to analyze the contribution of chemist and cosmectic outlets to fmcg poducts vis a vis to its...

0 | P a g e

SUMMER TRAINING REPORT

ON

“To analyze the contribution of Chemist & Cosmetic outlets in Personal Care Product business”

Submitted in partial fulfillment of the requirements of Post Graduate Diploma in Business Management

By

Shraddha MishraBatch-14

Roll No.-1249

Dr. Gaur Hari Singhania Institute of Management ResearchJaykaylon Colony,

Kamla Nagar, Kanpur-208005

1 | P a g e

Acknowledgement

“Not what we give, But what we share,For the gift, without the giver

Is bare”~James Russell Lowell

An experience of an Environment outside text books and class rooms has remained the best teacher for ages. “Analyzing the contribution of chemist & cosmetic outlets in Personal care Products of ITC vis a vis to its competitors”, was an expedition to learn and understand the Market nomenclature in a different way.I express a deep sense of gratitude to our mentor, Mr. Arvind

Upadhyay area manager (Kanpur) ITC Limited, Lucknow, for his unfaltering support and motivation which made this study worthwhile. A token of gratitude, to Mr. Shrijeet Paul area executive (Kanpur) ITC Lucknow, the staff of ITC Lucknow, Tirupati Agency Kanpur, Shree Agency Kanpur and Various outlets of Kanpur, for without their support this study would have been impossible.I am deeply obliged to all those outlets owners who inculcated their knowledge during my survey process, for without them this study would have been nonexistent.

.

Executive Summary

The study of “Analyzing the contribution of chemist & cosmetic outlets in Personal care Products of ITC vis a vis to its competitors” was aimed at finding out the role of both the chemist & cosmetic outlets in influencing Visual merchandising (VM) to understand the customer buying behavior, along with that it also focuses on the DS productivity, the monthly stock movement of personal care products

Dr. Gaur Hari Singhania Institute of Management Research

2 | P a g e

of ITC in contrast to its competitors and the role of company promoters in these outlets.

Visual Merchandising basically deals with elements of display of products which is gaining momentum in India with the growth of retail industry. It is important to notice that Visual merchandising is involved in getting more visitors to stores and also in converting them into shoppers. As this accounts for 2/3rd of the process, it is of immense importance. On the same path the role, of company salesmen is very crucial in raising the sales and making the product availability to the maximum possible outlets and thereby it enables them to penetrate more deeply into the market.

Similarly, company promoters working as a beauty advisor is a very challenging position. As a company promoter, having all the essential knowledge and understanding of the company’s product, along with good motivational skills, leaves an impact on the buyer and ensures a better goodwill of the company in the market.

The research methodology consisted of surveys with company agency and visual Merchandisers who gave valuable insights about VM efforts and challenges’ in Kanpur. This was followed by Format survey, which was done at stores. The total sample size amounts up to 150. The results obtained from qualitative and survey analyses are described in respective.


3 | P a g e

Table of ContentsChapter 1: INTRODUCTION 1.1 General Introduction1.2 Objectives of Project1.3 Industry Profile

Chapter 2: PROFILE OF THE ORGANISATION: ITC Ltd .


4 | P a g e

2.1 Establishment2.2 Growth and Diversification2.3 Business Portfolio

Chapter 3: STUDY OF THE RESEARCH PROBLEM : 3.1 Statement of research objective3.2 Research Design & Methodology3.3 Research Instrument3.4 Classification of Data

Table of Contents Contd…

STUDY OF THE RESEARCH PROBLEM : 3.4 Classification of Data3.5 Period of study3.6 Focused brand3.7 Research Study3.8 Market for research study3.9 Approach towards objective accomplishment

Chapter 4: DATA COLLECTION AND ANALYSIS OF RESEARCH PROBLEM4.1 Number of outlets surveyed within Various Markets4.2 Procedure towards attainment of objectives

Steps undertaken to achieve objective 1 Steps undertaken to achieve objective 2 Steps undertaken to achieve objective 3 Steps undertaken to achieve objective 4


5 | P a g e

Steps undertaken to achieve objective 54.3 Summary of other findings4.4 Recommendation & conclusions4.5 Bibliography & Appendix


INTRODUCTION

6 | P a g e

Chapter.1 Introduction

1.1 GENERAL INTRODUCTION

The project purports to decipher the preference of shopkeeper to company’s product based on the analysis of the study of Kanpur market, which was done on the basis of presence of company’s product in comparison to competitors product, parameter like price paid for annual the display, service, and promotional schemes etc. The different comparative companies of personal care products were Hindustan Unilever, P&G, Garnier, Dabur .The sample unit was the outlets of Kanpur.

With a well define research problem, a study was started to ascertain the variations and conditions of the existing sales of personal care products. The overall objective of the study was to analyze the annual display outlets of the company to analyze the success, marketability and future growth prospects of personal care products of ITC. The data was collected and analyzed to obtain conclusions. This report carries an introduction of the company profile, detail of the methodology followed detailed data analysis and the results so obtained with the variety of graphs along with given.

1.2: INDUSTRY PROFILE:Dr. Gaur Hari Singhania Institute of Management Research

7 | P a g e

The Personal care industry has taken rapid strides in the last few years, moving towards premium products incorporating specialty ingredients in their formulation.From soaps and shampoos in the morning to the overnight repair face creams, from the sunscreen products in summers to moisturizing lotions in winters; personal care products literally touch our daily lives. The personal care products we use are in some measure the signature of our lifestyles and standards of living.Indian view:Personal care category in India is valued at Rs 54.6 billion. An average Indian spends 8% of his income on personal care products. Personal care mainly consists of Hair Care, Skin Care, Oral Care, Personal Wash (Soaps), Cosmetic and Toiletries, Feminine Hygiene.Till 2002-2003, Personal care products, except those in oral care category, were regarded as luxury items, and attracted a high excise duty of 120%. But the taxation reforms in India after 1991 have lowered the excise duty rates that make these products more affordable. It is divided into two segments:

The premium segment

The popular segment

The premium segment caters mainly to urban high class and upper middle class, and is more brands conscious and less price sensitive. The popular segment caters to mass segments in urban and rural markets; prices here are around 40% of the premium segment prices.


8 | P a g e

Personal care (Global view)The personal care industry had an excellent growth rate in all the major markets of the world in 2005-2006. Since the past few years, people have become more conscious about their appearance and look, leading to a huge demand for these products in the whole world. New products are launched by the leading brands to attract consumers. The trends in all the leading personal care markets show that this industry is showing a massive potential for growth. The women’s beauty industry is growing at rate of approximately USD 202.254 billion every year where as the global market for cosmetics alone USD 30.33 billion. The global personal care products industry is growing at a very rapid pace; some of the factors responsible are:

Rise in consumer spending power,

Increased demand due to people consciousness,

Key demographic factors,

Entry of herbal and organic products,

Lifestyle and climactic changes, and

Massive advertising and promotion strategy

“ORGANIZATION”


9 | P a g e

Chapter 2: Profile Of the Organization: ITC Ltd

2.1 Establishment:Incorporated on 24 August 1910 as the Imperial Tobacco Company of India Limited, the company's name was changed to ITC Limited in 1974. Rated among the 'World's Best Big Companies' by Forbes magazine, ITC ranks thirdon all major profit parameters among India's private sector corporations. ITC employs over 20,000 people at more than 60 locations across India. It has a turnover of $3 billion.

2.2 Growth and Diversification:ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion.ITC is rated among the World's Best Big Companies, Asia's 'Feb 50' and theWorld's Most Reputable Companies by Forbes magazine, among India's MostRespected Companies by Business World and among India's Most Valuable companies by Business Today. ITC also ranks among India's top 10 `MostValuable (Company) Brands’ in a study conducted by Brand Finance and published by the Economic Times.

2.3 Business Portfolio:Dr. Gaur Hari Singhania Institute of Management Research

“ORGANIZATION”

10 | P a g e

ITC has a diversified presence in Cigarettes, Hotels, Paperboards and SpecialtyPapers, Packaging, Agri-Business, Packaged Foods & Confectionery,Information Technology, Branded Apparel, Personal Care, Stationery and Safety, as one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.ITC employs over 21,000 people at more than 60 locations across India. TheCompany continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 88,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder.


11 | P a g e

Essenza d i w illsF iam a d i w illsV ive l D i W ills

Superia


12 | P a g e

“

Study of selected “Research Problem” 3.1 Statement of research objective: All companies are having their own planning and business strategies but the company who is having the best, is the most successful company among its competitors. So the company can easily get success among its competitors by applying best effective marketing strategies.

“STUDY OF RESEARCH PROBLEM”


13 | P a g e

1) PCP Stock movement from the outlets of ITC Vis a Vis to Competition 2) Role of Beauty advisors in influencing of Consumer during the purchase.3) Visibility solutions at these Outlets. 4) DS productivity at these Outlets.5) Distribution model adopted by competition and ITC in these Outlets. 6) Trade Inputs by competition and ITC at these Outlets.

3.2 Research Design & Methodology:Research design is the basic framework which provides guidelines for the rest of research process. It specifies the methods for data collection and data analysis. . A good design is often characterized by adjectives like flexible, appropriate, efficient, and economical and so on. The design appropriate for this research is DISCRIPTIVE RESEARCH WITH A HELP OF A SCHEDULE. Descriptive research includes surveys, fact-findings enquiries of different kinds. The major purpose of this research is description of the state of affairs, as it exists at present.

3.3 Research Instrument: SAMPLING PLANDr. Gaur Hari Singhania Institute of Management Research

14 | P a g e

3.4 Classification of Data: I have classified the data

into two specific types:

Primary source: Secondary source:

1. Interview. 1. Internet

2. Filling up of schedule. 2.Magazines

3. Observation.

4. Verbal Communication

3.5 Period of study:

The study is carried out for a period of 30 days. It commenced on 20th April 2010 and completed on 20th June 2010.3.6 Focused brand: Fiama di wills.

Sampling Area- Kanpur

Sample Segmentation- On the basis of Schedule

Sampling Method- Simple

Random

Sample size-150

Sample Unit - Shopping outlets


15 | P a g e

Vivel di wills.

Vivel.

Superia.

3.7 Research Study: To analyze the contribution of both the chemist and the cosmetic outlets, I have undertaken a study of 17 major markets of Kanpur, this was done by projecting the figures on the schedules, while making a direct contact with 150 outlet owners, spread across these major markets of Kanpur. Hence, the whole process was based on the random sampling technique. My report basically involves a step by step process of accessing the product potential across 17 major zones in a formal respective manner. For This I will first of all throw light on the areas where I underwent this survey study.3.8 Market for research study:

Gumti No. 5 Naveen Market Arya Nagar Chaman Ganj Vikas Nagar Bekan Ganj Gwaltoli Pandu Nagar Kakadeo Azad Nagar P.Road Lal Bangla Sheshamau Kidwai Nagar Khalasi line Govind Nagar

3.9 Approach towards objective accomplishment:

Personal Care Products stock Movement in Various outlets of ITC vis a vis to its competitors: This basically involves the following: Projecting the Average Monthly Stock of the Product as per

the schedule Projecting the oldest manufacturing date, in order to

analyze the stock movement, along with its frequent sale and purchase.

Projecting the main stock carrying unit and the main variant of the brand required, to get an idea of the


16 | P a g e

customer demand and preference for different variants of products.

Role of Beauty advisors in influencing customers: Key role of promoter’s presence within various outlets. Knowledge regarding company’s product, various schemes and offers. Ability to influence customers, by observing the customer category and preference. Keeping a regular Track Record of the customers visit in the outlet by maintaining a record tool. For E.g. Record Book

Visibility Solutions At these outlets: This basically deals with Visual merchandising effectiveness at various outlets.

Display awareness in customers. Influence of display and visibility. Need of display in various outlets and the role of owners in working out display facility within their outlets.

Salesmen Productivity at these outlets: This basically deals with

Number of visits if the salesmen to the designated outlets. The number of outlets covered by the salesmen within the market area. Total salesmen holding capacity of the agency dealers. The working pattern of the Salesmen within agency.

Distribution Network of ITC to these outlets and the competitors;

Study of distribution network of ITC via flow chart.


17 | P a g e

Study of distribution network of HUL via flow chart and emphasizing on various positive points.

“DATA COLLECTION AND ANALYSIS”




18 | P a g e

4.1 Number of outlets surveyed within Various Markets:

Market Area Surveyed

No. of markets Surveyed

Gumti No. 5 10 Arya Nagar 10 Vikas Nagar 9 Gwaltoli & Naveen Market 10 Kalyanpur 10 P.Road, Sheshamau &

Khalasi line 23

Pandu Nagar & Kakadeo 9 Chaman Ganj & Bekan

Ganj 18

Lal Bangla 14 Kidwai Nagar 18 Govind Nagar 20

4.2 Procedure towards attainment of objectives:

Steps undertaken to achieve “OBJECTIVE 1” is as follows

For analyzing the PCP stock movement, in the outlets of 17 markets, an analysis of each and every market is taken into consideration.

For every market, if 10-15 shops are undertaken for research study, then projection of



19 | P a g e

stock is done within Data Excel sheet, (See Appendix) while the analysis of every market for various personal care division has been done. Since the process involved Random Sampling Technique hence, to avoid any type of bias, the outlets are selected on the basis of their:

Credibility in the market place Time period of their existence Daily Customer Visits Potential in The Market Availability of the company and the competitor’s brand.

The Data Analysis has been divided into two Categories: Higher Potential Markets – The graphical analysis

consist of the survey of market with maximum number of visits from customers throughout Kanpur.

Gumti No.5 Arya Nagar Naveen Market Kidwai Nagar Govind Nagar Lal Bangla

Average Potential Markets - The graphical analysis consists of the survey of market having a medium potential in comparison to above said markets.

Vikas Nagar Gwaltoli P.Road Azad Nagar & Nawabganj Khalasi Line Chaman Ganj & Bekan Ganj

Market Category Undertaken – Higher Potential Markets

No. of outlets Visited under higher potential markets – Eighty two


20 | P a g e

Markets name – Mentioned aboveOutlets Taken into consideration: Out of 82 outlets surveyed under high potential category 50 major outlets defining the potential of personal care division in different markets are taken into consideration, they are as follows:

Outlets Taken Into Consideration

Gumti No.5 Arya Nagar NaveenMarket/Gwaltoli

1 Kwality Stores 1 New Kamal Stores 1 Kohli General Stores2 Gulati Provision Stores 2 Bhag Chand Stores 2 Hazari Lal & Sons3 Arora general stores 3 Tejumal Stores 3 Anand Stores4 Mool Chand & Sons 4 Dileep Chand Stores 4 Modern Stores5 Gulati Provision Stores 5 Modern Stores 5 Om General Stores

Lal Bangla Kidwai Nagar Govind Nagar

1 Shree Sidhi Vinayak 1 Medicine centre 1 Raj Button stores2 Santosh Fancy Stores 2 Bajrang Provision Stores 2 Khanna Kirana Stores3 Novelty Stores 3 Kishore Brothers 3 Shree Haryash Stores4 Anupam General Stores 4 Chandra Prov Stores 4 Vishnu Prov. Stores5 Rakesh Stores 5 Anand Stores 5 Mahesh Prov. Stores6 Rinkoo Stores 6 Sanjay Prov. Store 6 Vishal Prov. Stores7 Kishan General Stores 7 Maa Durga Prov. St. 7 Maansi Cosmetic stores8 Ekta Prov. Stores 8 Balaji Cosmetics 8 Bhagat Ji stores9 Chaurasia Stores 9 Agarwal Stores 9 Neha Traders

Graphical Study:

For Hair Care & Body Care Division : ‘For High Potential Market’


21 | P a g e

FDW VDW Vivel Lux Dove Pears Liril Cinthol

55

25

80

60

75

3530

35

"Soaps" Average Monthly Sales

115gm 125gm 75 gm

Market Category Undertaken – Average Potential Markets

No. of outlets Visited under Average Potential markets – Sixty eightMarkets name – Already mentionedOutlets Taken into consideration: Out of 68 outlets surveyed under high potential category 30 major outlets defining the potential of personal care division in different markets are taken into consideration, they are as follows:

Analysis of Premium Segment Soaps

Analysis of Lower Segment Soaps

Analysis:

The analysis made in the markets above shows that on an average the sales of Fiama shampoo is competitive to Sunsilk, Garnier & Dove within these markets. Apart From this if we concentrate towards the soap division then Lux is in the top most priority. Though the sales of FDW is on an average much better , but still Launching of More no. of SKU’s under premium category soaps like FDW within competitive prices, to cater to all segments of people, would probably enhance the sales


22 | P a g e

Outlets Taken Into Consideration

Chaman Ganj Vikas Nagar P.Road /Khalasi line

1 Raj kirana store 1 jayanti provision store 1 Umageneral stores2 Parvej general stores 2 Paras general Store 2 Naveen stores3 Arshad general stores 3 Rajeev Dept. Store 3 Atul general stores4 Raees General store 4 Gupta bandhu store 4 Model stores5 Bhaiya general stores 5 Shanker General Stores 5 Om General Stores6 Bholu kirana store

Kalyanpur Azad Nagar/Nawabganj Sheshamau

1 Maa Shakti medical store 1 Ganga Medical stores 1 Mahesh stores2 Sanjay Medical Store 2 Sevak stores 2 Pratap general stores3 Alok Medical Store 3 Bholu Kirana Stores 3 Jai Bros cosmetics4 Kherapati medical store 4 Sanjay stores 4 Girlfriend shop5 Ritisha General store 5 Deepak stores 5 New pandey

6 Vandana fancies

Graphical Study:

For Hair Care & Body Care Division : ‘For Average Potential Market’


23 | P a g e

FDW VDW Vivel Lux Dove Pears Liril Cinthol

30

15

50

38 40

25

1815

"Soaps" Average Monthly Sales

115gm 125gm 75 gm


Beauty Advisors, play a very crucial role in Product promotion within the market.

In Kanpur, there are Three Major Markets, which shows the existence of promoters of ITC, they are as follows:1) Place- Kakadeo; Location- Food Bazaar2) Place- Arya Nagar; Location- New Kamal Stores & Tejumal Stores3) Place-Naveen Market; Location- Kohli General Stores

Observing & Understanding the Role of beauty Advisors within these outlets: After careful observation of the company promoters within each of the above said outlets.


Analysis of Premium Segment Soaps

Analysis of Lower Segment Soaps

Analysis:

The analysis made in this market consist of both the chemist & the cosmetics outlets. As per the observation, the market has an optimum sale for Shampoo division in comparison to competitors. Vivel brand both under shampoo & Soap division requires many efforts to be called upon so as to enhance the sales. The best way to handle this is launch of more competitive schemes &offers under this category. Under toilet Soap category Superia has shown a very positive response

24 | P a g e

I carved out the responsibilities that are actually undertaken by these promoters:

1) Proper entertaining the customers, like the one provided in New Kamal & Hazari Lal & Sons. Where I observed the Promoters tendency to gain a quick Insight of customer preference and taste and thereby responding to it was much better.2) Maintaining a proper cooperating and good relationship with other company promoters and the outlet owner.3) The Promoters in every above said outlet possessed a tendency to maintain healthy relationship with their customer, by an efficient way of dealing with the customers.4) The most important part is that the promoters apart from having a healthy knowledge regarding company’s product, also possessed knowledge regarding the company’s product that is more suitable to the customer, along with that two of the promoters I met were having a deep sense of knowledge regarding skin Products.5) I observed these promoters, via their knowledge power that they were much efficient in entertaining customers and improving sales.

Pictorial view of Promoters of ITC in Well Known Outlets of Kanpur:Dr. Gaur Hari Singhania Institute of Management Research

25 | P a g e

Pictorial view of Product Display and promoter of Competitor in an Outlet: Dr. Gaur Hari Singhania Institute of Management Research

Promoter from New Kamal Stores, Arya Nagar

Promoter from New Tejumal Stores, Arya Nagar Kanpur

26 | P a g e


“I have shown this picture, to deliver an idea of Presenting company’s product. As the Picture shows the competitor product display along with promoter, the point to note is the product display presentation, that itself is capable of luring the customer. Hence,

Promoter from New Kamal Stores, Arya Nagar Kanpur

27 | P a g e

Some other points to take into consideration:

For being a successful promoter, also includes you making sure your department is completely put together. This includes making sure you order everything you need to keep your department fully stocked, making sure you have eye catching displays, and keep your products clean and undamaged. No one wants to buy a dusty shampoo bottle or a defective pump hairspray. Every promoter of the company should provide an outstanding service to every customer that comes into their department to be able to establish regular customers and build their popularity among them. If customers feel promoters are genuine and knowledgeable about the cosmetics they are promoting, they will keep coming back to only those promoters plus they will tell their friends about the promoter and this will enhance their name and reputation Always make the customer top priority, without them; promoters wouldn't have a job in the first place. Promoters should periodically attend vendor training seminars and preserve the highest level of product knowledge. Along with that they should keep up-to-date client information for the sales drive. The same has been followed here by ITC promoters in there outlets, where they were provided a format for keeping customer regular information. Promoters should create and conserve strong partnership with vendor for supporting business. Along with that they should held makeovers for customers. Use knowledge of store products and services to build sales. Know and appropriately execute all systems and procedures to make sure a fast and efficient transaction. Follow operating procedures of special department. Understand and keep department standards.


The Role of DS is very crucial in reaching the market depths. Not only, providing good sales of company’s product, there are still


28 | P a g e

some other roles played by the company DS in attaining credibility within market.Understanding the working of DS: There are three agencies in Kanpur looking the pams division of ITC. They are as follows”:

Shree Tirupati Consortium Shree Agency BR Agency

My major time periods have been spend under Shree Tirupati consortium, where I gained an insight of the working of the agency staff. A major portion was composed of company DS working under Manager. The daily working started by assigning areas or predetermined areas as per the schedule to the Salesman.These salesmen visited their proper sight, and underwent their duty of taking orders and receipts. Apart from this there were certain points that I analyzed while my visit with the DS to these shops:

Proper communication with the owners. Most of the DS have build a very healthy relationship with the

outlet owners. This could easily be seen by their dealing with each other.

The company DS at points even assisted in teaching consumer schemes.

I was even present during the launch of “Vivel Deo”- This soap has created a great response on the first day of its launch. The positive point was that the company even provided a major display for this particular product, and there was a great demand for Vivel Deo as well. At this point I would like to consider the role of company DS in the promotional launch.

The company usually provides a credit period of 7 days, but to maintain harmonious relationship, this period was even extended. This was under the whole responsibility of the DS. The work of DS appointed for Arya Nagar and Kalyanpur area,

was motivating.

Points To Consider: There is no doubt that the agency DS has been working a lot to achieve a timely target and to improve sales, which could itself be seen from the PCP stock movement and outlet owners word of mouth, still I would like to Focus on One question, I asked form most of the shopkeepers:


29 | P a g e

Question: Which Company services in the form of Relationship maintenance, Timely visits, cooperation etc would you rank high?Answer: PANTENE (P&G) because, (1) Company policies and norms are very satisfactory in nature. (2) Hardly, there are any complains of no fulfillment of stock. (3) The display policy of company is also nice. (4) The company persons entertain visits.(5) The return of outdated product, takes soon and even money is returned back at times.(6) The fulfillment of stock takes place in less than 24 hrs.

If we throw light on the above statements, then we will come to know that, the competitors are in much better position, even though we are providing the best via DS.Now the DS faces adverse conditions when they are not able to fulfill stock, hence they are considered as the major cause of aggression and this itself, creates negative view for both the DS and the company as well. OUT OF STOCK was the major problem reported for ITC products.Second, big thing noticed was less number of DS reported for Shree agency, hence on my visits to markets under Shree agency. Shopkeepers even complained for irregular visits from the company. If we makeover these improvements, then we will soon replace our competitors.

Steps undertaken to achieve “OBJECTIVE 4” is as follows:

Visibility Solutions basically deals with the availability of: Availability of Display tools in the outlets in the form of

Display windows, Metal Tablets, Show cards, Shelf frame, Product Holders, Posters, Danglers, Hangers etc.

Visual Merchandising. Participation of salesmen in providing display outlets to

various outlets. Role of company, in providing display & visibility solutions.


30 | P a g e

Product visibility an essential requirement within various outlets:

1) Displays or advertising alone may not increase product sales substantially. However, combining advertising and display into an integrated promotional campaign will usually be more effective.2) An effective way of attracting customers to a store is by having good displays, both exterior and interior. A customer will be attracted to a display within three to eight seconds, which is the time a customer spends to determine interest in a product.3) The purpose of interior display is to develop desire for the merchandise, show what is available, and encourage both impulse and planned buying. Three major goals of a store should be to motivate the customer to spend money, project the image of the store and keep expenses to a minimum.

Points Noted while observing the visibility solutions and display Frequency of company’s product within various outlets

“ANALYSIS”:

Display availability was found better in various outlets, especially in Arya Nagar, Kakadeo and Naveen market outlets. Most of the outlets within Kakadeo Sheshamau, P.road and others reported an Improvement of company’s product sales due to display presentation and closure results. An Increased consumer appeal of product displays was also noted in various


31 | P a g e

market area. Better brand awareness among customers and Outlet owners was reported in various shops due to consistency in display. Improved efficiency of shelf space allocations especially in Pandu Nagar outlets. Improved financial performance of assortments Faster more accurate replenishments Quicker inventory resets was needed, especially after the launch of Vivel deo.

Points to consider, “to make improvements”:

Payment scheme for the annual display outlets is not so attractive

in comparison to other major FMCG companies. No clear communication, retailers are not aware of the extra 4% discount given to them for the display. Displays not available at most spots where sales for FMCG goods are high. Like Company Bagh, Azad Nagar etc. No proper tracking on merchandising, reported in various outlets. It was found that the low profile respondents wants fixed gift as a part of promotional schemes and high profile respondents want scratch cards, this motivates them more to sell any product. Rate cutting being also a factor for low sales at different areas of Kanpur. Communication gap between company and sales man. E.g. Hindustan unilever directly reaches there salesman and educates them about new offers and schemes but ITC does not do so. ITC only reaches to (wd) and tells them about


32 | P a g e

schemes and offers and (wd) manipulates the information and then informs the salesman. Apart From this, a window or display area with too little merchandise makes a store appear to be going out of business or indicates to customer that the establishment is less than prosperous. Hence, Out of stock report has been attained from a number of outlets.

Generally the lack of merchandise on the display is that the merchandise has been sold and has not been replaced. This gives a negative picture to consumers.

Some suggestions to bring a “Change”:

Talking about visibility, then I would prefer company to penetrate more deeper into the market, by offering display at maximum possible locations. For e.g. by my analysis, I observed Proctor & Gamble , display frequency for personal care division was maximum.

The outlet owners at various market areas, when asked to Company services in the form of display and visibility, ranked Proctor & Gamble at the top in comparison to HUL, prevailing as market leader. Most outlets owner also emphasized on the fact that, most companies have been providing 2-3% commission, and this factor lures them for pressure selling of that company’s product. Hence, the outlet owners demanded some type of commission and promised for better sales results. Apart from this, the company is right now offering 4% extra on windows to the retailers instead of giving this offer the company should offer the retailer a discount of 4%+2%+(1%cash discount).


33 | P a g e

: 1000*4%=4040*2%=.8

And 1% cash discount can be given if the payment is delivered within 12 days of purchase. The company can try to introduce SMS greeting system to make the retailers aware about different schemes and offers and they can also send them greetings on different occasions and festivals.

The company should introduce targets for the retailers and they can be paid accordingly or can be awarded power points.


“Visibility of PCP good’s ,

in a systematic

way. GwaltoliKanpur

“Visibility of PCP good’s ,

in a systematic

way. Arya Nagar,

Kanpur

34 | P a g e


Distribution Model adopted at these outlets by ITC-

(SUPPLY CHAIN)

FACTORY/HUB

K0 K2

Wholesale service provider

(Wsp)

K1

K3

Wholesale dealer (WD)

K4

Wholesalers’ (WD) Retail Stockiest (sip)

K0 - factory to market.

K1 – factory to WD.

K2 – factory to wsp.

K3 – wsp to WD.

K4 – WD to market.

35 | P a g e

Distribution Model adopted at the Outlets by Competitors:


Hindustan unilevers distribution network is recognized as one of its key strengths. The product first manufactured is first bought to “JIT’ Depot from the factory. Then these products are delivered to the redistribution stockiest according to the order placed by them, this is done through permanent dispatch plan. Then this stock is send to either retailers or wholesalers, according to the channel followed by them. And from thereon it is dispatched to consumers.

36 | P a g e

HUL has followed a strategy of building its distribution channels in a transitional manner

The company follows the concept of “Redistribution Stockiest” (RS) who replaced the REGISTERED WHOLESALERSs. The REDISTRIBUTION STOCKIST was required to provide the distribution units to the company salesman. The REDISTRIBUTION STOCKIST financed his stocks and provided warehousing facilities to store them. The REDISTRIBUTION STOCKIST also undertook demand stimulation activities on behalf of the company.

The second characteristic of this period was the changes brought in as the company realized that the REDISTRIBUTION STOCKIST would be able to provide customer service only if he was serviced well. This knowledge led to the establishment of the “Company Depots” system. This system helped in transshipment, bulk breaking, and acted as a stock point to minimize stock-outs at the REDISTRIBUTION STOCKIST level.

In the recent past, .significant change has been the replacement of the Company Depot by a system of third party; the Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer stock-points to ensure that stock-outs did not take place. The C&FA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery. The most important benefit has been improved customer service to the REDISTRIBUTION STOCKIST.

Summary of the other findings:



37 | P a g e

Along with the above analysis and observation of the market for FMCG goods, I also came across to certain schemes that are been provided by ITC and its competitors, This led me to throw light on other aspects of the business as well. The Various schemes or offers are as follows”:

HUL covers a huge market of PCP division. HUL Ltd. & other companies give consumer offer, promo offer. They give different offer on different products, when customer (shopkeeper) sale is increasing. Some companies like Godrej No. 1 gives 16% on CFC of 40 gm. pack. The following figure shows HUL scheme or Offers :

Godrej consumer products ltd. makes only soaps and the consumer offers are as follows;

Some offers from ITC are as follows:Dr. Gaur Hari Singhania Institute of Management Research

38 | P a g e

What can be seen from the above data is that, like other companies ITC too have been providing discount offers. But the offers are very limited in comparison to others. To penetrate deeper into the market, more strategic skills in the form of cash and credit discounts to various outlets owners is needed.


39 | P a g e

“Recommendations & Conclusions”:

1. All theories and concepts as studied till now got a practical application, by analyzing various aspects of the objectives undertaken to study.

2. Providing timely stock and meeting the essential requirement with time, is very important to gain credibility in the market place.

3. This experience also enabled me to understand the various pros & cons associated with the marketing segment of PCP goods, it also inculcated within me a deep knowledge regarding various company product’s and what acts and skills are required to attain a proficiency.

4. As I was floated for the first time in the market, it shifted with tremendous confidence inside me.

5. It did to same extent help in developing a better understanding different marketing forgone.

6. It brings with in a sense of responsibility and passion to work for the organization.

7. I had an opportunity to meet professionals placed very well within the industry.

8. The study undertaken by me, is time constrained that is limited upto 30 days of period.

9. All the reporting regarding PCP stock movement has been done on an average basis, hence, sales may even fluctuate. But may not vary much.

10. It is possible that some potential source might have remained entrapped


40 | P a g e

“BIBLIOGRAPHY”

Famous Works of:

1) Marketing Management – Philip Kotler

2) Marketing methodology – C.R. Kothari

3) Marketing Research – Boyd

Magazines & Journal study:

1) Business Today

2) Market Compass

3) India Today

Websites surfing:

www.google.com

www.itcportal.com

www.wikepedia.com


http://www.wikepedia.com/

http://www.itcportal.com/

http://www.google.com/

41 | P a g e

“APPENDIX”

“HYPERLINK”

ST_ Chemist Final1 (Autosaved).xlsx


to analyze the contribution of chemist and cosmectic outlets to fmcg poducts vis a vis to its...

Marketing

research study

research methodology

research instrument

study of kanpur market

various outlets of kanpur

analysis of research

g e chapter

research design methodology