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1 JAGAN INSTITUTE OF MANAGEMENT STUDIES STUDY OF SUPPLY CHAIN MANAGEMENT AND CONSUMER BEHAVIOUR FOR KARA FACE WIPES, BABY WIPES AND PRIM GRASIM INDUSTRIES LIMITED (ADITYA BIRLA GROUP) BY SHAHRUKH HAMEED ROLL NO. FC-12159 PGDM BATCH 2012-14 INDUSTRY GUIDE FACULTY GUIDE Mr. Divyankar Goel Mrs. Deepti kakar Regional Sales Manager (North) Faculty Grasim Industries & Birla Cellulose JIMS, Rohini JAGAN INSTITUTE OF MANAGEMENT STUDIES JIMS, ROHINI

SUPPLY CHAIN MANAGEMENT AND CONSUMER BEHAVIOUR FOR KARA FACE WIPES, BABY WIPES AND PRIM- ADITYA BIRLA GROUP

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Page 1: SUPPLY CHAIN MANAGEMENT AND CONSUMER BEHAVIOUR FOR KARA FACE WIPES, BABY WIPES AND PRIM- ADITYA BIRLA GROUP

1 JAGAN INSTITUTE OF MANAGEMENT STUDIES

STUDY OF SUPPLY CHAIN MANAGEMENT AND CONSUMER BEHAVIOUR

FOR KARA FACE WIPES, BABY WIPES AND PRIM

GRASIM INDUSTRIES LIMITED

(ADITYA BIRLA GROUP)

BY

SHAHRUKH HAMEED

ROLL NO. FC-12159

PGDM BATCH 2012-14

INDUSTRY GUIDE FACULTY GUIDE

Mr. Divyankar Goel Mrs. Deepti kakar

Regional Sales Manager (North) Faculty

Grasim Industries & Birla Cellulose JIMS, Rohini

JAGAN INSTITUTE OF MANAGEMENT STUDIES

JIMS, ROHINI

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2 JAGAN INSTITUTE OF MANAGEMENT STUDIES

DECLARATION

I, Shahrukh Hameed, student of PGDM from Jagan Institute of Management Studies, JIMS,

Rohini hereby declare that I have completed summer internship on “study of supply chain

management and consumer behaviour for kara face wipes, baby wipes and prim Aditya Birla

Group - Grasim” as part of the course requirement.

I, further declare that the information presented in this project is true and original to the best

of my knowledge.

Date: SHAHRUKH HAMEED

Place: New Delhi Roll No: FC-12159

PGDM

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3 JAGAN INSTITUTE OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project work done on “study of supply chain management and

consumer behaviour for kara face wipes, baby wipes and prim - grasim industries limited

(aditya birla group)” is an original work carried out by Mr. Shahrukh Hameed, under my

supervision and guidance. The project report is submitted towards the partial fulfillment of

two – year, full time Post Graduate Diploma in Management.

This work has not been submitted anywhere else for any other degree/diploma. The work was

carried out from 18-to 22-06-2013 in Aditya Birla Group.

Name & Sign of Industry Guide

Mr. Divyankar Goel

Date: Name & Sign of Faculty

Student’s Name and Sign

Roll No. FC-12159

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4 JAGAN INSTITUTE OF MANAGEMENT STUDIES

ACKNOWLEDGEMENT

This project has been a great learning experience for me & I would like to express my sincere

gratitude to all the people who have guided me through the project and without their valuable

guidance and suggestions this project would not have been completely successful.

I owe enormous intellectual debt towards my industry guide, Mr. Divyankar Goel, Regional

Sales Manager, North, Grasim Industries & Birla Cellulose, & Faculty guide, Mrs. Deepti

Kakar, faculty, JIMS, Rohini, for their continuous support & cooperation throughout my

project without which the present work would not have been possible.

I also want to give special thanks to Mr. Inderpreet Sodhi, Area Sales Manager, Chandigharh,

Aditya Birla Group - Grasim Industries & Birla Cellulose for their continuous guidance,

support & cooperation during the whole tenure.

I would like to thank all the respondents whom I interacted during my project & all the

retailers for their cooperation without whom I may not have been able to complete it.

SHAHRUKH HAMEED

PGDM-2012-14

JIMS, Rohini

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5 JAGAN INSTITUTE OF MANAGEMENT STUDIES

PREFACE

As per the direction of our course structure, we the students of Pgdm, Jims, Rohini have to

undergo summer training with the different commercial enterprises of the country. I have

undergone training in Aditya Birla group-Grasim. I made my project on “supply chain

management and consumer behaviour for kara face wipes, baby wipes and prim of aditya

birla group in jammu region”.

This report is a record and testimony of the training. The objective of the project is to study

the market condition of Jammu and response of customer to Kara face wipes, Kara baby

wipes and prim.

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TABLE OF CONTENT

Chapter No. Subject Page No.

Chapter 1 Executive Summary 07

Chapter 2 Industry Profile 10

Chapter 3 Company’s Profile 13

3.1. Aditya Birla group 14

3.2. Grasim Industry 18

3.3. Birla Cellulose 22

Chapter 4 Product Profile 25

4.1. Kara Skin Care Wipes 26

4.2. Kara Baby Care Wipes 30

4.3. Prim Kitchen Wipes 32

Chapter 5 Concept 33

Chapter 6 Research Design & Methodology 40

Chapter 7 Data Collection 44

Chapter 8 SWOT Analysis 46

Chapter 9 Data analysis & interpretation 51

Chapter 10 Conclusion 69

Chapter 11 Recommendations 71

Annexure 76

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CHAPTER 1

EXECUTIVE SUMMARY

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1. EXECUTIVE SUMMARY

The objective of my study was to analyse the “consumer behaviour, supply chain

management and measures to increase sales of Kara face wipes, Kara baby wipes and prim ”

which helped me in understanding the both sides of the coin i.e. from company’s point of

view as well as the customer point of view. My area of operation was Jammu, Jammu and

Kashmir.

Grasim industries limited have come up with new division i.e. Consumer Product Division

and launched skin care wipes.

This report in a nut shell shows market condition and the competitors in market. It also

highlights:

Panoramic view of the skin care wipes market in Jammu.

The reason behind the current status of the market situation and the responsible features

of the brands that make them what they actually are.

Ways to challenge the market leader and cut the competition.

Strategies to overcome the present market leader by making amends in the present

processes.

Any how we don’t need focus on price but we need to strengthen our supply chain.

My profile channelized sale and marketing of Kara face wipes and Kara baby wipes in

Jammu. This training encompassed studying and analysing the customer buying pattern,

booking order from the retail shop and also doing the promotional activity of Kara face wipes

and Kara baby wipes and also adding new retail counters to our supply chain network. To

identify any hindrance in supply network, find its reason and taken steps to make it right,

send report to my senior and implement companies’ policies, making people aware of our

product, quality and usage and finding new avenue of sales like sales to hotels, restaurants,

institutions etc.

Consumers are extremely satisfied with Kara Face Wipes and their response is remarkable

thus, making it a leading brand in face wipes. The quality offered by Kara Face Wipes

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compared to other brands and its easy availability in retail stores makes Aditya Birla group

the market leader in face wipes.

But the performance of Baby Wipes is unsatisfactory, compared to the tough competition

from well-established veteran players in this market. A lot of work is needed in this section

for its improvement and promotion.

“Consumer behaviour is the behaviour of the consumer towards the various products, brands,

stimuli and etc. through its learning, perception, motivation and etc.”

In other words we can say that, it is a mental and emotional process along with the physical

activities of the people who purchase and consume goods and services to satisfy their needs.

Behaviour of the consumer easily gets influenced by family, environmental factors, friends,

peers, relatives, social and reference groups and etc.

The research work gives us an idea as to what difficulties Kara is facing in spite of being a

very good quality product. It gives a scope of improvement to rethink on some marketing

aspects like better discount slabs, refining target customers etc. The companies which have

showed positive interest can be reproached with better offers. Since the TV advertisement

campaign for Kara is gaining momentum, aggressive selling can be practiced to offer Kara.

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CHAPTER 2

INDUSTRY PROFILE

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1. INDUSTRY PROFILE

Disposable wipes have evolved into a global business concept generating more than $ 6

billion in sales a year. Achieving strong double-digit growth year after year, the category now

assumes a major role in the personal care market.

Spanning from make-up removal and deodorant wipes in personal care to floor and furniture

cleaning products in household care, disposable wipes have gradually expanded to offer a

wide range of new applications, replacing the traditional combination of cloth, cotton and

cleaning solution. Changes in trends in the wipes market have also been driven by new

product developments and the positive reception of new product applications by the

consumer.

The global market for wet wipes continues to grow, although it is important to be cognizant

of the challenges that will present great difficulties to many. Those companies that can

combine cutting edge technology with the development of new and innovative ideas will

survive in the long run. The wipes in India are generally made of Viscose and Spun lace.

Birla Cellulose manufactures 98% of the Viscose Staple Fibre in India, so it is poised to do

well against other local players as they would have to purchase VSF from it.

In the last 3 years there has been an explosion in the number and types of wipes available to

the consumer. From baby wipes and facial wipes to disinfecting wipes, posing as a much

better substitute than conventional cloth and liquids. In a fast paced world, these wipes are

designed for convenience, whether that is for your own personal use or to deal with the

unhygienic conditions for your family.

The disposable facial wet wipes market is estimated at Rs 8 crores. Kara holds a dominant

position in market with turnover of Rs. 4.5 crores thus capturing 56% of the market. However

the sector in India is currently fragmented and unorganized. Ginni filaments (Noida) also

hold a strong position in wet wipes market, though their product can’t be matched in terms of

quality of Kara.

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In the US and Europe, 6 to 10 per cent of the income is spent on disposable products. In

India, it is 0.0001 per cent. Worldwide, wet wipes are a $6-billion category, but in India, it’s

in a nascent category. It is considered as a lifestyle item and not an essential one, so it will

take a while before full potential is explored.

Consumer awareness about hygiene products increased as a result of increasing advertising,

price reductions and the launch of cheaper variants by manufacturers over the latter half of

the year.

Skin Care wipes also benefited due to the faster pace of life in cities and the rise in the

number of nuclear families and working women, who tend to rely more on disposable

products when working in the kitchen or whilst travelling outside of the home.

The leading market research agency Ksa Technopak conducted a market survey & discovered

that there is a huge untapped potential for wipes in India. According to the survey after Delhi

NCR, Chandigarh is the biggest market for cosmetics in North India

The disposable wipes market in India faces stiff competition from cheaper Chinese imports.

The Chinese wipes are not of good quality and can have adverse effects on skin.

However they capture the attention of price sensitive people. But with increasing

consciousness about quality, gradually people will shift to a better product like Kara

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CHAPTER 3

COMPANY’S PROFILE

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2. COMPANY’S PROFILE

2.1. ADITYA BIRLA GROUP

A US $40 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is

anchored by an extraordinary force of over 136,000 employees belonging to 42 different

nationalities. The Group has been ranked Number 4 in the global ‘Top Companies for

Leaders’ survey and ranked Number 1 in Asia Pacific for 2011. ‘Top Companies for Leaders’

is the most comprehensive study of organisational leadership in the world conducted by Aon

Hewitt, Fortune Magazine, and RBL (a strategic HR and Leadership Advisory firm).

Over 50 per cent of the Aditya Birla Group’s revenues flow from its overseas operations. The

Group operates in 36 countries – Australia, Austria, Bangladesh, Brazil, Canada, China,

Egypt, France, Germany, Hungary, India, Indonesia, Italy, Ivory Coast, Japan, Korea, Laos,

Luxembourg, Malaysia, Myanmar, Philippines, Poland, Russia, Singapore, South Africa,

Spain, Sri Lanka, Sweden, Switzerland, Tanzania, Thailand, Turkey, UAE, UK, USA, and

Vietnam.

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2.1.1. Aditya Birla Group – The Global Scenario

Around the world, Aditya Birla is known for:

A metals powerhouse, among the world’s most cost-efficient aluminium and copper

producers.

Hindalco-Novelis is the largest aluminium rolling company. It is one of the three

biggest producers of primary aluminium in Asia with the largest single location

copper smelter

No.1 in viscose staple fibre

No.1 in carbon black

The fourth-largest producer of insulators

The fifth-largest producer of acrylic fibre

Among the top 10 cement producers

Among the best energy-efficient fertiliser plants

The largest Indian MNC with manufacturing operations in the USA

2.1.2. Aditya Birla Group – The Indian Scenario

In India, here’s what we have accomplished:

The largest fashion (premium branded apparel) and lifestyle player

The second-largest manufacturer and largest exporter of viscose filament yarn

The largest producer in the chlor-alkali sector

Among the top three mobile telephony companies

A leading player in life insurance and asset management

Among the top two supermarket chains in the retail business

Among the top 6 BPO companies

The largest manufacturer of linen fabric

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success

does not come in the way of the need to keep learning afresh, to keep experimenting.

2.1.3. Aditya Birla Group – Beyond Business

Works in 3,000 villages

Reaches out to seven million people, annually, through the Aditya Birla Centre for

Community

Initiatives and Rural Development spearheaded by Mrs. Rajashree Birla

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Focuses on healthcare, education, sustainable livelihood, infrastructure and espousing

social reform in India, Brazil and Egypt, as well as Philippines, Thailand, Laos,

Indonesia, Korea and other Asian countries

2.1.4. Aditya Birla Group – In India:

The Aditya Birla Group runs 42 schools across India, providing quality education to

45,000children, including 18,000 needy students who receive free education. Merit

scholarships are givento an additional 8,500 children from the interiors.

The 18 hospitals run by the Aditya Birla Group tend to more than a million villagers.

In line with its commitment to sustainable development, the Aditya Birla Group has

partnered with Columbia University in establishing the Columbia Global Centre’s

Earth Institute in Mumbai.

The idea of embedding CSR as a way of life in organisations has led to the setting up

of the FICCI

- Aditya Birla CSR Centre for Excellence, in Delhi.

The Aditya Birla Group transcends the conventional barriers of business because we

believe it is our duty to facilitate inclusive growth.

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2.1.5. Vision and Values

Vision

To be a premium global conglomerate, with a clear focus on each of the businesses.

Mission

To deliver superior value to our customers, shareholders, employees and society at large

Integrity: Acting and taking decisions in a manner that is fair and honest. Following the

highest standards of professionalism and being recognised for doing so. Integrity for us

means not only financial and intellectual integrity, but encompasses all other forms as are

generally understood.

Commitment: On the foundation of Integrity, doing all that is needed to deliver value to all

stakeholders. In the process, being accountable for our own actions and decisions, those of

our team and those in the part of the organisation for which we are responsible.

Passion: An energetic, intuitive zeal that arises from emotional engagement with the

organisation that makes work joyful and inspires each one to give his or her best.A voluntary,

spontaneous and relentless pursuit of goals and objectives with the highest level of energy

and enthusiasm.

Seamlessness: Thinking and working together across functional groups, hierarchies,

businesses and geographies. Leveraging diverse competencies and perspectives to garner the

benefits of synergy while promoting organisational unity through sharing and collaborative

efforts.

Speed: Responding to internal and external customers with a sense of urgency. Continuously

striving to finish before deadlines and choosing the best

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2.2. GRASIM INDUSTRIES LTD

Grasim Industries Limited is an Aditya Birla Group company that started in 1948 and which

started as a textile manufacturer. Since then Grasim has successfully diversified into Viscose

Staple Fibre (VSF), cement, sponge iron and chemicals. It is the world’s second largest

producer of Viscose Rayon Fibre with about 21% market share. Textile and related products

contributes to 15% of the group turnover. Grasim is headquartered in Nagda, Madhya

Pradesh and also has a huge plant at Kharach, Gujarat.

2.2.1. Global Footsteps

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started in

1970; this was Aditya Birla Group’s first foray into international venture. Aditya Birla

incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon incorporated in

1974, this was the second company in Thailand, operating in Viscose Rayon Staple Fibre.

Century Textile Co. Ltd. Is taken over by Aditya Birla Group in 1974; this company is a

weaving and dyeing plant manufacturing and exporting variety of synthetic fabrics. PT

Sunrise Bhumi Textiles incorporated in 1979, it produces Yarn which is exported to over 30

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countries in 6 continents. P.T. Indo Bharat Rayon incorporated in 1980 produces Viscose

Staple Fibre in Indonesia to become a dominant player in domestic market as well as export

markets. Thai Polyphosphates and chemicals was started in 1984 in Thailand to produce

sodium phosphates, presently merged with Thai Epoxy and Allied Products Limited

Company (1992), Thai Sulphites and Chemicals Company Limited (1995) to form Aditya

Birla Chemicals Ltd. This company supplies to sectors such as food, textiles, electrical and

electronics, composites, leather, plastics and automobiles. PT Indo Liberty Textiles was

incorporated in 1995 to manufacture synthetic spun yarn.

2.2.2. Focus of Growth Post MFA

In late 1990’s and later, the focus was the textile business because of the end of Multi-Fibre

Arrangement (MFA) which opened a host of opportunities to Indian exporters. In this period,

Aditya Birla Group took a three route strategy for growth.

Rapidly enhance existing capacities

Acquire and build garment brands for local and international markets

Jayashree textiles was acquired by Aditya Birla Nuvo (formerly Indian Rayon), is leading

producer and exporter of yarn and fabrics to 50 countries with a turnover of $413million. It

acquired Madura Garments in 2000 to enter the branded garments business. It has brands like

Louis Philippe, Van Heusen, Peter England, Allen Solly, and SF Jeans among others and also

a supplier to global buyer such as Marks and Spencer’s, Polo etc.

2.2.3. Vertical Integration to get Cost Advantage

AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada, established

operations in 1988 to produce softwood and hardwood pulp for the purpose of internal

consumption among different units of the Group.

Together, Aditya Birla Group and Tembec, Canada have acquired AV Nackawic Inc., which

produces dissolving pulp, as a further step to integrate. Grasim Industries Ltd. Is a leading

player in the Viscose Staple Fibre (VSF). The Aditya Birla Group’s VSF manufacturing

plants straddle Thailand, Indonesia, India and China. At each of these locations, further

capacity expansions are under way– in Thailand by 31 ktpa; in Indonesia by 37ktpa; in India

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by 64 ktpa and in China by 30 ktpa. These brown field expansions were completed by the

second half of 2008, and will further notch up the Group’s VSF production from 566 ktpa to

727 ktpa and entail an investment close to US$ 260 million.

Grasim wants to follow a strategy of backward integration, right from plantation stage to the

final VSF stage. The Group’s VSF business operates through its three companies – Grasim

Industries in India, Thai Rayon Corporation in Thailand and Indo Bharat Rayon in Indonesia,

which also oversees its Chinese operations at Birla Jingwei Fibres, China.

2.2.4. Joint Ventures

Thai Rayon promoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole

manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50% of Thai

Rayon’s VSF throughput is directly exported to more than 20 countries worldwide.

The VSF meets the stringent quality expectations of customers in USA, Mexico, Europe,

Turkey, Canada, Israel, Australia, South Korea, Philippines, Indonesia, Pakistan, Bangladesh

and Sri Lanka.

PT Indo Bharat Rayon marketed under the brand name of Birla Cellulose, the company

produces a wide range of VSF in engineered specifications for textiles and non-woven

applications. The company’s strong focus on environmental protection is reflected through its

investments in a sophisticated state-of-the-art waste-water treatment plant and scientific

waste disposal systems.

2.2.5. Sources of Competitive

a) Cost – Grasim is the lowest cost producer of VSF in the world. It is the most integrated

fibre producer with the chain stretching right from the Forest to Pulp to Fibre to Yarn.

Almost all the intermediate inputs are captive. Besides, their in-house engineering division

enables us to grow in a most cost effective way.

b) Technology – On technology front, they produce all the three generations of manmade

cellulosic fibres from all in-house developed capability through research and development.

Their research and development efforts are not limited to fibre stage alone but extended to

entire textile value chain. While the plantation and related activities are carried out at Grasim

Research Institute (GFRI, Harihar, India), the product innovations are carried out at Birla

Research Institute (BRI, Nagda, India). For value chain related activities, a state of art

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“Textile Research and Application Development Centre” has been established at Kharach,

Gujrat- India to entire textile value chain from yarn to fabric to garments.

c) Markets – On marketing front, their reach extend to the entire globe through marketing

offices. On a global level, their major strength is in spun-dyed fabrics and now other

specialties such as Non-woven, Modal and Excel have started penetrating in the global

markets. Their brand “Birla Cellulose” is firmly entrenched in the market. Their value added

marketing services comprising of technical, logistical, financial, marketing and informational

support have enabled them to emerge as the most preferred supplier of VSF in the world.

Their offerings whether from India, Thailand, Indonesia or China are all marketed under the

mother brand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal and Birla Excel.

An umbrella brand has enabled them to create a common identity for their products across the

globe irrespective of their production origin and creating of awareness and consumer pull.

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2.3. BIRLA CELLULOSE

Birla Cellulose is the Grasim Industries umbrella brand for its range of cellulosic fibres. It

comprises versatile sub-brands; Birla Viscose, Birla Viscose Plus, Birla Modal and Birla

Excel. These brands offer a wide range of functional benefits such as soft feel, high moisture

absorbency, bio degradability and comfort to the wearer. These fibres have multiple

applications including apparel, home textiles, dress material, knitwear, nonwoven etc.

2.3.1. Vision

To be the Global Leader in the Man-made Cellulosic Fibre Industry

2.3.2. Mission

We aim to create Superior & Sustainable Value for all our stakeholders, maintaining the

largest market share in the Man-made Cellulosic Fibre Industry globally through:

Innovation in Products & Processes

Excellence in Quality, Service, People Development &

Focus on Environment Friendliness in all our activities

2.3.3. Values

i) Integrity ii) Commitment iii) Passion

ii) Seamlessness v) Speed

Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in 1954.

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Birla cellulose is a world leader in Viscose Staple Fibre (VSF). Its production is spread over

six countries, viz. Canada, Thailand, India, Indonesia, China and Laos. The group

independently fulfils India’s entire VSF requirements.

With strong focus on research and development (R&D), the Group’s R&D initiatives span the

entire value chain. The R&D centres are:

1. Grasim forest research institute- Pulp to plantation research.

2. Birla research institute for applied sciences- Pulp to fibre research.

3. Textile research & application development centre - Value chain from fibre to

garments

“Nature is the genesis of all that surrounds us; therefore, what other than nature could be the

origin of Birla Cellulose”. Nature is the source of Birla Cellulose and herein lays the

inspiration of their logo.

“Fibres from nature” is the theme and the message: Leaves fall and grow all over again; they

are a renewable source of nature. Birla cellulose is much like these leaves symbolizes the key

characteristics of Birla Cellulose which are “comfort and lightness”. The vibrant green

indicates that Birla cellulose can take vibrant colours. The circle signifies the cycle of nature

and sustainability.

Nature remains the underlying theme for all their brands:

Viscose is symbolized by the fresh green of summer.

Modal is symbolized by the burnt orange of autumn.

Excel is symbolized by the deep pink of spring

3.3.4. Birla cellulose- fibres from nature:

Contributing to a green world:

Preserving our environment has always been the inspiration behind Birla Cellulose. It has

successfully achieved this goal through the following initiatives:

Nurturing and building the green cover

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Over a million plantlets are being produced from identified superior clones for development

of colonial orchards and plantations.

Land conservation

Efforts are on to encourage tree-farming practice on marginal, sub-marginal and fallow lands

to the best advantage of the country. The yield of viscose is seven times that of cotton for the

same land area. Thus significantly contributing to conservation of land, and reaping

maximum results from this limited resource.

Water conservation

Birla Cellulose Viscose is highly environment friendly. Every Kilogram of viscose produced

saves 200 buckets of water when compared to cotton. Thus it preserves one of the most

valuable natural resources.

Zinc free products

Birla Cellulose is the only Heavy metal / Zinc free viscose green properties like reduced

effluent load, improved fibre properties, reduced production cost and technological

adaptability

Process friendliness

The process being followed for production is environment friendly and green due to the

following advantages:

Non-toxic effluent as a result of replacement of zinc by alum.

Less solid waste generation due to reduced lime consumption.

Reduced risk of fouling biological microorganism in reactor.

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CHAPTER 4

PRODUCT PROFILE

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4.1. Kara Skincare Wipes

Aditya Birla Group launched this product i.e. Kara skincare wipes in 2008. It is basically a

solution to skin care regime out of home– a convenient way to be at your best always.

Sometimes your hectic schedule leaves you with little time to take care of your skin. But with

Kara skincare wipes in your bag, you can now take care of your skin even when you are on

the go.

With the unique formulation of natural ingredients, these wipes are easy to use anytime and

anywhere. What’s more they are made from Birla Cellulose, a fibre that is 100 per cent

natural and biodegradable.

Kara skincare wipes are the India’s first branded skin care product. These types of products

are very popular in west but in India the category is new one. Although Indian consumers are

familiar with the products which are imported, is the first time that an Indian company

entered this segment. The brand also marks Aditya Birla Group’s foray into the Indian

FMCG market. According to reports, wipes market is worth around Rs. 30 crore (Source:

Ginny filament Website). Kara skincare wipes are positioned as an essential skincare

accessory.

The brand is targeting the young lady professionals who often need to meet lot of people. The

brand aims to create a new category of wipes in India. Hence the challenge is to educate the

target population about the usefulness of this product. This task is cut out for Kara since the

target population is already exposed to such kind of products. The only task is to inculcate the

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habit of buying and using the wipes. The product is relevant in the Indian market for two

reasons

– One is the climate which necessitates such a product and second is the growing number of

lady professionals.

The brand has the tagline “At your best. Always” which clearly communicates the core brand

positioning? The brand is being promoted as the anytime solution to look good

4.1.1. Characteristics of Kara skincare wipes

Convenient.

Hassle free application of lotion without using cotton balls.

Portable

Optimized efficacy.

100 per cent natural and biodegradable.

Hygienic.

Alcohol free.

Dermatologically safe.

Assurance of ‘Aditya Birla Group’

4.1.2. Variants of Kara Face Wipes

Deep Pore Cleansing Wipes

Kara Deep Pore Cleansing is a gentle, effective way to clean your skin of dirt, grime

and excess of oil. Enriched with Jojoba and Avocado extracts, it unclogs pores,

detoxifies and thoroughly exfoliates dead skin cells.

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Sunscreen Wipes

Kara sunscreen wipes has a formulation of SPF 20 which protects the skin from the

adverse effects of UV A and UV B sun rays. It is enriched with antioxidants like plum

extract and vitamin E that nourishes the skin and Aloe Vera that keeps the skin

moisturized.

Moisturising Wipes

Kara Moisturising wipes is enriched with the goodness of Almond and Honey for

beautiful radiant and glowing skin. It is also fortified with vitamins for skin

conditioning and is suitable for use right throughout the year.

Toning Wipes

Kara Toning Wipes is enriched with Rose and Thyme extract that tighten the skin and

maintain the normal pH balance.

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Make Up Removal Wipes

Kara Make-Up Removal Wipes are enriched with Lavender and Seaweed extracts that

removes the make-up in just one swipe.

Refreshing Facial Wipes

Kara Refreshing wipes are enriched with Aloe Vera for skin nourishment and Mint oil

for effective freshening. It ensures effective cleansing to remove dirt, excess oil and

grime from the face and neck and also leaves a lingering fragrance.

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4.2. Kara Baby Wipes

Aditya Birla group announced its foray into the baby care segment in India by launching

‘Kara baby wipes’ 100 per cent natural and biodegradable baby care wipes in 2009 earlier

known as “Puretta”. Product portfolio includes Complete Cleansing Wipes, Germ Shield

Wipes and Skin Nourishing Wipes. These wipes are safe for the baby’s delicate skin as they

are alcohol free, hygienic, hypoallergenic and dermatologically tested. Since Kara baby

wipes’ is made from Birla Cellulose, a 100 per cent natural and biodegradable fibre, it

soothes the baby’s tender skin with its soft and nature-friendly properties.

While the usage of baby wipes is growing in India, there is limited access to quality products

at the right price points. Most of the products available today are imported, and are primarily

regular wet wipes that do not serve the specific needs of baby care Kara baby wipes’ fills this

gap with its three distinct variants, aiming to satisfy the need of Smart Moms.

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Most of the other wet wipes in the market today are made from Polyester-Viscose blended

non- woven fabric or paper. Polyester is not skin friendly and its repeated use on the skin is

not advisable. Paper tissues tear off when rubbed over skin and leave lint on face in a way

that can often embarrass the user. While Kara baby wipes is made up of non-woven fabric

which absorbs sweat, extra oils from the skin without scrubbing it. It doesn’t wither when

rubbed hard and doesn’t leave lint on facial skin or stubble.

Because your baby's skin is exposed to urine, stool and spit-up milk, it needs to be cleaned

often.

• Always make sure you're using Kara baby Wipes

• It's gentle for newborn skin.

• Kara baby wipes are unique as they come with 5Step cleaning action in 1 wipe

Characteristics of Kara baby wipes

Safe for baby’s skin.

Hygienic.

Hypoallergenic

Dermatologically tested.

Alcohol free.

With mild fragrance.

Convenient- hassle free cleaning and application of lotions without using towel or

cotton balls.

Portable.

With optimized efficacy.

For complete baby care.

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4.3. Prim – Home And Kitchen Care Wipes

PRIM is basically dry wipes used in Kitchen and various multipurpose household works. It

can be used to wipe the utensils and cutleries.

One wipe can be used for at least a month in the kitchen. There is no product in the market in

this category but Scotch Brite is there which is seen as the substitute of the product. Usually

cloth is used as the substitute in most of the families but if the promotion is done properly to

make the consumers aware of this product it will do very good in the market because of very

less competition in this category.

There are two packs available in the market one is three wipes pack and the other one in five

wipes pack.

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CHAPTER 5

CONCEPTUAL BACKGROUND

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5.1. Consumer Behaviour

Consumer behaviour is the study of when, why, how, and where people do or do not buy a

product. It blends elements from psychology, sociology, social anthropology and economics.

It attempts to understand the buyer decision making process, both individually and in groups.

It studies characteristics of individual consumers such as demographics and behavioural

variables in an attempt to understand people's wants. It also tries to assess influences on the

consumer from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer playing

the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset

for customer behaviour analysis as it has a keen interest in the re-discovery of the true

meaning of marketing through the re-affirmation of the importance of the customer or buyer.

A greater importance is also placed on consumer retention, customer relationship

management, personalisation, customisation and one-to-one marketing. Social functions can

be categorized into social choice and welfare functions.

There are basically 6 steps in consumer decision process which helps to determine the

consumer behaviour for a particular product. The steps are discussed below.

1. Information search: Consumer first search for information on products and services

that can solve their problem. The search can be divided into both an internal

(memory) and an external search.

Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information search

is perception. Perception is defined as "the process by which an individual receives,

selects, organises, and interprets information to create a meaningful picture of the

world".

2. Information evaluation: At this time the consumer compares the brands and

products that are in their evoked set. How can the marketing organization increase the

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likelihood that their brand is part of the consumer's evoked (consideration) set?

Consumers evaluate alternatives in terms of the functional and psychological benefits

that they offer. The marketing organization needs to understand what benefits

consumers are seeking and therefore which attributes are most important in terms of

making a decision. It also needs to check other brands of the customer’s consideration

set to prepare the right plan for its own brand.

3. Purchase decision: Once the alternatives have been evaluated, the consumer is ready

to make a purchase decision. Sometimes purchase intention does not result in an

actual purchase. The marketing organization must facilitate the consumer to act on

their purchase intention. The organization can use variety of techniques to achieve

this. The provision of credit or payment terms may encourage purchase, or a sales

promotion such as the opportunity to receive a premium or enter a competition may

provide an incentive to buy now. The relevant internal psychological process that is

associated with purchase decision is integration. Once the integration is achieved, the

organization can influence the purchase decisions much more easily.

4. Post purchase evaluation: This step suggests the importance of the post purchase

evaluation and that the post purchase evaluation is key due to its influences on future

purchase patterns.

5. Internal influences: Consumer behaviour is influenced by: demographics,

psychographics (lifestyle), personality, motivation, knowledge, attitudes, beliefs, and

feelings. Consumer behaviour concern with consumer need consumer actions in the

direction of satisfying needs leads to his behaviour of every individual depend on

thinking.

6. External influences: Consumer behaviour is influenced by: culture, sub-culture,

locality, royalty, and ethnicity, and family, social class, past experience reference

groups, lifestyle, and market mix factors.

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5.2. Supply Chain Management

Supply chain management (SCM) is the management of an interconnected or interlinked

between network, channel and node businesses involved in the provision

of product and service packages required by the end customers in a supply chain. Supply

chain management spans the movement and storage of raw materials, work-in-process

inventory, and finished goods from point of origin to point of consumption. It is also defined

as the "design, planning, execution, control, and monitoring of supply chain activities with

the objective of creating net value, building a competitive infrastructure, leveraging

worldwide logistics, synchronizing supply with demand and measuring performance

globally."

Supply chain management draws heavily from the areas of operations

management, logistics, procurement, and information technology, and strives for an

integrated approach

5.2.1. Origin of the term and definitions

The term "supply chain management" entered the public domain when Keith Oliver, a

consultant at Booz Allen Hamilton (now Booz & Company), used it in an interview for the

Financial Times in 1982. The term was slow to take hold. It gained currency in the mid-

1990s, when a flurry of articles and books came out on the subject. In the late 1990s it rose to

prominence as a management buzzword, and operations managers began to use it in their

titles with increasing regularity.

Commonly accepted definitions of supply chain management include:

The management of upstream and downstream value-added flows of materials, final

goods, and related information among suppliers, company, resellers, and final

consumers

The systematic, strategic coordination of traditional business functions and tactics

across all business functions within a particular company and across businesses within

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the supply chain, for the purposes of improving the long-term performance of the

individual companies and the supply chain as a whole.

A customer-focused definition is given by Hines: "Supply chain strategies require a

total systems view of the links in the chain that work together efficiently to create

customer satisfaction at the end point of delivery to the consumer. As a consequence,

costs must be lowered throughout the chain by driving out unnecessary expenses,

movements, and handling. The main focus is turned to efficiency and added value, or

the end-user's perception of value. Efficiency must be increased, and bottlenecks

removed. The measurement of performance focuses on total system efficiency and the

equitable monetary reward distribution to those within the supply chain. The supply

chain system must be responsive to customer requirements."

The integration of key business processes across the supply chain for the purpose of

creating value for customers and stakeholders.

According to the Council of Supply Chain Management Professionals (CSCMP),

supply chain management encompasses the planning and management of all activities

involved in sourcing, procurement, conversion, and logistics management. It also

includes coordination and collaboration with channel partners, which may

be suppliers, intermediaries, third-party service providers, or customers. Supply chain

management integrates supply and demand management within and across

companies. More recently, the loosely coupled, self-organizing network of businesses

that cooperate to provide product and service offerings has been called the Extended

Enterprise.

A supply chain, as opposed to supply chain management, is a set of organizations directly

linked by one or more upstream and downstream flows of products, services, finances, or

information from a source to a customer. Supply chain management is the management of

such a chain.

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5.2.2. Problems addressed

Supply chain management addresses the following problems:

Distribution network configuration: the number, location, and network missions of

suppliers, production facilities, distribution centres, warehouses, cross-docks, and

customers.

Distribution strategy: questions of operating control (e.g., centralized, decentralized,

or shared); delivery scheme (e.g., direct shipment, pool point shipping, cross docking,

direct store delivery, or closed loop shipping); mode of transportation (e.g., motor

carrier, including truckload, less than truckload (LTL), parcel, railroad, intermodal

transport, including trailer on flatcar (TOFC) and container on flatcar (COFC), ocean

freight, airfreight); replenishment strategy (e.g., pull, push, or hybrid); and

transportation control (e.g., owner operated, private carrier, common carrier, contract

carrier, or third-party logistics (3PL).

Trade-offs in logistical activities: The above activities must be coordinated in order

to achieve the lowest total logistics cost. Trade-offs may increase the total cost if only

one of the activities is optimized. For example, full truckload (FTL) rates are more

economical on a cost-per-pallet basis than are LTL shipments. If, however, a full

truckload of a product is ordered to reduce transportation costs, there will be an

increase in inventory holding costs, which may increase total logistics costs. The

planning of logistical activities therefore takes a systems approach. These trade-offs

are key to developing the most efficient and effective logistics and SCM strategy.

Information: The integration of processes through the supply chain in order to share

valuable information, including demand signals, forecasts, inventory, transportation,

and potential collaboration.

Inventory management: Management of the quantity and location of inventory,

including raw materials, work in process (WIP), and finished goods.

Cash flow: Arranging the payment terms and methodologies for exchanging funds

across entities within the supply chain.

Supply chain execution means managing and coordinating the movement of materials,

information and funds across the supply chain. The flow is bi-directional. SCM applications

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provide real-time analytical systems that manage the flow of products and information

throughout the supply chain network.

Supply chain management is a cross-functional approach that includes managing the

movement of raw materials into an organization, certain aspects of the internal processing of

materials into finished goods, and the movement of finished goods out of the organization

and toward the end consumer. As organizations strive to focus on core competencies and

becoming more flexible, they reduce their ownership of raw materials sources and

distribution channels. These functions are increasingly being outsourced to other firms that

can perform the activities better or more cost effectively. The effect is to increase the number

of organizations involved in satisfying customer demand, while reducing managerial control

of daily logistics operations. Less control and more supply chain partners led to the creation

of the concept of supply chain management. The purpose of supply chain management is to

improve trust and collaboration among supply chain partners, thus improving inventory

visibility and the velocity of inventory movement.

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CHAPTER 6

RESEARCH DESIGN AND METHODOLOGY

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6. Research Methodology

6.1. Objective

To study the intricacies of supply chain management.

To study consumer buying pattern and behaviour of consumer.

To explore the possibility of spreading the Supply Chain network in outer

Jammu

To find new avenues for sales.

6.2. Research Design

In this internship I interviewed people personally and also they were asked to fill a

questionnaire so as to get the insight of the market and consumers mind. In this internship

both descriptive and exploratory researches were conduct to analyse the market and also to

keep a check on the consumer buying and thing pattern.

Questionnaire: Randomly 100 people were asked to fill in a questionnaire in which

there were list of question that they had to answer. And all their answers were recorded and

compiled so as to understand their psyche and thinking pattern. And their information

provided by them is presented in graphs.

Personal interviews: Personal interviews were also conducted of the people who were

market experts, veteran like salesman, businessman, and employees’ etc. so as to understand

the supply side as well. Especially those people were selected that had profound knowledge

of the market and they were doing business for many years.

Personal observation: I personally observed the market trends, consumer buying

patterns etc. to personally find their reason of the market condition. In this I keenly noticed

people without letting them know what i was doing. And then i observed them

6.3. Sample and Sampling Techniques

Sample basically means a subgroup of elements of population selected for participation in

study. And number of elements to be included in the study is known as sample size.

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Execution of the sampling process requires a detailed specification of how the sampling

designs decisions with respect to the population, sampling frame, sampling unit, sampling

technique, and sample size is to be implemented.

Sampling technique is broadly classified as:

Convenience Sampling

Judgmental Sampling

In this study basically Convenience sampling i.e. Non Probability Sampling Technique is

used. Convenience sampling attempts to obtain a sample of convenient elements. The

selection of the sampling unit is left primarily to the interviewer. In this type of sampling

technique often the respondents are selected because they happen to be in the right place at

the right time. Examples of convenience sampling includes–

Selection of people in store I did my study of consumer behaviour.

“People in shops” interviews.

Convenience sampling is the least expensive and least time consuming of all the sampling

techniques. The sampling units are accessible, easy to measure and cooperative. In spite of

these advantages, this form of sampling has serious limitations. Many potential sources of

selection bias are present, including respondent self-selection. Convenience sampling is not

representative of any definable population.

6.4. Data analysis:

In this study I have used pie charts, bar graph, column, etc. to present the data and analyse it.

I used questionnaire to collect the data from different people and record their feedback and

also present it in a meaningful manner

6.5. Sample Size

Sample size denotes the number of elements selected for the study. For the present study, 100

respondents were selected at random.

6.6. Software Used

1. Microsoft Excel: Used for storing the data.

2. Microsoft Word: Used for report preparation.

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6.7. Limitations of the study:

Research is based on the collection of data from both primary and secondary sources.

There may be a possibility of biasness on the part of some respondents, but very much

care has been taken to make this report unbiased.

Some respondents might not give the correct information due to their lack of interest

and shortage of time.

Time constraint.

All the information, which is taken, is based on primary and secondary data that has

its own limitations.

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CHAPTER 7

DATA COLLECTION

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7. Data Collection

7.1. Primary Data

The first-hand information bearing on any research is the one which has been collected by the

researcher. The data here is collected through:

A structured questionnaire

Personal interview of both retailer and consumers.

7.2. Secondary Data

The data which has already been collected, complied and presented earlier by any agency

may be used for purpose of investigation. The data collected through:

Various publications in form of annual reports, various papers and journals

Through internet and Books

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CHAPTER 8

SWOT ANALYSIS

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8.1. Jammu Region Analysis

Demographically, Jammu division of Jammu & Kashmir state has 10 districts out of total 22

districts of state.

Out of these 10 districts, 3 districts were covered under this study.

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8.1.1. Jammu District

Jammu district has approximate area of 3097 Sq. Km. that has been divided into 11

constituencies - Nagrota, Gandhinagar, Jammu East, Jammu West, Bishnah, R.S.Pura,

Suchetgarh, Marh, Raipur Domana and Akhnoor.

Jammu city has a vibrant heterogeneous market that has wide scope and is the economical

hub of Jammu district.

Jammu City is the focal point of business in Jammu & Kashmir.

Jammu has proven to be a better economic centre as Jammu market outperforms the sale of

cosmetic product than in Kashmir.

Jammu city also caters to the peripheral towns Kathua, Samba etc falling within 50 KM

radius to provide cosmetic products in bulk.

There is footfall of more than 2 crore tourist that visit Kashmir, Vaishno Devi, Amarnath &

Leh via Jammu.

8.1.2. Udhampur District

Udhampur district is 70 K.M. from Jammu covering an area of 4550 Sq. Km.

It is divided into more than 25 small towns.

Major economic source of the district Jammu

.

Udhampur City

It is the economic hub of the whole district catering to the major chunk of districts

population.

There are potential more than 150 counters for Kara.

Katra

More than 1 crore tourist visit Katra for holy shrine vashno devi.

There are more than 100 potential counters for Kara in Katra.

There are many hotels in Katra which buy face wipes for their guest.

There are tour and travels in Katra which offer high end facilities to their customer, they may

use face wipes for their customer.

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8.1.3. Kathua District

Kathua is 100 K.M. form Jammu and it’s near to punjab border.

Kathua is 20 K.M. away from Pathankot.

Kathua can generate decent amount of sales.

Its potential counters for Kara is around 100.

8.1.4. Other Towns/Cities

There are more potential town/cities that have potential market for introduction & sale of new

products.

The population acknowledges new products and accepts them.

There are more than 250 potential counters.

8.2. Swot Analysis of Kara in Jammu City

8.2.1. STREGNTH

Kara encompasses almost half the Jammu city area.

Kara Face Wipes are the only branded face wipes in Jammu market.

Consumers prefer Kara face wipes over other brands.

Kara is present in big shop.

Easy availability.

8.2.2. Weakness

Kara is not present in entire market of Jammu.

Peripheral cities/towns are not covered, thus they buy our products from Jammu city.

Lack of awareness: Kara awareness is very low due to low promotional activity.

Weak presence of Kara products in medical stores, whereas lots of other face wipe & baby

wipe brands are available there.

Unattractive packaging of Kara products compared to other products in competition.

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8.2.3. Opportunities

KARA brand is spread over 200 counters, but still there are around 500 potential counters in

Jammu.

Many small peripheral towns of Jammu like Katra, Udhampur, Kathua etc, can generate a

decent sale.

If these peripheral towns of Jammu are covered properly, then the overall sale of KARA will

get doubled.

Scope of entering into new sectors like hospitality, travel agencies, and tourist packages can

improve the demand in the city.

Influx of a large number of tourists to visit various destinations like Kashmir, Vaishno Devi,

Amarnath yatra, Leh-Ladakh etc are good potential market for kara.

Less competition in case of kitchen wipes in Jammu city gives PRIM a great chance to be

city’s popular demand.

8.2.4. Threats

Biggest threat to KARA face wipes are the cheap & abundantly available Chinese face wipes.

In case of Baby Wipes, users prefer other brands like Johnson & Johnson on which they have

complete faith on.

Johnson and Johnson is readily available at all retail stores / medical stores / at malls.

They have a very good supply chain network.

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51 JAGAN INSTITUTE OF MANAGEMENT STUDIES

CHAPTER 9

DATA ANALYSIS AND INTERPRETATION

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52 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.1. Gender of users

Interpretation:

It’s clearly seen that usage of wipes is prominently high in females (68%) as they are

more careful about their skin and their skin is quiet delicate.

Also female are very inquisitive about the new cosmetics product and they like

experimenting and trying new products.

Even 32% male use it but they are very few in number, they generally buy wet wipes

for their cars and offices or before interviews and presentation.

0%

10%

20%

30%

40%

50%

60%

70%

Female

Male

Female Male

Fig. 9.1. Gender of Users 68% 32%

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53 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.2. Age group

Interpretation:

The above mentioned graph clearly dictates that most of our target market lies in age

group of 25-53 years only as they are cautious about their skin.

Because of skin conscious nature and habit of experimenting new products, they

contribute 54% to total sales.

And it’s followed by the age group of 15-25 years.

15- 25 years25-35 years

35-45 years

45 and above

0%

10%

20%

30%

40%

50%

60%

15- 25 years 25-35 years 35-45 years 45 and above

Fig. 9.2. Age Group 23% 54% 13% 10%

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54 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.3. Occupation

Interpretation:

The target group of our product turns out to be service class, which has to travel

distances to reach their offices.

Also, middle class bears travel dust & pollution in local transport that increases

demand of KARA in this sector.

Rich business class turns out to be the next target as they contribute 39%.

Small portion of our customer group lies under student category with 7% contribution

and other groups contribute 5%.

BusinessService

Student

other

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Business Service Student other

Fig. 9.3. Occupation 39% 48% 8% 5%

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55 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.4. Annual income

Interpretation:

This graph clearly identifies the economic strata that prefers or uses Kara face wipes

and also defines the scope of its sale.

Though majority of our customer lie in middle class but this will help us to find out

where they belong i.e. lower middle class, middle class and upper middle class.

As noticed from the data that `majority of our customer lie in class of 3 lakh – 4 lakh

with 45% and next big share is from 5 lakh and above with 40% and 2 lakh-3 lakh

with 12%.

So this show that majority lies in middle class and upper middle class.

1 lakh - 2 lakh2 lakh - 3 lakh

3 lakh - 4 lakh5 lakh and

above

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1 lakh - 2 lakh 2 lakh - 3 lakh 3 lakh - 4 lakh 5 lakh and above

Fig. 9.4. Annual Income 3% 12% 45% 40%

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56 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.5. Consumers of Kara face wipes

Interpretation:

Though KARA is the only branded face wipe in the market with market share of 54%

and other brands (mostly Chinese) would not stand in front of KARA’S quality and

skin friendly features.

It’s also worth mentioning that only branded face wipe that was KARA’S competitor

is SMYLE’S face wipes but their presence in market is not much.

And mainly competition is coming from Chinese wipes because of its cheap price but

KARA will surely outperform them and in coming season our share in market will

surely rise.

42%

44%

46%

48%

50%

52%

54%

Yes

No

Yes No

Fig. 9.5. Consumers ofKara Face Wipes

54% 46%

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57 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.6. Application of Kara face wipes

Interpretation:

Best seller is the cleansing wipes as we can see it has a whopping share of 52%, after

that it’s followed by Makeup removal with 20% and then Refreshing 12%.

Other flavour doesn’t have much demand because customers are not aware of due to

lack of advertisement and promotion.

0%

10%

20%

30%

40%

50%

60%

Cleansing

Moisturizing

Fragnance

Sunscreen

Tonning Refreshing

Make up removal

Fig. 9.6. Application of Kara

Face Wipes52% 3% 5% 6% 2% 12% 20%

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58 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.7. Source of promotion

Interpretation:

It’s quite alarming that the knowledge and awareness about Kara is not much as we

can see that people who got to know about Kara through advertisement on television

is just 20% and there no promotion in print media as well.

And customers buy Kara only because they see it at the store rather than asking for it

before hand from shopkeeper.

Another cautious thing is that we are only cover Half of Jammu’s market. Though it’s

just one old product in Jammu’s market

To increase our sale we need to do promotion and advertisement to get customer’s

attention.

0%

10%

20%

30%

40%

50%

60%

70%

Stores Advertisement

Printmedia

Familyor Peer

Fig. 9.7. Source ofPromotion

62% 20% 0% 18%

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9.8. Stores OF Kara face wipes

Interpretation:

Kara’s 80% sale comes from General stores but there are more than 400 potential

counters of general stores good for Kara’s sale. So we have long way to go.

And there is just 17% contribution from cosmetics stores and just 3% contribution

from beauty parlour, and many good quality beauty stores are opening in Jammu so it

share will rise in near future.

Must what we really need to focus on is that our presence in medical store is just 0%

that is disappointing because Jammu there are more than 300 good medical stores but

we are not present in any of the store.

General stores Cosmetics stores Medical stores Beauty parlour

Fig. 9.8. Storesof Kara

80% 17% 0% 3%

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9.9. Qualities of Kara face wipes

Interpretation:

Our products superior quality is corroborated by the fact that 62% of people just buy

Kara because of its good quality.

8% of people consider its price as value for the money but one thing that is to be

focused here is that people its availability and buy it for the first time because of

brand name of Aditya Birla Group which is good but not good for establishing Kara.

We should try to create the Kara as brand name itself.

0%

10%

20%

30%

40%

50%

60%

70%

QualityValue for

money AvailabilityBrand name of

ABG

Quality Value for money Availability Brand name of ABG

Fig. 9.9. Qualityof Kara Face Wipes

62% 8% 12% 18%

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61 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.10. Packaging of Kara face wipes

Interpretation:

It is examined that customer liked the old packing more than the new packing as it’s evident

from the fact share of liking of old packing is 72% and new packing is just 28%.

Old Packing

New Packing

0%

10%

20%

30%

40%

50%

60%

70%

80%

Old Packing New Packing

Fig. 9.10. Packaging of Kara Face Wipes

72% 28%

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62 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.11. Places to keep Kara face wipes

Interpretation:

As the majority of our customers are ladies they like to keep their Kara on their

dressing table with the share of 41% and as the Kara is portable they also keep it in

their hand bag as well.

Men buy Kara mainly for their car and they have share of 30% and young working

people even keep Kara in their offices they use it before meeting or even before going

to interviews.

Dressingtable

Car

Hand bagOffice

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Dressing table Car Hand bag Office

Fig. 9.11. Placesto keep KaraFace Wipes

41% 30% 21% 9%

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63 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.12. Knowledge of viscose staple fibre

Interpretation:

The secret to the superior quality of Kara face wipe is Viscose Staple Fibre and

people are not aware of it as clearly seen from the data that 94% don’t even know

what viscose is.

Hardly any people know about it and they even don’t bother what their face wipe is

exactly made of.

So we need to educate our customers about our product through advertisement

highlighting our product is made up of viscose.

Yes

No

WHAT ISVISCOSE

Yes No WHAT IS VISCOSE

Fig. 9.12. Knowledgeof Viscose Staple

Fibre4% 2% 94%

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64 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.13. Other popular face wipes brands

Interpretation:

It’s clearly seen that Kara competition is mainly from the Chinese wipes because they

are widely available in abundance in market and of course they are cheaper than Kara

face wipes.

We have to double our counters to reach masses and automatically other Chinese

wipe will be wiped off.

OrissN fresh

LorealDove

Other

Oriss N fresh Loreal Dove Other

Fig. 9.13. OtherPopular FaceWipe Brands

30% 18% 25% 20% 7%

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65 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.14. Usage of baby wipes

Interpretation:

Almost 54% people use baby wipes for their babies cleansing and 44% still opt the

conventional methods.

In coming years educated people will be inclined for this product as it is safe for their

baby’s skin.

42%

44%

46%

48%

50%

52%

54%

Yes

No

Yes No

Fig. 9.14. Usage of Baby Wipes

54% 46%

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66 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.15. Popular brands of baby wipe

Interpretation:

In baby wipes we have got tough competition from market leader Johnson and

Johnson. They are available in every shop and even customer demands it only. They

have got a whopping market share of 43%

Mammy Poko is 2nd in market share with 25% in market share after this it is followed

by Bonne’s with 15% and then it’s Kara with 11% of market share.

To increase our market share, we need to increase supply chain and also need to

specially focus on medical stores also. Because baby wipes are sold in medical stores

in large quantity and we are not present in any medical store.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

KARA johnsonand

johnson

Mammypoko

Bonne's Pigeon Himalaya

Fig. 9.15. Popular Brands of Baby

Wipes11% 43% 25% 15% 4% 2%

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67 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.16. Kara face wipes rating

Interpretation:

Though customer are rating our product high in quality but we need to take in

consideration that its packing is not liked by many customer and they say that packing

by other brands is more impressive so we need to change our packing and make it a

little bit more attractive.

And availability is also an issue as we are in half of Jammu’s market we need to cover

a lot of ground.

And we are hardly present in any advertisement so we also need to advertise our

product and promote it with various mediums schemes and offers.

QualityPackaging

AdvertisementAvailability

0

0.5

1

1.5

2

2.5

3

3.5

4

Quality Packaging Advertisement Availability

Fig. 9.17. Kara Face Wipe Rating

4 2 1 2

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68 JAGAN INSTITUTE OF MANAGEMENT STUDIES

9.17. Kara baby wipe rating

Interpretation:

Customer take other wipes in market superior to Kara baby wipes because they have

never heard of it and there is no advertisement of this product.

Due to ill promotion of the product it’s not popular among mass.

On top of that, the unattractive and dull packaging of the product makes customer

repulsive towards it, doubting the quality of the product also.

Its availability is also scarce in the market. It is hardly present in retail store and

almost absent in medical stores.

QualityPackaging

AdvertisementAvailability

0

0.5

1

1.5

2

2.5

3

Quality Packaging Advertisement Availability

Fig. 9.17. Kara Baby Wipe Rating

3 1 0 1

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69 JAGAN INSTITUTE OF MANAGEMENT STUDIES

CHAPTER 10

CONCLUSION

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70 JAGAN INSTITUTE OF MANAGEMENT STUDIES

10. CONCLUSION

During my internship I was offered the profile of supply chain and consumer behaviour. My

internship started with my training trained for a week in Chandigarh to understand what

intricacies of marketing and supply chain. In which I learned how order are booked and

supply is done by distributor.

My area of operation was Jammu and the first job allocated to me was to find the

distributor of Udhampur. My main job was to enhance the sales of Kara for which I had to

cover all the retail counters in Jammu and outer Jammu and also add new ones to our

network. Apart from this I also had to go to hotels, restaurants, schools etc. and brief them

about our product and convince to buy Kara.

Apart from Udhampur I was given the job to find the distributor of Katra, famous

from Vaishno Devi, and on daily basis I used to cover the market of Jammu and do the

booking of our product. I also gave the presentation to pharmaceutical companies to consider

our product for gifting options to doctors.

Consumer study was another aspect of this training that I did in my summer training

to track the buying pattern and understand the consumer psyche of consumer. In which I was

allocated a leading cosmetics store in Jammu in which I did my consumer behaviour and

study the buying pattern of the people.

In all it was a great learning experience for me in which I not only got to know about

marketing strategies but also implemented them in real life.

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71 JAGAN INSTITUTE OF MANAGEMENT STUDIES

CHAPTER 11

RECOMMENDATION

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72 JAGAN INSTITUTE OF MANAGEMENT STUDIES

11.1. Opening of Kiosk

11.1.1. Malls: In recent years Jammu has seen the development of malls and many

other malls are opening up in different parts of Jammu so if we open up Kiosk

in malls we can sell lot of our product and will also promote our product.

11.1.2. Railway station: Jammu railway station is the focal point of the entire tourist

going to Vaishno Devi (Katra), Kashmir and Leh so the foot fall of tourist is

more than 1.5 Crore that go via Jammu only. Most of the tourist through trains

only. So opening of a kiosk at Jammu’s railway station will be fruitful.

11.1.3. Multiplex: Recently many multiplexes have opened in Jammu which is

having leading and costly apparels brand, restaurants, movie theatre but they

don’t have any cosmetics store in it. So if we will open a kiosk there it will

help us to attract our target group and will increase our sale.

11.1.4. Petrol pumps: In Jammu’s you will find at least 3 petrol pumps in 1 K.M.

and most of the men are looking for wipes for their car only. So if we will sell

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73 JAGAN INSTITUTE OF MANAGEMENT STUDIES

at the petrol pump through opening of kiosk there first we will get their

attention and then we will pursue them to buy our product.

11.1.5. Airport: People fly by planes are generally taking care of their skin and they

use costly product for themselves. So if we sell this at airport people will buy

it.

11.2. Packaging

11.2.1. Box packing for car: Most men ask for wipes for their cars and these Kara

packing is not suitable placing it on the dash board. So the packing for cars

should be in box that can easily sit on the dash board.

11.2.2. Baby wipe’s packing should me more attractive: Most of the customers and

shop keepers found that Johnson and Johnson more attractive and they said

Kara baby wipe packing was quite dull. So when customer generally picks up

the baby wipes they pick Johnson and Johnson cause of its attractive packing.

11.2.3. New Cucumber packing: The new cucumber packing is good but customer

preferred the earlier one and they said its more eyes catching.

11.2.4. Aditya Birla Group’s logo: One thing good about new packing of cucumber

is that is has an image of Aditya Birla Groups logo at the back compared to

other flavour it’s just written in front in simple alphabets without Aditya Birla

Groups logo.

11.3. Promotion And Advertisement

11.3.1. T.V. commercials: Though the cost with the TV commercial is very high but

it’s the widely spread medium right now to reach our target group. So the

substitute for this could be that we should advertise our product locally

through local channels, print media, etc. they cost associated with them is

much lower compared to the national channels.

11.3.2. Other promotion methods: We can advertise through print media and by

sponsoring many events that is accompanied by larger audience or we can

even sponsor college fest or beauty pageants locals.

11.3.3. Online promotion: It’s quite disheartening to know that we don’t have much

online presence. Though we are on Facebook and leading social website but

our presence is not much. This shows that our target group does not know

about our product.

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74 JAGAN INSTITUTE OF MANAGEMENT STUDIES

11.3.4. Viscose factors: The USP of our product is viscose that makes our product

superior to other wipes but our customers are oblivious to it. So at least we

need to take some effort that we educate our target group about viscose and its

benefit.

11.3.4. Hoarding, billboard etc.: It’s quite surprising that we don’t have any

hoarding, billboard in Jammu of Kara. So consumer has no medium from

where they can get to know about Kara.

11.4. Railway Station

11.4.1. Though Kara is sold in train like Rajdhani and shatabdi allover the India but

not in Jammu.

11.4.2. So we need to target them because there many Rajdhani, Shatabdi and other

good trains running to different states in which we can offer our product.

11.5. Hospitality

11.5.1. There are 5 star hotels that can buy our product. Like Asia, K.C. residency etc.

More over their management and owner is from Jammu only so all the

decisions are taken by themselves unlike others who decision are taken from

their head office generally outside Jammu.

11.6. Institutions (Schools & Colleges)

11.6.1. There are many good standard paly way schools in Jammu which can buy our

product. They follow the international standards, they can buy our product.

11.7. Kashmiri Marriages

11.7.1. Kashmiri marriages are known for their ostentatious ways and method of

marriage. Every tries to do new thing from other and do something new.

And in their marriages they offer their guest dry wipes to clean their hands.

Kara wet wipes can surely replace them.

11.8. New flavours

11.8.1. Slicing the category: We should try to create a new category for men which

can be used after shave as a replacement of after shave lotion and also

cleansing your face.

11.8.2. Cars: Generally men ask for wipes for their car. So we should try to specially

create a new product just for cars with a packing that it can easily sit on the

dashboard of the car.

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75 JAGAN INSTITUTE OF MANAGEMENT STUDIES

11.8.3. HERBAL Flavour: Though our products are chemical and alcohol free but

this not known to our customers. So we should create a new product with a

HERBAL FLAVOUR so that it creates an image in the mind of the target

group that it’s natural and good for their skin.

11.9. Offer Schemes

11.9.1. We are offering schemes to shop keepers but we should also offer scheme to

customers as well. Like a small pack of different flavour free with a big pack

etc. this way customer will have the experience of different flavour and

develop a liking for it.

11.10. Supply Chain

11.10.1. We cover just the half of Jammu’s market there is lot area and good counters

that are untapped. So we should focus on spreading our network in Jammu.

11.10.2. Gym and spa: There are quality and standardised gym and spas open in

Jammu and they are spreading all over Jammu. So we should target them as they

use quality product in their business.

11.11. Prim

11.11.1. We should sell Prim in Jammu’s market and response will be good.

11.11.2. Why just categorise Prim as kitchen wipes. We can portray it as a

multipurpose product use to clean cars, dusting etc.

11.12. Innovative Selling

11.13. Schools and colleges: We can go to schools and college for selling our product.

Offer them at discount or we can even give target to class teacher and for that

they will get rewards and have some share for school and college’s owner.

11.14. Play ways, kindergarten and baby care takers: There are schools build in Jammu

on international standards. But they still use old ways of cleaning babies. So it’s

a great potential market segment.

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76 JAGAN INSTITUTE OF MANAGEMENT STUDIES

BIBLIOGRAPHY

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77 JAGAN INSTITUTE OF MANAGEMENT STUDIES

Books:

Marketing Management, Philip Kotler, Kevin Lane Kotler, Published by Prentice

Hall, U.S.A

Web sites:

http://www.adityabirla.com

http://en.wikipedia.org/wiki/Aditya_Birla_Group

http://www.grasim.com/

http://en.wikipedia.org/wiki/Grasim_Industries

http://www.adityabirla.com/our_companies/indian_companies/grasim_overview.htm

http://www.google.com

http://www.jksurvey.com

Other sources:

Suggestions from industry guide

Suggestions from Sales Executives

The economic times

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78 JAGAN INSTITUTE OF MANAGEMENT STUDIES

ANNEXURES

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79 JAGAN INSTITUTE OF MANAGEMENT STUDIES

Questionnaire

1. Name: …………………………….

2. Gender: a. Male b. Female

3. Age Group:

4. 15-25 years b. 25-35 years c. 35- 45 years d. 30 years & above

5. Occupation:

a. Service b. Business c. Student d. Other

6. What is your annual income?

a. 1 - 2 lakhs b. 2 – 3 lakhs c. 3–4 lakhs d. 5 lakhs and above

7. Do you use Kara face wipes?

a. Yes b. No

8. For what purpose do you use Kara face wipes?

a. Cleansing b. Make-up removal c. Refreshing d. Others

9. From where did you come to know of Kara?

a. Store b. TV Advertisement c. Print Media d. Family/Friends

10. From where do you buy Kara?

a. Medical store b. Cosmetic store c. Retail stores d. Beauty Parlour

11. Why do you prefer Kara?

a. Quality b. Value for money c. Availability d. Brand name

12. . Which packing did you prefer of cucumber old or new one?

a. Old one b. New one

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80 JAGAN INSTITUTE OF MANAGEMENT STUDIES

13. Where do you keep face wipes?

a. Handbag b. Dressing Table c. Office d. Car

14. Did you know that Kara is made of Viscose staple fibre which is better quality than

Chinese synthetic fibre?

a. Yes b. No

15. If yes, which brand did you buy?

a. N fresh b. Oriss c. L’Oreal d. Dove

e. Other

16. Do you use baby wipes?

a. Yes b. No

17. Which brand do you use in baby wipes?

a. Kara b. Mammy Poko c. Himalaya d. Pigeon e. Bonne

f. Johnson & Johnson

18. Rate the following on scale of 0-5, 0 being the lowest & 5 being the highest.

Kara Face Wipes Kara Baby Wipes

Performance

Availability

Packaging

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