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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE

PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN


INTERNATIONAL BUSINESS

BRAND PROMOTION, PLACING OF THE


PRODUCT, MARKET ANALYSIS
&
CONSUMER BEHAVIOUR ANALYSIS OF
KARA SKINCARE WIPES
IN CHANDIGARH

(A Quality Product of Aditya Birla Group)

Submitted by:
MANMEET RANDHAWA
MBA IB(2007-2009)
A1802007231

INDUSTRY GUIDE FACULTY GUIDE


Mr. Divyankar Goel Mr. Nishant Rai
Manager,
Grasim Industries & Birla Cellulose,
New Delhi

AMITY INTERNATIONAL BUSINESS SCHOOL,


NOIDA
AMITY UNIVERSITY – UTTAR PRADESH
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ACKNOWLEDGEMENT

This project has been a great learning experience for me and I would like to express my
gratitude towards all the people who guided me throughout, and without whose guidance
and support, this project would not have been completed successfully.

I express my sincere gratitude to my industry guide Mr Divyankar Goel, Regional Sales


Manager, North Division, Grasim Industries & Birla Cellulose, for his able and
continuous support and cooperation throughout my project, without which the present
work would not have been possible.

Special thanks to Mr Inderpreet Sodhi, Area Sales Manager, Punjab & Chandigarh,
Grasim Industries & Birla Cellulose, for his continuous guidance and assistance
throughout the training.

I would also like to thank the entire CFA team of Garsim Industries & Birla Cellulose
(Chandigarh), for the constant support and help in the successful completion of my
project.

Also, I am thankful to my faculty guide, Mr Nishant Rai, of my institute, for his


continued guidance and immense support as well as invaluable encouragement.

Manmeet Randhawa

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CERTIFICATE OF ORIGIN

This is to certify that Ms. MANMEET RANDHAWA, a student of Post Graduate Degree
in International Business with dual specialization in Marketing, Amity International
Business School, Noida has worked in the GRASIM INDUSTRIES & BIRLA
CELLULOSE, A unit of ADITYA BIRLA GROUP under the able guidance and
supervision of Mr. Divyanakar Goel, Regional Sales Manager, North Division,
GRASIM INDUSTRIES & BIRLA CELLULOSE.

The period for which she were on training was for 7 weeks, starting from 23rd May’08
to 15th July’08. This Summer Internship report has the requisite standard for the partial
fulfillment the Post Graduate Degree in International Business. To the best of our,
knowledge no part of this report has been reproduced from any other report and the
contents are based on original research.

Mr Nishant Rai Manmeet Randhawa


(Faculty guide) (Student)

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TABLE OF CONTENTS

Chapter No. Subject Page No.

Ch. # 1.0 Executive Summary 5


Ch. # 2.0 Research Methodology 7
1.1 Primary Objective 8
1.2 Research Design 8
1.3 Sample Design 9
1.4 Scope of the Study 9
1.5 Limitations 9
Ch. # 3.0 Critical Review of Literature 11
Ch. # 4.0 Industry Profile 19
4.1 Company Profile 30
4.2 SWOT Analysis 42
4.3 Product Profile 45
Ch. # 5.0 Brand Analysis
Ch. # 6.0 Data 46
6.1 Primary Data 47
6.2 Secondary Data 47
Ch. # 7.0 Findings & Analysis 48
Ch. # 8.0 Recommendations 67
Ch. # 9.0 Bibliography 62
9.1 References 63
Ch. # 10.0 Annexure 64
10.1 Questionnaire 65
10.2 Tables
Ch. # 11.0 Case Study 67
Ch. # 12.0 Synopsis 75

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CHAPTER 1

EXECUTIVE SUMMARY

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Executive Summary:

A project means a task assigned by the company. My project topic is “Brand promotion,
placing the product and studying the consumer behaviour as well as market behaviour for
KARA skincare wipes” in GRASIM INDUSTRIES & BIRLA CELLULOSE, Aditya
Birla Group.

The objective of my research was to identify the various factors responsible for the slow
progress of the product in the market. And to study the market for KARA skincare wipes
and brand promotion of the newly launched product by the company. Also was assigned
to work on ways to highlight the product in the corporate front and give
recommendations for the same.

For brand promotion and widening the horizon for the new products launched by the
company, attempt to crack deals with fully established companies like Ranbaxy, DCM
Engineering Works Ltd, Swaraj Mazda, Max Life, A+ saloons and chain of restaurants,
were made in Chandigarh.

By personally interviewing the customers and retailers of almost all the markets of
Chandigarh and also by secondary sources, I got the whole of relevant data according to
the need of my project. My research is based on Primary Data which was collected by
questionnaire method. So, in my training period of 7 weeks, I had prepared the
questionnaire for the 320 consumers focusing mainly on female consumers and did
survey by personally interviewing retailers in Chandigarh.

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CHAPTER 2

RESEARCH METHODOLOGY

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Objective of the study:

To study, the current situation of “Kara skincare wipes” in the markets of


Chandigarh from March 2008 till the current date, how to place the newly launched
product keeping other brands already established in the market in mind and how to
promote the brand.

Research Design:

Research methodology is the arrangement of condition for collection and analysis of data
in a manner that aims to combine the relevance to the research purpose with economy in
procedure. Research is conceptual structure within which research is conducted. It is way
to systematically study and solve the research problems.

The research can be viewed from the following parameters:

a) The research is exploratory in nature. Explorative studies valuable means of


finding out ‘what is happening’ to seek new insights to ask questions and to
access phenomenon in a new light’. It also involves formulation of hypothesis.
The study involves finding out present data of demand for skincare wipes and
prospective buyers and consumers of the skincare wipes.

b) The research is also descriptive in nature. Descriptive study is an extension of


exploratory study. Research was done to find out Market feasibility of Kara
skincare wipes, so that we can make strategies to establish our products in the
market in a better way, providing more awareness and place the product properly
as well as promote the brand and emerge as a competition in the market.

Sample Size:

The data was collected through filling up the questionnaires, getting data from retailers
and thorough market survey and market research study. The sample size for the study
taken is 320.

Scope of study:

The data collected gives the clear picture of the product in the markets of Chandigarh,
under study in this research, and gives the company an indication about whether it is
feasible to move on with the persisting movements and marketing strategies, and if no,
then how to go about it and make it worthwhile for the brand as well as the company.
And conclude on what should be the most favored deal.

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Data Research
Analysis Problem

Data
Research
Collection
Design
Method

Sampling Sampling
Technique Design

Sampling Technique:

A close end questionnaire was constructed for my survey. A questionnaire consisting


a set of questions was presented to respondents for their answers.

Data Collection:

Primary Data:
The first hand information bearing on any research is the one which has been
collected by the researcher. The data here is collected through:
• A structured questionnaire

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• Personal interview of both retailer and consumers.

Secondary Data:
The data which has already been collected, complied and presented earlier by any
agency may be used for purpose of investigation. The data collected through:
• Various publications in form of annual reports, various papers and
journals published from time to time.
• Through internet and Books
Limitations of the study:

• Research is based on the collection of data from both primary and secondary
sources.

• There may be a possibility of biasness on the part of some respondents, but very
much care has been taken to make this report unbiased.

• Some respondents might not give the correct information due to their lack of
interest and shortage of time.

• Time constraint.

• All the information, which is taken, is biased on primary and secondary data that
has its own limitations.

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* Note: Secondary data is taken only for the purpose of “Industry profile and Company
profile”. Rest of the data collected is primary and exclusively of the beholder of this
project.

CHAPTER 3

CRITICAL REVIEW OF
LITERATURE

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CHAPTER 4

INDUSTRY PROFILE

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Company Profile:

The Aditya Birla Group is a multinational corporation based in Mumbai, India and
operations in 20 countries including Thailand, Laos, Indonesia, Philippines, Egypt,
Canada, Australia, China, USA, UK, Germany, Hungary, Brazil, Italy, France,
Luxembourg, Switzerland, Malaysia and Korea.

A US$ 24 billion conglomerate, with a market capitalization of US$ 23 billion. Over 50


per cent of its revenues flow from its operations across the world. The group is a major
player in all the industry sectors it operates in. The Group has been adjudged the best
employer in India and among the top 20 in Asia by the Hewitt-Economic Times and Wall
Street Journal Study 2007.

Globally the Aditya Birla Group is:

• A metals powerhouse, among the world’s most cost-efficient aluminium and copper
producers. Hindalco, from its fold, is a Fortune 500 Company. It is also the largest
aluminium rolling company and one of the 3 biggest producers of primary aluminium in
Asia, with the largest single location copper smelter.

• No. 1 in viscose staple fibre.

• The 3rd largest producer of insulators.

• The 4th largest producer of carbon black.

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• The 11th largest cement producer globally and the 2nd largest in India.

• Among the world’s top 15 BPO companies and among India’s top 3.

• Among the best energy efficient fertilisers plants.

In India:

• A premier branded garments player.

• The 2nd largest player in viscose filament yarn.

• The 2nd largest in the Chlor-alkali sector.

• Among the top 5 mobile telephony companies.

• A leading player in Life Insurance and Asset Management.

Businesses

Aditya Birla is organized into various subsidiaries that operate across different sectors.
Among these are viscose staple fibre, non-ferrous metals, cement, viscose filament yarn,
branded apparel, carbon black, chemicals, Modern retail(under the 'More.' brand of
Supermarkets, and also under the Trinethra, and Fabmall brands until recently),
fertilizers, sponge iron, insulators, financial services, telecom, BPO and IT services. The
Group consists of four main companies, which operate in various industry sectors
through subsidiaries, joint ventures etc. These are Hindalco, Grasim, Aditya Birla Nuvo,
and UltraTech Cement.

Non Ferrous Metals

The groups non-ferrous metals are under Hindalco. It is a dominant player in aluminum
and copper. Its manufacturing locations are primarily in India, and it owns mines in
Australia. On February 11, 2007, the company entered into an agreement to acquire the
Canadian company Novelis for U$6 billion, making the combined entity the world's
largest rolled-aluminium producer. On May 15, 2007, the acquisition was completed with
Novelis shareholders receiving $44.93 per outstanding share of common stock.

Hindalco has also recently acquired Alcan's stake in the Utkal Alumina Project Joint
venture in Orissa ,India. Hindalco is a Fortune500 company. Hindalco makes alumina
chemicals, primary aluminum, rolled products, alloy wheels, roofing sheets, wire rods,
Cast copper rods, copper cathodes and several other products. But the project has faced
massive protests from locals. On 16 Dec 2001 three tribal people were shot dead because

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they were opposed to the project. Pro company police, administration and goons have
cause massive repression in the area and gross human rights violations.

Cement

The Groups cement business is under both Grasim and UltraTech cement. Together the
two companies under the group account for a substantial share of the cement market in
India. UltraTech cement comprises the erstwhile cement business of L&T which was
acquired by the group. UltraTech announced an increase in sales by 17% and Profit After
Tax by 46% for the quarter ending September 30, 2007

Carbon Black

The Group is the fourth largest manufacturer of Carbon Black worldwide. It operates out
of facilities in Egypt, Thailand, India and China.It is a major supplier to several major
automobile tyre manufacturers worldwide.

Textile Business

The Aditya Birla Group is the world's largest player in the Viscose Staple Fiber industry.
It operates out of India, Laos, Thailand, Malaysia and China. It owns the Birla Cellulose
brand. Apart from viscose staple fiber, the group also owns acrylic fiber businesses in
Egypt and Thailand, viscose filament yarn businesses and spinning mills at several
locations all over India and South East Asia.

The group has pulp and plantation interests in Canada and has recently invested in
plantations in Laos The Aditya Birla group is also a major player in the branded garments
market in India. Its subsidiary, Madura Garments, is a major producer of textile fabric as
well as the brand licensee of Louis Phillip, Van Heusen and Allen Solly in India. It
operates company owned retail outlets in several cities in India.and now planning to go to
Pakistan as well.

Telecom Services

Aditya Birla Group holds a 98.3% stake in Idea Cellular, a leading telecom operator in
India. Idea Cellular started off as a joint venture with the group, AT&T and the Tata
Group. However the stakes of the remaining partners was eventually acquired by the
group. After an Initial Public Offering on the Indian Stock Markets, Idea Cellular now
accounts for a third of the group's market capitalization.

Other Businesses

Apart from the above businesses, the group is a major player in industry sectors like
Insulators, Fertilizers, IT (It owns PSI Data Systems Limited - http://www.psidata.com),
ITeS (It owns Transworks and recently acquired the Canadian BPO Firm Minacs),
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Chemicals, Mining, Sponge Iron, Financial Services (A joint venture with Sunlife) and
more recently, Retail.

Philanthropy

The Group actively involves itself in several community development initiatives -in
particular around its manufacturing locations . The group also supports development
activities in areas like healthcare, education, sustainable livelihood, infrastructure and
social causes. It works in 3700 villages, reaching out to 7 million people annually through
the Aditya Birla Centre for Community Initiatives and Rural Development.It runs 45
Schools and 18 Hospitals.

Birla Cellulose:

Birla Cellulose is the Aditya Birla Group's umbrella brand for its range of cellulosic
fibres. It comprises versatile sub-brands; Birla Viscose, Birla Viscose Plus, Birla Modal,
and Birla Excel. These brands offer a wide range of functional benefits such as soft feel,
high moisture absorbency, bio degradability and comfort to the wearer. These fibres have
multiple applications including apparel, home textiles, dress material, knitwear, non-
woven etc.

Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in 1954.
Birla Cellulose is a world leader in viscose staple fibre (VSF). Its production is spread
across six countries, viz. Canada, Thailand, India, Indonesia, China and Laos. The Group
independently fulfills India's entire VSF requirements.

With a strong focus on Research and Development (R&D), the Group's R&D initiatives
span the entire value chain.

• Grasim Forest Research Institute — pulp to plantation research


• Birla Research Institute for Applied Sciences — pulp to fibre research

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• Textile Research & Application Development Centre (TRADC) — value chain
from fiber to garments / made

"Nature is the genesis of all that surrounds us, therefore, what other than nature could be
the origin of Birla Cellulose." Nature is the source of Birla Cellulose and herein lies the
inspiration of their logo.

'Fibres from Nature' is the theme and the message:


Leaves fall and grow all over again, they are a renewable resource of nature. Birla
Cellulose is much like these leaves and is made from the same trees. The floating leaves
symbolise the key characteristics of Birla Cellulose which are "comfort and lightness".
The vibrant green indicates that Birla Cellulose can take on vibrant colours. The circle
signifies the cycle of nature and sustainability.

Nature remains the underlying theme for all the brands:

• Viscose is symbolized by the fresh green of summer


• Modal is symbolised by the burnt orange of autumn
• Excel is symbolised by the deep pink of spring

Birla Cellulose is:

• Natural - Soothing, comforting and elevating, Birla cellulose exhibits all qualities
of its source — nature.
• Stylish - The drape and fall of Birla Cellulose with its natural inheritance is a
fashion statement.
• Timeless - Just like nature, Birla Cellulose, is timeless and shall always remain in
vogue.
• A fashion catalyst - A hint of Birla Cellulose in your wardrobe brings in the
glamour that differentiates between mundane and fashionable
• Versatile - Birla Cellulose combines the best properties of all fibres. It is
extremely blendable hence enhancing the realms of possibilities in clothing.

The characteristics:

Viscose is a 100 per cent natural fiber sourced from wood pulp, a natural and renewable
resource. Over the years it is being widely recognized as a 'Fibre of choice' by fabric
producers.

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Birla Cellulose - Fibres from Nature : Contributing to a green world

Preserving our environment has always been the inspiration behind Birla Cellulose. It has
successfully achieved this goal through the following initiatives:

Nurturing and building the green cover

Over a million plantlets are being produced from identified superior clones for
development of clonal orchards and plantations.

Land conservation

Efforts are on to encourage tree-farming practice on marginal, sub - marginal and fallow
lands to the best advantage of the country. The yield of Viscose is seven times that of
cotton for the same land area. Thus significantly contributing to conservation of land, and
reaping maximum results from this limited resource.

Water conservation

Birla Cellulose Viscose is highly environment friendly. Every kilogram of viscose


produced saves 200 buckets of water when compared to cotton. Thus it preserves one of
the most valuable natural resources.

Zinc free product

Results in, manifold benefits through the value chain due to the unique cross section.

Process friendliness

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The process being followed for production is environment friendly and green due to the
following advantages:

• Non toxic effluent as a result of replacement of zinc by alum


• Less solid waste generation due to reduced lime consumption
• Reduced risk of fouling biological microorganism in reactor

SpunShades

This variant is environment friendly and results in conservation of water throughout the
value chain. It is Okeo Tex certified, i.e. it meets the ecological requirements set for baby
articles.

Birla Cellulose - The Fibre of Choice benefits

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Heavy metal free Viscose Plus:

Cross section differentiation

Zinc Zinc free

Despite its known toxicity, zinc has remained an indispensable input to VSF

Birla Cellulose is the only heavy metal / zinc free viscose with the following green
properties:

• Reduced effluent load


• Improved fibre properties
• Reduced production cost
• Technological adaptability

Birla Cellulose : The perfect blend

Birla Cellulose fibres are the perfect blend with all types of fibres. The benefits of using
Birla Cellulose as a blend are as below:

Birla Cellulose blends Benefits of blending with Birla Cellulose


Birla Cellulose-cotton Makes cotton soft and supple
Improves fabric uniformity
Imparts sheen and colour brilliance
Birla Cellulose-wool Improves wear properties
Imparts softness
Enhances skin friendliness
Adds shine and luster

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Birla Cellulose-silk Maintains sheen of silk
Improves comfort
Economical and fashionable
Improves comfort, breathability, lustre and skin
Birla Cellulose-synthetics
friendliness
Birla Cellulose-elastane Offers excellent sheen, comfort and stretch

Vision and values:

To be the world leader in man-made cellulosic fibre.

The company believes in value-creation for all its stakeholders, through innovative
research and development initiatives which in-turn develop the market for man-made
cellulosic fibres.

Companies and units:

An integrated outlook

Birla Cellulose is growing by leaps and bounds through both organic and inorganic route.
The efforts towards integration and self sufficiency are as follows:

• Backward integration into pulp and plantation


• Captive power plant at all locations
• In house manufacturing of all major chemicals and auxiliaries used in VSF
manufacturing.

In house engineering division that caters to new project implementation

A global corporation rooted in Indian soil:

The Aditya Birla Group is India's first truly multinational corporation. Global in vision,
rooted in values, the Group is driven by a performance ethic pegged on value creation for
its multiple stakeholders. A US$ 24 billion conglomerate, with a market capitalization of
US$ 31.5 billion and in the League of Fortune 500, it is anchored by an extraordinary
force of 100,000 employees belonging to over 25 different nationalities. Over 50 per cent
of its revenues flow from its operations across the world.

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The Group's products and services offer distinctive customer solutions worldwide. Its 85
state-of-the-art manufacturing units and sectoral services span 20 countries — India,
Thailand, Laos, Indonesia, Philippines, Egypt, Canada, Australia, China, USA, UK,
Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Malayasia and
Korea.

A premium conglomerate, the Aditya Birla Group is a dominant player in all of the
sectors in which it operates. Among these are viscose staple fibre, metals, cement, viscose
filament yarn, branded apparel, carbon black, chemicals, fertilisers, insulators, financial
services, telecom, BPO and IT services.

The Group has been adjudged the best employer in India and among the top 20 in Asia by
the Hewitt-Economic Times and Wall Street Journal Study 2007.

Globally the group is:


• A metals powerhouse, among the world’s most cost-efficient aluminium and
copper producers. Hindalco, from its fold, is a Fortune 500 company. It is also the
largest aluminium rolling company and one of the three biggest producers of
primary aluminium in Asia, with the largest single location copper smelter
• No.1 in viscose staple fibre
• The fourth largest producer of insulators
• The fourth largest producer of carbon black
• The eleventh largest cement producer and the second largest in India
• Among the best energy efficient fertiliser plants
• Among the world's top 15 and India's top three BPO companies

In India, the Group holds a frontrunner position as:


• A premier branded garments playe
• The second largest player in viscose filament yarn
• The second largest in the chlor alkali sector
• Among the top five mobile telephony players
• A leading player in life insurance and asset management
• Among the top three supermarket chains in the retail business

Beyond business

A value-based, caring corporate citizen, the Aditya Birla Group inherently believes in the
trusteeship concept of management. Part of the Group's profits are ploughed back into
meaningful welfare-driven initiatives that make a qualitative difference to the lives of
marginalised people. These activities are carried out under the aegis of the Aditya Birla
Centre for Community Initiatives and Rural Development, which is spearheaded by Mrs.
Rajashree Birla.

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Grasim Industries Limited:

Grasim Industries Limited was incorporated in 1948; Grasim is the largest exporter of
Viscose Rayon Fiber in the country, with exports to over 50 countries. This, along with
Aditya Birla Nuvo can be considered as the flagship companies of the AV Birla Group.
Grasim is headquartered in Nagda

Global footsteps

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started


operations in 1970, this was Aditya Birla Group’s first foray into international venture.
Aditya Birla Group incorporated P.T. Elegant Textiles in 1973 in Indonesia. Thai Rayon
incorporated in 1974, this was the second company in Thailand, operating in Viscose
Rayon Staple Fiber. Century Textiles Co. Ltd. is taken over by Aditya Birla Group in
1974; this company is a weaving and dyeing plant manufacturing and exporting variety
of synthetic fabrics. PT Sunrise Bumi Textiles incorporated in 1979, it produces yarn
exported over 30 countries in 6 continents. P.T Indo Bharat Rayon incorporated in 1980
produces Viscose Staple Fiber in Indonesia to become a dominant player in the domestic

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market as well as export markets. Thai Polyphosphates and Chemicals was started in
1984 in Thailand to produce Sodium Phosphates, presently merged with Thai Epoxy and
Allied Products Company Limited (1992), Thai Sulphites and Chemicals Company
Limited (1995) to form Aditya Birla Chemicals Ltd. This company supplies to sectors
such as food, textiles, electrical and electronics, composites, leather, plastics and
automobiles. PT Indo Liberty Textiles was incorporated in 1995 to manufacture synthetic
spun yarn.

Focus of Growth Post MFA

In late 1990’s and later, the focus was the textile business because of the end of Multi-
Fiber Arrangement (MFA) which opened a host of opportunities to Indian exporters. In
this period, Aditya Birla Group took a three route strategy for growth.

• Rapidly enhance existing capacities


• Acquire and Build Garment brands for local and international markets

Jayashree textiles was acquired by Aditya Birla Nuvo (formerly Indian Rayon), is a
leading producer and exporter of yarns and fabrics to 50 countries with a turnover of
$413 million. It acquired Madura Garments in 2000 to enter the branded garments
business. Has brands such as Louis Philippe, Van Heusen, Peter England, Allen Solly, SF
Jeans among others and also a global supplier to global buyers such has Marks &
Spencer’s, Polo etc.

• Vertical integration to get cost advantage

AV Cell Inc., a joint venture between Aditya Birla Group and Tembec, Canada,
established operations in 1998 to produce softwood and hardwood pulp for the purpose of
internal consumption among different units of the Group.

Together, Aditya Birla Group and Tembec, Canada have acquired AV Nackawic Inc.,
which produces dissolving pulp, as a further step to integrate. Grasim industries Ltd. is a
leading player in the Viscose Staple Fiber (VSP). The Aditya Birla Group's VSF
manufacturing plants straddle Thailand, Indonesia, India and China. At each of these
locations, further capacity expansions are under way — in Thailand by 31 ktpa; in
Indonesia by 37 ktpa; in India by 64 ktpa and in China by 30 ktpa. These brownfield
expansions, slated to be completed by the second quarter of 2008, will further notch up
the Group's VSF production from 566 ktpa to 727 ktpa and entail an investment close to
US$ 260 million.

Grasim wants to follow a strategy of backward integration, right from plantation stage to
the final VSF stage. The Group's VSF business operates through its three companies —
Grasim Industries in India, Thai Rayon Corporation in Thailand and Indo Bharat Rayon
in Indonesia, which also oversees its Chinese operations at Birla Jingwei Fibres, China.

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Joint ventures

Thai Rayon Promoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole
manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 per cent of
Thai Rayon's VSF throughput is directly exported to more than 20 countries worldwide.
The VSF meets the stringent quality expectations of customers in USA, Mexico, Europe,
Turkey, Canada, Israel, Australia, South Korea, Philippines, Indonesia, Pakistan,
Bangladesh and Sri Lanka.

PT Indo Bharat Rayon Marketed under the brand name of 'Birla Cellulose', the company
produces a wide range of VSF in engineered specifications for textiles and non-woven
applications. The company's strong focus on environmental protection is reflected
through its investments in a sophisticated state-of-the-art waste-water treatment plant and
scientific waste disposal systems.

Sources of competitive advantage

Cost Grasim is the lowest cost producer of VSF in the world. It is the most integrated
fibre producer with the chain stretching right from Forest to Pulp to Fibre to Yarn. All
most all the intermediate inputs are captive. Besides, their in-house engineering division
enables us to grow in a most cost effective way.

Technology On technology front, they produce all the three generations of man made
cellulosic fibres from an in-house developed capability through research and
development. Their research and development efforts are not limited to fibre stage alone
but extend to entire textile value chain. While the plantation and related activity is carried
out at Grasim Research Institute (GFRI, Harihar, India), the Product innovations are
carried out at Birla Research Institute (BRI, Nagda, India). For value chain related
activities, a state of art “Textiles Research & Application Development Centre” has been
established at Kharach, Gujarat-India to entire textile value chain from yarn to fabric to
garments.

Markets On marketing front, their reach extends to the entire globe, through marketing
offices. On a global level, their major strength is in spun-dyed fibres and now other
specialities such as Non-woven, Modal and Excel have started penetrating in global
markets. Their brand “Birla Cellulose” is firmly entrenched in the market. Their value
added marketing services comprising of technical, logistical, financial, marketing and
informational support have enabled us to emerge as the most preferred supplier of VSF in
world.Our offerings whether from India, Thailand, Indonesia or China are all marketed
under the mother brand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal &
Birla Excel. An umbrella brand has enabled us to create a common identity for our
product across the globe irrespective of its production origin and creating of awareness
and consumer pull.u have to come in kiet.

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SWOT Analysis of the Industry: Competitive Position of Indian Textile Industry

Competitive strengths

1. India has a large fiber base, and ranks as the world’s second-leading producer of
cotton, accounting for 16 percent of the world’s cotton crop.
2. India is the second largest cotton exporter after the U.S.A
3. In the manmade fiber sector, India is the world’s fifth-largest producer of
polyester fibers and filament yarns and the third-largest producer of cellulosic
fibers and filament yarns
4. India is the world’s second-largest textile producer (after China), and is
diversified and capable of producing a wide variety of textiles.
5. India’s textile and apparel industry benefits from a large pool of skilled workers
and competent technical and managerial personnel

Competitive Weaknesses

1. Policies of the Government of India (GOI) favoring small firms have resulted in
the establishment of a large number of small independent units in the spinning,
weaving, and processing sectors.
2. Discouraged investments in new manufacturing technologies, and limited large-
scale manufacturing and the attendant benefits of economies of scale.
3. Low levels of technology and produce mostly low value-added goods of low
quality

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Amity International Business School, Noida
4. India’s textile industry depends heavily on domestically produced cotton.
5. The GOI policy reserving apparel production for the SSI sector had restricted the
entry of large-scale units and discouraged investment
6. India has high energy and capital costs, multiple taxation, and low productivity,
all of which add to production costs.

Product Profile:

Aditya Birla Group, has recently launched its new product “Kara Skincare Wipes”. Kara
Skincare wipes is a solution to skin care regime out of home – a convenient way to be at
you best always. Sometimes your hectic schedule leaves you with little time to take care
of your skin. But with Kara Skincare wipes in your bag, you can now take care of your
skin even when you’re on the go.

With a unique formulation of natural ingredients, these wipes are easy to use – anytime,
anywhere. What’s more, they are made from Birla Cellulose, a fiber that is 100% natural
and biodegradable.

Kara Skincare wipes are:


• Convenient
• Hassle free application of lotion without using cotton balls.
• Portable
• Optimized Efficacy
• 100% Natural and Biodegradeble
• Hygenic
• Alcohol free
• Dermatologically Safe
• Assurance of “The Aditya Birla Group”

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Amity International Business School, Noida
Variants of the Product:

• REFRESHING FACIAL WIPES:


Kara Refreshing wipe is enriched with Aloe Vera for skin nourishment and Mint Oil
for effective freshening. It ensures effective cleansing to remove dirt, excess oil and
grime from the face and neck and also leaves a lingering fragrance.

• DEEP PORE CLEANSING WIPES:


Kara Deep Pore Cleansing is a gentle, effective way to clean your skin of dirt,
grime and excess oil. Enriched with Jojoba and Avocado extracts, it unclogs pores,
detoxifies and thoroughly exfoliates dead skin cells.

• MOISTURIZING WIPES:
Kara Moisturizing wipes is enriched with the goodness of Almond and Honey for
beautiful radiant and glowing skin. It is also fortified with vitamins for skin
conditioning and is suitable for use right throughout the year.

• TONING WIPES:
Kara Toning wipes is enriched with Rose and Thyme extracts that tighten the skin
and maintain the normal pH balance.

• SUNSCREEN WIPES:
Kara Sunscreen wipes has a formulation of SPF 20* which protects the skin from
the adverse effects of UVA and UVB sunrays. It is enriched with antioxidants like
Plum extract & Vitamin E that nourish the skin and Aloe Vera extract that keeps the
skin moisturized.

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Amity International Business School, Noida
CHAPTER – 5

BRAND ANALYSIS

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Amity International Business School, Noida
Kara Skincare wipes is a new product to hit the Indian market. The brand is now running
heavy print campaigns announcing the launch. Kara Skincare wipes can be called as
“India's first branded skincare wipe product”. Skincare wipes are popular in the west but
in India the category is a new one. Although Indian consumers are familiar with the
products which are imported, its the first time that an Indian company has entered in this
segment.

”Kara means care” . The brand also marks Aditya Birla Group's foray into the Indian
FMCG market.
According to reports, Wipes market is worth around Rs 30 crore ( source : Ginni
filaments website).
Kara Skincare wipes is positioned as an essential skincare accessory. The brand is being
launched in five variants –
• Refreshing
• Deep Pore Cleansing
• Toning

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Amity International Business School, Noida
• Moisturizing
• Sunscreen Wipes

The brand should target the young lady professionals who often need to meet alot of
people and have to work in outdoors.

The brand aims to create a new category of wipes in India . Hence the challenge is to
educate the targetted consumers about the usefulness of this product. This task is cut out
for Kara since the targetted consumer is already exposed to such products. The only task
is to inculcate the habit of buying and using the wipes. The product is relevant in the
Indian market for two reasons - One is the climate which necessitates such a product and
second is the growing number of lady professionals .

The brand has the tagline " At your best. Always " which clearly communicates the core
brand positioning. The brand is being promoted as the anytime solution to look good.

Kara has a good potential to create and own a new category. The brand already has the
first mover advantage. But the category does not have much entry barriers. It can face
stiff competition from cheap imports. But Kara has the financial backing of Birla group
and the investment in building this brand will pave the way for another successful
marketing story.

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Amity International Business School, Noida
CHAPTER 6

DATA COLLECTION

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Amity International Business School, Noida
Data Collection:

Primary Data:

The first hand information bearing on any research is the one, which has been
collected by the researcher. The data here is collected through:
• A structured questionnaire
• Personal interview of both retailer and consumers.

Secondary Data:

The data which has already been collected, complied and presented earlier by any
agency may be used for purpose of investigation. The data collected through:
• Various publications in form of annual reports, various papers and
journals published from time to time.
• Through internet
• Books

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Amity International Business School, Noida
* Note: Secondary data is taken only for the purpose of “Industry profile and Company
profile”. Rest of the data collected is primary and exclusively of the beholder of this
project.

CHAPTER 7

FINDINGS & ANALYSIS


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Amity International Business School, Noida
Ques 1: Do you use skincare wipes??

Yes - 93%

No - 7%
yes
- 37 -
Amity International Business School, Noida no
Interpretation:

According to the survey conducted in different sectors of Chandigarh, It is clearly


visible that 93% of the women in the city, use wipes for their skin on daily basis.
Where as 7% of them don’t use it, reason being – they do not want to take chances
with skin and believe that their skin will get an oily look due to humidity.

Ques 2: Is your wipe safe on your skin??

Yes - 79.50%

No - 13%

Yes
Don’t Know - No
- 38 -7.50%
Amity International Business School, Noida Don’t Know
Interpretation:

254 women out of 320 feel that their wipes are safe to their skin, where as 24 of them
don’t even have a clue whether the wipes they use are safe for their skin or not, but
still they use it. But 42 out of 320 women in Chandigarh say that their wipes are not
safe for their skin. This shows that approximately 20% of the women are not fully
aware about the product they are using.

Ques 3: Which Brand do you prefer the most??

L'Oreal - 38% Dove - 43%

Clarus - 9%

L'Oreal
Dove
None of the Ginni - 3% Clarus
Above - 7%
- 39 - Ginni
Amity International Business School, Noida None of the above
Interpretation:

According to the survery conducted, among all the competing brands in the market of
Chandigarh, women prefer mostly Dove and L’Oreal. And on interviewing them
personally, it came into notice that consumers using these brands are loyal to them,
reason being – long existence of the brand in the market. Where as other brands like
Ginni and Clarus have a share of 3% and 9% only.

Ques 4: Does your wipe get dry after opening the


seal??

Yes - 61%

No - 39%

- 40 - yes
Amity International Business School, Noida no
Interpretation:

61% of the consumers, surprisingly complained about their wipes getting dry due
humidity, where as the rest 39% of the women were satisfied with their wipes with all
means.

Ques 5: Are your wipes 100% natural and


biodegradable??

Yes - 33%

- 41 - No - 12% yes
Amity
Don’t Know - International Business School, Noida No
55% Don’t Know
Interpretation:

As mentioned before, majority of the consumers in Chandigarh, do not have complete


awareness about their product. Surprisingly, 55% of the respondents i.e 176 women,
had no clue whether their wipes were 100% natural and biodegradable. Though 33%
of them, use wipes which are 100% natural and biodegradable.

Ques 6: Are your wipes dermatologically safe??

Don’t Know -
71%

No - Yes - 26% Yes


3% No
Don’t Know
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Amity International Business School, Noida
Interpretation:

Again, majority of the consumers have low knowledge about the product they use.
71% “Don’t know” which means 227 women out of 320 fall in this category. This
means that there is a huge need to bring awareness in the markets of Chandigarh.

Ques 7: For how long are you using wipes??

34%

27%

26% 13% 1 yr
2 yr
more than 2yrs
None of the above
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Amity International Business School, Noida
Interpretation:

It is clear from this response that there’s has been a long term usage of wipes in this
city. So there’s a good scope for the product to establish itself in the markets of
Chandigarh, but at the same time “brand loyalty” is a reason for concern in terms of
placing of the product.

Ques 8: Does your skin get dry after using wipes??

33%

67%

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Amity International Business School, Noida yes no
Interpretation:

67% of the women, 215 out of 320 said that their skin gets dry because of humidity.
Where as rest seemed to have no problems with skin getting dry.

Ques 9: Does your wipes come under skincare


products category??

62%

70%
60%
50%
20%
40%
30% 18%
20%
Don’t
10%
No Know
0%
Yes Yes
No
- 45 - Don’t Know
Amity International Business School, Noida
Interpretation:

Majority i.e 62% don’t know whether their wipes come under skincare products
category. Where as 18% of them say that their wipes do come under the skincare
category

Ques 10: Do you use sunscreen before stepping out of


your home and carry it with yourself??

94.7%

5.3%
yes
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no
Amity International Business School, Noida
Interpretation:

94.7% of the women prefer using sunscreen before stepping out of their homes and
carry along with themselves. This shows that majority of them are conscious about
their skin. Where as 5.3% of them do not use it.

Ques 11: Do you wash your face before applying


sunscreen while working outside??

41%

59% - 47 -
Amity International Business School, Noida Yes
No
Interpretation:

Again, 189 out 320 women are habitual to wash their face before applying sunscreen.
Where as 41% straightly said no.

Ques 12: Does your sunscreen give you the effect of


SPF20??

68%

- 48 - Yes
32%
Amity International Business School, Noida
No
Interpretation:

Since SPF 20 is the most commonly used by the consumers when it comes to
sunscreen, its no surprise that 68% of the women said yes. Where as due different
skin types people use other variants as well like SPF 30, SPF 15 etc which is
preferred by the rest 32% of the women of Chandigarh region.

Ques 13: Have you ever used or heard of “KARA


skincare wipes”?

89.50%

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Amity International Business School, Noida10.50%
Yes
No
Interpretation:

This question is an eye-opener for the company, as almost 90% of the women
respondents out 320, had not heard or tried “KARA skincare wipes”. This means that
in-spite of its existence in the market since March 2008, majority of the consumers do
not know about the brand’s existence.

Ques 14: How did you find “KARA skincare


wipes”??

75%

14%

3% Excellent

8% Good
- 50 - Average
Amity International Business School, Noida Satisfactory
Interpretation:

This survey is out of those 10.5% of the respondents who have used “Kara skincare
wipes”. Sample size here becomes 34 respondents. Out of which 75% found the
wipes to be “good”, 14% “average” and 8% found it to be “excellent”. Sadly 3% of
the respondents found it to be just “satisfactory”

Ques 15: What is the difference that you found in


“KARA skincare wipes” and other wipes??

54% 17%

Quality
29%
Fragrance
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Variety
Amity International Business School, Noida
Interpretation:

Among these 34 respondents, 54% of them found “fragrance” to be the USP of the
wipes. Where as 29% chose “quality” and rest 14% chose “variety” provided by the
brand in terms of “moisturizing wipes, toning wipes, sunscreen wipes, deep-pore
cleansing wipes, and two variants within the refreshing wipes”

Ques 16: Is “KARA” giving you something new to


experience/difference in form of wipes??

48% 41%

yes
-11%
52 -
No
Amity International Business School, Noida
Don't Know
Interpretation:

In terms of new experience or difference in comparison with other wipes there’s not
much difference of opinion as 48% said “NO” and 41% said “DON’T KNOW”. Yet
11% of them said that they found the quality of the product was unbeatable in
comparison with other brands and also favored the concept of having variants.

Ques 17: What do you feel unique about the concept


behind “KARA skincare range by ADITYA BIRLA
Group??

76%

Superiority
2% Concept
22%
Idea

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Amity International Business School, Noida
Interpretation:

Now here ons, again the sample size is 320 respondents. And among them, 74% feel
that concept of Aditya Birla group is worth admiring, were as 22% felt that the idea is
unique and rest 2% chose superiority because of the “brand name” attached to it.

Ques 18: What do you relate to the word “KARA”?

64%

21% 2%
13%
Only Name
Way to Success
Something related to skin
Don’t Know
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Amity International Business School, Noida
Interpretation:

According to the survey conducted, maximum respondents feel that “KARA” is only
a name, 2% feel it means “way to success”, 13% feel its “something related to skin”.
Where as 21% of the 320 respondents “don’t know”.

PROBLEMS FACED BY THE PRODUCT:

• Now what has happened in the market is that the product is launched with a new
concept, and any new concept takes time to establish itself in the market.
Especially in terms of a skincare product, consumers prefer the products which
are already established in the market and are little hesitant to use a new product
for their skin.

• Consumers especially women, prefer buying the products of brands like L’oreal,
Dove, Pond’s, Himalaya, etc. But in facial wipes, there are just the refreshing
wipes which are being marketed as well as sold in the market. Only facial wipes
till now known were, Fresh Ones, Dove wet wipes, Nivea Wipes, L’oreal
Refreshing and Cleansing wipes.

• Since Kara Skincare wipes have been launched recently, and the only company
providing a wide range of variants in wipes like sunscreen, moisturizing, toning,
deep-pore cleansing, Consumers are not much aware about the product.

• Due to very less advertising of the product by the company, the awareness about
the product has not spread among both retailers and consumers.

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Amity International Business School, Noida
• If the product had been launched abroad, it would have worked as they welcome
innovative products, whereas certain study and research says that “Asian markets
especially Indian market does not cater to new products as they are more inclined
towards tried and tested products”. So looking at this scenario, it would take little
longer for the product to establish itself in the market as the advertising done till
now had been in print media only.

• There’s a huge demand for the product among the “new-generation working
women” as they prefer handy products for convenient and easy accessibility. So
focusing on the right consumer group is necessary.

• It is important to make it clear to the consumers that it is not just another


refreshing wipe but it is the entire skincare range of wipes.

• Retailers are not well aware about the product and are unable to explain the
details about the product to the consumers, as they themselves do not have the
complete understanding about the product.

• Due to this, Retailers are not very keen on having the stock and demand the
advertisement on air i.e television ads’.

• Convincing the consumers and retailers is the main issue.

• Especially in Chandigarh, only markets of Sec 8,10,11 & 17 have consumers and
retailers with suitable mindset for the product as they have A+ surroundings and
people in these sectors.

• Marketing and placing of the product in the markets of Chandigarh is more of a


“Door-to-Door” selling with a difference that it is happening in relation with the
retailers.

• Price factor also persists in terms of Kara Sunscreen Wipes, and the reason is lack
of awareness about the technicalities of the product.

• Price factor also raises concern for the retailers due to lesser margin.

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Amity International Business School, Noida
CHAPTER 8

RECOMMENDATIONS

- 57 -
Amity International Business School, Noida
RECOMMENDATIONS:

1) The product needs rigorous advertising be it in print media and television,


hoardings, van operations, lama, only then the awareness could be brought about
the brand and the products.

2) It will be better to target big outlets, showrooms and malls with demonstration
corners to catch the eye of the eye of the consumers.

3) Getting the product into an eye catching and handy package for various purposes,
so that it attracts both the consumers and retailers. The product has a lot of potential
in sectors like “automobile industry, pharmaceutical industry, aviation industry as
well as hospitality industry”.

4) Industry Look up –
• Automobile Industry: A tie-up with the automobile company would do wonders
for the product, for example – refreshing wipes with mint oil could be given with
purchase of every vehicle in an eye-catching package meant only for cars.

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Amity International Business School, Noida
• Pharmaceutical Industry: Handy’s could be given as a special package for the
pharmaceutical companies, to get better orders and it would also help in brand
building.

• Aviation Industry: Like the company has managed to have tie-ups with
Kingfisher airlines, other companies can also be targeted with proper explanation
on cost-effectiveness of the product.

• Saloons: Like wise, even saloons have a lot of business potential for the product
especially Porsche saloons of Chandigarh like HeadMasters, Tress Lounge,
Femina Plus, Sylvees.

• Gyms: Also the product can do wonders in terms of gaining cliental from gyms in
the city, as refreshing wipes would be more cost-effective than the usage of
towels. Potential Gyms of Chandigarh – Ozone gym, Park view gym.

*5) The market research process is required for – Primary & Secondary research
into consumer views and product needs, concept, volumetric and packaging testing,
consumer usage research, pre-testing of image and advertising research, marketing
monitoring in this region especially Chandigarh, as this city is indeed a potential
market for the product to establish itself and do well.

*6) BLACK BRAND OPERATION FOR KARA SKINCARE WIPES:

This small exercise can be performed at outlets, malls and even within the markets.
All we have to do, is to get consumers to use our brand with a twist that they do not
know which brand it is that they are using. Our wipes, can be placed in a black
coloured packet, where the customer doesn’t know which brand is it, and on the other
hand we can have the brand of facial wipes, sunscreens, moisturizers and toners
which they are using. Demonstration by the company person and self-application by
the users on their right cheek and left cheek, can help them feel and experience the
difference. Once the customer is satisfied with the application and usage of our
product, the brand name of “Kara Skincare Wipes” can be revealed and proper
awareness about the product can be given. And also by giving away free samples to
both the satisfied and unsatisfied customers would help in brand building for the
product.

Investment: Approx Rs 2000/- – Rs 5000/- (Depending on the scale of the place of


performing activity)

Requirement:

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Amity International Business School, Noida
1) Team (approx 2-3 persons)
2) Samples of the product
3) Leaflets & Brochures

Team:
• Supervisior – The supervisor will be responsible for handling the whole
activity and rate the performance as well.
• Demonstrators – Two demonstrators will be required from the company,
in order to display the product, conduct the demonstration, and explain the
customer regarding the product and distribute the samples as well as
leaflets/brochures of the product.

REASON:

Since Kara Skincare Wipes is a quality product with the new concept, it is very
important for the brand to get awareness among the target consumers which are
between 18-35 age group of women. This activity would bring that awareness,
which will be helpful in Brand Building exercise of the product in Chandigarh,
as the main focus is just not on few Sectors like Sec 8,10,11,17, the main aim here
is to target all the markets of the city, so that demand for the product raises.

OUTCOME:

Brand would get a boost in the market, and its establishment will be benefited
for sure.

*7) VAN OPERATION FOR KARA SKINCARE WIPES:

Approx Cost – Rs 1,00,000/-

• REQUIREMENTS:
1. Van – Tata 470 Van
2. Team of atleast 5-6 persons
3. Flex marketing sheets
4. Audio/Video application material
5. Printed leaflets/brochures
6. Questionnaires
7. Public Addresal System
8. DVD/CD of product’s advertisements
9. Mirrors
10. Painting Cost

POTENTIAL CITIES:
• Amritsar

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Amity International Business School, Noida
• Ludhiana
• Jalandhar
• Chandigarh
• Bhatinda
• Ambala
• Panchkula

Best time for the Van Operation: APRIL - SEPTEMBER

REASON:

Since KARA Skincare Wipes include products like – Refreshing wipes with two
variations, sunscreen wipes, toning wipes, deep-pore cleansing wipes, these six
months are high on humidity, heat and pollution, and have more inclination of
consumers towards skincare products and refreshing wipes.
80
70
60
50
level of hum idity, heat and
40
pollution
30
20
10
0
Jan Feb Mar April May June July Aug Sept Oct Nov Dec

HOW TO GO ABOUT IT:

• The van would have flex marketing sheets with the logo and different products of
the brand printed on it, so that the product is clearly visible in the market.
• Colors of the van should be same as the colors used for the product.
• Printed leaflets and brochures attached with the samples would be required for
the consumers.

TEAM: (would require atleast six persons)

• Team Leader: He/She will be responsible for the whole operation, setting the
target and achieving it, and sending the report on daily basis.
• Supervisor: He/She will be responsible for vehicle, sales and to achieve
targets.
• Helping Hands (atleast 2 persons or more)
• Driver
• Technical Support: In order to fix the technical problems occurring during the
van operation.

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Amity International Business School, Noida
OUTCOME:

Positive Outcome:
• If the sales are 100%, this would bring the van operation to have a break-even
point, i.e the cost incurred for the van operation would be earned back.
• After achieving the Break-even point, if there are further sales, that will be taken
as the profit earned, i.e if total sales achieved comes to Rs 1, 10,000 and total cost
incurred for the operation is Rs 1, 00,000, then Rs 10,000 would be the profit
earned.

Negative Outcome:
• Operation fails to achieve the break-even point.

CONCLUSION: WIN-WIN SITUATION FOR “KARA SKINCARE WIPES”

HOW???

In either of the cases, it will be a win-win situation for “Kara skincare wipes.
• If it yields profits, target achieved.
• If the operation does not yield profits or total cost incurred is not retrieved, even
then the company doesnot face much loss.
• Reason Being -:
Enough advertising for the product would be done, awareness among retailers
and consumers would increase, placing of the product in the market would get benefit
and brand would get an increase in the face-value.

CHAPTER 9

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Amity International Business School, Noida
BIBLOGRAPHY

Books:

• Marketing Management, 12th edition, Philip Kotler, Kevin Lane Kotler,


Published by Prentice Hall, USA
• Advertising and Integrated Brand Promotion, 4th Edition, Thomas C. O’Guin,
Chris T. Allen, Richard J. Semenik, Published by Thomson South-Western
Publishing house.
• Consumer Behaviour Analysis (critical perspectives on business and
management) by G.R Foxall, Published by Routeldge Publishers.
• Emotion in Advertising & Promotion, Stuart J. Agres
• Trochim M.K. William, 2006, Research Methods, II edition, Biztantra.
• Best W. John, Kahn V. James, 2005, Research in Education, IX edition,
Prentice Hall of India Pvt. Ltd.

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Amity International Business School, Noida
Websites:

www.times100.co.uk
www.en911.com
www.wikipedia.com
www.adityabirla.com
www.adityabirla.com/birlacellulose
www.google.com

Other Sources:

Ginni filament site (article published)


Harvard Business Review Journal

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Amity International Business School, Noida
CHAPTER 10

ANNEXURE

Questionnaire
Q.1: Do you use wipes?
a) yes.
b) no.

Q.2: Is your wipes are safe to your skin?


a) yes.
b) no.
c) don`t know.

Q.3: Which brand do you prefer most?


a) L`oreal.
b) Dove.
c) Clarus.
d) Ginni.
e) None above.

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Amity International Business School, Noida
Q.4: Does your wipes get dry after opening its seal?
a) yes.
b) no.

Q.5: Are your wipes are 100% natural and biodegradable?


a) yes.
b) no.
c) don`t know.

Q.6: Are your wipes are dermatologically safe?


a) yes.
b) no.
c) don`t know.

Q.7: How long you are using wipes?


a) 1 yr.
b) 2 yr.
c) more than 2years.
d) none above.

Q.8: Does your skin get dry after using wipes?


a) yes.
b) no.

Q.9: Do your wipes comes under skin care products category?


a) yes.
b) no.
c) don`t know.

Q.10: Do you use sunscreen while step out of the home and carry with yourself?
a) yes.
b) no.

Q.11: Do you wash your face before applying sunscreen while working outside?
a) yes.
b) no.

Q.12: Do your wipes gives you effect of sunscreen that too SPF20?
a) yes.
b) no.

Q.13: Have you ever used/ try KARA skin care wipes?
a) yes.
b) no.

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Amity International Business School, Noida
Q.14: How you find KARA skin care wipes?
a) excellent.
b) good.
c) average.
d) satisfactory.

Q.15: What difference you find out in KARA skin care wipes and other wipes?
a) quality.
b) fragrance.
c) variety.

Q.16: Is KARA is giving you something new experience / difference in form of wipes?
a) yes.
b) no.
c) don`t know.

Q.17: What do you feel unique about the concept behind KARA skin care range by
ADITYA BIRLA group?
a) superiority.
b) concept.
c) idea.

Q.18: What you find out from the word KARA?


a) only name.
b) way to success.
c) something related to skin .
d) don`t know.

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Amity International Business School, Noida
CHAPTER 11

CASE STUDY

How market research supports the new product development process

Introduction:
Market research is the process by which businesses find out about customers’ needs,
wants and desires. It makes possible the successful development of new products. This
study shows how an international company, combines market research with new product
development to provide exciting new products that better meet consumer requirements.

Aditya Birla Group – Birla Cellulose has a clear goal - to be as close as possible to
consumers, regardless of which country they live in. Developing superior consumer
insights is fundamental to the continued future success of the company and its products
with viscose staple fibre. These are the result of more than 60 years of experience in
research and development.

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Aditya Birla Group has launched many new brands and products into a variety of
countries and categories. Being an innovation leader has allowed the company actively to
shape its markets and set new trends. These product launches have led to long-term
global growth.

The key stages of market research and new product development:

Market research involves the systematic gathering, recording and analyzing of data about
customers, competitors and the market. This links marketers to consumers by supplying
essential information to solve marketing challenges and help with marketing decisions.

Market research helps a company create and develop an up-to-date and relevant portfolio
of products. For example - Beiersdorf’s international Market Research team is based at
company headquarters in Hamburg, Germany. The team’s objective is to be the voice of
the consumers within the organization. High-quality market research has helped secure
the long-term future of the business. Analyzing and understanding the data gathered on
consumers’ behaviors, needs, attitudes and opinions minimizes the risks involved in
making marketing decisions.

Market research in a global organization needs the help and support of the company’s
overseas affiliate companies. Most affiliate companies (in the UK for example) have
dedicated Market Research Managers. They help the central research team in gathering
and interpreting consumer views. These views provide information or insights that
ultimately result in the development of new products suitable for a global market.

This case study follows the development of a new product KARA skincare wipes aimed
at young women. This case study will give you a clear picture of how market research has
helped New Product Development (NPD).

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Identifying consumer views and product needs – where to start?

Market research should start with the consumer and serves two purposes:
1) To inform companies about consumer needs and desires. What are the trends in the
market? What do consumers want?
2) To give consumers the opportunity to talk to the providers of products and services so
that their views are taken into account.

Businesses exist in a fast-moving world with increased consumer choice. It is essential


that a company knows its market and its consumers before developing any new product.
Lots of questions need answering:
• Who is the target market?
• What do they exactly need out of the product?
• Is there a gap between the products available and consumer needs?
• What is the competition doing?
• What position do we have in the market?

Consumer insights drive New Product Development. This information takes into account
their behaviors, attitudes and beliefs. It is an expression of their wishes and desires.
Businesses use consumer insights to create opportunities for their brands. It is the starting
point that enables brands to fit meaningfully into consumers’ lives. Across countries,
consumers are different in terms of culture and lifestyle. In terms of products concerning
personal care there’s a challenge to find similar insights among the consumers, which can
be further used to optimize product development.

If we take on the deodorant category, NIVEA used many secondary research sources to
discover consumers’ views and their need for deodorants. These related to different
markets and were supplied by local country market researchers.

These included:
i) A consumer Usage and Attitude study. This had been conducted a few years earlier
across various markets (UK, France and USA).
ii) An external study by Fragrance Houses. This covered the importance of scent and
fragrance to people’s well-being and mood.

The research team felt therefore there was not enough recent knowledge about the
consumer in the secondary research. They commissioned some primary qualitative
research in key markets (Germany, France, UK and USA). This was aided by the local
Market Research Manager.

Now similar research needs to be done for KARA Skincare Wipes as the aim here is to
understand the motivations for using skincare wipes amongst the female consumer.

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Primary research is used when there is no existing data available to answer your
questions. The research involves small discussion groups of females. This helps
researchers understand the beliefs and motivations of this group.

There were several main findings:

• There is steady growth in females for their skin. They wanted to look after their skin in
the most convenient way.
• Women cared increasingly about the condition of their skin.
• Women desired attractive, neat skin. This symbolized sensuality and femininity.
• The skincare segment remained focused on functional rather than beautifying products.

The market research revealed an unexplored market potential for the brand. No direct
competitor was offering a product to meet these needs. So there was a clear opportunity
to develop a new product. This would fit across different markets and with the current
Skincare wipes range.

Turning consumer insights into product concepts:


Consumers showed a need for an ‘anytime solution to look good’. The team generated
ideas on how to address the consumer need.

Product Concept
“At Your Best Always”

From Look
theseofideas
the the marketing team created ‘product concepts’. These describe the
Packaging Ingredients Fragrance Quality
product
product benefits and how they will meet the consumer needs. Several concepts were
written in different ways. These explained and expressed unique product attributes.

The company needed to know which concept was preferred by prospective consumers. It
carried out market research to test whether the concepts would work. The research was
conducted amongst the desired target market. For Kara Skincare wipes, the desired target
market was 18-35 year-old women, both college going and professionals who were
beauty-orientated, followed fashion and looked for products with extra benefits.

Quantitative research on the concept was carried out in the test markets. An
international company like Aditya Birla must test products in more than one market to
assess properly the global appeal.
The concepts were tested monadically. Monadic testing means that the respondent of the
test is only shown one concept. This stops the respondent being biased by seeing many
variations of the same product concept.

A number of criteria were used to test the concepts:

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1) Skincare wipes category performance measures. These included wetness, dryness, and
fragrance. The new concept must deliver generic core benefits.
2) Product attributes specific to the new product and company’s core values. The new
product has additional benefits to a ‘regular’ facial wipes. For example, it has different
variants for different purposes, like sunscreen, moisturizing, toning, deep-pore cleansing
and additional USP like it leaves your skin feeling silky and gives you beautiful you,
anytime, anywhere. Consumers needed to understand and see these benefits.
3) The product needed to be relevant and motivate a consumer to purchase it.

Next, the research team tested various name ideas for the product and developed different
designs for the packaging. Packaging design plays a very important role in helping to
communicate the image of the product. Kara Skincare wipes needed to communicate
femininity and sophistication. Different variants got different colors, Pink was a natural
color choice for the packaging for toning wipes with rose and thyme, Sky Blue for
refreshing wipes, Chrome for deep-pore cleansing wipes with jojoba and avocado, Peach
for moisturizing wipes with honey and almond, Orange for sunscreen wipes. Various
design ideas were tested using quantitative market research. In addition, this helped to
predict the volume of the new products that would be sold, the optimal selling price and
the level of switching from existing products and competitor products. Though Kara
Skincare wipes in Indian market are one of its kind, though there is existence of cheap
imports in this segment and other established brands in terms of refreshing wipes only.

Testing the product, brand positioning, and advertising:


The stages described so far produced a product concept that consumers felt will be
relevant and which they will be willing to buy. The next stage was to test the product on
actual customers.

Many product launches fail, despite great advertising. A big reason is because the product
fails to live up to the promises made. The Market Research Team conducted a product
usage test. A de-branded sample of the proposed new product was given to the target
consumer of females in several places.

De-branded means the wipes were in a blank package so that the consumers did not know
who made the product or what type it was. Very often consumers form opinions about
products and services from advertising and packaging. This can sometimes be very strong
and creates a bias in what they think of a product before trying it. The consumers were
asked to use the new product for a week. They kept a diary of when they used it and
scored the performance of the wipes against a list of criteria.

These included:
• Did it keep you dry all day?
• Did you have to reapply it?
• Did you like the fragrance?
• Did it last all day?

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• Was the wipe reliable?

Consumers applied the ‘de-branded’ wipe on their right cheek and continued to use their
current wipe on their left cheek. This helped the users gauge if it was as good as or better
than the brand they normally used. This gave a measure of how likely the consumer
would be to swap brands.
The results of the test were very positive. Most consumers loved the fragrance and the
feel of the product on their skin. They felt it performed well. Most said they would swap
their brands after trying the product.
Now the marketing team had a new product idea that consumers liked. It had a name and
packaging design that were well received. They now needed to check how this fitted with
the rest of the brand positioning and range. The brand position is the specific niche in the
market that the brand defines itself as occupying.
The Kara Skincare wipes adds a touch of feminine sophistication and elegance to the
brand’s personality. This built on the core wipes positioning. It made Kara skincare wipes
more appealing, modern and unique to trendy, young female consumers.

The next stage was to brief an advertising agency to develop communication to support
the launch of the new product. Through market research the team could check whether
the advertisements positively supported and communicated the new product. The
company conducted qualitative research on some advertising ideas amongst various
groups of the target consumers. It presented ideas in the form of ‘storyboards’ of what a
TV advert could look like.

The objective was to evaluate which were the best ideas in terms of:
• Did they stand out as exciting or different?
• Were they relevant to the consumer?
• Did they communicate the right things about the new product?
• Did they persuade the consumer to want to purchase the product?

Once the product is launched and the consumer can actually purchase it, the research
process does not stop. Continuous consumer tracking can be carried out to find out
consumers’ views of the new product. This involves interviewing people every day to
find out whether they are using the product, what they think of it and why they would
purchase it.

For example, Beiersdorf uses other, secondary data sources such as consumer panel data
and EPOS (electronic point of sale) data. These monitor the sales effectiveness of the
product throughout the launch phase and through the product life cycle.

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Conclusion:

New product development (NPD) should start with an insight based on consumer needs.
Throughout the NPD process, market research is a valuable tool for the company to
check viability and minimize the risk of the product launches. Being an international
company, it is essential that it develops new products using the insights of consumers
across markets and cultures. This ensures the products are relevant to a large number of
global consumers and will deliver the maximum return when launched. This maximizes
return on investment for the company and results in happy, satisfied and loyal
consumers.

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CHAPTER 12
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SYNOPSIS

”BRAND PROMOTION, MARKET ANALYSIS


& CONSUMER BEHAVIOUR ANALYSIS OF KARA
SKINCARE WIPES
IN CHANDIGARH”
_________________________________________________________________

STUDENT’S NAME:
MANMEET RANDHAWA
INDUSTRY GUIDE:
MR. DIVYANKAR GOEL
FACULTY GUIDE:
MR. NISHANT RAI
_______________________________________________________________________

OBJECTIVE:

• To bring awareness among consumers about the newly launched


product by the company and placing of the product in the markets of
Chandigarh.
Grasim Industries & Birla Cellulose, Aditya Birla Group
• Brand Promotion of the product in Chandigarh.
• To study the market for the competitors and establishment of the
product.

FINDINGS:

• The product comes with a unique concept which is well-accepted in the west, but in Indian
market, its one of its kind, though there is the existence of cheap imports and other well
known brands existing in “Facial wet wipes” like L’Oreal, Dove and Nivea.
• There’s lack of awareness among the potential consumers as well as the retailers in the
markets of Chandigarh.
• Lack of marketing and advertising in this region, only advertising in print media prevails.
• New concept is taking long time to establish itself in the market in spite of having
monopoly in this market in terms of skincare wipes.
• Majority of the consumers, donot know about the brand in Chandigarh.

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• The product needs a lot marketing and advertising in this region.
• Target big outlets, showrooms and malls with demonstration corners to catch the eye of
the consumers.
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