Professional Documents
Culture Documents
SUBMITTED TO
&
BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY
GREATER NOIDA
BY
JITESH KHANNA
09DM049
2010
Declaration
I Jitesh Khanna, student of Birla Institute of Management Technology, Greater Noida hereby
declare that project entitled The gap analysis in sales and distribution of FEM products
relating to Modern Trade is original work done by me under the guidance of Mr Ankur Jain
Area Head Modern Trade (North Zone II) Dabur India Ltd. and Prof. Masilamani, Faculty,
BIMTECH. The information provided in the study is authentic to the best of my knowledge.
All care has been taken to make this report error free and I sincerely regret for any
unintended discrepancies that might have crept into this report. I shall be highly obliged if
errors (if any) be brought to my attention.
Thank You
Jitesh Khanna
PGDM 09DM049
Jitesh.khanna11@bimtech.ac.in
Acknowledgment
In Indian culture, a task is said to be incomplete without the blessings of almighty and
elders. Also acknowledging the work and help of all those who have guided me for the
completion of my research on time.
I am deeply indebted to Mr Ankur Jain Area Head Modern Trade (North Zone II) Dabur India
Ltd. and my faculty mentor Prof. R J Masilamani for not only providing me with the
opportunity for this study, but also enthusing me to work on this very meaningful subject. I
am also grateful for the cooperation and valuable support given to me by the employees of
the organization throughout my training.
Their constant encouragement was a source of strength for me in pursuing this work.
I express my deep sense of gratitude and reverence for my parents and my dear friends for
their endless love, guidance, moral support, encouragement and untiring cooperation
throughout my study and work, without which this work would never have been completed.
I express my sincere thanks to all those who helped me in my training. Still, I feel I have not
been able to express my gratitude to all of them, as no words can thank them for their
teachings and love shown towards me.
Regards
Jitesh Khanna
PGDM 09DM049
Jitesh.khanna11@bimtech.ac.in
This is to certify that Mr Jitesh Khanna Roll No. 049 a student of PGDM has worked on a
summer project titled The gap analysis in sales and distribution of FEM products relating
to Modern Trade at Dabur India Limited after Trimester-III in partial fulfilment of the
requirement for the Post Graduate Diploma in Management programme. This is his/her
original work to the best of my knowledge.
Date: ___________
Signature ________________
(_________________________)
Name of Industry Mentor
Company Seal
This is to certify that Mr Jitesh Khanna Roll No. 049 a student of PGDM has worked on a
summer project titled The gap analysis in sales and distribution of FEM products relating
to Modern Trade at Dabur India Limited after Trimester-III in partial fulfilment of the
requirement for the Post Graduate Diploma in Management programme. This is his/her
original work to the best of my knowledge.
Date:___________
Signature ________________
(_________________________)
Name of Faculty Mentor
BIMTECH SEAL
Table of Contents
Executive Summary
Overview of FMCG Sector in India
Introduction
Company Profile
Introduction to Dabur
Dabur Over Years
Corporate Philosophy
Location of Operations
Company Business Activities
Dabur Manufacturing facilities in India
Dabur worldwide
About FEM
About the Project
FEM Product Portfolio
Competitors of FEM
Organization Structure
Project Analysis
8
10
13
14
15
18
22
23
25
26
27
28
30
34
43
49
52
First Part
107
6
54
57
60
71
74
77
78
101
Part
105
Conclusion
References
Bibliography
Annexures
Annexure 1
Annexure 2
Annexure 3
Annexure 5
Annexure 5
Annexure 6
Annexure 7
Annexure 8
Annexure 9
Annexure 10
Annexure 11
109
110
111
113
114
115
116
117
118
119
120
121
122
123
Executive Summary
Dabur India is one of the leading FMCG Companies in India. The project I undertook isGap
analysis of FEM products in sales & distribution across all national & regional chain modern
trade stores in Delhi, NCR (includes Gurgaon, Faridabad, Noida & Ghaziabad).The study
objectives were:
Identify gaps in distribution, assortment, MBQ levels of FEM products in
In the second part, a survey was conducted in different modern trade outlets. In total 152
people responded to the survey. Most of them were women in the age group 18-35.
Findings from the survey were that most people think major part of the promotion is done
8
through consumer promotion schemes. People are satisfied with the pricing of FEM, since
FEM promotion is not consistent not many people have bought FEM under promotion. Most
people prefer monetary schemes over non-monetary schemes. People prefer to try a skin
care product before using it.
All the 3 categories of FEM naming Bleach, hair remover and liquid hand wash were put on
the product life cycle stage, and my observations were that while hair remover falls in the
introductory stage, bleach and liquid hand wash comes in the growth stage. Hair Remover
needs more advertising. Personal selling and trial packs should be encouraged. Bleach and
Hand Wash needs advertising, sale promotion and personal selling but above all it is
dependent on word of mouth the biggest promotion tool.
It was an excellent experience while working with Dabur India limited. I learnt about the
environment and culture of the organization, its distribution structure; which I feel will help
me in my future endeavours in life.
10
The Indian FMCG sector is the fourth largest sector in the economy with a total market size
in excess of US$13.1 billion. It has a strong MNC presence and is characterised by a wellestablished distribution network, intense competition between the organised and
unorganised segments and low operational cost. Availability of key raw materials, cheaper
labour costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4billion in 2015.
Penetration level as well as per capita consumption in most product categories like jams,
toothpaste, skin care, hair wash etc. In India is low indicating the untapped market
potential. Burgeoning Indian population, particularly the middle class and the rural
segments, presents an opportunity to makers of branded products to convert consumers to
branded products. Growth is also likely to come from consumer 'upgrading' in the matured
product categories. With 200 million people expected to shift to processed and packaged
food by2010, India needs around US$ 28 billion of investment in the food-processing
industry.
India is one of the largest emerging markets, with a population of over one billion. India is
one of the largest economies in the world in terms of purchasing power and has a strong
middle class base of 300 million. Around 70 per cent of the total households in India (188
million) reside in the rural areas. The total number of rural households is expected to rise
from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential
market in the world. The annual size of the rural FMCG market was estimated at around US$
10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the
market potential is expected to expand further.
11
Rural-urban profile
Source: Statistical Outline of India (2008-09), NCAER
An average Indian spends around 40 per cent of his income on grocery and 8
per cent on personal care products. The large share of fast moving consumer
goods (FMCG) in total individual spending along with the large population base
is another factor that makes India one of the largest FMCG markets.
Urban Rural
Population 2001-02 (mn household) 53 135
Population 2009-10 (mn household) 69 153
% Distribution (2001-02)
28 72
Market (Towns/ Villages)
3768 627,000
Universe of Outlets (mn)
1 3.3
12
INTRODUCTION
13
Company Profile
Dabur India Limited came into existence over 100 years ago in 1884 in
Calcutta.
The founder of Dabur India Limited-Dr.S.K.Burman (1856-1907) was a
physician who brought Ayurvedic medicines for the masses of Bengal. His off
quoted dictum is the guiding spirit behind Dabur even today:
14
Introduction to Dabur
Dabur India Limited came into existence over 100 years ago in 1884 at Calcutta. The
founder, Dr.S.K.Burman, was a practicing allopathic doctor. At that time Malaria, Cholera
and Plague were the common diseases. He was a physician who brought Ayurvedic
medicines to the masses of Bengal. Initially established as a proprietary firm for the
manufacture of chemicals and Ayurvedic drugs it was later on 19th November 1930
incorporated as private limited company. Late Shri C.L.Burman, son of late Dr S.K. Burman
and his son late Shri P.C.Burman in the name of Dr S.K.Burman Pvt. Ltd. to expand the
operations by setting up production facilities at Garia and Narendrapur, West Bengal and
Daburgram, Bihar.
Dabur (Dr.S.K.Burman) Pvt. Ltd. was merged with Vidogum and Chemicals Ltd. w.e.f. 1st
July1985 and the amalgamated company was renamed DABUR INDIA LIMITED and a fresh
certificate of incorporation was issued to that effect. In 1970, the bulk of manufacturing
facilities were shifted from West Bengal to Faridabad in Haryana.
In 1975, vidogum and chemicals were incorporated in technical collaboration with Unipekin
AG (Switzerland) for the manufacture of edible grade and industrial grade Guargum powder
at Alwar in Rajasthan.
In 1977, a modern automated plant was set up in Sahibabad (U.P.) for the manufacture of
Chyawanprash, Asavrishthas, Hair oil, Tooth powders, Hajmola, and other Ayurvedic
specialties. Certification for production of toiletries and food grade products was issued on
13th October 1986 by the registrar of Delhi and Haryana to the company, Dabur Private
Limited, a closely held Public Limited Company.
It was incorporated as a Private Ltd. Company in the name of Dabur (Dr S.K.Burman) Pvt.
Ltd. From a humble beginning in 1884, a manufacture of traditional medicine in Calcutta,
Dabur has come a long way to become a multifaceted multinational, multi-product, modern
Indian corporation with a global presence. It now enjoys the distinction of being the 2nd
largest FMCG Company and is praised to become a true Indian Multinational.
The main plant was set up in Sahibabad (U.P.) in 1977 for manufacturing of Chyawanprash,
hair oil, tooth powder, Hajmola and other Ayurvedic medicines and food products etc.
Dabur's main line of business is in the sphere of Health care, Personal care and Beauty care.
Its strength lies in natural and herbal preparations.
Dabur's corporate philosophy has always been ahead of its time. The founder's initial
success was mainly due to his direct main campaigns- a technique that became very popular
nearly a century later. The company was one of the earlier Indian companies to have fully
equipped R & D lab as early as in 1919. Today, the company has its own mainframes and
computers are a way of life here.
15
Dabur is also an ISO 9002 certified company. The certification was obtained in 1995 by SGS
YARSLEY international services Limited U.K. Dabur's revenue today exceed Rs.800 crores
with plans to achieve Rs.2, 000 crores by year 2003. Dabur has 34,000 shareholders with
market capitalization of over Rs.1, 400 crores.
Dabur has 11 manufacturing plants in India and Nepal and a licensee in the Middle East. It
has manufacturing base in Egypt also. The company has over 4,000 employees with around
1,500 looking after sales and marketing functions.
The Indian market is being served through a transactional network of sales offices and
carrying and forwarding agents. The company has its offices in London, New York and
Moscow. Dabur products are being exported to around 50 countries. Dabur portfolio is
exceeding 500 products of FMCG and health care products.
The Board of Directors of Dabur India Limited (DIL) met on July 23, 2003 to consider the
unaudited financials of the company for the first quarter that ended on June 30, 2003.
Company has recorded a growth of 36 per cent in its net profit per cent growth in its
turnover during April-June 2003.
The turnover of DIL, during the three-month period, has increased to Rs 266 crore to Rs 300
crore while the net profit has increased 11.5 crore to Rs 16 crore during the same period.
The first quarter results should not be annualized as sales usually improve in subsequent
quarters.
16
Dabur Vision
Dedicated to the health and well-being of every household
Integrity: We are committed to the achievement of business success with integrity. We are
honest with consumers, with business partners and with each other.
17
1884: Dr.S.K.Burman lays the foundation of what is known as Dabur India Limited.
Started from a small shop at Calcutta, he began a direct mailing system to send his
medicines to even the smallest of villages in Bengal. The brand name Dabur is
derived from the words "DA" for Daktar or doctor and "BUR" from Burman.
1896: As the demand for Dabur products grows, Dr Burman felt the need for mass
production for some of his medicines. He set up a small manufacturing plant at
Garhai near Calcutta.
Early 1900s: The next generation of Burmans takes a conscious decision to enter the
Ayurvedic medicines market, as they believe that it is only through Ayurveda that the
healthcare needs of poor Indians can be met.
1919: The search for processes to suit mass production of Ayurvedic medicines
without compromising on basic Ayurvedic principles lead to the setting up of the first
Research and Development laboratory at Dabur. This initiates a pain staking study of
Ayurvedic medicines as mentioned in age old scriptures, their manufacturing
processes and how to utilize modern equipment to manufacture these medicines
without reducing the efficacy to manufacture these medicines without reducing the
efficacy of these drugs.
18
1940: Dabur diversifiers into personal care products with the launch of its Dabur
Amla Hair Oil. This perfumed hair oil catches the imagination of the common man
and film stars alike and becomes the largest hair oil brand in India.
1949: Dabur Chyawanprash is launched in a tin pack and becomes the first branded
Chyawanprash of India.
1956: Dabur buys its first computer. Accounts and stock keeping are one of the first
operations to be computerized.
1970: Dabur expands its personal care portfolio by adding oral care products. Dabur
Lal Dant Manjan is launched and captures the Indian rural market.
1972: Dabur shifts base to Delhi from Calcutta. Starts production from a hired
manufacturing facility at Faridabad.
1978: Dabur launches the Hajmola tablets. This is the first time that a classical
Ayurvedic medicine is branded from Shudhabardhak bati to Hajmola tablets.
1984: The Dabur brand turns 100 but is still young enough to experiment with new
offerings in the market.
19
1986: Dabur becomes a public Limited company through reverse merger with
Vidogum Limited, and is re-christened Dabur India Limited.
1989: Hajmola Candy is launched and captures the imagination of children and
1992: Dabur enters into a joint venture with Agrolimen of Spain far manufacturing
and marketing confectionery items such as bubble gums in India.
1993: Dabur set up the oncology formulation plant at Baddi, Himachal Pradesh.
1994: Dabur India Limited comes out with its first public issued at a premium of
Rs.85 per share. The issue is subscribed over 21 times.
1994: Dabur enters the oncology (anti-cancer) market with the launch of Intaxel
(Pacitaxel). Dabur becomes only the second company in the world to launch this
product. The Dabur Research Foundation develops the unique eco-friendly process
of extracting the drug from the leaves of the Asian Yew Tree.
1995: Dabur enters into a joint venture with Osem of Israel for food and Bongrain of
France for cheese other dairy products.
1996: Dabur launches Real fruit juices, which heralds the company's entry into the
processed food market.
1997: The foods division is created, compromising of real fruit juices and Homemade
cooking paste to form the core of this division's product portfolio.
1998: Project STARS (Strive to Achieve Record Successes) is initiated by the company
to achieve accelerated growth in the coming years. The scope of this project is
20
1998: The Burman family hands over the reins of the company to a professional, Mr
Ninu Khanna join Dabur, as the Chief Executive Officer.
2001-2002: Launched Amla Light, new flavors in Real Juices-grapes, guava, apple
active, orange active, homemade pappad, Vatika- an anti-dandruff shampoo.
2002: New launches homemade coconut milk (in south), Tang, Tomato puree, Vatika
light.
2003: Dabur achieves Rs.1, 232 crores turnover mark with an increase of 6 per cent.
Turnover of FMCG reaches to Rs l048.5crores, which shows a profit of Rs. 72 crores.
Turnover of pharmaceuticals reaches to Rs 184 crores with a profit of Rs.13 crores.
21
Corporate Philosophy
Knowledge is the key to growth in today's world. Whatever be the industry, it i s the
knowledge, which provides cutting edge to individual and organisations. For more
than a century nature has been a rich source of knowledge for DABUR. Nature has
not only gives it the ingredients for all its products but also has taught it how to
create a harmony withi n and outside the organisation. Nature has inspired DABUR in
all its acts. Ayurveda - the science of life is based on principles of nature. All
Ayurvedic preparation has their ingredients derived from nature. Dabur has
converted the healing properties of natural ingredients and the age-old knowledge of
Ayurveda into contemporary health care to eliminate health problems of its
consumers.
Dabur is committed to expand the reach of its age-old knowledge of Ayurveda and
Nature through web. Through web the aim is to overcome the physical boundaries to
take Ayurvedic way of life to global frontiers. Dabur India limited understands its
responsibility as a corporate house. It has not only set a sight on increasing turnover
and profitability of the company but also on propagating Ayurveda - The Indian
System of Medicine.
22
Locations of Operations
Head office: Sahibabad, Ghaziabad (U.P.)
Regd. Office: Asaf Ali Road, New Delhi
Corporate office: Kaushambi, Ghaziabad (U.P.)
Sales & Marketing: New Delhi
OFFICES:
Chandigarh (H.P.), New Delhi (Delhi), Jaipur (Rajasthan), Kanpur (U.P.), Patna (Bihar),
Ahmadabad (Gujarat), Indore (M.P.), Cuttack (Orissa), Mumbai (Maharashtra),
Hyderabad (A.P.), Chennai (Tamil Nadu), Bangalore (Karnataka), Kochi (Kerala),
Guwahati (Assam), Kathmandu (Nepal), Russia, U.K.
FACTORY:
Baddi (H.P.), Ghaziabad (U.P.), Alwar (Rajasthan), Daburgram (Bihar), Kalyani&
Narendrapur (West Bengal), Katni (M.P), Birgunj (Nepal), Egypt.
23
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AYURVEDIC SPECIALITIES: There is a range of over 400 Ayurvedic medicines. It has vast range of
classical Ayurvedic drugs and priority Ayurvedic medicines developed by own R&D.
PHARMACEUTICAL DIVISION: It includes a range of natural ethical products like Livfit, Lionitus,
Legal etc., and angel of contract media and gynaecological. This division has a major presence in
Anti-thrombolytic, Anti-migraine therapy and radio opaque dyes.
ONCOLOGY: The formidable range includes brands such as Intel, Docetaxel that were
manufactured in India for the first time by Dabur. The company is a market leader in this
category in India and plans to establish itself as a general Oncology player in selective global
market.
BULK DRUGS AND CHEMICALS: Dabur manufactures synthetic and semisynthetic bulk
pharmaceutical substances, bulk natural compounds and intermediaries. Isolation of pure
natural compounds and custom synthetics are focus areas.
FOODS DIVISION: One of the youngest divisions of the company markets a range of sauces,
ethnic pastes and foods. Real fruit juices gave Indian consumer for the first time, fruit juices with
nothing artificial, no preservatives, no colour and no flavours added. Launched two years back,
the range includes Real Juices and cooking pastes under the brand name Home Made.
NATURAL GUMS: This division manufactures and process Guar gums, Gum Karaya, tamarind
based gums and psyllium husk. The division produces a range of industrial and grade natural
gums to meet the customer specifications.
AYURVEDIC VETERINARY: It deals exclusively in animal hea1thcare. Markets safe and non-toxic
herbal veterinary products for poultry.
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26
27
About FEM
Fem is trusted brand known throughout India since 1982. The company
markets bleach, liquid soaps and hair removing creams under the Fem brand.
In house R&D: innovative products like Oxybleach (premium cream bleach),
Fem Stratum (hair conditioner), Saka (mens bleach) and Botanica (skin firming
& anti-wrinkle cream) introduced in the last few years. It has a range of fabric
softeners and stain removers under the brand Bambi. Markets a range of
pharmaceutical products in dermatology and other segments. Distributions
reach covering 1, 25,000 retail outlets; also covers 25,000 parlours directly.
Manufacturing facilities in Nasik and Baddi (HP); Baddi unit which was set up in
2006 enjoys both excise and IT benefits. Exporting to UAE, Yemen, Oman,
Maldives, Mauritius, Malaysia, Sri Lanka, Bangladesh, Myanmar and Nepal.
Owns the brand Jaquline which markets women care products (bleach and
hair removing creams) in US and Middle East. Highly profitable company with
gross margins of over 60%.
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Acquisition of Controlling Stake in Fem Care Pharma Ltd by Dabur India Ltd
(DIL)
Dabur India Limited signed an agreement to acquire 72.15% stake from the existing
promoters.
capital.
Specialty chemicals division and some other investments will be bought over by
Acquisition Rationale
Revenue Synergies
Brand provides access to DIL into fast expanding skin care market at mass price points
Higher reach/penetration for FCPL portfolio through DILs distribution network
Potential for extending FEM brand into other related skin care categories.
Potential in International markets: FEM & Jaquline brands have presence in GCC/Middle
east markets which can be expanded.
FCPLs parlour outreach to be leveraged for promoting Daburs personal care portfolio.
Cost Synergies
Combined business to unlock synergies : Sales & Distribution, Marketing, Supply Chain,
Sourcing & Manufacturing
FCPLs Baddi unit synergistic with DILs own skin care plans
Greater efficiencies possible in trade and distribution
Combined Adpro spends can be leveraged to reduce media costs
FCPLs R&D knowledge in skin care to supplement domain knowledge for DIL
29
30
Fem Care Pharma Ltd, which has a leadership position in the fairness bleach category and a
strong market position in hair removal and liquid soap category. The other brands in its
portfolio include Oxybleach cream, S K mens bleach and Bambi fabric softeners.
cquisition of Fem Care Pharma is in line with strategy to aggressively expand Daburs scale
of operations and strengthen its presence in the fast moving consumer goods (FMCG) space.
This transaction would give Dabur an entry into the high-growth skin care market with an
established brand name FEM. Further, Dabur also has the potential to extend the brand
into newer and related skin care categories.
But since the acquisition has taken place, Dabur has not been able to concentrate much on
the distribution and promotion aspect of FEM. FCPL which continued to keep the
distribution of FEM products in OFOs and Kirana Shops while Dabur has taken over the
distribution of FEM products in Modern Trade. I was given the task of identifying loopholes
that exist in the Distribution and Promotion strategy of FEM across all national and regional
chain modern trade stores in Delhi and NCR.
Since sales and distribution are one of the most important areas of a company, this problem
has to be seen from all the angles before coming to any conclusion. To study the problem of
MBQ levels and Assortment, I had visited some branches of modern trade retails stores and
their distribution centre. Interview was conducted with the store managers, departmental
heads and Daburs promoters in these chains about the problems faced related to
distribution strategies because of company or retail house.
List of Modern Trade Retail Chains where FEM products supplied are:
Big Bazaar
Big Apple
Vishal Mega mart
REI 6TEN
Surya Healthcare
Apollo Pharmacy
31
Guardian Pharmacy
Religare
Spencer
H&B Store
Home Store
Since promotion not only leads to increase in the sale of the product but also increase brand
awareness among the buyers, promotion has become a significant tool being used by the
marketers for not just survival but also leading this highly competitive market.
There are different kinds of promotional schemes used by different companies to market
their products. While some companies depend on monetary schemes other use nonmonetary schemes very significantly. To test which one of them is mostly preferred by the
consumers, I conducted a survey to see what kind of scheme makes a consumer inclined
towards buying that product.
Methodology Adopted
For 2nd part of this project, the method available was to get enough information through
personal interaction with the people visiting the stores with the aid of a questionnaire. The
collection of primary data requires considerable time. In this research, the Primary data
were obtained by actual working in the market and interacting with the buyers.
Questionnaire containing 21 questions was prepared. In total 152 people were interviewed
who visited the different stores at different locations.
32
People were asked questions about their preference when it comes to choosing a product
under scheme, what kind of scheme they prefer monetary or non-monetary, then what kind
of monetary or non-monetary schemes do they prefer. People were also asked if these
schemes really influence their buying behaviour. Other questions include through what
mode of communication they got to know about FEM, rate the current promotional strategy
of FEM, etc.
33
34
Fairness Bleach
35
Fem Perfumed Blue Bleach is milder bleach specially formulated for those
having a sensitive skin. The advanced formulation of Perfumed Bleach liberates nascent
oxygen in a controlled manner to provide extra fairness that lasts up to 30 days. The
perfumed activator of the Blue Bleach also gives a wonderful aromatic experience to
users. It is available in consumer packs of 9g / 25g / 50g & parlour pack of 100g.
Material Description
Size
MRP
36
Oxybleach
Oxybleach is the healthiest bleach in the world today. Oxybleach provides you a fairer, healthier
radiance that too with many times more Oxygen. It comes with unique pre-bleach cream that forms a
protective shield for even the most sensitive skin, and gives you a safe and enhanc ed bleaching
experience. It is available in a 25g retail pack as well as 300g parlour pack.
Material Description
Size
MRP
Oxy Bleach
25 Gram
60.00
37
Herbal Bleach
Fem Herbal Bleach Contains 16 precious herbs : Keshar, Chandan, Lodhra, Patang, Raktachandan,
Agru, Walaa, Manjistha, Jesthmadh, Temaalpatra, Padmakastha, Kamal, Kosth Kolinjan, Halad, Laakh
& Daruhalad, Which make Kumkumadi Thilam, a proven ancient Ayurvedic formulation for
fairness.Natural and Safe, Fem Herbal Bleach is a blend of nature's best. This makes it perfectly safe
for all skin types, especially sensitive skin. It is available in a 15g retail pack
Material Description
Size
MRP
15 Gram
40.00
38
Fem a company with a reputation as the innovators in the skin care category has launched Saka Oxygen bleach for men. The skin care experts have formulated Saka to gently work wonders in
just
15 minutes. It works with a three-pronged action * Bleaching to remove suntan, * Cleansing to
remove dirt, bacteria, dead cells and provide extra oxygen to the skin, and * Nourishing to unclog
pores. So you can give dull, lifeless skin a total lift, and an instant boost of life.
Material Description
Saka Bleach
39
Size
MRP
15 Gram
30.00
Fem Hair Removing Cream is gentle and painless way to remove unwanted
hair from arms and legs. It provides silky, smooth skin within minutes. Its unique
formulation not only removes hair from the root but also delays the re-growth of
unwanted hair. It is available in 40g of Jar pack and in 25g of Tube pack in pleasant
fragrances of Lemon, Chandan, Rose, and Blossom.
Material Description
MRP Size
40 Gram 35.00
40 Gram 35.00
40 Gram 35.00
40 Gram 35.00
40 Gram 35.00
40 Gram 35.00
40 Gram 35.00
40 Gram 35.00
25 Gram 25.00
25 Gram 25.00
25 Gram 25.00
25 Gram 25.00
40
Fem Soft Gentle Soap is the only liquid soap made from pure coconut oil that
leaves your hands and face soft, supple and smooth aft er every use. One pearly drop of
this unique liquid is enough to give you a complete cleansing experience. It is available
in five lingering fragrances of Lemon Dew, Chandan, Blossom, Bouquet and Pea ch. It is
available in dispenser pack of 250ml and refill packs of 1 litre and 5 litres.
41
Material Description
Size MRP
250 ML 59.50
250 ML 59.50
250 ML 59.50
250 ML 59.50
250 ML 59.50
200 ML 30.00
200 ML 30.00
200 ML 30.00
1 Litre 149.50
1 Litre 149.50
1 Litre 149.50
1 Litre 149.50
1 Litre 149.50
42
COMPETITORS OF FEM
43
FEM faces competition from various national and international brands for its product range.
Fem Care has a leadership position in the fairness bleach category and a strong market
position in hair removal and liquid soap category.
Bleach
In the bleach category there are 2 major players;
Jolen
FEM
Jolene
It Camouflages facial hair, Cleans Skin. It has unique gas flushing action to cleanse skin pores. Strong
antiseptic to prevent infection. Quick & Convenient. It is suitable for all types of skin.
Available in 9g, 18g, 35g, 140g & 300g
SKU MRP
9 Gram 24.00
18 Gram 42.00
35 Gram 75.00
44
Veet
Range from Veet creams - suitable for each skin type. Now whether you have
normal, dry or
sensitive skin there is a Veet especially for it. Plus
with its special skincare
SKU MRP
ingredients- it will leave
25 Gram 39.00
60 Gram 69.00
the skin feeling soft and super smooth.
Available in 2 sizes: 25g and 60g at Rs 39.00 and 69.00 respectively.
Anne French
Anne French hair remover available in four different fragrances available - sandal, rose, lavender and
lemon.
Available in 2 sizes: 25g and 40g at Rs 33.00 and 39.00 respectively SKU MRP
25 Gram 33.00
40 Gram 39.00
45
Dettol
46
Lifebuoy
Positioned on a protection from germs platform it carries the tagline of have no fear in the Liquid
handwash segment too. Lifebuoy Hand Soaps offer hospital-strength germ protection, with a unique
formulation that generates a rich lather.
SKU MRP
200ml (pump pack) 40
180ml (Pouch Refill) 25
900ml (Refill) 125
Palmolive
Palmolive launched handwash in October 2003 with a premium pricing and imported stocks.
Santoor
s a strong player in the bar soaps market and with a high market-share in the South,
Santoor launched the Liquid Hand Wash in January 2007, along with media support
SKU MRP
250ml (pump pack) 55
180ml (Pouch Refill) 27
1000ml (Refill) 150
48
ORGANISATION STRUCTURE
49
50
51
PROJECT ANALYSIS
Part 1 - Identify gaps in distribution,
assortment and MBQ levels of FEM products.
Part 2 - Study promotion/activation mix for
three categories done by competition.
52
First Part
In the first part we will be analysing various gaps that exist in the distribution, assortment
and MBQ levels of FEM products in modern trade. We will only be concentrating on the skin
care category of FEM i.e. Bleach, Liquid Soaps and Hair Removal Cream.
Modern Trade
Modern trade as opposed to traditional retail shops refers to a range of sale methods based
on marketing techniques: for instance in self-service shops you have no more sales
attendants behind the counter; now the customer can touch the articles. The more
expensive goods will be ready at hand whereas you will have to bend to reach goods with
less add value for the store. A few articles will be offered at rock bottom prices with much
publicity in order to attract as many customers as possible. The display of goods is very
important and needs an elaborate know-how.
53
CONSU
MERS
The above diagram it shows channel of distribution of Dabur, here first the products are
manufactured and from Manufacturing plants the packed goods are supplied to Clearing
And Forwarding Agents(C&FA) and from here the goods are then further supplied to
number of Stockiest or Distributors, from here goods reaches to large number of Retailers
and it is the duty of Stockiest to take orders from retailers and then supply the goods to
them, this work is generally done by stockiest salesman through ready stock or by taking
orders first and then placing the order. From here the goods finally reaches to Customers.
Customer purchases the product from retailers.
54
55
STOCKIEST OR DISTRIBUTORS
Stockiest store the products in their godowns, C&FA supplies the goods to them as
per their order.
Stockiest has some sales men working under him, they are known as stockiest sales
man. Their work is to place the products in the market and take order from retailers
and then supply goods to them.
Sales man either takes ready stock with them or they first take orders and then
supply goods later on.
There is a beat which is a schedule route of sales man, means sales man has to daily
cover the route as mention in the beat.
Merchandising, making products visible, pasting posters, putting banners, and seeing
that goods are properly placed in the retail outlets is also the duty of stockiest sales
man.
Companies sales officer keeps a check on the stockiest and monthly report is also
prepared which is further analysed by ASM & ZSM.
In Noida Dabur has 1 stockist, and in Ghaziabad 1
RETAILERS
Retailers are backbone of the company as they are the one who can take the product
on new heights or can bring it down to toes.
Stockiest supplies goods to retailers and tries Persuading retailers to give the brand
special displays (using merchandising tools) to get affective brand presence, and
arranging it in more noticeable manner.
Classification of outlets in different type of markets is different according to their
sales volume.
TYPES OF RETAILS OUTLETS
Class Average Monthly Business
A
Above 10,000
B
5,000-10,000
C
Upto 5,000
Margin of retailers is always higher than stockiest.
Retailers are the one who have direct contact with the customers.
56
CFAs keep receiving goods from the Manufacturing Unit as per the production of
goods.
Manufacturing Unit produces goods according to the Sales Forecast done.
Sales Forecast for FEM is done on the basis of last 3 months sales.
Data from various modern trade chains is collected to calculate the sale of FEM
products and accordingly considering the demand and sales figure, sales forecast for
the coming 3 months is made and the manufacturing unit is asked to produce the
required quantity.
Daburs distributors maintain at least 15 days of inventory with them.
57
Counting of the stock present in the store in done by the Dabur Promoter who are
present in the store or by the Dabur Merchandiser.
After going the through the stock available in the store. Dabur representative places
order with the Department Head in case order is placed through Centre Distribution
Centre and through store manager or the department manager when the order is
placed from the Store itself.
MBQ level are generally decided by the Centre Distribution Centre or the Store
Manager.
Purchase Order generated is send to the Dabur Distributor.
Replenishment takes place within 3 days from the dispatch of the purchase order.
Payment as regards to the Purchase order is done on credit basis.
58
Dewas naka
Transfer of the material to the store ware house Segregation of the material (M.C. wise and
category wise)
Send the stock to the floor as per the requirement Racking of the material by giving location to the
rack as well as to the box (for the maintenance of
the W.M.S. sheet)
59
To study the gaps that are prevalent in the Distribution system of Dabur for
FEM products, I
visited 70 Modern Trade stores and their Distribution Center (DC) of
different Chains in
Delhi and NCR Region.
There I just orally asked them few questions related to the SKUs that are
being kept by
them, what is the MBQ Levels of different FEM product, what are the
deciding factor behind
setting up of MBQ level, how is the fill rate of FEM, how is the distribution
system of FEM,
how much time it takes for replenishment, are they satisfied with the
margin provided by
the company, are they satisfied with the Dabur as a company, etc.
60
45
25
10
15
200
25
5
30
35
40
45
Yes
No
Series1
Interpretation:-
It is quite evident from the chart that out of 70 outlets and distribution
centres visited by
me, 45 of them feels that distribution system of Dabur is satisfactory
while 25 of them are
not satisfied with it. Some of the reasons given were margins offered
by the company, fill
rate being low, credit issues with the company etc. But at the same
time Positive feedback
61
about Dabur was that since Dabur has taken over FEM, there has
been a drastic
improvement in the distribution of FEM products.
Item Name
62
Total SKU 39
Fast Moving 7
Slow Moving 32
32
10
15
20
250
305
35
Party 1 - Express Retail Service (Modern trade chain known as Big Apple)
64
Case 2
Second Purchase Order (See Annexure 2)
Date 10.05.2010
PO No. 330/10
Net Bill Amount Rs. 213547
Date 20.05.2010
Invoice No. A0000061
Net Amount Rs. 169416
Date 22.05.2010
Invoice No. A0000062
Net Amount Rs. 83782
For Third order Fill Rate is 83% (calculated value wise). Out of 4
FEM SKUs that were
ordered in the PO, 3 of them were supplied. Replenishment was very
good for this order;
the goods were supplied within
65 2 days from the placing of order.
Case 4
Fourth Purchase Order (See Annexure 4)
Date 27.05.2010
PO No. 490/10
Net Bill Amount Rs. 76936
Supply Bill (See Annexure 9)
Date 30.05.2010
Invoice No. A0000077
ForAmount
fourth order
Fill Rate is 91% (calculated value wise). All
Net
- Rs. 70131
Date 05.05.2010
Invoice No. B0000273
Net Amount Rs. 2836
Another case of Fill Rate;
Party 1 Future Value Retail (Modern trade chain known as Big Apple)
Party 2 Vijman India (Distributor of Dabur India Limited)
Since first 10 days of the month are very crucial from the
sale point of view, there should
not be any miss in the SKUs supplied in these particular
67
days. Because unavailability
of
products can result in not only losing the sale at that point
of time, but the customer may
also switch to some other brand thereby we as company
loose a loyal customer as well.
MBQ Levels
To keep a steady stock watch for the reorder of basic goods is time consuming and vital to
profits. Different stores have different criteria to compute what the MBQ level of an item
should be. The retailer can use past sale data of last month or last 3 months sale or in some
cases where product is seasonal or has a demand in particular season; MBQ levels are
decided season wise as well. This profit-enhancing feature uses sales history to calculate
scientifically what and when to reorder, with less paperwork and less guesswork. MBQ
(minimum base quantity) methodology has been used for efficiently handling the inventory
based on past sales track.
Footfall
21
Season
68
6%
38%
30%
10%
16%
Case Experience
Level
regarding
MBQ
I had frequent visits in most of the Big Bazaar stores in the Delhi region in the month of May
in different weeks. There I noticed that the MBQ level are decided on the basis of past
month sale, but the MBQs of all almost all the bleach products were same irrespective of
their demand.
During 1st week of May, the demand for Oxy Bleach and Herbal Bleach was very high in all
the stores, MBQ level ordered for both the products was between 24-36 pieces in almost all
the stores. But on visiting Big Bazaar Vasant Kunj store I noticed that of 36 pieces, 31 pieces
of Oxy Bleach were sold on the very first day of the replenishment of stock, now for rest of
the week there were only 5 pieces of Oxy Bleach were left, which ultimately resulted in no
stock for next 5 days.
When I visited the store after 15 days, the same scenario was experienced again.
When I asked the Dabur promoter in the store, why the same MBQ was given for oxy
bleach, the lady there said that she informed the concerned authorities about the same but
no action has been taken.
In another experience there was no supply of Oxy Bleach for one week in all the Big Bazaar
stores because of blockage of Oxy Bleach Code which resulted in unavailability of Oxy Bleach
in all the stores at the time when its demands is reaching its heights.
70
First and the foremost major gap is the Fill Rate, being on an average less than 65%
calculated value wise. Fill rate is low because of unavailability of products in required
quantity from the company and distributor. Fill rate is low not just value wise, but its
the same SKU wise or line wise or case wise. Approximately fill rate should be
around 85%, keeping in mind the takeover of FEM by Dabur and the type of facilities
that can be offered by the company to its this segment.
Distributors and retailers are not keen in keeping all the registered SKUs with them
transport van is used for Dabur stock and FEM stock and if there
is unavailability of
FEM products, it will have to wait for the Dabur Purchase Order
to be generated and
with that supply comes the FEM supply. Other than this it has
been observed that in
some cases it took way too long for supply to take place which
resulted in loss of sale
and may be customer as well, since these days with so many of
competitive products
in the market customer71generally dont wait for the product to
arrive and therefore
fulfil his need with another brand offering same services.
Unavailability ultimately
resulting in loss of loyal customer.
Minimum Base Quantity is set up without any standard procedure. Moreover the
same quantity is followed irrespective of the demand of that particular. Like in case
of Big Bazaar discussed earlier, in which the footfall on an average is around 2400 on
weekdays and around 3000 on weekends in first 10 days of the month which is 30%
more than the footfall for rest of the month still the same MBQ level is followed
without considering the above factor of footfall. And because of low MBQs supply
falls short of demand leading to loss of sale.
Another of the reason why Modern Trade chains avoid taking orders of all MBQs and
in large quantities because it has been observed that there is a lot of loss of money
and stock on account of theft and pilferage in these stores because of the modern
structure of self-pick of the product whichever consumer wants. Moreover these
chains concentrate more on the outlets than their warehouses which at times lead
to spoilage of products stored in these warehouses.
Purchase orders are generated on the visit of Dabur representative who comes and
Lack of awareness among distributors and retailers about the SKUs being made by
73
Second Part
In the second part we will be analysing various promotion methods that are prevalent in the
skin care segment and which influence the buying behaviour of consumers. We will also
discuss promotional schemes which are preferred by the consumers and which lead to the
consumers buying that particular product. And on that basis we will be recommending
promotional strategy which can result in incremental sales without causing any channel
conflict.
Sale Promotion
The well-known four Ps of marketing represent the sellers view of the marketing tools
available for influencing buyers. From a buyers point of view, each marketing tool is
designed to deliver a customer benefit. lso the sellers four Ps correspond to the
customers four Cs.
Four Ps Four Cs
Product Customer solutions
Price Customer cost
Place Convenience
Promotion Communication
Promotion
Promotion is tool with which public will be informed about the availability of a particular
product or service and the uses of such product. Production decides the increase in demand
for a product; promotion will make the prospective buyers to know about the want,
satisfying characteristics of the product, its price and place of availability. This term includes
advertisement, personal selling sales promotion and other selling tools which are increasing
the sales volume.
74
Sales Promotion
Sales promotion is different promotion, Sales promotion refers to those marketing activities
other than personal selling, advertisement and publicity, which stimulate consumer
purchasing and dealer effectiveness, such as displays, shows and expositions,
demonstrations and various non-recurrent selling efforts not in the ordinary routine. Its
purpose is to increase the desire of salesman, distributors and dealers to sell a certain brand
and to make consumers more eager to buy that brand. This includes sales activities which
supplement both personal selling and advertising.
Sales promotion is only a part of promotion. Promotion includes sales promotion,
advertising, personal selling etc. Promotion helps to make all other marketing activities
more effective and efficient, but sales promotion helps only to sales activity. Sales
promotion may be done with the help of tools like displays, exhibitions, free sample
coupons, premium etc. Sales promotion acts as a link between advertisement and persona l
selling.
To sum up, promotion is to make the demand inelastic, while there is change in the price. So
promotion must stimulate the consumers to buy more.
Effects of Promotion
1. The present day market is very competitive due to the large number of rivals and
substitutes. With the help of promotion producer must create product differentiation in the
minds of consumers.
2. Promotion is very essential to communicate the use of the product and the nature of the
product to consumers and middlemen
3. Nowadays most of the consumers market their products in wider area and the consumers
are also very large in number. In such cases personal selling alone cannot be used and so all
the steps for promotion are to be followed.
4. During the periods of depression it is essential to maintain at least some minimum
market. Therefore it is very essential to use promotion.
76
77
For the purpose of deciding on the method of Promotion to be adopted, what is the
preference of customer when it comes to choosing the schemes, awareness about FEM etc.,
we used the questionnaire method.
Questionnaire with 21 questions was prepared. Survey was done in various modern trade
stores. People interviewed were those who visited the store for shopping purpose.
78
In total 152 males and females were interviewed for this survey.
96
100
56
39
28
21
10
200
30
40
50
60
70
80
90
31
19
Interpretation:Of the total of 152, 96 were women and 56 were men. This shows that the major part of the
sample visiting the stores is female. And of them highest are in the age group of 25-35. As
compared to that in the men population highest number is taken by the men of age group
35+. The above data shows that men above 35+ are still the purchasers of the family
whereas female of 25-35 category are slowly becoming the next decision maker of the
family.
79
Occupation
Student 26
Self Employed 39
Service 57
House wife 27
Others 3
2%
18%
17%
Student
Self Employed
Service
House wife
26%
Others
37%
Interpretation:37% of the population interviewed was from service class, this shows that a lot of people
from the service class prefer to buy their daily household stuff from the modern trade store.
Next in the line comes the Self Employed with 26%. Student and Housewife are of almost
the same percentage in this sample of population.
80
Awareness
Yes 136
No 16
136
100
120
140
16
20
40
600
80
Yes
No
Interpretation:Out of total of 152, 89% of the population sample was aware of the FEM. This shows that
the brand awareness of FEM is pretty good. People are familiar with the brand. A lot of
credit of its brand awareness among the skin care segment goes to its Bleach Segment. In
this segment FEM is still the market leader competing with only known brand Jolen.
81
Medium of Awareness
TV Advertisement 68
Newspaper 7
Internet 5
Friends and Relatives 24
Store Visit 29
Other 3
2%
21%
TV Advertisment
Newspaper
50%
Internet
Friends and Relatives
Store Visit
18%
Other
4%
5%
Interpretation:Most of the awareness is spread through the medium of TV Advertisement. Being the most
widely used method of advertisement, this method has become the most influential method
of advertising as well. Preity Zinta has been the brand ambassador for FEM. Recently a
couple to TV advertisement were also launched with Preity Zinta endorsing FEM in them.
21% of the people also got aware through direct visit in the store and noticing the product
there. Word of Mouth holds 3rd position with 18% as done generally through friends and
relatives. 16 people did not answer this question because they were unaware of the
product.
82
98
100
82
54
40
16
10
20
0
30
40
50
60
70
80
90
14
Interpretation:Of the total sample population of 152, people who have used FEM is 98 in number and
people who have never used FEM is 54. When a further analysis was done, it was observed
that out of the count of 98 people who have used FEMs product, 82 were females and the
rest 16 were males. This shows that the major user population of FEM are Females. The
reason could be since FEM has skin care products and Indian Male is still not very open to
using products like Hair Removal and Bleach. 16 Males saying yes could be because of the
growing popularity of FEMs Men Bleach S K or usage of Liquid Hand Wash.
83
Products Used
Products Used
Hand Wash 37
Bleach 36
Hair Removal Cream 25
25%
38%
Hand Wash
Bleach
Hair Removal Cream
37%
Interpretation:If we see in the figure, major usage is of Hand Wash and Bleach with 38% and 37%
respectively. This could be because Hand Wash market is growing Day by Day and FEMs
Hand Wash are considered best when it comes to quality of the Liquid Soap. With bleach
FEM has already established itself as the market leader. Hair Removal is lacking behind
because the market for it is still in its growing stage and FEMs competitor is VEET which has
established itself as a well-known Hair Removal brand in the market.
84
Unavailability of FEM in
Stores
Availability
Yes 34
No 66
May Be 28
70
66
60
50
34
40
30
28
20
10
0
Yes
No
May Be
Interpretation:Of the total of 128, there are 34 people who have experiences Unavailability of FEM
products in stores. Whereas 66 people never experienced unavailability of FEM. 28 people
are not sure and 24 people did not answer this question because of some or the other
reason.
85
108
120
100
80
60
40
20
20
0
Yes
No
Interpretation:108 people are satisfied with the pricing of FEM whereas 20 people say that pricing needs to
be improved. When interviewed these people regarding why pricing is not satisfactory one
of the common replies came up was quality of FEM products does not match its pricing. Plus
similar products that come in the other brands always have some schemes with them,
whereas with FEM there is hardly any scheme. Again 24 people did not answer this
question, may be because they are ambiguous about the pricing of FEM products.
86
18%
25%
Yes
No
May Be
57%
Interpretation:FEM has never been hard promoter of its products but after Dabur has taken over FEM,
Dabur has been able to sign up with Preity Zinta as their brand ambassador for FEM
products. Still not a large amount of money has been spent on its product promotion and
that is the reason why 57% of the people who took this survey are unaware of the
promotion that has been done by the company. Only 25% of the sample population is aware
of the promotion that has been done by FEM and 18% are not sure about it.
87
10
26
82
30
4
Below Average
Average
Good
Excellent
3%
6%
20%
17%
Poor
Below Average
Average
Good
Excellent
54%
Interpretation:Of the total population who took this survey, 54% says that the overall promotion strategy
of FEM is average. While 3% says its excellent and 6% marked it as poor. gain since FEM
has never spent large amount of money on its brand and product promotion, not many
people are actually thoroughly impressed with the promotion of FEM and this is why it got
an average rating.
88
Hand Wash
For Hand Wash
Poor 24
Below Average 44
Average 54
Good 28
Excellent 2
1%
18%
16%
29%
Poor
Below Average
Average
Good
Excellent
36%
Interpretation:FEM being not the market leader in Liquid Hand Wash segment is expected to concentrate
on the promotional aspects because its competitors are very highly reliable on various
promotional methods. This is the reason why most people think that FEM Hand Wash
category promotion is average or below average. There is no current scheme on it. Some 4-5
years back was the last advertisement of FEM Hand Wash was shown on TV; even that
advertisement was not very impressive.
89
Bleach
For Bleach
Poor 14
Below Average 14
Average 56
Good 58
Excellent 10
7%
9%
9%
Poor
Below Average
Average
Good
Excellent
38%
37%
Interpretation:In the bleach category, a lot of people are impressed with the promotion being done by FEM
that is why they rate the promotion of bleach above average. In fact, Dabur FEM has signed
Preity Zinta as their brand ambassador for the Bleach category. There is another
advertisement being shown on TV regarding SAKA bleach as well. Other than this FEM being
the market leader does not have to do much to increase its sale in this category.
90
5%
9%
Poor
Below Average
Average
Good
Excellent
12%
36%
38%
Interpretation:In the Hair Removal category, 38% feel that the promotion is Average while 36% feel it is
above average or good. FEM has run a couple of Consumer Promotion offers in which
cleansing cream was given with the tubes. Other than these there has not been much
promotion for Hair Removal category. However, its competitors are highly dependent on
commercial methods of promotion.
91
140
130
120
100
80
60
22
40
20
0
Yes
No
Interpretation:Out of total of 152, if we take 96 people who have used FEM some time or other and of
those only 96 people only 22 people have purchased FEM under the promotional scheme,
which is 23% of the total population who has used FEM is still very low. This shows that the
FEM does not provide schemes to its customers on regular basis. Even when they do it is not
communicated to its customers properly which result in low purchasing even when products
sold with schemes.
92
May Be 50
33%
51%
Yes
No
May Be
16%
Interpretation:Out of 152 people, 51% believe that Yes sale promotion does affect their buying behaviour
while 33% are not sure about and 16% believe it does not really matter if the product is
under promotion or not, their buying of a particular brand will be the same irrespective of
the promotional schemes with them. But since more than 50% are of the sample population
thinks that sale promotion is important, it becomes important for FEM to concentrate
individually on each of its product categories and provide schemes with each one of them.
93
Method of Promotion
Monetary 92
Non-Monetary 60
92
100
90
70
80
60
60
50
40
20
30
10
0
Monetary
Non-Monetary
Interpretation:Most of the people who were interviewed prefer Monetary Schemes with the products
above the Non-Monetary schemes and the same is evident from the fact that out of 152
people 92 prefer Monetary Schemes while the rest of 60 people prefer Non-Monetary
schemes. One of the reasons behind this could be that major part of the Indian population is
money centric and they want to save anyhow. This is why we see sale taking variable heights
when goods are sold at low prices or with discount schemes.
94
Non-Monetary Method
Gifts
54
Trial Packs
40
11%
35%
Discounts (Example
Rs. 10 off)
Buy 2 get 3rd at 50%
Buy one get one
43%
11%
Interpretation:43% of the total population prefers scheme of Buy One get One free, rationale behind this
scheme is, it not increases the quantity in your shopping cart but also decreases the price of
the product which you have originally bought. Next is Discount Scheme, again decreases the
prices of the product. Discount scheme is the most commonly used method of sale promotion.
Buy 2 get 3rd at 50% and Family Pack scheme does not have very popularity among people,
more so because Discount and Buy one Get one, has more advantage and further more
satisfaction as compared to other schemes.
95
Non-Monetary Method
Gifts
54
26%
5%
36%
Gifts
25% Extra Scheme
Lucky Draws
Trial Packs
33%
Interpretation:Among the Non-Monetary methods of promotion, Gifts is the most popular with 36%
preference. One of the reason behind this could that Gifts has this surprise element
attached with it and the consumer is always excited about it. Next is Extra Quantity in the
same pack scheme with 33% preference, this is preferred because it gives you more
quantity at the same price. Trial Packs get 26%, trial packs could be of the same product or
of related product. Lucky Draws are not at all popular among the Indian consumer, reason
could be it has element of luck attached with it and consumer does not want to take risk for
it.
96
Yes No
Satisfied after availing schemes 116 36
Would you recommend 124 28
124
116
100
120
140
36
20
40
0
60
80
Yes
28
No
Interpretation:This shows that more than 75% of the consumers who have availed these promotional
schemes were satisfied from it. It means that the marketers have been able to hit the right
spot which is evident from the satisfaction level shown in this survey. Once a consumer is
satisfied with the product and its sales promotion, he will come back and buy the same
brand or he may buy larger quantity at first instance.
124 people will recommend these schemes to their friends and relatives. This means even
though some people are themselves not satisfied, they will still recommend it. For company
a good scheme means not only promotion through that particular scheme but also through
Word of Mouth ultimately.
97
How many people prefer trying skin care products before using it?
114
No
38
114
100
120
38
20
40
60
0
80
Yes
No
Interpretation:Out of population of 152, 114 people will prefer trying that particular product before buying
it. FEM can use this as promotional scheme to make skin care product buyer use their
product. Once a consumer tries and likes the quality of the product, he/she may tend to
switch the brand as well. Like this FEM will not only gain confidence of its existing customers
but will also get new customers as well.
98
Findings from the above study are as follows:Most of the people visiting modern trade outlets are in the age group of 18 to 35 and
in that as well if we see the number of females arriving is more as compared to men.
There is a growing trend of females becoming the decision maker in buying
household products.
FEM brand awareness is good. People are aware of the various products lines that
Most of the users FEM products are females because Bleach, Hair Removal are
Among the usage of products, Bleach and Hand Wash takes the market. In fact, FEM
is the market leader in Bleach category. Hand Wash being not so popular still tops
the survey. I am not really sure how this thing happened because when I was on
store visits I noticed that not many people actually preferred FEM Hand Wash.
There is no change required in the pricing of FEM since most people are seem to be
99
Not many people are aware of various promotional methods adopted by FEM.
Reasons could be that FEM has never spent large chunk of money on its promotional
activities. Whatever has been done, its all on a very small scale.
People who were interviewed think that while promotion for Hand Wash is below
average, for other 2 categories; Bleach and Hair Removal its average or above
average.
Because FEMs overall promotional strategy is not very consistent and it does not
offer schemes on regular basis, not many people have bought its
products under
consumer promotion offer.
Sale promotion affects buying behaviour of a lot of people. If offered good scheme
consumer tends to move from its current brand to another brand which is offered
with the valuable scheme for consumer.
Among the consumers Buy one get one free scheme is very famous as it doubles the
quantity at the same price. Next is discount scheme which again saves money of the
buyer.
In the non-monetary category 25% extra and gift pack schemes are very famous.
If a person likes the scheme, he does tend to recommend it to his friends and
relatives, which bring in more consumers and thereby increase volume of sale.
3 categories of FEM fall under one of the stages of product life cycle.
Hair Removal Cream According to me, FEMs hair removal cream is in its Introduction or
Infancy stage. Reasons could be, it has not been very long since the time it has been
launched and moreover India is still new to the concept of Hair Removal Cream.
Liquid Hand Wash FEMs Hand Wash is in its Growth stage. Because hand wash does exist
in India since long, still a lot of people prefer to use normal soap bricks in the Indian
household because it stays for a long time and wastage is also very nominal.
Bleach FEMs bleach is also in it Growth stage. Bleaches do exist in the Indian market but
its usage is on a rise since last few years.
101
RECOMMENDATIONS
102
Recommendations
Part 1
To counter the problem of Fill Rate what we can do is, in the purchase order if a
particular product is not available we can send the higher quantity of the different
size of same product. Example if there is order of 100 units of fem pink bleach in 25
gram and 50 gram each. Now if the 50 gram is not available we can send 50 extra
units of 25 gram. By doing this we will not lose the sale and customer since we are
substituting his demand to small unit of same product. Other than this, we can also
make the forecasting process more accurate so that company is not short of goods.
While retailers concentrate more on the sale Bleach, as it is highest selling product of
FEM, they should not avoid other SKUs. We can give them
more margins on the sale
of Hand Wash and Hair Removal Category. Special retail
schemes can also be
introduced like, on purchase of 500 units of Hand Wash 100
units free. This will not
only motivate the retailer to sale slow moving products but will
Regular
survey should
be done
also increase
the
salein these retail chains to see, what kind of variant of
the product and size of the pack is preferred by the consumers. Feedback and
for the company. Giving special discount schemes and high
suggestions can be taken through online surveys.
margins to retailers will
also improve relationship between the company and the retail
A
special dedicated small van should be taken for transport of FEM products to
chain.
various stores so that FEM order does not have to wait
Minimum Base Quantity should not be the same throughout the month. Since there
Margin should be setup keeping in view the competitive scenario. Low margins can
demotivate the retailer. Healthy margins keep the retailers on their toes and it also
motivates them to sell product since that gives them higher margin and higher
revenue.
Credit issues should be avoided. Retailer, distributors and company should follow
the contract, any conflict should not affect the sale the products.
A notification should be sent to all the distributors and retailers in case company
Recommendations
Part 2
Since major part of the FEM consumers is in the age group of 18 to 35 and in that
most of them are females. FEMs brand and consumer promoti on should be done
keeping in my mind segment of Females aging within 18-35.
While this is primary target segment, men of same age group can also targeted
FEMs should concentrate more on the promotion of Hand Wash and Hair Removal
since its sale is still very low as compared to the sale of Bleach.
FEM also needs to keep its promotional activity consistent throughout the year, to
Since people prefer more of Monetary scheme over Non-Monetary scheme, our
strategy should be such that it includes more of monetary scheme and less of NonMonetary. Company should not concentrate of either of the two but on both of
them. Strategy should be made to make use of both the techniques of promotion
efficiently.
105
According to the Analysis done above related to product life cycle stage of different
FEMs bleach category also falls under Growth stage. But since its a
106
CONCLUSION
The Gap analysis in distribution, assortment and MBQ levels and designing the promotion
mix strategy were successfully developed and analysed for FEM products naming; Bleach,
Liquid Hand Wash and Hair Removal Cream. Certain gaps in the distribution should be given
serious consideration by the company. Analysis done on promotion can be helpful in
determining the schemes that are preferred by the buyers the most.
Detailed recommendations on both the parts of the projects have been given. Information
on improving the various loopholes that exist in the distribution structure has been listed in
the report. Some limitations were faced during the collection of data from various sources.
But the same has been overcome with the help of Dabur Management and Distributors of
Dabur. Various promotional schemes have been provided in the recommendations and the
data to validate it as well.
The project was carried out in a good manner and has met the expectations of the
organization and the institute satisfactorily, though it still has quite some scope for
improvements which could be incorporated subsequently.
107
REFRENCES
1. www.google.com
2. www.wikipedia.com
3. http://www.dabur.com
4. http://www.femcareworld.com
5. http://www.supplychainmetric.com
6. http://retail.about.com
7. http://www.citesales.com
8. http://www.bizmove.com/general/m6h5.htm
9. www.docshare.com
10. http://www.indiaprwire.com
108
BIBLOGRAPHY
1. Tapan K. Panda; Sunil Sahadev; (2009) Sales and Distribution Management, Oxford
University Press.
2. Tony Yeshin; (2006) Sale Promotion, Thompson Learning
3. Havaldar, Cavale Krishna, Vasant; Sales and Distribution Management, Tata McGrawHill.
109
nnexure
110
Annexure 1
111
Annexure 2
112
Annexure 3
113
Annexure 4
114
Annexure 5
115
Annexure 6
116
Annexure 7
117
Annexure 8
118
Annexure 9
119
Annexure 10
120
Annexure 11
FEM Questionnaire
Q1. Are you aware of FEM as a brand?*
Yes
No
Newspaper
Internet
No
Q5. Did you ever experience unavailability of FEM product in general stores?
Yes
No
May Be
Q7. Are you aware of the Sale Promotion being done by FEM?*
Yes
No
May Be
121
Store Visit
Other
Q16.PoorDo you
your friends
relatives to avail these
Belowrecommend
Average
Average
Good and Excellent
promotional schemes?*
No
Hair Yes
Removal Cream
Poor
Below Average
Average
Good
Excellent
Q10. Have ever bought a FEM product under promotion scheme, if yes? Which product?*
Yes
No
If Yes ___________
Q11. Does Sale Promotion really influence your buying behaviour while purchasing any product?*
Yes
No
May Be
Q18. Do you prefer to try skin care product before buying them?*
Q12. WhichYes
method of Promotion do you prefer?*
No
Monetary
Non-Monetary
Q19. Gender*
Male
Discount
(Ex. Rs. 10 off)
Female
122
123
Q20. Occupation*
Student
Self Employed
Q8.
How do you
think is FEM's overall sale
promotion strategy?*
House
Wife
Other
Poor
Below Average
Average
Good
Excellent
Q9. Rate the promotion done by FEM for each of the below mentioned products*
Q21. Age*
Service