Sales, Merchandizing & Review of
                Competitor activities at CSD-Noida


SIP Project Report Submitted in Part...
Acknowledgement


I take privilege to express my immense gratitude to Dabur India Limited for
providing me with this oppor...
Table of Contents
Executive Summary .........................................................................................
Tabulations and Findings ....................................................................................................
Executive Summary

Merchandising is the activity of promoting the sale of goods, especially by their
presentation in retai...
The problem with these stores is that Dabur’s Volume at these stores was declining
and the company wanted to know the reas...
Introduction

Dabur India Limited is a leading Indian consumer goods company with interests in
health care, Personal care ...
Figure 1 Dabur's worldwide presence.




CCD, dealing with FMCG Products relating to Personal Care and Health Care

     ...
digestive tablets category
      Dabur Lal Tail is the 2nd Largest Brand of Baby
       Massage Oil with 33% Market Share...
   Major categories in traditional formulations include:
       - Asav Arishtas
       - Ras Rasayanas
       - Churnas
 ...
Figure 2 Journey of Dabur




PGDM 08-10-IMT-Nagpur                               Page 11
Dabur SWOT


      STRENGTHS:

    Century Old Company.




    Established Brand.

    Ayurvedic/ herbal Product line...
    THREATS:

     Competition in the FMCG sector from well established names.

     Other fields of medicine- Allopath...
by 2010, India needs around US$ 28 billion of investment in the food-processing
industry.




                         Fig...
by the market, and so there is no reason to question the growth rate projections. There
has not been any drop in demand fo...
   Export potential.
      Increasing income levels will result in faster revenue growth.

Threats:

      Imports

   ...
2) Irrational domestic tax structure encouraging imports.

Significant reduction in custom duty rates of consumer goods ha...
indigenous manufacture goes up. The import duty on raw materials needs to be
rationalized so that it does not exceed 60 to...
increase their sales is to increase the visual appeal and appearance of the products and
to change with changing activitie...
example, almost all products delivered directly to the store from a manufacturer or
wholesaler will be stocked by the manu...
Shelf Appeal

Your brand must stake its claim to the much sought-after real estate at the point of
destination on the stor...
services personnel and their families but also to GREF, NCC Units at Group HQ
level, TA units, CDA's staff, Ordinance fact...
14                         Red Tooth Paste 50gm
     15                         Red Tooth Paste 100gm
     16             ...
50                                 Hommade Ginger Garlic 200gms
       51                                 Hommde Tomato Pu...
     Refined by Dabur to provide traditional goodness with best quality.
        Reinforces the immune system & helps fi...
1. SKU availability report
       Under this only the SKU’s of the Dabur brand were considerd and their
       availabilit...
For this a printed data sheets were provided from Dabur enlisting all the
      SKU’s available to sale from the company e...
5. Consumer behavior report
         Consumer response to Product, Price, Place, Promotion and Packaging were
         obs...
S. No           Category              SKU's available             Combined                Total
  1              HO-DIL   ...
Date                              Product& Quantity Available
                  Colgate Fresh    Colgate     Pepsodent 150...
Hena Conditioning       Active Dandruff      Active Dandruff     Hena Conditioning
                     200ml             ...
Dabur Amla                              Dabur Amla       Shanti Amla
                     200ml          Dabur Amla 300ml ...
Sanifresh              Sanifresh Forest Dew      Harpic
Display Counter      Bottom-Hidden                    N/A         ...
   Sec 23 Coast Guard Canteen



     Date                          Product& Quantity Available
Display Counter          ...
Date                        Product& Quantity Available
  Display
  Counter               2nd                 Top         ...
Gulucose 100gm      Gulucon      Guluco Vita   Gulucose 500gm
Display Counter      Stock out          N/A           N/A   ...
Parachute 2L     Parachute 100ml        Parachute 200ml    Parachute 500ml
Display Counter          N/A              Botto...
Real 1ltr                              Real 200ml
                                                   nd
   Display Counter...
Date                     Product& Quantity Available
                                        Colgate Fresh 150gm          ...
Dabur Amla         Dabur Amla              Dabur Amla            Shanti Amla
                       200ml               30...
Real 1ltr                                 Real 200ml
   Display Counter                                  FLOOR            ...
S. No        Category            Product Name                  Displayed Quantity   Display Shelf
        1    HO-DIL     ...
Figure 5 Sec 37 DASC Products properly stacked




                  Figure 6 Sec 23 Coast Guard Products properly stacked...
Figure 7 Sec 23 Coast Guard Products properly stacked

Causes for Improper display
      Un-organized goods.

      Unut...
Figure 8 Sec 21 Air Force Mixing of Product – Improper display




           Figure 9 Sec 23 Coast Guard Products not pla...
Figure 10 Sec 21 Air Force Products- Products placed on floor.




                    Figure 11 Sec 21 Air Force – Shelve...
Display pattern used by other companies (competitive and non-competitive)




                                   Figure 12...
Figure 14 Product line display counters




                          Figure 15 Hanging Advertisements




PGDM 08-10-IMT-...
Consumer Behavior and merchandizing cases report

Consumer Survey
A small survey was done in response to company’s require...
was sold in time period of 3 hrs. People buying Head & Shoulders
                                        started comparing...
Availablity of Dabur SKU's at CSD.


                DAAC             Air Force                Coast Guard                ...
Odonil               Odonil                           Odonil                 Odonil

Juices               Real has no comp...
its dedicated merchandizing workforce. The product continued to enjoy a top shelf
along with proper price tags mentioned b...
25

        20                                                             6


        15
                                ...
2. Company should not go in contract with a third party for the
             merchandizing staff. As the staff deployed by...
2. The time frame setup was quite less as compared to the time period sales force
       devotes to merchandizing. Initial...
Annexure

Format of Consumer Survey
                                   QUESTIONNAIRE

                                  Co...
Time:

Consumer Type:

Remark:

Merchandising data collection sheets
         Dabur Sheet 1

 S.                         ...
Total
  23     LS-HC     Odomos Mosq. Rep. Lotion
  24     LS-HC     Odomos Mosq.Rep. Cream
  25     LS-HC     Odonil Air ...
51    LS-Foods       Hommde Tomato Pure 200gm
                                                     Total




             ...
Dabur Visual Merchnadising Report
Dabur Visual Merchnadising Report
Dabur Visual Merchnadising Report
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Dabur Visual Merchnadising Report

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Report on Dabur\'s Visual Merchandising activities and trade promotions and problems with Dabur at Noida
For full report mail me at malhotra.vikas84@gmail.com

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Dabur Visual Merchnadising Report

  1. 1. Sales, Merchandizing & Review of Competitor activities at CSD-Noida SIP Project Report Submitted in Partial Fulfillment of the Requirements for the PGDM Program By Vikas Malhotra – 08FN106 Supervisors: Mr. R.S.Arora (Dabur India Ltd) Dr. Punyashree Panda (Faculty, IMT-N) Dr. Ranjeet Nambudiri (Faculty, IMT-N) INSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR 2008-10 PGDM 08-10-IMT-Nagpur Page 1
  2. 2. Acknowledgement I take privilege to express my immense gratitude to Dabur India Limited for providing me with this opportunity and excellent facilities for completion of the project. I would also like to extend my gratitude to Mr. R.S.Arora for his encouragement. I extend my heartfelt gratitude to Mr. Amitabh Banarjee, who has been instrumental in inspiring me to take up this project. Now, I would like to acknowledge the generous support of Mr. Vishal Bakshi. I would like to express my sincere thanks to my faculty guide Dr. Punyashree Panda and Dr. Ranjeet Nambudiri who has been responsible for inculcating the confidence to carry out the project and who has helped me to face the impediments during the course of the project with inflexible resolution. Last but not the least I would like to thank my Parents and Friends for their continuous support and encouragement. Vikas Malhotra 08FN106 PGDM 2008-10 PGDM 08-10-IMT-Nagpur Page 2
  3. 3. Table of Contents Executive Summary ................................................................................................................... 5 Introduction ................................................................................................................................ 7 Dabur SWOT ....................................................................................................................... 12 Industry Profile......................................................................................................................... 13 Industry SWOT ..................................................................................................................... 15 Objective .................................................................................................................................. 18 Concepts Used ......................................................................................................................... 19 Merchandising ..................................................................................................................... 19 Why merchandising matters? .............................................................................................. 20 Psyche of a Shopper ........................................................................................................... 20 Battle of the Brands ........................................................................................................... 20 Shelf Appeal........................................................................................................................ 21 CSD ....................................................................................................................................... 21 CSD canteens visited under project guidelines .................................................................... 22 Products Observed............................................................................................................... 22 Major Product’s Profile ........................................................................................................ 24 Reports prepared ..................................................................................................................... 25 1. SKU availability report ................................................................................................ 26 2. Displayed Quantity report ............................................................................................ 26 3. Display of other SKU’s ................................................................................................ 26 4. Merchandising report ................................................................................................... 26 5. Consumer Behavior ..................................................................................................... 26 Methodology followed ............................................................................................................. 26 1. SKU availability report ................................................................................................ 26 2. Displayed quantity report ............................................................................................. 27 3. Display of other SKU’s report ..................................................................................... 27 4. Merchandising report ................................................................................................... 27 5. Consumer behavior report............................................................................................ 28 PGDM 08-10-IMT-Nagpur Page 3
  4. 4. Tabulations and Findings ..................................................................................................... 28 1. SKU availability report ................................................................................................ 28 2. Displayed Quantity report ............................................................................................ 29 3. Display of other SKU’s report ..................................................................................... 41 4. Merchandising report ................................................................................................... 42 Guidelines for a Good Display......................................................................................... 42 Causes for Improper display ............................................................................................ 44 Display pattern used by other companies (competitive and non-competitive) ................ 47 Consumer Behavior and merchandizing cases report .......................................................... 49 Consumer Survey ............................................................................................................. 49 Merchandizing Experiments and findings ....................................................................... 49 Understanding – Interpretations ............................................................................................... 50 Recommendations .................................................................................................................... 54 Limitations of the study ........................................................................................................... 55 Scope for improvement ............................................................................................................ 56 Annexure .................................................................................................................................. 57 Format of Consumer Survey ................................................................................................ 57 Merchandising data collection sheets .................................................................................. 58 Table of Figures .................................................................................................................... 62 BIBILIOGRAPHY .................................................................................................................. 63 PGDM 08-10-IMT-Nagpur Page 4
  5. 5. Executive Summary Merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. This includes combining product, environment, and space into a stimulating and engaging display to encourage the sale of a product or service. It has become an important element in retailing that is a team effort involving senior management, architects, merchandising managers, buyers, the visual merchandising director, designers, and staff. Retail professionals display to make the shopping experience more comfortable, convenient and customer friendly by: • Making it easier for the shopper to locate the desired category and merchandise. • Making it easier for the shopper to self-select. • Making it possible for the shopper to co-ordinate & accessorize. • Providing information on sizes, colours & prices. • Informing about the latest fashion trends by highlighting them at strategic locations. With the recession all around companies are left with few options to increase sales. The prominent amongst them is that the product should appeal more to the consumer. With this thing the project regarding how to increase sales more without spending massive amount of money I was allotted the project. Dabur India ltd is one of the renowned FMCG company in India. Dabur India ltd also sells its product through Canteen Stores Department run by Indian Ministry of Defence. While the price at CSD outlets is lower than the local market but the sales volume is quite high. The stores only provide material to people of Armed Forces. These stores are of self-service format. PGDM 08-10-IMT-Nagpur Page 5
  6. 6. The problem with these stores is that Dabur’s Volume at these stores was declining and the company wanted to know the reason for that. The companies generally collaborate and deploy a single person for 4-5 brands. The aims to find out the level of SKU’s available during a given period of time at CSD, competitors activity at these outlets, quality of the display of Dabur products with comparison to that of competitors, the working style of merchandising staff and alternatives to improve the merchandising at CSD. The methodology adopted was visual observation while keeping a record of SKU’s available at the outlet compared to competitors. A survey was done to check the consumer response, in addition to various consumer behavior experiments. A daily record of working of merchandising staff was also kept. The results revealed that Dabur was actually facing the problem due to inefficient merchandizing staff. The interest level of the merchandizing staff was on continuous decline as the product’s line and length was quite long and the area of outlets which he had to cover was exceptionally wide. Suggestions were provided regarding a change in the merchandising agency and use of other innovative display boards. These display boards can help the company to increase its visual appeal at these counters. PGDM 08-10-IMT-Nagpur Page 6
  7. 7. Introduction Dabur India Limited is a leading Indian consumer goods company with interests in health care, Personal care and foods. Over more than a 125 years have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. Through the comprehensive range of products, they touch the lives of all consumers, in all age groups, across all social boundaries. And this legacy has helped them develop a bond of trust with their consumers. Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status. Its story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of policies and initiatives of Dabur speak for themselves in all over the corporate sector. Certain facts about the company.  Leading consumer goods Company in India with a turnover of Rs.2233.72 Crore (FY07).  2 major strategic business units (SBU) - Consumer Care Division (CCD) and Consumer Health Division (CHD).  3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and Dabur International and 3 step down subsidiaries of Dabur International - Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt.  13 ultra-modern manufacturing units spread around the globe  Products marketed in over 50 countries.  Wide and deep market penetration with 47 C&F agents, more than 5000 distributors and over 1.5 million retail outlets all over India. PGDM 08-10-IMT-Nagpur Page 7
  8. 8. Figure 1 Dabur's worldwide presence. CCD, dealing with FMCG Products relating to Personal Care and Health Care  Leading brands -  Dabur - The Health Care Brand  Vatika-Personal Care Brand  Anmol- Value for Money Brand  Hajmola- Tasty Digestive Brand  and Dabur Amla, Chyawanprash and Lal Dant Manjan with Rs.100 crore turnover each  Vatika Hair Oil & Shampoo the high growth brand  Strategic positioning of Honey as food product, leading to market leadership (over 40%) in branded honey market  Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.  Leader in herbal digestives with 90% market share  Hajmola tablets in command with 60% market share of PGDM 08-10-IMT-Nagpur Page 8
  9. 9. digestive tablets category  Dabur Lal Tail is the 2nd Largest Brand of Baby Massage Oil with 33% Market Share. CHD (Consumer Health Division), dealing with classical Ayurvedic medicines  Has more than 250 products sold through prescriptions as well as over the counter Table 1Dabur's product portfolio PGDM 08-10-IMT-Nagpur Page 9
  10. 10.  Major categories in traditional formulations include: - Asav Arishtas - Ras Rasayanas - Churnas - Medicated Oils  Proprietary Ayurvedic medicines developed by Dabur include: -Nature Care Isabgol - Madhuvaani - Trifgol Division also works for promotion of Ayurveda through organized community of traditional practitioners and developing fresh batches of students. Dabur intend to significantly accelerate profitable growth. To do this, they will:  Focus on growing core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging technology.  Be the preferred company to meet the health and personal grooming needs of target consumers with safe, efficacious, natural solutions by synthesizing deep knowledge of ayurveda and herbs with modern science.  Provide consumers with innovative products within easy reach.  Build a platform to enable Dabur to become a global ayurveda leader.  Be a professionally managed employer of choice, attracting, developing and retaining quality personnel.  Be responsible citizens with a commitment to environmental protection.  Provide superior returns, relative to our peer group, to our shareholders. PGDM 08-10-IMT-Nagpur Page 10
  11. 11. Figure 2 Journey of Dabur PGDM 08-10-IMT-Nagpur Page 11
  12. 12. Dabur SWOT  STRENGTHS:  Century Old Company.  Established Brand.  Ayurvedic/ herbal Product line.  Leader in Herbal Digestives where the product has 90% of the market share.  Innovativeness in Promotions.  WEAKNESS:  Profitability is uneven across product line.  OPPORTUNITIES:  Extend Vatika brand to new categories like Skin Care and body wash segments.  Launch several OTC brands.  Southern India Market.  Exploring new geographical areas- local as well global.  Oral Care Segment.  Launching new Products like Hair oils, Herbal and Gel Toothpastes etc. PGDM 08-10-IMT-Nagpur Page 12
  13. 13.  THREATS:  Competition in the FMCG sector from well established names.  Other fields of medicine- Allopathic and Homeopathic.  Markets where Herbal products are not recognized. Industry Profile Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that have a quick turnover and relatively low cost. Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 15.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 15.6 billion in 2008 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food PGDM 08-10-IMT-Nagpur Page 13
  14. 14. by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Figure 3 Average Consumer spending profile An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. The FMCG industry is set to grow 20- 30 per cent in 2009-10, up from 10-20 per cent in 2008-09. The growth would be driven by the launch of new products and increasing rural consumption, according to industry experts. By definition, FMCG addresses a very core need in the consumer’s life and so it is less prone to economic swings than high ticket items such as television or even apparel. Price increases on products by the companies have also been well-absorbed PGDM 08-10-IMT-Nagpur Page 14
  15. 15. by the market, and so there is no reason to question the growth rate projections. There has not been any drop in demand for consumer products at popular price points. However, there may have been some narrowing in demand at the top-end of the market; in the mass market, demand continues to be strong, both from rural and urban markets. FMCG sector is perceived as a defensive sector and safe haven for investment in turbulent times. The sector is considered so due to the strong characteristics of the FMCG business that relies on domestic consumption. With the input cost inflation easing, a better margin picture in the coming quarters can be expected. We expect rural markets to continue to witness buoyancy in the demand due to higher minimum support price for farm produce, farm loan waiver scheme and the steep increase in the salaries of government employees’ consequent to the implementation of the Sixth Pay Commissions. Industry SWOT Strengths:  Well-established distribution network extending to rural areas.  Strong brands in the FMCG sector.  Low cost operations. Weaknesses:  Low export levels.  Small scale sector reservations limit ability to invest in technology and achieve economies of scale.  Several "me-too’’ products. Opportunities:  Large domestic market. PGDM 08-10-IMT-Nagpur Page 15
  16. 16.  Export potential.  Increasing income levels will result in faster revenue growth. Threats:  Imports  Tax and regulatory structure.  Slowdown in rural demand. Policy issues Tax reforms The government has gradually removed the restrictions on imports of consumer goods in the country and also significantly reduced custom duties. The domestic tax structure of these products, however, has not been rationalized to provide level playing field for competition. This is adversely affecting the growth of the FMCG industry and could have far reaching adverse impact. The following taxation issues need urgent attention of the government: 1) Extremely high incidence of tax on certain product categories. Some FMCG products such as shampoos, processed food, soft drinks and toiletries containing alcohol attract high rates of excise duty and sales tax. The total tax incidence in some cases is more than 60 per cent of the cost or more than 30 per cent of MRP. Such high tax incidence hampers growth of these product categories besides encouraging manufacture of spurious products and smuggling. It is recommended that the total excise incidence of FMCG products should not exceed 16 per cent in the case of non food items and eight per cent in the case of processed foods. Similarly, the marginal rates of sales tax, which is currently in the range of 10 to 25 per cent, should not exceed 12 per cent. PGDM 08-10-IMT-Nagpur Page 16
  17. 17. 2) Irrational domestic tax structure encouraging imports. Significant reduction in custom duty rates of consumer goods has made imported product cheaper as compared to indigenously manufactured products, due to irrational domestic tax structure. For instance, goods manufactured in India suffer from cascading effects of taxes on inputs as additional cost compared to imports. The cascading effect of sales tax and local levies on inputs used in domestic manufacture should be eliminated by providing either MODVAT credit or by introducing notional VAT covering both central and state taxes on an urgent basis. Moreover, MRP-based excise duty is levied on a large number of FMCG products. Countervailing duty on the same product when imported is charged on CIF value. The MRP based assessable value for excise duty does not allow abatement for post manufacturing costs such as advertising and selling expenses whereas CIF value considered for the purpose of import duty does not include costs of these elements incurred subsequently by importers. This differential basis creates unfair competition as tax incidence on domestic manufacture could be considerably higher in case of those products which incur significant marketing and distribution cost. There is a need to bring parity in tax incidence between domestic manufacture and imports by including all such elements of post manufacturing costs while deciding the abatement percentage of MRP based duty. 3) Inverted Duty structure for selected inputs. Duty on certain raw materials is higher or the same as compared to finished products in which these materials are used. Such raw materials include oils and chemicals like Soda ash, caustic soda and LAB. In addition to customs duty, raw materials are also subject to SAD/sales tax and octroi and therefore total tax incidence and cost of PGDM 08-10-IMT-Nagpur Page 17
  18. 18. indigenous manufacture goes up. The import duty on raw materials needs to be rationalized so that it does not exceed 60 to 70 per cent of the duty on finished goods. 4) Need for rationalization of taxes on processed foods. Processed food industry, with its vertical integration with the agricultural sector has significant potential for employment generation and economic growth. The existing tax structure and its high overall incidence, however, have been hampering the growth of the processed industry. The increase in excise duty in last year’s budget from eight per cent to 16 per cent has adversely affected the growth of processed foods industry. It is recommended that marginal rate of excise duty on processed foods should not be more than eight per cent and the sales tax should be levied at four per cent. 5) Cascading effect of Special Excise Duty. The special excise duty introduced last year is not "cen-vatable’’ except in the case of selected products. Most FMCG products covered by tariff chapter 33 such as shampoos, ice creams and cosmetics are subject to SED. This tariff chapter also contains very wide definition of the term "manufacture’’ which includes labeling, relabeling or conversion of large packs into small packs. The levy of SED on such products therefore leads to double taxation when goods are labeled or converted into small packs after manufacture. It is recommended that SED should be made "cen- vatable’’; alternatively the term "manufacture’’ needs modification , at least for the purpose of SED by excluding labeling, relabeling or conversion into small packs. Objective With the increasing battle of fierce competition amongst the existing players and the entry of new players, the FMCG companies are forced to reduce on to their margins. Companies have limited options left to stay in the market. And one of the aspects to PGDM 08-10-IMT-Nagpur Page 18
  19. 19. increase their sales is to increase the visual appeal and appearance of the products and to change with changing activities of the competitors. Objectives of the project are: 1. To maintain a report on the displayed stock availability of the Dabur’s products as well as of its competitors (all SKU’s). 2. To analyze the display quality of Dabur as well as its competitor’s product. 3. To analyze the merchandizing activities done by the competitors’ brand. 4. To review the workings of merchandizing staff employed at sites. 5. To analyze the consumer behavior. 6. To analyze consumer behavior in regard to Dabur’s 5Ps with the help of marketing survey. 7. To analyze the criteria for the allotment of shelf space. Concepts Used Merchandising In retail commerce, merchandising means maximizing merchandise sales using product design, selection, packaging, pricing, and display that stimulates consumers to spend more. This includes disciplines in pricing and discounting, physical presentation of products and displays, and the decisions about which products should be presented to which customers at what time. In the supply chain, merchandising is the practice of making products in retail outlets available to consumers, primarily by stocking shelves and displays. While this used to be done exclusively by the stores' employees, many retailers have found substantial savings in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the products to the retail store. By doing this, retail stores have been able to substantially reduce the number of employees needed to run the store. While stocking shelves and building displays is often done when the product is delivered, it is increasingly a separate activity from delivering the product. In grocery stores, for PGDM 08-10-IMT-Nagpur Page 19
  20. 20. example, almost all products delivered directly to the store from a manufacturer or wholesaler will be stocked by the manufacturer's/wholesaler's employee who is a full time merchandiser. Why merchandising matters? Without a merchandising strategy, products on the store shelf are left to fend for themselves among a sea of competing products. Beyond packaging, brand name and price, shoppers must pore over the fine print to determine whether or not a product qualifies for purchase. With the help of a carefully formulated merchandising strategy, retail marketers can highlight the unique value and benefits of a featured brand to pursue and attain the coveted status of category leader. Psyche of a Shopper The shopper is a complex target, faced with too little time, too many choices, and too much information. An effective merchandising strategy will simplify the decision- making process, validate the shopper’s purchase criteria, and accelerate the journey to the checkout stand. Battle of the Brands Product selection has become a science. In the case of produce, it’s based on source, ingredients, nutrition, price, expiration date, number of servings and visual or perceived quality. Although all these attributes are important, merchandising applies research and analysis to identify and highlight the key benefits and unique properties of the brand. The resulting merchandising solution will present the compelling reason to buy that will appeal to the highest percentage of the target audience. PGDM 08-10-IMT-Nagpur Page 20
  21. 21. Shelf Appeal Your brand must stake its claim to the much sought-after real estate at the point of destination on the store shelf. If you are successful in stimulating interest in your brand and the benefits it offers the consumer, shoppers will return to that section of the store and incorporate it into their regular store “circuit.” Once you have established your territory, you must guard it from adjacent competing brands through ongoing reinforcement of your P-O-P promotional message, brand and call to action. CSD Canteen Stores Department ('CSD') is run by the Indian Ministry of Defence, and has a presence in all major military bases operated by the Indian Armed Forces. CSD sells a wide variety of products like household provisions, kitchen appliances, alcoholic drinks, cars, sports equipment, exclusively for active and retired members of the Armed Forces. Generally, these goods are procured by CSD in bulk, and sold at concessional rates, compared with retail prices. The CSD has grown from a turnover of Rs. 48 in 1948 to over Rs. 2.700 crore in 1998-99 - a growth of over 4500 times. Turnover per employee in 1998-99 was Rs. 122 lakhs. The CSD serves 16 million people - 5% of India's population which can afford consumer items and durables. The CSD's profits are ploughed back into Welfare Schemes for Defence Personnel and their families. The CSD has a very low ratio of operating expenses to turnover - 1.30% - perhaps the lowest in any organization in the country. With 33 Area Depots and 3400 Unit-Run-Canteens (URCs), the CSD serves the services in all the parts of the country - from Ladakh in the North, Tamil Nadu and Kerala in the South, Nagaland in the East, Rajasthan in the West and even Port Blair. The CSD maintains an inventory of 2800 items that cover a wide range, from shoe laces to cars. The CSD has 'Bi-annual Sales cum-After-Sales Melas' at its Area Depots which includes items not in the CSD's inventory. It caters not just to the PGDM 08-10-IMT-Nagpur Page 21
  22. 22. services personnel and their families but also to GREF, NCC Units at Group HQ level, TA units, CDA's staff, Ordinance factories, Embarkation HQs, Civilians paid from Defence estimates and Para-military forces under operational/administrative control of the Army. It is the only department in the Ministry of Defence where defence civilians are actually serving in forward and high altitude areas, shoulder to shoulder with the combatant personnel of the Armed Forces. CSD canteens visited under project guidelines 1. Delhi Area Station Canteen Sec 37, Noida (U.P) Under army command. 2. Air Force Canteen Sec 21, Noida (U.P) Under Air Force Command. 3. Coast guard Canteen. Sec 23, Noida (U.P) Under Coast Guard Command. Products Observed S. No Category Product 1 Amla Hair Oil 100ml 2 Amla Hair Oil 200ml 3 Amla Hair Oil 300ml 4 Vatika Hair Oil 150ml 5 Vatika Hair Oil + Scheme 6 Vatika Hair Oil 300ml HO-DIL 7 Vatika Hair Oil + Scheme 8 Vatika HC Shampoo 9 Vatika AD Shampoo 10 Vatika Smooth & Silky 200ml 11 Vatika DC Shampoo 200ml 12 Lal Danth Manjan 150gm 13 Lal Danth Manjan 60gm PGDM 08-10-IMT-Nagpur Page 22
  23. 23. 14 Red Tooth Paste 50gm 15 Red Tooth Paste 100gm 16 Red Tooth Paste 200gm 17 Lal Tail 18 Odopic Scouring Bar 400gm 19 Odopic Scouring Bar 600gm HO-HC 20 Babool Toothpaste 200gms 21 Promise Toothpaste 200gms 22 Meswak Toothpaste 100gm 23 Odomos Mosq. Rep. Lotion 24 Odomos Mosq.Rep. Cream 25 Odonil Air Freshener 100gm LS-HC 26 Odonil Air Freshener 50 gm 27 Odonil Room Spray 250gm 28 Toilet Cleaner 500ml+Odonil 50 gm 29 Toilet Cleaner Sani F. Dew 500ml 30 Gulucose 100gm 31 Gulucose 500gm 32 Shudh Madhu 250gm 33 Shudh Madhu 500gm 34 Shudh Madhu 1kg 35 Hajmola Bottle 36 Pudin Hara LS-DIL 37 Dabur Chyawanprash Awaleh 1kg 38 Chywanprash Awaleh+ 40gm Honey 39 Chywanprash Awaleh 1kg Spl 40 Chywanprsh 500gm Spl 41 Lavan Bhaskar Churna 120gm 42 Shilajit 30caps 43 Nature Care 100gm 44 Nature Care 375gm 45 Real Orange Juice 1ltr 46 Real Guava 1000ml LS-Foods 47 Real Mango Nectar 200ml 48 Real Orange Nectar 200ml` 49 Real Guava 200ml PGDM 08-10-IMT-Nagpur Page 23
  24. 24. 50 Hommade Ginger Garlic 200gms 51 Hommde Tomato Pure 200gm Table 2 Dabur's Product watched at CSD outlets Major Product’s Profile Figure 4 Dabur's Products Dabur Amla  Introduced in early 50's in northern India.  Becomes largest selling branded hair oil.  Original French perfume formulation with goodness of Amla.  First branded perfumed hair oil.  Expanded market to go national in 70's.  Flagship brand in Hair Care category of Dabur.  Over Rs.180 crore turnover.  10% share in Rs.1600 crore Hair Oil market. Dabur Chyawanprash  Derived from 2500 year old Ayurvedic formula.  Totally chemical-free, natural and safe.  Powerful combination of herbs and plant extracts in a base of Amla fruit pulp. PGDM 08-10-IMT-Nagpur Page 24
  25. 25.  Refined by Dabur to provide traditional goodness with best quality.  Reinforces the immune system & helps fight disease.  Trusted health provider of a majority of Indian households. Odonil Originally bought from Balsara the brand is properly placed in active air freshener category. The product is available in block as well as aerosol form. The problem area for the company is the threat from low priced substitutes. Dabur Honey Dabur India Limited saw the potential of honey beyond its remedial value. Helping every household imbibe the goodness of this natural wonder liquid in their day-to- day life.  Dabur Honey launched as a food product  Largest player in the branded honey market, commanding 80% of the total share  Recently launched n convenient easy to use squeeze pack.  Focusing on promoting food led usage. Real Most preferred taste and wide acceptance-A research conducted by Synovate.  Fastest growing brand-6th National dairy and Beverage Seminar.  HACCP and GMP Certifications-Societe Generale De Surveillance Reports prepared To facilitate the project work, 5 different reports were prepared covering all the aspects of the project. PGDM 08-10-IMT-Nagpur Page 25
  26. 26. 1. SKU availability report Under this only the SKU’s of the Dabur brand were considerd and their availability at the three outlets were analyzed during the project work. 2. Displayed Quantity report Under this the displayed quantity of the Dabur products as well as competitor brands was observed. Also the display location was also recorded so as to facilitate the analyzing of the quality of the display. 3. Display of other SKU’s The display of other SKU’s was also observed where the competitor activity was nil or the competitor activity was not allowed to be watched. 4. Merchandising report It consisted the working of the merchandising staff of the Dabur as well as of other brands. Report also consisted of analyzing the display of other brands listed over there, making necessary changes to improve and re-evaluating the whole procedure. 5. Consumer Behavior It consisted of recording consumer behavior regarding products different aspects. Conducting a marketing survey to analyze the image of Dabur’s product in mind of consumers. Methodology followed Different methodologies were used for different reports. In general the methodology ranged from physical observation, talking to CSD manager to conducting survey. 1. SKU availability report Under this physical check of the displayed quantity was done. The total SKU’s to be watched was 51. On an average it took about 1 hr to complete this report. PGDM 08-10-IMT-Nagpur Page 26
  27. 27. For this a printed data sheets were provided from Dabur enlisting all the SKU’s available to sale from the company end. 2. Displayed quantity report A visual check was done so as to ascertain the quantity of goods displayed by Dabur as well as its competitors. Moreover a track record of the time period a product takes to sell and the quality of the display was also maintained so as to facilitate the following quests  Best-Fully stacked-Widest Display.  Highest-Fastest-Consistent Selling.  Display shelf quality – Improper – Normal –Good.  Display shelf positions Top-Middle- Bottom. 3. Display of other SKU’s report Under this a physical check was done so as to analyze the availability of Dabur products that doesn’t have any competition over there. The display quality of the products was also observed. 4. Merchandising report Workings of the merchandising staff was observed visually as well as on output of task given to them. A proper visual record was maintained of Dabur merchandizing as well as merchandizing done by the other companies using Photographs taken at CSD outlets and were later compared to other outlets. To facilitate this, guidelines for proper & improper displays were first formulated and the deviation with regard to guidelines was recorded. Innovative merchandizing options used by the other non-competitive brands were also visually recorded. Products’ mixing with cheaper substitute product was also recorded and its impact of sales was calculated using normal stastics. PGDM 08-10-IMT-Nagpur Page 27
  28. 28. 5. Consumer behavior report Consumer response to Product, Price, Place, Promotion and Packaging were observed using a 5 question Un-official survey. 4 different Consumer Behavior activities were also done at the outlets and the response to them was also observed. Tabulations and Findings 1. SKU availability report S. No Category SKU's available Combined Total 1 HO-DIL 6 2 LS-DIL 6 12 3 4 HO-HC LS-HC 3 2 5 20 5 LS Foods 3 3 Table 3 Sec 37 Delhi Area Station Canteen SKU status S. No Category SKU's available Combined Total 1 HO-DIL 6 2 LS-DIL 6 12 3 4 HO-HC LS-HC 2 0 2 15 5 LS Foods 1 1 Table 4 Sec 23 Coast Guard Canteen SKU status PGDM 08-10-IMT-Nagpur Page 28
  29. 29. S. No Category SKU's available Combined Total 1 HO-DIL 5 2 LS-DIL 5 10 3 4 HO-HC LS-HC 2 1 3 15 5 LS Foods 2 2 Table 5 Sec 21 Air Force Canteen SKU status 2. Displayed Quantity report  Sec 37 Delhi Area Station Canteen Date Product& Quantity Available Red Tooth Paste 50gm Meswak 100gm Promise 200gm Babool 200gm Display Counter Stock out Top-Easily Visible Top Top 28-May-09 0.5 1 2.5 0.5 29-May-09 0.5 1 2.5 0.5 2-Jun-09 0.25 1 2 0.5 3-Jun-09 0.25 1 2 0.25 5-Jun-09 0.25 0.5 1.5 0.25 6-Jun-09 0 0.5 1.5 2 9-Jun-09 0 0.25 1 1.5 Date Product& Quantity Available Colgate Adv. White Colgate Total Colgate Herbal Colgate 150gm 150gm 200 200gm Display Counter 2nd Stock out 2nd Top 28-May-09 1.5 0.5 0.25 1 29-May-09 1.5 0.5 0.25 1 2-Jun-09 1.5 0 0 0 3-Jun-09 1.5 0 0 0 5-Jun-09 1 0 0 0 6-Jun-09 1 0 1 0.5 9-Jun-09 1 0 1 0.5 PGDM 08-10-IMT-Nagpur Page 29
  30. 30. Date Product& Quantity Available Colgate Fresh Colgate Pepsodent 150 Pepsodent Germicheck 150gm 100gm gm 175 gm Display Counter 3rd 3rd Top Top 28-May-09 0.5 2 1.5 1.5 29-May-09 0.5 2 1.5 1.5 2-Jun-09 0.5 0.5 1.5 0.5 3-Jun-09 0.25 0.5 1.5 0.5 5-Jun-09 0.25 0.25 1 0.5 6-Jun-09 1 2 2.5 1.5 9-Jun-09 1 2 2.5 1.5 Date Product& Quantity Available Close up 80 Pepsodent Germicheck 175 gm Close up 80 Display Counter Top Top Top 28-May-09 1 1.5 1 29-May-09 1 1.5 1 2-Jun-09 1 0.5 1 3-Jun-09 1 0.5 1 5-Jun-09 0.5 0.5 0.5 6-Jun-09 2 1.5 2 9-Jun-09 2 1.5 2 PGDM 08-10-IMT-Nagpur Page 30
  31. 31. Hena Conditioning Active Dandruff Active Dandruff Hena Conditioning 200ml 200ml 100ml 100ml Display Counter N/A 2nd Shelf 3rd N/A 28-May-09 0 1.5 1 0 29-May-09 0 1.5 1 0 2-Jun-09 0 1 0.5 0 3-Jun-09 0 1 0.25 0 5-Jun-09 0 1 0.25 0 6-Jun-09 0 0.5 0.25 0 9-Jun-09 0 0.25 0.25 0 Head & Shoulders Head & Head & Pantene Pantene 90ml Shoulders 200ml Shoulders 400ml 400ml 200ml Display 2nd-BEST 2nd-BEST 2nd-BEST Counter DISPLAY DISPLAY DISPLAY 2nd 2nd 28-May-09 2 2 2 1 1 29-May-09 2 2 2 1 1 2-Jun-09 1.5 2 1.5 0 0.5 3-Jun-09 1.5 2 1.5 0 0.5 5-Jun-09 1 1.5 1.5 0 0.25 6-Jun-09 1 2 0 2 0 9-Jun-09 1 1.5 0 2 0 Gulucose 100gm Gulucon Guluco Vita Gulucose 500gm Display Counter Extension Counter N/A N/A N/A 28-May-09 3 0 0 0.5 29-May-09 3 0 0 0.5 2-Jun-09 3 0 0 0.25 3-Jun-09 2 0 0 0 5-Jun-09 2 0 0 0 6-Jun-09 1 0 0 0 9-Jun-09 0 0 0 0 PGDM 08-10-IMT-Nagpur Page 31
  32. 32. Dabur Amla Dabur Amla Shanti Amla 200ml Dabur Amla 300ml 100ml 500 Display Lowest-Most nd Counter 2 Hidden N/A N/A 28-May-09 0 2 0 0 29-May-09 0 2 0 0 2-Jun-09 0 1.5 0 0 3-Jun-09 0 1.5 0 0 5-Jun-09 0 1.5 0 0 6-Jun-09 0.5 1 0 0 9-Jun-09 0.5 1 0 0 Shanti Amla 300 Vatika 300ml Vatika 100 Parachute 1L Display Counter N/A Top N/A 3rd 28-May-09 0.5 1 0 1 29-May-09 0.5 1 0 1 2-Jun-09 0.25 1 0 0.5 3-Jun-09 0.25 1 0 0.5 5-Jun-09 0 1 0 0.5 6-Jun-09 0 0 0 0 9-Jun-09 0 0 0 0 Parachute 2L Parachute 100ml Parachute 200ml Parachute 500ml rd Display Counter 3 3rd N/A 3rd 28-May-09 1 0 0 1 29-May-09 1 0 0 1 2-Jun-09 0 0 0 0.5 3-Jun-09 0 0 0 0.5 5-Jun-09 0 0 0 0.25 6-Jun-09 0.25 0.5 0 0 9-Jun-09 0 0.5 0 0 PGDM 08-10-IMT-Nagpur Page 32
  33. 33. Sanifresh Sanifresh Forest Dew Harpic Display Counter Bottom-Hidden N/A Top 28-May-09 5 0 8 29-May-09 5 0 8 2-Jun-09 3 0 8 5-Jun-09 1 0 5 6-Jun-09 0.5 0 3 9-Jun-09 0 0 2 Odonil Aroma Display Counter Cornered Bottom N/A 28-May-09 1 0 29-May-09 1 0 2-Jun-09 1 0 3-Jun-09 0.25 0 5-Jun-09 0 0 6-Jun-09 0 0 9-Jun-09 0 0 Real 1ltr Real 200ml Display Counter Top-Not Properly Stacked 2nd 28-May-09 17 6 29-May-09 14 5 2-Jun-09 11 3 3-Jun-09 9 2 5-Jun-09 7 2 6-Jun-09 6 8 9-Jun-09 2 4 PGDM 08-10-IMT-Nagpur Page 33
  34. 34.  Sec 23 Coast Guard Canteen Date Product& Quantity Available Display Counter N/A Top N/A Top Red Tooth Paste 50gm Meswak 100gm Promise 200gm Babool 200gm 28-May-09 0 0.5 0 0.5 29-May-09 0 0.25 0 0.5 2-Jun-09 0 0.25 0 0.5 5-Jun-09 0 0.25 0 0.25 6-Jun-09 0 0.25 0 0.25 8-Jun-09 0 0.25 0 0.25 9-Jun-09 0 0 0 0.25 Date Product& Quantity Available Display Counter Stock Out Stock out Top 2nd Colgate Adv. White Colgate Total Colgate Herbal Colgate 150gm 150gm 200 200gm 28-May-09 1 0 1 0 29-May-09 1 0 1 0 2-Jun-09 1 0 1 0 5-Jun-09 0.5 0 0.5 0 6-Jun-09 0 0 1 0 8-Jun-09 0 0 0.5 0 9-Jun-09 0 0 0.5 0 PGDM 08-10-IMT-Nagpur Page 34
  35. 35. Date Product& Quantity Available Display Counter 2nd Top Bottom Bottom Colgate Fresh Colgate Pepsodent 150 Pepsodent Germicheck 200gm 100gm gm 175 gm 28-May-09 0 1 1 2 29-May-09 0 1 1 2 2-Jun-09 0 1 1 1.5 5-Jun-09 0 0.5 1 1.5 6-Jun-09 0.25 0.25 1 0 8-Jun-09 0 0 0 0 9-Jun-09 0 0 0 0 Hena Conditioning Active Dandruff Active Dandruff Hena Conditioning 200ml 200ml 100ml 100ml Display Counter N/A N/A 2nd 2nd 28-May-09 0 0 1 1 29-May-09 0 0 1 1 2-Jun-09 0 0 1 1 5-Jun-09 0 0 1 1 6-Jun-09 0 0 0.5 0.5 8-Jun-09 0 0 0.25 0 9-Jun-09 0 0 0.25 0 Head & Shoulders Head & Shoulders Head & Shoulders Pantene Pantene 90ml 200ml 400ml 400ml 200ml nd 2 2nd 2nd 2nd 2nd 2 0 2.5 0 3 2 0 1.5 0 2 2 0 1.5 0 2 1.5 0 1 0 1.5 1.5 0 0 0 0.5 1 0 0 0 0.25 1 0 0 0 0.25 PGDM 08-10-IMT-Nagpur Page 35
  36. 36. Gulucose 100gm Gulucon Guluco Vita Gulucose 500gm Display Counter Stock out N/A N/A N/A 28-May-09 3 0 0 0 29-May-09 1 0 0 0 2-Jun-09 0.5 0 0 0 5-Jun-09 0 0 0 0 6-Jun-09 0 0 0 0 8-Jun-09 0 0 0 0 9-Jun-09 0 0 0 0 Dabur Amla Dabur Amla Dabur Amla Shanti Amla 200ml 300ml 100ml 500 Display Counter Lowest N/A N/A N/A 28-May-09 1 0 0 0 29-May-09 1 0 0 0 2-Jun-09 1 0 0 0 5-Jun-09 1 0 0 0 6-Jun-09 0 0 0 0 8-Jun-09 0 0 0 0 9-Jun-09 0 0 0 0 Shanti Amla 300 Vatika 300ml Vatika 150 Parachute 1L Display Counter N/A 2nd 2nd Bottom 28-May-09 0 1.5 1 0.5 29-May-09 0 1.5 1 0.5 2-Jun-09 0 1.5 1 0.5 5-Jun-09 0 0 1 0.5 6-Jun-09 0 0 1.5 0 8-Jun-09 0 0 1 0.5 9-Jun-09 0 0 0.5 0 PGDM 08-10-IMT-Nagpur Page 36
  37. 37. Parachute 2L Parachute 100ml Parachute 200ml Parachute 500ml Display Counter N/A Bottom Bottom Bottom 28-May-09 0 1 1 0.5 29-May-09 0 1 1 0.5 2-Jun-09 0 1 1 0.5 5-Jun-09 0 1 1 0.5 6-Jun-09 0 1 1 0.5 8-Jun-09 0 0 0.25 0.25 9-Jun-09 0 0 0 0 Sanifresh Sanifresh Forest Dew Harpic Display Counter Stock out N/A N/A 28-May-09 0.5 0 0 29-May-09 0.5 0 0 2-Jun-09 0 0 0 5-Jun-09 0 0 0 6-Jun-09 0 0 0 8-Jun-09 0 0 0 9-Jun-09 0 0 0 Odonil Aroma Display Counter 2nd N/A 28-May-09 0.5 0 29-May-09 0.25 0 2-Jun-09 0.25 0 5-Jun-09 0 0 6-Jun-09 0 0 8-Jun-09 0 0 PGDM 08-10-IMT-Nagpur Page 37
  38. 38. Real 1ltr Real 200ml nd Display Counter 2 N/A 28-May-09 10 0 29-May-09 8 0 2-Jun-09 6 0 5-Jun-09 5 0 6-Jun-09 2 0 8-Jun-09 4 0 9-Jun-09 2 0  Sec 21 Air Force Canteen Product& Quantity Available Date Red Tooth Paste 50gm Meswak 100gm Promise 200gm Babool 200gm Display Counter N/A Lowest N/A lowest 5-Jun-09 0 1 0 2 6-Jun-09 0 1 0 1.5 8-Jun-09 0 0.5 0 0 Product& Quantity Available Date Colgate Adv. White Colgate Total Colgate Herbal Colgate 150gm 150gm 200 200gm Display Counter Lowest 2nd 2nd 2nd 5-Jun-09 2 0.5 0.25 1 6-Jun-09 1.5 0.5 0.25 1 8-Jun-09 1.5 0.5 0.5 1 PGDM 08-10-IMT-Nagpur Page 38
  39. 39. Date Product& Quantity Available Colgate Fresh 150gm Colgate 100gm nd Display Counter 2 2nd 5-Jun-09 0.5 2 6-Jun-09 0.5 2 8-Jun-09 0.5 0 Hena Conditioning Active Dandruff Active Dandruff Hena Conditioning 200ml 200ml 100ml 100ml Display Counter N/A Corner-2nd N/A N/A 5-Jun-09 0 3 0 0 6-Jun-09 0 2 0 0 8-Jun-09 0 0 0 0 Head & Head & Head & Pantene Pantene Shoulders 90ml Shoulders 200ml Shoulders 400ml 400ml 200ml Display Counter N/A 2nd-Best Display 2nd-Best Display N/A 2nd BEST 5-Jun-09 0 0.5 0.5 0 3 6-Jun-09 0 0.5 0.25 0 2 8-Jun-09 0 0 0 0 0 Gulucose 100gm Gulucon Guluco Vita Gulucose 500gm Display Counter Stock out N/A N/A N/A 5-Jun-09 3 0 0 0 6-Jun-09 2 0 0 0 8-Jun-09 2 0 0 0 PGDM 08-10-IMT-Nagpur Page 39
  40. 40. Dabur Amla Dabur Amla Dabur Amla Shanti Amla 200ml 300ml 100ml 500 Display Counter N/A 2nd N/A N/A 5-Jun-09 1 2 0 0 6-Jun-09 1 1.5 0 0 8-Jun-09 0 0 0 0 Shanti Amla 300 Vatika 300ml Vatika 150 Parachute 1L Display Counter N/A Stock out Stock out 4th 5-Jun-09 0 0 0 1 6-Jun-09 0 0 0 1 8-Jun-09 0 0 0 0.5 Parachute 2L Parachute 100ml Parachute 200ml Parachute 500ml Display Counter N/A N/A 4th 4th 5-Jun-09 0 0 1 1 6-Jun-09 0 0 0.5 0.25 8-Jun-09 0 0 0.5 0.25 Sanifresh Sanifresh Forest Dew Harpic Display Counter Stock out Top Top 5-Jun-09 0 3 12 6-Jun-09 0 2.5 11 8-Jun-09 0 2 10 Odonil Aroma Display Counter Stock out 2nd 5-Jun-09 0.5 1 6-Jun-09 0.5 1 8-Jun-09 0.25 1 PGDM 08-10-IMT-Nagpur Page 40
  41. 41. Real 1ltr Real 200ml Display Counter FLOOR 3rd 5-Jun-09 1 4 6-Jun-09 8 0 8-Jun-09 6 0 3. Display of other SKU’s report S. No Category Product Name Displayed Quantity Display Shelfs 1 HO-DIL Lal Dant Manjan 150gm 0.5 2nd Shelf-Scattered 2 HO-DIL Lal Dant Manjan 60gm 3 2nd Shelf-Scattered 3 HO-DIL Lal Tail 60ml 1 3rd 4 LS-HC Odonil Room Spray 0.5 Top-Scattered 5 LS-DIL Shudh Madhu 500gm 3 2nd 6 LS-DIL Shudh Madhu 1kg 2 2nd 7 LS-DIL Hajmola Bottle 0.25 3rd 8 LS-DIL Chyawanprakash 2 2nd 9 LS-DIL LBC 120gm 1 Top 10 LS-DIL Shilajit N/A Extension Counter 11 LS-DIL Nature Care100gm 1 Top-Corner 12 LS-DIL Nature Care 375gm 1 Top-Corner 13 LS-Foods Homemade Ginger-Garlic 0.5 Top Table 6 Sec 37 Delhi Area Station Canteen (other SKU report) S. No Category Product Name Displayed Quantity Display Shelf 1 HO-DIL Lal Dantmanjan 60 gms 1 Top 2 HO-DIL Lal Tail 0.5 2nd 3 LS-DIL Chywanprakash 1kg 1 Top 4 LS-DIL LBC 120 gms 1 2nd 5 LS-DIL Shilajit 0.5 Top 6 LS-DIL Nature Care100 1 2nd Table 7 Sec 23 Coast Guard Canteen (other SKU report) PGDM 08-10-IMT-Nagpur Page 41
  42. 42. S. No Category Product Name Displayed Quantity Display Shelf 1 HO-DIL Lal Danth Manjan 150gms 2 Top 2 HO-DIL lal Danth manjan 60gms 2 3rd 3 LS-DIL Hajmola 3 3rd 4 LS-DIL LBC 120gm 2 3rd 5 LS-DIL Shilajit 0.5 3rd 6 LS-DIL Nature care 100gm 1 Top 7 LS-DIL Nature Care 375gm 1 top Table 8 Sec 23 Coast Guard Canteen (other SKU report) 4. Merchandising report Too often when selling, brand managers are satisfied with simply getting a placement and fail to take the next step – which is to help insure successful turnover by obtaining the best possible placement. When proper merchandising techniques are applied, sales results are measurably improved. The best companies in the industry make a habit of paying attention to these important details. It is important to provide solid business reasons for getting products placed in the most advantageous positions and even then there is no guarantee of getting what we desire. Guidelines for a Good Display  Fully stacked shelves.  Neatly and systematically placed goods.  Clear line of division from other products.  No-mixing of cheap substitutes.  Accessible height. PGDM 08-10-IMT-Nagpur Page 42
  43. 43. Figure 5 Sec 37 DASC Products properly stacked Figure 6 Sec 23 Coast Guard Products properly stacked PGDM 08-10-IMT-Nagpur Page 43
  44. 44. Figure 7 Sec 23 Coast Guard Products properly stacked Causes for Improper display  Un-organized goods.  Unutilized shelf space.  No Branding.  Loosely placed goods.  No-segregation of products.  Incomplete information about the product. PGDM 08-10-IMT-Nagpur Page 44
  45. 45. Figure 8 Sec 21 Air Force Mixing of Product – Improper display Figure 9 Sec 23 Coast Guard Products not placed properly – Improper display PGDM 08-10-IMT-Nagpur Page 45
  46. 46. Figure 10 Sec 21 Air Force Products- Products placed on floor. Figure 11 Sec 21 Air Force – Shelves not fully stacked. PGDM 08-10-IMT-Nagpur Page 46
  47. 47. Display pattern used by other companies (competitive and non-competitive) Figure 12 Price tags Figure 13 External Displays PGDM 08-10-IMT-Nagpur Page 47
  48. 48. Figure 14 Product line display counters Figure 15 Hanging Advertisements PGDM 08-10-IMT-Nagpur Page 48
  49. 49. Consumer Behavior and merchandizing cases report Consumer Survey A small survey was done in response to company’s requirement regarding the customers’ perception of Dabur product in regard to marketing 5Ps. Consumer Response to Dabur's 5 Ps Consumers responses were required on a scale of 0 to 5 on following parameters. 0 being the poorest 5 being the highest. TOTAL AVG. Product 2 4 5 2 2 4 4 4 3 3 4 4 41 3.42 Price 4 3 4 3 4 4 4 5 3 4 4 2 44 3.67 Place 2 3 1 2 2 3 1 4 4 2 1 3 28 2.33 Promotion 3 4 3 2 4 4 4 3 2 4 3 3 39 3.25 Packaging 3 4 3 4 5 4 4 3 2 1 2 1 36 3.00 Merchandizing Experiments and findings Following experiments were done and certain discrepancies were found out. S. No Date Canteen Activity 1 5-Jun-09 DASC A substitute of Odonil was found mixed with the product in the same rack. The display of the substitute was made similar to the display of the odonil making it hard to differentiate in the first observation. 2 5-Jun-09 DASC Out of 50 people buying Toothpaste only 7 stopped to stare at Meswak and after looking at packing and comparing only 4 finally bought it. The people who rejected it went for Pepsodent germicheck(2) and Colgate Herbal(1) 3 5-Jun-09 DASC Out of 12 people buying Hair oil only 1 stepped to buy Dabur Amla, others went for smaller packs of other brands. 4 5-Jun-09 Air Force In random check it was found out that Sanifresh was mixed with a substitute of local brand Admiral & Colonel. 5 6-Jun-09 DASC On being placed Dabur AD shampoo along with Head & Shoulders products demand increased and the quantity of .5 cases PGDM 08-10-IMT-Nagpur Page 49
  50. 50. was sold in time period of 3 hrs. People buying Head & Shoulders started comparing Vatika Active Dandruff along with it. 6 6-Jun-09 DASC Real juices continued to be sold as earlier but with similar products like Frooti, Rasna, etc placed along is losing the vibrancy of its color. The product needs to be placed in a different area with more source of light. 7 8-Jun-09 Air Force Whole of the Shampoo & Hair oil counter was stock out leading to 2 case sale of Active dandruff 200ml & Dabur Amla 2.5 Cases in a day. 8 8-Jun-09 Coast Guard It was found out that the shelves of head & Shoulder & Colgate were once filled in the morning and in the later day they were only restacked. The stocking of the product generally took 1.5-2hrs. Later in the day the job of the merchandizing boy typically was to check whether the products are properly stacked or not. A merchandizing boy typically handles 4-5 Companies. After lunch only re-shelving was done not replenishment. Table 9 Consumer Experiments and merchandising review Understanding – Interpretations A different report gives different interpretation, but the one thing that was evident among the all, was that the Dabur had problem with its merchandizing. To understand the problem with, we first needed to assess the profile of the consumer at CSD outlets. Consumer at CSD had these characteristics.  Around 60% were females with 40+ ages.  Most of consumers at CSD didn’t want to bend down to lower counters.  Consumers have fixed budget, so they knew there budget and their requirements were already decided.  Any price increase can have a tremendous downward spiral effect on their purchase behavior.  Fully stacked counters were the first to catch eyes.  Product comparison was the least because of already abundant knowledge of the brand. PGDM 08-10-IMT-Nagpur Page 50
  51. 51. Availablity of Dabur SKU's at CSD. DAAC Air Force Coast Guard TOTAL 5th June 24 15 14 47 6th June 20 15 15 47 8th June 20 15 15 47 9th June 20 15 15 47 30 25 20 DAAC 15 Air Force 10 Coast Guard 5 0 5th June 6th June 8th June 9th June Table 10 SKU Availablity report As the month had just began and the supplies were being awaited from the Central Depot, most of the SKU’s of all the brand were going stock out. The consumer had to resort to other available brands. This shows a switching behavior. The consumer didn’t resort to external buying because of huge differences in prices. Product Category Highest Selling Fastest Selling Consistent Selling Toothpaste Colgate 100gm Colgate 100gm Colgate 100gm Shampoo Head & Shoulders 400 Pantene 200 Active Dandruff 200 Gulucose No Competition Hair Oil Dabur Amla 300ml Parachute 2L Dabur Amla 300ml Sanifresh Harpic Harpic Harpic PGDM 08-10-IMT-Nagpur Page 51
  52. 52. Odonil Odonil Odonil Odonil Juices Real has no competition Table 11 Product-Time display report Colgate was still the leader in the toothpaste segment because of its strong brand loyalty. The product use to be sold like a hot cake. The product had many SKU’s but it didn’t cannibalized its own SKU’s rather it ate the share of its competitors. Under the hair oil segment Dabur Amla was the most visible product, this can be said because of the poor packaging of its competitors and loyalty among the upper age band of the consumer. Product Category Best Display Fully Stacked Widest Display Toothpaste Pepsodent Germicheck Pepsodent Pepsodent Shampoo Head & Shoulders Pantene Head & Shoulders Gulucose Extension Counter Display Hair Oil Dabur Amla 300 Parachute 500ml Dabur Amla 300 Sanifresh Harpic Harpic Harpic Odonil Odonil N/A Juices ONLY Product Displayed Table 12 Best Display report Pepsodent Germicheck had the best display and was the most refilled and re-stacked counter, leading to clean & tidy display of the product. Head & Shoulder had the best & Consistent display among all the categories across all the CSD outlets, because of PGDM 08-10-IMT-Nagpur Page 52
  53. 53. its dedicated merchandizing workforce. The product continued to enjoy a top shelf along with proper price tags mentioned below it and hanging advertisements. 15 15 11 10 7 7 5 0 Top 2nd 3rd Stock out Table 13 Shelve Display position The display of the product is the most important criteria for sales. If a product is not properly visible, is stacked behind another product or is not at proper height then chances are high for low sales volume, until and unless followed by huge brand loyalty. Most of the products of Dabur were placed on 2nd shelf, so chances were high for their low visibility, until & unless followed by huge advertisements at CSD shelves. PGDM 08-10-IMT-Nagpur Page 53
  54. 54. 25 20 6 15 6 Improper 10 2 Normal 2 3 5 1 Good 2 13 4 6 2 0 3 Top 2nd 3rd Total Table 14 Display Quality report Among the display of the Dabur product 6 products were found to be of improperly displayed. On the further research it was found that the problem area was the merchandizing person. The person was not interested in Dabur brand. He had 4 more brands and didn’t paid any attention towards the Dabur products. Later during the research work it was found that person was going to leave the Dabur brand. These kinds of moves by merchandising staff can deeply affect the sales at CSD counters for a short period of time. Any deviation in this sort should be resorted at first go. Recommendations These can be the solutions for the above stated problem. 1. The company needs to deploy a single brand full time employ for Noida CSD only. This will increase the cost of the company, but the will tremendously increase the visual appeal of the products and consistent good display. PGDM 08-10-IMT-Nagpur Page 54
  55. 55. 2. Company should not go in contract with a third party for the merchandizing staff. As the staff deployed by them keeps on changing on short intervals and the new person might not be aware of the brand characteristics. 3. The basic criteria to get the top shelves in CSD outlets is to provide the canteens with display shelves, in return they provide a consistent top shelf for a time period. A cost evaluation of this can be done and further new shelves can be provided to CSD outlets. This also helps build relationship with the staff at the outlets. 4. A periodic review needs to be done to analyze the change the customer buying preferences at CSD. 5. A periodic review of merchandising staff needs to be done, so as to check the performance. The salary structure can be incentive based on how much care a person takes to enlist the brands at CSD. 6. Shelfs to be refilled thrice a day. 7. Hanging display boards to be placed. 8. Outside hoarding in collaboration with CSD outlet management can be provided, so as to increase the appeal of the product. The boards can be placed next to CSD outlet gates. 9. Display boards, hanging advertisements, price tags should be provided so as to provide more and more information about the product. 10. Upper shelves to be utilized more for display rather than stockings. Limitations of the study Every research work has limitations. So does this one also had. 1. Time frame PGDM 08-10-IMT-Nagpur Page 55
  56. 56. 2. The time frame setup was quite less as compared to the time period sales force devotes to merchandizing. Initial time period was involved in learning the rules and regulations of CSD outlets. Followed by merchandizing training. 3. Wide segment to cover 51 products were to be covered per canteen, totaling to 153 products in all. Maintaining a record of that data was a tedious job. Moreover, the outlets were located far off from each other, so commuting between them took time. 4. Accessibility to outlets. Accesses to outlets were governed by the permission of the store manager and any consumer activity carried out required his permission. 5. Limited scope of interaction with the consumer Time is the most valuable product for the consumer. So it was hard to convince them to talk in their precious time. 6. Stock out position The project was done in the time when most of the products were stock out at the outlet and were awaiting fresh supply from the central depot. Scope for improvement The project should be done at different intervals of the year with regular performance measurement of merchandizing staff. PGDM 08-10-IMT-Nagpur Page 56
  57. 57. Annexure Format of Consumer Survey QUESTIONNAIRE Consumer View of Dabur Name: Contact No: Would you like to be contacted by Dabur for further review? Answer the questions on a scale of 0 to 5. 0 being the poorest and 5 being the highest. 1 Kindly rate the Dabur product according to use? 0 1 2 3 4 5 2 Kindly rate the Dabur product according to Packaging? 0 1 2 3 4 5 3 Kindly rate the Dabur product according to Promotional activity? 0 1 2 3 4 5 4 How do you find the prices of Dabur, as per your reach? 0 1 2 3 4 5 5 Kindly rate Dabur product as per the placements at the counter? 0 1 2 3 4 5 Thanks for your time Official use: Date: Outlet: PGDM 08-10-IMT-Nagpur Page 57
  58. 58. Time: Consumer Type: Remark: Merchandising data collection sheets  Dabur Sheet 1 S. Display Display Category Product Remarks No Counter Quality 1 HO-DIL Amla Hair Oil 100ml 2 HO-DIL Amla Hair Oil 200ml 3 HO-DIL Amla Hair Oil 300ml 4 HO-DIL Vatika Hair Oil 150ml 5 HO-DIL Vatika Hair Oil + Scheme 6 HO-DIL Vatika Hair Oil 300ml 7 HO-DIL Vatika Hair Oil + Scheme 8 HO-DIL Vatika HC Shampoo 9 HO-DIL Vatika AD Shampoo 10 HO-DIL Vatika Smooth & Silky 200ml 11 HO-DIL Vatika DC Shampoo 200ml 12 HO-DIL Lal Danth Manjan 150gm 13 HO-DIL Lal Danth Manjan 60gm 14 HO-DIL Red Tooth Paste 50gm 15 HO-DIL Red Tooth Paste 100gm 16 HO-DIL Red Tooth Paste 200gm 17 HO-DIL Lal Tail Total 18 HO-HC Odopic Scouring Bar 400gm 19 HO-HC Odopic Scouring Bar 600gm 20 HO-HC Babool Toothpaste 200gms 21 HO-HC Promise Toothpaste 200gms 22 HO-HC Meswak Toothpaste 100gm PGDM 08-10-IMT-Nagpur Page 58
  59. 59. Total 23 LS-HC Odomos Mosq. Rep. Lotion 24 LS-HC Odomos Mosq.Rep. Cream 25 LS-HC Odonil Air Freshener 100gm 26 LS-HC Odonil Air Freshener 50 gm 27 LS-HC Odonil Room Spray 250gm Toilet Cleaner 500ml+Odonil 50 28 LS-HC gm 29 LS-HC Toilet Cleaner Sani F. Dew 500ml Total 30 LS-DIL Gulucose 100gm 31 LS-DIL Gulucose 500gm 32 LS-DIL Shudh Madhu 250gm 33 LS-DIL Shudh Madhu 500gm 34 LS-DIL Shudh Madhu 1kg 35 LS-DIL Hajmola Bottle 36 LS-DIL Pudin Hara 37 LS-DIL Dabur Chyawanprash Awaleh 1kg 38 LS-DIL Chywanprash Awaleh+ 40gm Honey 39 LS-DIL Chywanprash Awaleh 1kg Spl 40 LS-DIL Chywanprsh 500gm Spl 41 LS-DIL Lavan Bhaskar Churna 120gm 42 LS-DIL Shilajit 30caps 43 LS-DIL Nature Care 100gm 44 LS-DIL Nature Care 375gm Total 45 LS-Foods Real Orange Juice 1ltr 46 LS-Foods Real Guava 1000ml 47 LS-Foods Real Mango Nectar 200ml 48 LS-Foods Real Orange Nectar 200ml` 49 LS-Foods Real Guava 200ml 50 LS-Foods Hommade Ginger Garlic 200gms PGDM 08-10-IMT-Nagpur Page 59
  60. 60. 51 LS-Foods Hommde Tomato Pure 200gm Total  Competitor and Dabur product data sheet S. No Product Display Quantity Display Shelf Remark 1 Red Tooth Paste 50gm 2 Meswak 100gm 3 Promise 200gm 4 Babool 200gm 5 Colgate Adv. White 150gm 6 Colgate Total 150gm 7 Colgate Herbal 200 8 Colgate 200gm 9 Colgate Fresh 150gm 10 Colgate 100gm 11 Pepsodent 150 gm 12 Pepsodent Germicheck 175 gm 13 Close up 80 14 Pepsodent Germicheck 175 gm 15 Close up 80 16 Hena Conditioning 200ml 17 Active Dandruff 200ml 18 Active Dandruff 100ml 19 Hena Conditioning 100ml 20 Head & Shoulders 90ml 21 Head & Shoulders 200ml 22 Head & Shoulders 400ml 23 Pantene 400ml 24 Pantene 200ml 25 Gulucose 100gm 26 Gulucon 27 Guluco Vita PGDM 08-10-IMT-Nagpur Page 60

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