PERSONAL CARE PRODUCT OF ITC

Estimate market potential for soap, shampoo & fairness cream Identify major competitors in these entire segments Consumer preference for various promotional schemes Important factors that influence buying of these products Understanding the visibility and availability of ITC brand of personal care products To know the competitor of each line of ITC personal care product in the market. To analyze all the data and provide learnings, conclusions and recommendation.

ITC LTD

Gaining knowledge about the process of sales.

Exchange of facts, opinions, idea while interacting. Helping to analyse situations and for the company for the purpose of growth. Helping to build strategy for the company to tackle the competitors. To find out the potential area and outlets in the market.

 ITC

was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited One of India's premium private player with an experience of 100 years Large and establish distribution network with an market capitalization of us $ 15 billion Annual turnover of us $ 4.75. It enter into the personal care segment in 2005. It has a vast diversification.

ITC LTD

Aug1910 ITC incorporated under the name of 'Imperial Tobacco Company of India Limited'. 1925 ITCs Packaging & Printing Business Division was set up as a strategic backward integration for ITCs Cigarettes business. 1974 The Company's ownership progressively Indianised, and the name of the Company was changed to ITC Limited (Indian tobacco company). 1975 The Co. launched its HOTEL BUSINESS which was named ITC-Welcome group Hotel Chola. 1979 ITC entered the Paperboards Business by promoting. Bhadrachalam Paperboards Limited, which today has become the market leader in India. 2002 Enter into fmcg sector.
24

ITC LTD

ITC BUSINESS PORTFOLIO

ITC LTD

FMCG &CIGARETTES

HOTELS & IT

AGRI BUSINESS

PAPERBORD &PACKAGING

ITC LTD

 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 Companys stakeholders

ITC LTD

To enhance the wealth generating capability of the enterprise in a globalizing environment Delivering superior and sustainable stakeholder value

Strengths Innovative Aspects Presence of Established distribution network in both. Strong R& D Highly skilled HR Effective CSR

Weaknesses Strong Competitors Low Export Level (At Present) Changing consumption pattern High advertising costs

ITC LTD

Opportunities Large domestic Market Untapped rural Market Changing life styles & rising income levels

Threats Tax & Regulatory structure Mimic of brands New Entrants Increasing cost of raw material.

ITC LTD

Current market size estimated at over Rs. 29000 cores (growing at 12% p.a.)
ITC LTD

ITC presence established in Body Wash (Soaps, shower gels), Hair Care (Shampoos, conditioner). Product portfolio enlarged with the launch of Fairness cream. Essenza Di Wills (Prestige) Fiama Di Wills (Premium) Vivel Di Wills and Vivel (Mid) Superia (Popular) Products well received in the market, gaining customer acceptance Supported by investments in brands celebrity endorsements Portfolio approach straddling all consumer segments with 4 umbrella brands

Investments being made in Research & Development and strategic tax incentivized manufacturing sites

They have a DIFFERANTIAL MARKETING STRATEGY type. Always use their existing channels. Various kind of promotions Brand Ambassador are selected according to the brands and mostly are YOUTH ICONS They emphasize on going with current trend in the market .

ITC LTD

A number of alternate 'channels' of distribution may be available: Distributor, who sells to retailers, Dealer Or wholesaler, who sells to end customers Advertisement typically used for consumption goods ITC follows: CHANNEL WISE DISTRIBUTION Here the total product is divided into different channels like, Health care product, Personal care products, Home products & etc. BEAT WISE DISTRIBUTION Here total market is divided into different areas where the products are served to all the outlets exist in that area.

ITC LTD

ITC supply chain consists of diverse categories with different priorities More than 1000+ SKUs Buying Value $68 MM Warehousing space of more than 3.5m SFT around 55+ locations Products manufactured at 45+ plants More than 650 trucks moved every day Direct distribution from factories to Distributors. Indirect movement through RDCs Combination of Rail/Road/Sea movement within the country depending on the product type. (Target is Safer, Faster, cost effective)
ITC LTD

250

200

150 NO OF OUTLETS 100 %

VISIBILITY OF PERSONAL CARE PRODUCTS

NO OF OUTLETS

ITC LTD

VISIBLE
50

174

85

NOT VISIBLE
0 VISIBLE NOT VISIBLE TOTAL

30

15

TOTAL

204

ANALYSIS BASED ON VISIBILITY

The above chart shows that from 204 retailers it is observed that ITC products are visible in 174 shops & 30 shops do not have ITC personal care products. So this indicates that ITC has high visibility. Absence of ITC brands in shops shows that this patch of outlets is lacking distributors attention, brand awareness among retailers or consumers.

ITC LTD

 HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd. It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to Hindustan Unilever Limited. It has over 35 brands. Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India.

ITC LTD

Strengths: Strong brand portfolio, price quantity & variety. Innovative Aspects. Presence of Established distribution networks in both urban and rural areas. Solid Base of the company. Corporate Social Responsibility(CSR)

Weaknesses: "Me-too" products which illegally mimic the labels and brands of the established brands. Strong Competitors & availability of substitute products. Low exports levels. High price of some products. High Advertising Costs.

ITC LTD

Opportunities: Large domestic market over a billion populations . Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers. Export potential and tax & duty benefits for setting exports units.

Threats: Tax and regulatory structure. Mimic of brands Removal of import restrictions resulting in replacing of domestic brands. Temporary Slowdown in Economy can have an impact on FMCG Industry.

 Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. Procter & Gamble entered Indian markets in 1951 with Vicks Product Inc. USA, branch of P & G. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment.
ITC LTD

Strengths Leading Market Position Diversified and innovative product Portfolio Strong Finances in past years

Weakness Quality control Problem Decreased Revenues in their Northeast Asian Market
ITC LTD

Opportunities Developing Markets Demographic trends across the world

Threats Competitors Rising cost of energy prices New Regulations

COMPETITOR SHAMPOOS SUNSILK HEAD & SHOULDERS PANTENE DOVE SHAMPOO CLINIC PLUS CLINIC ALL CLEAR GARNIER

AVAILABILITY 160 50 200 200 180 100 180

% 78.43 24.5 98.03 ITC LTD 98.03 88.23 49.01 88.23

250 200 150 AVAILABILITY 100 50 0 SUNSILK HEAD & SHOULDERS PANTENE DOVE SHAMPOO CLINIC PLUS CLINIC ALL CLEAR %

COMPETITOR SOAPS LUX

AVAILABILITY 204

% 100

DOVE
DETTOL PEARS LIRIL SANTOOR

200
150 180 160 50

98.03
ITC LTD 73.52 88.23 78.43 24.5

250

200

150 AVAILABILITY 100 %

50

0 LUX DOVE DETTOL PEARS LIRIL

Fair & lovely Emami Naturally Fair Fairever Ponds

79 15 17 16

Ayur fairness sunscreen

12
30 31

ITC LTD

79

30

12

garnier

Ayur

Lakme

Preferred attributes in a cream Fairness Moisturizer Sunscreen Removal of dark spots

% 35% 23% 18% 24%

ITC LTD

Preferred attributes in cosmetic cream

94 75

99

Fairness

Moisturiser

Sunscreen

Removal of dark spots

Monthly Sale in Rs. Of ITC company

9%

Boring Road Jagat Narayan Road

ITC LTD

Key accounts
Churi Market Daldali

1%

Nala Road Patliputra

Budha colony S.K Nagar Alpana Market North Mandiri South Mandiri S.K. Puri Exhibition Road

10%

1% 0%

7%
0% 0% 0%

Area Under survey Boring Road Jagat Narayan Road Key accounts Churi Market Daldali

No of Outlets 15 20 3 15 15

Monthly Sale in Rs. Of ITC company

Monthly Sale in Rs. Of HUL 107 10000 0 10000 100000

38230 0 279

20000 40000

Nala Road
Patliputra Budha colony S.K Nagar Alpana Market North Mandiri South Mandiri S.K. Puri Exhibition Road Total

15
5 16 15 15 15 15 15 15 204

107
5250 0 468 7270 6311 983 8983 6834 120100

15000
25000 10000 15000 20000 15000 7000 10000 15000 453200

Chart Title
160000 140000

ITC LTD

120000 100000 80000 60000 40000 20000 0

Monthly Sale in Rs. Of ITC company

Monthly Sale in Rs. Of HUL

Effects of discounts on consumer purchasing behaviour

Discounts

100

Column1 Valid

Column2 no imp low imp

Frequency 5 32 44 95 24 200

Percent 2.5

ITC LTD

80

16 22

Frequency

60

neutral
40

imp
very imp Total

47.5 12 100

20

0 no imp low imp neutral imp very imp

As seen in the graph above, approximately 48% respondents rated Discounts as an important factor while choosing personal care products.

Effects of Promotional Schemes on consumers Purchasing Behaviour

Promotional Schemes

120

Frequency

Percent

100

Valid
80

no imp low imp

11 22 49 106 12 200

5.5

ITC LTD

Frequency

11.0 24.5 53.0 6.0 100.0

60

neutral imp very imp Total

40

20

As seen in the graph above, approximately 53% respondents rated Promotional Schemes as an important factor while choosing personal care products

Role of Shopping Convenience

Shopping Convenience

Frequency
80

Percent

Valid
60

no imp low imp

8 13 48 79 52 200

4.0 6.5 24.0 39.5 26.0 100.0

ITC LTD

Frequency

40

neutral imp very imp

20

Total

As seen in the graph above, approximately 40% respondents rated Shopping Convenience as an important factor while choosing personal care products

Role of Price of Personal Care Products

100

80

Frequency

60

ITC LTD

40

20

0 no imp low imp neutral imp very imp

Frequency Valid no imp low imp neutral imp very imp Total 11 21 46 99 23 200

Percent 5.5 10.5 23.0 49.5 11.5 100.0

Role of Word of Mouth on Consumers Purchasing Decision

Word of Mouth

Frequency

Percent

80

ITC LTD

Valid
60

strongly disagree Disagree

26

13.0

57 44 71 2

28.5 22.0 35.5 1.0

Frequency

40

Neutral Agree

20

strongly agree

0 strongly disagree disagree neutral agree strongly agree

Total

200

100.0

Role of Tv Ads
TV Ads

125

100

ITC LTD

Frequency

75

50

25

0 strongly disagree disagree neutral agree strongly agree

Frequency Valid strongly disagree Disagree Neutral 6 51 18

Percent 3.0 25.5 9.0

Agree
strongly agree Total

124
1 200

62.0
.5 100.0

Role of Newspaper Ads

100

80

ITC LTD

Frequency

60

40

20

0 strongly disagree disagree neutral agree 22.00

Frequency Valid strongly disagree Disagree Neutral Agree 22.00 Total 7 93 30 68 2 200

Percent 3.5 46.5 15.0 34.0 1.0 100.0

Role of Internet
Internet

100

Frequenc y

Percent
ITC LTD

80

Valid
Frequency
60

strongly disagree Disagree Neutral Agree

65 88 15 32 200

32.5 44.0 7.5 16.0 100.0

40

20

Total
0 strongly disagree disagree neutral agree

Role of Family & Friends

Family/Friends
Frequency Percent

120

ITC LTD

100

Valid
80

strongly disagree disagree

12 44 13 109

6.0 22.0 6.5 54.5

Frequency

60

neutral agree

40

20

strongly agree
Total

22
200

11.0
100.0

0 strongly disagree disagree neutral agree strongly agree

Role of Package Design

Package Design

Frequency

Percent

150

ITC LTD

Valid
120

strongly disagree
disagree

1.0

23

11.5

Frequency

90

neutral

26

13.0

60

agree

146

73.0

30

strongly agree Total

1.5

200

100.0

0 strongly disagree disagree neutral agree strongly agree

Role of Availability
Does unavailability affects purchase
Frequency Percent

140

ITC LTD

120

100

Frequency

Valid
80

yes

127

63.5

60

no

73

36.5

40

Total
20

200

100.0

0 yes no

Role of Interest

Interest in buying new product

100

80

Valid

not at all interested

17

8.5

Frequency

60

not interested neutral

25 33 82 43 200

12.5 16.5 41.0 21.5 100.0

40

interested very interested Total

20

 ITC personal care products have been found in number of outlets but stocks are not moving at a regular period of time. By asking to the consumers I have found most of them are loyal customers of their Brands. But effective Promotion could affect them. There are large number of consumers who have not used personal care products of ITC. It is due to they are not very well aware about the products. In soap market Lux and Dove are the largest players. These two are HUL brands and consumers is having high faith on this company because quality products at a affordable price is main aim of HUL company Most of the consumers are satisfied with their brands like LUX, DOVE & PEARS due to texture, smell & Moisturizing property.
ITC LTD

 In shampoo Dove and Pantene are major players due to moisturizer property in compare to other brands and hair fall also controls so consumers prefer these brands. For shampoo advertisement is also one of the main thing to allure customers but in ITC company this strong promotion is missing. Vivel active fair is targeting those consumers who are using Fair & Lovely, Emami Naturally Fair etc. But promotion of these brands is very strong in comparison to vivel cream so there is negligible demand in market for this products. Most of the consumers affected by schemes and offers. Consumers within age group 40 and above come under this category. Vivel Deo spirit is high in demand it is due to offer and reasonable price.

ITC LTD

Most of the consumer prefers those soaps in which smell is great. In ITC products smell property is also absent.

Stock problem need to be curbed out though they having the stock in the godown it is unable to reach the dealers The timing delivery is very necessary. The packaging need to be upgraded The quality of the product need to be enhanced The must give free samples with the hot product like ashirwad atta and vivel soap. Every variant need to have RS 1 sachets. Need to tap the rural market. Need to focus on advertisement like T.V, NEWSPAPER, RADIO, AS WELL AS PAMPLETES. Off seasons campaign in rural area Need to create two separate team name fiama and vivel which will only deal with shampoo. Need to promote more LP outlets. Live workshop in different malls to attracts customers

ITC LTD

ITC LTD

THANK YOU