Retail audit (Synthite Industries Ltd)

A Study on Retail Audit of Brand Vieda Hair Oil in Ernakulam District
Marthoma College of Management And Technology, Perumbavoor 1
A STUDY ON RETAIL AUDIT OF BRAND VIEDA
HAIR OIL
AT
INTERGROW BRANDS PVT. LTD. (SYNTHITE
GROUP), ERNAKULAM
PROJECT REPORT
Submitted in partial fulfilment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATION
Of Mahatma Gandhi University, Kottayam
Submitted By
BASIL T JOSE
REG. NO: 84484
Under the Guidance of
MR. JIJU ALEXANDER
Asst. Professor
MARTHOMA COLLEGE OF MANAGEMENT
AND TECHNOLOGY
Asramam Campus Perumbavoor
Ernakulam, Kerala.
2016-2018

MARTHOMA COLLEGE OF
MANAGEMENT AND TECHNOLOGY
Asramam Campus, Perumbavoor
Ernakulam, Kerala.
CERTIFICATE
This is to Certify that the project, entitled “A study on retail audit of brand Vieda hair
oil” is a bonafide record of the work done by Basil T Jose, Semester IV in partial
fulfillment of the requirements for the degree of Master Of Business Administration of
Mahatma Gandhi University, Kottayam.
Dr Thomas Joseph Mr Jiju Alexander
Director/Principal Faculty Guide
Date .................. Date .................
Internal Examiner External Examiner

DECLARATION
I Basil T Jose, hereby declare that this project titled “A study on retail audit
of brand Vieda hair oil” at Intergrow brand Pvt. Ltd which I am submitting
to Mahatma Gandhi University, Kottayam is a record of original work done
by me and this has not been previously formed on the basis for the award of
any academic qualification, fellowship or other similar title of any other
university.
Place: Perumbavoor
Date : ……………… BASIL T JOSE

ACKNOWLEDGMENT
This study has been made possible due to the co-operation, assistance and constructive
suggestions of many to whom I would like to express my sincere gratitude and thanks.
First of all I thank Lord Almighty for his abundant blessings best owned up on me for
the successful completion of my project.
I gratefully acknowledge my sincere gratitude to the management of INTERGROW
BRANDS PVT LTD (Synthite Group) for giving me permission to undertake project
study in this esteemed organization.
I wish to express my gratitude to Mr Eldhose Skariah (HR manager) and Mr Nithin
Rajagopal (Marketing manager) Intergrow brands Pvt. Ltd (Synthite Group)
Ernakulam, granting me permission to do project in this esteemed organization. I would
like to express my sincere thanks to Mr Nithin Rajagopal Marketing manager for her
valuable suggestions and guidance.
I would like to extend my gratitude to our beloved Director Dr Thomas Joseph for
extending all the help for doing the project. I express my thanks to faculty guide Mr Jiju
Alexander for the support, co-operation and guidance. I hereby acknowledge the help
rendered by other members of teaching staffs and all well-wishers of mine especially
my project mates at Intergrow brands Pvt. Ltd (Synthite Group), who shared their views
and valuable suggestions. I am immensely gratefully to all the respondents for the help
and co-operation rendered to me during the study.
Also I thank my parents, friends and all the other associated with my project study for
their support and motivation in the entire course of my endeavour.
Yours Sincerely
BASIL T JOSE

CONTENTS
CHAPTER
NO.
TITLE PAGE
NO.
CHAPTER 1
1.1 INTRODUCTION
1.2 NEED FOR THE STUDY
1.3 OBJECTIVES OF STUDY
1.4 RESEARCH METHODOLOGY
1.5 LIMITATIONS OF THE STUDY
CHAPTER 2
2.1 INDUSTRY PROFILE
2.2 COMPANY PROFILE
2.3 PRODUCT PROFILE
CHAPTER 3
3.1 REVIEW OF LITERATURE
CHAPTER 4
4.1 DATA ANALYSIS AND
INTERPRETATION
CHAPTER 5
5.1 FINDINGS
5.2 SUGGESTIONS
5.3 CONCLUSION
5.4 BIBLIOGRAPHY

LIST OF TABLES
TABLE
NO. TITLE
PAGE
NO.
4.1 Types of retail stores
4.2 Product availability of Vieda
4.3 Shelf allocation of Vieda hair oil
4.4 Customer awareness about vieda hair oil
4.5 Customer enquiry of vieda hair oil in retail shops
4.6 Advertisement effectiveness of Vieda hair oil
4.7 Retailer recommending Vieda hair oil to their customers
4.8 Age group mostly prefer Vieda hair oil
4.9 Retailers response about movement of Vieda hair oil
4.9.1 Reason for non-movement of vieda hair oil
4.10 Highest selling hair oil brand in retail outlets
4.11 Average sales of vieda hair oil in retail outlet per month
4.12 Retailers response about timely distribution of Vieda hair
oil
4.13 Stock level of vieda hair oil on store shelves
4.14 Product placement of Vieda hair oil in retail stores
4.15 Retailers response about display of promotional materials
4.16 Retailers response about in-store promotion by competitors
4.17 Important parameters retailers look while selling a brand
4.18 Rating given by retailers about branding activities of vieda
4.19 Retailers response about arrival of company representative
4.20 Analyzing shelf tag presence in retail shops
4.21 Retailers response about competitor pricing strategy
4.22 Rating given by retailers about packaging of vieda hair oil
4.23 Retailers opinion about customer review of vieda hair oil

LIST OF CHARTS
TABLE
NO. TITLE
PAGE
NO.
4.1 Types of retail stores
4.2 Product availability of Vieda
4.3 Shelf allocation of Vieda hair oil
4.4 Customer awareness about vieda hair oil
4.5 Customer enquiry of vieda hair oil in retail shops
4.6 Advertisement effectiveness of Vieda hair oil
4.7 Retailer recommending Vieda hair oil to their customers
4.8 Age group mostly prefer Vieda hair oil
4.9 Retailers response about movement of Vieda hair oil
4.9.1 Reason for non-movement of vieda hair oil
4.10 Highest selling hair oil brand in retail outlets
4.11 Average sales of vieda hair oil in retail outlet per month
4.12 Retailers response about timely distribution of Vieda hair
oil
4.13 Stock level of vieda hair oil on store shelves
4.14 Product placement of Vieda hair oil in retail stores
4.15 Retailers response about display of promotional materials
4.16 Retailers response about in-store promotion by competitors
4.17 Important parameters retailers look while selling a brand
4.18 Rating given by retailers about branding activities of vieda
4.19 Retailers response about arrival of company representative
4.20 Analyzing shelf tag presence in retail shops
4.21 Retailers response about competitor pricing strategy
4.22 Rating given by retailers about packaging of vieda hair oil
4.23 Retailers opinion about customer review of vieda hair oil

CHAPTER-1
1.1 Introduction
1.2 Need for the study
1.3 Objectives of the study
1.4 Scope of the study
1.5 Research Methodology
1.6 Limitations of the study

1.1 Introduction to the Study
The project work entitled “a study on Retail Audit of brand Vieda hair oil in Ernakulam
District” the brand Vieda and Nuvo is manufactured and marketed by Intergrow brand
Pvt. Ltd. it is 100% subsidiary of Synthite group. This study is basically to understand the
overall performance of brand Vieda hair oil in retail outlets. Retail audit helps to gather
information on brand's sales volume, sales trends, stock levels, effectiveness of in-store
display, evaluate the competition, getting real time data and improving performance
trends. Retail audit is a study of a selected sample of retail outlets, provided as
subscription-based service by market research firms.
A retail audit should be carried out at real time because it gives an accurate picture of the
events at a retail shop and helps to carry out corrective or improving measures at that
time. In-store merchandising constitutes an important part of retail audit. As it is through
the placement of products at a particular place we can increase the effectiveness and
increasing the sales of the particular merchandise.
The benefits of conducting retail audits are twofold. On the one hand, they serve as a tool
for suppliers to ensure that retailers are complying with pre-established agreements on
product placement, pricing, and promotion. On the other hand, they allow brands to
accurately measure their success in the retail environment. Retail Audits are typically
performed on a periodic basis to make sure that the product is consistently available and
managed well on the retail shelf and retail audits is the best way for a merchandiser to
capture critical field data that affects the health of their company and its products.
This study will help as to understand the overall performance of brand Vieda hair oil in
retail outlets. Descriptive research is been used for the study and the study was decided
based on convenience sampling method. The responses were recorded by conducting a
survey with the help of questionnaire. The questionnaire has been designed in such a way
as to bring out the most accurate data, which will enable the study to get the closest
vicinity of its objectives. The data collected from the survey has been appropriately
analysed and has been interpreted in a meaningful way to offer some suggestions and
recommendations.

1.2 Need for the Study
The purpose of the study is to know the market movement of Vieda hair oil identify the
competitors, analyses the promotion efficiency and effectiveness and also check the stock
level of vieda products in retail outlets. A retail audit should be carried out at real time
because it gives an accurate picture of the events at a retail shop and helps to carry out
corrective or improving measures at that time.
By conducting the retail audit we can understand the product availability, display
visibility, product demand profile, product selling condition, sales team performance and
retailers feedback.
1.3 Objectives of the Study
Primary objective
 To conduct the retail audit of brand Vieda hair oil in retail outlets of
Ernakulam district.
Secondary objective
 To analyze the promotional effectiveness of Vieda hair oil in retail outlets.
 To find out the effectiveness of distribution channels among the retailers.
 To know the opinion about branding of Vieda hair oil by the retailers.
1.4 Scope of the Study
The research study entitled “A Study on Retail Audit of the brand Vieda hair oil”. This
study is conducted among the retail outlets in Ernakulam urban and semi urban areas.
This study helps to understand the product availability, display visibility, product demand
profile, and sales team performance and retailers feedback. Retail audits are typically
performed on a periodic basis to make sure that the product is consistently available and
managed well on the retail shelf. Retail audit is a tool for suppliers to ensure that retailers
are complying with pre-established agreements on product placement, pricing, and
promotion. On the other hand, they allow brands to accurately measure their success in
the retail environment.

1.5 Research Methodology
Research is the common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
In fact, research is an art of scientific investigation. The advanced learner's Dictionary of
current English lays down the meaning of research is "a careful investigation of inquiry
especially through search for new facts in any branch of knowledge". Some people
consider research as a movement from known to the unknown. It is actually a voyage of
discovery. Research is an academic activity and as such the term should be used in a
technical sense.
According to Clifford woody, research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions and at last carefully testing the conclusion to
determine whether they fit the formulating hypothesis. A research is "the manipulation of
things, concepts or symbols for the purpose of generalizing to extend, correct or verity
knowledge, whether that knowledge aids in construction of theory or in the practice of an
art".
Research Methodology is a way to scientifically solve the research problem. It may be
understood as a science of studying how research is done scientifically. Research
methodology is the backbone of any research. Research Methodology provides various
steps that are generally adopted by a researcher in studying his research problem along
with the logic behind them. Researcher needs to understand the assumptions underlying
various techniques and procedures will be applicable to certain problems and others will
not. All this means that it is necessary for the researcher to design his methodology for his
problem as the same may differ from problem to problem. Research has it special
significance in solving various operational and planning problems of business and
industry. The research methodology has many dimensions and research methods do
constitute a part of the research methodology.
The purpose of a research is to discover answer to questions through the application of
scientific procedure. The main aim of the research is to find out the truth which is hidden
and which has not been discovered as yet.

1.5.1 Research Design
A research design is the arrangement of conditions for collection of data in a manner that
aims to combine relevance to the research purpose with economy in process.
Questionnaire survey is the method adopted for conducting this study along with other
tools and techniques such as personal interviews, market study, situation analysis,
conversations, opinion survey, technical advice etc. Based on the above, primary and
secondary data were collected, tabulated and analyzed to reach the conclusions. Personal
interview along with questionnaire survey were conducted to achieve the unbiased first-
hand information.
According to Kerlinger (1986), „a research design is a plan, structure and strategy of
investigation so conceived as to obtain answers to research questions or problem. The
plan is the complete scheme or program of the research. It includes an outline of what the
investigator would do from writing the hypothesis and their operational implications to
the final analysis of the research.
1.5.2 Descriptive research design:
Descriptive design is a sound basis for making predictions pertaining to the specific
marketing practices, which is a part of the conclusive research. Its main aim is to collect
data with a definite purpose, which makes the facts practical and valuable.
1.5.3 Sampling
Sampling is a process used in statistical analysis in which a predetermined number of
observations are taken from a larger population.
1.5.3.1 Sampling method
Sampling method was used to collect the data for this study; the respondents were
selected using convenience sampling. Convenience sampling refers to the non-probability
process by which a scientist gathers statistical data from the population.
1.5.3.2 Sampling size
Samples are taken from the retail shops in Ernakulam urban and semi urban areas for the
research, 150 samples are taken.

1.5.3.3 Sampling Technique
The respondents were selected by using non probability convenient sampling from the
selected retail stores like convenience store, supermarket and hypermarket in Ernakulam
urban and semi urban areas.
1.5.4 Sources of data
The descriptive research data would collected by primary and secondary data sources.
 Primary data
It is the first hand information, which is being collected by the researcher is called
primary data. It is collected through a well-structured questionnaire. The data are attained
for this project through direct interview method and survey method.
 Secondary data
Secondary data already exists since it has been collected for other purposes. It is
conducted on data published previously and usually by someone else. The secondary data
are collected from company websites, books, related information from net, from the
library to facilitate proper understating of the study.
1.5.5 Tools used for Data Collection
Questionnaire was the main tool for collecting the data. The questionnaire has only
relevant questions to ensure in achieving the research objectives. A questionnaire is a
research instrument consisting of a series of questions and other prompts for the purpose
of gathering information from respondents.
1.5.6 Data Analysis
The data collected from the primary source through the questionnaire and arranged
sequentially and tabulated in the systematic order.
1.5.7 Tools used for data analysis
The primary data are collected through questionnaire and it presented in tables. In order to
analysis and interpretation of the data simple statistical tool selected that is Percentage
analysis. In addition, Microsoft excel was also used for preparing charts.

1.5.8 Percentage analysis
Percentage refers to special kind of ratio. The percentage is used in making comparison
between two or more series of data. Percentage is used to describe relationships.
Percentage can also use to compare the relative terms the distribution of two or more
series of data. The easy and simplicity of calculation and the universal applicability of the
present static have made it most standardized tool in researchers. The percentage analysis
is conducted by dividing number of respondent with total population of sample.
Percentage analysis formula
Percentage = No. of Respondents x 100
Total No. of Respondents
1.6 Limitations of the Study
Although full efforts have made in the study it suffers from the following limitations,
 Some shoppers did not cooperate and disclosed the complete detail.
 The respondents may be biased which could affect the reliability of study.
 This study may not be applicable over a period of time.
 Respondents were busy with their work schedule and were not interested in
responding.

CHAPTER – II
GENERAL INFORMATION
2.1 Industry profile
2.2 Company profile
2.3 Product Profile

2.1 Industry Profile
2.1.1 Personal Care Industry Overview
Personal care products are items that are used to maintain or increase one‟s physical
appearance and personal hygiene. People have wanted to look and feel attractive since the
earliest days of civilization. Many ancient societies stressed the importance of personal
hygiene. For example, Hindu texts, such as the Vishnu Purana and the Manusmriti had
detailed codes of hygiene. Archaeologists have found evidence of the use of cosmetics as
far back as ancient Egypt and Greece.
The personal care products industry aims to help people look better and feel better about
themselves. It creates, manufactures, and sells personal care, beauty, and hygiene
products. Examples include cosmetics, toothpastes, sunscreen, razors, shaving cream,
deodorant, soaps and other products for bathing, hair care products like hair oil,
shampoos, skin care products, nail and cuticle care products, and many other items.
The personal-care industry is a massive field. Worldwide, it generates more than $250
billion in annual retail sales, according to the Personal Care Products Council, a trade
association for the cosmetics and personal-care products industry that has more than 600
member companies. As of 2016, the United States is the largest consumer of personal care
products with China and the United Kingdom following in second and third place. In the
U.S. the personal care products industry accounts for almost $237 billion toward the
national gross domestic product (GDP) and employs or supports 3.6 million workers,
generating more than $140 billion in wages.
There are approximately 3,400 cosmetic and beauty products manufacturers in the United
States, according to research group IBISWorld. They are located in every state and
throughout the world. Companies range from multinational corporations to small firms
with fewer than 100 employees. Well-known makers of cosmetics and personal-care
products include Procter & Gamble, Johnson & Johnson, Revlon, Unilever, Avon,
L‟Oréal, and the Colgate-Palmolive Company. The industry has close relationships with
other industries, including transportation, packaging, and chemicals and petroleum.

Which provide many of the raw materials, such as propylene glycol, that are used to make
personal-care products, retail stores, which sell personal care products, are located nearly
town and city. Substantial amounts of personal care products also sold online.
 Makeup, deodorant and nail products comprise 33% of health and beauty care
industry revenue.
 Hair care products generate 25% 0f personal care product revenue, while creams
and lotions create 21%
 Perfumes, mouthwashes, shaving preparations and other products make up the
remaining revenue for beauty skin care product revenues.
2.1.2 Global Personal Care Market: Overview
The personal care industry is the one which produces consumer products that are used for
beautification and personal hygiene. The subsectors of personal care comprise cosmetics
and personal hygiene. The segment of personal care products includes skin care, hair care,
personal hygiene, oral hygiene, deodorants, fragrances, shower and bath, and make-
up. Some of the products that are included in personal care are toothpaste, talcum
powder, moisturizer, shaving cream, perfumes, makeup, lipstick, eye liner and hair oil.
The global market for personal care is extremely diversified and can be bifurcated into
personal care products and personal care appliances. The global market for personal care
products is expected to increase between 3.5 and 4.5 percent over the next five years, with
a total market value of US$500 billion by 2020. The market or product ingredients will
likely grow even faster over most of the same forecast period. Valued at US$7.46 billion
in 2014, the ingredients market is expected to reach US$11.76 billion by 2023,
representing a CAGR 5.2 percent.
Skin care is the major application for personal care products and accounts for a quarter of
sales. The largest segment for ingredients is surfactants, agents that increase a liquid‟s
wetting and spreading properties. On the basis of chemical properties, the active
ingredients segment shows the strongest growth. While the personal care products
segment for women is a prominent category, the introduction of the men‟s product line for
grooming has bolstered the growth of the market extensively.

Moreover, the development of improvised and innovative products in the women‟s line
such as multifunctional products is expected to trigger the sales of personal care products
in the coming years. In order to cater to specific customer needs, manufacturers have
flooded the market with specific hair and skin products. The market is also expected to be
benefitted by the promotional offers, advertising, and media penetration. In emerging
economies, facets such as growing spending power of consumers, abundance of
international brands and rapid urbanization is likely to help in the growth of the market in
the near future.
The global market for personal care can be segmented into North America, Asia Pacific,
Europe, and the Rest of the World. Asia Pacific is likely to emerge as a prominent region
in the market with the changing lifestyle of consumers and incessantly growing
population. North America and Europe are also likely to provide lucrative growth
opportunities.
2.1.2.1 Global Hair Care Market
The global hair care market has shown a substantial growth in the recent year. Hair care
products are formulated to help nourish hair and prevent hair damage resulting from
pollution, dryness, and other factors. The hair care market comprises thousands of
products, each claiming to have unique properties. The global hair care market today is
worth well over US$ 75 billion. One of the most important factors enhancing growth in
personal care adoption is the rapid rate of urbanization across the Asian and other
developing markets, holder of the mass of the global population. A good presentation is
said to be associated with competitiveness at work, and a number of studies suggest that
good looking people are increasingly favoured in employment, academics, and general
perception. This explains the massive growth in demand for hair care in emerging
markets, and high level of innovation and R&D in saturated markets like that of Europe,
North America, and others.
North America is anticipated to be the dominating player in the global hair care market.
This trend is anticipated to be followed by Europe majorly owing to rising hair concerns,
novel hair care products in the market, and growing organic and natural hair care products
demand in these regions.

The Asia Pacific is anticipated to see significant growth in future owing to developing the
economy, enhancements in the standard of living, growing hair care products awareness,
and rising hair concerns as a result of climatic and seasonal factors as well as unhealthy
lifestyle. Additionally, the presence of various manufacturers all around the world and the
efforts taken by these players in order to come up with several hair care products types so
as to meet consumers need is an important factor boosting the global hair care market
growth specifically in the emerging countries including the US, Canada, and the UK.
2.1.2.2 Global Natural Personal Care Market
Globally the market for natural personal care product is valued at $6.5 billion. The natural
personal care market is growing five times faster than overall personal care market
worldwide bio-degradability of personal care product is growing in importance. The
upward trend in natural personal care and home care products is carried forward from
natural food products. The belief of consumers is that natural product will not harm them
as there are no chemicals. Growth for natural personal care and home care products
globally is due to increasing attitude in favour of health and wellness, environmental
sensitivity as well as product availability.
The term „Natural‟ is still ambiguous globally. The International association of Natural
products producer had been working on it for the past 16 months and yet to come out with
a final definition. It had been variously defined as products that contain natural
ingredients derived naturally or contain certain percentage of natural materials. The
difference between organic and natural are sometimes confused. Natural products are not
necessarily organic but are composed of plant-based material lightly modified and
produced in environment-friendly way. Simple natural products tend to be less expensive
than organic cosmetics; therefore, more attractive to consumers, who might have trouble
to distinguish the difference between organic and natural. Commercially in India organic
is the term used for food category. The terms Herbal are used for personal care and home
care products. All convey same meaning it has no chemicals or very less chemicals and
contains no harmful ingredients. These products may be made of Natural ingredients or
herbal ingredients. Globally, the demand for Natural, Organic and Ayurvedic products is
on a continuous raised.

2.1.3 Indian Personal Care Industry
The size of Indian cosmetics industry globally is $274 billion while that of Indian
cosmetics Industry is $4.6 billion. According to CII (Confederation of Indian Industry)
total Indian beauty and cosmetic market size at present stands as US$950 million and
growing between 15% and 20% per annum. According to industry, a rapid growth of 17%
is expected during 2010-2013. According to CII (Confederation of Indian Industry)
overall beauty and wellness market including beauty services stands at US $ 2,680
million. India‟s personal care industry is composed of hair care, bath products, skin care
and cosmetics, and oral care. The sector is driven by rising income, rapid urbanization,
and celebrity promotions. This industry accounts for 22% of the country‟s Fast-Moving
Consumer Goods (FMCG), which is the term for consumer packaged goods in India.
Foreign direct investment in this sector totalled $691 million in 2014.
Hair care is a main category of this industry. A study by Nielson, a market research firm,
determined that shampoo is the most popular FMCG product in India. The $818 million
shampoo segment is dominated by Hindustan Unilever Ltd., owned by U.K.-based
Unilever. Its most popular brands are Sun silk, Clear, and Clinic Plus. Hair oil is another
important product, valued at $1.3 billion annually. India-based Marico‟s Parachute and
Dabur are leaders in the production of branded coconut hair oil. Estimated at $1 billion,
the soap and bath category is significant. Soap is a prevalent product found in more than
90% of Indian households. The most common brands include Godrej‟s Cinthol, Reckitt
Benckiser‟s Dettol, Wipro‟s Santoor, and Unilever‟s Lux, Dove, Hamam, and Lifebuoy.
For men, shaving cream and razors are important personal care items. Procter & Gamble‟s
Gillette is the most popular shaving cream and razor brand in India.
Within the cosmetics category, India‟s most prevalent products are skin creams, lotions,
whitening creams, and makeup. Hindustan Unilever has three brands that are popular
among Indian women Fair & Lovely, Lakme, and Ponds. Fair & Lovely was the world‟s
first skin lightening cream and is the company‟s leading skin care brand. Colgate
Palmolive‟s Charmis moisturizer is also prominent. The majority of the demand for
cosmetics comes from working men and women.

2.1.3.1 Hair Oil Market in India
Indian hare care market is mainly dominated by the hair oil segment, which constitutes
over half of the overall market. Coconut oil comprises the main segments of hair oil
market. The buying pattern in this category is rapidly changing as younger generation
looks towards having a product which caters not only to their styling but also to their
specific needs. In country like India where the hair care market is growing at a rapid pace,
various type of hair oils are being launched it becomes important for both store and
company to understand the shopper preferences. Value-added hair oils are hair oils that
are specially designed to provide extra care for hair. They are mainly used for hair-related
problems such as hair fall and damage caused by factors such as hair coloring. They are
premium products and highly priced. They are gaining high popularity because of the
benefits they offer through the inclusion of natural ingredients in the formulation. The
demand for value-added hair oils is mainly witnessed in professional centers such as
beauty salons, spas, and beauty parlors.
Hair Care industry within the FMCG personal care segment continues to do well over
some time now. Of the estimated Rs 1, 611 billion FMCG market in India, hair care
products make up approximately 8%, of the total according the Nielsen Retail Audit
Report. Out of the above hair-care industry hair oils commands close to 50% of the hair
care market in India. As per industry estimates hair oil market size in India is pegged at
around Rs 8,000 crore with coconut-based oils accounting for 46 per cent. Non coconut or
perfumed oil segment has a market size of Rs 4,283 crore.
Major companies such as Hindustan Unilever, Marico, Dabur, Emami, P&G and Bajaj
comete fiercely in the Indian market. With hair oil having one of the highest market
penetrations at 90%, most companies had been playing to their strengths so far. While
coconut-based oils were dominated by Marico's Parachute, Bajaj and Dabur are
traditionally focused on almond and amla, respectively. Hair oiling is a traditional habit
of Indians. Hair oil is primarily used as pre-wash nourishment. Some people also use hair
oil after bath as a conditioner. Hair oil is perceived to provide benefits of nourishment,
strengthening hair, faster and better growth and reducing the problem of falling hair.
Some consumers perceive that massaging hair oil has a cooling impact on the head.

2.1.3.2 Indian Personal Care Industry Challenges
India is one of the fastest growing consumer markets globally, with the transition from an
unorganized market to an organized retail marketplace being witnessed across major
Indian cities. Cosmetics and personal care industry is one the fastest growing consumer
products sector with huge growth opportunities for international companies. The personal
care, cosmeceutical and cosmetics industry in India has shown consistent robust growth
over the last few years.
The personal care and home care segment is driven by rise in disposable income of
consumers in India this had resulted in consumers giving importance to enhancement of
personality. Rural market growth provided opportunity to purchase personal care products
in rural areas. Organized retail has expanded in India in recent times leading to more
exposure to products by display, thus increasing awareness and attracting attention of
consumers. The challenge for the industry is that consumers are well informed about the
products; the use of harmful ingredients is affecting the sales of the product. Packaging is
a major tool that attracts customers in retail display. This leads to increase in cost
affecting the competitiveness of manufacturers.
Pricing
Manufacturers and retailers are constraining the sales growth by setting a price war and
consistently offering price discounts, leaving small companies in an unfavourable position
to maintain their revenues.
Highly competitive market
In matters of size, brand variety, international establishment, the industry has encountered
saturation. Growth margin will decrease as the same big players try to gain in market
share.
Move towards Digital Marketing
The emergency of e-commerce sites and the migration of the customers to online
platforms force the industry to adapt their marketing campaigns to retain their customers.

2.1.3.3 Natural Personal Care Market-Indian Scenario
India is known to have a long heritage of personal care products, beauty products and
cosmetics, as well as aesthetic makeup products. Green has always been in India as it is
always known for its Ayurvedic heritage and there is emphasis on using natural products
and herbs for beauty care. Traditional home beauty regimens have been passed through
generations but it was in mid-1990s when consumer buying capacity increased they got
involved in purchase of packaged beauty products that were not necessarily nature based,
this spread from cities to smaller towns but in rural areas packaged products were
supplemented with natural recipes. Based on their culture Indian consumers never
supported imported products or Indian products with synthetic ingredients.
This scenario is changing again as there has been a movement among elite and mid-range
buyers to seek for beauty care products that are made from natural ingredients and fewer
preservatives. This is due to availability of more information as well as consumer concern
for chemicals used in personal care and their harmful effect on health and environment.
There is growing awareness among young Indians about their well-being and beauty. This
had translated into market opportunity for natural personal care and home care brands.
Indian natural beauty brands are building brand awareness through new updated formulas,
innovative package design and new campaigns.
The natural segment in India's personal care market is growing at 6.6 per cent and is
estimated to be Rs 18,500 crore in 2016, stated the Nielsen report 'But Naturally‟ going
back to natural in India's personal care segment'. The natural segment of personal care is
growing at almost 1.7 times that of overall personal care and the value growth of the
natural segment is racing ahead at almost 2.2 times that of non-naturals, it added. The
report noted that hair oil is a leading category in the natural personal care space,
constituting 34 percent of the market, followed by toilet soaps (30 percent), face care (13
percent), toothpaste (11 percent), shampoo (7 percent) and hand and body (5 percent).
According to the report, South, Maharashtra, Madhya Pradesh and Punjab are the primary
markets for natural segment in India.

2.1.4 Hair Oil Categories
The light hair oil segment has experienced significant growth in recent years as
consumers opt for lighter, more modern hair oil products. The light hair oil segment
recorded sales of Rs.6828 million in 2009 according to the Nielsen retail audit report.
Light hair oil is an urban dominated segment primarily due to its comparatively high cost
& is more geographically concentrated, in the northern states of Punjab, Delhi and
Rajasthan, due to higher disposable incomes and the propensity of consumers to try new
products.
The heavy amla hair oil segment has seen strong growth in recent years. The heavy amla
hair oil market is primarily an urban driven market and tends to be geographically
concentrated in the northern parts of the country. The heavy amla hair oil segment
recorded sales of Rs.7, 370 million in FY 2009-10, representing a growth rate of 4.7%
from FY 2008-09, according to the Nielsen retail audit report.
Cooling Oils have emerged as an important segment in the Indian hair oil market.
Cooling oils are hair oils meant for cooling the scalp during the harsh summer months.
The ingredients in the cooling oils cause immediate relief by cooling the scalp. The
CAGR of the category has been 20% over the last 5 years. The cooling oil category is
now nearly Rs. 7,000 million in the financial year ended March 31, 2010.
Among all, light hair oil is the fastest growing segment with a CAGR (Compound Annual
Growth Rate) of 25 per cent in the last 5 years where as the overall hair oil market has
grown by 19 percent over the same period. Around 40 percent of the light hair oil sale
comes from the rural market, as per Nielsen retail audit report 2013.
India truly natural products account for about one-third of total market and ranks second
in the region behind China in terms of overall natural growth. Factors that drive growth in
the segment are competitive pricing of domestic brands and a strong belief among
consumers in the medicinal properties of ayurvedic formulations. Moreover hair oil
market is facing a tough fight from more sophisticated shampoos and non-oil hair care
products. To fight these substitutes, hair-oil companies have come out with light-hair oils
like olive oil and they are doing very well.

2.1.5 Future Scope and Market of Personal Care Industry
An upcoming class in this market is the herbal sector. In past few years, herbal care
products have also witnessed increase in demand due to increasing consumer awareness
about the ill effects of harsh chemicals and substances used by the companies, and the
benefits of natural products, and education about their active ingredients. Major markets
for hair care and colour will be in the high growth Asian, European, American and Latin
American markets. Due to increasing demand for various hair services like hair spa, hair
care treatments are some of the other factors augmenting the demand for hair care
products.
As Indian consumers are shifting their focus towards their personal grooming, they have
become choosy about the selection of their products as well. This shift in preferences
from the consumers has given a sudden boost to Natural personal care products market in
the country, grabbing attention of various existing, upcoming and even international
players in the segment. Natural and organic products are produced without addition of any
synthetic material or chemicals. Increased health awareness amongst the global
population has become a primary factor driving demand for natural as well as organic
products in the personal care products market. Rising demand for chemical-free personal
care products, along with increasing disposable income, and improving standards of living
in developed and developing economies is fuelling demand for natural and organic
personal care products. Also, consumer demand is rapidly shifting towards natural and
organic products due to stringent government regulations and policies against the use of
chemicals and growing environmental safety concerns globally.
Indeed, the beauty business in India is not only booming, but is expected to triple in the
next five years. The herbal beauty business will continue to drive the growth of the beauty
industry in India in 2018. Today awareness of beauty products and treatments is at an all
times high in India. There is greater awareness of the ingredients in products and
customers make choices based on this knowledge. This is attributed to exposure to global
trends, rising disposable incomes, changing lifestyles, increasing number of women in the
work force and so on. The retail sector is also booming. No wonder foreign companies are
targeting the Indian market.

Similarly, as per the latest research report of RNCOS Business Consulting Service firm,
the Indian hair care market which includes niche segments like hair oil, shampoo, and hair
gel have witnessed an unprecedented growth in the sales. The share of hair care market is
the maximum in cosmetic industry, with hair oil being the dominant segment as there is a
surge in the Indian market with the variants in the segment like perfume oil, light oil, and
many more. In future, although hair oil is expected to remain the leading market, but hair
colour will attain the fastest growth rate in the segment. It is estimated that the hair oil
market in India will cross Rs 100 billion-mark in future.
The Indian Hair Care Market Forecast to 2015 report of the consulting firm says that the
increasing desire to look presentable and stylish is driving the market. It is expected that
the market will maintain its growth pace by launching new and innovative products, and
thus, it holds promising prospects for both existing and new players which largely
includes international players like L‟Oreal India, Wella Professional, P&G, of course
apart from leading Indian companies like Hindustan Unilever, Marico, Dabur and Godrej,
to name a few biggies.
Globally, the demand for Ayurvedic products is on a continuous rise, which has led to the
emergence of Ayurvedic centres in the U.S. and Europe. Within the Asia-Pacific region,
India has attained global prominence for its wide Ayurvedic product range, thereby
becoming a preferred destination for medical tourism. The world Ayurvedic health and
personal care products market is segmented based on product type, healthcare products
and Ayurvedic personal care products. Personal care products comprise hair care, skin
care, oral care, and baby care products. The major players in ayurvedic product segments
are Dabur India Ltd., The Himalaya Drug Company, Herbal Hills, Biobaxy Technologies
India, and Planet Ayurveda.
Branding is becoming more and more important. So is brand identity. Beauty companies
have to strive for better quality and also keep up with the demand for different products.
An important feature is the tremendous growth of e-commerce, with online stores also
becoming popular shopping destinations, especially for cosmetic products. The internet
has changed the way we do business. It is estimated that India will be the fastest growing
e-commerce market.

2.1.6 New Product Launches In 2016-2017 the Natural, Herbal and
Ayurvedic Trends
The natural, herbal and Ayurvedic trends continued to stay strong in India during 2016.
The major players in the beauty and personal care market launched products on the
natural platform to tap into this growing trend. Some of the notable new product launches
witnessed in 2016 on the natural platform included Godrej No 1 Germ Protection Bar
Soap, Dove Elixir Nourished Shine Hair Oil with Hibiscus & Argan Oil, Forest Essentials
Amla, Colgate Sensitive Clove toothpaste, Colgate Cibaca Vedshakti toothpaste and
Patanjali‟s Saundarya Aloe Vera Gel with Kesar Chandan.
HUL has been on a naturals blitz to claim a greater share of this market. In February
2017, it re-launched the master brand Lever Ayush (which consists of a wide range of
products, including toothpaste, soap, hand wash, shampoo and face wash) in five south
Indian states. It has leveraged the acquisition of Indulekha to transform it from a distinctly
Kerala entity into a national brand.
In the year 2016-2017 Patanjali is leading the ayurveda and naturals bandwagon, having
already forayed into categories such as cosmetics and personal care, while other segments
like beverages and dairy are being built up in toothpaste.
Finally the Synthite industries introduced new brand Vieda hair oil (Vieda Kachiya Enna
and Nuvo hair oil) this trend was seen across various beauty and personal care product
categories during the year and is expected to continue over the coming years. For years,
Synthite has been the world‟s largest value-added natural ingredient company with a soul
rooted in conscious living. Value-added hair oils are hair oils that are specially designed
to provide extra care for hair. They are mainly used for hair-related problems such as hair
fall and damage caused by factors such as hair coloring. They are premium products and
highly priced. They are gaining high popularity because of the benefits they offer through
the inclusion of natural ingredients in the formulation. The demand for value-added hair
oils is mainly witnessed in professional centers such as beauty salons, spas, and beauty
parlors.

2.1.7 List of Top Personal Care Brands in Indian
To meet the daily requirements of the huge population of the country, many national as
well as multi-national companies are involved in the manufacturing and marketing of
varied personal care products. They contend each other to provide the best quality
products to their customers at an affordable price. Following are some of the best
cosmetic brands in India, which are being widely used by people:
 Hindustan Unilever Limited
Headquartered in the city of Mumbai, HUL or Hindustan Unilever Limited is the
manufacturer of personal care goods like soaps, detergents, cosmetics etc. Hindustan
Unilever has three brands that are popular among Indian women Fair & Lovely, Lakme,
and Ponds. Fair & Lovely was the world‟s first skin lightening cream and is the
company‟s leading skin care brand. Some of the mostly used products of one of India‟s
biggest exporter are Lakme beauty care products, Lux, Lifebuoy and Surf Excel.
 Marico
This Mumbai based company has got many personal care brands, which are quite famous
in India. Some of the popular personal care products manufactured by them are Aromatic,
Hair & Care, Kaya, Mediker, Nihar, Parachute, Revive etc.
 Bajaj Corp.
Bajaj Corp Ltd is one of India‟s leading FMCG Company with major brands in Hair care
category. Brahmi Amla Hair oil is one of the brands with longest heritage in India from
the house of Bajaj and has been a leading player in the Amla market for over 75 years.
 Dabur India Limited
Dabur Amla Hair Oil is India‟s trusted hair oil. It contains the natural goodness of Amla
(Indian gooseberry). Dabur Amla Hair Oil is today the largest hair oil brand in the country
with over 35 million consumers. Aster hair oil brands are Dabur- Ayurvedic healthcare
products & Vatika – Premium hair care.

 Colgate Palmolive India
Based in Mumbai, this personal care brand manufactures products like toothbrushes,
toothpastes, tooth whitener, shower gel, fluoride therapy and varied other products for the
treatment of skin as well as mouth ulcers.
 ITC Limited
Based in Kolkata, one of the major metropolitan cities of the country, this Indian
conglomerate has been growing rapidly in the national market of personal care products.
Manufacturing of varied kinds of personal care goods is a part of their business though.
The name of this company features in the Forbes 2000 list.
 Godrej Consumer Products Limited
Godrej is known for several types of personal care items like hair colour, toilet soaps,
liquid detergents etc. Godrej operates mainly from Mumbai. They manufacture soaps on
contract as well. To name a few of their popular brands are Cinthol.
 Procter and Gamble
This is one of the top most personal care brands in India. With a huge array of personal
care goods, Procter and Gamble provides a huge array of personal care goods, among
which a customer can easily choose his or her required products. Gillette is one of the
well-known brands of this company that has got products like razors and numerous other
kinds of products related to personal hygiene. To name a few more products of this
company are Ariel, Head & Shoulders, Tide, Pantene, Vicks etc.
 Johnson and Johnson
American company is known for manufacturing different kinds of baby care products.
Being a pharmaceutical company, Johnson and Johnson even manufactures several types
of medical goods and devices. This top most reputed manufacturer of personal care
products in the world is famous for manufacturing products like baby powders, face
washes, cream, oil, shampoo and other personal care as well as baby care products.

2.2 Company Profile
2.2.1 Synthite Industries Ltd.
Synthite Industries Ltd. (Synthite) is an Indian oleoresin extraction firm, supplying
ingredients to the major food, fragrance and flavour houses. The company is based in
Kochi. Synthite is the world‟s largest value-added natural ingredient company with a soul.
Synthite is all about mindfully living helping people make conscious choices to live a far
superior life in terms of quality. Synthite‟s aim has always been to develop innovative and
natural products. Synthite believes in a perfect blend of traditional wisdom from around
the world with the most scientific techniques.
Synthite is the world‟s largest exporters and manufacturers of spice oleoresins, essential
oils, food colours and sprayed products. It is a multi-award winning corporate which is
having businesses in Bio ingredients, Spices, Hospitality, Realty and Farm Tech. Its
flagship company, Synthite Industries Ltd has a portfolio of over 500 products that focus
on plant derived ingredients for flavour and fragrance solution which serves more than 80
countries across the world. Synthite was the first company in India which started the
production of spice oleoresin. The company was established in 1972 with 20 employees.
It was founded by C.V. Jacob, who started the company after working in civil
construction for two decades. From that pioneering start in 1972, initially it produced
industrial chemicals before shifting to oleoresins. It has grown in to the world‟s most
trusted ingredients solutions provider today, with a turnover of INR 1500 Crore and over
35% of the global market share to its credit.
The leadership of C.V. Jacob has started the company to the top run of exporters of spices
oleoresins and oils, winning certificates of merits and trophies for outstanding export
performance in 1976-77, 1977-78, 1983-84 and 1990-91 from the president of India
Synthite has constantly won the outstanding Exporter‟s Award of the spices Board ever
year from 1976 till today. Synthite manufactures a wide spectrum of Spice Products
ranging from Spice Oils and Oleoresins to spray dried products. Apart from the traditional
oils & Oleoresins we make natural food colour, Health and functional food ingredients,
floral Concretes, absolutes, Waxes and retinoid microencapsulated products.

They are the preferred suppliers to many big business groups such as IFF, Griffith,
Harmaan & Reimer, KFC, Nestle etc. Synthite has presence over 80 countries which
cover almost European, Asian and Latin American countries. Synthite carefully selects
the raw materials, and they using up to date technology has made us one of the global
leaders. The company started in 1972 with an annual turnover of Rs.25 lakhs has a
combined turnover of over 1500 crore today. The company gives direct employment to
over 2000 people and indirectly about 10000 people benefited.
2.2.2 Intergrow Brands Pvt. Ltd.
Intergrow Brands Pvt. Ltd. is a 100% subsidiary of Synthite. It is privately incorporated
on 01 October 2013. It is classified as Non-government Company and is registered at
Registrar of Companies, Ernakulam. Directors of Intergrow Brands Pvt. Ltd are Ashok
Mani and Mathews Jacob. Intergrow brands private limited holds the brand Kitchen
Treasures which is in the segment of FMCG and currently running 100% curry powders
& Masalas. Synthite popularized its new brand Kitchen Treasures in the year 2015.
Synthite group, the global leader in the value-added spices, is venturing into personal care
segment with a slew of innovative products. To start with the company will launch soaps
and hair oils under the brands Vieda and Nuvo that will be different from the
conventionally available products. We believe in holistic wellness and want to create
products with natural ingredients by employing scientific processes that make them of
impeccable quality. Conscious living is what drives us and forms the core of every
product that Vieda creates.
Dentsu India, the integrated full-service communication agency from Dentsu Aegis
Network, has bagged the strategic and creative mandate for Vieda, a newly-launched
personal care brand by The Synthite Group. The mandate was won following a multi-
agency pitch. Kicking off with bathing bars and hair oil products, the company will
extend their product portfolio with shampoo and toothpaste in the months to come. Now
Intergrow brands private limited holds the famous brands such as, Kitchen Treasures,
Vieda, Nuvo and Sprig. The brand kitchen treasures and vieda are manufactured and
marketed by Intergrow brand Pvt. Ltd.

2.2.3 History of Synthite
Synthite Industrial Chemicals Ltd. was established in the year 1972. After 8 years, in the
year 1980 it was recognized as an export house by the Ministry of Commerce and
Industry, Government of India. In 1984 Synthite launches a new plant named Herbal
Isolates Pvt. Ltd. A Fragrance Division at Maradur, Coimbatore was started in the year
1986 for the production of floral concretes and absolutes of Jasmine, Tuberose and
Mimosa in technical collaboration with Cal-Pfizer, France. An In house Research
Laboratory was recognized in the year 1991 by the department of Science and
Technology, Government of India. In the year 1992 the company acquires Sijmak Oils
Ltd, Calicut. It is now Synthite Calicut, an exclusive export-oriented unit, specializing in
herbal extracts.
In the year 1993, The Synthite Research laboratory was upgraded and renamed as CU
Varkey Centre for Research and Quality assurance. During the same year Synthite enters
in to realty, with Synthite properties and Investments and into Hospitality, by starting
Riveria Suits, Kerala‟s first luxury apartment business hotel.
The company established Synthite Exports Ltd. In 2000, Synthite launches Natural Colour
Division at Harihar, Karnataka. The firm enters into energy sector in 2003 by Setting up
500 KW wind mills at Udumalpettu, Tamil Nadu. Synthite launches its Spice division at
pancode near Kolenchery in the year 2006 also the company came with Aromco flavor
India Pvt. Ltd, a joint venture with Aromco, UK and Symega Savory Technology Pvt.
Ltd, a joint venture with Omega, Austria in the same year. In 2007 Synthite sets up Super
Critical CO2 extraction plant for solvent free extracts. Synthite Industrial Chemicals ltd
was rebranded as Synthite Industries Ltd. in the year 2008. Synthite goes global sets up
establishments in the US and in China in the year 2010.
On 01 October 2013 they incorporated a new company Intergrow Brands Pvt. Ltd. it is a
100% subsidiary of Synthite group. It is classified as Non-government Company and is
registered at Registrar of Companies, Ernakulam. Directors of Intergrow Brands Private
Limited are Ashok Mani and Mathews Jacob. Intergrow brands private limited holds the
brand Kitchen Treasures, Vieda, Nuvo and Sprig. Synthite popularized its new brand
Kitchen Treasures in the year 2015.

The story of the evolution of Synthite
1972 Year of establishment
1980
Government of India recognizes Synthite as an Export
House.
1984
Launches Herbal Isolates (P) Ltd. For the manufacture of
dehydrated green pepper, pepper in brine, sterilized
spices and essential oil.
1986
Launches Fragrance division at Maradur, Coimbatore for
the production of floral concretes and absolutes of
jasmine, Tuberose and Mimosa in technical
collaboration with Cal- Pfizer, France.
1991
In-house laboratory recognized by Department of
Science and Technology, Government of India.
1992
Acquires Sijmak Oils Ltd, Calicut. It is now Synthite
Calicut, an exclusive export- oriented unit, specializing
in herbal extracts.
1993
 The Synthite Research laboratory was upgraded and
renamed as C.U Varkey center for Research and
Quality Assurance.
 Synthite enters into reality, with Synthite properties
and investments and into hospitality by starting
Riveria Suits, Kerala‟s first luxury apartment business
hotel.
1994 Becomes the first Indian company in the food sector to
obtain ISO 9002 certification from BSI UK
1997 Systems upgraded to ISO 9002 certification by BSI UK
2000 Launches Synthite Exports Ltd.
2001 Launches natural colour Division at Harihar, Karnataka
2003 Sets up wind mills at Udumalpettu, Tamil Nadu

2004 Awarded ISO 9001:2000 certification, from BSI , UK
2006
 Spice division at Pancode, Kolenchery
 Aramco Flavours India Pvt. Ltd. a joint venture
with Aramco,UK
 Symega savoury Technology Pvt. Ltd. a joint
venture with Omega, Austria
2007 Sets up Super Critical CO2 extraction plant for solvent
free extracts
2008 Synthite Industries Chemicals Ltd. rebranded as Synthite
Industries Ltd.
2009 Implementation of SAP into business
2010 Goes global, sets up establishments in the US and in
China
2012
 Commissioning of Synthite‟s first overseas
production facility in Xinjiang, China for the
production of Paprika
 Kitchen Treasures Curry powders were launched
2013
 Commissioning of Capsaicin production facility in
Ongole, Andhra Pradesh and Lutein production
facility at Coimbatore, Tamil Nadu
 Intergrow Brands Pvt. Ltd. is a 100% subsidiary of
Synthite. It is privately incorporated on 01 October
2013.
2015 Officially launched Kitchen Treasures curry powders into
common Market
2017
Synthite group venturing into personal care segment with
a slew of innovative products under the brand name of
Vieda and Nuvo. It is manufacture and marketed by
Intergrow brand Pvt. Ltd.

2.2.4 Company Vision, Mission and Values
2.2.4.1 Vision
"By consistently delivering the ingredients of success for the most exciting food, health
and fragrance solutions, Synthite will be the partner of choice to our clients worldwide."
2.2.4.2 Mission Pillars
 Sustainable Growth: Grow smart, grow fast, and grow together.
 Innovation: Operational excellence powered by innovation.
 Customer Service: Cultivate customers, care more.
 Enhance Value: For all stakeholders.
 Making it a great place to work: Winning people through collaboration.
2.2.4.3 Core values
Values are the bedrock of an organization. They form the basis of the behavior of its
members. Synthite strives to find a perfect balance between individual and organizational
values. As an organization, Synthite has always insisted on a strong sense of business
ethics and moral values. Synthite leads by example, so our values become the values of
our people. Synthite believes in motivating and encouraging, instead of conditioning or
enforcing. And it is this value-system that defines the way Synthite function, as an
organization and as a family.
 Performance
Synthite is constantly looking to improve their performance and better the quality of life,
by improving the quality of food. Synthite is replacing synthetic additives, colors and
flavorings with natural alternatives. This ensures better health for our consumers and a
better world to live in.
 Fairness
At Synthite, Synthite have always given due credit to the value of fairness. And Synthite
have always expected and offered this quality in all our business transactions. Synthite
has been consistent and principled in every relationship.

 Innovation
At Synthite, we believe that their technology combined with their acumen for innovation,
has always helped us address even the most challenging customer requirements. So,
Synthite strives to achieve the highest level of scientific excellence and then innovate
further to enhance the value that it provides to our final consumers.
 Commitment
Synthite is accountable to the customers whom Synthite serve, to the employees who
work with Synthite, and to the environment in which Synthite exist. Synthite honors its
commitments to all of the above, and works symbiotically with them, pledging to give
back more than what it takes.
 Communication
At Synthite, we believe open communication to be the driving force for upholding our
core values at all levels for achieving our mission and realizing our vision.
 Teamwork
As Synthite moved up the ranks as an organization, our employees have moved up with
us. This teamwork is the essence of our work culture.
2.2.5 Objectives of the Company
 Evaluation and implementation of better production methods through scientific,
technological and economic research.
 Systematic development and regulation of the Indian Spice Industry.
 Excel to become the choice of suppliers for the world‟s top 10 flavours house.
 Target Rs. 3000 cores turnover by the year 2020.
2.2. 6 Awards and Recognitions
 Won National Awards from the president of India.(5 Times)
 Herbal isolates secured the Kerala state Energy conservation Award for the year
2000 by Energy management centre, an autonomous centre under the department
of power, Government of Kerala.

 Harihar unit bagged the „Gold Award‟ for the year 2007-08 (manufacturer export
award-medium category
 Qualified to be an approved supplier to Nestle Group of Companies, for supplying
both oleoresins and spice ingredients.
 Rotary CSR Excellence Award 2015.
 The rating has been published in the Crisil.
 Consecutive winner of the „Largest Exporter of Spice Oleoresin award from
Spices Board of India for the past many years.
2.2.7 CSR Activities (Corporate Social Responsibilities)
Synthite has established the CVJ Foundation. The foundation is an umbrella organization
the foundation looks at both improving and sustaining facilities for its people. C.V.J.
Foundation was launched in 2008 to commemorate the 75th
birthday of the founder
Mr. C.V Jacob. The foundation works towards driving social change for the communities
in the regions we operate. Mr. C.V. Jacob has initiated special development schemes
aimed at the disabled. This focuses mainly on Education, Health Care and Housing. It will
always be Synthite‟s endeavor to give back, to share and to support those around the
company as gratitude towards the communities that have paved way to the company‟s
success. Synthite has put in place a variety of schemes like Parppidam, Spandanam,
Prakasham, Vidhyadhanam and Suraksha, to achieve just that.
 Parppidam
Under this scheme the trust has constructed houses for the poor, with preference for
widows, handicapped and the ailing. More than 70 houses have been built at a cost of
more than Rs.70 lakhs and still more to come.
 Spandanam
This scheme is focused on providing health assurance especially to heart patients for
bypass surgery who could not afford the hospital expenses and treatments. The foundation
works towards driving social change for the communities in the regions we operate. All
the CSR activities are going in a better way.

 Prakasham
Prakasham is a scheme in collaboration with the Ophthalmology Department of MOSC
Medical College Hospital, Kolenchery. Under this scheme the trust conduct free Cataract
surgery and implanted lenses for free cost for the poor.
 Vidhyadhanam
Meritorious students from economically backward situations were given financial
assistance to help them further in their professional education.
 Suraksha
This is a scheme for providing Medical insurance for people below poverty line. Under
this scheme over 1600 families comprising of 7000 people were covered where, each
family will be eligible for medical insurance up to Rs.30000 a year. Suraksha has been the
first scheme of its kind by any private sector undertaking in India.
2.2.8 Certifications
 Quality Management Systems –ISO 9001:2008
 Food Safety Management Systems – ISO 22000:2005
 NABL Accreditation for QC Lab-ISO/IEC 17025:2005 (National Accreditation
Board For Testing And Calibration For Nuetracuetical)
 ISO 9001:1994 by BSI, UK
 ISO 9001:2000 by BSI, UK
 ISO 14001:2004 certification (Environment Management System)
 Fair Trade Certification
 Halal certification
 EIA (Export Inspection Agency)
 ISO 18001:2007 (Occupational Health And Safety Standards)
 FSSAI (Food Safety Standards Authority of India)
 ORGANIC Certification (Organic Product Certification)
 FSSC 22000:2010 (Food Safety System Certification)
 PAS 99:2006 (Publicly Available Specification)

2.2.9 Synthite Group of Companies
 Synthite Industries Ltd.
 Symega Flavours India Pvt. Ltd.
 Herbal Isolates Pvt. Ltd.
 SYMEGA Savoury Technology Pvt. Ltd.
 Intergrow brand Pvt. Ltd.
 Synthite Realty
 Synthite Hospitality
 CVJ Foundation
2.2.10 Future Plan of the Company
 New technology
The company is set to enter into the health care production industry on a large scale,
bringing in the world latest technology and machines in every new area of activity.
Attention to purity and hygiene standards that meet the highest world requirement is the
focus of the group.
 New product
Synthite group venturing into personal care segments with innovative products. To start
with the company will launch soaps and hair oil under the brand Vieda and Nuvo that will
different from the conventionally available products. In course of time the segment will
cover the entire gamut of personal care products including shampoo and toothpaste.
 New market
At present 80% of the turnover of Synthite comes from exports and the group accounts for
30% of global spice oleoresin trade with manufacturing units spread over Kerala, Tamil
Nadu, Karnataka, Andhra Pradesh and China. Now Synthite is in the personal care
segment and they launch soaps and hair oil under the brand Vieda and Nuvo. That will
different from the conventionally available products. In the coming future the company
will focus on Kerala and the other southern states before expanding to other parts of the
country.

2.2.11 Divisions
 Spices
The Spice Division located at Synthite Taste Park, a state-of-the art, ISO certified and
HACCP compliant processing facility, manned by a team of well-trained personnel with
stellar technical and scientific knowledge. This Division offers whole, powdered and even
processed spices that meet global food safety standards. Our range of powdered and
sterilized spices conform to the stringent European Commission directives for microbial
load, pesticide residues and other contaminants.
Processes
 Cleaning, de-stoning and colour sorting.
 Steam Sterilization
 Grinding & Crushing
 Roasting
 Customized blending solution
 Packing Private labels (Retail and food service)
 Bio-Ingredients
The story of Synthite begins with the manufacturing of Oleoresin Black Pepper. Over the
last forty years, Synthite has become the leader in the manufacturing of all spice
Oleoresins. Today, Synthite is also a leading force in a variety of botanical extracts such
as tea, coffee, vanilla and lutein. Synthite process raw spices at our state-of the-art plants
and labs; where Synthite extracts Oleoresins retaining all the original characteristics such
as flavour, colour and taste of the starting natural raw material. Some of these value-
added products are unique to Synthite; which is why Synthite is the global leaders in this
line of business.
 Hospitality
Synthite came into existence because of a pioneering vision. This has been the leitmotif
behind all their ideas, innovations and new business strategies. This spirit has been
appreciated by partners, customers, and the world at large.

Today, Synthite can proudly say that it had remained faithful to this guiding principle.
Synthite has always been open to change, and have gone to set benchmarks in every
business avenue that Synthite has ventured into the hospitality business. In 1992, Synthite
created India‟s first luxury service department hotel, Riviera Suites, which became an
epitome of luxury sojourns in Cochin. Carefully crafted to offer the best of urban living in
an idyllic surrounding, Riviera Suites is the destination for a relaxing and refreshing stay
in Cochin. Synthite believes that any foray into a new business must be accompanied by
standards that are best in that field.
 Ramada resort, Cochin
One of Synthite‟s esteemed hospitality projects, an experience at Ramada Resort is
unforgettable, and one that will rest your body and delight your senses. Set amidst eight
sprawling acres of masterfully crafted landscapes, the Ramada Resort offers a host of
fabulous features. From floating pool villas, to lake facing cottages, it has got it all. The
resort even boasts of deluxe rooms overlooking the shore of the Vembanad Lake. Barely
10kms away from the city, the resort offers the best of both worlds - the accessibility of
the city and the tranquility of the outskirts. Other features include - two specialty
restaurants, a lavish lounge bar, an interesting library bar, a refreshing sunken pool bar
and the largest Spain Kerala. Ramada Resort is delightfully impressive and service
oriented.
 Riviera Suites
The need to do better is what drives us. Kerala is snugly nestled in nature's lap of luxury.
But the hospitality sector seldom if ever, complemented this luxury. Synthite decided to
come up with a project that would be the benchmark in luxury living. This is how Riviera
Suites, Cochin was born in 1992 with 124 tastefully decorated and centrally air-
conditioned room, Riviera Suites provides an exquisite living experience. The suites
command a breath taking view of the serene Vembanad Lake, and in the distance, the
city‟s sparkling skyline. Add to this the convenience of being let out on a daily, weekly or
monthly basis. Nestled amidst four acres of beautifully landscaped, Riviera Suites is the
perfect location for an intimate sojourn, a casual getaway or formal business meeting.

 Farm tech
As one of the world‟s leading suppliers of food ingredients, Synthite is synonymous with
impeccable product quality tailored to client specifics. The challenges go beyond
technological capabilities and sometimes demand adapting to ever changing agro-climatic
conditions. At Synthite, we have integrated backwards. Farm tech, our raw material
sustainability initiative, works closely with the local farmers and provides them full
education and support. Farm tech maintains the farmer data and follows a coding system
for their produce. This allows them to extend the control over the quality of the raw
ingredients and maintain complete traceability. Areas where Farm tech helps farmers
include:
 Soil analysis
 Seed selection
 Fertilizer and pesticide application
 Integrated Pest Management (IPM) practices and providing IPM kits
 Preventive measures for diseases
 Post-harvest handling
 Providing the right price for the produce
 CSR activities: providing life skills and education to farmers “children
 Symega Savoury
Synthite offers a wide range of innovative and ground-breaking solutions for the food
flavoring industry. They are the results of breakthrough ideas backed by innovative
processes that use advanced technologies. With over 40 years of experience in this
industry, Synthite has acquired considerable expertise to provide value-added solutions
customized to varied preferences and needs.
In 2007, the company began exploring the potential for newer and better innovations. This
led to the founding of Symega. SYMEGA‟s focus is to develop and manufacture savoury
seasonings and ingredients for the food industry. Over this short span, it created a
delightful niche in the food industry providing innovative solutions to its ever increasing
demands.

Symega is Synthite‟s synergetic partnership with a view to explore new opportunities,
deliver proven solutions, cut costs and improve efficiency. The company has a state of art
manufacturing facility with BRC certification to blend up to 8,000 metric tons a year.
Activities
 Supply to food industry worldwide.
 Offer specialty ingredients that enhance the sensory appeal of food.
 Provide ingredients customized to client requirements.
 Undertake private labeling for retailers and brand owners.
 Symega Flavours
Symega Flavours India Pvt. Ltd, an ISO 9001:2008 certified company, is the flavours arm
of Synthite Industries. The Company had its origin as Aromco Flavours India Pvt. Ltd 50-
50 Joint Venture with Aromco Ltd (United Kingdom). In 2014, it became a fully owned
subsidiary of Synthite Industries.
Since inception in 2007, company‟s endeavor has been to deliver flavours solutions that
meet and exceed the requirements of their customers. It is specialized in designing and
producing customized sweet and savoury flavours solutions for the global food, beverage
and pharmaceutical industries.
 Herbal Isolates
Set up in 1984, Herbal isolates is today a top resource for Pepper products such as
Dehydrated Green Pepper (crushed and whole), Green Pepper in Brine, Red Pepper in
Brine and a host of subsidiary products like Hydrolyzed Vegetable Proteins. All the
products conform to EU and other international food standards. Today, Herbal isolates
has carved a niche for itself among quality conscious buyers.
 Wind Energy
As part of continuous value optimization strategy, Synthite exploits nonconventional
energy as a power source for its manufacturing. Even in this pursuit, Synthite is
committed to promoting and using clean energy and has commissioned two windmill
generators.

Windmills are located in the high wind density area of Udumalpet, Tamil Nadu and the
electricity generated is even coupled to the Tamil Nadu State electricity board distribution
grid. The first windmill was commissioned in September 2003. And the 12500 KW
generators are coupled to the Udumalpet electricity distribution circle. The second
windmill was commissioned in January 2004. And with an annual production of more
than 2 million units and with three more generators in the pipeline, Synthite proves its
commitment to promoting renewable and sustainable energy.
 Synthite Realty
Synthite Realty is the housing division of Synthite Industries Ltd. Synthite Realty made
its first foray into real estate in 1992 with Riviera Retreat on the Thevara water front in
Cochin. This landmark project offering fully air conditioned apartments was the first of
its kind in the state, setting new standards in luxury and offering an array of amenities.
It is one of the finest properties in Cochin and Synthite Realty has a proven track
record as premium builders in Kerala. Spice Villas in Kolenchery, Kochi, and Synthite‟s
next offering as a genuine and trusted Builder was highly acclaimed as a top Kerala
property. With the completion of this project, Synthite‟s philosophy of focusing primarily
on semi-urban projects took shape. Synthite‟s core values are commitment to quality and
keen customer focus. Since its clientele consists of the well-travelled, design conscious
elite, Synthite homes reflect their taste and aspirations for luxurious homes in Kerala.
Prime importance is given to functionality and ambience, both within the home and its
surroundings.
2.2.12 Synthite Brands

 NatXtra
The long-lasting healing powers of traditional medicine have been hailed across the globe,
across the ages. Natxtra is the best of old and new world medicine. The process involves
granulating and encapsulating natural ingredients like Ginger, Lutein, Piperine, Curcumin
and Green Tea. All of which are widely popular for their health benefits and medicinal
strengths. With Natxtra, Synthite‟s combined natural ingredients, age old traditions and
high-tech processes, to make immaculate health an everyday possibility.
 Necol
Colour is an important part of the eating experience. We offer a range of natural colour
solutions through NECOL. By sourcing the finest raw materials, carefully chosen for their
farm level traceability and health benefits, NECOL‟s range of food colours are made with
only natural ingredients. NECOL colours are specially customised and standardised for
application in Beverage, Dairy, Confectionary and Savoury industries.
 Neaox
The antioxidant story has been told and retold around the world. Neaox is a natural and
effective antioxidant that provides application specific solutions by considering the
factors responsible for oxidative degradation of food. Our natural antioxidants blend with
higher efficacy and inhibit free radical auto-oxidation. Neaox is developed from
Rosemary and is blended with other functional ingredients that can provide synergic
effects. And this mix has many advantages. Neaox is natural and has no impact on
flavour.
 Straights
Today‟s consumer has many choices. A consumer views a food item as healthy when it
has a clean label, contains no chemicals, and uses natural ingredients. Straights are a class
of 100% Natural non-selective, mechanically processed spices. These spice extracts
impart true natural colour, flavour and aroma. Thus, they are perfect for clean label foods.
Straights place the goodness of minimally processed artisan ingredients in the hands of
the Formulator and Food Manufacturer.

2.2.13 Intergrow Brands Pvt. Ltd.
Intergrow Brands Pvt. Ltd. is a 100% subsidiary of Synthite. It is privately incorporated
on 01 October 2013. It is classified as Non-government Company and is registered at
Registrar of Companies, Ernakulam. Directors of Intergrow Brands Private Limited are
Ashok Mani and Mathews Jacob. Intergrow brands private limited holds the brand
Kitchen Treasures which is in the segment of FMCG and currently running 100% curry
powders & Masalas. Synthite popularized its new brand Kitchen Treasures in the year
2015. Now Synthite is venturing into personal care segment with a slew of innovative
products. To start with the company will launch soaps and hair oils under the brands
Vieda and Nuvo. Intergrow brands private limited holds the famous brands such as,
Kitchen Treasures, Vieda, Nuvo and Sprig.
 Vieda
For years, Synthite has been the world‟s largest value-added natural ingredient company
with a soul rooted in conscious living. By taking forward this ethos, we present to you,
Vieda. Personal care products ranging from soaps to hair oil, Vieda is the perfect synergy
of scientific innovation and traditional learning‟s. Filled with rare natural ingredients,
here‟s a brand that takes care of you and bestows you with all things good.
Vieda embodies the new age approach towards wellness. It takes the hidden secrets rooted
in our tradition and blends them seamlessly with science. It‟s this synergy that makes
Vieda stand out. We believe in holistic wellness and want to create products with natural
ingredients by employing scientific processes that make them of impeccable quality. We
have taken tradition ingredients from around the world and added to their strength with
the most scientific techniques. Conscious living is what drives us and forms the core of
every product that Vieda creates.

 Hair Oils
1. Kachiya Enna
One of Kerala‟s best kept secrets is Grandmother‟s Kachiya Enna concoction for long
lustrous hair. We have recreated the same by blending traditional ingredients with
superior process formulation.
Description
We have chosen the best natural and traditional ingredients like sesame oil, aloe vera,
tulsi, bringha raja, and blended it with virgin coconut oil to give you that thick long hair.
Each of these ingredients helps in promoting hair growth by increasing blood flow to hair
follicles, treating scalp infections, dandruff, and preventing hair thinning.
2. Nuvo oil
Every culture holds a secret to healthy hair. Vieda Nuvo Hair Oil is the perfect blend of
ancient hair care secrets from around the world. Not just one, 9 unique virgin oils,
blended for healthy hair.
Description
Nuvo is an invigorating blend of 9 virgin oils that we have found from around the world.
This exceptional blend of nature‟s finest oils has been perfected with cold press
technology to maximize its potential. This powerful blend consists of Argan oil, Sea
buckthorn oil, Jojoba oil, Rosemary oil, Black Pepper oil, Wheat Germ oil, Olive oil,
Sesame oil and Virgin Coconut oil.

 Soaps
1. Blue Pea – Vieda Spa Essentials
Experience spa indulgence with the perfect blend of the magical properties of blue pea
and coconut cream to moisturise and rejuvenate you every day.
Description
A perfect blend of tradition and science, feel the goodness of both coconut milk and blue
pea at the same time. While coconut milk keeps moisturises and conditions your skin,
blue pea combats skin inflammation with its natural detoxification and anti-inflammatory
properties.
2. Hibiscus – Vieda Spa Essentials
Unique dual contoured soap blended with coconut cream for your face and red hibiscus
for your body to give you a spa-like experience.
Description
Coconut cream moisturises your face and red hibiscus rejuvenates the skin to give you a
younger, suppler appearance. Rich in anti-oxidants, alpha hydroxyl acids, and vitamin E,
3. Vieda Moringa
An all-natural glycerin soap with mild cleansers, skin conditioners, and active ingredients
that is suited for a variety of skin types.

4. Vieda Sea Buckthorn
Our glycerin soaps are made from rare natural ingredients like sea buckthorn that gently
moisturise and hydrate your skin.
Description
Sea buckthorn oil is known for its healing and rejuvenating effects on the skin. When
applied topically, it works as a great natural cleanser and exfoliator.
5. Vieda Cream Pink
Formulated with, right blend of sweet almond milk, red sandalwood, and beneficial oils to
nourish your skin deeply.
Description
Sweet almond milk helps in restoring and soothing your skin while red sandalwood helps
in maintaining oil balance. Red sandalwood plays a crucial role in nourishing your skin
from inside out and providing that much needed exfoliation to leave you with a clearer
and flawless complexion.
6. Vieda Cream White
Vieda cream white soap is made from beneficial oils, skin conditioners and active
ingredients to gently cleanse your skin by leaving it soft and supple.

 Kitchen Treasures
Kitchen Treasures was born from the house of Synthite – the world‟s largest producer of
value-added spices, with a history of over four decades in the production of spices,
flavours, spice oleoresins, and pure and blended seasonings. Our goal is to produce high-
quality ingredients that taste like they were prepared in your mom‟s kitchen. Synthite
launched premium masalas, spice powders, pastes and pickles under the brand name
'Kitchen Treasures'.
At Kitchen Treasures, we don‟t believe in half-measures. Our mission is 100% quality,
purity and authenticity. From their ten thousand acres of farms to our state-of-the-art
manufacturing facility; from our meticulous manufacturing process to our global standard
quality control, we ensure that you get what you pay for pure, wholesome, high-quality
ingredients.
Trustworthy: Every product produced by Kitchen Treasures is backed by a legacy of
knowledge that goes back forty years. It‟s a legacy that has been recognized by the Spices
Board of India every year, since 1976.
Wholesome: Enjoy pesticide-free ingredients, thanks to Farmtech: our in-house expertise
in sourcing raw material from approved grower networks. This ensures traceability of raw
materials, and a transparent journey from source to shelf.
Reliable: Due to our stringent quality control norms, Kitchen Treasures has been certified
by the HACCP and the BRC for our commitment to global standards of quality. Thus,
millions of customers can rest assured: Kitchen Treasures is the brand to rely on.

 SPRIG
A shrinking world has expanded people's appetite for global cuisine. Today, the dining
table is where worlds meet. It's not just chefs but even homemakers are serving up
Chinese, Thai, Malay, Mexican, British, Italian and a host of other cuisine. But specialty
food also needs special ingredients, which are not readily available. This is where SPRIG
comes in.
Love of food never goes unrequited. Perhaps it is the combination of good looks, great
taste and unbeatable flavour; but a meal prepared with the right ingredients, with love, is a
celebration. SPRIG is a brand that scours the world to get the finest gourmet ingredients
into kitchens of people who pride themselves in preparing good food.
At Synthite, we understand spices, we've mastered flavours, and we know how to get the
best from nature. In fact, with SPRIG, we intend to add a pinch of nature to gourmet
cooking. SPRIG is our foray into the world of premium gourmet products and ingredients.
With a range of natural vanilla extracts, world‟s best whole spices, seasonings, sauces,
olive oils, natural colours and more. We are leveraging our existing relationships and
building new ones to ensure that the world's best gourmet products bear the name SPRIG.
They mainly focusing on international business so many of the products are exporting to
some other countries, Golden matcha instant green tea, True cinnamon from Sri Lanka,
Natural bourbon vanilla extract, Vanilla beans from Madagascar, Gourmet pepper
medley, Wasabi paste, Harissa paste, Bhut Jolokia sauce, Ginger Terivaki sauce these are
the products comes under the brand name SPRIG.

CHAPTER - III
REVIEW OF LITERATURE

3.1 Review of Literature
3.1.1 Retail Audit
Retail audit is a full process which systematically examines and evaluates the firms total
retailing effort to measure brand performance. This study is basically to understand the
overall performance of brand Vieda hair oil in retail outlets. Retail audit helps to gather
information on brand's sales volume, stock levels, effectiveness of in-store display,
evaluate the competition, getting real time data and improving performance trends.
A retail audit should be carried out at real time because it gives an accurate picture of the
events at a retail shop and helps to carry out corrective or improving measures at that
time. In-store merchandising constitutes an important part of retail audit. As it is through
the placement of products at a particular place we can increase the effectiveness and
increasing the sales of the particular merchandise.
Conduct retail audit in an effective way, for this firstly select samples which is
representative of the real world samples. Next step is to set objectives and carry out retail
audits keeping those objectives in mind, so that easily collect the data. The survey which
is formed should be simple and terse, so that it is easy answering and easily collate the
data. The real data are collecting from retail stores through the questionnaire method. The
devices which can be used to assist the retail audit may vary depending on the objectives.
For carrying out a survey a simple tablet or a phone can be used. There can be new data
types which can be involved while carrying out a survey. These need to be collected and
documented properly. Then after all this data is collected and processed to achieve the
desired results.
A Retail Audit Is a Mirror of Brand Retail Performance
Article is written by Herbert Sancianco (Marketing and Management Consultant)
published on 26 June 2015
Companies who have been in business for so many years and are experiencing a declining
sales trend usually thinks that their marketing programs are not working as they should
despite the glossy print advertisements or catchy television commercials and the huge
advertising budget allocated for this purpose.

Retail audits generate valuable data for the marketing and sales teams to help them not
only rethink their business game plans, but likewise to deeply understand on a continuing
basis the ever c hanging operating environment of each sales channel they are serving.
There are 10 audit outputs as follows:
1. Product availability – the audit will establish what is the brand‟s supply gap in the
marketplace. The supply gap is an indication of the sales opportunity losses that the
company is incurring which can be associated with the declining sales velocity that
is being observed. The supply gap can be caused by a real supply deficiency or
weak sales coverage by the sales team or its extended sales distribution
stakeholders. Narrowing the gap equates to rebuilding corporate commercial success
and profitability, and not to mention increasing market shares to the detriment of
competition whether it involves a single brand single company, or multi-brand
single company.
2. Display visibility – this audit point confirms what the available SKUs are on hand
for sale at the retailer. Their respective presence at the shelf will determine the off-
take factor for each stock keeping unit and the SKU category itself compared to
competition. Being unable to display a particular SKU due to the space issues
creates a sales opportunity loss for that SKU, and creates a misleading offtake
record.
3. Product selling condition – this audit point will check on the freshness of the
product on display, establish if there are packaging issues like leaks and damages
due to rodent infestation. This will enable the sales team to replace ahead of time
expiring products and quantify the damage issue as these will be perennially
returned to the supplier.
4. Product demand profile – if a brand has several variants and product lines, an
audit will be able to establish which among these SKUs have strong and weak
demand profiles by geographical location or by type of retailer i.e. the independent
from the chain wide operators. The study output will enable the brand marketers and
sales director in initiating a specific product mix for each category instead of a full
line selling proposition so that it will cut down on the product return issue due to
weak offtake.

5. Competitive advantage - an audit will establish the comparative strengths and
weaknesses of the brand as a baseline data covering several attributes at point-of-
sale and relative to the sales channel concerned. This will include sales promotion
activities, shelf space occupancy, merchandise material presence, price index,
supply presence and market share.
6. Merchandising visibility – this is a key query of the marketer since this is a big
expense for the brand in order to attract the passing shopper. This is a contact point
with the target buyer in creating point-of-sale purchase particularly for impulse held
shopping trips. It is a key factor in the final buying decision particularly if there is a
price discount promotion underway.
7. Retailer feedback – the retailer‟s merchandise purchasing officer or the store
owner itself are valuable informants for the brand in as far as knowing how it stands
with the retailer for its income performance and comparative advantage against rival
brands that the retailer likewise sells.
8. Pricing landscape – the marketing team needs to know first-hand how the brand is
being sold out there given a price list that they would like the retailer to follow or
the so-called SRP (suggested retail price), and how their brand is compared to
competition.
9. Sales team performance – the audit will indicate which geographical areas are
weak and strong based on the audit attributes. The audit in some cases will validate
what is the real business condition of the brand in the respective areas. A weak
market area can always and surely equate to a weak sales team in terms of their
personal drive to really work and generate the target revenue. It is possible that the
area sales team is in full command of the brand relative to what should be sold, how
much should it be sold, and when they should be selling.
10. Merchandising service agency performance – companies who outsource their
shelf refilling requirements will also want to know if their service agency staffs is
satisfying their contract deliverables for the scheduled work time period per outlet
regardless of whether the shelf refilled is on a roving or stationary assignment.
Those unable to satisfy their work schedules usually results into a poorly managed
shelf space or display area, which in turn will likely show how poorly the outlet is
performing for the supplier.

Retail audit (Synthite Industries Ltd)

Retail audit (Synthite Industries Ltd)

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