Dabur Supply Chain

PROJECT REPORT ON
THE GAP ANALYSIS IN SALES AND DISTRIBUTION OF

FEM PRODUCTS RELATING TO MODERN TRADE
SUBMITTED TO
Dabur India Limited

Kaushambi, Ghaziabad – 201010
Uttar Pradesh, India
&
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY
GREATER NOIDA
BY
JITESH KHANNA
09DM049
2010
1
Declaration
I Jitesh Khanna, student of Birla Institute of Management Technology, Greater Noida hereby
declare that project entitled “The gap analysis in sales and distribution of FEM products
relating to Modern Trade” is original work done by me under the guidance of Mr Ankur Jain
Area Head Modern Trade (North Zone II) Dabur India Ltd. and Prof. Masilamani, Faculty,
BIMTECH. The information provided in the study is authentic to the best of my knowledge.
All care has been taken to make this report error free and I sincerely regret for any
unintended discrepancies that might have crept into this report. I shall be highly obliged if
errors (if any) be brought to my attention.
Thank You
Jitesh Khanna
PGDM – 09DM049
Jitesh.khanna11@bimtech.ac.in
2
Acknowledgment
In Indian culture, a task is said to be incomplete without the blessings of almighty and
elders. Also acknowledging the work and help of all those who have guided me for the
completion of my research on time.
I am deeply indebted to Mr Ankur Jain Area Head Modern Trade (North Zone II) Dabur India
Ltd. and my faculty mentor Prof. R J Masilamani for not only providing me with the
opportunity for this study, but also enthusing me to work on this very meaningful subject. I
am also grateful for the cooperation and valuable support given to me by the employees of
the organization throughout my training.
Their constant encouragement was a source of strength for me in pursuing this work.
I express my deep sense of gratitude and reverence for my parents and my dear friends for
their endless love, guidance, moral support, encouragement and untiring cooperation
throughout my study and work, without which this work would never have been completed.
I express my sincere thanks to all those who helped me in my training. Still, I feel I have not
been able to express my gratitude to all of them, as no words can thank them for their
teachings and love shown towards me.
Regards
Jitesh Khanna
PGDM – 09DM049
Jitesh.khanna11@bimtech.ac.in
3
Summer Project Certificate
This is to certify that Mr Jitesh Khanna Roll No. 049 a student of PGDM has worked on a
summer project titled “The gap analysis in sales and distribution of FEM products relating
to Modern Trade” at Dabur India Limited after Trimester-III in partial fulfilment of the
requirement for the Post Graduate Diploma in Management programme. This is his/her
original work to the best of my knowledge.
Date: ___________ Signature ________________
(_________________________)
Name of Industry Mentor
Company Seal
4
Summer Project Certificate
This is to certify that Mr Jitesh Khanna Roll No. 049 a student of PGDM has worked on a
summer project titled “The gap analysis in sales and distribution of FEM products relating
to Modern Trade” at Dabur India Limited after Trimester-III in partial fulfilment of the
requirement for the Post Graduate Diploma in Management programme. This is his/her
original work to the best of my knowledge.
Date:___________ Signature ________________
(_________________________)
Name of Faculty Mentor
BIMTECH SEAL
5
Table of Contents
Executive Summary 8
Overview of FMCG Sector in India 10
Introduction 13
Company Profile 14
Introduction to Dabur 15
Dabur Over Years 18
Corporate Philosophy 22
Location of Operations 23
Company Business Activities 25
Dabur Manufacturing facilities in India 26
Dabur worldwide 27
About FEM 28
About the Project 30
FEM Product Portfolio 34
Competitors of FEM 43
Organization Structure 49
Project Analysis 52
First Part
Distribution network of Dabur 54
Distribution process of Dabur in Modern Trade 57
Data Presentation 60
Gaps 71
Second Part
Sale Promotion 74
Sale Promotion done by competition 77
Data Presentation 78
Findings 101
Recommendation
Part 1 105
Part 2
107
6
Conclusion 109
References 110
Bibliography 111
Annexures
Annexure 1 113
Annexure 2 114
Annexure 3 115
Annexure 5 116
Annexure 5 117
Annexure 6 118
Annexure 7 119
Annexure 8 120
Annexure 9 121
Annexure 10 122
Annexure 11 123
7
Executive Summary
Dabur India is one of the leading FMCG Companies in India. The project I undertook is‘Gap
analysis of FEM products in sales & distribution across all national & regional chain modern
trade stores in Delhi, NCR (includes Gurgaon, Faridabad, Noida & Ghaziabad).The study
objectives were:
Identify gaps in distribution, assortment, MBQ levels of FEM products in

these stores within the following categories a) Bleach b) Hair Removal
Cream c) Liquid Soaps
ii) Study promotion/activation mix for these categories done by

competition’ was undertaken was undertaken for duration of two months
as a part of the learning process during the summer training at Dabur
India Ltd.
The main objective of this project is to identify the loopholes that exist in the current
distribution, MBQ levels and assortment of FEM products and the various methods of sale
promotion that can result in incremental sales of FEM products in modern trade.
To study the first part, various modern trade outlets and their central distribution centers
were visited. interviews were conducted with them to know what kind of challenges are
faced by them as regards to FEM. Some of the loopholes that came forward are Fill rate
being less than 65%, retailers only prefer keeping fast moving SKUs thereby neglecting the
other SKUs. Replenishment at times takes more than the stipulated period of delivery. MBQ
levels are constant irrespective of their demand in the market. Footfall of the store is not
considered while deciding the MBQ. Dabur offers very low margins to the retailers.
To solve these problems various suggestions have been mad. For instance to handle low fill
rate, unavailability of one SKU can be substituted by making available more units of another
SKU of the same product. Special schemes should be provided to retailers on sale of slow
moving SKUs. Special norms should be created for timely supply of orders, MBQ level should
be decided as per the footfall in a particular week of a store. Motivation should be given
through various incentive schemes to the distributors, retailers and salesman to keep up the
sale of FEM.
In the second part, a survey was conducted in different modern trade outlets. In total 152
people responded to the survey. Most of them were women in the age group 18-35.
Findings from the survey were that most people think major part of the promotion is done
8
through consumer promotion schemes. People are satisfied with the pricing of FEM, since
FEM promotion is not consistent not many people have bought FEM under promotion. Most
people prefer monetary schemes over non-monetary schemes. People prefer to try a skin
care product before using it.
All the 3 categories of FEM naming Bleach, hair remover and liquid hand wash were put on
the product life cycle stage, and my observations were that while hair remover falls in the
introductory stage, bleach and liquid hand wash comes in the growth stage. Hair Remover
needs more advertising. Personal selling and trial packs should be encouraged. Bleach and
Hand Wash needs advertising, sale promotion and personal selling but above all it is
dependent on word of mouth the biggest promotion tool.
It was an excellent experience while working with Dabur India limited. I learnt about the
environment and culture of the organization, its distribution structure; which I feel will help
me in my future endeavours in life.
9
OVERVIEW OF FMCG SECTOR IN INDIA
10
The Indian FMCG sector is the fourth largest sector in the economy with a total market size
in excess of US$13.1 billion. It has a strong MNC presence and is characterised by a well-
established distribution network, intense competition between the organised and
unorganised segments and low operational cost. Availability of key raw materials, cheaper
labour costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4billion 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 the rural
segments, presents an opportunity to makers of branded products to convert consumers to
branded products. Growth is also likely to come from consumer 'upgrading' in the matured
product categories. With 200 million people expected to shift to processed and packaged
food by2010, India needs around US$ 28 billion of investment in the food-processing
industry.
India is one of the largest emerging markets, with a population of over one billion. India is
one of the largest economies in the world in terms of purchasing power and has a strong
middle class base of 300 million. Around 70 per cent of the total households in India (188
million) reside in the rural areas. The total number of rural households is expected to rise
from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential
market in the world. The annual size of the rural FMCG market was estimated at around US$
10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the
market potential is expected to expand further.
11
Rural-urban profile
Source: Statistical Outline of India (2008-09), NCAER
An average Indian spends around 40 per cent of his income on grocery and 8
per cent on personal care products. The large share of fast moving consumer
goods (FMCG) in total individual spending along with the large population base
is another factor that makes India one of the largest FMCG markets.
Urban Rural
Population 2001-02 (mn household) 53 135
Population 2009-10 (mn household) 69 153
% Distribution (2001-02) 28 72
Market (Towns/ Villages) 3768 627,000
Universe of Outlets (mn) 1 3.3
12
INTRODUCTION
13
Company Profile
Dabur India Limited came into existence over 100 years ago in 1884 in
Calcutta.
The founder of Dabur India Limited-Dr.S.K.Burman (1856-1907) was a

physician who brought Ayurvedic medicines for the masses of Bengal. His off
quoted dictum is the guiding spirit behind Dabur even today:
"What is the life worth which cannot bring comfort to others"
And the Vision of DIL is:
"Dedicated to the health and well-being of every household"
14
Introduction to Dabur
Dabur India Limited came into existence over 100 years ago in 1884 at Calcutta. The
founder, Dr.S.K.Burman, was a practicing allopathic doctor. At that time Malaria, Cholera
and Plague were the common diseases. He was a physician who brought Ayurvedic
medicines to the masses of Bengal. Initially established as a proprietary firm for the
manufacture of chemicals and Ayurvedic drugs it was later on 19th November 1930
incorporated as private limited company. Late Shri C.L.Burman, son of late Dr S.K. Burman
and his son late Shri P.C.Burman in the name of Dr S.K.Burman Pvt. Ltd. to expand the
operations by setting up production facilities at Garia and Narendrapur, West Bengal and
Daburgram, Bihar.
Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st
July1985 and the amalgamated company was renamed DABUR INDIA LIMITED and a fresh
certificate of incorporation was issued to that effect. In 1970, the bulk of manufacturing
facilities were shifted from West Bengal to Faridabad in Haryana.
In 1975, vidogum and chemicals were incorporated in technical collaboration with Unipekin
AG (Switzerland) for the manufacture of edible grade and industrial grade Guargum powder
at Alwar in Rajasthan.
In 1977, a modern automated plant was set up in Sahibabad (U.P.) for the manufacture of
Chyawanprash, Asavrishthas, Hair oil, Tooth powders, Hajmola, and other Ayurvedic
specialties. Certification for production of toiletries and food grade products was issued on
13th October 1986 by the registrar of Delhi and Haryana to the company, Dabur Private
Limited, a closely held Public Limited Company.
It was incorporated as a Private Ltd. Company in the name of Dabur (Dr S.K.Burman) Pvt.
Ltd. From a humble beginning in 1884, a manufacture of traditional medicine in Calcutta,
Dabur has come a long way to become a multifaceted multinational, multi-product, modern
Indian corporation with a global presence. It now enjoys the distinction of being the 2nd
largest FMCG Company and is praised to become a true Indian Multinational.
The main plant was set up in Sahibabad (U.P.) in 1977 for manufacturing of Chyawanprash,
hair oil, tooth powder, Hajmola and other Ayurvedic medicines and food products etc.
Dabur's main line of business is in the sphere of Health care, Personal care and Beauty care.
Its strength lies in natural and herbal preparations.
Dabur's corporate philosophy has always been ahead of its time. The founder's initial
success was mainly due to his direct main campaigns- a technique that became very popular
nearly a century later. The company was one of the earlier Indian companies to have fully
equipped R & D lab as early as in 1919. Today, the company has its own mainframes and
computers are a way of life here.
15
Dabur is also an ISO 9002 certified company. The certification was obtained in 1995 by SGS
YARSLEY international services Limited U.K. Dabur's revenue today exceed Rs.800 crores
with plans to achieve Rs.2, 000 crores by year 2003. Dabur has 34,000 shareholders with
market capitalization of over Rs.1, 400 crores.
Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East. It
has manufacturing base in Egypt also. The company has over 4,000 employees with around
1,500 looking after sales and marketing functions.
The Indian market is being served through a transactional network of sales offices and
carrying and forwarding agents. The company has its offices in London, New York and
Moscow. Dabur products are being exported to around 50 countries. Dabur portfolio is
exceeding 500 products of FMCG and health care products.
The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003.
Company has recorded a growth of 36 per cent in its net profit per cent growth in its
turnover during April-June 2003.
The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300
crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.
The first quarter results should not be annualized as sales usually improve in subsequent
quarters.
16
Dabur Vision
“Dedicated to the health and well-being of every household”
Dabur is a company with a set of established business values, which
direct it's functioning as
well as all its operations. The guiding forces for Dabur are the words
of its founder, Dr .S. K.
Burman, "what is that life worth that cannot give comfort to others."
The Company offers
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The customers,
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Innovation:
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proposals, including
processes
recognizingis the basis of our success.
risks.
Integrity: We are committed to the achievement of business success with integrity. We are
honest with consumers, with business partners and with each other.
17
Dabur Over The Years
More than a century ago, a young doctor started with a vision to provide innovative and
affordable health care products to Indian masses. Thus, was born an organisation today
known as Dabur India Limited. The twelve hundred crores corporate today started with a
small dispensary at Calcutta, the noble thoughts of Dr.S.K.Burman being the main source of
inspiration behind the project. From that humble beginning, the company has grown into
India’s leading manufacturer of consumer health care, personal care and food products. This
phenomenal progress has seen many milestones, some of which are mentioned below:
1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India Limited.
Started from a small shop at Calcutta, he began a direct mailing system to send his
medicines to even the smallest of villages in Bengal. The brand name Dabur is
derived from the words "DA" for Daktar or doctor and "BUR" from Burman.
1896: As the demand for Dabur products grows, Dr Burman felt the need for mass
production for some of his medicines. He set up a small manufacturing plant at
Garhai near Calcutta.
Early 1900s: The next generation of Burman’s takes a conscious decision to enter the
Ayurvedic medicines market, as they believe that it is only through Ayurveda that the
healthcare needs of poor Indians can be met.
1919: The search for processes to suit mass production of Ayurvedic medicines
without compromising on basic Ayurvedic principles lead to the setting up of the first
Research and Development laboratory at Dabur. This initiates a pain staking study of
Ayurvedic medicines as mentioned in age old scriptures, their manufacturing
processes and how to utilize modern equipment to manufacture these medicines
without reducing the efficacy to manufacture these medicines without reducing the
efficacy of these drugs.
1920s: A-manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and

Daburgram. Dabur expands its distribution network to Bihar and northeast.
18
1936: Dabur India (Dr S.K.Burman) Pvt. Ltd. is incorporated.
1940: Dabur diversifiers into personal care products with the launch of its Dabur
Amla Hair Oil. This perfumed hair oil catches the imagination of the common man
and film stars alike and becomes the largest hair oil brand in India.
1949: Dabur Chyawanprash is launched in a tin pack and becomes the first branded
Chyawanprash of India.
1956: Dabur buys its first computer. Accounts and stock keeping are one of the first
operations to be computerized.
1970: Dabur expands its personal care portfolio by adding oral care products. Dabur
Lal Dant Manjan is launched and captures the Indian rural market.
1972: Dabur shifts base to Delhi from Calcutta. Starts production from a hired
manufacturing facility at Faridabad.
1978: Dabur launches the Hajmola tablets. This is the first time that a classical
Ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.
1979: The Dabur Research Foundation (DRF), an independent company is set up to

spearhead Dabur's multi-faceted research. Commercial production starts at
Sahibabad. This is one of the largest and most modern production facilities for
Ayurvedic medicines in India at this time.
1984: The Dabur brand turns 100 but is still young enough to experiment with new
offerings in the market.
19
1986: Dabur becomes a public Limited company through reverse merger with
Vidogum Limited, and is re-christened Dabur India Limited.
1989: Hajmola Candy is launched and captures the imagination of children and
establishes a large market
share.
1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing
and marketing confectionery items such as bubble gums in India.
1993: Dabur set up the oncology formulation plant at Baddi, Himachal Pradesh.
1994: Dabur India Limited comes out with its first public issued at a premium of
Rs.85 per share. The issue is subscribed over 21 times.
1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel
(Pacitaxel). Dabur becomes only the second company in the world to launch this
product. The Dabur Research Foundation develops the unique eco-friendly process
of extracting the drug from the leaves of the Asian Yew Tree.
1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain of
France for cheese other dairy products.
1996: Dabur launches Real fruit juices, which heralds the company's entry into the
processed food market.
1997: The foods division is created, compromising of real fruit juices and Homemade
cooking paste to form the core of this division's product portfolio.
1998: Project STARS (Strive to Achieve Record Successes) is initiated by the company
to achieve accelerated growth in the coming years. The scope of this project is
20
strategic, structural and operational changes to enables efficiencies and improves
growth rates.
1998: The Burman family hands over the reins of the company to a professional, Mr
Ninu Khanna join Dabur, as the Chief Executive Officer.
1999-2000: Dabur achieves the Rs.1000 crores turnover mark.
2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple
active, orange active, homemade pappad, Vatika- an anti-dandruff shampoo.
2002: New launches homemade coconut milk (in south), Tang, Tomato puree, Vatika
light.
2003: Dabur achieves Rs.1, 232 crores turnover mark with an increase of 6 per cent.
Turnover of FMCG reaches to Rs l048.5crores, which shows a profit of Rs. 72 crores.
Turnover of pharmaceuticals reaches to Rs 184 crores with a profit of Rs.13 crores.
21
Corporate Philosophy
Knowledge is the key to growth in today's world. Whatever be the industry, it i s the
knowledge, which provides cutting edge to individual and organisations. For more
than a century nature has been a rich source of knowledge for DABUR. Nature has
not only gives it the ingredients for all its products but also has taught it how to
create a harmony withi n and outside the organisation. Nature has inspired DABUR in
all its acts. Ayurveda - the science of life is based on principles of nature. All
Ayurvedic preparation has their ingredients derived from nature. Dabur has
converted the healing properties of natural ingredients and the age-old knowledge of
Ayurveda into contemporary health care to eliminate health problems of its
consumers.
Dabur is committed to expand the reach of its age-old knowledge of Ayurveda and
Nature through web. Through web the aim is to overcome the physical boundaries to
take Ayurvedic way of life to global frontiers. Dabur India limited understands its
responsibility as a corporate house. It has not only set a sight on increasing turnover
and profitability of the company but also on propagating Ayurveda - The Indian
System of Medicine.
22
Locations of Operations
Head office: Sahibabad, Ghaziabad (U.P.)

Regd. Office: Asaf Ali Road, New Delhi
Corporate office: Kaushambi, Ghaziabad (U.P.)
Sales & Marketing: New Delhi
OFFICES:
Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna (Bihar),
Ahmadabad (Gujarat), Indore (M.P.), Cuttack (Orissa), Mumbai (Maharashtra),
Hyderabad (A.P.), Chennai (Tamil Nadu), Bangalore (Karnataka), Kochi (Kerala),
Guwahati (Assam), Kathmandu (Nepal), Russia, U.K.
FACTORY:
Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani&
Narendrapur (West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.
23
Clearing & Forwarding Agent (C&Fa):
Jammu, Chandigarh (HP) Ambala (Punjab), New Delhi (Delhi), Ghaziabad (U.P.),
Dehradun (U.P.), Lucknow (UP), Ranchi, Patna (Bihar), Guwahati (Assam),
Calcutta (West Bengal), Jaipur (Rajasthan), Ahmadabad (Gujarat), Indore (M.P.)
Raipur (M.P.), Bhubaneswar (Orissa), Cuttack (Orissa), Mumbai (Maharashtra),
Hyderabad (A.P.), Chennai (Tamil Nadu), Bangalore (Karnataka), Cochin
(Kerala).
24
The Companies Business Activities Comprises of;
HEALTH CARE PRODUCTS: Markets a range of OTC health care:
products based on Ayurveda,
some of its products like Chyawanprash, Hajmola, Hajmola Candy,
Pudinhara are market leaders
PERSONAL CARE PRODUCTS: It includes hair care, oral care and honey. Dabur Amla as a brand
with
has over
made 65 beyond
its mark per cent
India;market share
it is a leading inbrand
hair oil theirinrespective categories.
Middle East and Africa. Other
well-known brands are Vatika, Dabur Lal Dant Manjan.
AYURVEDIC SPECIALITIES: There is a range of over 400 Ayurvedic medicines. It has vast range of
classical Ayurvedic drugs and priority Ayurvedic medicines developed by own R&D.
PHARMACEUTICAL DIVISION: It includes a range of natural ethical products like Livfit, Lionitus,
Legal etc., and angel of contract media and gynaecological. This division has a major presence in
Anti-thrombolytic, Anti-migraine therapy and radio opaque dyes.
ONCOLOGY: The formidable range includes brands such as Intel, Docetaxel that were
manufactured in India for the first time by Dabur. The company is a market leader in this
category in India and plans to establish itself as a general Oncology player in selective global
market.
BULK DRUGS AND CHEMICALS: Dabur manufactures synthetic and semisynthetic bulk
pharmaceutical substances, bulk natural compounds and intermediaries. Isolation of pure
natural compounds and custom synthetics are focus areas.
FOODS DIVISION: One of the youngest divisions of the company markets a range of sauces,
ethnic pastes and foods. Real fruit juices gave Indian consumer for the first time, fruit juices with
nothing artificial, no preservatives, no colour and no flavours added. Launched two years back,
the range includes Real Juices and cooking pastes under the brand name Home Made.
NATURAL GUMS: This division manufactures and process Guar gums, Gum Karaya, tamarind
based gums and psyllium husk. The division produces a range of industrial and grade natural
gums to meet the customer specifications.
AYURVEDIC VETERINARY: It deals exclusively in animal hea1thcare. Markets safe and non-toxic
herbal veterinary products for poultry.
25
Dabur Manufacturing Facilities in India
26
Dabur World Wide
Dabur's mission of popularising a natural lifestyle transcends national

boundaries. Today there is global awareness of alternative medicine, nature-
based and holistic lifestyles and an interest in herbal products. Dabur has been
in the forefront of popularising this alternative way of life, marketing its
products in more than 50 countries all over the world.
27
About FEM
Fem is trusted brand known throughout India since 1982. The company
markets bleach, liquid soaps and hair removing creams under the ‘Fem’ brand.
In house R&D: innovative products like Oxybleach (premium cream bleach),
Fem Stratum (hair conditioner), Saka (men’s bleach) and Botanica (skin firming
& anti-wrinkle cream) introduced in the last few years. It has a range of fabric
softeners and stain removers under the brand ‘Bambi’. Markets a range of
pharmaceutical products in dermatology and other segments. Distributions
reach covering 1, 25,000 retail outlets; also covers 25,000 parlours directly.
Manufacturing facilities in Nasik and Baddi (HP); Baddi unit which was set up in
2006 enjoys both excise and IT benefits. Exporting to UAE, Yemen, Oman,
Maldives, Mauritius, Malaysia, Sri Lanka, Bangladesh, Myanmar and Nepal.
Owns the brand ‘Jaquline’ which markets women care products (bleach and
hair removing creams) in US and Middle East. Highly profitable company with
gross margins of over 60%.
28
Acquisition of Controlling Stake in Fem Care Pharma Ltd by Dabur India Ltd
(DIL)
Dabur India Limited signed an agreement to acquire 72.15% stake from the existing
promoters.
The transaction values FCPL at an equity value of Rs 282.4 crores.
Dabur to make an open offer to acquire further 20% of the FCPL’s equity share
capital.
Specialty chemicals division and some other investments will be bought over by
promoters at book value or market value whichever is higher.
Acquisition to be funded through internal accruals of Dabur India Ltd.
Acquisition Rationale
Revenue Synergies
Brand provides access to DIL into fast expanding skin care market at mass price points
Higher reach/penetration for FCPL portfolio through DIL’s distribution network
Potential for extending FEM brand into other related skin care categories.
Potential in International markets: FEM & Jaquline brands have presence in GCC/Middle
east markets which can be expanded.
FCPL’s parlour outreach to be leveraged for promoting Dabur’s personal care portfolio.
Cost Synergies
Combined business to unlock synergies : Sales & Distribution, Marketing, Supply Chain,
Sourcing & Manufacturing
FCPL’s Baddi unit synergistic with DIL’s own skin care plans
Greater efficiencies possible in trade and distribution
Combined Adpro spends can be leveraged to reduce media costs
FCPL’s R&D knowledge in skin care to supplement domain knowledge for DIL
29
ABOUT THE PROJECT
30
Fem Care Pharma Ltd, which has a leadership position in the fairness bleach category and a
strong market position in hair removal and liquid soap category. The other brands in its
portfolio include Oxybleach cream, S K men’s bleach and Bambi fabric softeners.
cquisition of Fem Care Pharma is in line with strategy to aggressively expand Dabur’s scale
of operations and strengthen its presence in the fast moving consumer goods (FMCG) space.
This transaction would give Dabur an entry into the high-growth skin care market with an
established brand name ‘FEM’. Further, Dabur also has the potential to extend the brand
into newer and related skin care categories.
But since the acquisition has taken place, Dabur has not been able to concentrate much on
the distribution and promotion aspect of FEM. FCPL which continued to keep the
distribution of FEM products in OFOs and Kirana Shops while Dabur has taken over the
distribution of FEM products in Modern Trade. I was given the task of identifying loopholes
that exist in the Distribution and Promotion strategy of FEM across all national and regional
chain modern trade stores in Delhi and NCR.
Part 1 of the project

First part of the project is to study the gaps in distribution, assortment and MBQ levels of
FEM product in modern trade stores within the product category naming;
Bleaches
Liquid Soaps
Hair Removal Cream
Since sales and distribution are one of the most important areas of a company, this problem
has to be seen from all the angles before coming to any conclusion. To study the problem of
MBQ levels and Assortment, I had visited some branches of modern trade retails stores and
their distribution centre. Interview was conducted with the store managers, departmental
heads and Dabur’s promoters in these chains about the problems faced related to
distribution strategies because of company or retail house.
List of Modern Trade Retail Chains where FEM products supplied are:
Big Bazaar
Big Apple
Vishal Mega mart
REI 6TEN
Surya Healthcare
Apollo Pharmacy
31
Guardian Pharmacy
Religare
Spencer
H&B Store
Home Store
Part 2 of the project

Second part of the project is study of the promotion mix being done by the competitors
which will increase the sale of the above mentioned 3 FEM products without causing any
disturbance in the various channels of distribution.
Since promotion not only leads to increase in the sale of the product but also increase brand
awareness among the buyers, promotion has become a significant tool being used by the
marketers for not just survival but also leading this highly competitive market.
There are different kinds of promotional schemes used by different companies to market
their products. While some companies depend on monetary schemes other use non-
monetary schemes very significantly. To test which one of them is mostly preferred by the
consumers, I conducted a survey to see what kind of scheme makes a consumer inclined
towards buying that product.
Methodology Adopted
For 2nd part of this project, the method available was to get enough information through
personal interaction with the people visiting the stores with the aid of a questionnaire. The
collection of primary data requires considerable time. In this research, the Primary data
were obtained by actual working in the market and interacting with the buyers.
Questionnaire containing 21 questions was prepared. In total 152 people were interviewed
who visited the different stores at different locations.
32
Stores Visited for Research
1. Big Bazaar – Raja Garden

2. Big Bazaar – Vasant Kunj
3. Big Bazaar – Wazirpur
4. Big Bazaar - Noida
5. Vishal Mega Mart – Tilak Nagar
6. Religare – Dwarka
7. Big Apple – Rajouri Garden
8. Big Apple – Lajpat Nagar
People were asked questions about their preference when it comes to choosing a product
under scheme, what kind of scheme they prefer monetary or non-monetary, then what kind
of monetary or non-monetary schemes do they prefer. People were also asked if these
schemes really influence their buying behaviour. Other questions include through what
mode of communication they got to know about FEM, rate the current promotional strategy
of FEM, etc.
Scope of the Project

A Training Program of 60 days in any organization provides information to all students like.
i) Current organisation work-culture.
ii) Industry practical knowledge.
iii) Gives Professional touch.
iv) Better awareness about market competition.
v) Get chance to face different types of customers and tackle with different situation.
33
FEM Product Portfolio
34
Fairness Bleach
Fem Fairness Bleach is the undisputed leader in the

bleach market in India and has
gained the trust and confidence of millions of users over
last 2 decade s. It doesn’t just
give fairness by oxidizing the facial hair to match with
the skin tone but also helps the
skin to breathe a new life by removing dead cells &
uncloggingMaterial
the pores. Fem Fairness
Description Size MRP
Bleach is a fast and safe way t o get a fairer and healthier
Fem Fairness Creme Bleach Apple & Peach 26.4 gram 35.00
skin. Just 15 minutes of
application
Fem Fairnessprovides 15 days
Creme Bleach Apple & Peach of
52.8 radiant
gram 55.00 looking skin. It is
available in consumer
Fem Fairness packs
Creme Bleach Apple & Peach of
264 gram 110.00
9g / 25g / 50g & parlour pack of 100g / 250g.
35
Perfumed Blue Bleach
Fem Perfumed Blue Bleach is milder bleach specially formulated for those
having a sensitive skin. The advanced formulation of Perfumed Bleach liberates nascent
oxygen in a controlled manner to provide extra fairness that lasts up to 30 days. The
perfumed activator of the Blue Bleach also gives a wonderful aromatic experience to
users. It is available in consumer packs of 9g / 25g / 50g & parlour pack of 100g.
Material Description Size MRP
Fem Fairness Creme Bleach Milk, Pe arl &

blueberry 26.4 Gram 39.00
Fem Fairness Creme Bleach Milk, Pearl &
blueberry 52.8 Gram 63.00
36
Oxybleach
Oxybleach is the healthiest bleach in the world today. Oxybleach provides you a fairer, healthier
radiance that too with many times more Oxygen. It comes with unique pre-bleach cream that forms a
protective shield for even the most sensitive skin, and gives you a safe and enhanc ed bleaching
experience. It is available in a 25g retail pack as well as 300g parlour pack.
Oxy Bleach 25 Gram 60.00
37
Herbal Bleach
Fem Herbal Bleach Contains 16 precious herbs : Keshar, Chandan, Lodhra, Patang, Raktachandan,
Agru, Walaa, Manjistha, Jesthmadh, Temaalpatra, Padmakastha, Kamal, Kosth Kolinjan, Halad, Laakh
& Daruhalad, Which make Kumkumadi Thilam, a proven ancient Ayurvedic formulation for
fairness.Natural and Safe, Fem Herbal Bleach is a blend of nature's best. This makes it perfectly safe
for all skin types, especially sensitive skin. It is available in a 15g retail pack
Fem Herbal Bleach 15 Gram 40.00
38
Saka Oxygen Bleach for Men
Fem a company with a reputation as the innovators in the skin care category has launched Saka -
Oxygen bleach for men. The skin care experts have formulated Saka to gently work wonders in
just
15 minutes. It works with a three-pronged action * Bleaching to remove suntan, * Cleansing to
remove dirt, bacteria, dead cells and provide extra oxygen to the skin, and * Nourishing to unclog
pores. So you can give dull, lifeless skin a total lift, and an instant boost of life.
Saka Bleach 15 Gram 30.00
39
Hair Removing Cream in Flavours
Fem Hair Removing Cream is gentle and painless way to remove unwanted
hair from arms and legs. It provides silky, smooth skin within minutes. Its unique
formulation not only removes hair from the root but also delays the re-growth of
unwanted hair. It is available in 40g of Jar pack and in 25g of Tube pack in pleasant
fragrances of Lemon, Chandan, Rose, and Blossom.
Material Description MRP Size

Fem Hair Remover System Rose (Jar) 40 Gram 35.00
Fem Hair Remover System Blossom (Jar) 40 Gram 35.00
Fem Hair Remover System Lemon (Jar) 40 Gram 35.00
Fem Hair Remover System Chandan (Jar) 40 Gram 35.00
Fem Hair Remover System Rose (Tube) 40 Gram 35.00
Fem Hair Remover System Blossom (Tube) 40 Gram 35.00
Fem Hair Remover System Lemon (Tube) 40 Gram 35.00
Fem Hair Remover System Chandan (Tube) 40 Gram 35.00
Fem Hair Remover System Rose (Tube) 25 Gram 25.00
Fem Hair Remover System Blossom (Tube) 25 Gram 25.00
Fem Hair Remover System Lemon (Tube) 25 Gram 25.00
Fem Hair Remover System Chandan (Tube) 25 Gram 25.00
40
Liquid Hand Wash
Fem Soft Gentle Soap is the only liquid soap made from pure coconut oil that
leaves your hands and face soft, supple and smooth aft er every use. One pearly drop of
this unique liquid is enough to give you a complete cleansing experience. It is available
in five lingering fragrances of Lemon Dew, Chandan, Blossom, Bouquet and Pea ch. It is
available in dispenser pack of 250ml and refill packs of 1 litre and 5 litres.
41
Fem Hand Wash Bouquet 250 ML 59.50
Fem Hand Wash Lemon 250 ML 59.50
Fem Hand Wash Chandan 250 ML 59.50
Fem Hand Wash Peac h 250 ML 59.50
Fem Hand Wash Blossom 250 ML 59.50
Fem Hand Wash Refill Pouch Blossom 200 ML 30.00
Fem Hand Wash Refill Pouch Lemon 200 ML 30.00
Fem Hand Wash Refill Pouch Peac h 200 ML 30.00
Fem Hand Wash Bouquet Refill 1 Litre 149.50
Fem Hand Wash Lemon Refill 1 Litre 149.50
Fem Hand Wash Chandan Refill 1 Litre 149.50
Fem Hand Wash Peac h Refill 1 Litre 149.50
Fem Hand Wash Blossom Refill 1 Litre 149.50
42
COMPETITORS OF FEM
43
FEM faces competition from various national and international brands for its product range.
Fem Care has a leadership position in the fairness bleach category and a strong market
position in hair removal and liquid soap category.
Bleach
In the bleach category there are 2 major players;
Jolen
FEM
Jolene
It Camouflages facial hair, Cleans Skin. It has unique gas flushing action to cleanse skin pores. Strong
antiseptic to prevent infection. Quick & Convenient. It is suitable for all types of skin.
Available in 9g, 18g, 35g, 140g & 300g
SKU MRP
9 Gram 24.00
18 Gram 42.00
35 Gram 75.00
44
Hair Removal Cream
In hair removal categories there are 3 major players are ;
Veet
FEM
Anne French
Veet
Range from Veet creams - suitable for each skin type. Now whether you have
normal, dry or
sensitive skin there is a Veet especially for it. Plus with its special skincare
SKU MRP
ingredients- it will leave 25 Gram 39.00
the skin feeling soft and super smooth. 60 Gram 69.00
Available in 2 sizes: 25g and 60g at Rs 39.00 and 69.00 respectively.
Anne French
Anne French hair remover available in four different fragrances available - sandal, rose, lavender and
lemon.
Available in 2 sizes: 25g and 40g at Rs 33.00 and 39.00 respectively SKU MRP
25 Gram 33.00
40 Gram 39.00
45
Hand Wash (Liquid Soap)
In the hand wash category there is a lot of competition being built in the last few years.
Existing players in this category are;
Dettol
Lifebuoy
FEM
Palmolive
Santoor
Dettol
Dettol introduced the Liquid Hand Wash in 1994. It

was known that many consumers use
Dettol Soap for cleaning hands. Dettol Liquid Soap
gave the consumers a soap in a more
modern and convenient format for hand wash.
Available in pump packs of 250ml and 135ml. Refills
available in 185ml, 475ml and 900ml
SKU MRP
250ml (pump pack) 55
185ml (Refill) 40
900ml (Refill) 164
46
Lifebuoy
Positioned on a ‘protection from germs’ platform it carries the tagline of ‘have no fear’ in the Liquid
handwash segment too. Lifebuoy Hand Soaps offer hospital-strength germ protection, with a unique
formulation that generates a rich lather.
SKU MRP
180ml (Pouch Refill) 25
900ml (Refill) 125
Palmolive
Palmolive launched handwash in October 2003 with a premium pricing and imported stocks.
While the brand is supported by promotions mainly in the
modern trade, it is not active on
air. SKU MRP
1000ml (Refill) 150
47
Santoor
s a strong player in the bar soaps market and with a high market-share in the South,
Santoor launched the Liquid Hand Wash in January 2007, along with media support
SKU MRP
1000ml (Refill) 150
48
ORGANISATION STRUCTURE
49
Structure in Sales and Marketing
50
51
PROJECT ANALYSIS
Part 1 - Identify gaps in distribution,
assortment and MBQ levels of FEM products.
Part 2 - Study promotion/activation mix for
three categories done by competition.
52
First Part
In the first part we will be analysing various gaps that exist in the distribution, assortment
and MBQ levels of FEM products in modern trade. We will only be concentrating on the skin
care category of FEM i.e. Bleach, Liquid Soaps and Hair Removal Cream.
Modern Trade
Modern trade as opposed to traditional retail shops refers to a range of sale methods based
on marketing techniques: for instance in self-service shops you have no more sales
attendants behind the counter; now the customer can touch the articles. The more
expensive goods will be ready at hand whereas you will have to bend to reach goods with
less add value for the store. A few articles will be offered at rock bottom prices with much
publicity in order to attract as many customers as possible. The display of goods is very
important and needs an elaborate know-how.
Modern Trade Stores where FEM products supplied are:

Big Bazaar
Big Apple
Vishal Mega mart
REI 6TEN
Surya Healthcare
Apollo Pharmacy
Guardian Pharmacy
Religare
Spencer
H&B Store
Home Store
53
Distribution Network at Dabur
CONSU
MERS
The above diagram it shows channel of distribution of Dabur, here first the products are
manufactured and from Manufacturing plants the packed goods are supplied to Clearing
And Forwarding Agents(C&FA) and from here the goods are then further supplied to
number of Stockiest or Distributors, from here goods reaches to large number of Retailers
and it is the duty of Stockiest to take orders from retailers and then supply the goods to
them, this work is generally done by stockiest salesman through ready stock or by taking
orders first and then placing the order. From here the goods finally reaches to Customers.
Customer purchases the product from retailers.
54
This was the basic Channel of Distribution used by Dabur,
now I will throw light on each
channel of distribution of Dabur.
MANUFACTURING PLANT:
The manufacturing facility is at Manakpur, Post- Nalagarh, Dist. – Solan, Himachal Pradesh.
This is in a tax-free zone under Central Government Scheme. It is about 50 kms from
Chandigarh on State Highway, about 20 kms from Kalka (Haryana) Railway Station.
Manufacturing facility complying to international GMP standards are under set up to

manufacture Pharmaceutical products and Cosmetic Creams & Lotions.
Four manufacturing set ups with the capacity of 3600 kg per shift can be undertaken. There
will be a facility of jar, aluminium tube and lami tubes filling with automatic labelling and
online packing of the products. There will also be a facility for pouch filling and pillow
packing of tubes.
PROCUREMENT & TRANSPORT:

Getting the raw material and packaging material requirement from the production
unit in charge.
Constant updates on the procurement of materials and transport details.
Production details and ingredient content information from the different personnel
and coordinating this activity.
CLEARING AND FORWARDING AGENTA (C&FA)

From manufacturing plant the stock is transported or supplied to clearing and
forwarding agents.
Clearing and Forwarding Agents is a third party and Dabur gives contract to them, so
company has nothing to do in building the relationship with them.
Here C&FA keep or stock the goods with them.
They charge Dabur for stocking the good and even Dabur don’t mind doing so as it is
a measure of cost cutting as well as there is no need for go downs and maintenance.
For Ghaziabad, Meerut, Delhi NCR there is one C&FA whish is situated in Mohan
Nagar, here all goods which Dabur foods hare kept here.
55
STOCKIEST OR DISTRIBUTORS
Stockiest store the products in their godowns, C&FA supplies the goods to them as
per their order.
Stockiest has some sales men working under him, they are known as stockiest sales
man. Their work is to place the products in the market and take order from retailers
and then supply goods to them.
Sales man either takes ready stock with them or they first take orders and then
supply goods later on.
There is a beat which is a schedule route of sales man, means sales man has to daily
cover the route as mention in the beat.
Merchandising, making products visible, pasting posters, putting banners, and seeing
that goods are properly placed in the retail outlets is also the duty of stockiest sales
man.
Companies’ sales officer keeps a check on the stockiest and monthly report is also
prepared which is further analysed by ASM & ZSM.
In Noida Dabur has 1 stockist, and in Ghaziabad 1
RETAILERS
Retailers are backbone of the company as they are the one who can take the product
on new heights or can bring it down to toes.
Stockiest supplies goods to retailers and tries Persuading retailers to give the brand
special displays (using merchandising tools) to get affective brand presence, and
arranging it in more noticeable manner.
Classification of outlets in different type of markets is different according to their
sales volume.
TYPES OF RETAILS OUTLETS
Class Average Monthly Business

A Above 10,000
B 5,000-10,000
C Upto 5,000
Margin of retailers is always higher than stockiest.

Retailers are the one who have direct contact with the customers.
56
Distribution Process or Supply Chain of Dabur in
Modern Trade
Process at Distributor Level
Clearing and Forwarding Agent sends required

order to the stockiest or distributor.
Distributor receiv es goods as per the order placed

and enters the same in his stock book.
CFAs keep receiving goods from the Manufacturing Unit as per the production of
goods.
Manufacturing Unit produces goods according to the Sales Forecast done.
Sales Forecast for FEM is done on the basis of last 3 months sales.
Data from various modern trade chains is collected to calculate the sale of FEM
products and accordingly considering the demand and sales figure, sales forecast for
the coming 3 months is made and the manufacturing unit is asked to produce the
required quantity.
Dabur’s distributors maintain at least 15 days of inventory with them.
57
Process at Store Level for Order regeneration
Counting of Current Stock available at the store
Raising a purchase order to the vendor by the

category (In head office and zonal office)
Purchase order generated is sent to the

distributor or the Dabur Merchandiser.
Dabur Merchandiser further sends it to the

Distributor.
Counting of the stock present in the store in done by the Dabur Promoter who are
present in the store or by the Dabur Merchandiser.
After going the through the stock available in the store. Dabur representative places
order with the Department Head in case order is placed through Centre Distribution
Centre and through store manager or the department manager when the order is
placed from the Store itself.
MBQ level are generally decided by the Centre Distribution Centre or the Store
Manager.
Purchase Order generated is send to the Dabur Distributor.
Replenishment takes place within 3 days from the dispatch of the purchase order.
Payment as regards to the Purchase order is done on credit basis.
58
Deliv ery of the required (negotiated) stock from
the distributor’s end to the store or ware house by
the help of transporter (at company’s expense)
Receiving of the material at the store with all the Receiving of the material at the central ware
required documents house (C.D.C.) Indore
Dewas naka
Document check by the security at the gate and in Weighing, counting of cartoons, generation of I.R.
ward register is maintained by following all the no. by putting information on SAP
rules of S.O.P.
Compare the material with the documents, stamp Stamp on P.O.D. copy and return to the
the documents, write information with signature transporter
of the security and then unload the truck
Transfer of the material to the store ware house Segregation of the material (M.C. wise and
category wise)
Send the stock to the floor as per the requirement Racking of the material by giving location to the
rack as well as to the box (for the maintenance of
the W.M.S. sheet)
Out warding of the material from central ware

house to the store, after receiving S.T.O. from the
store.
Receiving of the material at the store against

59 S.T.N.
DATA PRESENTATION AND DATA ANALYSIS
To study the gaps that are prevalent in the Distribution system of Dabur for
FEM products, I
visited 70 Modern Trade stores and their Distribution Center (DC) of
different Chains in
Delhi and NCR Region.
There I just orally asked them few questions related to the SKUs that are
being kept by
them, what is the MBQ Levels of different FEM product, what are the
deciding factor behind
setting up of MBQ level, how is the fill rate of FEM, how is the distribution
system of FEM,
how much time it takes for replenishment, are they satisfied with the
margin provided by
the company, are they satisfied with the Dabur as a company, etc.
60
Satisfaction as regards to Distribution of FEM products.
Satisfaction
Yes 45
No 25
45
25
10
15
200
25
5 Yes No
30
35 Series1
40
45
Interpretation:-
It is quite evident from the chart that out of 70 outlets and distribution
centres visited by
me, 45 of them feels that distribution system of Dabur is satisfactory
while 25 of them are
not satisfied with it. Some of the reasons given were margins offered
by the company, fill
rate being low, credit issues with the company etc. But at the same
time Positive feedback 61
about Dabur was that since Dabur has taken over FEM, there has
been a drastic
improvement in the distribution of FEM products.
Various fast moving and slow moving SKU’s of FEM.
Item Name MRP Size UOM Quantity

MaySold
and in
June
Fem Fairness Creme Bleach Apple & Peach 26.4 g 32 25 GM 508
Fem Fairness Creme Bleach Apple & Peach 52. 8 g 51 50 GM 777
Fem Fairness Creme Bleach Milk, Pearl & blueberry 26.4 g 39 25 GM 688
Fem Fairness Creme Bleach Milk, Pearl & blueberry 52.8 g 63 50 GM 629
Oxy Bleach 60 25 GM 1,159
Saka Bleach 30 15 GM 660
Fem Herbal Bleach 40 15 GM 1,032
Fem Hair Remover System Rose (Tube) 25 25 GM 144
Fem Hair Remover System Lemon (Tube) 25 25 GM 110
Fem Hair Remover System Blossom (Tube) 25 25 GM 4
Fem Hair Remover System Chandan (Tube) 29 25 GM 4
Fem Hair Remover System Chandan (Jar) 35 40 GM 112
Fem Hair Remover System Chandan (Jar) 37 40 GM 92
Fem Hair Remover System Rose (Jar) 35 40 GM 78
Fem Hair Remover System Lemon (Jar) 35 40 GM 108
Fem Hand Wash Bouquet 59.5 250 ML 152
Fem Hand Wash Lemon 59.5 250 ML 66
Fem Hand Wash Blossom 59.5 250 ML 238
Fem Hand W ash Refill Pouch Blossom 30 200 ML 24
Fem Hand W ash Refill Pouch Lemon 30 200 ML 102
Fem Hand Wash Refill Pouch Peach 30 200 ML 23
Fem Hand Wash Bouquet Refill 149.5 1 Ltr 24
Fem Hand Wash Lemon Refill 149.5 1 Ltr 42
Fem Hand Wash Chandan Refill 149.5 1 Ltr 30
Fem Hand Wash Peach Refill 149.5 1 Ltr 74
Fem Hand Wash Blossom Refill 149.5 1 Ltr 34
Fem Hand Wash Lemon Refill 555 5 Ltr 4
Fem Hand Wash Peach Refill 555 5 Ltr 1
Fem Hand Wash Blossom Refill 555 5 Ltr 3
Quantity sold is till 15th of June.
Source – Vijman India
62
Total SKU 39
Fast Moving 7
Slow Moving 32
32
7
10
15
20
250
305 Fast Moving Slow Moving
As we see in the aboveSeries1

35 list of FEM Products, there is a total of 39
SKUs but only 7 of them
are fast moving products rest of the SKUs are slow moving. When
Interpretation:-
asked various retailers
that why they are not keeping all the SKUs, the reason given was
only fast moving products
are preferred because the slow moving product does not have high
sales and they only
occupy shelf space in the store.
All the bleaches of FEM are highly fast moving while Hand Wash
and Hair Removal are not
at all sold in comparison to Bleach. ccording some of the retailers
Bleach’s demand is so
high that the supply always fall short of it, whereas in case of Hand
Wash and Hair Removal
it’s the opposite, stock for them is kept on the shelf for more than 25-
30 days without any
63
sale in small modern trade stores.
That is why out of 39 SKUs registered with almost all the Modern
Trade stores, most of the
Chains keep only around 20-25 SKUs. Majorly bleach of all SKUs,
Hair Removal Cream of 40
gram Tubes in all variants and Hand Wash 250ml sprays.
Fill Rate of FEM products ordered.
Fill Rate – Sales order processing measurement that

quantifies the ability to fill orders.
There are various ways of measuring fill rate. Line
fill compares the number of line items
shipped complete to the total number of lines ordered
( 95 line items shipped complete out
of 100 lines ordered would result in a 95% line fill
rate). Order fill compares the number of
orders shipped complete to the total number of orders
shipped.
Party 1 - Express Retail Service (Modern trade chain known as Big Apple)
Party 2 – Vijman India (Distributor of Dabur India
Limited)
Now to calculate fill rate, I have taken few examples
Case 1
of Purchase
First Orders
Purchase Order (See Annexure and
1) Supply against
Date 03.05.2010
them.
PO For this I have collected POs of Big Apple and
No. 272/10
Net Bill Amount – Rs. 169925
what has been the supply against it for
the month of May. This will not only tell us the Fill
RateBillof(Seethe
Supply company
Annexure 6) but also time gap
Date 06.05.2010
between
Invoice order placed and goods replenished.
No. A0000036
Net Amount – Rs. 92907
In this Fill Rate will be calculated value wise.

For First PO Fill Rate is 55%. Other than this of the 10 SKUs of FEM that are placed in the
order only 7 are supplied. And of those 7 as well some orders are not fully supplied. Goods
are replenished within 3 days from the date of placing of order.
64
Case 2
Second Purchase Order (See Annexure 2)

Date 10.05.2010
PO No. 330/10
Supply Bill (See Annexure 7)
Date 20.05.2010
Invoice No. A0000061
For Second Purchase order Fill Rate is 79%
(calculated value wise). Of the 7 FEM SKUs that
were ordered only 5 were supplied. Other than the fill
rate issue, the order was sent on
10.05.2010 whereas the goods against them have been
supplied
Case 3 on 20.05.2010; there was a
gapPurchase
Third of 10Order
days between
(See Annexure 3) order and supply.
Date 20.05.2010
PO No. 426/10
Date 22.05.2010
For Third order Fill Rate is 83% (calculated value wise). Out of 4
FEM SKUs that were
ordered in the PO, 3 of them were supplied. Replenishment was very
good for this order;
the goods were supplied within
65 2 days from the placing of order.
Case 4
Fourth Purchase Order (See Annexure 4)
Date 27.05.2010
PO No. 490/10
Date 30.05.2010
ForAmount
Net fourth order Fill Rate is 91% (calculated value wise). All
- Rs. 70131
the SKUs which were ordered
have bee n supplied as well. 2 of the SKUs are there in
which the whole quantity demanded
is not supplied. In one of them 60 pieces and in other 90
pieces were ordered but 36 and 66
respectively have been supplied against them.
We discussed 4 purchase order and supply against them of

the same company in the month
Cases:
of1.2. May. While in the 1st PO, fill rate was too low, it kept
Low Fill Rate value wise
Too much time taken in Replenishment
increasing
3. Low Fill Ratewith high variation from
line wise
4. Perfect order and supply.
55% to 79% to 91%. In the second PO it was observed that
with the fill rate, even
replenishment of order took too long. IN the third PO fill
rate and order supply date was
fine but 0 quantity of one of the SKUs was supplied, this
means that fill rate line wise 66
was
80% in this case. There was almost nothing wrong in the
fourth PO, it can be called as a
perfect purchase order and supply against it. We had 4 cases
with 4 different situations.
Date 05.05.2010
Invoice No. B0000273
Another case of Fill Rate;
Party 1 – Future Value Retail (Modern trade chain known as Big Apple)
In this case Fill Rate is 39% calculated value wise. Of the
Party 2 – Vijman India (Distributor of Dabur India Limited)
13 SKUs of FEM which were
ordered
Purchase Orderonly 5 SKUs
(See Annexure 5) were supplied. Replenishment date
Date 02.05.2010
was
PO No. within the time limit.
4504419715
One of the other things I observed in this Purchase Order
is that purchase order was
generated on 02.05.2010 which is being 1 wee k of the

month. So while I was there in the Big
Bazaar store for Interview, I noticed that there large
amount of people who come in the first
week of the month as compared to rest of the weeks.
When confirming with the authorities
I got to know that footfall is 30-35% more in first week of
the month as compared to rest of
the weeks. This is due to the reason that most of the
service class people get their salaries in
first 10 days of the month and that is the time when the
purchasing power of an individual is
the most.
Since first 10 days of the month are very crucial from the
sale point of view, there should
not be any miss in the SKUs supplied in these particular
days. Because unavailability
67 of
products can result in not only losing the sale at that point
of time, but the customer may
also switch to some other brand thereby we as company
loose a loyal customer as well.
MBQ Levels
To keep a steady stock watch for the reorder of basic goods is time consuming and vital to
profits. Different stores have different criteria to compute what the MBQ level of an item
should be. The retailer can use past sale data of last month or last 3 month’s sale or in some
cases where product is seasonal or has a demand in particular season; MBQ levels are
decided season wise as well. This profit-enhancing feature uses sales history to calculate
scientifically what and when to reorder, with less paperwork and less guesswork. MBQ
(minimum base quantity) methodology has been used for efficiently handling the inventory
based on past sales track.
While interviewing the outlets and distribution centres of

retail chain, when asked about
how they are deciding the MBQ level, a lot of inputs came
as regards to the factors that they
consider while deciding the MBQ level of an item; the same
has been put on graph to see
MBQ level deciding factor
what arePasttheMonth Sale

factors that are27 most considered by retails
Past 3 Months Sale 11
chains.
Stock in Hand 7
Footfall 21
Season 4
68
6%
38% Past Month Sale

30% Past 3 Months Sale
Stock in Hand
Footfall
Season
10%
16%
As we see in the chart that most of the outlets or modern

trade chain prefer deciding their
MBQ level on the basis of past month’s sale, they have the
highest preference with 38%.
Interpretation:-
Next is footfall in a particular outlet, now this depends on
various sub factors like what kind
of people are actually in and around that area where the
outlet is located, the type of
income level of people in that area and various other
demographics. Footfall got 30%
preference while deciding the MBQ level of a particular
product. Past 3 months sale of a
product got 16% while 10% are in favour stock in hand in
that particular store, this factor is
considered most by those chains whose inventory
management is centrally controlled. And
the last with 6% preference is Season. According to me this
got the least percentage
because of a limitation that
69
Season factor is considered most
in seasonal products and since
this question was asked keeping in mind the FEM products
not many people preferred this
option.
Case Experience regarding MBQ
Level
I had frequent visits in most of the Big Bazaar stores in the Delhi region in the month of May
in different weeks. There I noticed that the MBQ level are decided on the basis of past
month sale, but the MBQs of all almost all the bleach products were same irrespective of
their demand.
During 1st week of May, the demand for Oxy Bleach and Herbal Bleach was very high in all
the stores, MBQ level ordered for both the products was between 24-36 pieces in almost all
the stores. But on visiting Big Bazaar Vasant Kunj store I noticed that of 36 pieces, 31 pieces
of Oxy Bleach were sold on the very first day of the replenishment of stock, now for rest of
the week there were only 5 pieces of Oxy Bleach were left, which ultimately resulted in no
stock for next 5 days.
When I visited the store after 15 days, the same scenario was experienced again.
When I asked the Dabur promoter in the store, why the same MBQ was given for oxy
bleach, the lady there said that she informed the concerned authorities about the same but
no action has been taken.
In another experience there was no supply of Oxy Bleach for one week in all the Big Bazaar
stores because of blockage of Oxy Bleach Code which resulted in unavailability of Oxy Bleach
in all the stores at the time when its demands is reaching its heights.
70
Gaps that were noticed in the distribution, assortment
and MBQ level are;
First and the foremost major gap is the Fill Rate, being on an average less than 65%
calculated value wise. Fill rate is low because of unavailability of products in required
quantity from the company and distributor. Fill rate is low not just value wise, but it’s
the same SKU wise or line wise or case wise. Approximately fill rate should be
around 85%, keeping in mind the takeover of FEM by Dabur and the type of facilities
that can be offered by the company to its this segment.
Distributors and retailers are not keen in keeping all the registered SKUs with them
in the store because of the fact that only 20% of them
are fast moving, rest of them
have very slow movement which leads to occupied shelf
space without any sale. Of
allthose
While SKUs,
categoriesretailers
which are put prefer
in the store, to
they keep only
are not kept bleach category
in all the
of FEM because it has a very
variants which leads to unawareness among the consumers about other variants. In
another case, there is a SKU of FEM Fairness Bleach coming in the parlour pack of
high
100 Gram, sale
its demandasis there
compared
stopped making 100 gram packs.
to Hair
in all the Big Bazaar stores but Removal
the company has Cream and
Hand Wash.
Replenishment of FEM stock takes place with rest of the Dabur order, i.e. the same
transport van is used for Dabur stock and FEM stock and if there
is unavailability of
FEM products, it will have to wait for the Dabur Purchase Order
to be generated and
with that supply comes the FEM supply. Other than this it has
been observed that in
some cases it took way too long for supply to take place which
resulted in loss of sale
and may be customer as well, since these days with so many of
competitive products
in the market customer71generally don’t wait for the product to
arrive and therefore
fulfil his need with another brand offering same services.
Unavailability ultimately
resulting in loss of loyal customer.
Minimum Base Quantity is set up without any standard procedure. Moreover the
same quantity is followed irrespective of the demand of that particular. Like in case
of Big Bazaar discussed earlier, in which the footfall on an average is around 2400 on
weekdays and around 3000 on weekends in first 10 days of the month which is 30%
more than the footfall for rest of the month still the same MBQ level is followed
without considering the above factor of footfall. And because of low MBQs supply
falls short of demand leading to loss of sale.
Another of the reason why Modern Trade chains avoid taking orders of all MBQs and
in large quantities because it has been observed that there is a lot of loss of money
and stock on account of theft and pilferage in these stores because of the modern
structure of self-pick of the product whichever consumer wants. Moreover these
chains concentrate more on the outlets than their warehouses which at times lead
to spoilage of products stored in these warehouses.
Purchase orders are generated on the visit of Dabur representative who comes and
write the PO on a piece of paper and then take it back to
the distributor. There are
only 3-4 modern trade chain which send their orders
through mail, rest is done
through
Modern writing
Trade chains on with
are not satisfied thethe piece ofgivenpaper.
Margin been This makes it
to them, while
difficult for the sales person and
their expectation are around 25%, they get somewhere between 15-20%, because of
low margin, the chains are not very particular about Dabur and FEM products and
cangivealso
don’t much lead totosmall
importance their sale. human errors while noting down
the order.
There were credit issues with one of the Chains which led to stoppage of supply of
products to that particular chain. Relationship was
spoiled between the company
and the chain. While the issue was still not
resolved, both the parties already had a
loss because of this issue.
72
Lack of awareness among distributors and retailers about the SKUs being made by
the company. In a conversation with Vijay Aggarwal
who is the owner of Vijman
India, he told me that he himself was not aware of the
Hand Wash SKU coming in 5
litre pack and when asked the reason behind it, he
said there was no communication
from the company regarding the same. Similarly
In some cases, sale representative tried to push the product to the retails chain
while interviewing
because they themselves onewereof the working on target based sales.
These are always
retailers; he said there was no communication
realistic goals but the stress in on an improvement over past
regarding the schemes from the
performance. This led
company.
to overburdening Thisthe means retailer with there has and
the stock beenreleasing
constant
the
communication
pressure their own gap between the
company and the distributors and retailers.
shoulders.
73
Second Part
In the second part we will be analysing various promotion methods that are prevalent in the
skin care segment and which influence the buying behaviour of consumers. We will also
discuss promotional schemes which are preferred by the consumers and which lead to the
consumers buying that particular product. And on that basis we will be recommending
promotional strategy which can result in incremental sales without causing any channel
conflict.
Sale Promotion
The well-known four Ps of marketing represent the sellers’ view of the marketing tools
available for influencing buyers. From a buyer’s point of view, each marketing tool is
designed to deliver a customer benefit. lso the sellers’ four Ps correspond to the
customers’ four Cs.
Four Ps Four Cs
Product Customer solutions
Price Customer cost
Place Convenience
Promotion Communication
Promotion
Promotion is tool with which public will be informed about the availability of a particular
product or service and the uses of such product. Production decides the increase in demand
for a product; promotion will make the prospective buyers to know about the want,
satisfying characteristics of the product, its price and place of availability. This term includes
advertisement, personal selling sales promotion and other selling tools which are increasing
the sales volume.
74
Sales Promotion
Sales promotion is different promotion, Sales promotion refers to those marketing activities
other than personal selling, advertisement and publicity, which stimulate consumer
purchasing and dealer effectiveness, such as displays, shows and expositions,
demonstrations and various non-recurrent selling efforts not in the ordinary routine. Its
purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand
and to make consumers more eager to buy that brand. This includes sales activities which
supplement both personal selling and advertising.
Sales promotion is only a part of promotion. Promotion includes sales promotion,

advertising, personal selling etc. Promotion helps to make all other marketing activities
more effective and efficient, but sales promotion helps only to sales activity. Sales
promotion may be done with the help of tools like displays, exhibitions, free sample
coupons, premium etc. Sales promotion acts as a link between advertisement and persona l
selling.
To sum up, promotion is to make the demand inelastic, while there is change in the price. So
promotion must stimulate the consumers to buy more.
Communication and promotion

Marketing communication involves, sharing of meaning, information, concepts, about the
products and services by buyers and sellers. Such communications are conveyed with the
help of advertisement, salesmanship and sales promotion. A communication will be treated
as effective only when it is properly responded by the buyer. The communication must have
identical meaning for both sender and receiver. If the communication does not properly
reach the receiver or the message received is not the same as the message sent, then that
will be called Break down at the message stage. In the market communication, feedback
means a response, a reaction over the message sent back by a customer to the sender. In
the case of effective communication feedback will be always present.
Need for Product Promotion

a) To introduce a new product in the market.
b) To influence the public with the help of new uses of the product.
c) To increase the frequency of purchase by each buyer.
d) To encourage dealers to stock more goods.
e) To withstand in the competitive field.
f) To increase the sales by imparting special training to salesmen and by window display.
75
Effects of Promotion
1. The present day market is very competitive due to the large number of rivals and
substitutes. With the help of promotion producer must create product differentiation in the
minds of consumers.
2. Promotion is very essential to communicate the use of the product and the nature of the
product to consumers and middlemen
3. Nowadays most of the consumers market their products in wider area and the consumers
are also very large in number. In such cases personal selling alone cannot be used and so all
the steps for promotion are to be followed.
4. During the periods of depression it is essential to maintain at least some minimum
market. Therefore it is very essential to use promotion.
Benefits offered by sales promotions

• It helps in securing trial and defending shelf space against competition.
• Smoothens out the manufacturing capacities of firms in such a way that the peaks and the
valleys are minimized.
• Provides opportunities to manufacturers to reach out market segments with differing
price sensitivity
• dds excitement to the in-store merchandizing of consumer goods
• Motivates the trade to keep more and push more of those brands that are on promotion
Types of sales promotion

Sales promotion can be grouped into the following:
Consumer sales promotions (Pull Strategy) - Consumer sales promotion methods

encourage or stimulate consumers to patronize specific retail stores or try particular
products.
Trade sales promotions (Push strategy) - Trade sales promotion methods stimulate
wholesalers and retailers to carry a producer’s products and to market these
products more aggressively.
76
Sale Promotion done by competition in all 3
categories.
Bleach
Jolen – Having no consumer promotion scheme but works a lot through TV Advertisement,
Magazines and other medium on its Brand building aspect.
Hair Removal Cream

Veet – Consumer Promotion scheme of 20% extra on 60 gram pack. Launched Katrina Kaif as
their brand ambassador. Advertisements are seen on TV channels and Magazines. Other
below the line mode of communication used is Wobblers, consumer’s leaflets, trade offers
etc.
Anne French – Consumer promotion scheme through small sachets of cleansing cream with
40 gram pack. Few days back Kareena Kapoor; famous Bollywood star is announced as the
brand ambassador of Anne French.
Liquid Hand Wash
Dettol – Consumer promotion scheme of 250 ml pouch on purchase of 250 ml spray. In

another scheme Rs. 15 off on 1 litre refill. Dettol also emphasises on its brand building
through TV Advertisement.
Lifebuoy – Consumer promotion through 180 ml pouch refill on purchase of 200 ml spray
bottle. Again a lot of promotion done through TV advertisement and Magazines.
77
DATA PRESENTATION AND DATA ANALYSIS
For the purpose of deciding on the method of Promotion to be adopted, what is the
preference of customer when it comes to choosing the schemes, awareness about FEM etc.,
we used the questionnaire method.
Questionnaire with 21 questions was prepared. Survey was done in various modern trade
stores. People interviewed were those who visited the store for shopping purpose.
Sample Size: 152
Please visited for Survey are:
Big Bazaar – Raja Garden

Big Bazaar – Vasant Kunj
Big Bazaar – Wazirpur
Big Bazaar - Noida
Vishal Mega Mart – Tilak Nagar
Religare – Dwarka
Big Apple – Rajouri Garden
Big Apple – Lajpat Nagar
Limitations of the Survey

During the project we have to trust the dealers and the customers and their perception,
actual may vary.
Consumers in hurry, hence not willing to answer the questions.
Sample size is small, hence not accurate.
The duration of time for the study was limited & hence a comprehensive & elaborate
study could not be undertaken.
78
In total 152 males and females were interviewed for this survey.
Age Group Male Female

0-18 2 5
18-25 7 21
25-35 19 39
35 + 28 31
Total 56 96
96
100
56
39
31
28
21 19
5
10
200
30 0-18 18-25 25-35 35 + Total
40 2 7
50 Male Female
60
70
80
90
Interpretation:-
Of the total of 152, 96 were women and 56 were men. This shows that the major part of the
sample visiting the stores is female. And of them highest are in the age group of 25-35. As
compared to that in the men population highest number is taken by the men of age group
35+. The above data shows that men above 35+ are still the purchasers of the family
whereas female of 25-35 category are slowly becoming the next decision maker of the
family.
79
Occupation of the people interviewed.
Occupation
Student 26
Self Employed 39
Service 57
House wife 27
Others 3
2%
17%
18%
Student
Self Employed
Service
26% House wife

Others
37%
Interpretation:-
37% of the population interviewed was from service class, this shows that a lot of people
from the service class prefer to buy their daily household stuff from the modern trade store.
Next in the line comes the Self Employed with 26%. Student and Housewife are of almost
the same percentage in this sample of population.
80
Awareness about FEM
Awareness
Yes 136
No 16
136
100
120
140
16
20
40
600
80 Yes No
Interpretation:-
Out of total of 152, 89% of the population sample was aware of the FEM. This shows that
the brand awareness of FEM is pretty good. People are familiar with the brand. A lot of
credit of its brand awareness among the skin care segment goes to its Bleach Segment. In
this segment FEM is still the market leader competing with only known brand Jolen.
81
Medium through which people got to know about FEM
Medium of Awareness
TV Advertisement 68
Newspaper 7
Internet 5
Friends and Relatives 24
Store Visit 29
Other 3
2%
21%
TV Advertisment
Newspaper
Internet
50%
Friends and Relatives
18% Store Visit
Other
4%
5%
Interpretation:-
Most of the awareness is spread through the medium of TV Advertisement. Being the most
widely used method of advertisement, this method has become the most influential method
of advertising as well. Preity Zinta has been the brand ambassador for FEM. Recently a
couple to TV advertisement were also launched with Preity Zinta endorsing FEM in them.
21% of the people also got aware through direct visit in the store and noticing the product
there. Word of Mouth holds 3rd position with 18% as done generally through friends and
relatives. 16 people did not answer this question because they were unaware of the
product.
82
No. of Users of FEM out of the Sample Population
Users Male Female Total

Yes 16 82 98
No 40 14 54
Total 56 96 152
98
100
82
54
40
16 14
10
20
0
30 Male Female Total
40
50 Yes No
60
70
80
90
Interpretation:-
Of the total sample population of 152, people who have used FEM is 98 in number and
people who have never used FEM is 54. When a further analysis was done, it was observed
that out of the count of 98 people who have used FEM’s product, 82 were females and the
rest 16 were males. This shows that the major user population of FEM are Females. The
reason could be since FEM has skin care products and Indian Male is still not very open to
using products like Hair Removal and Bleach. 16 Males saying yes could be because of the
growing popularity of FEM’s Men Bleach S K or usage of Liquid Hand Wash.
83
Products Used
Products Used
Hand Wash 37
Bleach 36
Hair Removal Cream 25
25%
38%
Hand Wash
Bleach
Hair Removal Cream
37%
Interpretation:-
If we see in the figure, major usage is of Hand Wash and Bleach with 38% and 37%
respectively. This could be because Hand Wash market is growing Day by Day and FEM’s
Hand Wash are considered best when it comes to quality of the Liquid Soap. With bleach
FEM has already established itself as the market leader. Hair Removal is lacking behind
because the market for it is still in its growing stage and FEM’s competitor is VEET which has
established itself as a well-known Hair Removal brand in the market.
84
Unavailability of FEM in
Stores
Availability
Yes 34
No 66
May Be 28
70 66
60
50
40 34
30 28
20
10
Yes
No
May Be
Interpretation:-
Of the total of 128, there are 34 people who have experiences Unavailability of FEM
products in stores. Whereas 66 people never experienced unavailability of FEM. 28 people
are not sure and 24 people did not answer this question because of some or the other
reason.
85
Pricing of FEM Products
Pricing
Yes 108
No 20
120 108
100
80
60
40
20
20
Yes
No
Interpretation:-
108 people are satisfied with the pricing of FEM whereas 20 people say that pricing needs to
be improved. When interviewed these people regarding why pricing is not satisfactory one
of the common replies came up was quality of FEM products does not match its pricing. Plus
similar products that come in the other brands always have some schemes with them,
whereas with FEM there is hardly any scheme. Again 24 people did not answer this
question, may be because they are ambiguous about the pricing of FEM products.
86
Awareness about various schemes offered by FEM
Awareness about Promotion

Yes 38
No 86
May Be 28
18%
25%
Yes
No
May Be
57%
Interpretation:-
FEM has never been hard promoter of its products but after Dabur has taken over FEM,
Dabur has been able to sign up with Preity Zinta as their brand ambassador for FEM
products. Still not a large amount of money has been spent on its product promotion and
that is the reason why 57% of the people who took this survey are unaware of the
promotion that has been done by the company. Only 25% of the sample population is aware
of the promotion that has been done by FEM and 18% are not sure about it.
87
FEM's overall sale promotion strategy
Overall Promotion strategy

Poor 10
Below Average 26
Average 82
Good 30
Excellent 4
3%
6%
20%
17%
Poor
Below Average
Average
Good
Excellent
54%
Interpretation:-
Of the total population who took this survey, 54% says that the overall promotion strategy
of FEM is average. While 3% says it’s excellent and 6% marked it as poor. gain since FEM
has never spent large amount of money on its brand and product promotion, not many
people are actually thoroughly impressed with the promotion of FEM and this is why it got
an average rating.
88
Promotion done by FEM for each of the 3 category of products.
Hand Wash
For Hand Wash
Poor 24
Below Average 44
Average 54
Good 28
Excellent 2
1%
16%
18%
Poor
Below Average
Average
Good
Excellent
29%
36%
Interpretation:-
FEM being not the market leader in Liquid Hand Wash segment is expected to concentrate
on the promotional aspects because its competitors are very highly reliable on various
promotional methods. This is the reason why most people think that FEM Hand Wash
category promotion is average or below average. There is no current scheme on it. Some 4-5
years back was the last advertisement of FEM Hand Wash was shown on TV; even that
advertisement was not very impressive.
89
Bleach
For Bleach
Poor 14
Below Average 14
Average 56
Good 58
Excellent 10
7% 9%
9%
Poor
Below Average
Average
38% Good
Excellent
37%
Interpretation:-
In the bleach category, a lot of people are impressed with the promotion being done by FEM
that is why they rate the promotion of bleach above average. In fact, Dabur FEM has signed
Preity Zinta as their brand ambassador for the Bleach category. There is another
advertisement being shown on TV regarding SAKA bleach as well. Other than this FEM being
the market leader does not have to do much to increase its sale in this category.
90
Hair Removal Cream
For Hair Removal Cream

Poor 14
Below Average 18
Average 58
Good 54
Excellent 8
5% 9%
12% Poor
Below Average
36% Average
Good
Excellent
38%
Interpretation:-
In the Hair Removal category, 38% feel that the promotion is Average while 36% feel it is
above average or good. FEM has run a couple of Consumer Promotion offers in which
cleansing cream was given with the tubes. Other than these there has not been much
promotion for Hair Removal category. However, its competitors are highly dependent on
commercial methods of promotion.
91
Percentage of people who have bought FEM under promotion
FEM bought under

promotional scheme
Yes 22
No 130
140 130
120
100
80
60
40 22
20
Yes
No
Interpretation:-
Out of total of 152, if we take 96 people who have used FEM some time or other and of
those only 96 people only 22 people have purchased FEM under the promotional scheme,
which is 23% of the total population who has used FEM is still very low. This shows that the
FEM does not provide schemes to its customers on regular basis. Even when they do it is not
communicated to its customers properly which result in low purchasing even when products
sold with schemes.
92
Sale Promotion influencing buying behaviour
Sale Promotion Influence

Yes 78
No 24
May Be 50
33%
51% Yes
No
May Be
16%
Interpretation:-
Out of 152 people, 51% believe that Yes sale promotion does affect their buying behaviour
while 33% are not sure about and 16% believe it does not really matter if the product is
under promotion or not, their buying of a particular brand will be the same irrespective of
the promotional schemes with them. But since more than 50% are of the sample population
thinks that sale promotion is important, it becomes important for FEM to concentrate
individually on each of its product categories and provide schemes with each one of them.
93
Method of sale promotion preferred by consumers
Method of Promotion
Monetary 92
Non-Monetary 60
92
100
90
70 60
80
60
50
40
20
30
10
0
Monetary
Non-Monetary
Interpretation:-
Most of the people who were interviewed prefer Monetary Schemes with the products
above the Non-Monetary schemes and the same is evident from the fact that out of 152
people 92 prefer Monetary Schemes while the rest of 60 people prefer Non-Monetary
schemes. One of the reasons behind this could be that major part of the Indian population is
money centric and they want to save anyhow. This is why we see sale taking variable heights
when goods are sold at low prices or with discount schemes.
94
Which of the monetary method of promotion is being preferred by
Indian consumer?
Non-Monetary Method
Gifts 54
25% Extra Scheme 50
Lucky Draws 8
Trial Packs 40
11%
Discounts (Example –
Rs. 10 off)
35%
Buy 2 get 3rd at 50%
43% Buy one get one

11%
Buy family pack and get
25% off
Interpretation:-
43% of the total population prefers scheme of Buy One get One free, rationale behind this
scheme is, it not increases the quantity in your shopping cart but also decreases the price of
the product which you have originally bought. Next is Discount Scheme, again decreases the
prices of the product. Discount scheme is the most commonly used method of sale promotion.
Buy 2 get 3rd at 50% and Family Pack scheme does not have very popularity among people,
more so because Discount and Buy one Get one, has more advantage and further more
satisfaction as compared to other schemes.
95
Which of the Non-Monetary method of promotion is being
preferred by Indian consumer?
Non-Monetary Method
Gifts 54
25% Extra Scheme 50
Lucky Draws 8
Trial Packs 40
26%
36%
Gifts
25% Extra Scheme
Lucky Draws
5% Trial Packs
33%
Interpretation:-
Among the Non-Monetary methods of promotion, Gifts is the most popular with 36%
preference. One of the reason behind this could that Gifts has this surprise element
attached with it and the consumer is always excited about it. Next is Extra Quantity in the
same pack scheme with 33% preference, this is preferred because it gives you more
quantity at the same price. Trial Packs get 26%, trial packs could be of the same product or
of related product. Lucky Draws are not at all popular among the Indian consumer, reason
could be it has element of luck attached with it and consumer does not want to take risk for
it.
96
Satisfaction after availing these schemes and recommending the
same schemes to their friends and relatives
Yes No
Satisfied after availing schemes 116 36
Would you recommend 124 28
124
116
100
120
140
36
28
20
40
0
60
Yes No
80
Satisfied after availing schemes Would you recommend
Interpretation:-
This shows that more than 75% of the consumers who have availed these promotional
schemes were satisfied from it. It means that the marketers have been able to hit the right
spot which is evident from the satisfaction level shown in this survey. Once a consumer is
satisfied with the product and its sales promotion, he will come back and buy the same
brand or he may buy larger quantity at first instance.
124 people will recommend these schemes to their friends and relatives. This means even
though some people are themselves not satisfied, they will still recommend it. For company
a good scheme means not only promotion through that particular scheme but also through
Word of Mouth ultimately.
97
How many people prefer trying skin care products before using it?
Try before buying

Yes 114
No 38
114
100
120
38
20
40
60
0
80 Yes No
Interpretation:-
Out of population of 152, 114 people will prefer trying that particular product before buying
it. FEM can use this as promotional scheme to make skin care product buyer use their
product. Once a consumer tries and likes the quality of the product, he/she may tend to
switch the brand as well. Like this FEM will not only gain confidence of its existing customers
but will also get new customers as well.
98
Findings from the above study are as follows:-
Most of the people visiting modern trade outlets are in the age group of 18 to 35 and
in that as well if we see the number of females arriving is more as compared to men.
There is a growing trend of females becoming the decision maker in buying
household products.
FEM brand awareness is good. People are aware of the various products lines that
are offered by FEM. Even though FEM does not spend
much on its Brand building
still, through its quality products it has been able to
create good reputation in the
Most part of the promotion of FEM is done through consumer schemes. FEM is not
market.
much dependent on TV Advertisement and other commercial mediums for its
promotion, one of the reasons could be before Dabur has taken over FEM, it was not
very high capital company.
Most of the users FEM products are females because Bleach, Hair Removal are
products which are still not very commonly used
among men.
Among the usage of products, Bleach and Hand Wash takes the market. In fact, FEM
is the market leader in Bleach category. Hand Wash being not so popular still tops
the survey. I am not really sure how this thing happened because when I was on
store visits I noticed that not many people actually preferred FEM Hand Wash.
There is no change required in the pricing of FEM since most people are seem to be
satisfied with the current pricing of FEM products. Pricing
matches the kind of
quality that is being offered by the company.
99
Not many people are aware of various promotional methods adopted by FEM.
Reasons could be that FEM has never spent large chunk of money on its promotional
activities. Whatever has been done, it’s all on a very small scale.
lot of people think FEM’s overall promotional strategy is average as compared to

some of its competitors who spend a lot of money on its
promotion.
People who were interviewed think that while promotion for Hand Wash is below
average, for other 2 categories; Bleach and Hair Removal its average or above
average.
Because FEM’s overall promotional strategy is not very consistent and it does not
offer schemes on regular basis, not many people have bought its
products under
consumer promotion offer.
Sale promotion affects buying behaviour of a lot of people. If offered good scheme
consumer tends to move from its current brand to another brand which is offered
with the valuable scheme for consumer.
Most of people prefer monetary schemes over non-monetary schemes, because

having conventional thinking people in India wants to save
money in the end.
Among the consumers Buy one get one free scheme is very famous as it doubles the
quantity at the same price. Next is discount scheme which again saves money of the
buyer.
In the non-monetary category 25% extra and gift pack schemes are very famous.
Next is the trial packs. People prefer these above
other schemes.
100
If a person likes the scheme, he does tend to recommend it to his friends and
relatives, which bring in more consumers and thereby increase volume of sale.
Product Life-Cycle Stage
3 categories of FEM fall under one of the stages of product life cycle.
Hair Removal Cream – According to me, FEM’s hair removal cream is in its Introduction or
Infancy stage. Reasons could be, it has not been very long since the time it has been
launched and moreover India is still new to the concept of Hair Removal Cream.
Liquid Hand Wash – FEM’s Hand Wash is in its Growth stage. Because hand wash does exist
in India since long, still a lot of people prefer to use normal soap bricks in the Indian
household because it stays for a long time and wastage is also very nominal.
Bleach – FEM’s bleach is also in it Growth stage. Bleaches do exist in the Indian market but
its usage is on a rise since last few years.
101
RECOMMENDATIONS
102
Recommendations
Part 1
To counter the problem of Fill Rate what we can do is, in the purchase order if a
particular product is not available we can send the higher quantity of the different
size of same product. Example if there is order of 100 units of fem pink bleach in 25
gram and 50 gram each. Now if the 50 gram is not available we can send 50 extra
units of 25 gram. By doing this we will not lose the sale and customer since we are
substituting his demand to small unit of same product. Other than this, we can also
make the forecasting process more accurate so that company is not short of goods.
While retailers concentrate more on the sale Bleach, as it is highest selling product of
FEM, they should not avoid other SKUs. We can give them
more margins on the sale
of Hand Wash and Hair Removal Category. Special retail
schemes can also be
introduced like, on purchase of 500 units of Hand Wash 100
units free. This will not
only motivate the retailer to sale slow moving products but will
also increase
Regular survey shouldthe salein these retail chains to see, what kind of variant of
be done
the product and size of the pack is preferred by the consumers. Feedback and
for the company. Giving special discount schemes and high
suggestions can be taken through online surveys.
margins to retailers will
also improve relationship between the company and the retail
Achain.
special dedicated small van should be taken for transport of FEM products to
various stores so that FEM order does not have to wait
for Dabur supply. Special
norms should be laid down and regarding the same
contract should be signed with
the distributor for supply of products within the time
limit.
103
Minimum Base Quantity should not be the same throughout the month. Since there
is an increase in the footfall of consumers in the first 10 days of
the month as
compared to the rest of the month. MBQ should be setup in such
a way that the
supply does not fall short of demand. Example if there are 24
units of bleach
ordered,
Company then
should makeitsure
should be increased
that the distributor to good
is maintaining 36 hygienic
units. Buffer should
also kept
conditions inwarehouse
in the case ofso that spoilage of products can be avoided. Regular
check from the company representative should be done to see of the standards are
sudden orincrease
maintained not. in demand.
Purchase order should be send through mail so that the retailer does not have to
wait for the company representative to come and collect the
order. Sale s person can
be provided with palmtops so that they can take order quickly
and with ease.
Margin should be setup keeping in view the competitive scenario. Low margins can
demotivate the retailer. Healthy margins keep the retailers on their toes and it also
motivates them to sell product since that gives them higher margin and higher
revenue.
Credit issues should be avoided. Retailer, distributors and company should follow
the contract, any conflict should not affect the sale the products.
A notification should be sent to all the distributors and retailers in case company
introduces any new product or SKU. Promotional schemes
should also be
communicated to the retailers through email. Any kind of
communication
Salesman should not pushgap should
the product. Special incentives should be given to the
be avoided.
salesman on achieving their targets. This will keep the salesman motivated, and
those who are unable to achieve targets can be given training to teach them special
selling techniques to improve their productivity.
104
Recommendations
Part 2
Since major part of the FEM consumers is in the age group of 18 to 35 and in that
most of them are females. FEM’s brand and consumer promoti on should be done
keeping in my mind segment of Females aging within 18-35.
While this is primary target segment, men of same age group can also targeted
because there is a growing trend of use Bleach and Hair
Removal Cream among men.
If promotion regarding the same can be done, FEM products can
be made equally
famous among men as well.
FEM’s should concentrate more on the promotion of Hand Wash and Hair Removal
since its sale is still very low as compared to the sale of Bleach.
FEM also needs to keep its promotional activity consistent throughout the year, to
make a mark in the mind of the consumers. Once people buy a
product under a
scheme and if like the quality of the product, then customer’s
loyalty towards that
brand increases.
Since people prefer more of Monetary scheme over Non-Monetary scheme, our
strategy should be such that it includes more of monetary scheme and less of Non-
Monetary. Company should not concentrate of either of the two but on both of
them. Strategy should be made to make use of both the techniques of promotion
efficiently.
105
According to the Analysis done above related to product life cycle stage of different
categories of FEM product. Different promotional methods can
be recommended.
FEM’s hair removal cream is in its Introductory or Infancy stage. Products
coming under this stage need more of advertising and
publicity.
Encouraging personal selling and providing trial of hair
removal
1. Buy Haircream
Removalcan Jar/Tube 40 gram, get Rs. 7 off
be of highest cost
2. Buy 3 packs of Hair effectiveness.
Removal and get discount onIthiswould
month’s recommend
FEMINA magazine
schemes like:
3. Buy Hair Removal and get sachet cleansing cream free.
FEM’s liquid hand wash category falls under Growth stage. In this
advertising, sale promotion and personal selling all grow
more important
but above all of them is the power of word of mouth
which takes all the
momentum of 1liter
4. Buy Hand Wash demand. For
and get Rs. 20 offliquid hand wash I would
5. Buy Hand Wash 250 ml and get 200 ml pouch free
recommend
6. Buy Hand Wash 250 ml and hair remover sachet free
schemes like;
FEM’s bleach category also falls under Growth stage. But since it’s a
market leader and the competition is not that strong. Any
kind of
Consumer promotion will work for this category
7. Buy Bleach and get cold cream sachet free
8. Buy Bleach and get mud pack free
9. Buy Parlour pack and get Rs 20 off
106
CONCLUSION
The Gap analysis in distribution, assortment and MBQ levels and designing the promotion
mix strategy were successfully developed and analysed for FEM products naming; Bleach,
Liquid Hand Wash and Hair Removal Cream. Certain gaps in the distribution should be given
serious consideration by the company. Analysis done on promotion can be helpful in
determining the schemes that are preferred by the buyers the most.
Detailed recommendations on both the parts of the projects have been given. Information
on improving the various loopholes that exist in the distribution structure has been listed in
the report. Some limitations were faced during the collection of data from various sources.
But the same has been overcome with the help of Dabur Management and Distributors of
Dabur. Various promotional schemes have been provided in the recommendations and the
data to validate it as well.
The project was carried out in a good manner and has met the expectations of the
organization and the institute satisfactorily, though it still has quite some scope for
improvements which could be incorporated subsequently.
107
REFRENCES
1. www.google.com
2. www.wikipedia.com
3. http://www.dabur.com
4. http://www.femcareworld.com
5. http://www.supplychainmetric.com
6. http://retail.about.com
7. http://www.citesales.com
8. http://www.bizmove.com/general/m6h5.htm
9. www.docshare.com
10. http://www.indiaprwire.com
108
BIBLOGRAPHY
1. Tapan K. Panda; Sunil Sahadev; (2009) Sales and Distribution Management, Oxford
University Press.
2. Tony Yeshin; (2006) Sale Promotion, Thompson Learning
3. Havaldar, Cavale Krishna, Vasant; Sales and Distribution Management, Tata McGraw-
Hill.
4. Don E. Schultz; William A. Robinson; Lisa A. Petrison; (1998) Sale Promotion

Essential, The McGraw-Hill Companies.
5. Chris Brown (1993), The sales promotion handbook, Kogan Page
109
nnexure
110
Annexure 1
111
Annexure 2
112
Annexure 3
113
Annexure 4
114
Annexure 5
115
Annexure 6
116
Annexure 7
117
Annexure 8
118
Annexure 9
119
Annexure 10
120
Annexure 11
FEM Questionnaire
Q1. Are you aware of FEM as a brand?*
Yes No
Q2. How did you come to know about FEM?
TV Advertisement Newspaper Internet Friends and Relatives Store Visit Other
Q3. Have you ever used FEM Products?*
Yes No
Q4. Which of these FEM products have you used?

Hand Wash Bleach Hair removal cream
Q5. Did you ever experience unavailability of FEM product in general stores?
Yes No May Be
Q6. Are you satisfied with the pricing of FEM Products?

Yes No
Q7. Are you aware of the Sale Promotion being done by FEM?*
Yes No May Be
121
Q14. What kind of Non-Monetary scheme do you prefer?*
Gifts 25% extra scheme Lucky
draws Trial Packs
Q15. Were you satisfied after availing these Promotional

Schemes?*
Liquid Hand Wash
Yes No
Poor Below Average Average
Good Excellent
Bleach
Q16.PoorDo youBelowrecommend
Average your friends
Average Good and Excellent
relatives to avail these
promotional schemes?*
Hair Yes
Removal Cream No
Poor Below Average Average Good Excellent
Q17. If not, please specify why?

Q10. Have ever bought a FEM product under promotion scheme, if yes? Which product?*
Yes No If Yes ___________
Q11. Does Sale Promotion really influence your buying behaviour while purchasing any product?*
Yes No May Be
Q18. Do you prefer to try skin care product before buying them?*
Q12. WhichYes
method of Promotion do you prefer?* No
Monetary Non-Monetary
Q13. What kind of monetary scheme do you prefer?*
Q19. Gender*
Male
Discount (Ex. – Rs. 10 off) Buy 2 get 3rd at 50% Female
Buy one get one Buy family pack and get 25% off
122
123
Q20. Occupation*
Student Self Employed Service
House
Q8. Wife
How do you Other
think is FEM's overall sale promotion strategy?*
Poor Below Average Average Good Excellent
Q9. Rate the promotion done by FEM for each of the below mentioned products*
Q21. Age*

Dabur Supply Chain

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PROJECT REPORT ON

THE GAP ANALYSIS IN SALES AND DISTRIBUTION OF

Dabur India Limited

Uttar Pradesh, India

BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

Date: ___________ Signature ________________

Name of Industry Mentor

Date:___________ Signature ________________

Name of Faculty Mentor

Identify gaps in distribution, assortment, MBQ levels of FEM products in

ii) Study promotion/activation mix for these categories done by

The founder of Dabur India Limited-Dr.S.K.Burman (1856-1907) was a

"What is the life worth which cannot bring comfort to others"

And the Vision of DIL is:

"Dedicated to the health and well-being of every household"

1920s: A-manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and

1979: The Dabur Research Foundation (DRF), an independent company is set up to

1999-2000: Dabur achieves the Rs.1000 crores turnover mark.

Head office: Sahibabad, Ghaziabad (U.P.)

Dabur's mission of popularising a natural lifestyle transcends national

Part 1 of the project

Part 2 of the project

1. Big Bazaar – Raja Garden

Scope of the Project

i) Current organisation work-culture.

ii) Industry practical knowledge.

iii) Gives Professional touch.

iv) Better awareness about market competition.

Fem Fairness Bleach is the undisputed leader in the

Material Description Size MRP

Fem Fairness Creme Bleach Milk, Pe arl &

Material Description Size MRP

Oxy Bleach 25 Gram 60.00

Material Description Size MRP

Fem Herbal Bleach 15 Gram 40.00

Material Description Size MRP

Saka Bleach 15 Gram 30.00

Material Description MRP Size

Fem Hand Wash Bouquet 250 ML 59.50

Fem Hand Wash Lemon 250 ML 59.50

Fem Hand Wash Chandan 250 ML 59.50

Fem Hand Wash Peac h 250 ML 59.50

Fem Hand Wash Blossom 250 ML 59.50

Fem Hand Wash Refill Pouch Blossom 200 ML 30.00

Fem Hand Wash Refill Pouch Lemon 200 ML 30.00

Fem Hand Wash Refill Pouch Peac h 200 ML 30.00

Fem Hand Wash Bouquet Refill 1 Litre 149.50

Fem Hand Wash Lemon Refill 1 Litre 149.50

Fem Hand Wash Chandan Refill 1 Litre 149.50

Fem Hand Wash Peac h Refill 1 Litre 149.50

Fem Hand Wash Blossom Refill 1 Litre 149.50

Available in 9g, 18g, 35g, 140g & 300g

In hair removal categories there are 3 major players are ;

Dettol introduced the Liquid Hand Wash in 1994. It

Modern Trade Stores where FEM products supplied are:

Manufacturing facility complying to international GMP standards are under set up to

PROCUREMENT & TRANSPORT:

CLEARING AND FORWARDING AGENTA (C&FA)

TYPES OF RETAILS OUTLETS

Class Average Monthly Business

Margin of retailers is always higher than stockiest.

Process at Distributor Level

Date: _ Signature ______

Date:_ Signature ______