantly increased the growth of
non-store retailing. Consumers receive sales offer over their television,
computers and telephones to which they can immediately respond by
calling a free number or via computer.
Increasing intertype competition:
Competition today is increasingly intertype or between
different types of outlets. Thus we see competition between store and
non-store retailers. Discount stores catalog showrooms and
department stores all compete for same consumers.
The competition between chain superstores and smaller
independently owned stores has favorable particularly heated.
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Because of their bulk buying power, chains get favorable terms than
the independents, and the chain outlets increased square footage
allows them to put in such amenities as cafes and bathrooms for their
customers. In many locations the arrival of a superstore has forced
nearby independents out of business. In the book selling business, for
example, Barnes and Noble superstores and Borders books and music
have sometimes located within blocks of independent bookstores,
resulting in struggles or eventually in closings of those smaller stores.
Yet the news is not all bad for smaller companies. Many small
independent retailers are thriving. Independents are finding that sheer
size and marketing muscle are often no match for the personal touch
small stores can provide or the specialty niches that small stores can
fill for a devoted customer base.
Polarity of retailing:
Increasing intertype competition has produced retailers
positioning themselves on extreme ends of the number of product lines
carried. High profitability and growth have been achieved both by mass
merchandiser like Kmart and specialty stores like Radio shack.
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Giant retailers:
Superpower retailers are emerging through their superior
information systems and buying power, these giant retailers able to
offer strong price savings to consumers.
Growth of vertical marketing systems:
Marketing channels are increasingly becoming professional
managed and programmed. As large corporations extend their control
over marketing channels, independent small stores are being
squeezed out.
Portfolio approach:
Retail organization are increasingly designing and launching
new store formats targeted to different lifestyle groups. They are not
sticking to one format, such as department stores, but are moving into
a mix of business that appears promising.
Growth importance of retail technology:
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Retail technologies are becoming critically important as
competitive tools. Progressive retailers are using computers to produce
better forecast, control inventory cost, order electronically from
suppliers, send electronic mail between stores, and even sell to
customers within stores. They are adopting checkout scanning system,
electronic funds transfer, and electronic data interchange in store
television and improved merchandise handing systems.
One innovative scanning system now in use is the shopper
scanner, radar like system that counts store traffic. When a New
Jersey saks fifth avenue used the hours of 11 A M and 3 P M to better
handle the shopper flow, the store varied lunch hours for its counter
clerk. Pier one imports uses the same system to test among other
things, the impact of newspaper ads on store traffic. By combining
traffic and sales data, retailer’s say they can find out how well the
convert’s browsers into buyers.
PRODUCT LAUNCH:
Once a company has carefully segmented the market,
chosen it’s target customer groups, identified their needs, and
determined it’s desired market positioning, it is ready to develop and
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launch appropriate new products. Marketing management plays a key
role in the new product development process. Rather than leave it to
the R & D department to develop new product on it’s own, marketing
department actively participates with other departments in every stage
of the product development.
Every company must carry on new product development.
Replacement products must be created to maintain or build sales.
Furthermore, customers want new products, and competitors will do
their best to supply them. Each year over 16000 new products are
introduced.
The new product development route can take two forms.
The company can develop new products in its own laboratories or it
can contract with independent researchers or new product
development firms to develop specific products for the company.
Only 10% of all new products are truly innovative and new
to the world. These products involve greater cost and risk because
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they are new to both the company and the market place. Thus most
companies new product activity is devoted to improving existing
products, because, new
Product development is the life source of the company’s future.
Given today the prevailing intense competition, companies that fail to
develop new products are putting themselves at a great risk.
WHY DO NEW PRODUCTS FAIL:
Several products may be responsible: those are
1. A high level executive might push a favorite idea through, in
spite of negative market research findings.
2. The idea is good but the market size is overestimated.
3. The actual product is not well designed.
4. The new product is incorrectly positioned in the market, not
advertised effectively, or overpriced.
5. Development costs are higher than expected.
6. Competitors fight back harder than expected.
7. Shortage of important new product idea in certain areas.
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8. Fragmented markets.
9. Social and government constraints.
10. Coastlines of the new product development process.
11. Capital shortage.
12. Faster development.
13. Shorter product life cycles.
Given challenges, what can a company do to ensure the
success
New products?
Number one success factors are a unique superior product for ex-
higher quality new features, higher values in use, and so forth.
Products with high product advantage succeed 98% of the time,
compared to products with a moderate advantage (58% success) or
minimal (18% success).
Another key success factor is well-defined product concept prior
to development, where the company carefully defines and assesses
the target market, product requirement, and benefits before
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proceeding. Other success factors are technological and marketing
synergy, quality of execution in all stages, and market attraction.
Successful new product development requires the
company to establish an effective organization for managing the new
product development process. An effective organization begins with
its top management.
New product development process involves eight stages:
1. Idea generation
2. Idea screening.
3. Concept development and testing
4. Marketing strategy development
5. Business analysis
6. Product development
7. Market testing
8. Commercialization.
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The purpose of each stage is to determine whether the new
product idea should be dropped or move to the next stage. The
company wants to minimize the chances that good ideas will be
dropped or those bad ideas will be developed.
The company must develop an action plan for introducing the
new product into the rollout markets. Notices of product launch
regularly appear in brand week imagines. To sequence and co-
ordinate the many activates involved in launching a new product,
management can use network planning technique. Critical path
scheduling calls for developing the master chart showing the
simultaneous and sequential activities that must take place to launch
the product. By estimating how much time each activity takes, the
planner estimate the completion time for the entire project. Any delay
in any activity on the critical path will cause the project to be delayed.
THE CONSUMER ADOPTION PROCESS:
The consumer adoption process is the process by which
customers learn about new products, try them, and adopt or reject
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them. Today many marketers are targeting heavy users and early
adopters of new products recognizing that specific media can reach
both groups and tend to be opinion leaders. The consumer adoption
process is influenced by many factors beyond the marketers control,
including consumers and organizations willingness to try new
products, personal influences and the characteristics of the new
products or innovations.
STAGES IN ADOPTION PROCESS
An innovation refers to any good, service, or idea. That is
perceived by someone as new. The idea may have long history, but it is
an innovation to the person who sees it as new. Innovation take time to
spread through the social system. The consumer adoption process
focuses on the mental process through which an individual passes from
first hearing about an innovation to final adoption. Adopters of new
products have moved through the following five stages.
1. AWARENESS: The consumer becomes aware of the
innovation but lacks information about it.
2. INTEREST: The consumer is stimulated to see the
information about the innovation.
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3. EVALUATION: The consumer considers whether to try
the innovation or not.
4. TRIAL: The consumer tries the innovation to improve
his estimate of its value.
5. ADOPTION: the consumer decides to make full and
regular use of the innovation.
FACTORS INFLUENCING THE ADOPTION PROCESS:
People differ markedly in their readiness to try products.
Personal influence plays a large role in the adoption of new products.
The characteristics of the innovation affect its rate of adoption.
Like people, organizations vary in their readiness to adopt an
innovation.
Each stage of product life cycle calls for different
marketing strategies. The introduction stage is marked by slow growth
and minimal profits as the product is pushed into distribution. During
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this stage the company has to decide strategies of rapid skimming or
slow skimming, rapid penetration or slow penetration. It must also
decide when to enter into the market : market pioneers may have a
strong advantage. If successful the product enters a growth stage
marked by rapid sales growth and increasing profits. Then company
attempt to improve the product, enter the new market segments and
distribution channels and reduce its price slightly. There follows a
maturity in which sales growth slows and profit stabilize. The company
seeks innovative strategies to renew sales growth, including market
product and marketing mix modification. Finally , the product enters a
declining stage in which little can be done to halt deterioration of sales
and profits. The companies task is to identify the truly weak products,
develop for each one a strategy of continuation, focusing, or milking:
and finally phase out weak products in a way that minimizes the hard
ship to company profits, employees and customers
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3.1 COMPANY PROFILE
WIPRO is an integrated corporation that offers diverse range of
products. solution and service in system software, consumer care
health care, lighting and information technology they are driven by
their passion for quality and their commitment to consumers. this drive
has captured among ten most admired companies in India. Through
constant innovation and a people first attitude they strive to assume
leadership position in all over business in new mellienimum.
In the year 1947 many Indian challenged made and rewrote
history in that year India’s independence,32 year old m.H.Premji
owner of the fledging western India vegetables, oil mill at Maharastra.
Mr. Azim H Premji joined Wipro in 1966 at the age of 21.Under
his leadership, a Rs.70 million company manufacturing hydrogenated
cooking fats grew into a $500 million diversified, integrated
Corporation in Services, Technology Products and Consumer
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Products. Besides proving to be the leader in its segments of business
interests.
A role model for young entrepreneurs across the world, Mr.
Azim Premji has integrated the country's entrepreneurial tradition with
professional management, based on sound values and
uncompromising integrity.
Mr. Azim Premji's strength lies in bringing together and building
charged teams of high potential-high performing people. His vision
and pragmatism has helped Wipro Corporation to become the #2
most competitive and successful company in India (as rated by
Business Today, a leading business magazine in India). Today, Wipro
in terms of market capitalization is among the top 10 Corporations in
India.
Mr. Premji very strongly believes that faithful adherence to core
values, a shared vision for the future, and identification and
development of Wipro leaders through clearly defined Wipro Leaders'
Qualities have contributed greatly to Wipro's success.
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A hands-on business leader setting standards of excellence in
everything that the Corporation does, Mr. Premji is almost fanatical
about delivering value to customers, sacrificing business and profits to
hold on to "Our Promise".
Mr. Premji was the prime drive behind Wipro's decision to
achieve "Six Sigma" status. In his address to the top management of
Wipro Corporation on May 2 1997, he said, "The end objective of our
'customer-in' concept is that we want to build the voice of the
customer in our products and services. This is opposite to the concept
of 'product-out', which is the way the world has been operating for
some time." In this journey of achieving the near defect-free products
and services, Mr. Premji is very clear that as a world-class
organisation, what Wipro needs to be concerned about is the process,
not merely the results!
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P S Pai heads Wipro's oldest Business Unit and is in charge of
the branded products business of Wipro. Pai joined Wipro in 1979. He
contributed significantly to the brand building of Sunflower, Santoor,
Wipro Shikakai, Wipro Baby Soft and Wipro Lighting products. He also
helped build one of the largest distribution systems in the country.
Pai took over as Vice Chairman, Wipro Limited and Executive
Officer of the Group in 1999 and prior to that he was the Group
President.
Suresh Senapaty completed his Chartered Accountancy (CA)
from Mumbai in 1979 and is now a Fellow member of the Institute of
Chartered Accountants (FCA). Joining Wipro in 1980, after a brief stint
with Lovelock and Lewis, he quickly rose to become the Chief
Financial Officer of Wipro Consumer Care in 1982, a position he held
close to a decade.
During his tenure, Wipro Consumer Care witnessed an
enormous growth from one factory to three factories, from a single
product to multiple products including toilet soaps and toiletries; and
from operations in three states to all states in India. He was involved
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in the very first acquisition of Wipro, a plant in Bhavnagar in the state
of Gujarat in India. The role gave him a first hand experience of
managing growth and acquisition.
In 1992, Suresh moved to Wipro Infotech as Vice President-
Finance. He also looked after Legal, Business Planning, Treasury and
Controllership. Initially, he was in-charge of the domestic hardware
business but his role expanded to cover the overseas software
business of Wipro Infotech, which was called Wipro Systems those
days. In 1995, he took over as CFO for the entire Wipro Corporation,
a position he holds till date. In this role, Suresh has accomplished a
number of significant milestones for Wipro Corporation. His first
assignment was the merger of various companies such as Wipro
Infotech and Wipro Systems with Wipro Ltd.
The market capitalization of Wipro Corporation has seen a huge
growth from less than half a billion US dollars in 1995 to close to 8
billion US dollars at present. From less than 1000 shareholders, Wipro
Ltd. has over 58,000 shareholders. He has been able to introduce
proactively the latest international accounting practices into Wipro like
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segment reporting, consolidation of accounts long before it became a
law in India. He has built expertise and charged, committed teams
under him. Among others, he has brought tremendous focus on the
Internal Audit function and the Treasury function to make them major
differentiators for the Corporation. The Internal Audit department of
Wipro is the only one in the country to be certified as compliant with
ISO 9001. The Investor Relations function, which is a part of the
Treasury, won the international Hamilton Alexander Award for
Excellence. Suresh played a key role in the New York Stock
Exchange Listing in 2000. This is the second time in the history of
Wipro that it accessed the capital market, the first time being as early
as 1946.
Quality is fast becoming a word customers want to hear more
often than they used to before. No longer is Quality perceived to be
just a buzzword in the corporate aisles, it’s touching our customer’s
lives in more ways than we can imagine.
The term Six Sigma is synonymous with world-class quality.
Sigma is a statistical expression that indicates how defect free a
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process or a product is. It indicates the level at which the process is
performed. Higher the Sigma level, lower the number of defects. For
Example: If our defect rate is at Three Sigma level, we make 66,807
mistakes. At Six Sigma level, the defect rate drops to 3.4 mistakes in
a million, an improvement of more than 20,000 times.
Six Sigma, in broad terms, is the methodology to get breakthrough
improvements in products and processes, thereby ensuring Customer
Satisfaction, Employee satisfaction and Business financial success.
Six Sigma in Wipro is an umbrella initiative covering all Business
Units and divisions. It was adopted so that we could transform
ourselves into a world-class organization. This means
Have our products and services meet global benchmarks
Ensure robust processes within the organization
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Consistently meet and exceed customer expectations
Make Quality a culture within
The methodologies under Six Sigma covers all areas of the business
such as Design & development, Manufacturing, Service and all
transactional processes. The Six Sigma methodology brings in a
strong data culture and statistical analysis at all levels of the
organization. It forces the organization to make decisions based on
metrics and measurements that are called Management by facts.
Successful implementation of Six Sigma within Wipro has taught us
several aspects, which can help other organizations significantly if
they decide to embrace Six Sigma as their vehicle for change and
transformation.
Our experience of implementing Six Sigma in diverse areas such as
Manufacturing locations, Services business, Transactional processes
(Non manufacturing / Non technical) and Software development
makes us a unique players in this field. Our consultants are all senior
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Black Belts who are the successful practitioners of Six Sigma. We
have significantly adapted Six Sigma to Indian conditions.
Wipro Infotech
Wipro Infotech is a division of Wipro Limited and provides customers
with high value Information Technology Solutions, Infrastructure,
Services and Platforms in India and is all set to offer high end
Technology Services and Solutions for the Asia Pacific and the Middle
East markets
Wipro Consumer Care and Lighting
Wipro Consumer care and Lighting is the FMCG arm of Wipro Limited
which continuously introduces innovative products and adds value to
existing brands, each of which is the promise of good health and value
for money. Its brands include Santoor, Wipro Shikakai, Wipro Active
and Wipro Baby Soft.
Wipro Fluid Power Limited
Wipro Fluid Power was Wipro’s first diversification in 1975, to address
the hydraulic equipment requirements of mobile original equipment
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manufacturers in India. Over the past 25 years, the Wipro Fluid Power
business unit has become a leader in the Hydraulic Cylinders and
Truck Tipping Systems markets in India. Wipro Fluid Power intends
growing its business by leveraging its dominant market share in India
to serve the global manufacturing requirements of Hydraulic Cylinders
and Truck Tippers.
WiproGEMedicalSystemsLimited
Wipro GE Medical Systems, is a joint venture between Wipro and
General Electric Company. A part of GE Medical Systems South Asia,
it caters to customer and patient needs with a commitment to
uncompromising quality .Wipro GE is the market leader with
unmatched distribution and service reach in South Asia and is India’s
largest exporter of medical systems. Wipro GE pioneered the
manufacture of Ultrasound and Computed Tomography systems in
India and is a supplier for all GE Medical Systems products and
services in South Asia
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ORGANISATION CHART
Chairman
Managing director
Vice president
General manager
Technical R&D Marketing Finance HR
Regional sales Manager
Ares Sales Manager
Sales Officer
Sales Incharge(1) Sales Incharge(2) Sales Incharge(3) Sales Incharge(4)
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DISTRIBUTION CHANNEL
MANAUFACTURING UNIT
SUPER STOCKIEST
AUTHORIZED WHOLE SELLER
RETAILER
CONSUMER
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3.2 PRODUCT PROFILE :
SOAPS
1. Santoor1000gm
2. Santoor 150gm
SHIKAKAI SOAP
1. Baby soft
2. Baby soap (milk and almond)
3. Baby soap (olive and Lanolin)
4. Baby tale
5. Baby oil
6. Diapers
7. Nappi pad
8. Feeding bottle
9. Feeder cum sipper
10. Ample cup
11. Bottle cleaning brush.
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VANASPATI
1. Sunflower 1 kg
2. Sunflower 500gm
3. Sunflower 200kg
LIGHT
1. Wipro Bulb 100wt
2. Wipro Bulb 60 wt
3. Wipro Bulb 40wt
4. Wipro milky bulb
5. Wipro florecent Bulb
GLUCOSE
1. Glucovita
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Analysis and interpretation of Data
Table No.1
Table showing the number of different outlets dealing which glucose.
Types of outlets No. of respondents Percentage
Medical stores 73 36.5
Departmental stores 48 24
Kirana stores 68 34
Others 11 5.5
Total 200 100
From the table it was inferred that out of 200 responds, there were
36.5%medical stores, 34% of the kirana stores,24% of departmental
stores, and 5.5% of others dealing with glucose is their respective
area.
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Doddappa Appa Institute for MBA
Table No.2
Table showing number of respondents dealing with various brands of
Glucose
Brands of Glucose Percentage
Dabur 80
Heinz 68
Glaxo 62
Wipro 60
Others 100
From the above table it was inferred that in and around of bellary dist.
100% deal with Glucomin, 80%,68%,62%and 60%. Dabar, Hienz,
Glaxo, and Wipro respectively. In others words it can be said that
almost all respondent dealing with Wipro brand of Glucose.
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Doddappa Appa Institute for MBA
Table No. 3
Table showing respondents opinion towards sales of various brands
with respect to volume.
Brands Low % Average % High % Total
Wipro 61 4 65%
Dabur 15 45 20 90%
Hienz 34 28 6 68%
Glaxo 35 27 62%
Other 36 58 94%
total 145 140 84
Form the above table it was found that 94% of the respondents sold
glucomin more, and 90% sold Dabur, 68% and 62% said Heinz and
Glaxo respectively.
But only 62% Wipro in the market.
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Doddappa Appa Institute for MBA
Table No 4
Table showing the factors that influence the respondents to deal with
particular brand of glucose
Sr. No. Influencing factor Percentage of respondents
1 Profit margin 81.5
2 Brand name 5
3 Offers 2.5
4 Credit facilities 11
5 Consumer demand -
6 Others -
The above table furnished that the 81.5% of respondents give
importance to profit margin, 11% of them gave importance to credit
facilities, 5% and 2.5% of them were giving importance to brand name
and offer respectively.
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Doddappa Appa Institute for MBA
Table No 5:
Table showing the number of respondents dealing with glucose;
From the above table it was found that 60% of the respondents were
dealing with glucose and 40% are not dealing.
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Opinion num of
respondents
yes 120 60%
no 180 40%
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Table No 6:
Table showing respondents rate glucovita on the following
parameters
Sr. no Rating
Parameter
Excellent(%) Good (%) Poor(%)
1. Brand
Awareness
10 93 17
2. Quality 72 43 5
3. Taste 34 52 34
4. Price 38 82
5. Packaging 22 98
6. Visibility 12 108
From the above table it was found that 100% respondents rate
glucovita regarding different parameters.
96% brand awareness was good.
72% quality was excellent.
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52% taste was good.
82% price was poor.
96% packaging was poor.
108% visibility was poor.
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0
20
40
60
80
100
120
Par
amet
erB
rand
Aw
aren
ess
Qua
lity
Tas
teP
rice
Pac
kagi
ngV
isib
ility
1 2 3 4 5 6
Excellent(%)
Good (%)
Poor(%)
Doddappa Appa Institute for MBA
Table No 7:
Table showing retailers opinion towards the margin of different brands
:
The above table furnished that the respondents opinion towards
margin of different brands. 119 respondents agreed that glucomin
margin was high, 33 respondents dabur, 28 respondents Heinz, and
17 respondents about Glaxco, only 3 respondents agreed towards
Wipro margin level.
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Sl.no Brands Number of respondents
1. Wipro 3
2. Heinz 28
3. Dabur 33
4. Glaxco 17
5. Others (glucomin) 119
Number of respondents
020406080
100120140
Wipro
Heinz
Dabu
r
Glaxc
o
Othe
rs(gl
ucom
in)
Number ofrespondents
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Table No 8:
Table showing the packet size that consumer usually asks:
Sr.no Packet size Respondents
1. 50gms 139
2. 100gms 61
From the above table it was found that 139 respondent were selling
50 gm pack and 61 respondents were selling 100gm pack size to
customers of glucose.
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Table No 9:
Table showing respondents dealing with company brands
From the above table, it was found that 160 respondents were selling
glucomin along with Glucovita, 31 respondents were selling Dabur
along with Glucovita and 9 respondents were selling Heinz with
glucovita.
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s.no Competitor brands Respondents
1 Dabur 31
2 Heinz 9
3 Others (glucomin) 160
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Table No 10 :
Table showing retailers opinion of consumer preferences towards
Glucovita with respect to competing brands:
Sl.No Preference No.of respondents
1 Very high 0
2 High 3
3 Not so high 78
4 weak 39
From the above table it was found that 78 respondents gave not so
high, 39 gave weak and only 3 respondents responded Glucovita to
be high.
Doddappa Appa Institute for MBA
03
78
39
0
10
20
30
40
50
60
70
80
90
Very high High Not so high weak
Preference
No
. o
f re
sp
on
den
ts
Doddappa Appa Institute for MBA
Table No 11:
Table showing receipt of periodic information from the company
The above table furnished that 168 respondents were getting
information about the product but only 32 respondents not received
any information from the company with respect to product.
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Responses No of respondents
Yes 168
No 32
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Respondent
0
20
40
60
80
100
120
140
160
50gm 100gm
packet size
No
. o
f re
sp
on
den
ts
Respondent
Table No 12:
Table showing respondents opinion towards rate of purchased
preferred by consumers
From the above table it is observed that 49 respondents prefer
weekly, 44 respondents fortnightly, 75 and 32 of them were yearly.
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S
NO
Period No of
respondents
1 Weekly 49
2 Fortnightly 44
3 Monthly 75
4 Yearly 32
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Table No 13:
Table showing respondents opinion towards company salesman visit.
Period No. of respondents
Weekly 71
Fortnightly 53
Monthly 47
Yearly 29
From the above table it was inferred that 71 respondent agreed of
visiting salesman weekly, 53 agreed of fortnight, 47 and 29 agreed
monthly and yearly respectively.
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Doddappa Appa Institute for MBA
Table No 14:
Table showing opinion about promotion activities.
Sales promotion No. of respondents
1 Gift 21
2 Window 35
3 Free samples 42
4 Price discounts 86
5 others 17
The above table shows 86 respondents getting price discounts form
companies. 42 retailers getting free samples followed by 35 window
display, 21 gift and 17 others.
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FINDINGS, CONCLUSION AND SUGGESTION
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5.1: FINDINGS
On an analysis and evaluation of the data collected from the retailers,
the following findings were found.
Findings:
1. The study was well represented by adequate number of dealers
who have spread in different locality in the city.
2. Only few retailer outlets received the product.
3. Most of the retailers were not aware of the product. Medical
stores and other departmental stores are the only places where
the movement of Glucovita is high and to some extent moderate
(not so high ).
4. Dabur, Heinz & local company were the competitor to Glucovita.
5. Retailers were receiving enquiries regarding the product.
6. The promotional strategy of the company is not efficient with
compared to other product.
7. Most of the retailer had the opinion that the company may not
supply the product regularly.
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8. Most of the retailers had the opinion that the company should
take the promotional measures such as gift for the new product.
5.2 CONCLUSION:
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From this study it has been found that the market for glouse is not
mush in demand as it deals with the health care in FMCG’S sector and
the costumers does not pay mush interest regarding the brands of glouse
so it does not affect the purchasing division, but still due to some
percentage of demand by the customers the retailers try to push the local
brand as it fetch good margin as compared to the branded glouse
product.
More over the retailers resist accepting the Glucovita as they are
not aware so as the customer if the company create an promotion
activities it may boom the sales as the main target is the costomer who
has to propects for the this product.
5.3 SUGGESTIONS:
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1. The company should make an arrangement to penetrate in more
outlets so that the new product awareness can be created.
2. The company should not only concentrate on medical stores
and departmental stores but also target other retail outlets.
3. As compared to the competitors the margin of glucovita is very
low so company should consider of providing well margin to the
retailers in the product.
4. Customer relationship management concept should be applied
to gain the trust of the retailers.
5. Promotional activities like free gifts, tour package, etc should be
introduced which will encourage the retailer.
6. Company should concentrate in window display of the product
on the retailer’s shelf.
7. Holding and wall painting should be displayed for the products to
create awareness in the mind of consumers.
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