To track availability and visibility of the product in the outlet PROJECT REPORT ON

TO UNDERSTAND BRAND EQUITY OF INDIAN PASSENGER CAR BRANDS AT CONSUMER LEVEL

IN PARTIAL FULFILLMENT OF MASTERS IN MANAGEMENT STUDIES

SUBMITTED BY SANKET SHETE ROLL NO. 149 SPECIALIZATION: MARKETING

GUIDED BY PROF. VIVEKANAND PAWAR

PILLAIS INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH, PANVEL UNIVERSITY OF MUMBAI 2009-2011

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Sr.No 1 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Content Chapter 1 Introduction Objective of the study Need of the project Scope of the Project Research Methodology Limitations of the Project Page No.

2.0 2.1 2.2 2.3

Chapter 2 Company Profile Organization Chart Benefits given by company

3.0 3.1 3.2 3.2.1 3.2.2 3.2.3 3.2.4

Chapter 3 Theoretical Background. Data Analysis & Interpretations Level 1 Reaction Level 2 Learning Level 3 Behavior Level 4 -- Result

4.0 4.1 4.2

Chapter 4 Conclusion References

5.0 5.1 5.2

Annexure Reaction test Questionnaire Behavior Test Questionnaire

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Acknowledgement I am very grateful and express my sincere thanks to my Project Guide Prof. Vivekanand Pawar for his constant encouragement and support throughout training duration, especially for the useful suggestions given during the course of the project period. I am also thankful to Mr. Harship Vora for giving me opportunity to work with ISPAT Industries. & all the staff members of our PIMSR for their help in completing this project a successful one. I am expressing my special thanks to my friends for helping me during whole training period. Finally, I take this opportunity to extend my deep appreciation to my family and friends, for all that they support to me during the crucial times of the completion of project.

MR. SANKET BHAGWAN SHETE

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Declaration I am very well aware of the ethics and guidelines one has to follow while working on a project in a disciplined manner. Being aware of a project regarding its Factuality and Authenticity, I have tried my best to perform my task.

All the information mentioned here throughout the project is true to the best of my knowledge. And I declare it as true and the collection made through my own personal observation and experience. The theoretical part is gathered from various Human Resource reference books whose quotations have been mentioned in bibliography.

MR.SANKET BHAGWAN SHETE

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Chapter I

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EXECUTIVE SUMMARY
The project mainly focuses on as we tract all the outlet as sales team been covered, also we tract availability and visibility of our product in the outlet, with our competitors products which have been visited by sales team.

The Channel sales management in the FMCG industry.

The channel sales management is an important part of the FMCG industry.

As the life of the FMCG products are very less it is very important to deliver the product within the time.

First part of the project contains the introduction about the Fast moving consumer goods, overview of FMCG industry and information about the CAVINKARE where I have done my project.

Second part of the project contains the observation part where my role is involved. Observation part contains appointment of tract availability and visibility of our product in the outlet, with our competitors products which have been visited by sales team. promotional activities and retail penetration.

The last part of the project contains the recommendation for the company, limitation of the project and finally the overall conclusion of the project.

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INDUSTRIAL BACKGROUND

India is an important market for FMCG players. The Indian FMCG sector is the fourth largest sector in the economy with a total market size of around US$ 13.1 bn. During 1950's to 1980's, there was low investment in the sector as the purchasing power was low. Also, the government had put a lot of emphasis on the development of the smallscale sector. The existing companies like HLL were purely focused on the urban areas. However, post liberalization the scenario changed marking the entry of the MNCs into the country. Also, the focus shifted from the urban to the rural areas. In this article, we shall take a look at the importance of India for FMCG players. Large base: With a population of 1 billion people, India is a big market for FMCG companies. Around 70% of the total households in India reside in the rural areas. The total number of rural households is expected to rise from 135 m in 2002 to 153 m in 2010, which represents the largest potential market in the world.

Rural and urban potential

Urban Rural Population 2001-02 (m household) 53 Population 2009-10 (m household) 69 % Distribution (2001-02) Market (Towns/Villages) 28 3,768 135 153 72 627,000

Source: Statistical Outline of India (2001-02), NCAER

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India - a large consumer goods spender: An average Indian spends around 40% of his income on groceries and 8% on personal care products. A larger part of the total spending pie along with a large base (in terms of population) makes India one of the largest FMCG markets.

Changing lifestyles: Rising per capita income, increased literacy and rapid urbanisation have caused rapid growth and change in demand patterns. The rising aspiration levels, increase in spending power has led to a change in the consumption pattern. Apart from the demand for basic goods, convenience and luxury goods are growing at a fast pace too. The urban population between the ages of 15 to 34 years is expected to increase from 107 m in 2001 to 138 m in 2011, an increase of 30%. This would unleash a latent demand with more money and a new mindset. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. Low penetration and low per capita consumption: Due to the large size of the market, penetration level in most product categories like jams, toothpaste, skin care, hair wash etc. in India is low. This is more visible when comparison is done between the rural and the urban areas. The average consumption by rural households is much lower than their urban counterparts. Existence of unsaturated markets provides an excellent opportunity for the industry players in the form of a vastly untapped market as the income rises.

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Penetration %

Category Deodorants Toothpaste Skin Cream Shampoo Utensil Cleaner Instant Coffee

All India % Urban % Rural % 2.1 48.6 22 38 28 6.6 5.5 74.9 31.5 52.1 59.9 15.5 90.7 91.4 97.4 0.6 37.6 17.8 31.9 14.6 2.8 84.1 87.4 88.9

Washing Powder 86.1 Detergent Bar Toilet Soap 88.6 91.5

Apart from low penetration, even the per capita consumption in most of the FMCG categories (including the high penetration categories) in India is low as compared to both the developed markets and other emerging economies. A rise in per capita consumption, with improvement in incomes and affordability and rising urbanization is further expected to boost FMCG demand. Also, as the income rises, the shift from unbranded to branded products is expected to be more evident.

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Outsourcing hub: India has a vast resource of raw materials across different products. Apart from the advantage in terms of ample raw material availability, existence of lowcost labour force also works in favour of India. Easy raw material availability and low labour costs have resulted in a lower cost of production. As a result India has become a base for many MNCs like HLL and P&G as an outsourcing hub. Retailing-the new growth area: Modern trade accounts for 9% of FMCG sales in metros. Overall they account for approximately 4% of FMCG sales today. With nearly 220 malls expected to come up in the next four to five years in the country, the demand for products is expected to be higher.

Looking ahead... The FMCG sector is characterised by a well-established distribution network, intense competition between the organised and unorganised segments and low operational cost. As per the BRIC report, India's per capita disposable income currently stands at US$ 556 per annum, which will rise to US$ 1,150 by 2015. With the rise in the share of the middle class, the FMCG market is all set to treble from US$ 11.6 bn in 2003 to US$ 33.4 bn in 2015. However, poor infrastructure, the affordability of a product or a service to a rural consumer with low disposable income, intense competition would be the key challenges. Nevertheless, with the rapidly growing economy, rising disposable income, changing consumer expenditure pattern and increasing number of middle class families, the FMGC market is set to take a big leap in the coming years.

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Objectives
To track all the outlet as sales team been covered, tract availability and visibility of our product in the outlet, with our competitors products

To Identify the Covered-Non covered Medical shops and to bring them under Stockiest Route list in Mumbai zone.

To Identify the wholesalers and to bring them under Stockiest Route list in Mumbai zone.

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Need of the project

In market so many companies are present who manufactures such products. Due to availability of large number of competitors and also company wants better Coverage for their Products,

There is a need to study:

1) The cover-Non covered all medical & retail shops and to bring them under Route list. 2) The all wholesaler and to make them the sub stockiest for better coverage of personal Care Products. 3) To tackle the situations like stock-out. 4) To be a growth engine. 5) It will also help us to identify the area of improvement in brand.

To track availability and visibility of the product in the outlet Scope of the Project
1. This project has given me the understanding to some extent of the market this will help me to develop my skill much better and then a support to stand in market more firmly to face it. 2. This project is having importance in the improvement of personal Care Products. 3. Project gives the detailed information about all the Retail & Medical Stores in Thane zone. 4. This report gives information about cover - Non Covered Retail & Medical Shops so in future these Medical shops can be covered for business development. 5. This report gives the information about almost all the wholesalers so if there is a need in future to make more sub stockiest so by this project we can get the information easily. 6. This project is very helpful for Business development and further extension of the company.

To track availability and visibility of the product in the outlet Research Methodology

WHAT WE DO AS MARKET RESEARCHER?

As we tract all the outlet as sales team been covered, also we tract availability and visibility of our product in the outlet, with our competitors products which have been visited by sales team.

For example, Route consist of 40 outlet- we tract all 40 outlets to see whether sales team been serviced entire routes, and also have availability and visibility of our product with competitors products. After that we comply the data send to company.

For Cover-Non Covered Retail & Medical Stores:

Knowing the market: As a summer trainee I am not familiar with market for personal care in Mumbai zone. Therefore hole two month I have to go with sales man to acquire a complete knowledge about retail& medical stores market. This is very helpful to analyze entire mumbai zone for further research.

Mumbai all retail, medical & distributor route list: After analyzing the market there is a need to know detailed information about retailer &medical shops in Mumbai zone. route list of medical stores in Mumbai is collected from Mr. Hership Vora (Mumbai zonal manager).

Mapping: Retail & medical list shows the total no. of shops in Mumbai zone. And DRCP route list shows total no. of retail &medical shops where our all personal care products are available. Therefore it very easy to identify the non covered retail & medical shops by mapping.

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Approach of sales man: Particular sales men are allotted for each area covered retail & medical shops and sell the product and getting order form

MARKETING: - With that data it helps to Marketing Dept. Which products or brands have less or more market share? Even it helps to change strategy 5Ps product, place price, promotion, packaging.

ADVERTISING, PROMOTIONAL ACTIVITY: - It helps which products or brands less RPS (Retails Performance Standard) or market share. They focus on that particular product or brands have more advertising to aware to the end customers, and also promotional activity like display the products in the outlet, scratch coupons, free sampling of the product, etc.

SALES: - It helps to the sales dept. about the coverage of RS (Re-distribution Stockiest), Services by sales person, and also selling concept.

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Limitations

1. The research was conducted in the region of mumbai Zone in 2010. Thus the interpretations of the study cannot be generalized. 2. Mostly respondent are retail wholesalers. 3. This Research can be done in other Area. 4. This research is restricted only for personal care products 5. The response that I have taken from the retailers can be wrong

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Chapter II

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Company Profile

Cavinkare Company

Type

Privately held Consumer goods 1983 Chennai area, India C.K. Ranganathan Operating 1000 http://www.cavinkare.com 2000 crore 400 crore 250 crore 800 crore

Industry Founded Headquarters Key person Status Employees

website Revenue Operating income Net income Total Assets

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Success is a journey not a destination. CavinKare began with a young mind choosing the road less taken. In 1983 with a single product, CavinKare started out as a small partnership firm. The Company that began its journey as Chik India Ltd was renamed as CavinKare Pvt. Ltd (CKPL) in 1998. With innovative Entrepreneur C.K. Ranganathan at the helm, CavinKare emerged into a successful business enterprise. Smart marketing and clear product positioning not only ensured CavinKare's growth but also helped the company broaden its product portfolio extensively. The company now markets ten major brands. Over the years, CavinKare has achieved a competitive edge with sound understanding of mass marketing dynamics. The company offers quality Personal care (hair care, skin care, home care) and Food products borne out of a keen understanding of consumer needs and keeping up company's the values of innovation and customer satisfaction. Today, CavinKare, having established a firm foothold in the national market, is increasing its popularity in the international arena. A dedicated Research & Development centre, equipped with latest equipment and technologies, constantly supports the various divisions in their endeavour. The Company, which primarily relied on contract manufacturing for many years has now set up its own world class plant at Haridwar to cater to the demand of both domestic and international market. CavinKare Group has crossed a turnover of 8819 million INR in 2009-2010. The Company has employee strength of 576, an all India network of 1300 Stockists catering to about 25 lakh outlets nationally. CavinKare's astute professionalism, innovative products and consistent quality are results of its significant corporate practice. " To succeed we believe that we need total commitment and highest standard of ethical and corporate behaviour in order to provide the best for our consumers, stakeholders and employees".

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MAJOR PLAYER

Organizational Chart

C. Ranganathan, Chairman and Managing Director

Muthu Elango, Vice President Finance

Vineet Trakroo, Vice President Marketing

Milan Wahi, Vice President Sales- Personal Care and Foods Division

Amarjit Mishra, General Manager Marketing

Ramesh Vishwanathan, Executive Director

Rosa Rency Binu, Brand Manager

Krithika Rangan, Media Manager

Megha Agarwal, Product Manager - Maa Fruit Drinks

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Vision:
To be the best truly global consumer products company

Business Strategies:
Drive Growth Fund Growth Become the Best Place to Work

Values:
Caring Global Teamwork Continuous Improvement

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PRODUCT PERSONAL CARE PRODUCT HAIR PRODUCT

CHIK CHAMPOO:

CHIK SATIN SHAMPOO :

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NYLE HARBAL SHAMPOO :

MEERA BADAM SHAMPOO :

INDICA HAIR COLORANT:

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SKIN CARE PRODUCT

FAIRVER CREAM :

FAIRVER FRUIT:

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SPINZ TALCUM POWDER :

SPINZ PERFUMED DEO :

HI 5 DEO:

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HOME CARE PRODUCT

TEX :

TOPP MOPP:

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III) Benefits given by company

1) To Trainee :

a) Induction Programme: Company has arranged induction Programme for me in starting period.

b) Exposer to market : Company has given me opportunity to make applicable my theoretical knowledge into Practical by giving me exposure to the market.

c) Reimbursement : Company has given me Reimbursement during training.

2) To Customer :

a) Corporate social Responsibility (CSR): b) Programme : company has taking care of customer by introducing some Programmes in this month one of the special Programme was Scholarship Programme in which the company was giving the scholarship of Rs. 20000. c) Sponsoring : d) Awareness to the customer: Imparting appropriate knowledge of the Product to the Customer by giving advertisement.

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Chapter -III

To track availability and visibility of the product in the outlet Theoretical Background.
There are some theories related to business development given by some authors which has been applied in this project for business development of the company are listed below. 1) An Information Systems Design Theory for Business Development (ISDT by Carlos Betancourt): According to this theory Information has become one of the most important assets for companies nowadays. Information management system uses organizational information as a resource to make companies more competitive. An ISDT will guide practitioners through the process by restricting practices and features of the system to a more effective set. It will also encourage the academia to work on this theory for its improvement, completion, and validation. In this Project I have Identified and collected information about Non covered Medical Shops and Pharma wholesalers in Vasai Zone. This information I had handed over to the Business Development Manager. This information have help them to cover the non covered medical Shops and Pharma wholesaler to sub Stockist. In this way information system design theory is used for Business development in this Project.

2) Concept Development (by Kotler and coopers): Kotlers and Coopers approach about New-Product Development are first introduced. Then the Concept Development theories of both authors are explained which allow us in a last paragraph to build and present our own approach of the process of concept development.

To track availability and visibility of the product in the outlet II) Data Analysis & Interpretations :

MAINTENANCE OF PRIMARY AND SECONDARY ORDER PRIMARY ORDER: The order that has been put by distributor to company is called as primary order. Distributor has to put the primary order to company. At the cavinkare for the primary order distributor has to send the company. In the primary order the thing that I have learned is that many a times distributor not concentrating on primary order and ultimately it create the problem of non-availability of product in the market.

SECONDARY ORDER: The order put by retailer to distributor is called as secondary order. Retailers are responsible for secondary order that they have to put to distributor. In the cavinkare for the secondary order the salesman of distributor visit the shops for the purpose of order. In some area where the sale is very good in those areas the visit of salesman is twice in a week. Some times I thought that the salesman are not working properly or they are not taking order properly, at that time I went to market and I have taken the order from the retailers at the same time I have also shown the salesman how to take the order

To track availability and visibility of the product in the outlet Visibility of CavinKare products in the market

Visibility
15% 10% 5% 10% 30% 10% 20% Chik Shampoo Nyle Shampoo Indica Dye Fairever Cream Hi5 Deo Spinz Powder Spinz Deo

Availability of shop

1400 1200 1000 800 600 400 200 0 1 TOTAL SHOP SHUT DOWN N/A CLOSED

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PHYSICAL STOCK CHECK REPORT

Rs name: balak sales agency Town: Mumbai

Date: 28.05.2010

Boxes Chik 4 ml (0.50 ) Chik 8 ml (1.00 ) Chinni's pickle 13g x 720 west (1.00) Chinni's pickle 10g x 720 west (0.50) Adidas body spray 150 ml- 24 pcs Adidas after shave 100 ml - 12 pcs Adidas eau de toilett 50ml - 24pcs Adidas eau de toilette 100 ml - 12 pcs Adidas shower gel 250 ml - 12pcs Adidas anti persperant deo 150 ml 12pcs Chik satin 7ml-1200 pcs Chik satin 25 ml -192 pcs Chik satin 40 ml -144 pcs Chik satin 100 ml -120 pc Chik satin 200 ml -48 pcs Chik satin 400 ml-24 pcs Fairever fairness 9g-624 Fairever fairness 25g-144pcs Fairever fairness 50g-72 pcs Fairever fairness 80gFairever fruit fcrm 9g - 624 pcs Fairever fruit fcrm 25g - 144 pcs Fairever fruit fcrm 50g - 72 pcs Indica black -420 pcs Indica 10 min Nyle 4ml -1600 pcs Nyle 8ml -1260 pcs Nyle 100 ml - 60pcs

Stock provided by Available company stock Difference 5 4 1

18 5 3 7 2 1 14 3 1

10 4 1 9 1 14 2

8 1 3 6 -7 0 0 1 1

3 2 7 9 13 10

2 2 2 0 2 8 7

1 -2 0 7 7 5 3

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Nyle 200 ml - 36pcs Nyle 450 ml - 24pcs Nyle 900 ml - 12pcs Nyle strenth 100ml - 60 pcs Nyle strenth 200ml - 192 pcs Nyle strenth 450ml - 24 pcs 18 22 34 4 5 14 13 26 3 3 4 9 8 1 2

Spinz deo 75 ml - 24 pcs Spinz deo 150 ml - 24 pcs Spinz deo 150 ml (male) - 24 pcs Spinz talc 20g - 192 pcs Spinz talc 50g - 160 pcs Spinz talc 100g - 96 pcs Spinz talc 400g - 24 pcs Nyle cold cream 9 gms - 624pcs Nyle cold cream 60 gms - 180pcs Nyle cold cream 100 gms pcs Nyle cold cream 200 gms pcs

3 11 9 33 13 3 7

6 5 6 30 10 5 4

-3 6 3 3 3 -2 3

Nyle body lotion 25gms - 240pcs Nyle body lotion 100 gms - 120pcs Nyle body lotion 200 gms pcs

Nyle petroleum jelly 7-10ml - 450pcs Nyle petroleum jelly 60ml - 96pcs

Acp Drcp Rssm prodctivity data Retail data card -

Yes Yes Yes Yes

Total cases

286

200

86

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Chapter-IV

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Finding:
Half-rupee success Last-mile travel Product visibility ( jo dikhata hai vahi bikta hai) Raising market share

II) Suggestions / Recommendations

SALES PROMOTION VISIBILITY SCHEME PRODUCT EXTENSION VISIT SALESMAN REGULLARLY

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conclusion

So the fact is Mumbai market has great potential to which just waiting for tapped Ultimately, the ball lies in court of cavinkare marketer It is all about how they approach the market, takes up the challenge of selling product and concepts through innovative media design and more importantly alternatively The success of the cavinkare is completely depends upon the channel as well as the members of the channel. availability and visibility of our product in the outlet, with our competitors is very important because ultimately direct effect on company sales

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Annexure (Questionnaire)

Questionnaire for retailer & medical shop

1)

Do you keep CAVINKARE Products?

Yes No

2) From where do you purchase CavinKare product?

Retail Wholesaler (Name) _____ Company Distributor (Name)_______

3) Does our salesman regularly visit?

Yes No

4) How frequently he visits?

Weekly 15days 0ne months

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Questionnaires for distributer.

1) Do you keep CavinKare Products?

Yes No
2) Which brands do you keep? __________.

3) How many outlets (Stores) do you have? __________.

4) How many SALESMAN do you have? __________.

5) What is your Annual Turnover? ___________.

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Bibliography; Brand Management The Indian Context, YLR Moorthi, Vikas
Publishing House Pvt. Ltd. www.cavinkare.com www.cavinkare/profile

http://en.wikipedia.org/wiki/Fast_moving_consumer_goods.
www.ibef.org Marketing Management- Philip Kotler www.cavincomm.com/eps