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THE GAP ANALYSIS IN SALES AND DISTRIBUTION OF FEM PRODUCTS RELATING TO MODERN TRADE
Dabur India Limited
Kaushambi, Ghaziabad – 201010 Uttar Pradesh, India
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY
BY JITESH KHANNA 09DM049
I Jitesh Khanna, student of Birla Institute of Management Technology, Greater Noida hereby declare that project entitled “The gap analysis in sales and distribution of FEM products relating to Modern Trade” is original work done by me under the guidance of Mr Ankur Jain Area Head Modern Trade (North Zone II) Dabur India Ltd. and Prof. Masilamani, Faculty, BIMTECH. The information provided in the study is authentic to the best of my knowledge. All care has been taken to make this report error free and I sincerely regret for any unintended discrepancies that might have crept into this report. I shall be highly obliged if errors (if any) be brought to my attention.
Thank You Jitesh Khanna PGDM – 09DM049 Jitesh.email@example.com
a task is said to be incomplete without the blessings of almighty and elders.ac. Also acknowledging the work and help of all those who have guided me for the completion of my research on time. R J Masilamani for not only providing me with the opportunity for this firstname.lastname@example.org 3 . Regards Jitesh Khanna PGDM – 09DM049 Jitesh.Acknowledgment In Indian culture. I feel I have not been able to express my gratitude to all of them. I express my deep sense of gratitude and reverence for my parents and my dear friends for their endless love. as no words can thank them for their teachings and love shown towards me. moral support. I am deeply indebted to Mr Ankur Jain Area Head Modern Trade (North Zone II) Dabur India Ltd. but also enthusing me to work on this very meaningful subject. guidance. Still. I express my sincere thanks to all those who helped me in my training. encouragement and untiring cooperation throughout my study and work. and my faculty mentor Prof. without which this work would never have been completed. I am also grateful for the cooperation and valuable support given to me by the employees of the organization throughout my training. Their constant encouragement was a source of strength for me in pursuing this work.
This is his/her original work to the best of my knowledge.Summer Project Certificate This is to certify that Mr Jitesh Khanna Roll No. 049 a student of PGDM has worked on a summer project titled “The gap analysis in sales and distribution of FEM products relating to Modern Trade” at Dabur India Limited after Trimester-III in partial fulfilment of the requirement for the Post Graduate Diploma in Management programme. Date: ___________ Signature ________________ (_________________________) Name of Industry Mentor Company Seal 4 .
Date:___________ Signature ________________ (_________________________) Name of Faculty Mentor BIMTECH SEAL 5 . 049 a student of PGDM has worked on a summer project titled “The gap analysis in sales and distribution of FEM products relating to Modern Trade” at Dabur India Limited after Trimester-III in partial fulfilment of the requirement for the Post Graduate Diploma in Management programme.Summer Project Certificate This is to certify that Mr Jitesh Khanna Roll No. This is his/her original work to the best of my knowledge.
Table of Contents Executive Summary Overview of FMCG Sector in India Introduction Company Profile Introduction to Dabur Dabur Over Years Corporate Philosophy Location of Operations Company Business Activities Dabur Manufacturing facilities in India Dabur worldwide About FEM About the Project FEM Product Portfolio Competitors of FEM Organization Structure Project Analysis First Part 8 10 13 14 15 18 22 23 25 26 27 28 30 34 43 49 52 54 57 60 71 74 77 78 101 Distribution network of Dabur Distribution process of Dabur in Modern Trade Data Presentation Gaps Second Part Sale Promotion Sale Promotion done by competition Data Presentation Findings Recommendation Part 1 Part 105 2 107 6 .
Conclusion References Bibliography Annexures Annexure 1 Annexure 2 Annexure 3 Annexure 5 Annexure 5 Annexure 6 Annexure 7 Annexure 8 Annexure 9 Annexure 10 Annexure 11 109 110 111 113 114 115 116 117 118 119 120 121 122 123 7 .
various modern trade outlets and their central distribution centers were visited. To study the first part. In the second part. Faridabad. To solve these problems various suggestions have been mad. Some of the loopholes that came forward are Fill rate being less than 65%. In total 152 people responded to the survey. Motivation should be given through various incentive schemes to the distributors. assortment. NCR (includes Gurgaon. retailers only prefer keeping fast moving SKUs thereby neglecting the other SKUs. Special norms should be created for timely supply of orders. Findings from the survey were that most people think major part of the promotion is done 8 . Noida & Ghaziabad). For instance to handle low fill rate. retailers and salesman to keep up the sale of FEM. a survey was conducted in different modern trade outlets. MBQ levels and assortment of FEM products and the various methods of sale promotion that can result in incremental sales of FEM products in modern trade.Executive Summary Dabur India is one of the leading FMCG Companies in India. MBQ level should be decided as per the footfall in a particular week of a store. unavailability of one SKU can be substituted by making available more units of another SKU of the same product. The main objective of this project is to identify the loopholes that exist in the current distribution. MBQ levels of FEM products in these stores within the following categories a) Bleach b) Hair Removal Cream c) Liquid Soaps ii) Study promotion/activation mix for these categories done by competition’ was undertaken was undertaken for duration of two months as a part of the learning process during the summer training at Dabur India Ltd.The study objectives were: Identify gaps in distribution. The project I undertook is‘Gap analysis of FEM products in sales & distribution across all national & regional chain modern trade stores in Delhi. MBQ levels are constant irrespective of their demand in the market. Dabur offers very low margins to the retailers. Special schemes should be provided to retailers on sale of slow moving SKUs. interviews were conducted with them to know what kind of challenges are faced by them as regards to FEM. Replenishment at times takes more than the stipulated period of delivery. Footfall of the store is not considered while deciding the MBQ. Most of them were women in the age group 18-35.
9 . and my observations were that while hair remover falls in the introductory stage. since FEM promotion is not consistent not many people have bought FEM under promotion. its distribution structure. Hair Remover needs more advertising. sale promotion and personal selling but above all it is dependent on word of mouth the biggest promotion tool. which I feel will help me in my future endeavours in life.through consumer promotion schemes. People are satisfied with the pricing of FEM. People prefer to try a skin care product before using it. All the 3 categories of FEM naming Bleach. hair remover and liquid hand wash were put on the product life cycle stage. It was an excellent experience while working with Dabur India limited. bleach and liquid hand wash comes in the growth stage. Personal selling and trial packs should be encouraged. I learnt about the environment and culture of the organization. Bleach and Hand Wash needs advertising. Most people prefer monetary schemes over non-monetary schemes.
OVERVIEW OF FMCG SECTOR IN INDIA 10 .
toothpaste. Growth is also likely to come from consumer 'upgrading' in the matured product categories. intense competition between the organised and unorganised segments and low operational cost. With 200 million people expected to shift to processed and packaged food by2010. particularly the middle class and the rural segments. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10. With growing incomes at both the rural and the urban level. Penetration level as well as per capita consumption in most product categories like jams. Availability of key raw materials. cheaper labour costs and presence across the entire value chain gives India a competitive advantage. Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10. with a population of over one billion. India is one of the largest emerging markets. the market potential is expected to expand further. skin care. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33. hair wash etc. Burgeoning Indian population.5 billion in 2001-02. presents an opportunity to makers of branded products to convert consumers to branded products.4billion in 2015.1 billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million. 11 . It has a strong MNC presence and is characterised by a wellestablished distribution network.The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$13. India needs around US$ 28 billion of investment in the food-processing industry. In India is low indicating the untapped market potential.
The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets.Rural-urban profile Source: Statistical Outline of India (2008-09). NCAER An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products.000 Universe of Outlets (mn) 1 3.3 12 . Urban Rural Population 2001-02 (mn household) 53 135 Population 2009-10 (mn household) 69 153 % Distribution (2001-02) 28 72 Market (Towns/ Villages) 3768 627.
INTRODUCTION 13 .
The founder of Dabur India Limited-Dr.S.Company Profile Dabur India Limited came into existence over 100 years ago in 1884 in Calcutta.Burman (1856-1907) was a physician who brought Ayurvedic medicines for the masses of Bengal. His off quoted dictum is the guiding spirit behind Dabur even today: "What is the life worth which cannot bring comfort to others" And the Vision of DIL is: "Dedicated to the health and well-being of every household" 14 .K.
Dabur's corporate philosophy has always been ahead of its time.L. modern Indian corporation with a global presence.S.Burman) Pvt. At that time Malaria. the company has its own mainframes and computers are a way of life here. was merged with Vidogum and Chemicals Ltd.f.P. 15 .K. was a practicing allopathic doctor. From a humble beginning in 1884.K. Asavrishthas. multi-product. Initially established as a proprietary firm for the manufacture of chemicals and Ayurvedic drugs it was later on 19th November 1930 incorporated as private limited company. West Bengal and Daburgram. and other Ayurvedic specialties. Certification for production of toiletries and food grade products was issued on 13th October 1986 by the registrar of Delhi and Haryana to the company.a technique that became very popular nearly a century later.) for the manufacture of Chyawanprash. w. Hajmola. Late Shri C. The company was one of the earlier Indian companies to have fully equipped R & D lab as early as in 1919. The main plant was set up in Sahibabad (U.Burman.S.e. Personal care and Beauty care. Company in the name of Dabur (Dr S. a closely held Public Limited Company. The founder's initial success was mainly due to his direct main campaigns. Burman and his son late Shri P.Burman in the name of Dr S. In 1975. Bihar. the bulk of manufacturing facilities were shifted from West Bengal to Faridabad in Haryana. a manufacture of traditional medicine in Calcutta.Burman) Pvt. Ltd. He was a physician who brought Ayurvedic medicines to the masses of Bengal. It was incorporated as a Private Ltd. It now enjoys the distinction of being the 2nd largest FMCG Company and is praised to become a true Indian Multinational.Burman Pvt. son of late Dr S. Hair oil. to expand the operations by setting up production facilities at Garia and Narendrapur. The founder. In 1977.) in 1977 for manufacturing of Chyawanprash. Dabur (Dr.P.K.K. Cholera and Plague were the common diseases. Dabur's main line of business is in the sphere of Health care. 1st July1985 and the amalgamated company was renamed DABUR INDIA LIMITED and a fresh certificate of incorporation was issued to that effect.Burman. Today. Dabur has come a long way to become a multifaceted multinational. tooth powder. a modern automated plant was set up in Sahibabad (U.Introduction to Dabur Dabur India Limited came into existence over 100 years ago in 1884 at Calcutta. Hajmola and other Ayurvedic medicines and food products etc. Ltd.K.C. Its strength lies in natural and herbal preparations. vidogum and chemicals were incorporated in technical collaboration with Unipekin AG (Switzerland) for the manufacture of edible grade and industrial grade Guargum powder at Alwar in Rajasthan. Tooth powders. hair oil. In 1970. Ltd. Dabur Private Limited. Dr.
000 crores by year 2003. 400 crores.000 employees with around 1.2.800 crores with plans to achieve Rs. Company has recorded a growth of 36 per cent in its net profit per cent growth in its turnover during April-June 2003. has increased to Rs 266 crore to Rs 300 crore while the net profit has increased 11. Dabur portfolio is exceeding 500 products of FMCG and health care products. Dabur products are being exported to around 50 countries. The company has over 4. The first quarter results should not be annualized as sales usually improve in subsequent quarters. The Indian market is being served through a transactional network of sales offices and carrying and forwarding agents. 2003.5 crore to Rs 16 crore during the same period. Dabur has 34. The certification was obtained in 1995 by SGS YARSLEY international services Limited U. The company has its offices in London. It has manufacturing base in Egypt also.K.1.000 shareholders with market capitalization of over Rs. 16 . The turnover of DIL. New York and Moscow. during the three-month period. Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East.Dabur is also an ISO 9002 certified company. 2003 to consider the unaudited financials of the company for the first quarter that ended on June 30. The Board of Directors of Dabur India Limited (DIL) met on July 23. Dabur's revenue today exceed Rs.500 looking after sales and marketing functions.
S. K. which direct it's functioning as well as all its operations. and we have superior understanding of Consumer Focus: We encourage & reward excellence. Weand Ownership: This is our suit their needs accept personal values for money. with business partners and with each other. Dr .Dabur Vision “Dedicated to the health and well-being of every household” Dabur is a company with a set of established business values. We add value through result most. We are determined to be commitment is committed to product the ecological balance. recognizing risks. We are honest with consumers. Burman. nature We all are leaders in our area of acts as not only the source of raw materials but also an inspiration responsibility." The Company offers The vision is intertwined with below mentioned core values of the company:. The guiding forces for Dabur are the words of its founder. 17 .give them good its customers. the products to company. "what is that life worth that cannot give comfort to others. and accountability ethical practices in doing company is committed to follow the to meet business needs. with a deep and the companyto deliver results. The responsibility. Integrity: We are committed to the achievement of business success with integrity. We are intellectually honest Innovation: Continuous innovation in products & in advocating proposals. Team Work: We work together on the principle of mutual trust & transparency in a boundary-less organization. including processes is the basis of our success. At Dabur. driven training. Passion for Winning: business. People Development: People are our most important the best at doing what matters asset. consumer needs and develop products to fulfil them better.
he began a direct mailing system to send his medicines to even the smallest of villages in Bengal. Thus. the noble thoughts of Dr.Burman lays the foundation of what is known as Dabur India Limited.K. as they believe that it is only through Ayurveda that the healthcare needs of poor Indians can be met.S. The twelve hundred crores corporate today started with a small dispensary at Calcutta. From that humble beginning.Burman being the main source of inspiration behind the project.S.Dabur Over The Years More than a century ago. Dr Burman felt the need for mass production for some of his medicines. personal care and food products. Early 1900s: The next generation of Burman’s takes a conscious decision to enter the Ayurvedic medicines market. was born an organisation today known as Dabur India Limited. the company has grown into India’s leading manufacturer of consumer health care.K. some of which are mentioned below: 1884: Dr. a young doctor started with a vision to provide innovative and affordable health care products to Indian masses. He set up a small manufacturing plant at Garhai near Calcutta. 1920s: A-manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and Daburgram. Started from a small shop at Calcutta. This phenomenal progress has seen many milestones. This initiates a pain staking study of Ayurvedic medicines as mentioned in age old scriptures. their manufacturing processes and how to utilize modern equipment to manufacture these medicines without reducing the efficacy to manufacture these medicines without reducing the efficacy of these drugs. 18 . Dabur expands its distribution network to Bihar and northeast. 1919: The search for processes to suit mass production of Ayurvedic medicines without compromising on basic Ayurvedic principles lead to the setting up of the first Research and Development laboratory at Dabur. The brand name Dabur is derived from the words "DA" for Daktar or doctor and "BUR" from Burman. 1896: As the demand for Dabur products grows.
Ltd.1936: Dabur India (Dr S. This is the first time that a classical Ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.Burman) Pvt. is incorporated. 1972: Dabur shifts base to Delhi from Calcutta. This perfumed hair oil catches the imagination of the common man and film stars alike and becomes the largest hair oil brand in India. This is one of the largest and most modern production facilities for Ayurvedic medicines in India at this time.K. 1949: Dabur Chyawanprash is launched in a tin pack and becomes the first branded Chyawanprash of India. 1984: The Dabur brand turns 100 but is still young enough to experiment with new offerings in the market. Commercial production starts at Sahibabad. Dabur Lal Dant Manjan is launched and captures the Indian rural market. 1956: Dabur buys its first computer. 1979: The Dabur Research Foundation (DRF). 1978: Dabur launches the Hajmola tablets. 1940: Dabur diversifiers into personal care products with the launch of its Dabur Amla Hair Oil. Accounts and stock keeping are one of the first operations to be computerized. Starts production from a hired manufacturing facility at Faridabad. 19 . an independent company is set up to spearhead Dabur's multi-faceted research. 1970: Dabur expands its personal care portfolio by adding oral care products.
1989: Hajmola Candy is launched and captures the imagination of children and establishes a large market share.85 per share. 1993: Dabur set up the oncology formulation plant at Baddi. and is re-christened Dabur India Limited. The Dabur Research Foundation develops the unique eco-friendly process of extracting the drug from the leaves of the Asian Yew Tree. 1998: Project STARS (Strive to Achieve Record Successes) is initiated by the company to achieve accelerated growth in the coming years. 1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing and marketing confectionery items such as bubble gums in India. which heralds the company's entry into the processed food market. 1997: The foods division is created. compromising of real fruit juices and Homemade cooking paste to form the core of this division's product portfolio. 1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel (Pacitaxel). 1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain of France for cheese other dairy products. Dabur becomes only the second company in the world to launch this product.1986: Dabur becomes a public Limited company through reverse merger with Vidogum Limited. 1994: Dabur India Limited comes out with its first public issued at a premium of Rs. The issue is subscribed over 21 times. The scope of this project is 20 . 1996: Dabur launches Real fruit juices. Himachal Pradesh.
1000 crores turnover mark. 1999-2000: Dabur achieves the Rs.1. 1998: The Burman family hands over the reins of the company to a professional. apple active. 21 . Tomato puree. new flavors in Real Juices-grapes. Turnover of FMCG reaches to Rs l048. Vatika. as the Chief Executive Officer.13 crores. 2002: New launches homemade coconut milk (in south). Turnover of pharmaceuticals reaches to Rs 184 crores with a profit of Rs.an anti-dandruff shampoo. which shows a profit of Rs. Mr Ninu Khanna join Dabur. 2003: Dabur achieves Rs.5crores. orange active. 2001-2002: Launched Amla Light. Tang. 72 crores. 232 crores turnover mark with an increase of 6 per cent. guava. homemade pappad.strategic. structural and operational changes to enables efficiencies and improves growth rates. Vatika light.
All Ayurvedic preparation has their ingredients derived from nature. Dabur has converted the healing properties of natural ingredients and the age-old knowledge of Ayurveda into contemporary health care to eliminate health problems of its consumers. It has not only set a sight on increasing turnover and profitability of the company but also on propagating Ayurveda . it i s the knowledge.The Indian System of Medicine. For more than a century nature has been a rich source of knowledge for DABUR. Ayurveda . Whatever be the industry. 22 . Dabur is committed to expand the reach of its age-old knowledge of Ayurveda and Nature through web. Dabur India limited understands its responsibility as a corporate house.Corporate Philosophy Knowledge is the key to growth in today's world.the science of life is based on principles of nature. which provides cutting edge to individual and organisations. Nature has inspired DABUR in all its acts. Nature has not only gives it the ingredients for all its products but also has taught it how to create a harmony withi n and outside the organisation. Through web the aim is to overcome the physical boundaries to take Ayurvedic way of life to global frontiers.
). 23 . Cuttack (Orissa).P). Patna (Bihar). New Delhi Corporate office: Kaushambi.P. Office: Asaf Ali Road. Bangalore (Karnataka). Ahmadabad (Gujarat).).P.P.).). Indore (M. Kathmandu (Nepal). Alwar (Rajasthan).P. Kalyani& Narendrapur (West Bengal). Katni (M.P. Russia. Ghaziabad (U.).) Sales & Marketing: New Delhi OFFICES: Chandigarh (H. New Delhi (Delhi). Jaipur (Rajasthan). Chennai (Tamil Nadu). FACTORY: Baddi (H. U. Kanpur (U.). Ghaziabad (U.K. Ghaziabad (U.P. Egypt. Mumbai (Maharashtra).P.P. Birgunj (Nepal).Locations of Operations Head office: Sahibabad. Kochi (Kerala).) Regd. Guwahati (Assam). Hyderabad (A. Daburgram (Bihar).
Indore (M.) Raipur (M. Chennai (Tamil Nadu). Jaipur (Rajasthan). Calcutta (West Bengal). Chandigarh (HP) Ambala (Punjab). Bangalore (Karnataka).). Patna (Bihar). Ahmadabad (Gujarat). New Delhi (Delhi).Clearing & Forwarding Agent (C&Fa): Jammu. Ghaziabad (U. Lucknow (UP). Ranchi. Cochin (Kerala).).P.P.P. Hyderabad (A. 24 . Dehradun (U.P. Mumbai (Maharashtra).). Bhubaneswar (Orissa). Guwahati (Assam).P. Cuttack (Orissa).).
Other has made its mark beyond India. Docetaxel that were manufactured in India for the first time by Dabur. Hajmola. Anti-migraine therapy and radio opaque dyes. Markets safe and non-toxic herbal veterinary products for poultry. ONCOLOGY: The formidable range includes brands such as Intel.. Legal etc. This division has a major presence in Anti-thrombolytic. Hajmola Candy. some of its products like Chyawanprash. NATURAL GUMS: This division manufactures and process Guar gums. Isolation of pure natural compounds and custom synthetics are focus areas. Launched two years back. Gum Karaya.The Companies Business Activities Comprises of. and angel of contract media and gynaecological. HEALTH CARE PRODUCTS: Markets a range of OTC health care: products based on Ayurveda. well-known brands are Vatika. Pudinhara are market leaders PERSONAL CARE PRODUCTS: It includes hair care. The division produces a range of industrial and grade natural gums to meet the customer specifications. BULK DRUGS AND CHEMICALS: Dabur manufactures synthetic and semisynthetic bulk pharmaceutical substances. bulk natural compounds and intermediaries. Dabur Lal Dant Manjan. Lionitus. no preservatives. it is a leading hair oil brand inrespective categories. The company is a market leader in this category in India and plans to establish itself as a general Oncology player in selective global market. no colour and no flavours added. ethnic pastes and foods. AYURVEDIC SPECIALITIES: There is a range of over 400 Ayurvedic medicines. the range includes Real Juices and cooking pastes under the brand name Home Made. FOODS DIVISION: One of the youngest divisions of the company markets a range of sauces. It has vast range of classical Ayurvedic drugs and priority Ayurvedic medicines developed by own R&D. PHARMACEUTICAL DIVISION: It includes a range of natural ethical products like Livfit. fruit juices with nothing artificial. Dabur Amla as a brand with over 65 per cent market share in their Middle East and Africa. 25 . Real fruit juices gave Indian consumer for the first time. AYURVEDIC VETERINARY: It deals exclusively in animal hea1thcare. tamarind based gums and psyllium husk. oral care and honey.
Dabur Manufacturing Facilities in India 26 .
Dabur has been in the forefront of popularising this alternative way of life. Today there is global awareness of alternative medicine. naturebased and holistic lifestyles and an interest in herbal products. marketing its products in more than 50 countries all over the world. 27 .Dabur World Wide Dabur's mission of popularising a natural lifestyle transcends national boundaries.
Malaysia. Saka (men’s bleach) and Botanica (skin firming & anti-wrinkle cream) introduced in the last few years. also covers 25. Mauritius. Maldives.000 parlours directly. Yemen. In house R&D: innovative products like Oxybleach (premium cream bleach). Markets a range of pharmaceutical products in dermatology and other segments. The company markets bleach. Bangladesh. Exporting to UAE. Oman. Owns the brand ‘Jaquline’ which markets women care products (bleach and hair removing creams) in US and Middle East.About FEM Fem is trusted brand known throughout India since 1982. liquid soaps and hair removing creams under the ‘Fem’ brand. It has a range of fabric softeners and stain removers under the brand ‘Bambi’. Fem Stratum (hair conditioner).000 retail outlets. Myanmar and Nepal. 25. 28 . Sri Lanka. Highly profitable company with gross margins of over 60%. Baddi unit which was set up in 2006 enjoys both excise and IT benefits. Manufacturing facilities in Nasik and Baddi (HP). Distributions reach covering 1.
Acquisition of Controlling Stake in Fem Care Pharma Ltd by Dabur India Ltd (DIL) Dabur India Limited signed an agreement to acquire 72. The transaction values FCPL at an equity value of Rs 282.15% stake from the existing promoters. Acquisition to be funded through internal accruals of Dabur India Ltd. Potential in International markets: FEM & Jaquline brands have presence in GCC/Middle east markets which can be expanded. Supply Chain. Sourcing & Manufacturing FCPL’s Baddi unit synergistic with DIL’s own skin care plans Greater efficiencies possible in trade and distribution Combined Adpro spends can be leveraged to reduce media costs FCPL’s R&D knowledge in skin care to supplement domain knowledge for DIL 29 . Specialty chemicals division and some other investments will be bought over by promoters at book value or market value whichever is higher. Dabur to make an open offer to acquire further 20% of the FCPL’s equity share capital. Cost Synergies Combined business to unlock synergies : Sales & Distribution. Acquisition Rationale Revenue Synergies Brand provides access to DIL into fast expanding skin care market at mass price points Higher reach/penetration for FCPL portfolio through DIL’s distribution network Potential for extending FEM brand into other related skin care categories. FCPL’s parlour outreach to be leveraged for promoting Dabur’s personal care portfolio. Marketing.4 crores.
ABOUT THE PROJECT 30 .
which has a leadership position in the fairness bleach category and a strong market position in hair removal and liquid soap category. S K men’s bleach and Bambi fabric softeners. I had visited some branches of modern trade retails stores and their distribution centre. Dabur has not been able to concentrate much on the distribution and promotion aspect of FEM. The other brands in its portfolio include Oxybleach cream.Fem Care Pharma Ltd. cquisition of Fem Care Pharma is in line with strategy to aggressively expand Dabur’s scale of operations and strengthen its presence in the fast moving consumer goods (FMCG) space. Bleaches Liquid Soaps Hair Removal Cream Since sales and distribution are one of the most important areas of a company. Part 1 of the project First part of the project is to study the gaps in distribution. departmental heads and Dabur’s promoters in these chains about the problems faced related to distribution strategies because of company or retail house. List of Modern Trade Retail Chains where FEM products supplied are: Big Bazaar Big Apple Vishal Mega mart REI 6TEN Surya Healthcare Apollo Pharmacy 31 . Dabur also has the potential to extend the brand into newer and related skin care categories. This transaction would give Dabur an entry into the high-growth skin care market with an established brand name ‘FEM’. I was given the task of identifying loopholes that exist in the Distribution and Promotion strategy of FEM across all national and regional chain modern trade stores in Delhi and NCR. this problem has to be seen from all the angles before coming to any conclusion. Interview was conducted with the store managers. Further. assortment and MBQ levels of FEM product in modern trade stores within the product category naming. To study the problem of MBQ levels and Assortment. But since the acquisition has taken place. FCPL which continued to keep the distribution of FEM products in OFOs and Kirana Shops while Dabur has taken over the distribution of FEM products in Modern Trade.
32 . promotion has become a significant tool being used by the marketers for not just survival but also leading this highly competitive market. The collection of primary data requires considerable time. There are different kinds of promotional schemes used by different companies to market their products. In total 152 people were interviewed who visited the different stores at different locations. In this research. To test which one of them is mostly preferred by the consumers. the Primary data were obtained by actual working in the market and interacting with the buyers. the method available was to get enough information through personal interaction with the people visiting the stores with the aid of a questionnaire. Methodology Adopted For 2nd part of this project. While some companies depend on monetary schemes other use nonmonetary schemes very significantly.Guardian Pharmacy Religare Spencer H&B Store Home Store Part 2 of the project Second part of the project is study of the promotion mix being done by the competitors which will increase the sale of the above mentioned 3 FEM products without causing any disturbance in the various channels of distribution. Questionnaire containing 21 questions was prepared. I conducted a survey to see what kind of scheme makes a consumer inclined towards buying that product. Since promotion not only leads to increase in the sale of the product but also increase brand awareness among the buyers.
4. ii) Industry practical knowledge. People were also asked if these schemes really influence their buying behaviour. 2. etc. 33 . iii) Gives Professional touch. 7. v) Get chance to face different types of customers and tackle with different situation. 5. 6. 8. then what kind of monetary or non-monetary schemes do they prefer. Big Bazaar – Raja Garden Big Bazaar – Vasant Kunj Big Bazaar – Wazirpur Big Bazaar . Scope of the Project A Training Program of 60 days in any organization provides information to all students like. i) Current organisation work-culture. what kind of scheme they prefer monetary or non-monetary. 3.Noida Vishal Mega Mart – Tilak Nagar Religare – Dwarka Big Apple – Rajouri Garden Big Apple – Lajpat Nagar People were asked questions about their preference when it comes to choosing a product under scheme. iv) Better awareness about market competition. rate the current promotional strategy of FEM. Other questions include through what mode of communication they got to know about FEM.Stores Visited for Research 1.
FEM Product Portfolio 34 .
8 gram 55.00 Fem Fairness Creme Bleach Apple & Peach 264 9g / 25g / 50g & parlour pack of 100g / 250g.4 get a fairer and healthier Fem Fairness Creme Bleach Apple skin.Fairness Bleach Fem Fairness Bleach is the undisputed leader in the bleach market in India and has gained the trust and confidence of millions of users over last 2 decade s.00 way 26. It doesn’t just give fairness by oxidizing the facial hair to match with the skin tone but also helps the skin to breathe a new life by removing dead cells & unclogging the pores. Fem Fairness MRP Material Description Size Bleach is a fast and safe & Peach t o gram 35. 35 . Just 15 minutes of Fem Fairness Creme Bleach 15 & Peach 52. It is available in consumer packs of gram 110.00 application provides Apple days of radiant looking skin.
Pearl & blueberry Size MRP 26. The advanced formulation of Perfumed Bleach liberates nascent oxygen in a controlled manner to provide extra fairness that lasts up to 30 days. Pe arl & blueberry Fem Fairness Creme Bleach Milk.8 Gram 63.4 Gram 39.Perfumed Blue Bleach Fem Perfumed Blue Bleach is milder bleach specially formulated for those having a sensitive skin. Material Description Fem Fairness Creme Bleach Milk. The perfumed activator of the Blue Bleach also gives a wonderful aromatic experience to users.00 36 . It is available in consumer packs of 9g / 25g / 50g & parlour pack of 100g.00 52.
healthier radiance that too with many times more Oxygen. It comes with unique pre-bleach cream that forms a protective shield for even the most sensitive skin. It is available in a 25g retail pack as well as 300g parlour pack. Oxybleach provides you a fairer. and gives you a safe and enhanc ed bleaching experience.Oxybleach Oxybleach is the healthiest bleach in the world today.00 37 . Material Description Size MRP Oxy Bleach 25 Gram 60.
a proven ancient Ayurvedic formulation for fairness. Agru. Walaa. This makes it perfectly safe for all skin types. Kosth Kolinjan. Temaalpatra.Herbal Bleach Fem Herbal Bleach Contains 16 precious herbs : Keshar. Manjistha.00 38 . Lodhra. Halad. Chandan. It is available in a 15g retail pack Material Description Size MRP Fem Herbal Bleach 15 Gram 40. Patang. Which make Kumkumadi Thilam. Padmakastha. especially sensitive skin. Fem Herbal Bleach is a blend of nature's best.Natural and Safe. Kamal. Jesthmadh. Raktachandan. Laakh & Daruhalad.
It works with a three-pronged action * Bleaching to remove suntan. and an instant boost of life. lifeless skin a total lift. dead cells and provide extra oxygen to the skin.Saka Oxygen Bleach for Men Fem a company with a reputation as the innovators in the skin care category has launched Saka Oxygen bleach for men. The skin care experts have formulated Saka to gently work wonders in just 15 minutes. Material Description Size MRP Saka Bleach 15 Gram 30. and * Nourishing to unclog pores.00 39 . bacteria. So you can give dull. * Cleansing to remove dirt.
00 .00 40 Gram 35. smooth skin within minutes. Material Description Fem Hair Remover System Rose (Jar) Fem Hair Remover System Blossom (Jar) Fem Hair Remover System Lemon (Jar) Fem Hair Remover System Chandan (Jar) Fem Hair Remover System Rose (Tube) Fem Hair Remover System Blossom (Tube) Fem Hair Remover System Lemon (Tube) Fem Hair Remover System Chandan (Tube) Fem Hair Remover System Rose (Tube) Fem Hair Remover System Blossom (Tube) Fem Hair Remover System Lemon (Tube) Fem Hair Remover System Chandan (Tube) 40 MRP Size 40 Gram 35.00 25 Gram 25.00 40 Gram 35.00 25 Gram 25.00 25 Gram 25. Its unique formulation not only removes hair from the root but also delays the re-growth of unwanted hair.00 40 Gram 35.Hair Removing Cream in Flavours Fem Hair Removing Cream is gentle and painless way to remove unwanted hair from arms and legs. It is available in 40g of Jar pack and in 25g of Tube pack in pleasant fragrances of Lemon.00 40 Gram 35. Chandan. and Blossom.00 25 Gram 25.00 40 Gram 35.00 40 Gram 35.00 40 Gram 35. Rose. It provides silky.
It is available in dispenser pack of 250ml and refill packs of 1 litre and 5 litres. Blossom. Chandan. 41 . It is available in five lingering fragrances of Lemon Dew. Bouquet and Pea ch. One pearly drop of this unique liquid is enough to give you a complete cleansing experience. supple and smooth aft er every use.Liquid Hand Wash Fem Soft Gentle Soap is the only liquid soap made from pure coconut oil that leaves your hands and face soft.
00 200 ML 30.50 250 ML 59.50 1 Litre 149.50 1 Litre 149.50 42 .50 1 Litre 149.50 250 ML 59.50 200 ML 30.50 250 ML 59.00 200 ML 30.Material Description Fem Hand Wash Bouquet Fem Hand Wash Lemon Fem Hand Wash Chandan Fem Hand Wash Peac h Fem Hand Wash Blossom Fem Hand Wash Refill Pouch Blossom Fem Hand Wash Refill Pouch Lemon Fem Hand Wash Refill Pouch Peac h Fem Hand Wash Bouquet Refill Fem Hand Wash Lemon Refill Fem Hand Wash Chandan Refill Fem Hand Wash Peac h Refill Fem Hand Wash Blossom Refill Size MRP 250 ML 59.50 250 ML 59.50 1 Litre 149.00 1 Litre 149.
COMPETITORS OF FEM 43 .
It has unique gas flushing action to cleanse skin pores.00 18 Gram 42. Cleans Skin. Bleach In the bleach category there are 2 major players. 140g & 300g SKU MRP 9 Gram 24.00 44 . Fem Care has a leadership position in the fairness bleach category and a strong market position in hair removal and liquid soap category. It is suitable for all types of skin.00 35 Gram 75.FEM faces competition from various national and international brands for its product range. 35g. Strong antiseptic to prevent infection. Quick & Convenient. 18g. Jolen FEM Jolene It Camouflages facial hair. Available in 9g.
sandal. Plus MRP its special skincare SKU with ingredients.00 respectively SKU MRP 25 Gram 33.00 the skin feeling soft and super smooth. Now whether you have normal.Hair Removal Cream In hair removal categories there are 3 major players are .it will leave 25 Gram 39. Available in 2 sizes: 25g and 40g at Rs 33.00 respectively.00 45 . lavender and lemon. Available in 2 sizes: 25g and 60g at Rs 39. Anne French Anne French hair remover available in four different fragrances available .00 60 Gram 69.00 and 39.00 40 Gram 39. rose.suitable for each skin type.00 and 69. Veet FEM Anne French Veet Range from Veet creams . dry or sensitive skin there is a Veet especially for it.
Refills available in 185ml. Existing players in this category are. 475ml and 900ml SKU MRP 250ml (pump pack) 55 135ml (pump pack) 38 185ml (Refill) 40 900ml (Refill) 164 46 . It was known that many consumers use Dettol Soap for cleaning hands. Available in pump packs of 250ml and 135ml.Hand Wash (Liquid Soap) In the hand wash category there is a lot of competition being built in the last few years. Dettol Liquid Soap gave the consumers a soap in a more modern and convenient format for hand wash. Dettol Lifebuoy FEM Palmolive Santoor Dettol Dettol introduced the Liquid Hand Wash in 1994.
Lifebuoy Positioned on a ‘protection from germs’ platform it carries the tagline of ‘have no fear’ in the Liquid handwash segment too. it is not active on air. Lifebuoy Hand Soaps offer hospital-strength germ protection. While the brand is supported by promotions mainly in the modern trade. SKU MRP 250ml (pump pack) 55 250ml (Pouch Refill) 35 1000ml (Refill) 150 47 . with a unique formulation that generates a rich lather. SKU MRP 200ml (pump pack) 40 180ml (Pouch Refill) 25 900ml (Refill) 125 Palmolive Palmolive launched handwash in October 2003 with a premium pricing and imported stocks.
Santoor s a strong player in the bar soaps market and with a high market-share in the South. along with media support SKU MRP 250ml (pump pack) 55 180ml (Pouch Refill) 27 1000ml (Refill) 150 48 . Santoor launched the Liquid Hand Wash in January 2007.
ORGANISATION STRUCTURE 49 .
Structure in Sales and Marketing 50 .
assortment and MBQ levels of FEM products. 52 .Study promotion/activation mix for three categories done by competition.Identify gaps in distribution. Part 2 .PROJECT ANALYSIS Part 1 .
The display of goods is very important and needs an elaborate know-how. assortment and MBQ levels of FEM products in modern trade. Bleach. Modern Trade Stores where FEM products supplied are: Big Bazaar Big Apple Vishal Mega mart REI 6TEN Surya Healthcare Apollo Pharmacy Guardian Pharmacy Religare Spencer H&B Store Home Store 53 . We will only be concentrating on the skin care category of FEM i.First Part In the first part we will be analysing various gaps that exist in the distribution. A few articles will be offered at rock bottom prices with much publicity in order to attract as many customers as possible.e. The more expensive goods will be ready at hand whereas you will have to bend to reach goods with less add value for the store. Liquid Soaps and Hair Removal Cream. now the customer can touch the articles. Modern Trade Modern trade as opposed to traditional retail shops refers to a range of sale methods based on marketing techniques: for instance in self-service shops you have no more sales attendants behind the counter.
54 . this work is generally done by stockiest salesman through ready stock or by taking orders first and then placing the order. From here the goods finally reaches to Customers. here first the products are manufactured and from Manufacturing plants the packed goods are supplied to Clearing And Forwarding Agents(C&FA) and from here the goods are then further supplied to number of Stockiest or Distributors.Distribution Network at Dabur CONSU MERS The above diagram it shows channel of distribution of Dabur. from here goods reaches to large number of Retailers and it is the duty of Stockiest to take orders from retailers and then supply the goods to them. Customer purchases the product from retailers.
Constant updates on the procurement of materials and transport details. Meerut. There will be a facility of jar. Post.This was the basic Channel of Distribution used by Dabur. here all goods which Dabur foods hare kept here. 55 . so company has nothing to do in building the relationship with them. now I will throw light on each channel of distribution of Dabur. CLEARING AND FORWARDING AGENTA (C&FA) From manufacturing plant the stock is transported or supplied to clearing and forwarding agents. Delhi NCR there is one C&FA whish is situated in Mohan Nagar. – Solan. This is in a tax-free zone under Central Government Scheme. MANUFACTURING PLANT: The manufacturing facility is at Manakpur. Four manufacturing set ups with the capacity of 3600 kg per shift can be undertaken. Dist. Himachal Pradesh. Clearing and Forwarding Agents is a third party and Dabur gives contract to them. about 20 kms from Kalka (Haryana) Railway Station.Nalagarh. Production details and ingredient content information from the different personnel and coordinating this activity. PROCUREMENT & TRANSPORT: Getting the raw material and packaging material requirement from the production unit in charge. It is about 50 kms from Chandigarh on State Highway. Here C&FA keep or stock the goods with them. Manufacturing facility complying to international GMP standards are under set up to manufacture Pharmaceutical products and Cosmetic Creams & Lotions. For Ghaziabad. There will also be a facility for pouch filling and pillow packing of tubes. They charge Dabur for stocking the good and even Dabur don’t mind doing so as it is a measure of cost cutting as well as there is no need for go downs and maintenance. aluminium tube and lami tubes filling with automatic labelling and online packing of the products.
Their work is to place the products in the market and take order from retailers and then supply goods to them. C&FA supplies the goods to them as per their order. and in Ghaziabad 1 RETAILERS Retailers are backbone of the company as they are the one who can take the product on new heights or can bring it down to toes. putting banners. In Noida Dabur has 1 stockist. and arranging it in more noticeable manner.000 B 5. means sales man has to daily cover the route as mention in the beat. they are known as stockiest sales man.STOCKIEST OR DISTRIBUTORS Stockiest store the products in their godowns. Merchandising. Stockiest supplies goods to retailers and tries Persuading retailers to give the brand special displays (using merchandising tools) to get affective brand presence. pasting posters.000-10. There is a beat which is a schedule route of sales man. TYPES OF RETAILS OUTLETS Class Average Monthly Business A Above 10. making products visible. Sales man either takes ready stock with them or they first take orders and then supply goods later on.000 C Upto 5. 56 . and seeing that goods are properly placed in the retail outlets is also the duty of stockiest sales man.000 Margin of retailers is always higher than stockiest. Stockiest has some sales men working under him. Retailers are the one who have direct contact with the customers. Classification of outlets in different type of markets is different according to their sales volume. Companies’ sales officer keeps a check on the stockiest and monthly report is also prepared which is further analysed by ASM & ZSM.
Dabur’s distributors maintain at least 15 days of inventory with them.Distribution Process or Supply Chain of Dabur in Modern Trade Process at Distributor Level Clearing and Forwarding Agent sends required order to the stockiest or distributor. Sales Forecast for FEM is done on the basis of last 3 months sales. Data from various modern trade chains is collected to calculate the sale of FEM products and accordingly considering the demand and sales figure. Manufacturing Unit produces goods according to the Sales Forecast done. sales forecast for the coming 3 months is made and the manufacturing unit is asked to produce the required quantity. Distributor receiv es goods as per the order placed and enters the same in his stock book. 57 . CFAs keep receiving goods from the Manufacturing Unit as per the production of goods.
After going the through the stock available in the store. Dabur representative places order with the Department Head in case order is placed through Centre Distribution Centre and through store manager or the department manager when the order is placed from the Store itself. Payment as regards to the Purchase order is done on credit basis. Dabur Merchandiser further sends it to the Distributor.Process at Store Level for Order regeneration Counting of Current Stock available at the store Raising a purchase order to the vendor by the category (In head office and zonal office) Purchase order generated is sent to the distributor or the Dabur Merchandiser. Purchase Order generated is send to the Dabur Distributor. Counting of the stock present in the store in done by the Dabur Promoter who are present in the store or by the Dabur Merchandiser. MBQ level are generally decided by the Centre Distribution Centre or the Store Manager. 58 . Replenishment takes place within 3 days from the dispatch of the purchase order.
copy and return to the transporter Transfer of the material to the store ware house Segregation of the material (M. . stamp the documents. wise and category wise) Send the stock to the floor as per the requirement Racking of the material by giving location to the rack as well as to the box (for the maintenance of the W.O.N.S. by putting information on SAP Compare the material with the documents. 59 Receiving of the material at the store against S. no.O.C. counting of cartoons. generation of I. sheet) Out warding of the material from central ware house to the store.D.M. after receiving S.P. Weighing.) Indore Dewas naka Document check by the security at the gate and in ward register is maintained by following all the rules of S.Deliv ery of the required (negotiated) stock from the distributor’s end to the store or ware house by the help of transporter (at company’s expense) Receiving of the material at the store with all the required documents Receiving of the material at the central ware house (C.C.O. write information with signature of the security and then unload the truck Stamp on P. from the store.R.D.T.T.
are they satisfied with the Dabur as a company. how is the distribution system of FEM. how is the fill rate of FEM. I visited 70 Modern Trade stores and their Distribution Center (DC) of different Chains in Delhi and NCR Region. 60 . how much time it takes for replenishment. There I just orally asked them few questions related to the SKUs that are being kept by them. are they satisfied with the margin provided by the company.DATA PRESENTATION AND DATA ANALYSIS To study the gaps that are prevalent in the Distribution system of Dabur for FEM products. what is the MBQ Levels of different FEM product. what are the deciding factor behind setting up of MBQ level. etc.
45 of them feels that distribution system of Dabur is satisfactory while 25 of them are not satisfied with it. credit issues with the company etc. Satisfaction Yes 45 No 25 45 25 10 15 20 0 25 5 30 35 40 45 Yes Series1 No Interpretation:- It is quite evident from the chart that out of 70 outlets and distribution centres visited by me.Satisfaction as regards to Distribution of FEM products. . But at the same time Positive feedback 61 about Dabur was that since Dabur has taken over FEM. fill rate being low. Some of the reasons given were margins offered by the company. there has been a drastic improvement in the distribution of FEM products.
8 g 63 50 GM 629 Oxy Bleach 60 25 GM 1. Item Name MRP Size UOM Quantity Sold in May and June Fem Fairness Creme Bleach Apple & Peach 26.4 g 32 25 GM 508 Fem Fairness Creme Bleach Apple & Peach 52.4 g 39 25 GM 688 Fem Fairness Creme Bleach Milk.5 1 Ltr 74 Fem Hand Wash Blossom Refill 149.5 1 Ltr 24 Fem Hand Wash Lemon Refill 149.5 250 ML 66 Fem Hand Wash Blossom 59.Various fast moving and slow moving SKU’s of FEM.5 1 Ltr 34 Fem Hand Wash Lemon Refill 555 5 Ltr 4 Fem Hand Wash Peach Refill 555 5 Ltr 1 Fem Hand Wash Blossom Refill 555 5 Ltr 3 Quantity sold is till 15th of June. Pearl & blueberry 52. 8 g 51 50 GM 777 Fem Fairness Creme Bleach Milk.5 250 ML 152 Fem Hand Wash Lemon 59. Source – Vijman India 62 .5 1 Ltr 42 Fem Hand Wash Chandan Refill 149.032 Fem Hair Remover System Rose (Tube) 25 25 GM 144 Fem Hair Remover System Lemon (Tube) 25 25 GM 110 Fem Hair Remover System Blossom (Tube) 25 25 GM 4 Fem Hair Remover System Blossom (Tube) 29 25 GM 44 Fem Hair Remover System Chandan (Tube) 29 25 GM 4 Fem Hair Remover System Chandan (Jar) 35 40 GM 112 Fem Hair Remover System Chandan (Jar) 37 40 GM 92 Fem Hair Remover System Rose (Jar) 35 40 GM 78 Fem Hair Remover System Lemon (Jar) 35 40 GM 108 Fem Hair Remover System Rose (Tube) 35 40 GM 276 Fem Hair Remover System Rose (Tube) 37 40 GM 187 Fem Hair Remover System Blossom (Tube) 35 40 GM 87 Fem Hair Remover System Blossom (Tube) 37 40 GM 199 Fem Hair Remover System Blossom (Tube) 37 40 GM 189 Fem Hair Remover System Lemon (Tube) 35 40 GM 113 Fem Hair Remover System Lemon (Tube) 37 40 GM 124 Fem Hair Remover System Chandan (Tube) 35 40 GM 75 Fem Hair Remover System Chandan (Tube) 37 40 GM 120 Fem Hand Wash Bouquet 59.5 250 ML 238 Fem Hand W ash Refill Pouch Blossom 30 200 ML 24 Fem Hand W ash Refill Pouch Lemon 30 200 ML 102 Fem Hand Wash Refill Pouch Peach 30 200 ML 23 Fem Hand Wash Bouquet Refill 149. Pearl & blueberry 26.159 Saka Bleach 30 15 GM 660 Fem Herbal Bleach 40 15 GM 1.5 1 Ltr 30 Fem Hand Wash Peach Refill 149.
When Interpretation:asked various retailers that why they are not keeping all the SKUs. whereas in case of Hand Wash and Hair Removal it’s the opposite. stock for them is kept on the shelf for more than 2530 days without any 63 sale in small modern trade stores. 10 15 20 0 25 5 30 35 Fast Moving Slow Moving .Total SKU 39 Fast Moving 7 Slow Moving 32 32 7 As we see in the aboveSeries1 of FEM Products. ccording some of the retailers Bleach’s demand is so high that the supply always fall short of it. most of the Chains keep only around 20-25 SKUs. there is a total of 39 list SKUs but only 7 of them are fast moving products rest of the SKUs are slow moving. That is why out of 39 SKUs registered with almost all the Modern Trade stores. Hair Removal Cream of 40 gram Tubes in all variants and Hand Wash 250ml sprays. Majorly bleach of all SKUs. All the bleaches of FEM are highly fast moving while Hand Wash and Hair Removal are not at all sold in comparison to Bleach. the reason given was only fast moving products are preferred because the slow moving product does not have high sales and they only occupy shelf space in the store.
92907 In this Fill Rate will be calculated value wise. 272/10 Net Bill Amount – Rs. Other than this of the 10 SKUs of FEM that are placed in the order only 7 are supplied. I have taken few examples of Purchase Order Orders 1) First Purchase(See Annexure and Supply against Date 03. Party 2 – Vijman India (Distributor of Dabur India Limited) Now to calculate fill rate. Invoice No.05.2010 them. And of those 7 as well some orders are not fully supplied.Express Retail Service (Modern trade chain known as Big Apple) Fill Rate – Sales order processing measurement that quantifies the ability to fill orders.05. For this I have collected POs of Big Apple and PO No. Party 1 . Goods are replenished within 3 days from the date of placing of order. 64 . This will not only tell us the Fill Supply Bill (See Annexure 6) Rate of the company but also time gap Date 06. For First PO Fill Rate is 55%. 169925 what has been the supply against it for the month of May. There are various ways of measuring fill rate. Order fill compares the number of orders shipped complete to the total number of orders shipped.2010 between order placed and goods replenished. Line fill compares the number of line items shipped complete to the total number of lines ordered ( 95 line items shipped complete out of 100 lines ordered would result in a 95% line fill rate).Fill Rate of FEM products ordered. A0000036 Case 1 Net Amount – Rs.
the order was sent on 10. A0000061 Net Amount – Rs. 3 of them were supplied. Of the 7 FEM SKUs that were ordered only 5 were supplied.2010 Invoice No.Case 2 Second Purchase Order (See Annexure 2) Date 10. 65 .2010 PO No. Out of 4 FEM SKUs that were ordered in the PO.2010.05. 213547 Supply Bill (See Annexure 7) For Second Purchase order Fill Rate is 79% (calculated value wise).2010 Invoice No. 330/10 Net Bill Amount – Rs. the goods were supplied within 2 days from the placing of order. A0000062 Net Amount – Rs.05. 169416 Supply Bill (See Annexure 8) Date 22. Other than the fill rate issue. 100780 Date 20.05.05. 83782 For Third order Fill Rate is 83% (calculated value wise). Third Purchase Order (See Annexure 3) Date 20. there was a gap of 10 days between order and supply. 426/10 Net Bill Amount – Rs.05. Replenishment was very good for this order.2010 PO No.2010 whereas the goods against them have been Case 3 supplied on 20.05.
In the second PO it was observed that with the fill rate. Low Fill Rate line wise increasing with high variation from 4. There was almost nothing wrong in the fourth PO.Rs.05. 2 of the SKUs are there in which the whole quantity demanded is not supplied. this 66 means that fill rate line wise was 80% in this case. fill rate was too low.2010 Invoice No. 490/10 Net Bill Amount – Rs. Perfect order and supply. IN the third PO fill rate and order supply date was fine but 0 quantity of one of the SKUs was supplied.05.Case 4 Fourth Purchase Order (See Annexure 4) Date 27. Rate value wiseReplenishment PO. All Net Amount order70131 the SKUs which were ordered have bee n supplied as well. Too much time taken in 3. Fill Rate is 91% (calculated value wise).2010 PO No. . even replenishment of order took too long. it kept While in the 1st 2. In one of them 60 pieces and in other 90 pieces were ordered but 36 and 66 respectively have been supplied against them. 76936 Supply Bill (See Annexure 9) Date 30. A0000077 For fourth . We had 4 cases with 4 different situations. We discussed 4 purchase order and supply against them of the Cases: same company in the month Low Fill of1. May. it can be called as a perfect purchase order and supply against it. 55% to 79% to 91%.
2010 wasNo. 4504419715 limit. Because unavailability of products can result in not only losing the sale at that point of time. but the customer may also switch to some other brand thereby we as company loose a loyal customer as well.05. Replenishment date Date 02. Since first 10 days of the month are very crucial from the sale point of view. .2010 Invoice No. Of the 13 SKUs of FEM which were Purchase Order (See Annexure 5) ordered only 5 SKUs were supplied. Party 1 – Future Value Retail (Modern trade chain known as Big Apple) Party 2 – Vijman India (Distributor of Dabur India Limited) In this case Fill Rate is 39% calculated value wise. I noticed that there large amount of people who come in the first week of the month as compared to rest of the weeks. When confirming with the authorities I got to know that footfall is 30-35% more in first week of the month as compared to rest of the weeks. So while I was there in the Big Bazaar store for Interview.Date 05. This is due to the reason that most of the service class people get their salaries in first 10 days of the month and that is the time when the purchasing power of an individual is the most.2010 which is being 1 wee k of the month. there should not be any miss in the SKUs supplied in these particular 67 days. 7255 One of the other things I observed in this Purchase Order Supply Bill (See Annexure 10) is that purchase order was generated on 02. 2836 Another case of Fill Rate. PO within the time Net Bill Amount – Rs.05.05. B0000273 Net Amount – Rs.
The retailer can use past sale data of last month or last 3 month’s sale or in some cases where product is seasonal or has a demand in particular season. MBQ (minimum base quantity) methodology has been used for efficiently handling the inventory based on past sales track.MBQ Levels To keep a steady stock watch for the reorder of basic goods is time consuming and vital to profits. Different stores have different criteria to compute what the MBQ level of an item should be. While interviewing the outlets and distribution centres of retail chain. a lot of inputs came as regards to the factors that they consider while deciding the MBQ level of an item. This profit-enhancing feature uses sales history to calculate scientifically what and when to reorder. Stock in Hand Footfall Season 7 21 4 68 . the same MBQ level has been put deciding factor to see on graph Past Month Sale 27 what are the factors that are most considered by retails Past 3 Months Sale 11 chains. MBQ levels are decided season wise as well. when asked about how they are deciding the MBQ level. with less paperwork and less guesswork.
Past Month Sale Past 3 Months Sale Stock in Hand Footfall Season
As we see in the chart that most of the outlets or modern trade chain prefer deciding their MBQ level on the basis of past month’s sale, they have the highest preference with 38%. Interpretation:Next is footfall in a particular outlet, now this depends on various sub factors like what kind of people are actually in and around that area where the outlet is located, the type of income level of people in that area and various other demographics. Footfall got 30% preference while deciding the MBQ level of a particular product. Past 3 months sale of a product got 16% while 10% are in favour stock in hand in that particular store, this factor is considered most by those chains whose inventory management is centrally controlled. And the last with 6% preference is Season. According to me this got the least percentage 69 because of a limitation that Season factor is considered most in seasonal products and since this question was asked keeping in mind the FEM products not many people preferred this option.
I had frequent visits in most of the Big Bazaar stores in the Delhi region in the month of May in different weeks. There I noticed that the MBQ level are decided on the basis of past month sale, but the MBQs of all almost all the bleach products were same irrespective of their demand. During 1st week of May, the demand for Oxy Bleach and Herbal Bleach was very high in all the stores, MBQ level ordered for both the products was between 24-36 pieces in almost all the stores. But on visiting Big Bazaar Vasant Kunj store I noticed that of 36 pieces, 31 pieces of Oxy Bleach were sold on the very first day of the replenishment of stock, now for rest of the week there were only 5 pieces of Oxy Bleach were left, which ultimately resulted in no stock for next 5 days. When I visited the store after 15 days, the same scenario was experienced again. When I asked the Dabur promoter in the store, why the same MBQ was given for oxy bleach, the lady there said that she informed the concerned authorities about the same but no action has been taken. In another experience there was no supply of Oxy Bleach for one week in all the Big Bazaar stores because of blockage of Oxy Bleach Code which resulted in unavailability of Oxy Bleach in all the stores at the time when its demands is reaching its heights.
Case Experience Level
Gaps that were noticed in the distribution, assortment and MBQ level are;
First and the foremost major gap is the Fill Rate, being on an average less than 65% calculated value wise. Fill rate is low because of unavailability of products in required quantity from the company and distributor. Fill rate is low not just value wise, but it’s the same SKU wise or line wise or case wise. Approximately fill rate should be around 85%, keeping in mind the takeover of FEM by Dabur and the type of facilities that can be offered by the company to its this segment.
in the store because of the fact that only 20% of them are fast moving, rest of them have very slow movement which leads to occupied shelf space without any sale. Of all SKUs, retailers in the store, they are not kept in all bleach category While those categories which are put prefer to keep only the variants which leads to unawareness among the consumers about other variants. In of FEM because it has a very another case, there is a SKU of FEM Fairness Bleach coming in the parlour pack of 100 Gram, sale as there in all the Big Bazaar Hair Removal Cream and high its demand is compared to stores but the company has stopped making 100 gram packs. Hand Wash.
Replenishment of FEM stock takes place with rest of the Dabur order, i.e. the same
Distributors and retailers are not keen in keeping all the registered SKUs with them
transport van is used for Dabur stock and FEM stock and if there is unavailability of FEM products, it will have to wait for the Dabur Purchase Order to be generated and with that supply comes the FEM supply. Other than this it has been observed that in some cases it took way too long for supply to take place which resulted in loss of sale and may be customer as well, since these days with so many of competitive products 71 in the market customer generally don’t wait for the product to arrive and therefore fulfil his need with another brand offering same services. Unavailability ultimately resulting in loss of loyal customer.
the order. Another of the reason why Modern Trade chains avoid taking orders of all MBQs and in large quantities because it has been observed that there is a lot of loss of money and stock on account of theft and pilferage in these stores because of the modern structure of self-pick of the product whichever consumer wants. the chains are not very particular about Dabur and FEM products and don’t give much lead totosmall human errors while noting down can also importance their sale. While the issue was still not resolved. 72 . in which the footfall on an average is around 2400 on weekdays and around 3000 on weekends in first 10 days of the month which is 30% more than the footfall for rest of the month still the same MBQ level is followed without considering the above factor of footfall. There are only 3-4 modern trade chain which send their orders through mail.Minimum Base Quantity is set up without any standard procedure. Like in case of Big Bazaar discussed earlier. because of difficult for the sales person and low margin. And because of low MBQs supply falls short of demand leading to loss of sale. There were credit issues with one of the Chains which led to stoppage of supply of Purchase orders are generated on the visit of Dabur representative who comes and products to that particular chain. write the PO on a piece of paper and then take it back to the distributor. while their expectation are around 25%. This makes it Modern Trade chains are not satisfied with the piece of paper. Moreover these chains concentrate more on the outlets than their warehouses which at times lead to spoilage of products stored in these warehouses. both the parties already had a loss because of this issue. Moreover the same quantity is followed irrespective of the demand of that particular. rest is done through writing on the Margin been given to them. Relationship was spoiled between the company and the chain. they get somewhere between 15-20%.
the company. This led company. company Lack of awareness among distributors and retailers about the SKUs being made by 73 . In a conversation with Vijay Aggarwal who is the owner of Vijman India. sale representative tried to push the product to the retails chain becauseinterviewing one of the while they themselves were working on target based sales. he realistic goals but the stress in on an improvement over past regarding the schemes from the performance. This retailer there has been constant to overburdening the means with the stock and releasing the communication pressure their own gap between the shoulders. and the distributors and retailers. These are always said there was no communication retailers. he said there was no communication from the company regarding the same. Similarly In some cases. he told me that he himself was not aware of the Hand Wash SKU coming in 5 litre pack and when asked the reason behind it.
each marketing tool is designed to deliver a customer benefit. its price and place of availability. This term includes advertisement. lso the sellers’ four Ps correspond to the customers’ four Cs.Second Part In the second part we will be analysing various promotion methods that are prevalent in the skin care segment and which influence the buying behaviour of consumers. And on that basis we will be recommending promotional strategy which can result in incremental sales without causing any channel conflict. 74 . satisfying characteristics of the product. Sale Promotion The well-known four Ps of marketing represent the sellers’ view of the marketing tools available for influencing buyers. personal selling sales promotion and other selling tools which are increasing the sales volume. Four Ps Four Cs Product Customer solutions Price Customer cost Place Convenience Promotion Communication Promotion Promotion is tool with which public will be informed about the availability of a particular product or service and the uses of such product. promotion will make the prospective buyers to know about the want. We will also discuss promotional schemes which are preferred by the consumers and which lead to the consumers buying that particular product. Production decides the increase in demand for a product. From a buyer’s point of view.
promotion is to make the demand inelastic. sharing of meaning. The communication must have identical meaning for both sender and receiver. To sum up. advertising. feedback means a response. f) To increase the sales by imparting special training to salesmen and by window display. Such communications are conveyed with the help of advertisement. Sales promotion refers to those marketing activities other than personal selling. about the products and services by buyers and sellers. c) To increase the frequency of purchase by each buyer. personal selling etc. Communication and promotion Marketing communication involves. In the case of effective communication feedback will be always present. So promotion must stimulate the consumers to buy more. exhibitions. premium etc. such as displays. Promotion includes sales promotion. 75 . while there is change in the price. b) To influence the public with the help of new uses of the product. then that will be called Break down at the message stage. A communication will be treated as effective only when it is properly responded by the buyer. Sales promotion is only a part of promotion. distributors and dealers to sell a certain brand and to make consumers more eager to buy that brand. shows and expositions. advertisement and publicity. information. but sales promotion helps only to sales activity. Sales promotion may be done with the help of tools like displays. Need for Product Promotion a) To introduce a new product in the market. free sample coupons. Promotion helps to make all other marketing activities more effective and efficient. a reaction over the message sent back by a customer to the sender. In the market communication. This includes sales activities which supplement both personal selling and advertising. which stimulate consumer purchasing and dealer effectiveness. demonstrations and various non-recurrent selling efforts not in the ordinary routine.Sales Promotion Sales promotion is different promotion. concepts. e) To withstand in the competitive field. d) To encourage dealers to stock more goods. If the communication does not properly reach the receiver or the message received is not the same as the message sent. Sales promotion acts as a link between advertisement and persona l selling. salesmanship and sales promotion. Its purpose is to increase the desire of salesman.
• Provides opportunities to manufacturers to reach out market segments with differing price sensitivity • dds excitement to the in-store merchandizing of consumer goods • Motivates the trade to keep more and push more of those brands that are on promotion Types of sales promotion Sales promotion can be grouped into the following: Consumer sales promotions (Pull Strategy) . During the periods of depression it is essential to maintain at least some minimum market. Promotion is very essential to communicate the use of the product and the nature of the product to consumers and middlemen 3. 2. With the help of promotion producer must create product differentiation in the minds of consumers. The present day market is very competitive due to the large number of rivals and substitutes. Therefore it is very essential to use promotion. • Smoothens out the manufacturing capacities of firms in such a way that the peaks and the valleys are minimized.Consumer sales promotion methods encourage or stimulate consumers to patronize specific retail stores or try particular products.Effects of Promotion 1. 4. 76 . In such cases personal selling alone cannot be used and so all the steps for promotion are to be followed. Nowadays most of the consumers market their products in wider area and the consumers are also very large in number.Trade sales promotion methods stimulate wholesalers and retailers to carry a producer’s products and to market these products more aggressively. Benefits offered by sales promotions • It helps in securing trial and defending shelf space against competition. Trade sales promotions (Push strategy) .
Hair Removal Cream Veet – Consumer Promotion scheme of 20% extra on 60 gram pack. Few days back Kareena Kapoor. consumer’s leaflets. Anne French – Consumer promotion scheme through small sachets of cleansing cream with 40 gram pack. Lifebuoy – Consumer promotion through 180 ml pouch refill on purchase of 200 ml spray bottle. Dettol also emphasises on its brand building through TV Advertisement. Liquid Hand Wash Dettol – Consumer promotion scheme of 250 ml pouch on purchase of 250 ml spray. 15 off on 1 litre refill. Advertisements are seen on TV channels and Magazines. In another scheme Rs. famous Bollywood star is announced as the brand ambassador of Anne French. Again a lot of promotion done through TV advertisement and Magazines. Magazines and other medium on its Brand building aspect. Launched Katrina Kaif as their brand ambassador. Other below the line mode of communication used is Wobblers. 77 .Sale Promotion done by competition in all 3 categories. Bleach Jolen – Having no consumer promotion scheme but works a lot through TV Advertisement. trade offers etc.
actual may vary. Sample Size: 152 Please visited for Survey are: Big Bazaar – Raja Garden Big Bazaar – Vasant Kunj Big Bazaar – Wazirpur Big Bazaar . Survey was done in various modern trade stores. Questionnaire with 21 questions was prepared. hence not willing to answer the questions.Noida Vishal Mega Mart – Tilak Nagar Religare – Dwarka Big Apple – Rajouri Garden Big Apple – Lajpat Nagar Limitations of the Survey During the project we have to trust the dealers and the customers and their perception. People interviewed were those who visited the store for shopping purpose. we used the questionnaire method.DATA PRESENTATION AND DATA ANALYSIS For the purpose of deciding on the method of Promotion to be adopted. 78 . Consumers in hurry. The duration of time for the study was limited & hence a comprehensive & elaborate study could not be undertaken. Sample size is small. hence not accurate.. what is the preference of customer when it comes to choosing the schemes. awareness about FEM etc.
79 . The above data shows that men above 35+ are still the purchasers of the family whereas female of 25-35 category are slowly becoming the next decision maker of the family. As compared to that in the men population highest number is taken by the men of age group 35+.In total 152 males and females were interviewed for this survey. Age Group Male Female 0-18 2 5 18-25 7 21 25-35 19 39 35 + 28 31 Total 56 96 100 96 56 39 28 21 19 31 10 20 0 30 40 50 60 70 80 90 5 0-18 18-25 25-35 35 + Total 2 7 Male Female Interpretation:Of the total of 152. And of them highest are in the age group of 25-35. 96 were women and 56 were men. This shows that the major part of the sample visiting the stores is female.
80 . Student and Housewife are of almost the same percentage in this sample of population. Occupation Student 26 Self Employed 39 Service 57 House wife 27 Others 3 2% 17% Student Self Employed Service 26% 37% House wife Others 18% Interpretation:37% of the population interviewed was from service class.Occupation of the people interviewed. this shows that a lot of people from the service class prefer to buy their daily household stuff from the modern trade store. Next in the line comes the Self Employed with 26%.
This shows that the brand awareness of FEM is pretty good. In this segment FEM is still the market leader competing with only known brand Jolen. 89% of the population sample was aware of the FEM. A lot of credit of its brand awareness among the skin care segment goes to its Bleach Segment.Awareness about FEM Awareness Yes 136 No 16 136 100 120 140 16 20 40 60 0 80 Yes No Interpretation:Out of total of 152. 81 . People are familiar with the brand.
16 people did not answer this question because they were unaware of the product. Being the most widely used method of advertisement. this method has become the most influential method of advertising as well. 82 . 21% of the people also got aware through direct visit in the store and noticing the product there.Medium through which people got to know about FEM Medium of Awareness TV Advertisement 68 Newspaper 7 Internet 5 Friends and Relatives 24 Store Visit 29 Other 3 2% 21% TV Advertisment Newspaper 50% Internet Friends and Relatives 18% Store Visit Other 4% 5% Interpretation:Most of the awareness is spread through the medium of TV Advertisement. Word of Mouth holds 3rd position with 18% as done generally through friends and relatives. Preity Zinta has been the brand ambassador for FEM. Recently a couple to TV advertisement were also launched with Preity Zinta endorsing FEM in them.
of Users of FEM out of the Sample Population Users Male Female Total Yes 16 82 98 No 40 14 54 Total 56 96 152 98 100 82 54 40 16 14 10 20 0 30 40 50 60 70 80 90 Male Female Total Yes No Interpretation:Of the total sample population of 152. 83 . 16 Males saying yes could be because of the growing popularity of FEM’s Men Bleach S K or usage of Liquid Hand Wash. This shows that the major user population of FEM are Females. it was observed that out of the count of 98 people who have used FEM’s product. When a further analysis was done. The reason could be since FEM has skin care products and Indian Male is still not very open to using products like Hair Removal and Bleach. 82 were females and the rest 16 were males. people who have used FEM is 98 in number and people who have never used FEM is 54.No.
84 . With bleach FEM has already established itself as the market leader.Products Used Products Used Hand Wash 37 Bleach 36 Hair Removal Cream 25 25% 38% Hand Wash Bleach Hair Removal Cream 37% Interpretation:If we see in the figure. major usage is of Hand Wash and Bleach with 38% and 37% respectively. Hair Removal is lacking behind because the market for it is still in its growing stage and FEM’s competitor is VEET which has established itself as a well-known Hair Removal brand in the market. This could be because Hand Wash market is growing Day by Day and FEM’s Hand Wash are considered best when it comes to quality of the Liquid Soap.
28 people are not sure and 24 people did not answer this question because of some or the other reason. 85 . there are 34 people who have experiences Unavailability of FEM products in stores.Unavailability of FEM in Stores Availability Yes 34 No 66 May Be 28 70 60 50 40 30 20 10 0 Yes No 34 66 28 May Be Interpretation:Of the total of 128. Whereas 66 people never experienced unavailability of FEM.
86 . When interviewed these people regarding why pricing is not satisfactory one of the common replies came up was quality of FEM products does not match its pricing. may be because they are ambiguous about the pricing of FEM products.Pricing of FEM Products Pricing Yes 108 No 20 120 100 80 60 40 20 0 Yes 108 20 No Interpretation:108 people are satisfied with the pricing of FEM whereas 20 people say that pricing needs to be improved. whereas with FEM there is hardly any scheme. Again 24 people did not answer this question. Plus similar products that come in the other brands always have some schemes with them.
Still not a large amount of money has been spent on its product promotion and that is the reason why 57% of the people who took this survey are unaware of the promotion that has been done by the company. 87 . Dabur has been able to sign up with Preity Zinta as their brand ambassador for FEM products. Only 25% of the sample population is aware of the promotion that has been done by FEM and 18% are not sure about it.Awareness about various schemes offered by FEM Awareness about Promotion Yes 38 No 86 May Be 28 18% 25% Yes No May Be 57% Interpretation:FEM has never been hard promoter of its products but after Dabur has taken over FEM.
gain since FEM has never spent large amount of money on its brand and product promotion. 88 . 54% says that the overall promotion strategy of FEM is average. While 3% says it’s excellent and 6% marked it as poor.FEM's overall sale promotion strategy Overall Promotion strategy Poor Below Average Average Good Excellent 10 26 82 30 4 3% 6% 20% 17% Poor Below Average Average Good Excellent 54% Interpretation:Of the total population who took this survey. not many people are actually thoroughly impressed with the promotion of FEM and this is why it got an average rating.
There is no current scheme on it. Some 4-5 years back was the last advertisement of FEM Hand Wash was shown on TV.Promotion done by FEM for each of the 3 category of products. This is the reason why most people think that FEM Hand Wash category promotion is average or below average. Hand Wash For Hand Wash Poor 24 Below Average 44 Average 54 Good 28 Excellent 2 1% 16% 18% 29% 36% Poor Below Average Average Good Excellent Interpretation:FEM being not the market leader in Liquid Hand Wash segment is expected to concentrate on the promotional aspects because its competitors are very highly reliable on various promotional methods. even that advertisement was not very impressive. 89 .
In fact. Other than this FEM being the market leader does not have to do much to increase its sale in this category.Bleach For Bleach Poor 14 Below Average 14 Average 56 Good 58 Excellent 10 7% 9% 9% 38% Poor Below Average Average Good Excellent 37% Interpretation:In the bleach category. a lot of people are impressed with the promotion being done by FEM that is why they rate the promotion of bleach above average. 90 . Dabur FEM has signed Preity Zinta as their brand ambassador for the Bleach category. There is another advertisement being shown on TV regarding SAKA bleach as well.
its competitors are highly dependent on commercial methods of promotion.Hair Removal Cream For Hair Removal Cream Poor 14 Below Average 18 Average 58 Good 54 Excellent 8 5% 9% 12% 36% Poor Below Average Average Good Excellent 38% Interpretation:In the Hair Removal category. FEM has run a couple of Consumer Promotion offers in which cleansing cream was given with the tubes. Other than these there has not been much promotion for Hair Removal category. However. 38% feel that the promotion is Average while 36% feel it is above average or good. 91 .
92 . which is 23% of the total population who has used FEM is still very low.Percentage of people who have bought FEM under promotion FEM bought under promotional scheme Yes 22 No 130 140 120 100 80 60 40 20 0 Yes No 22 130 Interpretation:Out of total of 152. This shows that the FEM does not provide schemes to its customers on regular basis. Even when they do it is not communicated to its customers properly which result in low purchasing even when products sold with schemes. if we take 96 people who have used FEM some time or other and of those only 96 people only 22 people have purchased FEM under the promotional scheme.
But since more than 50% are of the sample population thinks that sale promotion is important. their buying of a particular brand will be the same irrespective of the promotional schemes with them. 93 . it becomes important for FEM to concentrate individually on each of its product categories and provide schemes with each one of them. 51% believe that Yes sale promotion does affect their buying behaviour while 33% are not sure about and 16% believe it does not really matter if the product is under promotion or not.Sale Promotion influencing buying behaviour Sale Promotion Influence Yes 78 No 24 May Be 50 33% 51% Yes No May Be 16% Interpretation:Out of 152 people.
One of the reasons behind this could be that major part of the Indian population is money centric and they want to save anyhow. 94 . This is why we see sale taking variable heights when goods are sold at low prices or with discount schemes.Method of sale promotion preferred by consumers Method of Promotion Monetary 92 Non-Monetary 60 100 90 92 70 80 60 50 40 60 20 30 10 0 Monetary Non-Monetary Interpretation:Most of the people who were interviewed prefer Monetary Schemes with the products above the Non-Monetary schemes and the same is evident from the fact that out of 152 people 92 prefer Monetary Schemes while the rest of 60 people prefer Non-Monetary schemes.
Which of the monetary method of promotion is being preferred by Indian consumer?
Non-Monetary Method Gifts 25% Extra Scheme 50 Lucky Draws Trial Packs 8 40 54
Discounts (Example – Rs. 10 off) Buy 2 get 3rd at 50% Buy one get one
Buy family pack and get 25% off
Interpretation:43% of the total population prefers scheme of Buy One get One free, rationale behind this scheme is, it not increases the quantity in your shopping cart but also decreases the price of the product which you have originally bought. Next is Discount Scheme, again decreases the prices of the product. Discount scheme is the most commonly used method of sale promotion. Buy 2 get 3rd at 50% and Family Pack scheme does not have very popularity among people, more so because Discount and Buy one Get one, has more advantage and further more satisfaction as compared to other schemes.
Which of the Non-Monetary method of promotion is being preferred by Indian consumer?
Non-Monetary Method Gifts 25% Extra Scheme 50 Lucky Draws 8 Trial Packs 40 54
Gifts 25% Extra Scheme Lucky Draws Trial Packs
Interpretation:Among the Non-Monetary methods of promotion, Gifts is the most popular with 36% preference. One of the reason behind this could that Gifts has this surprise element attached with it and the consumer is always excited about it. Next is Extra Quantity in the same pack scheme with 33% preference, this is preferred because it gives you more quantity at the same price. Trial Packs get 26%, trial packs could be of the same product or of related product. Lucky Draws are not at all popular among the Indian consumer, reason could be it has element of luck attached with it and consumer does not want to take risk for it.
Satisfaction after availing these schemes and recommending the same schemes to their friends and relatives
Yes No Satisfied after availing schemes 116 36 Would you recommend 124 28
100 120 140
20 40 0 60 80
Satisfied after availing schemes Would you recommend
Interpretation:This shows that more than 75% of the consumers who have availed these promotional schemes were satisfied from it. It means that the marketers have been able to hit the right spot which is evident from the satisfaction level shown in this survey. Once a consumer is satisfied with the product and its sales promotion, he will come back and buy the same brand or he may buy larger quantity at first instance. 124 people will recommend these schemes to their friends and relatives. This means even though some people are themselves not satisfied, they will still recommend it. For company a good scheme means not only promotion through that particular scheme but also through Word of Mouth ultimately.
he/she may tend to switch the brand as well. Once a consumer tries and likes the quality of the product.How many people prefer trying skin care products before using it? Try before buying Yes No 114 38 114 100 120 38 20 40 60 0 80 Yes No Interpretation:Out of population of 152. 114 people will prefer trying that particular product before buying it. 98 . FEM can use this as promotional scheme to make skin care product buyer use their product. Like this FEM will not only gain confidence of its existing customers but will also get new customers as well.
Even though FEM does not spend much on its Brand building still. Among the usage of products. Hair Removal are products which are still not very commonly used among men. FEM brand awareness is good. FEM is the market leader in Bleach category. There is no change required in the pricing of FEM since most people are seem to be satisfied with the current pricing of FEM products. much dependent on TV Advertisement and other commercial mediums for its promotion. it was not very high capital company. In fact. There is a growing trend of females becoming the decision maker in buying household products. People are aware of the various products lines that Most of the users FEM products are females because Bleach. Bleach and Hand Wash takes the market. Pricing matches the kind of quality that is being offered by the company. one of the reasons could be before Dabur has taken over FEM. Hand Wash being not so popular still tops the survey. through its quality products it has been able to create good reputation in the Most part of the promotion of FEM is done through consumer schemes. are offered by FEM.Findings from the above study are as follows:Most of the people visiting modern trade outlets are in the age group of 18 to 35 and in that as well if we see the number of females arriving is more as compared to men. 99 . FEM is not market. I am not really sure how this thing happened because when I was on store visits I noticed that not many people actually preferred FEM Hand Wash.
Most of people prefer monetary schemes over non-monetary schemes. Sale promotion affects buying behaviour of a lot of people. Reasons could be that FEM has never spent large chunk of money on its promotional activities. Whatever has been done. not many people have bought its products under consumer promotion offer. 100 . Next is the trial packs. In the non-monetary category 25% extra and gift pack schemes are very famous. because having conventional thinking people in India wants to save money in the end.Not many people are aware of various promotional methods adopted by FEM. People prefer these above other schemes. Bleach and Hair Removal its average or above average. If offered good scheme consumer tends to move from its current brand to another brand which is offered with the valuable scheme for consumer. lot of people think FEM’s overall promotional strategy is average as compared to some of its competitors who spend a lot of money on its promotion. Next is discount scheme which again saves money of the buyer. for other 2 categories. People who were interviewed think that while promotion for Hand Wash is below average. it’s all on a very small scale. Because FEM’s overall promotional strategy is not very consistent and it does not offer schemes on regular basis. Among the consumers Buy one get one free scheme is very famous as it doubles the quantity at the same price.
Liquid Hand Wash – FEM’s Hand Wash is in its Growth stage. which bring in more consumers and thereby increase volume of sale. FEM’s hair removal cream is in its Introduction or Infancy stage. it has not been very long since the time it has been launched and moreover India is still new to the concept of Hair Removal Cream. Product Life-Cycle Stage 3 categories of FEM fall under one of the stages of product life cycle. Because hand wash does exist in India since long. still a lot of people prefer to use normal soap bricks in the Indian household because it stays for a long time and wastage is also very nominal. he does tend to recommend it to his friends and relatives. Bleaches do exist in the Indian market but its usage is on a rise since last few years. Hair Removal Cream – According to me. Reasons could be. 101 .If a person likes the scheme. Bleach – FEM’s bleach is also in it Growth stage.
RECOMMENDATIONS 102 .
margins to retailers will also improve relationship between the company and the retail A special dedicated small van should be taken for transport of FEM products to chain. By doing this we will not lose the sale and customer since we are substituting his demand to small unit of same product. as it is highest selling product of for Dabur supply. Special retail schemes can also be introduced like. 103 . what kind of variant of also increase the sale the product and size of the pack is preferred by the consumers. stores so that FEM order does not have to wait various While retailers concentrate more on the sale Bleach. This will not only motivate the retailer to sale slow moving products but will Regular survey should be done in these retail chains to see. We can give them more margins on the sale of Hand Wash and Hair Removal Category.Recommendations Part 1 To counter the problem of Fill Rate what we can do is. on purchase of 500 units of Hand Wash 100 units free. they should not avoid other SKUs. Example if there is order of 100 units of fem pink bleach in 25 gram and 50 gram each. Feedback and for the company. Special norms should be laid down and regarding the same contract should be signed with the distributor for supply of products within the time limit. we can also make the forecasting process more accurate so that company is not short of goods. Now if the 50 gram is not available we can send 50 extra units of 25 gram. FEM. Giving special discount schemes and high suggestions can be taken through online surveys. in the purchase order if a particular product is not available we can send the higher quantity of the different size of same product. Other than this.
is an increase in the footfall of consumers in the first 10 days of the month as compared to the rest of the month. Margin should be setup keeping in view the competitive scenario. distributors and company should follow the contract. 104 A notification should be sent to all the distributors and retailers in case company . Special incentives should be given to the Salesman should not pushgap should salesman on achieving their targets. Example if there are 24 units of bleach ordered. Since there wait for the company representative to come and collect the order. maintained or not. Credit issues should be avoided. This will keep the salesman motivated. Low margins can demotivate the retailer. any conflict should not affect the sale the products. MBQ should be setup in such a way that the supply does not fall short of demand. and be avoided. Purchase order should be send through mail so that the retailer does not have to Minimum Base Quantity should not be the same throughout the month. introduces any new product or SKU. Healthy margins keep the retailers on their toes and it also motivates them to sell product since that gives them higher margin and higher revenue. Retailer. Company should make sure that the distributor is maintaining good hygienic Buffer should conditions in the warehouse so that spoilage of products can be avoided. Any kind of communication the product. Promotional schemes should also be communicated to the retailers through email. then it should be increased to 36 units. Regular also kept in case of check from the company representative should be done to see of the standards are sudden increase in demand. those who are unable to achieve targets can be given training to teach them special selling techniques to improve their productivity. Sale s person can be provided with palmtops so that they can take order quickly and with ease.
Strategy should be made to make use of both the techniques of promotion efficiently. FEM products can be made equally famous among men as well. If promotion regarding the same can be done. then customer’s loyalty towards that brand increases. Once people buy a product under a scheme and if like the quality of the product. FEM’s brand and consumer promoti on should be done keeping in my mind segment of Females aging within 18-35. Since people prefer more of Monetary scheme over Non-Monetary scheme. our strategy should be such that it includes more of monetary scheme and less of NonMonetary.Recommendations Part 2 Since major part of the FEM consumers is in the age group of 18 to 35 and in that most of them are females. to make a mark in the mind of the consumers. FEM also needs to keep its promotional activity consistent throughout the year. FEM’s should concentrate more on the promotion of Hand Wash and Hair Removal since its sale is still very low as compared to the sale of Bleach. men of same age group can also targeted because there is a growing trend of use Bleach and Hair Removal Cream among men. Company should not concentrate of either of the two but on both of them. 105 . While this is primary target segment.
Buy Hand Wash schemes like. 3. market leader and the competition is not that strong. Encouraging personal selling and providing trial of hair removal cream can 1. Different promotional methods can be recommended. sale promotion and personal selling all grow more important but above all of them is the power of word of mouth which takes all the 4. But since it’s a 106 . In this advertising. of 3 packs of Hair Removal and get discount onIthis month’s recommend be Buy highest cost effectiveness. Buy Bleach and get cold 8. Buy Hair Removal Jar/Tube 40 gram. Buy Hand of demand. 20 off 5. would FEMINA magazine schemes like: and get sachet cleansing cream free. Products coming under this stage need more of advertising and publicity. Buy Hand Wash 250 ml and get 200 ml pouch free recommend 250 ml and hair remover sachet free 6. For liquid hand wash I would momentum Wash 1liter and get Rs. 7 off 2.According to the Analysis done above related to product life cycle stage of different categories of FEM product. FEM’s hair removal cream is in its Introductory or Infancy stage. Any kind of Consumer promotioncream sachet freefor this category will work 7. Buy Parlour pack and get Rs 20 off FEM’s bleach category also falls under Growth stage. Buy Hair Removal FEM’s liquid hand wash category falls under Growth stage. get Rs. Buy Bleach and get mud pack free 9.
Various promotional schemes have been provided in the recommendations and the data to validate it as well. Analysis done on promotion can be helpful in determining the schemes that are preferred by the buyers the most. Detailed recommendations on both the parts of the projects have been given.CONCLUSION The Gap analysis in distribution. 107 . The project was carried out in a good manner and has met the expectations of the organization and the institute satisfactorily. Bleach. Certain gaps in the distribution should be given serious consideration by the company. though it still has quite some scope for improvements which could be incorporated subsequently. Liquid Hand Wash and Hair Removal Cream. assortment and MBQ levels and designing the promotion mix strategy were successfully developed and analysed for FEM products naming. Information on improving the various loopholes that exist in the distribution structure has been listed in the report. But the same has been overcome with the help of Dabur Management and Distributors of Dabur. Some limitations were faced during the collection of data from various sources.
com/general/m6h5.supplychainmetric.com 108 . http://www.about.google.indiaprwire. http://www. www.com 7.com 3. http://retail.dabur.com 2. http://www.com 8.bizmove. www.citesales. www.wikipedia. http://www.com 5.docshare.com 10.com 6. http://www. http://www.REFRENCES 1.htm 9.femcareworld.com 4.
Oxford University Press. Panda. Chris Brown (1993). (2006) Sale Promotion. (1998) Sale Promotion Essential. The sales promotion handbook. (2009) Sales and Distribution Management. Robinson. The McGraw-Hill Companies. Schultz. Kogan Page 109 . Tapan K. Tony Yeshin. Tata McGrawHill. Lisa A. 5. 4. Petrison. Sunil Sahadev. Thompson Learning 3. Don E. William A.BIBLOGRAPHY 1. Cavale Krishna. Sales and Distribution Management. 2. Havaldar. Vasant.
nnexure 110 .
Annexure 1 111 .
Annexure 5 115 .
Annexure 6 116 .
Annexure 7 117 .
Annexure 8 118 .
Annexure 9 119 .
Annexure 10 120 .
Are you aware of the Sale Promotion being done by FEM?* Yes No May Be 121 . Are you satisfied with the pricing of FEM Products? Yes No Q7. Have you ever used FEM Products?* Yes No Q4. How did you come to know about FEM? TV Advertisement Newspaper Internet Friends and Relatives Store Visit Other Q3.Annexure 11 FEM Questionnaire Q1. Did you ever experience unavailability of FEM product in general stores? Yes No May Be Q6. Which of these FEM products have you used? Hand Wash Bleach Hair removal cream Q5. Are you aware of FEM as a brand?* Yes No Q2.
How do you think is FEM's overall sale promotion strategy?* House Wife Other Poor Below Average Average Good 123 122 Service Excellent Q9. What kind of Non-Monetary scheme do you prefer?* Gifts 25% extra scheme Lucky draws Trial Packs Q15. Have ever bought a FEM product under promotion scheme. if yes? Which product?* Yes No If Yes ___________ Q17. Does Sale Promotion really influence your buying behaviour while purchasing any product?* Yes No May Be Q18. Which method of Promotion do you prefer?* Yes No Monetary Non-Monetary Q13. Do you recommend your friends and Excellent relatives to avail these Poor Below Average Average Good promotional schemes?* No Hair Yes Cream Removal Poor Below Average Average Good Excellent Q10. What kind of monetary scheme do you prefer?* Q19. Gender* Male Discount (Ex. Were you satisfied after availing these Promotional Schemes?* Liquid Hand Wash Yes No Poor Below Average Average Good Excellent Bleach Q16. Occupation* Student Self Employed Q8.Q14. – Rs. please specify why? Q11. Do you prefer to try skin care product before buying them?* Q12. 10 off) Buy 2 get 3rd at 50% Buy one get one Female Buy family pack and get 25% off Q20. Rate the promotion done by FEM for each of the below mentioned products* Q21. Age* . If not.
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