savlon summer project summary

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“

“AA

_{PROJECT REPORT ON IDENTIFYING AND ANALYZING}

THE FACTORS INFLUENCING RETAIL CHEMIST OUTLET

FOR SAVLON HAND

WASH”WASH”

Under the guidance of

Prof. Nishtha Asrani

N.R. Institute of Business Management (NRIBM-PDGM) N.R. Institute of Business Management (NRIBM-PDGM)

Batch 2016-18 Batch 2016-18

Submitted by:

Aziz T

Aziz Tuta

uta

P-1656

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Flow of Presentation

•

Introduction of industry

•

Introduction of company

•

Introduction of topic

•

Literature review

•

Research methodology

•

Data analysis and interpretation

•

Key findings

•

Recommendations and suggestions

•

Conclusion

•

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Introduction of industry

•

Fast Moving Consumer Goods are inexpensive products

that require little shopping

that require little shopping efforts.

efforts. These are non-durable

These are non-durable

products which are sold

products which are sold in packaged forms. These

in packaged forms. These

products are purchased by the end-consumer in small

quantities and frequently.

•

Market Segments:

o

Personal care

o

Household care

o

(4)

Introduction of industry (Cont.)

Political: Political:

o

oInfrastructure issuesInfrastructure issues

o

oRegulatory constraintsRegulatory constraints

o

oPolicy frameworkPolicy framework

Economical: Economical: o oGDP growthGDP growth o oInflationInflation o

oConsumer IncomeConsumer Income

o

oPrivate consumptionPrivate consumption

Social Social

o

oChange in consumer profileChange in consumer profile o

oChange in lifestyleChange in lifestyle o

oRural focusRural focus

Technological Technological

o

o EffecEffectivetive use ouse of technf technologologyy

seen in only leading seen in only leading companies

companies

o

o E-commerce will boostE-commerce will boost

FMCG sales FMCG sales

PEST Analysis

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Introduction of company

F

Foouunnddeedd 224 4 AuAugguusst t 11991100 (as Imperial

(as Imperial TTobacco Companyobacco Company of India)

of India) H

Heeaaddqquuaarrtteerrss KKoollkkaattaa, W, Weesst t BBeennggaall, , IInnddiiaa K

Keeyy ppeeooppllee SSaannjjeeeev v PPuurrii, , ((CChhaaiirrmmaann)),,

Saurabh Mishra, (Chief Executive Saurabh Mishra, (Chief Executive Officer)

Officer) P

Prroodduuccttss CCoonnssuummeer r ggooooddss, , TToobbaaccccoo,,

Hotels, Agribusiness, Paperboards Hotels, Agribusiness, Paperboards & specialty papers, Packaging, & specialty papers, Packaging, Information technology

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Introduction of Company (Cont.)

SWOT Analysis

Strengths Strengths

•

• ITC has a strong and experiencedITC has a strong and experienced

management management

•

• Strong brand presence, excellentStrong brand presence, excellent

products advertising products advertising

•

• Diversified product and Diversified product and servicesservices

portfolio. portfolio.

•

• Over 6500 E-Choupal CSROver 6500 E-Choupal CSR

activities and sustainability activities and sustainability initiatives

initiatives

Weakness Weakness

•

• DependDependencyency on tobacon tobacco revco revenue.enue. •

• Hotel industry has not been able toHotel industry has not been able to

create a huge market share create a huge market share

Opportunities Opportunities

•

• Tap rural markets and increase.Tap rural markets and increase. •

• Mergers and acquisitions toMergers and acquisitions to

strengthen the brand strengthen the brand

•

• Increasing purchasing power ofIncreasing purchasing power of

people people

•

• More publicity of hotel chainsMore publicity of hotel chains

Threats Threats

•

• Govt. regulationsGovt. regulations •

• Intense and increasing competition inIntense and increasing competition in

FMCG FMCG

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Literature Review

C

Coossmmeettiiccs s ccoonncceepptt IIn n EEuurrooppeeaan n lleeggiissllaattiioonn, , a a ccoossmmeettiic c pprroodduucctt44 _is_is

any substance or preparation intended to be any substance or preparation intended to be placed in contact with the various external part placed in contact with the various external part s ofs of the human body (epidermis, hair system, nails, the human body (epidermis, hair system, nails, lips and external genital organs) or with the lips and external genital organs) or with the teethteeth and the mucous membranes of the oral cavity and the mucous membranes of the oral cavity with a view exclusively or mainly to cleaning with a view exclusively or mainly to cleaning

them, perfuming them, changing their appearance them, perfuming them, changing their appearance and/or correcting body odors and/or protecting and/or correcting body odors and/or protecting them or keeping them in good condition.

them or keeping them in good condition. IImmppaacct t oof f pprroommoottiioonnss VVeecccchhiioo, , DDeell, , DDeevvoon n eett..aall.. (2006)(2006)55 _{report the}_{report the}

results of the study, which examined the effect of results of the study, which examined the effect of sales promotion on brand preference through sales promotion on brand preference through Meta analysis. Results of 51 studies had been Meta analysis. Results of 51 studies had been integrated. As per the study

integrated. As per the study sales promotions dosales promotions do not affect post promotion brand preferences in not affect post promotion brand preferences in general. But depending upon characteristics of general. But depending upon characteristics of sales promotion and the promoted product, sales promotion and the promoted product, promotion can either increase or decrease promotion can either increase or decrease preference for a brand.

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Literature Review (Cont.)

C

Coonnssuummeerr ppeerrcceeppttiioonn VVyyaass, , HH. . PPrreeeetta a ((22000055))3030_{attempted to study}_{attempted to study}

consumer preferences with respect to sales consumer preferences with respect to sales promotion in FMCG category

promotion in FMCG category. It . It was found thatwas found that sales promotion offers which is

sales promotion offers which is unique, whichunique, which offers immediate incentive preferably of price-cut offers immediate incentive preferably of price-cut nature is likely to appeal to

nature is likely to appeal to all consumerall consumer segments.

segments. S

Saallees ps peeoopplle e pprroommoottiioonn WWiilllliiaamm, , HH. . MMuurrpphhy y aannd d RRaavviipprreeeett, , SS. . SSoohhii (1995)

(1995)9898_{examined the factors which are}_{examined the factors which are}

associated with salespeople's feelings towards a associated with salespeople's feelings towards a sales contest. They collected data

sales contest. They collected data through verbalthrough verbal protocols and surveys from salespeople

protocols and surveys from salespeople belonging to a division of a Fortune 100 belonging to a division of a Fortune 100 firm.firm. Results indicate that salespeople's self-esteem, Results indicate that salespeople's self-esteem, commitment level, and career stage play a role in commitment level, and career stage play a role in influencing feelings towards the sales contest. influencing feelings towards the sales contest.

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Research Methodology

•

Objectives

•

Studying the current market scenario and identifying better ways to

increase the market share of Savlon hand wash.

•

Identifying the reasons for outlets not keeping Savlon hand wash

Identifying the reasons for outlets not keeping Savlon hand wash..

•

T

To know about

o know about the preference of Savlon

the preference of Savlon hand wash in

hand wash in comparison

comparison

with other competitive brands.

•

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Research Methodology (Cont.)

•

Research type: Descriptive research

•

Data collection sources

•

• Primary: QuestionnairePrimary: Questionnaire

•

• Secondary: Articles, journals, internetSecondary: Articles, journals, internet

•

Sampling Plan

•

• Sample size: 279 respondentsSample size: 279 respondents

•

• Sampling method: Convenience samplingSampling method: Convenience sampling

•

• Geographical Scope: The area selected for framing the sample isGeographical Scope: The area selected for framing the sample is

Ahmedabad city Ahmedabad city..

•

Scope of study: During the research, data was collected

Scope of study: During the research, data was collected from 279

from 279

outlets. The data was

outlets. The data was collected through structured questionnaire. The

collected through structured questionnaire. The

data was

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Data

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Hand Wash Handler

88% 88% 12%

12%

Hand Wash Handler

Y

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Savlon HW availability in only Hand wash

handling outlets

Yes Yes 72% 72% No No 28% 28%

Savlon Hand Wash Available Savlon Hand Wash Available

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A

v

a

i

l

a

b

i

l

i

t

y

S

K

U

w

i

s

e

0 0 50 50 100 100 150 150 200 200 250 250 1 100mml l SSaacchheett 118855mml l PPoouucchh 222200mml l PPuummpp 550000mml l PPoouucchh 880000mml l PPoouucchh

Availability SKU wise Availability SKU wise

Availability SKU wise Yes Availability SKU wise Yes Availability SKU wise No Availability SKU wise No

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Unavailability Reasons

0 0 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 100 100 1 100mml l SSaacchheett 118855mml l PPoouucchh 222200mml l PPuummpp 550000mml l PPoouucchh 880000mml l PPoouucchh Unavailability Reason Unavailability Reason

Unavailability Reason Problem with servicing Unavailability Reason Problem with servicing Unavailability Reason No knowledge of SKU Unavailability Reason No knowledge of SKU Unavailability Reason No Demand

Unavailability Reason No Demand Unavailability Reason Already ordered Unavailability Reason Already ordered Unavailability Reason NCH

Unavailability Reason NCH

Unavailability Reason Not satisfied with Unavailability Reason Not satisfied with schemes

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Competitors Availability

245 245 193 193 52 52 25 25 0 0 50 50 100 100 150 150 200 200 250 250 300 300 D

Deettttooll LLiiffeebbuuooyy SaSannttoooorr PPaattaannjjaallii

Competitors

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Rate Competition

0 0 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 100 100 H

Hiigghhlly y CCoommppeettiittiivvee CoCommppeettiittiivvee AAvvg g CCoommppeettiittiioonn LLoow w CCoommppeettiittiioonn NNo o ccoommppeettiittiioonn

Rate Competition Rate Competition

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Impact of Competition on Sales

81% 81% 17% 17% 2% 2%

Impact of Competition on Sales Impact of Competition on Sales

Y

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Brand Image

0 0 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 S

Sttrroonngglly y AAggrreeee AAggrreeee NNeeuuttrraall DDiissaaggrreeee SSttrroonngglly y DDiissaaggrreeee

Brand Image Brand Image

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Rate Prices

0 0 20 20 40 40 60 60 80 80 100 100 120 120 140 140 E

Exxcceelllleenntt GGoooodd AAvvgg PPoooorr VVeerryyPPoooorr

Rate Prices Rate Prices

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A

w

a

r

e

n

e

s

P

r

o

m

o

t

i

o

n

80% 80% 20% 20% Awareness Promotion Awareness Promotion Y Yeess NNoo

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Rate Promotions

0 0 10 10 20 20 30 30 40 40 50 50 60 60 70 70 80 80 90 90 100 100 E

Rate Promotions Rate Promotions

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Preferred Medium of Promotion

0 0 50 50 100 100 150 150 200 200 250 250 300 300 V

Viissuuaall AAuuddiioo PPrriinntt SpSpeecciiaal l CCaammppaaiiggnn

Preferred Medium of Promotion Preferred Medium of Promotion

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A

w

a

r

e

n

e

s

S

c

h

e

m

e

s

75% 75% 25% 25% Awareness Scheme Awareness Scheme Y Yeess NNoo

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Rate Schemes

0 0 20 20 40 40 60 60 80 80 100 100 120 120 140 140 E

Rate Schemes Rate Schemes

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Hypotheses

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Promotional awareness & availability

Hypothesis: Hypothesis: H

H₀₀: : There is There is no significant association between no significant association between Promotional awareness andPromotional awareness and availability of Savlon

availability of Savlon Hand WashHand Wash H

H₁₁: There : There is significant associais significant association between tion between Promotional awPromotional awareness andareness and availability of Savlon

availability of Savlon Hand WashHand Wash

Chi-Square Tests Chi-Square Tests V Vaalluuee ddff AAssyymmpp. . SSiigg. . ((2 2--sided) sided) Exact Sig. Exact Sig. (2-sided) sided) Exact Sig. Exact Sig. (1-sided) sided) P

Peeaarrssoon n CChhii--SSqquuaarree 9911..662211aa ₁₁ _..0₀₀₀₀₀

Continuity Correction

Continuity Correctionbb ₈₈₈_8..6₆₆₆₁₁ ₁₁ _..0₀₀₀₀₀

L

Liikkeelliihhooood d RRaattiioo 9696..003322 11 ..000000 F Fiisshheerr''ssEExxaaccttTTeesstt ..000000 ..000000 Linear-by-Linear Linear-by-Linear Association Association 9911..229933 11 ..000000 N N oof f VVaalliid d CaCasseess 227799

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 20.30. a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 20.30. b. Computed only for a 2x2 table

b. Computed only for a 2x2 table

Interpretation: Interpretation:

As the significance level in As the significance level in chi-square test is less than chi-square test is less than 0.05, therefore we will

0.05, therefore we will reject the null hypothesis reject the null hypothesis and accept the alternative and accept the alternative hypothesis which says that hypothesis which says that there is significant there is significant relationship between relationship between awareness of promotional awareness of promotional activities and

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Scheme awareness and availability

H₀₀: There is no significant relationship between scheme awareness and: There is no significant relationship between scheme awareness and availability of Savlon

availability of Savlon Hand WashHand Wash H

H₁₁: There is significant relationship between scheme awareness and availability: There is significant relationship between scheme awareness and availability of Savlon Hand

of Savlon Hand WashWash

Peeaarrssoon Cn Chhii--SSqquuaarree 121222..772222aa ₁₁ _..0₀₀₀₀₀

Continu

Continuityity CorrectCorrectionionbb ₁₁₁₁₉_9..5₅₅₅₇₇ ₁₁ _..0₀₀₀₀₀

L

Liikkeelliihhoooodd RRaattiioo 121299..999988 11 ..000000 F

Fiisshheerr''ss EExxaacctt TTeesstt ..000000 ..000000 L

Liinneeaarr--bbyy--LLiinneeaarr AAssssoocciiaattiioonn 112222..228822 11 ..000000 N

N ooff VVaalliidd CCaasseess 227799 a.

a. 00 celcellsls (0.(0.0%)0%) havhavee exexpecpectetedd coucountnt leslesss ththanan 5.5. ThThee mimininimummum exexpecpectedted coucountnt isis 25.25.47.47. b.

b. CoCompmpututeded ononlyly foforr aa 2x2x22 tatablblee

As the significance level in As the significance level in chi-square test is less than chi-square test is less than 0.05, therefore we will

0.05, therefore we will reject the null hypothesis reject the null hypothesis and accept the alternative and accept the alternative hypothesis which says that hypothesis which says that there is significant

there is significant relationship between relationship between

awareness of schemes and awareness of schemes and availability.

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Owner suggesting visual advertisement

and availability.

H₀₀: There is no significant relationship between owner suggesting visual: There is no significant relationship between owner suggesting visual advertisement and availability.

advertisement and availability. H

H₁₁: There is significant relationship between owner suggesting visual: There is significant relationship between owner suggesting visual advertisement and availability.

advertisement and availability.

Continu

Continuityity CorrectCorrectionionbb ₆₆₃_3..1₁₁₁₁₁ ₁₁ _..0₀₀₀₀₀

L

As the significance level is As the significance level is

below 0.05, therefore we below 0.05, therefore we will reject the null

will reject the null

hypothesis and accept the hypothesis and accept the alternate hypothesis. alternate hypothesis. Therefore there is Therefore there is significant relationship significant relationship

between owner suggesting between owner suggesting visual medium of visual medium of advertisement and advertisement and availability. availability.

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Owner selecting audio medium of

advertisement and availability.

•

• Hypothesis:Hypothesis:

•

• HH_o_o: There is no significant relationship between owner selecting Audio: There is no significant relationship between owner selecting Audio

medium of advertisement and availability. medium of advertisement and availability.

•

• HH

1

1: There is significant relationship between owner selecting Audio medium of: There is significant relationship between owner selecting Audio medium of

advertisement and availability. advertisement and availability.

As the significance lev As the significance level isel is

hypothesis and accept the hypothesis and accept the alternate hypothesis. alternate hypothesis. Therefore there is Therefore there is significant relationship significant relationship between owner suggesting between owner suggesting audio medium of audio medium of advertisement and advertisement and availability. availability. Chi-Square Tests Chi-Square Tests V Vaalluuee ddff AAssyymmpp. . SSiigg. . ((2 2--sided) sided) Exact Sig. Exact Sig. (2-sided) sided) Exact Sig. Exact Sig. (1-sided) sided) P

Continu

Continuityity CorrectCorrectionionbb ₁₁₉_9..2₂₆₆₀₀ ₁₁ _..0₀₀₀₀₀

L

(31)

Owner selecting print medium of

advertisement and availability.

•

• HH_o_o: There is no significant relationship between owner selecting print medium: There is no significant relationship between owner selecting print medium

of advertisement and availability. of advertisement and availability.

•

• HH

1

1: There is significant relationship between owner selecting print medium of: There is significant relationship between owner selecting print medium of

advertisement and availability. advertisement and availability.

Contin

Continuityuity CorrectCorrectionionbb ₁₁₆_6..6₆₀₀₉₉ ₁₁ _..0₀₀₀₀₀

L

a. 00 celcellsls (0(0.0%.0%)) havhavee exexpecpectetedd coucountnt lelessss ththanan 5.5. ThThee mimininimummum exexpecpectetedd coucountnt isis 31.31.38.38. b.

As the significance lev As the significance level isel is

hypothesis and accept the hypothesis and accept the alternate hypothesis. alternate hypothesis. Therefore there is Therefore there is significant relationship significant relationship between owner suggesting between owner suggesting print medium of print medium of advertisement and advertisement and availability. availability.

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Owner selecting special campaigns

medium o

medium of advertisement

f advertisement and

and availability

availability

.

•

• HH_o_o: There is no significant relationship between owner selecting special: There is no significant relationship between owner selecting special

campaigns medium of

campaigns medium of advertisement and availabilityadvertisement and availability..

•

• HH

1

1: There is significant relationship between owner selecting special: There is significant relationship between owner selecting special

campaigns medium of

campaigns medium of advertisement and availabilityadvertisement and availability..

Interpretation: Interpretation: As the significance

As the significance level islevel is below 0.05, therefore we below 0.05, therefore we will reject the null

hypothesis and accept the hypothesis and accept the alternate hypothesis. alternate hypothesis. Therefore there is Therefore there is significant relationship significant relationship between owner suggesting between owner suggesting special campaigns medium special campaigns medium of advertisement and of advertisement and availability. availability. Chi-Square Tests Chi-Square Tests V Vaalluuee ddff AAssyymmpp. . SSiigg. . ((2 2--sided) sided) Exact Sig. Exact Sig. (2-sided) sided) Exact Sig. Exact Sig. (1-sided) sided) P

Peeaarrssoon Cn Chhii--SSqquuaarree 5..1517799aa ₁₁ _..0₀₂₂₃₃

Contin

Continuityuity CorrectCorrectionionbb ₄_4..6₆₁₁₈₈ ₁₁ _..0₀₃₃₂₂

L

a. 00 celcellsls (0(0.0%.0%)) havhavee exexpecpectetedd coucountnt lelessss ththanan 5.5. ThThee mimininimummum exexpecpectetedd coucountnt isis 40.40.98.98. b.

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Key Findings

•

The most available SKU in

The most available SKU in Savlon Hand Wash is 10 ml Sachet.

Savlon Hand Wash is 10 ml Sachet.

According to the

According to the study

study, 166 outlets

, 166 outlets out of 246 outl

out of 246 outlets are keeping

ets are keeping the

the

10 ml sachet in their outlet, which is 67% approx.

•

The most general reason for unavailability of Savlon

The most general reason for unavailability of Savlon Hand Wash is

Hand Wash is

lack of demand from the consumer end.

•

According to the

According to the study

study, the market

, the market leader in Hand W

leader in Hand Wash segment

ash segment is

is

Dettol with 48% availability, followed by Lifebuoy with 37% availability.

•

The competition between the brands in Hand Wash segment is high.

•

According to the

According to the study

study, there is a

, there is a significant relationship

significant relationship between the

between the

awareness of promotion and

awareness of promotion and availability

availability, which

, which means that the

means that the

retailers keep Hand Wash on the basis of their knowledge about

retailers keep Hand Wash on the basis of their knowledge about the

the

promotional activities.

•

According to the

According to the study

study, there is a

, there is a significant relationship

significant relationship between

between

awareness of schemes provided to the chemist retailer and the

availability of the Hand Wash, which means that the retailers keep the

Hand Wash after knowing the schemes.

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Key Findings (Cont.)

•

Most of the retailers think that the

Most of the retailers think that the best way of advisement is

best way of advisement is

visual advertisement.

•

Not all the chemist outlets are aware about the schemes

provided by the

provided by the company which leads to

company which leads to the unavailability

the unavailability..

•

The retailers think that the schemes provided by the company

is

is average in

average in comparison

comparison of other

of other competitive b

competitive brands.

rands.

•

The perception of the retailers about the prices of Savlon hand

Wash is positive.

•

Some of the retailers purchase the product from

Some of the retailers purchase the product from modern trade

modern trade

when heavy discounts are being offered

when heavy discounts are being offered by modern trade.

by modern trade.

•

The perception of the retailers about the promotional activities

is negative.

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Recommendations

•

The Hand Wash can be placed at the outlets, taking

forward the brand

forward the brand name of Savlon Antise

name of Savlon Antiseptic liquid.

ptic liquid.

•

Company can start providing SMS alert to the

Company can start providing SMS alert to the retailers to

retailers to

provide the information regarding the new

provide the information regarding the new schemes.

schemes.

•

Attractive di

Attractive displays of Han

splays of Hand W

d Wash shoul

ash should be provided to

d be provided to

the outlets in order

the outlets in order to increase the consumer awareness

to increase the consumer awareness

about the Savlon Hand Wash.

•

Company should focus on the special campaigns in

different areas in order to promote the

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Conclusion

•

In the present competitive world the success of the

company depends on satisfying the customers as well as

retailers.

•

The retailers play a prominent role in increasing the sales

of the FMCG products.

•

For continuous growth the company has to

For continuous growth the company has to pay more

pay more

attention on billing process, promotion and availability of

brand through constant service and good margins.

(37)

Bibliography

•

V

Vecchio, D. D.

ecchio, D. D. (2006). The Effect of Sales Promotion on Post

(2006). The Effect of Sales Promotion on

Post--Promotion Brand

Promotion Brand Preference: A Meta An

Preference: A Meta Analysis.

alysis. Journal of

Journal of

Retailing

, 203-213.

•

Vy

Vyas, H. Preeta

as, H. Preeta (2005), "Measuring Consumer Preference for

(2005), "Measuring Consumer Preference for

Sales Promotion Schemes Through Conjoint Design

Sales Promotion Schemes Through Conjoint Design in FMCG

in FMCG

Sector", Working Paper, NO. 2005-09-08,

Sector", Working Paper, NO. 2005-09-08, IIM, Ahmedaba

IIM, Ahmedabad.

d.

•

Williarn, H. Murphy and Ravipreet, S. Sohi (1995),

"Salespersons' Perceptions About Sales

"Salespersons' Perceptions About Sales Contests: T

Contests: Towards a

owards a

Greater Understanding", European Journal of Marketing,

V

Volume

olume: 29, Nu

: 29, Number: 13

mber: 13, pp. 42 -

, pp. 42 - 66.

66.

•

Wikipedia

Wikipedia. (2017). Retrieved from https://en.wikipedia.org/.

. (2017). Retrieved from https://en.wikipedia.org/.

•

ITC Limited

. (n.d.). Retrieved from ITC Portal:

http://www.itc

portal.com/about-itc/profile/history-and-

portal.com/about-itc/profile/history-and-evolution.aspx

evolution.aspx

•

IBEF India Brand Foundation

. (2017). Retrieved from

https://www

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