Evaluating all the parameters of launching a new Skin Care Product

Submitted By:
Satyabrata Kundu 09BS0002100 ICFAI Business School

SUMMER INTERNSHIP PROGRAM-2010 FINAL REPORT

PROJECT Evaluating all the parameters of launching a new Skin Care Product

Faculty Guide
Prof. H.V.Kothari ICFAI Business School Noida.

Company Guide
Mr. Pradeep Kumar/Mr. Pankaj Bansal Brand Manager/Brand Executive Emami Limited.

ICFAI BUSINESS SCHOOL

Submitted by
Satyabrata Kundu
(09BS0002100)

EMAMI LIMITED
687, Anandpur, EM Bypass, Kolkata 700 107.

AUTHORIZATION AND UNDERTAKING

EMAMI/HRD/KB689

February 14, 2010

To Whom So Ever It May Concern

This is to certify that Mr. Satyabrata Kundu, Enrolment No.-09BS0002100, IBS Kolkata has been selected by Emami Ltd. for doing 14 weeks summer training in our organization commencing from 15th February 2010 to 21st May 2010 in Marketing Department. Mr. Satyabrata Kundu will be required to be based at New Delhi for this project.

Statement of Authentication
I, Satyabrata Kundu certify that this report is my own work, based on my personal study and/or research and that I have acknowledged all material and sources used in its preparation, whether they be books, articles, reports, lecture notes and any other kind of document, electronic or personal communication. I also certify that this report has not previously been submitted for assessment in any other unit, except where specific permission has been granted from all unit coordinators involved, or at any other time in this unit, and that I have not copied in part or whole or otherwise plagiarised the work of other students and/or persons.

Satyabrata Kundu 21/05/2010

ACKNOWLEDGEMENT

This project is prepared in fulfilment of the Summer Internship Program (SIP) under the Masters in Business Administration (MBA) course of ICFAI Business School, Kolkata. While preparing this report I was aided by a number of people. At this time of completion, I would like to express my sincere appreciation towards them. I am very grateful to my faculty guide, Prof. H.V.Kothari for his valuable and timely guidance throughout the project. His feedbacks have been very useful in preparing this report. I express my gratitude to Mr. Pradeep Kumar, Brand Manager, Emami Ltd for guiding me and supporting me through this project. I also express my heart felt gratitude to Mr. Pankaj Bansal, Brand Executive, Emami Ltd for guiding me and supporting me through this project. I also take this opportunity as privilege to articulate my deep sense of gratefulness to Mr. Dharmendra Kumar (Area Sales Manager, Delhi) and Mr. Pradeep Kesar (Area Sales Manager) and the staff of Emami Delhi for their timely help and positive encouragement. It was a pleasure to work with these people and some other project trainees as a team and a family. They have been a source for inspiration to me and I am indebted to them for initiating me in the field of research. The project could not be complete without their able support and guidance. Thanking them is a small gesture for the generosity shown.

CONTENTS
1. AUTHORIZATION AND UNDERTAKING... 2. ACKNOWLEDGEMENT. 3. EXECUTIVE SUMMARY . 4. COMPANY OVERVIEW... 5. FMCG SECTOR IN INDIA.... 6. BRAND BOROPLUS ... 7. RESEARCH DESIGN AND METHODOLOGY 8. ABOUT THE PROJECT
03 04 06 08 12 13 17 21

9. CONSUMER ADOPTION PROCESS 23 10. ABOUT THE PRODUCT....... 24 11. OFFTAKE SALE REPORT ANALYSIS.. 12. CUSTOMER FEEDBACK ANALYSIS. 13. CUSTOMER RESPONSE ANALYSIS
26 31 33

14. COMPARISON OF SALE (IN SHOP PROMOTION).... 36 15. BUSINESS RESEARCH METHOD.. 16. RECOMMENDATIONS. 17. APPENDIX. 18. REFERENCES...................
37 47 48 61

EXECUTIVE SUMMARY
This project is prepared in fulfilment of the Summer Internship Program (SIP) under the Masters in Business Administration (MBA) course of ICFAI Business School, Kolkata. Emami Ltd, the flagship company of the Rs2000 crore Emami Group, is a leading player in the personal and healthcare consumer products industry in India. A jewel in the crown of the conglomerate, the company is a coveted Rs700 crore business entity engaged in manufacture and marketing of health, beauty and personal care products that are based entirely on ayurvedic formulation. Emami identified two main sectors in the market and aimed to target it by extending the Brand Boro Plus. Skin Treatment Skin Care The brand identity of BORO PLUS was also taken into consideration and a detailed study was conducted to understand the positioning of the brand. The following project is aimed at evaluating all the parameters associated with launching a new skincare product during the test launch. The product, Boro Plus Intensive Skin Therapy Cream (BPISTC) was launched in select 500 outlets of Delhi and evaluation of its performance was done by analysis of data on parameters such as Window Display, Merchandising, In Shop promotion, Consumer Surveys, Tracking off-take sales from stores (during & after In Shop promotion) etc. During the test launch all earmarked areas were carefully monitored in terms of above mentioned parameters to ensure that the new product launch was a success. All major and minor deficiencies found were noted and streamlined and shall not be replicated during the nationwide launch.

Prospective customers were contacted during In Shop promotion and actual buyers after 6-10 weeks of use of the cream in order to generate Customer Response Analysis and Customer Feedback Analysis respectively to gain valuable insights into consumer buying and re-buying behaviour. After a detailed analysis of these surveys, close indirect competitor brands of BPISTC were identified and mapped. A business research method named Discriminant Analysis was used to generate a predictive function called Discriminant function to classify potential customers as Purchasers or NonPurchasers. The findings which came into light were that 91.7% customers purchased the cream by believing on the proclaimed benefits (performance) as the behavioural pattern and the discriminating factor (performance) were strongly co-related. Any future customer would also buy the cream based on the performance of the cream as this variable came out to be the best predictor. Also the analysis was perfect as 100% cases were correctly classified and no errors were recorded. Few recommendations that can help in the successful nation-wide launch of BPISTC sum up this project report. It includes, introducing advertisement campaigns to increase awareness of this innovative product.

INTRODUCTION

COMPANY OVERVIEW
Emami Ltd, the flagship company of the Rs 2000 crore Emami Group, is a leading player in the personal and healthcare consumer products industry in India. A jewel in the crown of the conglomerate, the company is a coveted Rs 700 crore business entity engaged in manufacture and marketing of health, beauty and personal care products that are based entirely on ayurvedic formulation. Established by Mr. R S Agarwal and Mr. R S Goenka in 1974, Emami Limited has over 25 brands under its portfolio. The companys financials show it has repeatedly outperformed the industry standards. Emami Ltd has maintained a CAGR of 25% over the last three years compared to the industry average of 16-17% Understanding the human needs and fulfilling them by dint of technical research is a positive feature of Emami. This is being made possible by Himani Ayurveda Science Foundation (HASF) that generates the very best of ayurvedic formulations. The foundations unique range of healthcare products aptly caters to consumer needs. The world class quality control methods and processes maintained by HASF ensure optimum utility of each ingredient. The foundation is completely engaged in constant innovation and pharmaceutical enhancements.

Boro plus brand is the market leader in the antiseptic cream segment; the Navratna Oil is also in the pole position in the cool oil segment. Fair and Handsome is the pioneer in the fairness cream for men segment. Emamis products in different categories like cool oil, antiseptic cream, fairness cream for men, and the crme herbal hair pack have carved a niche for themselves in their respective segments. Boroplus has been selected as among the top 100 brands by the Brand Equity of The Economic Times. In 2006 and 2007, Navratna has been ranked the 6th Most Energized Indian Brand by the DY&R Brand Asset Valuator. Sona Chandi Chyawanprash, Himani Fast Relief, (ayurvedic pain relief ointment) Mentho plus (pain balm), Hairlife (crme herbal hair pack) and Emami Malai Kesar (cold cream) are also major players in their respective categories. Brand extensions have helped Emami consolidate its position in the market and also cater to varied consumer needs. Emami has recently entered the glycerine soap category with Emami Pure Skin and petroleum jelly category with Emami Vasocare. Emami has successfully established its brands through strong celebrity endorsements. It is the only corporate entity in the country to have both Amitabh Bachchan and Shah Rukh Khan as brand endorsers for the same brand, Navratna. The concept of brand endorsement by celebrities has been successfully experimented in case of 25 brand launches. Besides Amitabh and Shah Rukh, other celebrity endorsers of Emamis brand include Madhuri Dixit, Kareena Kapoor, Govinda, Sourav Ganguly, Chiranjeevi, Surya and Upendra among others.

Emami covers all the states with 28 depots across India. Its supply-chain management assumes immense significance which was aptly reflected through remarkable expansion in dealer-distribution network, outlets and manpower. The domestic sales and distribution division directly covers 4,00,000 outlets all across the country along with an additional 2100 modern retail outlets. Emamis products reach out to nearly 30 lakh retail outlets across India through 4,000 distributors. The company has ultra modern manufacturing facilities all across India including Kolkata (West Bengal), Guwahati (Assam), Pondicherry, Uttaranchal and Baddi (Himachal Pradesh). It has adopted the Total Quality Management system and all its manufacturing facilities have received cGMP and ISO 9001:2000 certifications. Recently Emami Limited with an investment of Rs 700 crore has acquired major stake in Zandu Pharmaceuticals Works Ltd on the basis of huge business synergy between Zandu and Emami. Emami Ltd has recently been conferred the Most Enterprising Company of the Year by IIPM (Indian Institute of Planning and Management) and The Sunday Indian publication of the Planman Media Group. In 2007, the company received the Institute of Cost and Works Accountants of India (ICWAI) Award for Excellence in Cost Management.

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Companies under Emami Group are :-

> Emami Paper Mills Limited > Emami Chisel Art > South City Projects (Kolkata) Ltd > Advanced Medicare & Research Institute Ltd > Frank Ross Limited > Emami Realty Limited > Emami Retail Pvt. Limited (Starmark) > Emami Biotech Limited > Susruta Clinic & Research Institute for Advanced Medicine Pvt. Ltd

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FMCG SECTOR IN INDIA

FMCG Sector India being one of the largest emerging markets with a billion plus population is also one of the largest economies in the world in terms of purchasing power with a strong middle class of over 500 million. Against this background the fast moving consumer goods industry (FMCG) sector has continued to show good momentum. It witnessed a steady growth aided by a strong demand from rural markets. However the industry has a long way to go, the per capita consumption in most product categories are still low, indicating an untapped market potential. Current Scenario due to various M&A strategies adopted by FMCG companies in 2006-07 the size and scale of many have got a tremendous boost. For instance, according to Adi Godrej, chairman, Godrej consumer products, their Keylines buyout increased their sales turnover by 20% and as a result their profit would increase by 10%. The M&A trend took off in the year 2005-06 and continued enjoying the same momentum in 2006-07 as well. The companies adopting such strategies enjoy economies of scale in marketing, sales and distribution. Further their combined advertisement reduces the cost. Many FMCG companies has set their eyes on filling the gap in quirking companies with a set of products as well as brands that compliment their existing portfolios. Mr, Harsh Aggarwal and Mr. Mohan Goenka, directors of EMAMI agrees that FMCG companies need to innovate continuously to ensure that input cost do not affect their growth.

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BRAND BOROPLUS
Boro Plus Antiseptic Cream was launched under the Himani umbrella in 1984. In spite of being pitted against a heritage brand such as Boroline, it has become the leader. Many additional brand extensions followed Boro Plus included a prickly heat powder, summer and winter lotion. Emami identified two main sectors in the market and aimed to target it by extending the Brand Boro Plus. The sectors identified and the existing extensions in those sectors are

Skin Treatment
Boro Plus Antiseptic Cream Boro Plus Prickly Heat Powder

Skin Care
Boro Plus Advanced Moisturizing Lotion (Summer) Boro Plus Advanced Moisturizing Lotion (Winter) The Boro Plus Antiseptic cream still being the leading brand in the skin treatment sector with a 74% market share (in volume) by April March 2009 is not only the largest selling antiseptic cream in India, but also in 30 countries including Russia, Ukraine and Nepal.

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BOROPLUS BRAND IDENTITY

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Color Boro Plus Branding in Purple / Consistent Elements in Purple like swoosh Sensorial All BP Extensions to have a unique fragrance or a tangible sensorial differentiator against competitor in the category Natural / Herbal All BP Products to have herbal cues in either product / perfume / color etc. To be positioned as Natural Products Contemporary Design Packaging to be contemporary and modern in look & feel

Boro Plus Personality Family friend you trust, Reliable/Dependable, Hardworking/Effective Brand can be trusted to provide effective solutions for personalized problems and can be relied upon like a family friend who delivers results

Relationship Expert Friend Boro Plus acts as an expert for specialized skin problems. She however doesnt have the formality or reverence of a higher authority, but is your friend from next door.

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Culture Emerging Middle Class Deeply rooted to Middle Class values, yet progressive and forward looking Brand emulating current trends and moving towards a better future

(Brand is modern and talks to todays generation without alienating traditional values)

Reflection Smart and well informed Users of Boro Plus are smart to avoid or tackle skin problems. They are well informed about their skins needs and take good care of it.

(Savvy about skin care needs, BP users know how to take good care of themselves)

Self Image Assured about Healthy Skin

As a discerning skin care user Im conscious about using products which keep my skin healthy. I feel safe and assured with Boro Plus

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RESEARCH DESIGN AND METHODOLOGY

RESEARCH METHDOLOGY:
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done. We can say that research methodology has many dimensions and research methods do constitute a part of the research methodology. The study of research methodology gives the student the necessary training in gathering material and arranging or car-indexing them, participation in field work when required, and also training in techniques for the collection of data appropriate to particular problem, in the use of statistics, questionnaires and controlled experimentation and in recording evidences, sorting it out and interpreting it. Knowledge of research methodology plays a key role in project work. It consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps.

Data Collection Method

Data can be collected by Primary as well as secondary method.

Primary Data Sources

Questionnaire methods and discussions with consumers were used to collect data.

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Research Design:
Exploratory type of research designs adopted because sources of information are relatively few and the purpose is merely to find and to understand the possible actions. The major purposes of exploratory study are: Identification of problem. The precise formulation of problems including the identification of variables. Formulation of alternative course of action.

Sample Design:
Sampling technique
Stratified sampling technique is adopted to conduct the research. Stratified purposive sampling is a selection method for achieving a greater degree of representatives, therefore decreasing the probable sampling error. It is based on the concept that a homogeneous population produces samples with smaller sampling errors than does a heterogeneous population. Stratified sampling is accomplished by placing all the members of the population into groups according to some characteristics that is common among them, that is homogeneous subsets of the population. Then specified number of unit is chosen from each of the groups or strata by purposive means.

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Research Methodology Applied in this Report

Sampling Method and Design Stratified Sampling Questionnaire Design Exploratory Research Descriptive Research Quantitative Research Qualitative Research Primary Data Collection Analysis of Primary Data and Secondary Data

Objectives of the project:

The objective of the project is primarily: To evaluate all the marketing, sales and promotional parameters relating to test launch of a new skin care product (Boro Plus Intensive Skin Therapy Cream) in Delhi To measure the customer reactions on the concept and product post usage of BPISTC The objectives should be SMART objectives. S- Specific M- Measurable A- Achievable R- Relevant T- Time bound

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Methodology:
The methodology of the project is as follows: Stratified Sampling Evaluation of Window Display / In shop Promotion / Merchandising / Feedback collection from end consumers Wet Sampling among prospective users / Understanding reasons for non-purchase Consumer Adoption Process, Descriptive Research etc.

Research Area: Respondent Profile:

Delhi All Customers and Prospective Boro Plus Users All Children and Adults Primarily Women (Majority of the respondents likely to be Women who walk-in the stores)

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ABOUT THE PROJECT

The project is carried out in three main phases, in a sequential manner: The First phase of the project involves Selecting 500 outlets out of a total of 15,000 outlets in entire Delhi region Out of these 500 outlets 100 outlets are classified as Class A outlets and 400 outlets as Class B outlets depending on the sales provided to the parent company. The Second phase of the project involves product placement and promotion in the select outlets in the following manner:-

Class A:25 outlets Window Display of Product(BPISTC) 25 outlets Window Display + In Shop Promotion 25 outlets Only In Shop Promotion 25 outlets Merchandising

Class B:25 outlets Window Display of Product(BPISTC) 25 outlets Window Display + In Shop Promotion 25 outlets Only In Shop Promotion 25 outlets Merchandising

The remaining 300 outlets would have Window Display of the BPISTC or Merchandising. Merchandising includes providing Dispensers, Back strips, Wobblers and Posters. Note: - Class A outlets/stores with are supposed to be provided 24 pieces for sale initially and Class B outlets/stores are supposed to be provided with 12 pieces for sale initially

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 The Third phase of the project requires The preparation of a detailed Questionnaire to gain understanding of the consumer perspective on adopting and using such an innovative cream which is totally new in the market and which provides a total solution to all skin problems. During the activity of In Shop Promotion the promoters would explain the concept of this new cream, the benefits and ingredients, distribute leaflets, indulge in wet sampling and fill up the designed questionnaire. They would also in turn try to sell this new cream to the customers they approach. Analysing the data so collected and mapping the success of the launch of this new Boro Plus Intensive Skin Therapy Cream. Also understanding the customer feedback and suggestions through calling them up after a month of usage of BPISTC so as to improve the product and taking care of all major and minor deficiencies after this launch so that it can be launched in the entire nation with huge success. Analysing the offtake sale in outlets to check whether the customers have understood the concept of this skin care product and re bought the cream after our efforts to make them aware of BPISTC.

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CONSUMER ADOPTION PROCESS

Adoption is an individuals decision to become a regular user of a product. The consumeradoption process is followed by consumer-loyalty process, which is the concern of the established producer. Earlier, years ago, new product marketers used a Mass-Market approach to launch a new product. This had two drawbacks. One, it called for heavy marketing expenditures and two, it wasted many exposures. These drawbacks led to a second approach which is called Heavy-User Target Marketing. This approach made sense, provided that heavy users are identifiable and are early adopters. However, even within the heavy-user group, many heavy users are loyal to existing brands. New-product marketers now aim at early adopters and use the theory of innovation diffusion and consumer adoption to identify them.

Stages in the Consumer-Adoption Process:-

Awareness

Interest

Evaluation

Trial

Adoption

Awareness: - The consumer becomes aware of the product but lacks information about it. Interest: - The consumer is stimulated to seek information about the innovation. Evaluation: - The consumer considers whether to try the product. Trial: - The consumer tries the product to improve his or her estimate of its value. Adoption: - The consumer decides to make full and regular use of the innovation.

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ABOUT THE PRODUCT (BPISTC)

Himani had launched the Boro Plus Antiseptic Cream under its umbrella in 1984. Instantly it connected with the consumers and became the No. 1 in its category. Under this brand it has launched a new cream Boro Plus Intensive Skin Therapy Cream to improve its skin care expert imagery Most of our skin parts such as hands, knees, elbows and heels are quite rough and dry and a little darker than the general skin colour. This is because these skin areas are most neglected by us in daily life. This cream aims to provide a total solution to these skin problems by moisturizing the skin against dryness, smoothening the skin against roughness and lightening the skin colour against the dark skin.

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This cream is a totally herbal cream which includes ingredients such as Aloe Vera, Liquorice, Glycerine, Wheat germ and Brahmi. Its herbal ingredients work efficiently on any skin surface. It is also designed and developed in such a way that it can be used all throughout the year as it is an all season herbal cream and by all age groups. This cream is a completely different from other creams because no other existing single product takes care of all the mentioned body parts. Further the product is water based and does not induce perspiration and gets readily absorbed by the skin. As a result one wears a soft, smooth and glowing skin 365 days a year. Such a product is not available in India to provide a total solution and cure such skin problems. Close competitors could be considered as Krack and Neutrogena but Krack is only for heels and Neutrogena is only for hands. This product is also priced very competitively and a 40ml pack comes for Rs.45 only. This new skin care product is extensively proven on Indian Skin*: Note:*Consumer tests on 100 respondents for 8 weeks 89% people discovered superior skin moisturization. 92% people felt their skin had become much smoother than before. 90% people experienced skin lightening

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OFFTAKE SALE REPORT ANALYSIS

In Shop Promotion

In Shop Promotion
70 60 50 40

30
20 10

In Shop Promotion

0 No. Of Outlets Offtake Sale

A total of 100 outlets were selected to have IN SHOP PROMOTION Activity. Out of these 100 outlets 50 outlets were Class A outlets/stores and 50 were Class B outlets/stores. 10 promoters were hired to carry out this activity in these outlets spread across the Delhi Region. Each promoter was supposed to cover 10 outlets over a span of 1 month spending 3 days in each outlet. Each promoter was given a 7 hour duty per day in each specific outlet. They were assigned the job of explaining the new product, distributing leaflets to customers and fill up a designed questionnaire to get the customer feedback. In this process they would also sell the product to prospective users. Since there are 5 zones in Delhi region, namely North, West, Central, East and South Zone 20 outlets from each zone were selected for the In Shop Promotion Activity. According to the graph above, after completing the In Shop Promotion Activity there were 939 pieces sold to prospective users by the promoters. Each zone had an average sale of 190 pieces. This figure of 939 pieces sold includes the sale over time irrespective of change in climatic conditions. The In Shop Promotion Activity was started on February 24 th and it was quite cold in Delhi then. The temperatures started rising in Delhi post the festival of Holi. Even then, the sales did not drop. This proves that customers have welcomed the idea of a cream which can be used all throughout the year and have shed off the inhibition that such a cream only works during winters. Looking at these figures it can be seen that the launch of Boro Plus Intensive Skin Therapy Cream is a successful one.

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Merchandising

Merchandising
70

60
50 40 30 20 10 0 No. Of Outlets Offtake Sale Merchandising

There were many outlets which did not have In Shop Promotion Activity. These 131 stores were provided with merchandisers such as Dispensers, Wobblers, and Posters etc. A total of 3 to 6 pieces were placed in these stores for offtake selling. According to the graph above, there was an offtake sale reported of 90 pieces till date. This shows that customers have shown a keen interest in this new product without even getting a full time visual display or any awareness scheme. They believe in the brand Boro Plus and such an innovative product has been welcomed by the consumers.

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Window Display

Window Display
70 60

50
40 30 20 10 0 No. Of Outlets Offtake Sale

Window Display

In a sample taken of 25 outlets comprising of stores which have only Window Display of the product, i.e. the customers being provided a visual display only, the offtake sale is reported of as high as 59 pieces. This shows that if a product is good it doesnt need any promotion or any additional effort to make it sell. The consumers accept and welcome the product happily. Looking at these figures it can be seen that the launch of Boro Plus Intensive Skin Therapy Cream is a successful one.

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Sale Comparison of BPISTC in A and B Class Outlets through Different Activities

In Shop Promotion- 57.17% In Shop Promotion + Window Display- 59.75% Window Display- 12.61% Merchandising- 16.32%

The launch of BPISTC is in its final stage. 100 A Class outlets and 400 B Class outlets were selected all over Delhi. The following report is categorized in this method:13 A Class Outlets and 12 B Class Outlets- Window Display 13 A Class Outlets and 12 B Class Outlets - Window Display + In Shop Promotion 13 A Class Outlets and 12 B Class Outlets - In Shop Promotion 6 A Class Outlets and 19 B Class Outlets - Merchandising

It is found that the outlets which had Window Display and In Shop Promotion both recorded the highest sale as customers were given both a visual display and wet sampling. This made the customers more aware of the product and hence the sale was high. To be very specific the there was a 59.75%% sale recorded. Since the customers were dealt personally the word of mouth publicity also helped in bringing more customers to the outlets. In contrast the outlets with only Window Display recorded an average sale as only visual display was present and nobody was present to explain the benefits of the new product. So few customers came to know that there is a new product launched. To be very specific the there was a 12.61% sale recorded.

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On the other hand the outlets with In Shop Promotion Activity recorded a comparatively better sale as major no. of customers was personally approached by the promoters. The main aim was to reach out to as many customers as possible in three days. To be very specific the there was a 57.17% sale recorded. The outlets which were provided with only merchandising materials recorded a very poor sale of 16.32% as no aggressive way was undertaken to make customers aware of BPISTC. It was the ability of the retailer to sell as many pieces as possible.

The main observation noted is that there is an increase in percentage in sales if we combine both A Class Outlets and B Class Outlets in a proportion of 13::12. The reason behind this increase is because the customer footfall in B Class outlets is more than A Class outlets comparatively.

*Note: - % sales refers to no. of pieces sold to no. of pieces provided to outlets

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CUSTOMER FEEDBACK ANALYSIS

No. Of Customers-166 No. of customers who gave proper response-101 Usage Time-4 to 10 weeks

Analysis of recorded Proper Responses:-

Concept Understanding99% customers liked the concept of this new cream and felt such a cream should be available in the market to provide a total solution to skin problems

Satisfaction96% respondents were satisfied after using the cream They mostly used the cream twice a day and found significant difference in their skin texture.

RatingAverage rating of the 100 satisfied customers was 7.5 out of 10 49 customers out of 100 respondents rated BPISTC as 8 or more. 14 customers rated BPISTC 9, 9.5 and a perfect 10. They were emphatic that such a cream is now available in the market.

Resale Factor62% respondents said that they will definitely buy BPISTC again. 32% respondents said that they may buy BPISTC again. 6% respondents said that they would not buy BPISTC again.

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Problems FacedOnly 1 customer out of 101 respondents reported itching and dryness after the usage of BPISTC. 3 customers didnt find the cream much effective; found it to be like any other product and have stopped using BPISTC. 1 customer felt that excess cream comes out with a gentle squeeze of the tube. 2 customers felt that the fragrance of the cream is too loud and strong and it should be a little mild.

Suggestions9% customers out of 101 respondents feel that there should be a change in the price. They feel it is a little costly. But they did suggest a price when asked. They wanted it to be Rs.40/-. 1% customers out of 101 respondents feel that there should be various sizes of the pack available.

Reasons of Customer SatisfactionNon greasy, non oily feel in summers as against normal cold creams Good fragrance Within budget

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CUSTOMER RESPONSE ANALYSIS

This analysis is based on the 2159 questionnaires collected between 24/02/2010 and 05/04/2010. These 2159 questionnaires are the ones which have a valid contact number of the customers. There are also many questionnaires along with this count but those have not been taken into consideration as they did not have a contact number mentioned. Apart from this 240 odd questionnaires were not recorded properly and thus were not considered for evaluation. These questionnaires were duly filled by the promoters during the In Shop Promotion Activity while interacting with the customers and engaging in wet-sampling procedure.

Customer Perception 99% (approx 98.5%) of the customers do feel roughness, dryness, and darkness in body parts like hands, knees, heels and elbows. 98% customers felt that this product can be used throughout the year.

Concept Explanation Almost everybody i.e. 100% thought that there is a need for a specific/specialist product which takes care of these neglected body parts.

99.5% of the customers liked and understood the concept which was explained to them by the promoters during the In Shop Promotion Activity.

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Product Use 35% customers dont use any product for such problems as per the survey.

Various Products Usage 65% customers use various products for handling such skin problems. 8% customers use Nivea Cream 29% customers use Ponds Cream 12% customers use Vaseline 14% customers use Fair & Lovely Cream 11% customers use Boro Plus Antiseptic Cream 26% customers use miscellaneous products 51% use Lakme 24% use Dove 8% use Ayur 8% use Olay 9% use other products such as Shenaz Lacto Calamine Garnier Amway Olive oil Milk & Ghee Boroline Vicco Turmeric Emami Malai Kesar Revlon any lotion etc. The ma jority of the cu stomers use PONDS Cold Cream for problems su ch as dryness, rou ghness dark ening of skin parts as evident from their response.

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Changes to be Brought 5% customers feel that there should be an introductory offer or discount given to them when there is a launch of a new product. 6% customers feel that there should be a change in the price of BPISTC. Most feel that they should get it for Rs. 40/-.

3% customers felt that the cream BPISTC was oily and sticky, had excess fragrance and was coarse in nature.

Suggestions for Improvement 1% customers feel that the packaging should have a better attractive distinct look as it looks similar to BPAC. 1% customers feel that there should be variants of the product i.e. small and big sizes so that they have a choice to use it first. Most feel there should be packs available of 20 ml and 10 ml.

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COMPARISON OF SALE (In Shop Promotion)

Comparison of Sale
1000 900 800 700 600 500 400 300 200 100 0 During In Shop Promotion After In Shop Promotion

Comparison of Sale

During In Shop Promotion which was from 24/02 to 05/04 there was a total sale of 52%. This sale figure was achieved solely by the promoters. After In Shop Promotion i.e. from 06/04 to 03/05 there is an offtake sale of 37% BPISTC reported. The offtake sales figures after In Shop Promotion were obtained and collected to ascertain the acceptance of this cream and the re-buying behaviour of the customers. As above mentioned sales figure is considerably high even after In Shop Promotion; and hence this finding shows us that this new cream has been liked and adopted by customers. Even after In Shop Promotion activity was over customers have visited stores and re-bought the new cream.

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BUSINESS RESEARCH METHOD

Discriminant Analysis
Basic Concept:Discriminant Analysis is a technique for analysing data when the criterion or dependent variable is categorical and the predictor or independent variable are interval in nature. Discriminant Analysis has two major uses: - Prediction and Understanding. It involves derivation of a variate/ linear compound/ Discriminant function that is a linear combination of the two or more independent variables that discriminate best between the defined groups of the dependent variable For predictive purposes, Discriminant Analysis provides a simple method for determining which group a particular observation is more likely to be a member of. The steps for conducting Discriminant Analysis are:I. II. III. IV. Formulate the problem Estimate the discriminate function coefficients Determine the significance of the Discriminant function Interpret the result

Assumptions: Normality of independent variables Linearity of relationships No multicollinearity

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Terms
Analysis and Holdout sample Centroid: Mean of the z-scores of all the objects within a group Classification matrix: assessing the predictive ability of the Discriminant function Discriminant weight/co-efficient Discriminant loadings: correlation between independent variables and the z-score for the Discriminant function Hit ratio Wilks lambda

Interpretation of results
Whether the analysis is meaningful Group Statistics Test for Equality of Group Means (Partial F values Pooled Within-Group Matrices (for multicollinearity) Canonical Correlation Wilks lambda Evaluation of each Discriminant function

Discriminant weights (importance from standardized co-efficient) Unstandardized co-efficient used to calculate Z-scores

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Discriminant Analysis Output in SPSS

Analysis Case Processing Summary Unweighted Cases Valid Excluded Missing or out-of-range group codes At least one missing discriminating variable Both missing or out-of-range group codes and at least one missing discriminating variable Total Total
Group Statistics Valid N (listwise) Unweighted Weighted 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000 30 30.000 60 60.000 60 60.000 60 60.000

N 60 0 0

Percent 100.0 .0 .0

0 0 60

.0 .0 100.0

GROUP 1

Total

PRFRMNCE PRICE VARIANTS PRFRMNCE PRICE VARIANTS PRFRMNCE PRICE VARIANTS

Te sts of Equality of Group Means Wilks' Lambda .196 .815 .865

PRFRMNCE PRICE VARIANTS

F 238.367 13.123 9.021

df1 1 1 1

df2 58 58 58

Sig. .000 .001 .004

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Analysis 1 Summary of Canonical Discriminant Functions

Eige nvalue s Canonical Correlation .917

Function 1

Eigenvalue % of Variance 5.318a 100.0

Cumulative % 100.0

a. First 1 canonical discriminant functions were used in the analysis.

Wilks' Lambda Wilks' Lambda .158

Test of Function(s) 1

Chi-square 104.151

df 3

Sig. .000

Standardized Canonical Discriminant Function Coefficients Function 1 1.004 1.489 -1.109

PRFRMNCE PRICE VARIANTS

Structure Matrix Function 1 .879 .206 .171

PRFRMNCE PRICE VARIANTS

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables ordered by absolute size of correlation within function.

Canonical Discriminant Function Coe fficients Function 1 .795 .155 -.117 -6.127

PRFRMNCE PRICE VARIANTS (Constant)

Unstandardized coefficients

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Functions at Group Centroids Function 1 2.267 -2.267

GROUP 1 2

Unstandardized canonical discriminant functions evaluated at group means

Classification Statistics
Classification Processing Summary Processed Excluded 60 Missing or out-of-range group codes At least one missing discriminating variable 0 0 60

Used in Output
Prior Probabilities for Groups

GROUP 1 2 Total

Prior .500 .500 1.000

Cases Used in Analysis Unweighted Weighted 30 30.000 30 30.000 60 60.000

a Classification Results

Original

Count %

GROUP 1 2 1 2

Predicted Group Membership 1 2 30 0 0 30 100.0 .0 .0 100.0

Total 30 30 100.0 100.0

a. 100.0% of original grouped cases correctly classified.

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Interpretation of the Output

Canonical Correlation-

Eige nvalue s Canonical Correlation .917

Function 1

Eigenvalue % of Variance 5.318a 100.0

Cumulative % 100.0

a. First 1 canonical discriminant functions were used in the analysis.

The canonical correlation measures the association between the Discriminant scores and the groups. Values close to 1 indicate a strong correlation between the Discriminant scores and the groups. Here the value is 0.917. So the correlation is very strong.

Wilks Lambda-

Wilks' Lambda Wilks' Lambda .158

Test of Function(s) 1

Chi-square 104.151

df 3

Sig. .000

Wilks Lambda is the ratio of within-group to total variance. The value of Wilks lambda (0.158) is small. The value of Wilks lambda ranges between 0 and 1 with a lower value indicating better discriminating power of the model. So, the value 0.158 indicates that our model has a very good discriminating power.

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We have three independent variables namelyPerformance of the cream (BPISTC) [In terms of proclaimed benefits] Price of the cream (BPISTC) Variants of the pack available/desired (BPISTC)

Standardized Canonical Discriminant Function Coefficients Function 1 1.004 1.489 -1.109

PRFRMNCE PRICE VARIANTS

Structure Matrix Function 1 .879 .206 .171

PRFRMNCE PRICE VARIANTS

Pooled within-groups correlations between discriminating variables and standardized canonical discriminant functions Variables ordered by absolute size of correlation within function.

From the table of Standardized Canonical Discriminant Function Coefficients we get that Performance of the cream (BPISTC) has the highest coefficient (0.879). The absolute values of these coefficients indicate their relative importance.

So, among the three independent variables Performance of the cream (BPISTC) is the best predictor.

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Classification of buying behaviour of existing and prospective customers determining Purchasers and Non-Purchasers can be judged from the Functions at Group Centroids Table.

Functions at Group Centroids Function 1 2.267 -2.267

GROUP 1 2

Unstandardized canonical discriminant functions evaluated at group means

In this table the means of group 1 (Purchasers) and group 2 (Non-Purchasers) are plotted on a scale ranging from 2.267 to + 2.267. If the Discriminant score of a customer falls to the left of the midpoint zero we can classify him/her likely to be a Purchaser and the one on the right likely to be a Non-Purchaser.

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Discriminant FunctionIt is an effective way to analyse which variables discriminate between members of two groups and to build an index that separates the two groups on the basis of their values on the measured characteristics. Discriminant analysis finds the set of weights that spreads the index values for the two groups as far apart as possible.
Canonical Discriminant Function Coe fficients Function 1 .795 .155 -.117 -6.127

PRFRMNCE PRICE VARIANTS (Constant)

Unstandardized coefficients

From the analysis the Unstandardized or raw Discriminant function is found out to be:

D = 6.127+ 0.795 X1 + 0.155 X2 0.117 X3

Where, D= whether the customer is PURCHASER or NON-PURCHASER X1= Performance of the cream X2= Price of the cream X3= Variants of the pack available/desired

If we have the absolute values of performance of cream (rating on a scale of 1-10), price of the cream (in Rs.) and variants of the pack available/desired (in ml) respectively, then the above Discriminant function gives us the score that helps the company to classify the customer as a Purchaser or Non-Purchaser, thus predicting the success of the nationwide launch.

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a Classification Results

Original

Count %

GROUP 1 2 1 2

Predicted Group Membership 1 2 30 0 0 30 100.0 .0 .0 100.0

Total 30 30 100.0 100.0

a. 100.0% of original grouped cases correctly classified.

From the above table we can say that 100 % of original grouped cases were correctly classified.

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RECOMMENDATIONS

For the purpose of this report, it was found that the questionnaire, interview questions, offtake sale analysis and Business Research Method Application (Discriminant Analysis) were sufficient to evaluate all the parameters of launching a new skin care product and to keep a track of all the promotional and marketing activities to make it a successful launch. All major and minor deficiencies should be taken care of after this launch so that it can be launched later in the entire nation with huge success. . In addition to this, there are several recommendations for the organization:-

Introduce the advertisement process to increase awareness of such an innovative product Change the packaging as pack looks similar to Boro Plus Antiseptic Cream Introduce variants of the product in pack sizes of 20ml and 60ml Distributing free samples among customers to increase the Sales at a latter stage Continue with similar activities in stores such as in shop promotion, distribution of free samples among customers etc during nation-wide launch

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APPENDIX
Appendix 1:Questionnaire:-

BoroPlus Intensive Skin Therapy Cream Questionnaire

Name: Age: Sex: Contact No:

1. Do you feel roughness, dryness, & darkness in body parts like hands, knees, heels & elbows? Yes ( ) No ( ) 2. If yes, do you use any product? If yes which product?

3. Do you think there is a need for a specific/specialist product which takes care of these body parts? Yes ( ) No ( ) 4. Do you like and understand the concept? Yes ( ) No ( )

5. If No, what changes you would suggest?

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____________________________________________________ 6. Do you think this product will be used in winter or throughout the year? Winter ( ) All Year Round ( )

Date:

Emami Ltd. 687 Anandapur, E. M. Bypass, Kolkata 700107 customercare@emamigroup.com 033-66136264

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Appendix 2:Customer Response Questions for Feedback:-

BoroPlus Intensive Skin Therapy Cream

No. Of Customers-166 No. of customers who gave proper response-101 Usage Time-4 to 10 weeks Customers were asked to respond on the following 5 parameters: Concept Understanding Q. Did you like the concept of this new cream? (Focus on neglected parts, benefits etc.) Satisfaction Level Q. How many times did you use the cream a day? Did it have any effect on your skin after continuous usage? Did you notice any difference? Rebuy (Yes/Maybe/No) Q. Would you buy this cream again? If no, why? E.g. do you find any difference between BPISTC and any other product which you used to use? Problems faced(if any) Q. Did it suit your skin type? Have you had any side effects? Would you like to point out any product deficiency? Suggestions for improvement Q. Do you have any suggestions to make this skin care product better? Overall rating is on a scale of 1 to 10 (10 being very satisfied and 1 being satisfied; not applicable for unsatisfied customers)

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Appendix 3:Business Research Method:Discriminant Analysis

Management Problem: Emami Ltd. wants to predict the success of the future nation-wide launch of its new product BPISTC (BORO PLUS INTENSIVE SKIN THERAPY CREAM) based on the behavioural pattern of consumers who are Purchasers and Non Purchasers respectively.

Research Problem: The company wants to screen the responsiveness of prospective and existing customers towards BPISTC and find out the following i. ii. The percentage of customers that it is able to classify correctly. Which variable (Price, Variants of Pack Available/Desired, and Performance) is relatively better in discriminating between prospective and existing consumers iii. Classification of customers into one of the two groups namely Purchasers and NonPurchasers

Research Methodology: To classify the customers into two groups we should do a Two Group Discriminant Analysis. Codes for customers: 1 Purchasers 2 Non-Purchasers

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Variables & Scales: The variables found out are given below along with the corresponding scales of measurement 1. Price Ratio Scale (Absolute values in Rs.) 2. Performance Ratio Scale (Absolute values). 3. Variants of Pack Available/Desired Ratio Scale (Absolute values in ml). 4. Consumers/Customers Nominal Scale (1 = Purchasers, 2 = Non- Purchasers).

Statistical Tools Used: Application Method- Two Group Discriminant Analyses. Analysis is done using SPSS (Statistical Package for Social Sciences) 11.0 software package.

Data Source: Data is collected by calling up customers/users from a valid database collected during In-Shop promotion activity. Questions asked to Purchasers and Non-Purchasers Q1. On a scale of 1 to 10 (1 being the lowest and 10 highest) how much will you rate this cream in terms of performance on the proclaimed benefits? 1-4 unsatisfactory 5 Neutral 6-10 Satisfactory Q2. Of the following available/desired variants of pack sizes which one would you like to purchase? 20 ml for Rs.25 40 ml for Rs.40 40 ml for Rs.45 (currently available) 60 ml for Rs.70

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Appendix 4:-

Analysis of BPISTC Offtake Sale Comparison in Medical Stores/Chemists (After In Shop Promotion)
Out of total 100 stores covered for In Shop promotion 34 were medical outlets. However, out of total 81 stores which reported Offtake Sale after the In Shop promotion only 26 were medical stores and rest 55 were Non Medical stores. Below is the comparative sales figures and average number of pieces sold after In Shop promotion activity

Non-Medical Stores Total Outlets Total Pieces Sold Average Pieces Sold per Outlet 55 198 3.6

Medical Stores/Chemists 26 101 3.9

Total 81 299 3.7

As seen in the table the average sale per outlet in medical outlets is marginally higher at 3.9 than the average sale per outlet at 3.6 in Non medical stores One potential reason might be that since BPISTC is a speciality product hence chemists mightve been better able to explain the benefits to the potential customers

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Appendix 5:A Mapping of Indirect Competition by Other Brands

Nivea Krack Vaseline Neutrogena

BPAC
Misc. Prdcts

Figure 1

Miscellaneous Products

Lakme
Dove Ayur Olay Other Brands

Figure 2

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Figure 1:It is clearly evident from the chart that KRACK and NEUTROGENA are the preferred products of consumers when it comes to skin problems such as dryness and roughness. Also the product used under the VASELINE brand is Vaseline Petroleum Jelly as it is the perception of the consumers that by using this product the skin would always be oily and not dry. Other close competitors of this cream are NIVEA and BOROLINE. Nivea as it was found out from the survey was mostly used by men. So, as far as indirect competition with brands is considered the major players are NIVEA, KRACK, NEUTROGENA and VASELINE.

Figure 2:-

This chart basically maps the brands under the miscellaneous products used by the consumers. Leading the pack is LAKME Body Lotion, closely followed by Dove products manufactured by ITC Limited. There is a popularity of brands such as Ayur and Olay among the high end users. They are slowly catching up pace in the skin care treatment category. Also home made remedies such as oil, ghee and herbal pastes are regularly used to treat such skin problems. Boro Plus Intensive Skin Therapy cream, although is way far ahead than these brands as it provides a total solution to all skin problems in a single pack. But it has to closely monitor the progress of its competitors as well to stay ahead.

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Appendix 6:-

An analysis on the Consumer Perspective of the Brand Boro Plus

This report is an analysis of the current perception of the Brand Boro Plus and deals with Understanding the Current Brand Identity of Boro Plus. It involves a comparison of the Current Brand Identity with the Proposed Brand Identity of Boro Plus and suggesting measures to bridge the gap between them.

THE KAPFERERS BRAND IDENTITY MODEL

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Findings from the Survey and Defining Brand Boro Plus as per Kapferers Dimensions: The key aspects of the Kapferer Brand Identity Model are: Physique Self Image Reflection and most importantly The Core Essence From the research, the perceptions of the users of Boro Plus are discussed below: Core Essence: The core essence of a brand refers to an innate quality of the brand that offers coherence and consistency to a brand. The users of Boro Plus feel that the brand is one which takes care of them and acts as a friend who protects them from the surroundings. Its antiseptic features are most striking to the users making antiseptic care and protection as the brands core essence. Physique (As Defined by Kapferer): The physique of the brand refers to the salient tangible features of the brand that form a part of its physical appearance. The users of Boro Plus feel that the product has a unique fragrance and a very handy tube. The purple colour has been highlighted in a consistent manner and forms a distinct impression in the minds of the users and the packaging makes them (the users) believe that it has active Natural & Herbal ingredients as well. When asked about the personality of Boro Plus, the consumer responses were as follows: As an individual, Boro Plus is seen as a woman in her 30s whos a married Sr. Executive with kids. She is an emotional upper middle class lady whose relationship with the users is that of a Confidant, a caring and protective friend and is aspiring in life. She is a beautiful looking woman who has a relaxed attitude towards life. The users also feel that she is traditional and religious and has deeply rooted family values and is very dependable. Therefore, it can be said that she is a beautiful upper middle class woman who aspires to become someone in life.

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Users Self Image (As Defined by Kapferer): Self Image is what a user feels about him/her self on using the brand. The users of Boro Plus feel comfortable and reliable about themselves and they feel satisfied with the quality, on using the product. The users also see themselves as Value for Money Seekers which is achieved through the products economical price. Therefore, the users feel that they are assured of skin health as they are aware of what they are using. Users Reflection (As Defined by Kapferer): It refers to what the users wish to be seen as on using the brand. The users of Boro Plus wish to be seen as individuals who are Smart and well informed as they are aware of their surroundings and know how to take care of their skin.

Insights and Suggestions By Analysis the following key observations were made about consumer perception through different age groups and it is felt that consumer perception of the brand changes, with a change in age group: It was observed that users of the age group 15-25 feel that Boro Plus though is Active and Hard-working but is not a Dependable Brand and is therefore frivolous. Thus, it is felt that the further communication strategy should be designed in a way that it changes the perception of the consumers of this age group. It was observed that the users, of the age segment 15-35, feel that the culture of the Boro Plus is that of a Brand which has values of a Satisfied Middle Class against the proposed culture of the Brand with Emerging Middle Class values. Therefore, this age segment should be focussed on while designing any further strategy. Another key finding was that the consumers of the ages, 26 and above feel that the brand has a very relaxed and easy going attitude and does not believe in working hard. Therefore, the brand should emphasise on this aspect and change its image towards a more relaxed and easy going brand by way of extensions into categories and range of products that satisfy this aspect of consumer perception.

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It was also observed that the consumers of the age segment, 46 and above feel that the users of Boro Plus are not well informed and therefore are not aware of their surroundings and products that can help take care of their skin. Therefore, an effort is to be made to reach out to this age segment and create awareness. On An overall Basis: It was observed that the users of Boro Plus feel that the relationship of the brand with the users is that of a Caring & Protective friend against the proposed relationship of a Friendly Expert and is therefore perceived as a brand that cares for and protects the users but does not give expert solutions to every skin problem. Therefore, it is suggested that the brand extends its image of a Caring & Protective friend taking leads from the consumer perceived relationship. It was observed that consumers across age groups feel that the product, Boro Plus antiseptic cream, is very sticky and high on fragrance and therefore it is recommended that the product be less on stickiness and fragrance.

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Proposed V/s Perceived Identity of Brand Boro Plus

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REFERENCES

Notes of the Boro Plus Brand Team, Emami Ltd. Books for reference: a. Marketing Management: Strategies for Competitive Advantage Subroto Sengupta. b. Marketing Management: Millennium Edition Philip Kotler c. Marketing Research: Sixth Edition- Naresh K. Malhotra d. Tutorial for SPSS: Fourth Edition- Bryan and Rubin

Websites for data: Company Website: For Research & Reference: www.emamigroup.com www.marketingpractice.com www.economictimes.com www.wikipedia.org

www.allaboutbranding.com

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