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LIST OF FIGURES
Fig. No. Fig. Name Page No. 1. General Electric Nine Cell Matrix 8 2. Explored Sectors 35 3. Profile of Pharmaceutical companies 36 4. Awareness of Kara 37 5. Companies using wipes for gifting 38 6. Kara for gifting in future 39 7. Reasons for non preference of Kara 40 8. Predicted response from Doctors 41 9. Pricing of Kara 42 10. Advertisement viewed on television 43 11. Rating of advertisement 44
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EXECUTIVE SUMMARY
Kara is a brand name of Wet wipes from the house of Grasim Industries, Aditya Birla Group. Among its different variants, Refreshing facial wipes are the most selling wipes in the consumer market and is also a potential product for gifting done by various Corporates. Pharmaceutical manufacturing companies was my target account where I had to show them our product , state its advantages over conventional wipes and tell them how our product can help the doctors associated with companies. Since the major pharmaceutical companies are already our client, my main emphasis was on smaller pharmaceutical companies based in Delhi. On the basis of my survey, it was clear that our product was appreciated as a better product than others in terms of quality. However, very few companies showed positive response. The reasons for this are Small scale pharmaceutical companies tend to be more price sensitive, thus they were not able to afford our product at companys discounted prices. 29% of the local pharmaceutical companies visited said the perceived value of product wont be much by doctors. 21% companies were not happy with the discount schemes offered to them Four Five Star Hotels, four car showrooms and four hospitals were also targeted where it could be given as a gift to their guests/visiting doctors. However the management policy didnt allow the product to be used as a gift. Only about one third of the total respondents have seen Karas advertisement on television; thus they were not much aware about the brand.
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PURPOSE OF STUDY
The objective of project was To take measures for maximizing sales opportunities and develop long-term relationships with Corporates for Kara wet wipes. Thus, approaching potential customers in person, introducing our products to them and reminding them until they give a formal response was our priority task. However, along with it, a primary research work was also done to supplement the field work.
Context of Study Out of all the companies visited, pharmaceutical companies held the priority. Very few visits were appointment based, whereas cold calling was the prominent method employed. Most of the worthy interactions were with companies having corporate offices in Delhi. Many of them had corporate offices adjacent to manufacturing facility in industrial areas. The Product managers and Marketing managers handled Doctors gifting program on behalf of the company. Samples were showed to them along with briefing about the product. Free samples were given to companies who showed good level of interest in Kara. The questionnaire was pre-designed and during conversation, the questions were disguisedly asked. After the meeting, the questionnaire was filled up on the basis of replies which were extracted from the managers.
Significance of Study The research work gives us an idea as to what difficulties Kara is facing in spite of being a very good quality product. It gives a scope of improvement to rethink on some marketing aspects like better discount slabs, refining target customers etc. The companies which have showed positive interest can be reapproached with better offers. Since the TV advertisement campaign for Kara is gaining momentum, aggressive selling can be practiced to offer Kara as an innovative gifting solution by Corporates. SUMMER INTERNSHIP REPORT 2011
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Chapter 1: INTRODUCTION
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Overview of Wet Wipes Market
Disposable wipes have evolved into a global business concept generating more than $ 6 billion in sales a year. Achieving strong double-digit growth year after year, the category now assumes a major role in the personal care market. Spanning from make-up removal and deodorant wipes in personal care to floor and furniture cleaning products in household care, disposable wipes have gradually expanded to offer a wide range of new applications, replacing the traditional combination of cloth, cotton and cleaning solution. Changes in trends in the wipes market have also been driven by new product developments and the positive reception of new product applications by the consumer. The global market for wet wipes continues to grow, although it is important to be cognizant of the challenges that will present great difficulties to many. Those companies that can combine cutting edge technology with the development of new and innovative ideas will survive in the long run. The wipes in India are generally made of Viscose and Spun lace. Birla Cellulose manufactures 98% of the Viscose Staple Fiber in India, so it is poised to do well against other local players as they would have to purchase VSF from it. In the last 3 years there has been an explosion in the number and types of wipes available to the consumer. From baby wipes and facial wipes to disinfecting wipes, posing as a much better substitute than conventional cloth and liquids. In a fast paced world, these wipes are designed for convenience, whether that is for your own personal use or to deal with the unhygienic conditions for your family. The disposable facial wet wipes market is estimated at Rs 8 crores. Kara holds a dominant position in market with turnover of Rs. 4.5 crores thus capturing 56% of the market. However the sector in India is currently fragmented and unorganized. Ginni filaments (Noida) also hold a strong position in wet wipes market, though their product cant be matched in terms of quality to Kara. SUMMER INTERNSHIP REPORT 2011
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In the US and Europe, 6 to 10 per cent of the income is spent on disposable products. In India, it is 0.0001 per cent. Worldwide, wet wipes are a $6-billion category, but in India, its in a nascent category. It is considered as a lifestyle item and not an essential one, so it will take a while before full potential is explored. Consumer awareness about hygiene products increased as a result of increasing advertising, price reductions and the launch of cheaper variants by manufacturers over the latter half of the year. Skin Care wipes also benefited due to the faster pace of life in cities and the rise in the number of nuclear families and working women, who tend to rely more on disposable products when working in the kitchen or whilst travelling outside of the home. The leading market research agency KSA TECHNOPAK conducted a market survey & discovered that there is a huge untapped potential for wipes in India. According to the survey after Delhi NCR, Chandigarh is the biggest market for cosmetics in North India The disposable wipes market in India faces stiff competition from cheaper Chinese imports. The Chinese wipes are not of good quality and can have adverse effects on skin. However they capture the attention of price sensitive people. But with increasing consciousness about quality, gradually people will shift to a better product like Kara.
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Summer Internship Profiles
There were four profiles offered for our summer internship out of which we had to choose one depending on our area of interest. All the profiles fall under their marketing and sales department, thus required us to interact with various people varying from marketing managers, retail shop owners to customers at shopping malls. I chose Corporate Sales management, because this profile required interacting with people at various managerial levels in corporate and enhance my knowledge by observing and refining my skills with every new interaction. The profiles are discussed as below: 1) CORPORATE SALES MANAGEMENT Kara wet wipes have emerged as one of the most useful and preferred gifting in many Corporate and Institutional Segments for various occasions viz. Gifts to Doctors/Business Associates/Clients, Brand Promotion, Merchandise for Trade promotion & Consumer Schemes, Office amenities, Conference & Seminar amenities , Tool for providing better Customer/Guest experience etc. In profile of Corporate Sales, we had to target the clients for bulk purchase of our product, offering them discounts and customization of our packaging to promote their brand. The corporate sales can be divided into eight different sectors which are: i) Aviation: Every airline gives a small kit to their passengers which have some utilities. Among these utilities, wet wipes are also given which gives a refreshing feeling to passengers coming in flight after long check-in queues and security hassles. The wipe is given in a single sachet which has customized printing as per airlines requirements. The shelf life of these wipes are around 6 months after which they start getting dry however can still be used without any worries. Currently, Kara wipes are being supplied to Kingfisher and Jet Airways. Talks are on with Indigo airlines and very soon they will be using our product in their flights. SUMMER INTERNSHIP REPORT 2011
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ii) Pharmaceuticals: Many pharmaceutical companies which have manufacturing and marketing in domestic market do gifting to Doctors to promote their brand and maintain good relations with Doctors. The gifting may range from pen, key chains to laptops and other luxurious items. The companies buy in bulk with customization options and keeps on changing their gifting portfolio every season. Wet wipes are a smart gifting option as they are different from conventional items, easily customizable and have usefulness in summer season. Generally these companies buys 10s and 20s pack with their brand name on resealable sticker. Some of our clients are DR. Reddy, Torrent, Pfizer, Panacea Biotec, Wockhardt, Ranbaxy, Fresenius Kabi, Abbot, Blue Cross etc. iii) Hotels, Restaurants and Catering (HORECA): In hospitality sector, Hotels are a prime constituent which offers numerous amenities to its guests. When the guests arrive at a Hotel, they are greeted with complimentary drinks. Wet wipes can be given to guests so that when they come from outside to Hotel, they can use it to clean their face giving them a pleasant feel. These wipes can also be kept in there on a daily basis when housekeeping staff cleans the room. Single customized sachets can be used here. The wipes can also be pitched for caterers in marriages, high profile events, Sport events etc. They can offer single sachets to guests as a welcome gesture. In Hotel industry, Taj Vivante, Chariot Beach resort, Intercontinental Mumbai are our prestigious clients. iv) Tour and Travels: Since wet wipes are very commonly used product in foreign countries, when tourists come in our country they need such product to fight off the tropical weather in summers. Tours and Travels prepare kits for tourists of which wet wipes can become an important part. Single sachets or 10s pack can be used by tours operators for their kit. Kuoni Travels (Gurgaon) is our client in this sector. v) Auto and Allied: Car service centres and showrooms can gift wet wipes to its customers as a token of goodwill and to retain customer loyalty. In summers, car owners generally use dry tissue papers in their cars. With the growing awareness of wet wipes, they are realizing the advantage of wet wipes over dry tissue. The Automobile OEMs or allied industries do gifting for various distributors and dealers in their distribution SUMMER INTERNSHIP REPORT 2011
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channel. Kara wet wipes can be used by them for their brand promotion as they can customize 10s and 20s pack with their brand name on it. Right now we are in talks with Michelin tyres and hope to close the deal soon. vi) Service: Hospitality sector is incomplete without Spa, Saloons and Beauty Centres. Apart from refreshing wipes, other variants like Make-up removal wipes , Toning wipes , Moisturizing wipes, Cleansing wipes can be used here as a replacement of conventional cotton ball and lotions. VLCC buys Kara products to offer a pleasant experience to its customers. vii) Consumer Goods and durables: In FMCG sector, Kara products can be used as in product promotion (Bundle packing along with their product) and Trade promotion (gifting for channel partners). It can also be given as gifts to consumers buying expensive durables like Air conditioners, Microwaves etc. Some of our clients are Whirlpool and Dabur. viii) Retail: In premium retail outlets, guests are treated warmly and are offered with tea or coffee as a kind gesture. Single sachet wipes can be given to guests when they enter showroom so they it can lighten up their mood and give them a happy feel. This product should be pitched at showrooms where conversion rate is high. Jewellery showrooms, outlets having expensive watches, furniture, mobile phones etc. can be targeted for our product. Amongst them Titan is our esteemed client.
2) MODERN TRADE MANAGEMENT Modern trade management deals with malls and shopping complex where thousands of customers come daily to buy household items. Kara is available at almost every mall in Delhi however internees under this profile have to check daily inventory levels of product, its placing as compared to competitor products, visibility, customers reaction on seeing the product etc.
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3) GENERAL TRADE MANAGEMENT In this profile, all the small retail shops are focused where the internee had to see if Kara is already available with them, are the retailers happy about the response of the product, sufficient inventory levels are maintained etc. Also there were many retail shops which didnt have any wet wipes and were apprehensive about keeping our product. The internees had to market their product to such retailers and clarify any doubts which retailer has about the product. 4) MARKETING RESEARCH This profile is a pure marketing research based where the internee has to ask respondents to fill up a pre-designed questionnaire thus fulfilling his given objective. The internee was given a place like a mall or a market where he had to intercept potential respondents and request them to take part in his research. Though sample size is not pre-determined, it should be such that some substantial results could be interpreted.
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General Electric Nine Cell Matrix
Relative position of Kara in Wet wipes industry Interpretation Kara holds a dominant position in organized wet wipes market evaluated at Rs. 8 crores of which Kara has a turnover of Rs. 4.5 crores (56%). This share is depicted by the grey area shaded in circle, whereas, the full circle represents the total market. Since wet wipes are a new concept, they are at an introductory level. But with the increasing awareness of hygienic needs, people are showing very positive response. Therefore it has been placed under high industry attractiveness region. The circle falling in green region means that the company should invest more and grow its brand to hold more strong position in the growing industry.
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Chapter 2: LITERATURE REVIEW
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ADITYA BIRLA GROUP
Aditya Birla group is Indias first truly Multinational Corporation. It is a US$ 30 billion conglomerate which gets 60 % of its revenues from outside India., and has over 130,000 employees belonging to over 27 different countries. The Group consists of four main companies, which operate in various industry sectors through subsidiaries, joint ventures, etc. These are Hindalco, Grasim, Idea cellular and UltraTech Cement. The Group has diversified business interests and dominant player in all the sectors in which it operates such as Viscose staple fibre, Metals, Cement, Viscose filament yarn, Branded apparel, carbon black, chemicals , fertilizers, insulators, financial services, telecom, BPO and IT services. The origin of Aditya Birla Group can be traced back to the 19th century when Seth Shiv Narayan Birla started trading in cotton in the town of Pilani in Rajasthan. In the early part of 20th century, Groups founding father, Ghanshyamdas Birla, expanded the group and set up industries in critical sectors such as textile and fibre, aluminium cement and chemicals. In 1969, the then chairman of the group put the group on the global map. He set up 19 companies outside India, in Thailand, Malaysia, Indonesia, Philippines and Egypt. Under Aditya Birla leadership, the group attained new heights and it became worlds largest producer of viscose staple fibre, the largest refiner of palm oil, the third largest producer of insulators and fourth largest producer of carbon black. After Aditya Birla demise his son Kumar Mangalam Birla took over the charge of the group and under his leadership the group has sustained the numero uno position in the sectors in which it operates.
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GLOBALLY THE ADITYA BIRLA GROUP A metals powerhouse, among the worlds most cost-efficient aluminium and copper producers. Hindalco, from its fold, is a Fortune 500 Company. It is also the largest aluminium rolling company and one of the 3 biggest producers of primary aluminium in Asia, with the largest single location copper smelter. No.2 in viscose staple fibre. The 3rd largest producer of insulators. The 4th largest producer of carbon black. The 11th largest cement producer globally and the 2nd largest in India. Among the worlds top 15 BPO companies and among Indias top 3. Among the best energy efficient fertilizers plants
International companies:
Thailand Thai Rayon Indo Thai Synthetics Thai Acrylic Fibre Thai Carbon Black Aditya Birla Chemicals (Thailand) Ltd. Thai Peroxide
Philippines Indo Phil Textile Mills Indo Phil Cotton Mills Indo Phil Acrylic Mfg. Corp
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Indonesia PT Indo Bharat Rayon PT Elegant Textile Industry PT Sunrise Bumi Textiles PT Indo Liberty Textiles PT Indo Raya Kimia Egypt Alexandria Carbon Black Company S.A.E Alexandria Fiber Company China Liaoning Birla Carbon Canada AV Cell Inc AV Nackawic Inc Australia Aditya Birla Minerals Ltd. Laos Birla Laos Pulp and Paper Plantation Company Ltd
IN INDIA A premier branded garments player. The largest player in viscose filament yarn The 2nd largest in the Chlor-alkali sector Among the top 5 mobile telephony companies A leading player in Life Insurance and Asset Management
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Some of the prominent Indian companies of the Group Grasim Industries PSI Data Systems 894 Essel Mining & Industries Ltd Shree Digvijay Cement Ltd Idea Cellular Ltd. Aditya Birla Insulators Limited Aditya Birla Retail Bihar Caustic and Chemicals Ltd
BEYOND BUSINESS Transcending business for over 50 years now, the Group has been and continues to be involved in meaningful welfare driven initiatives that distinctly impact the quality of life of the weaker sections of society in India, South-East Asia and Egypt. In India, the Group's social projects span 2,500 villages. It reaches out to six million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its focus is healthcare, education, sustainable livelihood, infrastructure and espousing social causes. The Group runs 42 schools, which provide quality education to over 45,000 children in India's interiors. Of these 18,000 children receive free education. An additional 8,000 students receive merit scholarships. Likewise at its 18 hospitals in India, more than 500,000 patients are given extremely subsidized medical care. The Group transcends the conventional barriers of business and reaches out to the marginalized because of its conviction of bringing in a more equitable society
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GRASIM INDUSTRIES LTD.
Grasim Industries Limited is a Aditya Birla Group company that started in 1948 and which started as a textile manufacturer. Since then Grasim has successfully diversified into Viscose Staple Fiber (VSF), cement, sponge iron and chemicals. It is the worlds second largest producer of Viscose Rayon Fiber with about 21% market share. Textile and related products contributes to 15% of the group turnover. Grasim is headquartered in Nagda, Madhya Pradesh and also has a huge plant at Kharach, Gujarat.
GLOBAL FOOTSTEPS Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started in 1970; this was Aditya Birla Groups first foray into international venture. Aditya Birla incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon incorporated in 1974, this was the second company in Thailand, operating in Viscose Rayon Staple Fibre. Century Textile Co. Ltd. Is taken over by Aditya Birla Group in 1974; this company is a weaving and dyeing plant manufacturing and exporting variety of synthetic fabrics. PT Sunrise Bhumi Textiles incorporated in 1979, it produces Yarn which is exported to over 30 countries in 6 continents. P.T. Indo Bharat Rayon incorporated in 1980 produces Viscose Staple Fibre in Indonesia to become a dominant player in domestic market as well as export markets. Thai Polyphosphates and chemicals was started in 1984 in Thailand to produce sodium phosphates, presently merged with Thai Epoxy and Allied Products Limited Company (1992), Thai Sulphites and Chemicals Company Limited (1995) to form Aditya Birla Chemicals Ltd. This company supplies to sectors such as food, textiles, electrical and electronics, composites, leather, plastics and automobiles. PT Indo Liberty Textiles was incorporated in 1995 to manufacture synthetic spun yarn. SUMMER INTERNSHIP REPORT 2011
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Focus of Growth Post MFA In late 1990s and later, the focus was the textile business because of the end of Multi- Fibre Arrangement (MFA) which opened a host of opportunities to Indian exporters. In this period, Aditya Birla Group took a three route strategy for growth. Rapidly enhance existing capacities Acquire and build garment brands for local and international markets Jayashree textiles was acquired by Aditya Birla Nuvo (formerly Indian Rayon), is a leading producer and exporter of yarn and fabrics to 50 countries with a turnover of $413 million. It acquired Madura Garments in 2000 to enter the branded garments business. It has brands like Louis Philippe, Van Heusen, Peter England, Allen Solly, SF Jeans among others and also a supplier to global buyer such as Marks and Spencers, Polo etc. Vertical integration to get cost advantage AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada, established operations in 1988 to produce softwood and hardwood pulp for the purpose of internal consumption among different units of the Group. Together, Aditya Birla Group and Tembec, Canada have acquired AV Nackawic Inc., which produces dissolving pulp, as a further step to integrate. Grasim Industries Ltd. Is a leading player in the Viscose Staple Fibre (VSF). The Aditya Birla Groups VSF manufacturing plants straddle Thailand, Indonesia, India and China. At each of these locations, further capacity expansions are under way in Thailand by 31 ktpa; in Indonesia by 37ktpa; in India by 64 ktpa and in China by 30 ktpa. These brown field expansions were completed by the second half of 2008, and will further notch up the Groups VSF production from 566 ktpa to 727 ktpa and entail an investment close to US$ 260 million.
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Grasim wants to follow a strategy of backward integration, right from plantation stage to the final VSF stage. The Groups VSF business operates through its three companies Grasim Industries in India, Thai Rayon Corporation in Thailand and Indo Bharat Rayon in Indonesia, which also oversees its Chinese operations at Birla Jingwei Fibres, China.
JOINT VENTURES Thai Rayon promoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 percent of Thai Rayons VSF throughput is directly exported to more than 20 countries worldwide. The VSF meets the stringent quality expectations of customers in USA, Mexico, Europe, Turkey, Canada, Israel, Australia, South Korea, Philippines, Indonesia, Pakistan, Bangladesh and Sri Lanka. PT Indo Bharat Rayon marketed under the brand name of Birla Cellulose, the company produces a wide range of VSF in engineered specifications for textiles and non-woven applications. The companys strong focus on environmental protection is reflected through its investments in a sophisticated state-of-the-art waste-water treatment plant and scientific waste disposal systems.
SOURCES OF COMPETITIVE ADVANTAGE a) Cost Grasim is the lowest cost producer of VSF in the world. It is the most integrated fibre producer with the chain stretching right from the Forest to Pulp to Fibre to Yarn. Almost all the intermediate inputs are captive. Besides, their in-house engineering division enables us to grow in a most cost effective way. b) Technology On technology front, they produce all the three generations of manmade cellulosic fibres from all in-house developed capability through research and development. Their research and development efforts are not limited to fibre stage alone SUMMER INTERNSHIP REPORT 2011
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but extended to entire textile value chain. While the plantation and related activities are carried out at Grasim Research Institute (GFRI, Harihar, India), the product innovations are carried out at Birla Research Institute (BRI, Nagda, India). For value chain related activities, a state of art Textile Research and Application Development Centre has been established at Kharach, Gujrat- India to entire textile value chain from yarn to fabric to garments. c) Markets On marketing front, their reach extend to the entire globe through marketing offices. On a global level, their major strength is in spun-dyed fabrics and now other specialties such as Non-woven, Modal and Excel have started penetrating in the global markets. Their brand Birla Cellulose is firmly entrenched in the market. Their value added marketing services comprising of technical, logistical, financial, marketing and informational support have enabled them to emerge as the most preferred supplier of VSF in the world. Their offerings whether from India, Thailand, Indonesia or China are all marketed under the mother brand Birla Cellulose and sub brands Birla Viscose, Birla Modal and Birla Excel. An umbrella brand has enabled them to create a common identity for their products across the globe irrespective of their production origin and creating of awareness and consumer pull.
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BIRLA CELLULOSE
Birla Cellulose is the Grasim Industries umbrella brand for its range of cellulosic fibres. It comprises versatile sub-brands; Birla Viscose, Birla Viscose Plus, Birla Modal and Birla Excel. These brands offer a wide range of functional benefits such as soft feel, high moisture absorbency, bio degradability and comfort to the wearer. These fibres have multiple applications including apparel, home textiles, dress material, knitwear, non- woven etc. Vision To be the Global Leader in the Man-made Cellulosic Fibre Industry Mission We aim to create Superior & Sustainable Value for all our stakeholders, maintaining the largest market share in the Man-made Cellulosic Fibre Industry globally through: Innovation in Products & Processes Excellence in Quality, Service, People Development & Focus on Environment Friendliness in all our activities Values i) Integrity ii) Commitment iii) Passion iv) Seamlessness v) Speed
Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in 1954. Birla cellulose is a world leader in Viscose Staple Fibre (VSF). Its production is spread over six countries, viz. Canada, Thailand, India, Indonesia, China and Laos. The group independently fulfills Indias entire VSF requirements. SUMMER INTERNSHIP REPORT 2011
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With strong focus on research and development (R&D), the Groups R&D initiatives span the entire value chain. The R&D centers are: i) Grasim forest research institute- Pulp to plantation research. ii) Birla research institute for applied sciences- Pulp to fibre research. iii) Textile research & application development centre - Value chain from fibre to garments Nature is the genesis of all that surrounds us, therefore, what other than nature could be the origin of Birla Cellulose. Nature is the source of Birla Cellulose and herein lies the inspiration of their logo. Fibres from nature is the theme and the message: Leaves fall and grow all over again; they are a renewable source of nature. Birla cellulose is much like these leaves symbolizes the key characteristics of Birla Cellulose which are comfort and lightness. The vibrant green indicates that Birla cellulose can take vibrant colours. The circle signifies the cycle of nature and sustainability. Nature remains the underlying theme for all their brands: Viscose is symbolized by the fresh green of summer. Modal is symbolized by the burnt orange of autumn. Excel is symbolized by the deep pink of spring
Birla Cellulose- Fibres from Nature: Contributing to a green world Preserving our environment has always been the inspiration behind Birla Cellulose. It has successfully achieved this goal through the following initiatives:
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Nurturing and building the green cover Over a million plantlets are being produced from identified superior clones for development of colonial orchards and plantations. Land conservation Efforts are on to encourage tree-farming practice on marginal, sub-marginal and fallow lands to the best advantage of the country. The yield of viscose is seven times that of cotton for the same land area. Thus significantly contributing to conservation of land, and reaping maximum results from this limited resource. Water conservation Birla Cellulose Viscose is highly environment friendly. Every Kilogram of viscose produced saves 200 buckets of water when compared to cotton. Thus it preserves one of the most valuable natural resources. Zinc free products Birla Cellulose is the only Heavy metal / Zinc free viscose green properties like reduced effluent load, improved fibre properties, reduced production cost and technological adaptability
Process friendliness The process being followed for production is environment friendly and green due to the following advantages: Non toxic effluent as a result of replacement of zinc by alum. Less solid waste generation due to reduced lime consumption. Reduced risk of fouling biological microorganism in reactor.
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PROD Aditya Birla Group launched basically a solution to skin car always. Sometimes your hecti skin. But with Kara skincare w when you are on the go. With the unique formulation o and anywhere. Whats more percent natural and biodegrada Kara skincare wipes are the In are very popular in west but in are familiar with the produc company entered this segment Indian FMCG market. Kara skincare wipes are pos targeting the young lady profe aims to create a new category market for three reasons i) The climate which necessita ii) The growing number of lad iii) Improved lifestyle in urban SUMMER INTERNSHIP REPORT 2011
PRODUCTS OF BIRLA CELLULOSE KARA - Skincare wipes
nched this product i.e. KARA skincare wipes in in care regime out of home a convenient way to be r hectic schedule leaves you with little time to take c care wipes in your bag, you can now take care of you ation of natural ingredients, these wipes are easy to u more they are made from Birla Cellulose, a fiber egradable. the Indias first branded skin care wipes. These type but in India the category is new one. Although Indian roducts which are imported, is the first time that gment. The brand also marks Aditya Birla Groups fo e positioned as an essential skincare accessory. Th professionals who often need to meet lot of people tegory of wipes in India. The product is relevant in essitates such a product of lady professionals urban cities
Page 21 es in 2008. It is to be at your best take care of your of your skin even sy to use anytime fiber that is 100 e type of products Indian consumers e that an Indian ps foray into the ry. The brand is eople. The brand ant in the Indian SUMMER INTERNSHIP REPORT 2011
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The brand has the tagline At your best, Always. This clearly communicates the core brand positioning. The brand is being promoted as the anytime solution to look good. Most of the other wet wipes in the market today are made from Polyester-Viscose blended non- woven fabric or paper. Polyester is not skin friendly and its repeated use on the skin is not advisable. Paper tissues tear off when rubbed over skin and leave lint on face in a way that can often embarrass the user. While Kara is made up of non-woven fabric which absorbs sweat, extra oils from the skin without scrubbing it. It doesnt wither when rubbed hard and doesnt leave lint on facial skin or stubble. Characteristics of Kara skincare wipes Convenient Hassle free application of lotion without using cotton balls. Portable Lint free 100 percent natural and biodegradable. Hygienic Alcohol free Dermatologically safe Assurance of Aditya Birla Group
Variants of Kara There are six different variants of Kara which are a result of innovative thinking and in depth R&D. These are: Refreshing Facial Wipes Kara Refreshing wipes are enriched with Aloe Vera for skin nourishment and Mint oil for effective freshening. It ensures effective cleansing to remove dirt, excess oil and grime from the face and neck and also leaves a lingering fragrance SUMMER INTERNSHIP REPORT 2011
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Sunscreen Wipes Kara sunscreen wipes has a formulation of SPF 20 which protects the skin from the adverse effects of UV A and UV B sun rays. It is enriched with antioxidants like plum extract and vitamin E that nourishes the skin and Aloe Vera that keeps the skin moisturized. Deep Pore Cleansing Wipes Kara Deep Pore Cleansing is a gentle, effective way to clean your skin of dirt, grime and excess of oil. Enriched with Jojoba and Avocado extracts, it unclogs pores, detoxifies and thoroughly exfoliates dead skin cells. Toning Wipes Kara Toning Wipes is enriched with Rose and Thyme extract that tighten the skin and maintain the normal pH balance. Moisturizing Wipes Kara Moisturizing wipes is enriched with the goodness of Almond and Honey for beautiful radiant and glowing skin. It is also fortified with vitamins for skin conditioning and is suitable for use right throughout the year. Make-Up Removal Wipes Kara Make-Up Removal Wipes are enriched with Lavender and Seaweed extracts that removes the make-up in just one swipe. .
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PURETTA - Baby Wipes
Aditya Birla group announced its foray into the baby care segment in India by launching PURETTA 100 percent natural and biodegradable baby care wipes in 2009. Product portfolio includes Complete Cleansing Wipes, Germ Shield Wipes and Skin Nourishing Wipes. These wipes are safe for the babys delicate skin as they are alcohol free, hygienic, hypoallergenic and dermatologically tested. Since Puretta (meaning pure and diminutive) is made from Birla Cellulose, a 100 percent natural and biodegradable fiber, it soothes the babys tender skin with its soft and nature-friendly properties. While the usage of baby wipes is growing in India, there is limited access to quality products at the right price points. Most of the products available today are imported, and are primarily regular wet wipes that do not serve the specific needs of baby care. Puretta fills this gap with its three distinct variants, aiming to satisfy the need of Smart Moms. Characteristics of Puretta Baby Wipes Safe for babys skin Hygienic Hypo-allergenic Dermatologically tested Alcohol free With mild fragrance Convenient cleaning and application of lotions without using towel or cotton balls Portable For complete baby care range
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Variants of Puretta Complete Cleansing Wipes Complete cleansing baby wipes are enriched with chamomile extracts these wipes are gentle and soothing to the babys skin ensuring complete cleansing while retaining the pH balance of the skin. It is basically used on babys nappy area and can be used on complete body of a 0-3 years of babies. It is used for following: Every nappy or diaper change. For cleansing in the absence of regular bath while traveling or in winters. Wipe entire body to keep baby clean and fresh at all times, day or night. Provide soothing relief.
Skin Nourishing Wipes Skin Nourishing Baby Wipes keeps the babys skin soft and nourished always, after a bath or even during the dry season. Enhanced with Mineral oil and Pear extracts, it leaves a protective layer of moisture on the babys delicate skin. A smarter way to keep the babys skin nourished anytime, anywhere. It is used on babys complete body especially hands, feet, face, neck and back area. It is a good add-on or occasional substitute for baby oil massage. It is basically for babies of age 0-3 years but can also be used for older children with sensitive skin. And it is used for following: Essential to keep babys skin soft and nourished always. After bath and during dry season. While travelling or exposure to air-conditioning at home
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Germ Shield Wipes Germ Shield Baby Wipes contains antiseptic properties to protect the babies from germs always. Enriched with Lavender extracts, it leaves the babys skin refreshed. It not only sanitizes babys hands and mouth but also utensils, teethers and toys. It is basically for 0-5 year old babies but can also be used by older children while traveling and also advisable for adults handling the babies. And it is used for: Protecting the babies from germs throughout the day with natural antiseptic properties. Essential to clean baby as he/she gains mobility and crawls on surface that may be contaminated. To sanitize babys utensils, teethers and toys.
PRIM - Kitchen and Multipurpose Wipes
PRIM is basically dry wipes used in Kitchen and various multipurpose household works. It can be used to wipe the utensils and cutleries. One wipe can be used for at least a month in the kitchen. The only competitor of our product is Scotch brite. Usually cloth is used as the substitute in most of the families but if the promotion is done properly to make the consumers aware of this product it will do very good in the market because of very less competition in this category. There are two packs available in the market one is three wipes pack and the other one in five wipes pack.
SU
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HA Handys hand-sanitizing wipe effectively than rub-in gels. T 99.9% of germs. Though there all of them are alcohol based. H and as efficient as alcohol in antifungal agents widely use deodorants and even toothpas Labs based in Hyderabad. The required anti bacterial properti Rub-in gel sanitizers cant re efficient in cleaning hands. It silicones. Clinically tested, o anywhere, anytime when soap anybody seeking hygiene and p
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HANDYS - Hand sanitizing wipes
wipes have been shown to clean and sanitize h gels. These sanitizing wipes are extra-tough on ger there are few companies who manufacture sanitizing ased. Handys is the only sanitizing wipe which is Tric hol in killing germs. Triclosan is one of the antib ly used in various skin care products like hand w othpaste. Grasim industries outsource Triclosan fro d. The wipes contain 0.1% Triclosan which is suffic operties. ant remove stain marks or dirt but sanitizing wip ds. It is gentle on hands, containing moisturizers, Alo ted, our hand-sanitizing wipes provide convenient n soap and water are not available. It is an excellent e and prevention from infections.
Page 27 itize hands more on germs, killing itizing wipes, but is Triclosan based antibacterial and and wash, soaps an from Vivimed sufficient to give g wipes are very rs, Aloe Vera and enient protection ellent product for SUMMER INTERNSHIP REPORT 2011
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Chapter 3: RESEARCH METHODOLOGY
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RESEARCH METHODOLOGY
Research methodology is the arrangement of condition for collection and analysis of data in a manner that aims to combine the relevance to the research purpose with economy in procedure. Research is conceptual structure within which research is conducted. It is way to systematically study and solve the research problems. The steps which complete the process are mentioned below: a) Problem Identification b) Development of Approach to problem c) Research design Formulation d) Fieldwork and Data Collection e) Data Preparation and Analysis f) Report preparation and Presentation
Research Design A Research Design is a frame work or blue print for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problem. Although a broad approach to the problem has already been developed, the research design specifies the details the nuts and bolts of implementing the approach. A research design lays the foundation for conducting the project. A good research design will ensure that the marketing research project is conducted effectively and efficiently. There are three type of research designs viz. a) Exploratory: This type of research is done when objective is not known and it helps in providing insight and understandings to define a problem. b) Descriptive: After defining a problem from exploratory research, we should define questions, people surveyed, method of analysis, data collection and analysis of problem. SUMMER INTERNSHIP REPORT 2011
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c) Causal: It helps in determining the cause and effect relationships. Manipulation of one or more independent variables is done to match with the objective of our problem. In this project, Descriptive Research Design had been used.
Descriptive Research Design The major objective of descriptive research is to describe something usually market characteristics or functions. Descriptive research is conducted for the following: a) To describe the characteristics of relevant groups, such as consumers, sales people, organizations, or market areas. b) To estimate the percentage of units in a specified population exhibiting a certain behavior. c) To determine the perception of product characteristics. d) To determine the degree to which marketing variables are associated. e) To make specific prediction.
The Descriptive research can be classified in two methods: 1) Survey Methods: This method is used when the research directly corresponds the respondent, makes him aware of our objective and seeks his help in filling up the questionnaire. The respondent answers each and every question thus giving his contribution to the study. Some of the observation methods are: Telephonic Surveys, Mall intercept Mail surveys. 2) Observation methods: This method is used when the researcher uses his own judgement on behalf of respondent by observing his reactions and answers when they interact with each other. The researcher tries to put all elements of research questions in the conversation and seeks to find the answers without letting respondent know about it. SUMMER INTERNSHIP REPORT 2011
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In this project, Observation method has been used. The respondent was unaware of his participation in the research study. Thus it was a disguised observation where the researcher was disguised as a Sales manager.
Scaling Scaling is applied to the attempts to measure the attitude objectively. Attitude is a resultant of number of external and internal factors. Depending upon the attitude to be measured, appropriate scales are designed. Scaling is a technique used for measuring qualitative responses of respondents such as those related to their feelings, perception, likes, dislikes, interests and preferences. Most commonly used scales are: a) Nominal: Numbers serve only as labels or tags for identifying and classifying objects. Only permissible operation on the numbers in a nominal scale is counting b) Ordinal: A ranking scale in which numbers are assigned to objects to indicate the relative extent to which the objects possess some characteristic. In addition to counting, one can place objects accordingly relative to their rank. c) Interval: Numerically equal distances on the scale represent equal values in the characteristic being measured. However the location of origin is arbitrary. d) Ratio: Possesses all the properties of the nominal, ordinal, and interval scales. It has an absolute zero point In this project, all the questions have been designed using Nominal scale.
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Sampling Sample basically means a subgroup of elements of population selected for participation in study. And number of elements to be included in the study is known as sample size. Execution of the sampling process requires a detailed specification of how the sampling designs decisions with respect to the population, sampling frame, sampling unit, sampling technique, and sample size is to be implemented. Sampling technique is broadly classified as: Non Probability Sampling A sampling technique that do not use chance selection procedures and rather they rely on the personal judgment of the researcher. Non Probability sampling technique is further classified as: a) Convenience Sampling b) Judgmental Sampling c) Quota Sampling d) Snowball Sampling
Probability Sampling A sampling procedure in which each element of population has a fixed probabilistic chance of being selected for the sample. It is further classified as: a) Simple Random Sampling b) Systematic Sampling c) Stratified Sampling d) Cluster Sampling
In this project, Convenience sampling i.e. Non Probability Sampling Technique is used. Convenience sampling attempts to obtain a sample of convenient elements. The selection of the sampling unit is left primarily to the interviewer. In this type of sampling technique often the respondents are selected because they happen to be in the right place at the right time. SUMMER INTERNSHIP REPORT 2011
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DATA COLLECTION
Primary Data: The first hand information bearing on any research is the one which has been collected by the researcher. The data here is collected through: A structured questionnaire Disguised observation while interacting with managers.
Secondary Data: The data which has already been collected, complied and presented earlier by any agency may be used for purpose of investigation. The data collected through: Various publications in form of annual reports, various papers and journals published from time to time. Through internet and Books
Limitations of the study: Research is based on the collection of data from both primary and secondary sources. There may be a possibility of biasness on the part of some respondents, but very much care has been taken to make this report unbiased. Some respondents might not give the correct information due to their lack of interest and shortage of time. Time constraint. All the information, which is taken, is biased on primary and secondary data that has its own limitations.
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Chapter 4: FINDINGS AND DATA ANALYSIS
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FINDINGS AND DATA ANALYSIS
The sectors explored where Kara could be used as a potential gifting product are :
Interpretation Among the different companies visited, most of them were pharmaceutical companies thus the reasearch is concentrated mostly for pharmaceutical companies. However during initial stages, Hotels, Hospitals and Automobile companies were visited but there was no positive response from these sectors.
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The profile of the various pharmaceutical companies are as below:
Interpretation: In total, 54 pharmaceutical companies were visited. 38 companies visited were Delhi based manufacturers having their corporate office in Delhi. Only these companies were engaged in Doctors gifting thus the research was carried out by interacting with managers at various levels in these companies. Rajasthan Antibiotics is a contract manufacturer. Also, 7 export houses were visited who generally dont do gifting in Indian market. About 8 Companies have their corporate office in other cities and they have only regional offices in Delhi where they cant take any decision.
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The following pie chart shows about the awareness of Kara among respondents:
Interpretation: 66 Respondents from all the sectors were asked about the awareness of Kara. About 62% of them were aware about Kara. The brand is building itself in the market and with the launch of its advertisement on television; more and more people are becoming aware of the product.
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The proportion of pharmaceutical companies which use wet wipes for doctors gifting are given in graph:
Interpretation: This question was relevant to Delhi based pharmaceutical manufacturers whom it was asked if they give wipes for Doctors gifting. Very few pharmaceutical companies do such kind of gifting while most of the other companies were restricted to conventional gifting items like pens, key chains, paper weights, table stands etc.
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After discussing Kara, companies were asked if they may consider Kara for gifting doctors in near future:
Interpretation: Out of 38 companies, about 32% companies were impressed with our product. They were told about the benefits of Viscose staple fibres, advantage of our product over competitors product and customization options. A sample was given and they used wipes on the spot, realizing the superior quality and gave a positive feedback about the product. SUMMER INTERNSHIP REPORT 2011
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Though the companies appreciated Kara, they didnt place immediate order because:
Interpretation: Though the product was appreciated by companies still they were apprehensive about purchasing our product. This is due to following reasons: #1: 5 companies said they doesnt do ethical marketing #2: 3 companies said they manufacture their own product for gifting #3: 6 companies said that they have already done gifting for this month/quarter #4: 11 companies said that the perceived value by doctors wont be much #5: 8 companies were not happy with discounts provided #6: 5 companies said they are in discussion with management
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The companies were asked if they think that Kara will be appreciated by doctors:
Interpretation: Out of 38 pharmaceutical companies, 32% said that our product will be appreciated by Doctors as it is unconventional and offers a novel gifting solution. 47% companies said that the Doctors will not like our product as its perceived value by doctors will be less. The Doctors living in villages may not like this product as they are not much aware about it. 21% respondents didnt give a clear response and they thought however it could be tried. SUMMER INTERNSHIP REPORT 2011
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The view of managers regarding pricing of Kara was discussed and the results are:
Interpretation: Most of the companies considered Kara as an expensive product since cheap substitutes are available in Market. They said since it is a disposable item, they dont want to pay much for this product. About 26% people were aware about the benefits of Kara and they were positive about the pricing of Kara. About 29% people were quite apprehensive of its price and they feel the company is overcharging because of its brand name.
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The respondents were asked if they have seen Karas advertisement on television and the results are:
Interpretation: Aditya Birla group started airing its advertisement of Kara from last month of May. The companies visited before that was not aware of the advertisement. Out of 66 respondents, about one third people have seen its advertisement when it was asked during conversation. However more people must have seen its advertisement since then. There were four different advertisements launched each having a duration of about 22 seconds.
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Those who saw the advertisement were asked as to how theyll rate the advertisement:
Interpretation: The respondents who had seen the advertisement were asked informally about their opinion about the advertisement. None of them considered advertisement of low quality and most of the people felt it was of average nature.
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Chapter 5: RECOMMENDATIONS
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RECOMMENDATIONS
Grasim Industries is working very hard to establish Kara as a leading product in Market. The product has made its mark in wet wipes segment. After completing my project, I would like to contribute my humble suggestions towards growth of Kara. These are as follows: 1. Launching Kara wipes in Canister Packaging: Though Canister packaging is not as durable as wipes packet, it offers more convenience when someone uses Kara while sitting on his office table or keeping it in car. This type of packing is quite common in foreign countries. Some of the companies which sell wet wipes in Canister packing are: a) Kleen Test Products , Ohio, America b) American Hygienics Corporation, China Shanghai Shine Plastic Co. Ltd., China is contract manufacturer for canister packaging.
2. Placing Kara in Cash and Carry stores: Cash and carry stores are a prime location for wholesalers and institutional buyers. All the variants of Kara can be placed for bulk purchases giving appropriate discounts. Carrefour store at Seelampur Metro station in Delhi and Best Price stores from Bharti-Walmart can be targeted for our product.
3. Moisturizing and sunscreen wipes for gynecologist: Pharmaceutical companies can be approached with moisturizing, sunscreen and other variants who do gifting for gynecologist.
4. Revising Discount schemes: Most of the companies were not convinced with Discount slab as they assumed offered rate as Wholesale rates and not Corporate rates for Kara.
5. Approaching event management companies: Event management companies can be targeted and corporate tie-ups can be done for High-end fashion shows, Polo matches, International conferences etc. SUMMER INTERNSHIP REPORT 2011
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6. Blogging about Kara: A blog can be created on internet which can educate people about skincare and benefits of using Kara wipes. The blog can be made interactive by putting surveys on it. The link of the blog can be bulk mailed to various people falling within the target market.
7. Displaying Customized stickers: While explaining customization options to corporate clients, it is better to show them few customized stickers of our current clients thus giving them a fair idea of how we can customize their brand on sticker.
Since, Handys are also a premium product from Grasim Industries; few suggestions for Handys are given as below:
1. Using Handys in High-end restaurants: Handys is a very good substitute of conventional fingerbowls which are used in restaurants. Expensive restaurants in 5 star hotels which offer Indian food to its guests, give fingerbowls to them for cleaning their hands. It could be replaced by Handys which offers better sanitation properties and can help restaurants for environmental audit.
2. Advertisement for Handys: Handys has a vast potential in field of Hand sanitizing wipes. Advertisements on television can be aired to make people aware of it. One such concept is: Two housewives are sitting. One is disturbed because her son is not well and often misses his school. She says that she takes all the precautions to ensure hygiene of his son but still he becomes sick. The second wife says that keeping an eye on child is difficult when he is in school. They may not know if he washes his hands before eating his Lunch. It is best if she keeps a sachet of Handys in his Tiffin box, so before eating his lunch, he can sanitize his hands. This advertisement can targeted for Housewives who can use this product for both her Husband and Children.
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Chapter 6: BIBLIOGRAPHY
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Literary references
1. Philip Kotler; Marketing Management, 11th Edition 2005. 2. Naresh Malhotra; Marketing Research, An Applied Orientation, 6th Edition 2009. 3. Azhar Kazmi; Strategic management and Business Policy , 3rd Edition 2010. 4. Euromonitor International; Wipes in India Country Report, May 2011.
Questionnaire Objective: Identify and suggest how to maximize sales opportunities and develop long- term relationships within target accounts for Kara Q.1 The concerned company belongs to which of the following sector a) Pharmaceuticals b) Hotels c) Auto and Allied d) Hospitals Q.2 The pharmaceutical company visited is a) A Delhi based manufacturer for domestic market b) A Contract manufacturer c) An Export House d) Having its corporate office in another city Q.3 Have you heard about Kara ? a) Yes b) No Q.4 Do you use wet wipes for corporate gifting ? a) Yes b) No Q.5 In future will you prefer Kara for Corporate gifting ? a) Yes b) No Q.6 Why doesnt company prefer Kara for corporate gifting? a) Doesnt do ethical marketing b) Manufactures its own gifting products c) Already done gifting for this month/quarter d) Perceived value by doctors wont be much e) Discounts provided are less f) Discussion in progress with management SUMMER INTERNSHIP REPORT 2011
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Q.7 Do you think the doctors will appreciate Kara? a) Yes b) No c) Maybe Q.8 How would you rate the pricing of Kara?
Q.9 Have you seen the advertisement of Kara on television ? a) Yes b) No Q.10 How will you rate the advertisement ? a) Good b) Average c) Poor
Name: Designation: Company: e-mail: Contact No. :
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Annexure 2: COMPANIES VISITED
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Pharmaceutical companies:
a) Delhi based Local Manufacturers 1. Dr. Morepan Labs 2. Generix Life Science 3. Ozone Pharmaceuticals 4. Lark Laboratories 5. SAS Pharmaceuticals 6. Kee Pharma 7. Winsome Labs 8. Seagull Pharmaceuticals 9. Profic Organic Ltd. 10. United Biotech 11. Alchemist Life sciences 12. Cooper Pharma Ltd. 13. Rhydberg Pharmaceuticals 14. Rapross pharmaceuticals 15. Paksons Pharmaceuticals 16. Athens Labs 17. Wings Pharmaceuticals 18. Algen Healthcare 19. Akums Drugs and Pharma Ltd. 20. Numarck Pharmaceuticals 21. Cyper drugs 22. Affy Pharma 23. ABS Remedies Pvt. Ltd. 24. Pharmasynth Formulations Ltd. 25. Sanat Products Limited 26. Eli Lilly 27. Win Medicare 28. SR Medicare 29. Tribhawan Injectibles 30. Synokem Pharmaceuticals 31. Kylsans Drugs & Chemicals (P) 32. Sanjeevani Healthcare Inc. 33. Biomeriux India Pvt ltd. 34. Life Medicare and Biotech 35. G L S Pharma 36. Modi mundi Pharma 37. Unimark Health Care 38. Radicura pharmaceuticals
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b) Contract Manufacturer 39. Rajasthan Antibiotics c) Export House 40. New Life pharmaceuticals 41. XL Laboratories 42. Arbro Pharmaceuticals 43. Indus Pharma Pvt Ltd. 44. Gracure Pharma 45. Scilla Biotechnologies Limited 46. Klintoz Pharmaceuticals pvt ltd d) Corporate office in another city 47. Elder Pharmaceuticals 48. Cadila Healthcare 49. Lupin Ltd. 50. Glenmark Pharmaceuticals 51. Geno Pharmaceuticals 52. Astra Zeneca Pharmaceuticals 53. Allergan India Pvt Ltd 54. East African Remedies Hotels 55. Shangri-La's - Eros Hotel 56. Taj Palace Hotel 57. Hyatt Regency 58. ITC Maurya
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Automobiles 59 Audi Delhi 60 Honda Cars 61 Skoda Auto ( gurgaon) 62 Carnation Auto
Hospitals 63. Deepak Memorial hospital 64. Max Balaji Hospital 65. Metro Hospital 66. Fortis Hospital