project report on vivels fairness cream
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A STUDY OF VIVEL ACTIVE FAIR ACROSS VARIOUS
CHANNELS
A PROJECT REPORT
Submitted by
KAVYA JAIN
BATCH (2010-12)
In partial fulfillment for the award of the diploma
Of
POST GRADUATE DIPLOMA OF MANAGEMENT STUDIES
JAGAN INSTITUTE OF MANAGEMENT STUDIES
(JAIPUR)
JULY, 2011
BONAFIDE CERTIFICATE
Certified that this project report “A study of Vivel Active Fair across various channels” is
the Bonafide work of “KAVYA JAIN” of PGDM Batch 2010-2012 who carried out the project
work under my supervision.
SIGNATURE
Vaibhav Pandey
Corporate Guide
Assistant Manager
ITC ltd
Office No. 201,
Durlabh Chambers,D-24,
Prithviraj road,C-Scheme, Jaipur
DATE:
SIGNATURE
Dr. Mayank Agarwal
Assistant Professor
Jagan Institute of Management Studies (JIMS)
IP-2&3, Phase-IV, Sitapura Industrial Area,Jaipur
DATE:
ACKNOWLEDGEMENT
I am grateful to “Mr. Vaibhav Pandey” whose encouragement, guidance and support from the
initial to the final level enabled me to develop an understanding of the subject.
I am grateful to “Dr. Mayank Agarwal” whose guidance enabled me to complete the project as
per requirements.
Lastly, I offer my regards and blessing to all of those who supported me in any respect during the
completion of the project.
SIGNATURE
Kavya Jain
Student
Batch
PGDM (2010-2012)
DATE:
TABLE OF CONTENTS
1. Cover Page & Title Page
2. Bonafide Certificate
3. Acknowledgement
4. Table of Contents
5. Abstract
6. Introduction
6.1. FMCG
6.2. Personal Care
7. ITC
7.1. History and Evolution
7.2. Vision Statement
7.3. Mission Statement
7.4. Positioning Statement
7.5. ITC Corporate Strategies
7.6. ITC Business Portfolio
7.7. ITC Personal Care Products
7.8. The Organization and Hierarchical Structure in ITC
7.9. ITC FMCG supply chain
7.10. ITC SWOT
8. Competitors
8.1. HUL-Fair & Lovely
8.2. Other competitors
9. Objective of the study
10. The process of New Product Launch at ITC
11. Types of outlets and their placement norms
12. Study on performance of Vivel Active Fair
12.1. Research methodology
12.2. Sampling Methodology
12.3. Sampling
12.4. Sampling plan for trade feedback
12.5. Sampling plan for customer feedback
12.6. Data collection
12.7. Tools and techniques
12.8. Instruments
12.9. Tools and techniques for analysis
13. Analysis and Findings
13.1. Nielson New Product Launch Evaluator
13.1.1. Impact
13.1.2. Execution
13.1.3. Trial
13.1.4. Repeat
14. Recommendations
15. Retailer’s questionnaire
16. Customer’s questionnaire
17. Bibliography
ABSTRACT
ITC has launched Vivel Active Fair under the VIVEL brand in Rajasthan. The report is an
earnest endeavor made to understand the performance and acceptance of Vivel Active Fair in
Rajasthan and simultaneously ascertain its visibility and availability on the general trade outlets.
I was required to conduct an analysis of its launch and repeat sales performance in Rajasthan,
which is divided into 8 sections where it has 48 wholesale dealer towns.
During the course of study I visited 133 retail outlets in Raipur section, which is shared amongst
5 wholesale dealers, and conducted personal interviews with the retailers to find out about how is
Vivel Active Fair selling, what are the customer’s response, what are the repeat sales etc.
Interview also focused on the problems faced by the retailers with respect to services by ITC.
Also the motive of research was to also ascertain promotional tools for marketing and provide
recommendations for the same.
Research also included studying the behavior of consumers, about their preferences for fairness
creams and to ascertain the overall buying behavior of consumers with the help of questionnaire.
INTRODUCTION
FMCG
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the
country and over the years has been growing at a very steady pace. The sector consists of
consumer non-durable products which broadly consists, personal care, household care and food
& beverages. The Indian FMCG industry is largely classified as organized and unorganized. This
sector is also buoyed by intense competition. Besides competition, this industry is also marked
by a robust distribution network coupled with increasing influx of MNCs across the entire value
chain. This sector continues to remain highly fragmented.
FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector
with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by
2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of
Gross Domestic Product (GDP).
INDUSTRY CLASSIFICATION
The FMCG industry is volume driven and is characterized by low margins. The products are
branded and backed by marketing, heavy advertising, slick packaging and strong distribution
networks. The FMCG segment can be classified under the premium segment and popular
segment. The premium segment caters mostly to the higher/upper middle class which is not as
price sensitive apart from being brand conscious. The price sensitive popular or mass segment
consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly
brand conscious. Products sold in the popular segment have considerably lower prices than their
premium counterparts. Following are the segment-wise product details along with the major
players:
PERSONAL CARE
The Indian personal care industry is estimated at Rs. 170 billion. The industry is comprised of
Fabric Wash, Personal Wash, Hair Care, Oral Care, Skin Care, Colored Cosmetics, Men’s
toiletries, Fragrances.
Personal care industry apart from high profit margins has low entry barriers and severe
competition. Besides the large multinational players, there are some domestic players as well.
Most of the market share is with the large players like HUL, Marico, P&G, ITC
However, cheaper imports and duplicate products are also affecting the major players.
Companies have been adopting promotion schemes to dole out freebies and repackaging
products in smaller packages to cater to a wider consumer base are some recent trends. The way
ahead for the personal care companies is to introduce new and better product, improve
penetration, and make the consumer trade up price and quality, rural marketing will be a major
thrust for all companies as the urban markets are near saturation levels in terms of penetration.
INDIAN MARKET OF PERSONAL CARE PRODUCTS
MARKET SHARE
HAIR CARESKIN CARECOLOR COSMETICSFRAGRANCESBATH AND SHOWER PRODUCTS
ITC
HISTORY AND EVOLUTION
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianised, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company
Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-
business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels,
Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods,
Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's
name were removed effective September 18, 2001. The Company now stands rechristened
'ITC Limited'.
The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was
the centre of the Company's existence. The Company celebrated its 16th birthday on August 24,
1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru
Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more
ways than one. It was to mark the beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most venerated landmarks.
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the
beginnings of a corporate transformation that would usher in momentous changes in the life of
the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the
hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels
business for its potential to earn high levels of foreign exchange, create tourism infrastructure
and generate large scale direct and indirect employment. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 100 owned and managed properties spread
across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India. Bhadrachalam Paperboards
amalgamated with the Company effective March 13, 2002 and became a Division of the
Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with
the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.
ITC's paperboards' technology, productivity, quality and manufacturing processes are
comparable to the best in the world. It has also made an immense contribution to the
development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is
directly involved in education, environmental protection and community development. In 2004,
ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer
service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
Since inception, its shares have been held by ITC, British American Tobacco and various
independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC
Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni
Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with
the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers
Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business
Division for export of agri-commodities. The Division is today one of India's largest exporters.
ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya
farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's
first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the
rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh,
Maharashtra and Uttar Pradesh.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch
of Expressions range of greeting cards. A line of premium range of notebooks under
brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student
population, the popular range of notebooks was launched under brand “Classmate” in
2003. “Classmate” over the years has grown to become India’s largest notebook brand and
has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw
the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under
the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery
Products Business and launched India's first environment friendly premium business
paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium
executive stationery and office consumables segment. Paperkraft entered new categories in the
office consumable segment with the launch of Text liners, Permanent Ink Markers and White
Board Markers in 2009.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife
evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear
brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most
premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from
buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To
mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to
consumers.
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
InfoTech India Limited, to more aggressively pursue emerging opportunities in this area.
Today ITC InfoTech is one of India’s fastest growing global IT and IT-enabled services
companies and has established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across key focus verticals -
Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged
Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of' Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered
the confectionery and staples segments with the launch of the brands mint-
o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast
growing branded snacks category with Bingo! in 2007.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation
of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood, Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di
Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio
Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class
products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of
Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The
Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment
at select markets in October 2007 and Vivel De Wills & Vivelrange of soaps in February
and Vivel range of shampoos in June 2008.
VISION STATEMENT
Sustain ITC’s position as one of India’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company’s stakeholders.
MISSION STATEMENT
To enhance the wealth generating capability of the enterprise in a globalizing environment,
delivering superior and sustainable stakeholder value.
POSITIONING STATEMENT
“Enduring Value, For the Nation, For the Shareholder”
ITC CORPORATE STRATEGIES
Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITC are various businesses.
Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
ITC BUSINESS PORTFOLIO
ITC's diversification is powered by a robust corporate strategy designed to unleash multiple
drivers of growth. Its time tested core competencies, namely unmatched distribution reach;
superior brand building, effective supply chain management and acknowledged skills in
hoteliering have provided ITC the springboard to create new epicenters of growth. Inspired by
the overarching vision of making a contribution to the national goals of sustainable development
and inclusive growth, ITC has innovatively crafted unique business models that synergize long-
term shareholder value creation with enhancing societal capital.
ITC PERSONAL CARE PRODUCTS
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills'
'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and
is being progressively extended nationally.
ITC forayed into the skin cream category with the launch of Vivel Active Fair in July
2010. Vivel Active Fair locks in fairness ingredients to deliver faster and longer-lasting fairness.
This fairness cream helps the skin from the inside as well as the outside, thereby delivering
visible results in just 7 days. Additionally, Vivel Active Fairis enriched with vitamins, minerals
and moisturizers that provide total care to the skin. The cream has SPF 15 sun protection rating.
The cream is suitable for all skin types.
It is sold in various pack sizes, including 50 gram tubes for Rs 72, 25 gram tubes for Rs 39 and 9
gram sachets at a price of Rs 5.
THE ORGANIZATION AND HEIRARCHIAL STRUCTURE IN ITC
ITC FMCG CHANELS
The process of passing the product down the chain to the next organization through Chain of
intermediaries, before it finally reaches to the consumer or end-user is known as the ‘distribution
chain’ or ‘channel’
COMPETITORS
HUL-FAIR & LOVELY
Hindustan Unilever Limited is India’s largest consumeer product company and was formed in
1933 by Lever Brothers India.Its the first company to introduce a fairness cream in the Indian
market.Fair & Lovely was launched in 1975
Various variants of Fair & Lovely are:
Fair & Lovely Fairness Cream-1978
Fair & Lovely Ayurvedic Cream-2001
Fair & Lovely Fairness Cream with extra Brightness-2003
Fair & Lovely Menz Active-2006
Fair & Lovely Body Fairness Milk
Fair & Lovely Anti Marks
Anti Ageing Cream
Perfect Radiance Cream
Fair & Lovely Multivitamin Cream
Retail
Wholesale
Stockis
t
FMCG Van
SWOT OF FAIR & LOVELY
STRENGTH
Fair & LOvely USP-Poer of beauty and fairness in 4 weeks and has worked better for itIts is world's first and largest fairness cream brand.Its one of the most trusted brand for women in India.Fair & Lovely commands a market share of about 75% in the Rs.1200 Crore Fairness market in India
WEAKNESS
Many untapped markets around the worldDecline in market share from over 90% to about 75%.Entrance of foreign companies with higher skills and efficiency to beat existing playersThere is no scientific backing for the manufacturer's claims that their product enhances fairness prevented darkening of the skin or removed blemishes.
OPPORTUNITIES
Even then the sales continue to inclrease.The Indian Market is big and the potentialis even biggerIndian beauty seems to be associated with fairness more than anything elseThe marketgrowth is 15-20% on year to year.
THERATS
Rising competitorsFair & lovely is at maturity stage and have chances to slip down to decline stage
OTHER COMPETITORS
OBJECTIVE OF THE STUDY
The objective of the summer training is to ensure that I as a management student develop in real
life experience for handling the specific project and also to develop all understanding of the
various management activities related to the area of my specialization. This training gives us n
substantial corporate exposure and also serves as a useful tool of interaction with the corporate
sector.
The project has been derived from the field of marketing and is entitled as “A study of Vivel
Active Fair across various channels”
The main objectives of this project are:
Market launch coverage analysis through Tracker
To find out the availability of Vivel Active Fair in the retail market through survey.
Understanding about the functioning of merchandising system, visual merchandising and
display.
To study the sales and repeat sales of Vivel Active Fair and thereby analyze its
acceptance by the consumers.
To analyze which SKU is more in demand.
To analyze which type of outlet is more effective.
To study the impact of services by ITC on the retailers behavior towards pushing the
product.
Compare sales of Vivel Active Fair with that of Fair & Lovely.
To find out margins of retailers.
To study the retailer’s perception towards Vivel Active Fair.
To know the impact of Retail Visibility on customers ultimate purchase intension.
Important factors that influence buying of fairness cream
To analyze all the data and provide learning’s conclusions and recommendations.
THE PROCESS OF NEW PRODUCT LAUNCH AT ITC
TYPES OF OUTLETS AND THEIR PLACEMENT NORMS
Launch is done in the outlets which are category handlers i.e. those outlets which have that
particular product of either ITC or any other Brand.
Each Dealer Salesman covers 30 outlets per day working for 6 days a week on different beats
each day. Therefore total 180 outlets are covered by a DS in a week
STUDY ON THE PERFORMANCE OF VIVEL ACTIVE FAIR
Category Handler of >40 tubesPlacement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladiDISPLAYCategory Handler of 10><40 tubesPlacement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladiNON DISPLAYCategory Handler of <10 tubesPlacement Quantity was 1 9gm ladiSACHETCategory Handler Placement Quantity was 1 9gm ladiCFPPlacement Quantity was 2 9gm ladiSTOCKIST MARKETS
Category HandlerPlacement Quantity was 6 tubes-50gm,12 tubes-25gm,12 to 24 9 gm ladiWHOLESELLERCategory Handler and also having good relations with DSPlacement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladiGOLD
RESEARCH METHODOLOGY
Exploratory research was conducted in Raipur regarding the launch, placement, visibility and
repeat sales of Vivel Active Fair and also to ascertain the competitors of Vivel Active Fair
Cream.
A total of 133 outlets scattered all over Jaipur were surveyed. Written record of the number and
names of the stores in the city was maintained. Since it was very difficult to study all the 4054
retailers present in the city and then carry out the study in the short span of 50 days, so retailers
were selected according to convenience. All shops and areas were surveyed that could possibly
be approached.
Personal interview as well as observation was used to carry out the study. Personal interview wer
used to ascertain the product performance from the retailers and observation was used to
ascertain the visibility of the product.
SAMPLING METHODOLOGY
SAMPLING
The sampling design that has been adopted for the purpose of study is convenience sampling
SAMPLE PLAN FOR TRADE FEEDBACK
The project was conducted for the geographical region of Jaipur. The sample size comprised of
133 General Trade Outlets. The sample consists of both the retailers of the general trade.
SAMPLE PLAN FOR CUATOMER FEEDBACK
The project was conducted for the geographical region of Jaipur. The sample size comprised of
190 Customers of various ages and genders, from across Jaipur
DATA COLLECTION
The data collection exercise was carried over a period of 20 days, in the various
markets of the region. Over the period of 15 days the data was collected and
then all the data was very carefully studied and the results were found out.
TOOLS AND TECHNIQUES
Primary Data- Primary Data was collected during the course of research period with the help of
questionnaire that was designed for both retailers and consumers respectively to collect the
information that was required to carry out the research.
Secondary Data- Secondary Data was collected through books, articles, magazines, previous
researches papers that were conducted by the company’s officials and representatives.
INSTRUMENT
Questionnaire
Personal Interview
TOOLS AND TECHNIQUES FOR ANALYSIS
Simple statistical tools like average, frequency, ratios, tables and graphs
ANALYSIS AND FINDINGS
IMPACT
Sales value/Market Share
Category Growth/Cannibalization
Effect on Competitors
ECECUTION
Speed to Market and Distribution Gaps
Consumer Uptake
Awareness
Consumer ‘Touch Points’
TRIAL
Who trailed the product?
Influences on Trial
Barriers to Trial
Concept Appeal(Product, Packaging, price and Relevance)
REPEAT
NIELSEN NEW PRODUCT LAUNCH
EVALUATOR
IMPACT
ECECUTION
TRIAL
REPEAT
Actual Repeat Purchase
Intention to repeat
Product Performance
IMPACT
DISPLAY N-DISPLAY SACHET GOLD COSMETIC
76 54 33 90 73
65 2 12 9
7.78 9.42 7.04 12.89 12.38
FAIR & LOVELY vs VIVEL ACTIVE FAIRAVERAGE F&L SALE PER OUTLET PER MONTHAVERAGE VAF SALE PER OUTLET PER MONTH VAF AS % IF F&L
The sale of Fair & Lovely in Jaipur for Past one month has been 4000 tones
whereas Vivel Active Fair’s sale is just 4.5 tones which imply that its market
share is almost negligible.
Based on the interviews with the retailers and the office employees, in spite of
getting to a share of 7-12% of sales of Fair & lovely, still Vivel Active Fair has no
effect on Fair & Lovely’s sale.
But if the different channels are separately considered the gold and cosmetic have
taken up better quantum of sale as compared to others.
EXECUTION
Awareness
59%23%
12%
6%
AWARENESSAWARE BUT NEVER USED IT NEVER HEARD OF ITUSE IT ONLY SOMETIMES USE IT ON A REGULAR BASIS
The study shows that 60 % consumers are aware of the product but don’t have
any incentive to choose it over their current fairness cream so efforts should be
made to increase consumer trial.
Still 23% consumers of fairness creams are unaware about Vivel Active fair so
hammering more advertisement would be a general recommendation
The consumer uptake is only 6% for those who have started using Vivel Active
Fair Regularly
Consumer ‘Touch Points’
38%
17%4%
41%
PERCENTAGEDISPLAY ON STORE FRIENDS AND RELATIVESPROMOTION AT NATIONAL HANDLOOM TELEVISION
SOURCE OF INFO
ABOUT VAFADVERTISEMENT DISPLAY
RETAILER'
S PUSH
PROMOTION
S
DISPLAY ON
STORE0 25 63 12
FRIENDS AND
RELATIVES21 27 44 8
PROMOTION AT
NATIONAL
HANDLOOM
18 0 0 82
ADVERTISEMENT 86 12 0 2
Television advertisement is always one of the major factors to pull the consumers.
But since being the launch king ITC has effectively given the visibility of Vivel
Active Fair in the market because of which sale is being boost
o And in display too 63% sale is due to Retailer push and the rest 25% by
display and 12 % Promotional “ear-top” scheme.
Whereas even promotion at National Handloom has also shown good returns.
TRIAL
Who trailed the product?
GENDERPERCENTAG
E
INCOME
LEVELPERCENTAGE AGE PERCENTAGE
MALE 37.25 LOWER 24 20-29 54
FEMALE 62.75 MEDIUM 47 30-39 25
UPPER 29 40-49 21
Influences on Trial
40%
24%
26%
10%
INFLUENCE ON TRIAL ACCORDING TO CUSTOMER SURVEY
FRIENDS/RELATIVES NO INFLUENCERETAILER SKIN SPECIALIST
10%
24%66%
INFLUENCE ON TRIAL ACCORDING TO RETAILER SURVEY
FRIENDS/RELATIVES NO INFLUENCERETAILER SKIN SPECIALIST
According to the retailers a person who uses Fair & Lovely or Vivel Active Fair is
not of the income group who seeks advice of skin specialists.
They are primarily influenced by the retailer’s advice or advertisements.
Barriers to Trial
o The main barrier to trial is the loyalty of the consumers towards their existing
brand i.e. Fair & Lovely
o Second barrier is that the since during the launch phase of a product its success of
failure largely depends on retailer’s interest in selling/pushing the product, which
in this case is not so effectively done.
Concept Appeal(Product, Packaging, price and Relevance)
After interviewing the Retailers and Consumers, it can be subjectively said that
Product- Vivel Active Fair as a product is known to the consumers but has not yet
appealed then to purchase it.
Price- Consumers has rated it 5/5 in price.
Packaging- Consumers has rated it 5/5 in price
Relevance/Quality-Consumers have not yet used the product so unable to rate on
quality
REPEAT
Actual Repeat Purchase
OUTLETTOTAL NO
OF OLS
% OF OLS
FOR
REPEAT
ORDER
AVERAGE
REPEAT
QUANTITY PER
OL
AVERAGE
REPEAT QTY
FOR 50gm
PER OLS
AVERAGE
REPEAT
QTY 25 gm
PER OLS
AVERAGE
REPEAT QTY
9gm PER OLS
DISPLAY 43 76.74 0.22 0.12 0.09 0.10
N-
DISPLAY30 70.00 0.22 0.11 0.07 0.13
SACHET 29 79.31 0.12 0.09 0.06 0.08
GOLD 10 90.00 0.47 0.30 0.16 0.18
COSMETI
C20 65.00 0.52 0.30 0.18 0.25
Subjectively it can be conclude from the study that whether it be the share of Vivel
Active Fair’s Share as compared to Fair & Lovely or repeat orders or the average repeat
quantity per outlet GOLD OUTLETS are performing the best.
Whereas in cosmetic outlets the percentage of outlets for repeat order is the least as
compared to other channels which shows that the sale is not evenly distributed across all
outlets and is concentrated on few (out of 20 outlets 7 outlets have 0 repeat orders and 4
gave only 1repeat order) or we can say that all the performance of the cosmetic outlets
can be attributed to just few outlets
In spite of having the display on the stores, the Display has same average repeat quantity
per outlet as those of Non- Display Outlets. Which can lead to few conclusions:
o The display at the store is not an effective tool to attract customer purchase.
o The retailers at the Non-Display outlets are more motivated than the Display
Outlets by the 20% Margin ITC is giving on Vivel Active Fair and because of
which they are selling more of it
o The consumers in the locality of the Non-Display outlets are our target consumers
and not those on the locality of Display Outlets
SKU
FOR
CUST
REP
FREQUENCY
(TOTAL 64)
SKU
REPEAT
AS % OF
TOTAL
CUST
REPEAT
OLS
9gm 25 39.06
25gm 26 40.63
50gm 13 20.31
Intention to repeat
63 % fairness cream users are ready to switch their brand based on
o Better Quality
o Variety
Product Performance
22%
24%
16%
21%
17%
CUST. REPEAT AS % OF TOTAL OF CATEGORY
DISPLAY N-DISPLAY SACHET GOLD COSMETIC
The customer repeat is highest in Non-Display outlets
12%
48%
7%
16%
7%10%
fairness cream market shareFAIR & HANDSOME FAIR & LOVELYFAIREVER GARNIER LIGHTPONDS WHITE BEAUTY VIVEL ACTIVE FAIR
RECOMMENDATIONS
The main problem which was in the front of all the others with respect to retailers is that
the communication between them and the company is not proper e.g. many retailers are
not informed about the new products and schemes. The DS should be strictly instructed
to pass on the information to all the retailers irrespective of theirs personal prejudices.
The DS asks for repeat of only few products (mainly food) and ignores the products
which give them fewer incentives. Either the DS should be given fairly equable
incentives or they should leave their prejudices.
The distribution system has many loop-holes which need serious consideration like-
timely delivery of the products, services with respect to loyalty programs etc
The DS should be given a target of at least 3 repeat orders per outlet with a minimum
repeat quantity of 0.11 kg per outlet.
Promotional representatives should be placed at Saraogi Mansion, GT and Shree Ram
Departmental Store-Gopalpura etc.
Samples should be given to consumers in Old Jaipur Areas like (Jotwara, Ajmer Gate,
Choda Rasta, Tripolia Bazar etc.)
Since the Non-Display outlets are the cash cows for the company in case if Vivel Active
Fair, therefore there are few suggestions to increase the sales in them:
o The Non-Display Outlets should be provided the displays so as to motivate the
retailer even more to push the product and also to increase the visibility.
o The Non-Display Outlet retailer schemes such as buy 12 pieces of 50gm/25gm
and get one tube and one ladi free.
o The Non-Display Outlet retailer schemes such as get 4 ladi free on 3 repeat orders
a month.
o Based on personal relations Non-Display retailer can be convinced to replace all
the fair & lovely sale for a week with Vivel Active Fair-9gm Sachet, and later the
repeat of those can be traced and thereby the process can be repeated if
successful.
GOLD OUTLETS DISPLAY
FEW COSMETIC OUTLETSNON-DIAPLAY OUTLETSSACHET OUTLETS
STARSQUESTION
MARKS
DOGSCASH COWS
RETAILER’S QUESTIONNAIRE
1.
What is the type of Outlet?
Display
Non Display
Sachet
Cosmetic
2.
Whether there is any display/board/hoarding in that area?
Yes
No
3.
How many times have you placed the repeat orders?
None
1-2 times
3-4 times
5 or more times
5.
You have placed order for which SKU?
50gm tube
25gm tube
9gm ladi
6.
How many orders of each SKU have you placed?
50gm__________
25gm__________
9gm ladi________
7.
Has there been any customer repeat?
Yes
No
8.
Is display useful?
Yes
No
9.
How many tubes of Fair and Lovely do you sell in a month?
___________
10.
Rate Vivel Active Fair on the scale of 1 to 5?
Price
Packaging
Quality
Fragrance
11.
What is the scheme/incentive Fair and Lovely offering to you?
______________________________________________________________________________
______________________________________________________________________________
Personal Details:
Name:
____________________________________________________
Address:
____________________________________________________
_______________________Phone No.:____________________
Date & Time:_________________________________________
CUSTOMER’S QUESTIONNAIRE
1.
Do you prefer any Fairness Cream?
Yes
No
2.
Which one the Fairness Creams are you using?
___________________________
3.
For which purpose are you using the Fairness Cream?
___________________________
4.
How often do you buy a Fairness Cream?
Once per week or more often
2-3 times per month
Once per month
Once in 2-3 months
Once or twice a year
5.
Are you satisfied with the Fairness Cream which you are using?
Yes
No
6.
Your intention towards replacing your existing brand of Fairness Cream?
To replace
Not to replace
7.
Reasons for switching the brand?
Variety/boredom
Non availability
Packing/novelty/features
Price
Better Quality
8.
Which thing do you prefer before buying the Fairness Cream?
Cost
Quantity
Its Result
Quality
Brand Ambassador
Packaging
Brand Image
Other s:-__________
9.
Which Type of Fairness Cream do you prefer?
Ayurvedik
General
Related to Skin
Related to weather condition
Other s:-__________
10
How familiar are you with Vivel Active Fair?
Never heard of it
Aware but never used it
Use it only sometimes
Use it on a regular basis
11.
From where do you get the information & knowledge regarding Vivel Active Fair?
Par lo r
T.V.
Friends & relatives
News paper & Magazines
Internet
Other s:-______
12.
On whose recommendation do you buy any beauty product?
Friend’s
Relative’s
Retailer’s
Chemist’s
Skin Specialist’s
Other s:-______
13.
Rate Vivel Active Fair on the scale of 1 to 5?
Price
Packaging
Quality
Fragrance
14.
Which price range of cream you prefer the most?
Economy(Rs. 5)
Popular (Rs.32 )
Premium (Rs. 72)
Personal Details:
Name:
____________________________________________________
Address:
____________________________________________________
_______________________Phone No.:____________________
Gender:
_________________________Age: _______________________
Date & Time:____________________________________________________
BIBLIOGRAPHY
http://www.itcportal.com/about-itc/itc-profile/itc-profile.aspx
http://au.nielsen.com/products/documents/NPLEL4flyerfinal.pdf
The Indian Marketing Journals by ICFAI
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