YESTERDAYS WISDOM, TOMORROWSPRODUCTS. Crores of Indian Households. A number of Family members. Multiple needs. One choice.

INTRODUCTION OF THE COMPANY The inception of Emami Group took place way back in mid seventies when two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka left their high profile jobs with the Birla Group to set up Kemco Chemicals, an Ayurvedic medicine and cosmetic manufacturing unit in Kolkata in 1974. Several such companies headquartered in Kolkata were considering shifting out of West Bengal due to labor unrest and political problems. A dream of reaching out to the Indian middle class; a target audience whom they thought will have increasing potential for consumption, the company started manufacturing cosmetic products as well as Ayurvedic medicines under the brand name of Emami from a small factory in Kolkata. But against all odds with a vision of combining the age old wisdom of Ayurveda with modern manufacturing techniques for creating winning brands the company was started with a meager amount of Rs. 20,000. The first-rate quality of the products soon created a consumer pull and gradually some people were hired to work for them. A chain of distributors was established and the sale of Emami products spread from West Bengal to rest of Eastern India and gradually to other states. Mr. Agarwal decided to produce in the Himani factory different types of health care items and toiletries based on Ayurvedic preparation. Ten years after commencement of the company, it launched their first flagship brand Boroplus Antiseptic Cream under the Himani umbrella in 1984. Many additional brands followed Boroplus including Boroplus Prickly Heat Powder which came as a brand extension of the mother brand. Emami brands started selling in all states of North, East and West India. Today Boroplus is not only the largest selling Antiseptic Cream in India but also in Russia, Ukraine, and Nepal. In 2000, with a view to concentrate on its core FMCG business, Emami's investment undertaking was demerged and Pan Emami Cosmed Ltd. issued its fully paid up shares to shareholders of Emami in the ratio of 1:1. In 2003 a new factory unit was set up at Amingaon, Guwahati. A Public Issue of 50 lacs Equity Shares of Rs2/- each at a price of Rs. 70 followed in 2005. The issue was oversubscribed within few seconds of its opening with an overall over subscription of 36 times of the issue size. The share price sold at Rs. 70 today is quoted in the stock market as Rs. 210. In 2005 Emami created a marketing history in India by launching Fair and Handsome cream for men. In 2006 the company decided to introduce a Health Care Division and a number of new brands of Ayurvedic OTC medicines. The company has taken up the challenge of growing this new division with a dedicated and enthusiastic team working on this project. Among the brands created by the company, today Navratna brand is Rs.300 crore followed by Boroplus brand standing at Rs.200 crore and Fairness family standing at Rs.65 crore. Sona Chandi Chyawanprash, Menthoplus and Fast Relief also among the top brands in their respective categories. Emami Limited with an investment of Rs 700 crore has acquired major stake in Zandu Pharmaceuticals Works Ltd on the basis of huge business synergy between Zandu and Emami. Post the acquisition of Zandu Pharmaceuticals a century old household name in India, some of its prominent brands like Zandu Balm, Zandu Chyawanprash, Zandu Kesri Jeevan, Zandu Pancharishta, Sudarshan and Nityam Churna are also under Emamis basket of brands. Within three decades, the company has grown into a huge Rs. 755 crore Emami Ltd under the flagship company of the Rs.2200 crore Emami Group.

INDUSTRY ANALYSIS:

Fast Moving Consumer Goods The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The Fast Moving Consumer Goods (FMCG) industry in India is one of the largest sectors in the country and over the years has been growing at a very steady pace. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organized and unorganized. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. Industry Classification The FMCG industry is volume driven and is characterized by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts. The fast-moving consumer goods have started moving off the shelves faster in the past two months on stable prices, tempting companies to boost promotional activities and offer products at multiple price points. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the foodprocessing industry. To address healthy rural demand and a cautious urban consumer, companies such as Hindustan Unilever (HUL), Nestle, Procter & Gamble, Godrej and Dabur are shifting focus to volume growth and making higher investments in mass brands. HUL, which had been focusing on premium high-margin products, is now Sharpening its mass-products strategy. FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India. . An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total

individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset. A distinct feature of the FMCG industry is the presence of most global players through their subsidiaries (HUL, P&G, Nestle, Heinz, Colgate-Palmolive), which ensures new product launches in the Indian market from the parent's portfolio. Availability of key raw materials and cheap labor costs give India a competitive edge. Rural and semi-urban markets will drive the FMCG business in the country to a compounded annual growth of 50% for the next six years. A good number of malls, nearly 220 in the country, would come up in the next four to five years in semi-urban areas that would lead to an increase in the demand for the products. CELEBRITY ENDORSERMENTS: Some of the celebrities like Amitabh Bachchan and Shah Rukh,Khan and other celebrity endorsers of Emamis brand include Madhuri Dixit, Kareena Kapoor, Govinda, Sourav Ganguly, Chiranjeevi, Surya and Upendra among others. SWOT ANALYSIS OF FMCG SECTOR : Strengths: 1. Low operational costs. 2. Presence of established distribution networks in both urban and rural areas. 3. Presence of well-known brands in FMCG sector. Weaknesses: 1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors. 2. Low exports levels. 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Opportunities: 1. Untapped rural market. 2. Rising income levels, i.e. increase in purchasing power of consumers. 3. Large domestic market- a population of over one billion. 4. Export potential. 5. High consumer goods spending. Threats: 1. Removal of import restrictions resulting in replacing of domestic brands. 2. Slowdown in rural demand. 3. Tax and regulatory structure.

FORECAST 2012:

Rural and semi-urban 128 million population thrice the urban market size growth from 48k to 100k Crores (Growth of 50% at 10%CAGR). Increase penetration from the current less than 1%. Problems in the rural sector. Low per capita disposable incomes. Large number of daily wage earners. Acute dependence on vagaries of monsoon. Seasonal consumption. Poor infrastructure roads and power supply. Urban market 16.5k to 35k Crores (Growth of 100% at 20%CAGR). Intense competition severe pressure on margins Focus on newer products, such as fruit juices. The baby personal care products market has been a segment which has had very little research done. The facts about consumer behavior in this segment have been hitherto unknown. The market size is only 0.67% of the total FMCG market at present. This coupled with Indias exponentially growing population tells us that this is a segment which has great potential for growth. It is up the marketer and the company to take advantage of this potential.

COMPANIES UNDER EMAMI GROUP:

EMAMI PAPER MILLS LIMITED EMAMI CHISEL ART CRI LIMITED SOUTH CITY PROJECTS (KOLKATA) LTD ADVANCED MEDICARE & RESEARCH INSTITUTE LTD (AMRI) FRANK ROSS LIMITED EMAMI REALTY LIMITED EMAMI RETAIL PVT LIMITED (STARMARK) EMAMI BIOTECH LIMITED EMAMI CEMENT LTD

COMPANY ANALYSIS:

Emami, which started as a cosmetics manufacturing company in the year 1974, advancing with increased momentum has expanded into Emami Group of Companies of today. The Group is expanding its FMCG portfolio basket and existing business of paper, healthcare and diversifying into cement, real estate, bio-diesel and power generation and being endorsed by top celebrities, making it a prime acquisition target from multinational FMCG companies. To avoid such situation, maybe the company is diversifying to get a good valuation from It is investing Rs 220 crore for acquisitions in personal care and healthcare space and product portfolio enhancement through forays into new categories of babycare, haircare and mens grooming. It is expecting Rs. 500 crore revenue by 2010. Emami Group is looking at developing in Orissa and Gujarat to add to the existing Coimbatore and Hyderabad projects. It is venturing into retail with opening 10 stores in eastern region. Its paper mill capacity of to be raised to 500 tonne per day from 150 tonne. The 4 million tonne cement plant is to built in Chattisarh along with a 100 MW captive power plant at an investment of Rs 1,600 crore. Meanwhile, Emami is also planning to enter into bio-diesel business and set up a speciality hospital in Orissa to add to its existing JV hospital in Kolkata. The companys brands, with their Ayurvedic positioning, are strong in various niche segments. But expanding this presence may be difficult in the face of intensifying competition in personal and health care, both from domestic companies and MNCs. Also, the infrastructure projects taken up by company are insignificant to compete with big players in the respective areas. Its growth rate has been quite stagnant over the years and it was in 2003, when it had expected a Rs. 750 crore turnvoer. But some of its leading brands have a considerable market presence the market and deter any takeover threats. Kolkata-based personal and healthcare major Emami Group is now planning to manufacture and market a range of ayurvedic over-the-counter (OTC) medicines under the brand name Himani. The move will bring Emami closer to the turf of ayurvedic majors like Dabur India and Himalaya Herbal. Emamis new foraywhich starts next monthwill include a range of products. Emami Limited is eyeing Rs 300 crore sales during the summer season this year, on the back of new product launches and product innovation. The company is also investing close to Rs 70 crore on advertising and promotions for its brands this season.The Rs 1,500-crore Emami Group is targeting Rs 2,500 crore turnover by 2009, on the back of its expansion into new categories, product launches in the FMCG segment, as well as rapid expansion in its FMCG major, Emami group, is eyeing a Pan India presence for Hair Life, its instant hair care pack, which is positioned as a substitute for traditional home-made treatments for healthy hair. Emami Limited is in the business of manufacturing personal, beauty and health care products. The company manufactures herbal and Ayurvedic products through the use of modern scientific laboratory practices. This blend enables the company to manufacture products that are mild, safe and effective. The company's product basket comprises over 20 products, the major being Boroplus Antiseptic Cream, Navratna Oil, Boroplus Prickly Heat

Powder, Mentho Plus Pain Balm, Fast Relief, Golden Beauty Talc and others. The products are sold across all states in India and in countries like Nepal, Sri Lanka, the Gulf countries, Europe, Africa and the Middle East, among others. Continuous innovation: Emamis strong R&D and aggressive marketing capabilities enable it to identify emerging needs and aspirations of consumers and convert them into opportunities.

EMAMIS PLAN ON BABY PERSONEL CARE RANGE:

There was a time when the term "Baby Brand" or "shopping" for a new-born was almost unheard of, in India. Today, our little angels not only seem to occupy the mind space of the largest FMCG Brands, they're also beginning to occupy "floor space" in every Mall and Departmental Store across India. And guess what? With the wide range of Baby Care Products offered by these Baby Brands, their proud moms and dads seem to be more excited than ever! It's little surprise these days to turn our Televisions on and find tons of Baby Brands' commercials highlighting the benefits of a certain Baby Hair Oil Brand, Baby Diaper Brand, Baby Nappies Brand, Baby Soap Brand, Baby Shampoo Brand, Baby Skin Care Brand or Baby Food Brand! It's little surprise these days to turn our Televisions on and find tons of Baby Brands commercials highlighting the benefits of a certain Baby Hair Oil Brand, Baby Soap Brand, Baby Shampoo Brand, Baby Skin Care Brand or Baby Food Brand! The Rs 1,600-crore Kolkata-based Emami Group is readying itself for a full-fledged foray into the baby care segment in India which is estimated at 550crores and has an annual growth rate of 8%. In the next couple of months, the group will launch a range of baby products in the soap, oil and lotion. Emami will be taking on Johnson & Johnson (J&J) in a market which has long been dominated by J&J, but has ample scope for other players to create national brands in the baby care segment. To bolster its launch, Emami is looking at a brand endorser for the baby care range. The celebrity, according to Emami Group director Aditya Agarwal, will be finalized shortly. The launching of the baby care range will be done before the festive season. The maximum growth rate is in baby lotion (12%) and baby oil (20%). More over the baby oil market size is Rs 160cr and only 47% is been captured by Emami and the rest 53% by the other companies. Thus EMAMI wants to take away some portion of the market share from the existing players by launching its baby care range in the market. On the other hand baby oil has a market size of Rs 25cr in which the share of J&J is 40%. EMAMI is trying to fill up the need gap by introducing all the baby range of products free of harsh chemicals such as mineral oil , triclosan, LLP, propylene glycol which is used by other competitive companies. These chemicals are really harmful for babies health and thus affect the skin of babies. As per the research done by EMAMI most of the companies use harsh chemicals which really affect the skin of the babies.

SNAPSHOT OF BABY OIL: A snapshot of baby care category is as follows: The market size for massage oil is of Rs160cr with a growth rate of 20%. The market size for powder is of Rs 135cr with a growth rate of 39%, major player in this segment is J&J with a market share of 48%.The market size for soap is estimated to be Rs 120cr and the major player is J&J who has captured the entire market in this segment with a market share of 46%. Currently EMAMI is in the market with the product name Fair Baby Massage Oil which is the worlds first baby massage oil with additional benefit of fairness apart from health and more over it is 100% vegetable oil with rare herbs. Now the company has realized a greater potential of baby care market and better

opportunity of success with a complete launch of an entire baby care range, that will comprise of a pack which will include EMAMI Healthy and Fair herbal baby massage oil, baby powder and baby soap. All the product in the pack does not contain any harsh chemicals like Mineral oil, Parabens, Tricolsan etc in contrast with the products of other companies. These chemicals leave a harmful effect on the skin of the babies and there by gambling with the babies health. On the other hand the entire product includes Gold, Silver, Saffron and Herbs that provides glowing fairer skin to the baby and along with that the olive and vitamins strengthens and nourishes bones and muscles of the baby. The main objective of the company is to test the product quality and their acceptability in the market. PROMOTION/ACCEPTANCE: The Baby care market estimates at Rs 520cr and it is growing @ 12% p.a.. The major players in this market are J&J who has a staggering market share of 45%+, Wipro which has a market share of 7%, Marico, and Dabur. Thus EMAMI wants to tap the rest of the market which is not yet covered. The existing players are really very strong in the market and thus a frontal attack will be very difficult and expensive for the company. The products like baby oil, baby powder, baby soap have a large, attractive and established market there by the company can really earn good amount of revenue but on the other hand it is really difficult to establish and build the companies own equity in the market and due to competition the competitor will definitely respond to the newly launch product . More over there is huge amount of investment in order to sustain in the market. Before launching the product actually in the market the company wants to have a pre launch test for the product in the market. The product is segmented for moms of kids between 0-2 years, thereby is focusing on younger mothers with first born child, older mothers with second new born, mothers to be and grand Mothers who take care of babies. There are certain parameters that should be taken into consideration before launching the product: 1. Price Factor: The price for the pack is the main factor (i.e. to compete in the current competitive market the company has to keep the price cheaper by 25% - 30% than its competitor.) 2. Mode of Communication: The distribution channel has to be very strong so that the product can reach to all the targeted places.

3.

Demand: The consumer should feel that the product is worth the price and thereby increasing the demand for the product in the market.

4. Promotional Offers: The consumers in the market may be satisfied with the competitors product and it will be difficult for the company to switch the consumers to its newly launched product. Thus the company should come

out with promotional offers for the first 5- 6 months to attract the consumers and there by capturing the market share. BABY RANGE EXTENSION LAUNCHES- AT A GLANCE BABY OIL FAIR AND HANDSOME

Range Positioning Statement Proposition

Completely safe & herbal baby products, without any harsh chemicals usually found in baby products, with the goodness of natural ingredients and selected herbs. Herbal baby massage oil. Strong bones. Fair and glowing skin. No harsh chemicals.

Its pleasant cooling gives an after-shave effect. Rose Water makes skin fair and fresh with a pleasant cooling sensation. The efficiency of this cream has been dermatological tested on Indian male skin, fairer and found effective oil-control. Peptide, Liquorice, Vetiver, Rose Water and Aloe vera.

Ingredients and claim

Olive and Almond for nourishment, strong bones and muscles. Gold, silver and saffron for fair and glowing complexion. Saffron imparts fairness. Olive and almond provide nourishment and strengthen bones and muscles. RS. 18 OFF ON 5OO ML RS. 15 OFF ON 2OO ML

Benefits

Improves fairness in 4 weeks and Protects against sun's UV rays. Moisturizes skin even after shaving. 60 ml

MRP& SKU

BRAND

SKU

PRICE

TRADE SCEME 14%

TRADE MARGIN 7%--8%

DISTRIBUTION CONSUMER MARGIN OFFER 4%--5% RS. 18 OFF ON 5OOML RS. 15 OFF ON 2OOML _________ _________

500ML BABY OIL

RS. 199

200ML

RS. 125

14%

7%--8%

4%--5%

100ML 50 ML

RS. 73 RS.43

14% 14%

7%--8% 7%--8%

4%--5% 4%--5%

FINANCIAL INFORMATION:

P&L Account
PROFIT & LOSS ACCOUNT ------------------- IN RS. CR. ------------------MAR'07 12
MONTHS

MAR'08 12
MONTHS

MAR'09 12
MONTHS

MAR'10 12
MONTHS

MAR'11 12 MONTHS

INCOME SALES TURNOVER 225.62 307.37 519.22 EXCISE DUTY 6.77 6.5 3.43 NET SALES 218.85 300.87 515.79 OTHER INCOME 1.68 5.65 13.91 STOCK ADJUSTMENTS 3.48 -1.85 -0.65 TOTAL INCOME 224.01 304.67 529.05 EXPENDITURE RAW MATERIALS 129.81 173.85 225.56 POWER & FUEL COST 1.03 1.21 1.15 EMPLOYEE COST 11.89 14.47 21.95 OTHER MANUFACTURING E XPENSES 0.64 0.73 0.99 SELLING AND ADMIN E XPENSES 35.56 46.77 178.49 MISCELLANEOUS E XPENSES 8.69 9.32 20.7 PREOPERATIVE EXP CAPITALIZED 0 0 0 TOTAL EXPENSES 187.62 246.35 448.84 OPERATING PROFIT 34.71 52.67 66.3 PBDIT 36.39 58.32 80.21 INTEREST 2 1.41 1.08 PBDT 34.39 56.91 79.13 DEPRECIATION 2.97 6.69 4.65 OTHER WRITTEN OFF 0 0 0 PROFIT BEFORE TAX 31.42 50.22 74.48 EXTRA -ORDINARY ITEMS 0.16 0.07 0.01 PBT (POST E XTRA -ORD ITEMS) 31.58 50.29 74.49 TAX 2.09 0.95 8.57 REPORTED NET PROFIT 29.44 49.36 65.92 TOTAL VALUE ADDITION 57.81 72.49 223.28 PREFERENCE DIVIDEND 0 0 0 EQUITY DIVIDEND 6.12 12.23 24.86 CORPORATE DIVIDEND TAX 0.86 1.72 3.67 PER SHARE DATA (ANNUALIZED ) SHARES IN ISSUE (LAKHS) 611.5 611.5 611.5 EARNINGS PER SHARE (RS) 4.81 8.07 10.78 EQUITY DIVIDEND (%) 50 100 200 BOOK VALUE (RS) 12.8 15.8 37.49

585.9 2.19 583.71 21.62 -0.52 604.81 248.14 1.29 31.18 1.26 194.22 11.09 0 487.18 96.01 117.63 5.43 112.2 7.28 0 104.92 0 104.92 12.18 92.75 239.04 0 27.97 4.75 621.45 14.92 225 46.5

739.6 17.25 722.35 5.86 11.58 739.79 321.17 3.42 44.69 1.75 214.17 13.02 0 598.22 135.71 141.57 31.57 110 17.89 0 92.11 0.26 92.37 14.5 87.52 277.05 0 34.05 5.79 621.45 14.08 225 47.52

BALANCE SHEET AS ON 31-03-2011:

BALANCE SHEET MAR '07 12
MONTHS

------------------- IN RS. CR. ------------------MAR '08 12

MONTHS

MAR '09 12
MONTHS

MAR '10 12
MONTHS

MAR '11 12
MONTHS

TOTAL SHARE CAPITAL EQUITY SHARE CAPITAL SHARE APPLICATION MONEY PREFERENCE SHARE CAPITAL RESERVES REVALUATION RESERVES NET WORTH SECURED LOANS UNSECURED LOANS TOTAL DEBT TOTAL LIABILITIES GROSS BLOCK LESS: ACCUM. DEPRECIATION NET BLOCK CAPITAL WORK IN PROGRESS INVESTMENTS INVENTORIES SUNDRY DEBTORS CASH AND BANK BALANCE TOTAL CURRENT ASSETS LOANS AND ADVANCES FIXED DEPOSITS TOTAL CA, LOANS & ADVANCES DEFERRED CREDIT CURRENT LIABILITIES PROVISIONS TOTAL CL & PROVISIONS NET CURRENT ASSETS MISCELLANEOUS E XPENSES TOTAL ASSETS CONTINGENT LIABILITIES BOOK VALUE (RS)

SOURCES OF FUNDS 12.23 12.23 12.23 12.23 12.23 12.23 0 0 0.2 0 0 0 66.02 84.4 216.99 238.59 238.59 0 316.84 335.22 229.42 33.76 31.24 22.81 0.22 0.22 0.36 33.98 31.46 23.17 350.82 366.68 252.59 APPLICATION OF FUNDS 320.21 321.96 68.59 105.63 128.79 21.79 214.58 193.17 46.8 4.05 9.28 34.49 53.91 87.1 78.18 36.75 36.62 41.2 35.25 36.68 45.77 0.31 0.8 3.38 72.31 74.1 90.35 26.76 46.79 56.01 0.03 0.02 15.04 99.1 120.91 161.4 0 13.86 6.97 20.83 78.27 0 350.81 7.73 12.8 0 25.18 18.61 43.79 77.12 0 366.67 23.14 15.8 0 50.63 17.63 68.26 93.14 0 252.61 29.23 37.49

12.43 12.43 0 0 276.57 0 289 35.19 0 35.19 324.19 105.73 27.91 77.82 13.47 102.97 40.1 34.03 2.77 76.9 156.01 0.04 232.95 0 56.21 46.8 103.01 129.94 0 324.2 26.45 46.5

12.43 12.43 0.7 0 282.9 0 296.03 373.06 67.02 440.08 736.11 706.44 93.87 612.57 36.7 39.89 73.2 50.75 10.71 134.66 79.94 0.06 214.66 0 115.7 52.02 167.72 46.94 0 736.1 117.49 47.52

OBJECTIVES OF THE PROJECT: What products do they use and why do they use those particular products? What is the span of usage? Factors which influence the buying of particular brands. What premium is the consumer ready to pay for these baby personal care products. DESCRIPTION OF ACTIVITIES: The study required the intern to first discuss and set the required objectives of the study. Then a questionnaire was needed to be prepared. Then the intern had to travel through the city collecting data for the study. After the data collection was completed the analysis was done and the results drafted into the final report. EXPERIMENTAL WORK: This study necessitated the preparation of a questionnaire which was needed for collection of the required data. The questionnaire was prepared keeping in mind the set objectives of the study. The initial draft questionnaire had a large number of open-ended questions which could have posed a problem in the analysis stage of the study. For this reason a primer was prepared and given to a select few respondents. From the responses in the primer the present options were extracted. After the questionnaire was prepared it was tested. 10 respondents were given the draft questionnaire and their responses were noted down. The purpose was to find out whether the respondents were able to answer the questions without any difficulty, the quality of data being generated was also observed. DATA COLLECTION: This was the stage of the project which took the maximum time. The target respondents were of two groups, 1.mothers 2.expecting mothers. The mothers were relatively easy to locate but difficult to interview. Due to the large influx of salespeople in the city the respondents were reluctant to respond. The approach had to be perfect and it had to be made clear to them that I was not there to sell anything and was only trying to get a few questions answered. For this reason I did not make it obvious to the respondents. It took a large number of rejections before I was able to get the desired number of responses and move on to the next group of respondents, i.e. the expecting mothers. This group of respondents was a difficult group to track and tackle. The initial trouble was encountered in locating these expecting mothers. I was able to get addresses from personal contacts and visit them at a place of their convenience after getting an appointment. I was able to get a few numbers of responses at the nearby hospital. I then managed to contact a doctor at the local Peerless hospital who was holding a workshop for expecting mothers at Peerless. ANALYSIS: The responses generated have been very insightful. The consumer behavior is filled with diverse influences which act alone and together on the consumer. So there were many instances where the respondents felt that all the listed options along with a few more were influencing the consumers behavior. So, all the results and analysis of the generated data have to be taken with a pinch of salt. When any decision is taken based on the results obtained in the study an open mind-set has to be kept so that the decision is not based completely on one of the influences. Another factor to note is that the age of the respondents barring a few was in the late twenties or early thirties. Most of the expecting mothers were in their early twenties. Now we can go to the detailed analysis of every question and discuss them further.

Q1 . Baby personal care products are used because: (a) Doctors advise (b) Family/friends Advise (c) Delicate skin of babies (d) Any other ? This question intended to find out the reasons why do people use baby products. The purpose was to find out the influencers in the decision to use baby products. The primer revealed that there were three major factors in decision namely doctors advise, family/ friends advice and the delicate skin of the babies. Analysis of the data revealed that the major influencers for this decision are babys skin. The survey was conducted more as an interview rather than just a form fill type of survey. This interview revealed that the consumers feel that babies have very delicate skin when they are born and this skin needs special care. The consumers were very concerned that the normal personal care products used strong chemicals which might harm the babys skin. The consumers seemed very enthusiastic about this and gave unanimous thumbs up to the idea. The data also revealed that the consumers took great heed to their family/friends advice concerning babies. This actually gives us an idea about the thrust of the promotional campaign. Emamis campaign should focus on influencing the family/friends of the mothers. If the campaign can successfully focus on may be the mother/father-in-law or the mother/father of the mother then maybe their influence would induce the mother to buy the desired products.
Reasons for usage
50 40 30 20 10 0 Doctors advise Family/friends advice Delicate skin of babies Others c Series1

The data also reveals that there are some of the respondents who have been advised by the doctor to use baby products. Thus it might be really helpful if there was a medical association which certified Emamis products. Q2. From which source you got the idea about Baby oil (a) Doctors advise (b) Family/friends advise (c) Babies skin (d) Cost (e) Any other ? HAIR OIL A pretty similar scenario with the hair oil but with an exception, the doctors dont seem to advice usage of the hair oil because there is only a 9% response which says that the usage is due to advice given by the doctor. People who dont use the hair oil have even said that this is a frivolous product and is really not needed for the baby. There was a feeling that this product is just used because it is available.
HAIR OIL

0% 13% 1% DOCTORS ADVICE FAMILY/FRIENDS ADVICE 53% BABIES SKIN 33% COST ANY OTHER

Q3. How long would/did you use these products? (Please tick on the correct box) Product 0-1yrs 0-2 yrs 0-3 yrs 0-4 yrs 0-5 yrs 0-6yrs

Baby powder Baby shampoo Baby cream Baby oil Baby soap Baby hair oil Baby Lotion In this question the intern attempts to fulfill another objective of the project, which is to find out the span of usage of the baby products. In the collected data, the charts are shown in the list of illustrations, the mode falls at 5 years. It tells us that all the products taken together the average span of usage of baby products is 5 years. Even if we look at the products individually we find that the mode always falls at 5 years. We need to look at this data a little more closely. The longest span got is for the shampoo, soap and oil. Around 4% of the people use these products for 14 years. This gives us an indication that these are the products that people tend to use for longer. So for these particular products the promotion can be aimed at slightly older children, the challenge being maintaining the younger audience simultaneously. The respondents were asked to specify the usage of each product specifically. The mode turned out to be 5 years. This tells us that the main feature in the promotion have to be children below 5 years. The package and the bottle will have to be designed keeping this age group in mind. The package should colorful with pictures of flowers of toys. The colors should be kept light keeping in mind the delicate nature of the product.
SPAN OF USAGE
40 35 30 25 20 15 10 5 0

POWDER SHAMPOO CREAM BABY OIL SOAP HAIR OIL

R S

R S

R S

R S

R S

R S

01

02

03

04

05

The charts for span of usage of individual products are given in appendix.

06

O T

H E

LOTION

INDIVIDUAL SPAN OF USAGE: Q NO. 3 NO. I

Reasons for usage
50 40 30 20 10 0 Doctors advise Family/friends advice Delicate skin of babies Others c Series1

Q NO. 3 NO. II
USAGE OF SHAMPOO
40 35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

Q NO. 3 NO. III

USAGE OF CREAM
35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

Q NO. 3 NO. IV
USAGE OF BABY OIL
35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

Q NO. 3 NO. V
USAGE OF SOAP
40 35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

Q NO. 3 NO. VI
USAGE OF HAIR OIL
30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS Series1

Q NO. 3 NO. VII

USAGE OF LOTION
35 30 25 20 15 10 5 0 0-1 YEARS 0-2 YEARS 0-3 YEARS 0-4 YEARS 0-5 YEARS 0-6 YEARS OTHERS

Series1

Q4. How important is price while buying baby personal care products? (a) Extremely important (b) Very Important (c) Somewhat important (d) Not so important (e) least important. The main purpose of this question is to ascertain the importance that the consumers give to the price of a baby personal care product. The respondents were asked to rate their level of importance to price on an importance scale. The results obtained were as expected. None of the respondents thought that price was very important factor while buying baby personal care products. All the responses were clubbed at the somewhat important, not so important and least important points. This confirms the fact that price is not an important influence on the consumer buying decision. This also tells us that the consumer is ready to pay a premium for the baby personal care product. This question introduces the pricing factor in the questionnaire to the respondents.

IMPORTANCE OF PRICE
40 35 30 25 20 15 10 5 0 35 37

19

Series1

0 EXTREMELY IMPORTANT

0 VERY IMPORTANT SOMEWHAT IMPORTANT NOT SO IMPORTANT LEAST IMPORTANT

CONCLUSION & RECOMMENDATIONS: This study has been a unique learning experience for me. It has also thrown up some interesting insights into consumer behavior. Now I have an idea about how a marketing decision is taken. When a new product is launched it is meant for a large number of people so it is very important to understand the consumer behavior as a whole. Only when this consumer behavior is understood can a marketer take any kind of decision concerning the four marketing Ps. This study took a sample group of 101 respondents. If we project these 101 respondents to the whole population of target consumers then we can draw some conclusions and take decisions based on those conclusions. From this study it was found out that the consumers use baby products mainly due to the delicate nature of the babys skin. So for the products that Emami launches the core benefit should be nurturing the babys skin. An advantage for the company is that Emami is launching an herbal product and that should go a long way in convincing the consumer that the product is not harmful for babies. The focus should be on the benefit of the product for babys skin. Another major influencer group is the family/friends advice. The promotional campaign should focus on exhibiting the benefits of the product and should focus on influencing the family/friends of the mother i.e. the in-laws or the grandmother of the baby. This study also found out that the consumers largely use most of the products. It was only for the hair oil that the consumers were doubtful. Majority of the consumers use the powder, soap and oil. The company should plan a launch of these three products initially. These products are the most widely used and the initial launch should focus on these three products. The reasons for usage were a little varied but the thrust remained the same. Lets us just talk about the above mentioned three products such as soap, powder and oil. The companys product should be something which nurtures and protects the babys skin, the promotion should also target the mothers immediate family and effort should be made to get a medical associations approval or certification. The mode for the span of usage came to around 5 years. There were some products like the oil and the soap which were used for much longer. But if we look at the average span then we can understand that the majority of the consumers will have children below 5 years of age. The packaging should be of a kind that appeals to the children and should convey the delicate nature of the products. It should be colorful with pictures of flowers or toys.

Recommendations: Focus on the core benefit for babys skin. Promotion should focus on the family/friends of the mother and the herbal nature of the products. A medical associations approval of certification could be very helpful for the product. The packaging should appeal to children below 5 years. A mascot in the form of a teddy bear or something like that could be adopted. In the initial phase only the powder, soap and the oil could be launched.