A Descriptive Study on a shampoo

product (Vivel)by ITC Limited.

Submitted to
Prof. Karpagam

Submitted By : Group -
6
Alok kumar
Dinesh Kumar S
Dixit Somanna NG
Jeetan Kumar Pradhan
Kaushik Ranjan Kashayap
 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 Contents
Table of Contents.............................................................................................................. 3

ITC Profile.......................................................................................................................... 4

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

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

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

Distribution .................................................................................................................... 10

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

Sales History................................................................................................................... 12

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

COMPETITION WITH HINDUSTAN UNILEVER....................................................................13

BCG matrix of ITC ....................................................................................................... 14

Impact of Vivel’s advertisement.....................................................................................15

RESEARCH METHODOLOGY ............................................................................................18

Questionnaire ............................................................................................................. 20

Result or data analysis and findings............................................................................21

Segmentation, Targeting, and Positioning......................................................................28

Segmentation ............................................................................................................. 28

Segmentation strategies ................................................................................................29

Why rural market ........................................................................................................... 29

New Target Audience .....................................................................................................30

Positioning .................................................................................................................... 30

Communication Objectives.............................................................................................31

The objectives of our campaign are as follows...........................................................31

Budget Request ............................................................................................................. 32

Message Strategy:.......................................................................................................... 33

Media Mix and Objectives:..............................................................................................34

Evaluation Program ........................................................................................................36

Bibliography ................................................................................................................... 37
ITC Profile
ITC 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

K ey
C a t e g o r y In g r e d ieCn ot sm p e t io nIT C P r ic e R e m a r k s
S u n s ilk Rs 89- 200 m l
V iv e l R s 4 9 - 1 0 0 Bme nl c h m a r k e d
A c tip r o K
S ham poo (3) C lin ic P lu s R s 6 - 3 2 m Sl u n s ilk
Rs 2 - 8 ml
R s 18-75 gm s
B enc hm arked
V D W S o a Ap c( tip
2 ) r o NL u x I n te r n a ti o n a l
R s 4 9 - 7 5 * L3 ugxmI ns te r n a tio n
R s 1 7 /1 8 - 9 2
V iv e l S o a p Lux B enc hm arked
A c tip r o N gm s
(4+ 1) L U X & S a n to o
S a n to o r Rs 6 - 45 gm s
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
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 Portfolio
Between 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.
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
-

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 Diversification
ITC 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 PLAN
SAMPLE UNIT:- BOTH MALE & FEMALE
SAMPLE SIZE:- 100 PROSPECTS
SAMPLE SEGMENTATION:- ON THE BASIS OF AGE, SHOP NAME ,LOCATION,&
GENDER.
SAMPLING METHOD:- SIMPLE RANDOM
SAMPLING AREA:- BANGALORE ,KARNATAKA
 RESEARCH METHODOLOGY
The “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 method
2. 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 data
1.Through different sites of Personal Care Product industry.
2.Through latest magazine
3 Through Marketing book

RESEARCH DESIGN
A 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 PERCEPTION
AGE:
SHOP
NAME:
LOCATIO
N:
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 ANALYSIS
HUL 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% DISCOUNT
3 CFC TO 5 CFC 7% DISCOUNT
7 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 soap
Lux V/s Vivel
Lux international V/s Vivel di wills
Dove V/s Fiama di wills
Lux & Clinic shampoo V/s vivel shampoo
Clinic 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

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

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 08
2. ITC HAVE A QUALITY PRODUCT 39
3. ITC HAVE VARIOUS RANGE 14
4. ALL OF THEM 34
5. NONE OF THEM 05

Q5-DO YOU INSIST CUSTOMER TO PURCHASE ITC PRODUCT?

S. NO OPTION NO OF RESPONDENT
1. YES 46
2. NO 22
3. 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 07
3. QUATRLY 00
4. YEARLY 00
5. NEVER 25

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

S. NO OPTION NO OF RESPONDENT
1. ON SMALL SCALE 48
2. ON LARGE SCALE 18
 3. SO-SO 34

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

S. NO OPTION NO OF RESPONDENT
1. PRICE OF PRODUCT 21
2. SIZE 46
3. LACK OF AWARENESS 12
4. BRAND LOYALITY 04
5. ANYOTHER 17

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

S. NO OPTION NO OF RESPONDENT
1. QUALITY 02
2. COMPANY NAME 03
3. MARGIN 17
4. MARGIN & COMPANY NAME 35
 5. 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% DISCOUNT
3 CFC TO 5 CFC 7% DISCOUNT
7 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/.../HIVIEWandEQUITYtheShampooCaseStudy.htm

• www.strategyonline.ca/articles/magazine/20030421/shewchuk.html

• www.imc.net.au/resources