savlon summer project summary

“A PROJECT REPORT ON IDENTIFYING AND ANALYZING

THE FACTORS INFLUENCING RETAIL CHEMIST OUTLET FOR SAVLON HAND WASH”

N.R. Institute of Business Management (NRIBM-PDGM) Batch 2016-18

Under the guidance of 

Prof. Nishtha Asrani

Submitted by:  Aziz Tuta Tuta P-1656

Flow of Presentation •

Introduction of industry

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Introduction of company

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Introduction of topic

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Literature review

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Research methodology

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Data analysis and interpretation

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Key findings

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Recommendations and suggestions

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Conclusion

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Bibliography

Introduction of industry •

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Fast Moving Consumer Goods are inexpensive products that require little shopping efforts. These are non-durable products which are sold in packaged forms. These products are purchased by the end-consumer in small quantities and frequently. Market Segments: o

Personal care

o

Household care

o

Branded and packaged food and beverages

Introduction of industry (Cont.) PEST Analysis Political: oInfrastructure issues oRegulatory constraints oPolicy framework

Economical: oGDP growth oInflation oConsumer Income oPrivate consumption

Social oChange in consumer profile oChange in lifestyle oRural focus

Technological Effective use of of technolog technology y o Effective seen in only leading companies o E-commerce will boost FMCG sales

Introduction of company Founded

24 August 1910 (as Imperial Tobacco Company of India)

Headquarters

Kolkata, We West Bengal, India

Key people

Sanjeev Puri, (Chairman), Saurabh Mishra, (Chief Executive Officer)

Products

Consumer goods, Tobacco, Hotels, Agribusiness, Paperboards & specialty papers, Packaging, Information technology

Introduction of Company (Cont.) SWOT Analysis Strengths ITC has a strong and experienced management Strong brand presence, excellent products advertising Diversified product and services portfolio. Over 6500 E-Choupal CSR activities and sustainability initiatives

Weakness Dependency Depend ency on tobacco tobacco revenue. revenue. Hotel industry has not been able to create a huge market share

Opportunities Tap rural markets and increase. Mergers and acquisitions to strengthen the brand Increasing purchasing power of people More publicity of hotel chains

Threats Govt. regulations Intense and increasing competition in FMCG

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Literature Review Cosmetics concept

In European legislation, a cosmetic product4 is any substance or preparation intended to be placed in contact with the various external part s of the human body (epidermis, hair system, nails, lips and external genital organs) or with the teeth and the mucous membranes of the oral cavity with a view exclusively or mainly to cleaning them, perfuming them, changing their appearance and/or correcting body odors and/or protecting them or keeping them in good condition.

Impact of promotions

Vecchio, Del, Devon et.al. (2006) 5 report the results of the study, which examined the effect of sales promotion on brand preference through Meta analysis. Results of 51 studies had been integrated. As per the study sales promotions do not affect post promotion brand preferences in general. But depending upon characteristics of sales promotion and the promoted product, promotion can either increase or decrease preference for a brand.

Literature Review (Cont.) Consumer perception

Vyas, H. Preeta (2005)30 attempted to study consumer preferences with respect to sales promotion in FMCG category. category. It was found that sales promotion offers which is unique, which offers immediate incentive preferably of price-cut nature is likely to appeal to all consumer segments.

Sales pe p eople promotion

William, H. Murphy and Ravipreet, S. Sohi (1995)98 examined the factors which are associated with salespeople's feelings towards a sales contest. They collected data through verbal protocols and surveys from salespeople belonging to a division of a Fortune 100 firm. Results indicate that salespeople's self-esteem, commitment level, and career stage play a role in influencing feelings towards the sales contest.

Research Methodology •

Objectives •

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Studying the current market scenario and identifying better ways to increase the market share of Savlon hand wash. Identifying the reasons for outlets not keeping Savlon hand wash. wash . To know about the preference of Savlon hand wash in comparison with other competitive brands. Factors influencing retailer buying behaviour.

Research Methodology (Cont.) •

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Research type: Descriptive research Data collection sources •

Primary: Questionnaire

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Secondary: Articles, journals, internet

Sampling Plan •

Sample size: 279 respondents

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Sampling method: Convenience sampling

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Geographical Scope: The area selected for framing the sample is  Ahmedabad city. city.

Scope of study: During the research, data was collected from 279 outlets. The data was collected through structured questionnaire. The data was collected from different areas of Ahmedabad city. city.

Data Analysis and Interpretation Interpretation

Hand Wash Handler  Hand Wash Handler  Ye s

No

12%

88%

Savlon HW availability in only Hand wash handling outlets Savlon Hand Wash Available

No 28%

Yes 72%

 Av  A vailability SKU wise  Availability SKU wise 250

200

150  Availability SKU wise Yes  Availability SKU wise No 100

50

0 10ml Sachet

185ml Pouch

220ml Pump

500ml Pouch

800ml Pouch

Unavailability Reasons Unavailability Reason 100 90 80 Unavailability Reason Problem with servicing

70

Unavailability Reason No knowledge of SKU

60

Unavailability Reason No Demand 50 Unavailability Reason Already ordered 40 Unavailability Reason NCH 30

Unavailability Reason Not satisfied with schemes

20 10 0 10ml Sachet

185ml Pouch

220ml Pump

500ml Pouch

800ml Pouch

Competitors Availability Competitors Availability 300

250

245

193

200

150

100

52 50 25

0 Dettol

Lifebuoy

Santoor

Patanjali

Rate Competition Rate Competition 100 90 80 70 60 50

Rate Competition

40 30 20 10 0 Highly Competitive

Competitive

Avg Competition

Low Competition

No competition

Impact of Competition on Sales Impact of Competition on Sales Ye s

No

May be

2% 17%

81%

Brand Image Brand Image 90

80

70

60

50 Brand Image 40

30

20

10

0 Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Rate Prices Rate Prices 140

120

100

80 Rate Prices 60

40

20

0 Excellent

Good

Avg

Poor

Very Poor

 

 Aw  A wareness Promotion Awareness Promotion Yes

No

20%

80%

Rate Promotions Rate Promotions 100 90 80 70 60 50

Rate Promotions

40 30 20 10 0 Excellent

Good

Avg

Poor

Very Poor

 

Preferred Medium of Promotion Preferred Medium of Promotion 300

250

200

150

Preferred Medium of Promotion

100

50

0 Visual

Audio

Print

Special Campaign

 Aw  A wareness Schemes Awareness Scheme Yes

No

25%

75%

Rate Schemes Rate Schemes 140

120

100

80 Rate Schemes 60

40

20

0 Excellent

Good

Avg

Poor

Very Poor

 

Hypotheses

Promotional awareness & availability Hypothesis:

H0: There is no significant association between Promotional awareness and availability of Savlon Hand Wash H1: There is significant association association between Promotional awareness awareness and availability of Savlon Hand Wash Chi-Square Tests Value

df

Asymp. Sig. (2-

Exact Sig. (2-

Exact Sig. (1-

sided)

sided)

sided)

91.621a

1

.000

Continuity Correction b

88.661

1

.000

Likelihood Ratio

96.032

1

.000

Pearson Chi-Square

Fisher's Exact Test Linear-by-Linear  Association N of Valid Cases

.000 91.293

1

.000

279

a. 0 cells (0.0%) have expected count less than 5. The minimum expected count is 20.30. b. Computed only for a 2x2 table

.000

Interpretation:  As the significance level in chi-square test is less than 0.05, therefore we will reject the null hypothesis and accept the alternative hypothesis which says that there is significant relationship between awareness of promotional activities and availability. availability.

Scheme awareness and availability Hypothesis:

H0: There is no significant relationship between scheme awareness and availability of Savlon Hand Wash H1: There is significant relationship between scheme awareness and availability of Savlon Hand Wash

Chi-Square Tests Value

df

Asymp. Sig. (2-

Exact Sig. (2-

Exact Sig. (1-

sided)

sided)

sided)

122.722a

1

.000

Continuity Continuity Correction Correctionb

119.557

1

.000

Likelihood Ratio

129.998

1

.000

Pearson Ch Chi-Square

Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

.000 122.282

1

.000

279

a. 0 cells cells (0.0%) (0.0%) have have expec expecte ted d count count less less than than 5. The The mini minimum mum expec expected ted count count is 25.47. 25.47. b. Comp Comput uted ed only only for for a 2x2 2x2 tabl table e

.000

Interpretation:  As the significance level in chi-square test is less than 0.05, therefore we will reject the null hypothesis and accept the alternative hypothesis which says that there is significant relationship between awareness of schemes and availability.

Owner suggesting visual advertisement and availability. Hypothesis:

H0: There is no significant relationship between owner suggesting visual advertisement and availability. H1: There is significant relationship between owner suggesting visual advertisement and availability. Chi-Square Tests Value

df

Asymp. Sig. (2-

Exact Sig. (2-

Exact Sig. (1-

sided)

sided)

sided)

66.160a

1

.000

Continuity Continuity Correction Correctionb

63.111

1

.000

Likelihood Ratio

76.152

1

.000

Pearson Ch Chi-Square

Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

.000 65.922

1

.000

279

a. 0 cells cells (0.0%) (0.0%) have have expec expecte ted d count count less less than than 5. The The mini minimum mum expec expected ted count count is 12.55. 12.55. b. Comp Comput uted ed only only for for a 2x2 2x2 tabl table e

.000

Interpretation:  As the significance level is below 0.05, therefore we will reject the null hypothesis and accept the alternate hypothesis. Therefore there is significant relationship between owner suggesting visual medium of advertisement and availability.

Owner selecting audio medium of advertisement and availability. •

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Hypothesis:

Ho: There is no significant relationship between owner selecting Audio medium of advertisement and availability. H1: There is significant relationship between owner selecting Audio medium of advertisement and availability. Chi-Square Tests Value

df

Asymp. Sig. (2-

Exact Sig. (2-

Exact Sig. (1-

sided)

sided)

sided)

20.392a

1

.000

Continuity Continuity Correction Correctionb

19.260

1

.000

Likelihood Ratio

20.302

1

.000

Pearson Ch Chi-Square

Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

.000 20.319

1

.000

279

a. 0 cells cells (0.0%) (0.0%) have have expec expecte ted d count count less less than than 5. The The mini minimum mum expec expected ted count count is 40.24. 40.24. b. Comp Comput uted ed only only for for a 2x2 2x2 tabl table e

.000

Interpretation:  As the significance level level is below 0.05, therefore we will reject the null hypothesis and accept the alternate hypothesis. Therefore there is significant relationship between owner suggesting audio medium of advertisement and availability.

Owner selecting print medium of advertisement and availability. •

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Hypothesis:

Ho: There is no significant relationship between owner selecting print medium of advertisement and availability. H1: There is significant relationship between owner selecting print medium of advertisement and availability. Chi-Square Tests Value

df

Asymp. Sig. (2-

Exact Sig. (2-

Exact Sig. (1-

sided)

sided)

sided)

17.726a

1

.000

Continuity Continuity Correction Correctionb

16.609

1

.000

Likelihood Ratio

17.404

1

.000

Pearson Ch Chi-Square

Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

.000 17.662

1

.000

279

a. 0 cells cells (0.0% (0.0%)) have have expec expecte ted d count count less less than than 5. The The mini minimum mum expec expecte ted d count count is 31.38. 31.38. b. Comp Comput uted ed only only for for a 2x2 2x2 tabl table e

.000

Interpretation:  As the significance level level is below 0.05, therefore we will reject the null hypothesis and accept the alternate hypothesis. Therefore there is significant relationship between owner suggesting print medium of advertisement and availability.

Owner selecting special campaigns medium of of advertisement and availability availability.. •

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Hypothesis:

Ho: There is no significant relationship between owner selecting special campaigns medium of advertisement and availability. availability. H1: There is significant relationship between owner selecting special campaigns medium of advertisement and availability. availability. Chi-Square Tests V a lu e

df

Asymp. Sig. (2-

Exact Sig. (2-

Exact Sig. (1-

sided)

sided)

sided)

5.179a

1

.023

Continuity Continuity Correction Correctionb

4.618

1

.032

Likelihood Ratio

5.258

1

.022

Pearson Ch Chi-Square

Fisher's Exact Test Linear-by-Linear Association N of Valid Cases

.031 5.160

1

.023

279

a. 0 cells cells (0.0% (0.0%)) have have expec expecte ted d count count less less than than 5. The The mini minimum mum expec expecte ted d count count is 40.98. 40.98. b. Comp Comput uted ed only only for for a 2x2 2x2 tabl table e

.015

Interpretation:  As the significance level is below 0.05, therefore we will reject the null hypothesis and accept the alternate hypothesis. Therefore there is significant relationship between owner suggesting special campaigns medium of advertisement and availability.

Key Findings •

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The most available SKU in Savlon Hand Wash is 10 ml Sachet.  According to the study, study, 166 outlets out of 246 outlets outlets are keeping the 10 ml sachet in their outlet, which is 67% approx. The most general reason for unavailability of Savlon Hand Wash is lack of demand from the consumer end.  According to the study, study, the market leader in Hand Wash Wash segment is Dettol with 48% availability, followed by Lifebuoy with 37% availability. The competition between the brands in Hand Wash segment is high.  According to the study, study, there is a significant relationship between the awareness of promotion and availability, availability, which means that the retailers keep Hand Wash on the basis of their knowledge about the promotional activities.  According to the study, study, there is a significant relationship between awareness of schemes provided to the chemist retailer and the availability of the Hand Wash, which means that the retailers keep the Hand Wash after knowing the schemes.

Key Findings (Cont.) •

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Most of the retailers think that the best way of advisement is visual advertisement. Not all the chemist outlets are aware about the schemes provided by the company which leads to the unavailability. unavailability. The retailers think that the schemes provided by the company is average in comparison of other competitive brands. brands. The perception of the retailers about the prices of Savlon hand Wash is positive. Some of the retailers purchase the product from modern trade when heavy discounts are being offered by modern trade. The perception of the retailers about the promotional activities is negative.

Recommendations •

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The Hand Wash can be placed at the outlets, taking forward the brand name of Savlon Antiseptic Antiseptic liquid. Company can start providing SMS alert to the retailers to provide the information regarding the new schemes.  Attractive displays displays of Hand Hand Wash Wash should should be provided to the outlets in order to increase the consumer awareness about the Savlon Hand Wash. Company should focus on the special campaigns in different areas in order to promote the product.

Conclusion •

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In the present competitive world the success of the company depends on satisfying the customers as well as retailers. The retailers play a prominent role in increasing the sales of the FMCG products. For continuous growth the company has to pay more attention on billing process, promotion and availability of brand through constant service and good margins.

Bibliography •

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Vecchio, D. D. (2006). The Effect of Sales Promotion on PostPost Promotion Brand Preference: A Meta Analysis. Analysis. Journal of Retailing , 203-213. Vyas, Vyas, H. Preeta (2005), "Measuring Consumer Preference for Sales Promotion Schemes Through Conjoint Design in FMCG Sector", Working Paper, NO. 2005-09-08, IIM, Ahmedabad. Ahmedabad. Williarn, H. Murphy and Ravipreet, S. Sohi (1995), "Salespersons' Perceptions About Sales Contests: Towards Towards a Greater Understanding", European Journal of Marketing, Volume: olume: 29, Number: Number: 13, 13, pp. 42 - 66. Wikipedia. (2017). Retrieved from https://en.wikipedia.org/. ITC Limited . (n.d.). Retrieved from ITC Portal: http://www.itcportal.com/about-itc/profile/history-andhttp://www.itc portal.com/about-itc/profile/history-andevolution.aspx IBEF India Brand Foundation . (2017). Retrieved from https://www.ibef.org/: https://www.ibef.org/: https://www.ibef.org/ https://www.ibef.org/

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