A STUDY OF VIVEL ACTIVE FAIR ACROSS VARIOUS CHANNELS

A PROJECT REPORT Submitted by

KAVYA JAIN
BATCH (2010-12) In partial fulfillment for the award of the diploma
Of

POST GRADUATE DIPLOMA OF MANAGEMENT STUDIES

JAGAN INSTITUTE OF MANAGEMENT STUDIES (JAIPUR) JULY, 2011

BONAFIDE CERTIFICATE

Certified that this project report

A study of Vivel Active Fair across various channels is

the Bonafide work of KAVYA JAIN of PGDM Batch 2010-2012 who carried out the project work under my supervision.

SIGNATURE Vaibhav Pandey Corporate Guide Assistant Manager ITC ltd Office No. 201, Durlabh Chambers,D-24, Prithviraj road,C-Scheme, Jaipur DATE:

SIGNATURE Dr. Mayank Agarwal Assistant Professor Jagan Institute of Management Studies (JIMS) IP-2&3, Phase-IV, Sitapura Industrial Area,Jaipur DATE:

ACKNOWLEDGEMENT

I am grateful to Mr. Vaibhav Pandey whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of the subject. I am grateful to Dr. Mayank Agarwal whose guidance enabled me to complete the project as per requirements.

Lastly, I offer my regards and blessing to all of those who supported me in any respect during the completion of the project.

SIGNATURE Kavya Jain Student Batch PGDM (2010-2012) DATE:

TABLE OF CONTENTS

1. Cover Page & Title Page 2. Bonafide Certificate 3. Acknowledgement 4. Table of Contents 5. Abstract 6. Introduction 6.1. FMCG 6.2. Personal Care 7. ITC 7.1. History and Evolution 7.2. Vision Statement 7.3. Mission Statement 7.4. Positioning Statement 7.5. ITC Corporate Strategies 7.6. ITC Business Portfolio 7.7. ITC Personal Care Products 7.8. The Organization and Hierarchical Structure in ITC 7.9. ITC FMCG supply chain 7.10. ITC SWOT

8. Competitors 8.1. HUL-Fair & Lovely 8.2. Other competitors 9. Objective of the study 10. The process of New Product Launch at ITC 11. Types of outlets and their placement norms 12. Study on performance of Vivel Active Fair 12.1. 12.2. Research methodology Sampling Methodology

12.3. 12.4. 12.5. 12.6. 12.7. 12.8. 12.9.

Sampling Sampling plan for trade feedback Sampling plan for customer feedback Data collection Tools and techniques Instruments Tools and techniques for analysis

13. Analysis and Findings 13.1. Nielson New Product Launch Evaluator

13.1.1. Impact 13.1.2. Execution 13.1.3. Trial 13.1.4. Repeat 14. Recommendations 15. Retailers questionnaire 16. Customers questionnaire 17. Bibliography

ABSTRACT

ITC has launched Vivel Active Fair under the VIVEL brand in Rajasthan. The report is an earnest endeavor made to understand the performance and acceptance of Vivel Active Fair in Rajasthan and simultaneously ascertain its visibility and availability on the general trade outlets. I was required to conduct an analysis of its launch and repeat sales performance in Rajasthan, which is divided into 8 sections where it has 48 wholesale dealer towns. During the course of study I visited 133 retail outlets in Raipur section, which is shared amongst 5 wholesale dealers, and conducted personal interviews with the retailers to find out about how is Vivel Active Fair selling, what are the customers response, what are the repeat sales etc. Interview also focused on the problems faced by the retailers with respect to services by ITC. Also the motive of research was to also ascertain promotional tools for marketing and provide recommendations for the same. Research also included studying the behavior of consumers, about their preferences for fairness creams and to ascertain the overall buying behavior of consumers with the help of questionnaire.

INTRODUCTION
FMCG
The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organized and unorganized. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). INDUSTRY CLASSIFICATION The FMCG industry is volume driven and is characterized by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts. Following are the segment-wise product details along with the major players:

PERSONAL CARE
The Indian personal care industry is estimated at Rs. 170 billion. The industry is comprised of Fabric Wash, Personal Wash, Hair Care, Oral Care, Skin Care, Colored Cosmetics, Mens toiletries, Fragrances. Personal care industry apart from high profit margins has low entry barriers and severe competition. Besides the large multinational players, there are some domestic players as well. Most of the market share is with the large players like HUL, Marico, P&G, ITC However, cheaper imports and duplicate products are also affecting the major players. Companies have been adopting promotion schemes to dole out freebies and repackaging products in smaller packages to cater to a wider consumer base are some recent trends. The way ahead for the personal care companies is to introduce new and better product, improve penetration, and make the consumer trade up price and quality, rural marketing will be a major thrust for all companies as the urban markets are near saturation levels in terms of penetration.

INDIAN MARKET OF PERSONAL CARE PRODUCTS

MARKET SHARE
HAIR CARE SKIN CARE COLOR COSMETICS FRAGRANCES

ITC
HISTORY AND EVOLUTION
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multibusiness portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Companys beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels

business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya

farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraft was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand Classmate in 2003. Classmate over the years has grown to become Indias largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Text liners, Permanent Ink Markers and White Board Markers in 2009. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC InfoTech is one of Indias fastest growing global IT and IT-enabled services

companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of' Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-

o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands

include Spriha and Mangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivelrange of soaps in February and Vivel range of shampoos in June 2008.

VISION STATEMENT
Sustain ITCs position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.

MISSION STATEMENT
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

POSITIONING STATEMENT
Enduring Value, For the Nation, For the Shareholder

ITC CORPORATE STRATEGIES

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality.

Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC are various businesses.

Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

ITC BUSINESS PORTFOLIO

ITC's diversification is powered by a robust corporate strategy designed to unleash multiple drivers of growth. Its time tested core competencies, namely unmatched distribution reach; superior brand building, effective supply chain management and acknowledged skills in hoteliering have provided ITC the springboard to create new epicenters of growth. Inspired by the overarching vision of making a contribution to the national goals of sustainable development and inclusive growth, ITC has innovatively crafted unique business models that synergize longterm shareholder value creation with enhancing societal capital.

ITC PERSONAL CARE PRODUCTS

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.

ITC forayed into the skin cream category with the launch of Vivel Active Fair in July 2010. Vivel Active Fair locks in fairness ingredients to deliver faster and longer-lasting fairness. This fairness cream helps the skin from the inside as well as the outside, thereby delivering visible results in just 7 days. Additionally, Vivel Active Fairis enriched with vitamins, minerals and moisturizers that provide total care to the skin. The cream has SPF 15 sun protection rating. The cream is suitable for all skin types.

It is sold in various pack sizes, including 50 gram tubes for Rs 72, 25 gram tubes for Rs 39 and 9 gram sachets at a price of Rs 5.

THE ORGANIZATION AND HEIRARCHIAL STRUCTURE IN ITC

SBU(CEO,DMC,BRAND TEAM) JAIPUR BRANCH TRADE MARKETING & DISTRIBUTION

BRANCH(BRANCH MANAGER) 4 DIVISIONS(CIGARETTES,FOOD,PCP,ES PB) DIVISIONS(ASST MANAGER)

CIRCLES(AREA MANAGER) 2 CIRCLES(JAIPUR,JODHPUR) SECTIONS(AREA EXECUTIVE)

WHOLESALE DEALER

BEATS(DEALER SALESMAN)

8 SECTIONS(AJMER,ALWAR,BIKANER,J AIPUR,JODHPUR,KOTA,SIKAR,UDAIPU R)

WHOLESELLER/RETAILER 48 WHOLESALE DEALER TOWNS CONSUMER

ITC FMCG CHANELS

The process of passing the product down the chain to the next organization through Chain of intermediaries, before it finally reaches to the consumer or end-user is known as the distribution chain or channel

Retail

Wholesale

Stockist

FMCG Van

COMPETITORS
HUL-FAIR & LOVELY
Hindustan Unilever Limited is Indias largest consumeer product company and was formed in 1933 by Lever Brothers India.Its the first company to introduce a fairness cream in the Indian market.Fair & Lovely was launched in 1975 Various variants of Fair & Lovely are: Fair & Lovely Fairness Cream-1978 Fair & Lovely Ayurvedic Cream-2001 Fair & Lovely Fairness Cream with extra Brightness-2003 Fair & Lovely Menz Active-2006 Fair & Lovely Body Fairness Milk Fair & Lovely Anti Marks Anti Ageing Cream Perfect Radiance Cream Fair & Lovely Multivitamin Cream

SWOT OF FAIR & LOVELY

STRENGTH Fair & LOvely USP-Poer of beauty and fairness in 4 weeks and has worked better for it Its is world's first and largest fairness cream brand. Its one of the most trusted brand for women in India. Fair & Lovely commands a market share of about 75% in the Rs.1200 Crore Fairness market in India WEAKNESS Many untapped markets around the world Decline in market share from over 90% to about 75%. Entrance of foreign companies with higher skills and efficiency to beat existing players There is no scientific backing for the manufacturer's claims that their product enhances fairness prevented darkening of the skin or removed blemishes. OPPORTUNITIES Even then the sales continue to inclrease.The Indian Market is big and the potentialis even bigger Indian beauty seems to be associated with fairness more than anything else The marketgrowth is 15-20% on year to year. THERATS Rising competitors Fair & lovely is at maturity stage and have chances to slip down to decline stage

OTHER COMPETITORS

OBJECTIVE OF THE STUDY

The objective of the summer training is to ensure that I as a management student develop in real life experience for handling the specific project and also to develop all understanding of the various management activities related to the area of my specialization. This training gives us n substantial corporate exposure and also serves as a useful tool of interaction with the corporate sector. The project has been derived from the field of marketing and is entitled as A study of Vivel Active Fair across various channels The main objectives of this project are: Market launch coverage analysis through Tracker To find out the availability of Vivel Active Fair in the retail market through survey. Understanding about the functioning of merchandising system, visual merchandising and display. To study the sales and repeat sales of Vivel Active Fair and thereby analyze its acceptance by the consumers. To analyze which SKU is more in demand. To analyze which type of outlet is more effective. To study the impact of services by ITC on the retailers behavior towards pushing the product. Compare sales of Vivel Active Fair with that of Fair & Lovely. To find out margins of retailers. To study the retailers perception towards Vivel Active Fair. To know the impact of Retail Visibility on customers ultimate purchase intension. Important factors that influence buying of fairness cream To analyze all the data and provide learnings conclusions and recommendations.

THE PROCESS OF NEW PRODUCT LAUNCH AT ITC

BRAND TEAM/R&D TEAM DEVELOP THE PRODUCT/POSM/ADVT.

CASCADE TO THE BRANCH

BRANCH MAKES A LAUNCH PLAN

CENSUS IS DONE TO DEFINE THE CATEGORIES OF OUTLETS

CASCADE TO THE WHOLESALE DEALERS

CASCADE TO THE SALESMEN

CASCADE TO THE RETAILERS

VISIBILITY AT THE RETAIL OUTLETS DEPENDING UPON THE CATEGORY THE FALL IN

PLACEMENT AT THE RETAIL OUTLETS DEPENDING UPON THE CATEGORY THE FALL IN

TYPES OF OUTLETS AND THEIR PLACEMENT NORMS

Launch is done in the outlets which are category handlers i.e. those outlets which have that particular product of either ITC or any other Brand. Each Dealer Salesman covers 30 outlets per day working for 6 days a week on different beats each day. Therefore total 180 outlets are covered by a DS in a week

DISPLAY NON DISPLAY SACHET CFP STOCKIST MARKETS WHOLESELLER GOLD

Category Handler of >40 tubes Placement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladi Category Handler of 10><40 tubes Placement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladi Category Handler of <10 tubes Placement Quantity was 1 9gm ladi Category Handler Placement Quantity was 1 9gm ladi Placement Quantity was 2 9gm ladi Category Handler Placement Quantity was 6 tubes-50gm,12 tubes-25gm,12 to 24 9 gm ladi Category Handler and also having good relations with DS Placement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladi

STUDY ON THE PERFORMANCE OF VIVEL ACTIVE FAIR

RESEARCH METHODOLOGY
Exploratory research was conducted in Raipur regarding the launch, placement, visibility and repeat sales of Vivel Active Fair and also to ascertain the competitors of Vivel Active Fair Cream. A total of 133 outlets scattered all over Jaipur were surveyed. Written record of the number and names of the stores in the city was maintained. Since it was very difficult to study all the 4054 retailers present in the city and then carry out the study in the short span of 50 days, so retailers were selected according to convenience. All shops and areas were surveyed that could possibly be approached. Personal interview as well as observation was used to carry out the study. Personal interview wer used to ascertain the product performance from the retailers and observation was used to ascertain the visibility of the product.

SAMPLING METHODOLOGY SAMPLING

The sampling design that has been adopted for the purpose of study is convenience sampling

SAMPLE PLAN FOR TRADE FEEDBACK

The project was conducted for the geographical region of Jaipur. The sample size comprised of 133 General Trade Outlets. The sample consists of both the retailers of the general trade.

SAMPLE PLAN FOR CUATOMER FEEDBACK

The project was conducted for the geographical region of Jaipur. The sample size comprised of 190 Customers of various ages and genders, from across Jaipur

DATA COLLECTION
The data collection exercise was carried over a period of 20 days, in the various markets of the region. Over the period of 15 days the data was collected and then all the data was very carefully studied and the results were found out.

TOOLS AND TECHNIQUES

Primary Data- Primary Data was collected during the course of research period with the help of questionnaire that was designed for both retailers and consumers respectively to collect the information that was required to carry out the research. Secondary Data- Secondary Data was collected through books, articles, magazines, previous researches papers that were conducted by the companys officials and representatives.

INSTRUMENT
Questionnaire Personal Interview

TOOLS AND TECHNIQUES FOR ANALYSIS

Simple statistical tools like average, frequency, ratios, tables and graphs

ANALYSIS AND FINDINGS

IMPACT

REPEAT

NIELSEN NEW PRODUCT LAUNCH EVALUATOR

TRIAL

ECECUTION

IMPACT
Sales value/Market Share Category Growth/Cannibalization Effect on Competitors

ECECUTION
Speed to Market and Distribution Gaps Consumer Uptake Awareness Consumer Touch Points

TRIAL
Who trailed the product? Influences on Trial Barriers to Trial Concept Appeal(Product, Packaging, price and Relevance)

REPEAT

Actual Repeat Purchase Intention to repeat Product Performance

IMPACT

FAIR & LOVELY vs VIVEL ACTIVE FAIR

VAF AS % IF F&L AVERAGE VAF SALE PER OUTLET PER MONTH AVERAGE F&L SALE PER OUTLET PER MONTH 7.78 6 9.42 5 7.04 2 12.89 12 12.38 9

76

54

33

90

73

DISPLAY

N-DISPLAY

SACHET

GOLD

COSMETIC

The sale of Fair & Lovely in Jaipur for Past one month has been 4000 tones whereas Vivel Active Fairs sale is just 4.5 tones which imply that its market share is almost negligible.

Based on the interviews with the retailers and the office employees, in spite of getting to a share of 7-12% of sales of Fair & lovely, still Vivel Active Fair has no effect on Fair & Lovelys sale.

But if the different channels are separately considered the gold and cosmetic have taken up better quantum of sale as compared to others.

EXECUTION
Awareness

AWARENESS
AWARE BUT NEVER USED IT USE IT ONLY SOMETIMES NEVER HEARD OF IT USE IT ON A REGULAR BASIS

6% 12%

23%

59%

The study shows that 60 % consumers are aware of the product but dont have any incentive to choose it over their current fairness cream so efforts should be made to increase consumer trial.

Still 23% consumers of fairness creams are unaware about Vivel Active fair so hammering more advertisement would be a general recommendation The consumer uptake is only 6% for those who have started using Vivel Active Fair Regularly

Consumer Touch Points

PERCENTAGE
DISPLAY ON STORE FRIENDS AND RELATIVES PROMOTION AT NATIONAL HANDLOOM TELEVISION

41%

38% 17%

4%

SOURCE OF INFO ABOUT VAF DISPLAY ON STORE FRIENDS AND RELATIVES PROMOTION AT NATIONAL HANDLOOM ADVERTISEMENT

ADVERTISEMENT DISPLAY

RETAILER'S PUSH 63

PROMOTIONS

25

12

21

27

44

18

82

86

12

Television advertisement is always one of the major factors to pull the consumers. But since being the launch king ITC has effectively given the visibility of Vivel Active Fair in the market because of which sale is being boost o And in display too 63% sale is due to Retailer push and the rest 25% by display and 12 % Promotional ear-top scheme.

Whereas even promotion at National Handloom has also shown good returns.

TRIAL
Who trailed the product?
GENDER MALE FEMALE PERCENTAGE 37.25 62.75 INCOME LEVEL LOWER MEDIUM UPPER PERCENTAGE 24 47 29 AGE 20-29 30-39 40-49 PERCENTAGE 54 25 21

Influences on Trial

INFLUENCE ON TRIAL ACCORDING TO CUSTOMER SURVEY

FRIENDS/RELATIVES NO INFLUENCE 10% RETAILER SKIN SPECIALIST

26% 24%

40%

INFLUENCE ON TRIAL ACCORDING TO RETAILER SURVEY

FRIENDS/RELATIVES NO INFLUENCE 0% 10% RETAILER SKIN SPECIALIST

24% 66%

According to the retailers a person who uses Fair & Lovely or Vivel Active Fair is not of the income group who seeks advice of skin specialists. They are primarily influenced by the retailers advice or advertisements.

Barriers to Trial o The main barrier to trial is the loyalty of the consumers towards their existing brand i.e. Fair & Lovely o Second barrier is that the since during the launch phase of a product its success of failure largely depends on retailers interest in selling/pushing the product, which in this case is not so effectively done.

Concept Appeal(Product, Packaging, price and Relevance)

After interviewing the Retailers and Consumers, it can be subjectively said that Product- Vivel Active Fair as a product is known to the consumers but has not yet appealed then to purchase it. Price- Consumers has rated it 5/5 in price. Packaging- Consumers has rated it 5/5 in price Relevance/Quality-Consumers have not yet used the product so unable to rate on quality

REPEAT
Actual Repeat Purchase

% OF OLS OUTLET TOTAL NO OF OLS FOR REPEAT ORDER DISPLAY NDISPLAY SACHET GOLD COSMETIC 43 30 29 10 20 76.74 70.00 79.31 90.00 65.00

AVERAGE REPEAT QUANTITY PER OL 0.22 0.22 0.12 0.47 0.52

AVERAGE REPEAT QTY FOR 50gm PER OLS 0.12 0.11 0.09 0.30 0.30

AVERAGE REPEAT QTY 25 gm PER OLS 0.09 0.07 0.06 0.16 0.18

AVERAGE REPEAT QTY 9gm PER OLS

0.10 0.13 0.08 0.18 0.25

Subjectively it can be conclude from the study that whether it be the share of Vivel Active Fairs Share as compared to Fair & Lovely or repeat orders or the average repeat quantity per outlet GOLD OUTLETS are performing the best.

Whereas in cosmetic outlets the percentage of outlets for repeat order is the least as compared to other channels which shows that the sale is not evenly distributed across all outlets and is concentrated on few (out of 20 outlets 7 outlets have 0 repeat orders and 4 gave only 1repeat order) or we can say that all the performance of the cosmetic outlets can be attributed to just few outlets

In spite of having the display on the stores, the Display has same average repeat quantity per outlet as those of Non- Display Outlets. Which can lead to few conclusions: o The display at the store is not an effective tool to attract customer purchase. o The retailers at the Non-Display outlets are more motivated than the Display Outlets by the 20% Margin ITC is giving on Vivel Active Fair and because of which they are selling more of it

o The consumers in the locality of the Non-Display outlets are our target consumers and not those on the locality of Display Outlets
SKU SKU FOR CUST REP FREQUENCY (TOTAL 64) REPEAT AS % OF TOTAL CUST REPEAT OLS 9gm 25gm 50gm 25 26 13 39.06 40.63 20.31

Intention to repeat

63 % fairness cream users are ready to switch their brand based on o o Better Quality Variety

Product Performance

CUST. REPEAT AS % OF TOTAL OF CATEGORY

DISPLAY N-DISPLAY SACHET GOLD COSMETIC

17% 21% 16%

22% 24%

 The customer repeat is highest in Non-Display outlets

fairness cream market share

FAIR & HANDSOME FAIREVER PONDS WHITE BEAUTY 7% 16% 7% 10% FAIR & LOVELY GARNIER LIGHT VIVEL ACTIVE FAIR 12%

48%

RECOMMENDATIONS
The main problem which was in the front of all the others with respect to retailers is that the communication between them and the company is not proper e.g. many retailers are not informed about the new products and schemes. The DS should be strictly instructed to pass on the information to all the retailers irrespective of theirs personal prejudices. The DS asks for repeat of only few products (mainly food) and ignores the products which give them fewer incentives. Either the DS should be given fairly equable incentives or they should leave their prejudices. The distribution system has many loop-holes which need serious consideration liketimely delivery of the products, services with respect to loyalty programs etc The DS should be given a target of at least 3 repeat orders per outlet with a minimum repeat quantity of 0.11 kg per outlet. Promotional representatives should be placed at Saraogi Mansion, GT and Shree Ram Departmental Store-Gopalpura etc. Samples should be given to consumers in Old Jaipur Areas like (Jotwara, Ajmer Gate, Choda Rasta, Tripolia Bazar etc.) Since the Non-Display outlets are the cash cows for the company in case if Vivel Active Fair, therefore there are few suggestions to increase the sales in them: o The Non-Display Outlets should be provided the displays so as to motivate the retailer even more to push the product and also to increase the visibility. o The Non-Display Outlet retailer schemes such as buy 12 pieces of 50gm/25gm and get one tube and one ladi free. o The Non-Display Outlet retailer schemes such as get 4 ladi free on 3 repeat orders a month. o Based on personal relations Non-Display retailer can be convinced to replace all the fair & lovely sale for a week with Vivel Active Fair-9gm Sachet, and later the repeat of those can be traced and thereby the process can be repeated if successful.

GOLD OUTLETS

DISPLAY

STARS

QUESTION MARKS

CASH COWS
NON-DIAPLAY OUTLETS SACHET OUTLETS

DOGS
FEW COSMETIC OUTLETS

RETAILERS QUESTIONNAIRE
1. What is the type of Outlet? 2. Whether there is any display/board/hoarding in that area? 3. How many times have you placed the repeat orders? 5. You have placed order for which SKU? 6. How many orders of each SKU have you placed? 7. Has there been any customer repeat? Yes 50gm__________ 25gm__________ 9gm ladi________ 50gm tube 25gm tube 9gm ladi None 1-2 times 3-4 times 5 or more times Yes No Display Non Display Sachet Cosmetic

 8.

No

Is display useful? 9. How many tubes of Fair and Lovely do you sell in a month? 10. Rate Vivel Active Fair on the scale of 1 to 5? ___________ Yes No

Price Packaging Quality Fragrance

11. What is the scheme/incentive Fair and Lovely offering to you?

______________________________________________________________________________ ______________________________________________________________________________

Personal Details: Name: ____________________________________________________ Address: ____________________________________________________ _______________________Phone No.:____________________ Date & Time:_________________________________________

CUSTOMERS QUESTIONNAIRE

1. Do you prefer any Fairness Cream? 2. Which one the Fairness Creams are you using? ___________________________ 3. For which purpose are you using the Fairness Cream? ___________________________ 4. How often do you buy a Fairness Cream? Once per week or more often 2-3 times per month Once per month Once in 2-3 months Once or twice a year Yes No

5. Are you satisfied with the Fairness Cream which you are using? 6. Your intention towards replacing your existing brand of Fairness Cream? 7. Reasons for switching the brand? To replace Not to replace Yes No

 8.

Variety/boredom Non availability Packing/novelty/features Price Better Quality

Which thing do you prefer before buying the Fairness Cream? 9. Which Type of Fairness Cream do you prefer? 10 How familiar are you with Vivel Active Fair? 11. From where do you get the information & knowledge regarding Vivel Active Fair? Never heard of it Aware but never used it Use it only sometimes Use it on a regular basis Ayurvedik General Related to Skin Related to weather condition Other s:-__________ Cost Quantity Its Result Quality Brand Ambassador Packaging Brand Image Other s:-__________

 12.

Par lo r T.V. Friends & relatives News paper & Magazines Internet Other s:-______

On whose recommendation do you buy any beauty product? Friends Relatives Retailers Chemists Skin Specialists Other s:-______

13. Rate Vivel Active Fair on the scale of 1 to 5?

Price Packaging Quality Fragrance

14. Which price range of cream you prefer the most? Economy(Rs. 5) Popular (Rs.32 ) Premium (Rs. 72)

Personal Details: Name:

____________________________________________________ Address: ____________________________________________________ _______________________Phone No.:____________________ Gender: _________________________Age: _______________________ Date & Time:____________________________________________________

BIBLIOGRAPHY
http://www.itcportal.com/about-itc/itc-profile/itc-profile.aspx http://au.nielsen.com/products/documents/NPLEL4flyerfinal.pdf The Indian Marketing Journals by ICFAI