A REPORT

ON “Market Research and Critical Aspects of

Marketing for LivingSeed”

BY

SUTIRTHA DAS

15BSP1329

1

REPORT

ON

“Market Research and Critical Aspects of Marketing for LivingSeed”

BY

SUTIRTHA DAS

15BSP1329

LivingSeed A report submitted in partial fulfilment

of the requirement of

PGPM Program of

IBS BANGALORE

UNDER THE GUIDANCE OF:

FACULTY GUIDE: Prof. GEETHA V. SHARMA COMPANY GUIDE: Mr. RAJIT KUMAR

Date of Submission:

2

AUTHORISATION

I hereby declare that the project entitled “Feasibility study of LivingSeed”

submitted to IBS Business School, Bangalore in partial fulfilment of the

requirement of the PGPM program is an original and bonafide work done by

me.

I also declare hereby that I have not submitted this project report to any

other university for the award of any degree or diploma.

Sutirtha Das

(15BSP1329)

Company Guide Faculty Guide

Mr. Rajit Kumar Prof. Geetha Sharma

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ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance &

encouragement of other people. This one is certainly no exception.”

On the very outset of this report, I would like to extend my sincere & heartfelt

obligation towards all the personages who have helped me in this endeavour.

Without their active guidance, help, cooperation & encouragement, I would

not have made headway in the project.

I am ineffably indebted to Mr. Rajit Kumar (Company guide) for conscientious

guidance and encouragement to accomplish this assignment.

I am extremely thankful and pay my gratitude to my faculty Prof. Geetha V.

Sharma (Faculty guide) for her valuable guidance and support on completion

of this project in its presently.

I extend my gratitude to IBS BANGALORE for giving me this opportunity.

At last but not least gratitude goes to all of my friends who directly or indirectly

helped me to complete this project report.

Thanking You

SUTIRTHA DAS

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TABLE OF CONTENTS

Authorisation………………………………………………………………………………………………………….2

Acknowledgement………………………………………………………………………………………………….3

Executive Summary ……………………………………………………………………………………………….6

1. INTRODUCTION………………………………………………………………………………………………….7 1.1 Objective……………………………………………………………………………………………….7 1.2 Scope…………………………………………………………………………………………………….7 1.3 Methodology…………………………………………………………………………………………7 1.4 Limitations…………………………………………………………………………………………….7

2. EIC Analysis……………………………………………………………………………………………………….8

2.1 ECONOMIC ANALYSIS……………………………………………………………………………….8

2.1.1 Overview of Indian Economy………………………………………………………………..8

2.1.2 Current Macroeconomic Environment………………………………………………..10

2.1.3 Key Industries in India………………………………………………………………………….11

2.2 INDUSTRY ANALYSIS………………………………………………………………………………..12

2.2.1 FMCG Industry in India………………………………………………………………………..12

2.2.2 SWOT Analysis of FMCG………………………………………………………………………15

2.2.3 PORTER’S 5 FORCES…………………………………………………………………………….16

Herbal Industry in India……………………………………………………………………………………19

SWOT Analysis……………………………………………………………………………………….21

Top 3 Herbal companies in India…………………………………………………………….22

PATANJALI………………………………....................................................22

DABUR…………………………………………………………………………………......24

MARICO…………………………………………………………………………………….26 Licenses required…………………………………………………………………………………….28

Drugs and Cosmetics Act, 1945………………………………………………….29

2.3 COMPANY ANALYSIS………………………………………………………………………………….30

2.3.1 Company Profile……………………………………………………………………………………….30

2.3.2 Promoters’ Profile…………………………………………………………………………………….32

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2.3.3 Business Model of LivingSeed……………………………………………………………………33

Logo significance……………………………………………………………………………………..33

Positioning Statement……………………………………………………………………………..34

Product Category……………………………………………………………………………………..36

Packaging Strategy……………………………………………………………………………………41

Target Segment………………………………………………………………………………………..44

2.3.4 Home Page……………………………………………………………………………………..........49

Tentative Design……………………………………………………………………………………….49

3. Recommendations……………………………………………………………………………………………….51

4. Learnings……………………………………………………………………………………………………………52

5. Conclusion…………………………………………………………………………………………………...........53

6. References……………………………………………………………………………………………………………54

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EXECUTIVE SUMMARY

Name of the organisation: LivingSeed

Address of the organization: 1st cross, 2nd main, 3rd stage, Indiranagar,

Bangalore-560038

Title of the Project: Market Research and Critical Aspects of Marketing for LivingSeed Objective of the Internship:

To study the FMCG industry of India and its herbal companies. To observe and study the critical factors required for marketing of

the products. To come up with a marketing strategy for LivingSeed.

Conclusion: Conceptualization and building up a marketing strategy for a start up is a step by step process with several thoughts including customer satisfaction, market competition, market size, likes and dislikes of customers etc., considering the critical aspects of marketing and coming up with a unique market strategy for the company.

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1. INTRODUCTION

1.1 Objective of the study:

To study the FMCG industries in India and its various companies.

To study the critical factors required for marketing of products.

To come up with a marketing strategies for LivingSeed.

1.2 Scope of the study:

To conduct an online survey of various FMCG companies related

to herbal companies.

To come up with the critical factors for LivingSeed required for its

marketing.

1.3 Methodology:

It is 3 step approach in order to realize the objective of the SIP:

Gathering various data of different herbal companies based on

the scope of the study.

Study the various factors responsible for the success of a

company.

Come up with a marketing strategies for LivingSeed.

1.4 Limitations of the study:

It was purely online survey, so there was lack of field work.

Data collected from Google may not be up to date which

sometimes creates confusion.

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2.1 ECONOMIC ANALYSIS

1.1 Overview of Indian Economy

India has emerged as one of the fastest growing major economy in the

world as per the Central Statistics Organization (CSO) and International

Monetary Fund (IMF). According to Economic Survey 2015-16, Indian

economy will continue to grow more than 7 percent in 2016-17.

The improvement in India’s economic fundamentals has accelerated in

the year 2015 with the combined impact of strong government

reforms.

Foreign Direct Investment (FDI) in India have increased by 29 percent

during October 2014-December 2015 post the launch of Make in India

campaign compared to 15 month period before the launch.

Growth of FDI inflow in India

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India’s economic growth rate compared to China

According to the World Bank, India’s per capita income is expected to

cross ₹100,000 (US$ 1505.4) in FY 2017 from ₹93231 (US$ 1403.5) in

2016.

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1.2 Current Macroeconomic Environment

India’s economy, which accounts for over 70 percent of

South Asia’s GDP is projected to grow by 7.3 per cent in 2016 and

7.5 per cent in 2017, slightly up from an estimated 7.2 per cent in

2015.

According to Nagesh Kumar, Economist and Head, UN-ESCAP South,

“Spending on infrastructure, health and education is very low

compared to other nations such as China”.

The report has infused more optimism to India’s people, government,

also investors and consumers. The report also said the economic growth

could be sustained for the years to come, establishing India as the

fastest growing economy in 2016.

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1.3 KEY INDUSTRIES IN INDIA

The Indian economy is the ninth largest economy of the

world and also one of the fastest growing economy in the world. This

growth is attributed to various Indian industries which have grown

tremendously post-independence to increase national income, generate

employment, and generate foreign earnings.

The most important industries with their contribution from the point of

view of Indian economy are listed below:

10. Textile Industry (4%)

9. Tourism (6.23%)

8. Chemical Industry (7%)

7. Engineering and Machinery (8%)

6. Transportation Industry (8.5%)

5. IT Industry (9%)

4. Banking and Insurance (10%)

3. Real Estate (13.5%)

2. Agriculture (15.7%)

1. Retail and Wholesale trade (23%)

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2.2 INDUSTRY ANALYSIS

2.2.1 FMCG INDUSTRY IN INDIA

The Indian FMCG (Fast Moving Consumer Goods) sector is the fourth largest in the economy and has a market size estimated to be US$65 billion, growing at 12%. Well established distribution network, as well as intense competition between the organized and unorganized segments are the characteristics of this sector.

Growing awareness, easier access and changing lifestyles have been the key growth drivers for this sector.

RURAL- set to rise Rural areas expected to be the major drivers for the FMCG as growth continues to be high in these regions. The rural areas saw a 16 per cent as compared to 12 per cent rise in urban areas. The Government of India is also supporting the rural population with higher Minimum Support Price (MSP), loan waivers thus helping in reducing the poverty in rural India and giving a boost to purchasing power.

URBAN Trends With rise in disposable income, mid and high income consumers in urban area have shifted their purchasing trend from essential to premium products. In response, firms have started enhancing premium product portfolio.

Food product is the leading segment, accounting for over 43% of the overall market. Personal care (22%) and Fabric care (12%) come next in terms of market share.

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Indian FMCG sector

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The top 10 FMCG brands are:

1. Hindustan Unilever Limited 2. ITC 3. Nestle India 4. Amul 5. Dabur India 6. Asian Paints 7. Cadbury India 8. Britannia Industry 9. Procter and Gamble 10. Marico Industry

Market share of top FMCG Companies in India

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2.2.2 SWOT Analysis of FMCG Industry

STRENGTHS

Strong Brand Presence

Diversified Products &

Packaging

Excellent R&D facilities

THREAT

Intense competition

among the FMCG

companies

FDI in retail will allow

international brands

Tax and regulations

WEAKNESS

Low scope of investing

in technology and

achieving economies of

sale

Low export level

OPPORTUNITY

Rising income levels i.e.

purchasing power of

consumers

Large domestic market

Changing lifestyle of the

society

SWOT

Analysis

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PORTER’S 5 FORCES of FMCG Industry

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Rivalry among Competing Firms

In the FMCG Industry, rivalry among competitors is very fierce.

There are scarce customers because the industry is highly saturated

and the competitors try to snatch their share of market.

Market Players use all sorts of tactics and activities from intensive

advertisement campaigns to promotional stuff and price wars etc.

Hence the intensity of rivalry is very high.

Potential entry of new Competitor FMCG Industry does not have any measures which can control

the entry of new firms.

The resistance is very low and the structure of the industry is so

complex that new firms can easily enter and also offer tough

competition due to cost effectiveness. Hence potential entry of

new firms is highly viable.

Potential Development of Substitute Products There are complex and never ending consumer needs and no firm

can satisfy all sorts of needs alone. There are plenty of substitute

goods available in the market that can be re-placed if consumers

are not satisfied with one.

The wide range of choices and needs give a sufficient room for

new product development that can replace existing goods. This

leads to higher consumer’s expectation.

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Bargaining Power of Suppliers The bargaining power of suppliers of raw materials and

intermediate goods is not very high.

There is ample number of substitute suppliers available and the

raw materials are also readily available and most of the raw

materials are homogeneous.

There is no monopoly situation in the supplier side because the

suppliers are also competing among themselves.

Bargaining Power of Consumers Bargaining power of consumers is also very high. This is because

in FMCG industry the switching costs of most of the goods is very

low and there is no threat of buying one product over other.

Customers are never reluctant to buy or try new things off the

shelf.

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HERBAL INDUSTRY IN INDIA

Herbal industry is growing both globally and nationally with the expected

world market size to reach around ₹334 trillion by 2050. India is a major

player in the herbal market with expected market of around ₹0.4 trillion

by 2020.

Releasing the study by ASSOCHAM (Associated Chamber of Commerce in

India), it revealed that the niche market that India can focus on include

Ayurveda medicines and Dietary Supplements (including health drinks), oil

and other derivatives, skin care and beauty aids.

The study has found that there is a strong demand of raw materials which

includes Amla, Isabgol, Henna, Ashwagandha, and Aloe-Vera which accounts

for over 75% of raw materials used in Herbal preparation.

Today, the Indian cosmetic industry has a plethora of herbal cosmetic brands

like Himalaya, Dabur, Patanjali, Emami etc.

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Market share of top Herbal companies in India

0 1000 2000 3000 4000 5000 6000

Patanjali

Dabur

Emami

Marico

Market Share (cr.) (2015)

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SWOT Analysis of Indian Herbal Industry

STRENGTH

The products are inherently

safe

Smaller product

development time

Low product development

cost

Large pool of buyers

THREATS

Disappearance of

biodiversity

Global competition

Alternate chemical methods

of production

OPPORTUNITY

Creation of entrepreneurship

Creation of employment

Beneficiary for the mankind

WEAKNESS

Yield is nature dependent

Product quality variation due

to lack of process

standardisation

Lack of interest for doing

scientific study on plant and

their products

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TOP 3 Herbal Companies in India

PATANJALI

Patanjali is the leading manufacturer Indian made consumer goods. Located

in Patanjali Food and Herbal Park, Haridwar, they are specialised in

manufacturing herbal products. It is the fastest growing fast moving consumer

company in India.

ESTABLISHMENT

Acharya Balkrishna established Patanjali Ayuveda Limited in 2006

along with Baba Ramdev with the objective of establishing science of

Ayurveda and coordinating with latest technology and ancient

wisdom.

REVENUE Patanjali Ayurveda’s annual turnover for the year 2014-15 increased ₹2500 cr. As compared to previous turnover of ₹1200 cr. (2013-14). Future Group which has tied up with Patanjali sells about ₹30 cr.worth of Patanjali products every month.

PRODUCT CATEGORY Patanjali Ayurveda produces products in the catogories of personal care and food. Patanjali products are cheaper than alternatives due to lesser production and marketing cost.

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DISTRIBUTION CHANNEL

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DABUR

Dabur is India’s most trusted name and world’s largest Ayurveda medicine

and related product manufacturer and natural health care company. From

its humble beginnings in the by lanes of Kolkata, Dabur India Ltd has come a

long way today to become one of the biggest Indian-owned consumer

goods companies with the largest herbal and natural product portfolio in

the world. Overall, Dabur has successfully transformed itself from being a

family-run business to become a professionally managed enterprise.

ESTABLISHMENT

Dabur was founded in 1884 by Dr. S. K. Burman, a physician in West

Bengal, to produce and dispense Ayurvedic medicines.

REVENUE

Dabur is one of the largest FMCG Company in India with a consolidated

revenue of over INR 7,800 cr. (2014-15).

PRODUCT CATEGORY

Dabur India's FMCG portfolio today includes five flagship brands with

distinct brand identities: Dabur as the master brand for natural

healthcare products, Vatika for premium personal care, Hajmola for

digestives, Réal for fruit-based beverages and Fem for facial bleaches

and skin care.

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DISTRIBUTION CHANNEL

Manufacturing Plant

Distributor

Stockiest

Super Stockiest

Regional Warehouse

Company Warehouse

Regional Stockiest

Retailer

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MARICO

Marico is an Indian consumer goods company providing consumer

products and services in the areas of Health and Beauty based in Mumbai.

The company has created one of the biggest brands in India. Every

month, over 70 million packs from Marico reach approximately 130

million consumers.

ESTABLISHMENT

Marico is one of the leading FMCG Company incepted in the year 1988

by Harsh Mariwala.

REVENUE

During 2015, the company generated a turnover of ₹5733 cr. Marico

has 8 factories in India located at Pondicherry, Perundurai, Kanjikode,

Jalgaon, Paldhi, Dehradun, Baddi and Paonta Sahib.

PRODUCT CATEGORY

The organisation holds a number of brands including Parachute, Saffola,

Hair&Care, Nihar, Mediker, Revive, Manjal, Livon, Set Wet, Z, Hair

Code, Eclipse, X-Men, Hercules, Caivil, Code 78 and Black Chic.

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DISTRIBUTION CHANNEL

PLANTS

DEPOTS

DISTRIBUTOR

URBAN CONSUMER

RETAILER

RURAL CONSUMER

RETAILER

STOCKIST

SUPER DISTRIBUTOR

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LICENSES REQUIRED TO MANUFACTURE HERBAL PRODUCTS

To manufacture Ayurveda / Herbal products in India, we need a license from

AYUSH (Ayurveda, Yoga, Unani, Siddha & Homeopathy) and not from FSSAI.

The Ministry of AYUSH is located at Dhanvantry road Bangalore, Karnataka.

3 types of manufacturing licenses issued by AYUSH:

Complete Manufacturing License - Full-fledged manufacturing

license. In this case you will be both marketing and manufacturing

the product. Thus you will have to setup your own manufacturing

unit.

Loan License - Manufacturing license where you loan a

manufacturing unit of a third party manufacturer to make your

products. Thus you will not have to own a manufacturing unit. You

will have to apply for a Loan license and it will be issued to your

company. Then you will have to get an approval for your product

from authorities.

Contract Manufacturing / Third party manufacturing / White label

Manufacturing / Product to Product manufacturing - License where

you will use the manufacturing license of a third-party manufacturer

to manufacture the product. You will be just marketing the product.

Thus you don’t have to own any manufacturing unit and don’t have

to get any license. All liasoning with AYUSH office will be done by the

manufacturer. The Product label will say that the product is

manufactured by the XYZ manufacturer and marketed by your

company.

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DRUGS AND COSMETICS ACT, 1945

Herbal manufacturing industries are covered by this act

Has provision for new license, renewal, definition regarding

manufacturing

Guidelines for GMP (Good Manufacturing Practice) etc.

Below is the application form (Form 24D) to be filled in order to receive a

license for manufacturing herbal products.

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2.3 COMPANY ANALYSIS

2.3.1 COMPANY PROFILE

The Essence

LivingSeed stands for Holistic Wellbeing, which is delivered via

Researched Herbal products to overcome specific health

conditions

Women’s’ everyday Beauty and Wellness kit

Range of Immunity Boosting consumables for everyday wellness

Personalized Lifestyle Schedule to improve quality of life,

longevity & preventive healthcare (For individuals and corporates)

Vision of Identity- 2020 We aim to be branded and known as a healthcare company built

on three guiding principles of:

Transparency

Social Concern and

Genuine Research

Producing and promoting everything that is based on four

elements of being hundred percent:

Herbal

Natural

Vegetarian and

Yogic form

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Accreditations and Certifications

Manufacturing Certifications

Applied for ISO 9001- Quality Management System for

Production

Applied for ISO 14001- Environmental Management System for

Environmental Impact

Trademark Registration

Applied for- Brand LivingSeed and all of its sub brands

Patents

Applied for- “product patent” for haircare product

Approvals

Export Import Certificate- Obtained

VAT Registration- Obtained

Offerings- Products, Wellness Solutions & Healthcare

Consultations

Hair care range

Skin care range

Beauty and Make-up

Wellbeing and Immunity Booster

Corporate Healthcare Programs

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2.3.2 PROMOTERS’ PROFILE

Vaishali R Kumar – Founder

PROFILE: 10 years of combined experience as a corporate trainer, writer, and

health & wellness promoter.

KEY CREDENTIALS: Certified Specialist in Fitness Nutrition from International

Sports Science Association USA, Certified Yoga Instructor from S.V.Y.A.S.A

Bangalore (Deemed University).

Rajit Kumar – Managing Director

PROFILE: Entrepreneurial background, 12 years of experience with a reputed

MNC in India & Abroad.

KEY SKILLS: Sales & Marketing, Distribution Network, Partner Management,

Multi-cultural & Multi-racial Team Management, Organization Structure,

Technology & Digital Solutions.

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MAIN TEXT

2.3.3 Critical Factors of Marketing For LivingSeed The business strategy of a company defines the path that the business will

take to achieve its goals. These goals include the elements of the business

model. The strategy for the business model explains the steps to be followed

by the business in order to achieve its goals. The business strategy should be

contemporary, if not advanced, to meet the current industry demands, as

well as forecasted demands.

The critical factors that might be beneficial in making LivingSeed a successful

company are discussed below:

LOGO SIGNIFICANCE

Logos are intended to be the “face” of a company. They are graphical

displays of a company’s unique identity and through colours and fonts and

images they provide essential information of the company that allows

customers to identify with the company’s core brand. Primary functions of a

logo are to inspire trust, recognition and admiration for a business or

product.

Our logo is the visual definition of “Brand Identity” The leaf that blossoms from the letter i represents

The closeness of every individual with the nature

Plant a seed and get a harvest

Flower of life rising inside every individual

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POSITIONING STATEMENT

Positioning Statement: It is an expression of the way a particular goods

or brand can fill the customers’ need which its competitor can’t. To

make an imprint of that particular product in the customers’ mind. It’s

a description of the core targeted audience to whom the product is

targeted.

Positioning Statement is developed keeping the “basis” in mind:

TARGET- What kind of customers is the company targeting (age

wise, gender wise).

ACTIVITY- Through the positioning statement the company must

reflect its activities (kind of products).

BENEFITS- What advanced benefit the company is going to gift its

customers.

FEATURES- What different and unique features the company has

unlike others to attract the customers.

Positioning Statement of various companies:

DABUR- Dedicated to health and wellbeing of every household.

ZANDU- Ultimate solutions for all health problems.

APPLE- To make contribution to the world by making tools for mind

that advances humankind.

NIKE- Bring inspiration and innovation to every athlete in the world.

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POSTIONING STATEMENTS FOR LivingSeed

I worked on the positioning statement, analysed the positioning statement

of few top herbal companies and made some positioning statements for

LivingSeed on the basis of:

Who the primary competitors are

How those competitors position their business

Understanding of the distinguishing values provided by the products

and services

Who the ideal customers are

Some positioning statements for LivingSeed which I prepared keeping the

“basis” in mind are as follows:

Helping you and your loved ones live naturally

Optimal healthcare solutions for every household

Dedicated to natural healthcare solutions and wellbeing

Helping to commence natural life

Dedicated to holistic wellbeing, inspired by nature

We expel that is harmful and engage that is helpful

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PRODUCT CATEGORY

The range of products that LivingSeed is offering are:

Hair care range

Skin care range

Beauty and Make-up

Wellbeing and Immunity Boosters

Hair Care range - REJUVE

Skin Care range - RADIANZ

Beauty Care range - GLAM

Immunity and Wellbeing – VIGOR

The types, target issues and the benefits from all these products are

discussed below:

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HAIR CARE

RANGE NAME- REJUVE

TYPE TARGET ISSUE BENEFITS Hair Regeneration Therapy (3 months course)

Severe Hair Loss & Hair Thinning, Complete or partial baldness

Triggers new hair growth; Makes hair thicker; Grows hair longer, faster; Improves hair texture/colour; Significantly reduces hair fall; Eliminates dandruff/flakes; Cures itchy scalp

Anti-dandruff Therapy (2 months course)

Dandruff & flaky scalp; scalp acne

Eliminates dandruff; Cures itchy scalp; Improves hair texture

Damage Repair Therapy (2 months course)

Dull, dry, lifeless & frizzy hair; Hair damaged due to heat & chemical treatments; Split ends

Makes hair thicker, stronger and shinier; Stops split ends; Improves hair colour and texture

Anti-Greying Therapy (2 months course)

Premature grey hair, hair with lifeless dull brown colour

Reverses premature greying of hair; Prevents further greying; Makes hair darker and shinier

Deep conditioning Hair Tonic

General Wellbeing

Improves overall hair health; Effectively reduces hair fall; Makes hair darker, thicker, stronger

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SKIN CARE

RANGE NAME- RADIANZ

TYPE TARGET ISSUES BENEFITS Anti-Acne Serum

Acne and zits

Helps clear acne and prevents future

breakout; With regular use, the complexion

looks clear, smooth and vibrant

Anti-Blemish Serum

Skin blemishes; dark spots

Rejuvenates skin and provides a clear

complexion and an even tone

Body Massage Oil

For therapeutic use

Rejuvenates, soothes and tones skin

Anti-Wrinkle Serum

Wrinkles, fine lines, and age spots

Recovers lost firmness & elasticity; Skin feels

firmer; Softens the appearance of wrinkles

Skin Radiance Serum

Dull & dry skin, uneven skin tone

Provides rich hydration; Skin feels firmer and brighter; Softens the

appearance of wrinkles

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BEAUTY CARE

RANGE NAME- GLAM

TYPE TARGET ISSUES BENEFITS

Healing Lip Balm

Dry and Chapped lips, Discoloured lips

Helps and rehydrates the lips, Restores Natural lip colour

Lip Shine

For cosmetic use

Provides natural shine to dull looking

lips

Lip Colour

For cosmetic use

Available in 3 colours: Pink, Peach

and brown

Blush On

For cosmetic use

Available in 3 colours: Pink, Peach

and brown

Eyebrow Booster

For light eye brows

Makes eyebrows thicker and blacker

Facial Toner

Dull skin, open pores

Purifies, Refreshes, Prepares skin for

moisturizer; tightens skin pores

Nail Shine Serum

Dull, discoloured nails

Restores natural nail colour

Face Moisturizer

Normal to Dry skin

Leaves skin feeling soft and smooth

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TYPE TARGET ISSUES BENEFITS

Body Lotion

Normal to Dry skin

Leaves skin feeling soft and smooth

Elbow/Knee Scrub

Dull dark skin

Removes dead skin cells, Stimulates skin

microcirculation, Leaves skin feeling soft and smooth

Body Bath Scrub

Dull dark skin

Removes dead skin cells, Stimulates skin

microcirculation, Leaves skin feeling soft and smooth

IMMUNITY & WELLBEING

BRAND NAME- VIGOR

TYPE TARGET ISSUE BENEFIT Instant Drinks (5

types) Fatigue, Low

Immunity, Frequent Cold & Flu, Prone to Stress & Infections

Effective Rejuvenator, Helps Increase Stamina, Builds Immunity, Improves mental

alertness and increases ability to

handle stress, Rich in Anti-Oxidants

Energy Bars (5 types)

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PACKAGING STRATEGY

Product packaging is an integral component of shopping experience. The

design of the packaging determines if your product will make into the

shopping cart or not.

To make a sale, there are two battles at shelf you have to win. First, people

have noticed your product and reach for it. Secondly, people have to drop it in

the cart.

The product’s packaging is the only weapon to win the battle.

Packaging design must support the following impressions:

Colour- Invokes a physical response

Shape- Creates and supports recognition

Imagery- Stirs emotions and fulfil needs

Words- Informs

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PACKAGING STRATEGY FOR LivingSeed

The approach towards the packaging strategy by LivingSeed is simple:

Packaging strategy by LivingSeed is accompanied by WOW factor which will

influence the customers to recycle and reuse the package for other purposes

(e.g. decorative purpose, as a stand)

The WOW factor involved with the packaging strategy will influence

LivingSeed to go above and beyond customer’s expectation in delivering

great products and services.

The WOW factor involved with the products of LivingSeed makes it different

from other brands.

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The WOW factor involved with each of the products will enable

LivingSeed to attract the customers. Some of the WOW factors of the

LivingSeed products are:

Energy drink (VIGOR) in the shape of a battery.

A small card enclosed to a bottle of body lotion (GLAM) which will

contain the experience of the other customers who has used it.

A comb made of neem tree wood is given with the LivingSeed

shampoo (REJUVE) (the comb has the antibacterial effect and also it

can reduce hair fall).

Oil absorbing sheets (tissues) can be given along with the face wash

(RADIANZ) of LivingSeed.

An anti-hair fall oil is given along with the LivingSeed shampoo

which should be applied after bath.

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TARGET SEGMENT

Before targeting customers, the factors that should be

considered to understand its customers in order to

maximise its profit:

a. Who are you selling to?

b. Why should they buy your products?

c. What do they stand to gain?

So, in order to target customers, LivingSeed performed the customer

scanning.

Customer Scanning

The customer segmentation approach by LivingSeed is

done on the basis of

Gender

Age

The approach is a 3 step approach towards customer

scanning:

Preventive

Curative

Beauty and Wellness

At first, we considered the gender and the age for the classification:

KIDS (Under 18 years of age)

MALE (20-30 years, 30-50 years, above 50 years)

FEMALE (20-50 years, above 50 years)

After classification of the gender age wise, we put the classification under

Preventive, Curative, Beauty and Wellness.

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Preventive care- It consists of measures taken for disease prevention,

as opposed to disease treatment.

Curative care- It is a healthcare given for medical conditions where a

cure is considered achievable.

Beauty & Wellness- It is generally used to mean the healthy balance of

the mind, body and spirit that results in an overall feeling of wellbeing.

KIDS

BELOW 18 YEARS

PREVENTIVE CURATIVE

Immunization,

development,

Blood pressure, obesity

etc.

Regular vision & hearing

checkup

23k children in India

affected by cancer every

year

57% of kids suffering from

tooth-loss

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MALE between 20-30 years

MALE between 30-50 years

MALE

20-30 Years 30-50 Years Above 50 years

PREVENTIVE CURATIVE BEAUTY & WELLNESS

Skin problem

Cholesterol, blood

pressure, vision

examination

Smoking

Nutritional disorders,

Alcohol, stress etc.

45% of male

underwent the

cosmetic procedures

like hair transplant,

facial surgery etc.

PREVENTIVE CURATIVE

Physically active

Healthy food choice

Lower Blood

pressure,

cholestérol etc.

30% of male were

found to be at a

high risk of developing

coronary

heart disease

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MALE above 50 years

CURATIVE

Nearly 44 lakh Indians are suffering from diabetes,

a disease that exposes them to heart attack, stroke,

nerve damage blindness, kidney diseases, high blood

sugar etc.

9% of Indians suffer from sleep disorders

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FEMALE between 20-50 years

FEMALE above 50 years

FEMALE

Above 50 Years 20-50 Years

PREVENTIVE CURATIVE BEAUTY & WELLNESS

Cardio exercises

Pregnancy prevention

More than 50%

women

suffering from breast

cancer in India

Anti-ageing treatment,

manicure, pedicure

Women make up almost

half market for many

gym operations in India

PREVENTIVE BEAUTY & WELLNESS CURATIVE

Good nutrition

Enough sleep

Alcohol in moderation

Abnormal blood sugar

level

Chronic pain

Hair loss

Anti-ageing treatment

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2.3.4 Home Page

Tentative Design

The Home Page of the LivingSeed website is kept

simple unlike other herbal company websites. The home page

consist of images related to nature, family, and some taglines which

clearly depicts that LivingSeed is purely connected to nature helping

every household wellbeing.

The Home Page design which I made is displayed below:

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51

RECOMMENDATIONS

After the completion of my project, I have framed a few recommendations

for the company.

Firstly, it is essential to quickly adapt to the changing technologies

and changing lifestyles and thinking of the consumers.

Secondly, LivingSeed should adopt the traditional channel of

distribution in order to improve the capability of the front-end by

developing skills for stockist’s sales force.

LivingSeed can come up with the concept of forming a retail chain of

herbal products across the country like Reliance as it follows the

concept of umbrella branding.

In order to capture a healthy market share, LivingSeed should not

launch its products with a high price in the market.

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LEARNINGS

Doing internship in 14 weeks was really an opportunity for me where I could

convert my theoretical knowledge into practical and of real world type.

Fortunately, I got to work in a FMCG sector which is expanding day by day.

The working environment that I was being provided was extraordinary and

helped me a lot in delivering my work properly and with full potency of mine.

I had to complete my project within a limited time frame. This, in turn made

me experience the actual stress in a workplace. This, I think will work as real

booster in my near future.

The way my company guide and my faculty guide supported and guided me

was very valuable and I could successfully complete my internship.

To conclude, it can be said that working as an intern in a start-up company

can be real opportunity for students to get familiar with the different

companies, their competition, each and every building blocks on which the

companies stand since these are the factors which are applied in a start-up in

order to enter the market.

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CONCLUSION

A successful start-up requires an in depth market survey. The market survey

helps in making the strategies required for the profit maximisation of an

organisation. Marketing strategy starts with the market place research, taking

into consideration the optimal target customers. Using this information, we

can determine the benefits customers and clients want, what they’re willing

to pay and how can we differentiate the products and services.

The first and foremost step for a start-up is to conduct a market survey of its

competitors, get the useful information and start preparing their own strategy

for launching their products. There are few critical aspects that are to be

considered so that the customers can understand the value proposition of the

company.

Lastly I would like to conclude by saying that conducting a market survey to

prepare strategies requires a rigorous study of the methods and tactics

adopted by its competitors and implementing those targets in a unique way in

their company.

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REFERENCES

Overview of Indian Economy-http://www.ibef.org/economy/indian-economy-overview

Macroeconomic Environment-http://businessworld.in/article/India-To-Be-Fastest-

Growing-Economy-At-7-3-In-2016-UN-Report/22-01-2016-90548/

Key Industries in India-http://listdose.com/top-10-industries-that-contribute-to-indian-

economy/

About FMCG in India- http://www.indiainfoline.com/article/news-top-story/indias-fmcg-

sector-performance-2015-the-new-world-and-race-to-win-it-116010600608_1.html

SWOT Analysis of FMCG sector- http://freaksense.com/swot-analysis-of-fmcg-product-

sector/

Market share of top FMCG companies in India-

https://www.google.co.in/search?q=market+share+of+fmcg+industry+in+india&espv=2&tbm=i

sch&tbo=u&source=univ&sa=X&ved=0ahUKEwjh893x37_MAhUDxI4KHa2LBBEQsAQIIg&biw=13

66&bih=643#imgdii=gAZXgjglyeAnQM%3A%3BgAZXgjglyeAnQM%3A%3B1LWM1sZWAridjM%3

A&imgrc=gAZXgjglyeAnQM%3A

Marico distribution network- http://fmcg-marketing.blogspot.in/2007/12/maricos-

distribution-network.html

Patanjali distribution network-

http://media2.intoday.in/btmt/images/stories//September2015/ramdev-spread-far-n-

wide_111415064710.jpg

Dabur distribution network- http://www.slideshare.net/jkpayal/distribution-channel-of-

dabur

SWOT Analysis of Indian Herbal Industry-

http://www.slideshare.net/asdfadmin/causalloop-and-swot-analysis-of-indian-herbal-industry

Form 24D for manufacturing license- http://www.karunadu.gov.in/ayush/

Types of licenses required- http://www.matsyaveda.com/#!Types-of-Manufacturing-

License-for-Ayurvedic-Herbal-medicines/odjhb/56815e700cf236d403908bbe

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Customer scanning (Preventive, Curative and Beauty & Wellness)-

http://www.hhs.gov,

http://www.newindianexpress.com

mensfitness.com

ncbi.nlm.nih.gov

indiatoday.intoday.in

ccebdm.org

thehealthsite.com