CHAPTER-I

1.1

SECTOR IDENTIFICATION

From the total population,73% of the Indian population lives in the rural areas.
Thats almost 12% of the world population.
There are 600,000 villages in India. 25% of all villages account for 65% of the
total rural population.
Many companies are entering to the rural market and the potential of the market
encourage me to do project work in the rural market.
To get the maximum out of this opportunity, all organization needs to plan
strategically
Since this theoretically constitutes a huge market potential, marketers will tend to
throw in their hooks to catch the fish. Now with the urban demand hitting the
plateau, rural markets are gaining more importance and we cannot ignore it.
Hindustan Levers sales turnover in rural market alone is over five thousand
crores - thats a whopping fifty percent of the total sales turnover. So we can
imagine how much potential the rural market has?
What has happened from 1990 onwards is that advertisers spent a lot of on and by
default they covered some rural markets as well. As a bonus, these advertisers
started getting certain returns from the rural market - bonus of investment, which
they had actually made for the urban market

1.2

PROBLEMS PREVAILING IN THE PARICULAR SECTOR

Low education level.
Less developed infrastructure.
In rural markets, brands are non-existent.
They identify FMCG by three things -primarily by color, visuals of
animals and birds and by numbers. So a 555, 777, pila hathi, lal saboon - these
are the kind of terms with which they identify brands. They buy those three
things: colors, numbers and visuals.
There are number of cases which suggest that to sell brands in the rural
market, it is necessary to simultaneously educate the consumers. Foer example,
villagers were found using shampoo for brushing teeth, toothpaste for washing
hair, and these are real life examples, not stories being created. They dont know
what these shampoo sachets stand for. So if you have to create brand
communication, marketing efforts must be supported by education.
Longer credit period requirement.
We need a set of people who understand the ethos of the rural market - people
who understand the social fabric, who understand how the rural consumer
interacts with the various categories because we believe that we do need a
different level of understanding for tackling this market.

Rural retailers are far less specialized than their urban counterparts and carry a
wider range of products. Since frequent delivery is not possible in their part of the
world, they tend to carry only a single brand in each product category. And,

usually, the brands that are first on the rural shelves become synonymous with
product category and are difficult to dislodge.

1.3 WAYS OF CONTRIBUTING

For tackling with the changing behavior of the costumers and their lifestyle, we
need to identify the key factors, which influence the decision of the customers at the time
of making a choice. And as per this, company can modify or improve their present
business plan or strategy. So they can attract more and more costumers to their company
and make them satisfied
As the competition is one of the main problems, it is necessary to know the
category wise competitors for the particular company. And for that, the simple way is that
directly ask to the potential costumer of the company. For more detail we also can ask
customer for specify the name of competitors of the particular company based on the
purpose of costumer.
.
For the better reach to the consumer well-defined distribution channel is very
important. So identification of major factors for designing well establish and satisfied
distribution channel is important.

1.4 COMPANY SELECTION

Many big and small companies are operating and selling their products in the
rural market. For different type of products different companies are there performing their
marketing activities.
.

For my winter project training, I have approached to Marico Ltd.. It was

my fortune that area sales manager of the Marico Ltd. was impressed with my project
proposal and allows me to do my winter project training over there.

CHAPTER-II
2.1

COMPANY INTRODUCTION

ABOUT MARICO
Mission Statement: To fuel Innovation in India.
Marico is a leading Indian Group in Consumer Products and Services in the Global
Beauty and Wellness space. Maricos Products and Services in Hair care, Skin Care and
Healthy Foods generated during 2005-06 a Turnover of about Rs.11.5 billion (USD 250
Million). Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair
& Care, Nihar, Shanti, Mediker, Revive, Kaya, Sundari, Aromatic Fiancee and HairCode.
Maricos brands and their extensions occupy leadership positions with significant market
shares in most categoriesCoconut Oil, Hair Oils, Anti-lice Treatment, Premium Refined Edible Oils, Fabric Care
etc. Marico is present in the Skin Care Services segment through Kaya Skin Clinics (47
in India and the UAE), the Sundari range of Spa skin care products (in the USA & other
countries) and also through a recently acquired nascent soap franchise (in India and
Bangladesh).
Marico's branded products are also present in Bangladesh, other SAARC countries, the
Middle East and Egypt. The Overseas Sales franchise of Maricos Consumer Products
(whether as exports from India or as local operations in a foreign country) is one of the
largest amongst Indian Companies and is entirely in branded products and services.
Every month, over 70 Million consumer packs from Marico reach approximately 130
Million consumers in about 23 Million households, through a widespread distribution
network of more than 2.5 Million outlets in India and overseas.
Maricos focus on sustainable profitable growth is manifest through its consistent
financial performance a CAGR of 13 % in Turnover and 15%in Profits over the past 5
years- while setting a record of several consecutive quarters of year on year growth- 29
for Profits and 25 for Sales, and distributing dividends for 24 consecutive quarters.

The Marico scrip is listed on the Bombay Stock Exchange (BSE) (Code 531642) & on
the National Stock Exchange (NSE) (Code MARICO).

Marico Yesterday and Today

A leading Indian group operating in

o

Consumer Products

Aesthetic Services

Global Ayurvedics business

FY 2004-05 Turnover ~ Rs.10 billion (USD 230 Million)

12

brands

and

extensions

with

leadership

in

respective

categories

Parachute, Parachute Advansed, Parachute Sampoorna, Saffola, Sweekar,

Parachute Jasmine & Rose, Hair & Care, Shanti, Mediker, Oil of Malabar,
Mealmaker, Sil, Revive, Silknshine

The Overseas Sales franchise of Marico's branded FMCG products

One of the largest amongst Indian Companies

Marico's own manufacturing facilities are located at Goa, Kanjikode, Jalgaon,

Saswad Pondicherry, Dehradun and Daman.

2.2VALUES OF MARICO INDUSTRY

Opportunity seeking

Bias for Action

Consumer Centric

Excellence

Innovation

openness & transparency

Global outlook

Boundary lessness
Marico has a set of articulated values that were created at the inception of the

organization, revisited and modified once in the year 1997 and lately in 2005, through the
collective wisdom of Mariconians. The values since then have been an integral part of the
workingofallMariconians.
Our values are preferred practices that are employed in pursuit of our Business Direction.
They sum up the philosophy that will build the culture to drive business growth.

How Marico structured

A Flat Structure:

At Marico, we are an organisation, which is flat with only five levels of reporting
between

the

Managing

Director

and

an

operator

on

the

shop

floor.

We believe that a flat structure helps us in being more responsive to the environment
while providing enriched roles for our members. Our structure defines clear roles and
supporting relationships but is by no means rigid. Keeping in mind the fast and ever
changing business environs, Marico's structure is dynamic and constantly evolving.

Profit Centers:
In order to provide focus to its business operations, Marico has organised its businesses
into the following business segments or profit centers:
Consumer Products, comprising the operations of Marico Limited and Marico
Bangladesh Limited. This division manufactures & markets Marico's 10 leading
consumer product brands like Parachute, Saffola, etc.
Aesthetics Services, comprising operations of Kaya Skin Clinics under the banner of
Kaya Skin Care Ltd. Kaya Skin Clinics offer US FDA approved scientific dermatological
procedures that are customised to suit the Indian skin.
Global Ayurvedics, comprising the operation of Sundari LLC in the US. Sundari markets
the Sundari range of Ayurvedic skin care products in the US & other parts of the world.
All the above profit centers have their dedicated marketing teams, distribution channels,
sales force and backroom facilities.

Finance:

The company is strongly supported by the Finance Division, which handles the legal,
treasury, tax, control systems and management information support. Additionally, every
profit center has its own dedicated finance cell.

HR:
Equal support comes from our HRD team, which expends its energies, formulating and
building strategies to build a stable and high - talent organisation.

The innovations and the quest for excellence at Marico continue unabated. Even as the
success stories continue, the focus from the consumer never shifts.

2.3 Sales & Distribution of Marico Industry

Marico'sDistributionNetwork:
Marico's distribution width and penetration is acknowledged as one of the $$best in the
industry and is a leverageable strength. Every month, 56 million consumer packs are sold
to about 1.8 million households through 1.6 million retail outlets spread across the
country. Marico's distribution network covers almost every Indian town with a population
of over 20,000.
Marico use the different distribution network for Urban market and for Rural market.
Thus, 1 out of every 10 Indians is a Marico consumer.

Rural Sales & Distribution:

Marico's parallel rural sales and distribution network ranks among the top three in
the industry and contributes 24% to the company's topline.

Our infrastructure comprises 882 direct distributors, 153 super distributors,

catering to 2393 small stockists and 4523 van markets.

A dedicated team of Territory Sales Executives and Pilot Sales Representatives

distribute Marico's as well as alliance brands through this vibrant network.

Sales Capacity:
We have made significant progress in the areas that enhance sales capacity.

Quality of our distributors

Quality and number of the distributor field force

Upgradation in the role of the company's front-line sales force.

2.4PRODUCT PROFILE

Parachute

Parachute After shower Hair Cream

Parachute After shower Hair Cream for men, is a hair styling cream that can be
used daily to style your hair. It has Aqua Moisturizers & since it is made in an oil-inwater emulsion, it is completely non-sticky. Parachute After shower Hair Cream
contains coconut milk proteins, which keeps hair nourished.

Parachute Advanced

Parachute is premium edible grade oil, a market leader in its category. Synonymous
with pure coconut oil in the market, Parachute is positioned on the platform of
purity. In fact over time it has become the gold standard for purity. From a loosely
available commodity to a path-breaking brand, Parachute pioneered the switch
from coconut oil sold in tins to plastic. Parachute is also available in pouch packs, to
service the rural sectors, increasing penetration. While the positioning of Parachute
has always been on purity, the communication has evolved over time to appeal to
different consumer sets. In fact with the recent commercial " Badalte Zamane ka
naya Parachute", Parachute has appealed to the hearts of millions of young
consumers. By changing its pack shape to one that is sleek, modern and aesthetic,
Parachute has kept up with the demands of modern, young India and proved its

endeavor to always remain relevant. Parachute has thus ensured that it enjoys
tremendous equity and trust with every passing generation.

Innovations in Parachute:

Flip Top Cap for Parachute bottles to enhance the safety and protect the purity of
Parachute

Easy Jar of Parachute to facilitate usage especially during winters

Parachute Mini - a bottle shaped small pack being sold at an MRP of Re. 1

Parachute Jasmine
Parachute Jasmine is a light, fragrant oil that can be used everyday to nourish and
sytle your hair. It has the goodness of pure coconut oil and the essence of fragrant
jasmine to give you healthy, non-sticky, free flowing and fragrant hair.

Hair & Care

Maricos Hair & Care, pleasantly perfumed non-sticky hair oil is a strong brand in
its category. It is positioned on the platform of being the lightest perfumed hair oil
offering both Style & Nourishment. Hair & Care is upto 50% non-sticky than any
other hair oil & is enriched with Herbal Proteins, which nourishes hair with their

natural goodness. Herbal Proteins are extracted from Neem & Tulsi, a process
patented by Marico.

Silk-n-shine

Hair & Care's Silk-n-Shine is a post wash hair conditioner from Marico. Silk-n-Shine is a
hair potion with the goodness of fruit-vitamins that works naturally on tangled hair with a
unique 3-step action, leaving it soft and silky.

Shanti Badam Amla

Launched in April 2005, Shanti Amla marks Marico's successful entry in the Amla+ Hair
Oil market. It is launched on the platform of "Goodness of Badam with Amla".
.

Oil of Malabar

Oil of Malabar is premium quality edible grade coconut oil. This brand is one of Marico's
recent acquisitions, having been bought in November 1999. Oil of Malabar, as the name
suggests, is positioned on purity - as the oil from the land of coconuts.

 Mediker
Mediker, a three-decade-old brand was acquired by Marico from Procter & Gamble, in
July 1999, in the shampoo format. Mediker is a brand for treating lice and a market leader
in its category.
Mediker today has three products in its portfolio: Mediker Anti Lice treatment, Mediker
Anti Lice Oil and Mediker Plus Anti Lice Oil.

Revive
Revive is an Instant Cold Water Starch, the ONLY product of its kind. Formulated with
the latest International technology to give clothes uniform, strong starching, it is uniquely
positioned

on

the

platform

SWEEKAR

of

making

your

'Clothes

Look

Like

New".

(REFINED SUNFLOWER OIL)

Sweekar is a national brand comprising of Refined Sunflower Oil. Sweekar has

become synonymous with good quality light edible oil. It is positioned as a light and
healthy cooking medium.

Sweekar Low Absorb Oil:

In its quest to provide higher value to its consumers, Marico launched Sweekar Low
Absorb Oil - India 's first low absorb oil, during the third quarter of 2001-02. Food
cooked in this absorbs less oil providing the consumers the twin benefits of health and
economy. University Department of Chemical Technology (UDCT), an institute of
international repute has verified the claim.

SAFFOLA
Saffola Kardi
Nature:
Saffola is made from the finest quality natural kardi seeds.

Heart:
Kardi oil has the highest amount of Polyunsaturated Fatty Acid amongst all vegetable
oils. Saffola when taken as a part of a low saturated fat diet may help reduce cholesterol
levels. Lowering of cholesterol is known to reduce the risk of heart disease (C.H.D).

Saffola Gold - Dil Ko Rakhiye Jawan

Saffola Gold has the internationally proven formula of 70% Rice Bran Oil (RBO)
and 30% of Safflower Oil (Kardi oil). This has also been proven effective in Indian
research.

What makes it so good?

Saffola has a Unique Double Action

Helps reduce Cholesterol

Absorbs less into your food

Sil
Sil is a processed food brand. It has a wide range of exciting products such as Jams,
Sauces, Baked Beans, Chinese Vinegar, Sweet Corn Soup and Mayonnaise. Sil
stands for products that offer "Lip-Smakin' Goodness".

3.1Research Objective
OBJECTIVE

Performance Evaluation of Parachute After Shower Hair Cream.

3.2 Research Design

1) Purpose of study:- Descriptive
The objective of the study is that Performance Evaluation of ParachuteAfter
Shower Hair Cream. The study focuses on the different factors of the product, which
play the role of key drivers for the satisfaction of the customers.

2) Degree of research question crystallization:- Exploratory study

As per the objective of this research, the research questions would try to find out the
current situation in the market. Moreover, the hypothesis is not pre-defined here, but
it would be define during the study. Here research problem is also general.

3) Research control of variables:- Ex post facto design.

I am reporting what has happened and what is happening in the region. I have no
control over the variation in the sense of being able to manipulate them. I have not
influence the variables; to do so to introduce the bias.

4) Time dimension:- Cross-sectional

Here the study will be carried out once and it would represent a snapshot of one point
in time. Time duration, in which study must be competed, is the limitation and that is
why the cross-sectional is the best alternative.

5) Method of data collection:- Interrogation

Based on my initial observation, I have prepared a questionnaire to collect the
response of customers as primary data. Versatility of the questionnaire will help to cover
almost all related factors to the customers satisfaction. Interrogation takes less time than
observation and gives information that is more purposeful.

6) Topical scope:- Statistical study

This study attempts to capture a populations characteristics by making
interference from a samples characteristics. Hypothesis will be tested quantitatively.
Generalization about findings will be presented based on representative ness of sample.

7) Research environment: Field study.

Survey is the main part of the study and primary data collection. So that the study
will be carried out in field, I have gone to the market and interviewing intermediaries for
filling the questionnaire.

3.3 Data Collection Design

Data source: Primary source

To satisfy the objective of the research it is necessary to get the response
from the respondents, which act as primary source of data.

Instrument: Questionnaire
Questionnaire Designing
Designing a Questionnaire is not as simple as it looks at first site. I have
taken care what information is to be collected, how many questions are to be
formulated, what should be there sequence, what should be the wording of each
question, and what should be the lay out of the questionnaire.

Type of Questionnaire: Structured-non disguised

I have arranged the questions in a specific order to get the facts and the interviewer
are asked to response strictly in accordance with a pre-arranged order. The objective
of the survey was disclosed every time before getting the response from the
respondent

Type of questions: Close ended questions.

All questions designed are of such type for which respondent have to give
responses in specifically provided alternatives only.

3.4 Sampling Plan

Sample Size: 100.
Sampling Technique: Convenient
Sampling Area: South Gujarat.

Data tabulation and Analysis

Occupation of the Respondents.
occupation of respondence

45
40
35
30
no of respondents

25
20
15
10
5
0

no of respondents

Student

Professional

Businessmen

Others

42

33

17

Findings:
From the above graph we can say that students are the main customers of
the Product.

Are you aware of the Parachute After Shower?

awareness about products

100
90
80
70
60
no of respondents

50
40
30
20
10
0

no of respondents

yes

no

100

Findings:
From the above graph we can say that customers are fully aware of the
Parachute After Shower Hair cream.

 Have you ever used Hair Cream?

using of hair cream

100
90
80
70
60
no of respondents

50
40
30
20
10
0

no of respondents

yes

no

100

Findings:
From the above graph we can say that all the customers using the hair
Cream.

Hair Cream of Which Brand?

Hair Cream of which Brand

31

Parachute After
Shower
Set Wet
57

Bryl Cream

12

Findings:
From the above graph we can say that the customers using the
Parachute After Shower is more than the competitors product.

 Time Duration of using the Parachute After Shower cream by

Customers.

Time duration of using PAS

45
40
35
30
25
no.of respondents
20
15
10
5
0
no.of respondents.

1-30 days

31-60 days

61-90 days

91-120 days

43

Findings:
From the above graph we can say that the majority of users using the
product from More than two months.

Frequency of using the Hair cream.

Frequency of using the Hair Cream

40
35
no of respondents

30
25
20
15
10
5
0
Daily
Occassionally

PAS

Bryl Cream

Set Wet

38
19

18
13

10
2

Findings:
From the above graph we can say that the customers using the
cream Daily are more.

hair

Purpose of using the hair cream.

Purpose Of Using the Hair Cream

no of respondents

30
20
10
0
Style
PAS
Bryl Cream
Set Wet

24
25
8

Hair Healthy
Others
Protecti hair
21
3
1

6
0
0

6
3
3

Findings:
From the above graph we can say that the customers are using the hair
cream Mainly for the style purpose.

Satisfied with the product or not.

Satisfaction of customer with product

35
30
25
20
15
10
5
0

Highly
satisfied

Satisfied

Neutral

Disssatisfied

Highly
Dissatisfied

PAS

32

Bryl Cream

15

Set Wet

Findings:
From the above graph we can say that the customers of Bryl Cream is
more Satisfied with the product performance than the Parachute After Shower hair
cream.

 Would you switch over the brand?

Switch over the Product

3.5
3
2.5
2
1.5
1
0.5
0
yes
no

PAS

Bryl Cream

Set Wet

2
3

0
3

1
1

Findings:
From the above graph we can say that the customers using the Bryl
cream are more Brand loyal than the Parachute After Shower cream.

 Improvement needed in the product.

Improvment required in the product

5
4
3
2
1
0
Price

Effective
Hours

Side
Effect

Packaging

PAS

Bryl Cream

Set Wet

Findings:
From the above graph we can say that customers need improvement in
effective hours of the product.

Product avaibility in the market.

availibilty of product

100
90
80
70
60
no of respondents

50
40
30
20
10
0

no of respondents

yes

no

100

Findings:
From the above graph we can say that all the hair cream available in the
market as and when customers needed.

Factors influencing the purchase decision of Parachute

After Shower Hair Cream.

factor that influence purchase decision of PAS

285

Total points

171

57
total points

Brand Image

Price

Effective Hours

Side Effect

Packaging

218

121

264

135

113

Findings:
From the above graph we can say that the Effective hours
Of Parachute After Shower Hair Cream influencing more while Customer Purchase
the product.

 Factors influencing the purchase decision of Bryl Cream.

factor that influence purchase decision of BRYL CREAM

155

93

31
total points

Brand Image

Price

Effective Hours

Side Effect

Packaging

120

98

112

70

65

Findings:
From the above graph we can say that the Brand Image
Price of Bryl Cream can influence more while customers purchase it.

Factors influencing the purchase decision of Set Wet.

Factor that influence purchase decision of SET WET

60

36

total points

12

total points

Brand Image

Price

Effective
Hours

Side Effect

Packaging

40

46

35

29

30

Findings:
From the above graph we can say that price of set wet can influence more
While customers can purchase it.

Recommendation of the Product.

Recomondation of the Product

60
50
40
30
20
10
0
yes
no

PAS

Bryl Cream

Set Wet

48
9

26
5

10
2

Findings:
From the above graph we can say that existing customers of all the
Brands can recommend the product to other customers.

 Chi square test: frequency of using Vs purpose of using

frequency of using
Daily
occasionally
purpose of using
style
hair protection
healthy hair
others
Total

43
12
4
7
66

total

14
13
2
5
34

57
25
6
12
100

Null hypothesis:
The frequency of using the hair cream is dependent on the purpose of using
the hair cream.
E
43
12
4
7
14
13
2
5

O-E
O-E*O-E O-E*O-E/E
37.62
5.38
28.94
0.77
16.5
-4.5
20.25
1.23
3.96
0.04
0.00
0.00
7.92
-0.92
0.85
0.11
19.38
-5.38
28.94
1.49
8.5
4.5
20.25
2.38
2.04
-0.04
0.00
0.00
4.08
0.92
0.85
0.21
6.19

Here V = (r-1)*(c-1) = (4-1)*(2-1) = 3

So here table value, significance level is 95%, is 7.81.
My calculated value is smaller than table value so my hypothesis is
accepted.
So, here I would like to conclude that frequency of using the hair
cream is dependent on the purpose of using the hair cream.

Recommendations
As the students are the main customers, company should keep in mind the needs
and desire and the life style of students/young generation. As per that company
can do a positioning for the particular product.

Company should offer such a promotional offers that induces the potential
customers to purchase the product. as it launch.

Company can increase the usage of product by introduce it as replacement of hair

oil.

Majority of the customers are satisfied, but still almost 20% of the customers are
dissatisfied with the product. So company should put effort to convert them in
satisfied customers.

To reduce the switch over rate management is suppose to identify the reasons
behind this, and give serious thought on that.

Most of the customers want improvement in effective hours as well as price. So

company should consider this.

Brand image, effective hours and the price these are the main attributes which
influence the purchase decision of the customers. So management have to take
care of that attributes.

As most of the customers are satisfied with the product performance. So they
recommend the product to other customers. It is the advantage for the company to
increase their sale in the market.

Limitation of the study

Data
Conclusion
Interpretation
Processing
Collection
&
&by
Field
Suggestions
Analyzing
survey