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PROJECT REPORT ON
MARKETING STRATEGIES OF ITC LIMITED
Submitted to:
Submitted by :
DR AKSHAT DUBEY
ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors
who graciously gave me their time and expertise.
They have provided me with the valuable guidance, sustained efforts and friendly
approach. It would have been difficult to achieve the results in such a short span of
time without their help.
I deem it my duty to record my gratitude towards the project supervisor, Dr. Akshat
Dubey who devoted his precious time to interact, guide and gave me the right
approach to accomplish the task and also helped me to enhance my knowledge and
understanding of the project.
[Pooja Mathur]
TABLE OF CONTENT
S. No.
Topic
Page
No.
Executive Summary
5-9
10-20
Research Methodology
21-22
23-43
10
Recommendation
44
11
Conclusion
12
Bibliography
45-46
47
EXECUTIVE SUMMARY
This project titled Marketing Strategies of ITC Limited. The researcher has
talked about the products and services offered by the company and the satisfaction
of customers with them.
This project gives a brief introduction to the ITC Ltd. also discuss the rapidly
growing personal care sector in India, and various other points of importance. In the
introduction to the company, the vision, mission, corporate governance of the
company is discussed along with recent developments as well as its importance in
India.
This project titled Marketing Strategies of ITC Limited had detailed study. The
first chapter I have given in this project is Introduction to the industry in which I
have included on personal care industry, global market and the future of the personal
care industry.
The second chapter includes the Introduction about the company. I have given brief
of the ITC Limited vision, mission, corporate governance and all about ITC Limited.
The third chapter of this project includes the Research Methodology in which I have
covered the objective of the project, Scope of the study, significance of the study,
and limitation of the project which i have faced.
In the fourth chapter I have included the major fact and findings of the project i.e.
marketing strategies adopted by ITC Limited. Major products of the ITC, product
profile and descriptions which ITC limited deals.
Lastly the recommendation and conclusion describe the researchers personal
conclusions of the research.
Hand and foot care products can be broadly categorised into cuticle care products,
foot scrub, hand and foot cream, nail care products etc. The diagram below shows
the various market segments:
Global Market (segment) share in %
Hair Care Products- Hair care was the largest market segment, both in 2004 and in
2005 with sales reaching 350 million dollars. The price war has had its impact on the
shampoo and styling categories. Sales in hair coloring products has stabilized while
hair conditioners and hair repair products, showed significant growth. Consumers
are willing to buy special, more costly, products because these products are used for
many purposes like hair cleansing, hair conditioning and hair coloring. Some
important hair care products are mentioned below:
Hair Shampoo
Hair Conditioner
Hair Oil
Hair Glaze
Hair Spray
Hair Colors
with
expansion
linked
to
large
Personal Care industry witnessed 23 per cent rise in TV advertising during 2007
compared to 2006 in India.
Personal Hygiene' segment garnered a high share of 43 per cent of overall Personal
Care industry advertising on TV during 2007 in India.
Future Prospects
The future for the personal care products industry is very prosperous, which can be
analyzed by the rising growth trends of the industry. But there are many concerns
related to the chemicals and toxins used as ingredients for making personal care
products. These substances can affect our health and the environment also. They are
absorbed through our skin and can enter our bloodstream thereby affecting our
kidney and liver, and thus can have very harmful effects on our bodies and when
these products are washed off from the body, they are released in to the
environment.
10
strategic forays into new businesses are expected to garner a significant share of
these emerging high-growth markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC
is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last
decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers through the
power of the Internet. This transformational strategy, which has already become the
subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly
enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India
Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT
solutions, including e-enabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and international
awards for quality, productivity, safety and environment management systems. ITC
was the first company in India to voluntarily seek a corporate governance rating.
ITC employs over 24,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating capabilities in a
globalising environment to consistently reward more than 3,75,000 shareholders,
fulfill the aspirations of its stakeholders and meet societal expectations. This overarching vision of the company is expressively captured in its corporate positioning
statement: "Enduring Value. For the nation. For the Shareholder."
VISION OF THE COMPANY
Sustain ITC's position as one of India's most valuable corporations through world
class performance, creating growing value for the Indian economy and the
Companys stakeholders.
MISSION OF THE COMPANY
To enhance the wealth generating capability of the enterprise in a globalising
environment, delivering superior and sustainable stakeholder value.
11
12
CORPORATE GOVERNANCE
Preamble
Over the years, ITC has evolved from a single product company to a multi-business
corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes
and tobacco to hotels, packaging, paper and paperboards and international
commodities trading. Each of these businesses is vastly different from the others in
its type, the state of its evolution and the basic nature of its activity, all of which
influence the choice of the form of governance. The challenge of governance for
ITC therefore lies in fashioning a model that addresses the uniqueness of each of its
businesses and yet strengthens the unity of purpose of the Company as a whole.
Since the commencement of the liberalisation process, India's economic scenario has
begun to alter radically. Globalisation will not only significantly heighten business
risks, but will also compel Indian companies to adopt international norms of
transparency and good governance. Equally, in the resultant competitive context,
freedom of executive management and its ability to respond to the dynamics of a
fast changing business environment will be the new success factors. ITC's
governance policy recognises the challenge of this new business reality in India.
Definition and Purpose
ITC defines Corporate Governance as a systemic process by which companies are
directed and controlled to enhance their wealth generating capacity. Since large
corporations employ vast quantum of societal resources, we believe that the
governance process should ensure that these companies are managed in a manner
that meets stakeholders aspirations and societal expectations.
Core Principles
ITC's Corporate Governance initiative is based on two core principles. These are:
i.
ii.
13
ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and simultaneously
create a mechanism of checks and balances which ensures that the decision making
powers vested in the executive management is not only not misused, but is used with
care and responsibility to meet stakeholder aspirations and societal expectations.
Cornerstones
From the above definition and core principles of Corporate Governance emerge the
cornerstones of ITC's governance philosophy, namely trusteeship, transparency,
empowerment and accountability, control and ethical corporate citizenship. ITC
believes that the practice of each of these leads to the creation of the right corporate
culture in which the company is managed in a manner that fulfls the purpose of
Corporate Governance.
Trusteeship
ITC believes that large corporations like itself have both a social and economic
purpose. They represent a coalition of interests, namely those of the shareholders,
other providers of capital, business associates and employees. This belief therefore
casts a responsibility of trusteeship on the Company's Board of Directors. They are
to act as trustees to protect and enhance shareholder value, as well as to ensure that
the Company fulfils its obligations and responsibilities to its other stakeholders.
Inherent in the concept of trusteeship is the responsibility to ensure equity, namely,
that the rights of all shareholders, large or small, are protected.
Transparency
ITC believes that transparency means explaining Company's policies and actions to
those to whom it has responsibilities. Therefore transparency must lead to maximum
appropriate disclosures without jeopardising the Company's strategic interests.
Internally, transparency means openness in Company's relationship with its
employees, as well as the conduct of its business in a manner that will bear scrutiny.
We believe transparency enhances accountability.
14
15
16
managers will scrupulously consider all factors that go towards securing the interests
of the Company. ITC will focus on meritocracy, equity and upholding of Company
values in all people processes including performance management systems,
appraisals, remuneration and rewards.
A Gender Friendly Workplace
As a good corporate citizen, ITC is committed to a gender friendly workplace. It
seeks to enhance equal opportunities for men and women, prevent/stop/redress
sexual harassment at the workplace and institute good employment practices.
Sexual harassment includes unwelcome sexually determined behaviour such as:
unwelcome physical contact; a demand or request for sexual favours; sexually
coloured remarks; showing pornography and any other unwelcome physical, verbal
or non-verbal conduct of a sexual nature.
ITC maintains an open door for reportees; encourages employees to report any
harassment concerns and is responsive to employee complaints about harassment or
other unwelcome and offensive conduct. A committee has been constituted to
enquire into complaints and to recommend appropriate action, wherever required.
ITC demands, demonstrates and promotes professional behaviour and respectful
treatment of all employees.
Relationships with Suppliers and Customers
All directors, senior management and employees shall ensure that in their dealings
with suppliers and customers, the Companys interests are never compromised.
Accepting gifts and presents of more than a nominal value, gratuity payments and
other payments from suppliers or customers will be viewed as serious breach of
discipline as this could lead to compromising the Companys interests.
Legal Compliance
It is the Companys policy to comply fully with all applicable laws and regulations.
Ensuring legal and regulatory compliance is the responsibility of the Chief
Executives of the Businesses and the Divisional Management Committees. The
Company cannot accept practices which are unlawful or may be damaging to its
17
18
19
management and employees must constantly reinforce through their actions and
behaviour that ITCs stated beliefs of responsible corporate citizenship are rooted in
individual conviction and personal integrity.
Waivers
Any waiver of any provision of this Code of Conduct for a director, senior
management or employee must be placed for approval before the Companys Board
of Directors/ Corporate Management Committee, as appropriate.
Non Adherence
Any instance of non-adherence to the Code of Conduct / any other observed
unethical behaviour on the part of those covered under this Code should be brought
to the attention of the immediate reporting authority, who shall in turn report the
same to the Head of Corporate Human Resources.
Senior management for the purpose of this Code would mean the following:
-
Corporate HODs
20
RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY
Objective One:
To analyze the marketing strategies of ITC Limited used to market their
personal care products in extremely competitive environment of industry.
Objective Two:
To study and analyse the factors influencing a customer to buy personal care
products in competitive environment of industry.
Objective Three:
To identify the customer perception with respect to features required in their
personal care products.
21
different religions while filling questionnaire for my study. This will help me in my
future career.
RESEARCH DESIGN
The research was probability based exploratory research.
Secondary Data
Organization Website
Internet
Biased opinions of the customers are limiting factors for the research.
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Markets
23
Marketing is indeed an ancient art; it has been practiced in one form or the
other. Marketing is considered to be most important of all management
functions in any business. The basic task of marketing is the delivery of a
total offer to the consumer in such a manner that:a) The other fulfills the needs of the consumer.
b) The terms and attributes of the offer are acceptable.
c) All the organizational goals, including profits, are achieved in the
process.
Firstly, place, it chooses the product that would meet the identified needs of
the chosen consumer/consumer group. Secondly, it performs various
distribution functions like transportation, warehousing, channel managemen t,
etc. so that the product can conveniently reach the consumer. Thirdly, the firm
carries out a number of promotion measures like personal selling, advertising
and sales promotional programmes with a view to communicating with the
consumer and promoting the product. Lastly, the firm uses the pricing
mechanism to achieve the consummation of the marketing process, striking
the level of price that is acceptable to the firm as wall as to the consumer. All
activities and programmes which a business firm designs and carries out in its
effort towards winning customers, relate to one or the other of the four
elements -product, distribution, pricing and promotion. These four elements
constitute the Marketing Mix of the firm.
24
Merchandising
New products
Place Variables
Price Variables
Promotion Variables
Assembling and managing the marketing mix is the main part of the
marketing task.
SOME OTHER VARIABLES OF MARKETING
Customer Variables
Number of customers
Habits of purchase
Competition Variables
Trade Variables
Trade practices
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Environment Variables
Level of technology
27
28
Product definition concerns the various properties, which are designed into
the manufacturer's product line and the assortment of models and items, i.e.,
the product mix, which makes up his total product offering. The conditions
and circumstances, which need to be considered in formulating this definition,
can be divided into those, which influence the development of new products,
those, which relate to the product mix, and those, which stem from the
attributes of the company itself.
New-product development involves several stages, beginning with the
generation of new-product ideas and their appraisal to eliminate those
unworthy of further consideration. Products, which warrant additional
investigations are identified and technical work is begun on them along with,
appropriate economic and market research. During this stage the physical
properties of the new product are determined, small quantities are produced in
the laboratory or pilot plant, preliminary investigation of patent rights is
begun, and initial estimates of production costs are made. If initial
expectations are fulfilled, development of the product proceeds through
process research, prototype testing, and commercialisation.
The major determinants of the product mix are technology, competition,
operating
capacity,
and
market
factors.
Accelerating
technology
is
undoubtedly the basic force affecting the product mix of the individual
company, with competitive pressures running a close second. In some
companies, under-utilised capacity is an -important influence along with such
market factors as shits in the product mix of customers, changes in the
availability and / or cost of materials, new developments in manufacturing
processes, changes in the level of business activity, and government controls.
The type and variety of products, which are appropriate for a company, are
also a function of the firm's inherent strengths and weaknesses. Those
attributes of accompany with the most direct bearing on product definition are
the strength of its marketing performance, the extent of its production
capacity, the quality of its R&D effort, and the abilities of its executive group.
29
30
The nature and pricing implications of costs tend to change with different
time periods production cycle, equipment use cycle or product life cycle.
Different types of costs-controllable or non-controllable, incremental or sunk,
overhead or direct, separable, and joint -exercise different influences on
pricing.
The derived nature of demand for industrial goods affects its behaviour in
response to price change. While it is theoretically possible to stimulate
demand for industrial products by lowering their price, increased sales will
result only to the extent that prices of related consumer goods can be reduced
sufficiently to stimulate their sales.
Place
Distribution channels playa vital role in the successful marketing of most of
the products. The distribution channel is an extension of the manufacturer into
the markets he plans to supply. The manner in which products and services
are made available through it is a function of its structure as well as the
relationship, which prevails among its different elements or intermediaries.
The basic choice is whether this structure will be composed of captive
(owned) or independent units.
Since a distribution channel exists for the purpose of moving merchandise and
making services available, channel strategy also involves planning of a
logistical nature. How efficiently the channel structure functions as the
delivery system depends in large part on the quality of logistical planning and
its execution.
Distributors are the most numerous and the most important group of
middlemen handling industrial goods. Industrial users find it desirable to buy
from the distributor because he usually can give quick delivery, his use saves
paper work in buying, he can sometimes offers low prices, adjustments are
easier to negotiate, he may enable the buyer to save freight costs, and he is a
good source of trade information. The patronage of the distributor thus comes
mainly from (1) the firm too small to buy direct, (2) the large firms for
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components lose their identity in the end product. These conditions influen ce
the role of advertising in the firm's promotional strategy, which in turn has a
bearing on the purposes which advertising will be called upon to serve. While
these purposes vary with the firm and the market situation, several are fairly
common. They are to inform, to identify the customers, to win recognition, to
support salesman, to motivate distributors, and to stimulate demand.
The most commonly used media for disseminating advertising messages and
the sales appeal which they contain are trade journals and catalogues,
followed by direct mail, exhibits, general publications, and distributor aids.
The choice of media is determined by the need to reach the proper personnel
in the customer's organization with the proper frequency with proper overall
impression.
The chief limiting factor underlying factor underlying the advertising effort is
the amount of budgetary support management decides to give it. Sometimes
this is determined through the application of a fixed percentage to either last
year's sales or anticipated sales.
Publicity is commonly regarded as a form of advertising, although it performs
a slightly different function and is not paid by the sponsor. The most effective
way to create publicity is to generate newsworthy situations and events.
Advertising agencies are probably used less by industrial than by consumer
goods marketers to assist in their advertising and publicity. However, this
appears to be changing as: the number of agencies specialising in industrial
accounts increases and the number, which offers promotional services on a
job-shop basis, continues to grow.
In selling products, the promotion mix mostly consists of Direct Selling and
advertising. Being high value items and complex in function, personal contact
with the customer is essential to convince him of the product's quality and
capability.
It is not so, however, with consumer products. In spite of this many consumer
product companies use Direct Selling in concert with advertising, to get
consumers to try their brand and switch over to it. But direct selling cannot
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In the Paperboards & Specialty Papers, Packaging & Printing and Greeting,
Gifting and Stationery businesses, all codes/ standards relating to Standard
Weights & Measures Rules are followed. These requirements are reviewed on a
monthly basis for compliance. None of the products from these businesses is 'banned
in certain markets' or subject of stakeholder concern or public debate.
In the Hotels business, marketing communication is governed by self-regulation
and guided by Indian Society of Advertisers (ISA) Rules and guidelines.
It is reviewed quarterly to ensure compliance with relevant rules and internal
guidelines.
The Hotels business does not sell any product banned in the market nor is the subject
of stakeholder questions or public debate.
Agri-business has not advertised its product and services in a major way and no
voluntary code is therefore required to be followed. Communications and
promotions done so far have been in accordance with the law of the land and have
been duly approved by the Legal Department of the Company.
The business is in the process of establishing a voluntary code, as it has recently
initiated advertising its retail business.
The Leaf Tobacco business provides Corporate Advertisements (e.g. 'With best
compliments from ITC Ltd'. etc.) to souvenirs published by certain organisations.
This is in accordance with the provisions of Cigarettes and Other Tobacco Products
Act (Prohibition of Advertising and Regulation of Trade and Commerce,
Production, Supply and Distribution) Act, 2003. However, the business does
advertise its Organic Agri-inputs. The business also publishes Corporate
Advertisements (stating that ITC-ILTD is India's leading tobacco exporter and
providing contact details) in reputed International Tobacco Journals.
No product advertisement relating to tobacco is published by the business. The
business also maintains a website, 'itc-iltd.com', which provides the details of
Tobaccos grown in different regions of India. All the advertisements published in
various fora are reviewed by the Divisional Management Committee (DMC) every
35
month. Any material change in the contents of the website are also approved by the
DMC.
Lifestyle Retailing business follows the Voluntary Code on Advertising and
Promotion.
The code ensures that the advertisements are not deliberately misleading in terms of
claim and representation, and are not offensive to generally accepted standards of
public decency (nothing vulgar, indecent or repulsive). Glorification of acts of sex
and violence is avoided. References to religion in general and specific religions are
also avoided. It is ensured that advertisements maintain fairness to competition and
the contests and promotions are as per the laws of the land. The terms and conditions
of promotions are vetted by the Legal Department. There is no deriding of race,
caste and community in advertisements or promotion. Packaging of the product is in
accordance with Packaging and Weights & Measures Acts.
Compliance is ensured through on-going review. Each campaign/promotion is vetted
for compliance before release.
The Lifestyle Retailing business does not sell any product that is banned in certain
markets or subject of stakeholder questions or public debate.
Compliance
All the businesses/Divisions of ITC have well-established systems, procedures and
review mechanisms to identify and comply with the laws and regulations concerning
products and services. ITC continued to comply with all applicable statutes.
ITC PERSONAL CARE PRODUCT RANGE
ITC recently entered the Personal Care Products market, which is currently the fief
of Fast Moving Consumer Goods (FMCG) majors Hindustan Lever and Procter &
Gamble.
There is a certain degree of exhaustion in the sector, which has created a window of
opportunity for a new player with the right business plan. Established players in the
FMCG segment have been indulging in a bloody war over pricing, with undercutting
and discounts being the order of the day.
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The size of the Personal Care Product market is about Rs 15,000 crore (Rs 150
billion), with soaps and shampoos alone accounting for Rs 7,000 crore (Rs 70
billion).
In the last three years the segment is estimated to be growing at 8-9 per cent, which
is considered to be among the highest in the Rs 45,000 crore (Rs 450 billion) FMCG
market.
ITC already sells a wide range of products in the FMCG segment but none in
Personal Care. The company's FMCG range now has more than 45 food products,
covering staples, ready-to-cook pastes, confectionery, snacks and biscuits and readyto-eat meals. ITC emerged as the most profitable FMCG company in the second
quarter in the current financial year.
ITC launched an exclusive line of prestige fine fragrances under the Essenza Di
Wills brand in mid 2005. The Essenza Di Wills range of perfumes reinforces ITCs
tradition of bringing world-class products to Indian consumers to enrich the quality
of their lives.
Essenza Di Wills embodies a fine balance between the classic and the
contemporary. The brand personifies exclusivity, innate style, sophistication and
magnetism.
The Essenza Di Wills line has been developed with the assistance of French
perfumery experts to give it the mystique and premium luxury quality that go with
the best of international brands.
Inizio, the signature range under Essenza Di Wills
captures the very essence of attraction between a
man and a woman with its two distinct lines - Inizio
Femme (for women) and Inizio Homme (for men).
The women's fine fragrance revolves around 'Floral
Fruity Musky' notes while the men's fine fragrance
is centered on 'Oriental Woody Fruity' notes. The bath and body care products
share the same olfactory signature of the fine fragrances, to offer a harmonized
grooming experience.
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The latest addition to the Essenza Di Wills portfolio is the Aqua range
for men (Aqua Homme) that offers a distinctive and fresh aquatic
fragrance. The Aqua range includes an After-Shave Lotion, a
Deodorant, a Hair & Body Shampoo and a Bathing Bar.
Essenza Di Wills has significantly enhanced its brand salience in the lifestyle space
by being the associate sponsors of the Wills Lifestyle India Fashion Week, the
country's most premier fashion event that brings together the leading designers of
the country.
The Essenza Di Wills fashion line, specially designed for the brand by one of
Indias leading designers, Varun Bahl, received high appreciation at the SpringSummer show in September 2007. Essenza Di Wills is available at Wills Lifestyle
stores, select John Players stores and select premium outlets.
This comprehensive grooming regimen of 16 products includes in the women's
range, Eau De Parfum, Eau De Toilette, Deodorant, Shower Gel, Shampoo, Bathing
Bar, Body Lotion, Cleansing Milk, Toner and Nourishing Cream while the men's
range comprises Eau De Toilette, After Shave Lotion and Balm, Deodorant, All
Over Shampoo and Bathing Bar. The bath and body care products share the same
olfactory signature of the men and women's fine fragrances, to offer you a
harmonised fragrance experience.
A renowned European Design Firm has designed the packaging for the Inizio line.
The fine fragrances are presented in an elegant three-piece box. The gold and
maroon in the packaging for the women's range, complement each other invoking an
aura that is intriguing and timeless. The interplay between black and bronze in the
packaging for the men's range exudes eternal masculine charm. The clean-cut design
and shape of the bottles expresses the fine harmony of the classic and the
contemporary, a style reminiscent of European signature fragrance lines.
This range has been created by a dedicated team within ITC working with
International designers and fragrance houses, over the past three years and has
undergone extensive product testing in India as well as in Europe, to ensure that the
Indian consumer has a memorable product experience.
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Blossoms
Watercress)
is
&
gentle
Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair
smooth, silky and strong and is ideal for weak, damaged hair.
Each of these shampoos can be complemented with
Fiama Di Wills Polishing Drops conditioner. This
gentle conditioner enriched with Avocado Oil and
Burdock extract promises to make hair shiny, soft and
smooth. It also gives the additional benefits of UV
protection as it contains Sunflower Seed extract, which
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is a natural UV absorber.
The Fiama Di Wills product line also consists of a 3-variant range of transparent
shower gels which are unique as they come with suspended beads:
Mild Dew (enriched with soft beads, peach and avocado extracts) is for soft,
moisturized skin.
Between February and June 2008, ITC expanded its personal care portfolio with the
launch of Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and
Vivel, a range of soaps and shampoos, cater to the specific needs of a wide range of
consumers.
Backed by consumer insights, these ranges offer the unique value proposition of
providing the multiple benefits of Nourishment, Protection and Hydration in every
single product. Thus providing, the ever-discerning consumer, complete care.
The Vivel Di Wills range is available in two variants. Its unique carton pack has
been developed by ITC's design team to provide a novel consumer experience.
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to
hair
and
contains
Extra
Vivel Volume & Bounce is suitable for oily to normal hair and contains
Jojoba Oil and Conditioners. It adds volume and bounce to hair.
Vivel shampoos in line with its aspiration to offer world class products to the Indian
consumer. Vivel shampoos will be available in three variants - Shine & Glow, Soft
& Fresh and Volume & Bounce - customized to meet specific consumer needs.
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Vivel shampoos are conveniently packaged in 200ml and 100 ml bottles and will
also be available in sachets. The extension of the Vivel brand into the shampoo
category follows the successful launch of Vivel soaps in February this year.
Vivel shampoos, enriched with a unique Actipro-K
complex, provide the Power of 3 benefits - Nourishment,
Protection and Hydration. Backed by consumer insight,
this novel value proposition is a result of 4 years of
extensive research and product development at the ITC
R&D Centre. The convergence of these benefits provides the ever discerning
consumer wholesome care for her hair and makes her look beautiful. This belief is
encapsulated in the Vivel tag line, Khoobsurti bas mein, Duniya kadmon mein.
The exquisite fragrances for Vivel products have been developed by leading
international fragrance houses. The soft vignette design and the unique braid design
behind the brand logo are a reflection of the brand philosophy of delivering multiple,
relevant and powerful benefits in each product.
The three Vivel shampoo variants offer clearly differentiated benefits to the
consumer:
Vivel Shine & Glow is suitable for dull to normal hair and is enriched with
Green Tea Extract and Conditioners. It adds shine to hair.
Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra
Conditioners and Soya Protein. It makes hair feel soft and fragrant.
Vivel Volume & Bounce is suitable for oily to normal hair and contains
Jojoba Oil and Conditioners. It adds volume and bounce to hair.
The 200 ml and 100 ml bottles and 8 ml sachets are priced at Rs. 89, Rs. 49 and Rs.
2, respectively.
Apart from Vivel and Vivel Di Wills, ITCs personal care portfolio
comprises Essenza Di Wills, Fiama Di Wills and Superia brands.
In the popular segment, ITC has launched a range of soaps and shampoos under the
brand name Superia.
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RECOMMENDATIONS
On the basis of above findings, a few recommendations can be put forward:
1. It is necessary to have a high level of advertisement during the phase when a
consumer actually purchases a personal care product. For instance during the last
week of the month, just before purchase of monthly quota of their personal care
products in most houses. Such a pulsed advertisement would be sufficient.
2. In order to attract a consumer through advertisements, it is benefits that have to
be highlighted in the advertisements. This is necessary because consumers do
not go through an extensive evaluation process for personal care products.
3. Any promotional scheme is to be displayed at the point of purchase prominently
rather than through advertisements.
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CONCLUSION
In todays dynamic and competitive business environment, marketers should
understand the changing perceptions and needs of consumers. These perceptions
keep on changing with time. As the competition is so tough that marketers keeps on
increasing customer expectations by providing them better quality products. Once
consumer experience a particular set of level, he/she dose not want to move below
that level.
The personal care product market has low involvement purchase decision. The
consumers are not brand loyal. They keep on changing their brands frequently. So it
is important for a marketer to keep his product alive in the market, otherwise the
company will be kicked out of the market. We can take the example of the Camay,
which could not catch the market pulse, and today it is out of the market.
The following attributes are essential for the personal product segment:
Fragrance and freshness are two most important attributes for the soap. So the
manufactures should lay their main emphasis on these two attributes. Some soap
is not doing well because they dont possess these qualities in their soaps. We
can take the example of Denim, which is unsuccessful soap, as it does not fulfill
these two essentialities.
Price is another important attribute as the market looks for the value for money.
People are price conscious. Not much people go for the premium range.
The consumers also consider foam and deodorant. Consumers have a psychology
towards foam. The foam gives a feeling of cleaning the body well. Lot of people
doesnt like lifebuoy, because it doesnt generate foam. Now a days people are
also looking for deodorant in the soap. The flow of lot of deodorant sprays has
also encouraged the peoples to look for deodorant in the soaps.
Apart from these attributes we find that promotional schemes are very important in
catching the attention of consumers. That is why we are seeing that lots of
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companies are coming with new promotional schemes. In survey also lot of people
have said that promotional schemes tends to fluctuate from one brand to other brand.
It has been revealed during the survey that advertisement plays an important role in
positioning of personal care products. It helps in creating brand awareness among
the consumers. This is advertisement, which makes consumers aware of free offers
and discounted price.
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BIBLIOGRAPHY
Books
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Magazines
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India Today
The Week
Business Today
Newspapers
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Economics Times
Times of India
Financial Express
Websites
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www.google.com
www.itcportal.com
www.fashionproducts.com/personal-care-overview.html
www.indiantelevision.com
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