ASUMMER INTERNSHIP

REPORT

“STRENGTHENING DISTRIBUTION CHANNEL AND BRANDING OF KARA WIPES IN LUDHIANA”

Submitted by

Shubham RajputA0102214222

MBA Class of 2016

Under the Supervision of

Dr. Chandranshu SinhaAssociate Professor- Human resource

Amity Business SchoolAmity University, Noida

In Partial Fulfilment of the Requirements for the Degree of Master of Business Administration (M&S)

AMITY BUSINESS SCHOOLAMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

Chapter-1

Introduction

1.1 Purpose of study

The title of the project is “Strengthening the distribution channel and branding of Kara wipes in

Ludhiana”. Purpose for conducting this study is to find the bottlenecks in the market and

distribution system, work for strengthening distribution channel and create awareness and

promotion of Kara wipes in Ludhiana. For which I worked in General trading, Modern trading

and institutional trading to find out the bottlenecks which exists in the markets and the

opportunities which company can utilize to increase the market share and sales of Kara wipes in

Ludhiana.

1.2 Significance of study

This research gives us the idea about the difficulties that Kara wipes are facing in the market in

spite being a premium and quality product in this segment. It helps us to know about the

deficiency of the distribution channel of Kara wipes and also about the present scenario and

market share of this product. It gives a scope of rethink on some of the marketing strategy such

as discount slabs to retailers, target customers and way of promotions.

1.3 Objectives

Creating demand of Kara wipes in different markets.

Overall market development of Kara wipes

To know the consumer buying behavior about Kara wipes

To find the bottlenecks in distribution channel and market of Kara Wipes.

To study how to increase the brand value of Kara wipes.

To understand retailers satisfaction and problems in distribution of Kara wipes

1.4 Introduction to topic

Kara wipes a brand owned by Birla cellulose an umbrella branch of Aditya Birla group. Through

this brand Aditya Birla entered into a new category of fmcg segment. Change in trend in the

wipes market has also been driven by new product development and the positive reception of

new product applications by the consumer.

Personal wipes grew by 20% in current value term in 2014, primarily due to a very low sales

base the customer base increased as wipes gained visibility in modern retail formats, such as

hypermarkets and supermarkets, but remained small compared with that for retail tissue product.

In 2009-10 Kara was the leading brand in the market with 56% of share but in spite of growth of

20% in personal wipes the sales of Kara wipes is decreasing and company data shows that sales

is decreased by nearly 25%. Which also adversely affect the market share of Kara wipes in this

segment.

Increasing the market share and sales is becoming the emerging issue in the company and

company is making the effort to improve their projection technique, market strategy and

improving their distributional channel to become the market leader in personal wipes segment. In

this study we focus on collecting and analyzing the data which could give the information about

the bottlenecks which exists in the markets as well as in distribution channel so that these

problems can be resolved for the future development. This study examine the reason behind the

downfall in the sales and market share of Kara wipes and help the organization to improve the

projection technique and market strategy for enhancing the sales and market share.

For the purpose of this study data was collected from the different markets from different

marketing trades which are as follows:-

I. General trade in which demand was generated for the product by visiting the outlets in

the markets and data was collect through non-directive interviews from the retailers in

which open ended question were asked from the retailers.

II. Modern trading in which data was collected by non participant observation in different

modern markets such as reliance mart and more stores which gives the information about

the buying behavior of consumers.

III. Institutional trading in which work was done to increase corporate connect which would

help to increase the sales and information was gathered regarding the importance of

institutional trading of Kara wipes.

Besides this research, data was also collected to get the information about what is consumer

perception about Kara as a brand which helps the company to make the appropriate strategy for

branding of Kara wipes in the markets. In the period of six week work was done to strengthen

the distribution channel of Kara wipes in Ludhiana market by getting aware about the drawbacks

in the present distribution channel and working upon to improve the channel functioning

Chapter -2

Literature Review

2.1 History

Disposable wipes came into the existence in nineties and has evolved into the global business

concept generating a good amount of sales. Because of strong growth year after year in sales and

popularity, the category is now assumes a major role in the personal care market. Replacing to

makeup removal and deodorant wipes in personal care and furniture cleaning product in

household care, disposable wipes have gradually expanded to offer a wide range of products,

replacing the range of traditional combination of cloth, cotton, and cleaning solution.

The concept of the wet wipes is growing in the global market at a good pace, although it is

important to know the challenges which may arise in the long run and will present great

difficulties to the companies. Those companies which are capable to combine cutting edge

technology with the new innovative ideas which can give them a competitive advantage from the

revelries companies can survive in long run.

In India most of the wipes are made of viscose and spun laces and Birla cellulose a branch of

Adyta Birla Group is a major manufacturer of viscose Staple fiber in India. Viscose staple fiber

is 100% natural fiber, alcohol free and biodegradable which is very good for skin and also easily

degradable. For Birla cellulose it is easy to do well against the other local player as they need to

purchase VSF from it.

From last few years there has been a explosion in the number of wipes available to the consumer.

And in present scenario the perception of using the baby wipes as a facial wipes is changing and

due to this the growth of facial wipes is picking the pace in the markets. These wipe posing as

much better substitute than traditional cloth and liquid.

In comparison with U.S and Europe countries which spend nearly 6-10% of their income on

disposable product. In India It is only 0.0001%. In India these products are considered as life

style product not the necessary one but as the lifestyle of the Indian consumer is changing and

they believe in high standard of living. So, there facial wipes are having a great potential to grow

in the Indian markets. Consumer awareness about hygiene products increased as a result of

advertising price reduction and launch of cheaper product like so-soft, in touch, Himalayas, orisis

etc by the manufacturers over the last few years.

Skin care wipes are growing in the markets and some of the reasons are. Faster pace of life in

cities, increased in nuclear family and working women and also because of higher standard of

living by peoples in metro and big cites. The disposable facial wipes are facing competition in

India as many of the manufactures are launching their cheaper products which contain alcohol

and are made up of polyester but in comparison with quality product they are very less in price.

The leading market research agency KSA TECHNOPAK conducted a market survey some year

back and discovered that there is a huge potential for wipes in India. According to the survey

after Delhi ncr Chandigarh is the biggest market for cosmetics in north India. Some of the

Chinese products are also entered in Indian market like orisis which are not of good quality and

can affect the skin badly but these products are capturing the attention of the people who are

price sensitive. But increasing attention on the quality and brand of the product will definitely

help to the products which are good in quality like Kara.

2. 2Aditya Birla group

The Aditya Birla Group is a multinational conglomerate named after Aditya Vikram Birla,

headquartered in the Aditya Birla Centre in worli, Mumbai, India. It operates in 40 countries

with more than 120,000 employees worldwide. The group was founded by Seth Shiv Narayan

Birla in 1857.

The Group consists of four main companies, which operate in various industry sectors through

subsidiaries, joint ventures, etc. These are Hindalco, Grasim, Idea cellular and Ultra Tech

Cement. The Group has diversified business interests and dominant player in all the sectors in

which it operates such as Viscose staple fiber, Metals, Cement, Viscose filament yarn, Branded

apparel, carbon black, chemicals , fertilizers, insulators, financial services, telecom, BPO and IT

services.

The origin of Aditya Birla Group can be traced back to the 19th century when Seth Shiv Narayan

Birla started trading in cotton in the town of Pilani in Rajasthan. In the early part of 20th century,

Group’s founding father, Ghanshyam das Birla, expanded the group and set up industries in

critical sectors such as textile and fiber, aluminum cement and chemicals. In 1969, the then

chairman of the group put the group on the global map. He set up 19 companies outside India, in

Thailand, Malaysia, Indonesia, Philippines and Egypt. Under Aditya Birla leadership, the group

attained new heights and it became world’s largest producer of viscose staple fiber, the largest

refiner of palm oil, the third largest producer of insulators and fourth largest producer of carbon

black. After Aditya Birla demise his son Kumar Mangalam Birla took over the charge of the

group and under his leadership the group has sustained the numero uno position in the sectors in

which it operates

2.3 Grasim’s Industry

Grasim Industries Limited is a Aditya Birla Group company that started in 1948 and which

started as a textile manufacturer. Since then Grasim has successfully diversified into Viscose

Staple Fiber (VSF), cement, sponge iron and chemicals. It is the world’s second largest producer

of Viscose Rayon Fiber with about 21% market share. Textile and related products contributes to

15% of the group turnover. Grasim is headquartered in Nagda, Madhya Pradesh and also has a

huge plant at Kharach, Gujarat.

GLOBAL FOOTSTEPS

Indo-Thai Synthetics Company Ltd was incorporated in 1969 in Thailand, started in1970; this

was Aditya Birla Group’s first foray into international venture. Aditya Birla in corporate P.T.

Elegant Textiles in 1973 in Indonesia. Thai Rayon incorporated in1974; this was the second

company in Thailand, operating in Viscose Rayon Staple Fiber. Century Textile Co. Ltd. Is taken

over by Aditya Birla Group in 1974; this company is a weaving and dyeing plant manufacturing

and exporting variety of synthetic fabrics. PT Sunrise Bhumi Textiles incorporated in 1979, it

produces Yarn which is exported to over 30 countries in 6 continents. P.T. Indo Bharat Rayon

incorporated in 1980 produces Viscose Staple Fiber in Indonesia to become a dominant player in

domestic market as well as export markets. Thai Polyphosphates and chemicals was started in

1984 in Thailand to produce sodium phosphates, presently merged with Thai Epoxy and Allied

Products Limited Company (1992), Thai Sulphites and Chemicals Company Limited(1995) to

form Aditya Birla Chemicals Ltd. This company supplies to sectors such as food, textiles,

electrical and electronics, composites, leather, plastics and automobiles. PT Indo Liberty Textiles

was incorporated in 1995 to manufacture synthetic spun yarn.

2.4 Birla cellulose

Birla Cellulose is the Grasim Industries umbrella brand for its range of cellulosic fibers. It

comprises versatile sub-brands; Birla Viscose, Birla Viscose Plus, Birla Modal and Birla Excel.

These brands offer a wide range of functional benefits such as soft feel, high moisture

absorbency, bio degradability and comfort to the wearer. These fibers have multiple applications

including apparel, home textiles, dress material, knitwear, non-woven etc

Vision

To be the Global Leader in the Man-made Cellulosic Fiber Industry

Mission

We aim to create Superior & Sustainable Value for all our stakeholders, maintaining the largest

market share in the Man-made Cellulosic Fiber Industry globally through:

• Innovation in Products & Processes

• Excellence in Quality, Service, People Development &

• Focus on Environment Friendliness in all our activities

Values

i) Integrity

ii) Commitment.

iii) Passion.

iv) Seamlessness.

v) Speed

2.5 KARA - Facial Wipes

Kara skin care wipe is launched by Aditya Birla group in 2008. It works as a solution for skin

care regime outside the home. A convenient way to look best always. Now day’s hectic schedule

gives a very little time to take care of our self and our skin. But with Kara skincare in our bag we

can easily take care of our skin when we are on the go. These wipes are made up of the unique

combination of natural ingredients. We can use these wipes anytime and anywhere easily. Kara

wipes are made from Birla cellulose which is a fiber that is 100% natural and biodegradable.

Kara skincare wipes are considered as the first premium wipes in Indian market. These types of

product are popular in the western countries but it is new concept in India. Although Indian

customer are familiar with the imported product like Kara wipes. But it is the first time an Indian

company entered into this segment. The brand also mark Aditya Birla group into the Indian

FMCG market.

Kara wipes are positioned as essential accessory for skin. The target people of this brand are

young lady Professionals, College going students who need to meet a lot of peoples and travels a

lot. The aim if this brand is to create the new category of wipes in India.

Some of the reasons why product is relevant in Indian market.

The climate which necessitates such a product.

Growing number of lady professional.

Improved lifestyle in urban cities.

Peoples are becoming more fashion oriented.

The difference between the other brand and Kara is that the other brand is made up of polyester

viscose blended non-woven fabric or paper. As polyester is not a skin friendly product it affect

our skin badly and this paper is tear off when rubbed on face and leave a lint on the face which

irritates the users often. On the other Kara is made up of Viscose fabric staple which is 100%

natural and clean all the dust and give nourishment to our skin. It doesn’t leave lint when rubbed

on the skin and makes users feel relax.

2.5.1 Characteristics of Kara skincare wipes

• Convenient

• Hassle free application of lotion without using cotton balls.

• Portable

• Lint free

• 100 percent natural and biodegradable.

• Hygienic

• Alcohol free

•Dermatologically safe

• Assurance of “Aditya Birla Group”

2.5.2 Variants of Kara

1. Kara refreshing wipes:- Kara refreshing wipes are made up of Aloevera for skin

nourishment and mint oil for effective refreshment and also with cucumber which help in

smoothening cooling and softening. Kara refreshing wipes do much more than cleaning

the dirt from the face. Rather it cleanses, nourishes and deodorizes it from inside as well

as from outside. A mixed of these characteristics and natural ingredients makes your skin

refresh.

2. Moisturizing wipes:- Kara Moisturizing wipes is made up with the goodness of Almond

and Honey which help in making skin more healthy and beautiful. It is also enriched with

vitamins for skin conditioning and is suitable for use right throughout the year. Users

enjoy the feel of moisturizing lotion with the convenient, hassle free Kara moisturizing

wipes. Moisturizing wipes, enabled by natural ingredients of honey and almond nourishes

the skin and ensure that the skin never loses moisture.

3. Make-up removal wipes:- Kara make-up removal wipes are made up of lavender and

extract of sea weed that remove the makeup in just one wipes. When it comes to getting

rid of that layer of makeup on your sskin, Kara Makeup removal wipes are the best

solution. These wipes exfoliates and protects in uniquely way. Therefore these wipes

ensure that skin will get nourished and moisturize while the makeup is removed.

4. Deep pore cleansing wipes:- deep pore cleansing wipes are made up of Jojoba and

Avocado extracts. It is a very gentle way to remove all the dust, grime and excess of oil

from the skin. It unclogs pores and thoroughly exfoliates dead skin cells. It remove all the

impurities which came into the contact with skin and give feel like your skin bathe in

purities of cleansing milk.

5. Toning wipes:- Kara toning wipes are made up of rose and thyme extract. These wipes

are the most effective way for ensuring smooth, even toned, and fresh skin at any given

point of time of the day. Thyme & Rose extract have a host of beneficial effects on the

skin giving your skin a youthful look, tone, elasticity, and even colored complexion,

along with the perfect PH balance.

6. Sunscreen wipes:- The goodness of sunscreen lotion with SPF 20 is now in an easy to

carry sunscreen wipes. The wipes is made up of rich Aloe Vera & plum extracts

nourishes the skin with vitamin E and anti oxidant, making your skin soft and supple. So

no matter how long you r out in the sun, skin is protected and pampered in a matter of

minutes.

2.6 Summer Internship profiles

For the periods of six week in our internship we need to work on the different trades or profiles

in the markets of Ludhiana and from these we want to find out which are the potential

opportunities which company can use for the future growth and also the threats and bottlenecks

which exists in the markets. So, that company can eliminate these bottlenecks from their

functioning such as strategies on which they are working for the growth of their products and

also to know the deficiencies in their distribution channel.

Different trades are as follows:-

I. General trading: - general trading is related to business to consumer concept of selling

the products. While working in general trading focus was on all the retail shops like

cosmetics shops, medical stores, stand alone stores, general stores etc. in nearly 10 big

and famous markets of Ludhiana. In general trading work is see the availability of Kara

in the different markets of Ludhiana and to find the problems which retailers have

regarding the product and also the problem with the company regarding their margin and

profit ratio etc. there are many cosmetics or medical stores which didn’t have Kara wipes

so here the work was done to create the demand of product by influencing the behavior of

these retailers and convince them to give the purchase order for our product. Worked

there with the distributors and took the orders from different outlets.

II. Modern trading: - Modern trading deals with the different malls, shopping complexes

and different shopping marts where thousands of peoples come daily to purchase all their

requirements starting from households products to apparels, entertainment and eatables

etc. In modern trading data was collected reliance market and More stores.

In modern trading taste and preference of the consumer while purchasing the product and

their reaction after seeing the product which can give the idea of what customer want

from our product was observed. This study would help company personal to do the better

projection of the strategies which they plan and implemented in the market for the growth

of their products.

III. Institutional trading: - Institutional trading is related to Business-to-Business selling of

the products. Presently wipes became the very good and preferred corporate gifts which

are given by the pharmaceuticals companies to the doctors, associates and to clients also.

Company can sell product through Pharmaceuticals Company and many beauty clinics

can help us to increase the sales of our product by recommending this products to their

patients. In institutional trading we need to focus on the institutes which can purchase in

bulk hence increasing the products sale and share in the market.

In institutional trading focus was on some of the pharmaceutical company and some of

the beauty clinics Some of the big saloons which also have their chain and branches in

Ludhiana were also targeted.

In institutional trading work was to get the linkups from these companies and clinics so

that company will be able to target the market through these institutions. This would also

improve the sales and market share of the product in the markets of Ludhiana.

IV. Market research: - This profile is research based in which a questionnaire was

constructed and respondent was asked to fill these questionnaires about Kara Wipes. This

study and analysis will give a clear idea about the consumer behavior and attitude toward

Kara wipes which also help to make reliable strategy and on the other hand this research

will also give a clear picture about the efficiency and deficiency of company’s

distribution system. So that company could work on it to improve or enhance their

distribution system.

Chapter 3

Research Methodology

Research Methodology

RESEARCH METHODOLOGY

Research approach Quantitative

Research design Descriptive

Research instrument Survey, Interview (non-directive) and observation(non- participant)

Scaling Nominal & Ordinal

Sampling Non-probability sampling (convenience sampling)

Data collection Primary and Secondary

Research tool Excel (pie charts, bar-graphs)

3.1 Research design

A descriptive research design is used in this study to describe the status of the different

variable. Data was being collected for the research, analysis and synthesis of which provides the

systematic information about the situation.

3.2 Research instrument used in this study

1. Survey: - A structured Questionnaire was constructed for collection of data to know the

market scenario of Kara wipes as a brand and to get customer perception regarding this

brand. The questionnaire was designed to accomplish the objective of study. Some of the

question are multi choice question and other are scored on a five point Likert scale

ranging from “strongly disagree” to “strongly agree”

2. Observation (non-participant):- Data was collected by non-participant observation. In

which researcher observe about the attribute of Kara wipes which is attract customers and

the attribute which change their perception toward the product. This study was done in

some modern markets like reliance mart and more stores.

3. Interview (non-directive):- Data was also collected by non-directive interview in which

open ended question was asked from retailers in different markets which provides the

information about the demand of Kara wipes, Intermediaries expectations from the

company and bottlenecks which exists in these markets.

3. 3Scaling

In this project both nominal and ordinal scale was used as in some questions only labels was

given to the responses and some of the questions were scored on five point Likert scale to get the

information about the importance and significance of different variables to attain main objective

3.4 Sampling

For the purpose of this study convenience sampling i.e. non-probability sampling was used for

collecting the data by getting the questionnaire filled by the respondent. It provides easiness and

quick responses from the respondent.

3.5 Data collection

1. Primary data: -

In this report primary data is collected by:-

Structured questionnaire.

Observation while working in modern trade in reliance mart.

Non- directive interview while interacting with the retailers and managers of the

different pharmaceuticals companies and beauty clinics.

2. Secondary data: -

In this report secondary data is collected by:-

From the company data given by the industry mentor.

Through internet and books.

Chapter-4

Distribution channel management

4.1 Distribution channel

Distribution channel is defined as a path or the way through which the finished product travel

from the manufacturer or vendor to the end consumers. A distribution channel may be short so

that a company can utilize the resources in best possible way and spend less in transferring the

goods to the end users. There are several intermediaries in the distribution channel like

distributors, wholesaler, dealers, and retailers through which the product passes before going to

the users of that product.

Types of distribution channel:-

Direct distribution channel: - it consists of.

Manufacturer -----------------------------------------------------------Consumers

1-tier distribution channel: - it consists of.

Manufacturer----------------------distributors-------------------------Consumers.

2- tier distribution channel:- it consists of

Manufacturer-------------distributor-------------retailer--------------Consumer.

3-tier distribution channel: - it consists of.

Manufacturer------distributors-----wholesalers-------retailers------Consumers.

Channel management

Channel management is the process through which manufacturer direct the marketing activities

in most effective and efficient way and also motivate the intermediaries comprising its

distribution channel. Managing channel is very important task for the managers as proper

channel help to make the product available at the right place as well as at the right time.

4.2 Distribution channel for Kara wipes

For Kara wipes in Ludhiana market Grasim’s adopted 2-tier distribution channel as there is

only distributor who is covering Jhalandhar, Ludhiana, and Moga and he nearly comes to

Ludhiana twice in a week. He has direct contacts with the retailers in Ludhiana and takes order

from them and directly gives product to them. There is no wholesaler or dealer in Ludhiana so,

due to this kind of distribution system it is very difficult to cover all the area and make product

available maximum outlets in Ludhiana.

4.3 Bottlenecks in Ludhiana market

2-tier distribution channel: - for the fast moving consumable goods 2-tier distribution

system would not work properly. Company needs to strength its distribution system by

introducing new distributor, wholesaler and dealers for different market in Ludhiana.

Availability: - due to the present distribution channel the availability of Kara wipes is

very less in the markets in comparison with the competitor’s products. Distributor alone

cannot cover all he Ludhiana markets and its shops and he has only limited shops in

every market.

Fewer margins to intermediaries: - Company is giving a margin of 20% to the retailer

in which is very less in comparison to the other product like Johnson & Johnson, so- soft,

In touch and Himalayas which are providing 25-30% of margin to the retailers. Due to

this reason retailers are more interested in selling the product of the other brand rather

than Kara.

No sales person:- There is neither a sales executive nor any sales person is working in

Ludhiana market to have a direct contact with the intermediaries which is very essential

element to increase the sales in a particular area.

Price of the product is high: - Price of Kara wipes is very high in comparison to the

other related product. Due to this in some of the markets the demand of the product is

very less because only fashion oriented and the people living high standard of living can

easily buy this product but people having limited income see he price before purchasing.

Demand is less: - In some of the areas demand is less because it s a new category of

product and due to less awareness and popularity it will take time to generate more sales.

4.4 Field work for strengthening distribution channel

In the period of six week work was done in different profiles which are as follows:-

General trade in which nearly 170 shops were visited and an interaction in the form of non-

directive interview were held with the retailers to get the information about the problems and

challenges which was faces by the retailers in the markets.

4.4.1 General trading

Create demand for Kara wipes: - In initial phase different outlets were visited as

customers to know the demand of Kara wipes in the markets and also to create more

demand of product in these markets.

Know the availability: - From the different markets information about the availability

was collected to know the market coverage and availability of Kara products in the

market.

Know about potential outlets and markets: - Information regarding the potential

outlets was collected from the different markets in Ludhiana in which company can target

effectively to increase the market coverage and sales of the product.

Get the information about competitors: - Data and information about the competitors

brand was collected about the price of their product and their pricing strategy and how

much margin they are providing to the retailers. Which could help the company to make

competitive pricing strategy and push their intermediaries to increase the sale of Kara

wipes.

Know the problems which retailers have with company:- Information was collected

through non-directive interviews with retailers about the problems which they have with

Kara wipes and company regarding their margins and benefits from the company.

Influence the retailers for giving purchase order: - work was done to influence the

retailer’s behavior and convince them topurchase Kara. Information about their

requirement in terms of margin and discounts was collected and discussed with the

management in company to resolve these problems superior for channel development.

List of the potential outlet visited

Chaura bazaar, Gur Mandi kohli medicose heaven cornerAshok cosmetics mahaveer medicose dk gift cornerJawar di hatti ramesh general store ramesh store raja enterprise manu general store mahek storeshubham store pyare lal and sons shally storebhatia medical MODEL TOWN sohan & sonsjanta medical Kalara gen. store ashoka gn store palli collection P.K gift corner preet gen. cosmetic storejuneja store mohan gen store gupta storegarg trader bir mrdicose krishna nd vijay medicoseradhe traders goyal store KOCCHAR MARKETchandra ji lal sethi cosmetics Kamal medical storemahinder pal & sons puri medicose Shiv medical storefancy bridal corner jyoti gen. store Bhasin medicospammy gen store noor medicose Amit medical hallsagar brothers khalsa store Eva hospital pharmacydawar agency happy beauty collection Arjun storehaqim medical store friends medical Goodwill storeJain enterprise new gen. store Janta medical storebombay cosmetics Atam store Gupta medical storekhurana cosmetics sethi childhood JWAR CAMPpal traders shiv gen. store Gupta dept. storeneelkhant trader surjeet store lailpur packing storemaha lakshmi trader khanna store sardar store SARABHA NAGAR kapoor gen store sohan&sonsCosmos departmental store koko gen store maheek gen. storeVirag selection point GHUMAR MANDI &DMC quality storeRaj chemist ashoka gn store laxmi traderLakme saloon preet gen. cosmetic store dhanlaxmi gen storeSurjeet store gupta store gupta gen. storeJain departmental store krishna nd vijay medicose baba-papa storerahul gen. store arpan store garg traderjai veer store sardar ji toys alankheswar hutahuja trader suresh kiryana store PEER GANJwadhwa traders amar medicose nice cosmeticsatul store choora store raja medicoserohan gen store mohan store health care pharmacy

johny corner neha beauty zone ks champkitti medicose new collection store kamal storepunjab medicose bridal store arora gen storepooja collection raj brothers medical st. nalm storevicky collection new bhatala k. store shiv dept. storebalaji store malhotra gen store roop store

visual gift jeet medical hall kishor lal & sonslahenga house raj kiryana store ram gen storeaarti gen store HAIBOWAL MARKETbhola bhandari store varun enterprisekake di hatti lovely storegulli di hatti jain storeraaj kirayana store classic centreoberoi cosmetics arun dept. store

4.4.2 Modern trade

Modern markets are gaining popularities these days as customer can get each and every product

which they want to buy below one roof only and they need not to spend more time in purchasing

these products from the different markets. These markets has a large number of foot-fall per day

and the chances for sale of the product is much more in these markets as customer explore every

product in the store and they also get these product is lesser price.

It is important to make the product available in these modern markets and company could get a

good amount of sales from these markets. Aditya Birla has a tie up with Metro wholesale market,

Reliance Market and more stores which are owned by Aditya Birla only and in these markets

Kara wipes are available and company is getting good sales from it.

Work was done in Reliance market for 2 weeks. Major work is to see the allocation of Kara

wipes in Reliance; a non- participant observation was done about the consumer behavior who is

buying our product i.e. which attribute of the product is attracting them and what is their

preference while buying Wipes. Interacted with some of the customer and provide information

about the benefits of Kara wipes to do branding and promotion of Kara product in this market.

Certain observation in modern markets:-

Larger foot-fall:- There is a large number of foot-fall in reliance market and because of

this reason the chances of sales of more units occurs. Ant it was observed that the sales in

these markets are more than that of general markets.

No proper assortment: - Observe the assortment of Kara wipes in reliance market. Kara

wipes have very narrow assortment and it is covered by many other brand like so soft

which have a large assortment in that section. And the customer gets more attracted

toward the other product because these products are easily visible to customers.

Fewer variants available: - All the variants of Kara wipes are not available in this

market. Only refreshing, toning and moisturizing wipes are there in good quantity.

Secondly only 10 wipes packets are available only on the other hand competitor product

has larger packets also which distract the customer from Kara wipes and customer get

attracted toward the other similar product like Puric, So soft, in touch etc.

Customer compare more with other brand: - In reliance market all the product in this

category is kept in one shelf only so customer have more chances to explore other

products also and compare these products with Kara wipes. As the price of Kara wipes is

more than that of other product so customer who consider price of the product while

purchasing shift to other brands.

4.4.3 Institutional trading

Company is selling Kara wipes at larger scale in some of the pharmaceuticals companies which

are being used by the company for re selling and also for the corporate gifting to their clients,

doctors and other related peoples. The brand has also institutional client such as jet airways and

Taj hotel chain. Company gets good revenue from these institutions.

My work in institutional trading is to target the pharmaceuticals company and other institutions

like skin care clinics and beauty parlor etc.

Two pharmaceutical companies overseas pharmaceutical Limited and Win Trust pharma

limited was visited. Where interaction with the trade managers or buyers from these companies

was held to discuss about the benefits of Kara and how these company can use Kara wipes in

their institution such as corporate gifting and for selling also. Work was done on ground level.

Information and data was collected from these companies and conveyed to superiors for further

processes.

Skin care clinics in Ludhiana was also targeted and some of them are as follows:- Ak clinics,

blooming dales skin care , Kyra beauty clinic and birdi clinics which are located in different

places in Ludhiana. Meetings with the doctors from these clinics was held to provide provide the

information about our product features and benefits to them and also to influence and convince

them to recommend Kara wipes to their patient. So that company can promotes their brand and

also increase the sales.

Some of the doctors show very less interest in proposals but some were interested in dealing with

the company. Meeting with Mr. Promod Bhatia (Manager- Business development) at A.k clinics

corporate office was held. Related information, samples and price quotation was provided to the

management.

Some of the beauty salon which has their chain in Ludhiana was also visited. In these saloons

interaction with the concerned person was held and information and samples was provided to the

for the purpose of branding and promotion of Kara wipes which ultimately help in achieving the

main objective of increasing the sales of product in this sector.

So, the brand promotion was done in these institutes through interacting with them and providing

the information about the benefits and usage of Kara wipes in these institution which would help

company to increase its market coverage as well as market share.

Chapter-5

Data analysis & Interpretation

1:- Do you use facial wipes?

77%

23%

YesNo

Fig. 5.1

Interpretation:-

Out of 141 respondent 109 are using wet facial wipes for their skin.

In spite of being a very little segment the popularity of these wipes is increasing.

From 2010 there is a growth of nearly 20% in this segment (euromonitor report)

Peoples in urban cities are becoming more fashion oriented and due to this demand of

these wet wipes is increased.

Consumers are using baby wipes to clean their face which results in growth of this

segment in markets.

2:- Mostly which brand of facial wipes you use?

johnson& johnson

Himalyas Kara Good look othet Not answer0

5

10

15

20

25

30

35

40

Fig. 5.2

Interpretation:-

22% of respondent didn’t answer this question as they are not using facial wipes.

Johnson & Johnson is the market leader which contributes nearly 32% of sales.

Kara contributes only 25% of sales in Ludhiana markets which is decreased from last

several years.

42% of the market is covered by other competitors such as Himalayas, good looks, in

touch, dettol, and some foreign players like orisis.

Competitors are selling their products on low price than Kara which helps in increasing

their sales and market share.

3:- Have you ever heard/Used Kara Facial Wipes?

82%

18%

YesNo

Fig. 5.3

Interpretation:-

Out of 141 respondent118 used or heard about Kara wipes.

Out of 118 only 28 respondents is using Kara wipes presently. This tells that in spite of

being aware about the product customers are using other brand.

This shows that customers are switching to other brands.

4:- From where you heard about Kara facial wipes?

Advertisement Words of mouth Retailers others not answer0

10

20

30

40

50

60

Fig. 5.4

Interpretation:-

20% of the respondents are not aware about the Kara wipes.

Only 15% of the respondents get aware from advertisement and company sales person.

This means that company is not making effort for the promotion of their product.

Kara got promoted majorly by publicity through words of mouth.

Retailers also are not interested in promoting Kara wipes in comparison to other similar

brands.

5:- Which attribute attract you to toward Kara wipes?

Fig. 5.5

Interpretation:-

Kara is considered as premium brand in this segment.

Quality is the variable toward which customers are mostly attracted.45% of the

respondents likes the quality of Kara wipes.

Study shows that there is less availability of Kara wipes in the markets.

Some of the customers also attract toward other attributes like packaging and fragrance

etc.

Only 2% of respondent attract toward Kara by it price. This shows that price of the

product is not acceptable by customers.

6:- From where you prefer to buy facial wipes?

Brand Name Price Quality Availablity Others N.A0

10

20

30

40

50

60

Mall Cosmetic shop General store Medical store Other Not answered0

5

10

15

20

25

30

35

40

Fig. 5.6

Interpretation:-

Nearly 20% of respondent didn’t answer this question as they are not using facial wipes.

45% of the respondents are purchasing wipes from modern markets like malls, reliance

market, metro and many other super markets exists in Ludhiana.

Modern markets and cosmetics shops are the potential places to target for increasing the

sales.

Consumers also prefer to buy wipes from medical store to get medicated wipes like

Dettol and Himalayas. So, company can also make their product available on medical

stores for increasing market share.

7:- Kara wipes are easily available in the markets?

Strongly disagree Disagree Neutral Agree Strongly agree0

10

20

30

40

50

60

70

Fig. 5.7

Interpretation:-

55% of the respondent disagrees on the point that Kara is easily available in the market. Only 16% of respondents believe that Kara is available in the market as these respondents

are buying wipes from modern markets. This data shows that availability of Kara wipes is very less in the markets as the

distribution channel is not effective in Ludhiana market.

8:- All Kara variants are available in the outlets?

20%

39%

36%

5%

Strongly disagreeDisagreeNeutral AgreeStrongly agree

Fig. 5.8

Interpretation:-

Kara is the only brand which has different variants of their product.

Data shows that only 5% respondents agree that all the variants of Kara wipes are

available in the markets.

Company is not making effort to make all the variants available in the market.

Brand is not using its main advantage i.e. its variants to increase the sales and market

share.

9:- Retailers push you to purchase Kara wipes?

Strongly Disagree Disagree Neutral Agree Strongly agree0

10

20

30

40

50

60

70

Fig. 5.9

Interpretation:-

Graph shows that majority of the respondents are disagrees on the statement that retailers

push them to purchase Kara wipes.

Study shows that 14% of the respondents strongly disagree, 26% of respondents disagree

and 41% are neutral that retailers push them to purchase Kara wipes.

Only 15% of the respondents agree that retailers are making effort to sell Kara wipes in

the markets.

This shows that intermediary channel is neither interested in making efforts to make

customer aware about Kara wipes nor in selling the product in markets.

10:-Kara wipe is considered as premium brand product?

Strongly disagree Disagree Neutral Agree Strongly Agree0

5

10

15

20

25

30

35

40

45

50

Fig. 5.10

Interpretation:-

Tag of Aditya Birla group makes Kara a premium brand in this segment.

Study show 30% of the respondent agrees and 34% strongly agree that Kara is a premium

brand.

Kara wipes are of premium quality which also helps Kara to create brand image in mind

of consumers.

Brand image is also the factor which attract customer toward Kara wipes.

11:- Brand name influences your purchase decision?

8%

24%

30%

32%

6%

Strongly disagree

Disagree

Neutral

Agree

Strongly Agree

Fig. 5.11

Interpretation:-

Data shows that 32% of the respondents agree and 6% strongly agrees that brand name

influence their buying behavior.

30% of the respondents are neutral in this so they switchers.

32% of the respondents are not brand seekers and they see value for money in their

purchase.

This shows that people are becoming more fashion oriented and they prefer branded

product for their personal use.

Company can improve their branding strategy to increase their customer base which

helps to increase sales in Ludhiana market.

12:- Quality of Kara wipes is reliable?

Strongly disagree

Disagree Neutral Agree Strongly Agree Not answered0

5

10

15

20

25

30

35

40

45

Fig. 5.12

Interpretation:-

16% of the respondents didn’t answer this question because they are not using any facial

wipes.

Graph shows that 28% of respondents strongly agree and 24% agree that the quality of

Kara wipes is reliable.

This shows that company is focusing on making premium quality product rather than

making cheaper product of low quality to increase sale.

Quality can be considered as the most important attributes of Kara wipes which influence

customer behavior toward it.

13:- Price of Kara Wipes is reasonable?

Strongly disagree Disagree Neutral Agree Strongly Agree0

10

20

30

40

50

60

70

Fig. 5.13

Interpretation:-

Company is using natural fiber for producing Kara wipes and is concentrating more on its

quality so the price of the product is relatively higher than other similar products.

This data shows that majority of the people disagree that the price of Kara wipes is

reasonable.

This graph shows that20% of the respondent strongly disagrees and 41% of the

respondents disagrees that price of the Kara wipes is reasonable.

This indicates that company should do competitive pricing for its product as most of the

customer see price before purchase. As the price of Kara is more that its competitor so

this becomes major disadvantage for Kara to achieve more sales.

14:- Are you a brand loyal customer?

6%22%

51%

18% 3%

Sales

Strongly disagreeDisagreeNeutralAgreeStrongly Agree

Fig. 5.14

Interpretation:-

This graph shows that how many people stick to or purchases one brand.

As data shows that 51% of the respondents are neutral, 22% disagree and 6% strongly

disagree when it comes to brand loyalty and they switch to different brand over times.

Only 25 % people agree that they are brand loyal and they use same brand for long time.

This indicates that company should make a strong brand image so that people didn’t

switch to other brands.

15:- Should company need brand promotion for Kara wipes?

2%

41%

50%

7%

Strongly disagreeDisagreeNeutralAgreeStrongly Agree

Fig. 5.15

Interpretation:-

Presently company is not promoting its brand in the markets. Company did brand promotion only till 2010-11. So a question arises that should company do brand promotion or not.

The data shows that 50 % of the respondents agree and 7% strongly agree that company should do brand promotion.

Brand promotion will help to create more awareness and influencing more customer which would ultimately increase sales and market share

Chapter-6

Conclusion & suggestion

6.1 Findings

In spite of being a very little segment study shows that wet facial wipes are getting

popularity in the markets and customers are using wipes in place of other things like

handkerchief and other personal care products.

Presently in Ludhiana market Johnson & Johnson is the market leader which contributes

nearly 32% of sales. The reason for this is customers are also using baby wipes as facial

wipes as they are very soft and Johnson & Johnson is a very popular brand for kids

section and Johnson baby wipes are very popular.

According to the analysis peoples in Ludhiana are aware about the Kara wipes but they

are not using it much. Reason behind this may be the price and availability of Kara wipes

in markets.

The customer based is increased as wipes got visibility in modern market such as super

markets and hyper markets. Sales of these products are more in modern markets as in

these markets customer explore more products and chances of impulse buying increased.

As the study suggests Kara wipes is gaining popularity by publicity through words of

mouth where customers are spreading the news about this product. But company is not

making any direct efforts to promote these products in Markets.

Distribution channel is not working effectively in Ludhiana market as company adopt 2-

tier distribution system due to which market coverage is very less for Kara wipes which

results in less availability of wipes in different markets.

Channel intermediaries are not making proper efforts to promote the product and enhance

the sales of this product. As intermediaries work for company to promote the product but

in case of Kara retailers are not interested in doing so. Reason behind this is they are

getting lower margin and benefits from company as compared to other brand.

Study suggests that Kara is considered as premium brand in this segment due to the tag of

Aditya Birla Group on this brand.

Customers now days becoming more fashion oriented and they prefer to buy branded

products. So it’s an opportunity with Kara to do brand promotion for their product to

increase customer base.

Study shows that quality is a factor which influence customer toward Kara wipes. As

company is focusing more on the quality to attract the customer rather than any other

factor.

Price of Kara wipes is relatively higher than that of the competitors products as they are

using natural fibers for producing these wipes. Customers feels that the price should be

reduce as buying this much costly wipes didn’t make any sense to them.

According to the data there are very les customers who are brand loyal and most of the

customers are switchers. So a proper branding strategy should be implemented to attract

and retain the customers.

Market expectation:-

Customer expectation Intermediaries expectationProduct should be of better quality Better margin Reliable price Effective distribution system Product availability Promotional tools Discounts Sales person support Variants should be available in outlets Competitive price so that they could

work to increase the sales

SWOT analysis of Kara wipes.

Strengths Weakness

High industry attractiveness.

Premium quality product.

Made up of 100% natural fibers.

Biodegradable.

Hygienic, Alcohol free.

Higher price

Low business unit strength.

Middle class people hesitate to purchase.

No promotional activities.

Low profit margin to intermediaries.

Opportunities Threats

Climate necessitates these types of products

More fashion oriented customers.

Increased in the number of working ladies.

This concept is getting more awareness and

attention now days.

Competitors.

Chinese products such as orisis which are

very less costly than Kara.

Baby wipes, as many customers are using

baby wipes as facial wipes.

6.2 Conclusion

On the basis of the study done in this report and finding, conclusion was made through generic

electric nine cell model which indicate the business strength and industry attractiveness

regarding Kara wipes

General electric nine cell matrix

Fig.6.2.1

Kara has high industry attractiveness but medium business unit strength. Some years before Kara

hold a dominant position in the market nearly 56%. But due to the competitors who are offering

similar product in very less price in comparison to Kara the sales of the Kara is affected

adversely. The major reason is Kara is considered as a premium product in this segment and it

focus more on the quality because of which the price of Kara wipes are much higher than the

competitors products. As customers are more price sensitive so they get attracted toward other

low quality product which they can get in lower price and the customers which concentrate more

on the quality and brand of the product are buying Kara wipes.

Since Wet Wipes is a new concept, they are at an introductory level. But with the increasing

awareness of hygienic need and higher standard of living, people are showing very positive

response toward these products. Therefore it is placed under high industry attractiveness. The

circle falling in the green area indicate that company need to invest more on the promotional

activities to grow its brand and to increase the market share to hold dominant position in

markets.

Distribution system of Kara is not effective enough as in Ludhiana. Kara have 2- tier

distributional channel where only distributor and retailers are taking care of the sales and market

growth of the products. No sales person from the company is working in the markets who can

interact to the retailers and resolve their problem related to products or company.

Due to inefficiency of distribution system there is less availability of Kara wipes in the markets

which ultimately affects the sales and market coverage. Retailers are also very less interested in

selling the product as they are getting very less margin i.e. 20% on Kara wipes in comparison to

the related brands which provide 25-30% of margin in the sales of their products. In spite of this

company is not giving any benefits to the intermediaries to motivate them to sell its products in

markets.

6.3 Suggestions

Introduction of fat-agent in the markets: - Fat- agents are the stockiest who keep a lot of

product and distribute them to the other outlets in the same or nearby markets. Company should

make fat-agents in the markets so that product availability would increase which will also

enhance the market coverage.

Focus on institutional trading:- As there are many pharmaceuticals company and skin care

clinics exists in Ludhiana so company can focus on these institutes to increase their sales as well

as customer base. In institutional trade purchase order is much bigger than in any other trade so if

company could able to get linkups with several companies it would be a great opportunity for

increasing the market share.

Company should adopt competitive pricing strategy: - The price of Kara wipes are relatively

higher than the competitors due to which the customers are switching to the other brands. To

resolve this problem company should adopt competitive pricing so that customers did not switch

to other brand by comparing the price of different products.

Motivating intermediaries: - Intermediaries are the face of company in front of the customers

so channel intermediaries should be motivated by the company so that they could help in

promoting the brand in the markets. Company should increase the profit margin and provide

other benefits to retailers and also look forward to resolve their problem on time so that they will

take interest in selling the products which would help in achieving the objective of company.

Kara needs a brand strategy:- Kara need a brand strategy because currently company is not

promoting Kara wipes by any of the means neither by advertisement nor by any other means of

promotional tools an because of that only the demand and awareness of the product is restricted

which adversely effecting the sales of the wipes in markets. so, company should advertise the

product to create a awareness and demand of the product which would help company to increase

market coverage as well as market size. More promotion tool should be given to the

intermediaries which will work as point of purchase material in the outlets and help company to

promote the product and enhance sales.

In this era of digitalization company should focus on other medium of promoting the brand such

as social media, internet and web based applications. A page could be created on social media

websites which could create awareness and promote product to a larger extent and can help the

company to increase their customer base and demand of the product.

Bibliography

Literary references

Philip kotler; marketing management, 13th edition

Krishna k havaldar; sales and distribution management.

Internet references

www.adityabirla.com

www.birlacellulose.com

https://www.bcps.org/offices/lis/researchcourse/key_elements.html#designapproach

http://www.business-standard.com/article/management/grasim-forays-into-fmcg-

through-birla-cellulose-108030901051_1.html

http://www.euromonitor.com/medialibrary/pdf/samples/

sample_report_tissues_hygiene_wipes.pdf

http://www.grasim.com/

Annexure

QUESTIONNAIRE

Kara wet facial wipes

1:- Do you use facial wipes?

Yes No

2:- Mostly which brand of facial wipes you use?

Johnson & Johnson Himalaya Kara Good look Others_________

3:- Have you ever heard/Used Kara Facial Wipes?

Yes No

4:- From where you heard about Kara facial wipes?

Advertisement Word of mouth Retailers Others__________

5:- Which attribute attract you to toward Kara wipes?

Brand name Price Quality Availability Others__________

6:- From where you prefer to buy facial wipes?

Mall Cosmetic shop General store Medical Store Other_______

7:- Kara wipes are easily available in the markets?

Strongly Disagree Disagree Neutral Agree Strongly Agree

8:- All Kara variants are available in the outlets?

Strongly Disagree Disagree Neutral Agree Strongly Agree

9:- Retailers push you to purchase Kara wipes?

Strongly Disagree Disagree Neutral Agree Strongly Agree

10:-Kara wipe is considered as premium brand product?

Strongly Disagree Disagree Neutral Agree Strongly Agree

11:- Brand name influences your purchase decision?

Strongly Disagree Disagree Neutral Agree Strongly Agree

12:- Quality of Kara wipes is reliable?

Strongly Disagree Disagree Neutral Agree Strongly Agree

13:- Price of Kara Wipes is reasonable?

Strongly Disagree Disagree Neutral Agree Strongly Agree

14:- Are you a brand loyal customer?

Strongly Disagree Disagree Neutral Agree Strongly Agree

15:- Should company need brand promotion for Kara wipes?

Strongly Disagree Disagree Neutral Agree Strongly Agree

Name_______________

Place_______________