A To create a category road map to

PROJECT
achieve sustainable growth & increase
REPORT
ON market share of toilet soaps in Odisha.

Organizational guide : Mr. Bandhu Chandra Banerjee

Academic guide : Dr. Isa Mishra

Santiranjan Biswal | 17202118

A REPORT SUBMITTED FOR PARTIAL
FULFILLMENT OF THE M.B.A DEGREE IN
KIIT UNIVERSITY

Special Thanks to

Mr. Abhishek Jain

Area Executive Gr-2

Mr. Abhisek Darjee

Area Executive Gr-1

Mr. Sukant Kumar Mallick

Area Executive Gr-1
 KIIT SCHOOL OF MANAGEMENT
BHUBANESWAR - 751024
7th JULY 2018

Certificate Of Corporate Guide

This is to certify that Mr. Santiranjan Biswal, student of KIIT School

Of Management, Bhubaneswar, Roll no. 17202118 is a valued
summer trainee in our organization. He has successfully
completed his project work on “To create a category roadmap to
achieve sustainable growth & increase market share of toilet
soaps in odisha” in Cuttack District from ITC Ltd. Under
supervision and guidance and also to the best of my satisfaction.

I would also like to place on record that this project will be

beneficial to us from our organizational point of view. It is valued
inputs for enhancing the productivity and to work out the future
growth plan of our organization.

I wish him all the best for his future endeavors.

Mr. Bandhu Chandra Banerjee

Area Manager (PCP)
ITC limited, Odisha Signature:
 KIIT SCHOOL OF MANAGEMENT
BHUBANESWAR - 751024
7th JULY 2018

Certificate Of Faculty Guide

This is to certify that the work incorporated in this Project Report

“To create a category roadmap to achieve sustainable growth &
increase market share of toilet soaps in odisha” Submitted by
Santiranjan Biswal is an original work and is completed under my
supervision. Material obtained from other sources had been duly
acknowledged in the Project Report.

Date:

Signature of Mentor:
Place: Dr. Isa Mishra.(Prof.-Mentor)
 KIIT SCHOOL OF MANAGEMENT
BHUBANESWAR - 751024
7th JULY 2018

Declaration
I hereby declare that this project report titled “To create a
category roadmap to achieve sustainable growth & increase
market share of toilet soaps in odisha” is carried out by me in
partial fulfillment of MBA program at School of Management,
KIIT University. The work done is original and has not been copied
from anywhere else and has not been submitted to any other
University/Institute for an award of any Degree.

The project work has been a part of the course curriculum and all
the responses collected form the company has been kept
confidential and is used for academic purpose only.

All care has been taken to keep this report flawless and
I sincerely regret any unintended discrepancies in this
Project Report.

Date:

Signature:
Place: Santiranjan Biswal
 Acknowledgment

The successful completion of this project report would not have been
possible without the guidance of my faculties, colleagues and my
Institute, School Of Management, KIIT University. I take this
opportunity to thank them and all my well-wishers for their relentless
encouragement and wholehearted support.

I would not have completed this project without the help, guidance of
certain people who acted as guides and friends along way. I would like
to express my deepest and sincere thanks to my corporate mentor
Mr. Bandhu chandra Banarjee (Area Manager),Mr Abhishek Jain
(A.E.),Mr Abhisek Darjee(A.E) & Mr Sukant kumar Mallik(A.E) in
ITC Limited, Prof. Dr. Isa Mishra, My mentor in KSOM for their
invaluable guidance. They acted as a continuous source of inspiration
and motivated me throughout the duration of the project helping me
a lot in completing this project.

I am thankful to my college for giving me the opportunity to work and

learn with ITC ltd. I owe my wholehearted thanks and appreciation to
the entire staff of the organization for their cooperation and
assistance during the course of my internship. I hope that I can build
upon the experience and knowledge that I have gained and make a
valuable contribution towards the organization in coming future. Last
but not the least I also thank my parents whose constant support and
motivation has boosted me to work relentlessly and be successful in
all my endeavors.
 Preface

In the economy for tightening Business nuts and bolts of any company
need to measure its market position in a certain time interval with
ever changing theories and the concept of market.

For this assessment we need the robust methodology of survey.

Although surveys does not reveal the absolute solution of any
objectives, but it provides the inclination towards a good output.

ITC ltd. Is a conglomerate in the Indian market. In this I compared the

chemist outlets coverage of the company. Find the market share and
market potential of this company, etc.

The preparation of this report provides you great pleasure in

releasing our work and market experiences in few pages which shows
overall and experienced knowledge and the practical approach about
the style of a professional and things which I found various affecting
to our marketing and product image.

The project termed as

“To create a category roadmap to achieve sustainable growth &
increase market share of toilet soaps in odisha”.
 Table of Contents

ACKNOWLEDGEMENT CHAPTER- 4
PREFACE DATA ANALYSIS AND
EXECUTIVE SUMMARY INTERPRETATION

CHAPTER- 1 CHAPTER- 5
AN OVERVIEW OF THE FINDINGS AND CONCLUSION
ORGANIZATION
Introduction ANNEXURE
History of the organization
ITC India ITC TEAM - Odisha
CHAPTER- 2 BIBLIOGRAPHY
AN OVERVIEW OF SOAP
INDUSTRY
Introduction
History of Soap Industry
Soap Industry in India
ITC personal care : SOAPS
STP,SWOT Analysis-
USP & Competitors
Market segmentation & Targeting
Strategies

CHAPTER- 3
AN INTRODUCTION TO THE
PROJECT
Background of the problem
Objectives
Research Design
Data Collection
Methods of Data Analysis
 AN OVERVIEW OF THE PROJECT
Fast-moving consumer goods (FMCG) or consumer packaged goods
(CPG) are products that are sold quickly and at relatively low cost.
Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals like toilet soaps,
detergents, shampoos, toothpaste, shaving products, shoe polish,
packaged foodstuff, and household accessories and extends to
certain electronic goods.
In comparison with other industries such as automobiles, computers,
and airlines, FMCG business has a steady rate of growth, for it does
not suffer from huge recession and layoffs every time the economy
starts to dip. In FMCG business absolute profit made on the products
is relatively small. Since they generally sell in large numbers, the overall
profit on such products can be huge.

The fast moving consumer goods (FMCG) segment is the fourth

largest sector in the Indian economy. The market size of FMCG in India
is estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in
2018. Foods product is the leading segment, accounting for 43 per
cent of the overall market. Some of the major players in this industry
are Hindustan Unilever Ltd. (HUL), ITC (Indian Tobacco Company),
Nestlé India, GCMMF (AMUL), Cadbury India, Procter & Gamble
Hygiene and Health Care, Marico Industries, Dabur India, Asian Paints
(India) and Britannia Industries.

Rural areas expected to be the major driver for FMCG, as growth

continues to be high in these regions. Rural areas saw a 16 per cent,
as against 12 per cent rise in urban areas. Most companies rushed to
capitalize on this, as they quickly went about increasing direct
distribution and providing better infrastructure. Companies are also
working towards creating specific products specially targeted for the
rural market.
FMCG is one sector which caters to the daily and more basic needs of
consumers and therefore don’t have a chance to run out of focus.
From oral care products to packed food to detergents, soaps,
mosquito coils, etc, are the various categories of products that FMCG
market makes available to lakhs of consumers across the country.
There is a lot of scope for growth in the FMCG sector from rural
markets with consumption expected to grow in these areas as
penetration of brands increases. Also, with rising per capita income,
which is projected to expand at a compound annual growth rate of 7.4
per cent over the period 2013-19, the FMCG sector is anticipated to
witness some major growth.

REASON BEHIND ITC’s INTEREST IN NON-TOBACCO PRODUCTS

India Tobacco Company, premier manufacturers of cigarettes and

smoking tobaccos felt that their future growth lay in investment in the
areas considered vital to the national interest.ITC has transformed
itself from a leading cigarette manufacturer to an umbrella group that
offers a diversified product mix to enhance its brand image and
reduce dependency on tobacco related products. Now ITC acquired
the B Natural juice brand to gain entry into the ever expanding
ready-to-drink juice market. ITC group is making its image as an ideal
corporate citizen and a company that takes its social responsibility
seriously by diversifying its business to non-tobacco products. Though
cigarette net profit rose to Rs2,186.39crore in the three months
ended 30 June fromRs.1,891.33crore in the year earlier. Net revenue
grew 24.8% to Rs9,248.29 crore from Rs.7,410.7 crore in the year
earlier as cigarette sales jumped 18.7% to Rs.4,201.06 crore.
As I.T.C. wants to expand its business to non-tobacco products and
juice Industry in India is poised for further growth, it is a good chance
for the company to enter this market and exploit this emerging
opportunity.
CHAPTER 1
AN OVERVIEW OF THE ORGANIZATION

INTRODUCTION

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata,

West Bengal. The company is currently headed by Yogesh Chander
Deveshwar. It employs over 25,000 people at more than 60 locations
across India. Its diversified business includes five segments: Fast Moving
Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business
& Information Technology.
ITC was incorporated on 24 August 1910 under the name of ‘Imperial
Tobacco Company of India Limited’, and the company went public on 27
October 1954. The company’s ownership progressively Indianised, and the
name of the company was changed to Indian Tobacco
Company Limited in 1970 and further to I.T.C. Limited in 1974. Finally, the
periods in the name were removed in September 2001 for the company to
be renamed as ITC Ltd. The company completed 100 years in 2010.ITC is a
part of Forbes 2000 list. ITC claims to be the only company in the world of
comparable dimensions to be Carbon Positive, Water Positive and Solid
Waste Recycling Positive.
ITC is one of India's foremost private sector companies with a market
capitalisation of US $ 45 billion and a turnover of US $ 7 billion. ITC is rated
among the World's Best Big Companies, Asia's 'Fab 50' and the World's
Most Reputable Companies by Forbes magazine 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.

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's stakeholders.
THE ITC MISSION:
To enhance the wealth generating capability of the enterprise in a
globalizing environment, delivering superior and sustainable
stakeholder value.

POSITIONING STATEMENT:
“Enduring value. For the Nation. For the Shareholder.”

ITC LIMITED – FMCG

FMCG sector of India has gone through a lot many changes in last few
years. Every day a new company is coming into the market. Many external
factors are affecting the existing brand and new brand. The FMCG
business is based upon the high volume sales because the profit margin for
FMCG is very low. The competition in this sector is very high and its
contribution is about 8000 crore. This sector is also one of the largest
sectors in the economy.

In India, FMCG majors such as Hindustan Unilever and ITC have been
pioneers in reaching out to people in the bottom of the pyramid. Through
unique strategies and a vision to capture the markets of the future, these
Indian behemoths continue to lead the rest of the companies in the sector.
This project has studied the critical elements of the strategies employed by
ITC and its competitions in the deodorant segment, through extensive
discussions with the retailers and wholesalers, and surveying the market.
It is ITC's strategic intent to secure long-term growth by synergizing and
blending the diverse pool of competencies residing in its various businesses
to exploit emerging opportunities in the FMCG sector. The Company's
institutional strengths - deep understanding of the Indian consumer, strong
trademarks, deep and wide distribution network, agri-sourcing skills,
packaging know-how and cuisine expertise - continue to be effectively
leveraged to rapidly grow the new FMCG businesses.
ITC has rapidly scaled up presence in its newer FMCG businesses
comprising Branded Packaged Foods, Lifestyle Retailing, Education and
Stationery products, Personal Care products, Safety Matches and Incense
Sticks (Agarbatti), at an impressive pace over the last several years,
crossing Rs.7000crore mark in 2013.The Company's unwavering focus on
quality, innovation and differentiation backed by deep consumer insights,
world-class R&D and an efficient and responsive supply chain will further
strengthen its leadership position in the Indian FMCG industry.
The Company's unwavering focus on quality, innovation and differentiation
backed by deep consumer insights, world-class R&D and an efficient and
responsive supply chain will further strengthen its leadership position in the
Indian FMCG industry.

PRODUCT PORTFOLIO OF ITC

LIST OF PRODUCTS & BRANDS | FMCG:
In FMCG ITC has a strong presence in:

Cigarettes:
ITC is the market leader in cigarettes in India. With its wide range of
invaluable brands, ITC has a leadership position in every segment of the
market. ITC's highly popular portfolio of brands includes
W. D. & H. O. Wills,
Gold Flake Kings,
Gold Flake Premium,
Navy Cut etc.
Foods:
ITC's Branded Packaged Foods business is one of the fastest growing
foods businesses in India. The available brands in this segment are-
Kitchens of India, Aashirvaad, Minto, Sunfeast, Candyman, Bingo, Yippee,
Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits, Confectionery,
Noodles, B Natural Juice and Snack Foods
Apparel:
Wills Lifestyle and
John Players
Personal care:
ITC forayed into the Personal Care business in July 2005. In the short
period since its entry, ITC has already launched an array of brands, the
brands in this segment are-
Fiama di Wills, Vivel, Savlon, Essenza di Wills, Superia, Vivel di Wills brands
of products in perfumes, hair care and skincare.

EDUCATION & STATIONARY:

ITC made its entry to the education and stationery business with its Pa-
perkraft brand in the premium segment in 2002; and later expanded into
the popular segment with its Classmate brand in 2003.
Safety Matches and Agarbattis:
ITC's range of Safety Matches includes popular brands like Aim & i Kno.
With differentiated product features and innovative value additions.
ITC launchedAgarbattis (Incense Sticks) sourced from small-scale and
cottage units in 2003.

Other businesses include:

Hotels, Paperboard,Specialty Paper, Graphic and other Paper.
InfoTech and Agree- Business

BOARD OF DIRECTORS

CHAIRMAN YOGESH CHANDER DEVESHWAR

MANAGING SANJIV PURI

DIRECTOR

EXECUTIVE NAKUL ANAND | RAJIV TANDON (CFO)

DIRECTORS

NON-EXECUTIVE Shilabhadra Banerjee | Arun Duggal

DIRECTORS Suryakant B. Mainak | Sunil Behari Mathur
John Pulinthanam | Nirupama Rao
Sahibzada Syed Habib-ur-Rehman
Meera Shankar | David Robert Simpson
CHAPTER 2
AN OVERVIEW OF SOAP INDUSTRY

INTRODUCTION

Soap is a product for cleaning made from natural ingredients that may
include both plant and animal products, including items as: animal fat, such
as tallow or vegetable oil, such as castor, olive, or coconut oil. Soaps are
useful for cleaning because soap molecules have both a hydrophilic end,
which dissolves in water, as well as hydrophobic end, which is able to
dissolve nonpolar grease molecules. Although grease will normally adhere
to skin or clothing, the skin molecules can form micelles which surround the
grease particles and allow them to be dissolved in water. The hydrophobic
portion (made up of a long hydrocarbon chain) dissolves dirt and oils, while
the ionic end dissolves in water. Therefore, it allows water to remove
normally insoluble matter by emulsification.

The History of Soap

Soap Inventors & Origins
Soap Inventors & Origins

The first concrete evidence we have of soap-like substance is dated

around 2800 BC., the first soap makers were Babylonians, Mesopotamian
s, Egyptians, as well as the ancient Greeks and Romans. All of them made
soap by mixing fat, oils and salts. Soap wasn't made and use for bathing
and personal hygiene but was rather produced for cleaning cooking utensils
or goods or was used for medicine purposes. 2800 B.C. Inscriptions on
Babylonian clay containers presenting the earliest known written soap
recipe were evidence attributing the invention of soap to Babylonians.

The soap has history going back as far as six thousand years. The earliest
known soap recipe is credited to the ancient Babylonians around 2800 B.C.
Throughout history, soap was medically used for treatment of skin
diseases. Common soap bars were invented in the 19th century.

The First Soap:

Almost 5000 years ago, it was discovered in ancient Babylonia that mixing
animal fats with wood ash and water created a cleansing substance. The
first soaps were used in the textile industry and for skin diseases.

Who Invented Soap?

The Babylonians were the ones who invented soap at 2800 B.C. They
discovered that combining fats, namely animal fats, with wood ash
produced a substance capable of easier cleaning. The first soap was used
to wash wool used in textile industry.

There are many different brands of soaps and cleansers on the market
today designed for many purposes, from fighting acne-causing bacteria to
providing moisture. With so many different types of soap available today, it
is hard to imagine how we ever survived with plain old-fashioned soap that
was not designed for a specific skin type or purpose. As with any innova-
tion, soap has gone through many changes since its inception thousands of
years ago to become as varied and beneficial as it is today.
The soap-making craft started in Europe during the 7th century. Early
soaps were made from vegetable and animal oils, ashes of plants, and
some fragrance. The soap-production process was a guarded secret until
1775, when the secrets of the soap industry were first published. But it
wasn‘t until 1884 that soap was sold in individually branded wrappers.
These soaps smelled quite pleasant due to added fragrance and soon
came to be regarded as a necessity rather than a luxury.

Soaps made prior to the 1940s were much harsher than the soaps we use
today, and many caused skin irritation. The soap industry reacted by
developing milder cleansing bars, gentler on sensitive skin, in a variety of
scents and colors. This step transformed soap from a simple health and
cleanliness aid to a cosmetic and skin care staple.
Since the 1950s, skin care has evolved to become a multi-billion dollar
global industry, with a wide selection available in local grocery stores and
pharmacies, including the most popular:

Bar soap, the oldest and most common type of soap, tends to last longer
and provides many advantages, primarily ease of use for the entire body in
the shower.
Liquid soap provides unique advantages. Imagine how unsanitary and
messy public bathrooms would be if bar soap were the only option! Some
liquid soap is available as light-as-air foam and may contain additional
moisturizers.

75% of liquid soaps sold in US stores are antibacterial. Increased use of

antibacterial soaps, however, contributes to growing antibacterial
resistance.
Aromatherapy soaps contain extracts of essential oils, considered to
promote a sense of well-being and relaxation, including chamomile,
jasmine.

Exfoliating soap gently removes dead layers of skin and can make your skin
feel softer.
SOAP INDUSTRY IN INDIA
Soap category in India

Soap is a product that many people might take for granted or consider
rather ordinary, but for some, lathering up can be treasured part of a
morning or nightly routine. Scented or unscented, in bars, gels and liquids,
soap is a part of our daily lives. In the United States, soap is a $1.39 million
industry with over 50 mass market brands. But in some markets the sales
potential for soap is only beginning to be realized. At the end of 2000, soap
was a $1.032 million business in India. In India, soaps are available in 5
million retail stores, out of which 3.75 million retail stores are in the rural
areas. Therefore, availability of these products is not an issue. 70% of
India’s population resides in the rural areas; hence around 50% of the
soaps are sold in the rural markets.

Overview of the Indian Soap Category

India is vast country with a population of 1.25 billion people. Household
penetration of soaps is 98%. People belonging to different income levels
use different brands, which fall under different segments, but all income
levels use soaps making it the second largest category in India (detergents
are number 1). Rural consumers in India constitute 70% of the population.
Rural demand is growing, with more and more brands being launched in the
discount segment targeting the lower socioeconomic strata of consumers.

History of Soap in India

During the British rule in India, Lever Brothers of England introduced
modern soaps by importing and marketing them in India. However, North
West Soap Company created he first soap manufacturing plant in India,
which was situated in the city of Meerut (Uttar Pradesh). In 1897, they
started marketing cold process soaps. During the World War 1, the soap
industry floundered, but after the war, the industry flourished all over the
country.
Mr Jamshedji Tata set up India’s first indigenous soap manufacturing unit
when he purchased OK Coconut Oil Mills at Cochin in Kerala around 1918.
OK Mills crushed and marketed coconut oil for cooking and manufactured
crude cold process laundry soaps that were sold locally. It was renamed
The Tata Oil Mills Company and its branded soap appeared on the market
in the early 1930’s. Soap became a necessity for the moneyed class by
around 1937

Brand Positioning Then and Now

Soap manufacturers originally targeted their products to the lowest strata
in urban as well as rural areas, positioning their brands as a way to remove
dirt and clean the body. For some brands, that positioning persists even
today with a focus on removal of body odour and keeping the user healthy.
However, soap positioning are moving towards skin care as a value-added
benefit.

Marketing of Soap
Soap is primarily targeted towards women as they are the chief decision
makers in terms of soap purchase. Medicated positioning like germ killing
and anti-bacterial are marketed to families. About 75% of soap can be
bought through these different types of outlets:

Grocery Store
This is the most common source for buying soap, which usually forms a
part of the month’s grocery list (which is purchased from these kirana
stores). Consumers exhibit loyalty to these stores, which is largely depen-
dent on proximity to consumer’s homes. Here consumers buy across the
counter and do not have an option of browsing through display shelves.

Convenience Store
These are really small shops, almost like handcrafts and they are primarily
set up to dispense cigarettes and chewing tobacco. However, one would
find such a shop at every corner and they are the main sources of soap
purchase for the lower socio-economic classes. These kind of shops exist
by the dozen in rural areas.
Departmental Stores
In India, there are few department stores and is still a fairly new concept.
However, department stores have good display counters and this is the
only place where consumers get a firsthand experience of shopping and
choosing from available options. Here soap prices are also discounted
below the retail prices.

ITC PERSONAL CARE: SOAPS

In line with ITC's aspiration to be India's premier FMCG Company, recog-

nized for its world-class quality and enduring consumer trust, ITC forayed
into the Personal Care business in July 2005. In the short period since its
entry, ITC 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, ITC's personal
care portfolio brings world-class products with clearly differentiated bene-
fits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills',
'Vivel', and ‘Superia‘ brands has received encouraging consumer response
and is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements

of hygiene and benchmarked manufacturing practices. Contemporary
technology and the latest manufacturing processes have combined to
produce distinctly superior products which rank high on quality and con-
sumer appeal. Extensive insights gained by ITC through its numerous con-
sumer engagements have provided the platform for its R&D and Product
Development teams to develop superior, differentiated products that
meet the consumer's stated and innate needs. The product formulations
use internationally recognized safe ingredients, subjected to the highest
standards of safety and performance.
Essenza Di Wills

The first of the four brands to be launched in mid-05, Essenza Di Wills, an

exclusive range of fragrances, body and bath care products, is targeted at
the high and snazzy consumers. Essenza is a gender-neutral brand, and
hence offers a range of products for the well-heeled men and women.
Inizio, the signature range of the Essenza brand, has two sub-
brands— Inizio Femme and Inizio Homme—and offers an exclusive range for
women and men. The fragrances offered in this range were designed by
leading French fragrance houses. The brands across the Essenza line
share the same olfactory signature creating a harmonious experience, and
hence the brand recall for consumers. Since, men constitute a high
percentage of luxury consumers, a new line Aqua Homme has been
created. It offers a range of grooming products like after-shave lotion,
deos, hair and body shampoos and soaps for discerning men. Mikkel, an
evening fragrance, is the latest addition to the Essenza portfolio, which
again is targeted at the high-end men. The strategy here is around
sophistication and enigma rather than brand recall, hence we see
sub-brands with western titles like Inizio, Aqua and Mikkel than simple
brand extensions, as the target consumers in this segment are drawn by
exclusivity and enigma and not by popular brand names. An entry level
Essenza range of fragrance comes for a cool Rs 2,000! The Essenza caters
to the market segment where established names like Lancôme, Olay, Body
Shop, Oriflame and Avon are present. It's a niche segment, which is growing
fast, and where there's no competition from dominant players like HUL and
P&G. ITC feels that with its packaging, sales and distribution strength, it has
a fair chance of getting a head start in this high-margin space the over
present players.

The premium brand is also retailed across more than 50 Wills Lifestyle
stores, its premium branded apparel retail offering, across 30 cities, and
provides (as these stores offer) an ideal environment for sampling by elite
consumers who regularly visit these stores. The Essenza range is also
available across the ITC Welcome group hotels.
VIVEL

Between February and June 2008, ITC expanded its personal care
portfolio with the launch of Vivel range of soaps and shampoos to cater to
the specific needs of a wide range of consumers. This high quality range of
soaps and shampoos are for the upper-mid and mid-market consumer
segments. All products offer a unique value proposition of bringing
together ingredients 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. Easily, the most important of all the brands Vivel competes in
the most competitive, the popular market segment, dominated by well
-entrenched players like HUL and P&G, besides smaller players like Marico,
CavinCare, Godrej, Dabur etc. Launched in the first half of 2008, Vivel Di
Wills offers two soap variants. Vivel has both soaps and shampoos,
catering to a wide range of consumers in the mid and upper-middle class
segments.
The USP of Vivel range is nourishment, protection and hydrating ingredients
for complete skincare. Vivel, unlike Fiama, is a gender- neutral brand.
SAVLON

Savlon has a heritage of more than 50 years in India. ITC's Personal Care
Business marked its foray into the health space with the acquisition of the
brand in 2015.
Savlon Antiseptic Liquid
Savlon Antiseptic has been a trusted brand for last 50 years and is
preferred by the medical fraternity for its broad spectrum action.

Savlon Antiseptic Liquid has a unique formulation of Chlorhexidine

Gluconate & Cetrimide. It is an antiseptic liquid which finds wide application
across hospitals & homes for disinfection and wound healing.
• 90% of Doctors trust Savlon Antiseptic
• Helps Heal without Hurting
• Kills 99.99% germs
• 8 Times more Germ Protection

Claim Disclaimer

90% of Doctors trust Based on market research conducted among health care
Savlon Antiseptic practitioners by IMS health in March 2015

Based on anti-microbial actions on S.aureus and E.coil in in

Kills 99.99% germs
vitro conditions.

8 Times more Germ As per in vitro studies, in comparison to hypertonic saline.

Protection

Protects from spread of germs which are known to cause 100

100 diseases
diseases.

1 million germs Million germs refers to number of germs

Savlon Soap Range
Savlon Soaps come with a unique proposition of "Tough on Germs, Gentle
on Skin".
Savlon Glycerine soap: Offers germ protection with gentle moisturising.
Savlon Aloe-Vera soap: Offers germ protection with natural moisturising.
Savlon Double Strength soap: Offers germ protection with the Goodness
of Active Silver.

Superia

The Superia ranges of soaps and shampoos have been launched to cater
to the large popular market in the personal care category. The products
under the Superia brand are made from scientifically developed
formulations enriched with natural ingredients that have traditionally been
known to be good for the skin and hair. The range offers consumers access
to some of the best-in-class products in vibrant attractive packaging.
Superia Soaps enriched with natural ingredients give radiant glowing skin.
Superia Soaps are available in below variants:
STP, SWOT ANALYSIS - USP & COMPETITORS

SWOT is an acronym for Strengths, Weaknesses, Opportunities and

Threats. By definition, Strengths (S) and Weaknesses (W) are considered
to be internal factors over which you have some measure of control. Also,
by definition, Opportunities (O) and Threats (T) are considered to be ex-
ternal factors over which you have essentially no control. SWOT Analysis is
the most renowned tool for audit and analysis of the overall strategic posi-
tion of the business and its environment. Its key purpose is to identify the
strategies that will create a firm specific business model that will best align
an organization‘s resources and capabilities to the requirements of the
environment in which the firm operates.

In other words, it is the foundation for evaluating the internal potential and
limitations and the probable/likely opportunities and threats from the ex-
ternal environment. It views all positive and negative factors inside and
outside the firm that affect the success. A consistent study of the environ-
ment in which the firm operates helps in forecasting/predicting the chang-
ing trends and also helps in including them in the decision-making process
of the organization.

FIAMA DI WILLS

Parent Company ITC

Catergory Personal Care Brands

Hair care & Skincare

Sector FMCG

Tagline/Slogan Beautiful you, today, tomorrow

USP The Fiama Di Wills range combines

the goodness of nature and science,
providing gentle & effective care.
Segmentation, Targeting & Positioning:

Segement Middle class men and women.

Target Group Young, modern, aware customers who

are confident of themselves and seek
indulgences that make them feel alive
and beautiful.

Positioning Soap which is a blend of Nature and

Science and also a Gentle Care shampoo
that can be used everyday

Competitors

Competition DOVE Soaps

SWOT ANALYSIS

Strengths 1 - Movie stars and celebrities as brand

ambassadors, so the product is identifiable
and popular among girls/women.
2 - The brand boasts of the R&D from ITC
Research center in collaboration with leading
US based personal care research labs.
3 - Effective use of both pushes and pull
strategy.
4 - Good brand visibility and distribution.

Weakness 1 - Product is not popular among men. Ads

made the product look like Unisex but it was
targeted at both the genders.
2 - Confused state of existence in the
consumer’s mind.
3 - With the launch of multiple products
targeting various segements, the brand needs
to have a common positioning platform which
connects all the variants together.

Oppurtunities 1 - Increasing consumer base with time.

2 - Fiama is a young brand, in its growing
stage.

Oppurtunities 1 - Cut throat competition from HUL.

2 - People have a tendency to shift to other
products, since so many options are
available.
Vivel

Parent Company ITC

Category Personal Care brands - Soap

Sector FMCG

Tagline/Slogan Khoobsoorati bas mein; duniya muthi main

Taazgi jo kareeb laaye

USP Beauty with confidence

Segmentation, Targeting and Positioning

Segment Middle class men and women

(mainly women)

Target group Vivel is targeting young consumers who

are ready to flirt with new brands.

Positioning Mass positioning, priced well below

Fiama Di wills

Competitors

Competition LUX
SWOT ANALYSIS

Strengths 1 - Various variants of the product are

available, around 9 of them.
2 - Vivel Di Wills come in an attractive
carton package with some elegant color
scheme.
3 - Consumers will be impressed by the
ingredients like Olive Oil, Active Clay, Shes
butter which gives this brand a unique
healthy natural perception.
4 - Good advertising and distribution
of products.
5 - Celebrity brand ambassadors add value
to the brand.

Weakness 1 - Confused state of existence in the

consumer’s mind just like Fiama Di Wills.
2 - Vivel is mainly positioned as beauty
soap targeted towards women, hence
it lacks unsex appeal.
3 - Highly competitive segment in terms
of other brands and price.

Oppurtunities 1 - Target sector set to increase with time as it

is a young brand, in its growing stage.
2 - One of the fastest growing brands in
its category.
3 - Vivel’s focus on looking good with its
campaigns brings in a clear differentiation.

Oppurtunities 1 - Lots of competition.

2 - People have a tendency to shift to other
products, since so many are available.
Savlon

Parent Company ITC

Category Personal Care - Antiseptic

Sector FMCG

Tagline/Slogan Heals without hurting; Make your house

a safe house

USP Non burning antiseptic liquid

Segmentation, Targeting and Positioning

Segment Antiseptic liquid - hygienic category

Target Group All age groups

Positioning All antiseptic that does not hurt while

healing

Competitors

Competitors 1 - Lifebuoy
2 - Dettol
SWOT ANALYSIS

Strengths 1 - Brand of antisepticliquid marketed by

Johnson & Johnson .
2 - Better scent and non-stinging properties.
3 - Clinically proven to be effective
germ killer.
4 - Plastic bottle is safer to handle.
5 - Has products like antiseptic liquid,
wound wash, spray, bandages, etc.
6 - Excellent advertising and brand visibility.

Weakness 1 - Lesser brand recall as compared to Dettol,

which is a leader in the segment.
2 - Limited penetration in the rural, segment,
which is huge potential.

Oppurtunities 1 - Huge customer market to tap.

2 - Popular in institutional market, can
strengthen its position further.
3 - Tie-ups with hospitals, clinics,
sports clubs, etc.

Threats 1 - Dettol which is a big player in antiseptic

market.
2 - Competitive pricing.
3 - Entry of newer and cheaper substitutes

SUPERIA

Parent Company ITC

Category Personal care brands-soaps
Sector FMCG
Tagline Aise chamak ki duniya bole pehle aap
USP Natural Ingredients
SUPERIA

Segmen Personal care-soap & Skin care

Target Group Lower middle class customers
Positioning Enriched with natural ingredients give
radiant growing skin
Competition 1 - Lux
2 - Pears

SWOT ANALYSIS

Strengths 1 - Six variants - Fragrant flower, soft sandal,

natural glow, healthy glow, Lemon fresh and
milky glow.
2 - Strong brand name of ITC.
3 - Strong distribution system enhances trust
in brand.
4 - Natural ingredients enhances trust in brand

Weakness 1 - Limited market share due to stiff competition

in the market
2 - Cannabalization of market share by Vivel.

Oppurtunities 1 - People are turning more towards products

made from natural ingredients.
2 - One of the fastest growing brands

Threats 1 - Cut throat competition from domestic soap

brands.
2 - Less scope of expansion.
3 - Switching costs are low.
MARKET SEGMENTATION AND TARGETING STRATEGIES

Market segmentation is a recent development in marketing thinking and

strategy. It is based on the natural variations found in a general or total
market. Diversity is the basic characteristic of a market, be it a consumer
market or industrial market. Marketers must understand natural diversity
for effective marketing. In today‘s highly competitive environment, market
segmentation, target market selection and effectively positioning the
offerings are very essential requirements for gaining competitive
advantages.

One of the fundamental principles of marketing is the concept of market

segmentation. Sometimes it is referred to be as one of the potentially
most creative areas of marketing. Therefore, what is it, why is it important
and how has it changed in a web enabled world? The starting point as ever
is the Chartered Institute of Marketing's definition of marketing:

The management process responsible for the identification, anticipation

and satisfaction of customer needs profitably. While this definition lacks
certain verve, it does contain considerable food for thought. Putting it
bluntly, no one company can satisfy the needs of all of these potential
customers. This is the first justification for segmentation. The second
justification is a function of supply and demand. In a world where there is a
shortage of supply, segmentation is unnecessary, as people will take
whatever they can get. Conversely, when supply exceeds demand and
people have a choice the product offer which best matches their needs will
be chosen. The third justification is plain common sense. If you can target a
group of customers, your marketing is likely to be more effective as your
product offer is designed to meet the sole needs of that group.
Your product offer is no longer, a one size fits all solution.

According to Philip Kotler, Market segmentation is the sub-dividing of

market into homogeneous sub-sections of customers, where any
sub-section may conceivably be selected as a market target to be
reached with a distinct marketing mix.
Market segmentation is just the first step in a three-phase marketing
strategy. After segmenting the market into homogeneous clusters, the
marketer must select one or more segments to target. So the second step
is target marketing, which is the process of evaluating each market
segment‘s attractiveness and selecting one or more segments to enter.

To accomplish this, the marketer must decide on a specific marketing

mix-that is, a specific product, price, channel and promotional appeal for
each distinct segment. The third step is market positioning, which involves
arranging for a product to occupy a clear, distinctive and desirable place
relative to competitive products, in the minds of target consumers.

A market is composed of individuals and they are rarely homogeneous in

benefits wanted, purchase rates, price and promotion elasticity. Their
response rates of products and services and promotion programmers
differ. Since consumers have dissimilar needs and wants in a market, it is
called a heterogeneous market and most markets are heterogeneous.
Differences in product preferences, size and growth in demand, media
habits and competitive structure of the market also affect the differences
and response rates.

TOTAL
MARKET

MARKET
SEGMENT
TARGETED

From mass market to market segmentation

Criteria for Market segmentation
The market segmentation to be worthwhile six criteria,
as shown below, must be satisfied:

1. Identity:
The marketing manager must have some means of identifying members of
the segment, that is, some basis for classifying an individual as being or not
being a member of the segment. There must be clear differences between
segments. Members of such segments can be readily identified by
common characteristics which display similar behavior.

2. Accessibility:
It must be possible to reach the different segments in regard to both
promotion and distribution. In other words, organization must be able to
focus its marketing efforts on the chosen segment. Segments must be
accessible in two senses. First, firms must be able to make them aware of
products or services. Secondly, they must get these products to them
through the distribution system at a reasonable cost.

3. Responsiveness:
A clearly defined segment must react to changes in any of the elements of
the marketing mix. For instance, if a particular segment is defined as being
cost-conscious, it should react negatively to price rises. If it does not, this is
an indication that the segment needs to be refined.

4. Size:
The segment must be reasonably large enough to be a profitable target. It
depends upon the number of people in it and their purchasing power. For
example, makers of luxury goods may appeal to small but wealthy target
markets whereas makers of cheap consumption goods may sell a large
number of persons who are relatively poor. The idea is that enough
potential buyers must exist to cover the costs of production and marketing
required in that segment. This is often called as substantiality.
exist to cover the costs of production and marketing required in that
segment. This is often called as substantiality.

5. Nature of Demand:
It refers to the different quantities demanded by various segments.
Segmentation is required only if there are marked differentiation in terms
of demand.

6. Measurability:
The purpose of segmentation is to measure the changing behavior pattern
of consumers. For example, the segments of a market for a car are
determined by a number of considerations, such as economy, status,
quality, safety, comforts etc.

Bases for consumer Market segmentation:

1. Geographic Segmentation:
In geographic segmentation, the whole market is divided into different
geographical units. Generally, the market is divided into regions-northern,
southern, western, and eastern and so on. Each region may consist of
several states and districts. A national marketer may treat the whole
nation as his market and divide it on the basis of region or zone for
business operations. Geographic segmentation refers to dividing a market
into different geographical units such as nations, states, regions, cities, or
neighborhoods. For example, national newspapers are published and
distributed to different cities in different languages to cater to the needs
of the consumers. Geographic variables such as climate, terrain, natural
resources, and population density also influence consumer product needs.
Companies may divide markets into regions because the differences in
geographic variables can cause consumer needs and wants to differ from
one region to another.
2. Demographic Segmentation:
Demographic segmentation divides the markets into groups based on
variables such as age, gender, family size, income, occupation, education,
religion, race and nationality. Demographic factors are the most popular
bases for segmenting the consumer group. One reason is that consumer
needs, wants, and usage rates often vary closely with the demographic
variables. Moreover, demographic factors are easier to measure than
most other type of variables.

1. Age:
It is one of the most common demographic variables used to segment
markets. Some companies offer different products, or use different
marketing approaches for different age groups. For example, McDonald‘s
targets children, teens, adults and seniors with different ads and media.
Markets that are commonly segmented by age include clothing, toys, music,
automobiles, soaps, shampoos and foods.

2. Gender:
Gender segmentation is used in clothing, cosmetics and magazines.

3. Income:
Markets are also segmented on the basis of income. Income is used to
divide the markets because it influences the people‘s product purchase. It
affects a consumer‘s buying power and style of living. Income includes
housing, furniture, automobile, clothing, alcoholic, beverages, food, sporting
goods, luxury goods, financial services and travel.

4. Family cycle:
Product needs vary according to age, number of persons in the household,
marital status, and number and age of children. These variables can be
combined into a single variable called family life cycle. Housing, home
appliances, furniture, food and automobile are few of the numerous
product markets segmented by the family cycle stages. Social class can be
divided into upper class, middle class and lower class.
Many companies deal in clothing, home furnishing, leisure activities, design
products and services for specific social classes.

5. Psychographic Segmentation:
Psychographic segmentation pertains to lifestyle and personality traits. In
the case of certain products, buying behavior predominantly depends on
lifestyle and personality characteristics. Consumers are subdivided into
different groups on the basis of personality, life style and values. These
characteristic lead to psychographic segmentation. People exhibit different
life-style and they express them through the products they use. Some
social segments are very orthodox and tradition bound at home. But the
same people look very modem and conspicuous when in the outside world.

1. Personality characteristics:
It refers to a person‘s individual character traits, attitudes and habits. Here
markets are segmented according to competitiveness, introvert, extrovert,
ambitious, aggressiveness, etc. This type of segmentation is used when a
product is similar to many competing products, and consumer needs for
products are not affected by other segmentation variables.

2. Lifestyle:
It is the manner in which people live and spend their time and money.
Lifestyle analysis provides marketers with a broad view of consumers
because it segments the markets into groups on the basis of activities,
interests, beliefs and opinions. Companies making cosmetics, alcoholic
beverages and furniture‘s segment market according to the lifestyle.

4. Behavioral Segmentation:
In behavioral segmentation, buyers are divided into groups on the basis of
their knowledge of, attitude towards, use of, or response to a product.
Behavioral segmentation includes segmentation on the basis of occasions,
user status, usage rate loyalty status, buyer-readiness stage and attitude.
1. Occasion:
Buyers can be distinguished according to the occasions when they
purchase a product, use a product, or develop a need to use a product. It
helps the firm expand the product usage. For example, Cadbury‘s
advertising to promote the product during wedding season is an example
of occasion segmentation.

2. User status:
Sometimes the markets are segmented on the basis of user status, that is,
on the basis of non-user, ex-user, potential user, first-time user and
regular user of the product. Large companies usually target potential
users, whereas smaller firms focus on current users.

3. Usage rate:
Markets can be distinguished on the basis of usage rate, that is, on the
basis of light, medium and heavy users. Heavy users are often a small
percentage of the market, but account for a high percentage of the total
consumption. Marketers usually prefer to attract a heavy user rather than
several light users, and vary their promotional efforts accordingly.

4. Loyalty status:
Buyers can be divided on the basis of their loyalty status—hardcore loyal
(consumer who buy one brand all the time), split loyal (consumers who are
loyal to two or three brands), shifting loyal (consumers who shift from one
brand to another), and switchers (consumers who show no loyalty to any
brand).

5. Buyer readiness stage:

The six psychological stages through which a person passes when deciding
to purchase a product. The six stages are awareness of the product,
knowledge of what it does, interest in the product, preference over
competing products, conviction of the product‘s suitability, and purchase.
Marketing campaigns exist in large part to move the target audience
through the buyer readiness stages.
The Soap opera: The Segmentation Game

Riding high on its distribution strength and brand ambassadors like

Kareena Kapoor and Trisha Krishnan, Vivel is becoming a strong challenger
brand to HUL‘s Lux

Many of you may be surprised to find ITC‘s three-year-old brand Vivel as a

success story. Just have a look at some numbers: As per Euro monitor, in
2010, Vivel had a market share of 1.6 per cent in the bath and shower
category, vis-à-vis 0.9 per cent in 2008 (the year it was launched). Within
three years it has doubled its market share in a category with more than
40 brands. This is impressive considering the fact that 80-year-old brand
Lux (the market leader) has 13.7 per cent market share in the category.
Also, reportedly, Vivel‘s market share in the mid-segment soap category
(which is where the brand operates) is currently around six per cent.
According to AC Nielsen, Vivel soaps are one of the fastest growing for ITC
with a growth rate of 75-80 per cent. Sandeep Kaul, Chief Executive,
Personal Care Products Business, ITC says, Within a short span, Vivel has
been able to carve a space in the consumer mind space and is growing
steadily amongst its contemporaries.

The segmentation game ITC‘s soap portfolio consists of a product

line - Essenza Di Wills at the top end, followed by Fiama Di Wills in premium
segment, Vivel in mid-segment and Superia at the entry level. ITC seems to
have segmented the market well and has different products to cater to
different segments. Moreover, Vivel is targeting young consumers who are
ready to flirt with new brands. As Jagdeep Kapoor, Chairman and
Managing Director, Samsika Marketing Consultant, says, Vivel seems to be
focusing on young consumers who are looking for a change and people who
are not necessarily tied to a brand for many years. The strategy has
helped the company gain some market share quite early in the product
lifecycle. Vivel has adopted the strategy of capturing different consumers
through its different variants within the mid segment of the soap category.
Dr S Ramesh Kumar, Professor of Marketing, IIM-Bangalore,
says, Vivel with its variants like Sandal Sparkle, Sheer Crème and other
variants priced at Rs 10 onwards seems to be in competition with Lux‘s
variants from the viewpoint of consumer perception (Lux has variants at
65 grams and 90 grams) . Vivel seems to offer an alternative to
consumers who would like to upgrade from the lower price segment and
this alternative may also create trials among those using Lux or other
brands in the price segment. Similarly, Vivel Di Wills (a variant of Vivel), with
a slightly premium image, is competing with the higher priced variants of
Lux or other similar brands. Vivel‘s variants like Satin Soft may appeal to
consumers who have been perceiving value with brands like Godrej No. 1
that offer traditional variants for 115 grams (very often the brand is also on
sales promotion), adds Dr Kumar. Currently, Vivel‘s product portfolio has
around nine variants of soaps available across India.

ITC‘s Kaul says, The brand was launched in 2008 with a bouquet of
world-class offerings, which comprised of the following soap variants: Satin
Soft, Young Glow, Silk spring, Ayurveda Essence, Vivel Di Wills in two
variants. Each variant is crafted to offer a specific benefit to the different
needs of the discerning consumer. And this product variant approach is a
result of ITC‘s 3E‘ approach (Explore, Establish and Execute) to research
and development. As Kaul shares, Extensive insights gained through
numerous consumer engagements have enabled ITC‘s R&D and Product
Development teams to develop superior, differentiated products that
meet the consumer‘s stated and innate needs. In fact an intensive market
research is one of the key areas where ITC‘s personal care division has a
strong focus. There are 3-5 years of intensive research usually before a
product is launched. This surely strengthens the brand‘s marketing team
with some sound consumer insights.
The Push-Pull strategy

Apart from the smart product strategy, the biggest reason for Vivel‘s initial
success is its push-pull strategy that ITC applies to its other soap brands
too. As Dr Kumar explains, Push is the powerful distribution clout and pull is
the advertising strategies that have been sustained ever since the launch
of ITC‘s soap brands. Vivel‘s focus on looking good with its campaigns and
Fiama‘s celebrity based strategy brings in a clear differentiation. At the
distribution level, the brand is widely available in both modern and
traditional trade. Not just availability, Vivel is also quite high on visibility at
retail outlets. Experts point out that like most of the ITC‘s FMCG brands,
Vivel has also adopted eye level merchandising that is, placing the products
just at the usual eye level at retail outlets. This increases the visibility of the
product. Kaul says, As compared to Essenza Di Wills and Fiama Di Wills,
Vivel is more widely available at various retail and departmental stores.
Trade marketing is one of our core strengths. Hence, for all its brands,
distribution is an important aspect and has helped make varied products
widely available to consumers. Thus the distribution push has played a key
role in Vivel‘s performance so far. The brand has clubbed that with a
celebrity led advertising pull. Experts believe that Vivel has very sensibly
used celebrities to enhance the brand awareness.
Kareena Kapoor is a perfect fit for the consumers Vivel is looking at.
She has given the aspirational edge to the brand among its core target
group,says an expert. Vivel also has South Indian celebrity like
Trisha Krishnan as brand endorser to connect better with the consumers in
the South Indian market. Samsika‘s Kapoor says, South India is a huge
market in itself and it‘s a smart strategy from Vivel to have a celebrity with
whom these consumers relate well. It increases the reach of the brand in
that specific market. This Push-Pull strategy is rightly complemented with
Vivel‘s competitive pricing. Vivel is available in the price range of Rs 5 (40
gm bar) to Rs 18 (100 gm). This is the range within which most of the mid
segment soap brands are priced too. The brand is expanding beyond
soaps. Apart from soaps, it has four shampoo variants in select markets in
India and ITC‘s first fairness cream, Vivel Active Fair. The fairness cream is
currently being rolled out nationally.
Also, industry reports suggest that brand may further expand in other
beauty and personal care categories like Talc‘s and Deodorant. ITC‘s Kaul
says, Consumers are evolving at a fast pace and the only way to ensure
consumer delight is innovation in the product portfolio. As ITC‘s Personal
Care Business is gearing up to revolutionize the personal care segment in
India, with extensive research and development and consumer insight
based innovation, we plan to augment the Vivel range of products to reach
out to more consumers and address their evolving needs in personal care.
However, IIM‘s Kumar opines, Vivel is into shampoo and fairness cream
categories and hence the long term challenge is not only to offer good
variants but also to develop a brand association that gets entrenched in
the psyche of consumers. A sustainable core association is essential for
any brand in the soap market.

Segment and grow!

Late entrant ITC is making competition count in the Rs 29,000-crore

personal care industry. ITC may be a late entrant in the Rs 29,000-crore
personal care industry growing at 12 per cent every year, but it sure is
making competition count. Some number crunching will establish that the
cigarette-to-hotels major has indeed made inroads into an intensely
competitive market often marked by pressured margins. In just two years,
ITC‘s personal care business has notched up market share of about 5
percent (volume) in soaps, and around 3.4 per cent in shampoos.

Brands Vivel and Superia are each estimated to be more than Rs 200
crore per annum in consumer spends. Putting those numbers in context is
a IMRB household panel survey in February 2010 that indicates Vivel and
Superia soaps and shampoos have been purchased by over seven crore
households, representing nearly 30 per cent of Indian households.

What helped ITC cut across the clutter is probably its product proposition:
a wide range of products meeting international quality standards but
developed on the basis of Indian consumer experience?
Of course, chief executive of personal care strategic business unit,
Sandeep Kaul, believes it‘s not one selling proposition, but several that have
helped ITC carve out a place in the market. We offer a superior value
proposition to the consumer and we have an intimate understanding of
consumer insight. And, of course, the aesthetics. These are the
cornerstones of our value proposition, Kaul says.

No doubt. At ITC, there is a lot that goes into understanding the consumer.
The company spent close to four years researching at its centre in
Bangalore before the first product from the personal care stable rolled
out. That is why our products have been accepted by the consumer. We
probably have the fastest growing set of brands in the market, Kaul points
out before adding rather modestly that the base is also small.

ITC‘s non-cigarette fast moving consumer goods (FMCG) business — which

contributes close to 50 per cent to the company‘s turnover — registered a
strong set of numbers in the third quarter of 2011 and among the highlights
was a continued reduction in loss reported by the FMCG business. While
revenues increased 23.8 per cent year-on-year to Rs 1,104 crore, losses
came down by Rs 12 crore to Rs 74 crore, though sequentially it increased
due to new launches. Angel Broking Research expects the revenue traction
in the segment to continue and loss to reduce albeit at a slower pace than
FY2010, though breakeven is likely to be achieved only in FY2013.

Engagement with consumers, promotional activities and new age

consumer connect avenues have had their roles to play, but it is the
relentless rollout of products that has given ITC‘s FMCG portfolio so much
visibility. In a short span of time, ITC has managed to create a presence
across different price points, almost bombarding the market with launches.
In the super premium segment, it has Essenza Di Wills‘ fragrances, in
premium Fiama Di Wills, in the mid-market segment Vivel and in the
popular segment Superia. There is a segment below the popular, but ITC is
not present at that price band.
While the company has kept its fragrances small, it gives ITC‘s FMCG
portfolio a prestige value, priced as they are on par with international
designer fragrances. It is doing very well, considering that the distribution
has been kept limited. We would like to keep it that way. We need a
particular ambience for the brand to be presented, Kaul points out.

Launch pad
Our track record in launching new products has been pretty excellent, Kaul
says. That‘s putting it mildly. The personal care business of ITC has gained
ground leveraging investments in R&D, product development and brand
building. The company made a foray into the fast-growing and relatively
under-penetrated domestic skin care market with the launch of Vivel
Active Fair Cream (the fairness cream market is estimated at Rs 1,900
crore) in June 2010. The product has been well received in the launch
markets and is being progressively rolled out to target markets.

The business expanded its product portfolio in the soaps category with the
launch of Vivel Glycerin Milk Cream, a new offering in the winter segment.
Vivel Deo Spirit, its offering in the freshness segment, was extended to
Andhra Pradesh, Kerala and Karnataka last winter. The anti-hair fall
shampoo variant under the Fiama Di Wills brand launched in September
2010 has also been successful, says the company.

Recently, ITC entered the men‘s grooming segment with the Aqua Pulse
shower gel and soap. We are progressively seeing a trend, wherein men
are beginning to look for value propositions and products created keeping
them in mind. People are becoming more and more discerning, Kaul
explains.

The business is investing in building a strong portfolio of products and

brands through well-defined research and development strategies backed
by the company‘s state-of-the-art R&D centre. It is also continuously en-
hancing the quality of engagement with consumers through efficient de-
ployment of media, direct contact and promotional activities across con-
ventional and new age consumer connect avenues.
The business continues to leverage investments in manufacturing facilities
at Haridwar (Uttarakhand) and Manpura (Himachal Pradesh). Apart from
the fiscal benefits that accrue on such investments, these facilities also
provide a higher degree of flexibility in manufacturing.

Kaul vows that products and variants will keep rolling. We are in the process
of rolling out products in categories where we have already entered. That
process will go on, he says. Peer companies believe Kaul. We respect them
as a company with good financial capability, distribution and management,
Emami director, Harsh Agarwal says. In a market as big as Rs 29,000 crore,
there is possibly space for many players.

In all these launches ITC has followed the top-down approach that has
given it tremendous success in its lifestyle retailing and the stationery
segment foray as well as its food business. ITC stepped into lifestyle and
the stationery segments about a decade ago with premium Paperkraft
notebooks and Wills Sport apparel. It‘s only much later that it introduced
mass market brands Classmate notebooks and John Players menswear.
Then in 2001 ITC entered the food business with premium ready-to-eat
brand Kitchens of India and followed it up in 2003 with the launch of the
Aashirvaad range of ready meals in the Rs 35-50 price band.

THE PORTFOLIO

ITC‘s personal care portfolio is designed to appeal a cross-section of

consumers with its differentiated value propositions.

Essenza Di Wills is a range of super premium offerings which includes

fragrances and bath and body care products with distinctive olfactory
profiles. The brand aims to offer a balance between the classical and the
contemporary with offerings for both men and women. Essenza Di Wills‘
deodorant is priced at Rs 475 and the perfumes upwards of Rs 1,800.
Fiama Di Wills is a range of bath care products especially designed for
consumers who seek to indulge themselves in premium experiences
through products and services. The brand offers a range of shampoos,
conditioners, soaps and shower gels that combine exotic natural elements
like sage, watercress and magnolia blossoms with contemporary
technology like hydro restorative system, hair restore technology and the
cuticle restore technology. The products are priced between
Rs 33 and Rs 120.

The Vivel range of products launched in 2008 is ITC‘s leading personal care
brand and has emerged as one of the fastest growing brands nationally.
The brand offers a range of bath care and skin cream products in the
mid-market segment. The Vivel portfolio comprises soaps with actipro-N,
one with double moisturizers, Vivel Milk Cream & Glycerin Soap, as well as
the first soap targeted the youth, Vivel Deo Spirit. In shampoos, Vivel has
two variants — Total Care and Ultra Pro Anti-Dandruff shampoo. Vivel
expanded its portfolio with the launch of ITC‘s first fairness cream, Vivel
Active Fair which promises a lightened skin in just seven days. The products
are priced between Rs 5 (soaps) and Rs 129 (shampoos).

The Superia range comprises soaps and shampoos aimed at the value
consumer. The products are priced between Rs 5 and Rs 52.

Rural reach

The rural market, which is currently the hotbed of FMCG battles, is ITC‘s
strongpoint while many may find it challenging reaching out to consumers
there. It‘s a combination of direct reach and wholesaling that ITC has
developed over the years. We are perhaps one of the few organizations
that reach two million outlets, Kaul adds.
The e-Choupal network, the world‘s largest rural digital infrastructure
empowering four million farmers in 40,000 villages, is another area of
engagement that ITC can tap. We have existing relationships there based
on the network that can be leveraged to disseminate both the product
story and its value proposition, Kaul explains.

It‘s not without reason that companies are reaching out to rural India.
Depending on category, as high as 55 per cent in some sub-segments in
the personal care business is in the rural market. The growth rate varies
across India, but ranges between seven and goes up to 20 per cent in
some cases.

For people more comfortable with investing less money at a time, ITC has
what the FMCG world is selling the fastest these days — products in
sachets. It‘s an Indian psyche. Sachets are sold in urban and the rural
markets, though the percentage may be higher in rural, Kaul says.

A growing demand would necessarily require capacity augmentation. ITC

responded to the needs by adding capacity at its plant at Haridwar in
Uttarakhand and commissioned a new plant at Manpura in Himachal
Pradesh sometime back. We are in the mode of expanding capacity but
probably in the same locations. It‘s an ongoing process as we continue to
invest in newer forms of technology, Kaul says.

Is inorganic expansion an option? We are always open to options of

inorganic growth. However, we will be able to do or get into inorganic
growth only if we believe that we can create more value than existing
handlers of the asset. Given the market construct in India, there are not
many opportunities that are available for acquisition, Kaul explains the ITC
philosophy.
Milestones galore

three products have been voted as consumer‘s choice in a Nielsen survey.

Kaul would like to see more such milestones. Winning consumer affection is
our priority number one. We have been meeting our expectations, Kaul
says proudly.

The company doesn‘t want to share the targets, but Angel Broking says,
while cigarettes will continue to remain the main profit centre, investments
in non-cigarette businesses have started yielding positive results, many of
which are just about a decade old in the 100 years of the company‘s
existence.

We expect non-cigarette earnings before interest and taxes to post a 35

per cent compound annual growth rate aided by reduction in non-cigarette
FMCG losses, improvement in hotel margins aided by higher average room
rate and higher margins in paperboards, a recent report from the broking
house notes.

MARKETING MATTERS!

With the core proposition to offer consumers a unique brand experience,

ITC‘s personal care business has engaged in a slew of consumer contact
programmer:

Fiama Di Wills collaborated with Walt Disney to launch a limited edition

Fiama Di Wills Hannah Montana pack for Indian teens. This association with
Walt Disney‘s teen pop star provided a unique opportunity for Fiama Di
Wills to engage with a younger demography. Fiama Di Wills Shine in Style
Hannah Montana Packs received an overwhelming response, says the
company.

The Vivel Active Fair within months of its launch received extremely
encouraging consumer response.
The brand, in a special initiative for consumers in Kerala, gave young
women an opportunity to be the next gorgeous face of the Malayalam film
industry. Reputed Malayalam director Lal Jose was roped in for the
selection process.

Vivel Soaps undertook the Vivel Lakshadhikari contest in Andhra Pradesh.

The contest offers consumers an opportunity to win Rs 5 lakh on
completion of a simple slogan Vivel should make your dream come true
because…‘ and along with it, send any three Vivel soap wrappers/cartons to
a mailing address. The first couple of Vivel Lakshadhikari were announced
recently and felicitated by brand ambassador and Tamil actor Trisha
Krishnan.

Superia recently announced its Superia Saundarya Sakhi‘ initiative in Uttar

Pradesh. It is an initiative to enhance skills of women entrepreneurs in the
business of beauty across the state of Uttar Pradesh. As a part of this
initiative, Superia will reach out to 4,000 beauty parlor owners in more than
30 districts of Uttar Pradesh.
Superia has also announced the Superia Chamakta Sitara‘ campaign in
Uttar Pradesh. The contest, in association with schools across 29 districts
of Uttar Pradesh, aims to recognize all-round development among
students. Students from grade 7 to 12 will compete to become the
Superia Chamakta Sitaras‘. These students will be judged on the
parameters of grooming, attendance, academics and extracurricular
activities. The campaign will reach out to more than 1,000 schools.

ITC SONAR | KOLKATA

How the tobacco-to-hospitality major ITC stormed the
Personal Care market. What makes it tick...?

TATA, BIRLA, RELIANCE, OR GODREJ. Just look at the making of these

business conglomerates, you will find that diversification into new
businesses has been the biggest propellant of their ever-growing size, clout
and brand prowess. Popularly known as ITC, the $5-billion Indian Tobacco
Company is a likely addition to this select club of ambitious desi
conglomerates. Starting from its humble beginnings in 1910 as Imperial
Tobacco Company of India, Virginia House, the group headquarters in
Kolkata, has been the proud witness to many successful new business
scripts in the company‘s long and varied journey. As tobacco became a
bad word in the last two decades, and successive governments began to
put many curbs in terms of advertising and other promotions around
tobaccos, it became a tough business environment to operate in, besides it
has started taking a toll on the company's image. Hence, ITC needed to
change its track and that too quickly. And like a skin shedding snake, ITC
started an earnest exercise in creating a new brand image and corporate
philosophy by investing in new business categories like personal care,
premium apparel, rural business (eChoupal) and foods. All along using its
famed distribution strengths built through its successful past businesses
like cigarettes, paperboards and packaging, hotels and agri business, to
create synergies across its verticals and help prop up its new businesses,
like personal care and foods. ITC has a well thought-out strategic
approach. Rather than acquiring weaker brands to get into these new
segments inorganically, it created a range of new personal care and
branded apparel brands. The decisive element for its new brands was
having a product that's differentiated and superior in value proposition
than what the competition has to offer. The first step in this well-planned
strategy was the launch of Wills Lifestyle, the premium branded apparel
business in 2002.
This business is being spearheaded by CEO Atul Chand from New Delhi.
That ITC was very serious about this new foray was clear from the fact
that it hit the market with four brands— Wills Classic, Wills Sport, Wills Club
Life and Wills Signature—to cater to the specific apparel needs of men and
women of upper and mid-income levels. Besides, it has also launched
exclusive men's and women's wear brands—John Players and Miss Players.
Not stopping at apparel, ITC then moved on to take the competition head
on in the FMCG domain, through ITC Foods in August 2001, and personal
care business, which is the focal point of this story, in 2005. It has created
good impact with its well etched-out Personal Care Brands, headed by
Sandeep Kaul. Under this category, brands like Essenza Di Wills, Fiama Di
Wills, Vivel Di Wills, Vivel and the Superia were designed to take care of
various sets of consumer segments.

CHAPTER 3
AN INTRODUCTION TO THE PROJECT

Background of the problem

The project intended to achieve sustainable growth & increase market
share of ITC soaps in Odisha .. It was an overwhelming task in such short
time.“LUX” & “Lifebuoy” soaps of Hindustan Unilever is a major competitor
in the market.

Objective
1.The main objective of the project was to study and analyse the market of
ITC soaps in Odisha .

2. To suggest ways and methods to achieve sustainable growth & increase

market share of ITC soaps in Odisha.

Reasearch Methodology
The type of research carried out during the study was Descriptive
research.
Primary research:
Primary research (or field research) gathers original information directly for
one’s purpose, rather than being gathered from published sources. Primary
research methods adopted during the project are as follows :
Surveys:
There were two surveys that were carried out during the project.

Survey of the Retailers.

Survey of the Consumers.

Direct Observation:
During our two months tenure as intern in the organisation we have been
constantly monitoring the market conditions through regular visits to the
retailing shops, wholesalers and distributor.

Secondary research:
Secondary research (or desk research) gathers existing information
through available sources. Secondary research method adopted during the
project are as follows :
Existing data from your own stock lists and Retailer/Customer database.

Sample selection and technique:

A sample size of 100 of both retailers and consumers within Cuttack
district was taken to conduct the survey. Convenient sampling was used
while selecting the samples during the study.
CHAPTER -4

Data Analysis & Interpretation

A - AGE GROUP

B - GENDER
What price you pay for buying a single Soap bar ?
CONSUMER RESPONSE

Where do you usually purchase a soap ?

Purchase Place
Consumer Perception towards various attributes while
purchasing a soap

Interpretation: From fig. consumer perception various attributes while

purchasing soaps can be concluded. From the survey conducted it is found
that consumers are highly influenced by the “Value for money” and “Nour-
ishment qualities” and “Antibacterial properties ”of the soap. Also, “TFM
Content” of the soap did not matter to them while buying soaps. And
“Brand” is of medium importance while purchasing soap.

Consumer Perception towards Savlon Soap

Consumer Perception towards Vivel Soap

Consumer Perception towards Superia Soap

Consumer Perception towards Fiama Soap

Do you get influenced by Soap Advertisements and buy

the soap?
Retailer’s Perception

Analysis of retailer’s view on different brands on the basis

of various business aspects :
a) Savlon

b) Vivel
Fiama

Superia
 *AC Neilsen Q4 2017

The personal care space in India is one of the fastest growing fmcg space and is
anticipated to grow at 22% CAGR during the period 2017 -2020. Currently the
personal care space in India values at approx. 90,000 crores. Moreover, the
market will maintain healthy growth due to rising preference forspecialized
cosmetic products such as organic, herbal and ayurvedic products. Principal
areas that areexpected to grow include color cosmetics, fragrances,specialized
skin care, hair care and make-up cosmetics. Currently, India accounts for a share
of just over 1% of total global personal care, cosmetics and cosmeceutical
market. This share is anticipated to grow significantlyover the next 5 years. This
growth will be primarily led by increasing disposable income, relatively young
urbanelite population and rising middle-class population.

Currently among all the categories, Toilet Soap is numerouno contributor at 15%
followed by washing powder at 14%, Skin cream at 10% and so on. Segmentation
of Toilet Soap Category in order to understand consumer preferences, and value
contribution to the industry basis price as a factor.
1. Segmentation basis value for money
Analysis as per survey

2. Segmentation basis consumer usages

Analysis as per survey
 ITC’s Toilet Soap Portfolio on BCG matrix
Identifying Key Growth Drivers for future

Segmentation at a glance ITC vs Competition

1

CHAPTER-5
Findings
TS ACN DATA –April(17-18) (Average value)

Savlon

Superia
 Vivel mid-pop

Fiama

- It is found that almost all retailers are dealing with ITC soaps.
- Major competition ITC is getting from HUL.
- The brand image and Price are the major reason for the movement of ITC
soaps.
- It is found that the demand of Savlon soap is medium compared to other
soaps in health category.
- The competitors promotional schemes have influence the sale of ITC soaps.
- Because of the malgodown in cuttack ,the pricing of all products is
unstabilized in odisha.
- It is found that according to retailer’s opinion the Lifebuoy is fastest moving
soap in health category.
- It is found that according to retailer’s opinion the LUX is fastest moving soap
in Beauty category.
- It is founded that the Savlon soap enjoys third position among the fast
moving soap of different brand. Lifebuoy enjoys the first position.
- The satisfaction level of most of the Retailers regarding the sale of ITC Soaps
is “Average”.
- The Promotional and the incentive schemes for ITC Soaps are not satisfac-
tory for the Retailers.
- Promotion of Savlon is not satisfactory for the consumers as well. It is found
that the advertisement for Savlon is not of the optimum level as required.
- Value for money, antibacterial properties and nourishment qualities are the
most important factors for a consumer while purchasing a soap.
- Maximum consumers around 68% of the people get influenced by T.V adver-
tisements to buy soaps.
- Maximum people around 79% change soap brands , and a majority of them
change brands many times.
- In majority cases the individual himself (46%) is the decision maker on which
brand of soap to purchase followed by retailers and parents.
- The maximum respondents were of the age group between 25-35.

Recommendation

- Free Sampling can be done in schools, colleges, malls, etc, to create brand
awareness.
- Can tap local doctors and chemists to push Savlon into rural households
- Small stalls of ITC can be placed during Rahagiri so that we can advertising
our product to create awareness among the people
- Focus should be on high visibility and availability in smaller towns to help pen-
etration in these markets.
- Sponsoring in college fests, and other events would surely increase the sales
turnover ratio.
- The company can approach the schools and colleges for distributing their
products in canteens and food courts.
- Also the company can approach the government for distributing their prod-
ucts in Govt. Schools, in military canteens and also in AAHARA Kendras.
- The company can visit some doctors along with the gift packs of SAVLON.
LIMITATIONS

Following were the limitations that I faced during the summer internship:

- The time period for the study was not enough for such a vast topic.
- The entire project study was limited to Cuttack district only.
- Many retailers did not express their original perception and views
because of business.
- It was difficult for the salesmen to pinpoint the sales of a particular
brand in the stores.
- Respondents were reluctant to take the survey.
- The sample size I took was less, so I was not able to obtain diverse answers.
- Respondents were biased towards the companies and questions were not
answered with justice.
CONCLUSION

Lastly, I would like to conclude my Summer Internship Project. It was really a

good experience working with ITC Ltd., where I got to know each and every bit
of the market as to how it behaves and how it reacts to even slightest change
in price and how the B2B industry works right from the supply chain to the
orders are received.
This live project work enabled me to interact with the intermediaries who are
involved in the B2B industry who help the goods reach the final customers. It
was some out of the world experience as it was for the first time I was asked
to visit the retail outlets .

From my live project work I can conclude that ITC is a very popular company
which has a diversified range of product.

So, it would be wise for ITC to introduce certain schemes for these retail and
wholesale outlets so that they can happily push the ITC products which would
then see further growth in the market share of low moving products too.

Other things which can influence consumers are:-

- Advertisement influences the buying behavior of the customer
- Local influential persons are the best source for the awareness
- Introducing offers such as giving free samples and sell of product by
clubbing them.

I am proud to be associated with ITC limited and the experience is an asset for
me. During my learning process I observe many things which can be contribute
towards the performance of ITC. Some recommendations are also given on
my findings and field observations.
Annexure-1

Questionnaire on Consumer Behaviour towards Soaps

Rate the below given brand of soap you use if your choice is Beauty. If any other,
please mention_______________________
Rate the below given brand of soap you use if your choice is Beauty. If any other, please men-
tion_______________________
A) LUX B) VIVEL C) DOVE D) SANTOOR E) PEARS

Rate the below given brand of soap you use if your choice is Beauty. If any other,
please mention_______________________

14
ANNEXURE-2
Bibliography

Primary Data:
- Conversations with the retailers.
- Taking insights from consumers & Retailers through the questionnaire.
- Interaction with the project guide, the executives of the TMD, Distribu-
tors, and Sales team.
- Reports and files shared by my project guide & Area Executives.

Website:
- www.google.com
- www.scribd.com
- http://www.itcportal.com
- http://www.moneycontrol.com/india
ITC TEAM - Odisha