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Submitted By : Satyabrata Kundu 09BS0002100 ICFAI Business School Evaluating all the parameters of launching a new Skin Care Product

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Page 1: Summer Internship College)


Submitted By:

Satyabrata Kundu


ICFAI Business School

Evaluating all the parameters of launching a new Skin Care


Page 2: Summer Internship College)





Evaluating all the parameters of launching a new Skin

Care Product

Faculty Guide Company Guide

Prof. H.V.Kothari Mr. Pradeep Kumar/Mr. Pankaj Bansal

ICFAI Business School Brand Manager/Brand Executive

Noida. Emami Limited.


Submitted by

Satyabrata Kundu



687, Anandpur, EM Bypass, Kolkata 700 107.

Page 3: Summer Internship College)



EMAMI/HRD/KB689 February 14, 2010

To Whom So Ever It May Concern

This is to certify that Mr. Satyabrata Kundu, Enrolment No.-09BS0002100, IBS Kolkata has

been selected by Emami Ltd. for doing 14 weeks summer training in our organization

commencing from 15th

February 2010 to 21st May 2010 in Marketing Department. Mr.

Satyabrata Kundu will be required to be based at New Delhi for this project.

Statement of Authentication

I, Satyabrata Kundu certify that this report is my own work, based on my personal study and/or

research and that I have acknowledged all material and sources used in its preparation, whether

they be books, articles, reports, lecture notes and any other kind of document, electronic or

personal communication. I also certify that this report has not previously been submitted for

assessment in any other unit, except where specific permission has been granted from all unit

coordinators involved, or at any other time in this unit, and that I have not copied in part or

whole or otherwise plagiarised the work of other students and/or persons.

Satyabrata Kundu


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This project is prepared in fulfilment of the Summer Internship Program (SIP) under the Masters

in Business Administration (MBA) course of ICFAI Business School, Kolkata.

While preparing this report I was aided by a number of people. At this time of completion, I

would like to express my sincere appreciation towards them.

I am very grateful to my faculty guide, Prof. H.V.Kothari for his valuable and timely guidance

throughout the project. His feedbacks have been very useful in preparing this report.

I express my gratitude to Mr. Pradeep Kumar, Brand Manager, Emami Ltd for guiding me and

supporting me through this project. I also express my heart felt gratitude to Mr. Pankaj Bansal,

Brand Executive, Emami Ltd for guiding me and supporting me through this project.

I also take this opportunity as privilege to articulate my deep sense of gratefulness to Mr.

Dharmendra Kumar (Area Sales Manager, Delhi) and Mr. Pradeep Kesar (Area Sales

Manager) and the staff of Emami Delhi for their timely help and positive encouragement. It was

a pleasure to work with these people and some other project trainees as a team and a family.

They have been a source for inspiration to me and I am indebted to them for initiating me in the

field of research.

The project could not be complete without their able support and guidance. Thanking them is a

small gesture for the generosity shown.

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1. AUTHORIZATION AND UNDERTAKING……………………………………………... 03

2. ACKNOWLEDGEMENT……………………………………………………………………. 04

3. EXECUTIVE SUMMARY …………………………………………………………………. 06

4. COMPANY OVERVIEW.…………………………………………………….……………. 08

5. FMCG SECTOR IN INDIA...………………………………………………………………. 12

6. BRAND BOROPLUS ………..………………………………………………………………. 13


8. ABOUT THE PROJECT……………………………………………………………………… 21

9. CONSUMER ADOPTION PROCESS ……………………………………………………… 23

10. ABOUT THE PRODUCT…………………………………………………………………....... 24

11. OFFTAKE SALE REPORT ANALYSIS………………………………………………….. 26

12. CUSTOMER FEEDBACK ANALYSIS……………………………………………………. 31

13. CUSTOMER RESPONSE ANALYSIS…………………………………………………… 33


15. BUSINESS RESEARCH METHOD…………………………………………………….. 37

16. RECOMMENDATIONS…………………………………………………………………. 47

17. APPENDIX……………………………………………………………………………………. 48

18. REFERENCES………………………………………………………………................... 61

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This project is prepared in fulfilment of the Summer Internship Program (SIP) under the Masters

in Business Administration (MBA) course of ICFAI Business School, Kolkata.

Emami Ltd, the flagship company of the Rs2000 crore Emami Group, is a leading player in the

personal and healthcare consumer products industry in India. A jewel in the crown of the

conglomerate, the company is a coveted Rs700 crore business entity engaged in manufacture and

marketing of health, beauty and personal care products that are based entirely on ayurvedic

formulation. Emami identified two main sectors in the market and aimed to target it by extending

the Brand Boro Plus.

Skin Treatment

Skin Care

The brand identity of BORO PLUS was also taken into consideration and a detailed study was

conducted to understand the positioning of the brand.

The following project is aimed at evaluating all the parameters associated with launching a new

skincare product during the test launch. The product, Boro Plus Intensive Skin Therapy Cream

(BPISTC) was launched in select 500 outlets of Delhi and evaluation of its performance was

done by analysis of data on parameters such as

Window Display,


In Shop promotion,

Consumer Surveys,

Tracking off-take sales from stores (during & after In Shop promotion) etc.

During the test launch all earmarked areas were carefully monitored in terms of above mentioned

parameters to ensure that the new product launch was a success. All major and minor

deficiencies found were noted and streamlined and shall not be replicated during the nationwide


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Prospective customers were contacted during In Shop promotion and actual buyers after 6-10

weeks of use of the cream in order to generate Customer Response Analysis and Customer

Feedback Analysis respectively to gain valuable insights into consumer buying and re-buying

behaviour. After a detailed analysis of these surveys, close indirect competitor brands of BPISTC

were identified and mapped.

A business research method named Discriminant Analysis was used to generate a predictive

function called Discriminant function to classify potential customers as Purchasers or Non-

Purchasers. The findings which came into light were that 91.7% customers purchased the cream

by believing on the proclaimed benefits (performance) as the behavioural pattern and the

discriminating factor (performance) were strongly co-related. Any future customer would also

buy the cream based on the performance of the cream as this variable came out to be the best

predictor. Also the analysis was perfect as 100% cases were correctly classified and no errors

were recorded.

Few recommendations that can help in the successful nation-wide launch of BPISTC sum up this

project report. It includes, introducing advertisement campaigns to increase awareness of this

innovative product.

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Emami Ltd, the flagship company of the Rs 2000 crore Emami Group, is a leading player

in the personal and healthcare consumer products industry in India. A jewel in the crown of the

conglomerate, the company is a coveted Rs 700 crore business entity engaged in manufacture

and marketing of health, beauty and personal care products that are based entirely on ayurvedic


Established by Mr. R S Agarwal and Mr. R S Goenka in 1974, Emami Limited has over

25 brands under its portfolio. The company‟s financials show it has repeatedly outperformed the

industry standards. Emami Ltd has maintained a CAGR of 25% over the last three years

compared to the industry average of 16-17%

Understanding the human needs and fulfilling them by dint of technical research is a

positive feature of Emami. This is being made possible by Himani Ayurveda Science Foundation

(HASF) that generates the very best of ayurvedic formulations. The foundation‟s unique range of

healthcare products aptly caters to consumer needs. The world class quality control methods and

processes maintained by HASF ensure optimum utility of each ingredient. The foundation is

completely engaged in constant innovation and pharmaceutical enhancements.

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Boro plus brand is the market leader in the antiseptic cream segment; the Navratna Oil is

also in the pole position in the cool oil segment. „Fair and Handsome‟ is the pioneer in the

fairness cream for men segment. Emami‟s products in different categories like cool oil, antiseptic

cream, fairness cream for men, and the crème herbal hair pack have carved a niche for

themselves in their respective segments.

Boroplus has been selected as among the top 100 brands by the Brand Equity of The

Economic Times. In 2006 and 2007, Navratna has been ranked the 6th Most Energized Indian

Brand by the DY&R Brand Asset Valuator.

Sona Chandi Chyawanprash, Himani Fast Relief, (ayurvedic pain relief ointment)

Mentho plus (pain balm), Hairlife (crème herbal hair pack) and Emami Malai Kesar (cold cream)

are also major players in their respective categories. Brand extensions have helped Emami

consolidate its position in the market and also cater to varied consumer needs.

Emami has recently entered the glycerine soap category with Emami Pure Skin and

petroleum jelly category with Emami Vasocare.

Emami has successfully established its brands through strong celebrity endorsements. It

is the only corporate entity in the country to have both Amitabh Bachchan and Shah Rukh Khan

as brand endorsers for the same brand, Navratna. The concept of brand endorsement by

celebrities has been successfully experimented in case of 25 brand launches. Besides Amitabh

and Shah Rukh, other celebrity endorsers of Emami‟s brand include Madhuri Dixit, Kareena

Kapoor, Govinda, Sourav Ganguly, Chiranjeevi, Surya and Upendra among others.

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Emami covers all the states with 28 depots across India. Its supply-chain management

assumes immense significance which was aptly reflected through remarkable expansion in

dealer-distribution network, outlets and manpower. The domestic sales and distribution division

directly covers 4,00,000 outlets all across the country along with an additional 2100 modern

retail outlets. Emami‟s products reach out to nearly 30 lakh retail outlets across India through

4,000 distributors.

The company has ultra modern manufacturing facilities all across India including Kolkata

(West Bengal), Guwahati (Assam), Pondicherry, Uttaranchal and Baddi (Himachal Pradesh). It

has adopted the Total Quality Management system and all its manufacturing facilities have

received cGMP and ISO 9001:2000 certifications.

Recently Emami Limited with an investment of Rs 700 crore has acquired major stake in

Zandu Pharmaceuticals Works Ltd on the basis of huge business synergy between Zandu and


Emami Ltd has recently been conferred the Most Enterprising Company of the Year by

IIPM (Indian Institute of Planning and Management) and The Sunday Indian publication of the

Planman Media Group. In 2007, the company received the Institute of Cost and Works

Accountants of India (ICWAI) Award for Excellence in Cost Management.

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Companies under Emami Group are :-

> Emami Paper Mills Limited

> Emami Chisel Art

> South City Projects (Kolkata) Ltd

> Advanced Medicare & Research Institute Ltd

> Frank Ross Limited

> Emami Realty Limited

> Emami Retail Pvt. Limited (Starmark)

> Emami Biotech Limited

> Susruta Clinic & Research Institute for Advanced Medicine Pvt. Ltd

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FMCG Sector India being one of the largest emerging markets with a billion plus population is

also one of the largest economies in the world in terms of purchasing power with a strong middle

class of over 500 million. Against this background the fast moving consumer goods industry

(FMCG) sector has continued to show good momentum. It witnessed a steady growth aided by a

strong demand from rural markets. However the industry has a long way to go, the per capita

consumption in most product categories are still low, indicating an untapped market potential.

Current Scenario due to various M&A strategies adopted by FMCG companies in 2006-07 the

size and scale of many have got a tremendous boost. For instance, according to Adi Godrej,

chairman, Godrej consumer products, their Keyline‟s buyout increased their sales turnover by

20% and as a result their profit would increase by 10%. The M&A trend took off in the year

2005-06 and continued enjoying the same momentum in 2006-07 as well. The companies

adopting such strategies enjoy economies of scale in marketing, sales and distribution. Further

their combined advertisement reduces the cost. Many FMCG companies has set their eyes on

filling the gap in quirking companies with a set of products as well as brands that compliment

their existing portfolios. Mr, Harsh Aggarwal and Mr. Mohan Goenka, directors of EMAMI

agrees that FMCG companies need to innovate continuously to ensure that input cost do not

affect their growth.

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Boro Plus Antiseptic Cream was launched under the Himani umbrella in 1984. In spite of being

pitted against a heritage brand such as Boroline, it has become the leader. Many additional brand

extensions followed Boro Plus included a prickly heat powder, summer and winter lotion.

Emami identified two main sectors in the market and aimed to target it by extending the Brand

Boro Plus. The sectors identified and the existing extensions in those sectors are

Skin Treatment

Boro Plus Antiseptic Cream

Boro Plus Prickly Heat Powder

Skin Care

Boro Plus Advanced Moisturizing Lotion (Summer)

Boro Plus Advanced Moisturizing Lotion (Winter)

The Boro Plus Antiseptic cream still being the leading brand in the skin treatment sector with a

74% market share (in volume) by April – March 2009 is not only the largest selling antiseptic

cream in India, but also in 30 countries including Russia, Ukraine and Nepal.

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• Color – Boro Plus Branding in Purple / Consistent Elements in Purple like swoosh

• Sensorial – All BP Extensions to have a unique fragrance or a tangible sensorial

differentiator against competitor in the category

• Natural / Herbal – All BP Products to have herbal cues in either product / perfume /

color etc. To be positioned as Natural Products

• Contemporary Design– Packaging to be contemporary and modern in look & feel

• Boro Plus Personality – Family friend you trust, Reliable/Dependable,


• Brand can be trusted to provide effective solutions for personalized problems and can be

relied upon like a family friend who delivers results

• Relationship – Expert Friend

• Boro Plus acts as an expert for specialized skin problems.

• She however doesn‟t have the formality or reverence of a higher authority, but is your

friend from next door.

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• Culture – Emerging Middle Class

• Deeply rooted to Middle Class values, yet progressive and forward looking

• Brand emulating current trends and moving towards a better future

(Brand is modern and talks to today’s generation without alienating traditional values)

• Reflection – Smart and well informed

• Users of Boro Plus are smart to avoid or tackle skin problems. They are well informed

about their skin‟s needs and take good care of it.

(Savvy about skin care needs, BP users know how to take good care of themselves)

• Self Image – Assured about Healthy Skin

As a discerning skin care user I‟m conscious about using products which keep my skin healthy. I

feel safe and assured with Boro Plus

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Research methodology is a way to systematically solve the research problem. It may be

understood as a science of studying how research is done. We can say that research methodology

has many dimensions and research methods do constitute a part of the research methodology.

The study of research methodology gives the student the necessary training in gathering material

and arranging or car-indexing them, participation in field work when required, and also training

in techniques for the collection of data appropriate to particular problem, in the use of statistics,

questionnaires and controlled experimentation and in recording evidences, sorting it out and

interpreting it. Knowledge of research methodology plays a key role in project work. It consists

of series of actions or steps necessary to effectively carry out research and the desired

sequencing of these steps.

Data Collection Method :

Data can be collected by Primary as well as secondary method.

Primary Data Sources

Questionnaire methods and discussions with consumers were used to collect data.

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Research Design:

Exploratory type of research designs adopted because sources of information are relatively few

and the purpose is merely to find and to understand the possible actions. The major purposes of

exploratory study are:

Identification of problem.

The precise formulation of problems including the identification of variables.

Formulation of alternative course of action.

Sample Design:

Sampling technique

Stratified sampling technique is adopted to conduct the research. Stratified purposive sampling is

a selection method for achieving a greater degree of representatives, therefore decreasing the

probable sampling error. It is based on the concept that a homogeneous population produces

samples with smaller sampling errors than does a heterogeneous population. Stratified sampling

is accomplished by placing all the members of the population into groups according to some

characteristics that is common among them, that is homogeneous subsets of the population. Then

specified number of unit is chosen from each of the groups or strata by purposive means.

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Research Methodology Applied in this Report

Sampling Method and Design

Stratified Sampling

Questionnaire Design

Exploratory Research

Descriptive Research

Quantitative Research

Qualitative Research

Primary Data Collection

Analysis of Primary Data and Secondary Data

Objectives of the project:

The objective of the project is primarily:-

To evaluate all the marketing, sales and promotional parameters relating to test launch of

a new skin care product (Boro Plus Intensive Skin Therapy Cream) in Delhi

To measure the customer reactions on the concept and product post usage of BPISTC

The objectives should be SMART objectives.

S- Specific

M- Measurable

A- Achievable

R- Relevant

T- Time bound

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The methodology of the project is as follows:

Stratified Sampling

Evaluation of Window Display / In shop Promotion / Merchandising / Feedback

collection from end consumers

Wet Sampling among prospective users / Understanding reasons for non-purchase

Consumer Adoption Process, Descriptive Research etc.

Research Area: Delhi

Respondent Profile: All Customers and Prospective Boro Plus


All Children and Adults

Primarily Women

(Majority of the respondents likely to be

Women who walk-in the stores)

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The project is carried out in three main phases, in a sequential manner:

The First phase of the project involves

Selecting 500 outlets out of a total of 15,000 outlets in entire Delhi region

Out of these 500 outlets 100 outlets are classified as Class A outlets and 400

outlets as Class B outlets depending on the sales provided to the parent company.

The Second phase of the project involves product placement and promotion in the select

outlets in the following manner:-

Class A:-

25 outlets 25 outlets 25 outlets 25 outlets

Window Display of


Window Display +

In Shop Promotion

Only In Shop



Class B:-

25 outlets 25 outlets 25 outlets 25 outlets

Window Display of


Window Display +

In Shop Promotion

Only In Shop



The remaining 300 outlets would have Window Display of the BPISTC or Merchandising.

Merchandising includes providing Dispensers, Back strips, Wobblers and Posters.

Note: - Class A outlets/stores with are supposed to be provided 24 pieces for sale initially and

Class B outlets/stores are supposed to be provided with 12 pieces for sale initially

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The Third phase of the project requires

The preparation of a detailed Questionnaire to gain understanding of the

consumer perspective on adopting and using such an innovative cream which is

totally new in the market and which provides a total solution to all skin problems.

During the activity of In Shop Promotion the promoters would explain the concept of this new

cream, the benefits and ingredients, distribute leaflets, indulge in wet sampling and fill up the

designed questionnaire. They would also in turn try to sell this new cream to the customers they


Analysing the data so collected and mapping the success of the launch of this new

Boro Plus Intensive Skin Therapy Cream. Also understanding the customer

feedback and suggestions through calling them up after a month of usage of

BPISTC so as to improve the product and taking care of all major and minor

deficiencies after this launch so that it can be launched in the entire nation with

huge success.

Analysing the offtake sale in outlets to check whether the customers have

understood the concept of this skin care product and re bought the cream after our

efforts to make them aware of BPISTC.

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Adoption is an individual‟s decision to become a regular user of a product. The consumer-

adoption process is followed by consumer-loyalty process, which is the concern of the

established producer.

Earlier, years ago, new product marketers used a Mass-Market approach to launch a new

product. This had two drawbacks. One, it called for heavy marketing expenditures and two, it

wasted many exposures.

These drawbacks led to a second approach which is called Heavy-User Target Marketing. This

approach made sense, provided that heavy users are identifiable and are early adopters.

However, even within the heavy-user group, many heavy users are loyal to existing brands.

New-product marketers now aim at early adopters and use the theory of innovation diffusion and

consumer adoption to identify them.

Stages in the Consumer-Adoption Process:-

Awareness: - The consumer becomes aware of the product but lacks information about


Interest: - The consumer is stimulated to seek information about the innovation.

Evaluation: - The consumer considers whether to try the product.

Trial: - The consumer tries the product to improve his or her estimate of its value.

Adoption: - The consumer decides to make full and regular use of the innovation.

Awareness Interest Evaluation Trial Adoption

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Himani had launched the Boro Plus Antiseptic Cream under its umbrella in 1984. Instantly it

connected with the consumers and became the No. 1 in its category.

Under this brand it has launched a new cream Boro Plus Intensive Skin Therapy Cream to

improve its skin care expert imagery

Most of our skin parts such as hands, knees, elbows and heels are quite rough and dry and a little

darker than the general skin colour. This is because these skin areas are most neglected by us in

daily life. This cream aims to provide a total solution to these skin problems by moisturizing the

skin against dryness, smoothening the skin against roughness and lightening the skin colour

against the dark skin.

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This cream is a totally herbal cream which includes ingredients such as Aloe Vera, Liquorice,

Glycerine, Wheat germ and Brahmi. Its herbal ingredients work efficiently on any skin

surface. It is also designed and developed in such a way that it can be used all throughout the

year as it is an all season herbal cream and by all age groups.

This cream is a completely different from other creams because no other existing single product

takes care of all the mentioned body parts. Further the product is water based and does not

induce perspiration and gets readily absorbed by the skin. As a result one wears a soft, smooth

and glowing skin 365 days a year.

Such a product is not available in India to provide a total solution and cure such skin problems.

Close competitors could be considered as Krack and Neutrogena but Krack is only for heels and

Neutrogena is only for hands.

This product is also priced very competitively and a 40ml pack comes for Rs.45 only.

This new skin care product is extensively proven on Indian Skin*:-

89% people discovered superior skin moisturization.

92% people felt their skin had become much smoother than before.

90% people experienced skin lightening


*Consumer tests on 100 respondents for 8 weeks

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In Shop Promotion

A total of 100 outlets were selected to have IN SHOP PROMOTION Activity. Out of these 100

outlets 50 outlets were Class A outlets/stores and 50 were Class B outlets/stores.

10 promoters were hired to carry out this activity in these outlets spread across the Delhi Region.

Each promoter was supposed to cover 10 outlets over a span of 1 month spending 3 days in each

outlet. Each promoter was given a 7 hour duty per day in each specific outlet. They were

assigned the job of explaining the new product, distributing leaflets to customers and fill up a

designed questionnaire to get the customer feedback. In this process they would also sell the

product to prospective users.

Since there are 5 zones in Delhi region, namely North, West, Central, East and South Zone 20

outlets from each zone were selected for the In Shop Promotion Activity.

According to the graph above, after completing the In Shop Promotion Activity there were 939

pieces sold to prospective users by the promoters. Each zone had an average sale of 190 pieces.

This figure of 939 pieces sold includes the sale over time irrespective of change in climatic

conditions. The In Shop Promotion Activity was started on February 24th

and it was quite cold in

Delhi then. The temperatures started rising in Delhi post the festival of Holi. Even then, the sales

did not drop. This proves that customers have welcomed the idea of a cream which can be used

all throughout the year and have shed off the inhibition that such a cream only works during


Looking at these figures it can be seen that the launch of Boro Plus Intensive Skin Therapy

Cream is a successful one.









No. Of Outlets Offtake Sale

In Shop Promotion

In Shop Promotion

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There were many outlets which did not have In Shop Promotion Activity. These 131 stores were

provided with merchandisers such as Dispensers, Wobblers, and Posters etc. A total of 3 to 6

pieces were placed in these stores for offtake selling.

According to the graph above, there was an offtake sale reported of 90 pieces till date. This

shows that customers have shown a keen interest in this new product without even getting a full

time visual display or any awareness scheme. They believe in the brand Boro Plus and such an

innovative product has been welcomed by the consumers.









No. Of Outlets Offtake Sale



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Window Display

In a sample taken of 25 outlets comprising of stores which have only Window Display of the

product, i.e. the customers being provided a visual display only, the offtake sale is reported of as

high as 59 pieces. This shows that if a product is good it doesn‟t need any promotion or any

additional effort to make it sell. The consumers accept and welcome the product happily.

Looking at these figures it can be seen that the launch of Boro Plus Intensive Skin Therapy

Cream is a successful one.









No. Of Outlets Offtake Sale

Window Display

Window Display

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Sale Comparison of BPISTC in A and B Class Outlets through

Different Activities

In Shop Promotion- 57.17%

In Shop Promotion + Window Display- 59.75%

Window Display- 12.61%

Merchandising- 16.32%

The launch of BPISTC is in its final stage. 100 A Class outlets and 400 B Class outlets were

selected all over Delhi. The following report is categorized in this method:-

13 A Class Outlets and 12 B Class Outlets- Window Display

13 A Class Outlets and 12 B Class Outlets - Window Display + In Shop Promotion

13 A Class Outlets and 12 B Class Outlets - In Shop Promotion

6 A Class Outlets and 19 B Class Outlets - Merchandising

It is found that the outlets which had Window Display and In Shop Promotion both recorded

the highest sale as customers were given both a visual display and wet sampling. This made

the customers more aware of the product and hence the sale was high. To be very specific the

there was a 59.75%% sale recorded. Since the customers were dealt personally the word of

mouth publicity also helped in bringing more customers to the outlets.

In contrast the outlets with only Window Display recorded an average sale as only visual

display was present and nobody was present to explain the benefits of the new product. So

few customers came to know that there is a new product launched. To be very specific the

there was a 12.61% sale recorded.

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On the other hand the outlets with In Shop Promotion Activity recorded a comparatively

better sale as major no. of customers was personally approached by the promoters. The main

aim was to reach out to as many customers as possible in three days. To be very specific the

there was a 57.17% sale recorded.

The outlets which were provided with only merchandising materials recorded a very poor

sale of 16.32% as no aggressive way was undertaken to make customers aware of BPISTC. It

was the ability of the retailer to sell as many pieces as possible.

The main observation noted is that there is an increase in percentage in sales if we combine both

A Class Outlets and B Class Outlets in a proportion of 13::12. The reason behind this increase is

because the customer footfall in B Class outlets is more than A Class outlets comparatively.

*Note: - % sales refers to no. of pieces sold to no. of pieces provided to


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No. Of Customers-166

No. of customers who gave proper response-101

Usage Time-4 to 10 weeks

Analysis of recorded Proper Responses:-

Concept Understanding-

99% customers liked the concept of this new cream and felt such a cream should be available in

the market to provide a total solution to skin problems


96% respondents were satisfied after using the cream

They mostly used the cream twice a day and found significant difference in their skin texture.


Average rating of the 100 satisfied customers was 7.5 out of 10

49 customers out of 100 respondents rated BPISTC as 8 or more.

14 customers rated BPISTC 9, 9.5 and a perfect 10. They were emphatic that such a cream is

now available in the market.

Resale Factor-

62% respondents said that they will “definitely” buy BPISTC again.

32% respondents said that they “may” buy BPISTC again.

6% respondents said that they “would not” buy BPISTC again.

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Problems Faced-

Only 1 customer out of 101 respondents reported itching and dryness after the usage of BPISTC.

3 customers didn‟t find the cream much effective; found it to be like any other product and have

stopped using BPISTC.

1 customer felt that excess cream comes out with a gentle squeeze of the tube.

2 customers felt that the fragrance of the cream is too loud and strong and it should be a little



9% customers out of 101 respondents feel that there should be a change in the price. They feel it

is a little costly. But they did suggest a price when asked. They wanted it to be Rs.40/-.

1% customers out of 101 respondents feel that there should be various sizes of the pack


Reasons of Customer Satisfaction-

Non greasy, non oily feel in summers as against normal cold creams

Good fragrance

Within budget

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This analysis is based on the 2159 questionnaires collected between 24/02/2010 and 05/04/2010.

These 2159 questionnaires are the ones which have a valid contact number of the customers.

There are also many questionnaires along with this count but those have not been taken into

consideration as they did not have a contact number mentioned. Apart from this 240 odd

questionnaires were not recorded properly and thus were not considered for evaluation.

These questionnaires were duly filled by the promoters during the In Shop Promotion Activity

while interacting with the customers and engaging in wet-sampling procedure.

Customer Perception

99% (approx 98.5%) of the customers do feel roughness, dryness, and darkness in body

parts like hands, knees, heels and elbows.

98% customers felt that this product can be used throughout the year.

Concept Explanation

Almost everybody i.e. 100% thought that there is a need for a specific/specialist product

which takes care of these neglected body parts.

99.5% of the customers liked and understood the concept which was explained to them

by the promoters during the In Shop Promotion Activity.

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Product Use

35% customers don‟t use any product for such problems as per the survey.

Various Products Usage

65% customers use various products for handling such skin problems.

8% customers use Nivea Cream

29% customers use Pond’s Cream

12% customers use Vaseline

14% customers use Fair & Lovely Cream

11% customers use Boro Plus Antiseptic Cream

26% customers use miscellaneous products

51% use Lakme

24% use Dove

8% use Ayur

8% use Olay

9% use other products such as


Lacto Calamine



Olive oil

Milk & Ghee


Vicco Turmeric

Emami Malai Kesar

Revlon any lotion etc.

The majority of the customers use PONDS Cold Cream for problems such as

dryness, roughness darkening of skin parts as evident from their response.

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Changes to be Brought

5% customers feel that there should be an introductory offer or discount given to them

when there is a launch of a new product.

6% customers feel that there should be a change in the price of BPISTC. Most feel that

they should get it for Rs. 40/-.

3% customers felt that the cream BPISTC was oily and sticky, had excess fragrance and

was coarse in nature.

Suggestions for Improvement

1% customers feel that the packaging should have a better attractive distinct look as it

looks similar to BPAC.

1% customers feel that there should be variants of the product i.e. small and big sizes so

that they have a choice to use it first. Most feel there should be packs available of 20 ml

and 10 ml.

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COMPARISON OF SALE (In Shop Promotion)

During In Shop Promotion which was from 24/02 to 05/04 there was a total sale of 52%. This

sale figure was achieved solely by the promoters.

After In Shop Promotion i.e. from 06/04 to 03/05 there is an offtake sale of 37% BPISTC


The offtake sales figures after In Shop Promotion were obtained and collected to ascertain the

acceptance of this cream and the re-buying behaviour of the customers.

As above mentioned sales figure is considerably high even after In Shop Promotion; and hence

this finding shows us that this new cream has been liked and adopted by customers.

Even after In Shop Promotion activity was over customers have visited stores and re-bought the

new cream.












During In Shop Promotion

After In Shop Promotion

Comparison of Sale

Comparison of Sale

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Discriminant Analysis

Basic Concept:-

Discriminant Analysis is a technique for analysing data when the criterion or dependent variable

is categorical and the predictor or independent variable are interval in nature. Discriminant

Analysis has two major uses: - Prediction and Understanding.

It involves derivation of a variate/ linear compound/ Discriminant function that is a linear

combination of the two or more independent variables that discriminate best between the defined

groups of the dependent variable

For predictive purposes, Discriminant Analysis provides a simple method for determining which

group a particular observation is more likely to be a member of. The steps for conducting

Discriminant Analysis are:-

I. Formulate the problem

II. Estimate the discriminate function coefficients

III. Determine the significance of the Discriminant function

IV. Interpret the result

Assumptions: Normality of independent variables

Linearity of relationships

No multicollinearity

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• Analysis and Holdout sample

• Centroid: Mean of the z-scores of all the objects within a group

• Classification matrix: assessing the predictive ability of the Discriminant function

• Discriminant weight/co-efficient

• Discriminant loadings: correlation between independent variables and the z-score for the

Discriminant function

• Hit ratio

• Wilks‟ lambda

Interpretation of results

• Whether the analysis is meaningful

Group Statistics

Test for Equality of Group Means (Partial F values

Pooled Within-Group Matrices (for multicollinearity)

Canonical Correlation

Wilks‟ lambda

• Evaluation of each Discriminant function

Discriminant weights (importance from standardized co-efficient)

Unstandardized co-efficient used to calculate Z-scores

Page 39: Summer Internship College)


Discriminant Analysis Output in SPSS

Analysis Case Processing Summary

60 100.0

0 .0

0 .0

0 .0

0 .0

60 100.0

Unweighted Cases


Missing or out-of-range

group codes

At least one missing

discriminating variable

Both missing or

out-of-range group codes

and at least one missing

discriminating variable




N Percent

Group Statistics

30 30.000

30 30.000

30 30.000

30 30.000

30 30.000

30 30.000

60 60.000

60 60.000

60 60.000














Unweighted Weighted

Valid N (listwise)

Tests of Equality of Group Means

.196 238.367 1 58 .000

.815 13.123 1 58 .001

.865 9.021 1 58 .004





Lambda F df1 df2 Sig.

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Analysis 1 Summary of Canonical Discriminant Functions


5.318a 100.0 100.0 .917



Eigenvalue % of Variance Cumulative %



First 1 canonical discriminant functions were used in the



Wilks' Lambda

.158 104.151 3 .000

Test of Function(s)



Lambda Chi-square df Sig.

Standardized Canonical Discriminant Function Coefficients









Structure Matrix









Pooled within-groups correlations between discriminating

variables and standardized canonical discriminant functions

Variables ordered by absolute size of correlation within function.

Canonical Discriminant Function Coefficients











Unstandardized coefficients

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Classification Statistics

Functions at Group Centroids








Unstandardized canonical discriminant

functions evaluated at group means

Classification Processing Summary






Missing or out-of-range

group codes

At least one missing

discriminating variable


Used in Output

Prior Probabilities for Groups

.500 30 30.000

.500 30 30.000

1.000 60 60.000





Prior Unweighted Weighted

Cases Used in Analysis

Classification Resultsa

30 0 30

0 30 30

100.0 .0 100.0

.0 100.0 100.0









1 2

Predicted Group



100.0% of original grouped cases correctly classified.a.

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Interpretation of the Output

Canonical Correlation-

The canonical correlation measures the association between the Discriminant scores and the

groups. Values close to 1 indicate a strong correlation between the Discriminant scores and the

groups. Here the value is 0.917. So the correlation is very strong.

Wilks’ Lambda-

Wilks‟ Lambda is the ratio of within-group to total variance. The value of Wilks‟ lambda

(0.158) is small. The value of Wilks‟ lambda ranges between 0 and 1 with a lower value

indicating better discriminating power of the model. So, the value 0.158 indicates that our model

has a very good discriminating power.


5.318a 100.0 100.0 .917



Eigenvalue % of Variance Cumulative %



First 1 canonical discriminant functions were used in the



Wilks' Lambda

.158 104.151 3 .000

Test of Function(s)



Lambda Chi-square df Sig.

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We have three independent variables namely-

Performance of the cream (BPISTC) [In terms of proclaimed benefits]

Price of the cream (BPISTC)

Variants of the pack available/desired (BPISTC)

From the table of Standardized Canonical Discriminant Function Coefficients we get that

Performance of the cream (BPISTC) has the highest coefficient (0.879). The absolute values of

these coefficients indicate their relative importance.

So, among the three independent variables Performance of the cream (BPISTC) is the best


Standardized Canonical Discriminant Function Coefficients









Structure Matrix









Pooled within-groups correlations between discriminating

variables and standardized canonical discriminant functions

Variables ordered by absolute size of correlation within function.

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Classification of buying behaviour of existing and prospective customers determining Purchasers

and Non-Purchasers can be judged from the Functions at Group Centroids Table.

In this table the means of group 1 (Purchasers) and group 2 (Non-Purchasers) are plotted on a

scale ranging from – 2.267 to + 2.267.

If the Discriminant score of a customer falls to the left of the midpoint zero we can classify

him/her likely to be a Purchaser and the one on the right likely to be a Non-Purchaser.

Functions at Group Centroids








Unstandardized canonical discriminant

functions evaluated at group means

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Discriminant Function-

It is an effective way to analyse which variables discriminate between members of two groups

and to build an index that separates the two groups on the basis of their values on the measured

characteristics. Discriminant analysis finds the set of weights that spreads the index values for

the two groups as far apart as possible.

From the analysis the Unstandardized or raw Discriminant function is found out to be:

D = –6.127+ 0.795 X1 + 0.155 X2 – 0.117 X3

Where, D= whether the customer is PURCHASER or NON-PURCHASER

X1= Performance of the cream

X2= Price of the cream

X3= Variants of the pack available/desired

If we have the absolute values of performance of cream (rating on a scale of 1-10), price of the

cream (in Rs.) and variants of the pack available/desired (in ml) respectively, then the above

Discriminant function gives us the score that helps the company to classify the customer as a

Purchaser or Non-Purchaser, thus predicting the success of the nationwide launch.

Canonical Discriminant Function Coefficients











Unstandardized coefficients

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From the above table we can say that 100 % of original grouped cases were correctly classified.

Classification Resultsa

30 0 30

0 30 30

100.0 .0 100.0

.0 100.0 100.0









1 2

Predicted Group



100.0% of original grouped cases correctly classified.a.

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For the purpose of this report, it was found that the questionnaire, interview questions, offtake

sale analysis and Business Research Method Application (Discriminant Analysis) were sufficient

to evaluate all the parameters of launching a new skin care product and to keep a track of all the

promotional and marketing activities to make it a successful launch. All major and minor

deficiencies should be taken care of after this launch so that it can be launched later in the entire

nation with huge success.


In addition to this, there are several recommendations for the organization:-

Introduce the advertisement process to increase awareness of such an innovative product

Change the packaging as pack looks similar to Boro Plus Antiseptic Cream

Introduce variants of the product in pack sizes of 20ml and 60ml

Distributing free samples among customers to increase the Sales at a latter stage

Continue with similar activities in stores such as in shop promotion, distribution of free

samples among customers etc during nation-wide launch

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Appendix 1:-


BoroPlus Intensive Skin Therapy Cream


Name: Sex:

Age: Contact No:

1. Do you feel roughness, dryness, & darkness in body parts like hands, knees, heels & elbows?

Yes ( ) No ( )

2. If yes, do you use any product? If yes which product?

3. Do you think there is a need for a specific/specialist product which takes care of

these body parts?

Yes ( ) No ( )

4. Do you like and understand the concept?

Yes ( ) No ( )

5. If No, what changes you would suggest?

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6. Do you think this product will be used in winter or throughout the year?

Winter ( ) All Year Round ( )


Emami Ltd. 687 Anandapur, E. M. Bypass, Kolkata – 700107

[email protected]


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Appendix 2:-

Customer Response Questions for Feedback:-

BoroPlus Intensive Skin Therapy Cream

No. Of Customers-166

No. of customers who gave proper response-101

Usage Time-4 to 10 weeks

Customers were asked to respond on the following 5 parameters:

Concept Understanding

Q. Did you like the concept of this new cream? (Focus on neglected parts, benefits etc.)

Satisfaction Level

Q. How many times did you use the cream a day? Did it have any effect on your skin after

continuous usage? Did you notice any difference?

Rebuy (Yes/Maybe/No)

Q. Would you buy this cream again? If no, why? E.g. do you find any difference between

BPISTC and any other product which you used to use?

Problems faced(if any)

Q. Did it suit your skin type? Have you had any side effects? Would you like to point out

any product deficiency?

Suggestions for improvement

Q. Do you have any suggestions to make this skin care product better?

Overall rating is on a scale of 1 to 10 (10 being very satisfied and 1 being satisfied; not

applicable for unsatisfied customers)

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Appendix 3:-

Business Research Method:-

Discriminant Analysis

Management Problem:

Emami Ltd. wants to predict the success of the future nation-wide launch of its new product


pattern of consumers who are Purchasers and Non Purchasers respectively.

Research Problem:

The company wants to screen the responsiveness of prospective and existing customers towards

BPISTC and find out the following –

i. The percentage of customers that it is able to classify correctly.

ii. Which variable (Price, Variants of Pack Available/Desired, and Performance) is

relatively better in discriminating between prospective and existing consumers

iii. Classification of customers into one of the two groups namely – Purchasers and Non-


Research Methodology:

To classify the customers into two groups we should do a Two Group Discriminant Analysis.

Codes for customers: 1 – Purchasers

2 – Non-Purchasers

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Variables & Scales:

The variables found out are given below along with the corresponding scales of measurement –

1. Price – Ratio Scale (Absolute values in Rs.)

2. Performance – Ratio Scale (Absolute values).

3. Variants of Pack Available/Desired – Ratio Scale (Absolute values in ml).

4. Consumers/Customers – Nominal Scale (1 = Purchasers, 2 = Non- Purchasers).

Statistical Tools Used:

Application Method- Two Group Discriminant Analyses.

Analysis is done using SPSS (Statistical Package for Social Sciences) 11.0 software package.

Data Source:

Data is collected by calling up customers/users from a valid database collected during In-Shop

promotion activity.

Questions asked to Purchasers and Non-Purchasers


On a scale of 1 to 10 (1 being the lowest and 10 highest) how much will you rate this cream in

terms of performance on the proclaimed benefits?

1-4 unsatisfactory

5 Neutral

6-10 Satisfactory


Of the following available/desired variants of pack sizes which one would you like to purchase?

20 ml for Rs.25

40 ml for Rs.40

40 ml for Rs.45 (currently available)

60 ml for Rs.70

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Appendix 4:-

Analysis of BPISTC Offtake Sale Comparison in Medical


(After In Shop Promotion)

Out of total 100 stores covered for In Shop promotion 34 were medical outlets.

However, out of total 81 stores which reported Offtake Sale after the In Shop promotion only 26

were medical stores and rest 55 were Non –Medical stores.

Below is the comparative sales figures and average number of pieces sold after In Shop

promotion activity

Non-Medical Stores Medical



Total Outlets 55 26


Total Pieces



101 299

Average Pieces

Sold per Outlet

3.6 3.9 3.7

As seen in the table the average sale per outlet in medical outlets is marginally higher at

3.9 than the average sale per outlet at 3.6 in Non medical stores

One potential reason might be that since BPISTC is a speciality product hence chemists

might‟ve been better able to explain the benefits to the potential customers

Page 54: Summer Internship College)


Appendix 5:-

A Mapping of Indirect Competition by Other Brands

Figure 1

Figure 2






Misc. Prdcts

Miscellaneous Products





Other Brands

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Figure 1:-

It is clearly evident from the chart that KRACK and NEUTROGENA are the preferred

products of consumers when it comes to skin problems such as dryness and roughness.

Also the product used under the VASELINE brand is Vaseline Petroleum Jelly as it is

the perception of the consumers that by using this product the skin would always be oily

and not dry.

Other close competitors of this cream are NIVEA and BOROLINE. Nivea as it was

found out from the survey was mostly used by men.

So, as far as indirect competition with brands is considered the major players are


Figure 2:-

This chart basically maps the brands under the miscellaneous products used by the

consumers. Leading the pack is LAKME Body Lotion, closely followed by Dove

products manufactured by ITC Limited.

There is a popularity of brands such as Ayur and Olay among the high end users. They

are slowly catching up pace in the skin care treatment category.

Also home made remedies such as oil, ghee and herbal pastes are regularly used to treat

such skin problems.

Boro Plus Intensive Skin Therapy cream, although is way far ahead than these brands as

it provides a total solution to all skin problems in a single pack. But it has to closely

monitor the progress of its competitors as well to stay ahead.

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Appendix 6:-

An analysis on the Consumer Perspective of the Brand Boro Plus

This report is an analysis of the current perception of the Brand Boro Plus and deals with

„Understanding the Current Brand Identity of Boro Plus‟. It involves a comparison of the

„Current Brand Identity‟ with the „Proposed Brand Identity of Boro Plus‟ and suggesting

measures to bridge the gap between them.


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Findings from the Survey and Defining Brand Boro Plus as per Kapferer’s Dimensions:

The key aspects of the Kapferer Brand Identity Model are:


Self Image

Reflection and most importantly

The Core Essence

From the research, the perceptions of the users of Boro Plus are discussed below:

Core Essence: The core essence of a brand refers to an innate quality of the brand that offers

coherence and consistency to a brand.

The users of Boro Plus feel that the brand is one which takes care of them and acts as a friend

who protects them from the surroundings. Its antiseptic features are most striking to the users

making „antiseptic care and protection’ as the brands‟ core essence.

Physique (As Defined by Kapferer): The physique of the brand refers to the salient tangible

features of the brand that form a part of its physical appearance.

The users of Boro Plus feel that the product has a unique fragrance and a very handy tube. The

purple colour has been highlighted in a consistent manner and forms a distinct impression in the

minds of the users and the packaging makes them (the users) believe that it has active Natural &

Herbal ingredients as well.

When asked about the personality of Boro Plus, the consumer responses were as follows:

As an individual, Boro Plus is seen as a woman in her 30‟s who‟s a married Sr. Executive with

kids. She is an emotional upper middle class lady whose relationship with the users is that of a

Confidant, a caring and protective friend and is aspiring in life. She is a beautiful looking woman

who has a relaxed attitude towards life. The users also feel that she is traditional and religious

and has deeply rooted family values and is very dependable. Therefore, it can be said that she is a

beautiful upper middle class woman who aspires to become someone in life.

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User’s Self Image (As Defined by Kapferer): Self Image is what a user feels about him/her

self on using the brand.

The users of Boro Plus feel comfortable and reliable about themselves and they feel satisfied

with the quality, on using the product. The users also see themselves as „Value for Money

Seekers‟ which is achieved through the product‟s economical price. Therefore, the users feel that

they are assured of skin health as they are aware of what they are using.

User’s Reflection (As Defined by Kapferer): It refers to what the users wish to be seen as on

using the brand.

The users of Boro Plus wish to be seen as individuals who are „Smart‟ and „well informed‟ as

they are aware of their surroundings and know how to take care of their skin.

Insights and Suggestions

By Analysis the following key observations were made about consumer perception through

different age groups and it is felt that consumer perception of the brand changes, with a change

in age group:

It was observed that users of the age group 15-25 feel that Boro Plus though is „Active‟

and „Hard-working‟ but is not a Dependable Brand and is therefore „frivolous‟. Thus, it is

felt that the further communication strategy should be designed in a way that it changes

the perception of the consumers of this age group.

It was observed that the users, of the age segment 15-35, feel that the culture of the Boro

Plus is that of a Brand which has values of a „Satisfied Middle Class’ against the

proposed culture of the Brand with „Emerging Middle Class‟ values. Therefore, this age

segment should be focussed on while designing any further strategy.

Another key finding was that the consumers of the ages, 26 and above feel that the brand

has a very „relaxed‟ and „easy going‟ attitude and does not believe in working hard.

Therefore, the brand should emphasise on this aspect and change its image towards a

more relaxed and easy going brand by way of extensions into categories and range of

products that satisfy this aspect of consumer perception.

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It was also observed that the consumers of the age segment, 46 and above feel that the

users of Boro Plus are not „well informed‟ and therefore are not aware of their

surroundings and products that can help take care of their skin. Therefore, an effort is to

be made to reach out to this age segment and create awareness.

On An overall Basis:

It was observed that the users of Boro Plus feel that the relationship of the brand with the

users is that of a „Caring & Protective friend‟ against the proposed relationship of a

„Friendly Expert’ and is therefore perceived as a brand that cares for and protects the

users but does not give expert solutions to every skin problem. Therefore, it is suggested

that the brand extends its image of a „Caring & Protective friend’ taking leads from the

consumer perceived relationship.

It was observed that consumers across age groups feel that the product, Boro Plus

antiseptic cream, is very sticky and high on fragrance and therefore it is recommended

that the product be less on stickiness and fragrance.

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Proposed V/s Perceived Identity of Brand Boro Plus

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Notes of the Boro Plus Brand Team, Emami Ltd.

Books for reference:

a. Marketing Management: Strategies for Competitive Advantage – Subroto


b. Marketing Management: Millennium Edition – Philip Kotler

c. Marketing Research: Sixth Edition- Naresh K. Malhotra

d. Tutorial for SPSS: Fourth Edition- Bryan and Rubin

Websites for data:

Company Website:

For Research & Reference: