Bhanu's Project

A

PROJECT REPORT

ON

“Studying the Availability, Visibility of the Products of Reckitt Benckiser (India) Limited and its Competitor Products in KB Stores in Delhi”

Submitted to:

Punjab Technical University, Jalandhar

In partial fulfillment of the requirements for the degree of

Masters in Business Administration

Batch (2008-2010)

Submitted By:

Bhanu Pratap Rao

MBA- 2nd sem.

RIMT- SCHOOL OF MANAGEMENT STUDIES

Mandi Gobindgarh, Punjab

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Acknowledgement

It is not possible to prepare a project report without the assistance and encouragement of other

people. This one is certainly no exception. Completing a task is never the effort of a single

person. It is often the result of invaluable contribution of number of individuals in an indirect

manner.

I would like to give my deep sincere regard to those who helped me in the successful completion

of the project and preparation of the report.

I would like to owe debt of gratitude to Mr. Martand Singh (Zonal Sales Manager) and Mr.

Abhishek Singh (Marketing Trade Manager) for giving me the opportunity to gain exposure in

the organization.

I would like to express my sincere thanks to sMr. Sanjay Mahajan (TSI) and Mr. Aman

Agarwal (Distributor), who imparted help support & experience even at the cost of busy

schedule. Without this help it was not possible to complete this project.

I would also thank all DBSRs & KSRs agent for their invaluable support.

Thanking you:

Bhanu Pratap Rao

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Executive Summary

There is a strong MNC presence in the Indian FMCG market. The Fast Moving Consumer Goods

(FMCG) sector is the fourth largest sector in the economy with a total market size in excess of

Rs 60,000 crore. This industry essentially comprises Consumer Non Durable (CND) products

and caters to the everyday need of the population.

The project will study the availability, visibility of the products of Reckitt Benkiser (India) Ltd

and its competitor products in KB Stores in Delhi. The Project Duration is of near about 45 days

viz. from 22nd June to 7th Aug.

The project will also study the order and supply system and how to increase the sale in KB

Stores.

Many of the KB Stores have been visited to consider all the aspects.

A detailed study will be done by collecting and analyzing the primary and secondary data.

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Table of Contents

Contents Pg no.

Tittle Page 1

Acknowledgement 2

Executive Summary 3

Introduction-FMCG Sector 5

Company Overview and History 7

Brief Profile of the Business 9

Introduction to the Project 26

Review of Literature 32

Research Methodology 34

Analysis and Discussions 36

Findings and Evaluation 44

Conclusion 45

Limitations 46

Bibliography 47

Summary 48

Annexure 50

Suggestions 53

Recommendations 54

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Introduction - FMCG Sector

The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the economy

with a total market size in excess of Rs 60,000 crore. This industry essentially comprises

Consumer Non Durable (CND) products and caters to the everyday need of the population.

Fast Moving Consumer Goods (FMCG), are products that are sold quickly at relatively low cost.

Though the absolute profit made on FMCG products is relatively small, they generally sell in

large quantities, so the cumulative profit on such products can be large. Examples of FMCG

generally include a wide range of frequently purchased consumer products such as toiletries,

soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-

durables such as glassware, light bulbs, batteries, paper products and plastic goods.FMCG may

also include pharmaceuticals, consumer electronics, packaged food products and drinks,

although these are often categorized separately.

Exports

India is one of the world’s largest producer for a number of FMCG products but its FMCG

exports are languishing at around Rs 1,000 crore only. There is significant potential for

increasing exports but there are certain factors inhibiting this. Small-scale sector reservations

limit ability to invest in technology and quality upgradation to achieve economies of scale.

Moreover, lower volume of higher value added products reduce scope for export to developing

countries.

Product Characteristics

Products belonging to the FMCG segment generally have the following characteristics:

They are used at least once a month

They are used directly by the end-consumer

They are non-durable

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They are sold in packaged form

Industry Segments

Main segments of FMCG sector are:

Health and Personal Care

Fabric Care

Home Care

Food and Beverages

Growth Opportunities

Large untapped rural market

Export potential

Increasing disposable income with result in faster growth revenue

Present Challenges

Competition from the unbranded players in rural market

Bargaining power of consumers

Lack of innovative approach in distribution channel

Rising material, advertisement and distribution cost

"Me-too" products, which illegally mimic the labels of the established brands. These

products narrow the scope of FMCG products in rural and semi-urban market.

Benefits of Industry

Low operational costs

Presence of established distribution networks in both urban and rural areas

Presence of well-known brands in FMCG sector

Company Overview

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Reckitt Benckiser is a global force in household, health and personal care, delivering ever better

solution of consumers.

The company has the sales of over 6 billion pounds consistently going ahead of the industry due

to its leading brands, its operation in over 60 countries and sales in 180, and its highly motivated

multinational management.

Reckitt Benckiser Group Plc. (Reckitt Benckiser) is principally engaged in the manufacturing

and marketing of household, cleaning, health and personal care products. The company

manufactures products related to several categories which include dishwashing, fabric care,

surface care, health, home care and personal care products and food. The company operates

through 60 operating companies across 180 countries. The company has 13 directly held

subsidiaries which include Propack, Reckitt Benckiser (Australia) Pty Limited, Reckitt Benckiser

(Brazil) Limited, Reckitt Benckiser (Canada) Inc. Reckitt Benckiser Deutschland GmbH, Reckitt

Benckiser Health care (UK) Limited, Reckitt Benckiser Inc., Reckitt Benckiser (India) Limited,

Reckitt Benckiser Italia and Reckitt Benckiser (UK) Limited. The company is headquartered in

the UK.

The company reported revenues of (British Pounds) GBP 6,563.00 million during the fiscal year

ended 2008, an increase of 24.56% over 2007. The operating profit of the company was GBP

1,505.00 million during the fiscal year 2008, an increase of 22.06% over 2007. The net profit of

the company was GBP 1,120.00 million during the fiscal year 2008, an increase of 19.40% over

2007.

In 2008, the BBC broadcast an investigaton into the methods Reckitt Benckiser used to maintain

the market share of the Gaviscon powerbrand.

The company held Platinum status in 2005, 2006, 2007, and 2008 in the Business.

History

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Reckitt & Colman

Colman's was founded in 1814 when Jeremiah Colman began milling flour and mustard in

Norwich, England. Reckitt & Sons started in 1840 when Isaac Reckitt rented a starch mill in

Hull, England. He diversified into other household products and in due course passed on his

business to his four sons. Reckitt & Sons was first listed on the London Stock Exchange in 1888.

In 1938 Reckitt & Sons merged with J&J Colman to become Reckitt & Colman Ltd. Reckitt &

Colman sold the Colman's food business in 1995 but still has some food brands.

Benckiser

Johann A. Benckiser founded a business in Germany in 1823. Its main products were industrial

chemicals. Benckiser went public in 1997.

Merger and subsequent developments

The company was formed by a merger between Britain's Reckitt & Colman and the Dutch

company Benckiser NV in December of 1999. Bart Becht became CEO of this new company and

has been credited for its transformation, focusing on core brands and improving efficiency in the

supply chain . The new management team’s strategy of “innovation marketing”. – a combination

of increased marketing spend and product innovation, focusing on consumer needs – has been

linked to the company’s ongoing success. For example, in 2008, the company’s “rapid

succession of well publicised new product variants” were credited for helping them “to capture

shoppers' imagination” Business Week has also noted that “40% of Reckitt Benckiser's $10.5

billion in 2007 revenues came from products launched within the previous three years.”

In October 2005, Reckitt Benckiser agreed to purchase the over-the-counter drugs manufacturing

business of Boots Group, Boots Healthcare International, for £1.926 billion. The three main

brands acquired were Nurofen in analgesics; Strepsils sore throat lozenges; and Clearasil anti-

acne treatments.

In January 2008, the Company acquired Adams Respiratory Therapeutics Inc., a pharmaceutical

company, for $2.3bn: one of the major brands acquired with this purchase was Mucinex.

Brief Profile of the Business

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Reckitt & BenckiserPlc, UK, promote Reckitt & Benckiser of India Ltd (Reckitt & Benckiser).

The company has business interests in household products, personal care and pharmaceuticals.

Key brands include Dettol, Cherry Blossom, Harpic, Robin liquid blue and Mortein. Around

40% of the company´s sales come from its flagship product Dettol. Dettol`s market share hovers

around 85% and its product portfolio comprises toilet soaps, anti germ liquids and talcum

powder. The remaining divisions, namely fabric care, shoe care and floor care contribute

approximately 15% to the total turnover.

Within the household products and the personal care segments, Reckitt & Benckiser is mainly

into insecticides, lavatory care, surface care, shoe care and air fresheners. Insecticides contribute

over 50% to Reckitt & Benckiser’s household business and 26% to its total sales. The company

has a strong brand Mortein in the insect repellent market with a total market share of 45% (coil

12% and mats 33%). In the relatively small lavatory care market (Rs320m), Reckitt &

Benckiser’s Harpic enjoys a 79.6% market share. Its brand Cherry enjoys a 79% market share in

the Indian shoe care industry. The Indian air freshener market is estimated at Rs120m with

Balsara Hygiene’s Odonil leading the market with an 80% share. Reckitt & Benckiser has

positioned its Haze brand at the premium end of the market. Regarding the wash-segment,

Reckitt & Benckiser is currently present only in the post-wash segment with its flagship brand

Robin Blue, which is in existence since 1984. Robin Blue powder market share is around 20%.

The company has entered into a joint venture, operational from March 1998, with

pharmaceutical major Nicholas Piramal; a company having a strong distribution reach with

chemists. The UK parent and Nicholas Piramal hold 40% stake each while the balance is with

Reckitt & Benckiser. The joint venture, Reckitt Piramal, is the largest over the counter (OTC)

pharmaceutical company in the country. The JV, besides improving sales of its flagship product

Dettol, which currently contributes to over 80% of the JV´s sales, would also help in pushing

other products like Dispirin and Gelora.

Recent Development

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Reckitt Benckiser Plc and Lancaster Square Holdings SL, have made a voluntary offer to the

equity shareholders of Reckitt Benckiser India Ltd to acquire 41,91,339 equity shares of Rs 10

each, representing 12.73 per cent of the paid up equity share capital of Reckitt Benckiser India,

at Rs 250 per share, payable in cash. The specified date is August 16, 2002. The date of the

opening of the offer is September 2, 2002. The date of the closing of the offer is October 1, 2002.

In aggregate, Reckitt Benckiser Plc and Lancaster Square at present hold 28,721,849 fully paid

up equity shares of Rs 10 each, representing 87.27 per cent of the paid up equity share capital of

Reckitt Benckiser India. After the open offer the company plans to delist its shares.

Reckitt Benckiser Plc has received approval from the Foreign Investment Promotion Board

(FIPB) for infusion of funds of Rs 403.19 crore for the open offer of its subsidiary, Reckitt

Benckiser (India) Ltd. The parent has made an open offer to acquire the public shareholding of

Reckitt Benckiser (India) at Rs 250 per share.

The company is making serious efforts to improve penetration of the specialised toilet cleaner

and to upgrade the habits of Indian consumer. For this purpose, Reckitt & Benckiser has recently

tied up with sanitaryware major EID Parry’s premium brand Parryware for a co-branding

initiative in Delhi. The company has recently relaunched Cherry Blossom Shine in a handy and

compact case. The company also launched the Mortein Xtra Power range of mosquito coils and

mats. It extended the range of offerings of the Dettol brand further by recently introducing Dettol

Extra Care soap and Dettol talcum powder.

As part of its strategy, Reckitt & Benckiser has decided to pull out of its food products business.

Its factory at Chetla, which manufactures the Robinson brand of barley, is proposed to be sold as

a going concern. Negotiations in this regard are currently underway.

The merged overseas parent, christened Reckitt Benckiser Plc, which holds 51 per cent of the

company`s equity stake, was firming up its strategy to garner a higher share of the market for

dish wash, home care, fabric care and health care products. Reckitt & Benckiser would draw up

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its strategy some time later in line with the parent company`s strategy. A decision on change in

the name of Reckitt & Benckiser would also be taken after the legal formalities are completed in

the UK.

The merged parent is also working on a global e-commerce initiative strategy. Initially, however,

this strategy will more likely to focus on B2B rather than B2C transactions. Reckitt’s Indian

operations would, for the time being, continue to be channeled through the existing distributors`

network.

Future Plans

The company will relaunch several products with new packaging, introducing new delivery

systems and offering better value to the customers. The pest control business will come under

greater focus as Reckitt & Benckiser sees a lot of potential in this segment in the future. Products

are also to be introduced under umbrella brands Mortein, Lizol and Dettol.

Strength of Organization and Culture

The Reckitt Benckiser culture lies at the heart of our success. Led by a strong management team,

who are heavily incentivised to achieve performance, our people are entrepreneurial and take it

upon themselves to own and create initiatives and deliver great execution. They are driven and

dynamic, and want to make their mark. We enjoy constructive conflict with each other and our

partners, and like to take calculated risks to gain advantage in some of the most competitive

markets in the world. We keep the organisation slim, streamlined and unbureaucratic. In this way

we can have fast decision-making, be spontaneous and respond rapidly to changing consumer

needs and market conditions.

Our commitment to performance is total, whether it is financial results or impacting upon climate

change and helping those more vulnerable in society. To tackle the total carbon footprint of our

products, from cradle-to-grave, in 2008 we progressed our Carbon 20 initiative and developed

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detailed plans and measurements for working with consumers to achieve our commitment to

reduce our total carbon footprint by 20% by 2020.

This year we also delivered on the last part of our commitment to save 150,000 lives through

working with Save the Children across the world. We are now working with them on a new

programme, which will see our commitment have even more impact in the future.

Our Vision

Reckitt Benckiser passionately delivers better solutions in household cleaning and health &

personal care to customers and consumers, wherever they may be, for the ultimate purpose of

creating shareholder value.

Our Core Values

Performance unleashed

What is our company like? In short, we’re like our brands - strong, fast-acting and highly

effective. Join us here and you’ll find plenty of drive and energy, and a direct and open style. It’s

a place you’ll be given the freedom to make your mark very early in your career. We thrive on

constant innovation and tangible results. And there’s another thing that makes us truly

distinctive: at Reckitt Benckiser you’ll find a real passion to outperform.

From the very first day you join us we make sure you have a real job. Right from the start, you’ll

be expected to take ownership for the role you’ve chosen and supported in it. Expect to be

rewarded for success. Expect too, the freedom to enjoy a dynamic, international career in a

business that values achievement and commitment, not rules and process.

Four key values drive our business:-

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Achievement

Achievement makes us who we are. We don’t just aim high, we aim to achieve beyond

expectation - to outperform. And we develop and support our people to outperform so we can all

achieve results wherever we focus, be it products, profits or CSR.

Entrepreneurship

We encourage bold thinking and commercial drive. We allow daring ideas to thrive and value the

passion that people bring in turning ideas into great execution.

Teamwork

We pull together to succeed. As individuals we are competitive high-achievers, but we bring our

strengths together when needed to work as one united by common principles and attitudes, not

rules and processes, to drive success.

Commitment

For us, ‘the buck stops here’. We take personal responsibility for our areas of accountability and

take the initiative in doing what’s needed. We aren’t slaves to process or spoon-fed. Our people

are given the latitude to do what they think is right within a framework for success. Leaders at all

levels select people against this attitude and develop it further to ensure the sustainability of the

business.

Company’s Strategy

Our clear and consistent strategy is to drive above industry growth and returns through:

A disproportionate focus on driving our Powerbrands, global leaders in categories with

high growth potential, and completing their international roll-out.

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High levels of media and marketing investment, and continuous innovation.

Transforming net revenue growth into even better profit and strong cash flow.

Disproportionate focus on our 17 Powerbrands

Powerbrands are Reckitt Benckiser’s globally leading brands in high growth categories, and of

the 17 Powerbrands, 15 are either Number 1 or 2 globally. We have further strengthened our

leadership positions for our Powerbrands in 2008.

This year we further strengthened and refined our Powerbrands to 17, and we are transitioning

other brands with the same footprint into them. As an example, in the US we are transitioning

Electrasol and Jet Dry into the Finish brand, and in Europe, transitioning Calgonit into Finish.

This delivers both benefits for the consumer, through better and faster access to our innovation

pipeline, and increased effectiveness and efficiency for us, through common advertising and

packaging.

Our newly acquired Mucinex brand, the US’ leading cough and decongestion remedy, made it to

the Powerbrand list straightaway. This brand came with the acquisition of the Adams business

and has already delivered results over and above our challenging expectations.

Powerbrands accounted for 62% of Reckitt Benckiser’s 2008 net revenues. This is up from 61%

in 2007.

Continuing to invest behind our brands

Our growth has been achieved by ensuring that consumers know about our products and the

reasons to buy them. This year we again increased our marketing and advertising investment

behind our brands and reaped the reward. In harder market conditions, we think it is more

important, not less, to invest in keeping our brands at the forefront of consumers’ minds. Media

deflation has enabled us to get more value, but despite lower costs, we have increased our media

investment by 14% at constant exchange compared to the previous year. We remain amongst the

highest investors in media in the industry, with 12.4% of net revenue ploughed back into

advertising our brands.

Innovation – driving above average growth

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Investment and product innovation are the key driving factors behind the Powerbrands’ and RB’s

growth. Consumers today are making their purchasing decisions with even greater scrutiny. Our

innovation has been crucial in giving consumers even more reason to buy our products.

Turning our growth into cash

We turn our growth into attractive profits and cash flow through margin expansion and cash

conversion.

We drive our margins by focusing on higher margin categories and products. We then build on

this by having a never-ceasing cost optimization programme, which in all market conditions

relentlessly looks at taking cost out without taking anything away from consumers and, where

possible, making the products even better. At a time when consumers are looking harder for

value for money, we are able to give them 10% more Vanish for the same price by reducing 70%

of the plastic in the packaging. We moved from a round tub to a resealable pouch. This also

helped improve Reckitt Benckiser’s environmental impact, which has remained an important

focus even in more challenging times.

Through our cost optimisation programme, we have managed to minimise the price increases we

passed on to consumers to partially offset the rise in commodity costs. With this activity, and

benefiting from the faster growth on our higher margin RB Pharmaceutical and consumer health

care businesses, we have driven adjusted operating margins up by 80bps and delivered very

strong cash flow. This has strengthened the financial position of the Company and allowed the

return of funds to shareholders. We have increased the full year dividend by 45% and funded a

£300m share buy back programme.

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Company’s Brand

Reckitt Benckiser has five core categories:-

Surface Care (Profile of Category)

Disinfectant cleaners both clean and disinfect surfaces, killing 99.9% of germs. All purpose

cleaners are ideal for many household surfaces, particularly in the bathroom and kitchen.

Lavatory cleaners offer specialised cleaning and disinfecting for the toilet bowl and cistern.

Specialty cleaners are designed for specific tasks – from cleaning ovens to removing limescale.

Finally, Polishes & Waxes clean and shine hard surfaces such as furniture and floors.

Key Brands

Lysol

Dettol

Easy of Bang

Harpic

Fabric Care (Profile of Category)

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This category consists of five product groups used for cleaning and treating all fabrics. It covers

products used before, during or after the main laundry wash cycle. Fabric Treatment products

remove stains from clothes, carpets and upholstery. Garment Care products are specially

formulated for washing delicate fabrics. Water Softeners protect the machine and laundry against

the build-up of limescale and other deposits. Fabric Softeners are used for softening and

freshening fabrics and ironing aids help make ironing more convenient. Laundry Detergents

clean fabrics in washing machines.

Key Brands

Calgon

Vanish

Health and Personal Care (Profile of Category)

Products that relieve common personal or health problems. Antiseptics protect against infection

and deliver germ kill. Analgesics, Cold/Flu/Sore Throat and Gastro-Intestinals are generally over

the counter medications for common ailments like pain, fever, cold, flu, sore throat or heartburn.

Suboxone is the Company’s prescription drug against opioid dependence. Veet, our Depilatory

product, removes hair leaving beautiful smooth skin. Our skin care range consists of products

like Clearasil to fight spots and break-outs for visibly clearer skin and products like E45 for dry

skin. Denture Care consists of both denture fixatives and cleaners.

Key Brands

Veet

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Dettol

Clearsil

Strepsils

Home Care (Profile of Category)

Consists of three categories. Air Care products remove odours and add fragrance to the air to

create an ambience. Various formats include: autosprays, electrical plug-ins, aerosols, gels and

candles. Pest Control products offer solutions to domestic infestation. The category includes

insecticide and rodenticide products – in formats such as coils, mats, baits, traps, vapourisers and

sprays – to prevent infestation and to kill pests. Shoe Care cleans and protects shoes.

Key Brands

Airwick

Mortein

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Major Players

Hindustan Lever Limited (HLL)

HLL is India's renowned and largest Fast Moving Consumer Goods (FMCG) Company. It is a

leader in Home & Personal Care Products, Food & Beverages having widespread marketing &

distribution network all over India.

HLL covers 1 million retail outlets and 50000 villages with 7000 redistribution stockists. The

distribution network of HLL is spread all over India. Its primary sale is to the redistribution

stockists and the secondary sale is carried out by the stockists to various wholesale and retail

outlets.

With this backdrop in the FMCG market, HLL planned to e-integrate the entire distribution

network and aspired for a software that takes care of various phenomenal issues of the stockists.

Challenge:

Over 7000 Redistribution Stockists (RS) of HLL are responsible for reaching the nook and

corner of the consumer market and make the HLL products available wherever required. The

Redistribution Stockists (RS) of HLL obtain stock from the C&F agents and store it in their

gowdown and distribute the stocks through their sales network.

These were the areas of concern:

Manipulation of schemes offered by HLL - HLL offers secondary schemes for the

retailers to promote sales. The chances of manipulating these schemes were high and no

effective approach was prevalent to keep track of whether the schemes reach the retailers

or not.

Normally, the dealers of HLL deal with numerous products and are engaged in frequent

sale and distribution activity. Hence, they hardly had any time to keep track of the stock

movement. This led to piling up of non-moving stock.

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As the principal company is unaware of the stock level, it periodically sends the stocks to

the distributor. This led to dumping the non-moving stocks. The distributor had no

powerful means to control this, as he himself does not know the stock level.

The billing and reporting were time-consuming process for the RS. The report formats

changed very frequently and the distributors had difficulty in providing the reports in

required formats.

RS was barely able to keep track of the salesperson performance.

Solution:

HLL has chosen Wings to e-integrate its entire distribution network using Wings SCM -

exclusive software designed for Distributors & Stockists.

Wings SCM provided innovative solutions to surmount the difficulties in the earlier system.

Wings SCM handles schemes efficiently. It has controlled manipulation of schemes to a

great extent. Whenever the schemes are declared by HLL they are defined in Wings.

Hence, each time a sales invoice is raised automatically the scheme benefits are included

in the bill. This ensures that the retailer gets what is intended for him.

The inventory module of Wings efficiently handles stock movement and helps the RS to

keep track of the stock movement and stock balance at any point of time. The effective

reorder management resulted in maintaining sufficient stock at all times.

Wings designed flat file reports exclusively for HLL. These reports display the purchase,

sales and stock balance of the stockist. These files are updated in the HLL website. This

enables the principle company to keep abreast of the current market demands and the

stock to be sent to the distributor.

Reports as you want - The Report Writer utility enables the stockist to design and get the

report in whichever format they want it. Once the data is available Wings can represent it

in the desired format.

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Load Charts - Once the distributor generates the sales invoices of a particular day, Wings

automatically generates the load chart based on it. This chart displays the load i.e. the

quantity of each item to be loaded in the van, for each beat.

Collections - Wings has various collection modes. The stockist can enter salesman-wise,

beat-wise, date-wise, profit center-wise, product-wise and party wise collections details.

Compatibility with other software - Wings supports export and import of data. This

feature is helpful when a distributor is dealing with various principal companies and is

using different software for each principle company. The distributor can either import the

data from other software to Wings or export the data in Wings to other software to get the

consolidated reports.

3-Dimensional Reports - Wings helps to filter the reports by period, product and

customer. This enables the stockist to analyze the sales data in various aspects.

DOS Printing - Wings supports DOS printing. This makes printing faster.

Johnson & Johnson

Caring for the world, one person at a time... inspires and unites the people of Johnson & Johnson.

We embrace research and science - bringing innovative ideas, products and services to advance

the health and well-being of people. Employees of the Johnson & Johnson Family of Companies

work with partners in health care to touch the lives of over a billion people every day, throughout

the world.

Our Family of Companies comprises:

The world’s premier consumer health company

The world’s largest and most diverse medical devices and diagnostics company

The world’s fourth-largest biologics company

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And the world’s seventh-largest pharmaceuticals company

We have more than 250 operating companies in 57 countries employing 117,000 people. Our

worldwide headquarters is in New Brunswick, New Jersey, USA. To learn more about our

companies, explore the map.

Our Credo Values

The values that guide our decision making are spelled out in Our Credo. Put simply, Our Credo

challenges us to put the needs and well-being of the people we serve first.

Our Management Approach

Johnson & Johnson is a company of enduring strength. We credit our strength and endurance to a

consistent approach to managing our business, and to the character of our people.

Our Views & Positions

As a global corporation, what we believe and what we do has an impact on the challenges and

opportunities facing health care and business today.

Corporate Governance

Our Credo values guide the actions of people throughout the Johnson & Johnson Family of

Companies. These values extend to our accounting and financial reporting responsibilities.

Company Structure

See how our Family of Companies is organized.

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Our People & Diversity

People and values are our greatest assets and diversity is a central part of the cultures across the

Johnson & Johnson Family of Companies.

Our History

Johnson & Johnson was founded more than 120 years ago. Since then, we’ve brought the world

new ideas and products that have transformed human health and well-being.

Dabur India Limited

Dabur India Ltd (Dabur India), a part of the Dabur Group, was incorporated in 1975 for

manufacturing and marketing FMCG, ayurvedic and pharmaceutical products. The

pharmaceutical division of the company was demerged in 2003. In Apr 2006, three entities,

Balsara Hygeine Products Ltd, Balsara Home Products Ltd and Besta Cosmetics Ltd were

merged with Dabur India.

Dabur India operates with four divisions namely, consumer care, consumer healthcare, foods and

international business division. The consumer care caters to six FMCG segments of hair care,

oral care, health supplements, digestives, home care and skin and baby care. Some of its major

brands include, Vatika, Meswak, Hajmola, Babool and Odomos among others. Consumer

healthcare deals in ayurvedic products under the brands Honitus, Nature Care and Shankpushpi

among others. Dabur India operates its food business through Dabur Foods Ltd that offers juices,

nectars, drinks and food additives under the brand names Real, Active and Coolers among

others.

Dabur India operates nine production facilities organised around three main factories at Baddi,

HP; Pantnagar, Uttarakhand and Nepal; and six support factories at UP, Jammu, Rajasthan, MP,

WB and Dadra and Nagar Haveli. In FY07, consumer care accounted for approximately 88% of

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the company’s revenue. In May 2007, Dabur India incorporated H&B Stores Ltd, a wholly

owned subsidiary, for foraying into the retail business.

Godrej Industries Limited (GIL)

At Godrej Industries Limited (GIL), we believe that people are our principal asset. They are the

ones who create everything that's valuable to the company. All they need is the platform to do so.

We also believe in taking our people along as we forge ahead. Quality is a way of life at Godrej.

If you are looking for challenges early in your career, if you want to be someone making

important decisions, if you enjoy professional challenges, if you are interested in moving across

functions and businesses — then welcome to Godrej Industries Limited.

Working with Godrej Industries

The wide variety of businesses that GIL is involved in provides present and potential employees

plenty of opportunities to grow, as well as the cross-functional exposure to enrich and widen

their horizons.

A huge, and not always clearly visible, effort lies behind the success of any organisation. We at

GIL believe in taking our people along as we forge ahead. Total employee involvement is

embedded in the company's culture. Continuing with this tradition, we embarked on a 'total

quality management' (TQM) journey in 1995. "Quality in everything we do" was the motto of

this endeavour.

This could only have been possible if each one of us did our bit in the quest for excellence. TQM

awareness programmes, small group activities, Kaizens, and key business process improvements

became the order of the day. Today, four years down the line, quality is a way of life at Godrej

Industries. All our employees are part of an evolution born out of what we like to term 'shared

values'. These are a set of 10 values developed after deliberations by the entire GIL team.

24

Openness is central to the way the company works. Our open

appraisal system is a joint effort between the appraiser and the

person being appraised. Performance on the job is not the sole

criterion for evaluation; factors like customer orientation and

subordinate development are given due importance.

Training and development is a high-focus human resources initiative strongly supported at the

corporate level. An employee is given ample opportunities to learn and grow. Tools like '360-

degrees feedback' facilitate overall individual development.

Care and concern for fellow-employees is evident across the board in GIL. We take care of the

quality of work delivered as well as the environment in which it is executed. Our lush green,

spacious complex, which is a 'no tobacco zone', provides the right ambience to employees.

Housing facilities, a school , a library and a recreation centre are just some of the highlights of

the quality of life that we offer.

Leadership and management

Most of the senior positions in Godrej Industries are held by people who joined the company as

trainees. This speaks volumes about the company's commitment to ensuring the growth of its

employees and about the opportunities it generates. Our management systems and structures are

designed to encourage you to reach for the sky.

As the group begins to look at a broader canvas and enters 'green field' areas, new opportunities

are thrown up by the day. This in turn is making accelerated growth and promotion opportunities

at all levels a reality. The compensation structure in GIL is comparable to the best in the

industry. What is immeasurable is the work environment -- the responsibility, the challenge, the

opportunities for horizontal and vertical mobility, and the freedom and flexibility in decision-

making.

All of these positives have created an environment that is warm, friendly and extremely

conducive to professional and personal growth.

25

Introduction to the project

Reckitt Benckiser Group Plc. (Reckitt Benckiser) is principally engaged in the manufacturing

and marketing of household, cleaning, health and personal care products. The company

manufactures products related to several categories which include dishwashing, fabric care,

surface care, health, home care and personal care products and food.

There are so many manufacturing plant situated in India, which are owned by the same company.

For example:-

Himachal Pradesh

Jammu & Kashmir

Uttarakhand

Chennai etc.

Sometimes company gives the responsibility to manufacture the products to the other company,

if they are able to fulfill the demand.

There are four regional marketing offices in India, which are supposed to make the sale:-

1. New Delhi

2. Mumbai

3. Chennai

4. Kolkata

Hierarchy in Regional offices

26

There is a particular hierarchy in all the regional offices, which is responsible for all the sales.

There are only four regional managers in India, who control all the aspects of regional offices.

Company gives the responsibility of sale to the distributors and they make all the sale in their

distributed areas.

There are two ways of selling the products;-

Traditional and,

Modern Trade

In traditional way of marketing distributors appoints the DBSRs (Distributor Sales

Representatives), give them a particular area. DBSRs take orders from the shops in traditional

way of marketing and then further distributors deliver the orders on the shops. Distributors get

the monthly targets from the company. Company gives it once in a year.

Outlet Classification

27

CLASS Per Month(Rs.)

A >6000

B 2000-5000

C 500-2000

D <500

Types of Outlets

G= Grocery

GM=General Merchant

CH= Chemist

WS= Wholesaler

SSS= Self-Service Store

HW= Hardware

PS= Petty Shop

SH= Shoe Shop

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CS= Cosmetic

KA= Key Account

Wholesalers and retailers get the points on the sales. On the basis of these points they get some

extra benefits.

In Modern Trade of marketing, distributors are allowed to sell the products in all the super

markets, like- Big-baazar, Spencers, Vishal mega mart, More, Easy day.

A KSR(key-account sales representative) is appointed for all the Big-baazar stores. They

consider the availability and visibility of the product and according to the sale of all the products,

it (product) gets the percentage on racks.

Company has occupied the following percentage of all the categories:-

Floor cleaner- 40%

Toilet cleaner- 70%

Hand wash- 65%

Soap- 15%

Mortein spray- 25%

Coil and reffil- 15%

Shaving cream- 10%

Veet- 10%

There are no fix percentage of air wick, cherry and clearsil.

In Big-baazar stores, they place the orders twice in a week according to the MBQ(minimum

based quantity).

Information related to Project

29

In Delhi, there are near about 80 government stores, which are named as KB Stores (Kendriya

Bhandar). These stores neither occurs in traditional nor in modern trade.

Two years backs, there were centralize demand and order system in KB Stores but now it has

converted into decentralize. Due to decentralize selling, sale has increased from Rs.5lakhs to

Rs.20lakhs per month.

A single distributor is handling all the KB Stores of Delhi and according to the demand of all the

store, distributor deliver the order on the stores. During my summer training, I visited bear about

50 stores.

When I used to in the stores, then I used to ask to the store incharges about any type of issues

related to the company or distributor and further I used to provide it to the distributor and TSI of

the company.

I had to identified the problems occurred from the side of distributor, company officers.

Objective of the Project

30

All companies are having their own planning and business strategies but the company who is

having the best, is the most successful company among its competitors. So the company can get

success within its competitors by applying best and effective marketing strategies.

There are the following objectives of this project:-

1. To check the availability, visibility of the RB and its competitor products in KB Stores.

2. To know the impact of Retail visibility on customer’s ultimate purchase intension.

3. To find out problems faced by stores related to the RB products.

4. To study the position of the RB products in relation to the competitor products.

5. How to increase the sale in KB Stores.

Review of Literature

31

A literature review is a body of text that aims to review the critical points of current knowledge

and or methodological approaches on a particular topic. Literature reviews are secondary

sources, and as such, do not report any new or original experimental work. A good literature

review is characterized by: a logical flow of ideas; current and relevant references with

consistent, appropriate referencing style; proper use of terminology; and an unbiased and

comprehensive view of the previous research on the topic.

My project was related to government stores and company has started concentrating on these

stores now but so many studies have been done on FMCG sector, mainly to increase the sale in

rural areas.

According to Serena Jian (senior company analyst),

“Reckitt Benckiser is strong at marketing its brands to consumers.” And "Combined with good

product innovation, that helps increase brand loyalty and drive up margins."

1. Basu Purba (2004), suggested that the lifestyle of rural consumers is changing. Rural Indian

market and the marketing strategy have become the latest marketing buzzword for most of the

FMCG majors. She added the strategies of different FMCG companies for capturing rural market

like Titan’s Sonata watches, Coco Cola’s 200ml bottle, different strategies of HUL and Marico

etc. She takes into consideration the study of National Council for Applied Economic Research

(NCAER). According to the NCAER projections, the number of middle and high-income

households in rural area is expected to grow from 140 million to 190 million by 2007. In urban

India, the same is expected to grow from 65 million to 79 million. Thus, the absolute size of rural

India is expected to be double that of urban India.

2. Tognatta Pradeep (2003), suggested that, the economic growth in India's agricultural sector

in last year was over 10%, compared with 8.5% in the industrial sector. This implies a huge

market potentiality for the marketer to meet up increasing demand. Factors such as village

psyche, strong distribution network and market awareness are few prerequisites for making a

dent in the rural markets. The model is of the stolid Anglo-Dutch conglomerate Unilever Group,

which has enjoyed a century-long presence in India through its subsidiary Hindustan Lever Ltd.

32

It was Hindustan Lever that several years ago popularized the idea of selling its products in tiny

packages. Its sachets of detergent and shampoo are in great demand in Indian villages. Britannia

with its low priced Tiger brand biscuits has become some of the success story in rural marketing.

3. Aithal, K Rajesh (2004), suggested that rural markets are an important and growing market

for most products and services including telecom. The characteristics of the market in terms of

low and spread out population and limited purchasing power make it a difficult market to

capture. The Bottom of the pyramid marketing strategies and the 4 A's model of Availability,

Affordability, Acceptability and Awareness provide us with a means of developing appropriate

strategies to tackle the marketing issues for marketing telecom services in rural areas. Successful

cases like the Grameen Phone in Bangladesh and Smart Communications Inc in Philippines also

provide us with some guidelines to tackling the issue.

As per my concern of the research, it is a detail study of different FMCG products used by rural

consumers. It will provide detail information about consumer preferences towards a good

number of FMCG products which is too unique and different from those above researches.

Research Methology

Research methodology is a very organized and systematic way through which a particular case or

33

problem can be solved efficiently. It is a step-by-step logical process, which involves:

Defining a problem

Laying the objectives of the research

Sources of data

Methods of data collection

Tabulation of data

Data analysis & processing

Conclusions & Recommendations

Sources of Data

Data refers to a collection of natural phenomena, descriptors, including the results of experience,

observation or a set of premises. This may consist of nos., words or images particularly as

measurements or observations of a set of variables.

There are two sources of data:

• Primary Source

• Secondary Source

Primary Sources

This data is that the researcher collects himself. It is reliable way to collect data as it requires the

learner to interact with the source and extract information. It allows the learner to access original

& unedited information.

34

Its methods are -

Surveys

Observations

Questionnaire

Experiments

I collected data using the primary method. Data Collection Sheet was provided by the company.

Secondary Sources

Data sources are edited primary sources, second hand versions. It represent thinking of someone

else. Secondary sources take the role of analysing, explaining & combining the information from

the primary source with additional information.

Its sources are-

INTERNAL SOURCE EXTERNAL SOURCE

Sales Records Internet

Marketing activities Standardised Sources

Cost Information Electronic Published Data

Distribution Report Printed Published Data

Feed back

Analysis and Discussion

35

CUSTOMER’S CHOICE

This analysis is important to basically know the choice of those people, who live in government

society.

The people who live in government society, most of them purchase the products from KB Stores

(approximate 65%). The people who do not visit in these stores, most of them go to big-baazar

because of the good availability and good schemes (approximately 21%) and there are very less

number of persons, who go to other super stores or on the shops because there are very less

number of ordinary shops in government societies.

INFLUENCE OF KB STORES

36

81% people like to go in KB Store because of so many reasons, like- low prices, nearby home,

self-service, government store. Further I asked the reason to those 19% persons (while assuming

them as 100%), who don’t like to go in KB Stores, then they gave the following reasons.

REASON TO GO ANYWHERE ELSE

The people who do not like to go to the stores, they go to the super markets to purchase the

37

products because they get all the products there in super markets as well as more schemes than

KB Stores and bad behaviour of store people is also a problem for some people.

FREQUENCY TO GO IN KB STORES

All the government employees get their salaries on a particular date that’s why they purchase the

products in more quantity at a time. 22% people purchase the products once in a month, 29%

people go their fortnightly, 38% people purchase the products once in a weak and there are 11%

people who go their at the time of need.

REASON TO GO IN KB STORES

38

Low price is the biggest positive point of KB Stores. There are 79% people who go in KB Stores

because of low prices after that they go there because it is nearby home. There are 18% people

who like the self-service facility of the stores and only 2% people go there because of their

psychology that it is a government store.

EFFECT OF VISIBILITY

39

When I was checking the visibility of the products then I asked some persons that if they do not

get the products on racks then whether they ask for it to the store persons or not. Only 35%

people are there who ask for it to the store persons otherwise 65% people choose the same

product of another company.

SUGGESTION TO THE CONSUMER

Oftenly, In self-service stores nobody suggest or force to anybody to purchase any product (in

case of new launching). Only 10% people think that store persons tell them about new launching.

40

SALE OF ANTISEPTIC SOAPS

Most of the people use dettol soap as an antiseptic soap(approximately58%) after that savlon is

the second popular antiseptic soap(approximately 24%). Mostly people(approximately 15%) use

lifebuoy as a toilet soap and only 3% people are there who use other antiseptic soap than these

three soaps.

SALE OF TOILET CLEANERS

41

Harpic is the most selling product of Reckitt Benckiser(approximately 42%) and also it has got a

very good percentage in super markets among toilet cleaners. Sale of local toilet

cleaners(approximately 24%) are more than sanifresh and domex.

Sale of Floor Cleaner

42

When we talk about floor cleaners, then most of the middle class families prefer local toilet

cleaners.

Findings and Evaluations

43

SWOT ANALYSIS

STRENGTH

Brand Recognition and Loyality

Diversification

High Customer Satisfaction

Well Established Distribution Network

Company’s Strong and Effective Segmentation

WEAKNESSES

Dependent on Dettol and Harpic for Revenue

Less promotion

Unable to fulfill Distributors’ Demand

OPPORTUNITIES

Increasing Demand and Consumption of FMCG Goods

Increasing Demand in Rural Areas also

THREATS

Increasing Number of Competitors

Competition from both Domestic and International Markets

Conclusion

44

On the basis of analysis drawn and findings made, it can be concluded that;-

There is neck to neck competition in the FMCG Industry. Companies on large scale are

using advertising & counter advertising strategies to increase their market share.

Though, the company holds a strong position in FMCG industry with strong distribution

network, aggressive marketing effort and advertising along with attractive schemes. But

still, there exists potential markets to be exploited which need a good and well organized

sales promotion programs.

The emphasis is not only creating the market but also retaining it. The availability of right

brand at the right place, at the right time is the key for building Customer Loyalty and

satisfaction.

Availability of the products also affects the customer. In its shortage customer gets

diverted to other Brands.

Outlets visibility and product display affects the customer’s attraction. Making Customer

Brand Loyal for a product is not easy.

Proper Coordination among the wholesalers, retailers, distributor and dealer should be

practiced so that it may not affect the availability of the products.

Most of the people visit KB Stores, who live in government society.

Low price is the main reason to go in KB Stores.

Dettol and Harpic are the most selling product of Reckitt Benckiser.

Limitations of the Project

45

During the project duration the main purpose was to collect the data and interpret it with

reliability and consistency. During the project there were various constraints, which were faced,

as:-

The project was taken as a part of my summer training. As the time was limited so the

survey was confined to few stores only.

The data collected in my report also contains views and information provided by the

distributor, store persons, DBSRs, KSRs and general people. So these observations might

not be fully free from errors.

The project contains the details of some stores only so it may happen that the other stores

may reveal different facts.

The opinions of all the persons are often in opposition, non cooperating, causing

difficulty in data collection.

Lack of proper coordination sometimes results in de-motivation.

People were hesitant to disclose the true facts.

Bibliography

Books

46

Principle of Management (Kotler)

Kothari, C.R. “Research Methodology: Method and Techniques” Wishva Prakashan Pvt

Ltd.

Websites

www.google.com

http://en.wikipedia.org/wiki/Fast_moving_consumer_goods

http://www.reckittbenckiser.com/site/RKBR/Templates/Home.aspx?pageid=1

http://www.hotfrog.in/Companies/RECKITT-BENCKISER

http://suppliers.jimtrade.com/150/149733/

http://hindlatex.com/adminRight.aspx?id=21&par_id=21

http://en.wikipedia.org/wiki/Dabur

http://www.jnjindia.com/

http://www.jnj.com/connect/about-jnj/

Summary

47

As we know about the objectives of the project, then now we should know that how to achieve

those objectives. All the objectives with the proper suggestions are there in the data analysis and

discussion.

I identified some problems related to the KB Stores, which tends to suffer the sale.

Identified the following problems related to KB Stores:-

Supply Interval

Due to the high gap of ordering and delivering the product, there can be the shortage of

many products. So, distributor should consider this issue very carefully.

Supply System

They take orders at the time of delivering the items, that’s why every time they are not able

to fulfill the demand of all the stores, whichever they visit later in the day. So, distributor’s

persons should take orders earlier.

No proper display

There are no proper display of all the items in the stores but this problem does not create

from the side of distributor. This is only because of the shortage of space in the stores.

No proper supply of products, which are in schemes

There are no proper supply of those items, which are in schemes. This problem is also not

from the side of distributor because he needs to take the permission from the head office of

these stores.

Sometimes distributor does not get the items

48

Sometimes distributor does not get the item according to the demand from the side of the

company and after all, sale suffers. When I was doing my summer training then also this

problem occurred because at that time there was the shortage of Easy off Bang and

everybody was demanding that item.

Now we can say that there is the great influence of the availability and visibility of all the

products. If we will carefully consider these aspects then we can easily increase the sale.

Annexures

49

QUESTIONAIRE

Name __________________________________________

Address __________________________________________

__________________________________________

Age 15-25 26-35 36-45 Above 46

Income (yearly) Between 1 Lac to 2 Lac Between 2 Lac to 5 Lac

Above 5 Lac

Contact No. _______________________________________________

1) Where do you purchase the product from?

a)Shops b)KB Stores

c)Big-Baazar d)Other super markets

2) Do you always purchase the products from KB Stores?

a) Yes b)No

3) Why do you not go in KB Store?

a)Bad behavior of store persons b)Unavailability

c)Less schemes d)Crowd

50

4) How frequently do you come in store?

a)Anytime b)Once in a week

c)Fortnightly d)Once in a month

5) Why do come in KB Stores?

a)Low prices b)Near by home

c)Self-service store d)Government store

6) Do you ever ask for any product to the store incharge (In case you don’t find.)?

a)Yes b)No

7) Is anybody force or suggest you ever to buy any particular product?

a)Yes b)No

8) Which antiseptic soap doo you like the most?

a)Dettol b)Savlon

c)Lifebuoy d)Other

9) Which toilet cleaner do you use?

51

a)Harpic b)Sanifresh

c)Domex d)other

10) Which floor cleaner do you prefer?

a) Lizol b) Dazzl

c) Mr. Muscle d) other

Recommendations

52

The project was concerned only with providing the organization with all the necessary

information required to study the category movement of Reckitt Benckiser and its competitor

products in the form of reports incorporating all information in an analysed and summarized

form. But some critical and major issues which have been identified on account of extensive

analysis required recommendations to be put forward on the current market scenario. Few

recommendations have been listed below:-

Measures should be made in order to educate the Customer about the duplicate products.

The company should modify its advertising strategy and educate the customer about its

age old existence and enhance its brand image.

Every possible step should be taken nationwide for sales promotion measures and

campaigns of the company in context of boosting sales and brand enhancement.

In big KB Stores company should appoint a person concerned with making the customer

aware of its products and providing the necessary information of the products that how

this product would be more satisfactory or beneficial. This will help in converting

customers mind to buy ITC Products.

Activities of sub distributors should be controlled and checked in order to ensure fair

prices and distribution of schemes and incentives to small retailers to avoid discontent

among small holdings and outlet.

Suggestions

53

During the study of RB products with competitors products, I also analysed the behavior

between distributor and store incharge as well as between company’s persons and distributors.

Regarding that, some suggestions are;-

Proper Coordination among the retailers, distributor, salesman and company officers

should be practised so that it may not affect the availability of the products in the store.

Selection of skilled and trained salesman affects the sales.

Right on time concept is very important in the FMCG Industry because in the absence of

it customers purchase other company products.

Company must also take care of small retailers and small stores. Company should

develop some sales promotion schemes for them.

During my study I was also complained by some customers regarding the packaging of

Collin and the unavailability of Easy of Bang.

Television is the best media for advertising of products that may compel consumers to

buy. It is the one of the major strength of Reckitt Benckiser. Frequency of advertisement

except television should also be increased to make the consumer familiar to products.

54