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ACKNOWLEDGMENT

This is the matter of great pleasure as well as great privilege and pride for me to
present this project report. This project became possible only due to full
cooperation and sincerity provided by the Company and institute as well. I am
indebted and thankful to the management of ITC Limited for providing me an
opportunity to work in this esteemed and flourishing organization.

I am very much grateful to Dr. Sushil Jha,lecturer,L.N.M.I,Patna who had been my


guide in the preparation of this report and give the permission to do this project in this
esteemed organization. I would like to thank to Mr.Vikrant Suri (Marketing manager)
& Mr. Rahul Ranjan,executive in ITC LTD for their unparallel guidance in the subject
throughout my training period. Last but not the least; I want to extend my love and
affection to my friends in ITC Limited for their helpful hands towards me.

I would like to take this opportunity to express my most sincere gratitude towards all
my faculty members Whose classroom teaching helped me to develop insights into the
marketing concepts in general.

I also thank the vendors and local retailers approached by me and the Respondents in
the process of collecting information.
My heartiest thanks also go to my family and friends who gave me cooperation
whenever needed.
NISHIKANT KUMAR
STUDENT DECLARATION
I,NISHIKANT KUMAR student of BBA OF JIET here by declare that the ‘Project
Report’ titled

“COMPARATIVE STUDY OF VIVEL SOAP WITH OTHER BRAND’S”

is completed and submitted under the guidance of Mr. RAHUL (Area Executive) ITC
LTD., PATNA.

The imperial findings and conclusion in report are based on the data collected by me
and the entire project work is not a reproduction of any source.

DATE
NISHIKANT KUMAR
(SIGNATURE)
PREFACE

Training as we know, is essential to supplement theoretical knowledge


with practical one and to inculcate efficiency .Due to this reason summer
training in professionally managed organization has been made an
integral part of the syllabus of MBA course.

In the above-mentioned context I had the privilege of getting this


practical training at ITC Ltd., Patna Branch. The training was in the field
of marketing management, involving to find out ”market potrntial share
and recommendations for ITC’s conflectionary particularly in Patna”

In order to gather required information’s surveyed almost every nook


and corner of the markets of Patna and compiled the data.

This project report is hereby submitted for the partial fulfillment for the
award of degree of master business administration, which will
presumably prove useful to the management of the ITC too.
Sr. No. Contents

1. EXECUTIVE SUMMARY
2. ABOUT PERSONAL CARE PRODUCTS
3. ITC HISTORY
4. ITC LEADERSHIP
5 ITC STRATEGY
6. ABOUT VIVEL SOAP
7. CIGAREETE DIVISION
8. STUDY OF SELECTED RESEARCH

PROBLEM
9. DATA ANALYSIS
14. FINDINGS
15. RECOMMENDATION
16. ANNEXURE
17. BIBLIOGRAPHY & QUESTIONNAIRE

INTRODUCTIO
EXECUTIVE SUMMARY
The study “A comparative study of ITC personal care product and its competitor
brands” is mainly concerned with the retail market in Patna. I had gone through
some number of retail outlets in every area comprising big or small and tried to
cover major area in Patna. One of the reason for this study had been to
understand and to find out the position of ITCs personal care product in the
market and to know what is the distribution channel through which the retailers
get the personal care products of ITC LTD.As retailers are the last intermediary
in distribution channel who delivers the products to the final consumer and they
very much depends upon the retail markerts to get the desired product.

In the first part of my study, I prepared a questionnaire to


know the visibility,availability and demand and salesman visits of ITC personal
care products in comparison to its competitor brands.And on that basis I came to
know which brand in personal care product is more in demand by the customers
and where ITCs product stands in the market.

In the Second part of my study, I had focused on retailers perception about ITCs
personal care products and other competing brands,theirs margin on ITC
products.

In the Third part of my study,I tried to get insight into the strategies of
leading players of personal care product………
It has been observed through the study that the retail market has great potential in
Patna.

OBJECTIVE OF STUDY

• To find out the availability of different organized brands in the


retailer market as well as in retail market.
• To find out margin of the retailers.
• To study the retailer perception towards different organized brands
of personal products.
• To find out retail market potential.
• To find out market potential.
• To find out market share of ITC in retail market.
• To find out distribution strategy of perfects.
• To find out schemes available for the retailers.
• Recommendation and suggestion for ITC’s personal care product.

SCOPE:
The study tittled “A Comparative study of ITC’s personal care products
distribution with others organized players with special reference to
retailers” was in Patna areas.I survey 250 retailers.
The project is limited to Patna and surrounding areas in the duration
from 1 June 2010 to 31st July 2010.

The finding are based on the responses given by the retailers , the
finding should not be considered universally applicable.

LIMITATION OF STUDY :

Due to time constraints the survey study was limited to 250 retailers
only.
The survey was conducted in Patna only.

ABOUT PERSONNEL CARE PRODUCT


In Line With I.T.C’S Aspiration To Be India’s Premier FMCG
Company,Recognized For Its World- Class Quality And Enduring
Consumer Trust,I.T.C Forayed Into The Personal Care Business In July
In 2005.In The Short Period Since Entry,I.T.C Has Already Launched
An Array Of Brands,Each Of Which Offers A Unique And Superior
Value Proposition To Discerning Consumers.Anchored On Extensive
Consumer Research And Product Development,I.T.C’s Personal Care
Portfolio Brings World-Class Products With Clearly Differentiated
Benefits To Quality-Seeking Consumers.
I.T.C’s Personal Care Portfolio Under The Essenza Di Wills,Fiama Di
Wills,Vivel Di Wills Vivel Ultra Pro,Vivel And Superia Brands Has
Received Encouraging Consumer Response And Is Being Progressively
Extended Nationally.
I.T.C’s State Of The Art Manufactucturing Facility Meets Stringent
Requirements Of Hygiene And Benchmarked Manufacturing Practices.
Contamporary Technology And The Latest Manufacturing Processes
Have Combined Distinctly Superior Products Which Rank High On
Quality And Consumer Appeal.
Extensive Insights Gained By ITC Through Its Numerous Consumer
Engagements Have Provided The Platform For Its R&D And Product
Development Teams To Develop Superior,Differentiated Products That
Meets The Consumer’s Stated And Annate Needs.The Product
Formulations Use Internationally Recognized Safe Ingredients,Subjected
To The Highest Standards Of Safety And Performance.

ITC TRIES TO FIND ITS FEET IN


PERSONAL CARE
Cigarettes to hotel major ITC entered the consumer products business in
2007 . in three years, it has managed to corner a two per cent market
share.
But ITC feels that’s no mean achievement for a late entrant . The
consumer and personal care products market is highly competitive,
dominated by well-entrenched brands from companies such as
Hindustan Unilever (HUL) procter and gamble, L’Oreal India , Dabur
India and cavin Care . The lion’s share is with HUL ,whose brands –
Lux,Dove,Sunsilk and Clinic Plus- have about half the market .
Anand Shah of Angel Broking says it takes about five years for a brand
to break even. If ITC gains 5% to10% market share in ten years, that
should start earning the company profits, Shah adds.
In absolute terms, two percent of the personal care market is not a small
share. According to Nielsen, the personal Carew market between March-
2009 and February 2010 touched Rs 16,313 crore,which iod\s a growth
of 10% over the same period in the previous year .while the men’s
personal care market is estimated at Rs 14,29 crore and growing at
10%,that for women is worth Rs 6,678 crore and growing at nearly 21%.
ITC knows it’s a tough fight and willing to give time. Innovation and
extensive marketing are the company’s mantra to strengthen it’s
footprint in the personal care domain.
“We intend to build on innovations to find a foothold in the already
cluttered personal care market,” says Sandeep Kaul ,chief executive of
ITC’s personal care business. The Fiama Di Wills transport gel bathing
bar is an example of product innovation which is developed with liquid
crystal freezing technology that intends to combine a shower gel in a
bathing bar format. ITC’s current personal care portfolio includes
soaps,shampooa and fragrances. These products are marketed undr the
Fiama Di Wills, Superia and Vivel brands.Superia caters to the mass
consumer segment,Vivel targets the premium and Fiama the so-called
super-premium market.
According to Kaul, the personal care sector holds immense appeal for
ITC due to the category’s size and growth potential.
But the personal care segment in India is immensely competitive.
Anand Ramanathan, analyst with KPMG, says, “In categories like soaps,
the competition is quite intense. But ITC is likely to combat it bwith it s
distribution muscle. however, because of intense competition,ITC would
be under margin pressure and so the personal care business for the
company would not b as profitable as its other businesses.”
“ITC, however,can recover from the margin pressure to some extent
with the help of premium products in niche categories,” Ramana than
points out.
Devangshu Dutta ,chief executive of specialist management consultancy
firm, Third Eyesight, feels that market leaders like HUL still feels it
reaches 60 per cent of the market. So, even a new entrant like ITC can
find potential care segment.
“ITC has diversified over the last 10 years as part of its strategy to
expand into non-cigarette categories. The real challenge will be effective
communication and marketing”, Dutta adds.
Ramanujam Sridhar, CEO, Brand-Comm, says:”There is a reasonable
amont of loyalty among consumers for personal care products,
especially in skincare, which can pose a challenge for any new entrant,
including ITC.
However, ITC enjoys a strong brand recall and its strongest qualifier is
its distribution muscle, which should help the company establish itself in
newer categories as well.”

ITC PERSONAL CARE PRODUCTS


REVEUE UP 86%
The business made a forey into fast growing and relatively under-
penetrated domestic skin care market with the launch of ‘Vivel A
ctive Fair Cream’ in June 2010 in select markets.
ITC Persoanl care business continued to make significant progress
in gaining consumer franchise with revenues growing up 86%
during the quarter .product offerings under the ‘Essenza Di Wills ’
‘Fiama Di Wills’, ‘Vivel Di Wills’, ‘Vivel’ , ‘Superia’ brands
continue to focus on enhancing consumer benefits.
The business made forey into the fast growing and relatively under
penetrated domestic skin care market with the launch of ‘Vivel
Active Fair cream’ in June 2010 in select markets. The product,
with its unique “Fair Lock System” seeks to deliver superior
benefits in the form of faster and longer fairness & higher levels of
sun protection. It has a SPF 15 sun protecting rating.
The business sustained its impressive growth in the soaps category
achieving a volume market share of 5%.Product portfolio was
enlarged with new offerings in the freshness segment with the
launch of ‘Vivel Deo Spirit’.
Currently,brands ‘Vivel’ & ‘Superia’ are each estimated to be
more than Rs 200 crore per annum in terms of consumer spend.
The business is investing in building a strong portfolio of products
& brands through well-defined research & development strategies
backed by the company’s state of the arts R&D Centre.It is also
Continously enhancing the quality of engagements with
consumers through efficient deployment of media,direct contact
and promotional activities across conventional & new age
consumer connect avenues.
The business continues to leverage investments in tax –exempt
manufacturing facilities at Haridwar(Uttrakhand0 and
Manpura(Himachal Pradesh).Apart from fiscal benifits that will
acrrue on such investments,this facilities will provide a higher
degree of flexibility in manufacturing and ensures higher standard
of product quality.
ITC EXPANDS PERSONAL CARE
PRODUCT RANGE (14TH FEB 2008)
Expanding its portfolio of personal care products,ITC today launched
‘Vivel Di Wills’ and ‘ Vivel’, yet another world class range of soaps for
the Indian Consumer.This follows the successof ITC previous launches
‘Essenza Di Wills’, ‘Fiam Di Wills’ and Superia.
Backed by Consumer insights,’Vivel Di WILLS offers a unique value
proposition of bringing together ingridients that provides the benefits of
nourishment,protection and hydration from a single product.This unique
features provide the discerning consumer complete care,thereby
enhancing beauty & confidence.
All products have been scientifically developed at ITC R&D centre after
four years of extensive research.The products are enriched with Actipro
N which have nourishing,protecting&hydrating ingridients.The equisite
fragrances for the various products have developed by leading
international fragrance houses.
The unique cartoon pack has been developed by ITC’S Design team to
provide a novel consumer experience.
The Vivel Di Wills Range is availabler in two variants-
• Vivel Di Wills sheer radiance is enriched with olive oil which
provides skin luster &radiance.
• Vivel Di Wills sheer creem is enriched with shea butter which
mosturises skin yo make it soft & supple.

The Vivel Range is available in four variants-


• Vivel Young Glow is enriched with Vitamin E & Fruit
infusions which provide youthful glow to the skin.
• Vivel Satin Soft is enriched with Vitamin E &Aloe Vera
which leaves the skin beautifully soft.
• Vivel Sandal Sparkle is enriched with Sandalwood Oil &
Active Clay which helps in providing clear skin.
• Vivel Ayurveda Essence is enriched with multiple Ayurvedic
ingredients helping to protect skin from germs 7 harsh
environment,keeping it healty &beautiful.
ITC
ITC was incorporated on August 24, 1910 under the name of ‘Imperial
Tobacco Company Of India Limited.’ Its 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. 3,10,000. This decision of the Company was to mark the beginning of a
long and eventful journey into India’s future.

The Company 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. The Company’s ownership progressively indianised, and the name of the
Company was changed 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-Exports, Foods, Lifestyle Retailing and
Greeting Gifting & Stationery- the full stops in the Company’s name were removed
effective September 18, 2001. The Company now stands rechristened ‘ITC Limited.’

Personal care products have been an important part of our life, since ages.The Soap
industry has been growing at around 10% for the last three years, while the branded
segment is growing at about 30% per annum.

While Indian consumers constantly looking for variety and getting quality-conscious
day by day, high quality soap with an Indian fragnent would surely be an absolute hit
in the market.The company manufactures a wide variety of soaps having unique
ranges as well as variants to provide nourishment, protection ,moister etc.

In 1957 the company launched its hotels business with the acquisition of a hotel in
Chennai, which was rechristened ITC-Welcome group Hotel Chola. The objective of
ITC’s entry into the hotels business was rooted in the concept of creating value for the
nation. ITC choose 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 65 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 from March 13,
2002 and became a division of the Company, Bhadrachalam Paperboards Division. In
November 2002, this division merged with the company’s Tribune tissues division to
form the paperboards & Specialty papers division. ITC’s paperboard’s 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
Company Limited (BIPCO), near Coimbatore, TamilNadu. 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 Company in Nepal as an Indo-Nepal and


British joint venture. Since inception, ITC, British American Tobacco and various
independent shareholders in Nepal have held its shares. In August 2002, Surya

Tobacco became a subsidiary of ITC Limited and its name was changed to Surya
Nepal 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 Bhadrachalam Paperboards Division to
form the Paperboards & specialty Papers Division in November 2002.

Also in 1990, leveraging its agro-sourcing competency, ITC set up the international
business division (IBD) for export of Agro- commodities. The division is today one of
the India’s largest exporters. ITC’s unique and now widely acknowledged e-Choupal
initiative began in 2000 with soya farmers in Madhya Pradesh. Now its extends to 7
states covering over 3.5 million farmers. ITC’s first rural mall, christened
“CHOUPAL SAGAR” was inaugurated in August 2004 at Sehor. The year 2006
witnessed the ramping up of the company’s rural retailing network with 10 “Choupal
Sagar” being operational in three states of Madhya Pradesh, Maharashtra & Uttar
Pradesh. Nine more “Choupal Sagar” are in an advanced stage of construction and will
be launched shortly.

In 2000, ITC’s packaging & printing business launched a line of high quality greeting
cards under the brands name “Expressions”. In 2002, the product range was enlarged
with the introduction of gift wrappers, autograph books and slam book. In the same
year, ITC also launched “Expression Matribhasha”, a vernacular range of greeting
cards in 8 languages and “Expression Paper Kraft”, a range of premium stationery
products. In 2003, the company rolled out ‘Classmate’ a range of notebooks in the
school stationery segment.

ITC also entered the Lifestyle retailing business with the WILLS SPORT range of
international quality relaxed wears 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 Club life evening wear (2003). ITC also initiated a foray into the
popular segment with its men’s wear brand, John Players, in 2002.
In December 2005, ITC introduced Essenza Di Wills, an exclusive line of prestige
fragrance products, to select ‘Wills Lifestyle’ stores.

In 2006, Wills Lifestyle became title partner of the country’s most premier 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’ takes 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. In a short span of 5 years, ITC InfoTech has already crossed
over US$ 60 million in revenues.

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 June 2002 ITC entered the confectionary, staples and snacks food
segment. In just 5 years, the foods business has grown to a significant size with 100
differentiated products, 5 distinctive brands, an enviable distribution reach, a rapidly
growing market share and a solid market standing.
In 2002, ITC 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- icon, Mangaldeep, Vaxlite, Delite
and Aim.

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 Mangaldeep across the range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC is one of the India’s foremost private sector companies with a market
capitalization of nearly US $ 19 billion* and a turnover of over US $ 5.1 Billion.
ITC is rated among the World’s best Big Companies, Asia’s ‘Feb. 50’ and the
World’s Most Reputable Companies by Forbes magazine, among India’s Most
Respected Companies by Business World and among India’s Most Valuable
Companies by Business Today. ITC ranks among India’s ’10 Most Valuable
(Company) Brands’, in a study conducted by Brand Finance and published by
the Economic Times. ITC also ranks among Asia’s 50 best performing
companies compiled by Business Week.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agro-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Personal Care, Stationery, Safety
Matches and other FMCG products. While ITC is an outstanding market leader
in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and
Agro-Exports, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery.

As one of India’s most valuable and respected corporations’ITC is widely


perceived to be dedicatedly nation-oriented. Chairman Y. C. Deweshwar calls
this source of inspiration “a commitment beyond the market.” In his own words:
“ITC believes that its aspiration to create enduring value for the nation provides
the motive force to sustain growing shareholders value. ITC practices this
philosophy by not only driving each of its businesses towards international
competitiveness but by also consciously contributing to enhancing the
competitiveness of the larger value chain of which it is a part.”

ITC’s diversified status originates from its corporate strategy aimed at creating
multiple drivers of growth anchored on its time-tasted core competencies:
unmatched distribution reach, superior brand- building capabilities, effective
supply chain management and acknowledged service skills in hoteliering. Over
time, the strategic forays into new businesses are expected to garner a significant
share of these emerging high-growth markets in India.

ITC’s Agri-Business is one of India’s largest exporters of agricultural products.


ITC is one of the country’s biggest foreign exchange earners (US $ 3.2 billion in
the last decade). The Company’s ‘e-Choupal’ initiative is enabling Indian
agriculture significantly enhance its competitiveness by empowering Indians
farmers through the power of the Internet. The transformational strategy, which
has already become the subject matter of a case study at Harvard Business
School, is expected to progressively create for ITC a huge rural

distribution infrastructure, significantly enhancing the Company’s marketing


reach.

ITC wholly owned Information Technology subsidiary, ITC InfoTech India


Limited, is aggressively pursuing emerging opportunities in providing end to end
IT solutions, including e-enabled services business process outsourcing.

ITC production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily seek a
corporate governance rating.
ITC employs over 25,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating capabilities in
a globalizing environment to consistently reward more than 3, 68,000
shareholders, fulfill the aspirations of its stakeholders and meet societal
expectations. This over-arching vision of the company is expressively captured
in its corporate positioning statement: “Enduring Value. For the Nation. For the
Stakeholder.”

ECONOMIC PERFORMANCE
• India’s largest FMCG Company.

• Fastest growing food business

• 2nd largest exporter of agric-commodities.

• Account for 2% of country agric-export.

• Gross income of Rs. 16,511 corers ( US $ 3.5 Billion)

• Market capitalizations of Rs.73,207 corers(US $ 16 Billion)


• Foreign exchange earning of US $ 2.5 Billion (1997-2006)

• Direct Group Employment of 28,000 (Of which 20,000 in ITC) and


indirect employment across the value chain of 5 million people.

• Now business alone support over 120 SME’s across the country.

SOCIAL PERFORMANCE
• Empowering over 3.5 million framers through nearly 6000 e-choupals
covering 3,6000 villages as at November 2006 : 6500 e-choupals covering
38000 villages)

• 41000 hectares greened with 149 million saplings (As at November


2006:63,000 hectares greened with 254 million saplings)
• 10,277 hectares of drylands irrigated (As at November 2006 : 15000
hectares)

• 2154 women entrepreneurs created (As at November 2006 : 4867


women entrepreneurs)

• 37000 children covered under rural education (As at November 2006 :


60000 children)

ENVIRONMENTAL PERFORMANCE
• ITC turns carbon positive ( sequestering / strong more
CO2 than it emits.

• Water positive : four year’s in a row( creating rainwater


harvesting potential greater than net consumption.)
• Getting closer to zero solid waste discharge ( Through
reduction , reuse and 100% recycling)

• ITC Green Centre , Gurgaon : The first Corporate


building in India with LEEC Platinum Rating.

• ITC’s Bhadrachalam unit : the only paperboards mill in


India producing food grade ECF (Elemental Chlorine Free) pulp.

ITC constantly Endeavors to benchmark its products, services and processes to


global standards. The company’s pursuit of excellence has earned its national
and international honors. ITC is one of the eight Indian companies to figure in
Forbes A- List for 2004, featuring 400 of “the world’s best big companies.”
Forbes has also named ITC among Asia’s’Fab 50’ and the World’s Most
Reputable Companies.
ITC has several ‘firsts’ to its credit:

• ITC is the first from India and among the first 10 companies in the world
to publish its Sustainability Report in compliance (at the highest A+
level) with the latest G3 guidelines of the Netherlands- based Global
Reporting Initiative (GRI), a UN- backed, multistakeholder international
initiative to develop and disseminate globally applicable Sustainability
Reporting Guidelines.
• ITC is the first Indian company and the second in the world to win the
prestigious Development Gateway Award. It won the $ 100,000 Award
for the year 2005 for its trailblazing ITC e-Choupal initiative which has
achieved the scale of a movement in rural India. The Development Gateway
Award recognizes ITC’s e-Choupal as the most exemplary contribution in the
field of Information and Communication Technologies

(ICT) for development during the last 10 years. ITC e-Choupal won the award
for the importance of its contribution
n to development priorities like poverty reduction, its scale and replicability,
sustainability and transparency.
• ITC has won the inaugural ‘World Business Award’ the
worldwide business award recognizing companies who have made significant
efforts to create sustainable livelihood opportunities and enduring wealth in
developing countries. The award has been instituted jointly by the United
Nations Development Programme (UNDP) and the HRH Prince of Wales
International Business Leaders Forum (IBLF).
• ITC is the first Corporate to receive the Annual FICCI Outstanding Vision
Corporate Triple Impact Award in 2007 for its invaluable contribution to the
triple bottom line benchmarks of building economic, social and natural capital
for the nation.

• ITC has won the Golden Peacock Awards for ‘Corporate


Social Responsibility (Asia)’ in 2007, the Award for ‘CSR in Emerging
Economies 2005’ and

‘Excellence in Corporate Governance’ in the same year. These awards have


been instituted by the Institute of Directors, New Delhi, in association with the
World Council for Corporate Governance and Centre for Corporate Governance.
• The Company’s Green Leaf threshing plants at Chirala and Anaparti in Andhra
Pradesh are the first units of their kind in the world to get ISO 14001 environment
management systems certification.
• ITC’s cigarette factory in Kolkata is the first such unit in India to get ISO 9000
quality certification and the first among cigarette factories in the world to be
awarded the ISO 14001 certification.
• ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO
14001 Environment Management Systems Certification.
• ITC Filtrona is the first cigarette filter company in the world to obtain ISO
14001.
• ITC InfoTech finds pride of place among a selected group of SEI CMM Level
5 companies in the world.
• ITC’s Green Leaf Threshing plant in Chirala is the first in India and among
the first 10 units in the world to bag the Social Accountability (SA 8000)
certification.
• ITC’s R&D Centre in Peenya, Bengaluru has the distinction of being the
first independent R&D centre in India to get ISO 9001 accreditation and
certified with ISO 14001 for Environment Management Systems by

DNV. The R&D centre is also certified for the standard ISO/IEC
17025:2005, by National Accreditation Board for Testing and Calibration
Laboratories (NABL). This certification is awarded for “General requirement
for the competence of Testing & Calibration Laboratories.”
• ITC Chairman Y. C. Deveshwar has received several honors over the
years. Notable among them are:

YEAR AWARD

2007:- SAM/SPG Sustainability Leadership Award conferred at the


International Sustainability Leadership Symposium, Zurich.

2006:- Business Person of the year from UK Trade & Investment, the UK
Government organization that supports overseas businesses in that country.

2006:- Inducted into the ‘Hall of Pride’ by the 93rd Indian Science Congress.

2005:- Honoured with the Teachers Lifetime Achievement Award.

2001:- Manager Entrepreneur of the year from Ernst & Youth Retail
Visionary of the year from Images, India’s only fashion and retail trade
magazine.

1998:- Honorary Fellowship from the all India Management Association.

1996:- Distinguished Alumni Award from IIT, Delhi.

1994:- Marketing Man of the Year from A&M, the leading marketing
magazine.

1986:- Meridien Hotelier of the Year.


Some of the other notable recognitions are:

• The Stockholm Challenge 2006 for the e-Choupal initiative. This award is
for using Information Technology for the economic development of rural
communities.

• United Nations Industrial Development Organization (UNIDO) Award


at the international conference on Sharing Innovative Agribusiness Solutions
2008 at Cairo for ITC’s exemplary initiatives in agri business through the e-
Choupal.
• The Corporate Social Responsibility Crown Award for Water
Practices from UNESCO and Water Digest for its distinguished work carried
out in the water sector in India. ITC also received the National Award for
Excellence in Water Management 2007 in the ‘beyond the fence’ category
from the CII Sohrabji Godreg Green Business Centre for its leadership role
in implementing water and watershed management practices.
The watershed programme also won the Asian CSR Award 2007 for
Environmental Excellence given by the Asian Institute of Management. The
Award recognizes and honours Asian companies for outstanding, innovative
and world-class projects. The Company also received the Ryutaro Hashimoto
Incentive Prize 2007 for Environment & Development from the Asia Pacific
Forum. This Award aims at promoting information dissemination of good
practices towards sustainable development in the Asia-Pacific region.

• The Reader’s Digest Pegasus Award for corporate social


responsibility, recognizing outstanding work done by socially conscious
companies.

• The Corporate Award for Social Responsibility


2008 from The Energy and Resources Institute (TERI) in recognition of its
exemplary initiatives in implementing

• Integrated watershed development programmes across 7 states in India.


The company also won the award in 2004 for its e-Choupal initiative. The
Award provides impetus to sustainable development and encourages ongoing
social responsibility processes within the corporate sector.
• The ‘Enterprise Business Transformation Award’ for Asia-Pacific
(Apac), instituted by Infosys Technologies and Wharton School of the
University of Pennsylvania for its celebrated e-Choupal initiative.
• The Best Corporate Social Responsibility Practice Award 2008
jointly instituted by the Bombay Stock Exchange, Times Foundation and the
NASSCOM Foundation.
• The NASSCOM-CNBC IT User Award 2008 in the Retail & Logistics
category. The Company has been recognized for its pro-active and holistic
approach to IT adoption and the seamless alignment of IT with business
strategy. This is the fourth time that ITC has won Nasscom’s Best IT User
Award since it was instituted in 2003.
• The Institute of Chartered Accountants of India Award for Excellence
in Financial Reporting with its Annual Report and Accounts, adjusted as a
commendable entry under the Category ‘Manufacturing and Trading
Enterprises.’
• The Business Today Award for the Best Managed Company in
recognition of its outstanding initiatives in the consumer products segment.
• The only Indian FMCG Company to have featured in the Forbes 2000 list. The
Forbes 2000 is a comprehensive ranking of the world’s biggest companies,
measured by a composite of sales, profits, assets and market value. The list spans
51 countries and 27 industries.
• The NDTV Profit Business Leadership Award for being the Best Food
Company of 2007. The Award has been instituted to recognize organizational
excellence.
• The CNBC-TV18’s International Trade Award 2008 for Outstanding
Exporter of the Year in the FMCG & Food category.
• ITC continues its dominance of ‘The Economic Times’ Brand Equity listing
of India’s 100 Biggest FMCG Brands, with three brands from its stable making
it to the top five. Gold Flake remains India’s biggest FMCG brand in terms of
sales. Navy Cut
ranks at No. 4. ITC’s Scissors brand ranks at No. 5 and is the only new
entrant into the top 10.
• Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as
the best Indian restaurant in the world and the best restaurant in Asia.
Bukhara has also been adjusted one of the top 50 restaurants in the world by
the London based magazine ‘The Good Food Guide.’Bukhara is the only South
Asian restaurant to figure in the list.
The “Best Supply Chain Practices Award” for time-effective and cost-
efficient Logistics Management in Organized Retail to ITC’s Lifestyle
Retailing Business Division (LRBD).

THE ITC LEADERSHIP

Flowing from the concept and the principles of Corporate Governance adopted
by the Company, leadership within ITC is exercised at three levels. The Board
of Directors at the apex, as trustee of shareholders, carries the responsibility for
strategic supervision of the Company. The strategic management of the
Company rests with the Corporate Management Committee comprising the
whole time Directors and members drawn from senior management. The
executive management of each business division is vested with the Divisional
Management Committee (DMC), headed by the Chief Executive. Each DMC is
responsible for and totally focused on the management of its assigned business.
This three-tiered interlinked leadership process creates a wholesome balance
between the need for focus and executive freedom, and the need for supervision
and control.

ITC BUSINESS PROFILE


• FMCG

• Cigarettes

• Foods
• Life Style Retailing

• Greeting , Gifting & Stationary

• Safety Matches

• Agarbatties

• HOTELS

• PAPERBOARDS & PACKAGING

• Paperboards & Specialty Papers

• Packaging

• AGRI-BUSINESS

• Agri Exports

• E-Choupal

• Leaf Tobacco

• GROUP COMPANIES

• INFORMATION TECHNOLOGY
THE ITC VISION

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 Stakeholders.

THE ITC MISSION

To enhance the wealth generating capability of the enterprise in a


globalizing environment, delivering superior and sustainable stakeholder
value.

CORE VALUES

Core Values includes:-

• Trusteeship
• Customer Focus
• Respect for People
• Excellence
Innovation
FACTORY
DISTRIBUTION STRATEGY
The personnel care products of ITC are distributed to the consumers in the
following manner.

HUB

WSP
(Warehouse service provider)

RETAILER
CONSUMER
RETAILER
WD (Retailer dealer)

HIERACHY OF ITC LTD..PATNA MARKETING


BRANCH

Branch manager
Assistant Branch Manager
Area manager
Area Executive

DISTRIBUTOR OF ITC IN PATNA

MAIN OFFICE:-
Patliputra trading corporation(PTC)
Opposite B.N. College,Patna

BRANCH OFFICE:- Exihibition Road.

PLAYERS IN PERSONAL CARE


PRODUCT
Personal care products in India is multi-million-pound
business. In India the major organized players are :-
• VIVEL
• MARGO
• DETOL
• LUX
• HAMAM
• BRIDGE

When we talk about major competitors of ITC , then


HINDUSTAN UNILEAVER LIMITED , P&G are the
major competitors , because they have already grab the
major part of the consumer market.
In that run in the market HUL is leading with its soap with a
numerous variant and qualities and also with a unique
technique of marketing. P&G is also in the race of soap
market.
P&G introduces its brand and a range of soap with some
different technique.

SWOT ANALYSIS OF ITC LTD


STRENGTH
• Brand
• Distribution Network
• Management
WEAKNESS
• Dependence on tobacco revenues.
• Negative connection of tobacco.
OPPURTUNITIES
• Rural Market.
• E-choupal
• Low per capita consumption of personal care product

THREATS
• Competition both domestic and international.
• Increasing tax on cigarettes.

MARKET STAND OF ITC LTD


SEGMENT DOMINACE REVENUE% PBIT %
Cigarette 70% share 77 87

Paperboard & Packaging board no.1 7 10


packaging in Asia

Agri-business One of the largest 7 4


exporter from India
Hotels ITC group ranks No.2 4 5
FMCG(others) 20%share of greetings 4 7
cards market
‘ashirwaad’ atta
isNo1

SWOT Analysis ITC.


ITC is one of India’s biggest and best-known private sector companies.
In fact it is one of the World’s most high profile consumer operations.
Its businesses and brands are focused almost entirely on the Indian
markets, and despite being most well-known for its tobacco brands such
as Gold Flake, the business is now diversifying into new FMCG (Fast
Moving Consumer Goods) brands in a number of market sectors –
including cigarettes, hotels, paper, agriculture, packaged foods and
confectionary, branded apparel, personal care, greetings cards,
Information Technology, safety matches, incense sticks and stationery.
Examples of its successful new FMCG products include:
• Aashirvaad – India’s most popular atta brand with over 50% market
share. It is also present in spices and instant mixes.
• Mint-o – Mint-0 Fresh is the largest cough lozenge brand in India.
• Bingo! – a new introduction of finger snacks.
• Kitchens of India – pre-prepared foods designed by ITC’s master
chefs.
• Sunfeast – is ITC’s biscuit brand (and the sub-brand is also used on
some pasta products).
Strengths
• ITC leveraged it traditional businesses to develop new brands for new
segments. For example, ITC used its experience of transporting and
distributing tobacco products to remote and distant parts of India to the
advantage of its FMCG products. ITC master chefs from its hotel chain
are often asked to develop new food concepts for its FMCG business.
• ITC is a diversified company trading in a number of business sectors
including cigarettes, hotels, paper, agriculture, packaged foods and
confectionary, branded apparel, personal care, greetings cards,
Information Technology, safety matches, incense sticks and stationery.

Weaknesses
• The company’s original business was traded in tobacco. ITC stands for
Imperial Tobacco Company of India Limited. It is interesting that a
business that is now so involved in branding continues to use its original
name, despite the negative connection of tobacco with poor health and
premature death.
• To fund its cash guzzling FMCG start-up, the company is still
dependant upon its tobacco revenues. Cigarettes account for 47 per cent
of the company’s turnover, and that in itself is responsible for 80% of its
profits. So there is an argument that ITC’s move into FMCG (Fast
Moving Consumer Goods) is being subsidized by its tobacco operations.
Its Gold Flake tobacco brand is the largest FMCG brand in India – and
this single brand alone holds 70% of the tobacco market.
Opportunities
• Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and
others) can be developed using strategies of market development,
product development and marketing penetration.
• ITC is moving into new and emerging sectors including Information
Technology, supporting business solutions.
• e-Choupal is a community of practice that links rural Indian farmers
using the Internet. This is an original and well thought of initiative that
could be used in other sectors in many other parts of the world. It is also
an ambitious project that has a goal of reaching 10 million farmers in
100,000 villages.
• ITC leverages e-Choupal in a novel way. The company researched the
tastes of consumers in the North, West and East of India of atta (a
popular type of wheat flour), then used the network to source and create
the raw materials from farmers and then blend them for consumers under
purposeful brand names such as Aashirvaad Select in the Northern
market, Aashirvaad MP Chakki in the Western market and Aashirvaad
in the Eastern market. This concept is tremendously difficult for
competitors to emulate.
• Chairman Yogi Deveshwar’s strategic vision is to turn his Indian
conglomerate into the country’s premier FMCG business.
• Per capita consumption of personal care products in India is the lowest
in the world offering an opportunity for ITC’s soaps, shampoos and
fragrances under their Wills brand.

Threats
• The obvious threat is from competition, both domestic and
international. The laws of economics dictate that if competitors see that
there is a solid profit to be made in an emerging consumer society that
ultimately new products and services will be made available. Western
companies will see India as an exciting opportunity for themselves to
find new market segments for their own offerings.

VIVEL PORTFOLIO
Between February and June 2008,ITC expanded its personal
care portfolio with the launch of VIVEL DI WILLS and VIVEL
Brands. Vivel Di Wills,a range of soaps, and Vivel, a rangr of
soaps and shampoos ,cater to the specific needs of a wide
range of consumers.
Vivel Di Wills and Vivel are high quality ranges of soaps and
shampoos for the upper mid and mid market consumer
segments.All products offer a unique value proposition of
bringing together ingridients that provide the benefit of
Nourishment,Protection and Moisturisation through one
product,hence providing the ever discerning consumer
complete care,which makes her beautiful and confident.

The Vivel Di Wills range soaps is available in two variants:-


• Vivel Di Wills Sheer Radiance is enriched with Olive oil,to
provide skin luster to make it radiant.
• Vivel Di Wills Sheer Cream is enriched with Shea Butter,to
moisturize skin to make it soft and supple.
The Vivel range of soaps is available in five variants:-

• Vivel Young Glow is enriched with Vitamin E and Fruit


infusions which helps in providing youthful glow to
the skin.
• Vivel satin soft is enriched with Vitamin E and aloe
vera which helps the skin feel beautifully soft.
• Vivel sandal sparkle is enriched with sandalwood oil
and actie clay which helps in providing clear skin.
• Vivel ayurveda essence is enriched with multiple
ayurvedic ingriendts which helps skin protect skin
from germs and harsh environment,keeping it healthy
and beautiful.
• Vivel silk spring is enriched with green apple extracts
and olive oil which helps in making skin smooth.
HUL’s market share declines on
competition, slow economic growth
IIndia’s largest consumer products company by sales, Hindustan Unilever
Ltd (HUL), is steadily losing market share by value in segments
including soaps, hair, oral and skin care as economic growth slows and
competition increases.
 
HUL’s decline, which extends to its volume growth in a still expanding
market for personal care products, is a signal that consumers are
switching to cheaper products made by either HUL itself or its rivals as
household budgets tighten.
 
“HUL’s products are non-discretionary but down-trading is likely as was
the case during the drought years of 2002-2003,” Merrill Lynch and Co.
said in a report that cited falling employment in Tier-II cities and an
uncertain economic outlook as key concern.
 
Buffeted by high borrowing costs and a credit crunch, India’s economy
grew 7.6% in the quarter ended September, the slowest pace in 15
quarters, down from 9.3% a year earlier and 7.9% the previous quarter.
Consumer sentiment has also been hit by a stock market plunge, job
layoffs and a freeze in recruitment in sunrise sectors such as aviation and
information technology.
 
To be sure, HUL, which boasts that it touches the lives of two out of
three Indians every day, still remains the market leader in the personal
care segment by a wide margin and analysts say the share slide is of
limited significance. “It is not a big concern for a market leader such as
HUL,” said Anand Shah, analyst at Mumbai-based brokerage Angel
Broking Ltd. “Some percentage point decline in a few categories does
not really matter.”
 
Still, it shows competition is beginning to make a dent in an expanding
market even as economic growth slows.
 
HUL saw the share of its soap brands such as Dove, Lux, Hamam and
Breeze dip by value to 50.3% in the September quarter, from 53.2% a
year earlier, according to market research firm AC Nielsen. Market
share slipped from 52.7% at the end of June.
 
The soaps market recorded sales of Rs 1,989 crore in the second quarter
this fiscal. Godrej Consumer Products Ltd, or GCPL, whose soaps
include Godrej No. 1, Cinthol and Fair Glow, was stood second with a
market share of 9.47%, followed by Wipro Consumer Care Ltd’s 8.34%,
according to AC Nielsen.
 
In shampoos, the market share of HUL brands like Clinic Plus, Sunsilk
and Dove declined to 46.1% in the quarter ended September, from
47.7% a year earlier and 46.5% in June this year.
 
The shampoo market recorded sales of Rs650 crore in the September
quarter, AC Nielsen said. Procter and Gamble Co. brands such as
Head&Shoulders and Pantene had a share of 23.86% followed by
Chennai-based CavinKare Pvt. Ltd, maker of Chik, Chik Satin and Nyle
Herbal shampoos, with 11.34%.
 
In toothpastes, HUL’s share with brands such as Closeup and Pepsodent
fell slightly to 29.6% as of September-end, from 30% a year earlier,
which was unchanged at the end of June 2008.
 
In this category, Colgate Palmolive (India) Ltd was the leader with
48.7% of the total market, while Dabur India Ltd had a 9.19 % share
with brands such as Babool, Meswak and Dabur Red. The toothpaste
market had sales of Rs800 crore in September quarter.
 
Besides market share, the company’s volume growth has also declined
by around three percentage points in the quarter ended September,
compared with the first quarter. “HUL’s volume growth has been
slowing down from 10% in March quarter to 7% in September quarter in
response to rising prices,” the Merrill Lynch report said. “Despite
stabilizing retail prices, the macro environment is not favourable enough
to suggest that volume acceleration is likely near term.”
 
In skin creams, HUL’s share with brands such as Pond’s, Vaseline and
Fair & Lovely dipped to 52.7% in the quarter ended September from
55% a year ago and 53.4% in June. L’Oreal India Pvt. Ltd, Proctor &
Gamble, Emami Ltd and CavinKare are some of the competitors in the
market.
 
“The category is at a very nascent stage and unpenetrated,” said Pritesh
Chheda, analyst at Emkay Share and Stock Brokers Ltd. “There are
some brands such as Nivea and Olay in skincare, which are picking up.
Also, there are many imported brands which keep getting launched.”
 
HUL’s share has declined although the market itself is expanding in
value terms, notwithstanding the economic slowdown. According to AC
Nielsen, the toilet soaps market was estimated to be worth an annual
Rs7,258.17 crore at the end of September, up 12.8% from a year earlier.
 
The market for shampoos grew 14.6% to Rs2,377.47 crore, for
toothpastes 14.1% to Rs3,018.46 crore and skin creams 18% to
Rs3,095.61 crore, the market research firm said.
 
HUL is facing increased competition with the entry of cigarette maker
and hotel company ITC Ltd into personal care products such as
shampoos, hair conditioners, soaps and bodywashes with brands such as
Vivel, Fiama Di Wills and Superia earlier this year.
 
“HUL continues to be a market leader in most of the FMCG (fast-
moving consumer goods) categories, but, yes in some categories the
company’s share has been going down consistently such as soaps and
shampoos, as ITC’s products are gaining market share,” said an analyst
at a Mumbai-based firm who did not want to be named.
 
ITC declined to comment on its market share. “ITC’s entry has clearly
impacted market shares of HUL,” said Emkay’s Chheda. “Currently,
ITC must be having around 1.5-2% share and entry of a strong player
definitely impacts the existing one. But still, ITC will take another two
years to grab 5-7 % share of the soaps and shampoos category.” HUL
posted a 19.7% increase in net sales during the quarter ended September
to Rs 4,028 crore, from Rs3,365 crore a year earlier. The home and
personal care division grew by 22.5%.
 
The company isn’t pressing any alarm buttons yet. “Market share, in the
short term, is the outcome of market dynamics,” an HUL spokesman
said in an email. “We continue to invest in our brands and categories
through innovation, product quality and marketing spends. As we grow
our core, we will continue to drive both market and category
development.”
 
“We believe that our brand development and activation, coupled with
proper investments over time, will help us maintain our leadership
position,” the spokesman added.
 
VIVEL SOAP STRATEGY
Since Fiama Vivel Di Wills : Beauty with Confidence
Brand : Vivel Di Wills
Company : ITC
Agency : Law & Kenneth

Brand Analysis Count : 313


Shortly after launching the up-market personal care brand - Fiama Di
Wills, ITC has launched another personal care brand - Vivel Di Wills.
Not only that, another two brands has been launched - Vivel and
Supiriya in close succession.
well below Fiama Di Wills . Vivel Di Wills has been launched even
before the brand Fiama Di Wills settled in the market. In a way ITC is
Vivel Di Wills can be termed as a brand for the middle class and priced
flooding the personal care market with its brands.
Vivel Di Wills - as the name suggests shares the term ' Di Wills ' with Fiama and
Essenza. Vivel Di Wills comes in two variants : Sheer Radiance and Sheer
Creme. Sheer RadiDance contains Olive Oil while crème variant contains Shea
Butter. What differentiates Vivel Di Wills is the ingredient branded Actipro-N
which was developed by ITC R & D team. Actipro -N nourishes, protects and
hydrates the skin thus enhancing the beauty of the skin.Vivel Di wills comes in
attractive carton package with some elegant color scheme.The brand is priced at
Rs.16 for 75 gm cake. Now comes the interesting part. When I was shopping, the
attractive packing and display of Vivel Soap.

a soap Vivel Di Wills prompted me to take one ( for my wife ) . But


when I reached the section for soaps, I was surprised to see another set
of soaps with the brand name Vivel . This was confusing to me
and I thought that it was a fake brand taking advantage of Vivel Di
Wills. On closer examination, I was surprised to find that Vivel also
belong to ITC. Then I checked the price and it was less that Vivel Di
Wills. The packaging was ordinary and there was even a sales promotion
offer attached with the soap(price off).
So there are two brands Vivel Di Wills and Vivel priced differently and
even the brand elements are different. News reports say that Vivel has
four variants : Satin soft, Young Glow, Ayurvedic Essence Sandal
Sparkle.
So the natural question is about the logic of these two brands with
similar brand names launched simultaneously. In a press release
available in the ITC portal, the category head Sandeep Kaul mentions
that they are going to use price and positioning difference to separate the
brands Fiama and Vivel Di Wills also launched

DISTRIBUTION CHANNEL OF VIVEL


SOAP FROM ITC
NEED:-
Distribution channels are sets of interdependent organizations involved
in the process of making a product or service available for use or
consumption. From the point of view of making available products and
services, the existence of intermediaries between the products and the
ultimate end users is inevitable. This inevitability is primarily due to the
fact that producers can exploit the economies of scale only if they
produce in bulk, which in turn results in the production function getting
concentrated in a single location. It is noticed that channels are created
for reaching out to different customers who are spread wide across
territories.

Each channel addresses the needs of the customer. The mass retail and
key retail segments address the convenience aspect as they are located in
proximity to residential areas. The Modern Retail outlets might address
the same customer but provides a different value proposition. It
addresses a different need of providing a wide array of products under
one roof when the customer values a shopping experience, and would
like to have an experience of picking up his groceries and personal care
products.

For example in case of VIVEL soap, ITC towards making this product
reach the end user had to employ the right channel, and ensure proper
strategies are in place towards maximizing the off take of the product
through the channel by the target customers. Now the availability of the
same product at different channel members is different. The product may
be available in boxes and in large quantity at the retailers point targeting
the retailers whereas the same product is available in the base pack with
the retailers, here targeting the retailers. Even at this part of the channel,
there is a difference. The product at a localkiryana shop may be
available with no offer whereas the same product at a big departmental
store might be available withn an offer.this is how each channel member
act differntly with the same motive of increasing sales and profit.

Vivel celebrates with brand ambassador


and superstar Kareena Kapoor
ITC, the multi-business conglomerate's personal care brand Vivel
organized a special event to recognize the support of its trade partners in
making the brand a great success. Vivel is one of the most rapidly
growing brands in the soap segment in India, today. The brand offers
consumers Total Care with its triple benefit of Nourishment, Protection
and Moisturisation. Kareena Kapoor, brand ambassador Vivel Soaps
celebrated the success with the brand and its trade partners.

Vivel has carved a strong position for itself in the Indian market, riding
high on its superior and differentiated product offerings and unique
brand experience to Indian consumers. In a span of just two years since
its launch alongwith a beautiful ambassador like Kareena Kapoor, Vivel
has received stupendous response . Vivel has successfully established its
superior value proposition to discerning consumers.

The brand attributes of beauty, warmth and quality were all brought to
life with the celebration of Vivel's success. The event provided the
guests with an opportunity to interact with the Bollywood superstar and
brand ambassador of Vivel soaps, Kareena Kapoor. With a chance to
interact with their favorite movie star, the event witnessed immense
enthusiasm and excitement amongst the partners present at the venue.

Expressing his views on the event, Mr. Atul Joshi, Head of Marketing,
Personal Care Products Business, ITC Limited said, "We take pride in
the role that our trade partners play in building consumer confidence. It
is their support and trust in us which has helped Vivel in achieving rapid
growth and consumer acceptance.We express our gratitude and
appreciation for their support.

Vivel soaps brand ambassador, Kareena Kapoor said, "I am extremely


proud to be associated with Vivel Soaps and ecstatic at the success! I
completely believe in the brand which provides me Total Care .. I feel
with the launch of, Vivel Deo Spirit, a freshness variant , Vivel has
established its differentiated positioning in this segment. I congratulate
the team for the success and hope that we together make the brand more
successful in the coming years."

The event ensured great fervor and entertainment and came to a bustling
end with Kareena Kapoor felicitating the guests
Commenting on the event, she added, "I am thankful to Vivel for having
given me an opportunity to interact and thank Vivel's trade partners for
their efforts and immense contribution in making Vivel a household
name.".

THE REVENUE GENERATING DIVISION OF ITC Ltd.

ITC is the market leader in cigarettes in India. With its wide range of invaluable
brands, it has a leadership position in every segment of the market. It’s highly
popular portfolio of brands includes Insignia, India kings, Classic, gold Flake,
Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
The company has been able to build on its leadership position because of its
single minded focus on value creation for the consumer through significant
investments in product design, innovation, manufacturing technology, quality,
marketing and distribution.

All initiatives are therefore worked upon with the intent to fortify market
standing in the long term. This in turns aids in designing products which are
contemporary and relevant to the changing attitudes and evolving socio
economic profile of the country. This strategic focus on the consumer has paid
ITC handsome dividends.
ITC’s pursuit of international competitiveness is reflected in its initiatives in the
overseas markets. In the extremely competitive US market, ITC offers high-
quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC
has become a key player in the GCC markets through growing volumes of its
brands.

ITC having the four cigarettes manufacturing units

• BENGALURU (BANGALORE)
• KOLKATA
• MUNGER
• SAHARANPUR (U.P.)
These four production units have got the ‘five star rating’ by the British Safety
Council.

FMCG Business Initiatives

Branded Packaged Personal Care Product.

• Leverages
• Unique Agric sourcing skills
• ITC Welcome group’s Experts & Dermitologists.
• FMCG distribution synergies
• ITC R&D Centre, Bangalore
• Staples;Vivel Di Wills,Vivel,Fiama,Superia.
• Soaps: Vivel,Fiama.

STUDY OF SELECTED RESEARCH PROBLEM


DEFINITION OF RESEARCH
PROBLEM
Marketing research implies a disciplined approach to marketing problems of
various kinds. With the development of sophisticated business organizations and
changing nature of consumer behavior, these problems tend to become more
complex and decisions taken to solve them have far-reaching effects. It is sound
business practice that marketing policies should found on carefully planned
research: this is possible only by applying the systematic approach of research
methodology used in other areas of investigation.

According to American marketing association, “Marketing Research is the


systematic gathering, recording and analyzing of data about problems relating to
the marketing of goods and services.”

The above definition implies:

.Marketing research is a systematic process and not a haphazard activity.

.It includes not only collection of data but analysis of the data so collected.
.The data so collected and analyzed is used to solve various marketing problems
relating to goods and services.
In the branded soap market, to get down to basics, Frito Vivel commands a share
of 45%, followed Vivel Di Wills at 27% and ITC at 16%. The rest is divided

between a handful of new entrants, wannabes and many regional players. Out
of these ITC’s vingo s a new entrant in the market, which has
launched in 2007. ITC has launched vivel in a wide variety of
formats, ranging from potato chips to triangular bridges.
Because of its different and catchy advertisements vivel has
created a buzz in the market.

Therefore our aim was to find the most popular Varient among all the offerings.

We began our analysis by dividing people into those who like to use soaps and
those who don’t. We based our study on survey of people who like to use soap.
This survey was conducted in Patna.

OBJECTIVES OF THE RESEARCH PROBLEM


The objectives are:

• To find out awareness of VIVEL SOAP among consumers .


• To analyze the reason for popularity of most preferred soap.
• To know the satisfaction level of consumers who use VIVEL SOAP.
• To find out comparative performance of VIVEL SOAP.
• To find out mode of Brand awareness of VIVEL SOAP among consume
The research has used primary data, magazines, internet books, some
market survey using marketing tools like asking questions through
questionnaire, personal interview. Research design is the basic framework
which provides guideline for the rest of research process. It species the
methods for data collection and data analysis. The major source of the data
collection was primary sources as well as secondary source. Secondary
source include, Internal source as well as External sources. It also refers to
readymade published information that is ready available within or outside
the companies premises.
DATA ANALYSIS
ANALYSIS OF DATA

The analysis of data was done according to the following:

• Product wise
• Price wise
• Promotion wise
• Operation wise

The product wise analysis comprise of different variants present in VIVEL & in
VIVEL DI WILLS.

Price wise analysis includes the PTR Analysis, margin analysis, different SKU
wise analysis of price etc.

Promotion wise analysis includes different sales promotions available, different


offers available etc.

Operation wise analysis includes time motion study, liquidity ratio etc.
In order to extract the meaningful information from the data collected, an
analysis of data is done using various graphs and charts.

DATA SOURCE

Data, in fact are the raw material with which a market research
function. The accuracy of the collected data is of great significance for
drawing correct and valid conclusion from the investigation.

Depending upon the source, data can be classified into two categories.

• Secondary Data: Secondary data is the data which is already


collected by other, for the purpose of the solution of the problem
at hand , such as documentary sources like, file records, diary,
journals etc….

• Primary data: Information , which has been gathered for the first
time, is called primary data. Here the sources, expected to have
the desired information are contacted by the various methods to
collect the data.

For the study , primary data was collected from the respondents in
Patna, and the secondary data was collected from the business
magazines, news paper and internet.
DATA COLLECTION METHOD
Necessary information have been collected for the purpose of study by
using the both, Primary as well as secondary sources.

• Questionnaire method:- Separation structure questionnaire, each


for retailers as well as for retailers had been developed, consisting
of questions regarding necessary information required. The
respondents were interviewed personality.

• Observation method :- respondents were observed carefully


during the course of study, so as to get an idea about their
individual responses about the product.

Sampling Method:-
A probability sampling technique for the study or problem enabled to
get much accurate data’s with varying simple random tool.

Sampling Unit:-
The sampling unit is the basic unit containing the element of the
population to be sampled. Eg. retail outlets.

Patna area was taken as the population Patliputra colony, Boring Road,
Boring Canal Road, Patna city Danapur, KKankad Bag,Raja Bazar, Rajeev
Nagar were the areas taken as sample.
Sample Size:-
My sample is taken from the retailer market as well as from the retail
market.

The total no of sample are as follows:-

Retailer- 250

AVALABILITY OF DIFFERENT BRANDS

Number of respondents: - 250


BRANDS NO OF PERCENTAGE
RESPONSES
LUX 245 98 %
DETOL 230 92 %
VIVEL 185 74 %
MARGO 200 80 %
INTERPRETATION
LUX & DETOL are almost available in most of the retailers. The
percentage availability of LUX & DETOL is 98% and 92 %. While
MARGO has got 80 % It shows that the retailer good penetration
of MARGO, LUX & DETOL in the market, Where as VIVEL is
available in 185 outlets among 250 outlets. The percentage
availability is only 74 %.

GRAPH 1 :-SHOWING PERCENTAGE AVALABLITY OF BRAND’S

TABLE 2- SHOWING VISIT OF SALESMAN

Number of respondent-250

BRANDS NO OF PERCENTAGE
RESPONSES
LUX 245 98 %
DETOL 210 84 %
VIVEL 150 60 %
MARGO 200 80 %

INTERPRETATION:-

Regular visit of the salesman in the market shows their sincerity and effort
for the product. If we compare this table with the previous one, It shows
that in the outlet where LUX, DETOL & MARGO is available, the salesman
visit is regular. In terms of percentage LUX, DETOL & MARGO has 98 %,
84 %, and 80 % salesman visit respectively. The percentage of VIVEL
SOAP is 60 % salesman visit.

GRAPH2 –SHOWING PERCENTAGE OF SALESMAN VISIT

TABLE :- Showing margin of the retailers

No of Retailer =250
Margin No of Reatiler
Rs 0.50 35
Rs 1.00 117
At m.r.p. 98

INTERPRETATION:-
Majority of the retailer work in Rs.1 margin. Only 98 out of 250 work in
same price and 35 retailers out of 250 retailer’s sale the product at
Rs.0.50 margin. 117 retailers out of 250 retailers are selling the product
at Rs.1.00 margin.

GRAPH :- Showing margin of the retailers


FINDINGS
FINDINGS
Starting my findings on a positive note,ITC products are equal
in quality and packaging to every other brands operating in this
range.
My findings are here under:-
• The basic of marketing teaches us about developing
relationship and sustaining it, this is what ITC is lacking in
retailer market.

• Supply of all the variants of ITC’s personal care product is


not consistent. Due to this, salesman visit of ITC is not
regular in the market.
• Salesman of ITC are very selective in visiting the shops in a
particular market, they have a preconceived notion for the
market.

• The market is not aware of all the variant of ITC’s Vivel


soap..

• The concept of SCP (stock carrying point) in Patna is not


adding any benefit to the company.

• Scheme is offered by all the players in the retailer market,


except ITC.

• Convenience is also looking after the retailer market and


they are offering ITC’s personal care product at very low
price.

• Retailing of ITC is good as compared to retailer market.


• Retailing of ITC’s personal care product in boring road,
Boring Canal road and Patliputra is very good as compare
to rest of the Patna.

• ITC’s personal care product is very much dependent on its


soap and shampoo.

• Patna city retail market is the biggest in Patna. The quality


sold in this market is more than, the quantity sold by the
of the Patna retail market collectively.

• In term of availability, skin care product‘s dove and grainer


is at the top.

• Margin of the retail is least in Patna city as compare to


other brand.

• HUL & P&G’s visit in the retail market is regulars and


retailers are very much satisfied with them.
RECOMMENDATION
RECOMMENDATION FOR ITC’S PERSONAL CARE PRODUCT

• It is said that unless the product is not consumed, it is not


counted as a sale because before consumption there is every
chance of return of product due to expiry, damage etc. so
strong retailing is very much required because they are last in
distribution channel. So every player’s focus very much on
retailing, but to reach each and every retail outlets is not
possible for the distributers due to which retailer penetration is
also very much required.

• The time limit of credit should be extended because it is biggest


hurdle in retailer penetration.

• Regular supply of all the variants of ITC personal care product


has to done.

• As I have already stated in finding part that ITC’s personal


care product is very much depends on soap and shampoo in
the market, so regular supply these product are also required
for penetration of retailer market in personal care product
• ITC’s personal care product is still in growth phase, so
development of relationship and sustaining is very much
required.

• ITC’s shop and shampoo is developed product. So ITC can use


it as a sales promotion tool for personal care product.
Cash discount in soap and shampoo may be given if Retailer
purchases more than the set quantity of personal care product.

• Special Scheme for the retailer market should be


introduce d because it attracts retailer to purchase more.

• Retailer market is a place where no company focuses on


visibility, so if ITC focuses on it then it would be
beneficial

• Price should be same throughout the market , because if


convenience offers same product at a lower price then it
give bad impression on the company.
• In retail market salesman should visit each outlet because
to sell 99Rs hair care product only big outlet are not
required even small retailers can sale it.

CONCLUSION & SUGGESTION


CONCLUSION
As performance appraisal represents an important application
area for the organizational behavior. Traditional techniques
for performance appraisal have been handled fairly
ineffectively and are coming under the scrutiny of equal
opportunity advocated regarding their validity. The purposes
and trends in performance appraisal have been discussed. We
all know that performance plays a vital role for achieving any
organizational target and the target is achieved through the
performance of the employee and for this a continues
appraisal system is required so that the employee could get
motivated and can perform better on its behalf.
Performance appraisal, we can say that is a systematic
description of an employee’s job relevant strength and
weaknesses. Its serves two major purposes in organization.
• To improve the job performance of employees.
• To provide information to employee and manager for use
in making decision.
Through our project which was done in VIVEL SOAP we
Come to know about their system of performance appraisal,
which was through ranking. The system was not as
transparent as stated by most of the employee but they
accept the fact that they have a effective performance
appraisal system. So we come to know that to improve the
value of performance appraisal interviews systematic training
for supervisor is essential.

SUGGESTIONS
The findings clearly determines the various shortcomings of
the performance appraisal system so there are few suggestion
which will help the organization to improve the performance
appraisal system and thus, will result in improving or
motivating the employee in order to “Perform better"
and the suggestion are as follows:-
• The performance appraisal system should be made
transparent so, that the employee freely communicate
with the leader in order to improve his/her performance
this will help the employee to understands his/her
strength and weakness.
• Performance appraisal should be done without biasness.
It should be based on work of staff, its detain for work
and organization.
• Performance appraisal is a systematic technical tool to
improve the efficiency of the employee and thus, the
performance appraisal should be done on quarterly ands
half yearly basis instead of annual basis.
• Performance and rewards should be made directly
proportional, so the employee gets motivated and this
will help him/her to improve better.
• A proper feedback should be given to the employee
highlighting their shortcoming and could perform better
in future.
QUESTONNAIRE& BIBLIOGRAPHY

QUESTIONNAIRE
Dear Respondent,
Kindly fill up the questionnaire below for providing us your valuable
opinion, which will help us to serve you better. Your responses will be
kept strictly confidential.

• NAME:

• NAME OF THE OUTLET:

• ADDRESS:

…………………………………………………………………………………
Q1)Do you sell personal care products?

IF YES, Then Most demanded brand for soap.

Ans.

Q2) which company in its brand of soap is competing in the market in terms of
price to its competitor?

• Procter & Gamble


• I.T.C Ltd

• Hindustan uniliver

• Colgate & Palmolive

Q3) Does customer go for Vivel soap?

Ans. If Yes, why

If No, why

Q4)Which of the organized companies products in 18 rs. range that u sell?

Ans.

Q5) At What margin do u sell the product?

Ans.

Q6)Do you think that the advertisement given in T.V for Vivel soap has increased
its sale in your outlet?

Ans. Yes No

Q7)Are customers aware of the different variants of vivel soap?

Ans. If Yes,then

Name some of the variants available in your outlet

Q8) What is your monthly average sale of the following brands?

Ans. Dove, Park avenue, cinthol, Fiama di wills


SURVEY ON DEMAND OF I.T.C. PRODUCT’S IN
MARKET
• NAME OF THE CUSTOMER : ___________________________________________

FEEDBACK REGARDING I.T.C. PRODUCT’S


• Do you satisfy with the qualities of the I.T.C. Product’s?

(a).Yes (b) No (c) Can’t Say

2. Are you satisfied With the Price of I.T.C Products?

(a).Yes (b) No (c) Can’t Say

3. Does I.T.C Products Fulfill The Growing Needs Of The Customers?

(a)Yes (b) No (c) Can’t say

4. Did I.T.C Made its Name In personal care products In a short period

Of time?

(a)Yes (b) No (c) Can’t Say

5. Is I.T.C. product your 1st choice in cosmetic product’s?

(a)Yes (b) No (c) Can’t Say


BIBLIOGRAPHY

Reffered Websites:-
• www.itcportal.com
• www.google .com
Reffered Books:-

• Marketing management by Philip Kotler


&Kevin L. keller
• Marketing Research by Naresh k.Malhotra
• Method of social survey and research by S.R
Bajpai.
Reffered Newspaper:-
• Times of India
• The Hindu

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