study of distribution channels of kara

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a descriptive study of alternative channels to promote kara wet wipes. it's summer training project for year 2011.

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Study of Alternate Channels to Promote Kara Wipes in Lucknow Market

Summer Training Project Report submitted in partial fulfillment of the requirements for the

Diploma of

Post Graduate Diploma in Management AtJaipuria Institute of Management, Lucknow

ByFeroz AhmadEnroll No. : JIML-11-057Batch: 2011-13

Project Mentor: Prof. Hyma ApparajuAbstract

The purpose of my study was to find out different channels that can be used in promoting and maximizing the sales of Kara in major markets of Lucknow. As any study is incomplete without the interaction with its main stakeholders, I also interacted with many commuters of different cosmetics, general stores and medical stores covering various major markets of Lucknow such as Aminabad, Hazratganj, Charbagh, Patrakarpuram, Bhoothnath, Hussainganj etc.Further interaction was with the second most important stakeholder who plays a significant role in sale of a product i.e. retailer. It helped in gauging the expectations of retailers as well as the expectations of customers through retailers to reduce the gap between expectations and realistic presence of the product. I sampled Kara in major markets of Lucknow to increase the awareness of Kara because the concepts of using wet facial wipes is very new in India unlike other western countries where people spend their major portion salary in disposable products.

Executive Summary

In last few years, the growth and development story of India has seen different stages. From the time of independence to 1991, the time of liberalization in India and then to the twenty first century, the markets have shown tremendous changes. Today consumers have got the power and the income to spend on products. Different firms entered in the market and lost but many succeeded and make their mark. All the markets starts with nascent stage and later grow to its maturity, same with the wipes market which is in its nascent stage in India now but the potential is high if explored.Kara is a brand name of Wet wipes from the house of Grasim Industries, Aditya Birla Group. Among its different variants, Refreshing facial wipes are the most selling wipes in the consumer market.My project title was study of alternate channels to promote Kara in Luknow market in Grasim Industries, Aditya Birla Group. Objective of the project was to find out the ways to promote Kara and create new potential areas for the product. It also involves the work to find out the measures to keep the product ahead of its competitors such Johnson & Johnson, Bilt, Good Look, Freshia, Mistique and last but the least the Chinese wipes products.For brand promotion and widening the horizon for the new products launched by the company I sampled Kara in almost all major markets and malls of Lucknow such as Aminabad, Hazratganj, Hussainganj, Bhootnath, Patrakarpuram, Thakurganj, Saharaganj mall, Spencer, Shalimar mall etc. which also resulted into generating the awareness of the brand and it provided a chance to the people to use Kara at free of cost first time. Once they are fond of the product, they will voluntarily buy the product and will become its regular user. In my later stage of training, I was assigned to understand the operations of the company by visiting almost all markets in Lucknow. For the purpose, I visited more than 140 shops and took orders from retailers of the company and was also responsible in placing the product onto new stores by convincing the retailers to keep the product. Without collection of statistical data and its analysis any project is incomplete, thus, I surveyed 156 people by way of questionnaire and collected some secondary data from internet to understand and analyze the exact situation of the market. Analysis part has been done through interviews and surveys with the people visiting the retail stores in different major markets and malls of Lucknow. Result showed that the concept of using wet facial wipe is not as new as it was a couple of years ago in the Indian market and now people are partially aware of it. Middle class people can be targeted and educated about this new concept through extensive promotional activities. One of the finding was that people consider wet wipes as an extravagant article rather than essential product which is positioned by the company and do not want to spend a lot on such a product.

Acknowledgement

The training program was designed in such a way that it provided a full learning opportunity throughout the training program. I would like to express my gratitude towards all the people who guided me throughout the program and their direct or indirect help was priceless for me, without their guidance and support this project would not have been completed successfully. I express my sincere gratitude to Mr. Divyankar Goel, Regional Sales Manager, North Division, Grasim Industries & Birla Cellulose, for his belief in me and giving a chance to do market research for the company. It has been an honor to do my summer training under Mr. Surya Prakash Singh, Area Sales Manager, North Division, Grasim Industries & Birla Cellulose, a composed and talented person who not only guided but also supported and rectified me where I was going wrong. Therefore, I would specially thank Mr. Surya Prakash Singh for his continuous guidance and assistance throughout the training. There was a great learning from my team at Grasim Industries, who not only behave in a co-operative manner but also provide constant help in the completion of the project, thus, I thank to my each team member in the training program. Last but surely not the least, I am very much thankful to my faculty guide, Prof. Hyma Apparaju, core faculty at Jaipuria Institute of Management Lucknow, for her continuous guidance and support from the proceeding of the project to its completion. I can not think of the accomplishment of the project without her assistance and guidance.

TABLE OF CONTENTSPage No.CHAPTER - 1 1INTRODUCTION 2SCOPE OF THE STUDY ..3OBJECTIVE OF THE STUDY 3RELEVANCE OF THE STUDE.4TEAM CONSTITUTION ..4 ACHIEVEMENT AND RECOGNITION ..5CHAPTER - 2 ...6 SUMMER INTERNSHIP PROFILE ........7 STUDY OF ALTERNATE CHANNELS TO PROMOTE KARA WIPES7 USE OF SOCIAL MEDIA TO PROMOTE KARA WIPES........9 INDTRODUCTION ABOUT ADITYA BIRLA GROUP...11HINDALCO INDUSTRIES...22 IDEA CELLULAR 25 ULTRATECH .....27 GRASIM INDUSTRIES ..31 BIRLA CELLULOSE....37 ANALYSIS OF INDIAN WIPES MARKET......60 COMPETITION ANALYSIS OF KARA WIPES ........65 MICHAEL PORTERS FIVE FORCES MODEL .......67 SWOT ANALYSIS .69CHAPTER 3 .72RESEARCH METHODOLOGY ...73CHAPTER 4 .79DATA ANALYSIS .80CHAPTER 5 .99RECOMMENDATIONS AND SUGGESTIONS .100CHAPTER 6 ...104CONCLUSION ..105CHAPTER 7 ....106ANNEXURE ...107BIBLIOGRAPHY ..109MY LEARNING FROM SUMMER INTERNSHIP ....110

LIST OF FIGURESPage No.FIG 1: USE OF WET WIPES 80FIG 2: MARKET SHARE OF WET FACIAL WIPES .....81FIG 3: FREQUENCY OF USE OF WET WIPES ..82FIG 4: PREFERRED PLACE TO BUY SKIN CARE PRODUCTS.83FIG 5: RESPONSE ABOUT IDEAL PACK. ...84FIG 6: RESPONSE ABOUT IDEAL PRICE FOR A MEDIUM SIZE PACK. ...85FIG 7: PURPOSE OF USE OF WIPES... ....86FIG 8: PERCEPTION OF CUSTOMER TOWARDS THE CONCEPT OF WIPES.............87FIG 9: AWARENESS OF KARA WIPES ..88FIG 10: MEDIUM MADE AWARE ABOUT KARA WIPES.89FIG 11: SATISFACTION LEVEL TOWARDS KARA WIPES....90FIG 12: INFLUENCIAL ATTRIBUTES OF KARA WIPES .91FIG 13: ATTRIBUTES LEAD TO DISLIKE KARA WIPES ...92FIG 14: ATTRIBUTES THAT DIFFERENTIATE KARA FROM OTHER BRANDS .93FIG 15: WOULD KARA BE RECOMMENDED BY CUSTOMERS ....94FIG 16: GENDER DISTRIBUTION OF CUSTOMERS.. .95FIG 17: AGE DISTRIBUTION ...96FIG 18: SHARE OF INCOME CLASS. ...97FIG 19: PROFESSION DISTRIBUTION.. ...98

CHAPTER-1INTRODUCTION

Aditya Birla Group is India's first truly multinational corporation. Global in vision, rooted in values, the Group is driven by a performance ethic pegged on value creation for its multiple stakeholders. The group has an annual turnover of US$ 24 billion, market capitalization of US$ 23 billion, and has over 100,000 employees belonging to over 25 different nationalities on its rolls. The group has diversified business interests and is dominant player in all the sectors in which it operates such as viscose staple fibre, metals, cement, viscose filament yarn, branded apparel, carbon black, chemicals, fertilizers, insulators, financial, service, telecom, BPO and IT services.Its subsidiary company Grasim is the largest exporter of Viscose Rayon Fiber in the country, with exports to over 50 countries.

Grasim Industries is mainly focusing on increasing more awareness about its newly launched Kara wet wipes. Being a new concept in India, it is very difficult for the company to divert Indian customers to substitute traditional handkerchief by Kara wet wipes. They are position the same through their continuous and effective marketing communication. They have an edge over their competitors because of its backward integration and the raw material for Kara wet wipes is being provided from Birla cellulose division.I sampled in different markets of Lucknow to create awareness about the product and give the commuters opportunity to use Kara wet wipes free of cost for the first time approach. A field work has also been done to know the response of the customers towards the brand of company, brand of the competitors, their perception about using wet wipes etc. through a formal questionnaire.I was fortunate enough to get this opportunity to work with such a multinational incorporation. As the group quotes its tageline, Taking India to the world, it provided a lot of learning experiences those will surely help in long run in my transformation towards corporate world.Scope of the studyThe data collected gives the clear picture of the product in the market