Project Report- Final

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Report on:

Study of category share, buyer behaviour and planogram in retail for shampoo.

Prepared byNirmalya MohantyRegistration No:

09PG213

Under the Guidance of- Prof. Thomason Rajan

In partial fulfillment of the Course-Industry Internship Programme

(IIP) in Term – IV of the Post Graduate Programme in Management

(Batch: Aug. 2009 – 2011)

ALLIANCE BUSINESS SCHOOL

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Post Graduate Programme

Post Graduate Programme in Management: Aug.2009 – 2011

Term – IV: Industry Internship Programme (IIP)

Declaration

This is to declare that the Report entitled “Study of category share, buyer

behaviour and planogram in retail for shampoo. ” has been made for the partial fulfillment of the Course: Industry Internship Programme (IIP) in Term – IV (Batch: Aug. 2009-2011) by me at ‘ITC Ltd.’under the guidance of Prof Thomason Rajan .

I confirm that this Report truly represents my work undertaken as a part of my Industry Internship Programme (IIP). This work is not a replication of work done previously by any other person. I also confirm that the contents of the report and the views contained therein have been discussed and deliberated with the Faculty Guide.

Signature of the Student:

Name of the Student: NIRMALYA MOHANTY


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Registration No: 09PG213

Post Graduate Programme in Management

Certificate

This is to certify that Mr. Nirmalya Mohanty, Regn. No. 09PG213 has

completed the report entitled under my guidance for the partial fulfillment of

the Course: Industry Internship Programme (IIP) in Term – IV of the

Post Graduate Programme in Management (Batch: Aug. 2009 – 2011).

Signature of Faculty Guide:

Name of the Faculty Guide: Prof. Thomason Rajan


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ACKNOWLEDGEMENT

Firstly I would like to express my sincere gratitude to Mr. ……….., Branch

Manager, ITD Marketing for giving me the opportunity to work in ITC LTD. I

express my heartfelt gratitude to Mr. Nibu Monjose, Assistant Manager (key

accounts), my industry guide for guiding me and enlightening me about the

functioning of the FMCG industry and ITC LTD. Without him this report

wouldn’t have seen daylight. My sincere thanks goes to Prof. Thomason Rajan,

a highly esteemed and distinguished guide for lending his time and advice to me

for this report.

I would also like to thank Mr. Prasoon Bharadwaj, Trading Manager at Jubilant

Retail (Total Mall), Mr. Ravindra R. (Assistant Manager), Sameer Gujral

(Merchandizing Manager) at Spencers Retail and also Mr. Syed Pasha (FMCG

Manager), Spar hypermarket for helping me out in my work, by allowing me to

carry the study at their stores and sharing highly confidential data with the

highest level of trust.

I also take this opportunity to thank my friends for supporting me all through

this project. Last but not the least I am grateful to the almighty without whose

blessings this project wouldn’t have been possible.

Nirmalya Mohanty

Contents:


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Particulars Page number

Executive Summary 7

Industry Overview 8- 14

Company Profile 14- 19

ITC’s Personal Care Range 19

About Fiama Di Wills 20- 21

ITD Marketing 21

Project Overview 22

Objectives of Study 22

Expected Outcomes 22

Methodology and Tools 23

Source of Data 24

Primary Data Collection and Compilation-

SPAR

25

Primary Data Collection and Compilation- Total Mall (Jubilant Retail)

26- 27

Primary Data Collection and Compilation- Spencer’s Retail

27- 29

Primary Data Collection and Compilation- Food World

30- 33

Store wise calculation of shelf space for ITC shampoos and share of shelves for all shampoos

34- 39

Correlation Between Sales and Shelf Space/ Primary Data and Secondary data

40

Questionnaire Used for Consumer Survey 41- 42


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Analysis and Interpretation of Survey 43- 51

Study of Planogram and Findings 52

Analysis of Study and Findings- Findings from Market Data

53

Analysis of Study and Findings- Findings from Consumer Survey

54

Suggestions and Recommendations 55- 57

Learning Outcomes 57- 58

Conclusion and Summary 59

Annexure/ Bibliography 60


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EXECUTIVE SUMMARY:The Fast Moving Consumer Goods sector is the 4th largest sector in the country with sales

turnover of Rs 93,000 Crore. It is expected to grow at a rate of 53% to 143,000 Crore by

2010. This sector has very unique characteristics which make it a huge challenge for

companies to perform and grow. Indian Tobacco Company is a major domestic player in this

sector which started out as a company manufacturing and selling cigarettes. It is the market

leader in the tobacco segment. ITC, since 2000 has moved into others categories of FMCG

mainly foods and personal care products segments. The most important component in this

industry is distribution. As 93% of India’s retail sector consists of over 1 million mom & pop

stores distribution is the greatest challenge faced by marketers.

The project has been done in the Key Accounts department of ITC FMCG Non Cigarettes

and is focused on improving the shelf space and thus sales of ITC shampoos. The crux of the

project was involved in improving the number of facings for the variants of ITC shampoos

across three retail stores, i.e. - Food world, Spar, Total Mall and Spencer’s Retail. For ITC

this is a very important factor because it is up against giants likes Unilever, Procter and

Gamble, L’Oreal etc.

The project involved working with the managers and sales force of the personal care products

category. By going with them on their sales beat observation was used as a major tool to

analyse their mistakes and areas of improvement. During this period increasing the shelf

space for shampoos was also a matter of importance. This was done by implementing a 2 part

visit plan to the various outlets assigned and taking stock of facings of various variants of

different players in the market. The planogram in place for shampoos was observed at various

stores to give recommendations at a later stage. Special care was taken to see if the paid

shelves by ITC at stores were yielding the desired outputs. A consumer survey was done with

a sample size of 200 to find out the various nuances related to buyer behaviour for shampoo

consumers.

Using information from the data collected. A comparison was done with the sales data

obtained to find out any co relation that might emerge. Any particular pattern emerging at any

point in time for any store was also kept a close watch upon. This information relates to

various factors like branding, product quality, distribution techniques etc.


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All this allowed the project to not only help with improving shelf space but also will help in

giving recommendations on various components of the business like consumer behaviour,

planogram at retail outlets.

INDUSTRY OVERVIEW (FMCG)The Fast Moving Consumer Goods are products that have a quick turnover at a relative low

cost, and don’t require a lot of time, thought and financial investment to purchase. The

margin of profits on each individual item is less but it is the large sales volumes that make the

big profits. Fast moving is in opposition to consumer durables that goods which aren’t

purchased on a regular basis and rather are purchased rarely. FMCG products are divided into

4 main segments: -

1. Personal Care:

a. Oral Care

b. Hair Care

c. Toiletries

d. Cosmetics

2. Household Care:

a. Fabric Cleaners

b. Household Cleaners

3. Packaged Food and Beverages:

a. Biscuits

b. Health Beverages

c. Cola Beverages

d. Staples, Cereals and Spices

e. Dairy Products

f. Confectionary

g. Bakery Products

h. Ready To Eat


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i. Snacks

4. Tobacco and Spirits


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The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy with an annual turnover of Rs 93,000 Crore. It is growing at a Compounded Annual Growth Rate of 9% and is estimated to be around Rs 143,000 Crore by the year 2010.* It is responsible for 5% of the total factory employment in India and creates employment for over 3 million people in downstream activities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the past decade. This has been due to

liberalization, urbanization, increase in the disposable incomes, expansion of middles class

and changing lifestyle. Furthermore, the boom has also been fuelled by the reduction in

excise duties, de-reservation from the small-scale sector and the concerted efforts of personal

care companies to attract the burgeoning affluent segment in the middle-class through

product and packaging innovations.

Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite,

in reality, the sector meets the everyday needs of the masses. The lower-middle income group

accounts for over 60% of the sector's sales. Rural markets account for 56% of the total

domestic FMCG demand. Many of the global FMCG majors have been present in the country

for many decades. But in the last ten years, many of the smaller rung Indian FMCG

companies have gained in scale. As a result, the unorganized and regional players have

witnessed erosion in market share.

In India companies like Hindustan Unilever, Colgate, Nestle, Cadbury and ITC have were

dominant forces supported by high entry barriers for other companies. These companies were

able to charge a premium for their products. Then in 1979 Nirma came up with its fabric and

utensil washing soaps. In 1991 the markets were opened and these companies faced stiff

competition with the advent of Britannia, P&G etc. Product prices had to be cut and strategies

changed. FMCG companies had to shift from profits from high margins to profits from sales

volume.

Current Scenario:**The growth potential for FMCG companies looks promising over the long-term horizon, as the per-capita consumption of almost all products in the country is amongst the lowest in the world. As per the Consumer Survey by KSA Technopak, of the total consumption expenditure, almost 40% and 8% was accounted by groceries and personal care products respectively. Rapid urbanization, increased literacy and rising per capita income are the key growth drivers for the sector. Around 45% of the population in India is below 20 years of age

*Webpage: - http://www.thehindubusinessline.com/2005/11/27/stories/2005112701700200.htm**CII A T Kearney Report 2007


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and the proportion of the young population is expected to increase in the next five years.

Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a

latent demand with more money and a new mindset. In this backdrop, industry estimates

suggest that the industry could triple in value by 2015 (by some estimates, the industry could

double in size by 2010).

In our view, testing times for the FMCG sector are over and driving rural penetration will be

the key going forward. Due to infrastructure constraints (this influences the cost-effectiveness

of the supply chain), companies were unable to grow faster. Although companies like HLL

and ITC have dedicated initiatives targeted at the rural market, these are still at a relatively

nascent stage.

The bottlenecks of the conventional distribution system are likely to be removed once

organized retailing gains in scale. Currently, organized retailing accounts for just 3% of total

retail sales and is likely to touch 10% over the next 3-5 years. In our view, organized retailing

results in discounted prices, forced-buying by offering many choices and also opens up new

avenues for growth for the FMCG sector. Given the aggressive expansion plans of players

like Pantaloon, Trent, Shopper’s Stop and Shoprite, we are confident that the FMCG sector

has a bright future. India offers a large and growing market of 1 billion people of which 300

million are middle class consumers. India offers a vibrant market of youth and vigour with

54% of population below the age of 25 years. These young people work harder, earn more,

spend more and demand more from the market, making India a dynamic and aspirational

society. Domestic demand is expected to double over the ten-year period from 1998 to 2007.

The number of households with "high income" is expected to increase by 60% in the next

four years to 44 million households.

India is rated as the fifth most attractive emerging retail market. It has been ranked second in

a Global Retail Development Index of 30 developing countries drawn up by A T Kearney.

A.T. Kearney has estimated India's total retail market at $202.6 billion, is expected to grow at

a compounded 30 per cent over the next five years. The share of modern retail is likely to

grow from its current 2 per cent to 15-20 percent over the next decade, analysts feel. The

Indian FMCG sector is the fourth largest sector in the economy with a total market size in

excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003

to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most

product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the

untapped market potential. Burgeoning Indian population, particularly the middle class and


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the rural segments, presents an opportunity to makers of branded products to convert

consumers to branded products.

India is one of the world’s largest producers for a number of FMCG products but its FMCG

exports are languishing at around Rs 1,000 Crore only. There is significant potential for

increasing exports but there are certain factors inhibiting this. Small-scale sector reservations

limit ability to invest in technology and quality up gradation to achieve economies of scale.

Moreover, lower volume of higher value added products reduce scope for export to

developing countries. The FMCG sector has traditionally grown at a very fast rate and has

generally outperformed the rest of the industry. Over the last one year, however the rate of

growth has slowed down and the sector has recorded sales growth of just five per cent in the

last four quarters. The outlook in the short term does not appear to be very positive for the

sector. Rural demand is on the decline and the Centre for Monitoring Indian Economy

(CMIE) has already down scaled its projection for agriculture growth in the current fiscal.

Poor monsoon in some states, too, is unlikely to help matters. Moreover, the general

slowdown in the economy is also likely to have an adverse impact on disposable income and

purchasing power as a whole. The growth of imports constitutes another problem area and

while so far imports in this sector have been confined to the premium segment, FMCG

companies estimate they have already cornered a four to six per cent market share. The high

burden of local taxes is another reason attributed for the slowdown in the industry. At the

same time, the long term outlook for revenue growth is positive. Give the large market and

the requirement for continuous repurchase of these products, FMCG companies should

continue to do well in the long run. Moreover, most of the companies are concentrating on

cost reduction and supply chain management. This should yield positive results for them.

The major players in the FMCG sector who are also in the personal care business, are as

follows: -

1. Hindustan Lever Limited (HLL) The Global arm of Hindustan Levers Limited is Unilever's and its mission is to add Vitality

to life. Their products meet everyday needs for nutrition, hygiene, and personal care with

brands that help people feel good, look good and get more out of life. HLL has deep roots in

local cultures and markets around the world which gives them a strong relationship with their

consumers, which are the foundation for their future growth. They benefit from their wealth

of knowledge and international expertise to the service the local consumers - a truly multi-

local multinational.


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Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goods Company,

touching the lives of two out of three Indians with over 20 distinct categories in Home &

Personal Care Products and Foods & Beverages. They endow the company with a scale of

combined volumes of about 4 million tonnes and sales of Rs.10, 000 Crore. HLL is also one

of the country's largest exporters; it has been recognised as a Golden Super Star Trading

House by the Government of India. HLL's brands - like Lifebuoy, Lux, Surf Excel, Rin,

Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond,

Kissan, Knorr- Annapurna, Kwality Wall's – are household names across the country and

span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice

cream and culinary products. They are manufactured in close to 80 factories. The operations

involve over 2,000 suppliers and associates. HLL's distribution network, comprising about

7,000 redistribution stockists, directly covers the entire urban population, and about 250

million rural consumers.

Products: -

1. Soaps – Lux, Pears, Lifebuoy, Liril, Hamam, Breeze, Dove, Rexona,

2. Skin Care – Ponds, Fair & Lovely

3. Hair Care – Sunsilk, Naturals, Clinic

4. Oral Care – Pepsodent, CloseUp

5. Deodorant – Axe, Rexona

6. Cosmetics – Lakme

7. Fabric Care - Surf Excel, Rin, Wheel

8. Beverages – Tea Brooke Bond, Lipton, Bru

9. Foods – Annapurna, Kissan

10. Ice Creams – Kwality Walls

2. Colgate Palmolive India Limited From a modest start in 1937, when hand-carts were used to distribute Colgate Dental Cream,

Colgate-Palmolive (India) today has one of the widest distribution networks in India – a

logistical marvel that spans around 3.5 million retail outlets across the country, of which the

Company services 9.40,000 outlets directly. The Company has grown to a Rs. 9600 million

plus with an outstanding record of enhancing value for its strong shareholder base. Colgate's

tight focus in Oral Care in India while building its Personal Care business coupled with a

simple, but sound worldwide financial strategy, has helped deliver consistent shareholder

value. Colgate consistently increases gross margin while at the same time reducing overhead


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expenses. The increase in gross margin and the reduction in overhead expenses provide the

money to invest in advertising to support the launch of new products, while at the same time

increasing operating profit.

Today, Colgate is a household name in India with one out of two consumers using a modern

dentifrice. Consistently superior quality, innovation and value for money products emerging

out of advanced technology employed, has enabled Colgate to be voted ‘The Most Trusted

Brand’ in India across all brands and categories for the third consecutive year in the Brand

Equity AC Nielson ORGMARG 2005 survey. Colgate has been the only brand to be ranked

in the top three for all the five surveys and to hold the premier position for three consecutive

years. This is a true measure of the trust and confidence that generations of consumers have

placed in Colgate for their oral care needs.

Products: -

1. Oral Care –

a. Colgate – Toothpaste, Tooth Powder, Whitening Products

b. Palmolive - Shower Gel, Shower Cream, Bar Soap, Liquid Hand Wash, Shave Preps, Skin

Care

2. Household Care –

a. Axion Surface Clean

3. Godrej The foods division of Godrej Industries produces and markets edible oils, vanaspati, fruit

drinks, fruit nectar and bakery fats. The division has two state-of-the-art manufacturing

facilities: at Wadala in Mumbai, the capital of the western Indian state of Maharashtra; and at

Mandideep near Bhopal in the northern Indian state of Madhya Pradesh. It has a national

distribution network consisting of 800 distributors and 24 consignment agents. The plants are

equipped with the best of modern equipment for the processing and packaging of a wide

variety of food products. These include: The 'Jumpin' range of fruit drinks, the 'Xs' range of

fruit nectar (mango, litchi, and sweet orange and pineapple flavours), Tomato Puree, Fruit

pulps and juices in bulk aseptic packaging, Health and dietetic foods. Refined edible oils of

low colour in different varieties of groundnut, sunflower and soyabean, processed

hydrogenated fats for edible purposes such as vanaspati and bakery shortenings. Godrej

Industries, in keeping with the philosophy of the Godrej Group, believes that quality is the

product of a combination of man and machine. The foods division has people of outstanding

calibre to go with the modern technologies it uses.


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GIL is a member of the Godrej Group, which was established in 1897 and has since grown

into an Rs 6,000 Crore conglomerate. The company was called Godrej Soaps Limited until

March 31, 2001. Thereafter, the consumer products division got de-merged into Godrej

Consumer Products Limited, and the residual Godrej Soaps became Godrej Industries

Limited. This led to the formation of two separate corporate entities: Godrej Consumer

Products and Godrej Industries. Besides its three businesses, Godrej Industries also runs four

divisions — Corporate Finance, Corporate HR, Corporate Audit and Assurance and Research

and Development — which operate on behalf of the entire Godrej Group. GIL has built a

strong manufacturing base capable of delivering international quality products at competitive

prices. It operates two plants, one at Valia in the Indian state of Gujarat and a second at

Vikhroli in suburban Mumbai. The company's products are exported to 40 countries in North

and South America, Asia, Europe, Australia and Africa, and it leads the Indian market in the

production of fatty acids, fatty alcohols and AOS.

The other major companies in the FMCG sector who are in the personal care business are: -

1. Marico

2. Dabur

3. Procter & Gamble

4. ITC Ltd.

5. L’Oreal


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Company Profile*

ITC is one of India's foremost private sector companies with a market capitalisation of nearly

US $ 19 billion* and a turnover of over US $ 5.1 Billion. ITC is rated among the World's

Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes

magazine, among India's Most Respected Companies by BusinessWorld and among India's

Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable

(Company) Brands', in a study conducted by Brand Finance and published by the Economic

Times. ITC also ranks among Asia's 50 best performing companies compiled by Business

Week.

ITC India Limited

Type Public (BSE:ITC)

Founded 24 August 1910,

Radha Bazar Lane, Kolkata, India

Headquarters Kolkata, India

Key people Yogesh Chander Deveshwar, Chairman,

K. Vaidyanath, Director, Partho Chatterjee, CFO

Industry Tobacco, foods, hotels, stationery, greeting cards ,Products Cigarettes, packaged food, hotels, apparel

Revenue ▲ $4.75 billion USD (2006)

Employees 21,000 (2007)

Website www.itcportal.com

*ITC Website: - http://www.itcportal.com/sets/itc_frameset.htm


http://www.itcportal.com/

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ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,

Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,

Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its

nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and

Stationery.

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". In his own words: "ITC believes that its aspiration to create enduring value for the nation

provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not

only driving each of its businesses towards international competitiveness but by also consciously

contributing to enhancing the competitiveness of the larger value chain of which it is a part."

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's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of

the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The

Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its

competitiveness by empowering Indian farmers through the power of the Internet. This

transformational strategy, which has already become the subject matter of a case study at

Harvard Business School, is expected to progressively create for ITC a huge rural distribution

infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is

aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including

e-enabled services and business process outsourcing.


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ITC's production facilities and hotels have won numerous national and international awards

for quality, productivity, safety and environment management systems. ITC was the first

company in India to voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. The Company

continuously endeavors to enhance its wealth generating capabilities in a globalising

environment to consistently reward more than 3,72,000 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."

Vision – Sustain ITC's position as one of India's most valuable corporations through world class

performance, creating growing value for the Indian economy and the Company’s

stakeholders.

Mission – To enhance the wealth generating capability of the enterprise in a globalising environment,

delivering superior and sustainable stakeholder value.

List of Products and BrandsITC has a diversified presence in :

Cigarettes: W. D. & H. O. Wills, Classic Verve, Insignia, India Kings, Classic, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake

Hotels: ITC_Welcomgroup_Hotels,_Palaces_and_Resorts is India's second largest hotel chain with over 80 hotels. Based out of Hotels Division Headquarters at the ITC Green Centre in Gurgaon, ITC Welcomgroup is also the exclusive franchisee of The Luxury Collection brand of Starwood Hotels and Resorts in India .

Paperboards & Specialty Papers:ITC Bhadrachalam Paperboards Limited"ITC Tribeni Tissues Division" Now there are four units under one name --> Paper Boards and Specialty Papers Division, Unit - Bhadrachalam, Tribeni, Bollarum and Kovai.


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Agricultural Industry: Agri-Business, Leaf Tobacco, Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular Packaged Foods & Confectionery: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, Bingo Snacks .

Branded Apparel: Wills Lifestyle, John Players, Miss Players

Toiletries: Essenza Di Wills, Fiama Di Wills, Superia, Vivel Di Wills, Vivel

Greeting Card: Expressions

Information Technology: ITC Infotech

Safety Matches: iKno, Mangal Deep(Discontinued), VaxLit(Discontinued), Delite(Discontinued) and Aim Brands acquired from Wimco (Western India Match Company) (Swedish Matches)

Incense Sticks: Mangaldeep, Spriha

Stationery: Classmate, Paperkraft, Saathi


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While ITC continues in its traditional businesses of Cigarettes, Hotels, Paperboards,

Packaging and Agri-Exports, it is gaining market share in its nascent businesses of Packaged

Foods & Confectionery, Branded Apparel and Greeting Cards.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is

pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled

services and business process outsourcing.

ITC’S PERSONAL CARE RANGE

In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-

class quality and enduring consumer trust, ITC forayed into the Personal Care business in

July 2005. In the short period since its entry, ITC has already launched an array of brands,

each of which offers a unique and superior value proposition to discerning consumers.

Anchored on extensive consumer research and product development, ITC's personal care

portfolio brings world-class products with clearly differentiated benefits to quality-seeking

consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di

Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer

response and is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and

benchmarked manufacturing practices. Contemporary technology and the latest

manufacturing processes have combined to produce distinctly superior products which rank

high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have

provided the platform for its R&D and Product Development teams to develop superior,

differentiated products that meet the consumer's stated and innate needs. The product

formulations use internationally recognised safe ingredients, subjected to the highest

standards of safety and performance.


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About Fiama Di Wills

In September 2007, ITC launched Fiama Di Wills, a premium range of personal care

products comprising shampoos, conditioner, shower gels and soap. This premium range is

a unique blend of nature and science that promises gentle effective care. It is an outcome of

4 years of extensive research and development by experts at ITC R&D Centre. The

packaging for all Fiama Di Wills products has been developed by a leading European design

firm and the fragrances have been developed by an international fragrance house in France.

Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA,

offers a range of five variants. Each of these is designed to deliver a specific hair benefit to

the consumer :

Everyday Mild (with extracts of Thyme & Juniper) is a

gentle caring shampoo suitable for daily use.

Aqua Balance (with extracts of Magnolia Blossoms &

Watercress) is a gentle moisturizing shampoo ideal for

dry, dull hair.

Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampoo

ideal for thin, limp hair.

Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth,

silky and strong and is ideal for weak, damaged hair.

Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny and

manageable, easy to style and is ideal for dull to normal hair.

Each of these shampoos can be complemented with Fiama Di Wills Polishing Drops

conditioner. This gentle conditioner enriched with Avocado Oil and Burdock extract

promises to make hair shiny, soft and smooth. It also gives the additional benefits of UV

protection as it contains Sunflower Seed extract, which is a natural UV absorber.


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The Fiama Di Wills product line also consists of a 3-variant range of transparent shower

gels which are unique as they come with suspended beads:

• Mild Dew (enriched with soft beads, peach and avocado extracts) is for

soft, moisturized skin.

• Clear Springs (enriched with jojoba beads, sea weed and lemongrass

extracts) is for clear healthy skin.

•

The Fiama Di Wills range of soaps has been launched under the sub - brand SkinSense. The

first variant to be introduced in this range is Soft Green. This is a gentle caring soap, which

helps enhance retention of skin proteins making skin look beautiful and youthful.

Between February and June 2008, ITC expanded its personal care portfolio with the launch

of Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and Vivel, a range of

soaps and shampoos, cater to the specific needs of a wide range of consumers.

Backed by consumer insights, these ranges offer the unique value proposition of providing

the multiple benefits of Nourishment, Protection and Hydration in every single product. Thus

providing, the ever-discerning consumer, complete care.

ITD Marketing – Indian Tobacco Division Marketing is the department that handles the sales and distribution

of the ITC’s Cigarettes and Non Cigarettes FMCG. The non cigarettes FMCG are divided

into three categories: -

1. Foods Category

2. PAM’s Category (Personal Care, Aggarbatti, Matchsticks)

3. Bingo


Exotic Dream (enriched with glitter beads, bearberry leaves and black

currant extracts) is for stimulating freshness.

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PROJECT OVERVIEW The task assigned by ITC Ltd. during the internship is a study of category share,

buyer behaviour and planogram in retail for shampoo.

On a broader aspect it will require scrutinizing various aspects of the personal care category (haircare, skincare etc) as a whole.

This study will be conducted under two broader heads of the retail market, ie- Hyper Markets and Super Markets.

OBJECTIVES OF STUDY

Find out the category of share of shampoo (including competitor brands) in the personal care category.

Find out ITC’s share of shelf space in the shampoo category.

Analyse competitor’s edge with regards to number of units shelved, planogram in place etc.


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Studying the psyche of consumers while buying shampoo and various factors contributing for choosing any particular shampoo brand.

Analyse and comprehend the result of the research, state observations, offer solutions, remedies and strategies which will be beneficial with respect to ITC Ltd as an organization.

EXPECTED OUTCOME OF RESEARCH AND BENEFITS

The data collected by interviews, obervation and surveys will be used to conduct relevant mathematical compilation and will be put under scrutiny at a micro level.

Study done during internship will give a clear insight of visual and retailing dynamics in consumer market, especially incase of FMCG products.

It will help us to understand the flow of information, goods, communication and money and how each of these contribute in increasing sales.

RESEARCH METHODOLOGY AND TOOLS

Manual counting of shampoos stocked, for various brands.

Manual counting of shelf space allotted for various personal care products, viz- Skin care (soaps, face wash, body wash etc), haircare (shampoos, conditioners, hair gels, hair creams and lotions etc)


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Carry a survey to understand various attributes that lead to a consumer buying any particular brand of shampoo.

Analyze the sales data of shampoos (ITC and competitor brands) and derive a correlation between number of units stocked and sales.

Any other activities which might be useful for the project.

DATA SOURCES:

PRIMARY DATA: The primary data refers to original information gathered for a

specific purpose and provides up to date, accurate and relevant information and it is

gathered in an investigation according to the needs of the problem. In this case it is

acquired directly through market research from the retail stores and survey of consumers.

SAMPLING UNIT: It refers to the individuals who are to be surveyed in the study.

The unit consists of shampoo consumers of any brand randomly picked, if they match the

required profile. The required profile was:

Females in the age group of 18- 50.

Have a personal or family income of more than INR 15,000.

Use shampoos for hair washing.

SAMPLE SIZE: It refers to the number of people surveyed for this topic. In the study

200 people were surveyed and responses drawn.

SECONDARY DATA: The secondary data can be defined as data collected and

compiled by someone else for purposes other than solving problem and previously meant

for another purpose.

A secondary data is collected from the books, periodical journals, magazines, papers,

company records, internet and other publication. In this case it has been gathered and

requested from various retail outlets, through proper channels. It is referred to the sales

data for last six months in various stores.

LIMITATION OF THE STUDY:


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1. Total coverage of the study is limited to four retail chains covering 20 stores all

together. Moreover, these retail stores cover only the Bangalore market.

2. Sample size of the study is restricted to 200 consumers only and only from the

demographic region of Bangalore.

3. All the secondary data obtained could not be cross verified for credibility.

4. Time constraint ensured that the research couldn’t be carried out on a wider scale.

DATA COLLECTED AND COMPILATION

Store wise list:

SPAR HYPERMARKET:

Total No. Of Shelves for Personal Care Products 65No. of shelves for shampoos 16

NAME OF BRANDNo. of Facings1st visit

No. of Facings2nd Visit

Average of all Visits

L'Oreal 131 107 119ITC 38 46 42Unilever 83 93 88P & G 97 92 94.5Cavin Care 14 18 16Others 51 70 60.5

Total No. of Shelves 72No. of shelves for shampoos 23

NAME OF BRAND No. of Facings No. of Facings Average of all


Name of Store- SparLocation- Koramangala

Name of Store- SparLocation- Banerghatta Road

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1st Visit 2nd visit VisitsL'Oreal 86 111 98.5ITC 42 38 40Unilever 108 96 102P & G 94 73 83.5Cavin Care 21 38 29.5Others 58 44 51

*Source: Market Research

TOTAL MALL (JUBILANT RETAIL Ltd.)


NAME OF BRANDNo. of Facings1st Visit



L'Oreal 36 51 43.5ITC 29 36 32.5Unilever 64 88 76P & G 62 79 70.5Cavin Care 19 14 16.5Others 28 42 35


NAME OF BRAND No. of Facings No. of Facings Average of all


Name of Store- Total MallLocation- Old Airport Road

Name of Store- Total MallLocation- Sarjapur Road

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1st visit 2nd Visit VisitsL'Oreal 46 38 42ITC 32 24 28Unilever 103 109 106P & G 94 78 86Cavin Care 15 16 15.5Others 62 56 59

*Source- Market Research

TOTAL MALL (JUBILANT RETAIL Ltd.) contd.:





L'Oreal 48 44 46ITC 34 21 27.5Unilever 102 84 93P & G 54 68 61Cavin Care 32 21 26.5Others 65 57 61

SPENCER’S RETAIL (RPG ENTERPRISES):



Name of Store- Total MallLocation- Madiwala

Name of Store- Spencer’s SuperLocation- Indiranagar

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L'Oreal 24 31 27.5ITC 20 19 19.5Unilever 33 40 36.5P & G 29 29 29Cavin Care 05 09 07Others 12 17 14.5


SPENCER’S RETAIL (RPG ENTERPRISES). Contd:





L'Oreal 12 16 14ITC 09 11 10Unilever 19 31 25P & G 15 23 19Cavin Care 12 09 10.5Others 08 04 06






Name of Store- Spencer’s DailyLocation- J.P. Nagar

Name of Store- Spencer’s DailyLocation- Old Airport Road

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L'Oreal 40 40 40ITC 21 17 19Unilever 53 64 53.5P & G 34 52 43Cavin Care 04 11 7.5Others 14 08 11


SPENCER’S RETAIL (RPG ENTERPRISES). Contd:





L'Oreal 46 62 54ITC 22 24 23Unilever 56 51 53.5P & G 64 67 65.5Cavin Care 10 07 8.5Others 60 49 54.5






Name of Store- Spencer’s HyperLocation- Koramangala

Name of Store- Spencer’s HyperLocation- Sarjapur Road

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L'Oreal 50 61 55.5ITC 43 38 40.5Unilever 79 101 90P & G 63 72 67.5Cavin Care 08 03 5.5Others 37 28 32.5


FOOD WORLD:


NAME OF BRANDNo .of Facings1st Visit



L'Oreal 12 17 14.5ITC 15 09 12Unilever 15 23 19P & G 14 19 16.5Cavin Care 12 07 10.5Others 04 08 06






Name of Store- Food WorldLocation- Cambridge Layout

Name of Store- Food WorldLocation- Koramangala 1st Block

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L'Oreal 17 24 20.5ITC 11 16 13.5Unilever 29 28 28.5P & G 22 12 17Cavin Care 04 09 6.5Others 07 11 09


FOOD WORLD (contd.):





L'Oreal 34 36 35ITC 32 38 35Unilever 56 64 60P & G 36 51 43.5Cavin Care 12 09 10.5Others 11 09 10






Name of Store- Food WorldLocation- Koramangala, Opp. Raheja Arcade

Name of Store- Food WorldLocation- Indiranagar, 100ft Rd.

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L'Oreal 41 31 36ITC 16 23 19.5Unilever 52 64 58P & G 48 52 50Cavin Care 13 09 11Others 08 12 10



Name of Store- Food WorldLocation- B.T.M Layout

Name of Store- Food WorldLocation- Banerghatta Road

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L'Oreal 48 42 45ITC 24 23 23.5Unilever 76 71 73.5P & G 68 54 61Cavin Care 07 10 8.5Others 14 21 17.5










Name of Store- Food WorldLocation- J.P. Nagar

Name of Store- Food WorldLocation- Cox Town

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L'Oreal 33ITC 24Unilever 53P & G 44Cavin Care 12Others 15


OUTLET WISE (across all locations) SHARE OF SHELVES FOR SHAMPOOS AND ITC’s SHARE:

NAME OF STORE- Spar Hypermarket

*Source- Primary Data

AVERAGE SHELF SPACE OF SHAMPOOS OF ALL BRANDS:


Name of CompanyCumulative No. of Facings

L'oreal 217.5ITC 82Unilever 190P & G 178Cavin Care 45.5Others 111.5Total Facings 824.5ITC's share in % 9.94

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Avg No. of shelves for PC products 68.5Avg Total No. of shelves for Shampoos 19.5% share of Shampoos at SPAR 28.46


NAME OF STORE- Total Mall (Jubilant Retail)





L'oreal 131.5ITC 88Unilever 275P & G 217.5Cavin Care 58.5Others 155Total Facings 925.5ITC's share in % 9.50

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NAME OF STORE- Spencer’s (RPG Enterprises)




Avg No. of shelves for PC products 78Avg Total No. of shelves for Shampoos 20.66% share of Shampoos at TOTAL 26.48


L'oreal 191ITC 112Unilever 258.5P & G 224Cavin Care 39Others 118.5Total Facings 943ITC's share in % 11.8

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NAME OF STORE- Food World




Avg No. of shelves for PC products 44Avg Total No. of shelves for Shampoos 13.6% share of Shampoos at SPENCER’S 30.9


L'oreal 239ITC 159.5Unilever 375P & G 306Cavin Care 79Others 98.5Total Facings 1257ITC's share in % 12.68

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CONSOLIDATED SHARE OF SHELVES OF SHAMPOOS AND ITC’S SHARE:

SHARE OF SHELVES FOR ALL SHAMPOOS:

Name of Store

No. Of Shelves for PC Products

No. of Shelves for Shampoos

% Share of Shelves for Shampoos Across all Stores.

SPAR 68.5 19.5

29.26

TOTAL 78 20.66 SPENCER’s 44 13.66 FOOD WORLD 33.12 11.62

Total 223.62 65.44*Source- Primary Data

ITC’S SHARE OF SHELF IN SHAMPOO CATEGORY-

CUMULATIVE OF ALL OUTLETS:

NAM

E O

F

STO

RE

NAME OF COMPANY AND No. of FACINGS L’OREAL ITC UNILEVER P & G

CAVIN CARE OTHERS

SPAR HYPERMARKET 217.5 82 190 178 45.5 111.5 TOTAL MALL 131.5 88 275 217.5 58.5 155 SPENCER’S 191 112 258.5 224 39 118.5 FOOD WORLD 239 159.5 375 306 79 98.5


PERCENTAGE SHARE OF EACH COMPANY ACROSS ALL STORES:

NAME OF CO. L’OREAL ITC UNILEVER P & G

CAVIN CARE OTHERS


Avg No. of shelves for PC products 33.12Avg Total No. of shelves for Shampoos 11.62% share of Shampoos at FOOD WORLD 35.09

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TOTAL OF ALL STORES 779 451 1098.5 925.5 222 483.5

% SHARE OF EACH COMPANY 19.67 11.39 27.74 23.37 5.6 12.21


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CATEGORY SALES SHARE OF ITC’s SHAMPOOS:

Store wise list:

TOTAL MALL (Jubilant Retail):

ITC’s Sales from January to June 2010:

Month Jan Feb March April May June TotalSales in Rs 89365 31047 35658 46942 43894 32185 279091

*Source- Secondary Data

Total Sales: INR:13,198,749

% Contribution to Total Shampoo Sales by ITC: 2.11%

SPAR HYPERMARKET:




Total Sales: INR: 8,787,132

% Contribution to Total Shampoo Sales by ITC: 2.34%

FOODWORLD:




Total Sales: INR: 7,704,060


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% Contribution to Total Shampoo Sales: 5.65%

STUDY OF BUYER BEHAVIOUR

QUESTIONNAIRENAME: OCCUPATION:

AGE: MONTHLY INCOME:

Please take some time out to answer the questions below for us to understand your needs for better hair.

Do you use any particular brand of shampoo? If yes, please name.

What attracts you to the above named shampoo?

Are you open to the idea of changing your shampoo brand for a better one?

Name the top five shampoo brands which come to your mind effortlessly.

Do you look for a shampoo with a purpose? Ex- strong hair, shine boost, long hair etc.If yes please name it/them.

How much would you like to pay for a 100ml premium shampoo?

55- 70 70- 85 85-100 100-120 >120


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Tickle your brain. Can you name a shampoo each starting with the letters ‘V’ and ‘F’?

Have you ever tried any one of the shampoos named above?

Take a break from shampoos and tell us do you like Hanna Montana? If yes, then do you go ga over her?

Back to shampoo. Just a few more!!! Where would you prefer buying a shampoo? Eg- store near you, super and hyper

markets, specialized stores for beauty and health care products etc.

Do you look for better prices, promos, celebrity endorsement and other goodies and does it draw your attention?

THANK YOU FOR YOUR OPINION. HAPPY SHAMPOOING!


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FINDINGS AND INTERPRETATION OF SURVEY:*

Do you use any particular brand of shampoo? If yes, please name.

Yes- 117 respondentsNo- 83 respondentsAmong those who responded ‘yes’, 31 named Sunsilk, 29 named Garnier, 26 named Dove, 18 named Pantene, 9 named Fiama Di Wills, 4 named Clinic Plus, 5 named other brands.

Interpretation: The above data clearly shows that 58.5% of the respondents have and go with a particular brand of shampoo and out of the 58.5%, only 7.69% opted for Fiama Di Wills. Sunsilk tops the list, closely followed by Garnier and Dove. As a whole HUL leads the race facing stiff completion from Garnier.

What attracts you to the above named shampoo?

Attributes- 147

Price- 53


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*Source- Market research

NEED IDENTIFICATION 1.0

Interpretation- From the above information we can comprehend that 73.5% of the

respondents look for attributes over price when choosing their shampoo brand.

Are you open to the idea of changing your shampoo brand for a better one?

Yes- 134

No- 66

Interpretation- 67% of the consumers agree that they can switch brands for a better

one, when it comes to the question of better hair care. This was an eye opener as it

was a general perception that when it comes to personal care products, females do not

prefer experimenting.


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Name the top five shampoo brands which come to your mind effortlessly.The data below shows number of individuals who consider the following brands

amongst top five:

Garnier- 154 Dove- 163Pantene- 131 Sunsilk-136Head and Shoulders- 78 Fiama Di Wills- 54Vivel- 26 Clinic Plus- 95All Clear- 34 Vatika- 23Others- 106

EVALUATION OF ALTERNATIVES 1.0

Interpretation- Dove figures in the top five list of a whopping 81.5 % percentage of

the respondents, followed by 77% for Garnier, slightly ahead of Pantene at 65.5%.

Sunsilk and Clinic Plus though not premium shampoos figure amongst top 5 shampoo

brands in 68% and 47.5% consumers respectively. Fiama figures in the top five

shampoos in 27% consumers and Vivel in 13% only. 53% of the respondents

considered brands other than the one mentioned here as top five shampoos.

Do you look for a shampoo with a purpose? Ex- strong hair, shine boost, long hair etc. If yes please name it/them.

Softness- 68 Shine- 84Volume- 16 Hair Fall Control- 14Growth- 18 Stonger Hair- 27Others- 42


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Ps- The total number exceeds 200 since a few respondents named more than one quality.

NEED IDENTIFICATION 2.0

Interpretation- The top attribute that consumers look for while buying shampoo is

for shine, with 42% respondents. This is followed by softness of hair and stronger hair

at 34% and 13.5 % respectively. Therefore, clearly shining hair is what consumers

look for while buying shampoos.

How much would you like to pay for a 100ml premium shampoo?

55- 70- 6 Respondents

70- 85- 84 Respondents

85-100- 107 Respondents

100-120- 2 Respondents

>120- 1 Respondent


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Interpretation- 53.5 % of the respondents would willingly pay anywhere between Rs

85- 100 for a 100 ml premium shampoo and 42% would pay Rs 70- 85. Only 1.5%

are willing to pay more than Rs 100 while 3 % expect their premium shampoo to cost

below Rs 70.

Can you name a shampoo each starting with the letters ‘V’ and ‘F’?

‘V’- 105 wrote Fructis from garnier (L’oreal), 93 could recollect ‘Fiama’ and the

remaining couldn’t recollect any brand.

‘F’- 111 wrote Vatika from Dabur, 72 could recollect ‘Vivel’ and the remaining

couldn’t recollect any brand.

MEASURE OF BRAND RETENTION 1.0


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Interpretation- On the brand recall factor, 46.5% respondents could recall the brand

‘Fiama Di Wills’ on being given a cue, in this case- the first letter of the brand itself.

Vivel could be recalledby 36% respondents below Vatika, which was recalled by

55.5%.

Have you ever tried any one of the shampoos named above?

Note- For this question the analysis has been done only for the respondents who could answered Fiama and

Vivel for the preceding question.

31 of the 93 respondents who named Fiama had tried it at least once.

13 of the 72 respondents who named Vivel had tried it at least once

CONVERSION in % .0

Interpretation- Only a third of the respondants who recalled Fiama had used it

atleast once or more. The same figure for Vivel stands further low at 18.05%.

Take a break from shampoos and tell us do you know Hanna Montana? If yes do you go ga over her?

Don’t know Hanna Montana- 61Don’t like her- 110Like her- 29


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Interpretation- A considerable number of respondents are not even aware of who

Hanna Montana is, with the figure standing at 30.5%. Of the total respondents only

14.5% like her and 55% stand on the other end of the spectrum.

Where would you prefer buying a shampoo? Eg- store near you, super and hyper markets, specialized stores for beauty and health care products etc.

Nearby Kirana Store- 68Super and Hyper Markets- 93Beauty and Health Care Stores- 32Pharmacist- 7


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Interpretation- Majority of the respondents stated that they would like to purchase a

shampoo from super or hyper market. The figure stands at 46.50%. A substantial

number of respondents prefer to visit the nearby local shop for buying a shampoo,

taking its count to 34%.

Do you know about the brands Fiama Di wills and Vivel amongst other

shampoos? If yes do you know which company owns the brand?

149 respondents are aware of the brand Fiama di Wills

128 respondents are aware of the brand Vivel

136 respondents are not aware that the parent company is ITC Ltd.

Do you look for better prices, promos, celebrity endorsement and other goodies and does it draw your attention?

104 respondents answered no to the above question. 77 respondents answered yes. 19 respondents said it draws their attention however, they would try the brand if they don’t trust it.


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Interpretation- 52% of the respondents said their choice of a shampoo brand won’t

be affected by promos, slashed prices or advertisement. On the flipside 38.5% of the

respondents answered that they are always on the look for promos, goodies and better

prices. 9.5% of the respondents claim they would be affected by the promos, goodies

etc only if they trust the brand and know about it.

*Source of all findings of consumer survey- Market research


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STUDY OF PLANOGRAM AND FINDINGSThe following points were noted while studying the planogram in place at various

retail outlets:

In terms of placing the shampoos most of the stores did well and had placed Fiama

Di Wills strategically alongside or in the vicinity of its competitors like Dove,

Garnier, Pantene etc.

However, in certain stores like Total and few Food world outlets Fiama was kept

at shelves below eye level, where as the competitor brands were on the shelves at

eye level.

Hanna Montana was neglected at most stores with no stock or stacked in some

corner.

Most of the stores like Spar, Spencer’s hyper at Sarjapur, Total at Madiwala etc

did not stock or shelf Vivel at all. The reason cited by salesmen or ITC promoters

was lack of sale or no stock availability.

All Total stores had strategically placed the Gandolas or paid shelves at very

strategic locations making it easier for the consumer to notice and difficult to

escape at least take a look at the products. On the contrary Spar outlets had placed

the Gandolas either with some other product category like deodorants and soaps.

A few major Food World outlets like Indiranagar, Cambridge layout etc did not

have variants of Fiama Di Wills leaving the consumer short of choice.

Most of the stores did not have a fixed place for Fiama or Vivel, unlike Dove,

Garnier etc. Place for Fiama was shuffled depending on the number of facings of

competitor brands.

A substantial number of stores placed Fiama in the middle of the shelves with

competitor brands on either side of the bays.

*Source- Market research, **Photographs of planogram isn’t available as retailers didn’t

permit


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ANALYSIS AND SUGGESTIONS OF STUDYThe analysis and of the study have been divided into three broader heads.

1. From market data(primary and secondary)

2. From consumer survey

3. With respect to planogram

FINDINGS FROM MARKET DATA:

Almost all stores allotting more than 30% of shelf space in the personal care

category to shampoos is proof enough that it is of course a lucrative business

option for FMCG players.

ITC holds only 11.39% of the shelf space allotted to shampoos in the stores

visited. This of course is a very low when compared to its competitors like

HUL, Procter & Gamble and L’oreal having shelf space of 27.74%, 23,37% and

19.67% respectively.

ITC contributes only marginally higher than 2% of the total shampoo sales in

hypermarkets like Total and Spar. On the other hand it is considerably higher

for smaller supermarkets like Food World with the figure at 5.65% of total

shampoo sales. This can be attributed to the higher number of outlets of smaller

supermarkets.

Taking Total stores as an example and using its sales data for comparison, the %

sales contribution for Shampoos marketed by HUL stands at 31.35%. This

figure just includes HUL’s competing brands, i.e.- Dove and Sunsilk.

The sales contribution stands directly proportional to the ITC’s shelf space in

each of the stores. ITC has the highest share of shelf in Food world at 12.68% of

the total shelves allotted for shampoos and also the highest sales contribution

amongst all outlets at 5.65%. Total has the lowest shelf space allotted to ITC at

9.5% and this corresponds to the lowest sales contribution at total. The figure

stands at 2.11%.


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FINDINGS FROM CONSUMER SURVEY

Though only 7.69% of the consumers choose Fiama Di Wills as their preferred

shampoo out of the 58.5% consumers who use only one particular brand of

shampoo always, the good news is that 67% of the consumers are willing to

give up their current brand for a new one.

Since 73.5 % of the consumers choose attributes over price it becomes

imperative from a marketer’s point of view to constantly be on the hunt for

newer and innovative need identification of shampoo consumers. Also,

shampoos that give shine to hair has a higher demand.

When consumers evaluate alternatives for shampoos only 27 % consider Fiama

Di Wills as an option which is way below competing brands like Dove at 81.5%

The pricing of Fiama and Vivel is in place with consumer expectations. 95.5%

of the consumers expect the price range to be within 70- 100 INR.

A moderate brand recall figure with 46.5% for Fiama and 36% for Vivel doesn’t

solve the purpose as the conversion rate for purchasing the brands is pretty low

at 33.3% and 18.05% for Fiama and Vivel respectively.

Money spent on Hanna Montana and its promotion can be used for other

productive uses as nearly a third of the respondents do not know who Hanna

Montana is. Amongst those who know her 55% respondents do not connect to

her.

While carrying on with efforts to boost sales in super and Hyper markets, the

unorganized retail sector should also be kept in mind as 34% of the respondents

say they would buy a shampoo at a store near to them. Thus, distribution and

supply channels for unorganized retail sector call for greater attention.

With 74.5% respondents aware of a brand called Fiama and 64 % aware of

Vivel, the figures don’t look all that bad. However, only 32% of the total

respondents are aware that these are brands owned by ITC Ltd. More peoples’

trust can be gained if they are aware of the reputed parent company that owns

the brand.


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SUGGESTIONS AND RECOMMENDATIONS ITC Ltd. should make efforts to increase its shelf space in retail stores which

will lead to higher sales as evident from the findings of the study. This can be achieved through providing higher margins of profit to retailers. This, might sound an uphill task. However, the idea is to have consumers use the shampoos once, especially Fiama Di Wills. Since, a lot of Research and Development has gone into making the product it is undoubtedly a quality product and has the credibility to compete with best selling brands like Dove.

The main challenge is in making consumers know about the product and have

them use it a couple of times to know results after use. To achieve this I would

suggest ITC to launch sachets of Fiama Di Wills as a trial. It may seem to dilute

the premium nature of the brand but then top brands like Garnier also had

sachets of 3 Rs each just to have people try the brand. Let’s not forget that 32%

of urban shampoo users still use sachets. If not selling sachets, lets give the

sachets for free with Fiama Di Wills soap (a huge success). To compensate for

the monetary loss, ITC Ltd. can give smaller and thus less expensive

conditioners for free along with Fiama Shampoos. The cost of giving

conditioners will undoubtedly be much lesser than giving a trial sachet. Thus the

high cost savings here can be passed onto increase retailer margins as discussed

in the preceding point. The sachets can be given free along with beauty and

lifestyle magazines as well.

The choice of Hanna Montana as the face of Fiama did not seem to work well

with Indian beauties. They want to have beautiful hair like Deepika Padukone or

Sonam Kapoor. Therefore, ITC ltd. Can do without Hanna Montana and instead

choose a desi face. After all, Deepika seems to have done wonders with the gel

soaps.

With sales contribution of 5.65% in Food world as compared to a little over 2%

in hypermarkets, more energy and money should be devoted to smaller super

markets like More, Spencer’s etc. Also worth mentioning is the finding that 34

% of consumers prefer a nearby store for shampoo purchase. Thus, an efficient,

dedicated and improvised distribution and supply system for the unorganized

retail sector can do magic. A study can be carried out to find the sales


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contribution of ITC for shampoo sales in unorganized retail and plans can be

decided accordingly.

ITC has done a good job in terms of the variants it has launched for its shampoo

brands as the study results show that consumers expect more or less the same

attributes while buying shampoos. However, Indian consumers lap up

something tailor made for them and gives them that extra buck to spend. Thus,

the research and Development team can be on the prowl and innovate for newer

products like shampoo cum conditioner, shampoo that protects your hair from

sun damage. Lot of Indian females crave for straighter here. It will be brilliant to

come up with a shampoo which pays attention to that need.

Though a considerable number of the respondents surveyed know about Fiama

and Vivel, they are unaware that the parent company is ITC Ltd. ITC Ltd.

undoubtedly is a brand in itself. Hence, I suggest ITC should go for Umbrella

branding which will be the first of its kind for shampoos. However, it should

tread carefully because if the campaign fails it will immensely hurt the brand

ITC.

A more aggressive promotional campaign should be put in place. The kind of

campaign I would recommend is a campaign where in a famous celebrity and

her personal hair stylist are roped in and give you tips to beautiful, gorgeous

hair for different occasions, made possible through ITC’s shampoo brands. It is

not something alien to ITC. They are already doing it through the show MTV

Fiama Di Wills style check. However, instead of a show it can be shown as

short television commercial or the tips can be published on print media for mass

coverage. Sapna Bhavnani can be retained for the purpose.

The current campaign for Vivel being undertaken in Tamil Nadu, where in ear

studs are being given free is u huge success. A similar campaign can be

launched nationwide. Also, there is an urgent need to increase the frequency of

Vivel advertisements across national television, regional television and print

media as it is very less at the moment.


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A brand extension may be looming over the horizon for Fiama Di Wills in terms

of launching hair care spas. These spas necessarily be not owned by ITC Ltd. It

can be franchised on the lines of L’oreal, Schwarzkopf etc. This may serve the

dual purpose of revenue generation in the long term and spreading brand

awareness.

ITC promoters in key retail stores should be given Fiama/ Vivel T shirts for greater brand recognition within stores.

Distribution trucks and Vans should be painted with product advertisements. It is almost free of cost and can reach a mass audience.

LEARNING OUTCOMES

The FMCG industry and in particular has few characteristics that now define and rule the

industry. These are: -

1. Low margins – Companies do not make profits through high margins. They reduce the

price cutting into their margins but make profits because of huge sales volumes.

2. Most functions are outsourced - Almost everything from manufacturing to branding,

distributing and merchandising is outsourced. This allows the companies to keep costs low.

This also increases the need for a strong control over these business partners.

3. There are 3 core components in the industry –

a. Manufacturing – Production is very important because the company makes profits on sales

volumes and cannot afford to have stock outs of any products. It is also important to keep

costs low so that prices can be further reduced or margins increased.

b. Distribution – Distribution is highly important in this industry because a company’s

products need to reach every nook and corner of the nation. The retail industry in India is

93% unorganized which is made up of over 1 million mom & pop stores. To reach out to so

many stores increases the need for a strong distribution network.


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c. Branding – With so many similar products available in the market branding plays a major

role in helping consumers differentiate between products of different companies. Also it is

not very easy to change consumer’s preferences. This gives branding a greater challenge.

DIAGRAMATIC REPRESENTATION OF CORE COMPONENTS


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CONCLUSION AND SUMMARYFrom the study conducted it is observed that Fiama and Vivel have a considerably low

shelf space and sales contribution in the shampoo category. The study carried out can

lead us to the following conclusions. In order to turn dreams into reality and for turning

liabilities into assets one has to meet the needs of the consumers. ITC has designed and

developed its products on the same lines. However, the cause of worry for ITC lies in

the fact that they have to get people to try and use the product and then make them

accept the product. It has been figured out that it figures in the consumers mind till the

stage where they evaluate alternatives but things go hay wire when it comes to purchase

just because the trial stage goes for a toss and hence acceptance.

The factors that consumers look at while buying shampoo are its attributes rather than

price.

Another major challenge for ITC is to convince retailers to shelve higher number of

facings. Since, this study was done in supermarkets and hyper markets it is still

acceptable that Vivel was either not shelved or shelved with negligible facings. This is

because of the fact that it is a mass market product. However, the same statistics for

Fiama was not very impressive either.

To sum it up with better supply channels, concentration on unorganized retail sector,

rapport with retailers of key accounts (convince them to shelve for facings), aggressive

promotion and most importantly going about spreading awareness and getting people to

at least use the shampoo ITC can go miles in giving a tough competition to the current

market leaders in the shampoo category.


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BIBLIOGRAPHY

1. http://www.thehindubusinessline.com/2005/11/27/stories/2005112701700200

2. CII A T Kearney Report 2005

3. ITC Website – www.itcportal.com

4. www.hindubusinessline.com

5. www.timesofindia.com

6. ITC Corporate Presentation - Mr S Dutta

7. FMCG report – www.ibef.org

8. Angel Broking Report 2009

9. Marketing Management Philip Kotler, The Millennium Edition, Prentice Hall

10. Marketing Research: G.C Brek, Tata Mc Graw-Hill Publishing Company

Limited, New Delhi

11. Research Methodology: C.R.Kothari , 2nd edition


Documents

Project Report- Final