Professional Documents
Culture Documents
The aim of the project was to study the process of planning and implementation of
loyalty programs in Marico. The main objective of the company behind these
loyalty programs is to increase the visibility of its products.
I prepared a questionnaire for retailers of the channel “KEY” & “CHEMIST” who
were enrolled in the loyalty programs MERA, SUPER MERA & UNNATI.
Through the questionnaire I found the strengths and weaknesses of the mentioned
loyalty programs.
The survey was done by interviewing 250 retailers with the help of questionnaire.
The questionnaires were then analyzed and major findings were recorded.
DSR’s and the Merchandiser’s are well trained to implement the loyalty
programs.
Many of the retailers share a long relation with the company.
As per the survey Marico is the second best company as far as service is
concerned after P&G.
Four key issues observed in the market are:
o Delay in payments: Research reveals that none of the retailers are
satisfied with the ongoing payment system. This is not only
hampering the good relation they have with the company but also
delaying the current year’s implementation of the program.
o Bulky Dispenser’s & Saffola stand: 43% of the MERA outlets, 36%
of SUPER MERA & 7% of UNNATI did not keep the unpaid
dispenser due to space constraints. 9% of SUPER MERA outlets did
not sport a saffola stand due to its bulkiness.
Page 1
o Cost & Incentive structure: The rentals offered by the company were
low as compared to its competitors which is a potential threat for the
company.
o Products expiring on shelf: It has been found in most of the shops that
the products are expiring on the shelf itself due to lack of
responsibility shown by the merchandisers.
Payment systems:
o Voucher System.
o NEFT (National Electronic Fund Transfer).
Dispensers:
o Hang or hook to the wall nearby the counter.
Saffola Stand:
o Condense the stand.
o Hang empty poly jars from the ceiling of different SKU’s.
Ageing of Products:
o Age Tracker.
Page 2
Chapter. 1: INTRODUCTION
1.1 BACKGROUND[14]:
Marico is a leading Indian Group in Consumer Products and Services in the Global
Beauty space. Marico’s Products and Services in Hair care, Skin Care and Healthy
Foods generated a Turnover of about Rs.26.61 billion (about USD 600 Million)
during 2009-10*. Marico markets well-known brands such as Parachute, Saffola,
Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Sundari,
Aromatic, Camelia, Fiancée and Hair Code. 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, and 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 Middle East), the
Sundari range of Spa skin care products (in the USA & other countries) and its
soap.
1
* For more information on Q4 results of Marico refer APPENDIX-C
Page 3
Consumer Products Business [11]:
Over the past 17 years, Marico has been continually improvising and building new
brands. Marico's Consumer Products Business houses well-known brands such as
Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal,
among others, which 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. Every month, over 70 Million
consumer packs from Marico reach approximately 130 Million consumers in about
23 Million households, through a widespread distribution network of more than 2.5
Million outlets in India and overseas.
Page 4
Page 5
Brands & Their Target Customers [11]:
Page 6
International Business Group [11]:
Kaya Ltd (erstwhile Kaya Skin Care Ltd.) was an entrepreneurial leap of faith
marking Marico's entry into skin care solutions business. It was a true reflection of
uncommon sense for a company in hair care products to move, instead of merely
logical product extensions, straight into skin care services. It attempted to leverage
Marico's strengths in the Personal Care business and in-depth understanding of the
needs of the Indian consumer and her/his desire to enhance her/his natural beauty
with the best cosmetic dermatology procedures available internationally. Kaya Ltd.
has been focused on meeting the emerging needs of the modern day consumers by
providing useful and effective services in the beauty and wellness space. The
pioneering effort has been in the area of skin care with Kaya Skin Clinic. Over the
last 7 years Kaya Skin Clinic has refined the standards and professionalisms of the
skin care industry through innovative, world class treatments and services that
have been tailor made to suit Indian skin Since its first prototype in Bandra in
2002, Kaya Skin Clinics has grown at an unprecedented pace, with over 101 clinics
in India, Middle East and Bangladesh. It is planning to expand its clinics with the
acquisition of Derma, a Singapore based company**.
2
Page 7
Reach [11]:
Page 8
Marico procures one out of every 13 coconuts produced in India. Marico sells over
7 Crore (70 Mio) packs to around 13 Crore (130 Mio) people every month.
Marico’s products reach around 2.3 Crore (23 Mio) households through over 33
Lac (3.3 Mio) retail outlets serviced by its nationwide distribution network
comprising 4 Regional offices, 32 carrying & forwarding agents (CFAs) and about
3600 distributors and stockiest. Marico’s distribution network covers almost every
Indian town with population over 20,000.
Page 9
A new trend of window displays in retail outlets grabbed attention of many FMGC
players off late to display their products so much so that there is a serious drought
of window space. Marico, a leader in coconut hair oil segment wanted to protect
their window space by strengthening the weaker areas of their loyalty programs.
The main objectives of this program are:
To interact with the retailers and get to know what they feel about
Marico’s loyalty program.
Understand the process of planning and implementation of these
loyalty programs.
Identify the weaknesses of the programs and give meaningful
recommendations to overcome the same.
To check whether the stores selected for the loyalty programs have
good infrastructure.
Check whether the window offered by the retailer is meeting the
criteria laid by the company.
To check the effectiveness of the programs in terms of % increase in
sales.
Note down the number of sores which are not sporting an unpaid
dispenser and a saffola stand (in case of SUPER MERA) and find out
the reasons for the same.
To ask the retailer whether the DSR has briefed him about the loyalty
program enrolled in.
To know whether the payments were made on time to the retailers.
To check the satisfaction of the retailers and their willingness to
continue with the loyalty program next year.
Page 10
The sample drawn may not be representative of the population as the
survey does not cover the whole of Mumbai.
Due to time pressure few questions were skipped and were answered
by the DSR’s.
Type I and Type II errors in estimating the results over the entire
population.
Page 11
Chapter. 1 : INTRODUCTION
1.1 Background:
This sub chapter includes the various SBU’s Marico is involved in along with the product
portfolio. It also includes the sales and distribution system and the reach of its distribution
channels.
1.3 Limitations:
This sub chapter includes the limitations of the market research done during my summer
internship and the errors occurred while estimating the results obtained over the entire
population.
This chapter gives a brief description on sales promotion and a detailed explanation of the
loyalty programs framed by Marico along with the process of planning and implementation of
the same.
Chapter.5 : CONCLUSION
5.1 Summary of Findings: Includes all the major findings and observations made during the
market survey.
5.2 Recommendations: This sub chapter gives a detailed explanation of the suggestions
made in order to overcome the weaknesses of the loyalty programs mentioned in the
S.W.O.T analysis of the same.
Chapter.6 : BIBLIOGRAPHY
This topic includes all the references used while drafting the report.
Page 13
Chapter.2: LITERATURE REVIEW
SALES PROMOTION [2]:
“In a specific, sales promotion includes those sales activities that supplement both
personal selling and advertising and coordinate them and help to make them
effective, such as displays, shows and expositions, demonstrations and other non-
recurrent selling efforts not in regular routine.” ----------------- (AMA 1960)
“Sales promotions are temporary incentives targeted at the trade (called Trade
Promotion) or at the end consumer (called Consumer Promotion). While sales
promotion generally aim to change purchase behavior, they vary in whether they
attempt to persuade trade customers or end consumers to buy a product for the
first time, to buy more, to buy earlier, or to buy more often.” ----- (Philip Kotler)
There are three types of promotions that can be used, singly, or in combination:
Consumer Promotion
Trade Promotion
Sales Force Promotion
Page 15
Price-Off: A straight discount off the list price on each case purchased
during a stated time period.
Allowance: Amount offered in return for the retailer’s agreeing to
feature the manufacturer’s products in some way. A display allowance
compensates them for carrying a special product display.
Free Goods: Offers of extra cases of merchandise to intermediaries
who buy a certain quantity.
Disadvantages:
Page 17
1. Increased Price Sensitivity: Frequently promoted brands in a product
category, especially on the basis of price, make consumers and traders more
price sensitive, not only for the promoted brand, but for other brands, as well
in the same product category. Consumers wait for the promotional deals to
be announced and then purchase the product.
Page 18
PROCESS OF PLANNING AND IMPLEMENTING LOYALTY
PROGRAMS [2]
SET OBJECTIVE
IMPLEMENTATION
EVALUATION
Page 19
1. SET OBJECTIVE:
It is clear from the above table that companies like Marico who want to achieve
rapid growth in sales at a relatively low expenditure would focus more on Sales
Promotion.
Page 20
2. DEFINE STRATEGY TO BE USED [2]:
“PULL” Strategy:
In case of “PULL” strategy, marketing efforts are directed at the ultimate consumer
and consumer promotions are used. The objective of such promotional effort
would be to create sufficient consumer demand to “PULL” the product through the
channels, i.e. the consumers are encouraged to demand the product from the
retailer who in turn place orders to meet the demand. A “PULL” strategy is
appropriate when the product demand is high, high brand loyalty, or consumers
show high degree of involvement in the product purchase.
“PUSH” strategy:
Page 21
Brands such as Jasmine, Hair & Care, Shanti Badam and Parachute Advanced
(Value Added Hair Oil Category) are suitable for the “PUSH” category which have
relatively low demand and brand loyalty as compared to other hair oils in the
market such as Dabur’s Amla and Emami’s Navratan cooling oil. Saffola range of
edible oils along with Sweekar is also applicable for this strategy due to immense
competition in the market from Adani Willmar’s Fortune, Cargill’s Gemini,
Godrej’s cooklite and many more. A “PUSH” strategy is best suited for newly
launched products such as Saffola Arise which will help gain acceptance among
the customers visiting the retailer.
When these strategies are combined intelligently, they can produce more powerful
response, compared to any single marketing strategy for two reasons. One, reseller
may not be willing to push the product when the firm is emphasizing customer
pull. Two, the resellers might be willing to push the product but there is no end-
user demand.
Parachute (Coconut Oil category) is best suited for this strategy due to the
following reasons:
Marico introduced the loyalty programs for the retailers and wholesalers
wherein the dealer need to provide a window space to display products of
the company. In return Marico will pay the window allowance along with a
fixed percentage of incentive on achievement of target given to the dealers
by the company.
The loyalty programs of Marico offered to the retailers and the chemists are:
MERA:
The Mera Program will be an Incentive to the “Top” Key Outlets in a
City.
Top BPM Key outlets in the City: Top Outlet Report [Midas]
For e.g., if the ASM has 100 Mera Outlets allocated to him, he should
take a list of 120 outlets (20% extra) & then choose the 100 based on
‘Qualitative Parameters’
Period:
1st May 2010- 31st March 2011
Further the period is divided into 3 phases ;
Phase I : May-Jul
Phase II : Aug-Nov
Phase III : Dec-Mar
Page 23
Program Elements: 2 compulsory Elements of Execution
Visibility:
1 Window for BIW.
Window should be ideally behind the counter.
Size of BIW Kit : 17X 24 inch for Vertical and 24X 17 inch
for horizontal.
Window size to be strictly adhered to else no payout to be
given.
BIW:
Rs 450/ month
Total payment of Rs 450 + incentive (if target achieved) will be made at the
end of the phase.
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SUPER MERA:
BIW1:
Rs 450/ month
BIW2:
Rs 450/month
Saffola Zone:
Rs 1000/month
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UNNATI:
Visibility :
1 Windows for BIW kits per outlet
Window should be behind the counter
Size of BIW Kit : 17X 24 inch
Brands for BIW kit : Communicated to ASMs
Pay Out for BIW/Month : Rs 400/month
Page 26
4. CONDITIONS FOR PARTICIPATION:
Marico has categorized the stores into various channels namely:
Page 27
The outlet should be having a minimum BPM of Rs 3000.
It should be storing all products of Marico except Saffola and
Sweekar brands of edible oil.
There are five important techniques, which are commonly used to allocate
funds to sales promotion:
Page 28
Unit of Sales Method: This method is generally used for highly
priced goods, or consumer durables wherein a promotion budget is
arrived by multiplying the units of goods sold with a fixed amount.
Page 29
6. IMPLEMENTATION:
Select Outlets
DSR Training
Selecting Outlets: The ASM along with the TSO/TSE list out the
stores eligible for the loyalty programs on basis of the criteria
discussed above.
DSR Training: After selecting the outlets for the loyalty programs
the TSO/TSE briefs the DSR’s on the same and gives them a live
demonstration on how to book the window space.
Booking of Window: The DSR then gets the contract form filled
from the retailer and takes his appointment to get the window
branded.
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Branding of Window: The DSR then communicates with the
merchandiser, who brands the windows of the shop told by the DSR.
7. EVALUATION [2]:
Pre-testing:
Page 31
Post-testing is done after the promotion period is over. The evaluation of the
loyalty programs is done on the basis of the growth in sales. Based on this data the
ASM and the TSO/TSE make the necessary changes in the list of outlets to be
selected for the upcoming period.
Exploratory Research [3]: to gather preliminary data to shed light on the real
nature of the problem & suggest possible solutions/new ideas.
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 on the
loyalty programs of Marico.
The research work was Exploratory in nature and was meant to provide the basic
information required by research objectives. A preliminary study and findings can
be further consolidated after detailed conclusion study has been carried out. The
major methods employed in research are Survey and Observations.
Primary Data: The respondents were personally interviewed with the help of a
structured questionnaire.
Secondary Data: Collected from Marico’s DSR’s and TSO / TSE through short
interviews and informal chats.
14 questions were asked to the retailers and the types of questions are as follows:
Dichotomous (5 questions)
Multiple Choice (3 questions)
Rating Scale (2 questions)
Area of research:
Thane: Kalwa
3
*** For viewing the questionnaire refer APPENDIX-A
Page 33
Criteria for enrolling in MERA:
The outlet should be a “KEY” outlet.
The outlet should be having a minimum BPM of Rs 35000.
It should be storing all products of Marico.
Criteria for enrolling in UNNATI:
The outlet should be a “CHEMIST” outlet.
The outlet should be having a minimum BPM of Rs 3000.
It should be storing all products of Marico except Saffola and
Sweekar brands of edible oil.
3.4.2: Sample Size: 250 Retailers
Retailer Composition:
Time for Completion: The time taken to complete the project was 54 days. 2 days
for understanding the programs and designing the questionnaire, 38 days for
market survey and filling questionnaire from the retailers, and 14 days for data
coding, analysis and compiling of report.
Page 34
Chapter.4: DATA
REPRESENTATION &
ANALYSIS
RETAILER COMPOSITION
Page 35
Program MERA SUPER UNNATI TOTAL
MERA
Page 36
RESPONDENT ANALYSIS
(MERA OUTLETS)
No of New 1 2 3 4 5 Total
Page 37
years
No of 7 30 57 51 18 14 177
stores
Observation:
47% of the shops surveyed have been associated for more than 2 years. Such a
long association helps build a healthy relation between the company and the
retailers.
Page 38
Rating 1 2 3 Total
(Average) (Good) (Excellent)
No of 57 92 28 177
stores
Observation:
68% of the stores selected for the MERA program were above average which is
good enough in a space constraint city like Mumbai. However it was observed
from the market that there were stores with good infrastructure but were not a part
of the program due to low BPM than others.
Page 39
Rating 1 2 3 Total
(Average) (Good) (Excellent)
No of 70 88 12 170
stores
Location of window
Page 40
Observation:
In spite of selecting stores with above average infrastructure it has been observed
that 41% of the MERA stores surveyed have average window locations. The main
reason behind this is HUL occupying 6 – 9 shelves and paying ransom amount.
Not only HUL but many other players like Dabur and P&G are offering more to
the retailers than Marico.
Effectiveness of Program
% Growth -ve 0 – 20% 21- 40% 41- 60% 61-80% 81% + Total
No of 27 61 51 10 9 12 170
stores
Page 41
Observations:
This program is undoubtedly effective as it is quite evident from the graph. 66% of
the retailers reported a sales growth in the range of 0-40%, whereas 11% in the
bracket of 41-80% and 7% reported a growth of over 81%.
Company wants to find out whether the MERA program implemented the
previous year was successful or not. In order to be successful at least 50% of the
shops enrolled under this program should have registered a sales growth of greater
than 20% on Marico’s products [4] [5].
Zcal = - 0.5263
α = 0.05
Zcrit = - 1.65 0
Page 42
Although the observed sample proportion is below 50%, it is not significantly
below 50% to make us
reject the YES NO Total null
hypothesis. Therefore
the null hypothesis is
accepted and No of 90 80 170 we can
conclude stores that the
MERA program was
successful the previous
year.(Null Hypothesis Accepted)
Unpaid Dispenser
A huge chunk of 47% of the retailers did not sport a dispenser in their shop due to
lack of space. 53% of them who kept the dispenser also complained about its
bulkiness.
Page 43
YES NO Total
No of 126 44 170
stores
Page 44
Observations:
74% of the retailers are willing to continue with the loyalty program as they are
very much satisfied with the service of the company and also due to the friendly
relation they share with the DSR. Having said that 26% of the retailers are not
satisfied with the program due to payment issues and low rentals as compared to
the major players in the market.
Company claims that 80% of the retailers were satisfied with the program and
are willing to continue this year too [4] [5].
Page 45
From the Z – Table: Ztab = - 1.65
α = 0.05
Zcrit = - 1.65 0
As can be observed from the graph that the calculated Z value lies in the
rejection region therefore the null hypothesis is rejected. Hence we can conclude
that the result obtained from the survey was defying the claim made by the
company. (Alternate Hypothesis Accepted)
Page 46
RESPONDENT ANALYSIS
(SUPER MERA OUTLETS)
No of New 1 2 3 4 5 Total
years
No of - - 9 14 13 2 38
stores
Page 47
Observation:
71% of the retailers have been associated with SUPER MERA for 3-4 years which
is one of the major strengths of this loyalty program.
Page 48
Rating 1 2 3 Total
(Average) (Good) (Excellent)
No of 2 22 14 38
stores
Observation:
Only 5% of the stores surveyed have an average infrastructure. The reason could
be that SUPER MERA stores are outlets with higher BPM and larger store size.
Page 49
Rating 1 2 3 Total
(Average) (Good) (Excellent)
No of 12 20 6 38
stores
Location of window
Page 50
Observation:
31% retailers are offering us average window location due to the reasons
mentioned below:
Effectiveness of Program
% Growth -ve 0 – 20% 21- 40% 41- 60% 61-80% 81% + Total
No of 2 10 14 3 3 6 38
stores
Observation:
Page 51
The growth percentages are better as compared to the MERA outlets due to the
high customer footfalls these stores attract. It can be observed that 16% of the
retailers achieved a growth of over 81% as compared to MERA outlets 7%.
Company wants to find out whether the SUPER MERA program implemented
the previous year was successful or not. In order to be successful at least 50% of
the shops enrolled under this program should have registered a sales growth of
greater than 20% on Marico’s products [4] [5].
Zcal = 2.22
α = 0.05
Zcrit = - 1.65 0
Page 52
The observed sample proportion is well above 50%. Therefore the null
hypothesis is accepted and we can conclude that the SUPER MERA program
was successful
the previous year.(Null
YES NO Total
Hypothesis Accepted)
No of 24 14 38
Unpaid stores
Dispenser
37% of the retailers did not keep an unpaid dispenser. This percentage has dipped
from 47% in MERA to 37% in SUPER MERA because as mentioned earlier the
infrastructure in these stores is far superior to the MERA outlets. But still these
figures cannot be taken for granted as there is a serious space constraint in a city
like Mumbai.
Saffola Stand
Page 53
YES NO Total
No of 35 3 38
stores
Page 54
YES NO Total
No of 31 7 38
stores
Page 55
Observations:
82% of the retailers are willing to continue with this loyalty program. The
percentage is higher as compared to MERA as they are receiving Rs 1900 / month
plus1% incentive on achievement of target as compared to MERA’s Rs 450 /
month + 1% incentive.
Company claims that 80% of the retailers were satisfied with the program and
are willing to continue this year too [4] [5].
Page 56
Zcal = 0.322
α = 0.05
Zcrit = - 1.65 0
As can be observed from the graph that the calculated Z value lies in the
acceptance region therefore the null hypothesis is accepted. Hence we can
conclude that the result obtained from the survey was supporting the claim made
by the company. (Null Hypothesis Accepted)
Page 57
RESPONDENT ANALYSIS
(UNNATI OUTLETS)
No of New 1 2 3 4 5 Total
years
No of 2 2 12 10 8 1 35
stores
Page 58
Observation:
89% of the chemists have been associated with UNNATI since the past 2-5 years.
Page 59
Rating 1 2 3 Total
(Average) (Good) (Excellent)
No of 4 19 12 35
stores
Observations:
34% of the chemists have excellent infrastructure which means that they have
enough space to keep any additional dispenser if required in future by the
company.
Page 60
Rating 1 2 3 Total
(Average) (Good) (Excellent)
No of 7 19 7 33
stores
Location of window
Page 61
Observation:
In 79% of the stores the locations of the window were above average. At the same
time 21% were average due the same reasons as mentioned for MERA and SUPER
MERA.
Effectiveness of Program
% Growth -ve 0 – 20% 21- 40% 41- 60% 61-80% 81% + Total
No of 6 12 8 7 - - 33
stores
Page 62
Observations:
The growth percentages are low as compared to MERA and SUPER MERA outlets
as the chemists do not sell edible oil brands which form a major part of the BPM
for MERA and SUPER MERA outlets.
Company wants to find out whether the UNNATI program implemented the
previous year was successful or not. In order to be successful at least 50% of the
shops enrolled under this program should have registered a sales growth of greater
than 20% on Marico’s products [4] [5].
Page 63
From the Z – Table: Ztab = - 1.65
Zcal = - 0.5747
YES NO Total
α= 0.05
No of 24 9 33
stores
Zcrit = - 1.65 0
Unpaid Dispenser
Page 64
Observations:
27% of the outlets did not keep an unpaid dispenser due to lack of space in their
stores.
Page 65
YES NO Total
No of 25 8 33
stores
Observations:
76% of the chemists are willing to continue with this loyalty program as they are
very much satisfied with the service of the company and also due to the friendly
relation they share with the DSR.
Page 66
Company claims that 80% of the retailers were satisfied with the program and
are willing to continue this year too [4] [5].
α = 0.05
Zcrit = - 1.65 0
As can be observed from the graph that the calculated Z value lies in the
acceptance region therefore the null hypothesis is accepted. Hence we can
conclude that the result obtained from the survey was supporting the claim made
by the company. (Null Hypothesis Accepted)
Page 67
Service when compared to others
Observations:
S.W.O.T ANALYSIS
Page 68
Chapter.5: CONCLUSION
Page 69
5.1 SUMMARY OF FINDINGS:
Two main objectives which were laid by the company for the summer project are:
Page 70
the same time even they voiced out their discontent on the
payment issues and the bulkiness of the dispensers/saffola
stand.
MORE FINDINGS:
“KEY” OUTLETS
HUL:
• Perfect Store:
Rs 600 / window ( 4 windows )
1.5% incentive on achievement of target
• Super Store :
Rs 4000 / rack ( approx 9 windows )
1.5% incentive on achievement of target
P&G:
Rs 550 / window
1% on achievement of target
Dabur:
Rs 450 / window
2% on achievement of target
“CHEMIST” OUTLETS
HUL:
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Rs 1500 ( 4 windows )
3.5% on achievement of target
P&G:
Rs 550 / window
4% on achievement of target
Garnier:
Rs 600 / window
Incentive on achievement of target varies from 2% - 4% every year
Products expiring on shelf: It has been found in most of the shops that the
products are expiring on the shelf itself due to lack of responsibility shown by the
merchandisers.
5.2 RECOMMENDATIONS:
PAYMENTS:
1. Voucher System:
Page 72
Offer vouchers worth the rent of the window i.e. for phase 1 (May-
July) payment will be in the form of vouchers worth Rs 1350 for
MERA outlets, Rs 5700 for SUPERMERA & Rs 1200 for
UNNATI outlets.
These vouchers will act as money between the company and the
retailers.
Page 73
This can be done by taking the account number from the retailer
and transfer the entire amount to his account at the end of the
phase.
DISPENSER’S:
Since the dispenser’s are light in weight they could be hung from the ceiling or be
hooked up to the wall near the counter.
SAFFOLA STAND:
1. Condense the stand by placing only those SKU’s which do not sell much in
a store and by placing a banner of other SKU’s.
Chapter.6: BIBLIOGRPHY
Page 74
[1] Philip Kotler, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha;
“Marketing Management”, 13th ed.(Pearson Education, 2009); Pg: 503 – 507.
[2] SHH Kazmi, Satish K Batra; “Advertising & Sales Promotion”, 3rd ed. (Excel
Books, 2008); Pg: 482, 493 – 498, 534 – 536, 549 – 552.
[3] C.R Kothari; “Research Methodology”, 2nd ed. (New Age International);
Pg: 14 – 21, 100 – 105.
[4] Richard.I. Levin, David.S.Rubin; “Statistics for Management”, 7th ed. (Pearson
Education, 2007); Pg: 402 – 451.
[5] S.P. Gupta; “Statistical Methods”, 35th ed. (Sultan Chand & Sons – Educational
Publishers, 2007); Pg: 881 – 951.
[6] Hiral Seth; “Expanding its footprint”; Business India, May 31- Jun 13, 2010;
Pg: 129.
[7] Vishal Chhabria & Priya Pandya, “Marico: Healthy Volume Growth”; Business
Standard, May 01, 2010; Pg: Opinion & Analysis.
[8] Reuters, “Marico Q4 sales sag, profits rise”; Business World, May 02, 2010;
Pg: Corporate.
[9] Vinay Kamath, Aarati Krishnan; “High food prices slow FMCG sales”;
Business Line, May 05, 2010; Pg: 1.
Page 75
[10] M.V.S. Santosh Kumar; “Food inflation inches up to 12.81%”, Business Line,
July 16, 2010; Pg: 20.
[11] www.marico.com
[12] www.management-hub.com
[13] www.knowthis.com
[14] www.wikipedia.org
[15] www.articlebase.com
APPENDIX- A
QUESTIONNAIRE – RETAILER
Page 76
Demographics:
Retail Store Name:
Beat Name:
Distributor Name:
DSR Name:
1. Since how many years have you been associated with this Loyalty
Program?
New
1
2
3
4
5
Page 77
d. P&G
e. ITC
f. Godrej
g. Others
1 2 3
5. Location of window.
1 2 3
6. If “3 or below 3” why?
7. To what extent have your sales improved during the period of displays?
0 1 2 3 4 5
(- ve growth) (0-20%) (21-40%) (41-60%) (61-80%) (81% +)
Yes No
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9. If “NO” why? / Any problems faced.
10. Did you keep a saffola stand in your store? (only for Super Mera)
Yes No
12. Did the DSR brief you about the loyalty program?
Yes No
Yes No
Yes No
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APPENDIX- B
FMCG major Marico has added another acquisition to its cap [6]. Recently, Kaya
the wholly owned subsidiary of Marico, acquired Singapore based Derma-Rx, a
chain of skincare clinics based in South East Asia with a turnover of Rs 50 crore in
all cash deal. The deal amount was approximately Rs 100 crore as told by the
officials.
Founded by Dr. S.K. Tan and Janifer Yeo, Derma Rx runs three centers in
Singapore and one in Kuala Lumpur with a customer base of 37000. As a part of
the deal, the Derma Rx clinics will run under its original brand name and the
founders will continue to spearhead the business for the next three years. Over the
time Derma Rx clinic will be integrated into Kaya, as told by the officials of
Marico. Also Derma Rx which has an advanced range of skin care products in its
portfolio will be introduced in Kaya clinics across the globe.
“With this acquisition Kaya is looking at a global footprint. Almost 45% of our
revenues will come from overseas,” says Mr. Milind Sarwate (Chief Finance, HR,
and Strategy). According to him, of the Rs 180 crore turnover the company
clocked in FY09, almost 30% came from the Middle East operations.
APPENDIX- C
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Marico: Healthy volume growth:
Marico’s results for the March 2010 quarter are a bit disappointing, given the
subdued revenue growth of 6.7 per cent year-on-year (to Rs 600 crore) and an
uninspiring margin expansion. The subdued revenue growth, however, is
consequent to the company partly passing on the decline in prices of inputs like
copra (down by an average 20 per cent in 2009-10; down 9 per cent in the quarter)
and safflower oil (down 22 per cent in 2009-10) to consumers. The reduction in
input prices led to gross margins rising over 600 basis points. However, the
company raised its advertisement and sales promotion expenditure by 63 per cent,
the benefits of which were felt in the form of higher volumes and gains in market
share in some categories [7] [8].
Overall volume growth was healthy at 14 per cent. For Parachute, it stood at about
10 per cent and for Saffola around 13 per cent. Its value-added hair oils business
clocked volume growth of 27 per cent.
Its international business, which accounts for about a fourth of sales, also
performed well with sales rising 16 per cent. The growth rates would have been
higher at 22 per cent but for the rupee’s appreciation.
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Apart from the low input prices which affected Marico’s performance there was
another factor which affected all the FMCG companies, Food Inflation. The effect
can be seen in the table below [9].
Four out of five leading FMCG companies which have so far reported their
numbers showed their March quarter sales growing at a slower pace than over the
preceding nine months.
Currently, the food inflation, based on the Wholesale Price Index, rose to 12.81%
for the week ended July 3 [10].
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