project work
TRANSCRIPT
ACKNOWLEDGMENT
This is the matter of great pleasure as well as great privilege and pride for me to present this project report. This project became possible only due to full cooperation and sincerity provided by the Company and institute as well. I am indebted and thankful to the management of ITC Limited for providing me an opportunity to work in this esteemed and flourishing organization.
I am very much grateful to Dr. Sushil Jha,lecturer,L.N.M.I,Patna who had been my guide in the preparation of this report and give the permission to do this project in this esteemed organization. I would like to thank to Mr.Vikrant Suri (Marketing manager) & Mr. Rahul Ranjan,executive in ITC LTD for their unparallel guidance in the subject throughout my training period. Last but not the least; I want to extend my love and affection to my friends in ITC Limited for their helpful hands towards me.
I would like to take this opportunity to express my most sincere gratitude towards all my faculty members Whose classroom teaching helped me to develop insights into the marketing concepts in general.
I also thank the vendors and local retailers approached by me and the Respondents in the process of collecting information.
My heartiest thanks also go to my family and friends who gave me cooperation whenever needed.
NISHIKANT KUMAR
STUDENT DECLARATION
I,NISHIKANT KUMAR student of BBA OF JIET here by declare that the ‘Project Report’ titled
“COMPARATIVE STUDY OF VIVEL SOAP WITH OTHER BRAND’S”
is completed and submitted under the guidance of Mr. RAHUL (Area Executive) ITC LTD., PATNA.
The imperial findings and conclusion in report are based on the data collected by me and the entire project work is not a reproduction of any source.
DATE
NISHIKANT KUMAR (SIGNATURE)
PREFACE
Training as we know, is essential to supplement theoretical knowledge with practical one and to inculcate efficiency .Due to this reason summer training in professionally managed organization has been made an integral part of the syllabus of MBA course.
In the above-mentioned context I had the privilege of getting this practical training at ITC Ltd., Patna Branch. The training was in the field of marketing management, involving to find out ”market potrntial share and recommendations for ITC’s conflectionary particularly in Patna”
In order to gather required information’s surveyed almost every nook and corner of the markets of Patna and compiled the data.
This project report is hereby submitted for the partial fulfillment for the award of degree of master business administration, which will presumably prove useful to the management of the ITC too.
Sr. No. Contents
1 . EXECUTIVE SUMMARY
2. ABOUT PERSONAL CARE PRODUCTS
3. ITC HISTORY
4. ITC LEADERSHIP
5 ITC STRATEGY
6. ABOUT VIVEL SOAP
7. CIGAREETE DIVISION
8. STUDY OF SELECTED RESEARCH
PROBLEM
9. DATA ANALYSIS
14. FINDINGS
15. RECOMMENDATION
16. ANNEXURE
17. BIBLIOGRAPHY & QUESTIONNAIRE
INTRODUCTIO
EXECUTIVE SUMMARYThe study “A comparative study of ITC personal care product
and its competitor brands” is mainly concerned with the retail
market in Patna. I had gone through some number of retail
outlets in every area comprising big or small and tried to cover
major area in Patna. One of the reason for this study had been
to understand and to find out the position of ITCs personal care
product in the market and to know what is the distribution
channel through which the retailers get the personal care
products of ITC LTD.As retailers are the last intermediary in
distribution channel who delivers the products to the final
consumer and they very much depends upon the retail
markerts to get the desired product.
In the first part of my study, I prepared a
questionnaire to know the visibility,availability and demand and
salesman visits of ITC personal care products in comparison to
its competitor brands.And on that basis I came to know which
brand in personal care product is more in demand by the
customers and where ITCs product stands in the market.
In the Second part of my study, I had focused on retailers
perception about ITCs personal care products and other
competing brands,theirs margin on ITC products.
In the Third part of my study,I tried to get insight into the
strategies of leading players of personal care product………
It has been observed through the study that the retail market
has great potential in Patna.
OBJECTIVE OF STUDY
• To find out the availability of different organized brands in the retailer market as well as in retail market.
• To find out margin of the retailers.
• To study the retailer perception towards different organized brands of personal products.
• To find out retail market potential.
• To find out market potential.
• To find out market share of ITC in retail market.
• To find out distribution strategy of perfects.
• To find out schemes available for the retailers.
• Recommendation and suggestion for ITC’s personal care product.
SCOPE:The study tittled “A Comparative study of ITC’s personal care products distribution with others organized players with special reference to retailers” was in Patna areas.I survey 250 retailers.
The project is limited to Patna and surrounding areas in the duration from 1 June 2010 to 31st July 2010.
The finding are based on the responses given by the retailers , the finding should not be considered universally applicable.
LIMITATION OF STUDY :
Due to time constraints the survey study was limited to 250 retailers only.
The survey was conducted in Patna only.
ABOUT PERSONNEL CARE PRODUCTIn Line With I.T.C’S Aspiration To Be India’s Premier FMCG Company,Recognized For Its World- Class Quality And
Enduring Consumer Trust,I.T.C Forayed Into The Personal Care Business In July In 2005.In The Short Period Since Entry,I.T.C 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,I.T.C’s Personal Care Portfolio Brings World-Class Products With Clearly Differentiated Benefits To Quality-Seeking Consumers.
I.T.C’s Personal Care Portfolio Under The Essenza Di Wills,Fiama Di Wills,Vivel Di Wills Vivel Ultra Pro,Vivel And Superia Brands Has Received Encouraging Consumer Response And Is Being Progressively Extended Nationally.
I.T.C’s State Of The Art Manufactucturing Facility Meets Stringent Requirements Of Hygiene And Benchmarked Manufacturing Practices. Contamporary Technology And The Latest Manufacturing Processes Have Combined 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 Meets The Consumer’s Stated And Annate Needs.The Product Formulations Use Internationally Recognized Safe Ingredients,Subjected To The Highest Standards Of Safety And Performance.
ITC TRIES TO FIND ITS FEET IN PERSONAL CARECigarettes to hotel major ITC entered the consumer products business in 2007 . in three years, it has managed to corner a two per cent market share.
But ITC feels that’s no mean achievement for a late entrant . The consumer and personal care products market is highly competitive, dominated by well-entrenched brands from companies such as Hindustan Unilever (HUL) procter and gamble, L’Oreal India , Dabur India and cavin Care . The lion’s share is with HUL ,whose brands –Lux,Dove,Sunsilk and Clinic Plus- have about half the market .
Anand Shah of Angel Broking says it takes about five years for a brand to break even. If ITC gains 5% to10% market share in ten years, that should start earning the company profits, Shah adds.
In absolute terms, two percent of the personal care market is not a small share. According to Nielsen, the personal Carew market between March-2009 and February 2010 touched Rs 16,313 crore,which iod\s a growth of 10% over the same period in the previous year .while the men’s personal care market is estimated at Rs 14,29 crore and growing at 10%,that for women is worth Rs 6,678 crore and growing at nearly 21%.
ITC knows it’s a tough fight and willing to give time. Innovation and extensive marketing are the company’s mantra to strengthen it’s footprint in the personal care domain.
“We intend to build on innovations to find a foothold in the already cluttered personal care market,” says Sandeep Kaul ,chief executive of ITC’s personal care business. The Fiama Di Wills transport gel bathing bar is an example of product innovation which is developed with liquid crystal freezing technology that intends to combine a shower gel in a bathing bar format. ITC’s current personal care portfolio includes soaps,shampooa and fragrances. These products are marketed undr the Fiama Di Wills, Superia and Vivel brands.Superia caters to the mass consumer segment,Vivel targets the premium and Fiama the so-called super-premium market.
According to Kaul, the personal care sector holds immense appeal for ITC due to the category’s size and growth potential.
But the personal care segment in India is immensely competitive. Anand Ramanathan, analyst with KPMG, says, “In categories like soaps, the competition is quite intense. But ITC is likely to combat it bwith it s distribution muscle. however, because of intense competition,ITC would be under margin pressure and so the personal care business for the company would not b as profitable as its other businesses.”
“ITC, however,can recover from the margin pressure to some extent with the help of premium products in niche categories,” Ramana than points out.
Devangshu Dutta ,chief executive of specialist management consultancy firm, Third Eyesight, feels that market leaders like HUL still feels it reaches 60 per cent of the market. So, even a new entrant like ITC can find potential care segment.
“ITC has diversified over the last 10 years as part of its strategy to expand into non-cigarette categories. The real challenge will be effective communication and marketing”, Dutta adds.
Ramanujam Sridhar, CEO, Brand-Comm, says:”There is a reasonable amont of loyalty among consumers for personal care products, especially in skincare, which can pose a challenge for any new entrant, including ITC.
However, ITC enjoys a strong brand recall and its strongest qualifier is its distribution muscle, which should
help the company establish itself in newer categories as well.”
ITC PERSONAL CARE PRODUCTS REVEUE UP 86%
The business made a forey into fast growing and relatively under-penetrated domestic skin care market with the launch of ‘Vivel A ctive Fair Cream’ in June 2010 in select markets.
ITC Persoanl care business continued to make significant progress in gaining consumer franchise with revenues growing up 86% during the quarter .product offerings under the ‘Essenza Di Wills ’
‘Fiama Di Wills’, ‘Vivel Di Wills’, ‘Vivel’ , ‘Superia’ brands continue to focus on enhancing consumer benefits.
The business made forey into the fast growing and relatively under penetrated domestic skin care market with the launch of ‘Vivel Active Fair cream’ in June 2010 in select markets. The product, with its unique “Fair Lock System” seeks to deliver superior benefits in the form of faster and longer fairness & higher levels of sun protection. It has a SPF 15 sun protecting rating.
The business sustained its impressive growth in the soaps category achieving a volume market share of 5%.Product portfolio was enlarged with new offerings in the freshness segment with the launch of ‘Vivel Deo Spirit’.
Currently,brands ‘Vivel’ & ‘Superia’ are each estimated to be more than Rs 200 crore per annum in terms of consumer spend.
The business is investing in building a strong portfolio of products & brands through well-defined research & development strategies backed by the company’s state of the arts R&D Centre.It is also Continously enhancing the quality of engagements with consumers through efficient deployment of media,direct contact and promotional activities across conventional & new age consumer connect avenues.
The business continues to leverage investments in tax –exempt manufacturing facilities at Haridwar(Uttrakhand0 and Manpura(Himachal Pradesh).Apart from fiscal benifits that will acrrue on such investments,this facilities will provide a higher degree of flexibility in manufacturing and ensures higher standard of product quality.
ITC EXPANDS PERSONAL CARE PRODUCT RANGE (14 TH
FEB 2008)
Expanding its portfolio of personal care products,ITC today launched ‘Vivel Di Wills’ and ‘ Vivel’, yet another world class range of soaps for the Indian Consumer.This follows the successof ITC previous launches ‘Essenza Di Wills’, ‘Fiam Di Wills’ and Superia.
Backed by Consumer insights,’Vivel Di WILLS offers a unique value proposition of bringing together ingridients that provides the benefits of nourishment,protection and hydration from a single product.This unique features provide the discerning consumer complete care,thereby enhancing beauty & confidence.
All products have been scientifically developed at ITC R&D centre after four years of extensive research.The products are enriched with Actipro N which have nourishing,protecting&hydrating ingridients.The equisite fragrances for the various products have developed by leading international fragrance houses.
The unique cartoon pack has been developed by ITC’S Design team to provide a novel consumer experience.
The Vivel Di Wills Range is availabler in two variants-
• Vivel Di Wills sheer radiance is enriched with olive oil which provides skin luster &radiance.
• Vivel Di Wills sheer creem is enriched with shea butter which mosturises skin yo make it soft & supple.
The Vivel Range is available in four variants-
• Vivel Young Glow is enriched with Vitamin E & Fruit infusions which provide youthful glow to the skin.
• Vivel Satin Soft is enriched with Vitamin E &Aloe Vera which leaves the skin beautifully soft.
• Vivel Sandal Sparkle is enriched with Sandalwood Oil & Active Clay which helps in providing clear skin.
• Vivel Ayurveda Essence is enriched with multiple Ayurvedic ingredients helping to protect skin from germs 7 harsh environment,keeping it healty &beautiful.
ITCITC was incorporated on August 24, 1910 under the name of
‘Imperial Tobacco Company Of India Limited.’ Its beginnings
were humble. A leased office on Radha Bazar Lane, Kolkata, was
the centre of the Company’s existence.
The Company celebrated its 16th birthday on August 24, 1926, by
purchasing the plot of land situated at 37, Chowringhee, (now
renamed J.L. Nehru Road) Kolkata, for the sum of Rs. 3,10,000. This
decision of the Company was to mark the beginning of a long and
eventful journey into India’s future.
The Company headquarter building, ‘Virginia House’, which came up
on that plot of land two years later, would go on to become one of
Kolkata’s most venerated landmarks. The Company’s ownership
progressively indianised, and the name of the Company was
changed to I.T.C. Limited in 1974.
In recognition of the Company’s multi-business portfolio
encompassing a wide range of businesses-Cigarettes & Tobacco,
Hotels, Information Technology, Packaging, Paperboards & Specialty
Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting
& Stationery- the full stops in the Company’s name were removed
effective September 18, 2001. The Company now stands
rechristened ‘ITC Limited.’
Personal care products have been an important part of our life,
since ages.The Soap industry has been growing at around 10% for
the last three years, while the branded segment is growing at about
30% per annum.
While Indian consumers constantly looking for variety and getting
quality-conscious day by day, high quality soap with an Indian
fragnent would surely be an absolute hit in the market.The company
manufactures a wide variety of soaps having unique ranges as well
as variants to provide nourishment, protection ,moister etc.
In 1957 the company launched its hotels business with the
acquisition of a hotel in Chennai, which was rechristened ITC-
Welcome group Hotel Chola. The objective of ITC’s entry into the
hotels business was rooted in the concept of creating value for the
nation. ITC choose the hotels business for its potential to earn high
levels of
foreign exchange, create tourism infrastructure and generate large-
scale direct and indirect employment. Since, then ITC’s hotels
business has grown to occupy a position of leadership, with over 65
owned and managed properties spread across India.
In 1979, ITC entered the paperboards business by promoting ITC
Bhadrachalam Paperboards Limited, which today has become the
market leader in India. Bhadrachalam Paperboards amalgamated
with the company effective from March 13, 2002 and became a
division of the Company, Bhadrachalam Paperboards Division. In
November 2002, this division merged with the company’s Tribune
tissues division to form the paperboards & Specialty papers division.
ITC’s paperboard’s technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It
has also made an immense contribution to the development of
sarapaka, an economically backward area in the state of Andhra
Pradesh. It is directly involved in education, environmental
protection and community development. In 2004, ITC acquired the
paperboard manufacturing facility of BILT Industrial Packaging
Company Limited (BIPCO), near Coimbatore, TamilNadu. The Kovai
unit allows ITC to improve customer service with reduced lead time
and a wider product range.
In 1985, ITC set up Surya Tobacco Company in Nepal as an
Indo-Nepal and British joint venture. Since inception, ITC, British
American Tobacco and various independent shareholders in Nepal
have held its shares. In August 2002, Surya
Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper
manufacturing company and a major supplier of tissue paper to the
cigarette industry. The merged entity was named the Tribeni tissues
Division (TTD). To harness strategic and operational synergies, TTD
was merged with Bhadrachalam Paperboards Division to form the
Paperboards & specialty Papers Division in November 2002.
Also in 1990, leveraging its agro-sourcing competency, ITC set up
the international business division (IBD) for export of Agro-
commodities. The division is today one of the India’s largest
exporters. ITC’s unique and now widely acknowledged e-Choupal
initiative began in 2000 with soya farmers in Madhya Pradesh. Now
its extends to 7 states covering over 3.5 million farmers. ITC’s first
rural mall, christened “CHOUPAL SAGAR” was inaugurated in
August 2004 at Sehor. The year 2006 witnessed the ramping up of
the company’s rural retailing network with 10 “Choupal Sagar” being
operational in three states of Madhya Pradesh, Maharashtra & Uttar
Pradesh. Nine more “Choupal Sagar” are in an advanced stage of
construction and will be launched shortly.
In 2000, ITC’s packaging & printing business launched a line of high
quality greeting cards under the brands name “Expressions”. In
2002, the product range was enlarged with the introduction of gift
wrappers, autograph books and slam book. In the same year, ITC
also launched “Expression Matribhasha”, a vernacular range of
greeting cards in 8 languages and “Expression Paper Kraft”, a
range of premium stationery products. In 2003, the company rolled
out ‘Classmate’ a range of notebooks in the school stationery
segment.
ITC also entered the Lifestyle retailing business with the WILLS
SPORT range of international quality relaxed wears for men and
women in 2000. The Wills Lifestyle chain of exclusive stores later
expanded its range to include Wills classic formal wear (2002) and
Wills Club life evening wear (2003). ITC also initiated a foray into the
popular segment with its men’s wear brand, John Players, in 2002.
In December 2005, ITC introduced Essenza Di Wills, an exclusive
line of prestige fragrance products, to select ‘Wills Lifestyle’ stores.
In 2006, Wills Lifestyle became title partner of the country’s most
premier event-Wills Lifestyle India Fashion Week- that has gained
recognition from buyers and retailers as the single largest
B-2-B platform for the Fashion Design industry. To mark the
occasion ITC launched a special ‘Celebration Series’ takes the event
forward to consumers.
In 2000, ITC spun off its Information Technology Business into a
wholly owned subsidiary, ITC InfoTech India Limited, to more
aggressively pursue emerging opportunities in this area. In a short
span of 5 years, ITC InfoTech has already crossed over US$ 60
million in revenues.
ITC’s foray into the foods business is an outstanding example of
successfully blending multiple internal competencies to create a new
driver of business growth. It began in August 2001 with the
introduction of ‘Kitchens of India’ ready to eat Indian gourmet
dishes. In June 2002 ITC entered the confectionary, staples and
snacks food segment. In just 5 years, the foods business has grown
to a significant size with 100 differentiated products, 5 distinctive
brands, an enviable distribution reach, a rapidly growing market
share and a solid market standing.
In 2002, ITC philosophy of contributing to enhancing the
competitiveness of the entire value chain found yet another
expression in the safety matches initiative. ITC now markets
popular safety matches brands like- icon, Mangaldeep, Vaxlite, Delite
and Aim.
ITC’s foray into the marketing of Agarbattis (incense sticks) in
2003 marked the manifestation of its partnership with the cottage
sector. ITC’s popular Agarbattis brands include Spriha and
Mangaldeep across the range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
ITC is one of the India’s foremost private sector companies with
a market capitalization of nearly US $ 19 billion* and a turnover
of over US $ 5.1 Billion. ITC is rated among the World’s best Big
Companies, Asia’s ‘Feb. 50’ and the World’s Most Reputable
Companies by Forbes magazine, among India’s Most Respected
Companies by Business World and among India’s Most Valuable
Companies by Business Today. ITC ranks among India’s ’10
Most Valuable (Company) Brands’, in a study conducted by
Brand Finance and published by the Economic Times. ITC also
ranks among Asia’s 50 best performing companies compiled by
Business Week.
ITC has a diversified presence in Cigarettes, Hotels,
Paperboards & Specialty Papers, Packaging, Agro-Business,
Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and
other FMCG products. While ITC is an outstanding market leader
in its traditional businesses of Cigarettes, Hotels, Paperboards,
Packaging and Agro-Exports, it is rapidly gaining market share
even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery.
As one of India’s most valuable and respected corporations’ITC
is widely perceived to be dedicatedly nation-oriented. Chairman
Y. C. Deweshwar 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
shareholders 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-tasted core competencies: unmatched distribution reach,
superior brand- building capabilities, effective supply chain
management and acknowledged service skills in hoteliering.
Over time, the strategic forays into new businesses are
expected to garner a significant share of these emerging high-
growth markets in India.
ITC’s Agri-Business is one of India’s largest exporters of
agricultural products. ITC is one of the country’s biggest foreign
exchange earners (US $ 3.2 billion in the last decade). The
Company’s ‘e-Choupal’ initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering
Indians farmers through the power of the Internet. The
transformational strategy, which has already become the
subject matter of a case study at Harvard Business School, is
expected to progressively create for ITC a huge rural
distribution infrastructure, significantly enhancing the
Company’s marketing reach.
ITC wholly owned Information Technology subsidiary, ITC
InfoTech India Limited, is aggressively pursuing emerging
opportunities in providing end to end IT solutions, including e-
enabled services business process outsourcing.
ITC production facilities and hotels have won numerous national
and international awards for quality, productivity, safety and
environment management systems. ITC was the first company
in India to voluntarily seek a corporate governance rating.
ITC employs over 25,000 people at more than 60 locations
across India. The Company continuously endeavors to enhance
its wealth generating capabilities in a globalizing environment to
consistently reward more than 3, 68,000 shareholders, fulfill the
aspirations of its stakeholders and meet societal expectations.
This over-arching vision of the company is expressively captured
in its corporate positioning statement: “Enduring Value. For the
Nation. For the Stakeholder.”
ECONOMIC PERFORMANCE
• India’s largest FMCG Company.
• Fastest growing food business
• 2nd largest exporter of agric-commodities.
• Account for 2% of country agric-export.
• Gross income of Rs. 16,511 corers ( US $ 3.5 Billion)
• Market capitalizations of Rs.73,207 corers(US $ 16
Billion)
• Foreign exchange earning of US $ 2.5 Billion (1997-
2006)
• Direct Group Employment of 28,000 (Of which 20,000
in ITC) and indirect employment across the value
chain of 5 million people.
• Now business alone support over 120 SME’s across
the country.
SOCIAL PERFORMANCE
• Empowering over 3.5 million framers through nearly
6000 e-choupals covering 3,6000 villages as at November
2006 : 6500 e-choupals covering 38000 villages)
• 41000 hectares greened with 149 million saplings (As
at November 2006:63,000 hectares greened with 254
million saplings)
• 10,277 hectares of drylands irrigated (As at
November 2006 : 15000 hectares)
• 2154 women entrepreneurs created (As at November
2006 : 4867 women entrepreneurs)
• 37000 children covered under rural education (As at
November 2006 : 60000 children)
ENVIRONMENTAL PERFORMANCE
• ITC turns carbon positive ( sequestering /
strong more CO2 than it emits.
• Water positive : four year’s in a
row( creating rainwater harvesting potential
greater than net consumption.)
• Getting closer to zero solid waste discharge
( Through reduction , reuse and 100% recycling)
• ITC Green Centre , Gurgaon : The first
Corporate building in India with LEEC Platinum
Rating.
• ITC’s Bhadrachalam unit : the only
paperboards mill in India producing food grade
ECF (Elemental Chlorine Free) pulp.
ITC constantly Endeavors to benchmark its products, services
and processes to global standards. The company’s pursuit of
excellence has earned its 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, multistakeholder
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 e-Choupal 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
n 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 recognizing 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) 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.
• 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 14001 environment management systems
certification.
• ITC’s cigarette factory in Kolkata is 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 14001 Environment 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 selected 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 in 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/IEC 17025:2005, by National Accreditation Board for
Testing and Calibration Laboratories (NABL). This
certification is awarded for “General requirement for the
competence of Testing & Calibration Laboratories.”
• ITC Chairman Y. C. Deveshwar has received several
honors over the years. Notable among them are:
YEAR AWARD
2007:- SAM/SPG Sustainability Leadership Award conferred at
the International Sustainability Leadership Symposium, Zurich.
2006:- Business Person of the year from UK Trade &
Investment, the UK Government organization that supports
overseas businesses in that country.
2006:- Inducted into the ‘Hall of Pride’ by the 93rd Indian
Science Congress.
2005:- Honoured with the Teachers Lifetime Achievement
Award.
2001:- Manager Entrepreneur of the year from Ernst & Youth
Retail Visionary of the year from Images, India’s only fashion
and retail trade magazine.
1998:- Honorary Fellowship from the all India Management
Association.
1996:- Distinguished Alumni Award from IIT, Delhi.
1994:- Marketing Man of the Year from A&M, the leading
marketing magazine.
1986:- Meridien Hotelier of the Year.
Some of the other notable recognitions are:
• The Stockholm Challenge 2006 for the e-Choupal
initiative. This award is for using Information Technology for the
economic development of rural communities.
• United Nations Industrial Development Organization
(UNIDO) Award at the international conference on Sharing
Innovative Agribusiness Solutions 2008 at Cairo for ITC’s
exemplary initiatives in agri business through the e-Choupal.
• The Corporate Social Responsibility Crown Award for
Water Practices from UNESCO and Water Digest for its
distinguished work carried out in the water sector in India. ITC
also received the National Award for Excellence in Water
Management 2007 in the ‘beyond the fence’ category from
the CII Sohrabji Godreg Green Business Centre for its
leadership role in implementing water and watershed
management practices.
The watershed programme also won the Asian CSR Award
2007 for Environmental Excellence given by the Asian
Institute of Management. The Award recognizes and
honours Asian companies for outstanding, innovative and
world-class projects. The Company also received the Ryutaro
Hashimoto Incentive Prize 2007 for Environment &
Development from the Asia Pacific Forum. This Award aims at
promoting information dissemination of good practices towards
sustainable development in the Asia-Pacific region.
• The Reader’s Digest Pegasus Award for
corporate social responsibility, recognizing outstanding work
done by socially conscious companies.
• The Corporate Award for Social
Responsibility 2008 from The Energy and Resources Institute
(TERI) in recognition of its exemplary initiatives in
implementing
• Integrated watershed development programmes across 7
states in India. The company also won the award in 2004 for its
e-Choupal initiative. The Award provides impetus to sustainable
development and encourages ongoing social responsibility
processes within the corporate sector.
• The ‘Enterprise Business Transformation Award’ for
Asia-Pacific (Apac), instituted by Infosys Technologies and
Wharton School of the University of Pennsylvania for its
celebrated e-Choupal initiative.
• The Best Corporate Social Responsibility
Practice Award 2008 jointly instituted by the Bombay Stock
Exchange, Times Foundation and the NASSCOM Foundation.
• The NASSCOM-CNBC IT User Award 2008 in the Retail
& Logistics category. The Company has been recognized for its
pro-active and holistic approach to IT adoption and the
seamless alignment of IT with business strategy. This is the
fourth time that ITC has won Nasscom’s Best IT User Award
since it was instituted in 2003.
• The Institute of Chartered Accountants of India
Award for Excellence in Financial Reporting with its
Annual Report and Accounts, adjusted as a commendable entry
under the Category ‘Manufacturing and Trading
Enterprises.’
• The Business Today Award for the Best
Managed Company in recognition of its outstanding initiatives
in the consumer products segment.
• The only Indian FMCG Company to have featured in the
Forbes 2000 list. The Forbes 2000 is a comprehensive ranking
of the world’s biggest companies, measured by a composite of
sales, profits, assets and market value. The list spans 51
countries and 27 industries.
• The NDTV Profit Business Leadership Award for being the
Best Food Company of 2007. The Award has been instituted
to recognize organizational excellence.
• The CNBC-TV18’s International Trade Award 2008 for
Outstanding Exporter of the Year in the FMCG & Food
category.
• ITC continues its dominance of ‘The Economic Times’ Brand
Equity listing of India’s 100 Biggest FMCG Brands, with
three brands from its stable making it to the top five. Gold
Flake remains India’s biggest FMCG brand in terms of sales.
Navy Cut
ranks at No. 4. ITC’s Scissors brand ranks at No. 5 and is
the only new entrant into the top 10.
• Restaurant magazine has chosen Bukhara at the ITC
Maurya, New Delhi as the best Indian restaurant in the
world and the best restaurant in Asia. Bukhara has also
been adjusted one of the top 50 restaurants in the world by
the London based magazine ‘The Good Food Guide.’Bukhara
is the only South Asian restaurant to figure in the list.
The “Best Supply Chain Practices Award” for time-
effective and cost-efficient Logistics Management in
Organized Retail to ITC’s Lifestyle Retailing Business Division
(LRBD).
THE ITC LEADERSHIP
Flowing from the concept and the principles of Corporate
Governance adopted by the Company, leadership within ITC is
exercised at three levels. The Board of Directors at the apex, as
trustee of shareholders, carries the responsibility for strategic
supervision of the Company. The strategic management of the
Company rests with the Corporate Management Committee
comprising the whole time Directors and members drawn from
senior management. The executive management of each
business division is vested with the Divisional Management
Committee (DMC), headed by the Chief Executive. Each DMC is
responsible for and totally focused on the management of its
assigned business. This three-tiered interlinked leadership
process creates a wholesome balance between the need for
focus and executive freedom, and the need for supervision and
control.
ITC BUSINESS PROFILE
• FMCG
• Cigarettes
• Foods
• Life Style Retailing
• Greeting , Gifting & Stationary
• Safety Matches
• Agarbatties
• HOTELS
• PAPERBOARDS & PACKAGING
• Paperboards & Specialty Papers
• Packaging
• AGRI-BUSINESS
• Agri Exports
• E-Choupal
• Leaf Tobacco
• GROUP COMPANIES
• INFORMATION TECHNOLOGY
THE ITC VISION
Sustain ITC’s position as one of India’s most valuable
corporations through world class performance, creating,
growing value for the Indian economy and the Company
Stakeholders.
THE ITC MISSION
To enhance the wealth generating capability of the
enterprise in a globalizing environment, delivering
superior and sustainable stakeholder value.
CORE VALUES
Core Values includes:-
• Trusteeship
• Customer Focus
• Respect for People
• Excellence
Innovation
FACTORY
DISTRIBUTION STRATEGY The personnel care products of ITC are distributed to the
consumers in the following manner.
HUB
WSP
(Warehouse service provider)
RETAILER
CONSUMER
RETAILER
WD (Retailer dealer)
HIERACHY OF ITC LTD..PATNA MARKETING BRANCH
Branch manager
Assistant Branch Manager
Area manager
Area Executive
DISTRIBUTOR OF ITC IN PATNA
MAIN OFFICE:-
Patliputra trading corporation(PTC)
Opposite B.N. College,Patna
BRANCH OFFICE:- Exihibition Road.
PLAYERS IN PERSONAL CARE PRODUCT
Personal care products in India is multi-million-pound business. In India the major organized players are :-
• VIVEL
• MARGO
• DETOL
• LUX
• HAMAM
• BRIDGE
When we talk about major competitors of ITC , then HINDUSTAN UNILEAVER LIMITED , P&G are the major competitors , because they have already grab the major part of the consumer market.
In that run in the market HUL is leading with its soap with a numerous variant and qualities and also with a unique technique of
marketing. P&G is also in the race of soap market.
P&G introduces its brand and a range of soap with some different technique.
SWOT ANALYSIS OF ITC LTDSTRENGTH
• Brand
• Distribution Network
• Management
WEAKNESS
• Dependence on tobacco revenues.
• Negative connection of tobacco.
OPPURTUNITIES
• Rural Market.
• E-choupal
• Low per capita consumption of personal care product
THREATS
• Competition both domestic and international.
• Increasing tax on cigarettes.
MARKET STAND OF ITC LTD
SEGMENT DOMINACE REVENUE% PBIT %Cigarette 70% share 77 87
Paperboard & packaging
Packaging board no.1 in Asia
7 10
Agri-business One of the largest exporter from India
7 4
Hotels ITC group ranks No.2 4 5
FMCG(others) 20%share of greetings cards market ‘ashirwaad’ atta isNo1
4 7
SWOT Analysis ITC . ITC is one of India’s biggest and best-known private
sector companies. In fact it is one of the World’s most high profile consumer operations. Its businesses and
brands are focused almost entirely on the Indian markets, and despite being most well-known for its tobacco brands such as Gold Flake, the business is now diversifying into new FMCG (Fast Moving Consumer Goods) brands in a
number of market sectors – including cigarettes, hotels,
paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards,
Information Technology, safety matches, incense sticks and stationery. Examples of its successful new FMCG
products include:
• Aashirvaad – India’s most popular atta brand with over 50% market share. It is also present in spices and instant
mixes.
• Mint-o – Mint-0 Fresh is the largest cough lozenge brand in India.
• Bingo! – a new introduction of finger snacks.• Kitchens of India – pre-prepared foods designed by ITC’s
master chefs.• Sunfeast – is ITC’s biscuit brand (and the sub-brand is
also used on some pasta products).Strengths
• ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the
advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food
concepts for its FMCG business.• ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper,
agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information
Technology, safety matches, incense sticks and stationery.
Weaknesses• The company’s original business was traded in tobacco.
ITC stands for Imperial Tobacco Company of India
Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor
health and premature death.• To fund its cash guzzling FMCG start-up, the company is
still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company’s turnover, and
that in itself is responsible for 80% of its profits. So there is an argument that ITC’s move into FMCG (Fast Moving
Consumer Goods) is being subsidized by its tobacco operations. Its Gold Flake tobacco brand is the largest
FMCG brand in India – and this single brand alone holds 70% of the tobacco market.
Opportunities• Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of
market development, product development and marketing penetration.
• ITC is moving into new and emerging sectors including Information Technology, supporting business solutions.• e-Choupal is a community of practice that links rural
Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an
ambitious project that has a goal of reaching 10 million farmers in 100,000 villages.
• ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour),
then used the network to source and create the raw materials from farmers and then blend them for
consumers under purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP
Chakki in the Western market and Aashirvaad in the
Eastern market. This concept is tremendously difficult for competitors to emulate.
• Chairman Yogi Deveshwar’s strategic vision is to turn his Indian conglomerate into the country’s premier FMCG
business.• Per capita consumption of personal care products in
India is the lowest in the world offering an opportunity for ITC’s soaps, shampoos and fragrances under their Wills
brand.
Threats• The obvious threat is from competition, both domestic and
international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to
find new market segments for their own offerings.
VIVEL PORTFOLIOBetween February and June 2008,ITC expanded its personal care portfolio with the launch of VIVEL DI WILLS and VIVEL
Brands. Vivel Di Wills,a range of soaps, and Vivel, a rangr of soaps and shampoos ,cater to the specific needs of a wide range of consumers.
Vivel Di Wills and Vivel are high quality ranges of soaps and shampoos for the upper mid and mid market consumer segments.All products offer a unique value proposition of bringing together ingridients that provide the benefit of Nourishment,Protection and Moisturisation through one product,hence providing the ever discerning consumer complete care,which makes her beautiful and confident.
The Vivel Di Wills range soaps is available in two variants:-
• Vivel Di Wills Sheer Radiance is enriched with Olive oil,to provide skin luster to make it radiant.
• Vivel Di Wills Sheer Cream is enriched with Shea Butter,to moisturize skin to make it soft and supple.
The Vivel range of soaps is available in five variants:-
• Vivel Young Glow is enriched with Vitamin E and Fruit infusions which helps in providing youthful glow to the skin.
• Vivel satin soft is enriched with Vitamin E and aloe vera which helps the skin feel beautifully soft.
• Vivel sandal sparkle is enriched with sandalwood oil and actie clay which helps in providing clear skin.
• Vivel ayurveda essence is enriched with multiple ayurvedic ingriendts which helps skin protect skin from germs and harsh environment,keeping it healthy and beautiful.
• Vivel silk spring is enriched with green apple extracts and olive oil which helps in making skin smooth.
HUL’s market share declines on competition, slow economic growth IIndia’s largest consumer products company by sales, Hindustan Unilever Ltd (HUL), is steadily losing market share by value in segments including soaps, hair, oral and skin care as economic growth slows and competition increases.
HUL’s decline, which extends to its volume growth in a still expanding market for personal care products, is a signal that consumers are switching to cheaper products made by either HUL itself or its rivals as household budgets tighten.
“HUL’s products are non-discretionary but down-trading is likely as was the case during the drought years of 2002-2003,” Merrill Lynch and Co. said in a report that cited falling employment in Tier-II cities and an uncertain economic outlook as key concern.
Buffeted by high borrowing costs and a credit crunch, India’s economy grew 7.6% in the quarter ended September, the slowest pace in 15 quarters, down from 9.3% a year earlier and 7.9% the previous quarter. Consumer sentiment has also been hit by a stock market plunge, job layoffs and a freeze in recruitment in sunrise sectors such as aviation and information technology.
To be sure, HUL, which boasts that it touches the lives of two out of three Indians every day, still remains the market leader in the personal care segment by a wide margin and analysts say the share slide is of limited significance. “It is not a big concern for a market leader such as HUL,” said Anand Shah, analyst at Mumbai-based brokerage Angel Broking Ltd. “Some percentage point decline in a few categories does not really matter.”
Still, it shows competition is beginning to make a dent in an expanding market even as economic growth slows.
HUL saw the share of its soap brands such as Dove, Lux, Hamam and Breeze dip by value to 50.3% in the September quarter, from 53.2% a year earlier, according to market research firm AC Nielsen. Market share slipped from 52.7% at the end of June.
The soaps market recorded sales of Rs 1,989 crore in the second quarter this fiscal. Godrej Consumer Products Ltd, or GCPL, whose soaps include Godrej No. 1, Cinthol and Fair Glow, was stood second with a market share of 9.47%, followed by Wipro Consumer Care Ltd’s 8.34%, according to AC Nielsen.
In shampoos, the market share of HUL brands like Clinic Plus, Sunsilk and Dove declined to 46.1% in the quarter ended September, from 47.7% a year earlier and 46.5% in June this year.
The shampoo market recorded sales of Rs650 crore in the September quarter, AC Nielsen said. Procter and Gamble Co. brands such as Head&Shoulders and Pantene had a share of 23.86% followed by Chennai-based CavinKare Pvt. Ltd, maker of Chik, Chik Satin and Nyle Herbal shampoos, with 11.34%.
In toothpastes, HUL’s share with brands such as Closeup and Pepsodent fell slightly to 29.6% as of September-end, from 30% a year earlier, which was unchanged at the end of June 2008.
In this category, Colgate Palmolive (India) Ltd was the leader with 48.7% of the total market, while Dabur India Ltd had a 9.19 % share with brands such as Babool, Meswak and Dabur Red. The toothpaste market had sales of Rs800 crore in September quarter.
Besides market share, the company’s volume growth has also declined by around three percentage points in the quarter ended September, compared with the first quarter. “HUL’s volume growth has been slowing down from 10% in March quarter to 7% in September quarter in response to rising prices,” the Merrill Lynch report said. “Despite stabilizing retail prices, the macro environment
is not favourable enough to suggest that volume acceleration is likely near term.”
In skin creams, HUL’s share with brands such as Pond’s, Vaseline and Fair & Lovely dipped to 52.7% in the quarter ended September from 55% a year ago and 53.4% in June. L’Oreal India Pvt. Ltd, Proctor & Gamble, Emami Ltd and CavinKare are some of the competitors in the market.
“The category is at a very nascent stage and unpenetrated,” said Pritesh Chheda, analyst at Emkay Share and Stock Brokers Ltd. “There are some brands such as Nivea and Olay in skincare, which are picking up. Also, there are many imported brands which keep getting launched.”
HUL’s share has declined although the market itself is expanding in value terms, notwithstanding the economic slowdown. According to AC Nielsen, the toilet soaps market was estimated to be worth an annual Rs7,258.17 crore at the end of September, up 12.8% from a year earlier.
The market for shampoos grew 14.6% to Rs2,377.47 crore, for toothpastes 14.1% to Rs3,018.46 crore and skin creams 18% to Rs3,095.61 crore, the market research firm said.
HUL is facing increased competition with the entry of cigarette maker and hotel company ITC Ltd into personal care products such as shampoos, hair conditioners, soaps
and bodywashes with brands such as Vivel, Fiama Di Wills and Superia earlier this year.
“HUL continues to be a market leader in most of the FMCG (fast-moving consumer goods) categories, but, yes in some categories the company’s share has been going down consistently such as soaps and shampoos, as ITC’s products are gaining market share,” said an analyst at a Mumbai-based firm who did not want to be named.
ITC declined to comment on its market share. “ITC’s entry has clearly impacted market shares of HUL,” said Emkay’s Chheda. “Currently, ITC must be having around 1.5-2% share and entry of a strong player definitely impacts the existing one. But still, ITC will take another two years to grab 5-7 % share of the soaps and shampoos category.” HUL posted a 19.7% increase in net sales during the quarter ended September to Rs 4,028 crore, from Rs3,365 crore a year earlier. The home and personal care division grew by 22.5%.
The company isn’t pressing any alarm buttons yet. “Market share, in the short term, is the outcome of market dynamics,” an HUL spokesman said in an email. “We continue to invest in our brands and categories through innovation, product quality and marketing spends. As we grow our core, we will continue to drive both market and category development.”
“We believe that our brand development and activation, coupled with proper investments over time, will help us maintain our leadership position,” the spokesman added.
VIVEL SOAP STRATEGYSince Fiama Vivel Di Wills : Beauty with Confidence
Brand : Vivel Di WillsCompany : ITCAgency : Law & Kenneth
Brand Analysis Count : 313
Shortly after launching the up-market personal care brand - Fiama Di Wills, ITC has launched another personal care brand - Vivel Di Wills. Not only that, another two brands has been launched - Vivel and Supiriya in close succession.
well below Fiama Di Wills . Vivel Di Wills has been launched even before the brand Fiama Di Wills settled in the market. In a way ITC is Vivel Di Wills can be termed as a brand for the middle class and priced flooding the personal care market with its brands.
Vivel Di Wills - as the name suggests shares the term ' Di Wills '
with Fiama and Essenza. Vivel Di Wills comes in two variants :
Sheer Radiance and Sheer Creme. Sheer RadiDance contains
Olive Oil while crème variant contains Shea Butter. What
differentiates Vivel Di Wills is the ingredient branded Actipro-N
which was developed by ITC R & D team. Actipro -N nourishes,
protects and hydrates the skin thus enhancing the beauty of the
skin.Vivel Di wills comes in attractive carton package with some
elegant color scheme.The brand is priced at Rs.16 for 75 gm
cake. Now comes the interesting part. When I was shopping, the
attractive packing and display of Vivel Soap.
a soap Vivel Di Wills prompted me to take one ( for my wife ) . But when I reached the section for soaps, I was surprised to see another set of soaps with the brand name Vivel . This was confusing to me and I thought that it was a fake brand taking advantage of Vivel Di Wills. On closer examination, I was surprised to find that Vivel also
belong to ITC. Then I checked the price and it was less that Vivel Di Wills. The packaging was ordinary and there was even a sales promotion offer attached with the soap(price off).
So there are two brands Vivel Di Wills and Vivel priced differently and even the brand elements are different. News reports say that Vivel has four variants : Satin soft, Young Glow, Ayurvedic Essence Sandal Sparkle.So the natural question is about the logic of these two brands with similar brand names launched simultaneously. In a press release available in the ITC portal, the category head Sandeep Kaul mentions that they are going to use price and positioning difference to separate the brands Fiama and Vivel Di Wills also launched
DISTRIBUTION CHANNEL OF VIVEL SOAP FROM ITC
NEED:-
Distribution channels are sets of interdependent
organizations involved in the process of making a product
or service available for use or consumption. From the
point of view of making available products and services,
the existence of intermediaries between the products and
the ultimate end users is inevitable. This inevitability is
primarily due to the fact that producers can exploit the
economies of scale only if they produce in bulk, which in
turn results in the production function getting
concentrated in a single location. It is noticed that
channels are created for reaching out to different
customers who are spread wide across territories.
Each channel addresses the needs of the customer. The
mass retail and key retail segments address the
convenience aspect as they are located in proximity to
residential areas. The Modern Retail outlets might
address the same customer but provides a different value
proposition. It addresses a different need of providing a
wide array of products under one roof when the customer
values a shopping experience, and would like to have an
experience of picking up his groceries and personal care
products.
For example in case of VIVEL soap, ITC towards making
this product reach the end user had to employ the right
channel, and ensure proper strategies are in place
towards maximizing the off take of the product through
the channel by the target customers. Now the availability
of the same product at different channel members is
different. The product may be available in boxes and in
large quantity at the retailers point targeting the retailers
whereas the same product is available in the base pack
with the retailers, here targeting the retailers. Even at
this part of the channel, there is a difference. The product
at a localkiryana shop may be available with no offer
whereas the same product at a big departmental store
might be available withn an offer.this is how each channel
member act differntly with the same motive of increasing
sales and profit.
Vivel celebrates with brand ambassador and superstar Kareena Kapoor
ITC, the multi-business conglomerate's personal care brand Vivel organized a special event to recognize the support of its trade partners in making the brand a great success. Vivel is one of the most rapidly growing brands in the soap segment in India, today. The brand offers consumers Total Care with its triple benefit of Nourishment, Protection and Moisturisation. Kareena Kapoor, brand ambassador Vivel Soaps celebrated the success with the brand and its trade partners.
Vivel has carved a strong position for itself in the Indian market, riding high on its superior and differentiated product offerings and unique brand experience to Indian consumers. In a span of just two years since its launch alongwith a beautiful ambassador like Kareena Kapoor, Vivel has received stupendous response . Vivel has successfully established its superior value proposition to discerning consumers.
The brand attributes of beauty, warmth and quality were all brought to life with the celebration of Vivel's success. The event provided the guests with an opportunity to interact with the Bollywood superstar and brand ambassador of Vivel soaps, Kareena Kapoor. With a chance to interact with their favorite movie star, the event witnessed immense enthusiasm and excitement amongst the partners present at the venue.
Expressing his views on the event, Mr. Atul Joshi, Head of Marketing, Personal Care Products Business, ITC Limited said, "We take pride in the role that our trade partners play in building consumer confidence. It is their support and trust in us which has helped Vivel in achieving rapid growth and consumer acceptance.We express our gratitude and appreciation for their support.
Vivel soaps brand ambassador, Kareena Kapoor said, "I am extremely proud to be associated with Vivel Soaps and ecstatic at the success! I completely believe in the brand which provides me Total Care .. I feel with the launch of, Vivel Deo Spirit, a freshness variant , Vivel has established its differentiated positioning in this segment. I congratulate the team for the success and hope that we together make the brand more successful in the coming years."
The event ensured great fervor and entertainment and came to a bustling end with Kareena Kapoor felicitating the guestsCommenting on the event, she added, "I am thankful to Vivel for having given me an opportunity to interact and thank Vivel's trade partners for their efforts and immense contribution in making Vivel a household name.".
THE REVENUE GENERATING DIVISION OF ITC Ltd.
ITC is the market leader in cigarettes in India. With its wide
range of invaluable brands, it has a leadership position in every
segment of the market. It’s highly popular portfolio of brands
includes Insignia, India kings, Classic, gold Flake, Silk Cut, Navy
Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
The company has been able to build on its leadership position
because of its single minded focus on value creation for the
consumer through significant investments in product design,
innovation, manufacturing technology, quality, marketing and
distribution.
All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends.
ITC’s pursuit of international competitiveness is reflected in its
initiatives in the overseas markets. In the extremely competitive
US market, ITC offers high-quality, value-priced cigarettes and
Roll-your-own solutions. In West Asia, ITC has become a key
player in the GCC markets through growing volumes of its
brands.
ITC having the four cigarettes manufacturing units
• BENGALURU (BANGALORE)
• KOLKATA
• MUNGER
• SAHARANPUR (U.P.)
These four production units have got the ‘five star rating’ by the
British Safety Council.
FMCG Business Initiatives
Branded Packaged Personal Care Product.
• Leverages• Unique Agric sourcing skills• ITC Welcome group’s Experts & Dermitologists.• FMCG distribution synergies• ITC R&D Centre, Bangalore• Staples;Vivel Di Wills,Vivel,Fiama,Superia.• Soaps: Vivel,Fiama.
STUDY OF SELECTED RESEARCH
PROBLEM
DEFINITION OF RESEARCH
PROBLEM
Marketing research implies a disciplined approach to marketing
problems of various kinds. With the development of
sophisticated business organizations and changing nature of
consumer behavior, these problems tend to become more
complex and decisions taken to solve them have far-reaching
effects. It is sound business practice that marketing policies
should found on carefully planned research: this is possible only
by applying the systematic approach of research methodology
used in other areas of investigation.
According to American marketing association, “Marketing
Research is the systematic gathering, recording and analyzing
of data about problems relating to the marketing of goods and
services.”
The above definition implies:
.Marketing research is a systematic process and not a
haphazard activity.
.It includes not only collection of data but analysis of the data so
collected.
.The data so collected and analyzed is used to solve various
marketing problems relating to goods and services.
In the branded soap market, to get down to basics, Frito Vivel
commands a share of 45%, followed Vivel Di Wills at 27% and
ITC at 16%. The rest is divided between a handful of new
entrants, wannabes and many regional players. Out of these
ITC’s vingo s a new entrant in the market, which
has launched in 2007. ITC has launched vivel in a
wide variety of formats, ranging from potato chips
to triangular bridges. Because of its different and
catchy advertisements vivel has created a buzz in
the market.
Therefore our aim was to find the most popular Varient among
all the offerings.
We began our analysis by dividing people into those who like to
use soaps and those who don’t. We based our study on survey
of people who like to use soap. This survey was conducted in
Patna.
OBJECTIVES OF THE RESEARCH PROBLEM
The objectives are:
• To find out awareness of VIVEL SOAP among consumers .
• To analyze the reason for popularity of most preferred soap.
• To know the satisfaction level of consumers who use VIVEL
SOAP.
• To find out comparative performance of VIVEL SOAP.
• To find out mode of Brand awareness of VIVEL SOAP
among consume
The research has used primary data, magazines, internet
books, some market survey using marketing tools like
asking questions through questionnaire, personal interview.
Research design is the basic framework which provides
guideline for the rest of research process. It species the
methods for data collection and data analysis. The major
source of the data collection was primary sources as well as
secondary source. Secondary source include, Internal
source as well as External sources. It also refers to
readymade published information that is ready available
within or outside the companies premises.
DATA ANALYSIS ANALYSIS OF DATA
The analysis of data was done according to the following:
• Product wise
• Price wise
• Promotion wise
• Operation wise
The product wise analysis comprise of different variants present
in VIVEL & in VIVEL DI WILLS.
Price wise analysis includes the PTR Analysis, margin analysis,
different SKU wise analysis of price etc.
Promotion wise analysis includes different sales promotions
available, different offers available etc.
Operation wise analysis includes time motion study, liquidity
ratio etc.
In order to extract the meaningful information from the data
collected, an analysis of data is done using various graphs and
charts.
DATA SOURCE
Data, in fact are the raw material with which a market research function. The accuracy of the collected data is of great significance for drawing correct and valid conclusion from the investigation.
Depending upon the source, data can be classified into two categories.
• Secondary Data: Secondary data is the data which is already collected by other, for the purpose of the solution of the problem at hand , such as documentary sources like, file records, diary, journals etc….
• Primary data: Information , which has been gathered for the first time, is called primary data. Here the sources, expected to have the desired information are contacted by the various methods to collect the data.
For the study , primary data was collected from the respondents in Patna, and the secondary data was collected from the business magazines, news paper and internet.
DATA COLLECTION METHOD
Necessary information have been collected for the purpose of study by using the both, Primary as well as secondary sources.
• Questionnaire method:- Separation structure questionnaire, each for retailers as well as for retailers had been developed, consisting of questions regarding necessary information required. The respondents were interviewed personality.
• Observation method :- respondents were observed carefully during the course of study, so as to get an idea about their individual responses about the product.
Sampling Method:-A probability sampling technique for the study or problem enabled to get much accurate data’s with varying simple random tool.
Sampling Unit:-The sampling unit is the basic unit containing the element of the population to be sampled. Eg. retail outlets.
Patna area was taken as the population Patliputra colony, Boring Road, Boring Canal Road, Patna city Danapur, KKankad Bag,Raja Bazar, Rajeev Nagar were the areas taken as sample.
Sample Size:-
My sample is taken from the retailer market as well as from the retail market.
The total no of sample are as follows:-
Retailer- 250
AVALABILITY OF DIFFERENT BRANDS
Number of respondents: - 250
BRANDS NO OF RESPONSES
PERCENTAGE
LUX 245 98 %
DETOL 230 92 %
VIVEL 185 74 %
MARGO 200 80 %
INTERPRETATION
LUX & DETOL are almost available in most of the retailers. The percentage availability of LUX & DETOL is 98% and 92 %. While MARGO has got 80 % It shows that the retailer good penetration of MARGO, LUX & DETOL in the market, Where as VIVEL is available in 185 outlets among 250 outlets. The percentage availability is only 74 %.
GRAPH 1 :-SHOWING PERCENTAGE AVALABLITY OF BRAND’S
TABLE 2- SHOWING VISIT OF SALESMAN
Number of respondent-250
BRANDS NO OF RESPONSES
PERCENTAGE
LUX 245 98 %
DETOL 210 84 %
VIVEL 150 60 %
MARGO 200 80 %
INTERPRETATION:-
Regular visit of the salesman in the market shows their
sincerity and effort for the product. If we compare this
table with the previous one, It shows that in the outlet
where LUX, DETOL & MARGO is available, the salesman
visit is regular. In terms of percentage LUX, DETOL &
MARGO has 98 %, 84 %, and 80 % salesman visit
respectively. The percentage of VIVEL SOAP is 60 %
salesman visit.
GRAPH2 –SHOWING PERCENTAGE OF SALESMAN
VISIT
TABLE :- Showing margin of the retailers
No of Retailer =250
Margin No of Reatiler
Rs 0.50 35
Rs 1.00 117
At m.r.p. 98
INTERPRETATION:-
Majority of the retailer work in Rs.1 margin. Only 98 out of 250 work in same price and 35 retailers out of 250 retailer’s sale the product at Rs.0.50 margin. 117 retailers out of 250 retailers are selling the product at Rs.1.00 margin.
GRAPH :- Showing margin of the retailers
FINDINGS
FINDINGS
Starting my findings on a positive note,ITC products are equal in quality and packaging to every other brands operating in this range.
My findings are here under:-
• The basic of marketing teaches us about developing relationship and sustaining it, this is what ITC is lacking in retailer market.
• Supply of all the variants of ITC’s personal care product is not consistent. Due to this, salesman visit of ITC is not regular in the market.
• Salesman of ITC are very selective in visiting the shops in a particular market, they have a preconceived notion for the market.
• The market is not aware of all the variant of ITC’s Vivel soap..
• The concept of SCP (stock carrying point) in Patna is not adding any benefit to the company.
• Scheme is offered by all the players in the retailer market, except ITC.
• Convenience is also looking after the retailer market and they are offering ITC’s personal care product at very low price.
• Retailing of ITC is good as compared to retailer market.
• Retailing of ITC’s personal care product in boring road, Boring Canal road and Patliputra is very good as compare to rest of the Patna.
• ITC’s personal care product is very much dependent on its soap and shampoo.
• Patna city retail market is the biggest in Patna. The quality sold in this market is more than, the quantity sold by the of the Patna retail market collectively.
• In term of availability, skin care product‘s dove and grainer is at the top.
• Margin of the retail is least in Patna city as compare to other brand.
• HUL & P&G’s visit in the retail market is regulars and retailers are very much satisfied with them.
RECOMMENDATIONRECOMMENDATION FOR ITC’S PERSONAL CARE PRODUCT
• It is said that unless the product is not consumed, it is not counted as a sale because before consumption there is every chance of return of product due to expiry, damage etc. so strong retailing is very much required because
they are last in distribution channel. So every player’s focus very much on retailing, but to reach each and every retail outlets is not possible for the distributers due to which retailer penetration is also very much required.
• The time limit of credit should be extended because it is biggest hurdle in retailer penetration.
• Regular supply of all the variants of ITC personal care product has to done.
• As I have already stated in finding part that ITC’s personal care product is very much depends on soap and shampoo in the market, so regular supply these product are also required for penetration of retailer market in personal care product
• ITC’s personal care product is still in growth phase, so development of relationship and sustaining is very much required.
• ITC’s shop and shampoo is developed product. So ITC can use it as a sales promotion tool for personal care product.
Cash discount in soap and shampoo may be given if Retailer purchases more than the set quantity of personal care product.
• Special Scheme for the retailer market should be introduce d because it attracts retailer to purchase more.
• Retailer market is a place where no company focuses on visibility, so if ITC focuses on it then it would be beneficial
• Price should be same throughout the market , because if convenience offers same product at a lower price then it give bad impression on the company.
• In retail market salesman should visit each outlet because to sell 99Rs hair care
product only big outlet are not required even small retailers can sale it.
CONCLUSION & SUGGESTION
CONCLUSIONAs performance appraisal represents an important application area for the organizational behavior. Traditional techniques for performance appraisal have been handled fairly ineffectively and are coming under the scrutiny of equal opportunity advocated regarding their validity. The purposes and trends in performance appraisal have been discussed. We all know that performance plays a vital role for achieving any organizational target and the target is achieved through the performance of the employee and for this a continues appraisal system is required so that the employee could get motivated and can perform better on its behalf.
Performance appraisal, we can say that is a systematic description of an employee’s job relevant strength and weaknesses. Its serves two major purposes in organization.
• To improve the job performance of employees.
• To provide information to employee and manager for use in making decision.
Through our project which was done in VIVEL SOAP we
Come to know about their system of performance appraisal, which was through ranking. The system was not as transparent as stated by most of the employee but they accept the fact that they have a effective performance appraisal system. So we come to know that to improve the value of performance appraisal interviews systematic training for supervisor is essential.
SUGGESTIONSThe findings clearly determines the various shortcomings of the performance appraisal system so there are few suggestion which will help the organization to improve the performance appraisal system and thus, will result in improving or motivating the employee in order to “Perform better"
and the suggestion are as follows:-
• The performance appraisal system should be made transparent so, that the employee freely communicate with the leader in order to improve his/her performance
this will help the employee to understands his/her strength and weakness.
• Performance appraisal should be done without biasness. It should be based on work of staff, its detain for work and organization.
• Performance appraisal is a systematic technical tool to improve the efficiency of the employee and thus, the performance appraisal should be done on quarterly ands half yearly basis instead of annual basis.
• Performance and rewards should be made directly proportional, so the employee gets motivated and this will help him/her to improve better.
• A proper feedback should be given to the employee highlighting their shortcoming and could perform better in future.
QUESTONNAIRE& BIBLIOGRAPHY
QUESTIONNAIRE
Dear Respondent,
Kindly fill up the questionnaire below for providing us your valuable opinion, which will help us to serve you better. Your responses will be kept strictly confidential.
• NAME:
• NAME OF THE OUTLET:
• ADDRESS:
…………………………………………………………………………………
Q1)Do you sell personal care products?
IF YES, Then Most demanded brand for soap.
Ans.
Q2) which company in its brand of soap is competing in the market in terms of price to its competitor?
• Procter & Gamble
• I.T.C Ltd
• Hindustan uniliver
• Colgate & Palmolive
Q3) Does customer go for Vivel soap?
Ans. If Yes, why
If No, why
Q4)Which of the organized companies products in 18 rs. range that u sell?
Ans.
Q5) At What margin do u sell the product?
Ans.
Q6)Do you think that the advertisement given in T.V for Vivel soap has increased its sale in your outlet?
Ans. Yes No
Q7)Are customers aware of the different variants of vivel soap?
Ans. If Yes,then
Name some of the variants available in your outlet
Q8) What is your monthly average sale of the following brands?
Ans. Dove, Park avenue, cinthol, Fiama di wills
SURVEY ON DEMAND OF I.T.C. PRODUCT’S IN MARKET
• NAME OF THE CUSTOMER : ___________________________________________
FEEDBACK REGARDING I.T.C. PRODUCT’S
• Do you satisfy with the qualities of the I.T.C. Product’s?
(a).Yes (b) No (c) Can’t Say
2. Are you satisfied With the Price of I.T.C Products?
(a).Yes (b) No (c) Can’t Say
3. Does I.T.C Products Fulfill The Growing Needs Of The Customers?
(a)Yes (b) No (c) Can’t say
4. Did I.T.C Made its Name In personal care products In a short period
Of time?
(a)Yes (b) No (c) Can’t Say
5. Is I.T.C. product your 1st choice in cosmetic product’s?
(a)Yes (b) No (c) Can’t Say
BIBLIOGRAPHY
Reffered Websites:-
• www.itcportal.com
• www.google .com
Reffered Books:-
• Marketing management by Philip Kotler &Kevin L. keller
• Marketing Research by Naresh k.Malhotra
• Method of social survey and research by S.R Bajpai.
Reffered Newspaper:-
• Times of India
• The Hindu