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A SUMMER INTERNSHIP PROJECT REPORT ON
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CERTIFICATE
(Signature)
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DECLARATION
Karishma Verma
BM-017323
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ACKNOWLEDGMENT
I am highly obliged by the constant support that I got from our faculty during the
course of the project. Starting from the initial stages till the end I have received
continuous feedback with regard to the progress of the project.
Though a lot of hard work has gone into the making of this project, it would not
have been possible without the assistance of few people. I would like to extend my
sincere gratitude towards Mr. Dushyant Dhakre (Regional Head), Mr.
Ankleshwar Srivastava (Sales Officer ) Future Consumers Ltd, for guiding me
and providing the essential inputs and assisting me throughout.
Finally, I would say that this project has helped me to understand how the things
get done in competitive business scenario.
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EXECUTIVE SUMMARY
The objective of project was “To take measures for maximizing sales opportunities
and develop long-term relationships for Kara wet wipes”. Thus, approaching
potential customers in person, introducing our products to them and reminding
them until them give a formal response was our priority task.
However, along with it, a primary research work was also done to supplement the
field work. Samples were showed to them along with briefing about the product.
Free samples were given by company who showed good level of interest in Kara.
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.
The scope of study is to understand the problem faced by the company while
increasing the retail outlets. By this study company will get the information about
current competitive position of the Kara wipes and nail polish removing wipes in
the market. The whole approach of marketing pivot around the tenet of meeting the
consumer wants. Creating demand of Kara wipes in different markets.
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LIST OF CONTENT
SNO. Title Page no.
1. INTRODUCTION 10
3. ANALYSIS OF 3C’S 19
7. CONCLUSION 62
8. REFRENCES 64
9. ANNEXURE 65
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1. INTRODUCTION
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. 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%.
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 2015, Aditya Birla Group Company Grasim Industries has decided to sell its
consumer products business to Kishore Biyani-Run Future Consumer Enterprise
Limited on a slump sale basis.
Under Kara, they have launched a NAIL POLISH REMOVER which is in the
wipe form which offers immense convenience. They started it recently and the
numbers which that were seeing were outstanding. Now as these products start
going into other channels and distribution, the business mix will continue to
change..
The concept of project was “To take measures for maximizing sales opportunities
and promote Kara in NOIDA market. Thus, approaching to general public and
introducing our products to them and reminding them until they give a formal
response was our priority task. However, along with it, primary research work was
also done to supplement the field work.Study Free samples were given to people
along with a small briefing about the product who showed good level of interest in
Kara. Relevance of Study the research work gives us an idea as to what difficulties
Kara is facing in spite of being a very good quality product. It gives a scope of
improvement to rethink on some marketing aspects like better discount slabs,
refining target customers etc. Since the TV advertisement campaign for Kara is
gaining momentum, aggressive selling can be practiced to offer Kara in major
market of NOIDA.
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1.2 ISSUE OF THE PROJECT
There were four profiles offered for our summer internship out of which we had to
choose one depending on our area of interest. All the profiles fall under their
marketing and sales department, thus required us to interact with various people
varying from marketing managers, retail shop owners to customers at shopping
malls. I chose ChannelSales Management, because this profile required interacting
with people at various managerial levels in market and enhance my knowledge
byobserving and refining my skills with every new interaction. All the small retail
shops are focused where the internee had to see if Kara is already available with
them, are the retailers happy about the response of the product, sufficient inventory
levels are maintained etc. Also there were many retail shops which didn’t have any
wet wipes and were apprehensive about keeping our product. The internees had to
market their product to such retailers and clarify any doubts which retailer has
about the product. The profiles are discussed as below:
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2) MODERN TRADE MANAGEMENT
Modern trade management deals with malls and shopping complex where
thousands of customers come daily to buy household items. Kara is available at
almost every mall in NOIDA, however internees under this profile have to check
daily inventory levels of product, it’s placing as compared to competitor products,
visibility, customer’s reaction on seeing the product etc.
4) MARKETING RESEARCH
This profile is a pure marketing research based where the internee has to ask
respondents to fill up a pre-designed questionnaire thus fulfilling his given
objective. The internee was given a place like a mall or a market where he had to
intercept potential respondents and request them to take part in his research.
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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 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.
Under Kara, they have launched a NAIL POLISH REMOVER which is in the
wipe form which offers immense convenience. They started it recently and the
numbers which that were seeing were outstanding. Now as these products start
going into other channels and distribution, the business mix will continue to
change
These wipes contain olive oil and that’s why they feel so oily and super
moisturizing. Mostly one wipe for ten nails is enough. One single wipe can totally
remove the nail color from their nails. Usually they are placed on the top of nail
and left it for few seconds then gently rub the wipe on nail and the nail color comes
off easily. These wipes are so easy to use and take only a few minutes to clean all
the nails. But, one wipe takes a little extra time when it comes to darker shades.
Actually, one wipe is not enough for the darker shades. They need a clean wipe to
remove all the mess created by dark nail polishes. Still, one wipe can remove dark
nail colors nicely. These wipes also can remove glitter nail paints smoothly and
easily. Overall, these wipes can clean all nail paints easily without being harsh on
consumer nails.
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Super affordable and good quantity.
Beautiful, sweet scent of roses.
Not a strong scent.
Super moist wipes.
One wipe can clean almost 10 nails.
Removes the entire nail color easily.
Can remove glitter nail paints.
Keeps nails moisturized and smooth.
Contains olive oil and vitamin E.
Nails do not get scratched or peeled.
Acetone-free.
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Dermatological Safe.
The product is made up of pure viscose which has a 10 times better
absorbing power than cotton.
Best Brand-Compactly packaged and pre-moistened Kara skincare wipes
gives a hygienic, convenient and effective skincare solution to the
consumers on the go. These wipes are easy to carry and use. They are highly
effective with unique formulations having natural ingredients that nourish
the skin. They are alcohol free and dermatological safe. Kara is made from
Birla Cellulose, a fiber that is 100 percent natural and biodegradable.
Free promotion
Weakness :
KARA hasn‘t been spending much on advertisement which leads to low
level of awareness in market.
No infrastructure in Ghaziabad obstacle in operation.
Retailers have very less margin as compared to other brands.
Comparatively high price
Irregular follow-up by the salesman is hindering the sales to go up.
Opportunity :
Noida is one of the fastest developing cities in Uttar Pradesh. Due to which
there is a lot of potential in Noida as a market for Kara wet wipes.
Noida has one of the highest consumer expenditure for cosmetic market.
Standard of living, status symbol & life style have been on rise thus pushing
up such demand. Growing market of skin care products in Noida.
Hotels have been on rapid rise in Noida. Demand of wet wipes is high in
hotels.
Restaurants can provide KARA wet wipe to their customers for refreshment.
Beauty Parlor –Opportunity came out for Kara is refreshing wipes and
makeup removal could be used in beauty parlor operations like facial,
makeup, cleansing, body spa, massage etc. could add value to customer and
in some of operation they could charge more from customers. KARA can
target local branded beauty parlors.
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Travel agency –KARA wet wipes is mostly used during travelling so travel
agency can be targeted.
People are gradually getting acquainted with the western concept of wet
wipes.
Huge untapped market.
Climate of India is favorable for such products.
Growing market of Skincare products in India.
Threats :
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Michael Porter’s Five Forces Model
Being a new and niche segment, wet wipes market was overlooked earlier
but due to entrance of big players like Johnson & Johnson and Aditya Birla
group, even small firms are coming into the market. Likewise niche markets,
wet wipes market has great potential of growth. When Aditya Birla Group
came with its cosmetic wipes range and no other company’s wipes were
available in the market and the company was enjoying a monopoly in Noida
but the scenario has changed, now the competition is available in the market.
The major threat is wipes like lotus, clarus, purple turtle, Etiquette by Built
are available in the market. These companies are giving high margins to the
retailers and providing to the customer at low cost. So the product price
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elasticity is affected by substitute products. New entrants are coming to get
and increase the market share which is increasing the rivalry.
Threat of Substitute
There are many substitute of this product. Some has direct competition of
the product such as cheaper Chinese wipes, wipes of Johnson and Johnson
etc. Some are indirect competitor of Kara such as handkerchief, towel, tissue
paper etc.
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2. Analysis of 3C’s
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''Kara skincare wipes fill up the lacuna in this segment as there is lack of
availability of quality products at appropriate price in the Indian market.''
Kara Skincare wipes is a new product to hit the Indian market. The brand is
now running heavy print campaign announcing the launch. Kara Skincare
wipes can be called as India's first branded skincare wipe product. Skincare
wipes are popular in the west but in India the category is a new one.
Although Indian consumers are familiar with the products which are
imported, it’s the first time that an Indian company enters this segment Kara
means care. The brand also marks Aditya Birla Group's foray into the Indian
FMCG market.
The brand aims to create a new category of wipes in India. Hence the
challenge is to educate the target audience about the usefulness of this
product. This task is cut out for Kara since the customer is already exposed
to such products. The only task is to inculcate the habit of buying and using
the wipes. The product is relevant in the Indian market for two reasons-
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Kara has a good potential to create and own a new category. The brand
already has the first mover advantage. But the category does not have much
entry barriers. It can face stiff competition from cheap imports. But Kara has
the financial backing of Future Customer Group Ltd. And the investment in
building this brand will pave the way for another successful marketing story.
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come with a delightful fruity fragrance, which comes out pleasantly post
usage.
This on-the-move pack has been designed for convenience of use anytime
anywhere. It can be easily slipped in your bag, used in flights, classrooms,
and boardrooms anywhere anytime. All our wipes are dermatologically
tested, are Acetone free, Toluene free and Paraben free.
Distribution:
KARA product has been distributed into two parts:
Skin Care Wipes
Nail Paint Remover Wipe
Baby Care Wipes
Hand Sanitizing Wipes
Kara Deep Pore Cleansing is a gentle, effective way to clean your skin of dirt,
grime and excess of oil. Enriched with Jojoba and Avocado extracts, it unclogs
pores, detoxifies and thoroughly exfoliates dead skin cells.
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Sunscreen Wipes -
Kara sunscreen wipes has a formulation of SPF 20 which protects the skin from the
adverse effects of UV A and UV B sun rays. It is enriched withantioxidants like
plum extract and vitamin E that nourishes the skin and Aloe Vera that keeps the
skin moisturized.
Moisturizing Wipes -
Kara Moisturizing wipes is enriched with the goodness of almond and honey for
beautiful radiant and glowing skin. It is also fortified with vitamins for skin
conditioning and is suitable for use right throughout the year.
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Toning Wipes-
Kara Toning Wipes is enriched with Rose and Thyme extract that tighten the skin
and maintain the normal pH balance.
Kara Make-Up Removal Wipes are enriched with Lavender and Seaweed extracts
that removes the make-up in just one swipe.
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Refreshing Facial Wipes-
Kara Refreshing wipes are enriched with Aloe Vera for skin nourishment and mint
oil for effective freshening. It ensures effective cleansing to remove dirt, excess oil
and grime from the face and neck and also leaves a lingering fragrance.
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Hand Sanitizing Wipes :
Lemon
Rose
Orange
Strawberry
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The pack contains 30 wipes and every wipe is effective in cleansing up to 10 nails!
The wipe contains an Acetone free formulation for effective removal of nail polish,
even of the darkest shade. These wipes are made from poly-viscose fiber and
contain natural olive oil extracts that prevents drying of nail and skin surrounding
nails. Also enriched with skin nourishing vitamin E, it helps in keeping your nails
nourished and moisturized at all times. All wipes come with a delightful fruity
fragrance, which comes out pleasantly post usage.
This on-the-move pack has been designed for convenience of use anytime
anywhere. It can be easily slipped in your bag, used in flights, classrooms, and
boardrooms anywhere anytime. All our wipes are dermatologically tested, are
Acetone free, Toluene free and Paraben free.
The packaging of the product is the most intriguing factor. The wipes are placed
one by one in a stack within a white plastic container. This is absolutely traveled
friendly. All the wipes are wet and moisturizes properly because of the presence of
olive oil and Vitamin E or Tocopheryl acetate. There are some curvy patterns made
on the wipes which makes them more user friendly.
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There is no scratch or peeling on nails either. These wipes keep nails soft for long.
This product is a really good option for dry nails. It never irritates skin. Overall,
consumers are totally in love this nail polish remover and it works its best to
remove the nail paint and also provides superb moisturize to nails. The Lemon
variant is less oily than Rose variant yet it works quicker. These wipes are really
good for travel time.
2. Competitor :
Competition Analysis of Kara Wipes
Future group Ltd. aims to create a new category of wipes in India. Hence the
challenge is to educate the TG about the usefulness of this product. This task is cut
out for Kara since the TGis already exposed to such products. The only task is to
inculcate the habit of buying and using the wipes. The product is relevant in the
Indian market for two reasons. One is the climate which necessitates such a
product and second is the growing number of lady professionals. The brand has the
tagline “At your best Always” which clearly communicates the core brand
positioning. The brand is being promoted as the anytime solution to look good.
Kara has a good potential to create and own a new category. The brand already has
the first mover advantage. But the category does not have much entry barriers. It
can face stiffcompetition from cheap imports. But Kara has the financial backing
of Birla group and theinvestment in building this brand will pave the way for
another successful marketing story.
COMPETITORS INFORMATION:
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Novel Tissues
A young company, a company that has witnessed tremendous growth and progress,
within a short span of time. Novel Tissues is an ISO 9001:2000 certified company.
As a company,Novel Tissues has benefited tremendously from its steadfast focus
on improving quality standard of its offerings. Rightly all our wet tissue products
are licensed by the Controller ofDrugs, Government of Karnataka, India. Its quality
checks are stringent and of high standards. Right from the texture of the tissue fibre
to the packaging style, we ensure you get the best product. The company employs
quality professionals and follows ISO certified production processes, which
ensures the desired quality in our end products.
When it comes to manufacturing wet tissues, Novel stands leagues apart owing to
its sheer class and deft. Novel wet tissues are extremely good for personal hygiene,
for instant cleansing and freshening up. Our wet tissues are made from premium
quality rayon nonwoven fabric that is perfumed and moistened using the purest
form of water,menthol, glycerine and trichlosan; ideal for a good, healthy skin. At
Novel, we refrain from using anyharmful chemicals. Our brand of wet tissues has
been well accepted as a premium qualityproduct by retail, corporate and other
segments of the market.
JOHNSON N JOHNSON:
The world’s largest and most diverse medical devices and Diagnostics Company
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And the world’s eighth-largest pharmaceuticals company
Himalaya Drug Company was founded in 1930 by Mr. M Manal with a clear
vision to bring Ayurveda to society in a contemporary form and to unravel the
mystery behind the 5,000 years old system of medicine. This included referring to
Ayurveda texts, indigenous herbs and subjects. The formulations to modern
pharmacological, toxicological and safety tests to create new drugs and therapies.
Cost: KARA is the lowest cost producer of VSF in the world. It is the most
integrated fiber producer with the chain stretching right from Forest to Pulp to
Fiber to Yarn. All most all the intermediate inputs are captive. Besides, their in-
house engineering division enables us to grow in a most cost effective way.
Technology: On technology front, they produce all the three generations of man-
made cellulosic fibers from an in-house developed capability through research and
development. Their research and development efforts are not limited tofiber stage
alone but extend to entire textile value chain. While the plantation and related
activity is carried out at Grasim Research Institute (GFRI, Harihar, India), the
Product innovations are carried out at Birla Research Institute (BRI, Nagda, India).
For value chain related activities, a state of art “Textiles Research & Application
Development Centre” has been established at Kharach, Gujarat -India to entire
textile value chain from yarn to fabric to garments.
Markets: On marketing front, their reach extends to the entire globe, through
marketing offices. On a global level, their major strength is in spun-dyed fibers and
now other specialties such as Non-woven, Modal and Excel have started
penetrating in global markets. Their brand “Birla Cellulose” is firmly entrenched in
the market. Their value added marketing services comprising of technical,
logistical, financial, marketing and informational support have enabled us to
emerge as the most preferred supplier of VSF in world. Our offerings whether
from India, Thailand, Indonesia or China are all marketed under the mother brand
“Birla Cellulose” and sub brands Birla Viscose, Birla Modal & Birla Excel. An
umbrella brand has enabled us to create a common identity for our product across
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the globe irrespective of its production origin and creating of awareness of the
brand.
3. Consumer :
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 Noida 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 Noida
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 Noida 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 Future 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. Customers feels that the price should be reduce
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as buying this much costly wipes didn’t make any sense to them. According to the
data there are very less 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.
RESEARCH OBJECTIVE
RESEARCH DESIGN
A Research Design is a frame work or blue print for conducting the marketing
research project. It details the procedures necessary for obtaining the information
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needed to structure or solve marketing research problem. Although a broad
approach to the problem has already been developed, the research design specifies
the details, the nuts and bolts of implementing the approach. A research design lays
the foundation for conducting the project. A good research design will ensure that
the marketing research project is conducted effectively and efficiently. There are
three types of research designs viz.
Exploratory: This type of research is done when objective is not known and it
helps in providing insight and understandings to define a problem. It also involves
formulation of hypothesis. The study involves finding out present data of demand
for skincare wipes and prospective buyers and consumers of the skincare wipes.
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The Descriptive Research can be classified in two methods:
Survey Methods:
This method is used when the research directly corresponds the respondent, makes
him aware of our objective and seeks his help in filling up the questionnaire. The
respondent answers each and every question thus giving his contribution to the
study. Some of the observation methods are: Telephonic Surveys, Mall intercept
Mail surveys.
Observation Methods:
This method is used when the researcher uses his own judgment on behalf of
respondent by observing his reactions and answers when they interact with each
other. The researcher tries to put all elements of research questions in the
conversation and seeks to find the answers without letting respondent know about
it.
In this project, Observation method as well as survey method has been used. The
former one has been used for retailers where they were unaware that they are
participating in the research with their conversation and latter one has been used
for all commuters of retail stores and online as well.
Scaling:
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In addition to counting, one can place objects accordingly relative to their
rank.
Interval: Numerically equal distances on the scale represent equal values in
the characteristic being measured. However the location of origin is
arbitrary.
Ratio: Possesses all the properties of the nominal, ordinal, and interval
scales. It has an absolute zero point
In this project, all the questions have been designed using Nominal scale.
Sample Size-
The data was collected through filling up the questionnaires, getting data from
retailers and through market survey and market research study. The sample size for
the study taken is 59.
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Non Probability Sampling- Sampling technique that do not use chance selection
procedures and rather they rely on the personal judgment of the researcher. Non
probability sampling technique is further classified as:
Convenience Sampling
Judgmental Sampling
Quota Sampling
Snowball Sampling
Data Collection
Primary Data
The first-hand information bearing on any research is the one which has been
collected by the researcher. The data here is collected through:
A structured questionnaire
Personal interview of both retailer and consumers.
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Secondary Data:
The data which has already been collected, complied and presented earlier by any
agency may be used for purpose of investigation. The data collected through:
Respondents : 59
Sampling Frame : 59
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Limitations of the study:
Research is based on the collection of data from both primary and secondary
sources.
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5. Data Analysis and Observations
Interpretations:
The statistic clearly shows that teen ager and young people is the main user of wet
wipes. Out of total respondents, 83% belongs to the age of 15-25. Young married
females and males are the second most users of wipes that stands at 13% on the
graph. Thus, we should be more focused on targeting young school and college
students and last but not the least young working people who spends a large
portion of their income on cosmetic.
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What is your profession?
Interpretations:
Kara is a product made for youth, now students are very conscious about their look
and life style. They are very much well informed and understand the benefits of
using these skin care products. Among all respondents, 82% are students who use
wet facial wipes. Working professionals do not get free time to care about their
beauty and skin, thus, the concept of wet wipes those can be conveniently carried
and used has given them flexibility to take care of their skin out of their busy
schedule. Therefore, we should mainly focus on students and working professional
these categories of people are the one who would use the product
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Are you aware of the brand KARA?
Interpretations:
It is a very pleasant and satisfying result that being launched in 2008, Kara has
gained a significant awareness of its brand in the market. Among all respondents,
81% are aware of Kara and 4% are not sure but have heard of the brand
somewhere. Only 15% of respondents are entirely unaware of the brand Kara,
despite of its full effort in creating awareness of the brand. Thus, we can infer that
Kara in not at its introduction stage rather it is on its growth stage where we need
to provide information to customers in convincing that how our product is different
and better than products of the other players in the market.
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Have you seen KARA’S advertisement on television or anywhere else :
Interpretation:
Aditya Birla group started airing its advertisement of Kara from last month of
May. The companies visited before that was not aware of the advertisement. Out of
59 respondents, about one third people have seen its advertisement when it was
asked during conversation. However more people must have seen it’s
advertisement since then. There were four different advertisements launched each
having a duration of about 22 seconds.
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How you’ll rate the advertisement:
Interpretation:
The respondents who had seen the advertisement were asked informally about
their opinion about the advertisement. None of them considered advertisement of
low quality and most of the people felt it was of average nature.
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Do you use wet facial wipes ?
Interpretation:
The above statistic shows that 81% respondents are the user of wet facial wipes.
Being randomly surveyed a sample of 59 people online as well as offline; this may
not be the actual result in the market. But, this huge positive response clearly
indicates that the use of wet facial wipes in Indian market has increased drastically
over years. It also provides a scope that people are shifting their mind from
traditional liquid form of cosmetics products to the wet wipes products.
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How often do you use the wipes?
Interpretations:
Here, according to data, 52% respondents use wet wipes when they require the
same. However, 27% people use wipes twice in a day and 17% once in a day. The
people who uses wipes thrice in a day are 5% and more than thrice are 2%, thus,
we can feature on the pack or in advertisement that use of wipes twice in a day can
nourish your skin and can keep your skin healthy. This will result into high
increment in the use of the product and ultimately the sale will get a boost.
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What attributes influence you to like Kara?
Interpretations:
Refreshment is the attribute that influenced 60% of the people I surveyed to like
Kara. They feel that after the use of Kara wipes, they have refreshment over their
faces. Among 59 respondents, 17% are the people who like Kara because of
hygienic attribute. It provides a lot of hygienic benefits to its regular user. From
secondary data, I found that a couple years back, people dislike Kara because of its
fragrance but now the situation is completely different and the graph clearly shows
that 11% like Kara because of its fragrance only. Still people trust on branded
product rather non-branded, 8% respondents are fond of Kara because its brand
name. Only 4% have liking feeling because, undoubtedly the product is costlier
than other brands available in the market..
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What attributes lead you to dislike Kara?
Interpretations:
It is very surprising that people dislike Kara because of its non-availability. The
statistic shows that 41% of the respondents have found Kara unavailable once they
have asked for it. Moreover, it resulted into dislike feeling towards the brand. High
price has been a factor because of that 29% of respondents do not like Kara and
prefer other cheap brand over it. They do not want to spend so much on such
cosmetic products and buy cheap wipes like of Bilt, Good Look and Chinese wipe
products. Being manufactured by VSF i.e. natural fiber, 18% of the respondents
still do not like the softness of Kara. High price and low quality is being perceived
by the customers that can create a huge ignorance of the brand. Fragrance is not as
attractive as it should be, that the belief of 10% of the respondents.
Therefore, we should be more focused in placing the product onto all small and
major counters . Wet wipes product is a small product and the company should
follow sale oriented marketing strategy. It should ensure availability of the product
keeping in mind the convenience of customers instead of selling huge numbers
only some select counters.
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What does make Kara different from other brands?
Interpretations:
It is a very pleasant response from the user of the brand that 51% found the product
as a high quality product. Wet wipes are more or less same in all attributes,
therefore, quality is an attribute that can be used to differentiate Kara from other
different brands. Among all respondents, 25% found the price of product is not
very high as quality the company provides and they feel the product is a value for
money. Utility accounts for 14% and attractive packaging stands at 10% in the
above graph. It implies that only 10% of the respondents found the packaging of
the product is attractive than other brand available in the market.
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Which promotional activity will make you purchase KARA :
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Interpretations:
The significance value is more than 0.05, hence H0 accepted. Therefore, the thing
that influence the buyers most out of the following i.e. Luck Draws/ Gift Coupons/
Free Recharges/ Discount Coupons is DISCOUNT COUPONS in case of both age
as well as gender i.e. whether it is male/female.
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Would you like to recommend Kara to your friends and family who are not
using it?
Interpretations:
A good product gets promoted by its existing customers and creates many new
users. Once asked whether respondents would like to recommend Kara to their
friends and family members, 56% responded in yes and 39% may possibly
recommend the brand. Only 5% of respondents would not like to recommend Kara
to any of their friends and family members. This is after use effect of the product, a
good product with good attributes would compel its user to recommend the brand
others too.
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From where you prefer to buy facial wipes?
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 Noida.
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.
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6. FINDINGS AND RECOMMENDATIONS
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 Noida 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 Noida 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.
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
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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:
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RECOMMENDATIONS
Future Consumer Group Ltd. has been working hard to establish leading brand
position of Kara in market. Kara has been able to prove its mettle and highly
accepted by customers. I would like to recommend following activities those
hopefully will help in growth of Kara. These are as follows:
Activities and promotions at hyper markets and malls to attract more and
more customers, mostly during Saturdays and Sundays.
2. Placing Kara in Cash and Carry Stores: Cash and carry stores are a prime
location for wholesalers and institutional buyers. All the variants of Kara can be
placed for bulk purchases giving appropriate discounts. Carrefour store at DLF
Mall of India in Noida and Best Price stores from Bharti-Walmart can be
targeted for our product.
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3. Revising Discount schemes: Most of the companies were not convinced with
Discount slab as they assumed offered rate as Wholesale rates and not corporate
rates for Kara.
The company can tie up with some internet solution consultant and source
the responsibility of promoting Kara on different social Medias such as
maintaining Facebook fan page in solving queries of customers towards the
product.
A blog can be created on internet which can educate people about skincare
and benefits of using Kara wipes. It can also ask for feedback from users and
inform them about new variants and offers etc. The blog can be made
interactive by putting surveys on it. The link of the blog can be bulk mailed
to various people falling within the target market.
6. Blogging about Kara: A blog can be created on internet which can educate
people about skincare and benefits of using Kara wipes. The blog can be made
interactive by putting surveys on it. The link of the blog can be bulk mailed to
various people falling within the target market.
Getting the product into an eye catching and handy package for various
purposes, so that it attracts both consumers and retailers at a glance.
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Kara is a product that can be easily understood & adapted by the youth & the
admission season in Noida University starts from May-June at the time of
admission we can appoint at least with 2 employees with a canopy & with a
few samples outside the colleges. This will definitely help to spread the
awareness about the product amongst the youngsters.
Hotels have been on rapid rise in Noida. Demand of wet wipes is high in
hotels.
Restaurants can provide KARA wet wipe to their customers for refreshment.
There’s a huge demand for the product among the “new generation working
women” as they prefer handy products for convenient and easyaccessibility.
So focusing on the right consumer group is necessary.
LIMITATIONS
Totally a new concept needs to take time to educate people about Kara.
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Due to very less advertising of the product by the company, the awareness
about the product has not spread among both retailers and consumers.
Price factor also raises concern for the retailers due to lesser margin
SUGGESTIONS
Since, Hand Sanitizating wipes (Handy)are also a premium product from Future
Consumer Group Ltd.; few suggestions for handy are given as below:
‘Two housewives are sitting. One is disturbed because her son is not well and often
misses his school. She says that she takes all the precautions to ensure hygiene of
his son but still he becomes sick. The second wife says that keeping an eye on
child is difficult when he is in school. They may not know if he washes his hands
before eating his Lunch. It is best if she keeps a sachet of Handys in his Tiffin box,
so before eating his lunch, he can sanitize his hands.’ This advertisement can target
for Housewives who can use this product for both her Husband and Children.
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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.
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7. CONCLUSION
New product development (NPD) should start with an insight based on consumer
needs. Throughout the NPD process, market research is a valuable tool for the
company to check viability and minimize the risk of the product launches. Being
an international company, it is essential that it develops new products using the
insights of consumers across markets and cultures. There is need to popularize
Kara in new localities of good standard area. As per the marketing research it‘s
been concluded the following observation:
5. Retailers are not well aware about the product and are unable to explain the
details about the product to the consumers, as they themselves do not have
the complete understanding about the product.
6. People are not familiar with the new concept of using wet wipes for almost
all cosmetic needs. As certain study and research says that “Asian markets
especially Indian market does not cater to new products as the people are
more inclined towards tried and tested products”
7. The first thing which acts as a gatekeeper between the product & the
retailers is the margin provided by the company. As there are other local
wipes available in the market with more margins to offer than offered by us
as a result of this retailer hesitate at a first go to keep the product into their
shelf
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8. REFERENCES
BOOKS REFERRED
WEBSITES
http:// www.google.com
http://scribd.com
http://futureconsumergroup ltd.com
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9. ANNEXURE
QUESTIONNAIRE
a) Yes b) no
a) Yes b) no
a) Yes b) no c) maybe
a) Yes b) no
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a) Lucky draws b) Gift coupons c) Free recharges d) Discount coupons
The following are some personal questions about you that will be used for
statistical purposes only. Your information will be held in the strictest
confidence.
Name: ____________________________________________________________
Gender:
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