final cavinkare project done

‘To track availability and visibility of the product in the outlet’

PROJECT REPORT

ON

“TO UNDERSTAND BRAND EQUITY OF INDIAN PASSENGER CAR BRANDS AT CONSUMER LEVEL”

IN PARTIAL FULFILLMENT OFMASTERS IN MANAGEMENT STUDIES

SUBMITTED BY

SANKET SHETE

ROLL NO. 149

SPECIALIZATION: MARKETING

GUIDED BYPROF. VIVEKANAND PAWAR

PILLAI’S INSTITUTE OF MANAGEMENTSTUDIES AND RESEARCH, PANVEL

UNIVERSITY OF MUMBAI2009-2011


Sr.No Content Page No.


1 1.0 Chapter 1

1.1 Introduction

1.2 Objective of the study

1.3 Need of the project

1.4 Scope of the Project

1.5 Research Methodology

1.6 Limitations of the Project

2 2.0 Chapter 2

2.1 Company Profile

2.2 Organization Chart

2.3 Benefits given by company

3 3.0 Chapter 3

3.1 Theoretical Background.

3.2 Data Analysis & Interpretations

3.2.1 Level 1 – Reaction

3.2.2 Level 2 – Learning

3.2.3 Level 3 – Behavior

3.2.4 Level 4 -- Result

4 4.0 Chapter 4

4.1 Conclusion

4.2 References

5 5.0 Annexure

5.1 Reaction test Questionnaire

5.2 Behavior Test Questionnaire


Acknowledgement

I am very grateful and express my sincere thanks to my Project Guide

Prof. Vivekanand Pawar for his constant encouragement and support throughout

training duration, especially for the useful suggestions given during the course of the

project period.

I am also thankful to Mr. Harship Vora for giving me opportunity to work with

ISPAT Industries. & all the staff members of our PIMSR for their help in completing this

project a successful one.

I am expressing my special thanks to my friends for helping me during whole

training period.

Finally, I take this opportunity to extend my deep appreciation to my family and

friends, for all that they support to me during the crucial times of the completion of

project.

MR. SANKET BHAGWAN SHETE

Declaration


I am very well aware of the ethics and guidelines one has to follow while working on a

project in a disciplined manner.

Being aware of a project regarding its Factuality and Authenticity, I have tried my best to

perform my task.

All the information mentioned here throughout the project is true to the best of my

knowledge. And I declare it as true and the collection made through my own personal

observation and experience.

The theoretical part is gathered from various Human Resource reference books whose

quotations have been mentioned in bibliography.

MR.SANKET BHAGWAN SHETE


Chapter I


EXECUTIVE SUMMARY

The project mainly focuses on as we tract all the outlet as sales team been covered, also

we tract availability and visibility of our product in the outlet, with our competitors

products which have been visited by sales team.

The Channel sales management in the FMCG industry.

The channel sales management is an important part of the FMCG industry.

As the life of the FMCG products are very less it is very important to deliver the product

within the time.

First part of the project contains the introduction about the Fast moving consumer goods,

overview of FMCG industry and information about the CAVINKARE where I have done

my project.

Second part of the project contains the observation part where my role is involved.

Observation part contains appointment of tract availability and visibility of our product in

the outlet, with our competitors products which have been visited by sales team.

promotional activities and retail penetration.

The last part of the project contains the recommendation for the company, limitation of

the project and finally the overall conclusion of the project.


INDUSTRIAL BACKGROUND

India is an important market for FMCG players. The Indian FMCG sector is the fourth

largest sector in the economy with a total market size of around US$ 13.1 bn. During

1950's to 1980's, there was low investment in the sector as the purchasing power was

low. Also, the government had put a lot of emphasis on the development of the small-

scale sector. The existing companies like HLL were purely focused on the urban areas.

However, post liberalization the scenario changed marking the entry of the MNCs into

the country. Also, the focus shifted from the urban to the rural areas. In this article, we

shall take a look at the importance of India for FMCG players.

Large base: With a population of 1 billion people, India is a big market for FMCG

companies. Around 70% of the total households in India reside in the rural areas. The

total number of rural households is expected to rise from 135 m in 2002 to 153 m in

2010, which represents the largest potential market in the world.

Rural and urban potential

Urba

n

Rural

Population 2001-02 (m household) 53 135

Population 2009-10 (m household) 69 153

% Distribution (2001-02) 28 72

Market (Towns/Villages) 3,768 627,000

Source: Statistical Outline of India (2001-02), NCAER


India - a large consumer goods spender: An average Indian spends around 40% of his

income on groceries and 8% on personal care products. A larger part of the total

spending pie along with a large base (in terms of population) makes India one of the

largest FMCG markets.

Changing lifestyles: Rising per capita income, increased literacy and rapid urbanisation

have caused rapid growth and change in demand patterns. The rising aspiration levels,

increase in spending power has led to a change in the consumption pattern. Apart from

the demand for basic goods, convenience and luxury goods are growing at a fast pace

too. The urban population between the ages of 15 to 34 years is expected to increase

from 107 m in 2001 to 138 m in 2011, an increase of 30%. This would unleash a latent

demand with more money and a new mindset. With growing incomes at both the rural

and the urban level, the market potential is expected to expand further.

Low penetration and low per capita consumption: Due to the large size of the

market, penetration level in most product categories like jams, toothpaste, skin care, hair

wash etc. in India is low. This is more visible when comparison is done between the rural

and the urban areas. The average consumption by rural households is much lower than

their urban counterparts. Existence of unsaturated markets provides an excellent

opportunity for the industry players in the form of a vastly untapped market as the

income rises.


Penetration %

Category All India % Urban % Rural %

Deodorants 2.1 5.5 0.6

Toothpaste 48.6 74.9 37.6

Skin Cream 22 31.5 17.8

Shampoo 38 52.1 31.9

Utensil Cleaner 28 59.9 14.6

Instant Coffee 6.6 15.5 2.8

Washing Powder 86.1 90.7 84.1

Detergent Bar 88.6 91.4 87.4

Toilet Soap 91.5 97.4 88.9

Apart from low penetration, even the per capita consumption in most of the FMCG

categories (including the high penetration categories) in India is low as compared to both

the developed markets and other emerging economies. A rise in per capita consumption,

with improvement in incomes and affordability and rising urbanization is further expected

to boost FMCG demand. Also, as the income rises, the shift from unbranded to branded

products is expected to be more evident.


Outsourcing hub: India has a vast resource of raw materials across different products.

Apart from the advantage in terms of ample raw material availability, existence of low-

cost labour force also works in favour of India. Easy raw material availability and low

labour costs have resulted in a lower cost of production. As a result India has become a

base for many MNCs like HLL and P&G as an outsourcing hub.

Retailing-the new growth area: Modern trade accounts for 9% of FMCG sales in

metros. Overall they account for approximately 4% of FMCG sales today. With nearly

220 malls expected to come up in the next four to five years in the country, the demand

for products is expected to be higher.

Looking ahead...

The FMCG sector is characterised by a well-established distribution network, intense

competition between the organised and unorganised segments and low operational cost.

As per the BRIC report, India's per capita disposable income currently stands at US$

556 per annum, which will rise to US$ 1,150 by 2015. With the rise in the share of the

middle class, the FMCG market is all set to treble from US$ 11.6 bn in 2003 to US$ 33.4

bn in 2015. However, poor infrastructure, the affordability of a product or a service to a

rural consumer with low disposable income, intense competition would be the key

challenges. Nevertheless, with the rapidly growing economy, rising disposable income,

changing consumer expenditure pattern and increasing number of middle class families,

the FMGC market is set to take a big leap in the coming years.


Objectives

To track all the outlet as sales team been covered, tract availability and visibility

of our product in the outlet, with our competitors products

To Identify the Covered-Non covered Medical shops and to bring them under

Stockiest Route list in Mumbai zone.

To Identify the wholesalers and to bring them under Stockiest Route list in

Mumbai zone.


Need of the project

In market so many companies are present who manufactures such products. Due to

availability of large number of competitors and also company wants better Coverage for

their Products,

There is a need to study:

1) The cover-Non covered all medical & retail shops and to bring them under Route

list.

2) The all wholesaler and to make them the sub stockiest for better coverage of

personal Care Products.

3) To tackle the situations like stock-out.

4) To be a growth engine.

5) It will also help us to identify the area of improvement in brand.


Scope of the Project

1. This project has given me the understanding to some extent of the market this will

help me to develop my skill much better and then a support to stand in market

more firmly to face it.

2. This project is having importance in the improvement of personal Care Products.

3. Project gives the detailed information about all the Retail & Medical Stores in

Thane zone.

4. This report gives information about cover - Non Covered Retail & Medical Shops

so in future these Medical shops can be covered for business development.

5. This report gives the information about almost all the wholesalers so if there is a

need in future to make more sub stockiest so by this project we can get the

information easily.

6. This project is very helpful for Business development and further extension of the

company.


Research Methodology

WHAT WE DO AS MARKET RESEARCHER?

As we tract all the outlet as sales team been covered, also we tract availability and

visibility of our product in the outlet, with our competitors products which have been

visited by sales team.

For example, Route consist of 40 outlet- we tract all 40 outlets to see whether sales

team been serviced entire routes, and also have availability and visibility of our product

with competitors products. After that we comply the data send to company.

For Cover-Non Covered Retail & Medical Stores:

Knowing the market :

As a summer trainee I am not familiar with market for personal care in Mumbai

zone. Therefore hole two month I have to go with sales man to acquire a

complete knowledge about retail& medical stores’ market. This is very helpful to

analyze entire mumbai zone for further research.

Mumbai all retail, medical & distributor route list:

After analyzing the market there is a need to know detailed information about

retailer &medical shops in Mumbai zone. route list of medical stores in Mumbai

is collected from Mr. Hership Vora (Mumbai zonal manager).

Mapping:

Retail & medical list shows the total no. of shops in Mumbai zone. And DRCP

route list shows total no. of retail &medical shops where our all personal care

products are available. Therefore it very easy to identify the non covered retail &

medical shops by mapping.


Approach of sales man:

Particular sales men are allotted for each area covered retail & medical shops

and sell the product and getting order form

MARKETING: - With that data it helps to Marketing Dept. Which products or

brands have less or more market share? Even it helps to change strategy 5P’s

product, place price, promotion, packaging.

ADVERTISING, PROMOTIONAL ACTIVITY : - It helps which products or brands

less RPS (Retails Performance Standard) or market share. They focus on that

particular product or brands have more advertising to aware to the end

customers, and also promotional activity like display the products in the outlet,

scratch coupons, free sampling of the product, etc.

SALES : - It helps to the sales dept. about the coverage of RS (Re-distribution

Stockiest), Services by sales person, and also selling concept.


Limitations

1. The research was conducted in the region of mumbai Zone in 2010. Thus the

interpretations of the study cannot be generalized.

2. Mostly respondent are retail wholesalers.

3. This Research can be done in other Area.

4. This research is restricted only for personal care products

5. The response that I have taken from the retailers can be wrong


Chapter II


Company Profile

Cavinkare Company

Type Privately held

Industry Consumer goods

Founded 1983

Headquarters Chennai area, India

Key person C.K. Ranganathan

Status Operating

Employees 1000

website http://www.cavinkare.com

Revenue

Operating income

2000 crore

400 crore

Net income 250 crore

Total Assets 800 crore

http://www.linkedin.com/redirect?url=http%3A%2F%2Fwww.cavinkare.com&urlhash=DGqM


Success is a journey not a destination. CavinKare began with a young mind choosing

the road less taken. In 1983 with a single product, CavinKare started out as a small

partnership firm. The Company that began its journey as Chik India Ltd was renamed as

CavinKare Pvt. Ltd (CKPL) in 1998. With innovative Entrepreneur C.K. Ranganathan at

the helm, CavinKare emerged into a successful business enterprise.

Smart marketing and clear product positioning not only ensured CavinKare's growth but

also helped the company broaden its product portfolio extensively. The company now

markets ten major brands. Over the years, CavinKare has achieved a competitive edge

with sound understanding of mass marketing dynamics. The company offers quality

Personal care (hair care, skin care, home care) and Food products borne out of a keen

understanding of consumer needs and keeping up company's the values of innovation

and customer satisfaction.

Today, CavinKare, having established a firm foothold in the national market, is

increasing its popularity in the international arena. A dedicated Research & Development

centre, equipped with latest equipment and technologies, constantly supports the

various divisions in their endeavour. The Company, which primarily relied on contract

manufacturing for many years has now set up its own world class plant at Haridwar to

cater to the demand of both domestic and international market.

CavinKare Group has crossed a turnover of 8819 million INR in 2009-2010. The

Company has employee strength of 576, an all India network of 1300 Stockists catering

to about 25 lakh outlets nationally. CavinKare's astute professionalism, innovative

products and consistent quality are results of its significant corporate practice.

" To succeed we believe that we need total commitment and highest standard of ethical

and corporate behaviour in order to provide the best for our consumers, stakeholders

and employees".


MAJOR PLAYER

Organizational Chart


C. Ranganathan, Chairman and Managing Director

Muthu Elango, Vice President Finance

Vineet Trakroo, Vice President Marketing

Amarjit Mishra, General Manager Marketing

Ramesh Vishwanathan, Executive Director

Rosa Rency Binu, Brand Manager

Krithika Rangan, Media Manager

Megha Agarwal, Product Manager - Maa Fruit Drinks

Milan Wahi, Vice President Sales- Personal Care and Foods Division


PRODUCT

PERSONAL CARE PRODUCT

HAIR PRODUCT

CHIK CHAMPOO:

CHIK SATIN SHAMPOO :


NYLE HARBAL SHAMPOO :

MEERA BADAM SHAMPOO :

INDICA HAIR COLORANT:

SKIN CARE PRODUCT


FAIRVER CREAM :

FAIRVER FRUIT:

SPINZ TALCUM POWDER :


SPINZ PERFUMED DEO :

HI – 5 DEO:

HOME CARE PRODUCT


TEX :

TOPP –MOPP:

III) Benefits given by company

1) To Trainee :


a) Induction Programme: Company has arranged induction Programme for me in

starting period.

b) Exposer to market : Company has given me opportunity to make applicable my

theoretical knowledge into Practical by giving me exposure to the market.

c) Reimbursement : Company has given me Reimbursement during training.

2) To Customer :

a) Corporate social Responsibility (CSR):

b) Programme : company has taking care of customer by introducing some

Programmes in this month one of the special Programme was Scholarship

Programme in which the company was giving the scholarship of Rs. 20000.

c) Sponsoring :

d) Awareness to the customer: Imparting appropriate knowledge of the Product to

the Customer by giving advertisement.


Chapter -III

Theoretical Background.


There are some theories related to business development given by some authors which

has been applied in this project for business development of the company are listed

below.

1) An Information Systems Design Theory for Business Development

(ISDT by Carlos Betancourt):

According to this theory Information has become one of the most important assets

for companies nowadays. Information management system uses organizational

information as a resource to make companies more competitive. An ISDT will guide

practitioners through the process by restricting practices and features of the system to a

more effective set. It will also encourage the academia to work on this theory for its

improvement, completion, and validation.

In this Project I have Identified and collected information about Non covered Medical

Shops and Pharma wholesalers in Vasai Zone. This information I had handed over to

the Business Development Manager. This information have help them to cover the non

covered medical Shops and Pharma wholesaler to sub Stockist. In this way information

system design theory is used for Business development in this Project.

2) Concept Development (by Kotler and cooper’s):

Kotler´s and Cooper´s approach about New-Product Development are first introduced.

Then the Concept Development theories of both authors are explained which allow us in

a last paragraph to build and present our own approach of the process of concept

development.

II) Data Analysis & Interpretations :


MAINTENANCE OF PRIMARY AND SECONDARY ORDER

PRIMARY ORDER:

The order that has been put by distributor to company is called as primary order.

Distributor has to put the primary order to company. At the cavinkare for the primary

order distributor has to send the company.

In the primary order the thing that I have learned is that many a times distributor not

concentrating on primary order and ultimately it create the problem of non-availability of

product in the market.

SECONDARY ORDER:

The order put by retailer to distributor is called as secondary order. Retailers are

responsible for secondary order that they have to put to distributor. In the cavinkare for

the secondary order the salesman of distributor visit the shops for the purpose of order.

In some area where the sale is very good in those areas the visit of salesman is twice in

a week.

Some times I thought that the salesman are not working properly or they are not taking

order properly, at that time I went to market and I have taken the order from the retailers

at the same time I have also shown the salesman how to take the order

Visibility of CavinKare products in the market


10%

20%

30%10%

5%

10%

15%

Visibility

Chik ShampooNyle ShampooIndica DyeFairever CreamHi5 DeoSpinz PowderSpinz Deo

Availability of shop

10

200

400

600

800

1000

1200

1400

TOTAL SHOPSHUT DOWNN/ACLOSED


PHYSICAL STOCK CHECK REPORT

Rs name: balak sales agency Date: 28.05.2010 Town: Mumbai

Boxes

Stock provide

d by compan

yAvailable stock

Difference

Chik 4 ml (0.50 ) 5 4 1Chik 8 ml (1.00 ) Chinni's pickle 13g x 720 west (1.00) Chinni's pickle 10g x 720 west (0.50) Adidas body spray 150 ml- 24 pcs 9 2 7Adidas after shave 100 ml - 12 pcs Adidas eau de toilett 50ml - 24pcs Adidas eau de toilette 100 ml - 12 pcs Adidas shower gel 250 ml - 12pcs Adidas anti persperant deo 150 ml - 12pcs Chik satin 7ml-1200 pcs 18 10 8Chik satin 25 ml -192 pcs 5 4 1Chik satin 40 ml -144 pcs 3 3Chik satin 100 ml -120 pc 7 1 6Chik satin 200 ml -48 pcs 2 9 -7Chik satin 400 ml-24 pcs 1 1 0 Fairever fairness 9g-624 14 14 0Fairever fairness 25g-144pcs 3 2 1Fairever fairness 50g-72 pcs 1 1Fairever fairness 80g- Fairever fruit fcrm 9g - 624 pcs 3 2 1Fairever fruit fcrm 25g - 144 pcs 2 -2Fairever fruit fcrm 50g - 72 pcs 2 2 0 Indica black -420 pcs 7 0 7Indica 10 min 9 2 7Nyle 4ml -1600 pcs Nyle 8ml -1260 pcs 13 8 5Nyle 100 ml - 60pcs 10 7 3Nyle 200 ml - 36pcs 18 14 4


Nyle 450 ml - 24pcs 22 13 9Nyle 900 ml - 12pcs 34 26 8 Nyle strenth 100ml - 60 pcs 4 3 1Nyle strenth 200ml - 192 pcs 5 3 2Nyle strenth 450ml - 24 pcs Spinz deo 75 ml - 24 pcs 3 6 -3Spinz deo 150 ml - 24 pcs 11 5 6Spinz deo 150 ml (male) - 24 pcs 9 6 3 Spinz talc 20g - 192 pcs 33 30 3Spinz talc 50g - 160 pcs 13 10 3Spinz talc 100g - 96 pcs 3 5 -2Spinz talc 400g - 24 pcs 7 4 3

Nyle cold cream 9 gms - 624pcs Nyle cold cream 60 gms - 180pcs 6 5 1Nyle cold cream 100 gms - pcs Nyle cold cream 200 gms - pcs Nyle body lotion 25gms - 240pcs 6 6Nyle body lotion 100 gms - 120pcs Nyle body lotion 200 gms - pcs Nyle petroleum jelly 7-10ml - 450pcs Nyle petroleum jelly 60ml - 96pcs Acp - Yes Drcp - Yes Rssm prodctivity data - Yes Retail data card - Yes Total cases 286 200 86


Chapter-IV


Finding:

Half-rupee success

Last-mile travel

Product visibility ( jo dikhata hai vahi bikta hai)

Raising market share

II) Suggestions / Recommendations

SALES PROMOTION

VISIBILITY

SCHEME

PRODUCT EXTENSION

VISIT SALESMAN REGULLARLY


conclusion

So the fact is Mumbai market has great potential to which just waiting for

tapped

Ultimately, the ball lies in court of cavinkare marketer

It is all about how they approach the market, takes up the challenge of

selling product and concepts through innovative media design and more

importantly alternatively

The success of the cavinkare is completely depends upon the

channel as well as the members of the channel.

availability and visibility of our product in the outlet, with our competitors

is very important because ultimately direct effect on company sales


Annexure (Questionnaire)

Questionnaire for retailer & medical shop

1) Do you keep CAVINKARE Products?

Yes

No

2) From where do you purchase CavinKare product?

Retail Wholesaler (Name) _____

Company Distributor (Name)_______

3) Does our salesman regularly visit?

Yes

No

4) How frequently he visits?

Weekly

15days

0ne months


Questionnaires for distributer.

1) Do you keep CavinKare Products?

Yes

No

2) Which brands do you keep?

__________.

3) How many outlets (Stores) do you have?

__________.

4) How many SALESMAN do you have?

__________.

5) What is your Annual Turnover?

___________.


Bibliography;

Brand Management – The Indian Context, YLR Moorthi, Vikas Publishing House Pvt. Ltd.

www.cavinkare.com www.cavinkare/profile

http://en.wikipedia.org/wiki/Fast_moving_consumer_goods. www.ibef.org Marketing Management- Philip Kotler www.cavincomm.com/eps

http://www.ibef.org/

http://en.wikipedia.org/wiki/Fast_moving_consumer_goods

http://www.cavinkare/profile

http://www.cavinkare/

final cavinkare project done

Documents

sanket bhagwan shete

data analysis

stockiest route list

personal care products

channel sales management

covered retail

covered medical shops

route list