summer internship
TRANSCRIPT
SUMMER INTERNSHIP
On
Market research on general trade and modern trade
By
Prachi SinhaA0102215009
MBA Class of 2017
Under the Supervision of
Mr. Rajeev GuptaAssistant Professor
Amity Business School
In Partial Fulfilment of the Requirements for the Degree of Master of Business Administration – Marketing & Sales
At
AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
1
DECLARATION
Marketing research on general trade and modern trade (FCEL- Chandigarh region)
I declare
(a) That the work presented for assessment in this summer internship Report is my
own, that it has not previously been presented for another assessment and that my
debts (for words, data, arguments and ideas) have been appropriately acknowledged.
(b) That the work conforms to the guidelines for presentation and style set out in the
relevant documentation.
(c) The Plagiarism in the report is __________ % ( permissible limit is 15 % )
Date: ……………
Prachi
Sinha
A0102215009
MBA – M&S (Class of 2017)
2
CERTIFICATE
This is to certify that Prachi Sinha student of Masters of Business Administration –
M&S at Amity Business School; Amity University Uttar Pradesh has completed the
summer internship Report on “Marketing research on general trade and modern trade
(FCEL- Chandigarh region)” under my guidance.
The report has been checked for Plagiarism and is within limits of acceptance.
Rajeev Gupta
Assistant Professor
Amity Business School
3
ACKNOWLEDGEMENT
As a part of our course curriculum, I had to do 6 weeks long summer internship to get the
right exposure to the practical aspects of MBA. I got an opportunity to work upon this project
entitled “Marketing research n general trade and modern trade (FCEL- Chandigarh
region)”
I have made efforts in this project, however, it would not have been possible without the kind
support and help of many individuals. I am glad to extend my heartiest thanks to everybody
who helped me through the successful completion of my project, which has been a great
source of learning and experience for me.
I am thankful to the people who spared their precious time for carrying out the surveys and
providing relevant information.
I am highly indebted to my faculty guide Mr. Rajeev Gupta and my industry guide Mr.
Inderpreet Sodhi for their constant supervision as well as for providing necessary information
regarding this project.
My special gratitude and thanks to my dear parents for giving me so much attention and
motivation.
Student’s Signature
Prachi Sinha
Date:
4
TABLE OF CONTENTS
1. Introduction................................................................................................ ......................7
2. Literature Review…………………………………………………………………….10
3. Research Methodology………………………………………………………………13
3.1 Research design…………………………………………………………………........13
3.2 Objective of the study……………………………………………………………......13
3.3 Data collection……………………………………………………………………......13
3.4 Method of collecting information…………………………………………………....14
3.5 Sampling technique……………………………………………………………….......14
3.6 Time duration……………………………………………………………………........14
4. Data Analysis and Interpretation……………………………………………………15
4.1 Analysis on retailers.......................................................................................................15
4.2 Analysis on bodywash...................................................................................................20
4.3 Analysis on hand sanitiser..............................................................................................24
5. Findings ……………………………………………………………………………......29
5.1 Retailers..........................................................................................................................29
5.2 Body wash......................................................................................................................31
5.3 Hand sanitiser.................................................................................................................32
6.Conclusions & Recommendations……………………………………………………….34
6.1 Retailers............................................................................................................................34
6.2 Body
wash.........................................................................................................................37
6.3 Hand sanitiser...................................................................................................................39
7. References …………………………………………………………………….....……...41
8. Annexure………………………………………………………………………………...42
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ABSTRACT
In case of various retailers there are many of them that has a huge presence in general
trade and modern trade, the question arise that what is a general trade and modern
trade? In retail sector a general trade is an unorganized store layout whereas a modern
trade involves stores which comprise of hyper store and supermarket is an organized
store where consumers can get a large variety of products and various brands, which
might not be available in general stores. FMCG’s try to manage the retailers for
improving efficiency and availability of their products.
The aim of the study is to analyze the market f Chandigarh and find out the level of
awareness and acceptability for specific products of KARA like bodywash and hand
sanitier, therefore the objective is to analyze and find out ways to reduce bottlenecks
found in the marketing and distribution of these products and how the company can
manage and maintain relationships with the retailers.
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CHAPTER 1
INTRODUCTION
The Research titles “Market Research on general trade, and modern trade”. It has been observed that about
30-40% of the revenue is generated through general and modern trade, so FMCG’s try their level best to
attract and retain the retailers to sell their products, because the companies understand the importance of
modern and general trade channels of distribution. Companies like Hindustan Unilever, GlaxoSmithkline
Consumer Healthcare (GSKCH), Godrej Consumer Products (GCPL), Dabur, Nestle and other FMCG’s
always are focusing on designing initiatives for increasing returns from such trade channels, which
includes hypermarkets and supermarkets. From in-store promotional activities and unique retail package
offerings to training and developing a specialised team for modern trade, FMCG companies are leaving no
stone unturned. People have become more aware, more digitised, and more innovative and companies have
to match their offerings with people’s pace for long running in the market. Another very important feature
of these members of supply chain is that they are the ones who interact with the customers, and understand
them in a better way, so this feature can be used by the company for consumer research and understanding
their target market in a better way. The research will help is giving insights as to what are the main factors
that the retailers consider before accepting the company’s products and what should the company provide
from their end, so that there exists a win-win situation for both the parties. The retailers are henceforth a
very important member in a supply chain from the point of view of a consumer durable manufacturer. So
this research will help the companies in dealing with the retailers in a better and amicable way. Another
importance of the retail distribution system is that from the basis of the characteristics of the products the
companies can distribute the product, like in case of a premium product, hypermarkets are the best place.
FMCG companies find it easier to manage sales at the point-of-purchase because of effective inventory
management systems that characterise the modern format. “It is easier for a company to introduce a new
product through a large retail chain having national presence. It can give the initial visibility support that
can translate into sales,” says Purunendu Kumar, associate vice-president (retail and consumer goods),
Technopak KSAKumar.
Business to business is another important segment from the point of view of an FMCG company, as the
company has to deal with other companies as well apart from the distributors and consumers for future
growth prospects and for increasing its market base. Kara a well known brand under Future Consumer
Enterprise Limited deals with various beauty salons, car showrooms, hotels, etc. and these form their target
business opportunity. So a company has to design a strategy for promoting their brand not only for the sake
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of informing the customers but also to convert the point of purchase into sales, basically generating sales
revenue. Kara’s core competency is asked to a layman would be wipes and so considering wipes as its
core product, if the company decides to tap the beauty salons and ask them to buy their wipes for their
utility is a business to business strategy adopted by Kara. Hence fmcg’s understand the importance of b2b
so they tend to make their product in such a way that businesses can also use them for their need. When
businesses are the target customers, fmcg’s has to design the marketing strategy likewise. And this research
will help in providing points and areas where an fmcg can tap a business; the research will provide the
strategy that can be developed for the same. For this purpose a case study on Kara’s (FCEL) general trade,
modern trade and business to business marketing strategy will be taken into consideration.
Purpose of the study:
1. To find out the factors which the retailers consider before buying products from the manufacturers
2. To find out the preference of the consumers in relation to Kara’s hand sanitiser and body-wash
3. To find out ways to promote Kara’s caremate sanitiser and thinkskin bodywash to increase its
market share
4. To assess and find out the best ways for popularising newly launched products.
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ABOUT THE COMPANY (FCEL)
FCEL is one of the first sourcing to supermarket Food Company in India which comes under Future
Group. From the growing of the seeds of food at a farm to its consumption, the company does all. Its
activities range from sourcing, processing, retailing, to final act of consumption.
Under FCEL, commodities of best quality is comprised, including extensive portfolio of high quality
brands in food, building urban convenience store for metros and on the other hand cash and carry rural
distribution system for other cities, covering whole of India.
In the Research paper, the products taken into consideration comes under the brand of “KARA” and
namely includes, all variants of face/hand wipes, hand sanitizer (CAREMATE), and body wash (Think
Skin).
FCEL being India’s largest and most extensive sourcing to supermarkets FMCG company, is incorporated
on superior Indian consumer’s preferences and their insights, the company tries to constantly expand its
business’s horizons and therefore today it is considered for having a vast and extensive portfolio of
established food and FMCG brands. It is involved in various sectors like food, ready to eat meals, snacks,
beverages, personal hygiene care and home care. And the various varieties of brands manage everything
from creation, formulation, branding strategies to quality control and marketing strategies. The company
aims at developing new product as per the utility of the Indian taste and preference pattern and to provide
innovation to these products as well.
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CHAPTER 2
REVIEW OF LITERATURE
Ailawadi et keller (2004). The paper talks about the importance of branding in relation to a retail sector,
and the paper tells how branding has become one of the topmost priorities as an intangible asset and as the
management priorities. And in the same way branding has posed an extremely important factor in a retail
industry, given a highly competitive industry even retailers need to create their own brand image for
standing out amongst the masses. As the number of retailers has always seen increasing therefore in order
to create a large loyal customer base and to tap their preferences and choice, branding is an essential
element for retail management. And the research also tells how through branding retailers can strengthen
their customer base and for that a thorough research is needed related to the manufactures and the products
they want to deal with. Therefore a special attention has to be paid by the retailers on the manufactures,
and the brand which they are offering so that the retailers can connect the brand with their own brand. The
study came to a conclusion that retailers in order to create an appropriate brand, should work on effective
research towards the manufacturers they deal with, for its them who’s products the retailers will further
transfer as their very own label. Therefore this study provides insights on retailing and how retailers lure
their customers through their branding tactics.
Davis (1990). There are 2 revolutions in retail mercantilism within the history of distribution; the
emergence of merchandising as a specialist operate and also the growth of multiple merchandising. The
slow rate of amendment within the distribution system, once viewed from the attitude of future
management, has cared-for obscure the extent of a 3rd revolution, that of retail merchant power.
Penetration rates of own label merchandise, particularly, may be being seriously under predicted. The
strategic response by makers has been mixed and, arguably, inadequate within the circumstances. whereas
the standard client product manufacturer has developed associate understanding of the wants and needs of
the patron, less attention has been given to understanding retail merchant methods and the way the
manufacturer will tailor its provide to suit the individual retail merchant. Some choices square measure
given for thought, particularly attention on nearer collaboration between makers and retailers ad higher
integration of their contributions to the provision chain making mutual dependency
Godsell et towill (2011). The study involved a field‐based case study in a very fast-paced goods company
(FMCGCo) that wanted to spot the foremost relevant basis for providing chain segmentation. The findings
concerned that the study known demand identification at associate degree item level (using volume and
variability classifiers) because the primary driver of provide chain strategy. It conjointly developed a
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unique identification tool. This not solely segmental demand however known through the introduction of
the conception of filters a way for turning the results of the demand identification analysis into a segmental
provide chain strategy. This study helped in providing information how the chain can function effectively
for providing quality to the end users.
Srivastava(2006). This paper comprehensively examined and the state of provision and provided retail
chain practices in Asian nation. It involved thinking about the 2 one by one as they need still not integrated
seamlessly within the Indian context. Our study is predicated on each field observations and secondary
information. The project tend to specialize in provide chain collaboration and partnerships; provide chain
structure, facilities network style, transportation and provision and also the role of knowledge and
Communications Technologies (ICT). On-the-scene observations and informal discussion and interviews
with middle and high managers of twenty five choose corporations square measure distributed. The square
measure supported with information and knowledge from literature and different secondary sources. The
study analyzed and assessed provision and provide chain practices so as to recognise vital problems like
rising trends and areas of concern. The study helped in conjointly highlighting and addressing problems
associated with provide chain managers, Indian policy manufacturers and different stakeholders. It also
provides insights as to how the companies should manage their relationship with the retailers, and maintain
it for smooth and easy flow of goods from the manufacturers to the retailers.
Deepa S et Chitramani P (2013). The study involves a case study which talks about how various retailers
can gain competitive advantage, asdue to the emergence of various other retailers, the competition is
soaring, so every individual retailer must try to gain advantage over its competitors through not just
marketing mix tools but also through social media and other ways. As there is a paradigm shift in the
marketing perspective which now not only involves conventional methods but also internet as an important
medium, so the study provides with the insights that how the retailers should market themselves and
through the study, information can be drawn about various ways through which the retailers try to promote
the products and what the retailers expect from the products, so accordingly manufacturers can bring about
the changes or modification.
Ulaga et Eggert(1967). The study involved established models of buyer‐seller relationships, and that they
don't replicate social control stress on provider performance analysis once modelling business
relationships. Proposes that relationship price ought to be enclosed as a key constituent in such models.
And the study provided the recommendation that the companies should aim to explore the construct's links
with key constituents of relationship quality, i.e. commitment, satisfaction, and trust. And therefore the
result showed that relationship price is Associate in Nursing antecedent to relationship quality and
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behavioral outcomes within the nomological network of relationship promoting. Price displays a stronger
impact on satisfaction than on commitment and trust. Price additionally directly impacts a customer's
intention to expand business with a provider. In turn, its impact on the propensity to go away a relationship
is mediate by relationship quality. Contrary to previous analysis, trust doesn't seem during this study as
Associate in Nursing antecedent of behavioural outcomes, however as a negotiate of the satisfaction‐commitment link.
Baumgarth(2010). The purpose of this paper is to style and check a model for the interior anchorage of a
business‐to‐business complete via company complete orientation. The result enclosed that the structure of
the complete orientation model is supported by the results. The findings demonstrate the positive influence
of brand name orientation on market and economic performance. Smaller business‐to‐business
corporations exhibit lower levels of brand name orientation than larger counterparts, to their strategic
disadvantage. Line of business and management kind had no influence on complete orientation during this
survey.
Mulky(2013). An effective marketing is a supply of strategic advantage for firms. However, very little
analysis exists regarding the marketing structure in India that is basically ancient and quite distinctive. The
primary a part of this spherical table article provides an summary of distribution channels, significantly
their constituents and structure, with a special specialize in distribution channels in our country. The
second a part of the article reports on give-and-take with eminent tutorial and business consultants on the
challenges that firms in India face in coming up with, constructing, and managing distribution channels on
the bottom.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Objectives:
5. To find out the factors which the retailers consider before buying products from the manufacturers
6. To find out the preference of the consumers in relation to Kara’s hand sanitiser and body-wash
7. To find out ways to promote Kara’s caremate sanitiser and thinkskin bodywash to increase its
market share
8. To assess and find out the best ways for popularising newly launched products.
3.2 Research Design:
The Research Design adopted for this research is of descriptive research.
Descriptive Research Design:
Descriptive research can be defined as a research technique used to describe about the features or
characteristics of a population or a situation under studied. The technique does not answer questions
like how/when/why the characteristics occurred, instead it answers the "what" question (what are the
characteristics of the population or situation being studied?
Hence, Descriptive Research can be used to find out the factors on the basis of which the retailers can
be convinced for Kara’s products. And also to describe the characteristics of the consumer’s
preference related to the babycare wipes, thinkskin bodywash, and caremate sanitiser.
3.3 Data collection
Primary data has been used to arrive at a conclusion, from direct interaction with the Retailers,
consumers and target businesses.
The research methodology includes using the Primary data as a source for analysis and fulfilling the
objectives of the study. There are broadly two kinds of data, Primary Data and Secondary Data.
Primary Data is the first hand data, which we access directly from the target audience, through various
mediums like questionnaires, focus group, personal interviews, etc. secondary data on the other hand
is the indirect information which is accessed from magazines, newspapers, etc for this research paper
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we are using primary data as the main source for analysis in the form of questionnaire and secondary
source is also used through internet and books, research papers related to the topic.
3.4 Method of collecting information
Questionnaires focusing on the preferences of the consumers and retailers before making purchase
decision is included.
3.5 Sampling technique
For conducting the research convenience sampling was used and a sample size of 100 was selected.
3.6 Target population
People from Chandigarh were approached to fill the questionnaire. Mothers, Retailers and common
people were involved for research purpose. Age group selected to fill the questionnaire was 13 yrs and
above.
3.7 Time duration
A total of 6 weeks time was invested in conducting the study. This includes selecting the topic,
reviewing the literature, forming the questionnaire, collecting the responses, analysing the data and
providing the conclusion.
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CHAPTER 4
DATA ANALYSIS
4.1 The following data analysis is the outcome of the survey done about the retailer’s preferences:
1. If you are provided a flexible payment term from the suppliers, will you consider ordering the product
91.70%
8.30%
yes no
2. what is the factor you will consider the most before finalizing the order
30.8
23.1
30.8
15.4
costflexibilitydiscountspopularity of product
16
3. What importance do you give to the return policy for unsold products?
least important not important neutral important most important0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0.00%
15.40%
23.10%
38.50%
23.10%
4. What importance do you give to the gross margin while negotiating for the product?
least important not important neutral important most important0%
10%
20%
30%
40%
50%
60%
70%
80%
0.00%
7.70% 7.70%
69.20%
15.40%
17
5. What are the factors you consider for negotiating the ownership of the product?
53.80%
46.20%
inspection
monitoring quality
checking quantity
6. What do you expect the most from your supplier?
38.50%
38.50%
23.10%
reasonable pricebargaining powervolume discounts
18
7. Rank quality on the basis of importance.
least important unimportant neutral important very important0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
0%
8%
77%
54%
31%
8. Rank delivery on the basis of importance.
least important unimportant neutral important very important0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
0%
7.7% 7.7%
54%
31%
19
9. Rank innovation on the basis of importance.
least important unimportant neautral important most important0%
10%
20%
30%
40%
50%
60%
0.00%
7.70% 7.70%
53.80%
30.80%
10. Rank cost on the basis of importance.
least important unimportant neutral important most important0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
20
4.2 The following data analysis is for bodywash:
1. AGE
9.10%
45.50%
45.50% 13-2020-27above 27
2. OCCUPATION
36.40%
31.80%
9.10%
22.70%
businessstudentprofessionalothers
3. How do you normally wash your body?
take a bath
take a shower
use a tub
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
13.60%
77.30%
13.60%
21
4. Which product do you prefer to wash your body?
27.30%
72.70%
bar of soapshower gel
5. If you use bodywash then which brand do you prefer?
36.40%
31.80%
22.70%
9.10%
palmolivedovepearsothers
6. What factor do you consider for buying your preferred bodywash?
price
brand
advertisement
features
quantity
0% 10% 20% 30% 40% 50% 60%
50.00%
45.50%
31.80%
54.50%
27.30%
22
7. If you have used Kara's Thinkskin, how was your experience?
100%
very goodgoodnormalbadvery bad
8. If you have used Thinkskin bodywash, which factor did you considered before buying it?
brand
price
packaging
others
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
21.10%
31.60%
0.00%
57.90%
9. How often do you change your brand for bodywash?
5%
77%
18%
once every 6 motnthsonce a monthrarelynever
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10. Which factors can you consider for changing your preference of brands?
advertisements
quality
packaging
price
others
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
36.40%
81.80%
4.50%
59.10%
0.00%
11. If you have used thinkskin bodywash, will you prefer to buy the product again?
9.10%
90.90%
yesnonot used yet
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4.3 Following data analysis is for the usage of hand sanitisers:
1. Gender
55.60%
44.40%malefemale
2. Occupation
30.60%
61.10%
8.30%
proffessionstudententerprenueur
3. How often do you clean your hands in a day?
91.70%
8.30%
most oftensometimesrarely
25
4. What do you prefer the most for cleaning your hands?
91.70%
8.30%
liquid handwashsanitiserhand soap
5. How many times do you clean your hands?
8.30%
25.00%
66.70%
0-10 times10-15 timesmore than 15 times
6. When do you clean your hands?
after loo
hospital
touching a pet
contact with dust
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%
55.60%
30.60%
58.30%
77.80%
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7. Why do you clean your hands?
80.60%
16.70%
2.80%
hygienehabitothers
8. In case of hand sanitisers which factor do you consider the most before using it?
42.90%
42.90%
8.60%
5.70%
brandfeaturespriceothers
9. Which factors will make you change your preference for hand sanitiser?
8.30%
5.60%
5.60%
25.00%
36.10%
19.40%
priceproduct sizeschemesvariantsbrandadvertisement
27
10. Preference for hand sanitiser
71.40%
5.70%
2.90%
11.40%
8.60%
dettollifebuoylaveriekara's caremateothers
11. Have you heard of Kara's caremate hand sanitiser ?
33.30%
66.70%
yesno
12. If you have used the sanitiser, how was your experience?
30.80%
23.10%
42.30%
3.80%
very goodgoodnormalbadvery bad
28
13. Do you want to use KARA's Caremate sanitiser in future?
86.70%
13.30%
yesno
29
CHAPTER 5
FINDINGS
5.1 From the retailer’s research, the findings were as follows;
1) As studied from the survey, 90% and above number of retailers have opted for
flexible payment term in case of transacting with any company, so it makes it more
obvious that if the retailers are provided with a flexible payment term then they can
be easily negotiated into the transaction with any company.
2) 61.6% of the total retailers consider cost and discount as the main factos that can help
them in finalising the order from the company. And along with cost and discount even
flexibility of payment process is essential as discussed above. With 15.4% level of
importance for “popularity of the product” as a factor, it is one of the most implicitly
important factor for the business, as when the product is communicated well to the
public and is made attractive for the people, the retailers will go for them naturally.
3) As per the survey, 23.1% of the retailers find the “return policy” of the products
important, and 15.4% of them feel that it is not important, and other 23.1% of them
have neutral opinion.
4) Among different factors of importance for attracting the retailers on their side,
suppliers have to give ball in their court itself, as 38.5% of the retailers expect
products at reasonable price and bargaining power is also expected, so the suppliers
should aim for a flexible price and a convenient bargaining space, being provided to
the retailers.
5) Through my consumer survey it was found that maximum retailers prefer media and
advertisements for learning about brands and its different products, so social media as
a platform, and various other ways of branding using any of the aforesaid platforms
will deliver the product’s information to the retailers and the suppliers will not have
to put in extra efforts, the introduction part about the product and moreover the entire
influencing the retailer part can be skipped and direct final payment part can be
reached with success.
6) Most of the people said ‘MEDIA’ and ‘ADVERTISEMENT’. As most people are
involved into various forms of media like newspaper, magazines and even social
media which can create a great hype appropriate for the product to be promoted and
30
most importantly one thing to be kept in mind is that these retailers are to be
considered as consumers and so if the company wants to provide information about
the product, these mediums like social media and advertisements are great source.
31
5.2 From the consumer research for KARA’s bodywash, determined the following
findings;
1) As per the survey, it was found that 91% of the respondents were of above 20
years of age, and 36.4% of them were business people and 31.8% of them were
students, 9.7% of them were professionals and the rest (22.7%) comprised of
other sectors, and as the respondents included more students and business men,
the responses are analysed and concluded accordingly.
2) From the questionnaire it was also analysed that 36.4% people prefer Palmolive as
a brand for shower gel and 31.8% people prefer dove and 22.7% people prefer
pears and remaining 9.1% prefer other brands.
3) 77.3% of the people prefer showering and shower gel’s demand is naturally
created. As shown in the data analysis part where it shows that 72.7% of the
respondents prefer using shower gel, so this proves that people who shower prefer
shower gel more than a bar of soap or any other thing.
4) The survey shows that, 54.5% of the respondents consider features as an
important factor and then 50% of the people prefer price and 45.5% of them
prefer brand as an important and 31.8% prefer advertisements as a factor that
determines there buying behaviour, and 27.3% of them prefer quantity as an
important factor
5) Through the survey one of the important information came into the knowledge
that 90.9% of the people are not aware of the product, so they have to be educated
about the product.
32
5.3 From the consumer research for KARA’s hand sanitiser, determined the
following findings;
1) Through the survey results, it was found that 55.6% of the respondents were
male and 44.4% of them were women. In terms of distribution of the
respondents on the basis of their career, 61.1% of the respondents were
students and 30.6% of them were professionals and 8.3% of them were from
business class. So the results were analysed and concluded accordingly
2) 91.7% of the respondents have a keen habit of cleaning their hands
3) 91.7% of the respondents prefer liquid handwash more for cleaning their
hands over other sources
4) Through the research purpose visits at various hyperstores in Chandigarh and
observing the consumer’s behavioural pattern there, it became evident that the
people now days are seeking change and trying different types of products. As
there were instances where customers picked up a product just on the basis of
attractive packaging
5) 86.7% of the respondents prefer to buy the caremare handsanitiser of KARA.
6) Through the survey it was found that maximum of 77.8% of the respondents
clean their hands whenever they contact with dust, and 58.3% of them clean
their hands instantly when they touch pets, and 55.6% of them clean their
hands after loo and 30.6% do the same after coming from hospitals.
7) 80.6% of the respondents say that they clean their hands because of hygiene
8) 42.9% respondents say that they decide on purchasing a hand sanitiser on the
basis of the brand and features (42.9%)
9) 86.7% of the respondents can be lured to try & use the sanitiser if effective
and efficient marketing strategy is designed and delivered to the final
consumers on the basis of the consumer’s preferences and behavioural pattern.
10) 36.1% of the respondents say that brand plays a vital role in changing their
mindset and influencing them towards another brand and 25% of the
respondents seek availability of variants as an important factor for their
changing preferences, 19.4% of the respondents said that they find
advertisements influencing and 11.2% of them had equal say for schemes and
product size and 8.6% found price as an important factor.
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11) The following media is the main source of information as per the survey:
a. Friend/colleagues
b. Advertisements
c. Media
d. From the questionnaire
e. Metro station shops
f. Word of mouth
g. Newspaper
h. Retail shops
But the most people got to know about the product through a friend, and then
secondly through advertisements. But mostly people were not aware about the
sanitiser and got to know through this questionnaire itself and rest also had no
knowledge about it.
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CHAPTER 6
CONCLUSION AND RECOMMENDATIONS
6.1 Retailers :
1) “flexible payment term” as defined by one of the retailers themselves in their layman
language can be termed as any kind of concessions or discounts or in any case any
kind of assistance provided for payment purpose.
For a successful business every retailer should also be considered as an individual
customer, if we want to make the customer purchase out product we have to keep in
mind their convenience so even the retailers should be given an opportunity for easier
payment process, like early payment discounts, bulk discounts, instalment payment
process, etc.
The most efficient way is by designing a financing plan which would include the
main agenda of the company and the points on which the retailers can be given
benefits in such a way that the company can get its payment in proper manner and
there occurs no errors. Another very important point is that the company must keep in
mind that they have to think about the long term relationship with the retailer for the
company’s long run.
2) With cost and discount being major factors for coming into transactions with the
retailers, any business should first aim for reducing the cost but keeping in mind the
margin, if the price of one box of kara wipes if rs. 500, then start with rs. 700 and
then bargain and make rs. 500 minimum, one thing has to be made clear that while
negotiating with the retailers, their perception has to be taken into consideration,
because a deal is always formed between two or more parties not one. Secondly,
integrated marketing communication techniques have to be made more effective so
that the retailerare themselves well aware about the products and not much
influencing capacity is needed.
3) Suppliers whose products are subject to uncertain demand face a problem of inducing
retailers to stock those products. A supplier may attempt to compensate his retailers
by accepting returns of unsold goods for full or partial refunds of their purchase price.
The practice of returns policy has been reported widely in both research literature and
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business. The main objective of the return policy is to mitigate the risk of
overstocking, caused by uncertain demand that retailers face. Buyback policies are
commonly used in many industries, especially for products with short life cycles such
as books, CDs, holiday gifts, and computers.
4) If kara tries to lure the retailers by mitigating this risk then the retailers will feel free
to accept and purchase the order, the unsold stock of goods have no significance to
the suppliers nor to the retailers, but as the manufacturers of the products, the
suppliers can diversify this risk by first absorbing it then distributing it, by selling
them through other channels at a much lower price or using them as samples for
product demo. So as per the data suppliers first target would definitely be the 15.4%
of the retailers, as there will be no compulsion of negotiating with them the terms of
return policy, but with 46.2% (mainly 23.1%) of the retailers, the policy has to be
discussed and detailed in a better and descriptive manner.
5) Gross margin is the revenue left with the retailers after selling the products of the
suppliers to the customers. Naturally every retailer will aim for maximum profit, so
suppliers should aim for their aim and then initiate the transaction. Presently 1.2% is
the retail margin to the retailers for kara wipes, so this can either be increased or
changed as per the product and the brand, so the suppliers should keep this thing in
mind and promote the brand and the product in such a way that the retailers can earn
higher profits through margin and therefore this influences them to accept the
supplier’s order. Here again IMC and various tools of IMC and there execution plays
an important role for brand building can help provide a win-win situation for both the
parties.
6) For negotiating or cracking a deal with the supplier, a retailer has to take care about
certain important elements. Naming some important elements, inspection is one of the
most essential factor therefore the quality aspect of the product should never be
compromised from the side of the company, because once the “quality attribute of the
product is lost everything is lost. Suppliers should monitor and keep a check on the
quality aspect of their products and see to it that it fulfils all the norms of quality
perspective, so that none of the party has to compromise. Therefore after the deal, and
during the delivery of the products, each and every product has to be checked
minutely and monitored perfectly for any bottlenecks.
7) Among different factors of importance for attracting the retailers on their side,
suppliers have to give ball in their court itself, as 38.5% of the retailers expect
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products at reasonable price and bargaining power is also expected, so the suppliers
should aim for a flexible price and a convenient bargaining space, being provided to
the retailers.
Interacting with the retailers and learning their thought process, then analysing their
target and tapping them tactfully. So a simple recommendation can be to tap them
through them (obviously keeping in mind one’s own profit and sales expectancies)
Another important aspect of today’s changing environment is “INNOVATION”.
Suppliers have to keep this in mind that the customers nowadays go for uniqueness,
different preferences. So any company which aims for playing long in the market and
building one’s own empire, should lay 70% emphasis of product innovation and 20%
in promoting the brand and remaining in financing. Innovation creates brand image
like a fire break out in forest.
Taking example of KARA’s caremate sanitisers, if the brand is promoted through an
innovative and creative way then it can create a huge sensation, just idea is needed
and executor body is needed to execute the plans efficiently.
Through the consumer survey it was found that maximum retailers prefer media and
advertisements for learning about brands and its different products, so social media as
a platform, and various other ways of branding using any of the aforesaid platforms
will deliver the product’s information to the retailers and the suppliers will not have to
put in extra efforts, the introduction part about the product and moreover the entire
influencing the retailer part can be skipped and direct final payment part can be
reached with success.
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6.2 Bodywash:
1) Through the above analysis, it can be said that the major competitor of KARA is
PALMOLIVE and DOVE and then PEARS is also preferred by 22.7% of the people,
so KARA should try to gain a competitive edge over these brands by finding the
bottlenecks in its strategy of branding and then overcoming them through effective
strategies, and also positioning its brand by keeping in mind the points that can
provide the product a major strength over other brands. Like in case of KARA’s
bodywash, the price is a major factor that can act as strength as it costs rs.69 only
whereas other brands costs more than rs.100 , so keeping this thing in mind, KARA
should try to position itself in the market of bodywash as a brand that provides the
consumers, the same satisfaction level and experience of bathing at a reasonable
price.
2) Features being one of the most important factor which is considered before buying a
product means that if KARA lays emphasis on the product’s design and packaging ,
then it can very easily tap the maximum share of the bodywash’s market which is
currently being hold by PALMOLIVE , because of its products goof product design in
terms of the bottle, the content , the packaging and moreover how to advertise the
product and its ingredients on the cover of the bottle , makes a great deal of impact on
the consumers mind. Here I can say that the packaging of KARA’s bodywash bottle is
simple and not so eye catchy, so this bottleneck can be mitigated by increasing the
look of the bottle and making it more creative. As maximum potential of sales
happens in retail stores and grocery stores where all kinds of people come to purchase
the product, if KARA tries to place its products in such places where the maximum
people come sand which also involves students, the impact of this can be seen on the
sales of KARA’s bodywash, but KARA will have to give priority to the display part
of the product, they can make the product attractive through separate banners or
posters laying emphasis on the low price yet satisfying quality of the “THINKSKIN”
bodywash.
3) Due to current level of awareness, people have become very smart when it comes to
shopping and purchasing different types of products, and many even compare the
brands of similar products and purchases what suits them the best, so the objective
should be to become that brand which is always chosen over the other brand.
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4) If the company does not want to spend so much in advertisements or promotions, it
can always go for various other mediums like, personal blogs, social media
campaigns and other creative ways of enhancing the brand and its product; one idea
can include that displaying the best reviews of the product usage over different
ecommerce sites and it will directly help the customer in getting knowledge about the
product.
5) As the product is focused on its lower price, it can be placed accordingly as well, like
in easydays, store 99, where the maximum footfall exists because of the discounts and
pocket friendly rates of the products.
6) These 4.5% of the people who change their brand of bodywash, can be tapped
strategically towards thinkskin through above ways and many more.
7) Through the survey one of the important information came into the knowledge that
90.9% of the people are not aware of the product, so they have to be educated about
the product.
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6.3 Hand sanitiser:
1) For any specific product, it is not necessary that its competitor will only involve of
same nature or type, like for hand sanitiser dettol, lifebuoy’s hand sanitiser is not
only the competitor but even the hand wipes, and handwash of different brands are
competitions, there were instances of cannibalization where a product of the same
brand took over the sales of the other product (under the same brand). So here,
through the analysis it was found that 91.7% of the respondents prefer liquid
handwash more for cleaning their hands, so if any hand sanitiser company like KARA
wants to fight for their hand sanitisers usage, it has to fight against liquid handwash,
unlike brands like dettol and lifebuoy, KARA has not created a handwash to
cannibalize its own sanitisers, so here it gets a benefit.
2) KARA can create a medium for popularising its hand sanitiers and will have to face
competition from other sanitisers brand but is safe from cannibalization.
3) KARA can try to fight with brands like dettol & lifebuoy, who are the main
competitors by creating its recognition through advertisements or through effective
product development itself. Nowdays people have become very keen regarding the
products they buy and the value they get from the same, so in case of hand sanitisers,
their display stands can be made attractive for creating recognition and the stand can
be displayed at various hyperstores and other retail store.
4) If a company wants to stay in the market for long terms, initial sales are not
important, instead factors like recognition, perception and customer loyalty is
important and if the recognition occurs people will start trying the product and if the
product succeeds in satisfying the person, customer loyalty might be created
5) There are various ways through which a brand can be communicated to the end
customers and that involves various creative and innovative ways, social media
marketing , blogging, poster advertisements and many more.
6)As through the survey it was found that maximum people interested in purchasing the
hand sanitiser is youth , therefore KARA has to design its marketing strategy as per
the target that is the youth, so the company can create eye catchy, youthful stalls and
stands and make the youngsters try out the sanitisers and then experience the usage
there itself.
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7) Free samples can also be given to the people as a token for creating recognition and
one of the positive point for KARA is that people are willing to try the sanitiser
86.7% of the respondents prefer to buy the caremare handsanitiser of KARA.
8) One of the major loopholes found regarding the product is that people are not aware
about the product, the major goal for KARA should be to create maximum coverage
of recognition all around Chandigarh and that too tactfully, the packaging of the
sanitiser can include small icons showcasing the usage of the product, as this will
create direct and usage demand.
9) As 80.6% of the respondents say that they clean their hands because of hygiene , so
advertisements showing use of KARA sanitisers for hygienic purpose can be
showcased. With the increased use of the social media and its popularity among the
youth, KARA can launch a small video, where it showcases its product and
effectively delivers the information to the people.
10) Anna Hathaway is a very famous Hollywood actress, and she is well known for her
rigorous usage of the hand sanitisers, because of her being a cleanliness conscious
person, and KARA can use her habit to lure the customers through attractive posters
& positioning them at mega/hyper stores and malls where there is maximum number
of Hollywood watching Anna Hathaway recognizing people.
11) As maximum respondents say that they decide on purchasing a hand sanitiser on the
basis of the brand and features (42.9%), so KARA should work towards creating
recognition and making a loyal customer base and further enhancing the brand
through marketing communications. In advertisements or posters or blogs or any
other medium if the hand sanitiser’s features are mentioned and given importance to
then no brand can beat the caremate sanitiser.
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References
In-store marketing. Shaping retail, Kelley School of Business
Ailawadi & keller (2004). Strategic retailing of private labelling products
Iyengar J & Belvalkar M. Case Study of Online Banking in India: User
Behaviors and Design Guidelines
Kevin Lane Keller (2004). Brands and branding: Research findings and
future priorities, Tuck School of Business Dartmouth College Hanover
Calvo-porral (2013). Measuring the influence of customer based store on
brand equity in the purchase intention, University of Canada.
Dabija dan cristian (2011). Study on retail brand awareness in retail, faculty
of economics and business administration
Hui-chu chen (2004). Brand equity, marketing strategy, and consumer
income: a hypermarket study, transworld university
Yi Zhang (2015). The impact of brand image on consumer behavior: a
literature review, department of marketing, management school, Jinan
university, China
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ANNEXURE
Questionnaire on Retailers:
1) If you are provided a flexible payment term from the suppliers, will you consider to order the productYes/no
2) what is the factor you will consider the most before finalizing the order (choose any one/ multiple options)a) Total costb) Flexible payment processc) Discountsd) Availability of liability insurance certificatee) Popularity of the product
3) What importance do you give to the return policy for unsold products? (linear scale)
Least important 1 2 3 4 5 most important
4) What importance do you give to the gross margin while negotiating for the product? (linear scale)
Least important 1 2 3 4 5 most important
5) What are the factors you consider for negotiating the ownership of the product? (linear scale)
Least important 1 2 3 4 5 most important
6) What do you expect from your supplier? (multiple options)a) Reasonable priceb) Bargaining powerc) Volume discountsd) All of the above
7) rank 'quality' on the basis of importance (linear scale)
Not at all important 1 2 3 4 5 very important
8) rank 'delivery' on the basis of importance
Not at all important 1 2 3 4 5 very important
9) rank 'innovation' on the basis of importance
Not at all important 1 2 3 4 5 very important
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10) rank 'cost' on the basis of importance
Not at all important 1 2 3 4 5 very important
11) how do you want to be informed about new products? (short answer)
Questionnaire on body wash:
1) Name:
2) Age:
a) 13-20b) 20-27c) Above 27
3) Occupation (multiple choice)a) Professionalb) Studentc) Business
4) How do you normally wash your body? (checkboxes)a) Take a bathb) Take a showerc) Use a tub
5) Which product do you prefer to wash your body? (multiple choices)a) Bar of soapb) Shower gelc) Only water
6) If you use body wash then which brand do you prefer?a) Palmoliveb) Dovec) Pearsd) Kara’s Thinkskin
7) What factor/factors do you consider for buying your preferred body wash? (checkboxes)a) Priceb) Brandc) Advertisementsd) Featurese) Quantity
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8) If you have used Kara's Thinkskin, how was your experience? (multiple options)a) Very badb) Poorc) Normald) Goode) Excellent
9) If you have used Thinkskin bodywash, which factor/factors did you considered before buying it? (checkboxes)a) Brandb) Pricec) Packaging
10) How often do you change your brand for bodywash? (multiple options)a) In 3 monthsb) In 6 monthsc) Rarelyd) Never
11) Which factor/factors can you consider for changing your preference of brands? ( checkboxes)a) Advertisementsb) Qualityc) Packagingd) Price
12) Will you prefer buying Thinkskin bodywash again? (multiple options)a) Yesb) Noc) Not used yet
Questionnaire on hand sanitiser:
1) Name :
2) Gender: male/female
3) Occupation (multiple options)a) Professionalb) Studentc) Business man
4) How often do you clean your hands in a day? (multiple options)a) Often
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b) Most oftenc) Sometimesd) Nevere) Rarely
5) What do you prefer the most for cleaning your hands? (multiple options) a) Liquid handwashb) Hand sanitiserc) Hand soapd) Others
6) How many times do you clean your hands? (multiple options)a) 10-15 timesb) 5-10 timesc) 0-5 times
7) When do you clean your hands? (checkboxes)a) After coming from loob) After visiting a hospitalc) After touching a petd) Coming in contact with duste) Before eating or touching food
8) Why do you clean your hands? (multiple options)a) Habitb) Hygiene
9) In case of hand sanitisers which factor do you consider the most before using it? (multiple options)a) Brandb) Pricec) Features
10) Which factors will make you change your preference for hand sanitiser? (multiple options)a) Priceb) Advertisementsc) Brandd) Schemese) Variantsf) Product size
11) Select your preference for hand sanitiser. (multiple options)
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a) Dettolb) Lifebuoyc) Laveried) Kara’s caremate
12) Have you heard of Kara's caremate hand sanitiser?Yes/no
13) How did you get to know about caremate sanitiser? (short answer)
14) If you have used the sanitiser, how was your experience? (multiple options)a) very goodb) goodc) normald) bade) very bad
15) Do you want to use KARA's caremate sanitiser in future?Yes/no
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