Submitted By : Group -

6

Alok kumar

Dinesh Kumar S

Dixit Somanna NG

Jeetan Kumar Pradhan

Kaushik Ranjan Kashayap

A Descriptive Study on a shampoo product (Vivel)by ITC Limited.

Submitted toProf. Karpagam

ACKNOWLEDGEMENT

I owe a great many thanks to a great many people who helped and supported me

during the writing of this book.

My deepest thanks to Prof. Karpagam the Guide of the project for guiding and

correcting various documents of mine with attention and care. She has taken pain to go

through the project and make necessary correction as and when needed.

I would also thank my Institution and my faculty members without whom this

project would have been a distant reality. I also extend my heartfelt thanks to my

family and well wishers.

Group - 6

Table of ContentsITC Profile...........................................................................................................................................................4

Market size and Description:..............................................................................................................................5

Product Mix........................................................................................................................................................8

Price...................................................................................................................................................................9

Distribution........................................................................................................................................................9

Promotion........................................................................................................................................................10

Sales History.....................................................................................................................................................10

Buying behavior and Competitive analysis......................................................................................11

COMPETITION WITH HINDUSTAN UNILEVER....................................................................................................12

BCG matrix of ITC..........................................................................................................................................13

RESEARCH METHODOLOGY..............................................................................................................................16

Questionnaire...............................................................................................................................................17

Result or data analysis and findings................................................................................................................19

Segmentation, Targeting, and Positioning........................................................................................25

Segmentation..........................................................................................................................................25

New Target Audience.......................................................................................................................................27

Positioning....................................................................................................................................................27

Communication Objectives..............................................................................................................................28

Budget Request................................................................................................................................................29

Message Strategy:............................................................................................................................................30

Media Mix and Objectives:...............................................................................................................................31

Evaluation of Program......................................................................................................................................33

Bibliography.....................................................................................................................................................34

ITC ProfileITC Ltd is one of India's premier private sector companies with diversified presence in businesses

such as Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged

Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety

Matches and other FMCG products.

Company History

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India

Limited'. Its beginnings were humble. A leased office on Radha Bazaar 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. The Company's ownership

progressively Indianised, and the name of the Company was changed 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-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops

in the Company's name were removed effective September 18, 2001. The Company now stands

rechristened ‘ITC Limited’.

Firm's Present Status

ITC is one of India's leading private sector companies with a market capitalization of nearly US $

22 billion and a turnover of US $ 5 billion. It is rated as one of the most reputable companies by

Forbes magazine. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty

Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. ITC’s Agri -

business is one of the India largest exporters of agricultural products .It is one of the country’s

biggest foreign exchange earners, US $ .2 billion in last decade.

Market size and Description:The shampoo market in India was estimated at Rs. 21.41 billion per annum as of February 2008,

growing annually at a rate of 14.5 percent. The market was dominated by India's largest fast moving

consumer goods company, Hindustan Unilever Ltd. (HUL), and one of the world's largest consumer

goods companies, Procter & Gamble Company (P&G) CavinKare Pvt. Ltd. (CavinKare) and Dabur

India Ltd. (Dabur) were other significant players in this highly competitive market (Refer to Figure I

for the market share of the top companies in the Indian shampoo market)...

Hair Care - Shampoos

The shampoo market in India is valued at Rs 4.5 bn with the penetration level at 13% only. The

market is expected to increase due to lower duties and aggressive marketing by players Shampoo is

also available in a sachet, which is affordable and makes upto 40% of the total shampoo sale. The

Indian shampoo market is characterized by a twin-benefit platform: cosmetic and anti-dandruff. It is

basically an upper middle class product, as more than 50% of the consumers use ordinary toilet soap

for washing hair. While the awareness level is high, the penetration level is very low even in the

metros which is only 30%. Urban markets account for 80% of the total shampoo market, The

penetration level is rapidly increasing due to decline in excise duty, which was 120% in 1993 to 30%

currently.

Shampoo market Size in India:

Size of shampoo market - 930 Cr

Anti - Dandruff Shampoo - 20 % of above

Sachet Sales - 70 % of above

Shampoo Awareness in India:

Urban areas - 90 %, accounting for 80 % of shampoo sold in the country

Rural areas - 80 %, accounting for 20 % of shampoo sold in the country

Shampoo Usage:

Per Capita consumption of Shampoo in India - 13 ml

Per Capita consumption of Shampoo in Indonesia - 160 ml

Per Capita consumption of Shampoo in Thailand - 330 ml

Shampoo Penetration in India:

All India Shampoo - 14 %

Urban - 40 %

Rural - 10 %

Growth in Shampoo Market

Average Growth over the last few yrs - > 20 %

Expected Average growth over the next few yrs - 25 %

AD segment is the fastest growing segment, growing at 10 - 12 % every year.

H & S growing at 15 - 20 % every year.

Evolution of Shampoo in India:

HLL undisputed leader from the early 90’s

Sunsilk launched in 1964 (General Shampoo platform )

Clinic Plus launched in 1971 (Family, health shampoo platform )

Clinic All Clear launched in 1987 (Therapeutic AD Shampoo )

Sunsilk re-launched in 1987 - Shampoo + Conditioner ( Beauty platform ) with Sachet SKU

HLL Goes rural with Sachet

Clinic Active launched in 1991 (with Pro Vitamin B - health platform )

Entry of Competition

Why did competition Enter India

Teeming millions

Burgeoning middle class

Westernized youth

Low penetration levels

Huge untapped market

Shampoo Boom in India

In mid 1997, per capita consumption of Shampoo increased

Of the Rs. 350 Cr. Shampoo market, the AD segment accounted for a 20 % share

P & G launched its Internationally acclaimed A & D shampoo H & S in 1997 with Zinc Pyrithine

( ZPT ) - a unique anti-microbial agent. There were 2 variants - regular and menthol

Sachet sale became 40 % of all shampoo consumption in the country

Product Mix

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.

Ultrapro anti-dandruff shampoo -The product portfolio was further enhanced with the launch of Ultrapro anti-dandruff shampoo under the umbrella brand Vivel in December 2008. Ultrapro promises to fight dandruff twice as effectively while also providing care for hair through the plus plus benefits of Nourishment and Moisturisation.

Price

CategoryKey Ingredients Competion ITC Price Remarks

Sunsilk Rs 89- 200 mlRs 49 - 100 mlRs 6 - 32 mlRs 2 - 8 ml

Actipro KVivel Shampoo (3)

Benchmarked with SunsilkClinic Plus

Distribution

Promotion

There are three types of sales promotion strategies:

1:-A push strategy

2:-A pull strategy or

3:-A combination of the two

A 'push' sales promotion strategy involves 'pushing' distributors and retailers to sell

your products and services to the consumer by offering various kinds of promotions

and personal selling efforts. The basic objective of this strategy is to persuade

retailers, wholesalers and distributors to carry your brand, give it shelf space, promote

it by advertising, and ultimately 'push' it forward to the consumer. Typical push sales

promotion strategies include; buy-back guarantees, free trials, contests, discounts, and

specialty advertising items.

Sales History

-

Buying behavior and Competitive analysis 

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations use internationally recognised safe ingredients, subjected to the highest standards of safety and performance.

Vivel PortfolioBetween  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 and shampoos, cater to the specific needs of a wide range of consumers.Vivel Di Wills and Vivel are high quality ranges of soaps and shampoos for the upper-mid and mid-market consumer segments. All products offer a unique value proposition of bringing together ingredients that provide the benefit of Nourishment, Protection and Moisturisation through one product, hence providing the ever discerning consumer complete care, which makes her beautiful and confident.

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.The product portfolio was further enhanced with the launch of Ultrapro anti-dandruff shampoo under the umbrella brand Vivel in December 2008. Ultrapro promises to fight dandruff twice as effectively while also providing care for hair through the plus plus benefits of Nourishment and Moisturisation.

COMPETITION WITH HINDUSTAN UNILEVER

INTRODUCTION OF HUL COMPETITION PRODUCT

Clinic Plus 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, softens rough dry hair, shine for thick and Healthy hair, and contains anti-dandruff ingredient.The franchise also includes Clinic All Clear Total, first introduced in 1996. It is a dual Shampoo – it not only fights the last dandruff flake, but also adds back lost nutrients To make hair healthy and beautiful. Clinic All Clear Total is a dandruff solution for Everyday use. V/S

Vivel Protect Active Health shampoo The Vivel range of shampoos has been launched to cater to the large popular market in the personal care category. The products under the Vivel brand are made from scientifically developed formulations 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.

BCG matrix of ITC

STAR QUESTION MARK AGRI BUSINESS ≠ FMCG (vivel ) HOTELS ≠ FOODS PAPERR BOARD AND PACKGING

CASH COW DOG FMCG ≠ ITC INFO TECH CIGARETTE

Impact of Vivel’s advertisement

An effective advertisement will attract more and more customer to buy,helps in the brand image formation,and informative in telling the USP of the product.

CONSUMER BUYING DECISSION

The main driver in attracting the consumer is quality of the product itself with nearly 65% of the people surveyed citing it as the main criterion for choosing the product followed by past experience of the consumer with the brand 17.6% .Price was third criteria with a percentage of 11.7% of the people surveyed gave importance during buying.

Analysis on DiversificationITC has been a leader in the tobacco business, but it realize from the up coming trends that remaining with a single business is not a noble thought, moreover the company was threatened of the anti-tobacco campaign. Therefore the company decided to venture into InfoTech with ITC InfoTech, foods via Kitchens of India, greeting cards through Expressions and lifestyle retailing through Wills Sport. Each of these is intended to draw revenues of at least Rs. 250 crore by 2005

ITC was a cash rich company with a liquidity of Rs.8816 million in the cigarette business, even though the company understood the need and usefulness of diversification. The writer in the article is mainly concerned with the way ITC spreads its wings in the lifestyle segments, he writes:” forty-five stores in 34 cities in just under a year, selling inexpensive fashion brand of relaxed-wear. If retail swamp-out and brand salience were the goals, ITC’s Wills Sport would be on victory lap already.

RESEARCH METHODOLOGY CHECK LIST METHOD

RESEARCH APPROACH DIRECT CONTRACT WITH PEOPLE.

SAMPLING PLANSAMPLE UNIT:- BOTH MALE & FEMALESAMPLE SIZE:- 100 PROSPECTSSAMPLE SEGMENTATION:- ON THE BASIS OF AGE, SHOP NAME ,LOCATION,&

GENDER.SAMPLING METHOD:- SIMPLE RANDOMSAMPLING AREA:- BANGALORE ,KARNATAKA

RESEARCH METHODOLOGYThe “methodology” spells the meaning itself i.e. method users by the research in obtaining information. The primary and secondary source can collect the information.PRIMARY DATA:By conducting survey of the readers, i obtained the primary data. The methods are:1. Observation method2. Questionnaire method

Through questionnaire I collected most of the data through questionnaire. Here I went in different areas of city and ask the shopkeeper to fill the questionnaire.In my questionnaire there were both objective as well as descriptive questions. I found that when i provide general guidance to respondents they feel easy in multiple choices of questions.Secondary data1.Through different sites of Personal Care Product industry.2.Through latest magazine3 Through Marketing book

RESEARCH DESIGNA research design is the determination and statement of the general research approach or strategy adapted for the particular project. Every research design conducted scientifically has specific frame work for controlling data collection. This frame work is called as research design.In developing a research design for a certain study a researcher anticipates the needs and circumstances of the proposed study and specify in advance what to obtain and what to do. Thus research design serves as a bridge between what has been established (the research objective ) and what it to be done, in the conduction of the study , to release those objectives.Research is basically of two types :

Exploratory research Conclusive research

Exploratory research Where there is a search for hypothesis exploratory research is conducted. In this flexibility and ingenuity characterize the investigation usually the three line of attach may aid in finding hypothesis.

Study of secondary sources Survey of individuals Case study.

Since the project has been mean to discover the rural distribution of personal care project, it become necessary that the study must be EXPLORATORY. More the study was to cover many respondents and various factor to be studied, it was decided to adopt survey method. Questionnaire for survey.

Questionnaire SHOPKEEPER PERCEPTIONAGE:SHOP NAME:LOCATION: Q 1-WHAT IS THE CUSTOMER VIEW WHEN THEY PURCHASE THE PRODUCT?

(a) LOOKS QUALITY (b) LOOKS PRISE (c) LOOKS FOR SIZE(d) QUALITY & SIZE BOTH(e) SIZE & PRISE

Q2-WHAT CRITERIA YOU APPLY WHEN YOU SALE YOUR PRODUCTS?(a) FOCUS ON QUALITY(b) FOCUS ON PRISE(c) FOCUS ON COMPANY NAME(d) FOCUS ON SIZE(e) FOCUS ON MARGIN

Q3-WHICH TYPE SHAMPOO CUSTOMER PREFER TO PURCHASE?(a) VIVEL (b) LUX,CLINIC PLUS(c) PANTEEN(d) VATIKA(e) OTHER

Q4-WHY CUSTOMER LIKE TO PURCHASE ITC ‘S SHAMPOO?(a) TRUST ON ITC (b) ITC HAVE A QUALITY PRODUCT(c) ITC HAVE VARIOUS RANGE(d) BOTH OF THEM (e) NONE OF THEM

Q5-DO YOU INSIST CUSTOMER TO PURCHASE ITC PRODUCT?(a) YES (b) NO(c) SOME TIME

Q6-DO YOU LIKE TO PURCHASE ITC SHAMPOO IN BULK? IF YES THEN............(a) MONTHLY(b) WEEKLY(c) YEARLY(d) QUATRLY(e) NEVER

Q7-HOW FOR DO YOU THINK ITC HAVE CAPTURED THE CUSTOMER PREFERNCE?(a) ON SMALL SCALE

(b) ON LARGE SCALE(c) SO-SO

Q8- WHICH PROBLEM YOU FACE TO SALE THE ITC PRODUCT?(a) PRICE OF PRODUCT (b) SIZE(c) LACK OF AWARENESS(d) BRAND LOYALITY(e) ANYOTHER

Q9-HOW CAN YOU DECIDE THAT YOU PURCHASE & SALE THE PRODUCT?(a) QUALITY(b) COMPANY NAME(c) MARGIN(d) MARGIN & COMPANY NAME(e) QUALITY & MARGIN

Q10-ANY SUGGESTION FOR COMPANY?

Result or data analysis and findings DATA ANALYSISHUL Ltd cover a huge market of personal care product .HUL ltd and other company give the customer offer and promo offer or consumer offer. They give different offer on different products .when customer (shopkeeper) sale it get more profit .Some company like HUL give 16 % on CFC of 100 ml pack.

ITC LTD ALSO GIVE DISCOUNT’AND HERE IS ALL ITC SCHEME FOR SHAMPOO.

1CFC 5% DISCOUNT3 CFC TO 5 CFC 7% DISCOUNT7 TO MORE CFC 10% DISCOUNT ON VIVEL & SUPERIA.

VIVEL DI WILLS HAS NO SCHEME.

VIVEL HAS A CONSUMER OFFER THAT VIVEL SHAMPOO FREE ON FIAMA DI WILLS 200ml,100ml .When you want to establish your product then in the beginning you have to firstly focus on product to become In demand and then focus on to become on need.Some time before ITC LTD give promo offer on VIVEL shampoo, and that shampoo was sold out.In rural area ,their consumer belongs to popular segment, so there is opportunity to sale our vivel & other product for popular segments , Because they are not brand loyal.If we give more discount to shopkeeper then he can take more and he will insist to consumer to purchase our product.

Here our competition with all personal care product producer but HUL LTD is a huge company and give competition on all segment.Breeze V/s Superia soapLux V/s VivelLux international V/s Vivel di willsDove V/s Fiama di willsLux & Clinic shampoo V/s vivel shampooClinic plus V/s vivel shampoo

In the survey, it was found that there is a shampoo name Chik has also good sale, and give good competition . They use to sale chik by push and pull theory, that if any shopkeeper want to purchase their product then they have too purchase all variants . When a shopkeeper purchase product then he try to sale also and now Chik is in demand and shopkeeper have not to problem to take them.

Q 1-WHAT IS THE CUSTOMER VIEW WHEN THEY PURCHASE THE PRODUCT

Q2-WHAT CRITERIA YOU APPLY WHEN YOU SALE YOUR PRODUCTS?

S. NO OPTION NO OF RESPONDENT(a) LOOKS QUALITY 10(b) LOOKS PRISE 07(c) LOOKS FOR SIZE 03(d) QUALITY & SIZE BOTH 26(e) SIZE & PRISE 54

S. NO OPTION NO OF RESPONDENT

(a) FOCUS ON QUALITY 20(b) FOCUS ON PRISE 16 (c) FOCUS ON COMPANY NAME 20(d) FOCUS ON SIZE 15(e) FOCUS ON MARGIN 29

Q3-WHICH TYPE SHAMPOO CUSTOMER PREFER TO PURCHASE?

S. NO OPTION NO OF RESPONDENT

(a) VIVEL 28(b) LUX,CLINIC PLUS,DOVE 47(c) PANTEEN 21 (d) VATIKA 04(e) OTHER 00

Q4-WHY CUSTOMER LIKE TO PURCHASE ITC’S SHAMPOO?

S. NO OPTION NO OF RESPONDENT

1. TRUST ON ITC 082. ITC HAVE A QUALITY PRODUCT 393. ITC HAVE VARIOUS RANGE 144. ALL OF THEM 345. NONE OF THEM 05

Q5-DO YOU INSIST CUSTOMER TO PURCHASE ITC PRODUCT?

S. NO OPTION NO OF RESPONDENT

1. YES 462. NO 223. SOME TIME 32

Q6-DO YOU LIKE TO PURCHASE ITC SAMPOO IN BULK? IF YES THEN............

S. NO OPTION NO OF RESPONDENT

1. WEEKLY 68 2. MONTHLY 073. QUATRLY 004. YEARLY 005. NEVER 25

Q7-HOW FOR DO YOU THINK ITC HAVE CAPTURED THE CUSTOMER PRIFERNCE?

S. NO OPTION NO OF RESPONDENT

1. ON SMALL SCALE 482. ON LARGE SCALE 183. SO-SO 34

Q8- WHICH PROBLEM YOU FACE TO SALE THE ITC PRODUCT?

S. NO OPTION NO OF RESPONDENT

1. PRICE OF PRODUCT 212. SIZE 463. LACK OF AWARENESS 124. BRAND LOYALITY 045. ANYOTHER 17

Q9-HOW CAN YOU DECIDE THAT YOU PURCHASE & SALE THE PRODUCT?

S. NO OPTION NO OF RESPONDENT

1. QUALITY 022. COMPANY NAME 033. MARGIN 174. MARGIN & COMPANY NAME 355. QUALITY & MARGIN 43

FINDINGS ITC LTD can covered and capture huge market in personal care product, Because there is a

scope. Some company give good margin, so the shopkeeper purchase their product. There are consumer belongs form popular segment which are not brand loyal. The trust in ITC LTD and know that the company give quality product. Offer pack or consumer offer pack mostly sales. Some time there is a demand but no fulfilment.

SUGGESTION SUGGESTIONS The company should focus on fulfilment of the demand of the whole sale

distributor ,because he has to keep inventory in access. Some time shopkeeper said for shampoo thing has no inventory to fulfil the order.

Company have to give the margin on product to sale the product . A shopkeeper thinks that Vivel & other product which I have insist to sale then I have to sale those things which give me more profit.

ITC LTD give the promo offer and also give the discount , but the company gave discount on same. There is no different to take 100 ml shampoo or 200 ml shampoo, there is discount is same on cfc.

ITC LTD give lesser discount with respect to other competitors…1CFC 5% DISCOUNT3 CFC TO 5 CFC 7% DISCOUNT7 TO MORE CFC 10% DISCOUNT

Segmentation, Targeting, and Positioning

Segmentation The division of a market into different homogeneous groups of consumers is known as market segmentation.

Rather than offer the same marketing mix to vastly different customers, market segmentation makes it possible for firms to tailor the marketing mix for specific target markets, thus better satisfying customer needs. Not all elements of the marketing mix are necessarily changed from one segment to the next. For example, in some cases only the promotional campaigns would differ.

A market segment should be: measurable accessible by communication and distribution channels different in its response to a marketing mix durable (not changing too quickly) substantial enough to be profitable

A market can be segmented by various bases, and industrial markets are segmented somewhat differently from consumer markets, as described below.

Consumer Market Segmentation

A basis for segmentation is a factor that varies among groups within a market, but that is consistent within groups. One can identify four primary bases on which to segment a consumer market:

Geographic segmentation is based on regional variables such as region, climate, population density, and population growth rate.

Demographic segmentation is based on variables such as age, gender, ethnicity, education, occupation, income, and family status.

Psychographic segmentation is based on variables such as values, attitudes, and lifestyle.

Behavioral segmentation is based on variables such as usage rate and patterns, price sensitivity, brand loyalty, and benefits sought.

The optimal bases on which to segment the market depend on the particular situation and are determined by marketing research, market trends, and managerial judgment.

The shampoo market in India has changed significantly since the 1960s when it first became a lifestyle product in urban homes. As of 2009, it was a very competitive market with dominant players such as Hindustan Unilever Ltd. and Procter & Gamble Company. Analysts expect competition in the market to intensify further. The market is marked by intense competition from domestic as well as multinational companies. The changing dynamics in the industry coupled with comparatively low penetration rates offer the players in this market the opportunity to grow in both the top and bottom ends of the market.

Segmentation strategies

The new segmentation strategy will include two types of segmentation -

1. Geographical Segmentation

Rural Marketing

Vivel’s are high quality ranges of shampoos for the upper-mid and mid-market consumer segments. As these segments mostly prevail in urban areas vivel was losing a greater share of markets. So the new strategy will be to capture the rural untapped market which accounts for 20% of shampoo sold in the country .Though the shampoo awareness in rural areas is high as 80% sales are considerably low. So it would be a challenging task for Vivel to capture that market

Why rural market . Half the national income is generated in the Rural India.

2/3rd of the population lives here.

A World Of Opportunities and Challenges

Traditional Outlook

Large and Scattered market

Major income from Agriculture

2. Behavioral segmentation

Shampoo market is segmented on following benefit platforms

Cosmetic ( shine, health, strength )

Anti - Dandruff

Herbal

With Vivel’s availability in both Cosmetic and anti-dandruff ranges of shampoos as per benefit platform, herbal ranges are left untouched . So a new shampoo will be created keeping herbal in mind .

New Target Audience

Vivel is a high quality range of shampoos which were created keeping the following target audience in mind:

Upper middle class Middle class and house wives

Upper class rural consumers

Teenagers.

But the new target audience will include

Lower Middle Class Semi Rural

Monthly household income of Rs 1500 – 3000

Females in age group of 16 - plus

Positioning

Positioning is about building a single-minded value proposition in the mind of the consumers. Positioning gives consistency to the other 4Ps. The Vivel range has to live up to the brand promise of ITC and at the same time, focus on psychographics, product aesthetics and create a feel of natural elements.The new positioning will focus on herbal attribute of the products as the older ranges of vivel shampoo already has the nature attribute .

Communication Objectives

The objectives of marketing communications are concerned primarily with information and education about companies and their products and services, and ultimately with consumer purchase and satisfaction, together with achievement of corporate goals such as profits, return on investment, growth, and market shares. However, “purchase” behavior is typically the end result of the consumer decision‐making process and the marketing communicator wishes to move the target audience through several stages of readiness to buy.

The objectives of our campaign are as follows

To create an emotional advertisement campaign where people can relate themselves with vivel.

To gain 80% of awareness of the vivel’s new herbal shampoo in the market in the first quarter and stimulate trial purchase by offering quantity discount incentives.

 To communicate vivel’s extension in the sachet segment .

To gain 60% awareness of  vivel in rural areas by 1 month

Develop and maintain regular use of vivel shampoo among 20% of target audience.

Send representatives from ITC to rural areas where people hardly use shampoo, and educate them about the usefulness of shampoo.

As the new target market is rural areas the new strategy would be to focus on, the radio and on daily local newspaper to reach a lot of customers

Direct marketing will be the highest priority in IMC plan as it has been found by research that huge population of India has either no knowledge or has wrong knowledge herbal shampoo . So a well designed web site will provide all facts about vivel’s herbal shampoo.

Budget Request

All the allocation is based on the idea that dare to think out of box and make vivel a ultimate success.

So the budget would be allocated on the basis of IMC objectives which are always in line with the

marketing objectives. So the budget allocation goes like this:

a. ADVERTISING 0.5 CRORE

b. DIRECT MARKETING 0.5 CRORE

c. SALES PROMOTION 0.25 CRORE

d. PUBLIC RELATIONS 0.25 CRORE

e. SPONSORSHIP 1 CRORE

f. PERSONAL SELLING 1 CRORE

g. INTERNET MARKETING 0.5 CRORE

TOTAL 4 CRORES

Message Strategy:

Vivel shampoos cater to the specific needs of a wide range of consumers. This is a high quality range of shampoos for the upper-mid and mid-market consumer segment. This product offers a unique value proposition of bringing together ingredients that provide the benefit of Nourishment, Protection and Moisturisation through one product, hence providing the ever discerning consumer complete care, which makes the consumer beautiful and confident.

Objective:

ITC one of India’s largest players in the FMCG sector in the month of June 2008 has come out with a new range of shampoos Vivel shampoo in line with its aspiration to offer world class products to the Indian consumer.

Key Benefits:

The product portfolio was further enhanced with the launch of Ultrapro anti-dandruff shampoo under the same umbrella brand Vivel in December 2008. Ultrapro promises to fight dandruff twice as effectively while also providing care for hair through the plus plus benefits of Nourishment and

Moisturisation.

Claims and Promises:

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

Vivel Shine & Glow – suitable for dull to normal hair and is enriched with Green tea extract and conditioners. It adds shine to hair.

Vivel Soft & Fresh – suitable for dry to normal hair and contains Extra conditioners and soya protein. It makes hair soft and fragrant.

Vivel Volume & Bounce – suitable for oily to normal hair and contains Jojoba oil and conditioners. It adds volume and bounce to hair.

Support, reassurance:

1. The success of ITC’s other products and Fiama Di Wills will help this product to be successful.

2. The media is carrying the message efficiently and effectively.

3. ITC has efficiently used every promotional media for its new product.

4. Gives the total brand experience created by all contact points for the brand.

Media Mix and Objectives:

Advertising is the means of informing as well as influencing the general public to buy products or services through visual or oral messages. A product or service is advertised to create awareness in the minds of potential buyers. Advertising is actually brand-building through effective communication and is essentially a service industry. It helps to create demand, promote marketing system and boost economic growth.

We are required to determine which elements will be included in the IMC mix. We are required to determine the optimal mix of elements which will allow us to achieve the overall IMC objectives. It is important to recognize the advantages and limitation of the various promotional elements and the ability to gain synergies by using a mix of elements. The various elements that are included in the IMC mix must work together to deliver a consistent and persuasive message.

Major methods for advertising:

Magazines: Magazines ads can be quite expensive. Fashion or movie magazines such as “Femina” “Cosmopolitan” “Filmfare” will be very useful because it mainly focuses on youth and fashion hence helping to capture the target market and potential customers.

Newspapers: Now a day almost everyone reads the local, major newspapers. We can explain the specifications of the product in newspapers by placing ads.

Radio announcements: A major advantage of radio ads is they are usually cheaper than television ads, and many people still listen to the radio, especially in metros while travelling. Ads are usually sold on a package basis that considers the number of ads, the length of ads and when they are put on the air. A major consideration with radio ads is to get them announced at the times that our potential customers are listening to the radio.

Television ads: They are more expensive than most of major forms of advertising. However, with the increasing number of television networks and stations, businesses might find good deals for placing commercials advertisements. Television ads usually are priced with similar considerations to radio ads, that is, the number of ads, the length of ads and when they are put on the air. We can also sponsor some of the TV shows. Right now Vivel shampoo has sponsored “Super Singer” a reality show in Telugu, and has also stepped forward to sponsor a Bengali reality show.

Web Pages: Now, advertising and promotions on the World Wide Web are almost commonplace. Businesses are developing Web pages sometimes just to appear up-to-date. Also promoting the brand through social networking sites will always helpful.

Sales Promotion/Special events: This trend to attract attention can include announcing a major program or service or campaign, arranging a beauty contest or arrange instant hair care clinic sponsored by Vivel etc.

E.g.: ITC is offering Vivel Di Wills shampoo (200 ml) free with its 75 gm bathing soap for Rs 89. ITC brands are new hence marketing efforts are geared towards enhancing consumer engagement and trial.

Articles: If there is any strong impression about the product it can be published in web or news paper. Consider writing an article for the local newspaper or a magazine. In the article we can also use the opportunity to compare our product with other products by customer responses.

E.g.: Vivel shampoo a quality product launched by ITC private ltd. few months back. It really is a world class shampoo and gives the hair a smooth and silky feel. Actually I am a bit skeptic about using new products but my sister who had been using it for quite a while forced me to try the product .She had a very rough and dry hair and within months of using the shampoo it became smooth and silky so I got a kind of jealous and wanted to try the product after all who doesn’t want a long silky hair. It’s pretty cheap and is within the range of any common man and I first tried out the Black Vivel shampoo which my Sister was using. I must say that I liked it from the very first use as it gave me a clean and smooth feeling. My hair too was quite dry and rough so I decided to continue using

the product and discard the other shampoo I was using. I have been using the shampoo regularly for the past 2 months or so and I am very much satisfied with the results. The hair has got smoother and the roughness has almost disappeared and one additional benefit is that it also has controlled my hair fall considerable. It is not a hair fall control shampoo but I am happy that the shampoo suits me and has improved the health of my hair considerably.

Evaluation Program Our product has reached most of the audience in the south-India and most of the places are

covered in Bangalore. It has also reached the demographic peoples of above 15 to below 30 aged customers.

Mostly consumers purchasing sachets in daily basis and bottles are consumed in weekly and monthly basis.

In the geographical allocation, we have covered Metro cities, Two-Tier and Three Tier sectors for the promotional activities of our product.

The budget allocated for media and promotional activities in the last year i.e., 2008-09 was 13 lakhs in all the covered area.

As we establish that this promotional activities made huge impact on increase in sales of the product, so we decided to enhance the promotional activities to attract most of the customers.

In this year budget allotment for promotional activities are 19 lakhs overall i.e., 10-12 lakhs for most of the Metro-cities, 4-5 lakhs for Two-Tier, 1-2 lakhs for Three-Tier sectors.

The promotional activities like door-to-door campaign, open stall counters, promotional events etc., through this activities we could catch the attention of most of the primary consumers.

The media used for the promotional activities are print media like magazine (size-wise, audience-wise and geography-wise) and Newspaper (display advertisements and pamphlet advertisements) and also promoting through television.

Today’s generation were mostly spending their time in television so it is one of the best media to attract the younger generation.

Most newspapers covers massive group of audience, so print media can be one of the best supports to attract other customers.

Bibliography

http://www.itcportal.com/sets/personalcare_frameset.htm

http://www.brainmass.com/homework-help/business/marketing/85827

www.lse.ac.uk/.../HIVIEWandEQUITYthe Shampoo CaseStudy.htm

www. strategy online.ca/articles/magazine/20030421/shewchuk.html

www. imc .net.au/resources