|Synopsis |The main objective of this project is about the Study of : Distribution Model adopted by ITC in comparison to Unilever and P&G, Stock |Movement and Inventory maintenance of FMCG goods at Ware House and Visibility solutions of ITC products at retail outlets |
To analyze the contribution of chemist and cosmectic outlets to FMCG poducts vis a vis to its competitos
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SUMMER TRAINING REPORT
ON
“To analyze the contribution of Chemist & Cosmetic
outlets in Personal Care Product business”
Submitted in partial fulfillment of the requirements of
Post Graduate Diploma in Business Management
By
Shraddha Mishra
Batch-14
Roll No.-1249
Dr. Gaur Hari Singhania Institute of Management Research
Jaykaylon Colony,
Kamla Nagar,
Kanpur-208005
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Acknowledgement
“Not what we give, But what we share,
For the gift, without the giver
Is bare”
~James Russell Lowell
An experience of an Environment outside text books and class rooms has
remained the best teacher for ages. “Analyzing the contribution of chemist &
cosmetic outlets in Personal care Products of ITC vis a vis to its competitors”,
was an expedition to learn and understand the Market nomenclature in a
different way.
I express a deep sense of gratitude to our mentor, Mr. Arvind Upadhyay area
manager (Kanpur) ITC Limited, Lucknow, for his unfaltering support and
motivation which made this study worthwhile. A token of gratitude, to Mr.
Shrijeet Paul area executive (Kanpur) ITC Lucknow, the staff of ITC Lucknow,
Tirupati Agency Kanpur, Shree Agency Kanpur and Various outlets of Kanpur,
for without their support this study would have been impossible.
I am deeply obliged to all those outlets owners who inculcated their knowledge
during my survey process, for without them this study would have been
nonexistent.
.
Executive Summary
The study of “Analyzing the contribution of chemist & cosmetic outlets in
Personal care Products of ITC vis a vis to its competitors” was aimed at
finding out the role of both the chemist & cosmetic outlets in influencing Visual
merchandising (VM) to understand the customer buying behavior, along with
that it also focuses on the DS productivity, the monthly stock movement of
personal care products of ITC in contrast to its competitors and the role of
company promoters in these outlets.
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Visual Merchandising basically deals with elements of display of products
which is gaining momentum in India with the growth of retail industry. It is
important to notice that Visual merchandising is involved in getting more
visitors to stores and also in converting them into shoppers. As this accounts
for 2/3rd of the process, it is of immense importance.
On the same path the role, of company salesmen is very crucial in raising the
sales and making the product availability to the maximum possible outlets and
thereby it enables them to penetrate more deeply into the market.
Similarly, company promoters working as a beauty advisor is a very
challenging position. As a company promoter, having all the essential
knowledge and understanding of the company’s product, along with good
motivational skills, leaves an impact on the buyer and ensures a better
goodwill of the company in the market.
The research methodology consisted of surveys with company agency and
visual Merchandisers who gave valuable insights about VM efforts and
challenges’ in Kanpur. This was followed by Format survey, which was done
at stores. The total sample size amounts up to 150. The results obtained
from qualitative and survey analyses are described in respective.
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Table of Contents
Chapter 1:
INTRODUCTION
1.1 General Introduction
1.2 Objectives of Project
1.3 Industry Profile
Chapter 2:
PROFILE OF THE ORGANISATION: ITC Ltd.
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2.1 Establishment
2.2 Growth and Diversification
2.3 Business Portfolio
Chapter 3:
STUDY OF THE RESEARCH PROBLEM:
3.1 Statement of research objective
3.2 Research Design & Methodology
3.3 Research Instrument
3.4 Classification of Data
Table of Contents
Contd…
STUDY OF THE RESEARCH PROBLEM:
3.4 Classification of Data
3.5 Period of study
3.6 Focused brand
3.7 Research Study
3.8 Market for research study
3.9 Approach towards objective accomplishment
Chapter 4:
DATA COLLECTION AND ANALYSIS OF RESEARCH
PROBLEM
4.1 Number of outlets surveyed within Various Markets
4.2 Procedure towards attainment of objectives
Steps undertaken to achieve objective 1
Steps undertaken to achieve objective 2
Steps undertaken to achieve objective 3
Steps undertaken to achieve objective 4
Steps undertaken to achieve objective 5
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4.3 Summary of other findings
4.4 Recommendation & conclusions
4.5 Bibliography & Appendix
Dr. Gaur Hari Singhania Institute of Management Research
INTRODUCTION
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Chapter.1 Introduction
1.1 GENERAL INTRODUCTION
The project purports to decipher the preference of shopkeeper to company’s
product based on the analysis of the study of Kanpur market, which was done
on the basis of presence of company’s product in comparison to competitors
product, parameter like price paid for annual the display, service, and
promotional schemes etc. The different comparative companies of personal
care products were Hindustan Unilever, P&G, Garnier, Dabur .The sample
unit was the outlets of Kanpur.
With a well define research problem, a study was started to ascertain the
variations and conditions of the existing sales of personal care products. The
overall objective of the study was to analyze the annual display outlets of the
company to analyze the success, marketability and future growth prospects of
personal care products of ITC. The data was collected and analyzed to obtain
conclusions. This report carries an introduction of the company profile, detail
of the methodology followed detailed data analysis and the results so obtained
with the variety of graphs along with given.
1.2: INDUSTRY PROFILE:
The Personal care industry has taken rapid strides in the last few years,
moving towards premium products incorporating specialty ingredients in
their formulation.
From soaps and shampoos in the morning to the overnight repair face
creams, from the sunscreen products in summers to moisturizing lotions in
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winters; personal care products literally touch our daily lives. The personal
care products we use are in some measure the signature of our lifestyles
and standards of living.
Indian view:
Personal care category in India is valued at Rs 54.6 billion. An average
Indian spends 8% of his income on personal care products. Personal
care mainly consists of Hair Care, Skin Care, Oral Care, Personal Wash
(Soaps), Cosmetic and Toiletries, Feminine Hygiene.
Till 2002-2003, Personal care products, except those in oral care category,
were regarded as luxury items, and attracted a high excise duty of 120%.
But the taxation reforms in India after 1991 have lowered the excise duty
rates that make these products more affordable. It is divided into two
segments:
The premium segment
The popular segment
The premium segment caters mainly to urban high class and upper middle
class, and is more brands conscious and less price sensitive. The popular
segment caters to mass segments in urban and rural markets; prices here
are around 40% of the premium segment prices.
Personal care (Global view)
The personal care industry had an excellent growth rate in all the major
markets of the world in 2005-2006. Since the past few years, people have
become more conscious about their appearance and look, leading to a huge
demand for these products in the whole world. New products are launched
by the leading brands to attract consumers. The trends in all the leading
personal care markets show that this industry is showing a massive potential
for growth. The women’s beauty industry is growing at rate of approximately
USD 202.254 billion every year where as the global market for cosmetics
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alone USD 30.33 billion. The global personal care products industry is
growing at a very rapid pace; some of the factors responsible are:
Rise in consumer spending power,
Increased demand due to people consciousness,
Key demographic factors,
Entry of herbal and organic products,
Lifestyle and climactic changes, and
Massive advertising and promotion strategy
“ORGANIZATION”
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Chapter 2: Profile Of the Organization:
ITC Ltd
2.1 Establishment:
Incorporated on 24 August 1910 as the Imperial Tobacco Company of India
Limited, the company's name was changed to ITC Limited in 1974. Rated
among the 'World's Best Big Companies' by Forbes magazine, ITC ranks
thirdon all major profit parameters among India's private sector corporations.
ITC employs over 20,000 people at more than 60 locations across India. It
has a turnover of $3 billion.
2.2 Growth and Diversification:
ITC is one of India's foremost private sector companies with a market
capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75
billion.
ITC is rated among the World's Best Big Companies, Asia's 'Feb 50' and the
World's Most Reputable Companies by Forbes magazine, among India's
Most
Respected Companies by Business World and among India's Most Valuable
companies by Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands’ in a study conducted by Brand Finance and
published by the Economic Times.
2.3 Business Portfolio:
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ITC has a diversified presence in Cigarettes, Hotels, Paperboards and
Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Personal Care, Stationery and
Safety, as one of India's most valuable and respected corporations, ITC is
widely perceived to be dedicatedly nation-oriented. Chairman Y C
Deveshwar calls this source of inspiration "a commitment beyond the
market". ITC's diversified status originates from its corporate strategy
aimed at creating multiple drivers of growth anchored on its time-tested core
competencies unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service
skills in hoteliering. Over time, the strategic forays into new businesses are
expected to garner a significant share of these emerging high-growth
markets in India.
ITC employs over 21,000 people at more than 60 locations across India.
The
Company continuously endeavors to enhance its wealth generating
capabilities in a globalizing environment to consistently reward more
than 3, 88,000 shareholders, fulfill the aspirations of its stakeholders and
meet societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring
Value. For the nation. For the Shareholder.
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Essenza di
willsFiama di wills
Vivel Di Wills
Superia
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“
Study of selected “Research Problem”
3.1 Statement of research objective:
All companies are having their own planning and business strategies but the
company who is having the best, is the most successful company among its
competitors. So the company can easily get success among its competitors
by applying best effective marketing strategies.
“STUDY OF
RESEARCH
PROBLEM”
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1) PCP Stock movement from the outlets of ITC Vis a Vis to
Competition
2) Role of Beauty advisors in influencing of Consumer during the
purchase.
3) Visibility solutions at these Outlets.
4) DS productivity at these Outlets.
5) Distribution model adopted by competition and ITC in these Outlets.
6) Trade Inputs by competition and ITC at these Outlets.
3.2 Research Design & Methodology:
Research design is the basic framework which provides guidelines
for the rest of research process. It specifies the methods for data
collection and data analysis. . A good design is often characterized by
adjectives like flexible, appropriate, efficient, and economical and so on. The
design appropriate for this research is DISCRIPTIVE RESEARCH WITH A
HELP OF A SCHEDULE. Descriptive research includes surveys, fact-
findings enquiries of different kinds. The major purpose of this research is
description of the state of affairs, as it exists at present.
3.3 Research Instrument:
SAMPLING PLANDr. Gaur Hari Singhania Institute of Management Research
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3.4 Classification of Data: I have classified the data into two
specific types:
Primary source: Secondary
source:
1. Interview. 1. Internet
2. Filling up of schedule.
2.Magazines
3. Observation.
4. Verbal Communication
3.5 Period of study:
The study is carried out for a period of 30 days. It commenced on 20th
April
2010 and completed on 20th
June 2010.
3.6 Focused brand:
Fiama di wills.
Vivel di wills.
Sampling Area- Kanpur
Sampl e
Segment at i on- On
the basis of Schedule
Sampl i ng Met hod-
Simple Random
Sample size-
150
Sample Unit -
Shopping outlets
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Vivel.
Superia.
3.7 Research Study: To analyze the contribution of both the chemist
and the cosmetic outlets, I have undertaken a study of 17 major markets of
Kanpur, this was done by projecting the figures on the schedules, while
making a direct contact with 150 outlet owners, spread across these major
markets of Kanpur. Hence, the whole process was based on the random
sampling technique. My report basically involves a step by step process of
accessing the product potential across 17 major zones in a formal respective
manner. For This I will first of all throw light on the areas where I underwent
this survey study.
3.8 Market for research study:
Gumti No. 5 Naveen Market
Arya Nagar Chaman Ganj
Vikas Nagar Bekan Ganj
Gwaltoli Pandu Nagar
Kakadeo Azad Nagar
P.Road Lal Bangla
Sheshamau Kidwai Nagar
Khalasi line Govind Nagar
3.9 Approach towards objective accomplishment:
PersonalCare Products stock Movement inVariousoutlets of ITC
vis a vis to its competitors: This basically involves the following:
Projecting the Average Monthly Stock of the Product as per the
schedule
Projecting the oldest manufacturing date, in order to analyze the
stock movement, along with its frequent sale and purchase.
Projecting the main stock carrying unit and the main variant of the
brand required, to get an idea of the customer demand and
preference for different variants of products.
Role of Beauty advisors ininfluencing customers:
Key role of promoter’s presence within various outlets.
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Knowledge regarding company’s product, various schemes and
offers.
Ability to influence customers, by observing the customer category
and
preference.
Keeping a regular Track Record of the customers visit in the outlet
by
maintaining a record tool. For E.g. Record Book
Visibility SolutionsAt these outlets:
This basically deals with Visual merchandising effectiveness at
various
outlets.
Display awareness in customers.
Influence of display and visibility.
Need of display in various outlets and the role of owners in
working out display facility within their outlets.
Salesmen Productivity at these outlets: This basically deals
with
Number of visits if the salesmen to the designated outlets.
The number of outlets covered by the salesmen within the market
area.
Total salesmen holding capacity of the agency dealers.
The working pattern of the Salesmen within agency.
Distribution Network of ITC to these outlets and the
competitors;
Study of distribution network of ITC via flow chart.
Study of distribution network of HUL via flow chart and
emphasizing on various positive points.
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4.1 Number of outlets surveyed within Various
Markets:
Market Area
Surveyed
No. of markets
Surveyed
Dr. Gaur Hari Singhania Institute of Management Research
“DATA
COLLECTION AND
ANALYSIS”
Dr. Gaur Hari Singhania Institute of Management Research
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Gumti No. 5 10
Arya Nagar 10
Vikas Nagar 9
Gwaltoli & Naveen Market 10
Kalyanpur 10
P.Road, Sheshamau & Khalasi
line
23
Pandu Nagar & Kakadeo 9
Chaman Ganj & Bekan Ganj 18
Lal Bangla 14
Kidwai Nagar 18
Govind Nagar 20
4.2 Procedure towards attainment of objectives:
Steps undertaken to achieve “OBJECTIVE 1” is as follows
For analyzing the PCP stock movement, in the outlets of 17 markets,
an
analysis of each and every market is taken into consideration.
For every market, if 10-15 shops are undertaken for research study, then
projection of
stock is done within Data Excel sheet, (See Appendix) while the analysis
of every market
for various personal care division has been done.
Since the process involved Random Sampling Technique hence, to avoid
any type of bias,
the outlets are selected on the basis of their:
Credibility in the market place
Time period of their existence
Daily Customer Visits
Potential in The Market
Availability of the company and the competitor’s brand.
The Data Analysis has been divided into two Categories:
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Higher Potential Markets – The graphical analysis consist of
the survey of
market with maximum number of visits from customers
throughout Kanpur.
Gumti No.5
Arya Nagar
Naveen Market
Kidwai Nagar
Govind Nagar
Lal Bangla
Average Potential Markets- The graphical analysis consists
of the survey of market having a medium potential in
comparison to above said markets.
Vikas Nagar
Gwaltoli
P.Road
Azad Nagar & Nawabganj
Khalasi Line
Chaman Ganj & Bekan Ganj
Market Category Undertaken – Higher Potential
Markets
No. of outlets Visited under higher potential markets – Eighty
two
Markets name – Mentioned above
Outlets Taken into consideration: Out of 82 outlets surveyed
under high potential category 50 major outlets defining the potential of
personal care division in different markets are taken into consideration, they
are as follows:
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NaveenMarket/Gwaltoli
1 Kwality Stores 1 New Kamal Stores 1 Kohli General Stores
2 Gulati Provision Stores 2 Bhag Chand Stores 2 Hazari Lal & Sons
3 Arora general stores 3 Tejumal Stores 3 Anand Stores
4 Mool Chand & Sons 4 Dileep Chand Stores 4 Modern Stores
5 Gulati Provision Stores 5 Modern Stores 5 Om General Stores
1 Shree Sidhi Vinayak 1 Medicine centre 1 Raj Button stores
2 Santosh Fancy Stores 2 Bajrang Provision Stores 2 Khanna Kirana Stores
3 Novelty Stores 3 Kishore Brothers 3 Shree Haryash Stores
4 Anupam General Stores 4 Chandra Prov Stores 4 Vishnu Prov. Stores
5 Rakesh Stores 5 Anand Stores 5 Mahesh Prov. Stores
6 Rinkoo Stores 6 Sanjay Prov. Store 6 Vishal Prov. Stores
7 Kishan General Stores 7 Maa Durga Prov. St. 7 Maansi Cosmetic stores
8 Ekta Prov. Stores 8 Balaji Cosmetics 8 Bhagat Ji stores
9 Chaurasia Stores 9 Agarwal Stores 9 Neha Traders
10 Sharma Stores 10 Pandey Prov. Stores 10 Kunal Chemist
Lal Bangla Kidwai Nagar Govind Nagar
Outlets Taken Into Consideration
Gumti No.5 Arya Nagar
Graphical Study:
For Hair Care & Body Care Division : „For High Potential Market‟
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Market Category Undertaken – Average Potential
Markets
No. of outlets Visited under Average Potential markets – Sixty
eight
Markets name – Already mentioned
0
10
20
30
40
50
60
70
80
Shampoo Bottle
(200ml, 100ml)
Average Monthly Sales Average Monthly Stock
55
35
30
35
25
80
60
75
"Soaps" Average Monthly Sales
115gm 125gm 75 gm
Superia
Godrej
No.1
Santoor Breeze
100gm 35
90 gm 38
75 gm 22 25
0
5
10
15
20
25
30
35
40
"Soaps" Average monthly sales
Analysis of Premium Segment
Soaps
Analysis of Lower Segment
Soaps
Analysis:
The analysis made in the markets
above shows that on an average the
sales of Fiama shampoo is competitive
to Sunsilk, Garnier & Dove within
these markets. Apart From this if we
concentrate towards the soap division
then Lux is in the top most priority.
Though the sales of FDW is on an
average much better , but still
Launching of More no. of SKU’s
under premium category soaps like
FDW within competitive prices, to
cater to all segments of people, would
probably enhance the sales more.
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Outlets Taken into consideration: Out of 68 outlets surveyed
under high potential category 30 major outlets defining the potential of
personal care division in different markets are taken into consideration, they
are as follows:
1 Raj kirana store 1 jayanti provision store 1 Umageneral stores
2 Parvej general stores 2 Paras general Store 2 Naveen stores
3 Arshad general stores 3 Rajeev Dept. Store 3 Atul general stores
4 Raees General store 4 Gupta bandhu store 4 Model stores
5 Bhaiya general stores 5 Shanker General Stores 5 Om General Stores
6 Bholu kirana store
1 Maa Shakti medical store 1 Ganga Medical stores 1 Mahesh stores
2 Sanjay Medical Store 2 Sevak stores 2 Pratap general stores
3 Alok Medical Store 3 Bholu Kirana Stores 3 Jai Bros cosmetics
4 Kherapati medical store 4 Sanjay stores 4 Girlfriend shop
5 Ritisha General store 5 Deepak stores 5 New pandey
6 Vandana fancies
Kalyanpur Azad Nagar/Nawabganj Sheshamau
Outlets Taken Into Consideration
Vikas NagarChaman Ganj P.Road /Khalasi line
Graphical Study:
For Hair Care & Body Care Division : „For Average Potential Market‟
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Steps undertaken to achieve “OBJECTIVE 2” is as follows
Beauty Advisors, play a very crucial role in Product
promotion within the market.
In Kanpur, there are Three Major Markets, which shows the existence of
promoters of ITC, they are as follows:
0
10
20
30
40
50
60
Shampoo Bottle
(200ml, 100ml)
Average Monthly Sales Average Monthly Stock
30
25
18
1515
50
38
40
"Soaps" Average Monthly Sales
115gm 125gm 75 gm
Superia
Godrej
No.1
Santoor Breeze
100gm 42
90 gm 45
75 gm 35 28
0
5
10
15
20
25
30
35
40
45
50
"Soaps" Average monthly sales
Dr. Gaur Hari Singhania Institute of Management Research
Analysis of Premium Segment
Soaps
Analysis of Lower Segment
Soaps
Analysis:
The analysis made in this market
consist of both the chemist & the
cosmetics outlets. As per the
observation, the market has an
optimum sale for Shampoo division in
comparison to competitors. Vivel
brand both under shampoo & Soap
division requires many efforts to be
called upon so as to enhance the sales.
The best way to handle this is launch
of more competitive schemes &offers
under this category. Under toilet Soap
category Superia has shown a very
positive response
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1) Place- Kakadeo; Location- Food Bazaar
2) Place- Arya Nagar; Location- New Kamal Stores & Tejumal Stores
3) Place-Naveen Market; Location- Kohli General Stores
Observing & Understanding the Role of beauty Advisors
within these outlets:
After careful observation of the company promoters within each of the above
said outlets.
I carved out the responsibilities that are actually undertaken by these
promoters:
1) Proper entertaining the customers, like the one provided in New Kamal
& Hazari Lal &
Sons. Where I observed the Promoters tendency to gain a quick Insight of
customer
preference and taste and thereby responding to it was much better.
2) Maintaining a proper cooperating and good relationship with other
company promoters and
the outlet owner.
3) The Promoters in every above said outlet possessed a tendency to
maintain healthy
relationship with their customer, by an efficient way of dealing with the
customers.
4) The most important part is that the promoters apart from having a
healthy knowledge
regarding company’s product, also possessed knowledge regarding
the company’s product
that is more suitable to the customer, along with that two of the
promoters I met were
having a deep sense of knowledge regarding skin Products.
5) I observed these promoters, via their knowledge power that they were
much efficient in
entertaining customers and improving sales.
Pictorial view of Promoters of ITC in Well Known Outlets of Kanpur:
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Pictorial view of Product Display and promoter of Competitor in an Outlet:
Dr. Gaur Hari Singhania Institute of Management Research
Promoter
from New
Kamal
Stores,
Arya Nagar
Promoter from
New Tejumal
Stores,
Arya Nagar
Kanpur
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Dr. Gaur Hari Singhania Institute of Management Research
“I have shown
this picture,
to deliver an
idea of
Presenting
company‟s
product.
As the Picture
shows the
competitor
product
display along
with
promoter, the
point to note
is the product
display
presentation,
that itself is
capable of
luring the
customer.
Hence,
applying this
idea may come
to be fruitful
for the
company.”
Promoter from
New Kamal
Stores,
Arya Nagar
Kanpur
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Some other points to take into consideration:
For being a successful promoter, also includes you making sure your
department is completely put together. This includes making sure you order
everything you need to keep your department fully stocked, making sure you
have eye catching displays, and keep your products clean and undamaged.
No one wants to buy a dusty shampoo bottle or a defective pump hairspray.
Every promoter of the company should provide an outstanding service to
every customer that comes into their department to be able to establish
regular customers and build their popularity among them. If customers feel
promoters are genuine and knowledgeable about the cosmetics they are
promoting, they will keep coming back to only those promoters plus they will
tell their friends about the promoter and this will enhance their name and
reputation Always make the customer top priority, without them; promoters
wouldn't have a job in the first place.
Promoters should periodically attend vendor training seminars and
preserve the highest level of product knowledge. Along with that they should
keep up-to-date client information for the sales drive. The same has been
followed here by ITC promoters in there outlets, where they were provided a
format for keeping customer regular information.
Promoters should create and conserve strong partnership with vendor for
supporting business. Along with that they should held makeovers for
customers.
Use knowledge of store products and services to build sales. Know and
appropriately execute all systems and procedures to make sure a fast and
efficient transaction.
Follow operating procedures of special department. Understand and keep
department standards.
Steps undertaken to achieve “OBJECTIVE 3” is as follows
The Role of DS is very crucial in reaching the market depths. Not only,
providing good sales of company’s product, there are still some other roles
played by the company DS in attaining credibility within market.
Understanding the working of DS:
There are three agencies in Kanpur looking the pams division of ITC. They
are as follows”:
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Shree Tirupati Consortium
Shree Agency
BR Agency
My major time periods have been spend under Shree Tirupati consortium,
where I gained an insight of the working of the agency staff. A major portion
was composed of company DS working under Manager. The daily working
started by assigning areas or predetermined areas as per the schedule to
the Salesman.
These salesmen visited their proper sight, and underwent their duty of taking
orders and receipts. Apart from this there were certain points that I analyzed
while my visit with the DS to these shops:
Proper communication with the owners.
Most of the DS have build a very healthy relationship with the outlet
owners. This could easily be seen by their dealing with each other.
The company DS at points even assisted in teaching consumer
schemes.
I was even present during the launch of “Vivel Deo”- This soap has
created a great response on the first day of its launch. The positive
point was that the company even provided a major display for this
particular product, and there was a great demand for Vivel Deo as well.
At this point I would like to consider the role of company DS in the
promotional launch.
The company usually provides a credit period of 7 days, but to
maintain harmonious relationship, this period was even extended. This
was under the whole responsibility of the DS.
The work of DS appointed for Arya Nagar and Kalyanpur area, was
motivating.
Points To Consider: There is no doubt that the agency DS has been
working a lot to achieve a timely target and to improve sales, which could
itself be seen from the PCP stock movement and outlet owners word of
mouth, still I would like to Focus on One question, I asked form most of the
shopkeepers:
Question: Which Company services in the form of Relationship
maintenance, Timely visits, cooperation etc would you rank high?
Answer: PANTENE (P&G) because, (1) Company policies and
norms are very satisfactory in nature. (2) Hardly, there are any
complains of no fulfillment of stock.
(3) The display policy of company is also nice. (4) The company
persons entertain visits.
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(5) The return of outdated product, takes soon and even money is
returned back at times.
(6) The fulfillment of stock takes place in less than 24 hrs.
If we throw light on the above statements, then we will come to know that,
the competitors are in much better position, even though we are providing
the best via DS.
Now the DS faces adverse conditions when they are not able to fulfill stock,
hence they are considered as the major cause of aggression and this itself,
creates negative view for both the DS and the company as well. OUT OF
STOCK was the major problem reported for ITC products.
Second, big thing noticed was less number of DS reported for Shree agency,
hence on my visits to markets under Shree agency. Shopkeepers even
complained for irregular visits from the company. If we makeover these
improvements, then we will soon replace our competitors.
Steps undertaken to achieve “OBJECTIVE 4” is as follows:
Visibility Solutions basically deals with the availability of:
Availability of Display tools in the outlets in the form of Display
windows, Metal Tablets, Show cards, Shelf frame, Product Holders,
Posters, Danglers, Hangers etc.
Visual Merchandising.
Participation of salesmen in providing display outlets to various outlets.
Role of company, in providing display & visibility solutions.
Product visibility an essential requirement within various
outlets:
1) Displays or advertising alone may not increase product sales
substantially. However, combining advertising and display into
an integrated promotional campaign will usually be more
effective.
2) An effective way of attracting customers to a store is
by having good displays, both exterior and interior. A
customer will be attracted to a display within three to
eight seconds, which is the time a customer spends to
determine interest in a product.
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3) The purpose of interior display is to develop desire for the merchandise,
show what is
available, and encourage both impulse and planned buying. Three major
goals of a store
should be to motivate the customer to spend money, project the image of
the store and
keep expenses to a minimum.
Points Noted while observing the visibility solutions and
display
Frequency of company’s product within various
outlets
“ANALYSIS”:
Display availability was found better in
various outlets, especially in Arya Nagar,
Kakadeo and Naveen market outlets.
Most of the outlets within Kakadeo
Sheshamau, P.road and others reported an
Improvement of company’s product sales
due to display presentation and closure results.
An Increased consumer appeal of
product displays was also noted in various
market area.
Better brand awareness among customers and
Outlet owners was reported in various shops
due to consistency in display.
Improved efficiency of shelf space allocations
especially in Pandu Nagar outlets.
Improved financial performance of assortments
Faster more accurate replenishments
Quicker inventory resets was needed, especially
after the launch of Vivel deo.
Dr. Gaur Hari Singhania Institute of Management Research
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Points to consider, “to make improvements”:
Payment scheme for the annual display outlets is not so attractive
in comparison to other major FMCG companies.
No clear communication, retailers are not aware of the extra 4% discount
given to them for
the display.
Displays not available at most spots where sales for FMCG goods are
high. Like Company
Bagh, Azad Nagar etc.
No proper tracking on merchandising, reported in various outlets.
It was found that the low profile respondents wants fixed gift as a part of
promotional
schemes and high profile respondents want scratch cards, this motivates
them more to sell
any product.
Rate cutting being also a factor for low sales at different areas of Kanpur.
Communication gap between company and sales man.
E.g. Hindustan unilever directly reaches there salesman and educates
them about new
offers and schemes but ITC does not do so. ITC only reaches to (wd) and
tells them about
schemes and offers and (wd) manipulates the information and then
informs the salesman.
Apart From this, a window or display area with too little merchandise
makes a store
appear to be going out of business or indicates to customer that the
establishment is less
than prosperous. Hence, Out of stock report has been attained from a
number of outlets.
Generally the lack of merchandise on the display is that the
merchandise has been sold and has not been replaced. This gives a
negative picture to consumers.
Some suggestions to bring a “Change”:Dr. Gaur Hari Singhania Institute of Management Research
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Talking about visibility, then I would prefer company to penetrate more
deeper into the
market, by offering display at maximum possible locations. For e.g. by my
analysis, I
observed Proctor & Gamble , display frequency for personal care division
was maximum.
The outlet owners at various market areas, when asked to Company
services in the form
of display and visibility, ranked Proctor & Gamble at the top in comparison
to HUL,
prevailing as market leader.
Most outlets owner also emphasized on the fact that, most companies
have been providing
2-3% commission, and this factor lures them for pressure selling of that
company’s
product. Hence, the outlet owners demanded some type of commission
and promised for
better sales results.
Apart from this, the company is right now offering 4% extra on windows to
the retailers
instead of giving this offer the company should offer the retailer a discount
of
4%+2%+(1%cash discount).
: 1000*4%=40
40*2%=.8
And 1% cash discount can be given if the payment is delivered within 12
days of purchase.
The company can try to introduce SMS greeting system to make the
retailers aware about different schemes and offers and they can also
send them greetings on different occasions and festivals.
The company should introduce targets for the retailers and they can be
paid accordingly or can be awarded power points.
Dr. Gaur Hari Singhania Institute of Management Research
“Visibility of
PCP good‟s , in a
systematic way.
Arya Nagar,
Kanpur
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“Visibility of
PCP good‟s , in a
systematic way.
Gwaltoli
Kanpur
“Visibility of PCP good‟s, at the
centre back, but not in view to the
customers directly, due to hindrance.
Vikas Nagar, Kanpur
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Steps undertaken to achieve “OBJECTIVE 5” is as follows
Distribution Model adopted at these outlets by ITC-
(SUPPLY CHAIN)
FACTORY/HUB
K0 K2
Wholesale service provider
(Wsp)
K1
K3
Wholesale dealer (WD)
K4
Wholesalers’ (WD) Retail Stockiest
(sip)
K0 - factory to market.
K1 – factory to WD.
K2 – factory to wsp.
K3 – wsp to WD.
K4 – WD to market.
Distribution Model adopted at the Outlets by Competitors:Dr. Gaur Hari Singhania Institute of Management Research
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Dr. Gaur Hari Singhania Institute of Management Research
Hindustan unilevers distribution network is recognized as one of its key strengths. The product
first manufactured is first bought to “JIT‟ Depot from the factory. Then these products are
delivered to the redistribution stockiest according to the order placed by them, this is done through
permanent dispatch plan. Then this stock is send to either retailers or wholesalers, according to the
channel followed by them. And from thereon it is dispatched to consumers.
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HUL has followed a strategy of building its distribution channels in a
transitional manner
The company follows the concept of “Redistribution Stockiest” (RS) who
replaced the REGISTERED WHOLESALERSs. The REDISTRIBUTION
STOCKIST was required to provide the distribution units to the company
salesman. The REDISTRIBUTION STOCKIST financed his stocks and
provided warehousing facilities to store them. The REDISTRIBUTION
STOCKIST also undertook demand stimulation activities on behalf of the
company.
The second characteristic of this period was the changes brought in as the
company realized that the REDISTRIBUTION STOCKIST would be able to
provide customer service only if he was serviced well. This knowledge led to
the establishment of the “Company Depots” system. This system helped in
transshipment, bulk breaking, and acted as a stock point to minimize stock-
outs at the REDISTRIBUTION STOCKIST level.
In the recent past, .significant change has been the replacement of the
Company Depot by a system of third party; the Carrying and Forwarding
Agents (C&FAs). The C&FAs act as buffer stock-points to ensure that stock-
outs did not take place. The C&FA system has also resulted in cost savings
in terms of direct transportation and reduced time lag in delivery. The most
important benefit has been improved customer service to the
REDISTRIBUTION STOCKIST.
Summary of the other findings:
Along with the above analysis and observation of the market for FMCG
goods, I also came across to certain schemes that are been provided by ITC
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and its competitors, This led me to throw light on other aspects of the
business as well. The Various schemes or offers are as follows”:
HUL covers a huge market of PCP division. HUL Ltd. & other companies
give consumer offer, promo offer. They give different offer on different
products, when customer (shopkeeper) sale is increasing. Some
companies like Godrej No. 1 gives 16% on CFC of 40 gm. pack. The
following figure shows HUL scheme or Offers :
Godrej consumer products ltd. makes only soaps and the consumer offers
are as follows;
Some offers from ITC are as follows:
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What can be seen from the above data is that, like other
companies ITC too have been providing discount offers. But the
offers are very limited in comparison to others. To penetrate
deeper into the market, more strategic skills in the form of cash and
credit discounts to various outlets owners is needed.
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“Recommendations & Conclusions”:
1. All theories and concepts as studied till now got a practical application,
by analyzing various aspects of the objectives undertaken to study.
2. Providing timely stock and meeting the essential requirement with time,
is very important to gain credibility in the market place.
3. This experience also enabled me to understand the various pros &
cons associated with the marketing segment of PCP goods, it also
inculcated within me a deep knowledge regarding various company
product’s and what acts and skills are required to attain a proficiency.
4. As I was floated for the first time in the market, it shifted with tremendous
confidence inside me.
5. It did to same extent help in developing a better understanding different
marketing forgone.
6. It brings with in a sense of responsibility and passion to work for the
organization.
7. I had an opportunity to meet professionals placed very well within the
industry.
8. The study undertaken by me, is time constrained that is limited upto 30
days of period.
9. All the reporting regarding PCP stock movement has been done on an
average basis, hence, sales may even fluctuate. But may not vary much.
10. It is possible that some potential source might have remained entrapped
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“BIBLIOGRAPHY”
Famous Works of:
1) Marketing Management – Philip Kotler
2) Marketing methodology – C.R. Kothari
3) Marketing Research – Boyd
Magazines & Journal study:
1) Business Today
2) Market Compass
3) India Today
Websites surfing:
www.google.com
www.itcportal.com
www.wikepedia.com
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“APPENDIX”
“HYPERLINK”
ST_ Chemist Final1 (Autosaved).xlsx