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A brief study and analysis of the marketing strategy of ITC and HUL with reference to Soaps

BY

PANKAJ KUMAR GUPTA


A PROJECT REPORT Submitted to BHARATI VIDYAPEETH UNIVERSITY In partial fulfillment of the requirements for the award of the POST GRADUATE DIPOLOMA IN MARKETING MANAGEMENT

Bharati Vidyapeeth University-Amplify DITM MONTH & YEAR ARIL/MAY 2011

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ACKNOWLEDGEMENT

A work is never a work of an individual. I owe a sense of gratitude to the intelligence and cooperation of those people who had been so easy to let me understand what I needed from Time to time for completion of this exclusive project. I am greatly indebted to my Faculty especially Mr.R.B. TANDAN (HOD, Marketing) for his constant guidance, advice and help which enabled me to finish the project report in time and also I my sincere thanks to all the faculty of AMPLIFY MINDWARE-DITM (BHARTI VIDYAPEETH UNIVERSITY) for their generous help in various ways for completion of this project..

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DECLARTION
A brief study and analysis of the marketing strategy of ITC and HUL with reference to Soaps is of my
I hereby declare that the project entitled own and it is only for academic purpose and has not been submitted to any other University or Institution before. I have submitted this dissertation report for the partial fulfilment of POST GRADUATE DIPLOMA IN MARKETING MANAGEMENT [2009 2011] in Amplify Mindware DITM, Pune under BHARATI VIDYAPEETH UNIVERSITY.

__________ Signature

Name: ........................................... Date: ...............................................

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INTERNAL GUIDE CERTIFICATE


This is to certify that Mr. Pankaj Kumar Gupta, a student of POST GRADUATE DIPLOMA IN MARKETING MANAGEMENT from Amplify Mindware DITM, Pune under BHARATI VIDYAPEETH UNIVERSITY successfully completed his Dissertation on A brief study and analysis of the marketing strategy of ITC and HUL with reference to Soaps under my guidance and supervision for the partial fulfilment of his course. I wish him all success.

Mr. R.B TANDAN (HOD Marketing Management.)

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PREFACE
Theoretical knowledge without practical knowledge is of little value. In order to achieve concrete and positive result along with theoretical concept the exposure of real life situations existing in corporate is very much needed. To fulfil this need the management course has a provision for the practical training program. I thank the institute in providing us with such an opportunity so that students can have a real felling of corporate life. My project report is based on- A brief study and analysis of the marketing strategy of ITC and HUL with reference to Soaps. The objective of my study is to know the market strategies of HUL and ITC LTD of their products. In the ensuing pages an attempt has been made to present a comprehensive report concerning the different aspects of Marketing Strategies. I have tried to put my best effort to complete this project work on the basis of skills that I have achieved during the last two years of study in the institute. I have tried to put my best efforts to get the accurate statistical data. However I would appreciate if any mistakes are brought to my by the reader.

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TABLE OF CONTENTS
S.NO.
1 2 3 4
5 6 7 8 9 10 11 12

CONTENTS
INTRODUCTION OBJECTIVE METHODOLOGY THE INDIAN SOAP INDUSTRY AN OVERVIEW OF HUL & ITC LTD ANALYSIS & OBSERVATION SWOT ANALYSIS OF HUL&ITC PRODUCT INFORMANTION MARKET STRATEGIES CONCLUSION & SUGGESTIONS DATA ANALYSIS APPENDIX BIBLIOGRAPHY 8 8 8 9 13 24 35 39 43 55 57 59 63

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CHAPTER 1

INTRODUCTION

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The project undertaken is on A brief study and analysis of the marketing strategy of ITC and HUL with reference to Soaps. It describes the Marketing strategy used by HUL & ITC for the success of both product and company. Goals indicate what a business unit wants to achieve; Strategy is an action plan for getting the goals. Every business must have a design strategy for achieving its goals, consisting of a marketing strategy, a compatible technology strategy and sourcing strategy. Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy should be centred on the key concept that customer satisfaction is the main goal. Unilever is one of the worlds largest and leading multinational companies; Unilever commenced their business activities on a large scale by setting up their first factory in Netherlands, in the year 1872. Operating in Bangladesh for over the last four decades the company is trying to significantly contribute towards the augmentation of the standard of living by bringing world class high quality products at the door step of their customers. The usage of Unilever products by over 90% of the people in Bangladesh stands a testimony to their successful operation. . Their array of products show that they produce household care, fabric cleaning, skin cleansing, skin care, oral care, hair care, personal grooming, and tea based beverage products under worldwide famous brand names Wheel, LUX, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sun silk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel,etc.

OBJECTIVE OF THE STUDY:-

This report is an outcome of an analysis of marketing strategies used by Unilever Ltd & ITC. The main purpose of the report is to find what strategies the company uses to market its world famous soap, LIFEBUOY & VIVEL, in India; the positive and negative aspects of those strategies. The report further analyzes the position of Hindustan Unilever Ltd. in the toiletry industry in comparison to its competitors. The report discusses the process of using market segmentation, target marketing, the product, pricing, promotional and distribution strategies and a competitive analysis.

METHODOLOGY OF THIS REPORT:-

For accessibility and availability of information i have chosen to work on the strategies of Hindustan Unilever Ltd& ITC Ltd As the company operates in the market with a huge number of products in different industries, i have decided to focus on one of their world wide successful brands, LIFEBUOY & VIVEL. Most of the information used in this report is from primary sources. The main source of information was the focus group discussion. In addition information was also collected from websites.

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CHAPTER 2
THE INDIAN SOAP INDUSTRY

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INTRODUCTION:The origins of personal cleanliness date back to prehistoric times. Since water is essential for life, the earliest people lived near water and knew something about its cleansing properties - at least that it rinsed mud off their hands. A soap-like material found in clay cylinders during the excavation of ancient Babylon is evidence that soap making was known as early as 2800 B.C. Inscriptions on the cylinders say that fats were boiled with ashes, which is a method of making soap, but do not refer to the purpose of the "soap." Such materials were later used as hair styling aids. Soap got its name, according to an ancient Roman legend, from Mount Sapo, where animals were sacrificed. Rain washed a mixture of melted animal fat, or tallow, and wood ashes down into the clay soil along the Tiber River. Women found that this clay mixture made their wash cleaner with much less effort. Some of the early instances of commercial manufacturing of soap are: In Britain references began to appear in the literature from about 1000AD, and in 1192 the monk Richard of Devizes referred to the number of soap makers in Bristol and the unpleasant smells which their activities produced. A century later soap making was reported in Coventry. Other early centres of production included York and Hull. In London a 15th century "sopehouse" was reported in Bishops gate, with other sites at Cheapside, where there existed Soper's Lane (later renamed Queen Street), and by the Thames at Blackfriars Andrew pears. In 1789, he commenced production of a transparent soap at a factory in Wells Street, off Oxford Street and became hugely successful.

INDUSTRY ANALYSIS:The toilet soaps market is estimated at 530,000 tpa including small imports. The market is littered over with several, leading national and global brands and a large number of small brands, which have limited markets. The popular and premium brands include Lifebuoy, Lux, Cinthol, Liril, Rexona, and Nirma. Toilet soaps, despite their divergent brands, are not well differentiated by the consumers. It is, therefore, not clear if it is the brand loyalty or experimentation lured by high volume media campaign, which sustain them. A consequence is that the market is fragmented. It is obvious that this must lead to a highly competitive market. Toilet soap, once only an urban phenomenon, has now penetrated practically all areas including remote rural areas. The incremental demand flows from population increase and rise in usage norm impacted as it is by a greater concern for hygiene. Increased sales revenues would also expand from up gradation of quality or per unit value. As the market is constituted now, it can be divided into four price segments: premium, popular, discount and economy soaps. Premium soaps are estimated to have a market volume of about 80,000 tonnes. This translates into a share of about 14 to 15%. Soaps form the largest pie of the FMCG Market with bathing & toilet soaps accounting for around 30% of the soap market, by value. Currently, the soap industry is divided into three segments namely Premium, Popular and Economy/ Sub popular. To fight competition, major players Hindustan Unilever Ltd (HUL), Godrej Consumer Products Ltd (GCPL) and Wipro Consumer Care & Lighting are now drawing up fresh game plans. And the accent is clearly on innovation to gain mind share as well as market share in this overcrowded category.

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Major Players:Hindustan Unilever Ltd.:With over seven brands LUX, LIFEBUOY, HAMAM, REXONA, BREEZE, DOVE and PEARS - has 54.3% share of the overall soap market. HUL is India's largest Fast Moving Consumer Goods Company; its journey began 75 years ago, in 1933, when the company was first incorporated. The company stirring the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages and also one of the country's largest exporters. HUL's brands includes Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr- Annapurna, Kwality Wall's - are household names across the country. They are manufactured in over 40 factories across India. In the Rs7, 000 crores by sales soap market, HULs market share has dropped to 54.3% in March 2008 from 55.9% in March 2006.

Godrej Consumer Products:GCPL, Indias second largest soap maker after Hindustan Unilever Ltd, has nearly 9.2% market share. With 11% market share in value terms, it is the second largest soap maker after Hindustan Unilever. Godrej Consumer Products (GCPL) is a major player in the Indian FMCG market with leadership in personal, hair, household and fabric care segments. The company is one among the largest marketer of toilet soaps in the country with leading brands such as CINTHOL, FAIRGLOW, NIKHAR, & ALLCARE. Fair glow brand, India's first Fairness soap, has created marketing history as one of the most successful innovations. It is also the preferred supplier for contract manufacturing of toilet soaps, some of which are the most well-known brands in the country.

Wipro:In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate segment in India. Wipro also has a profitable presence in niche market segments of infrastructure engineering, and consumer products & lighting. Wipro has made a large acquisition in the Consumer Care business. The presence of Wipro in the toilet soap industry can be seen through their brands such as SANTOOR and CHANDRIKA. With industry leading organic growth rates and the acquisition, Consumer care business has reached a Revenue run rate in excess of $100 million per quarter.

Procter & Gamble India:Procter & Gamble India (PGHHCL) was incorporated in 1964 after Procter & Gamble, US, acquired Richardson Vicks, US. Formerly known as Richardson Hindustan (the Indian subsidiary), it was later named as P&G. It changed its name again in 1998 to Procter & Gamble Hygiene and Health Care in order to reflect the nature and character of the business of the company. During 2004-05 the company has increased its installed capacity of Soaps & Detergents and Toilet Preparations etc by 36500 Tonnes and 263 Tonnes respectively. With this expansion the total installed capacity of Soaps & Detergents and Toilet Preparations etc has increased to 108500 Tonnes and 5875 Tonnes respectively.
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Nirma:Incorporated as a private limited company, Nirma was converted into a deemed public company and then to a public limited one in Nov.'93. Nirma has a leadership presence in Detergents, Soaps and Personal Care Products. To have a greater control on the quality and price of its raw materials, Nirma undertook backward integration into manufacture of Industrial Products like Soda Ash, Linear Alkyl Benzene (LAB), Alfa Olefin Sulphonates (AOS), Fatty Acid, Glycerine and Sulphuric Acid. During 1996-97, Nilnita Chemicals, Nirma Detergents, Nirma Soaps and Detergents, and Shiva Soaps and Detergents were amalgamated with the company. The company created 'Nirma Consumer Care Ltd.' - a wholly owned subsidiary on 22nd Aug.'97, which is the sole licensee of the brand name 'Nirma' within India. Nirma enjoys a share of 6.74% in soaps.

ITC:ITC, the countrys largest cigarette maker, entered the segment last year and has made a strong headway in a short time. According to AC Nielsen, its share has grown to 1.75% in just five months despite the fact that many of its brands such as Superia, Fiama Di Wills and Vivel are currently sold in only six states.

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CHAPTER 3

AN OVERVIEW OF Hul & ITC LTD

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Hindustan Unilever Limited (HUL)


MISSION:To add vitality to life and meet everyday needs for nutrition with brands that help people feel good, look good and get more out of life.

INTRODUCTION:Hindustan Unilever Limited (HUL), formerly Hindustan Lever Limited (it was renamed in late June 2007 as HUL), is India's largest Fast Moving Consumer Goods (FMCG) company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. These products endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs. 13718 crores. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life." HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL shares with its parent company, Unilever, which holds 52.10% of the equity. The rest of the shareholding is distributed among 360,675 individual shareholders and financial institutions. HUL's brands like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic, Pepsodent, Close up, Lakme, Brooke Bond, Kissan, Knorr Annapurna, Kwality Wall's are household names across the country and span many categories -soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. These products are manufactured over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's distribution network comprises of approx. 4,000 redistribution stockiest, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consumers.

HISTORY:Unilever was created in 1930 by the amalgamation of the operations of British soap maker Lever Brothers and Dutch margarine producer Margarine Unie, a merger as palm oil was a major raw material for both margarines and soaps and could be imported more efficiently in larger quantities. In the late 19th century the businesses that would later become Unilever HUL was among the most philanthropic of their time. They set up projects to improve the lot of their workers and created products with a positive social impact, making hygiene and personal care commonplace and improving nutrition through adding vitamins to foods that HUL already daily staples. Today, Unilever still believes that success means acting with 'the highest standards of corporate behaviour towards our employees, consumers and the societies and world in which HUL live'. Over the years HUL've launched or participated in an ever growing range of initiatives to source sustainable supplies of raw materials, protect environments, support local communities and much more. Through this timeline you'll see how our brand portfolio has evolved. At the beginning of the 21st century, our Path to Growth strategy focused us on global high potential brands and our Vitality mission is taking us into a new phase of development. More than ever, our brands are helping people 'feel good, look good and get more out of life' a sentiment close to Lord Lever Hulme's heart over a hundred years ago.
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In 19th century Although Unilever wasn't formed until 1930, the companies that joined forces to create the business HUL know today HUL already HUL established before the start of the 20th century. 1900s Unilever's founding companies produced products made of oils and fats, principally soap and margarine. At the beginning of the 20th century their expansion nearly outstrips the supply of raw materials. 1910s Tough economic conditions and the First World War make trading difficult for everyone, so many businesses form trade associations to protect their shared interests. With businesses expanding fast, companies set up negotiations intending to stop others producing the same types of products. But instead they agree to merge - and so Unilever is created. 1930s Unilever's first decade is no easy ride: it starts with the Great Depression and ends with the Second World War. But while the business rationalizes operations, it also continues to diversify. 1940s Unilever's operations around the world begin to fragment, but the business continues to expand further into the foods market and increase investment in research and development. 1950s Business booms as new technology and the European Economic Community lead to rising standards of living in the HUL, while new markets open up in emerging economies around the globe. 1960s As the world economy expands so does Unilever and it sets about developing new products, entering new markets and running a highly ambitious acquisition programmed. 1970s Hard economic conditions and high inflation make the '70s a tough time for everyone, but things are particularly difficult in the Fast Moving Consumer Goods (FMCG) sector as the big retailers start to flex their muscles. 1980s Unilever is now one of the world's biggest companies, but takes the decision to focus its portfolio, and rationalize its businesses to focus on core products and brands. 1990s The business expands into Central and Eastern Europe and further sharpens its focus on HUL product categories, leading to the sale or withdrawal of two-thirds of its brands. The 21st century The decade starts with the launch of Path to Growth, a five-year strategic plan, and in 2004 further sharpens its focus on the needs of 21st century consumers with its Vitality mission. PRODUCT PORTFOLIO :( UNILEVERS BRANDS) y Food Brands y Home care brands y Personal care brands y Nutrition y Health, hygiene & beauty

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HOME CARE BRANDS:In many parts of the world HUL lead the home care market, with brands such as Omo, Surf, Comfort. It's more than just hygiene with homes and clothes that are clean and cared for, HUL help you get more out of life. Comfort: Comfort Fabric Conditioner understands this and has addressed this need by formulating a fabric conditioner that not only refreshes the clothes but also makes the HUL user feel cared for. Rin: Consumer insight shows that one of the leading drivers that indicate a good wash is the level of whiteness and brightness that clothes have after the use of a detergent powder. Rin is formulated to offer whiteness and bring back life in your everyday clothes. Surf excel: Remember when you were a child? How you were free to explore while returning home covered in dirt and other stains that you wore like the badges of an intrepid discoverer Cif: Getting rid of tough stains in your house is not tough anymore. Cifs unique formula with microparticles remove the toughest dirt making your surfaces beautiful and shiny like new. Vim: Created in 1885, the Vim brand is still innovating and using the magic of natural ingredients to create unbeatable results over a hundred years later.

Lifebuoy soap: Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions. Lux: Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands. Ponds: Ponds have been listening to womens needs and desires for 150 years and this has enabled us to deliver new products customised to their needs. Ponds accompanies them on their journey to enhance the beauty of their skin. Rexona: Rexona is the world's leading anti-perspirant brand. It was the first antiperspirant deodorant to be launched in India. Dove: Dove is known to be a keeper of promises and has given real products to women world over. To help you enjoy your own brand of beauty, Dove provides a wide range of personal care, hair care, skin care and deodorants. So choose a new way of pampering your skin, everyday, with Dove.
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THE ITC WAY


Vision:Sustain ITC's position as one of Indias most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders

Mission:To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value

History & Evolution:ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to ITC Limited in 1974. In recognition of the Company's multibusiness portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Companys beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India.

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In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. In 1990, leveraging its agro-sourcing competency, ITC set up the Agro Business Division for export of agro-commodities and the Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraftwas launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand Classmate in 2003. Classmate over the years has grown to become Indias largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009.

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ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of Indias fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands minto and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matchesbrands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector and ITC's popular agarbatti brands include Spriha and Mangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivelrange of soaps in February and Vivel range of shampoos in June 2008.

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Global Honours:ITC constantly endeavours to benchmark its products, services and processes to global standards. The Company's pursuit of excellence has earned it national and international honours. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of "the world's best big companies". Forbes has also named ITC among Asia's' Fab 50' and the World's Most Reputable Companies. ITC has several firsts to its credit: y ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines of the Netherlands-based Global Reporting Initiative (GRI), a UN-backed, multi stakeholder international initiative to develop and disseminate globally applicable Sustainability Reporting Guidelines. ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of its contribution to development priorities like poverty reduction, its scale and replicability, sustainability and transparency. ITC has won the inaugural 'World Business Award', the worldwide business award recognising companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The award has been instituted jointly by the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation. ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007, the Award for CSR in Emerging Economies 2005 and Excellence in Corporate Governance' in the same year. These Awards have been instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and Centre for Corporate Governance. ITC Hotel Royal Gardenia, Bengaluru is the first Indian Hotel and world's largest, to get the LEED Platinum rating the highest green building certification globally. The Company's Green Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh are the first units of their kind in the world to get ISO 14001environment management systems certification. ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality certification and the first among cigarette factories in the world to be awarded the ISO 14001 certification. ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001Environment Management Systems certification. ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001.

y y

y y

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y y y

ITC InfoTech finds pride of place among a select group of SEI CMM Level 5 companies in the world. ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10 units in the world to bag the Social Accountability (SA 8000) certification. ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also certified for the standard ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration Laboratories (NABL). This certification is awarded for "General requirement for the competence of Testing & Callibration Laboratories". ITC Chairman Y C Deveshwar has received several honours over the years. Notable among them are:

Year Award The Padma Bhushan, one of the highest civilian awards in the country by the Government of India in recognition of his distinguished service of a high order to the Nation.

2011

2010 The U.S.-India Business Council (USIBC) Award for Global Leadership. SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership Symposium, Zurich. Business Person of the Year from UK Trade & Investment, the UK Government organisation that supports overseas businesses in that country.

2007

2006

2006 Inducted into the `Hall of Pride' by the 93rd Indian Science Congress. 2005 Honoured with the Teacher's Lifetime Achievement Award. Manager Entrepreneur of the Year from Ernst & Young. Retail Visionary of the Year from Images, India's only fashion and retail trade magazine.

2001

1998 Honorary Fellowship from the All India Management Association 1996 Distinguished Alumni Award from IIT, Delhi. 1994 Marketing Man of the Year from A&M, the leading marketing magazine. 1986 Meridien Hotelier of the Year.

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Some of the other notable recognitions are:-

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The Stockholm Challenge 2006 for the e-Choupal initiative. This award is for usingInformation Technology for the economic development of rural communities. United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary initiatives in agri business through the e-Choupal. The Corporate Social Responsibility Crown Award for Water Practices from UNESCOand Water Digestfor its distinguished work carried out in the water sector in India. ITC also received the National Award for Excellence in Water Management 2007 in the 'beyond the fence' category from the CII Sohrabji Godrej Green Business Centre for its leadership role in implementing water and watershed management practices. The watershed program also won the Asian CSR Award 2007 for Environmental Excellence given by the Asian Institute of Management. The Award recognizes and honors Asian companies for outstanding, innovative and world-class projects. The Company also received the Ryutaro Hashimoto Incentive Prize 2007 for Environment & Development from the Asia Pacific Forum. This Award aims at promoting information dissemination of good practices towards sustainable development in the Asia-Pacific region. The Readers' Digest Pegasus Award for corporate social responsibility, recognizing outstanding work done by socially conscious companies.

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The Corporate Award for Social Responsibility 2008 from The Energy and Resources Institute (TERI) in recognition of its exemplary initiatives in implementing integrated watershed development programs across 7 states in India. The company also won the award in 2004 for its e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector. The 'Enterprise Business Transformation Award' for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for its celebrated eChoupal initiative. The Best Corporate Social Responsibility Practice Award 2008 jointly instituted by the Bombay Stock Exchange, Times Foundation and the NASSCOM Foundation. The NASSCOM - CNBC IT User Award 2008 in the Retail & Logistics category. The Company has been recognized for its pro-active and holistic approach to IT adoption and the seamless alignment of IT with business strategy. This is the fourth time that ITC has won Nasscom's Best IT User Award since it was instituted in 2003. The Institute of Chartered Accountants of India Award for Excellence in Financial Reporting with its Annual Report and Accounts, adjudged as a commendable entry under the Category 'Manufacturing and Trading Enterprises'. The Business Today Award for the Best Managed Company in recognition of its outstanding initiatives in the consumer products segment. The only Indian FMCG company to have featured in the Forbes 2000 list. The Forbes 2000 is a comprehensive ranking of the world's biggest companies, measured by a composite of sales, profits, assets and market value. The list spans 51 countries and 27 industries. The NDTV Profit Business Leadership Award for being the Best Food Company of 2007. The Award has been instituted to recognize organizational excellence.

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The CNBC-TV18's International Trade Award 2008 for Outstanding Exporter of the Year in the FMCG & Food category. ITC continues its dominance of The Economic Times' Brand Equity listing of India's 100 Biggest FMCG Brands, with three brands from its stable making it to the top five. Gold Flake remains India's biggest FMCG brand in terms of sales. Navy Cut ranks at No. 4. ITC's Scissors brand ranks at No 5 and is the only new entrant into the top 10. Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian restaurant in the world and the best restaurant in Asia. Bukhara has also been adjudged one of the top 50 restaurants in the world by the London based magazine 'The Good Food Guide'. Bukhara is the only South Asian restaurant to figure in the list. The "Best Supply Chain Practices Award" for time-effective and cost-efficient Logistics Management in Organized Retail to ITC's Lifestyle Retailing Business Division (LRBD). The awards were organized by Retailers Association of India (RAI) in association with ITW Sign ode - the International leaders in packaging solutions.

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CHAPTER-4

Analysis & observation:-

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Distributor
1. Which brand has the maximum sale and why?

2. Which brand has the minimum sale and why?

3. Are you happy with the promotional activity of the company for their brand?

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Findings from retail Distribution system;1. Does keeping the soap in a particular area to catch the eye of customer does matter if yes to what extent.

2. What percentage of people asks you for a particular brand? -79% 3. Why do you feel consumers prefer a particular brand?

4. Do you recommend any particular brand to the consumer?

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5. Why do you recommend certain brands?

6. Does promotional activity like hoarding help you a lot?

7. Does promotional activity of the dealer help in increasing sales?

8. Which brand does the most promotional activities?

ITC & HUL

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9. Are you given credit facility?

10. Which brand gives you the maximum margin?

11. Which brand gives you the least margin?

12. What is the tax structure? 12.5% VAT.


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Analysis of Both
Companies
1. Awareness level consumer about HUL and ITC.

2. How much % of urban and rural market does both brand covers?

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3. Which marketing tool does both brands using more effectively?

3. When it was asked the retailers that how do you sell FMCG products. The response is underNo. of respondent 60 120 20 Percentage 30% 60% 10%

Personal persuasion Product available Other reason

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4. When it was asked from the retailers regarding the best option to sell a product. The response is followed as under:-

5. When it was asked from the retailers about the frequency of purchasing the FMCG product from the suppliers the response had come out as below:Daily Weekly Monthly Any other 22% 65% 11% 2%

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6. When it was asked from retailers about the best alternatives which influence the customers FMCG buying decision. Brand T.V.advertisement Packaging Prize 76% 58% 16% 50%

7. When it was asked from retailers about distribution channel adopted by FMCG whole seller:Shop to shop 60% Direct selling 30% Other reason 10%

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HUL & ITC are major companies in FMCG market in India. When we compare both companies on the basis of their strategies i.e. , their competitive strategies in the present market. When we look at the present segment breakup for both of the companies then we came to know that their different products vary too much in the market.

HUL Segment Breakup

ITC Segment Breakup

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Now let us take a comparative analysis of both the companies under some heads:HUL Hindustan Unilever (HUL) is the largest pure-play FMCG company in the country and has one of the widest portfolio of products sold via a strong distribution channel. It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams. Performance After stagnating between 1999 and 04, the company is back on the growth track. In the past three years, till 2008 HULs net sales have witnessed a CAGR of 11%, while net profit has posted a CAGR of 17%. ITC ITC is not a pure-play FMCG company, since cigarettes is its primary business. It is diversifying into non-tobacco. FMCG segments like foods, personal care, paper products, hotels and agri-business to reduce its exposure to cigarettes. Performance Despite diversification, ITCs reliance on cigarettes is still huge. The tobacco business contributes 40% to its revenues, and accounts for over 80% of its profit. This cashgenerating business has enabled it to take ambitious, but expensive bets in new segments and deliver modest profit growth.

Overall Strategy Overall Strategy HUL always believes in customer friendly TC is focusing on delivering value at products with major emphasis on low cost competitive prices. Its tremendous reach overall without compromising on the quality through extensive distribution chain has been of the product. They are leveraging the a competitive advantage. Additionally, the capabilities and scale of the parent company companys e-choupal model for direct and focusing on the value of execution. The procurement is well known under which ITC entire product product portfolio is also being partners with over 100,000 farmers for spices tweaked to include premium offerings such and wheat procurement and an even larger as Ponds Age Miracle and dove shampoo in number for oilseeds. This kind of rural skin and hair care. pedigree is hard to beat. Growth Drivers Growth Drivers The Company has been launching new ITCs backward integration to ensure that its products and brand extensions, with products pass efficiently from the farms to investments being made towards brandconsumers has helped it to cut down supply building and increasing its market share. and procurement costs. ITCs non-cigarette HUL is also streamlining its various business FMCG business leverages the large operations, in line with the One Unilever distribution network the company has philosophy adopted by the Unilever group developed by selling cigarettes over the worldwide. Introduction of premium products years. A rich product mix, along with rampand addition of new consumers via market up of investments in its new sectors, will be expansion will be HUL growth drivers. instrumental in charting ITC growth path.

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CHAPTER-5

SWOT ANALYSIS OF HUL&ITC

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SWOT ANALYSIS OF HUL:STRENGTHS Strong brand portfolio, price, quantity & variety. Innovative Aspects. Presence of Established distribution networks in both urban and rural areas.-3400 distributers 16 million outlets over the world and a700 million customer base. Strong R&D of the company Highly skilled human resource. Corporate Social Responsibility (CSR)

WEAKNESSESCompetitors. Low exports level (at present). Changing consumption patterns. High advertising costs.

OPPORTUNITIES Large domestic market over a billion population. Untapped rural market. Changing Lifestyles & Rising income levels, i.e. increasing per capital income of consumers.

THREATS Tax and regulatory structure. Mimic of brands Entry of ITC in FMCG sector. Increasing cost of raw material.

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Swot Analysis of ITC:ITC is one of India's biggest and best-known private sector companies. In fact it is one of the World's most high profile consumer operations. This SWOT analysis is about ITC. Its businesses and brands are focused almost entirely on the Indian markets, and despite being most wellknown for its tobacco brands such as Gold Flake, the business is now diversifying into new FMCG (Fast Moving Consumer Goods) brands in a number of market sectors- including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery. Examples of its successful new FMCG products include: Aashirvaad - India's most popular atta brand with over 50% market share. It is also present in spices and instant mixes. Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India. Bingo! - a new introduction of finger snacks. Kitchens of India - pre-prepared foods designed by ITC's master chefs. Sun feast - is ITC's biscuit brand (and the sub-brand is also used on some pasta products).

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StrengthsITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

WeaknessThe company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market.

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Opportunitiesy Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration. ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages. ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate.

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ThreatsThe obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings. ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future.

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CHAPTER -6

PRODUCT INFORMANTION

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PRODUCT INFORMANTION:MISSION:To bring safety, security and health to 5 billion people through the active Promotion of hand washing with soap.

INTRODUCTION:Lifebuoy is a famous and distinctive brand of soap that was created by the Lever Brothers soap factory in 1894. It was the first soap to use carbolic acid, which gave it a red colour and strong, medicinal scent. Lifebuoy is still manufacture d today and is the leading brand of soap in many developing countries including India. Today Lifebuoy is sold in all over the World. It is market leader in every market where it is sold. The desire to be clean, active and healthy is intrinsic to every one irrespective of age or economic status. Lifebuoy understands this need and champions the cause for hygiene and health around the world. An inspiring vision for more hygienic, healthier and ultimately more vital communities is the driving force behind the Lifebuoy brand. To realise this vision, Lifebuoy has looked to consistently innovate and provide accessible hygiene and health products to a wide variety of consumers. This vision also commits the Lifebuoy brand team to visible action, inspiring projects that motivate consumers to improve their hygiene behaviour.

HISTORY:In 1894, William Hesketh Lever launched Lifebuoy in the UK as the Royal Disinfectant Soap. Lever grew up in industrialised Bolton, Lancashire, which was a typical English city of the Industrial Revolution era, with thousands of people living in slums where disease ran rampant. Epidemics of typhoid, dysentery and yellow fever were common and infant mortality was exceptionally high. 'Cleanliness is next to godliness' was a common theme of reformist groups, which demanded hygiene education and improved living conditions for the poor and working classes. They also demanded a preventative approach to reduce disease and illness that were primarily caused by unsanitary conditions. Lever was actively seeking the perfect formula for a soap product that could combat germs and still be affordable to everyone. In what could be termed as a major scientific breakthrough of the era, he found just that in carbolic acid. The brand went global in 1911 and began distributing to countries such as the United States, Germany, Switzerland, Canada, India, etc.

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EVOLUTION AND CHANGES:Lifebuoy went through several changes and incarnations throughout the brand's history. A white version of the soap was introduced in 1962 and contained a light perfume scent. Pink and aqua versions were released soon after. Each package of Lifebuoy soap contained the phrase "Knocks out B.O." and the brand is credited with coining the long-standing abbreviation for body Odour. The original Lifebuoy soap was manufactured in the UK until 1987 when the production and distribution was halted. The brand was shortly taken over by Unilever and is still in production today---albeit with several key differences. Due to regulations put forth by the European Union, the soap can no longer contain carbolic because it is potentially toxic and linked to skin irritation and respiratory tract problems with prolonged exposure. The substance is also considered a possible carcinogen. Lifebuoy soap is still the leading brand of soap in several countries worldwide, specifically in India and parts of Southern Asia. Unilever produces a wide range of products under the Lifebuoy umbrella such as body wash, liquid soaps and acne-fighting solutions

OBJECTIVES:Lifebuoy's goal is to provide affordable and accessible hygiene and health solutions that enable people to lead a life without fear of hygiene anxieties and health consequences.

HYGIENE EDUCATION AND DISASTER RELIEF:The brand's core promise of protection and a commitment to support life through unbeatable protection is at the heart of the brand name itself Lifebuoy, the guarantee of protection when you are threatened. For example, a 1930's campaign in the US was titled 'Clean hands help guard health', encouraging the use of Lifebuoy soap to kill the germs on hands that can cause health issues. A similar campaign continues today, with Lifebuoy hygiene education programmes ongoing in countries including India, Bangladesh, Pakistan, Sri Lanka, Indonesia and Vietnam. Lifebuoy also has a history of helping people maintain hygiene in times of natural disaster. During the 1940 Blitz of London, the brand set up mobile, free washing facilities for public use. Each unit was equipped with showers, towels and soap. In 2004 after a Tsunami hit Asia, Lifebuoy bars were sent in relief packages to India, Sri Lanka and Indonesia to help prevent the spread of disease. The brand also provided aid after earthquakes hit Pakistan and Northern India in 2005. Lifebuoy donated over 200,000 bars of soap to the International Committee of the Red Cross to support the recovery effort.
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LIFEBUOY PORTFOLIO:Today, the Lifebuoy brand is more than the quintessential bar of red soap, and provides hygiene and health for the entire family through a range of products like liquid hand wash and specially designed body wash. Beyond ensuring daily hygiene and freshness, Lifebuoy products also address special needs like anti-acne and skin fortification for an all around cleansing experience. Lifebuoy Hand Sanitizer effectively disrupts bacterias cell membrane & viruss outer coat thereby kills germs & viruses on your hands. Proven to instantly kill 99.99% germs. Proven to kill H1N1 virus Dries quickly, is non-sticky and has soothing fragrance. Has Moisturizer and Vitamin E to keep your hands soft and smooth. Lifebuoy bar soaps support childrens health and growth by providing extended germ protection for up to 12 hours after a bath thanks to enhanced ingredients. Lifebuoy Body Wash provides deep cleansing of pores, protecting against the three root causes of skin health problems clogged pores, over-drying, and infection causing germs. Clean, germ-free hands are the key to good health, as ingestion of germs from unhygienic hands at mealtimes is the most likely cause for common diseases. Lifebuoy Hand Soaps offer hospital-strength germ protection, with a unique formulation that generates a rich lather. This provides an effective and hygienic wash in every corner of the hands and nails, at the same time leaving your hands pleasantly fragrant.

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CHAPTER -7

MARKET STRATEGIES

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MARKET STRATEGIES:INTRODUCTION:Lifebuoy has always been marketed as a tough cleaning soap for a tough man. (Of course, the 2002 re-launch targeted Lifebuoy as a soap that brought good health to the entire family). Lifebuoy has been seen as a value for- money product, a soap that is long-lasting. In a very smart TV ad campaign, children are shown cleaning a street. The message put across is that since these children are secure from ailments that are caused by a lack of proper sanitation and hygiene, thanks to the fact that they use Lifebuoy, they are in a position to ensure cleanliness and hygiene for the entire community. Thus, Lifebuoy not only ensures good health and cleanliness for individuals, but healthy and productive communities as well. The Lifebuoy Swasthya Chetana programme uses a direct consumer contact methodology, and touches the lives of 70 million people in 18,000 villages. A unique feature of this campaign is that it utilizes multiple contacts, as opposed to other programmes which are single contact in nature. Gushes the HLL spokesman, This programme aims to educate people about the benefits of hand wash with soap, and how hand wash can help kill invisible, disease causing germs. It is thus a marketing programme with a strong social cause of improving the health and hygiene of rural India. The brand USP is, Lifebuoy provides 100% better protection from germs as compared to ordinary soaps.

HULS MARKET SEGMENTATION AND TARGETING:The targeting market for lifebuoy is all households who can afford buying soap and who want to fulfil everyday need that provides them and their family with a 100 anti bacterial solution and complete protection from all germs bacteria and cleanliness from dirt Lifebuoy belief that children are the potential agent for change and imparting education on the importance of hand washing with soap will enable them to adopt early habit in life.

HULS REPOSITIONING STRATEGY:Lifebuoy soap is a very old brand of bath soap in India, Life Buoy is an anti bacterial soap and in the beginning it positioned itself on its antibacterial qualities, lifebuoy gained a number of customers with this positioning, but then there comes the competition with the Dettol soap. All this put Lifebuoy out of lime light and to survive in market, Lifebuoy positioned itself on price it became low price antibacterial soap. This strategy may have boosted short term sales of Lifebuoy but it lost its brand value and credibility in the minds of customers. Lifebuoy needed to reposition itself on quality rather than price.

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REPOSITIONING CAMPAIGN:The repositioning campaign of Lifebuoy was started at 2008, but it became more prominent and became effective in 2009, Lifebuoy along with the advertisement has improved its quality and fragrance, most of the people had shifted from lifebuoy because it was low quality and it smelled terribly, as Lifebuoy has improve d its quality all it needed to run an effective advertisement campaign to get the customers attention. The advertisement team of Lifebuoy came up with excellent theme Healthy Hoga Hindustan and it is targeting parents which is their target market, Lifebuoy made very effective ad and it also used fear strategy (which is effective in case of antibacterial soap). This has enabled Lifebuoy to get more and more customers. Now a days, Lifebuoy is everywhere in Television, Radio, Newspapers and Billboards, Lifebuoy is running a huge campaign to promote itself which is very necessary in case of repositioning the brand. With the help of marketing department and advertisement, Lifebuoy has successfully repositioned itself as a quality antibacterial soap with better fragrance and more durability. Many companies try to reposition themselves when they see market trend shifting but most fail to do so. In case of Lifebuoy it has been successful. The interesting thing about this campaign is that Lifebuoy is running the same campaign in Pakistan and in India as is done by Unilever, this suggest that Lifebuoy is considering India and Pakistan as the similar market segment.

MARKET STRATEGIES:In marketing strategies we will discuss the existing strategy of Lifebuoy along with some adjustments in the strategies to improve our selected product. The discussion of these market strategies are hereunder. MARKET SCOPE STRATEGY:Although Unilever itself is a part of a Multi market, but since we are talking about the product Lifebuoy we can say that it is using a multi market strategy as well because it has both soap and shampoo, not these two only but they have others antibacterial liquid baths as well opening a way for Lifebuoy to be a multiple product. EVALUATION:In evaluating this multimarket strategy, one comes to know that Unilever is well using its product of Lifebuoy in promoting its business. It has diversified that brand into different categories to capture every part of the market. This strategy is helping Unilever in a way that due to variety of products it not only saves the existence of a single product but also saving other products which are complement to it. MARKET GEOGRAPHIC STRATEGY:Geography has long been used as a strategic variable in shaping market strategy. History provides many examples of how businesses started locally and gradually expanded nationally and internationally. Unilever is having an international market strategy for Lifebuoy being available in almost every continent of the world. It is a worldwide brand of Unilever available in India, China, Indonesia, Cyprus, UK, and USA along with Pakistan.
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EVALUATION:Lifebuoy has more than a life of 100 years, providing Unilever a key support in all of its brand buckets. Unilever knows the significance of its brand therefore it has globalized this product by making it an international brand. It has made it available in Asia and Africa where it is used by those people who have a daily income of less than 1 $. So Lifebuoy is well in line with its goals and objectives providing hygiene and health solutions that enable people to lead a life without fear of hygiene anxieties and health consequences. MARKET ENTRY STRATEGY:Lifebuoy is one of the old products of Unilever which has more than 100 years of successful journey, we can simply say that Lifebuoy is the early entrants internationally and in India it is the first-in in its kind of soaps. By adopting the first-in strategy, Lifebuoy has captured the maximum share of the market. Over 60 years in India we guess there is not a single home that didnt use it. Lifebuoy has taken the risk of the first-in and consequently got one of the biggest markets in Asian countries by providing its quality and sustained priced product to both rural and urban areas of India. MARKET COMMITMENT STRATEGY:Being the first-in in the market Unilever has shown strong commitment with its brand of life time i.e. Lifebuoy and that commitment to its brand has really foster the growth of Unilever as well as its brand of Lifebuoy. But from the recent decade Unilever is no more showing the strong commitment to Lifebuoy because over the period of time many of the competitors came in the market with new innovative product, better market strategies and stronger commitment. In the present scenario, Unilever is just showing an average commitment to its brand of Lifebuoy which has really put its brand on the back foot. EVALUATION:In evaluating the market commitment strategy it is necessary for the Unilever to again show strong commitment to its product. Although Unilever has well realized the situation and make changes in its strategies which are making some changes in the consumers mind but we think there is more need required to retrieve its image of better quality at lower price in the customers mind.

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STRATEGIES WITH RESPECT TO 4PS:PRODUCT:A product is anything that can be offered to a market to satisfy a need or want. Products that are marketed include physical goods, services, experiences, events, persons, places, properties, organizations, information and ideas. Product Classification:Lifebuoy is a Tangible, Non Durable Good on the basis of this classification. Lifebuoy and other soaps fall into the category of Convenience Good Product Life Cycle:Lifebuoy Bar is in the maturity stage of its life cycle.

PRODUCT STRATEGIES:PRODUCT POSITIONING STRATEGY:Placing a brand in that part of the market where it will have a favourable reception compare with other brands. Unilever position Lifebuoy when come in red colours as a brand of low income group. They choose their segment and position their brand according to the needs and wants of the segments. This segment wants long life of the soap and the chemical formula of Lifebuoy enables it to have long life. PRODUCT REPOSITIONING STRATEGY:Due to competition, Unilever has to reposition its brand Lifebuoy because the needs and wants of people are changed. Unilever should revise its marketing mix to reposition Lifebuoy. Now they are targeting whole India by the advertisement Healthy Hoga Hindustan. They position their brand for the health conscious people. In repositioning they changed the shape, color and the attributes of the Lifebuoy because want this kind of changes and they do this through environmental scanning. PRODUCT OVERLAP STRATEGY:Unilever is also using Overlap strategy between Capri and Lifebuoy. The potential customers move from Capri to Lifebuoy and from Lifebuoy to Capri. In this way they are keeping the potential customers with themselves.

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PRODUCT SCOPE STRATEGY:-

Single Brand:Unilever is using single brand strategy when Lifebuoy came in traditional red colour and use by lower income group. Multiple Brands:In order to attain the whole market Unilever has introduced Lifebuoy shampoo to capture more growth and profits.

PRODUCT DESIGN STRATEGY:-

Deals with the standardization of the product and Unilever is using two product development strategies. Standard product:Unilever is offering a standard product of Lifebuoy soap and shampoo by standardized packaged product. Customized product:In case of Lifebuoy shampoo different sizes are available, customers use according to its requirements from 200ml bottle to 5ml sachet pack since there is no one time consumption.

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PRICING STRATEGIES:Market penetration:Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives: Maintain or increase the market share of current Products this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling. Secure dominance of growth markets. Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors Increase usage by existing customers for example by introducing loyalty schemes Fast Moving Consumer Goods (FMCG) like lifebuoy shop has to be Some requirements for making an impression in the market for penetrating:1) Strong distribution channel 2) Minimum profit margin 3) Simple marketing message 4) Lesser-priced packs to increase affordability 5) Packaging in smaller units and localized design that attracts consumers 6) Convenience of storage while use 7) Thorough knowledge of the village psyche In brief, the strategy revolves around what attracts consumers to a product.

PROMOTIONAL STRATEGIES:Successful promotion campaigns don't happen by chance. To realize goals, promotional products programs must be carefully planned, taking into consideration the audience, budget and, of course, the ultimate result to be gained. 1. Define a specific objective. 2. Determine a workable distribution plan to a targeted audience. 3. Create a central theme. 4. Develop a message to support the theme. 5. Select a promotional product that bears a natural relationship to your profession or communication theme. 6. Don't pick an item based solely on uniqueness, price or perceived value. Don't fall prey to the latest trends or fads. The most effective promotional products are used in a cohesive, wellplanned campaign. Sales promotions are non-personal promotional efforts that are designed to have an immediate impact on sales. Media and non-media marketing communications are employed for a pre-determined limited time to increase consumer demand, stimulate market demand or improve product availability. Lifebuoy is promoting its product using these kinds of promotional techniques.
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Consumer sales promotion techniques:-

The different consumer sales promotion techniques used by Lifebuoy are :-

Price deal: A temporary reduction in the price, such as happy hour. Cents-off deal: Offers a brand at a lower price. Price reduction may be a percentage Marked on the package. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example, 25 percent extra).

Coupons: coupons have become a standard mechanism for sales promotions.

Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery.

Rebates: Consumers are offered money back if the receipt and barcode are mailed to the producer. Contests/sweepstakes/games: The consumer is automatically entered into the event by purchasing the product.

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DISTRIBUTION STRATEGIES: The movement of goods and services from the source through the distribution channel, right up to the final consumer, or user and the movement of payment in the opposite direction, right up to the original producer or supplier. Chanel of Distribution:A distribution channel can be as short as being direct from the vendor to the consumer or may include several inter-connected (usually independent but mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each intermediary got the items at one pricing point and moves it to the next higher pricing point until it reaches the final buyer also called channel of distribution or marketing channel.

The Importance of Distribution:Most producers use intermediaries to bring their products to market they try to develop a Distribution channel to do this. A distribution channel is a set of Interdependent organizations that help make a product available for use or consumption by the consumer or business user. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. A companys channel decisions directly affect every other marketing decision. Place decisions, for example, affect pricing. Marketers that distribute products through mass merchandisers such as Wal-Mart will have different pricing objectives and strategies than will those that sell to specialty stores. Distribution decisions can sometimes give a product a distinct position in the market. The choice of retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass merchandisers to sell mid-price-range products while they distribute top-of-the-line products through high-end department and specialty stores. The firms sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need. Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members. Some companies pay too little attention to their distribution channels. Others, such as FedEx, Dell Computer, and Charles Schwab have used imaginative distribution systems to gain a competitive advantage.

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Functions of Distribution Channels:Distribution channels perform a number of functions that make possible the flow of goods from the producer to the customer. These functions must be handled by someone in the channel. Though the type of organization that performs the different functions can vary from channel to channel, the functions themselves cannot be eliminated. Channels provide time, place, and ownership utility. They make products available when, where, and in the sizes and quantities that customers want. Distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers. This occurs in two ways. The first is called breaking bulk. Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. Second, channel intermediaries reduce the number of transactions by creating assortments providing a variety of products in one locationso that customers can conveniently buy many different items from one seller at one time. The transportation and storage of goods is another type of physical distribution function. Retailers and other channel members move the goods from the production site to other locations where they are held until they are wanted by customers. Channel intermediaries also perform a number of facilitating functions, functions that make the purchase process easier for customers and manufacturers. Intermediaries often provide customer services such as offering credit to buyers and accepting customer returns. Customer services are oftentimes more important in B2B markets in which customers purchase large quantities of higher priced products.

Existing strategy:Unilever uses a lot of distributors and retailers to supply its products in each market where the final customer might reasonably look for it. While appointing a distributor for a particular area, management uses its own judgment to select such a person that has a potential to operate effectively. Unilever uses an intensive distribution strategy for lifebuoy soap while at the same brand but in shampoos category it introduces only extensive strategy. Unilever did not fight for the better shelf space for lifebuoy soap. Lifebuoy is targeting middle and low income consumers so shelf space is not important our main focus is on intensive distribution and ideal price with some innovation.

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THE ITC WAY (strategies):ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems.

ITCs corporate strategies are:y

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agro Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC are various businesses. Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses.

y y

Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability

ITC (Vivel soap) marketing strategy:Vivel Di Wills can be termed as a brand for the middle class and priced well below Fiama DiWills . Vivel Di Wills has been launched even before the brand Fiama Di Wills settled in the market.In a way ITC is flooding the personal care market with its brands. Vivel Di Wills - as the name suggests shares the term ' Di Wills ' with Fiama and Essenza. Vivel Di Wills comes in two variants: Sheer Radiance and Sheer Creme. Sheer Radiance contains Olive Oil while Creme variant contains Shea Butter. What differentiates Vivel Di Wills is the ingredient branded Actipro-N which was developed by ITC R & D team. Actipro -N nourishes, protects and hydrates the skin thus enhancing the beauty of the skin. Vivel Di Wills comes in an attractive carton package with some elegant colour scheme. The brand is priced at Rs 16 for a 75gm soap
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Now comes the interesting part. When I was shopping, the attractive packing and display of Vivel Di Wills prompted me to take one. But when I reached the section for soaps, I was surprised to see another set of soaps with the brand name Vivel . This was confusing to me and I thought that it was a fake brand taking advantage of Vivel Di Wills. On closer examination, I was surprised to find that Vivel also belong to ITC. Then I checked the price and it was less that Vivel Di Wills. The packaging was ordinary and there was even a sale promotion offer attached with the soap (Price off) So there are two brands Vivel Di Wills and Vivel priced differently and even the brand elements are different. News reports say that Vivel has four variants: Satin soft, Young Glow, Ayurvedic Essence, Sandal, Sparkle. , So the natural question is about the logic of these two brands with similar brand names launched simultaneously. In a press release available in the ITC portal, the category head Sandeep Kaul mentions that they are going to use price and positioning difference to separate the brands Fiama and Vivel Di Wills since Fiama also launched a soap recently. But the question is with Vivel Di Wills and Vivel. I am a little confused but a parallel can be drawn between Vivel Di Wills, Vivel , Lux and Lux International. Lux International is positioned as a premium soap while Lux is a mass market one. ITC may be adopting the same strategy. ITC is looking at two segments within the medium priced soap category and using a small price differential, it is tapping customers who can pay a little more for extra benefits ( Masstige brand). The campaign for Vivel Di Wills will indirectly draw customers towards Vivel. Vivel Di Wills is being promoted using TVC and the message is that the lady is so beautiful that the husband does not notice any other ladies. My initial impression about the soap is positive and I find the fragrance refreshing and new. The brand name Vivel Di Wills is urban and will definitely appeal the educated urban consumers. The brand also has its advantage interims of the ingredients. Indian consumers will be impressed by the ingredients like Olive Oil, Active Clay, Shea butter which gives this brand a unique healthy natural perception. The idea behind these fast launches is to provide a complete range of soap brands to the Indian consumer. ITC knew that it is a late entrant to the market. Time is too short for phased launches. Hence the strategy is to offer a full portfolio at one go and then try to manage the differences.

SUGGESTED DISTRIBUTION STRATEGY:We have suggested that Unilever for lifebuoy and ITC both should introduce a new kind of distribution strategy that will be a strategic fit between its productions to consumptions. Unilever should identify its larger, medium and small consumption areas and design the channel accordingly and ITC should give more focus on lower income group customer. According to my sense and survey HUL & ITC must go for intensive distribution with wholesaler and retailers in the areas where rate of consumption is usually very greater than that of the other areas where comparatively rate of consumption is not so attractive. Lifebuoy is available at every outlet and at every big, medium and even at very small stores(hatti) but ITC is not present everywhere. Now we want to save the cost of per Tikki soap in Urban areas by reducing intensive approach and turning to a new strategy that a more easily applicable and sensible.

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CHAPTER-8

CONCLUSION & SUGGESTIONS

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CONCLUSION:After study the market strategies of HUL for Lifebuoy, I have reached these conclusion:y y y y y y HUL is the market leader in the FMCG sector in India in comparison to ITC Ltd. Lifebuoy soap brand is market leader at Indian Urban and Rural Areas so ITC should target rural market. Most of the customers are satisfied with the performance of Lifebuoy soap and their other products. Approx 70% customers have positive and 30% customers have negative attitude in support of preference of Lifebuoy soap and the other products of Lifebuoy. Customer's awareness level is better in India. Lifebuoy soap Improving health & hygiene for over 100 years in Indian and all over world.

SUGGESTIONS:I have tried to fully analyze the existing strategies of Lifebuoy & Vivel, what I find from this detail analysis are discussed as improved version of Lifebuoy and more variety from ITC -These suggestions are given from our side and what adjustments can be made in the present strategies to improve the product performance and overall image of the product in the customers mind. In evaluating the position of the Indian market, Lifebuoy and vivel is lacking in its market Geography strategy as it is more common in rural areas of the country where more of the urban citizens keep it as a low level brand. y The major challenge Unilever has to face is its commitment to its old brand of Lifebuoy. Unilever got a major setback when Reckitt Benckiser introduced Dettol through a heavy media campaign. Unilever has tried to compensate that through promotional program of Healthy Hoga India but still it needs a strong and continuous commitment to this product. y Lifebuoy has well repositioned itself but still there is need to change the image that it is a low quality low price product and vice versa with vivel soap. y In penetrating the market through price, Lifebuoy has to compete with brands of P&G, Reckitt Benckiser and Colgate-Palmolive which are a good name of quality, so accordingly Lifebuoy has to adjust its prices at that level where it creates dominance among the existing brands. y In promoting the worth of the Lifebuoy & vivel , it has to modify its promotional campaigns base on traditional heroism and fantasy; one is to come up with new realistic approaches highlighting the need of an antibacterial soap in most hygienic environment. y While deciding about the selection of Channel Company should consider customer buying patterns and the nature of the market. y A general distribution pattern with distributors and retailers are the agents in the urban areas to remove lag time in delivery of the product. Since in rural areas the places are diversified so to improve the distribution there is an inclusion of the whole seller to make the distribution extensive. These are some suggestions from our side identified through complete analysis and view of Lifebuoy. I hope that these suggestions can make a difference in the Lifebuoy by proper implementation and planning. y
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DATABASE OF RESPONDENT COLLECTED THROUGH SURVEY

Name of Retalier

Area

Contact number

Shri Ji super market Shri Balaji Provisional Store Garhak Peth Laxmi Super Market Om Departmental Store rishna Super Market Bala ji Super Market Priyanka Super Market Manish Super Market Mataji Trading Complex Raj Traders Shri Ram Super Market Prince Super Market Shidhivinayak Vardhman Chemist and General Store Gururipa Market Ishwar Trading Ashwani Mini Market

Behind BVU, Trimurti Chowk, Pune Near - Shani Temple, Behind BVU, Pune Near - Trimurti Chow, Pune Near - Trimurti chowk, Pune Karve Nagar, Pune Karve Nagar, Pune Karve Nagar, Pune Balaji Nagar, Pune Balaji Nagar, Pune Balaji Nagar, Pune Balaji Nagar, Pune Balaji Nagar, Pune Kadam Plaza Balaji Nagar, Pune Balaji Nagar, Pune Balaji Nagar, Pune Sambhaji Nagar, Pune Sambhaji Nagar, Pune

9422001193 020-256237196 9967493493 020-24368125 020-25472208 020-25471885 9545403960 9970250870 020-60706218 9423574248 9273452692 020-32529801 020-60701325 9564530887 020-24371832 9527885854 020-24372322 9762190212

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Mataji Super Maret Pooja Super Market Milan Super Market Mahadev Trader Rajghad Medical and General Store Sargam Oil Depot Food Junction Super Market Anand Super Market Amol medical & general Store Maheshwari Super Market Lalit Stationary Ragal stationary Aap Super Market

Balaji Nagar, Pune ashinath pail Nagar,Balaji Nagar Pune Sambhaji Nagar, Pune Balaji Nagar, Pune Balaji Nagar, Pune Balaji Nagar, Pune Katraj, Pune Katraj, Pune Katraj, Pune Katraj, Pune Katraj, Pune Katraj, Pune Katraj, Pune

020-32334570 7011524516 9762504996 9881054090 020-24365190 020-24364245 9763866003 9730251607 9890389377 020-24366635 9371254270 989014779 020-60701080

Distributers.

Agarwal & company Zeet Enterprises Shri Ganesh Sales

Shukrwar Peth, Pune Karve Nagar Ravivar Peth, Pune

020-24475574 020-25470146 020-24478087

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APPENDIX
Questionnaire for Retail Distributor

NAME OF THE RETAILER:_________________________________________ AREA: ______________________________________ CONTACT PERSON:______________________________________ CONTACT NO. __________________________________________

1. Does keeping the soap in a particular area catch the eye of the customer and does it matter? If yes to what extent.

2. What percentage of people asks for a particular brand?

3. Why do you feel consumers prefer a particular brand?

4. Do you recommend any particular brand to the consumer?

5. Why do you recommend certain brands?

6. Does promotional activity like hoarding help you a lot?

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7. Does promotional activity of the dealer help in increasing sales?

8. Which brand does the most promotional activities?

9. What is the cost at which you procure the brand?

10. Are you given credit facility?

11. Which brand gives you the maximum margin?

12. Which brand gives you the least margin?

13. What is the tax structure?

14. What is the sale turnover of the brand?

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Questionnaire for whole sell Distributor


NAME OF THE DISTIBUTOR: PLACE: PLACE SERVING: Contact Detail: Contact Person:

1. When did you start your business?

2. Which are the bath soap brands that you deal in? y _____________________________ y _____________________________ y _____________________________ y _____________________________ y _____________________________ y _____________________________ y _____________________________

3. Which brand has the maximum sale and why?

4. Which brand has the minimum sale and why?

5. What is the distribution channel that you follow?

6. What is your monthly turnover for the soap which has the maximum sale?

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7. What is the promotional tool that is associated with the brand which has maximum sale?

8. Are you happy with the promotional activity of the company for their brand?

9. Which product gives you maximum and minimum margin?

10. Does the attribute and characteristics of the brand have an impact on sale or the brand name is enough to make a sale?

11. Are there any special facilities provided to you by the companies like: credit limits, extra commission, etc.

12. What is the most common problem that you face in selling?

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BIBLIOGRAPHY

y y y y

Google.com Wikipedia.com Slideshare.com Principle of marketing Philip kotler.

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