EXECUTIVE SUMMARY SYNOPSIS India’s consumer market is riding the crest of the country’s economic boom. India’s fast moving consumer goods (FMCG) sector is the fourth largest sector in the economy of India with a total market size in excess of US$ 13.1 billion. If we go by statistics, roughly around 73% of the Indian population lives in the rural areas- that’s a very large market. Many giant players, both foreign as well as domestic, are competing in the market with a view to capture it. The growing consumerism in India shows the rapid increase in Indian consumer purchasing power, it shows strengths and opportunity that lies in rural Indian markets especially for FMCG products. As a result of it I have opted to undergo the training in Marico Company a leading Indian FMCG Company having excellent distribution channel and deep rural reach in India. As the major part of the market is yet to be taped one need to evolve a set of strategies and there by plans to tape the potential Indian consumer market. To capture such a great opportunity, only good product and brand awareness will not be sufficient but proper distribution channel must be there With the world moving toward's globalization and the phenomena of LPG is touching each and every country and industry its effects are also there on Indian FMCG 1
Marico Project analysing intermediaries involve in distribution channel and their satisfaction categorization through simple statistics.
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EXECUTIVE SUMMARYSYNOPSIS
India’s consumer market is riding the crest of the country’s economic boom. India’s
fast moving consumer goods (FMCG) sector is the fourth largest sector in the
economy of India with a total market size in excess of US$ 13.1 billion. If we go by
statistics, roughly around 73% of the Indian population lives in the rural areas- that’s a
very large market. Many giant players, both foreign as well as domestic, are
competing in the market with a view to capture it. The growing consumerism in India
shows the rapid increase in Indian consumer purchasing power, it shows strengths and
opportunity that lies in rural Indian markets especially for FMCG products. As a
result of it I have opted to undergo the training in Marico Company a leading Indian
FMCG Company having excellent distribution channel and deep rural reach in India.
As the major part of the market is yet to be taped one need to evolve a set of strategies
and there by plans to tape the potential Indian consumer market. To capture such a
great opportunity, only good product and brand awareness will not be sufficient but
proper distribution channel must be there
With the world moving toward's globalization and the phenomena of LPG is touching
each and every country and industry its effects are also there on Indian FMCG sector.
Thus Companies need to constantly revive their 4P's strategy to be successful in the
growing competitive Market's. Considering purely the fundamentals laid down by
Philip Kotler is suggest that you need to have Right Product Mix (Product),Proper
Pricing Strategies(Pricing),Right Promotion Offers(Promotion) and Efficient
Distribution Channel (Place) to be a Successful Company.
So in order to have a clear picture of all 4P's of Marico and especially for having
efficient distribution channel, Satisfaction Level of Retailers on Various Products as
well as other micro Parameter's plays a vital role in identifying the flaws and merits of
Marico. As a result I have conducted the Market Research of 150 retailer's associated
with marico who are giving annually business of more than Rs60,000 to the company
and are having more than 3 products of the company. Along with retailer's I also meet
30 wholesellers to assess their satisfaction level which will definitely help Marico Ltd
to improve its efficiency and thrive upon its strong Points.
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The project was conducted with the help of Marico Ltd. Presently company has two
dif distribution channel, one for urban areas and another for rural areas.
My primary objective for this project is to “Identify the satisfaction level of retailer's& Wholeseller's in Rural Area”
I have also identified the satisfactions level of retailers for different Brand/Products as
well as also studied the Parameters for each brand, which clearly suggest what are the
strength's of the company and where the company is lacking and what improvement it
need to do in order to achieve high satisfaction level among the Retailer's who are
Key in the Distribution channel of the Company.
Approaching different intermediaries, I have collected important data using pre-
designed questionnaire. By applying different statistical tools I have found some
useful information, which will definitely help the company to improve the
effectiveness of the distribution channel. Tools used are Weighted Average, Chi
Square and ANOVA Analysis
While doing the project, I have to also work as sales management trainee, which
gave me a great real time experience of marketing and selling in the rural market. The
meeting with retailers showed me the complexities of Rural FMCG market and I learn
a lot of skills from ground level sales people and also working with ASM of the
Company. The Real time Experience that I got will definitely will help me immensely
in future in the field of marketing...
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1.1 SECTOR IDENTIFICATION
If we go by statistics, roughly around 73% of the Indian population lives in the
rural areas. That’s almost 12% of the world population.
There are 600,000 villages in India. 23% of all villages account for 63% of the
total rural population. So you can contact 63% of 680 million or 700 million
population by simply contacting 130000 villages - that’s a very large market
Since this theoretically constitutes a huge market potential, marketers will tend
to throw in their hooks to catch the fish. Now with the urban demand hitting
the plateau, rural markets are gaining more importance and we cannot ignore
it.
Hindustan Lever’s sales turnover in rural market alone is over five thousand
Crores - that’s a whopping fifty percent of the total sales turnover. So we can
imagine how much potential the rural market has?
To get the maximum out of this opportunity, all organization needs to plan
strategically.
What has happened from 1990 onwards is that advertisers spent a lot of on and
by default they covered some rural markets as well. As a bonus, these
advertisers started getting certain returns from the rural market - bonus of
investment, which they had actually made for the urban market
What marketers and advertisers are today worried about is how to develop a
scalable model of influencing the rural consumers’ mind over a large period of
time and keep it going, given limited or reasonable budgets to make this
happen.
Many companies are entering to the rural market and the potential of the
market encourage me to do project work in the rural market.
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ABOUT FMCG SECTOR INDIA
Markets all over the world have been on a roll in 2003 and the Indian bourses are no
exception having gained almost 60% in 2003. During this period, while there are
sectors that have outperformed this benchmark index, there are also sectors that have
under performed. FMCG registered gains of just 33% on the BSE FMCG Index last
year. At the macro level, Indian economy is poised to remained buoyant and grow at
more than 10%. The economic growth would impact large proportions of the
population thus leading to more money in the hands of the consumer. Changes in
demographic composition of the population and thus the market would also continue
to impact the FMCG industry. According to a survey by 2013, Indians under 20 are
estimated to make up 33% of the population - and wield proportionately higher
spending power. Means, companies that are able to influence and excite such
consumers would be those that win in the market place The Indian FMCG market has
been divided for a long time between the organized sector and the unorganized sector.
While the latter has been crowded by a large number of local players, competing on
margins, the former has varied between a two-player-scenario to a multi-player one.
Unlike the U.S. market for fast moving consumer goods (FMCG), which is dominated
by a handful of global players, India's Rs.460 billion FMCG market remains highly
fragmented with roughly half the market going to unbranded, unpackaged home made
products. This presents a tremendous opportunity for makers of branded products who
can convert consumers to branded products. However, successfully launching and
growing market share around a branded product in India presents tremendous
challenges. Take distribution as an example. India is home to six million retail outlets
and super markets virtually do not exist. This makes logistics particularly for new
players extremely difficult. Other challenges of similar magnitude exist across the
FMCG supply chain. The fact is that FMCG is a structurally unattractive industry in
which to participate. Even so, the opportunity keeps FMCG makers trying.
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1 STRUCTURAL ANALYSIS OF FMCG INDUSTRY
1. The products often cater to 3 very distinct but usually wanted for aspects -
necessity, comfort, luxury. They meet the demands of the entire cross section
of population. Price and income elasticity of demand varies across products
and consumers.
2. Individual items are of small value (small SKU's) although all FMCG products
put together account for a significant part of the consumer's budget.
3. The consumer spends little time on the purchase decision. He seldom ever
looks at the technical specifications. Brand loyalties or recommendations of
4. Limited inventory of these products (many of which are perishable) are kept
by consumer and prefers to purchase them frequently, as and when required.
5. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word of mouth.
2. Marketing and Distribution
1. High Initial Launch Cost - New products require a large front-ended
investment in product development, market research, test marketing and
launch. Creating awareness and develop franchise for a new brand requires
enormous initial expenditure on launch advertisements, free samples and
product promotions. Launch costs are as high as 30-100% of revenue in the
first year. For established brands, advertisement expenditure varies from 3 -
12% depending on the categories.
2. Limited Mass Media Options - The challenge associated with the launch
and/or brand-building initiatives is that few no mass media options. TV
reaches 67% of urban consumers and 33% of rural consumers. Alternatives
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like wall paintings, theatres, video vehicles, special packaging and consumer
promotions become an expensive but required activity associated with a
successful FMCG.
3. Huge Distribution Network - India is home to six million retail outlets, including 2 million in 3,160 towns and four million in 627,000 villages. Super markets virtually do not exist in India. This makes logistics particularly for new players extremely difficult. It also makes new product launches difficult since retailers are reluctant to allocate resources and time to slow moving products. Critical factors for success are the ability to build, develop, and maintain a robust distribution network.
3 Competitions
1. Significant Presence of Unorganized Sector - Factors that enable small,
unorganized players with local presence to flourish include the following:
2. Basic technology for most products is fairly simple and easily available.
3. The small-scale sector in India enjoys exemption/ lower rates of excise duty,
sales tax etc. This makes them more price competitive vis-à-vis the organized
sector.
4. A highly scattered market and poor transport infrastructure limits the ability of
MNCs and national players to reach out to remote rural areas and small towns.
5. Low brand awareness enables local players to market their spurious look-alike
brands.
6. Lower overheads due to limited geography, family management, focused
product lines and minimal expenditure on marketing.
4 Problem present in Sector
PROBLEMS PREVAILING IN THE PARICULAR SECTOR
Low education level.
Less developed infrastructure.
In rural markets, brands are non-existent.
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They identify FMCG by three things -primarily by color, visuals of
animals and birds and by numbers. So a 333, 777, pila hathi, lal saboon -
these are the kind of terms with which they identify brands. They buy those
three things: colors, numbers and visuals.
There are number of cases which suggest that to sell brands in the rural
market, it is necessary to simultaneously educate the consumers. For example,
villagers were found using shampoo for brushing teeth, toothpaste for washing
hair, and these are real life examples, not stories being created. They don’t
know what these shampoo sachets stand for. So if you have to create brand
communication, marketing efforts must be supported by education.
Longer credit period requirement.
We need a set of people who understand the ethos of the rural market - people
who understand the social fabric, who understand how the rural consumer
interacts with the various categories because we believe that we do need a
different level of understanding for tackling this market.
Rural retailers are far less specialized than their urban counterparts and carry a
wider range of products. Since frequent delivery is not possible in their part of
the world, they tend to carry only a single brand in each product category.
And, usually, the brands that are first on the rural shelves become synonymous
with product category and are difficult to dislodge.
ABOUT INDIAN HAIR OIL & HAIR CARE MARKET SIZE IN RUPEES
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ABOUT MARICO MARKET SHARE
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INTRODUCTION OF COMPANY
Marico is a leading Indian Group in Consumer Products and Services in the
Global Beauty and Wellness space. Marico’s Products and Services in Hair care,
Skin Care and Healthy Foods generated a Turnover of about Rs.13.6 billion (about
USD 380 Million) during 2006-07. Marico markets well-known brands such as
Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive,
Manjal, Kaya, Sundari, Aromatic, Camelia, Fiancee and HairCode. Marico’s
brands and their extensions occupy leadership positions with significant market
shares in most categories- Coconut Oil, Hair Oils, Post Wash Hair Care, Anti-lice
Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present
in the Skin Care Solutions segment through Kaya Skin Clinics (31 in India and the
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Middle East), the Sundari range of Spa skin care products (in the USA & other
countries) and its soap franchise (in India and Bangladesh).
Marico's branded products are also present in Bangladesh, other SAARC
countries, the Middle East and Egypt. The Overseas Sales franchise of Marico’s
Consumer Products (whether as exports from India or as local operations in a
foreign country) is one of the largest amongst Indian Companies and is entirely in
branded products and services. Marico was selected as one of the eight Indian
companies in S & P's list of Challenger Companies from various nations,
compiled globally by Standard & Poor's in June 2007.
Marico has also won various other Awards such as the following:
3 top Awards instituted by CNBC-TV18, U21 Global and Watson Wyatt
Worldwide, in following categories: India’s Employer of Choice for 2007 ,
Award for HR Excellence & Award for Best Employer in the Consumer
Products and Healthcare Sector.
Gold Effie (2007) for its Corporate campaign and a Bronze Effie (2007) for
Saffola.
Kaya - Best Retailer in the Beauty and Fitness category, India retail Forum
(September 2007)
NDTV Profit - Business Leadership Award, FMCG Personal Hygiene
Category (July 2007).
One of India's 10 best marketers (Business Today September 2006).
Brand Leadership Award at the India Brand Summit 2006 (September 2006).
Kaya - Retailer of The Year Award (for the 2nd consecutive Year) at India
Retail Summit 2006.
The Gulf Marketing Review Award in the Middle East 2006.
Every month, over 70 Million consumer packs from Marico reach
approximately 130 Million consumers in about 23 Million households,
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through a widespread distribution network of more than 2.3 Million outlets in
India and overseas.
Marico’s focus on sustainable profitable growth is manifest through its
consistent financial performance – a CAGR of 19% in Turnover and 19% in
Profits over the past 3 years- while setting a record of several consecutive
quarters of year on year growth- 32 for Profits and 28 for Sales.
VALUES OF MARICO INDUSTRY
Opportunity seeking
Bias for Action
Consumer Centric
Excellence
Innovation
openness & transparency
Global outlook
Boundary lessness
Marico has a set of articulated values that were created at the inception of the
organization, revisited and modified once in the year 1997 and lately in 2003, through
the collective wisdom of Mariconians. The values since then have been an integral
part of the workingofallMariconians.
Our values are preferred practices that are employed in pursuit of our Business
Direction. They sum up the philosophy that will build the culture to drive business
growth.
How Marico structured
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A Flat Structure:
At Marico, we are an organisation, which is flat with only five levels of reporting
between the Managing Director and an operator on the shop floor.
We believe that a flat structure helps us in being more responsive to the environment
while providing enriched roles for our members. Our structure defines clear roles and
supporting relationships but is by no means rigid. Keeping in mind the fast and ever
changing business environs, Marico's structure is dynamic and constantly evolving.
Profit Centers:
In order to provide focus to its business operations, Marico has organised its
businesses into the following business segments or profit centers:
Consumer Products, comprising the operations of Marico Limited and Marico
Bangladesh Limited. This division manufactures & markets Marico's 10 leading
consumer product brands like Parachute, Saffola, etc.Aesthetics Services, comprising
operations of Kaya Skin Clinics under the banner of Kaya Skin Care Ltd. Kaya Skin
Clinics offer US FDA approved scientific dermatological procedures that are
customized to suit the Indian skin. Global Ayurvedics, comprising the operation of
Sundari LLC in the US. Sundari markets the Sundari range of Ayurvedic skin care
products in the US & other parts of the world. All the above profit centers have their
dedicated marketing teams, distribution channels, sales force and backroom facilities.
Finance:The company is strongly supported by the Finance Division, which handles the legal,
treasury, tax, control systems and management information support. Additionally,
every profit center has its own dedicated finance cell.
HR:Equal support comes from our HRD team, which expends its energies, formulating
and building strategies to build a stable and high - talent organisation.The innovations
and the quest for excellence at Marico continue unabated. Even as the success stories
continue, the focus from the consumer never shifts.
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MARICO'S BUSINESS DIRECTION –
2010
We commit ourselves to improving the quality of people's lives in several parts of the
world, through branded fast moving consumer products and services in Personal and
Health Care sectors.
We shall offer brands that enhance the appeal and nourishment of hair and skin
through distinctive products and services based on the goodness of coconut, other
natural substances and the underlying science of hair care and skin care.
We shall make available brands that contribute to healthy living, through, both
products drawn from agriculture offered in natural or processed forms, and services.
We shall develop, in parts of the world beyond the Indian Subcontinent, a franchise
for our branded products and services.
We shall aim to be a leader in each of our businesses through heightened sensitivity to
consumer needs, setting up of new standards in the delivery and quality of products
and services and processes of continuous learning and improvement.
We shall share our prosperity amongst members, shareholders and associates, who
contribute in improving our equity and market value. We shall acquire the stature of a
friendly corporate citizen, contributing to the betterment of neighborhood
communities, where we are significantly present.
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MARICO BRAND'S PROFILE
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MARICO BRAND PORTFOLIO
Hair CareCategory
Hair Oil Category
Edible Oil Category
Other Products
Parachute Hair & Care
Shanti Amla
After Shower
Silk & Shine
Mediker
Saffola Oil
SweekarOil
Revive Instant Starch
Sil Jam
Therapies
About marico brand
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MARICO PRODUCT PORTFOLIO
Parachute Hair & Care
Silk & Shine
Saffola Sweekar Mediker
Nihar
Revive
Parachute Regular/Standard
Parachute Advanced
Parachute Jasmine
Parachute after Shower
Parachute Therapie
Saffola Gold
Saffola Tasty Blend
Saffola Kardi
Saffola Salt
Shanti Amla Hair Oil
Product PROFILE
(1) PARACHUTE
Parachute is premium edible grade oil, a market leader in its category. Synonymous
with pure coconut oil in the market, arachute is positioned on the platform of purity.
In fact over time it has become the gold standard for purity. From a loosely available
commodity to a path-breaking brand, Parachute pioneered the switch from coconut oil
sold in tins to plastic.
Flip Top Cap for Parachute bottles to enhance
the safety and protect the purity of Parachute
Easy Jar of Parachute to facilitate usage
especially during winters
Parachute Mini - a bottle shaped small pack
being sold at an MRP of Re. 1
20 ml Parachute - a Rs 3 SKU that enables
loose oil users to upgrade to Parachute.
1.2 PARACHUTE ADVANCED
Parachute Advansed refined hair oil (with fruity perfume) is the latest introduction
from Marico. Parachute has always strived to remain relevant to every new
generation. It is a brand that is backed by years of trust and heritage and it aims at
using the same equity to appeal to the young Indian consumer. Launched in 2004, the
Parachute Advansed refined hair oil comes packed in a sleek looking, light blue
translucent bottle
1.3 PARACHUTE JASMINEParachute Jasmine is a light, fragrant oil that can be used everyday to nourish and
sytle your hair. It has the goodness of pure coconut oil and the essence of fragrant
jasmine to give you healthy, non-sticky, free flowing and fragrant hair. Parachute
Jasmine is the most successful new brand launch from Marico's stable in the recent
past. The strong product proposition backed by insightful communication, strong
distribution and activation support has seen dynamic growth with 63% CAGR in the
past 4 years. It is now a strong No. 2 player in the growing VACNO (Value Added
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Coconut Oil) Sensorial sub-category with a 30%* market share. (*A.C Nielsen Nov
03).
1.4 Parachute After shower Hair CreamParachute After shower Hair Cream for men, is a hair styling cream that can be used
daily to style your hair. It has Aqua Moisturizers & since it is made in an oil-in-water
emulsion, it is completely non-sticky. Parachute After shower Hair Cream contains
coconut milk proteins, which keeps hair nourished. The need for males to look good
has never been more important. More and more males in India are realizing the
importance of “great looking hair” & want a product that can be used to “style hair
daily.” Parachute Aftershower Hair Cream was launched in Mumbai in March 2003,
as a prototype (test-market). Within 2 months of its launch in Mumbai, it grabbed an
impressive 28% market share, which it has increased (October'03 %MS is 36%). It
was launched pan India in August 2003. Within 3 months of its launch (October
2003), it has touched a 23% market share of the All India hair cream market
1.3PARACHUTE THERAPIEParachute Therapie Hair Fall Solution is a unique scientific formulation from Marico,
developed after 6 years of intensive research, product development and consumer
trial. It is completely safe to use and helps control hair fall naturally. All that is to be
done is to apply it thrice a week, and leave it on overnight. 77% of users have reported
reduction in hairfall in 43# days with the use of 1 bottle. 27% users also reported
softer hair.
(2) HAIR & CARE
Marico’s Hair & Care, a pleasantly perfumed non-sticky hair oil is a strong brand in
its category. It is positioned on the platform of being the lightest perfumed hair oil
offering both “Style & Nourishment”. Hair & Care is upto 30% non sticky than any
other hair oil & is enriched with “Herbal Proteins”, which nourishes hair with their
natural goodness. Herbal Proteins are extracted from Neem & Tulsi, a process
patented by Marico
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(3) SHANTI BADAM AMLA
Launched in April 2003, Shanti Amla marks Marico's successful entry in the Amla+
Hair Oil market. It is launched on the platform of "Goodness of Badam with Amla".
(4) Oil of Malabar
Oil of Malabar is premium quality edible grade coconut oil. This brand is one of
Marico's recent acquisitions, having been bought in November 1999. Oil of Malabar,
as the name suggests, is positioned on purity - as the oil from the land of coconuts.
(3) Mediker
Mediker, a three-decade-old brand was acquired by Marico from Procter & Gamble,
in July 1999, in the shampoo format. Mediker is a brand for treating lice and a market
leader in its category. Mediker today has three products in its portfolio: Mediker Anti
Lice treatment, Mediker Anti Lice Oil and Mediker Plus Anti Lice Oil
(6) REVIVE INSTANT STARCH
Revive is an Instant Cold Water Starch, the ONLY product of its kind. Formulated
with the latest International technology to give clothes uniform, strong starching, it is
uniquely positioned on the platform of making your 'Clothes Look Like New".
(7) Sweekar (Refined Sunflower Oil)
Sweekar is a national brand comprising of Refined Sunflower Oil. Sweekar has
become synonymous with good quality light edible oil. It is positioned as a light and
healthy cooking medium.
(8) SAFFOLA
Saffola Kardi
Saffola is made from the finest quality natural kardi seeds. Kardi oil has the highest
amount of Polyunsaturated Fatty Acid amongst all vegetable oils. Saffola when taken
as a part of a low saturated fat diet may help reduce cholesterol levels. Lowering of
cholesterol is known to reduce the risk of heart disease (C.H.D).
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Saffola Gold - Dil Ko Rakhiye Jawan
Saffola Gold has the internationally proven formula of 70% Rice Bran Oil (RBO)
and 30% of Safflower Oil (Kardi oil). This has also been proven effective in
Indian research.
(9 ) Sil Jam
Sil is a processed food brand. It has a wide range of exciting products such as
Jams, Sauces, Baked Beans, Chinese Vinegar, Sweet Corn Soup and Mayonnaise.
Sil stands for products that offer "Lip-Smakin' Goodness".
BRAND OF COMPANY AND CUSTOMER
FOCUS
BRANDS TARGETED CUSTOMER'S
PARACHUTE Primary Target Women Of All Age's
PARACHUTE ADVANCED
Young Girls (College & School Going)
HAIR & CARE Appealing To Both Men & Women of All Age's
Primary User the Young Age Group
SHANTI AMLA Customer Looking for Value for Money (H.OIL+Badam)
SILK & SHINE Primary Target Female Of age 18 – 34 (SEC, AB)
AFTER SHOWER Primary Target Young Males 18 – 34 (SEC.AB)
MEDIKER Young Children Age Group 3-13 (Due to Lice Problem)
SWEEKAR Primary Target Housewives (Due to Economic+Healthy
Life for Family)
SAFFOLA All Health Conscious Consumers (Specially for Heart
Patient's)
REVIVE Housewives of Urban Area (Higher & Middle Class).
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3.1 VISUALIZATION OF HOW WORK IS CARRIED OUT
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Research Design
Formulating Research Objective
Conclusion & Suggestions
Interpretation
Data Collection by Field survey
Sampling Plan
Data Collection Design
Processing & Analyzing
Problem Statement
1) PROBLEM STATEMENT
I was given an opportunity to work with Marico as a Sales Management trainee
during my winter project that lead me to learn a lot and identify the Problem,
especially in their rural distribution line. To have effective distribution, especially for
FMCG Company like Marico it should take utmost care of the Intermediaries involve
in the process of moving the product from the Production House to Ultimately the
End User. For this a company need's to have satisfied Intermediaries (i.e.
Stockiest,Wholeseller's & Retailer's). Thus in order to assess their satisfactions level
on different parameter's I have undertaken a Market research with Objective of
Assessing the "Satisfaction Level of Retailer's & Wholeseller's" for the area of
Sanjan,Vapi,Udwada & Killa Pardi along with some small town's in rural area's.
The Following factors lead me to do so:
Sales of Rural Area was Slowly Decreasing, Per Retailer
Business (Per Annum) was also Declining Marginally.
During my training period I Personally felt that retailers
were not completely satisfied by marico on various
parameter's
Company wants to Identify it Flaws in Delivery, Product
Defects,& many other factors specified in
Questionnaire.
Company wants to know the most preferred Trade
Promotion offer by the retailers.
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2) RESEARCH OBJECTIVE: For any fmcg company to have efficient distribution channel needs to have satisfied
intermediaries, so that they hold with company products and provide them to end user.
Thus I selected my research objective as:
"Identifying Satisfaction Level's of Retailers & Wholeseller's"
Sub Objectives are as under:
To Identify the area of service in which company needs to Improve.
To identify the Strengths/Weakness of Company delivery system in rural
area.
To know whether Wholeseller is able to satisfy the retailers need in their
specific area or not.
To help the Company in designing proper strategies for rural area.
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3 research design
3.1 Purpose of study: - Descriptive
The objective of the study is that "Identifying Satisfaction Level's of
Retailers & Wholeseller's"The study focuses on the satisfaction level for
different products. As well as on other parameter's such as Commission, Delivery
mechanism, Sales Force, Credit Period.etc.which are very crucial in assessing the
satisfaction level and for identification of strength's of marico and flaws where the
company need's to be improve. However, study may not focus why this factors effects
the individual’s satisfaction level regarding different parameters and exactly up to
what degree.
3.2 Degree of research question crystallization: - Exploratory study
As per my objective of the research, the research questions would try to find out the
current situation in the market regarding the satisfaction level of retailers and
Wholeseller's. Moreover, the hypothesis is not pre-defined here, but it would be
define during the study. Here research problem is also general.
3.3 Research control of variables: - Ex post facto design
I am reporting what has actually happened in the market and what is still happening in
the market specifically in my sampling area. I personally do not have any control on
responses and variation in the sense of being able to manipulate them. I have also not
influence any variables, to do so to introduce bias on my side.
3.4 Time dimension: - Cross-sectional
Here the study will be carried out once and it would represent a snapshot of one point
in time. Time duration, in which study must be competed, is the limitation and that is
why the cross-sectional is the best alternative.
3.5 Method of data collection: - Interrogation & Personal Interview
Based on my initial observation, I have prepared a questionnaire to collect the
response from retailers and whole sellers as primary data. Versatility of the
questionnaire will help to cover almost all related factors impacting the satisfaction of
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the target sample. Interrogation takes less time than observation and gives information
that is more purposeful
.
3.6 Topical scope:- Statistical study
This study attempts to capture a population’s characteristics by making interference
from a sample’s characteristics. Hypothesis will be tested quantitatively.
Generalization about findings will be presented based on representative ness of
sample.
3.7 Research environment: Field study.
Survey is the main part of the study and primary data collection. So that the study will
be carried out in field, I have gone to the market and interviewing retailer's and
Wholeseller's in the area of Sanjan,Bhilad,Sarigam,Udwada,Vapi,Killa Pardi and
other interior villages associated to this towns.
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4 DATA COLLECTION & DESIGN
4.1 Data source: Primary source
To satisfy the objective of the research it is necessary to get the response from the
respondents, which act as primary source of data. I have collected Primary data by
personally surveying Retailer's & Wholeseller's in the sampling area specified.
4.2 Approach: Interview (Personal Contact)
4.3 Instrument: Questionnaire
Questionnaires Designing:
It is the most crucial part of any market research. I have taken a due care in
designing the Questionnaire for my research. I have meet more than 200 retailers
during my training period in order to learn the Order taking Mechanism, POP
Displays, Competitive Products, Retailers Attitude towards sales force etc.
Even from Area Sales Manager I identified various Parameters to be listed in my
questionnaire's have taken utmost care in deciding right question, correct
sequence, what should be wording of each & layout of questionnaire as a whole.
Type of Questionnaire: Structured Non Disguised
I have arranged the questions in a specific order to get the facts and the
interviewer be asked to response strictly in accordance with a pre-arranged order.
The objective of the survey was disclosed every time before getting the response
from the respondent .
Type of Question: Close Ended
Number of questions: 11 (For Retailer's) 4 (For Wholeseller's)
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5 SAMPLING PLAN
Sampling Area :Sanjan to Killa Pardi (Rural Line)
Sample Population : Retailer's and wholesalers of the south Gujarat rural
Distribution Line.
Sampling Area : Sanjan to Killa Pardi (Rural Line)
Sample Size : 150 Retailers + 30 Wholeseller
Method Of Data Collection : Personal Interview
Sampling technique : Convenience Sampling
26
27
QUESTIONNAIRE ANALYSIS(of retailers)
Q1). From how long you are associated with the company? < 5 years 5 -10 years 10-15 years >15 years
CHART 1 Association Of Retailers with Company
1327
71
39
01020304050607080
Responses
<5 5--10 10--15 > 15
No Of Years
ASSOCIATION WITH COMPANY
Findings: From the above analysis it has been fond that majority of the respondents (i.e.
Retailers) 47% of them are associated with the company from long term i.e. 10 – 15
Years, 26% of them are associated from more than 15 yrs,18% of them since 5-10 yrs
and 9% of them say less than 5 years.
Interpretation Company is having retailer's Base that is associated with company since decades
that shows company is having a good relationship with the intermediaries.
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. Q2) Are you satisfied with the performance of Companies Product's/Brands in the market?Indicate (1: Highly Satisfied & 5: Highly Dissatisfied)Product's/Brand's 1 2 3 4 5 Weighted
CHART – 3 Satisfactions of Retailers for Parachute Brand
Satisfaction Level
701
615 612 605 601
150
450
750
Attributes
To
tal
po
ints
Total points 701 615 612 605 601
Packaging P.Varities Commisio T.P Offers Pricing
Findings: From the above analysis it has been found that Parachute was rated as satisfied brand by the retailers. The score of different Parameters is above the average score.
Interpretation: Retailers are satisfied with brand Parachute. Overall Score of Parachute in Q1 was also above average and it score on all
parameters is also above average. Thus it can be said that it is a successful brand.
CHART – 4 Satisfactions of Retailers for Hair & Care Brand
Satisfaction Level
611
302
621 605 605
150
450
750
Attributes
To
tal
po
ints
Total points 611 302 621 605 605
Packaging P.Varities Commision T.P Offers Pricing
Findings: From the above chart it could be analyzed that retailers are satisfied by Hair & Care
brand on almost all attributes as their score is above average score, but retailers are
not satisfied with product varities in hair & care as it score is less than average score.
Interpretation: Hair & Care is a brand by which majority of retailers are satisfied. Retailers are not satisfied with product varities.Hair & Care has only 2 variants
thus retailers want more variant in the Product.
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3. SHANTI AMLA (Score 342)Rating (1:V.Good & 5: Very Bad).
CHART – 20 Evaluations of Services Provided by Stockiest to Wholeseller
53
124115
55
96
76
95
30
150
Series1 124 115 55 96 76 95
Van Delivery
Order taking
claim settleme
Pr.Availability
Credit Alloted
Discount/Margin
Findings:
From the above analysis of W.Score for different services provided by the
stockiest to Wholeseller's it is analysed that services like V.Deliver,Order Taking,
have score more than 100 which is above average score
Other Services like C.Settlement,Credit Period allotted and discount margin have
scored less than 90 which is below the average score
Product availability is also 96 points.
Interpretation:
Wh.sellers has rated V.good to van delivery by majority of them it shows they are
satisfied by the service.
Order taking is also rated V.good it also shows Wh.sellers are satisfied
Claim Settlement has got least point rated Bad by majority of respondents. There
is some problem in the claim settlement system and Wh.sellers are not satisfied
Credit Period allotted by stockiest to them is perceived less thus it is rated bad by
majority of respondent showing they are dissatisfied by credit period allotted
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Discount/P.Margin & Product availability given to Wholeseller's is perceived to
be average as score shows that it is just up the average score.
Q3) How often you buy the marico products from other Supplier and not of your
area?
Mostly Sometimes
Rarely Never
Mostly 0Sometimes 8Rarely 22Never 0
Stockiest of U.Area 7Wh.sellers of U.Area 2
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Stockiest of other R.Area 21Wh.sellers of other R.Area 0
CHART – 20 Wholesellers Purchasing Frequency & Destination other than Area Stockiest
Stockiest of U.Area23%
Wh.sellers of U.Area
7%
Stockiest of other R.Area
70%
Sometimes27%
Rarely73%
Findings:
Form the above analysis it could be identifies that Wholeseller's purchase product
from the other area which happens rarely and according to 8 respond ants it happens
sometimes. Most preferred destination for purchasing is Stockiest of other rural area
for most of the wholesalers.
Interpretation:
Product Availability with the sockets is a area of Concern for the Company. Most of the times local Wholeseller has to purchase products from other rural
stockiest in order to meet the retailers order. There seems a problem between C& F agents& Stockiest in order Taking and
delivery which need to be readdressed by the company.
Q4) Which are the Product's that you buy from the other suppliers majority of times other than the stockiest of your own area? (More than 1 response)
CHART – 21 Category of Products that are unavailable from local Stockiest
56
3
3618
8
Hair Oil Category
Hair Care Category
Edible Oil Category
Other Products
Findings:
As from the above analysis it has been found out that majority of retailers buy the hair
care product's from other stockiest as it has 36 responses, edible oil is bought from
other location according to 18 responses.
Interpretation:
It can be said that the Hair Care category that includes silk & shine, Mediker, &
After shower are the products which are not efficiently distributed by the company
The problem might be at C & F agent, or stockiest that the company needs to
identify and work upon it so that distribution of such products cab be turn in lieu
of demand from the Wholeseller's and local retailers.
Q5) Approximately how much of your order from retailers are impacted/affected due to cutting problem or defective products supplied to you?
0 - 5% 5 - 10%
10 – 15% 15 – 20%
0-5 205-10 8
10-15 2
15-20 0
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CHART 22 – Percent of Order Loss to Wholesellers due to Defective/Cutting Problem
20
8
2 00
5
10
15
20
25
0-5 5-- 10 10-- 15 15-20
Percentage Of Order Loss (PA)
Res
po
nse
s
Findings:
From the responses it could be anlysied that wholesleers average business or order are affected by 0-5% according to 20 responses, 5-10% according to 8 repsonses
Interpretation: The cutting problem is definitely impacting the wholesalers business
Wholeseller's order are not met in time in return it impacts retailers order and
ultimately product availability to end user
Company shoulds try and bring down the percentage defect in product that
may cause due to transportation, improper handling or packaging etc
HYPOTHESIS TESTING
Null hypo: Less than 10% of sale is affected due to defective products or cutting problem