Project Report on Vivels Fairness Cream

A STUDY OF VIVEL ACTIVE FAIR ACROSS VARIOUS

CHANNELS

A PROJECT REPORT

Submitted by

KAVYA JAIN

BATCH (2010-12)

In partial fulfillment for the award of the diploma

Of

POST GRADUATE DIPLOMA OF MANAGEMENT STUDIES

JAGAN INSTITUTE OF MANAGEMENT STUDIES

(JAIPUR)

JULY, 2011

BONAFIDE CERTIFICATE

Certified that this project report “A study of Vivel Active Fair across various channels” is

the Bonafide work of “KAVYA JAIN” of PGDM Batch 2010-2012 who carried out the project

work under my supervision.

SIGNATURE

Vaibhav Pandey

Corporate Guide

Assistant Manager

ITC ltd

Office No. 201,

Durlabh Chambers,D-24,

Prithviraj road,C-Scheme, Jaipur

DATE:

SIGNATURE

Dr. Mayank Agarwal

Assistant Professor

Jagan Institute of Management Studies (JIMS)

IP-2&3, Phase-IV, Sitapura Industrial Area,Jaipur

DATE:

ACKNOWLEDGEMENT

I am grateful to “Mr. Vaibhav Pandey” whose encouragement, guidance and support from the

initial to the final level enabled me to develop an understanding of the subject.

I am grateful to “Dr. Mayank Agarwal” whose guidance enabled me to complete the project as

per requirements.

Lastly, I offer my regards and blessing to all of those who supported me in any respect during the

completion of the project.

SIGNATURE

Kavya Jain

Student

Batch

PGDM (2010-2012)

DATE:

TABLE OF CONTENTS

1. Cover Page & Title Page

2. Bonafide Certificate

3. Acknowledgement

4. Table of Contents

5. Abstract

6. Introduction

6.1. FMCG

6.2. Personal Care

7. ITC

7.1. History and Evolution

7.2. Vision Statement

7.3. Mission Statement

7.4. Positioning Statement

7.5. ITC Corporate Strategies

7.6. ITC Business Portfolio

7.7. ITC Personal Care Products

7.8. The Organization and Hierarchical Structure in ITC

7.9. ITC FMCG supply chain

7.10. ITC SWOT

8. Competitors

8.1. HUL-Fair & Lovely

8.2. Other competitors

9. Objective of the study

10. The process of New Product Launch at ITC

11. Types of outlets and their placement norms

12. Study on performance of Vivel Active Fair

12.1. Research methodology

12.2. Sampling Methodology

12.3. Sampling

12.4. Sampling plan for trade feedback

12.5. Sampling plan for customer feedback

12.6. Data collection

12.7. Tools and techniques

12.8. Instruments

12.9. Tools and techniques for analysis

13. Analysis and Findings

13.1. Nielson New Product Launch Evaluator

13.1.1. Impact

13.1.2. Execution

13.1.3. Trial

13.1.4. Repeat

14. Recommendations

15. Retailer’s questionnaire

16. Customer’s questionnaire

17. Bibliography

ABSTRACT

ITC has launched Vivel Active Fair under the VIVEL brand in Rajasthan. The report is an

earnest endeavor made to understand the performance and acceptance of Vivel Active Fair in

Rajasthan and simultaneously ascertain its visibility and availability on the general trade outlets.

I was required to conduct an analysis of its launch and repeat sales performance in Rajasthan,

which is divided into 8 sections where it has 48 wholesale dealer towns.

During the course of study I visited 133 retail outlets in Raipur section, which is shared amongst

5 wholesale dealers, and conducted personal interviews with the retailers to find out about how is

Vivel Active Fair selling, what are the customer’s response, what are the repeat sales etc.

Interview also focused on the problems faced by the retailers with respect to services by ITC.

Also the motive of research was to also ascertain promotional tools for marketing and provide

recommendations for the same.

Research also included studying the behavior of consumers, about their preferences for fairness

creams and to ascertain the overall buying behavior of consumers with the help of questionnaire.

INTRODUCTION

FMCG

The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the

country and over the years has been growing at a very steady pace. The sector consists of

consumer non-durable products which broadly consists, personal care, household care and food

& beverages. The Indian FMCG industry is largely classified as organized and unorganized. This

sector is also buoyed by intense competition. Besides competition, this industry is also marked

by a robust distribution network coupled with increasing influx of MNCs across the entire value

chain. This sector continues to remain highly fragmented.

FMCG industry provides a wide range of consumables and accordingly the amount of money

circulated against FMCG products is also very high. The competition among FMCG

manufacturers is also growing and as a result of this, investment in FMCG industry is also

increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector

with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by

2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of

Gross Domestic Product (GDP).

INDUSTRY CLASSIFICATION

The FMCG industry is volume driven and is characterized by low margins. The products are

branded and backed by marketing, heavy advertising, slick packaging and strong distribution

networks. The FMCG segment can be classified under the premium segment and popular

segment. The premium segment caters mostly to the higher/upper middle class which is not as

price sensitive apart from being brand conscious. The price sensitive popular or mass segment

consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly

brand conscious. Products sold in the popular segment have considerably lower prices than their

premium counterparts. Following are the segment-wise product details along with the major

players:

PERSONAL CARE

The Indian personal care industry is estimated at Rs. 170 billion. The industry is comprised of

Fabric Wash, Personal Wash, Hair Care, Oral Care, Skin Care, Colored Cosmetics, Men’s

toiletries, Fragrances.

Personal care industry apart from high profit margins has low entry barriers and severe

competition. Besides the large multinational players, there are some domestic players as well.

Most of the market share is with the large players like HUL, Marico, P&G, ITC

However, cheaper imports and duplicate products are also affecting the major players.

Companies have been adopting promotion schemes to dole out freebies and repackaging

products in smaller packages to cater to a wider consumer base are some recent trends. The way

ahead for the personal care companies is to introduce new and better product, improve

penetration, and make the consumer trade up price and quality, rural marketing will be a major

thrust for all companies as the urban markets are near saturation levels in terms of penetration.

INDIAN MARKET OF PERSONAL CARE PRODUCTS

MARKET SHARE

HAIR CARESKIN CARECOLOR COSMETICSFRAGRANCESBATH AND SHOWER PRODUCTS

ITC

HISTORY AND EVOLUTION

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India

Limited. As the Company's ownership progressively Indianised, the name of the Company was

changed from Imperial Tobacco Company of India Limited to India Tobacco Company

Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-

business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels,

Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods,

Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's

name were removed effective September 18, 2001. The Company now stands rechristened

'ITC Limited'.

The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was

the centre of the Company's existence. The Company celebrated its 16th birthday on August 24,

1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru

Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more

ways than one. It was to mark the beginning of a long and eventful journey into India's future.

The Company's headquarter building, 'Virginia House', which came up on that plot of land two

years later, would go on to become one of Kolkata's most venerated landmarks.

Though the first six decades of the Company's existence were primarily devoted to the growth

and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the

beginnings of a corporate transformation that would usher in momentous changes in the life of

the Company.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for

ITC's Cigarettes business. It is today India's most sophisticated packaging house.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai

which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the

hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels

business for its potential to earn high levels of foreign exchange, create tourism infrastructure

and generate large scale direct and indirect employment. Since then ITC's Hotels business has

grown to occupy a position of leadership, with over 100 owned and managed properties spread

across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited, which today has become the market leader in India. Bhadrachalam Paperboards

amalgamated with the Company effective March 13, 2002 and became a Division of the

Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with

the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.

ITC's paperboards' technology, productivity, quality and manufacturing processes are

comparable to the best in the world. It has also made an immense contribution to the

development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is

directly involved in education, environmental protection and community development. In 2004,

ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd

(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer

service with reduced lead time and a wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.

Since inception, its shares have been held by ITC, British American Tobacco and various

independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC

Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a

major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni

Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with

the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers

Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business

Division for export of agri-commodities. The Division is today one of India's largest exporters.

ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya

farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's

first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the

rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh,

Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch

of Expressions range of greeting cards. A line of premium range of notebooks under

brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student

population, the popular range of notebooks was launched under brand “Classmate” in

2003. “Classmate” over the years has grown to become India’s largest notebook brand and

has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw

the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under

the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery

Products Business and launched India's first environment friendly premium business

paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium

executive stationery and office consumables segment. Paperkraft entered new categories in the

office consumable segment with the launch of Text liners, Permanent Ink Markers and White

Board Markers in 2009.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international

quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores

later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife

evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear

brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most

premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from

buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To

mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to

consumers.

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC

InfoTech India Limited, to more aggressively pursue emerging opportunities in this area.

Today ITC InfoTech is one of India’s fastest growing global IT and IT-enabled services

companies and has established itself as a key player in offshore outsourcing, providing

outsourced IT solutions and services to leading global customers across key focus verticals -

Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged

Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.

ITC's foray into the Foods business is an outstanding example of successfully blending multiple

internal competencies to create a new driver of business growth. It began in August 2001 with

the introduction of' Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered

the confectionery and staples segments with the launch of the brands mint-

o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the

introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast

growing branded snacks category with Bingo! in 2007.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value

chain found yet another expression in the Safety Matches initiative. ITC now markets

popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation

of its partnership with the cottage sector. ITC's popular agarbattis brands

include Spriha and Mangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet,

Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care

products for men and women in July 2005. Inizio, the signature range under Essenza Di

Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio

Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class

products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of

Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The

Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment

at select markets in October 2007 and Vivel De Wills & Vivelrange of soaps in February

and Vivel range of shampoos in June 2008.

VISION STATEMENT

Sustain ITC’s position as one of India’s most valuable corporations through world class

performance, creating growing value for the Indian economy and the Company’s stakeholders.

MISSION STATEMENT

To enhance the wealth generating capability of the enterprise in a globalizing environment,

delivering superior and sustainable stakeholder value.

POSITIONING STATEMENT

“Enduring Value, For the Nation, For the Shareholder”

ITC CORPORATE STRATEGIES

Create multiple drivers of growth by developing a portfolio of world class businesses that

best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &

Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market

Standing, Profitability and Internal Vitality.

Ensure that each of its businesses is world class and internationally competitive.

Enhance the competitive power of the portfolio through synergies derived by blending

the diverse skills and capabilities residing in ITC are various businesses.

Create distributed leadership within the organization by nurturing talented and focused

top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to

catalyse the entrepreneurial energies of management by striking the golden balance

between executive freedom and the need for effective control and accountability.

ITC BUSINESS PORTFOLIO

ITC's diversification is powered by a robust corporate strategy designed to unleash multiple

drivers of growth. Its time tested core competencies, namely unmatched distribution reach;

superior brand building, effective supply chain management and acknowledged skills in

hoteliering have provided ITC the springboard to create new epicenters of growth. Inspired by

the overarching vision of making a contribution to the national goals of sustainable development

and inclusive growth, ITC has innovatively crafted unique business models that synergize long-

term shareholder value creation with enhancing societal capital.

ITC PERSONAL CARE PRODUCTS

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills'

'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and

is being progressively extended nationally.

ITC forayed into the skin cream category with the launch of Vivel Active Fair in July

2010. Vivel Active Fair locks in fairness ingredients to deliver faster and longer-lasting fairness.

This fairness cream helps the skin from the inside as well as the outside, thereby delivering

visible results in just 7 days. Additionally, Vivel Active Fairis enriched with vitamins, minerals

and moisturizers that provide total care to the skin. The cream has SPF 15 sun protection rating.

The cream is suitable for all skin types.

It is sold in various pack sizes, including 50 gram tubes for Rs 72, 25 gram tubes for Rs 39 and 9

gram sachets at a price of Rs 5.

THE ORGANIZATION AND HEIRARCHIAL STRUCTURE IN ITC

ITC FMCG CHANELS

The process of passing the product down the chain to the next organization through Chain of

intermediaries, before it finally reaches to the consumer or end-user is known as the ‘distribution

chain’ or ‘channel’

COMPETITORS

HUL-FAIR & LOVELY

Hindustan Unilever Limited is India’s largest consumeer product company and was formed in

1933 by Lever Brothers India.Its the first company to introduce a fairness cream in the Indian

market.Fair & Lovely was launched in 1975

Various variants of Fair & Lovely are:

Fair & Lovely Fairness Cream-1978

Fair & Lovely Ayurvedic Cream-2001

Fair & Lovely Fairness Cream with extra Brightness-2003

Fair & Lovely Menz Active-2006

Fair & Lovely Body Fairness Milk

Fair & Lovely Anti Marks

Anti Ageing Cream

Perfect Radiance Cream

Fair & Lovely Multivitamin Cream

Retail

Wholesale

Stockis

t

FMCG Van

SWOT OF FAIR & LOVELY

STRENGTH

Fair & LOvely USP-Poer of beauty and fairness in 4 weeks and has worked better for itIts is world's first and largest fairness cream brand.Its one of the most trusted brand for women in India.Fair & Lovely commands a market share of about 75% in the Rs.1200 Crore Fairness market in India

WEAKNESS

Many untapped markets around the worldDecline in market share from over 90% to about 75%.Entrance of foreign companies with higher skills and efficiency to beat existing playersThere is no scientific backing for the manufacturer's claims that their product enhances fairness prevented darkening of the skin or removed blemishes.

OPPORTUNITIES

Even then the sales continue to inclrease.The Indian Market is big and the potentialis even biggerIndian beauty seems to be associated with fairness more than anything elseThe marketgrowth is 15-20% on year to year.

THERATS

Rising competitorsFair & lovely is at maturity stage and have chances to slip down to decline stage

OTHER COMPETITORS

OBJECTIVE OF THE STUDY

The objective of the summer training is to ensure that I as a management student develop in real

life experience for handling the specific project and also to develop all understanding of the

various management activities related to the area of my specialization. This training gives us n

substantial corporate exposure and also serves as a useful tool of interaction with the corporate

sector.

The project has been derived from the field of marketing and is entitled as “A study of Vivel

Active Fair across various channels”

The main objectives of this project are:

Market launch coverage analysis through Tracker

To find out the availability of Vivel Active Fair in the retail market through survey.

Understanding about the functioning of merchandising system, visual merchandising and

display.

To study the sales and repeat sales of Vivel Active Fair and thereby analyze its

acceptance by the consumers.

To analyze which SKU is more in demand.

To analyze which type of outlet is more effective.

To study the impact of services by ITC on the retailers behavior towards pushing the

product.

Compare sales of Vivel Active Fair with that of Fair & Lovely.

To find out margins of retailers.

To study the retailer’s perception towards Vivel Active Fair.

To know the impact of Retail Visibility on customers ultimate purchase intension.

Important factors that influence buying of fairness cream

To analyze all the data and provide learning’s conclusions and recommendations.

THE PROCESS OF NEW PRODUCT LAUNCH AT ITC

TYPES OF OUTLETS AND THEIR PLACEMENT NORMS

Launch is done in the outlets which are category handlers i.e. those outlets which have that

particular product of either ITC or any other Brand.

Each Dealer Salesman covers 30 outlets per day working for 6 days a week on different beats

each day. Therefore total 180 outlets are covered by a DS in a week

STUDY ON THE PERFORMANCE OF VIVEL ACTIVE FAIR

Category Handler of >40 tubesPlacement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladiDISPLAYCategory Handler of 10><40 tubesPlacement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladiNON DISPLAYCategory Handler of <10 tubesPlacement Quantity was 1 9gm ladiSACHETCategory Handler Placement Quantity was 1 9gm ladiCFPPlacement Quantity was 2 9gm ladiSTOCKIST MARKETS

Category HandlerPlacement Quantity was 6 tubes-50gm,12 tubes-25gm,12 to 24 9 gm ladiWHOLESELLERCategory Handler and also having good relations with DSPlacement Quantity was 2 tubes-50gm,6 tubes-25gm,1 9gm ladiGOLD

RESEARCH METHODOLOGY

Exploratory research was conducted in Raipur regarding the launch, placement, visibility and

repeat sales of Vivel Active Fair and also to ascertain the competitors of Vivel Active Fair

Cream.

A total of 133 outlets scattered all over Jaipur were surveyed. Written record of the number and

names of the stores in the city was maintained. Since it was very difficult to study all the 4054

retailers present in the city and then carry out the study in the short span of 50 days, so retailers

were selected according to convenience. All shops and areas were surveyed that could possibly

be approached.

Personal interview as well as observation was used to carry out the study. Personal interview wer

used to ascertain the product performance from the retailers and observation was used to

ascertain the visibility of the product.

SAMPLING METHODOLOGY

SAMPLING

The sampling design that has been adopted for the purpose of study is convenience sampling

SAMPLE PLAN FOR TRADE FEEDBACK

The project was conducted for the geographical region of Jaipur. The sample size comprised of

133 General Trade Outlets. The sample consists of both the retailers of the general trade.

SAMPLE PLAN FOR CUATOMER FEEDBACK

The project was conducted for the geographical region of Jaipur. The sample size comprised of

190 Customers of various ages and genders, from across Jaipur

DATA COLLECTION

The data collection exercise was carried over a period of 20 days, in the various

markets of the region. Over the period of 15 days the data was collected and

then all the data was very carefully studied and the results were found out.

TOOLS AND TECHNIQUES

Primary Data- Primary Data was collected during the course of research period with the help of

questionnaire that was designed for both retailers and consumers respectively to collect the

information that was required to carry out the research.

Secondary Data- Secondary Data was collected through books, articles, magazines, previous

researches papers that were conducted by the company’s officials and representatives.

INSTRUMENT

Questionnaire

Personal Interview

TOOLS AND TECHNIQUES FOR ANALYSIS

Simple statistical tools like average, frequency, ratios, tables and graphs

ANALYSIS AND FINDINGS

IMPACT

Sales value/Market Share

Category Growth/Cannibalization

Effect on Competitors

ECECUTION

Speed to Market and Distribution Gaps

Consumer Uptake

Awareness

Consumer ‘Touch Points’

TRIAL

Who trailed the product?

Influences on Trial

Barriers to Trial

Concept Appeal(Product, Packaging, price and Relevance)

REPEAT

NIELSEN NEW PRODUCT LAUNCH

EVALUATOR

IMPACT

ECECUTION

TRIAL

REPEAT

Actual Repeat Purchase

Intention to repeat

Product Performance

IMPACT

DISPLAY N-DISPLAY SACHET GOLD COSMETIC

76 54 33 90 73

65 2 12 9

7.78 9.42 7.04 12.89 12.38

FAIR & LOVELY vs VIVEL ACTIVE FAIRAVERAGE F&L SALE PER OUTLET PER MONTHAVERAGE VAF SALE PER OUTLET PER MONTH VAF AS % IF F&L

The sale of Fair & Lovely in Jaipur for Past one month has been 4000 tones

whereas Vivel Active Fair’s sale is just 4.5 tones which imply that its market

share is almost negligible.

Based on the interviews with the retailers and the office employees, in spite of

getting to a share of 7-12% of sales of Fair & lovely, still Vivel Active Fair has no

effect on Fair & Lovely’s sale.

But if the different channels are separately considered the gold and cosmetic have

taken up better quantum of sale as compared to others.

EXECUTION

Awareness

59%23%

12%

6%

AWARENESSAWARE BUT NEVER USED IT NEVER HEARD OF ITUSE IT ONLY SOMETIMES USE IT ON A REGULAR BASIS

The study shows that 60 % consumers are aware of the product but don’t have

any incentive to choose it over their current fairness cream so efforts should be

made to increase consumer trial.

Still 23% consumers of fairness creams are unaware about Vivel Active fair so

hammering more advertisement would be a general recommendation

The consumer uptake is only 6% for those who have started using Vivel Active

Fair Regularly

Consumer ‘Touch Points’

38%

17%4%

41%

PERCENTAGEDISPLAY ON STORE FRIENDS AND RELATIVESPROMOTION AT NATIONAL HANDLOOM TELEVISION

SOURCE OF INFO

ABOUT VAFADVERTISEMENT DISPLAY

RETAILER'

S PUSH

PROMOTION

S

DISPLAY ON

STORE0 25 63 12

FRIENDS AND

RELATIVES21 27 44 8

PROMOTION AT

NATIONAL

HANDLOOM

18 0 0 82

ADVERTISEMENT 86 12 0 2

Television advertisement is always one of the major factors to pull the consumers.

But since being the launch king ITC has effectively given the visibility of Vivel

Active Fair in the market because of which sale is being boost

o And in display too 63% sale is due to Retailer push and the rest 25% by

display and 12 % Promotional “ear-top” scheme.

Whereas even promotion at National Handloom has also shown good returns.

TRIAL

Who trailed the product?

GENDERPERCENTAG

E

INCOME

LEVELPERCENTAGE AGE PERCENTAGE

MALE 37.25 LOWER 24 20-29 54

FEMALE 62.75 MEDIUM 47 30-39 25

UPPER 29 40-49 21

Influences on Trial

40%

24%

26%

10%

INFLUENCE ON TRIAL ACCORDING TO CUSTOMER SURVEY

FRIENDS/RELATIVES NO INFLUENCERETAILER SKIN SPECIALIST

10%

24%66%

INFLUENCE ON TRIAL ACCORDING TO RETAILER SURVEY

FRIENDS/RELATIVES NO INFLUENCERETAILER SKIN SPECIALIST

According to the retailers a person who uses Fair & Lovely or Vivel Active Fair is

not of the income group who seeks advice of skin specialists.

They are primarily influenced by the retailer’s advice or advertisements.

Barriers to Trial

o The main barrier to trial is the loyalty of the consumers towards their existing

brand i.e. Fair & Lovely

o Second barrier is that the since during the launch phase of a product its success of

failure largely depends on retailer’s interest in selling/pushing the product, which

in this case is not so effectively done.

Concept Appeal(Product, Packaging, price and Relevance)

After interviewing the Retailers and Consumers, it can be subjectively said that

Product- Vivel Active Fair as a product is known to the consumers but has not yet

appealed then to purchase it.

Price- Consumers has rated it 5/5 in price.

Packaging- Consumers has rated it 5/5 in price

Relevance/Quality-Consumers have not yet used the product so unable to rate on

quality

REPEAT

Actual Repeat Purchase

OUTLETTOTAL NO

OF OLS

% OF OLS

FOR

REPEAT

ORDER

AVERAGE

REPEAT

QUANTITY PER

OL

AVERAGE

REPEAT QTY

FOR 50gm

PER OLS

AVERAGE

REPEAT

QTY 25 gm

PER OLS

AVERAGE

REPEAT QTY

9gm PER OLS

DISPLAY 43 76.74 0.22 0.12 0.09 0.10

N-

DISPLAY30 70.00 0.22 0.11 0.07 0.13

SACHET 29 79.31 0.12 0.09 0.06 0.08

GOLD 10 90.00 0.47 0.30 0.16 0.18

COSMETI

C20 65.00 0.52 0.30 0.18 0.25

Subjectively it can be conclude from the study that whether it be the share of Vivel

Active Fair’s Share as compared to Fair & Lovely or repeat orders or the average repeat

quantity per outlet GOLD OUTLETS are performing the best.

Whereas in cosmetic outlets the percentage of outlets for repeat order is the least as

compared to other channels which shows that the sale is not evenly distributed across all

outlets and is concentrated on few (out of 20 outlets 7 outlets have 0 repeat orders and 4

gave only 1repeat order) or we can say that all the performance of the cosmetic outlets

can be attributed to just few outlets

In spite of having the display on the stores, the Display has same average repeat quantity

per outlet as those of Non- Display Outlets. Which can lead to few conclusions:

o The display at the store is not an effective tool to attract customer purchase.

o The retailers at the Non-Display outlets are more motivated than the Display

Outlets by the 20% Margin ITC is giving on Vivel Active Fair and because of

which they are selling more of it

o The consumers in the locality of the Non-Display outlets are our target consumers

and not those on the locality of Display Outlets

SKU

FOR

CUST

REP

FREQUENCY

(TOTAL 64)

SKU

REPEAT

AS % OF

TOTAL

CUST

REPEAT

OLS

9gm 25 39.06

25gm 26 40.63

50gm 13 20.31

Intention to repeat

63 % fairness cream users are ready to switch their brand based on

o Better Quality

o Variety

Product Performance

22%

24%

16%

21%

17%

CUST. REPEAT AS % OF TOTAL OF CATEGORY

DISPLAY N-DISPLAY SACHET GOLD COSMETIC

The customer repeat is highest in Non-Display outlets

12%

48%

7%

16%

7%10%

fairness cream market shareFAIR & HANDSOME FAIR & LOVELYFAIREVER GARNIER LIGHTPONDS WHITE BEAUTY VIVEL ACTIVE FAIR

RECOMMENDATIONS

The main problem which was in the front of all the others with respect to retailers is that

the communication between them and the company is not proper e.g. many retailers are

not informed about the new products and schemes. The DS should be strictly instructed

to pass on the information to all the retailers irrespective of theirs personal prejudices.

The DS asks for repeat of only few products (mainly food) and ignores the products

which give them fewer incentives. Either the DS should be given fairly equable

incentives or they should leave their prejudices.

The distribution system has many loop-holes which need serious consideration like-

timely delivery of the products, services with respect to loyalty programs etc

The DS should be given a target of at least 3 repeat orders per outlet with a minimum

repeat quantity of 0.11 kg per outlet.

Promotional representatives should be placed at Saraogi Mansion, GT and Shree Ram

Departmental Store-Gopalpura etc.

Samples should be given to consumers in Old Jaipur Areas like (Jotwara, Ajmer Gate,

Choda Rasta, Tripolia Bazar etc.)

Since the Non-Display outlets are the cash cows for the company in case if Vivel Active

Fair, therefore there are few suggestions to increase the sales in them:

o The Non-Display Outlets should be provided the displays so as to motivate the

retailer even more to push the product and also to increase the visibility.

o The Non-Display Outlet retailer schemes such as buy 12 pieces of 50gm/25gm

and get one tube and one ladi free.

o The Non-Display Outlet retailer schemes such as get 4 ladi free on 3 repeat orders

a month.

o Based on personal relations Non-Display retailer can be convinced to replace all

the fair & lovely sale for a week with Vivel Active Fair-9gm Sachet, and later the

repeat of those can be traced and thereby the process can be repeated if

successful.

GOLD OUTLETS DISPLAY

FEW COSMETIC OUTLETSNON-DIAPLAY OUTLETSSACHET OUTLETS

STARSQUESTION

MARKS

DOGSCASH COWS

RETAILER’S QUESTIONNAIRE

1.

What is the type of Outlet?

Display

Non Display

Sachet

Cosmetic

2.

Whether there is any display/board/hoarding in that area?

Yes

No

3.

How many times have you placed the repeat orders?

None

1-2 times

3-4 times

5 or more times

5.

You have placed order for which SKU?

50gm tube

25gm tube

9gm ladi

6.

How many orders of each SKU have you placed?

50gm__________

25gm__________

9gm ladi________ 

7.

Has there been any customer repeat?

Yes

No

8.

Is display useful?

Yes

No

9.

How many tubes of Fair and Lovely do you sell in a month?

___________

10.

Rate Vivel Active Fair on the scale of 1 to 5? 

Price

Packaging

Quality

Fragrance

11.

What is the scheme/incentive Fair and Lovely offering to you? 

______________________________________________________________________________

______________________________________________________________________________

Personal Details:

Name:

____________________________________________________

Address:

____________________________________________________

_______________________Phone No.:____________________

Date & Time:_________________________________________

CUSTOMER’S QUESTIONNAIRE

1.

Do you prefer any Fairness Cream?

Yes

No

2.

Which one the Fairness Creams are you using?

___________________________

3.

For which purpose are you using the Fairness Cream?

___________________________

4.

How often do you buy a Fairness Cream?

Once per week or more often

2-3 times per month

Once per month

Once in 2-3 months

Once or twice a year

5.

Are you satisfied with the Fairness Cream which you are using?

 Yes

No

6.

Your intention towards replacing your existing brand of Fairness Cream?

To replace

Not to replace

7.

Reasons for switching the brand?

Variety/boredom

Non availability

Packing/novelty/features

Price

Better Quality

8.

Which thing do you prefer before buying the Fairness Cream?

 Cost

Quantity

Its Result

 Quality

Brand Ambassador

Packaging

 Brand Image

Other s:-__________

9.

Which Type of Fairness Cream do you prefer?

 Ayurvedik

 General

 Related to Skin

Related to weather condition

 Other s:-__________

10

How familiar are you with Vivel Active Fair?

Never heard of it

Aware but never used it

Use it only sometimes

Use it on a regular basis

11.

From where do you get the information & knowledge regarding Vivel Active Fair?

Par lo r

T.V.

Friends & relatives

 News paper & Magazines

Internet

Other s:-______

12.

On whose recommendation do you buy any beauty product?

Friend’s

Relative’s

Retailer’s

Chemist’s

Skin Specialist’s

Other s:-______

13.

Rate Vivel Active Fair on the scale of 1 to 5?

Price

Packaging

Quality

Fragrance

14.

Which price range of cream you prefer the most?

Economy(Rs. 5)

Popular (Rs.32 )

Premium (Rs. 72)

Personal Details:

Name:

____________________________________________________

Address:

____________________________________________________

_______________________Phone No.:____________________

Gender:

_________________________Age: _______________________

Date & Time:____________________________________________________

BIBLIOGRAPHY

http://www.itcportal.com/about-itc/itc-profile/itc-profile.aspx

http://au.nielsen.com/products/documents/NPLEL4flyerfinal.pdf

The Indian Marketing Journals by ICFAI