ITC LIMITED

[“COMPARATIVE ANALYSIS
OF ITC LTD. PERSONAL
CARE PRODUCT V/S HUL” ]
Parul Institute of Management Vadodara PGDM 2009-11

“A PROJECT ON”

“COMPARATIVE ANALYSIS OF ITC LTD. PERSONAL CARE

PRODUCT V/S HUL”
REPORT SUBMITTED IN PARTIAL FULFILLMENT FOR THE REQUIREMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

2009-2011

PARUL INSTITUTE OF MANAGEMENT

VADODARA

GUIDED BY: STUDENT NAME :

ANKUR SHUKLA SANDEEP TIWARI

AE PERSONAL CARE PRODUCT PGDM, 2009-2011

Parul Institute of Management Vadodara PGDM 2009-11

Acknowledgements

The author are highly grateful to Mr. Anirudha Tambe and Director Parul institute of
management for providing this opportunity to carry out the 2 month industrial training at
“ITC LIMITED” under the great guidance of Mr. Ankur Shukla Our sincere thanks to all
the people who have contributed to and worked on this making the Report. The author
expresses gratitude to my faculty members of Marketing Department and for their
intellectual support throughout the course of this work. Finally, the author is indebted to
all whosoever have contributed in this report work.
Parul Institute of Management Vadodara PGDM 2009-11

Contents

S.no. Title Page no.

Certificate
*
1. Acknowledgement 3
2. Company Profile 5-10
3. Mission, Vision, Value & Awards 11-17
4. Products Overview 18-22
5. Project Objective 23
6. ITC & HUL Personal care products 24-47
7. Supply chain ITC ltd. v/s HUL 48-52
8. Schemes & basic terms 53-56
9. e-CHOUPAL V/S PROJECT SHAKTI 57-59
10. BCG Matrix ITC V/S HUL 60-69
11. Sales Report ITC V/S HUL 70-72
12. Findings and suggestion 73-74
13. Conclusion 75
14. Bibliography 76
15. Reference 77
Parul Institute of Management Vadodara PGDM 2009-11

COMPANY OVERVIEW
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company
of India Limited. As the Company's ownership progressively Indianised, the name of the
Company was changed from Imperial Tobacco Company of India Limited to India
Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of
the Company's multi-business portfolio encompassing a wide range of businesses -
Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and
Personal Care - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'.

The Company’s beginnings were humble. A leased office on Radha Bazar Lane,
Kolkata, was the centre of the Company's existence. The Company celebrated its 16th
birthday on August 24, 1926, by purchasing the plot of land situated at 37,
Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This
decision of the Company was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into India's future. The Company's headquarter
building, 'Virginia House', which came up on that plot of land two years later, would go
on to become one of Kolkata's most venerated landmarks.

Though the first six decades of the Company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the
Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company.
Parul Institute of Management Vadodara PGDM 2009-11

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward

integration for ITC's Cigarettes business. It is today India's most sophisticated
packaging house.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in

Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of
ITC's entry into the hotels business was rooted in the concept of creating value for the
nation. ITC chose the hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure

and generate large scale direct and indirect employment. Since then ITC's Hotels
business has grown to occupy a position of leadership, with over 100 owned and
managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India.
Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboards Division. In
November 2002, this division merged with the Company's Tribeni Tissues Division to
form the Paperboards & Specialty Papers Division. ITC's paperboards' technology,
productivity, quality and manufacturing processes are comparable to the best in the
world. It has also made an immense contribution to the development of Sarapaka, an
economically backward area in the state of Andhra Pradesh. It is directly involved in
education, environmental protection and community development. In 2004, ITC
acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer
service with reduced lead time and a wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. Since inception, its shares have been held by ITC, British American Tobacco
and various independent shareholders in Nepal. In August 2002, Surya Tobacco
became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private
Limited (Surya Nepal).
Parul Institute of Management Vadodara PGDM 2009-11

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing

company and a major supplier of tissue paper to the cigarette industry. The merged
entity was named the Tribeni Tissues Division (TTD). To harness strategic and
operational synergies, TTD was merged with the Bhadrachalam Paperboards Division
to form the Paperboards & Specialty Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business
Division for export of agri-commodities. The Division is today one of India's largest
exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in
2000 with Soya farmers in Madhya Pradesh. Now it extends to 10 states covering over
4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in
August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now
operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with
the launch of Expressions range of greeting cards. A line of premium range of
notebooks under

brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider

student population, the popular range of notebooks was launched under
brand “Classmate” in 2003. “Classmate” over the years has grown to become India’s
largest notebook brand and has also increased its portfolio to occupy a greater share of
the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books,
Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC
repositioned the business as the Education and Stationery Products Business and
launched India's first environment friendly premium business paper under
the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive
stationery and office consumables segment. Paperkraft entered new categories in the
office consumable segment with the launch of Text liners, Permanent Ink Markers and
White Board Markers in 2009.
Parul Institute of Management Vadodara PGDM 2009-11

ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain
of exclusive stores later expanded its range to include Wills Classic formal wear (2002)
and Wills Club life evening wear (2003). ITC also initiated a foray into the popular
segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle
became title partner of the country's most premier fashion event - Wills Lifestyle India
Fashion Week - that has gained recognition from buyers and retailers as the single
largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC
launched a special 'Celebration Series', taking the event forward to consumers.

In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC InfoTech is one of India’s fastest growing global IT
and IT-enabled services companies and has established itself as a key player in
offshore outsourcing, providing outsourced IT solutions and services to leading global
customers across key focus verticals - Manufacturing, BFSI (Banking, Financial
Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and Media & Entertainment.

ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in
August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes. In 2002, ITC entered the confectionery and staples segments with the launch of
the brands mint-and Candyman confectionery and Aashirvaad atta (wheat flour). 2003
witnessed the introduction of Sun feast as the Company entered the biscuits segment.
ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight
years, the Foods business has grown to a significant size with over 200 differentiated
products under six distinctive brands, with an enviable distribution reach, a rapidly
growing market share and a solid market standing.
Parul Institute of Management Vadodara PGDM 2009-11

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire

value chain found yet another expression in the Safety Matches initiative. ITC now
markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim
Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis in 2003.marked the manifestation of its
partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body
care products for men and women in July 2005. Inizio, the signature range
under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines
for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of
bringing world class products to Indian consumers the Company launched 'Fiama Di
Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October
and December 2007 respectively. The Company also launched the 'Superia' range of
Soaps and Shampoos in the mass-market segment at select markets in October 2007
and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in
June 2008.
Parul Institute of Management Vadodara PGDM 2009-11

Board of Director
Chairman's Statement
ITC's Vision and Strategy
"Envisioning a larger societal purpose ('a commitment beyond the market') has always
been a hallmark of ITC. The Company sees no conflict between the twin goals of
shareholder value enhancement and societal value creation. The challenge lies in
fashioning a corporate strategy that enables realization of these goals in a mutually
reinforcing and synergistic manner"

Y.C. Deveshwar (Chairman)

Executive Director
Anup singh k.Vaidyanath
Parul Institute of Management Vadodara PGDM 2009-11

Non-Executive Director
Anil Baijal R K Kaul S H Khan
S B Mathur D K Mehrotra H G powell
P B Ramanujam Anthony Ruys Basudeb
SenB Vijayraghvan

MISSION & VISION

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

Company’s stakeholders .
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value
Parul Institute of Management Vadodara PGDM 2009-11

ITC's Core Values

 
ITC's Core Values are aimed at developing a customer-focused, high-performance
organization which creates value for all its stakeholders:

Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by
all our stakeholders. We will actualize stakeholder value and interest on a long term
sustainable basis.

Customer Focus

We are always customer focused and will deliver what the customer needs in terms of
value, quality and satisfaction.

Respect For People

We are result oriented, setting high performance standards for ourselves as individuals
and teams. We will simultaneously respect and value people and uphold humanness
and human dignity. We acknowledge that every individual brings different perspectives
and capabilities to the team and that a strong team is founded on a variety of
perspectives.

We want individuals to dream, value differences, create and experiment in pursuit of

opportunities and achieve leadership through teamwork.
Parul Institute of Management Vadodara PGDM 2009-11

Excellence

We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation

We will constantly pursue newer and better processes, products, services and
management practices.

Nation Orientation

We are aware of our responsibility to generate economic value for the Nation. In pursuit
of our goals, we will make no compromise in complying with applicable laws and
regulations at all levels.

ITC BRANCH OPERATION STRUCTURE

ITC HO

DO WEST 6 DO EAST 7 DO NORTH DOSOUTH 8

BRANCH BRANCH 6 BRANCH BRANCH

Bhopal
branch

Branch Mgr.

Assit.Mgr Assit. Mgr Assit. Mgr

cigg.+matc. GR1+GR3 pcp+agbtti
 Parul Institute of Management Vadodara PGDM 2009-11

Area. Mgr
statnry prdt

Area Mgr Area Mgr Area Mgr Area Mgr

Bhopal Indore Gwalior Jabalpur

Area Execu. AreaExecu. Area Execu. Area Execu.

All AE visited to the all WD (in Bhopal 5 WD)

ITC operational structure is shown above ITC 4 DO and every DO have 6 to 8 branches
and every branch have area circle and every circle have section and every section have
WD. In the Bhopal branch 1 branch manager and under him 3 assistant manager of each
business division GR1, GR2, GR3, GR4 (GR1 food division, GR2 personal care product
and agarbatti GR3 bingo and GR4 for cigarettes) and every assistant manager have
area manager and every area manager have area executive for each GR. Area
executive are responsible for sale of the product through distributor and increasing sale
maintain relation with WD and training sales man information about product its variant
and scheme and competitors.

Account manager for key accounts of the department and stationery product have AM
who is direct reporting to the BM. All Area Executive are reporting to the Area manager
and Area manager are reporting to the Assistant manager and Assistant manager
reporting to the Branch managers.

Major Business of ITC

Parul Institute of Management Vadodara PGDM 2009-11

 Trade marketing and distributor(TM&D)

 Agro - business division (ABD)

 Indian leaf tobacco division (ILTD)

 Food business division (FBD)

 Paper boards and packaging division(PB&PD)

 New business division (NBD)

 Personal care product division (PCPD)

 Agarbatti division (AD)

 Matches division (MD)

 Life style retail business (LRBD)

 Hotel division (HD)
 ITC InfoTech

AWARDS OF ITC
Parul Institute of Management Vadodara PGDM 2009-11

ITC constantly Endeavour’s to benchmark its products, services and processes to

global standards. The Company's pursuit of excellence has earned it national and
international honors’. ITC is one of the eight Indian companies to figure in Forbes A-List
for 2004, featuring 400 of "the world's best big companies". Forbes has also named ITC
among Asia's Fab 50' and the World's Most Reputable Companies.

ITC has several firsts to its credit:

1. ITC is the first from India and among the first 10 companies in the world to publish its
Sustainability Report in compliance (at the highest A+ level) with the latest G3
guidelines of the Netherlands-based Global Reporting Initiative (GRI), a UN-backed,
multi stakeholder international initiative to develop and disseminate globally applicable
Sustainability Reporting Guidelines.

2. ITC is the first Indian company and the second in the world to win the prestigious
Development Gateway Award. It won the $100,000 Award for the year 2005 for its
trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural
India. The Development Gateway Award recognizes ITC's e-Choupal as the most
exemplary contribution in the field of Information and Communication Technologies
(ICT) for development during the last 10 years. ITC e-Choupal won the Award for the
importance of its contribution to development priorities like poverty reduction, its scale
and reliability, sustainability and transparency.

3. ITC has won the inaugural 'World Business Award', the worldwide business award
recognizing companies who have made significant efforts to create sustainable
livelihood opportunities and enduring wealth in developing countries. The award has
been instituted jointly by the United Nations Development Program (UNDP),
International Chamber of Commerce (ICC) and the HRH Prince of Wales International
Business Leaders Forum (IBLF).
Parul Institute of Management Vadodara PGDM 2009-11

4. ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate
Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line
benchmarks of building economic, social and natural capital for the nation.

5. ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility

(Asia)' in 2007, the Award for ‘CSR in Emerging Economies 2005’ and ‘Excellence in
Corporate Governance' in the same year. These Awards have been instituted by the
Institute of Directors, New Delhi, in association with the World Council for Corporate
Governance and Centre for Corporate Governance.

6. ITC Hotel Royal Gardenia, Bangalore is the first Indian Hotel and world's largest, to
get the LEED Platinum rating - the highest green building certification globally.

7. The Company's Green Leaf threshing plants at Chirala and Anaparti in Andhra

Pradesh are the first units of their kind in the world to get ISO 14001 environment
management systems certification.

8. ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality
certification and the first among cigarette factories in the world to be awarded the ISO
14001 certification.

9. ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO
14001 Environment Management Systems certification.

10. ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001.

11 ITC InfoTech finds pride of place among a select group of SEI CMM Level
5companies in the world.

12. ITC's Green Leaf threshing plant in Chirala is the first in India and among the first 10
units in the world to bag the Social Accountability (SA 8000) certification.
Parul Institute of Management Vadodara PGDM 2009-11

Year Award
2010 The U.S.-India Business Council (USIBC) Award for Global
Leadership.
2007 SAM/SPG Sustainability Leadership Award conferred at the
International Sustainability Leadership Symposium, Zurich.
2006 Business Person of the Year from UK Trade & Investment, the
UK Government organization that supports overseas businesses
in that country.
2006 Inducted into the `Hall of Pride' by the 93rd Indian Science
Congress.
2005 Honored with the Teacher's Lifetime Achievement Award.
2001 Manager Entrepreneur of the Year from Ernst & Young Retail
Visionary of the Year from Images, India's only fashion and retail
trade magazine.
1998 Honorary Fellowship from the All India Management Association
1996 Distinguished Alumni Award from IIT, Delhi.
1994 Marketing Man of the Year from A&M, the leading marketing
magazine.
1986 Meridian Hotelier of the Year.

PRODUCT OVERVIEW
Parul Institute of Management Vadodara PGDM 2009-11

ITC’s BUSINESS
Parul Institute of Management Vadodara PGDM 2009-11

FMCG
 CIGARETTES
 FOODS
 LIFESTYLE RETAILING
 PERSONAL CARE
 EDUCATION & STATIONERY
 MATCHES
 AGARBATTIES

HOTEL
 WELL- COME GROUP

PAPERBOARDS & PACKAGING

 PAPERBOARD & SPECIALTY PAPER
 PACKAGING

AGRI- BUSINESS
 AGRI COMMODITIES
 e – CHOUPAL
 LEAF TOBACCO

INFORMATION TECHNOLOGY
 ITC INFOTECH
Parul Institute of Management Vadodara PGDM 2009-11

PRODUCT INFORMATION AND LABELLING

The FMCG cigarettes business complies fully with the following Acts with relevant
amendments:

 Standards of weight and Measures Act

 Cigarettes Act
 Central excise Act
 COPTA (cigarettes and other Tobacco Products Act)

The business has provision in place to ensure validation of the product with respect to
all relevant statutes prior to commercial launch.

At the design stage of any new product, a rigorous system of approval, following the
principal of Six Sigma, has been instituted. One of the define stages is the confirmation
of adherence to all the statutes listed above by an internal legal expert. This ensures
that every new product complies with all relevant Acts and laws before specification are
finalized. Finally, the product design is approved by the corporate management
committee.

In, addition for every product and process of manufacture, there are quality protocols to
ensure adherence to specification. The statutes applicable to factory operation have
been converted into standardized checklist. These checklists are constantly updated by
central expert panel to reflect any changes in Acts and laws.

Each operating business unit ensures that these checklists are adhered to and there is
a formal report back from the Head of Departments/units confirming adherence. The
Divisional and corporate management committees also review this periodically.

The food business Complies with all statutes relevant to packaged Food products
(including statutes on labeling and product information), which include:

Prevention of food Adulteration Act, Standard of weights & Measures Act, food products
order Packaged commodity Rules
Parul Institute of Management Vadodara PGDM 2009-11

To ensure continuous compliance with the statutes, there is an internal mechanism of

checks and compliance certification by operating managers.

In addition to statutory requirements, the business ensures voluntary declaration of

nutrition facts in the final packaging of its Ready-to-Eat products.

In the greeting, gifting and stationery business every ‘Expressions’ product is old under
strict adherence to product information and labeling requirement. Every stationery
product carries on its label the month/year of manufacture, paper parameters (Size and
GSM), number of pages and category (consumer choice). The business complies with
the requirements of the standard of weight and measures act (including the packaged
commodity Rules) and has in built system to ensure compliance including review before
the launch of new category.

In the hotel business, the company does not produce and sell any packaged product.
However

Product information regarding Rooms and food & Beverage is communicated through
brochures, in-room literature and the website.

In the paperboards & specially papers business product development is an integral part
of the marketing and process function. All new product ideas are taken through the
development protocol and after establishing technical feasibility and commercial
viability, trials are undertaken at the manufacturing location. At this stage a development
specification is drawn out which, after three manufacturing runs, is drawn out into a final
specification sheet keeping in mind the customer requirement and the process
capability.

In this business, information about the product, covering relevant technical parameter
agreed and finalized with the customer is documented in the product specification
sheet. Quality Assurance certificates are issued for the consignment on request from
customer. The label on each product pack bears the product name, substance, size,
weight and batch/reference number for effective traceability. All product specification
are reviewed once a year and changes are incorporated wherever necessary.
Parul Institute of Management Vadodara PGDM 2009-11

In the packaging and printing business all packages are bar coded. The product is
checked as per internal quality procedure/agreement with customer before dispatch.

In Agri business products are primarily on a b2b basis and are labeled to meet customer
requirement on either quality parameters, shipping marks or any importing country
labeling requirements. These may where required be accompanied by the phytosanitary
certification, surveyor quality reports chamber of commerce etc. all statutory
requirements to export are complied with.

In the leaf tobacco business all products are labeled to meet customer specification.
Labels normally contain information about the grade, crop year, weight, lot no., date and
the location where the product is packaged, and in certain cases, the destination and
the customer that the product is intended for.

All the packages are bar coded. The products scrupulously confirm to the prescribed
chemistry (sugars, Nicotine, chloride), particle size distribution, stem content, and the
packing (Moisture and Temperature) requirement of the customer. The protocols for
testing and tolerances are specified by the customer.

The manufacturing units at Anaparti and chirla are ISO 9001: certified. The quality
procedures for the above parameter are clearly enunciated in ISO 9001 manual.

The units have advanced System to monitor strict adherence to process and packing
specification laid down by the customer. In addition to providing information, samples
from the final packages are sent to customer for cross-verification in their laboratories.
The barcode label on packed product ensures ‘product traceability’ in the tobacco
supply chain from farm to the customer. This initiative enables tracking the sourcing of
green leaf to the farm, crop year the operating parameter during processing and the
product packing and delivery stages.

In the Lifestyle Retailing business, the entire products are labeled to confirm to statutory
requirements. Additional information on attributes of the product is given to inform the
consumer of the salient features of the product. The product also carries instruction on
handling and care.
Parul Institute of Management Vadodara PGDM 2009-11

OBJECTIVE OF THE PROJECT

Analysis of HUL and ITC’s personal care product and find out the schemes, distribution
channel and analysis of the project Shakti and find out the HUL personal care products.
Which are competing the ITC’s personal care products Comparison of sale ITC’s And
HUL in Bhopal City in soaps & shampoos.
Parul Institute of Management Vadodara PGDM 2009-11

ITC & HUL PERSONAL CARE PRODUCT

Parul Institute of Management Vadodara PGDM 2009-11
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Brand ambassador of itc ltd. Personal care:

 Kareena kapoor for vivel Di wills
 Dipikka padukone for Fiama DI wills
 Trisha for Superia
 Hrithik Roshan for Vivel ultra-Pro

Personal care product hul

Parul Institute of Management Vadodara PGDM 2009-11

Lux Liril Rexona Sunsilk

Dove Rexona Lifebuoy Ponds
Pears Clinic Plus Fair & Lovely
Breeze clinic all clear AXE
Parul Institute of Management Vadodara PGDM 2009-11

Superia shampoo v/s clinic plus

Parul Institute of Management Vadodara PGDM 2009-11

The Superia ranges of shampoos have been launched to cater to the large popular
market in the personal care category. The products under the superia brand are made
from scientifically developed formulation enriched with natural ingredients that have
traditionally been known to be good for the skin and hair.

The range offers consumers access to some of the best-in-class products in vibrant
attractive packaging.

Superia shampoo with triple conditioners and natural ingredients bring a natural shine to
hair. Superia shampoos are available in two variants:

1. Shiny black with triple conditioner and natural goodness of hibiscus & Brahmi
extracts.
2. Vibrant Green with triple conditioner and the natural goodness of Amla &
Arnica extracts.
3. Maxi protect Active Health shampoo contains Dandruff Fighter along with
Vitamins & Soya Protein. It fights multiple types of dandruff causing germs and
leaves hair & scalp feeling clean & healthy.

Clinic health shampoo was launched in India in the year 1987.it is India’s largest
selling shampoo, offering the five most important hair health benefits strengthens weak
hair, prevents hair breakage, softness rough dry hair, shine for thick and healthy hair,
and contains anti- dandruff ingredient.

The franchise also include clinic all clear total, first introduced in 1996. It is a dual
shampoo – it is not only fighting the last dandruff flake, but also adds back lost nutrients
to make hair healthy and beautiful. Clinic all clear dandruff solution for everyday use.

SUPERIA SHAMPOO V/S CLINIC PLUS SHAMPOO

Parul Institute of Management Vadodara PGDM 2009-11

Basis ITC HUL

PRODUCT SHAMPOO SUPERIA CLINIC PLUS
QUANTITY 4/8/50/100 ml 3.5/6.5/40/100/200/400 ml
PRICE .5/1/7/15 Rs .5/1/10/46/72/149 Rs
CFC/CLD 3000/1920/24/12 unit 1280/1536/144/72/36/18 ut
WD/RS MARGIN 3% 5.76%/2.76%
MARGIN IN SHAMPOO 23% on sachet 10% btl 23% on sachet 10% btl
PTR .40/.81/6.36/13.63 .40/.81/9.09/41.81/65.45/
VARIANT MAXI PROTECT CLINIC PLUS
VIBRENT GREEN CLINIC+ ANTI DANDRUFF
SHINY BLACK CLINIC+AYURVEDIC
SALE IN BHOPAL 1736 ltr 68167 ltr
SEGMENT POPULAR POPULAR

SUPERIA SOAP V/S BREEZE

Parul Institute of Management Vadodara PGDM 2009-11

The superia ranges shampoos have been launched to cater to the large popular market
in the personal care category. The products under the superia brand are made from
scientifically developed formulation enriched with natural ingredients that have
traditionally been known to be good for the skin and hair.

The range offers consumers access to some of the best –in-class products in vibrant
attractive packaging.

Superia soaps enriched with natural ingredients give radiant glowing skin.

Superia soaps are available in five variants:

. Fragrant Flower: with the fragrance of

Rose & Lavender Oil
. Soft Sandal: with the fragrance of Sandal &
Almond Oil
. Natural Glow: with Neem & Coconut Oils
. Healthy Glow: with Orange Oil

Lemon fresh is another variant launch under in superia soap.

Breeze

Breeze scent magic is the soap which fulfills the aspirations of women of rural India.
Breeze has offered them ‘beauty at an affordable price’ make them beautiful.

Breeze comes in 4 exotic fragrances – Rose, Sandal, lime, Rajnigandha. All this at very
affordable price for the masses.
Parul Institute of Management Vadodara PGDM 2009-11

SUPERIA SOAP V/S BREEZE SOAP

BASIS ITC HUL

PRODUCT SOAP SUPERIA BREEZE
QUANTITY 41/70/90/120 50/90/125 gm
PRICE 5/30/30/50 5/30/50
CFC/CLD 216/36/48/24 144/36/30
WD/RS MARGIN 3% 5.76%/2.76
MARGIN IN SOAP 8% 8%
PTR 4.62/27.77/27.77/46.29 4.62/27.77/46.29
VARIANT FRAGNENT FLOWER ROSE
LEMON FRESH LIME
SOFT SANDLE SANDLE
HEALTHY GLOW FRUIT
NATURAL GLOW MORNING MUSKAAN
RAJNIGANDHA
SALE IN BHOPAL 15282 Kg 32400 Kg
SEGMENT POPULAR POPULAR
Parul Institute of Management Vadodara PGDM 2009-11

VIVEL SHAMPOO V/S SUNSILK

The Vivel range of shampoos is available in three variants:-

 Vivel Shine & Glow is suitable for dull to normal hair and is enriched with Green
Tea Extract and Conditioners. It adds shine to hair.
 Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra
Conditioners and Soya Protein. It makes hair soft and fragrant. 
 Vivel Volume & Bounce is suitable for oily to normal hair and contains Jojoba
Oil and Conditioners. It adds volume and bounce to hair.

SUNSILK SHAMPOO : Sunsilk shampoo is available in the market different SKU’s and
different variant. Sunsilk shampoo have a strong demand in the market and HUL
shampoos market is majorly cover by Sunsilk.
Parul Institute of Management Vadodara PGDM 2009-11

VIVEL SHAMPOO V/S SUNSILK

BASIS ITC HUL

PRODUCT SHAMPOO VIVEL SUNSILK
QUANTITY 9.6/100/200 ml 6.5/6.5/40/100/200/400 ml
PRICE 2/49/89 1/2/15/54/105/169 Rs
CFC/CLD 360/12/12 unit 512/512/144/72/36/18 unit
WD/RS MARGIN 3% 5.76%/2.76
MARGIN 23% ON SACHET10 btl 23% ON SACHET10 btl
PTR 1.62/44.54/80.90 .81/1.62/13.63/49.09/95.45
VARIANT VOLUME BOUNCE DAMAGE REPAIR
SOFT & FRESH PINK
SHINE & GLOW YELLOW
BLACK
SMOOTH
HAIR FALL
SALE IN BHOPAL 246 ltr 605 ltr
SEGMENT Semi premium Semi premium

Vivel Soap

Between  February  and  June  2008, ITC expanded  its  personal  care  portfolio  with 
the launch of Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and Vivel,
a range of soaps cater to the specific needs of a wide range of consumers.

Vivel Di Wills and Vivel are high quality ranges of soaps for the upper-mid and mid-
market consumer segments. All products offer a unique value proposition of bringing
Parul Institute of Management Vadodara PGDM 2009-11

together ingredients that provide the benefit of Nourishment, Protection and

Moisturisation through one product, which makes her beautiful and confident.

The Vivel range of soaps is available in five variants:-

• Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in
providing youthful glow to the skin.
• Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel
beautifully soft.
• Vivel Sandal Sparkle is enriched with Sandalwood Oil and Active Clay which helps in
providing clear skin.
• Vivel Ayurveda Essence is enriched with multiple Ayurvedic Ingredients which help
protect skin from germs and harsh environment, keeping it healthy and beautiful.
• Vivel Silk Spring is enriched with Green Apple extracts and Olive oil which help in
making skin smooth.

Another one range of vivel soap in recently launch in the year 2010 that is vivel Deo
sprit.

VIVEL SOAP V/S LUX SOAP

BASIS ITC HUL

PRODUCT SOAP VIVEL LUX
QUANTITY 41/70/92/100/125 40/70/90/110
PRICE 5/10/54/15/70 6/10/15/52/65
Parul Institute of Management Vadodara PGDM 2009-11

CFC/CLD 192/144/36/24 192/144/36/30

WD/RS MARGIN 3% 5.76%/2.76%
MARGIN IN SOAP 8% 8%
PTR 4.62/9.25/50/13.89/64.81 6.48/9.25/13.88/48.14
VARIANT YOUNG GLOW PEACH AND CREAM
SATIN SOFT PURPLE
SANDLE SPARKLE PINK
VIVEL DEO SPRIT BLACK
SALE IN BHOPAL 4582 Kg 12000 Kg
SEGMENT Popular Popular

Lux International

Since 1929, Lux in step with the changing trends and evolving beauty needs of the
customers, offer an exciting range of soaps and body washes with unique element to
make bathing time more pleasurable. One can choose from a range of skin are benefits
like firming, fairness and moist ring.

Lux stands for the promise of beauty and glamour as one of India’s most trusted
personal care brands. Lux believes in passion for beauty. It continuous to be a favorite
with generation of users for the experience of a sensuous and luxurious bath. Lux
believes that femininity shouldn’t be denied. Since its launch in India in the year 1929,
Lux has offered a range of soaps in different sensuous colors and world class
fragrance. Lux is a beauty soap of film stars, lux recognize the need for a compelling
message about beauty that would resonate with women of today.
Parul Institute of Management Vadodara PGDM 2009-11

Lux has launched its two fruit extract variants – New Lux strawberry & cream and Lux
peach & cream contains a blend of succulent fruits & luscious Chantilly cream that melts
down into your skin making it soft and smooth.

The Vivel Di Wills range of Soaps is available in two variants.

• Vivel Di Wills Sheer Radiance is enriched with Olive Oil, to provide skin lustre to
make it radiant.
• Vivel Di Wills Sheer Crème is enriched with Shea Butter, to moisturize skin to make
it soft and supple.

VIVEL DI WILLS V/S LUX INTERNATIONAL

BASIS ITC HUL

PRODUCT SOAP VIVEL DI WILLS LUX INTERNATIONAL
QUANTITY 75/100 gm 100
PRICE 20/49 20
CFC/CLD 192/144 144
WD/RS MARGIN 3% 5.76%/2.76%
MARGIN IN SOAP 8% 8%
PTR 18.51/45.37 18.51
VARIANT SHEER RADIANCE LUX INTERNATIONAL
SHER CREAM
SALE IN BHOPAL 184 Kg 1918 Kg
SEGMENT Semi popular Semi popular
Parul Institute of Management Vadodara PGDM 2009-11

Fiama Di Wills v/s Dove

In September 2007, ITC launched Fiama Di Wills, a premium range of personal

care products comprising shampoos, conditioner, shower gels and bathing bar.
The Fiama Di Wills range combines the goodness of nature and science, providing
gentle and effective care. The Fiama Di Wills product portfolio has been developed
by scientists at the ITC R&D Centre, leveraging the expertise of International
product formulation specialists. The fragrances, aesthetics and packaging have
been developed in collaboration with European specialists.

Fiama Di Wills products are targeted at the young, modern, aware customers who
are confident of themselves and seek indulgences that make them feel alive and
beautiful. The range combines exotic naturals like Sage, Watercress, Magnolia
blossoms and the best of contemporary science like Hydro Restorative System and
Cuticle Restore Technology to make the consumer feel beautiful, today, tomorrow.
Parul Institute of Management Vadodara PGDM 2009-11

Fiama Di Wills Shampoos developed in collaboration with Cosmetic Labs Inc., USA,

offer a range of five variants. Each of these is designed to deliver a specific hair
benefit to the consumer-

 Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo

suitable for regular use.
 Aqua Balance (with extracts of Magnolia Blossoms & Watercress) is a gentle
moisturizing shampoo ideal for dry, dull hair.
 Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing
shampoo ideal for thin, limp hair.
 Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair
smooth, silky and strong and is ideal for weak, damaged hair.
 Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny
and manageable, easy to style and is ideal for dull to normal hair.
 Each of these shampoos can be complemented with Fiama Di Wills

The Fiama Di Wills product line also consists of a 3-variant range of

transparent shower gels which are unique as they come with suspended beads.

• Polishing Drops conditioner. This gentle conditioner enriched with

Avocado Oil and Burdock extract promises to make hair shiny, soft and
smooth. It also gives the additional benefits of UV protection as it contains
Sunflower Seed extract, which is a natural UV absorber.

• Mild Dew (contains soft beads, extracts of peach and avocado) is for soft,
moisturized skin.
• Clear Springs (contains jojoba beads, extracts of sea weed and lemongrass) is
for clear, healthy, smoother skin.
• Exotic Dream (contains glitter beads, extracts of bearberry leaves and black
currant) is for stimulating freshness.
Parul Institute of Management Vadodara PGDM 2009-11

The Fiama Di Wills range of bathing bars has been launched under the sub -
brand Skin Sense. The first variant to be introduced in this range is Soft Green. This
is a gentle caring bathing bar, that helps enhance retention of skin proteins giving 6
pro cares. Protein keeps skin moisturized, supple, youthful, even toned, radiant and
smooth.

FIAMA DI WILLS SHAMPOO V/S DOVE SHAMPOO

BASIS ITC HUL

PRODUCT SHAMPOO FIAMA DI WILLS DOVE
QUANTITY 9/100/200 9/100/200/500
PRICE 3/59/109 3/69/115
CFC/CLD 360/12/12 unit 512/72/36/12
WD/RS MARGIN 3% 5.76%/2.76%
MARGIN IN SOAP 23%on sachet 10% btl 23%on sachet 10% btl
PTR 2.43/53.63/99.09 2.43/62.72/104.54
VARIANT EVERY DAY MILD BREAKAGE THERAPY
AQUA BALANCE DAILY CARE THERPY
SILKY STRONG ANTI-DANDRUFF
VOLUME BOOST HAIR FALL THERPY
SHINE STYLE
SALE IN BHOPAL 236 ltr 805 ltr
SEGMENT Premium Premium
Parul Institute of Management Vadodara PGDM 2009-11

Fiama Di Wills recently launched a range of transparent gel bathing bars. A first of

its kind, a transparent liquid gel has been solidified into a bathing bar so that
consumers get a superior bathing experience. The shower gel in a bathing bar
format which has been crafted through a unique and patented freezing technology.
Backed by deep consumer insights, this proprietary gel bathing bar is a result of
years of extensive research and development by the scientists at the ITC R&D
Centre.
Uniquely crafted, these Gel Bathing Bars are shaped like dew drops, have a
transparent look, rich creamy lather, and a great long-lasting fragrance. These
bathing bars are dermatological tested and proven mild and contain the goodness
of natural exotic extracts like Peaches, Avocadoes, Sea Weed and lemongrass.
Launched in two variants that offer specific different skin benefits, are:-

Mild Dew - Contains extracts of peach and avocado which moisturize the skin.
Clear Springs Contains extracts of lemongrass & sea weed which gives Clear skin.
The Fiama Di Wills transparent Gel Bathing Bars are available at an attractive price
of Rs. 25 for 110 grams. This differentiated range of bathing bars offers the
consumer a delightful bathing experience  
Dove
Parul Institute of Management Vadodara PGDM 2009-11

Dove soap, which was launched by Unilever in 1957, has been available in India since
1995. It provides a refreshingly real alternative for women who recognize that beauty is
not simply about how you look, it is about how you feel.

The skin’s PH is slightly acidic 5.5-6 ordinary soaps tend to be alkaline, with PH higher
than 9. Dove is formulated to be PH natural (PH between 6.5 and 7.5) and to be mild on
skin. This makes it suitable for all skin types for all seasons. While Dove soap bar is
widely available across the country, Dove body wash is available in selected outlets.

Globally Dove has been extended too many other countries. Since the 1980’s for
example, Unilever has launched a moisturizing body –wash deodorant, body lotion,
facial cleansers and shampoos and conditioners, providing a comprehensive range of
solution to bring out true inner beauty.

FIAMA DI WILLS SOAP V/S DOVE SOAP

BASIS ITC HUL

PRODUCT SOAP FIAMA DI WILLS DOVE
QUANTITY 70/100/300 50/75/300
PRICE 30/40/100 20/33/125
CFC/CLD 72/72/24 unit 72/48/20
WD/RS MARGIN 3% 5.76%/2.76%
MARGIN IN SOAP 8% 8%
PTR 27.77/37.03/92.59 18.51/30.55/115.74
VARIANT Soft green Dove White
SALE IN BHOPAL 88 Kg 1512 Kg
SEGMENT Premium Premium
Parul Institute of Management Vadodara PGDM 2009-11

ITC V/S HUL SUPPLY CHAIN

ITC’S SUPPLY CHAIN STRUCTURE

COMPANY HUB FACTORY

CARRYING AND FORWARDING

AGENT

WHOLESALE DEALERS

SMALL WHOLESALE DEALER

RETAILER

CONSUMER
Parul Institute of Management Vadodara PGDM 2009-11

HINDUSTAN UNILEVER LIMITED SUPPLY CHAIN STRUCTURE

HINDUSTAN UNILEVER LIMITED

CARRYING AND FORWARDING AGENTS

REDISTRIBUTION
STOCKISTS

WHOLESALERS

RURAL URBAN RETAILER

RETAILER

CONSUMER
Parul Institute of Management Vadodara PGDM 2009-11

Distribution of goods in HUL

In Bhopal HUL have not opened the office they have a distributor who are working in the
Bhopal market. In the HUL RSM (Redistribution Stockiest Man) go to the market for
selling the product and take the order from retailer and wholesaler and also give
information about schemes upcoming product and they are collect cash from
shopkeeper and clear the bills of shopkeeper. Which order they are taking from the
shopkeeper they give the order to computer operator and operator is uploaded the data
in server of RS (Redistribution stockiest) then data is send to the branch office (Indore)
and in branch office planning committee is forward the data to C&F agent then C&F
agent make invoice and send the goods to the distributor and distributor supply goods in
the market.

HUL is working with secondary sale. Secondary sale means distributor to customer. The
distributor has not keep the stock, after the order goods will be sending by the C&F
agent to distributor and distributor provide the goods. HUL want to avoid the capital
blockage of RS. In the secondary sale method credit risk avoided and HUL get the
payment from customer within 15 days. HUL use a software that is known UNIFY and
for taking the order they are used HHT machine. In the HHT machine look like a big cell
Parul Institute of Management Vadodara PGDM 2009-11

phone and all products its variant margin cost, product cost, all the information which
are required a sales person to sale his product that is in the HHT. HUL has give credit
to his customer average 20 days (it’s depend upon product nature in food credit will be
for 7 days). HUL supply the goods to the customer after next day (n+2). In the HUL form
the company side any official visit of senior is not conducted.

HUL not give the salary of non - GTM sales man and the distributor expenses. HUL give
the ROI (Return on Investment) 20% to 24%. HUL give margin to GTM town 2.76%
(RSM salary is also given by the HUL) & non-GTM town 5.76% Gross margin.
Distributor will be bearing the cost of RSM. Non-GTM towns those distributor in HUL
who are Keep the stock in and they deal in semi urban area.

Distribution of goods in ITC

In the ITC Bhopal they are working on the primary and secondary sale both. ITC have 5
distributors in Bhopal and every distributor market is decided by the company. DS
(distributor salesman) go to the market selling goods taking the order give the
information about the schemes and check expiry of the goods and check the
replacement and also check the visibility of product in the soap and after this he collect
the cash from shop keeper. In ITC DS use VAJRA Machine for booking the order and
show the products adds upcoming products, price, margin, size in this machine. VAJRA
look like a big mobile phone under this all information related to products are in the
machine. Order which is taken by the machine sinks to the data to branch office. WD
system operator makes the invoice and sends goods to market next day. ITC give the K
4 to the WD and also give the salary of sales man and salary of supervisor distribution
cost per vehicle and give the supply cost of e-choupal. ITC give credit to his customer
for 15 days. In ITC Branch Manager Quarterly, Area Manager monthly, Area Executive
weekly visited in the market communicates with customer directly. They interact with
customer and if customers have any problem related to goods and services which is
Parul Institute of Management Vadodara PGDM 2009-11

provided by company they try to solve. They check stock is properly in the market or not
displays and ads are properly done or not.

ITC use software that is called SIFY. All the bills and detail information product wise,
variant wise, summarize sales reports are make in the help of this software. Format of
sales report code of the goods are in this.ITC give 3% margin to his distributors and
bear vehicle cost 380 Rs per vehicle.

ITC give training to his sales man for selling the goods in the market and give the
training how to use sales tools in the market how to communicate with customer.

Salesman operation

(S SMART C operation of ITC’s distributor salesman)

Salutation
Stock Check

Merchandising

Start with Scheme

Rigor in order looking

Take (replacement)

Collect Cash & close talk

Parul Institute of Management Vadodara PGDM 2009-11

All DS (Distributor salesman) in ITC follow this method to working in the market.ITC
maintain good relation with his customer, wholesale dealer, salesman through various
way and provide incentives to his WD and DS both.

For appreciation of salesman ITC organize the best salesman competition between the
salesman and the best selling WD between all WD.

Provide prizes and trophy to the winner for his work.

SCHEMES

Trade schemes
Consumer schemes
Trade activation schemes
Coupon schemes
Channel wise schemes
1. Whole seller
2. Mass retail channel
(Top end outlets) supercenters big bazaar
3. Modern trade
(Reliance fresh retail shops)
4. Kiosk (small shop keeper)
Parul Institute of Management Vadodara PGDM 2009-11

If we are compare the schemes ITC give less scheme to the shopkeeper but consumer
schemes are mostly with product for example conditioner free with shampoo bottle of
vivel and fiama Di Wills.

HUL give more schemes to the shopkeeper for selling goods trade activation schemes,
trade scheme and also give the consumer schemes.

In comparison of ITC, HUL give more consumer schemes and shopkeeper scheme
scratch coupon CLD.

HUL SCHEMES (CHANNEL WAISE SCHEMES)

VIJETA: In this scheme HUL gives power point to the shopkeeper for selling.

1point =1 Rs

1 point given to the shopkeeper when, then sale the goods up to 250 Rs. We can say
that selling of 250 Rs goods=1 point

SUPER VALUE SHOP: 5% On total sale

SMART: window display

CALCULATION OF PRICE TO RETALIER (PTR)

MAXIMUM RETAIL PRICE ( MRP)

PTR =
100 + % MARGIN

(KEY WORDS (MARK UP & MARK DOWN)

ITC V/S HUL

BASIS ITC HUL

Parul Institute of Management Vadodara PGDM 2009-11

BILL PRODUCTIVITY 55% 65%

UBO 90% 90%
AVERAGE LINE (PCP) 4.6 12
TDP 30/4 7DAYS 30/3 10DAYS

Basic concepts
What is merchandising?

To ensure sales, companies go to great lengths to make sure that their products are
visible in stores and are presented in an appealing, 'sellable' way. This is called
merchandising, which includes product packaging, placement, promotions and pricing to
appeal to the target market.

What is cash discount?

A reduction in the price of an item for sale allowed if payment is made within a stipulated period.

Point of sale (POS) or checkout is the location where a transaction occurs. A "checkout"

refers to a POS terminal or more generally to the hardware and software used for
checkouts, the equivalent of an electronic cash register.

Point of display

A point-of-sale display (POS) is a specialized form of sales promotion that is found near,

on, or next to a checkout counter (the "point of sale"). They are intended to draw the
customers' attention to products, which may be new products, or on special offer, and
are also used to promote special events, e.g. seasonal or holiday-time sales. POS
displays can include shelf edging, dummy packs, display packs, display
stands ,mobiles, posters, and banners.

What is primary and secondary sale?

PRIMARY SALES MEANS WHEN THE ORGANISATION SELLS OR MAKE FLOW OF
PRODUCT OR SERVICES TO THE CHANNEL PARTNERS.

EX: IN FMCG: C&F AGENTS, DISTRIBUTORS, And DEALERS

EX: IN FINANCIAL SERVICE: BUSINESS PARTNERS, FRANCHISEES,

Parul Institute of Management Vadodara PGDM 2009-11

SECONDARY SALES MEANS WHEN THE ORGANISATION SELLS OR MAKE FLOW OF

PRODUCT OR SERVICES TO END USERS.

EX: IN FMCG: RETAILERS, TRADE FAIRS, And PROMOTIONAL SALES

EX: FINANCIAL SERVICES: SALES DIRECTLY BY COMPANY EMPLOYEES

What is the distribution infrastructure?

Man power, salesman, relation in the market, market knowledge etc…..

What is the sales tool?

Schemes and offer are sales tools…….

Unique selling proposition

Real or perceived benefit of a good or a service that differentiates it from the competing brand and gives

its buyer a logical reason to prefer it over other brands.

Measurement of the product

Shampoo in litter

Soap in kilo gram

Foods in grams

Cigarette and agarbatti in (Ms 1M=1000 sticks)

Margin to retailer product wise

In a shampoo bottle (10%)

In a shampoo sachet (22%to 23%)

In a shop (8%)

In a agarbatti (22%)

In a matches box (not fixed)

Basic terms

UBO: Unique bill out let

Parul Institute of Management Vadodara PGDM 2009-11

ABV: Average bill value

CFC: collaret fiber container

ABL: Above the line

BBL: Below the line

TDP: Temporary dispatch time

e-Choupal v/s Project Shakti

FMCG companies are now targeting the rural markets. In spite of the income imbalance
between urban and rural India, rural holds great potential since 70% of India’s
population lives there. Due to the recent government measures like waiver of loans,
national rural employment guarantee scheme and increasing minimum support price,
disposable income in rural India has been rapidly increasing. However, rural markets
present their own sets of problems. These include poor infrastructure, dispersed
settlements, lack of education and a virtually nonexistent medium for communication.
Furthermore, retailers cannot be present in all the centers as many of them are so small
that it makes them economically unfeasible.

Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti. This
project was started in 2001 with the aim of increasing the company’s rural distribution
Parul Institute of Management Vadodara PGDM 2009-11

reach as well as providing rural women with income-generating opportunities. This is a

case where the social goals are helping achieve business goals.

The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the
executives of HUL identifying the uncovered village. The representative of the company
meets the panchayat and the village head and identify the woman who they believe will
be suitable as a SA. After training she is asked to put up Rs 20,000 as investment which
is used to buy products for selling. The products are then sold door-to-door or through
petty shops at home. On an average a Shakti Amma makes a 10% margin on the
products she sells.

An initiative which helps support Project Shakti is the Shakti Vani program. Under this
program, trained communicators visit schools and village congregations to drive
messages on sanitation, good hygiene practices and women empowerment. This
serves as a rural communication vehicle and helps the SA in their sales.

The main advantage of the Shakti program for HUL is having more feet on the ground.
Shakti Ammas are able to reach far flung areas, which were economically unviable for
the company to tap on its own, besides being a brand ambassador for the company.
Moreover, the company has ready consumers in the SAs who become users of the
products besides selling them.

Although the company has been successful in the initiative and has been scaling up, it
faces problems from time to time for which it comes up with innovative solutions. For
example, a problem faced by HUL was that the SAs were more inclined to stay at home
and sell rather than going from door to door since there is a stigma attached to direct
selling. Moreover, men were not liable to go to a woman’s house and buy products. The
company countered this problem by hosting Shakti Days. Here an artificial market place
was created with music and promotion and the ladies were able to sell their products in
a few hours without encountering any stigma or bias.

This model has been the growth driver for HUL and presently about half of HUL’s
FMCG sales come from rural markets. The Shakti network at the end of 2008 was
Parul Institute of Management Vadodara PGDM 2009-11

45,000 Ammas covering 100,000+ villages across 15 states reaching 3 m homes. The
long term aim of the company is to have 100,000 Ammas covering 500,000 villages and
reaching 600 m people. We feel that with this initiative, HUL has been successful in
maintaining its distribution reach advantage over its competitors. This program will help
provide HUL with a growing customer base which will benefit the company for years to
come.

e-Choupal is an initiative of ITC Limited, a large multi business conglomerate in India,

to link directly with rural farmers via the Internet for procurement
of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns.
e-Choupal was conceived to tackle the challenges posed by the unique features
of Indian agriculture, characterized by fragmented farms, weak infrastructure and the
involvement of numerous intermediaries. The program involves the installation of
computers with Internet access in rural areas of India to offer farmers up-to-date
marketing and agricultural information.

Effects of e-Choupal

ITC Limited has now provided computers and Internet access in rural areas across
several agricultural regions of the country, where the farmers can directly negotiate the
sale of their produce with ITC Limited. This online access enables farmers to obtain
information on mandi prices, and good farming practices, and to place orders for
agricultural inputs like seeds and fertilizers. This helps farmers improve the quality of
their products, and helps in obtaining a better price. Each ITC Limited kiosk having
Internet access is run by a sanchalak — a trained farmer. The computer is housed in
the sanchalak's house and is linked to the Internet via phone lines or by
a VSAT connection. Each installation serves an average of 600 farmers in the
surrounding ten villages within about a 5 km radius. The sanchalak bears some
operating cost but in return earns a service fee for the e-transactions done through his
e-Choupal. The warehouse hub is managed by the same traditional middle-men, now
Parul Institute of Management Vadodara PGDM 2009-11

called samyojaks, but with no exploitative power due to the reorganization. In deed
these middlemen make up for the lack of infrastructure and fulfill critical jobs like cash
disbursement, quantity aggregation and transportation.

Since the introduction of e-Choupal services, farmers have seen a rise in their income
levels because of a rise in yields, improvement in quality of output, and a fall in
transaction costs. Even small farmers have gained from the initiative. Customized and
relevant knowledge is offered to the farmers despite heterogeneous cultures, climates
and scales of production. Farmers can get real-time information despite their physical
distance from the mandis. The system saves procurement costs for ITC Limited. The
farmers do not pay for the information and knowledge they get from e-Choupals; the
principle is to inform, empower and compete. At the same time ITC Limited has
obtained benefits from the programme: elimination of non value added activities,
differentiated product through identity preserved supply chains, value added products
traceable to farm practices, e-market place for spot transactions and support services to
futures exchange. There are presently 6,500 e-Choupals in operation. ITC Limited plans
to scale up to 20,000 e-Choupals by 2012 covering 100,000 villages in 15 states,
servicing 15 million farmers.

BCG MATRIX OF ITC

Stars ?

• Hotels • FMCG- Others

• Paperboards/
Packaging.

• Agri business.
Parul Institute of Management Vadodara PGDM 2009-11

Cows Dogs

• FMCG-Cigarettes • Maybe ITC Infotech.

BCG MATRIX OF HUL

Star ?
Hair care, skin care Processed food

Premium soap, laundry Colour

Deodorant Cosmetics

Water (purelet)

Cow Dog
Mass soap

Beverages Sea food

Oral care

Laundry Export

PERSONAL CARE STAKE

BASIS SHAMPOO CONDITIONER SOAP
VALUE IN Rs. 2,605 Cr. 84 Cr. 7,967 Cr.
VALUE GROWTH % 18% 25% 18%
Parul Institute of Management Vadodara PGDM 2009-11

VOLUME IN LTR./KG 10,85,49,607 14,35,873 5,68,812,568

VOLUME GROWTH 14% 29% 4%

The Six Strategy of ITC for Personal care products

SEGMENTATION
Creating brands from scratch with no history and lineage, ITC used clear segmentation
Across its five product lines and the target audience.

GROUP SYNERGY
Once the five products were created and communication strategies set, ITC leveraged
Its properties like hotels, foods and apparel store network to retail these brands.

COMMUNICATION STRATEGY

Like HUL, these brands sport Western names, and different communication. Essenza &
Fiama, meant for the elite, have English communication, while Vivel & Superia use Hindi.

BRAND EXTENSIONS

Selective extensions as it doesn’t want to confuse consumers with too many irrelevant
Brand extension & sub-brands. The Essenza range is the only exception
.
BRAND AMBASSADORS
ITC uses brand ambassadors strategically. While for the Fiama and Vivel ranges it has
Roped in brand ambassadors, for the Superia & Essenza ranges the key TG is the real king.
.
PACKAGING

Since packaging plays a key role in product differentiation, ITC uses it to the hilt. It
has taken foreign experts’ help to make its products stand out from competition.

Essenza Di Wills (super premium product)

Essenza, as the Western name suggests,

targetsthe luxury seeking elite. Segmentation
Parul Institute of Management Vadodara PGDM 2009-11

Also being distributed through ITC hotels

and Wills Lifestyle stores. Group Synergy

Instead of brand extensions, it has sub-brands

like Inizio, Aqua and Mikkle. Brand Extension

No brand ambassadors; the TG do the role as

they are very individualistic and are Brand Ambassadors
super achievers.

Manufactured in France, the packaging

Essenza has an international appeal. Packaging

Gender-neutral, mostly in English, and a bit of

French the language of the super elite. Communication Strategy

Vivel

Clever targeting:Vivel Di Wills forthe upper-

middleclass and Vivel for the popular Segmentation
mid-segment.
Retailed at John Players stores, besides
ITC’s traditional distribution channels. Group Synergy
Vivel & Vivel DiWills— a clever
way to target the ‘Lux’ consumers. Brand Extension

Kareena Kapoor is the brand face

thanks to her popular mass and Brand Ambassador
class appeal.
Vivel Di Wills has more premium
packaging, but Vivel has a different Packaging
Packaging.

Communication in Hindi & English to

Cater to both upper-middle & popular mid- Communication
segment.
Parul Institute of Management Vadodara PGDM 2009-11

Fiama Di Wills

Targeted at the young, urban, aspiration

Women. Its core TG is the upper and mid- Segmentation
segment Urban consumers.

Besides, being retailed at departmental stores,it is

also present at Wills Lifestyle stores, & ITC Group Synergy
hotels.

Mostly in the language of the young urban

Woman professionals English. Its aspiration Communication
In nature.

It has been cleverly leveraged in the shampoos,

shower gels, soap and conditioner Categories. Brand Extension

Sophisticated, young, having arrived & beautiful

Deepika Padukone is used to further the brand Brand Ambassadors
recall.

Premium packaging to compete with the likes Of

Dove. Designed with help from American Packaging
Packaging experts.
Parul Institute of Management Vadodara PGDM 2009-11

Superia

Superia is the mass brand from the ITC stable,

catering to lower income and rural segments like a Segmentation
Lifebuoy does.
Retailed through ITC’s distribution channels
across the hinterlands especially the E Choupal for Group Synergy
rural reach.
Being a mass brand, it caters to segments where
aspirations are low, and communication Communication
family is very close-nit. The brand has a family-
oriented strategy too.
Superia has four soap variants and three
shampoo variants which take on the likes of Brand Extension
Clinic All Clear, Lifebuoy, Breeze, Godrej No1 etc.

No popular brand ambassador; the focus is on the

target audience, which is the low-income families. Brand Ambassador

The only brand which is available in sachets,

Superia has colorful packaging, which is Packaging
Common among mass brands.

Analysis ITC V/S HUL

HUL (Hindustan Unilever Ltd.)

Parul Institute of Management Vadodara PGDM 2009-11

This Company is earlier known as Hindustan Lever Ltd. This is India's largest FMCG
sector company with all type of household products available with it. It has Home &
Personal Care products, and also food and Water Purifier available with it. According to
Brand Equity, HUL has largest no of brands in most trusted brands list.

16 of HUL's brands featured in AC-Nielson Brand Equity list of 100 most trusted brands
in 2008 in an annual survey. For the entire year ending March - 2009 net turnover of
company is Rs. 20'239.33 Crore which is 47.99% higher than 31st December 2007's
Rs. 13675.43 Crore driven mainly by domestic FMCG's with net profit stood at Rs.
2'496.45Crore.

ITC Limited
This Company was earlier known as Imperial Tobacco Company of India Ltd. It is
currently headed by Yogesh Chander Deveshwar. Company mainly operates in the
industry like Tobacco, Foods, Hotels, Stationary and Greeting Cards with the major
products constitutes Cigarettes, packed foods, hotels, and apparels. For the entire year
ending Mar-2009 the turnover of company is at Rs. 15388 Crore which is 10.3% higher
than previous year's Rs. 13947.53 Crore, driven mainly by robust 20% growth in non
cigarette FMCG business with net profit stood at Rs. 3324 Crore.
 
 Analysis of Both Companies
HUL & ITC are major companies in FMCG market in India. When we compare both
companies on the basis of their strategies i.e. Their competitive strategies in the present
market. When we look at the present segment breakup for both of the companies then
we came to know that their different products vary too much in the market.

 Now let us take a comparative analysis of both the companies under some
heads:
Parul Institute of Management Vadodara PGDM 2009-11

Hindustan Unilever (HUL) is the largest pure-play FMCG company in the country and
has one of the widest portfolio of products sold via a strong distribution channel. It owns
and markets some of the most popular brands in the country across various categories,
including soaps, detergents, shampoos, tea and face creams.
ITC is not a pure-play FMCG company, since cigarettes is its primary business. It is
diversifying into non-tobacco. FMCG segments like foods, personal care, paper
products, hotels and agri-business to reduce its exposure to cigarettes.
Performance
After stagnating between 1999 and '04, the company is back on the growth track. In the
past three years, till 2008 HUL's net sales have witnessed a CAGR of 11%, while net
profit has posted a CAGR of 17%.
Despite diversification, ITC's reliance on cigarettes is still huge. The tobacco business
contributes 40% to its revenues, and accounts for over 80% of its profit. This cash-
generating business has enabled it to take ambitious, but expensive bets in new
segments and deliver modest profit growth.
Overall Strategy
HUL always believes in customer friendly products with major emphasis on low cost
overall without compromising on the quality of the product. They are leveraging the
capabilities and scale of the parent company and focusing on the value of execution.
The entire product portfolio is also being tweaked to include premium offerings such as
Pond's Age Miracle and dove shampoo in skin and hair care.
TC is focusing on delivering value at competitive prices. Its tremendous reach through
extensive distribution chain has been a competitive advantage. Additionally, the
company's e-choupal model for direct procurement is well known under which ITC
partners with over 100,000 farmers for spices and wheat procurement and an even
larger number for oilseeds. This kind of rural pedigree is hard to beat.   

Growth Drivers
The Company has been launching new products and brand extensions, with
investments being made towards brand-building and increasing its market share. HUL is
Parul Institute of Management Vadodara PGDM 2009-11

also streamlining its various business operations, in line with the ‘One Unilever'
philosophy adopted by the Unilever group worldwide. Introduction of premium products
and addition of new consumers via market expansion will be HUL's growth drivers.
ITC's backward integration to ensure that its products pass efficiently from the farms to
consumers has helped it to cut down supply and procurement costs. ITC's non-cigarette
FMCG business leverages the large distribution network the company has developed by
selling cigarettes over the years. A rich product mix, along with ramp-up of investments
in its new sectors, will be instrumental in charting ITC's growth path.

Risk for both the companies

HUL
Being an MNC operating in India, HUL is more conservative in its strategies than its
Indian counterparts. Moreover, given increasing competition, it faces the risk of being
overtaken by domestic players in various categories. Prolonged inflation may lead to
margin contraction, in case HUL is not able to pass on this burden to consumers. The
company's large size also poses a problem, since it does not give HUL the agility to
address the competition it faces from national and regional players.
ITC
Increased regulatory clamps on tobacco, along with rising tax burden, pose a business
risk for ITC. So, it has started an ambitious diversification plan, which has its own set of
risks. With its foray into the conventional FMCG space, ITC has entered the high-clutter
branded products market. This will burden its resources in terms of ad spend and
brand-building. Creating brand recall and building market share in new products are
ITC's key challenges. Export ban and rising crop prices pose a threat for its agri-
business, taxing its margins.
Parul Institute of Management Vadodara PGDM 2009-11

Competitive Strategy consists of move of companies in order to attract customers. With

stand competitive pressures and strengthen an organization's market position. The main
objective of Competitive Strategy is to generate a competitive advantage, increase the
loyalty of customers and to beat competitors.

Five main competitive strategies are:

1. Overall low cost leadership strategy
2. Best cost provider's strategy
3. Broad differentiation strategy
4. Focused low cost strategy
5. Focused differentiation strategy
Parul Institute of Management Vadodara PGDM 2009-11

Sales Report of ITC personal care product v/s HUL in Bhopal city

In the Bhopal city HUL is the market leader. Population of Bhopal city is 17 lakh and
Bhopal market is vast HUL in the Bhopal market last 100 years and ITC launch his
personal care product in February, 2008. HUL have a huge market in the Bhopal HUL
capture the market but ITC start breaking the market ITC enter in the Bhopal city with 2
popular and 1 premium brands(Fiama Di Wills, Vivel, Vivel Di Wills, Superia) soaps and
shampoos of all brands in different SKU’s.

In the duration of my project I am analyzing the sale ITC’s soaps and shampoos in
Bhopal city with HUL’s those brands which are competing our products

Shampoos

Fiama Di Wills with Dove and Sunsilk

Vivel with Clinic All Clear

Superia with Clinic plus

Soaps

Fiama Di Wills with Dove

Vivel with Lux

Vivel Di Wills with Lux international

Superia with Breeze

Shampoos ITC V/S HUL in Bhopal city in May 2010

Parul Institute of Management Vadodara PGDM 2009-11

Name Ltrs Name Ltrs

Fiama Di Wills 236 Dove 805
Vivel 246 Sunsilk 605
Superia 1736 Clinic All Clear 705
Clinic plus 68167

Sales of shampoos in liters

80000
70000
60000
50000
40000
30000
20000
10000
0

FDW
VIVEL
SUPERIA
CLINIC +
CLINIC ALL CLEAR
SUNSILK
DOVE

Soaps ITC V/S HUL in Bhopal city May 2010

Parul Institute of Management Vadodara PGDM 2009-11

Name Kg Name Kg
Fiama Di Wills 88 Dove 1512
Vivel Di Wills 182 Lux international 1918
Vivel 4582 Lux 12,000
Superia 15282 Breeze 32,400

soaps sale May 2010

Fiama Di Wills Vivel Di Wills Vivel

Superia Dove Lux international
Lux Breeze
88 182 4582

15282
32400

1512
1918
12000

Soap sale May 2010

30000
20000
10000
0
l al
ills ills ve er
ia ve
on Lu
x
ee
ze
i W i W Vi p Do ti r
aD D Su na B
m iv el ter
Fia V x in
Lu

Finding
Parul Institute of Management Vadodara PGDM 2009-11

In the duration of my project I am daily visited market with sales man indentifying the
schemes of HUL and ITC. ITC give fewer schemes to retailer but they are day by day
increase sale of ITC.

ITC is work in the market with the qualitative style. In the Bhopal city ITC have 2800 out
lets in these outlets are cover by the Sales man According to his beat. ITC have
comparatively HUL less demand but promotional activities of ITC Above the land and
below the land day by day aware to customer about ITC’s personal care product.

ITC have not any schemes like HUL (Vijeta, Super Value Soap, Smart Scheme, Beat
the heat). ITC should have not provided this type of scheme which is help to increase
the sale. Only consumer schemes are not enough.

HUL also give seasonal Schemes to retailers. HUL make scheme broachers for whole
sellers and retailers and provide him. HUL organize “Vijeta Meet” at the end year and
give prizes to winner and provide certificate for their achievement.

HUL also give the certification to the shop keeper “Excellent” Award on the bases of
sale performance.

Suggestion
I want suggest few scheme to the ITC for Modern trade, for wholesaler, for the retailer.
This can be helpful to increasing the sale of ITC.

For modern trade scheme is “ITC ZONE”.

Why this scheme?

In the market most of the customers are not aware about to ITC’s& ITC’s entire
personal care product and visibility problem and also customer aware about the
consumer scheme.

“ITC ZONE” scheme all MT’s are included under the scheme select a visible place in
the shop and put all ITC’s personal care product and give the shop keeper to quarterly
sale target and give him to incentives or prizes or cash prize.

For wholesaler scheme is “Rocket Singh”

Why this scheme?

Wholesalers are totally interested in the margin or full demanded products in market
right now ITC’s personal care products are in the growth stage if we are give margins to
sale quantity then sale will be increases by wholesaler.

For the retailer scheme is “ITC’S PARTNERS”

Parul Institute of Management Vadodara PGDM 2009-11

Why this scheme?

ITC’s personal care products are in good quality but the ITC’s personal care product
need a push by the soap keeper.

“ITC’S PARTNERS” in this we give certificate of excellence to the shopkeeper with

margin. This scheme is based on also quantitative sale.

Or

we are give the membership of the winner in ITC Well Come Group this will be more
interesting for the our customers.

In duration of project what I have learn, what I want to suggest ITC personal care
products business I have suggested in future ITC Can be major Player in the Indian
market.
Parul Institute of Management Vadodara PGDM 2009-11

Conclusion

From this 60 days experience in Sales & marketing, I got a good exposure about what
really the sales & marketing life is about. It’s waking along with targets and mind
stresses every morning. The person who can manage these target and stress are
shining in those fields.

I personally think that marketing is not everyone’s cup of tea but if one set his target
high and continuously strive towards that, nothing is impossible. The only thing required
in our field is the right attitude or a positive attitude towards attaining One’s goal.
By going 60 days in to Field I came to know various things about the FMCG and
personal care product business, distributor, wholesaler, retailer, supply, stock shortage
how a sales man contribute in the profit of company.

All the distributors are help to increase the sale of company and I realize in the training
why relation oriented people are success full.

All the employees are also happy from our company because company is providing lots
of facilities to the employees. The other thing is that we reached to the customer
expectation in regarding to the product quality, price, and time linens of the order, so the
customers of company are going to Increase, the marketing and distribution people
have good relation with customer.

In the FMCG personal care product businesses have very tuff competition more than
100 companies are deal in personal care product.
ITC have followed the leader strategy in personal care business within 3 years ITC have
increase the sale and products day by day in all segment (popular and premium).
In my 60 days training I have realize in future ITC can be major players in personal care
business.

ITC face very tuff competition in personal care business because its competitor are in
market last 80 years but growing graph of ITC personal care business will make leader
to ITC in personal care product business.

Bibliography
Parul Institute of Management Vadodara PGDM 2009-11

Marketing management – Philip kotler

www.itcportal.com
www.hul.com
www.economicstime.com
www.timesofinndia.com
www.google.com
www.wikipedia.com

References
Parul Institute of Management Vadodara PGDM 2009-11

Ankur Shukla
Area Executive ITC ltd.
Bhopal

Mr. Shahid Asghar

(Territory sales officer HUL)
Parul Institute of Management Vadodara PGDM 2009-11