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KLS's INSTIT0TE 0F NANAuENENT EB0CATI0N & RESEARCB, BELuA0N.
Page

CHAPTER ONE

OEXECUTIVE SUMMARY
OMCG INDUSTRY
OAIR OIL INDUSTRY
OAJAJ CORP LTD

KLS's INSTIT0TE 0F NANAuENENT EB0CATI0N & RESEARCB, BELuA0N. Page
EXECUTIVE SUMMARY

India`s MCG sector is the Iourth largest sector in the economy and creates employment
Ior more than three million people in downstream activities. Its principal constituents are
ousehold Care, Personal Care and ood & everages. India`s MCG sector is the Iourth largest
sector in the economy and creates employment Ior more than three million people in downstream
activities. Its principal constituents are ousehold Care, Personal Care and ood & everages.
air care is largest sector in the cosmetics sector, based on the application, hair care
products can be classiIied as: hair oil, shampoo, hair color, hair cream. air oil accounts Ior the
major share in the hair care segment. The market is Iragmented with a number oI regional
players in the unorganized sector. The total hair care market was estimated at Rs. 91,500mn.
Bajaj Corp Ltd (CL), incorporated in April 2008 and part oI the Shishir ajaj Group oI
companies, is one oI India`s leading producers oI hair oils.
Trade promotions are temporary price cuts that manuIacturers oIIer retailers to encourage
them to reduce retail prices. While trade promotion spending as a percentage oI marketing
budget has increased dramatically. The project undertaken by me is to study how eIIectively the
trade promotion strategies help the company to push the product in the market. The title assigned
to me is 'To evaluate the trade promotion Ior retailers oI AJAJ CORP LTD. in ELGAUM
city.
Main objectives
O To study the MCG industry.
O To study the hair oil industry.
O To know the brand preIerence oI retailers towards hair oils.
O To study various trade promotion strategies adopted by AJAJ CORP LTD. Ior
retailers.
O To suggest the suitable trade promotion strategies to AJAJ CORP LTD.
imitations
O The study is limited to elgaum city.
O The study is limited to AJAJ CORP LTD products.
O The study was purely conIined to 100 samples. It may not be applicable to entire
population.

MCG INDUSTRY
Products which have a quick turnover, and relatively low cost are known as ast Moving
Consumer Goods (MCG). MCG products are those that get replaced within a year. Examples
oI MCG generally include a wide range oI Irequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. MCG
may also include pharmaceuticals, consumer electronics, packaged Iood products, soIt drinks,
tissue paper, and chocolate bars.

India`s MCG sector is the Iourth largest sector in the economy and creates employment
Ior more than three million people in downstream activities. Its principal constituents are
ousehold Care, Personal Care and ood & everages. The total MCG market is in excess oI
Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain
a high growth rate. MCG Industry is characterized by a well established distribution network,
low penetration levels, low operating cost, lower per capita consumption and intense competition
between the organized and unorganized segments.

The Rs 85,000-crore Indian MCG industry is expected to register a healthy growth in
the third quarter oI 2008-09 despite the economic downturn. The industry is expected to register
a 15 growth in Q3 2008-09 as compared to the corresponding period last year. Unlike other
sectors, the MCG industry did not slow down since Q2 2008. The industry is doing pretty well,
bucking the trend. As it is meeting the every-day demands oI consumers, it will continue to
grow. In the last two months, input costs have come down and this will reIlect in Q3 and Q4
results.

Market share movements indicate that companies such as Marico Ltd and Nestle India
Ltd, with domination in their key categories, have improved their market shares and
outperIormed peers in the MCG sector. This has been also aided by the lack oI competition in
the respective categories. Single product leaders such as Colgate Palmolive India Ltd and
ritannia Industries Ltd have also witnessed strength in their respective categories, aided by
innovations and strong distribution. Strong players in the economy segment like Godrej
Consumer Products Ltd in soaps and Dabur in toothpastes have also posted market share
improvement, with revived growth in semi-urban and rural markets.

SWOT Analysis of MCG industry

Strengths:
W Low operational costs
W Presence oI established distribution networks in both urban and rural areas
W Presence oI well-known brands in MCG sector

Weaknesses:
W Lower scope oI investing in technology and achieving economies oI scale, especially in small
sectors
W Low exports levels
WMe-too products, which illegally mimic the labels oI the established brands. These products
narrow the scope oI MCG products in rural and semi-urban market.

Opportunities:
W Untapped rural market
W Rising income levels, i.e. increase in purchasing power oI consumers
W Large domestic market- a population oI over one billion.
W Export potential
W igh consumer goods spending

Threats:
W Removal oI import restrictions resulting in replacing oI domestic brands
W Slowdown in rural demand
W Tax and regulatory structure

INDUSTRY CATEGORY AND PRODUCTS

HOUSEHOD CARE

Personal Wash:-
The market size oI personal wash is estimated to be around Rs. 8,300 Cr. The personal
wash can be segregated into three segments: Premium, Economy and Popular. The penetration
level oI soaps is 92 per cent. It is available in 5 million retail stores, out oI which, 75 per cent are
in the rural areas. UL is the leader with market share oI 53 per cent; Godrej occupies second
position with market share oI 10 per cent. With increase in disposable incomes, growth in rural
demand is expected to increase because consumers are moving up towards premium products.
owever, in the recent past there has not been much change in the volume oI premium soaps in
proportion to economy soaps, because increase in prices has led some consumers to look Ior
cheaper substitutes.


Detergents:-
The size oI the detergent market is estimated to be Rs. 12,000 Cr. ousehold care
segment is characterized by high degree oI competition and high level oI penetration. With rapid
urbanization, emergence oI small pack size and sachets, the demand Ior the household care
products is Ilourishing. The demand Ior detergents has been growing but the regional and small
Unorganized players account Ior a major share oI the total volume oI the detergent market. In
washing powder UL is the leader with 38 per cent oI market share. Other major players are
Nirma, enkel and Proctor & Gamble.

PERSONA CARE

Skin Care:-
The total skin care market is estimated to be around Rs. 3,400 Cr. The skin care market is
at a primary stage in India. The penetration level oI this segment in India is around 20 per cent.
With changing liIe styles, increase in disposable incomes, greater product choice and
availability, people are becoming aware about personal grooming. The major players in this
segment are industan Unilever with a market share oI ~54 per cent, Iollowed by CavinKare
with a market share oI ~12 per cent and Godrej with a market share oI ~3 per cent.

Hair Care:-
The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care market
can be segmented into hair oils, shampoos, hair colorants & conditioners, and hair gels. Marico
is the leader in air Oil segment with market share oI 33 per cent; Dabur occupies second
position at 17 per cent.

Shampoos:-
The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the penetration
level oI only 13 per cent in India. Sachet makes up to 40 per cent oI the total shampoo sale. It has
low penetration level even in metros. Again the market is dominated by UL with around ~47
per cent market share; P&G occupies second position with market share oI around ~23 per cent.
AntidandruII segment constitutes around 15 per cent oI the total shampoo market. The market is
Iurther expected to increase due to increased marketing by players and availability oI shampoos
in aIIordable sachets.

Oral Care:-
The oral care market can be segmented into toothpaste - 60 per cent; toothpowder - 23
per cent; toothbrushes - 17 per cent. The total toothpaste market is estimated to be around Rs.
3,500 Cr. The penetration level oI toothpowder/toothpaste in urban areas is three times that oI
rural areas. This segment is dominated by Colgate-Palmolive with market share oI 49 per cent,
While UL occupies second position with market share oI 30 per cent. In toothpowders market,
Colgate and Dabur are the major players. The oral care market, especially toothpastes, remains
under penetrated in India with penetration level 50 per cent.

OOD & BEVERAGES

ood Segment:-
The Ioods category in MCG is gaining popularity with a swing oI launches by UL,
ITC, Godrej, and others. This category has 18 major brands aggregating Rs. 4,600 Cr. Nestle and
Amul slug it out in the powders segment. The Iood category has also seen innovations like
soIties in ice creams, ready to eat rice by UL and pizzas by both GCMM and Godrej
Pillsbury.

Tea:-
The major share oI tea market is dominated by unorganized players. More than 50 per
cent oI the market share is capture by unorganized players. Leading branded tea players are UL
and Tata Tea.

Coffee:-
The Indian beverage industry Iaces over supply in segments like coIIee and tea.
owever, more than 50 per cent oI the market share is in unpacked or loose Iorm. The major
players in this segment are Nestle, UL and Tata Tea.

GROWTH PROSPECT
arge Market
India has a population oI more than 1.150 illions which is just behind China. According
to the estimates, by 2030 India population will be around 1.450 illion and will surpass China to
become the World largest in terms oI population. MCG Industry which is directly related to the
population is expected to maintain a robust growth rate.


ADVANTAGES TO THE SECTOR

Governmental Policy
Indian Government has enacted policies aimed at attaining international competitiveness
through liIting oI the quantitative restrictions, reducing excise duties, and automatic Ioreign in-
vestment and Iood laws resulting in an environment that Iosters growth. 100 per cent ex-port
oriented units can be set up by government approval and use oI Ioreign brand names is now
Ireely permitted.

Central & State Initiatives
Recently Government has announced a cut oI 4 per cent in excise duty to Iight with the
slowdown oI the Economy. This announcement has a positive impact on the industry. ut the
beneIit Irom the 4 per cent reduction in excise duty is not likely to be uniIorm across MCG
categories or players. The changes in excise duty do not impact cigarettes (ITC, GodIrey
Phillips), biscuits (ritannia Industries, ITC) or ready-to-eat Ioods, as these products are either
subject to speciIic duty or are exempt Irom excise. Even players with manuIacturing Iacilities
located mainly in tax-Iree zones will also not see material excise duty savings. Only large
MCG-makers may be the key ones to bet and gain on excise cut.

oreign Direct Investment (DI)
Automatic investment approval (including Ioreign technology agreements within
speciIied norms), up to 100 per cent Ioreign equity or 100 per cent Ior NRI and Overseas
Corporate odies (OCs) investment, is allowed Ior most oI the Iood processing sector except
malted Iood, alcoholic beverages and those reserved Ior small scale industries (SSI). There is a
continuous growth in net DI InIlow. There is an increase oI about 150 per cent in Net InIlow
Ior Vegetable Oils & Vanaspati Ior the year 2008.

KLS's INSTIT0TE 0F NANAuENENT EB0CATI0N & RESEARCB, BELuA0N. Page 8
MARKET OPPORTUNITIES

Vast Rural Market
Rural India accounts Ior more than 700 Million consumers, or ~70 per cent oI the Indian
population and accounts Ior ~50 per cent oI the total MCG market. The working rural
population is approximately 400 Millions. And an average citizen in rural India has less than halI
oI the purchasing power as compare to his urban counterpart. Still there is an untapped market
and most oI the MCG Companies are taking diIIerent steps to capture rural market share. The
market Ior MCG products in rural India is estimated ~ 52 per cent and is projected to touch 60
per cent within a year. industan Unilever Ltd is the largest player in the industry and has the
widest market coverage.

Export - ~everaging the Cost Advantage
Cheap labor and quality product & services have helped India to represent as a cost ad-
vantage over other Countries. Even the Government has oIIered zero import duty on capital
goods and raw material Ior 100 export oriented units. Multi National Companies out-source its
product requirements Irom its Indian company to have a cost advantage. India is the largest
producer oI livestock, milk, sugarcane, coconut, spices and cashew apart Irom being the second
largest producer oI rice, wheat, Iruits & vegetables. It adds a cost advantage as well as easily
available raw materials.

Sect oral Opportunities
Major Key Sect oral opportunities Ior Indian MCG Sector are mentioned below:

Dairy Based Products
India is the largest milk producer in the world, yet only around 15 per cent oI the milk is
processed. The organized liquid milk business is in its inIancy and also has large long-term
growth potential. Even investment opportunities exist in value-added products like desserts,
puddings etc.

Packaged ood
Only about 10-12 per cent oI output is processed and consumed in packaged Iorm, thus
highlighting the huge potential Ior expansion oI this industry.

Oral Care
The oral care industry, especially toothpastes, remains under penetrated in India with
penetration rates around 50 per cent. With rise in per capita incomes and awareness oI oral
hygiene, the growth potential is huge. Lower price and smaller packs are also likely to drive
potential up trading.

Beverages
Indian tea market is dominated by unorganized players. More than 50 oI the market
share is capture by unorganized players highlighting high potential Ior organized players.

Hair Oil Industry
The estimated INR 1, 161 bn MCG market in India, hair care products
make up INR 91.5 bn, or 8, oI the total. The 14 growth rate in hair care
industry is also slightly higher than the overall industry average oI 13.4.
Shampoo and hair oils, including coconut oils, continue to be the key components
oI this segment.

Hair oil market

Perfumed hair oil segment

MCG
Rs.1, 16,100 mn
air Care
Rs. 91,500 mn
PerIumed oil
Rs.29,300mn
(32)
Coconut oil
Rs.21,100mn
(23.1)
air conditioners
Rs. 800mn
(0.9)

air dyes
Rs.11,900mn
(13)
Shampoo
Rs.28,400mn
(31)
Coconut
based oils
(51)
eavy amla
based oils
(15)
Cooling oil
(12)
Light hair oil
(14)
Others
(8)
8 markeL share

Recent growth in the hair oil industry has primarily been the result oI volume growth due
to increased distribution and higher per dealer oII takes. Rural distribution campaigns by hair oil
manuIacturers and dealers have helped to greatly expand the geographic coverage oI hair oil
products into the rural parts oI the country. The price increase in average prices Ior hair oil
products is reIlective oI the shiIt to higher quality branded products resulting Irom a more
aIIluent Indian consumer population.

a) ight Hair Oil Segment
The light hair oil segment has experienced signiIicant growth in recent years as
consumers opt Ior lighter, more modern hair oil products. The light hair oil segment recorded
sales oI INR 6,960 mn in Y10, which was primarily the result oI dealer expansion and
higher throughputs resulting in higher volumes sold. An increase in average price has also
contributed to higher sales value. The light hair oil segment is dominated by three key players,
namely ajaj Almond Drops and two other brands which together accounted Ior ~83.8 oI sales
volume. The high degree oI concentration among the competition in the light hair oil segment is
similar to what is Observed in other segments oI the hair oil industry.
b) Heavy Amla Hair Oils
The heavy amla hair oil segment has seen strong growth in recent years. The heavy amla
hair oil market is primarily an urban driven market and tends to be geographically concentrated
in the northern parts oI the country. The heavy amla hair oil segment recorded sales oI INR 7,
370 mn in Y10, representing a growth rate oI 4.7 Irom Y09. Sales growth was primarily the
result oI higher volume and per dealer oII take increased during Y10. The heavy amla hair oil
segment is largely dominated by one key player, with several players competing Ior higher
market share. Although the leader continued its dominance in Y10, ajaj rahmi Amla
registered the highest gains in this segment, growing its market share by 0.2 over Y09.
c) Cooling Oils
Cooling Oils have emerged as an important segment in the Indian hair oil market.
Cooling oils are hair oils meant Ior cooling the scalp during the harsh summer months. The
ingredients in the cooling oils cause immediate relieI by cooling the scalp. The CAGR oI
the category has been 28 over the last 4 years. The cooling oil category is now nearly INR
7,000 mn in the Iinancial year ended March 31, 2010.

BA1A1 CORP INDIA TD.
Bajaj Corp Ltd (CL), incorporated in April 2008 and part oI the Shishir ajaj Group oI
companies, is one oI India`s leading producers oI hair oils. Oral care Iorms a very small part oI
the overall business. The Ilagship brand, ajaj Almond Drops, is the market leader in the light
hair oil segment with 50 market share in CY09. It markets hair oil under the brand names ajaj
Almond Drops, ajaj rahmi Amla, ajaj Amla Shikakai and ajaj Jasmine air Oil. CL is
the third largest producer oI hair oils and the largest producer oI light hair oils. It also markets
oral care products under the brand name ajaj lack Tooth Powder. CL derives majority oI its
revenues Irom a single product, ajaj Almond Drops. It is value-added light hair oil
and commands a premium.

The company`s production Iacilities are located at 1) Parwanoo, imachal Pradesh 2)
Dehradun, Uttarakhand and 3) Paonta Sahib, imachal Pradesh. Commercial production at
Poanta Sahib acility commenced since March, 2010; with this, the production capacity Ior light
hair oil has increased Irom 39 million litres per annum (MLPA) to 74 MLPA. In addition, the
company also engages third-party manuIacturers at Parwanoo and Udaipur Ior producing hair
oils and oral care products respectively. These third-party Iacilities have a combined installed
capacity oI 9 MLPA. or Y 2010, the combined production capacity Ior the entire company and
third-party operated production Iacilities was 83 MLPA. CL has strong distribution network
and the map below shows the locations of BCs stockists across India. ajaj Almond Drops is
the market leader in the light hair oil segment with 55 market share in Y10.

Diversification of revenue: The Company plans to launch 4 new products in the personal care
segment over the next year. It is also looking at inorganic growth opportunities in MCG and
hair oil markets as one oI the avenues Ior its Iuture growth. New product launches and
acquisition will enable the company to diversiIy its revenue base both within the hair oil segment
and also in the personal care segment. This will reduce the revenue dependence on Almond
Drops and also aid revenue growth.

Wide distribution reach: CL has established a strong distribution network oI 4,600
distribution stock points Ior direct distribution and 8,900 wholesalers Ior indirect distribution oI
its products. It is estimated that the company`s products are sold in ~1.56 mn retail outlets across
India, which is ~28.7 oI the total hair oil outlets in India. CL`s distribution outlets are
strategically spread across India in order to compete on a national scale. The current distribution
channel oI the company is comparable to that oI much larger peers. owever, the same has not
been Iully utilized largely due to a single product driven revenue model. This is evident Irom low
revenue per distributor or retail outlet. The company is geared to beneIit Irom its established
distribution network. This will entail existing brands and new products planned to be launched
this year. We believe, the company`s wide distribution reach will aid to achieve optimal product
penetration going Iorward and increase its revenues and proIit margin. The company's
distribution network is supported by a comprehensive management inIormation system (MIS)
whereby sales reports are generated by on-the-ground sales Iorce.

Increased focus on rural markets: CL`s Iocus on rural markets Ior its products will allow the
company to beneIit Irom growing MCG sector where, as a result oI diIIiculties with
distribution, penetration oI branded MCGs has been slow to develop. The market Ior hair oils in
rural India is growing due to the rural populations increase in disposable income which is related
to Iarmers shiIting to cash crops, rural employment generation schemes, general economic
growth as well as a general monetary trickle-down eIIect Irom increased urbanization. The
company intends to work towards increased Iocus on rural markets by providing rural consumers
with an appropriate value proposition including price, positioning, and packaging.
Tax Benefits: CL's manuIacturing Iacilities are located in tax-Iree
zones. The company enjoys exemptions Irom excise duty Ior 10 years
Irom the Y09 and income taxes Ior the Iirst Iive years and a
concessional income tax rate Ior the Iollowing Iive years. The capacity
utilisation at these Iacilities is less than 30 and is adequate to
service the expected growth over the next 3 to 5 years.
Success of planned expansion: There are no details available regarding the new products to be
launched and the acquisition Ior which the money is being raised. II perIormances oI the new
products and acquired business are not successIul, they might aIIect the company`s perIormance
adversely.

Revenue dependence on a single product: CL depends on Almond Drops Ior a signiIicant
portion oI its sales. or Y10, Almond Drops hair oil contributed 92.4 oI total sales. Any drop
in the sales oI Almond Drops will adversely aIIect company`s market share, business and
Iinancial perIormance.

No long term contract with suppliers: CL does not use any hedging techniques to minimize
the impacts oI changes in raw material prices and also lacks any exclusive supply arrangements
with its suppliers. eing a player in highly competitive MCG industry any shortIall oI or
increase in raw material cost, which the company may not be able to eIIectively pass on to the
consumers might aIIect margins.

Highly competitive MCG market: CL operates in a highly competitive market and Iaces
stiII competition Irom other big and regional players. The increased competition may aIIect the
company`s margins. Supermarket and hypermarket chains emerging across the country will also
put pressure on pricing and margins as volume purchases Irom large-scale organized retail chains
considerably increases their negotiating position, especially in terms oI pricing and credit terms.

Brands of BA1A1 corp ltd
Bajaj almond drop:
ajaj Almond Drops is the key brand in the kitty oI ajaj Corp Ltd and is the
leading brand in the light hair oil category. It is India`s most premium hair oil brand. In the years
to come it should be a player to reckon within the hair care business. Today ajaj Almond Drops
is the Iastest growing brand in the hair oil category growing in double digits year-on-year. It is
already the largest brand in the light hair oil category and currently owns a major share oI this
market. eing light, non-sticky hair oil, it provides the nourishment without making you look
Chipku`. Made Irom real Almond extracts, ajaj Almond Drops has 300 more Vitamin - E
than coconut oil which helps nourish the hair roots and makes them strong and healthy. Apart
Irom this, the Almond extracts absorbed by the hair helps maintain the moisture thus leaving
your hair incredibly Iresh and soIt while naturally bringing out the beauty oI hair.
Today`s youth preIers ajaj Almond Drops as it IulIills the dual beneIit oI do-good` due to the
almond nourishment and look-good` because oI its Non-Sticky Ieel. Thus giving you ease oI
styling. It comes in a unique glass bottle which helps to retain the aroma, the essential qualities
oI Almond extract & Vitamin E.
Almond Oil: eneIits
O Almond oil is one oI the most popular ingredients in skin care and hair care products.
This oil is extracted Irom sweet almond seeds and is commonly used as the base oil in
aromatherapy and body massages.
O Almond oil has great health beneIits in terms oI healthy skin. Almonds prevent premature
appearance oI wrinkles and dry skin as well. A regular massage with almond oil will help
you to get a glowing and Ilawless complexion.
O Almond oil is extremely useIul Ior treating all sorts oI hair problems as well.
Bajaj Brahmi Amla Hair Oil:
ajaj rahmi Amla air oil is one oI the brands with longest heritage in India Irom the
house oI ajaj and has been a leading player in the Amla market Ior over 75 years. A hugely
trusted brand with a very loyal consumer base, today it is among the top 3 brands in its category.
Over the years, ajaj rahmi Amla has withstood severe competition but managed to retain its
ground due to its superior quality. The one thing that makes this brand exclusive is the unique
combination oI Amla and rahmi. rahmi, is used in traditional Ayurvedic medicine. esides
being a mind tonic, it is known to be a hair growth stimulant and helps to make them thick. At
the same time Amla nourishes hair and makes them strong and black Today ajaj rahmi Amla
is a trusted name in every household and preIerred choice Ior a discerning customer.

rahmi Amla: eneIits
O rahmi is a popular Ayurvedic herb with an ancient history and has been a revered
household name in India Ior over 3000 years. According to Ayurvedic Text rahmi is
known as a most powerIul brain Iood. rahmi is a perennial creeping plant Iound through
out India.
O Traditionally, it has been used as a brain tonic to enhance memory development, learning,
and concentration. rahmi also helps in giving mental calmness and reducing stress.
O Ayurvedic rahmi oil has been traditionally used as a stimulant Ior hair growth, as it acts
as a hair-Iollicle rejuvenator. It rejuvenates your hair Irom the roots thus Iacilitating hair
growth and preventing hair loss keeping your hair black, long and healthy Iorever.
O Regular massage oI Ayurvedic brahmi hair oil` not only nourishes your hair but also
stimulates your brain

Bajaj Amla Shikakai Hair Oil:
In 2006, with the launch oI ajaj Amla Shikakai; the company entered into a new
segment oI low price Amla air Oil. The main aim was to provide a value added Amla air oil
to the loyal and value conscious consumers at an aIIordable price which would clearly
diIIerentiate it Irom other existing brands. With ajaj Amla Shikakai, we successIully increased
our presence in air oil category. The brand has grown year-on-year and is creating its base oI
loyal customers. In Ayurveda, Shikakai is well known Ior its beneIits in reducing the dandruII. T
hus ajaj Amla Shikakai air Oil helps to detangle hair and reduce dandruII making your hair
soIt and silky while natural goodness oI Amla strengthens your hair Irom within and makes them
black.
Shikakai: eneIits
O Shikakai is a Sanskrit word which literally means "Iruit Ior hair". It has been traditionally
used as a natural shampoo in India Ior centuries.
O The Iruit pods, leaves and bzark oI Shikakai (Acacia Concinna) are dried, powdered to
Iorm a vital ingredient Ior hair oil or shampoos.
O This Ayurvedic herb can be used as natural shampoo. It has a natural low p and very
mild and ideal to wash hair. Shikakai in its various Iorm can be used to strengthen hair
roots, hair growth and treating dandruII.

Bajaj 1asmine Hair Oil:
It contains the lingering Iragrance oI Jasmine which gives beautiIul aroma to hair
throughout the day. Daily usage makes hair healthy, beautiIul and Iragrant.
Jasmine: eneIits
O Jasmine oil is most oIten used to cure dry or sore skin. When you apply it on your hair it
can also provide some relieI against dry, itchy scalp. It can also help heal skin inIections
as it can Iunction as an antiseptic agent.
O Some Iorms oI Indian head massage will also use Jasmine oil on the scalp, not only Ior its
aIIects on the skin, but also because it's scent is believed to have a soothing eIIect and
will relax the nervous system.
O Jasmine oil has a long history and besides Indian Ayurveda, other ancient civilizations
also discovered its positive eIIects on human. The ancient Egyptians, Ior example, used it
as a cure against headaches and insomnia, while the Chinese used the scent oI Jasmine to
clean the air in rooms that housed sick people. It is also believed that Jasmine is both a
natural aphrodisiac and and an anti-depressant.


CHAPTER TWO
ORESEARC METODOLOGY
OYPOTESES
OANALYSIS & INTERPRETATION
OYPOTESES TESTING

RESEARCH METHODOOGY
TITE: '1o evaluate the trade promotion for retailers of BA1A1 hair oils in
BELCAUM city"
OB1ECTIVES:
O To study the MCG industry.
O To study the hair oil industry.
O To know the brand preIerence oI retailers towards hair oils.
O To study various trade promotion strategies adopted by AJAJ CORP LTD. Ior retailers.
O To suggest the suitable trade promotion strategies to AJAJ CORP LTD.
METHODOOGY
The methodology adopted to IulIill the objectives oI the project is as Iollows.
O Observation
O Interview
DATA COECTION APPROACH
PRIMARY SOURCES
O Questionnaire
O Interaction with sales person
O Interaction with distributor

SECONDARY SOURCES
O Related inIormation Irom internet
O Text books
O Journals

SAMPING TECHNIQUES
POPULATION: Retailers situated in ELGAUM city (700)

SAMPLE SIZE: 00 Retailers

SAMPLE AREA: ELGAUM City

SAMPLING METOD: Convenience sampling

HYPOTHESES

) H
0
: Less than or equal 60 oI retailers preIer AJAJ hair oils as a brand preIerence.
H
: More than 60 oI retailers preIer AJAJ hair oils as a brand preIerence.

2) H
0
: Less than or equal 60 oI retailers are satisIied with AJAJ hair oils Ior providing
Trade promotion.
H
: More than 60 oI retailers are satisIied with AJAJ hair oils Ior providing trade
promotion.

ANAYSES & INTERPRETATION

1) What kind oI business/outlet do you own?

Table

requency Percent
Valid
Percent
Cumulative
Percent
Valid kirana shop 30 30.0 30.0 30.0
Medical 28 28.0 28.0 58.0
super store 4 4.0 4.0 62.0
general store 36 36.0 36.0 98.0
Others 2 2.0 2.0 100.0
Total 100 100.0 100.0

igure1

Interpretation

Chart indicates that 30, oI the respondents are in the business oI kirana shop, 28, oI them in
medicals, 4, oI them in super stores, 36, oI them in general stores, 2, oI them in others

2) Since how long you have been in this business?

Table2

requency Percent
Valid
Percent
Cumulative
Percent
Valid less than 2 year 6 6.0 6.0 6.0
2-4 year 6 6.0 6.0 12.0
4-6 year 38 38.0 38.0 50.0
more than 6
year
50 50.0 50.0 100.0
Total 100 100.0 100.0

igure2

Interpretation
Chart indicates that 6, oI respondents are Irom less than 2 year, 6, oI them Irom 2-4 year,
38, oI them Irom 4-6 year, 50, oI them Irom more than 6 years.


3) What brands do you stock & sell? (you can tick more than one)
Table3
Products Yes No Percent Total
AJAJ hair oil 100 000 100 00
DAUR hair oil 100 000 100 00
PARACUTE 90 10 90 00
KEO KARPIN 94 06 94 00
OTERS 54 46 54 00

igure3

Interpretation
Chart indicates that 100 oI respondents they stock & sell AJAJ & DAUR hair oils. 90,
94 oI them stock & sell PARACUTE & KEO KARPIN respectively. 54 oI them stock
others like Amrit varsha, KL, SESA, air & Care.

a[a[ uabur arachuLe keo karpln CLhers

no
?es

4) Which brand do you preIer to sell Iirst? (tick only one)

Table4

requency Percent
Valid
Percent
Cumulative
Percent
Valid AJAJ 6 6.0 6.0 6.0
DAUR 20 20.0 20.0 26.0
Parachute 65 65.0 65.0 91.0
others 9 9.0 9.0 100.0
Total 100 100.0 100.0

igure4

Interpretation
Chart that 6, oI respondents preIer to sell Iirst bajaj, 20, oI them preIer dabur, 65, oI them
preIer parachute, 9 oI them preIer other brand.

5) Why do you preIer Iirst to sell that brand?

Table5

requency Percent
Valid
Percent
Cumulative
Percent
Valid demand 76 76.0 76.0 76.0
margin 2 2.0 2.0 78.0
oIIers schemes 14 14.0 14.0 92.0
extra units 8 8.0 8.0 100.0
Total 100 100.0 100.0

igure5

Interpretation
Chart indicates that 76, oI respondents preIer to sell Iirst because oI Demand, 2, oI them sell
Iirst because oI Margin, 14, oI them sell Iirst because oI OIIers & Schemes, 8, oI them sell
Iirst because oI Extra units on purchase quantity.

6) What kind oI beneIits do you receive Irom the company by the way oI trade promotion?

Table6

requency Percent
Valid
Percent
Cumulative
Percent
Valid discounts 68 68.0 68.0 68.0
OIIers 31 31.0 31.0 99.0
Others 1 1.0 1.0 100.0
Total 100 100.0 100.0

igure6

Interpretation

Chart indicates that 68, oI respondents receive beneIits by the way oI discounts, 31, oI them
receive beneIits by the way oI oIIers, 1, oI them receive beneIits by the way oI others.

7) Rank the Iollowing tools on the basis oI their importance Ior trade promotion.

7.1) TRADE ALLOWANCE

Table7.

requency Percent
Valid
Percent
Cumulative
Percent
Valid high 22 22.0 22.0 22.0
medium 46 46.0 46.0 68.0
low 32 32.0 32.0 100.0
Total 100 100.0 100.0

igure7.1

Interpretation

Chart that 22, oI respondents given high importance to the trade allowance, 46, oI them
given medium importance, 32 oI them given low importance.

7.2) TRADE CONTEST

Table7.2

requency Percent
Valid
Percent
Cumulative
Percent
Valid high 8 8.0 8.0 8.0
medium 46 46.0 46.0 54.0
low 46 46.0 46.0 100.0
Total 100 100.0 100.0

igure7.2

Interpretation

Chart indicates that 8, oI respondents given high importance on trade contest, 46, oI them
given medium importance, remaining 46 oI them given low importance.

7.3) PRICE DISCOUNTS

Table7.3

requency Percent
Valid
Percent
Cumulative
Percent
Valid high 76 76.0 76.0 76.0
medium 20 20.0 20.0 96.0
low 4 4.0 4.0 100.0
Total 100 100.0 100.0

igure7.3

Interpretation
Chart indicates that 76, oI respondents given high importance on price discounts 20, oI them
given medium importance, 4 oI them given low importance.

7.4) QUANTITY DISCOUNT

Table7.4

requency Percent
Valid
Percent
Cumulative
Percent
Valid high 68 68.0 68.0 68.0
medium 30 30.0 30.0 98.0
low 2 2.0 2.0 100.0
Total 100 100.0 100.0

igure7.4

Interpretation

Chart indicates that 68, oI respondents given on quantity discounts 30, oI them given
medium importance, 2, oI them given low importance.

7.5) POINT O PURCASE (Window display)

Table7.5

requency Percent
Valid
Percent
Cumulative
Percent
Valid igh 16 16.0 16.0 16.0
Medium 30 30.0 30.0 46.0
Low 54 54.0 54.0 100.0
Total 100 100.0 100.0

igure7.5

Interpretation

Chart indicates that 16, oI respondents given on Points oI Purchase, 30, oI them given
medium importance, 54 oI them given low importance.

8) What additional trades promotional activities do you Ieel the company should provide?

Table8

requency Percent
Valid
Percent
Cumulative
Percent
Valid giIts 63 63.0 63.0 63.0
certiIicate Irom the
company
8 8.0 8.0 71.0
extra margin 29 29.0 29.0 100.0
Total 100 100.0 100.0

igure8

Interpretation

Chart indicates that 63, oI respondents Ieel that the company should provide additional trade
promotional activities like giIts, 8, oI them Ieel should give certiIicate Irom the company, 29,
give oI them Ieel should give extra margins.

9) Rank your satisIaction level with respect to the trade promotion provided by the hair oil
marketing company?
9.1) AJAJ CORP LTD

Table9.

requency Percent
Valid
Percent
Cumulative
Percent
Valid highly
satisIied
36 36.0 36.0 36.0
satisIied 64 64.0 64.0 100.0
Total 100 100.0 100.0

igure9.1

Interpretation

Chart indicates that 36, oI respondents are highly satisIied with respect to the trade promotion
provided by the AJAJ CORP LTD. And remaining 64 oI respondents are satisIied.

9.2) DAUR

table9.2

requency Percent
Valid
Percent
Cumulative
Percent
Valid highly satisIied 38 38.0 38.0 38.0
satisIied 56 56.0 56.0 94.0
neither satisIied nor
dissatisIied
6 6.0 6.0 100.0
Total 100 100.0 100.0

igure9.2

Interpretation

Chart indicates that 38, oI respondents are highly satisIied with respect to the trade promotion
provided by the DAUR hair oil marketing company, 56 oI them are satisIied & remaining
6, oI them are neither satisIied nor dissatisIied.

9.3) PARACUTE

Table9.3

requency Percent
Valid
Percent
Cumulative
Percent
Valid highly
satisIied
58 58.0 58.0 58.0
satisIied 42 42.0 42.0 100.0
Total 100 100.0 100.0

igure9.3

Interpretation

Chart indicates that 58 oI respondents are highly satisIied &remaining 42 oI them are
satisIied with respect to the trade promotion provided by the PARACUTE hair oil marketing
company.

9.4) KEO KARPIN

Table9.4

requency Percent
Valid
Percent
Cumulative
Percent
Valid highly satisIied 26 26.0 26.0 26.0
satisIied 56 56.0 56.0 82.0
neither satisIied nor
dissatisIied
16 16.0 16.0 98.0
dissatisIied 2 2.0 2.0 100.0
Total 100 100.0 100.0

igure9.4

Interpretation
Chart indicates that 26, oI respondents are highly satisIied, 56, oI them are satisIied, 16, oI
them are neither satisIied nor dissatisIied & 6, oI them are dissatisIied with respect to the trade
promotion provided by the KEO KARPIN hair oil marketing company.


HYPOTHESES TESTING
) H
0
: Less than or equal to 60 oI retailers preIer AJAJ hair oils as a brand preIerence.
H
: More than 60 oI retailers preIer AJAJ hair oils as a brand preIerence.

O Sample size-100

O ound-06 (6 number oI retailers preIer as brand preIerence )

O Method-Z test

Standard error oI proportion

- `-p\|p(1-p)|/n-1

- \0.6(1-0.6)/100-1

- \0.6(0.4)/99

- \0.24/99

- \2.424

- 0.0492

Critical value

- pz*`-p

- 0.61.96(0.049)

- 0.69

Test statistic value

- p number oI Iavorable responses/sample size

- 6/1000.06


Decision: rom the calculation we can say that test statistic value (0.06) is less than the critical
value i.e. (0.69). ThereIore
0
is accepted.

2) H
0
: Less than or equal to 60 oI retailers are satisIied with the trade promotion oIIered
by AJAJ hair oil marketing company.
H
: More than 60 oI retailers are satisIied with the trade promotion oIIered by AJAJ
hair oil marketing company.

O Sample size-100

O ound-36 (36 number oI retailers are highly satisIied )

O Method-Z test

Standard error oI proportion

- `-p\|p(1-p)|/n-1

- \0.6(1-0.6)/100-1

- \0.6(0.4)/99

- \0.24/99

- \2.424

- 0.0492

Critical value

- p-z*`-p

- 0.61.96(0.049)

- 0.69

Test statistic value

- p number oI Iavorable responses/sample size

- 36/1000.36


Decision: rom the calculation we can say that test statistic value (0.36) is less than the critical
value i.e. (0.69). ThereIore
0
is accepted.


CHAPTER THREE

OINDINGS
OSUGGESTIONS
OCONCLUSION
OILIOGRAPY
OANEXURE

INDINGS
rom the study we Iound that 36 oI general stores are there.
All retailers stock & sell AJAJ & DAUR hair oils.
rom the calculated hypothesis, test statistic (0.06) is less than the critical value (0.69),
thereIore only 6 oI retailers preIer Iirst to sell AJAJ hair oils brand.
Majority oI the retailers (76) said that they preIer Iirst to sell their chosen brand
because oI demand.
68 oI retailers said that they receive beneIits as discounts by the way oI trade
promotion Irom AJAJ hair oil marketing company. (discount can either price or
quantity discount)
76 oI retailers Ieel that price discounts is major tool Ior trade promotion.
63 oI retailers said that, they preIer giIts as an additional trade promotion.
rom the study we Iound that 38, 58 & 26, oI retailers are highly satisIied with the
trade promotion provided by hair oil marketing company Dabur, Parachute & Keo karpin
respectively.
O rom the calculated hypothesis we can say that, test statistic (0.36) is less than the
critical value (0.69), thereIore
0
is accepted that 36 oI retailers oI AJAJ hair oils
are highly satisIied with the trade promotion provided by AJAJ hair oil marketing
company.

SUGGESTIONS
Due to high demand to coconut hair oils, AJAJ CORP LTD should enter in coconut hair
oil segment.

I suggest AJAJ CORP LTD convey the retailers & adopt the Point oI Purchase (window
display) as a trade promotion.

Very Iew retailers are satisIied with trade promotion provided by AJAJ CORP LTD;
thereIore company should adopt additional trade promotion as giIts to key retailers whose
sales is higher & provide allowance to the retailers on Iestival season.

CONCUSION

Working with 'SATRUNJAY TRADERS (Distributor oI AJAJ CORP LTD) Ior two
months was nice experience; here I came know to about the practical knowledge oI distribution
and helped me to gain more knowledge about MCG & air care industry.

rom the overall study I conclude that AJAJ CORP LTD is only concentrating on
perIumed oil segment & major market share contributed by AJAJ Almond drop hair oil Ior
AJAJ CORP LTD. Company has to enter with coconut oil category with new product &
provide some attractive giIts to retailers by the way oI trade promotion.

BIBIOGRAPHY
1) ooks
Advertising & Sales promotion by elch & elch.

2) Websites
www.Imcganalysis.com
www.haircareanalysis.com
www.bajajcorpltd.com


ANNEXURE
Dear respondents,
I Md ShariI. D. Mulla the student oI 4
th
semester MA Irom KLS`s IMER, ELGAUM,
and a market survey on '1o evaluate the trade promotion for retailers of BA1A1 CORP L1D in
BELCAUM city"
I assure that the inIormation is given by you will be strictly used Ior academic purpose
only.
QUESTIONNAIRE
1) What kind oI business do you own?
(a) Kirana shop (b) Medical (c) Super store
(d) General store (e) any other speciIy

2) Since how long you have been in this business?
(a) Less than 2 years (b) 2-4 years

(c) 4-6 years (d) More than 6 years

3) What brands oI hair oils do you stock & sell?

(a) AJAJ hair oils (b) Dabur hair oils
(c) Parachute (d) Keo karpin
(e) Any other speciIy

4) Which brand do you preIer Iirst to sell?
(a) AJAJ hair oils (b) Dabur hair oils
(c) Parachute (d) Keo karpin
(e) Any other speciIy

5) Why do you preIer Iirst to sell that brand?

a) Demand b) Margin c) OIIers

d) Extra margin on purchase quantity

6) What kind oI beneIits do you receive Irom the company by the way oI trade promotion?

a) Discounts b) Schemes c) Coupons

d) OIIers e) any other speciIy

7) Rank the Iollowing tools on the basis oI their importance Ior trade promotion

ACTORS HIGH MEDIUM OW
Trade allowance
Trade contest
Price discounts
Quantity discount
Point oI Purchase (Window display)

8) What additional trade promotional activities do you Ieels the company should provide?

9) Rank your satisIaction level with diIIerent hair oils service providers on trade promotion.

COMPANY ighly
satisIied
SatisIied Neutral DissatisIied ighly
dissatisIied
AJAJ hair
oils

DAUR hair
oils

Keo karpin
Parachute

10)Please Ieel Iree to suggest the company.

-------------------------------------------------


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KLS's INSTIT0TE 0F NANAuENENT EB0CATI0N & RESEARCB, BELuA0N.

: More than 60 oI retailers preIer AJAJ hair oils as a brand preIerence.

a[a[ uabur arachuLe keo karpln CLhers

: More than 60 oI retailers preIer AJAJ hair oils as a brand preIerence.

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