strengthening distribution channel of kara wipes

1. “STRENGTHENING DISTRIBUTION
CHANNELAND BRANDING OF KARA
WIPES IN LUDHIANA”
By:-
Shubham Rajput
(A0102214222)

2. INTRODUCTION
 Kara wipes a brand owned by Birla cellulose an umbrella branch of Aditya Birla group, Launched
in 2008. .
 Primarily due to a very low sales base the customer base increased as wipes gained visibility in
modern retail formats, such as hypermarkets and supermarkets, but remained small compared
with that for retail tissue product.
 Personal wipes grew by 20% in current value term in 2014.
 According to the research conducted by KSA TECHNOPACK Delhi (ncr) Chandigarh is the
biggest market for cosmetics in north India.
 In 2009-10 Kara was the leading brand in the market with 56% of share.
 In spite of growth of 20% in personal wipes the sales of Kara wipes is decreasing.

3.  Company data shows that sales is decreased by nearly 25%. Which also adversely affect the
market share of Kara wipes in this segment.
 Increasing the market share and sales is becoming the emerging issue in the company.
 Company is making the effort to improve their projection technique, market strategy and
improving their distributional channel to become the market leader in personal wipes segment.
 This study focus on collecting and analyzing the data which could give the information about the
bottlenecks which exists in the markets as well as in distribution channel so that these problems
can be resolved for the future development.

4. OBJECTIVE OF STUDY
 To know the consumer buying behavior about Kara wipes.
 To find the bottlenecks in distribution channel and market of Kara Wipes.
 To understand retailers problems and their expectation.
 Creating demand of Kara wipes in different markets.
 To know how to increase the brand value of Kara wipes.
 Overall market development of Kara wipes.

5. RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research approach Quantitative
Research design Descriptive
Research instrument
Survey, Interview (non-directive) and
observation(non- participant)
Scaling Nominal & Ordinal
Sampling
Non-probability sampling (convenience sampling)
Data collection Primary and Secondary
Research tool Excel (pie charts, bar-graphs)

6. ANALYSIS
Sample size is 141.
 Out of 141 respondent 109 are using or used wet facial wipes for their skin.
 Johnson & Johnson is the market leader which contributes nearly 32% of sales. While Kara
contribute 25% of sales.
 Only 15% of the respondents get aware from advertisement and company sales person. This means
that company is not making effort for the promotion of their product.
 Kara got promoted majorly by publicity through words of mouth.
 Quality is the variable toward which customers are mostly attracted.45% of the respondents likes
the quality of Kara wipes.
 45% of the respondents are purchasing wipes from modern markets like malls, reliance market,
metro and many other super markets exists in Ludhiana.
 55% of the respondent disagrees on the point that Kara is easily available in the market.
 Only 15% of the respondents agree that retailers are making effort to sell Kara wipes in the
markets.

7.  Study show 30% of the respondent agrees and 34% strongly agree that Kara is a premium
brand.
 Kara wipes are of premium quality which also helps Kara to create brand image in mind of
consumers.
 Data shows that 38% of the respondents agree that brand name influence their buying
behavior.
 Study shows that 28% of respondents strongly agree and 24% agree that the quality of Kara
wipes is reliable.
 Study shows that 20% of the respondent strongly disagrees and 41% of the respondents
disagrees that price of the Kara wipes is reasonable.
 Only 25 % people agree that they are brand loyal and they use same brand for long time.
 Study shows that 50 % of the respondents agree and 7% strongly agree that company should
do brand promotion.

8. FINDINGS
 According to the analysis peoples in Ludhiana are aware about the Kara wipes but they are not
using it much. Reason behind this is price and availability of Kara wipes in markets.
 This shows that peoples tend to be more value oriented while buying facial wipes and they prefer
to buy cheaper product instead of a product which has higher cost in comparison to other.
 Study suggests that Kara is considered as premium brand in this segment due to the tag of Aditya
Birla Group on this brand as well as due to its quality.
 Market expectation:-
Customer expectation Intermediaries expectation
Reliable price Better margin
Product availability Effective distribution system
Discounts Promotional tools
Variants should be available in outlets Sales person support
Competitive pricing

9.  Bottlenecks in the market:-
I. 2-tier distribution channel
II. Availability
III. Fewer margins to intermediaries.
IV. Price of the product is high.
V. No sales person
 SWOT analysis:-
Strengths Weakness
 High industry attractiveness.
 Premium quality product.
 Made up of 100% natural fibers.
 Biodegradable.
 Hygienic, Alcohol free.
 Higher price
 Low business unit strength.
 Middle class people hesitate to purchase.
 No promotional activities.
 Low profit margin to intermediaries.
Opportunities Threats
 Climate necessitates these types of products
 More fashion oriented customers.
 Increased in the number of working ladies.
 This concept is getting more awareness and attention
now days.
 Competitors.
 Chinese products such as orisis which are very less
costly than Kara.
 Baby wipes, as many customers are using baby
wipes as facial wipes.

10. Conclusion
 Conclusion was made through general electric nine cell model which indicate the business
strength and industry attractiveness regarding Kara wipes.
GE 9 CELL MODEL
 Kara has high industry attractiveness but medium business unit strength.
 Due to the competitors who are offering similar product in very less price in comparison
to Kara the sales of the Kara is affected adversely.

11.  Since Wet Wipes is a new concept, they are at an introductory level.
 With the increasing awareness of hygienic need and higher standard of living, people are
showing very positive response toward these products. Therefore it is placed under high
industry attractiveness.
 The circle falling in the green area indicate that company need to invest more on the
promotional activities to grow its brand and to increase the market share to hold dominant
position in markets.

12. LEARNINGS
 Practical knowledge of segmenting, targeting and positioning of product.
 Consumer perception toward FMCG product.
 Intermediaries expectations from the company.
 Distribution channel management of Kara wipes.
 Teamwork.
 Learning about the corporate culture.

13. SUGGESTION
 Introduction of fat-agent in the markets.
 Focus on institutional trading.
 Company should adopt competitive pricing strategy.
 Motivating intermediaries.
 Kara needs a brand strategy.

14. THANK YOU