Itc Soaps
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Dec 15, 2015
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About This Presentation
No description available for this slideshow.
Slide Content
1
The History of Soap - Soap Inventors & Origins
Figure 1.
The first concrete evidence we have of soap-like substance is dated around 2800 BC., the first
soap makers were Babylonians, Mesopotamian s, Egyptians, as well as the ancient Greeks and
Romans. All of them made soap by mixing fat, oils and salts. Soap wasn't made and use for
bathing and personal hygiene but was rather produced for cleaning cooking utensils or goods or
was used for medicine purposes. 2800 B.C. Inscriptions on Babylonian clay containers
presenting the earliest known written soap recipe were evidence attributing the invention of soap
to Babylonians.
History of Soap:
The soap has history going back as far as six thousand years. The earliest known soap recipe is
credited to the ancient Babylonians around 2800 B.C. Throughout history, soap was medically
used for treatment of skin diseases. Common soap bars were invented in the 19th century.
The First Soap:
The History of Soap - Soap Inventors & Origins
Figure 1.
The first concrete evidence we have of soap-like substance is dated around 2800 BC., the first
soap makers were Babylonians, Mesopotamian s, Egyptians, as well as the ancient Greeks and
Romans. All of them made soap by mixing fat, oils and salts. Soap wasn't made and use for
bathing and personal hygiene but was rather produced for cleaning cooking utensils or goods or
was used for medicine purposes. 2800 B.C. Inscriptions on Babylonian clay containers
presenting the earliest known written soap recipe were evidence attributing the invention of soap
to Babylonians.
History of Soap:
The soap has history going back as far as six thousand years. The earliest known soap recipe is
credited to the ancient Babylonians around 2800 B.C. Throughout history, soap was medically
used for treatment of skin diseases. Common soap bars were invented in the 19th century.
The First Soap:
2
Almost 5000 years ago, it was discovered in ancient Babylonia that mixing animal fats with
wood ash and water created a cleansing substance. The first soaps were used in the textile
industry and for skin diseases.
Who Invented Soap?
The Babylonians were the ones who invented soap at 2800 B.C. They discovered that combining
fats, namely animal fats, with wood ash produced a substance capable of easier cleaning. The
first soap was used to wash wool used in textile industry.
There are many different brands of soaps and cleansers on the market today designed for many
purposes, from fighting acne-causing bacteria to providing moisture. With so many different
types of soap available today, it is hard to imagine how we ever survived with plain old-
fashioned soap that was not designed for a specific skin type or purpose. As with any innovation,
soap has gone through many changes since its inception thousands of years ago to become as
varied and beneficial as it is today.
The soap-making craft started in Europe during the 7th century. Early soaps were made from
vegetable and animal oils, ashes of plants, and some fragrance. The soap-production process was
a guarded secret until 1775, when the secrets of the soap industry were first published. But it
wasn‘t until 1884 that soap was sold in individually branded wrappers. These soaps smelled
quite pleasant due to added fragrance and soon came to be regarded as a necessity rather than a
luxury.
Soaps made prior to the 1940s were much harsher than the soaps we use today, and many caused
skin irritation. The soap industry reacted by developing milder cleansing bars, gentler on
sensitive skin, in a variety of scents and colors. This step transformed soap from a simple health
and cleanliness aid to a cosmetic and skin care staple.
Since the 1950s, skin care has evolved to become a multi-billion dollar global industry, with a
wide selection available in local grocery stores and pharmacies, including the most popular:
Bar soap, the oldest and most common type of soap, tends to last longer and provides many
advantages, primarily ease of use for the entire body in the shower.
Almost 5000 years ago, it was discovered in ancient Babylonia that mixing animal fats with
wood ash and water created a cleansing substance. The first soaps were used in the textile
industry and for skin diseases.
Who Invented Soap?
The Babylonians were the ones who invented soap at 2800 B.C. They discovered that combining
fats, namely animal fats, with wood ash produced a substance capable of easier cleaning. The
first soap was used to wash wool used in textile industry.
There are many different brands of soaps and cleansers on the market today designed for many
purposes, from fighting acne-causing bacteria to providing moisture. With so many different
types of soap available today, it is hard to imagine how we ever survived with plain old-
fashioned soap that was not designed for a specific skin type or purpose. As with any innovation,
soap has gone through many changes since its inception thousands of years ago to become as
varied and beneficial as it is today.
The soap-making craft started in Europe during the 7th century. Early soaps were made from
vegetable and animal oils, ashes of plants, and some fragrance. The soap-production process was
a guarded secret until 1775, when the secrets of the soap industry were first published. But it
wasn‘t until 1884 that soap was sold in individually branded wrappers. These soaps smelled
quite pleasant due to added fragrance and soon came to be regarded as a necessity rather than a
luxury.
Soaps made prior to the 1940s were much harsher than the soaps we use today, and many caused
skin irritation. The soap industry reacted by developing milder cleansing bars, gentler on
sensitive skin, in a variety of scents and colors. This step transformed soap from a simple health
and cleanliness aid to a cosmetic and skin care staple.
Since the 1950s, skin care has evolved to become a multi-billion dollar global industry, with a
wide selection available in local grocery stores and pharmacies, including the most popular:
Bar soap, the oldest and most common type of soap, tends to last longer and provides many
advantages, primarily ease of use for the entire body in the shower.
3
Liquid soap provides unique advantages. Imagine how unsanitary and messy public bathrooms
would be if bar soap were the only option! Some liquid soap is available as light-as-air foam and
may contain additional moisturizers.
75% of liquid soaps sold in US stores are antibacterial. Increased use of antibacterial soaps,
however, contributes to growing antibacterial resistance.
Aromatherapy soaps contain extracts of essential oils, considered to promote a sense of well-
being and relaxation, including chamomile, jasmine.
Exfoliating soap gently removes dead layers of skin and can make your skin feel softer.
Liquid soap provides unique advantages. Imagine how unsanitary and messy public bathrooms
would be if bar soap were the only option! Some liquid soap is available as light-as-air foam and
may contain additional moisturizers.
75% of liquid soaps sold in US stores are antibacterial. Increased use of antibacterial soaps,
however, contributes to growing antibacterial resistance.
Aromatherapy soaps contain extracts of essential oils, considered to promote a sense of well-
being and relaxation, including chamomile, jasmine.
Exfoliating soap gently removes dead layers of skin and can make your skin feel softer.
4
The Indian FMCG Industry
With a population of over one billion, India is one of the largest economies in the world in terms
of purchasing power and increasing consumer spending, next to China. The Indian FMCG
industry, with an estimated market size of ~`2 trillion, accounts for the fourth largest sector in
India. In the last decade, the FMCG sector has grown at an average of 11% a year; in the last five
years, annual growth accelerated at compounded rate of ~17.3%. The sector is characterized by
strong presence of global businesses, intense competition between organized and unorganized
players, well established distribution network and low operational cost. Availability of key raw
materials, cheaper labor costs and presence across the entire value chain gives India a
competitive advantage. During 2012, the country witnessed high inflation, muted salary hikes
and slowing economic growth, which affected the FMCG sector with companies posting
deceleration in volume growth in their quarterly results. However, the trend seen in 2012 is
likely to accelerate in 2013 as growth will come from rural dwellers that are expected to see a
rise in their disposable incomes. The fast-moving consumer goods (FMCG) sector is an
important contributor to India‘s GDP and it is the fourth largest sector of the Indian economy.
Items in this category are meant for frequent consumption and they usually yield a high return.
The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products,
shoe polish, packaged foodstuff, and household accessories and extends to certain electronic
goods. The Indian FMCG sector, which is the fourth biggest sector in the Indian economy, has a
market size of `2 trillion with rural India contributing to one third of the sector‘s revenues. The
Indian FMCG sector is highly fragmented, volume driven and characterized by low margins. The
sector has a strong MNC presence, well established distribution network and high competition
between organized and unorganized players. FMCG products are branded while players incur
heavy advertising, marketing, packaging and distribution costs. The pricing of the final product
also depends on the costs of raw material used. The growth of the sector has been driven by both
the rural and urban segments. India is becoming one of the most attractive markets for foreign
FMCG players due to easy availability of imported raw materials and cheaper labor costs.
Fast Facts: Indian FMCG Industry
The Indian FMCG industry represents nearly 2.5% of the country‘s GDP.
The Indian FMCG Industry
With a population of over one billion, India is one of the largest economies in the world in terms
of purchasing power and increasing consumer spending, next to China. The Indian FMCG
industry, with an estimated market size of ~`2 trillion, accounts for the fourth largest sector in
India. In the last decade, the FMCG sector has grown at an average of 11% a year; in the last five
years, annual growth accelerated at compounded rate of ~17.3%. The sector is characterized by
strong presence of global businesses, intense competition between organized and unorganized
players, well established distribution network and low operational cost. Availability of key raw
materials, cheaper labor costs and presence across the entire value chain gives India a
competitive advantage. During 2012, the country witnessed high inflation, muted salary hikes
and slowing economic growth, which affected the FMCG sector with companies posting
deceleration in volume growth in their quarterly results. However, the trend seen in 2012 is
likely to accelerate in 2013 as growth will come from rural dwellers that are expected to see a
rise in their disposable incomes. The fast-moving consumer goods (FMCG) sector is an
important contributor to India‘s GDP and it is the fourth largest sector of the Indian economy.
Items in this category are meant for frequent consumption and they usually yield a high return.
The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products,
shoe polish, packaged foodstuff, and household accessories and extends to certain electronic
goods. The Indian FMCG sector, which is the fourth biggest sector in the Indian economy, has a
market size of `2 trillion with rural India contributing to one third of the sector‘s revenues. The
Indian FMCG sector is highly fragmented, volume driven and characterized by low margins. The
sector has a strong MNC presence, well established distribution network and high competition
between organized and unorganized players. FMCG products are branded while players incur
heavy advertising, marketing, packaging and distribution costs. The pricing of the final product
also depends on the costs of raw material used. The growth of the sector has been driven by both
the rural and urban segments. India is becoming one of the most attractive markets for foreign
FMCG players due to easy availability of imported raw materials and cheaper labor costs.
Fast Facts: Indian FMCG Industry
The Indian FMCG industry represents nearly 2.5% of the country‘s GDP.
5
The industry has tripled in size in past 10 years and has grown at ~17%CAGR in the last
5 years driven by rising income levels, increasing urbanization, and strong rural demand
and favorable demographic trends.
Food products and personal care together make up two-third of the sector‘s revenues.
Rural India accounts for more than 700 mn consumers or 70% of the Indian population
and accounts for 50% of the total FMCG market.
With changing lifestyle and increasing consumer demand, the Indian FMCG market is
expected to cross $80 bn by 2026 in towns with population of up to 10 lakh.
Opportunities in FMCG Sector:
Untapped rural market
India is one of the world‘s biggest producers of a number of FMCG products but the
country‘s exports account for a very small proportion of the overall output.
Food-processing Industry: With 200 mn people expected to shift to processed and
packaged food, India needs around USD 30 bn of investment in the food processing
industry.
Key Concerns for the sector:
High inflation
Rising cost of inputs
Emergence of private labels
Personal Care Industry:
The personal care products (PCP) market in India is estimated to be worth ~USD 4 bn p.a.
Personal hygiene products (including bath and shower products, deodorants etc.), hair care, skin
care, color cosmetics and fragrances are the key segments of the personal care market. Each of
these segments exhibits its unique trends and growth patterns. For example, the largest segment
of personal hygiene products, largely dominated by bar soaps, has grown at ~5% p.a. over the
last five years. In comparison, the second largest segment, hair care products has seen a much
higher growth of ~9-10% p.a. during the same period.
The industry has tripled in size in past 10 years and has grown at ~17%CAGR in the last
5 years driven by rising income levels, increasing urbanization, and strong rural demand
and favorable demographic trends.
Food products and personal care together make up two-third of the sector‘s revenues.
Rural India accounts for more than 700 mn consumers or 70% of the Indian population
and accounts for 50% of the total FMCG market.
With changing lifestyle and increasing consumer demand, the Indian FMCG market is
expected to cross $80 bn by 2026 in towns with population of up to 10 lakh.
Opportunities in FMCG Sector:
Untapped rural market
India is one of the world‘s biggest producers of a number of FMCG products but the
country‘s exports account for a very small proportion of the overall output.
Food-processing Industry: With 200 mn people expected to shift to processed and
packaged food, India needs around USD 30 bn of investment in the food processing
industry.
Key Concerns for the sector:
High inflation
Rising cost of inputs
Emergence of private labels
Personal Care Industry:
The personal care products (PCP) market in India is estimated to be worth ~USD 4 bn p.a.
Personal hygiene products (including bath and shower products, deodorants etc.), hair care, skin
care, color cosmetics and fragrances are the key segments of the personal care market. Each of
these segments exhibits its unique trends and growth patterns. For example, the largest segment
of personal hygiene products, largely dominated by bar soaps, has grown at ~5% p.a. over the
last five years. In comparison, the second largest segment, hair care products has seen a much
higher growth of ~9-10% p.a. during the same period.
6
The hair care market can be segmented into hair oils, shampoos, hair colorants &
conditioners, and hair gels. The coconut oil market accounts for 72% share in the hair oil
market.
The skin care market is at a primary stage in India. With the change in life styles,
increase in disposable incomes, greater product choice and availability, people are
becoming more alert about personal grooming.
The oral care market can be segmented into toothpaste – 60%; toothpowder – 23%;
toothbrushes – 17%.
Urban segment the biggest contributor to the sector‘s revenue
The urban segment is the biggest contributor to the sector, accounting for two-thirds of total
FMCG sector revenue. The semi-urban and rural segments which are growing at a brisk pace,
currently account for 33.5% of revenues of the FMCG sector. FMCG products account for 53%
of total rural spending. During FY 11, over 80% of FMCG products grew at a faster pace in rural
markets as compared to urban ones with premium skin care brands growing twice as fast in rural
areas than urban brands. Lower priced packs have increased the penetration of the FMCG sector
in rural India. The sectors that are witnessing high growth include salty snacks, refined edible oil,
healthcare products, iodized salt, etc. Hair oils, toothpastes and shampoos have quite high
penetration in both urban and rural markets while the sales of instant noodles, floor cleaners and
hair dyes is increasing in rural markets due to higher awareness. There are a total of 12-13
million retail outlets in India, with kirana stores being the majority of them. Some of the major
FMCG players in India include ITC, HUL, Nestle, Dabur, Godrej Consumer, etc.
Growth in rural market bodes well for the FMCG sector:
The rural market is currently worth approximately USD 9 billion in consumer spending in the
FMCG space annually. Rural India accounts for 700 million consumers or 70% of the country‘s
population, accounting for one -third of the total FMCG market. According to a report by
Nielsen, the Indian rural market is tipped to grow more than ten-fold to USD 100 billion by
2025, presenting a huge opportunity for leading FMCG brands. One of the key drivers of the
rural FMCG market has been the unprecedented growth of smaller packaging options. Lower
priced packs have improved accessibility and increased the pace of penetration of FMCG
The hair care market can be segmented into hair oils, shampoos, hair colorants &
conditioners, and hair gels. The coconut oil market accounts for 72% share in the hair oil
market.
The skin care market is at a primary stage in India. With the change in life styles,
increase in disposable incomes, greater product choice and availability, people are
becoming more alert about personal grooming.
The oral care market can be segmented into toothpaste – 60%; toothpowder – 23%;
toothbrushes – 17%.
Urban segment the biggest contributor to the sector‘s revenue
The urban segment is the biggest contributor to the sector, accounting for two-thirds of total
FMCG sector revenue. The semi-urban and rural segments which are growing at a brisk pace,
currently account for 33.5% of revenues of the FMCG sector. FMCG products account for 53%
of total rural spending. During FY 11, over 80% of FMCG products grew at a faster pace in rural
markets as compared to urban ones with premium skin care brands growing twice as fast in rural
areas than urban brands. Lower priced packs have increased the penetration of the FMCG sector
in rural India. The sectors that are witnessing high growth include salty snacks, refined edible oil,
healthcare products, iodized salt, etc. Hair oils, toothpastes and shampoos have quite high
penetration in both urban and rural markets while the sales of instant noodles, floor cleaners and
hair dyes is increasing in rural markets due to higher awareness. There are a total of 12-13
million retail outlets in India, with kirana stores being the majority of them. Some of the major
FMCG players in India include ITC, HUL, Nestle, Dabur, Godrej Consumer, etc.
Growth in rural market bodes well for the FMCG sector:
The rural market is currently worth approximately USD 9 billion in consumer spending in the
FMCG space annually. Rural India accounts for 700 million consumers or 70% of the country‘s
population, accounting for one -third of the total FMCG market. According to a report by
Nielsen, the Indian rural market is tipped to grow more than ten-fold to USD 100 billion by
2025, presenting a huge opportunity for leading FMCG brands. One of the key drivers of the
rural FMCG market has been the unprecedented growth of smaller packaging options. Lower
priced packs have improved accessibility and increased the pace of penetration of FMCG
7
products in rural areas. According to Nielsen, FMCG growth in the rural sector for the quarter
ended March 2012, stood at 17.2%, surpassing the urban segment at 16.5%. The purchasing
power in rural areas has outpaced that of urban areas as non-farm incomes improve, bolstering
consumer spending on FMCG products. Rural consumption growth has outpaced urban
consumption with the percentage increase in monthly per capita expenditure in rural markets
surpassing its urban counterparts during the period 2009-2012. Significant progress in literacy
levels, higher government spending on welfare programs, growing support to agricultural sector,
which is the major occupation of rural India and better infrastructure and DTH and mobile
connections have also acted as a catalyst in bolstering rural demand for FMCG products. Several
measures taken by the government to support the rural population including higher minimum
support prices (MSPs), loan waivers, and disbursements through the National Rural Employment
Guarantee Act (NREGA) programme have bolstered the purchasing power of this segment.
*****
products in rural areas. According to Nielsen, FMCG growth in the rural sector for the quarter
ended March 2012, stood at 17.2%, surpassing the urban segment at 16.5%. The purchasing
power in rural areas has outpaced that of urban areas as non-farm incomes improve, bolstering
consumer spending on FMCG products. Rural consumption growth has outpaced urban
consumption with the percentage increase in monthly per capita expenditure in rural markets
surpassing its urban counterparts during the period 2009-2012. Significant progress in literacy
levels, higher government spending on welfare programs, growing support to agricultural sector,
which is the major occupation of rural India and better infrastructure and DTH and mobile
connections have also acted as a catalyst in bolstering rural demand for FMCG products. Several
measures taken by the government to support the rural population including higher minimum
support prices (MSPs), loan waivers, and disbursements through the National Rural Employment
Guarantee Act (NREGA) programme have bolstered the purchasing power of this segment.
*****
8
ITC: History and Evolution
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianised, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising
Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery
Products, Incense Sticks and Safety Matches, Hotels, Paper boards & Specialty Papers,
Packaging, Agri-Business and Information Technology - the full stops in the Company's name
were removed effective September 18, 2001. The Company now stands rechristened 'ITC
Limited,‘ where ‗ITC‘ is today no longer an acronym or an initialized form.
A Modest Beginning
The Company's 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.
1925: Packaging and Printing: Backward Integration
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging & Printing
Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It
is today India's most sophisticated packaging house.
1975: Entry into the Hospitality Sector - A 'Welcom' Move
The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
ITC: History and Evolution
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianised, the name of the Company was
changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising
Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery
Products, Incense Sticks and Safety Matches, Hotels, Paper boards & Specialty Papers,
Packaging, Agri-Business and Information Technology - the full stops in the Company's name
were removed effective September 18, 2001. The Company now stands rechristened 'ITC
Limited,‘ where ‗ITC‘ is today no longer an acronym or an initialized form.
A Modest Beginning
The Company's 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.
1925: Packaging and Printing: Backward Integration
Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging & Printing
Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It
is today India's most sophisticated packaging house.
1975: Entry into the Hospitality Sector - A 'Welcom' Move
The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
9
business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcom-group
Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC's entry into the hotels
business was rooted in the concept of creating value for the nation. ITC chose the Hotels
business for its potential to earn high levels of foreign exchange, create tourism infrastructure
and generate large scale direct and indirect employment. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 100 owned and managed properties spread
across India under four brands namely, ITC Hotels - Luxury Collection, Welcom Hotels, Fortune
Hotels and Welcom Heritage.
ITC Hotels recently took its first step toward international expansion with an upcoming super
premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied up with
RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC Hotels' 5-star
'Welcom Hotel' brand and the mid-market to upscale 'Fortune' brand.
1979: Paperboards & Specialty Papers - Development of a Backward Area
In 1979, ITC entered the Paperboard's business by promoting ITC Bhadrachalam Paperboards
Limited. Bhadrachalam Paperboard's amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboard s Division. In November
2002, this division merged with the Company's Tribeni Tissues Division to form the
Paperboard's & Specialty Papers Division. ITC's paperboard's' technology, productivity, quality
and manufacturing processes are comparable to the best in the world. It has also made an
immense contribution to the development of Sarapaka, an economically backward area in the
state of Andhra Pradesh. It is directly involved in education, environmental protection and
community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT
Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit
allows ITC to improve customer service with reduced lead time and a wider product range.
1985: Nepal Subsidiary - First Steps beyond National Borders
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed
business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcom-group
Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC's entry into the hotels
business was rooted in the concept of creating value for the nation. ITC chose the Hotels
business for its potential to earn high levels of foreign exchange, create tourism infrastructure
and generate large scale direct and indirect employment. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 100 owned and managed properties spread
across India under four brands namely, ITC Hotels - Luxury Collection, Welcom Hotels, Fortune
Hotels and Welcom Heritage.
ITC Hotels recently took its first step toward international expansion with an upcoming super
premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied up with
RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC Hotels' 5-star
'Welcom Hotel' brand and the mid-market to upscale 'Fortune' brand.
1979: Paperboards & Specialty Papers - Development of a Backward Area
In 1979, ITC entered the Paperboard's business by promoting ITC Bhadrachalam Paperboards
Limited. Bhadrachalam Paperboard's amalgamated with the Company effective March 13, 2002
and became a Division of the Company, Bhadrachalam Paperboard s Division. In November
2002, this division merged with the Company's Tribeni Tissues Division to form the
Paperboard's & Specialty Papers Division. ITC's paperboard's' technology, productivity, quality
and manufacturing processes are comparable to the best in the world. It has also made an
immense contribution to the development of Sarapaka, an economically backward area in the
state of Andhra Pradesh. It is directly involved in education, environmental protection and
community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT
Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit
allows ITC to improve customer service with reduced lead time and a wider product range.
1985: Nepal Subsidiary - First Steps beyond National Borders
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed
10
to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified into
manufacturing and exports of garments.
1990: Paperboards & Specialty Papers - Consolidation and Expansion
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni
Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with
the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in
November 2002.
1990: Agri Business - Strengthening Farmer Linkages
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for
export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique
and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya
Pradesh. Now it extends to 10 states covering over 4 million farmers. Also, through the 'Choupal
Pradarshan Khet' initiative, the agri services vertical has been focusing on improving
productivity of crops while deepening the relationship with the farming community.
2002: Education & Stationery Products - Offering the Greenest products
ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To augment
its offering and to reach a wider student population, the Classmate range of notebooks was
launched in 2003. Classmate over the years has grown to become India's largest notebook
brand and has also increased its portfolio to occupy a greater share of the school bag. Years
2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes, Pens and
Pencils under the 'Classmate' brand. In 2008, ITC positioned the business as the Education and
Stationery Products Business and launched India's first environment friendly premium
business paper under the 'Paperkraft' Brand. 'Paperkraft' offers a diverse portfolio in the premium
executive stationery and office consumables segment. In 2010, Colour Crew was launched as a
new brand of art stationery.
2000: Lifestyle Retailing - Premium Offerings
to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified into
manufacturing and exports of garments.
1990: Paperboards & Specialty Papers - Consolidation and Expansion
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni
Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with
the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in
November 2002.
1990: Agri Business - Strengthening Farmer Linkages
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for
export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique
and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya
Pradesh. Now it extends to 10 states covering over 4 million farmers. Also, through the 'Choupal
Pradarshan Khet' initiative, the agri services vertical has been focusing on improving
productivity of crops while deepening the relationship with the farming community.
2002: Education & Stationery Products - Offering the Greenest products
ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To augment
its offering and to reach a wider student population, the Classmate range of notebooks was
launched in 2003. Classmate over the years has grown to become India's largest notebook
brand and has also increased its portfolio to occupy a greater share of the school bag. Years
2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes, Pens and
Pencils under the 'Classmate' brand. In 2008, ITC positioned the business as the Education and
Stationery Products Business and launched India's first environment friendly premium
business paper under the 'Paperkraft' Brand. 'Paperkraft' offers a diverse portfolio in the premium
executive stationery and office consumables segment. In 2010, Colour Crew was launched as a
new brand of art stationery.
2000: Lifestyle Retailing - Premium Offerings
11
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier
fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the
occasion, ITC launched a special 'Wills Signature', taking the event forward to consumers.
2000: Information Technology - Business Friendly Solutions
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Info Tech India Limited, to more aggressively pursue emerging opportunities in
this area. Today ITC Info Tech is one of India's fastest growing global IT and IT-enabled
services companies and has established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across key focus verticals -
Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail,
Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences
and Transportation & Logistics.
2001: Branded Packaged Foods - Delighting Millions of Households ITC's foray into the Foods
business is an outstanding example of successfully blending multiple internal competencies to
create a new driver of business growth. It began in August 2001 with the introduction
of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery
and staples segments with the launch of the brands mint-o and Candy-man confectionery
and Aashirvaad Atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company
entered the biscuits segment. ITC entered the fast growing branded snacks category with Bingo!
In 2010, ITC launched Sunfeast Yippee! To enter the Indian instant noodles market. In just over
a decade, the Foods business has grown to a significant size under seven distinctive brands, with
an enviable distribution reach, a rapidly growing market share and a solid market standing.
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier
fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the
occasion, ITC launched a special 'Wills Signature', taking the event forward to consumers.
2000: Information Technology - Business Friendly Solutions
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Info Tech India Limited, to more aggressively pursue emerging opportunities in
this area. Today ITC Info Tech is one of India's fastest growing global IT and IT-enabled
services companies and has established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across key focus verticals -
Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail,
Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences
and Transportation & Logistics.
2001: Branded Packaged Foods - Delighting Millions of Households ITC's foray into the Foods
business is an outstanding example of successfully blending multiple internal competencies to
create a new driver of business growth. It began in August 2001 with the introduction
of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery
and staples segments with the launch of the brands mint-o and Candy-man confectionery
and Aashirvaad Atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company
entered the biscuits segment. ITC entered the fast growing branded snacks category with Bingo!
In 2010, ITC launched Sunfeast Yippee! To enter the Indian instant noodles market. In just over
a decade, the Foods business has grown to a significant size under seven distinctive brands, with
an enviable distribution reach, a rapidly growing market share and a solid market standing.
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
12
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep and Aim .ITC's foray into the marketing
of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the
cottage sector. Mangaldeep is a highly established national brand and is available across a range
of fragrances like Rose, Jasmine, Bouquet, Sandalwood and 'Fragrance of Temple'.
2005: Personal Care Products - Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005. In eight years, the Personal Care portfolio has
grown under ‗Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which have
received encouraging consumer response and have been progressively extended nationally. In
May 2013, the business expanded its product portfolio with the launch of Engage - one of India's
first ranges of 'couple deodorants'
Figure 2
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep and Aim .ITC's foray into the marketing
of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the
cottage sector. Mangaldeep is a highly established national brand and is available across a range
of fragrances like Rose, Jasmine, Bouquet, Sandalwood and 'Fragrance of Temple'.
2005: Personal Care Products - Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005. In eight years, the Personal Care portfolio has
grown under ‗Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which have
received encouraging consumer response and have been progressively extended nationally. In
May 2013, the business expanded its product portfolio with the launch of Engage - one of India's
first ranges of 'couple deodorants'
Figure 2
13
THE ITC VISION
Sustain ITC's position as one of India's most valuable corporations through world
class performance, creating growing value for the Indian economy and the
Company's stakeholders
THE ITC MISSION
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value
Core Values
ITC's Core Values are aimed at developing a customer-focused, high-performance organization
which creates value for all its stakeholders:
Trusteeship:
As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualize stakeholder value and interest on a long term sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
Respect for People
We are result oriented, setting high performance standards for ourselves as individuals and
teams. We will simultaneously respect and value people and uphold humanness and human
dignity.
We acknowledge that every individual brings different perspectives and capabilities to the team
and that a strong team is founded on a variety of perspectives.
THE ITC VISION
Sustain ITC's position as one of India's most valuable corporations through world
class performance, creating growing value for the Indian economy and the
Company's stakeholders
THE ITC MISSION
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value
Core Values
ITC's Core Values are aimed at developing a customer-focused, high-performance organization
which creates value for all its stakeholders:
Trusteeship:
As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualize stakeholder value and interest on a long term sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
Respect for People
We are result oriented, setting high performance standards for ourselves as individuals and
teams. We will simultaneously respect and value people and uphold humanness and human
dignity.
We acknowledge that every individual brings different perspectives and capabilities to the team
and that a strong team is founded on a variety of perspectives.
14
We want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and management
practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our
goals, we will make no compromise in complying with applicable laws and regulations at all
levels.
Corporate Strategies
ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organizational culture rooted in its core values of respect
for people and belief in empowerment. Its philosophy of all-round value creation is backed by
strong corporate governance policies and systems.
ITC‘s corporate strategies are:
Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
We want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.
Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and management
practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our
goals, we will make no compromise in complying with applicable laws and regulations at all
levels.
Corporate Strategies
ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organizational culture rooted in its core values of respect
for people and belief in empowerment. Its philosophy of all-round value creation is backed by
strong corporate governance policies and systems.
ITC‘s corporate strategies are:
Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
15
Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities‘ residing in ITC‘s various businesses.
Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities‘ residing in ITC‘s various businesses.
Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
16
ITC PERSONAL CARE: SOAPS
In line with ITC's aspiration to be India's premier FMCG Company, recognized for its world-
class quality and enduring consumer trust, ITC forayed into the Personal Care business in July
2005. In the short period since its entry, ITC has already launched an array of brands, each of
which offers a unique and superior value proposition to discerning consumers. Anchored on
extensive consumer research and product development, ITC's personal care portfolio brings
world-class products with clearly differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', '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 recognized safe ingredients, subjected to the highest standards of
safety and performance.
Essenza Di Wills
The first of the four brands to be launched in mid-05, Essenza Di Wills, an exclusive range of
fragrances, body and bath care products, is targeted at the high and snazzy consumers. Essenza is
a gender-neutral brand, and hence offers a range of products for the well-heeled men and
women. Inizio, the signature range of the Essenza brand, has two sub-brands— Inizio Femme
and Inizio Homme—and offers an exclusive range for women and men. The fragrances offered
in this range were designed by leading French fragrance houses. The brands across the Essenza
line share the same olfactory signature creating a harmonious experience, and hence the brand
recall for consumers. Since, men constitute a high percentage of luxury consumers, a new line
Aqua Homme has been created. It offers a range of grooming products like after-shave lotion,
ITC PERSONAL CARE: SOAPS
In line with ITC's aspiration to be India's premier FMCG Company, recognized for its world-
class quality and enduring consumer trust, ITC forayed into the Personal Care business in July
2005. In the short period since its entry, ITC has already launched an array of brands, each of
which offers a unique and superior value proposition to discerning consumers. Anchored on
extensive consumer research and product development, ITC's personal care portfolio brings
world-class products with clearly differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', '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 recognized safe ingredients, subjected to the highest standards of
safety and performance.
Essenza Di Wills
The first of the four brands to be launched in mid-05, Essenza Di Wills, an exclusive range of
fragrances, body and bath care products, is targeted at the high and snazzy consumers. Essenza is
a gender-neutral brand, and hence offers a range of products for the well-heeled men and
women. Inizio, the signature range of the Essenza brand, has two sub-brands— Inizio Femme
and Inizio Homme—and offers an exclusive range for women and men. The fragrances offered
in this range were designed by leading French fragrance houses. The brands across the Essenza
line share the same olfactory signature creating a harmonious experience, and hence the brand
recall for consumers. Since, men constitute a high percentage of luxury consumers, a new line
Aqua Homme has been created. It offers a range of grooming products like after-shave lotion,
17
deos, hair and body shampoos and soaps for discerning men. Mikkel, an evening fragrance, is the
latest addition to the Essenza portfolio, which again is targeted at the high-end men. The strategy
here is around sophistication and enigma rather than brand recall, hence we see sub-brands with
western titles like Inizio, Aqua and Mikkel than simple brand extensions, as the target consumers
in this segment are drawn by exclusivity and enigma and not by popular brand names. An entry
level Essenza range of fragrance comes for a cool Rs 2,000! The Essenza caters to the market
segment where established names like Lancôme, Olay, Body Shop, Oriflame and Avon are
present. It's a niche segment, which is growing fast, and where there's no competition from
dominant players like HUL and P&G. ITC feels that with its packaging, sales and distribution
strength, it has a fair chance of getting a head start in this high-margin space the over present
players. The premium brand is also retailed across more than 50 Wills Lifestyle stores, its
premium branded apparel retail offering, across 30 cities, and provides (as these stores offer) an
ideal environment for sampling by elite consumers who regularly visit these stores. The Essenza
range is also available across the ITC Welcome group hotels. The communication strategy is
well defined too. There are no brand ambassadors for this segment, it's the product which is the
hero; a brand imagery of allure and enigmatic grandeur has been created around the Essenza line.
Even the brand website communicates in English and French, the language of the uber-
sophisticated.
deos, hair and body shampoos and soaps for discerning men. Mikkel, an evening fragrance, is the
latest addition to the Essenza portfolio, which again is targeted at the high-end men. The strategy
here is around sophistication and enigma rather than brand recall, hence we see sub-brands with
western titles like Inizio, Aqua and Mikkel than simple brand extensions, as the target consumers
in this segment are drawn by exclusivity and enigma and not by popular brand names. An entry
level Essenza range of fragrance comes for a cool Rs 2,000! The Essenza caters to the market
segment where established names like Lancôme, Olay, Body Shop, Oriflame and Avon are
present. It's a niche segment, which is growing fast, and where there's no competition from
dominant players like HUL and P&G. ITC feels that with its packaging, sales and distribution
strength, it has a fair chance of getting a head start in this high-margin space the over present
players. The premium brand is also retailed across more than 50 Wills Lifestyle stores, its
premium branded apparel retail offering, across 30 cities, and provides (as these stores offer) an
ideal environment for sampling by elite consumers who regularly visit these stores. The Essenza
range is also available across the ITC Welcome group hotels. The communication strategy is
well defined too. There are no brand ambassadors for this segment, it's the product which is the
hero; a brand imagery of allure and enigmatic grandeur has been created around the Essenza line.
Even the brand website communicates in English and French, the language of the uber-
sophisticated.
18
Fiama Di Wills
Fiama Di Wills is an Indian personal care brand that offers shampoos, conditioner, bathing bars
and shower gels. It is owned by ITC Limited, an Indian conglomerate with a turnover of USD 6
billion. Launched on September 15, 2007, the brand was the second to roll out of ITC‘s personal
care stable. Its USP is the blend of "nature and science" across its portfolio of products, resulting
from four years of intensive research at the ITC Research and Development Centre in Bangalore.
Ever since September 2007, Fiama Di Wills has been providing gentle and effective care while
pampering and keeping you refreshed throughout the day. The Fiama Di Wills product portfolio
has been developed by scientists at the ITC R&D Centre, leveraging the expertise of
International product formulation specialists. Fiama Di Will‘s products are for modern, aware
customers who are confident of themselves and seek indulgences that make them feel alive,
beautiful and young!!A Sensuous Bathing Experience meets Irresistibly Soft Skin with Fiama Di
Wills Shower Gels and Gel Bathing Bars. They are enriched with Skin Conditioner with
Moisture Lock giving you soft, moisturized and youthful skin round the clock. Fiama Di Wills
Gel Bathing Bar is handcrafted using ITC‘s Innovative Liquid Crystal Freezing Technology,
which freezes gel into a bar. Made up of exotic natural ingredients like Peach, Avocado,
Seaweed and Lemon Grass, the Gel Bathing Bar is mild and gives you a long lasting fragrance
which sees you through the day.
If Essenza is about luxury, Fiama is about premiumness. This second product line, launched in
September 2007, caters to the premium segment with the mid and upper middle-class as its prime
TG, and it is pitched against HUL's Dove and Vaseline, Nivea, L'Oreal and Garnier shampoos
and conditioners. Its fragrance, aesthetics and packaging are developed in consultation with
European experts. Fiama is exclusively targeted at the young, working and modern women who
want indulgence. Fiama offerings include shampoos, conditioners, shower gels and soaps. The
USP of this range is a combination of science and natural extracts for shampoos. Developed in
collaboration with the US-based Cosmetech Laboratories, these shampoos come in five variants,
while the shower gel comes in three. It has a soap sub-brand called ‗Skin Sense‘ which is priced
Fiama Di Wills
Fiama Di Wills is an Indian personal care brand that offers shampoos, conditioner, bathing bars
and shower gels. It is owned by ITC Limited, an Indian conglomerate with a turnover of USD 6
billion. Launched on September 15, 2007, the brand was the second to roll out of ITC‘s personal
care stable. Its USP is the blend of "nature and science" across its portfolio of products, resulting
from four years of intensive research at the ITC Research and Development Centre in Bangalore.
Ever since September 2007, Fiama Di Wills has been providing gentle and effective care while
pampering and keeping you refreshed throughout the day. The Fiama Di Wills product portfolio
has been developed by scientists at the ITC R&D Centre, leveraging the expertise of
International product formulation specialists. Fiama Di Will‘s products are for modern, aware
customers who are confident of themselves and seek indulgences that make them feel alive,
beautiful and young!!A Sensuous Bathing Experience meets Irresistibly Soft Skin with Fiama Di
Wills Shower Gels and Gel Bathing Bars. They are enriched with Skin Conditioner with
Moisture Lock giving you soft, moisturized and youthful skin round the clock. Fiama Di Wills
Gel Bathing Bar is handcrafted using ITC‘s Innovative Liquid Crystal Freezing Technology,
which freezes gel into a bar. Made up of exotic natural ingredients like Peach, Avocado,
Seaweed and Lemon Grass, the Gel Bathing Bar is mild and gives you a long lasting fragrance
which sees you through the day.
If Essenza is about luxury, Fiama is about premiumness. This second product line, launched in
September 2007, caters to the premium segment with the mid and upper middle-class as its prime
TG, and it is pitched against HUL's Dove and Vaseline, Nivea, L'Oreal and Garnier shampoos
and conditioners. Its fragrance, aesthetics and packaging are developed in consultation with
European experts. Fiama is exclusively targeted at the young, working and modern women who
want indulgence. Fiama offerings include shampoos, conditioners, shower gels and soaps. The
USP of this range is a combination of science and natural extracts for shampoos. Developed in
collaboration with the US-based Cosmetech Laboratories, these shampoos come in five variants,
while the shower gel comes in three. It has a soap sub-brand called ‗Skin Sense‘ which is priced
19
on par with Dove at Rs 40. The Bollywood sensation Deepika Padukone has been strategically
used as the brand ambassador for the Fiama range, thanks to her sophisticated, youthful look and
urbane appeal. Using group synergies, ITC retails the Fiama range across Wills Lifestyle stores
and modern retailers like Spencer's Hyper, Big Bazaar and Reliance Fresh among others, besides
group hotels. The brand imagery has been created using different shades of natural colors like
green, yellow, blue and orange, conveying gentle and effective care through its tagline 'Beautiful
you today, tomorrow'. A special fan club 'Friends of Fiama' has been created to increase two-way
communication with consumers, where they get a chance to interact with the brand face Deepika.
To increase brand salience and position Fiama as a lifestyle product, ITC positions it as one of
the partners of the Wills Fashion Week, held twice annually, besides an exclusive luxury lounge
called Salon Di Wills is created at the Wills fashion weeks to experience the effectiveness of
Fiama Di Will‘s products. If Essenza is about luxury, Fiama is about premiumness. It has a soap
sub-brand called ‗Skin Sense‘ which is priced on par with Dove at Rs 40.
Figure 3:
on par with Dove at Rs 40. The Bollywood sensation Deepika Padukone has been strategically
used as the brand ambassador for the Fiama range, thanks to her sophisticated, youthful look and
urbane appeal. Using group synergies, ITC retails the Fiama range across Wills Lifestyle stores
and modern retailers like Spencer's Hyper, Big Bazaar and Reliance Fresh among others, besides
group hotels. The brand imagery has been created using different shades of natural colors like
green, yellow, blue and orange, conveying gentle and effective care through its tagline 'Beautiful
you today, tomorrow'. A special fan club 'Friends of Fiama' has been created to increase two-way
communication with consumers, where they get a chance to interact with the brand face Deepika.
To increase brand salience and position Fiama as a lifestyle product, ITC positions it as one of
the partners of the Wills Fashion Week, held twice annually, besides an exclusive luxury lounge
called Salon Di Wills is created at the Wills fashion weeks to experience the effectiveness of
Fiama Di Will‘s products. If Essenza is about luxury, Fiama is about premiumness. It has a soap
sub-brand called ‗Skin Sense‘ which is priced on par with Dove at Rs 40.
Figure 3:
20
VIVEL
Between February and June 2008, ITC expanded its personal care portfolio with the launch of
Vivel range of soaps and shampoos to cater to the specific needs of a wide range of consumers.
This high quality range of soaps and shampoos are 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.
Easily, the most important of all the brands Vivel competes in the most competitive, the popular
market segment, dominated by well -entrenched players like HUL and P&G, besides smaller
players like Marico, CavinCare, Godrej, Dabur etc. Launched in the first half of 2008, Vivel Di
Wills offers two soap variants. Vivel has both soaps and shampoos, catering to a wide range of
consumers in the mid and upper-middle class segments. The USP of Vivel range is nourishment,
protection and hydrating ingredients for complete skincare. Vivel, unlike Fiama, is a gender-
neutral brand. Figure 4.
VIVEL
Between February and June 2008, ITC expanded its personal care portfolio with the launch of
Vivel range of soaps and shampoos to cater to the specific needs of a wide range of consumers.
This high quality range of soaps and shampoos are 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.
Easily, the most important of all the brands Vivel competes in the most competitive, the popular
market segment, dominated by well -entrenched players like HUL and P&G, besides smaller
players like Marico, CavinCare, Godrej, Dabur etc. Launched in the first half of 2008, Vivel Di
Wills offers two soap variants. Vivel has both soaps and shampoos, catering to a wide range of
consumers in the mid and upper-middle class segments. The USP of Vivel range is nourishment,
protection and hydrating ingredients for complete skincare. Vivel, unlike Fiama, is a gender-
neutral brand. Figure 4.
21
Superia
The Superia ranges of soaps and shampoos have been launched to cater to the large popular
market in the personal care category. The products under the Superia 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. Superia Soaps enriched with natural
ingredients give radiant glowing skin. Superia Soaps are available in below variants:
Figure 5
Saffron
Butterscotch
Lemon & Mint Oil
Sandal & Almond Oil
Neem & Coconut Oil
Rose & Walnut Oil
Superia
The Superia ranges of soaps and shampoos have been launched to cater to the large popular
market in the personal care category. The products under the Superia 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. Superia Soaps enriched with natural
ingredients give radiant glowing skin. Superia Soaps are available in below variants:
Figure 5
Saffron
Butterscotch
Lemon & Mint Oil
Sandal & Almond Oil
Neem & Coconut Oil
Rose & Walnut Oil
22
STP, SWOT ANALYSIS - USP & COMPETITORS
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,
Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have
some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered
to be external factors over which you have essentially no control. SWOT Analysis is the most
renowned tool for audit and analysis of the overall strategic position of the business and its
environment. Its key purpose is to identify the strategies that will create a firm specific business
model that will best align an organization‘s resources and capabilities to the requirements of the
environment in which the firm operates.
In other words, it is the foundation for evaluating the internal potential and limitations and the
probable/likely opportunities and threats from the external environment. It views all positive and
negative factors inside and outside the firm that affect the success. A consistent study of the
environment in which the firm operates helps in forecasting/predicting the changing trends and
also helps in including them in the decision-making process of the organization.
FIAMA DI WILLS
Figure 6:
Parent Company
ITC
Category
Personal Care brands- Hair care &
Skincare
Sector FMCG
Tagline/ Slogan Beautiful you, today, tomorrow
STP, SWOT ANALYSIS - USP & COMPETITORS
SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. By definition,
Strengths (S) and Weaknesses (W) are considered to be internal factors over which you have
some measure of control. Also, by definition, Opportunities (O) and Threats (T) are considered
to be external factors over which you have essentially no control. SWOT Analysis is the most
renowned tool for audit and analysis of the overall strategic position of the business and its
environment. Its key purpose is to identify the strategies that will create a firm specific business
model that will best align an organization‘s resources and capabilities to the requirements of the
environment in which the firm operates.
In other words, it is the foundation for evaluating the internal potential and limitations and the
probable/likely opportunities and threats from the external environment. It views all positive and
negative factors inside and outside the firm that affect the success. A consistent study of the
environment in which the firm operates helps in forecasting/predicting the changing trends and
also helps in including them in the decision-making process of the organization.
FIAMA DI WILLS
Figure 6:
Parent Company
ITC
Category
Personal Care brands- Hair care &
Skincare
Sector FMCG
Tagline/ Slogan Beautiful you, today, tomorrow
23
USP The Fiama Di Wills range combines the
goodness of nature and science,
providing gentle and effective care.
Segmentation, Targeting & Positioning:
Segment
Middle class men and women
Target Group
Young, modern, aware customers who
are confident of themselves and seek
indulgences that make them feel alive
and beautiful.
Positioning
Soap which is a blend of Nature and
Science and also a Gentle Care shampoo
that can be used everyday
Competitors
Competition
Dove soaps
USP The Fiama Di Wills range combines the
goodness of nature and science,
providing gentle and effective care.
Segmentation, Targeting & Positioning:
Segment
Middle class men and women
Target Group
Young, modern, aware customers who
are confident of themselves and seek
indulgences that make them feel alive
and beautiful.
Positioning
Soap which is a blend of Nature and
Science and also a Gentle Care shampoo
that can be used everyday
Competitors
Competition
Dove soaps
24
SWOT ANALYSIS
Strengths
1. Movie stars and celebrities as brand
ambassadors, so the product is
identifiable and popular among
girls/women.
2. The brand boasts of the R&D from
ITC Research center in collaboration
with leading US based personal care
research labs
3. Effective use of both pushes and pull
strategy.
4. Good brand visibility and
distribution;
Weakness
1. Product not popular among men. Ads
made the product look like Unisex but it
was targeted at both the genders.
2. Confused state of existence in the
consumer‘s mind.
3. With the launch of multiple products
targeting various segments, the brand
needs to have a common positioning
platform which connects all the variants
together.
Opportunities
1. Increasing consumer base with time.
2. Fiama is a young brand, in its
growing stage.
Threats
1. Cut throat competition from HUL.
2. People have a tendency to shift to
other products, since so many options
are available.
SWOT ANALYSIS
Strengths
1. Movie stars and celebrities as brand
ambassadors, so the product is
identifiable and popular among
girls/women.
2. The brand boasts of the R&D from
ITC Research center in collaboration
with leading US based personal care
research labs
3. Effective use of both pushes and pull
strategy.
4. Good brand visibility and
distribution;
Weakness
1. Product not popular among men. Ads
made the product look like Unisex but it
was targeted at both the genders.
2. Confused state of existence in the
consumer‘s mind.
3. With the launch of multiple products
targeting various segments, the brand
needs to have a common positioning
platform which connects all the variants
together.
Opportunities
1. Increasing consumer base with time.
2. Fiama is a young brand, in its
growing stage.
Threats
1. Cut throat competition from HUL.
2. People have a tendency to shift to
other products, since so many options
are available.
25
Vivel
Figure 7:
Parent Company
ITC
Category
Personal Care brands- Soap
Sector
FMCG
Tagline/ Slogan
Khoobsoorati bas main, duniya muthi
main; Taazgi jo kareeb laaye
USP Beauty with confidence
Segmentation, Targeting and Positioning
Segment
Middle class men and women (mainly
women)
Target Group
Vivel is targeting young consumers who
are ready to flirt with new brands
Positioning
Mass positioning, priced well below
Fiama Di wills
Vivel
Figure 7:
Parent Company
ITC
Category
Personal Care brands- Soap
Sector
FMCG
Tagline/ Slogan
Khoobsoorati bas main, duniya muthi
main; Taazgi jo kareeb laaye
USP Beauty with confidence
Segmentation, Targeting and Positioning
Segment
Middle class men and women (mainly
women)
Target Group
Vivel is targeting young consumers who
are ready to flirt with new brands
Positioning
Mass positioning, priced well below
Fiama Di wills
26
Competition 1.Lux
2.Lifebuoy
SWOT Analysis
Strengths
1. Various variants of product are
available, around 9 of them
2. Vivel Di Wills comes in an attractive
carton package with some elegant color
scheme.
3. Consumers will be impressed by the
ingredients like Olive Oil, Active Clay,
Shea butter which gives this brand a
unique healthy natural perception.
4. Good advertising and distribution of
products
5. Celebrity brand ambassadors add
value to the brand
Weakness
1. Confused state of existence in the
consumer‘s mind just like Fiama Di
Wills.
2. Vivel is mainly positioned as
beauty soap targeted towards women,
hence it lacks unisex appeal
3. Highly competitive segment in terms
of other brands and price
Opportunities
1. Target sector set to increase with time
as it is a young brand, in its growing
stage.
2. One of the fastest growing brands in
its category.
3. Vivel‘s focus on looking good with
its campaigns and Fiama‘s celebrity
based strategy brings in a clear
differentiation
Competition 1.Lux
2.Lifebuoy
SWOT Analysis
Strengths
1. Various variants of product are
available, around 9 of them
2. Vivel Di Wills comes in an attractive
carton package with some elegant color
scheme.
3. Consumers will be impressed by the
ingredients like Olive Oil, Active Clay,
Shea butter which gives this brand a
unique healthy natural perception.
4. Good advertising and distribution of
products
5. Celebrity brand ambassadors add
value to the brand
Weakness
1. Confused state of existence in the
consumer‘s mind just like Fiama Di
Wills.
2. Vivel is mainly positioned as
beauty soap targeted towards women,
hence it lacks unisex appeal
3. Highly competitive segment in terms
of other brands and price
Opportunities
1. Target sector set to increase with time
as it is a young brand, in its growing
stage.
2. One of the fastest growing brands in
its category.
3. Vivel‘s focus on looking good with
its campaigns and Fiama‘s celebrity
based strategy brings in a clear
differentiation
27
Threats
1. Lots of competition
2. People have a tendency to shift to
other products, since so many options
are available.
Superia
Figure 8:
Parent Company
ITC
Category
Personal care brands-Soaps
Sector
FMCG
Tagline
Aise chamak ki Duniya bole pehle aap
USP Natural Ingredients
Segment
Personal care-Soap & Skin Care
Target Group
Lower Middle Class Customers
Positioning Enriched with natural ingredients give
radiant glowing skin
Threats
1. Lots of competition
2. People have a tendency to shift to
other products, since so many options
are available.
Superia
Figure 8:
Parent Company
ITC
Category
Personal care brands-Soaps
Sector
FMCG
Tagline
Aise chamak ki Duniya bole pehle aap
USP Natural Ingredients
Segment
Personal care-Soap & Skin Care
Target Group
Lower Middle Class Customers
Positioning Enriched with natural ingredients give
radiant glowing skin
28
Competition
1.Lux
2.Pears
SWOT Analysis
Strengths
1. Six variants – Fragrant Flower, Soft
sandal, Natural Glow, Healthy Glow,
Lemon fresh and milky glow
2. Strong Brand name of ITC
3. Strong Distribution system enhances
mass marketing
4. Natural ingredients enhances trust in
brand
Weakness
1. Limited market share due to stiff
competition in the market
2.Cannabalization of market share by
Vivel
Opportunities
1. People are turning more towards
products made from natural ingredients
2. One of the fastest growing brands in
many state
Threats
1.Cut throat competition from domestic
soap brands
2.Less scope of expansion
3.Switching costs are low
Competition
1.Lux
2.Pears
SWOT Analysis
Strengths
1. Six variants – Fragrant Flower, Soft
sandal, Natural Glow, Healthy Glow,
Lemon fresh and milky glow
2. Strong Brand name of ITC
3. Strong Distribution system enhances
mass marketing
4. Natural ingredients enhances trust in
brand
Weakness
1. Limited market share due to stiff
competition in the market
2.Cannabalization of market share by
Vivel
Opportunities
1. People are turning more towards
products made from natural ingredients
2. One of the fastest growing brands in
many state
Threats
1.Cut throat competition from domestic
soap brands
2.Less scope of expansion
3.Switching costs are low
29
MARKET SEGMENTATION AND TARGETING
STRATEGIES
Market segmentation is a recent development in marketing thinking and strategy. It is based on
the natural variations found in a general or total market. Diversity is the basic characteristic of a
market, be it a consumer market or industrial market. Marketers must understand natural
diversity for effective marketing. In today‘s highly competitive environment, market
segmentation, target market selection and effectively positioning the offerings are very essential
requirements for gaining competitive advantages.
One of the fundamental principles of marketing is the concept of market segmentation.
Sometimes it is referred to be as one of the potentially most creative areas of marketing.
Therefore, what is it, why is it important and how has it changed in a web enabled world? The
starting point as ever is the Chartered Institute of Marketing's definition of marketing: ―The
management process responsible for the identification, anticipation and satisfaction of customer
needs profitably.‖ While this definition lacks certain verve, it does contain considerable food for
thought. Putting it bluntly, no one company can satisfy the needs of all of these potential
customers. This is the first justification for segmentation. The second justification is a function of
supply and demand. In a world where there is a shortage of supply, segmentation is unnecessary,
as people will take whatever they can get. Conversely, when supply exceeds demand and people
have a choice the product offer which best matches their needs will be chosen. The third
justification is plain common sense. If you can target a group of customers, your marketing is
likely to be more effective as your product offer is designed to meet the sole needs of that group.
Your product offer is no longer, a one size fits all solution.
According to Philip Kotler, ―Market segmentation is the sub-dividing of market
into homogeneous sub-sections of customers, where any sub-section may
conceivably be selected as a market target to be reached with a distinct marketing
mix.‖
MARKET SEGMENTATION AND TARGETING
STRATEGIES
Market segmentation is a recent development in marketing thinking and strategy. It is based on
the natural variations found in a general or total market. Diversity is the basic characteristic of a
market, be it a consumer market or industrial market. Marketers must understand natural
diversity for effective marketing. In today‘s highly competitive environment, market
segmentation, target market selection and effectively positioning the offerings are very essential
requirements for gaining competitive advantages.
One of the fundamental principles of marketing is the concept of market segmentation.
Sometimes it is referred to be as one of the potentially most creative areas of marketing.
Therefore, what is it, why is it important and how has it changed in a web enabled world? The
starting point as ever is the Chartered Institute of Marketing's definition of marketing: ―The
management process responsible for the identification, anticipation and satisfaction of customer
needs profitably.‖ While this definition lacks certain verve, it does contain considerable food for
thought. Putting it bluntly, no one company can satisfy the needs of all of these potential
customers. This is the first justification for segmentation. The second justification is a function of
supply and demand. In a world where there is a shortage of supply, segmentation is unnecessary,
as people will take whatever they can get. Conversely, when supply exceeds demand and people
have a choice the product offer which best matches their needs will be chosen. The third
justification is plain common sense. If you can target a group of customers, your marketing is
likely to be more effective as your product offer is designed to meet the sole needs of that group.
Your product offer is no longer, a one size fits all solution.
According to Philip Kotler, ―Market segmentation is the sub-dividing of market
into homogeneous sub-sections of customers, where any sub-section may
conceivably be selected as a market target to be reached with a distinct marketing
mix.‖
30
Market segmentation is just the first step in a three-phase marketing strategy. After segmenting
the market into homogeneous clusters, the marketer must select one or more segments to target.
So the second step is target marketing, which is the process of evaluating each market segment‘s
attractiveness and selecting one or more segments to enter.
To accomplish this, the marketer must decide on a specific marketing mix-that is, a specific
product, price, channel and promotional appeal for each distinct segment. The third step is
market positioning, which involves arranging for a product to occupy a clear, distinctive and
desirable place relative to competitive products, in the minds of target consumers.
A market is composed of individuals and they are rarely homogeneous in benefits wanted,
purchase rates, price and promotion elasticity. Their response rates of products and services and
promotion programmers differ. Since consumers have dissimilar needs and wants in a market, it
is called a heterogeneous market and most markets are heterogeneous. Differences in product
preferences, size and growth in demand, media habits and competitive structure of the market
also affect the differences and response rates.
Market segmentation is just the first step in a three-phase marketing strategy. After segmenting
the market into homogeneous clusters, the marketer must select one or more segments to target.
So the second step is target marketing, which is the process of evaluating each market segment‘s
attractiveness and selecting one or more segments to enter.
To accomplish this, the marketer must decide on a specific marketing mix-that is, a specific
product, price, channel and promotional appeal for each distinct segment. The third step is
market positioning, which involves arranging for a product to occupy a clear, distinctive and
desirable place relative to competitive products, in the minds of target consumers.
A market is composed of individuals and they are rarely homogeneous in benefits wanted,
purchase rates, price and promotion elasticity. Their response rates of products and services and
promotion programmers differ. Since consumers have dissimilar needs and wants in a market, it
is called a heterogeneous market and most markets are heterogeneous. Differences in product
preferences, size and growth in demand, media habits and competitive structure of the market
also affect the differences and response rates.
31
Criteria for Market segmentation:
The market segmentation to be worthwhile six criteria, as shown below, must be satisfied:
1. Identity:
The marketing manager must have some means of identifying members of the segment, that is,
some basis for classifying an individual as being or not being a member of the segment. There
must be clear differences between segments. Members of such segments can be readily identified
by common characteristics which display similar behavior.
2. Accessibility:
It must be possible to reach the different segments in regard to both promotion and distribution.
In other words, organization must be able to focus its marketing efforts on the chosen segment.
Segments must be accessible in two senses. First, firms must be able to make them aware of
products or services. Secondly, they must get these products to them through the distribution
system at a reasonable cost.
3. Responsiveness:
A clearly defined segment must react to changes in any of the elements of the marketing mix.
For instance, if a particular segment is defined as being cost-conscious, it should react negatively
to price rises. If it does not, this is an indication that the segment needs to be refined.
4. Size:
The segment must be reasonably large enough to be a profitable target. It depends upon the
number of people in it and their purchasing power. For example, makers of luxury goods may
appeal to small but wealthy target markets whereas makers of cheap consumption goods may sell
a large number of persons who are relatively poor. The idea is that enough potential buyers must
exist to cover the costs of production and marketing required in that segment. This is often called
as substantiality.
5. Nature of Demand:
Criteria for Market segmentation:
The market segmentation to be worthwhile six criteria, as shown below, must be satisfied:
1. Identity:
The marketing manager must have some means of identifying members of the segment, that is,
some basis for classifying an individual as being or not being a member of the segment. There
must be clear differences between segments. Members of such segments can be readily identified
by common characteristics which display similar behavior.
2. Accessibility:
It must be possible to reach the different segments in regard to both promotion and distribution.
In other words, organization must be able to focus its marketing efforts on the chosen segment.
Segments must be accessible in two senses. First, firms must be able to make them aware of
products or services. Secondly, they must get these products to them through the distribution
system at a reasonable cost.
3. Responsiveness:
A clearly defined segment must react to changes in any of the elements of the marketing mix.
For instance, if a particular segment is defined as being cost-conscious, it should react negatively
to price rises. If it does not, this is an indication that the segment needs to be refined.
4. Size:
The segment must be reasonably large enough to be a profitable target. It depends upon the
number of people in it and their purchasing power. For example, makers of luxury goods may
appeal to small but wealthy target markets whereas makers of cheap consumption goods may sell
a large number of persons who are relatively poor. The idea is that enough potential buyers must
exist to cover the costs of production and marketing required in that segment. This is often called
as substantiality.
5. Nature of Demand:
32
It refers to the different quantities demanded by various segments. Segmentation is required only
if there are marked differentiation in terms of demand.
6. Measurability:
The purpose of segmentation is to measure the changing behavior pattern of consumers. For
example, the segments of a market for a car are determined by a number of considerations, such
as economy, status, quality, safety, comforts etc.
Bases for consumer Market segmentation:
1. Geographic Segmentation:
In geographic segmentation, the whole market is divided into different geographical units.
Generally, the market is divided into regions-northern, southern, western, and eastern and so on.
Each region may consist of several states and districts. A national marketer may treat the whole
nation as his market and divide it on the basis of region or zone for business operations.
Geographic segmentation refers to dividing a market into different geographical units such as
nations, states, regions, cities, or neighborhoods. For example, national newspapers are published
and distributed to different cities in different languages to cater to the needs of the consumers.
Geographic variables such as climate, terrain, natural resources, and population density also
influence consumer product needs. Companies may divide markets into regions because the
differences in geographic variables can cause consumer needs and wants to differ from one
region to another.
2. Demographic Segmentation:
Demographic segmentation divides the markets into groups based on variables such as age,
gender, family size, income, occupation, education, religion, race and nationality. Demographic
factors are the most popular bases for segmenting the consumer group. One reason is that
consumer needs, wants, and usage rates often vary closely with the demographic variables.
Moreover, demographic factors are easier to measure than most other type of variables.
1. Age:
It refers to the different quantities demanded by various segments. Segmentation is required only
if there are marked differentiation in terms of demand.
6. Measurability:
The purpose of segmentation is to measure the changing behavior pattern of consumers. For
example, the segments of a market for a car are determined by a number of considerations, such
as economy, status, quality, safety, comforts etc.
Bases for consumer Market segmentation:
1. Geographic Segmentation:
In geographic segmentation, the whole market is divided into different geographical units.
Generally, the market is divided into regions-northern, southern, western, and eastern and so on.
Each region may consist of several states and districts. A national marketer may treat the whole
nation as his market and divide it on the basis of region or zone for business operations.
Geographic segmentation refers to dividing a market into different geographical units such as
nations, states, regions, cities, or neighborhoods. For example, national newspapers are published
and distributed to different cities in different languages to cater to the needs of the consumers.
Geographic variables such as climate, terrain, natural resources, and population density also
influence consumer product needs. Companies may divide markets into regions because the
differences in geographic variables can cause consumer needs and wants to differ from one
region to another.
2. Demographic Segmentation:
Demographic segmentation divides the markets into groups based on variables such as age,
gender, family size, income, occupation, education, religion, race and nationality. Demographic
factors are the most popular bases for segmenting the consumer group. One reason is that
consumer needs, wants, and usage rates often vary closely with the demographic variables.
Moreover, demographic factors are easier to measure than most other type of variables.
1. Age:
33
It is one of the most common demographic variables used to segment markets. Some companies
offer different products, or use different marketing approaches for different age groups. For
example, McDonald‘s targets children, teens, adults and seniors with different ads and media.
Markets that are commonly segmented by age include clothing, toys, music, automobiles, soaps,
shampoos and foods.
2. Gender:
Gender segmentation is used in clothing, cosmetics and magazines.
3. Income:
Markets are also segmented on the basis of income. Income is used to divide the markets because
it influences the people‘s product purchase. It affects a consumer‘s buying power and style of
living. Income includes housing, furniture, automobile, clothing, alcoholic, beverages, food,
sporting goods, luxury goods, financial services and travel.
4. Family cycle:
Product needs vary according to age, number of persons in the household, marital status, and
number and age of children. These variables can be combined into a single variable called family
life cycle. Housing, home appliances, furniture, food and automobile are few of the numerous
product markets segmented by the family cycle stages. Social class can be divided into upper
class, middle class and lower class. Many companies deal in clothing, home furnishing, leisure
activities, design products and services for specific social classes.
3. Psychographic Segmentation:
Psychographic segmentation pertains to lifestyle and personality traits. In the case of certain
products, buying behavior predominantly depends on lifestyle and personality characteristics.
Consumers are subdivided into different groups on the basis of personality, life style and values.
These characteristic lead to psychographic segmentation. People exhibit different life-style and
they express them through the products they use. Some social segments are very orthodox and
tradition bound at home. But the same people look very modem and conspicuous when in the
outside world.
It is one of the most common demographic variables used to segment markets. Some companies
offer different products, or use different marketing approaches for different age groups. For
example, McDonald‘s targets children, teens, adults and seniors with different ads and media.
Markets that are commonly segmented by age include clothing, toys, music, automobiles, soaps,
shampoos and foods.
2. Gender:
Gender segmentation is used in clothing, cosmetics and magazines.
3. Income:
Markets are also segmented on the basis of income. Income is used to divide the markets because
it influences the people‘s product purchase. It affects a consumer‘s buying power and style of
living. Income includes housing, furniture, automobile, clothing, alcoholic, beverages, food,
sporting goods, luxury goods, financial services and travel.
4. Family cycle:
Product needs vary according to age, number of persons in the household, marital status, and
number and age of children. These variables can be combined into a single variable called family
life cycle. Housing, home appliances, furniture, food and automobile are few of the numerous
product markets segmented by the family cycle stages. Social class can be divided into upper
class, middle class and lower class. Many companies deal in clothing, home furnishing, leisure
activities, design products and services for specific social classes.
3. Psychographic Segmentation:
Psychographic segmentation pertains to lifestyle and personality traits. In the case of certain
products, buying behavior predominantly depends on lifestyle and personality characteristics.
Consumers are subdivided into different groups on the basis of personality, life style and values.
These characteristic lead to psychographic segmentation. People exhibit different life-style and
they express them through the products they use. Some social segments are very orthodox and
tradition bound at home. But the same people look very modem and conspicuous when in the
outside world.
34
1. Personality characteristics:
It refers to a person‘s individual character traits, attitudes and habits. Here markets are
segmented according to competitiveness, introvert, extrovert, ambitious, aggressiveness, etc.
This type of segmentation is used when a product is similar to many competing products, and
consumer needs for products are not affected by other segmentation variables.
2. Lifestyle:
It is the manner in which people live and spend their time and money. Lifestyle analysis provides
marketers with a broad view of consumers because it segments the markets into groups on the
basis of activities, interests, beliefs and opinions. Companies making cosmetics, alcoholic
beverages and furniture‘s segment market according to the lifestyle.
4. Behavioral Segmentation:
In behavioral segmentation, buyers are divided into groups on the basis of their knowledge of,
attitude towards, use of, or response to a product. Behavioral segmentation includes
segmentation on the basis of occasions, user status, usage rate loyalty status, buyer-readiness
stage and attitude.
1. Occasion:
Buyers can be distinguished according to the occasions when they purchase a product, use a
product, or develop a need to use a product. It helps the firm expand the product usage. For
example, Cadbury‘s advertising to promote the product during wedding season is an example of
occasion segmentation.
2. User status:
Sometimes the markets are segmented on the basis of user status, that is, on the basis of non-
user, ex-user, potential user, first-time user and regular user of the product. Large companies
usually target potential users, whereas smaller firms focus on current users.
1. Personality characteristics:
It refers to a person‘s individual character traits, attitudes and habits. Here markets are
segmented according to competitiveness, introvert, extrovert, ambitious, aggressiveness, etc.
This type of segmentation is used when a product is similar to many competing products, and
consumer needs for products are not affected by other segmentation variables.
2. Lifestyle:
It is the manner in which people live and spend their time and money. Lifestyle analysis provides
marketers with a broad view of consumers because it segments the markets into groups on the
basis of activities, interests, beliefs and opinions. Companies making cosmetics, alcoholic
beverages and furniture‘s segment market according to the lifestyle.
4. Behavioral Segmentation:
In behavioral segmentation, buyers are divided into groups on the basis of their knowledge of,
attitude towards, use of, or response to a product. Behavioral segmentation includes
segmentation on the basis of occasions, user status, usage rate loyalty status, buyer-readiness
stage and attitude.
1. Occasion:
Buyers can be distinguished according to the occasions when they purchase a product, use a
product, or develop a need to use a product. It helps the firm expand the product usage. For
example, Cadbury‘s advertising to promote the product during wedding season is an example of
occasion segmentation.
2. User status:
Sometimes the markets are segmented on the basis of user status, that is, on the basis of non-
user, ex-user, potential user, first-time user and regular user of the product. Large companies
usually target potential users, whereas smaller firms focus on current users.
35
3. Usage rate:
Markets can be distinguished on the basis of usage rate, that is, on the basis of light, medium and
heavy users. Heavy users are often a small percentage of the market, but account for a high
percentage of the total consumption. Marketers usually prefer to attract a heavy user rather than
several light users, and vary their promotional efforts accordingly.
4. Loyalty status:
Buyers can be divided on the basis of their loyalty status—hardcore loyal (consumer who buy
one brand all the time), split loyal (consumers who are loyal to two or three brands), shifting
loyal (consumers who shift from one brand to another), and switchers (consumers who show no
loyalty to any brand).
5. Buyer readiness stage:
The six psychological stages through which a person passes when deciding to purchase a
product. The six stages are awareness of the product, knowledge of what it does, interest in the
product, preference over competing products, conviction of the product‘s suitability, and
purchase. Marketing campaigns exist in large part to move the target audience through the buyer
readiness stages.
3. Usage rate:
Markets can be distinguished on the basis of usage rate, that is, on the basis of light, medium and
heavy users. Heavy users are often a small percentage of the market, but account for a high
percentage of the total consumption. Marketers usually prefer to attract a heavy user rather than
several light users, and vary their promotional efforts accordingly.
4. Loyalty status:
Buyers can be divided on the basis of their loyalty status—hardcore loyal (consumer who buy
one brand all the time), split loyal (consumers who are loyal to two or three brands), shifting
loyal (consumers who shift from one brand to another), and switchers (consumers who show no
loyalty to any brand).
5. Buyer readiness stage:
The six psychological stages through which a person passes when deciding to purchase a
product. The six stages are awareness of the product, knowledge of what it does, interest in the
product, preference over competing products, conviction of the product‘s suitability, and
purchase. Marketing campaigns exist in large part to move the target audience through the buyer
readiness stages.
36
The Soap opera: The Segmentation Game
Riding high on its distribution strength and brand ambassadors like Kareena Kapoor and Trisha
Krishnan, Vivel is becoming a strong challenger brand to HUL‘s Lux
Many of you may be surprised to find ITC‘s three-year-old brand Vivel as a success story. Just
have a look at some numbers: As per Euro monitor, in 2010, Vivel had a market share of 1.6 per
cent in the bath and shower category, vis-à-vis 0.9 per cent in 2008 (the year it was launched).
Within three years it has doubled its market share in a category with more than 40 brands. This is
impressive considering the fact that 80-year-old brand Lux (the market leader) has 13.7 per cent
market share in the category. Also, reportedly, Vivel‘s market share in the mid-segment soap
category (which is where the brand operates) is currently around six per cent. According to AC
Nielsen, Vivel soaps are one of the fastest growing for ITC with a growth rate of 75-80 per cent.
Sandeep Kaul, Chief Executive, Personal Care Products Business, ITC says, ―Within a short
span, Vivel has been able to carve a space in the consumer mind space and is growing steadily
amongst its contemporaries.‖
The segmentation game ITC‘s soap portfolio consists of a product line - Essenza Di Wills at the
top end, followed by Fiama Di Wills in premium segment, Vivel in mid-segment and Superia at
the entry level. ITC seems to have segmented the market well and has different products to cater
to different segments. Moreover, Vivel is targeting young consumers who are ready to flirt with
new brands. As Jagdeep Kapoor, Chairman and Managing Director, Samsika Marketing
Consultant, says, ―Vivel seems to be focusing on young consumers who are looking for a change
and people who are not necessarily tied to a brand for many years. The strategy has helped the
company gain some market share quite early in the product lifecycle.‖ Vivel has adopted the
strategy of capturing different consumers through its different variants within the mid segment of
the soap category. Dr S Ramesh Kumar, Professor of Marketing, IIM-Bangalore, says, ―Vivel
with its variants like Sandal Sparkle, Sheer Crème and other variants priced at Rs 17 onwards
seems to be in competition with Lux‘s variants from the viewpoint of consumer perception (Lux
has variants at 65 grams and 90 grams) . Vivel seems to offer an alternative to consumers who
would like to upgrade from the lower price segment and this alternative may also create trials
among those using Lux or other brands in the price segment.‖ Similarly, Vivel Di Wills (a
The Soap opera: The Segmentation Game
Riding high on its distribution strength and brand ambassadors like Kareena Kapoor and Trisha
Krishnan, Vivel is becoming a strong challenger brand to HUL‘s Lux
Many of you may be surprised to find ITC‘s three-year-old brand Vivel as a success story. Just
have a look at some numbers: As per Euro monitor, in 2010, Vivel had a market share of 1.6 per
cent in the bath and shower category, vis-à-vis 0.9 per cent in 2008 (the year it was launched).
Within three years it has doubled its market share in a category with more than 40 brands. This is
impressive considering the fact that 80-year-old brand Lux (the market leader) has 13.7 per cent
market share in the category. Also, reportedly, Vivel‘s market share in the mid-segment soap
category (which is where the brand operates) is currently around six per cent. According to AC
Nielsen, Vivel soaps are one of the fastest growing for ITC with a growth rate of 75-80 per cent.
Sandeep Kaul, Chief Executive, Personal Care Products Business, ITC says, ―Within a short
span, Vivel has been able to carve a space in the consumer mind space and is growing steadily
amongst its contemporaries.‖
The segmentation game ITC‘s soap portfolio consists of a product line - Essenza Di Wills at the
top end, followed by Fiama Di Wills in premium segment, Vivel in mid-segment and Superia at
the entry level. ITC seems to have segmented the market well and has different products to cater
to different segments. Moreover, Vivel is targeting young consumers who are ready to flirt with
new brands. As Jagdeep Kapoor, Chairman and Managing Director, Samsika Marketing
Consultant, says, ―Vivel seems to be focusing on young consumers who are looking for a change
and people who are not necessarily tied to a brand for many years. The strategy has helped the
company gain some market share quite early in the product lifecycle.‖ Vivel has adopted the
strategy of capturing different consumers through its different variants within the mid segment of
the soap category. Dr S Ramesh Kumar, Professor of Marketing, IIM-Bangalore, says, ―Vivel
with its variants like Sandal Sparkle, Sheer Crème and other variants priced at Rs 17 onwards
seems to be in competition with Lux‘s variants from the viewpoint of consumer perception (Lux
has variants at 65 grams and 90 grams) . Vivel seems to offer an alternative to consumers who
would like to upgrade from the lower price segment and this alternative may also create trials
among those using Lux or other brands in the price segment.‖ Similarly, Vivel Di Wills (a
37
variant of Vivel), with a slightly premium image, is competing with the higher priced variants of
Lux or other similar brands. ―Vivel‘s variants like Satin Soft may appeal to consumers who have
been perceiving value with brands like Godrej No. 1 that offer traditional variants at Rs 18 for
115 grams (very often the brand is also on sales promotion),‖ adds Dr Kumar. Currently, Vivel‘s
product portfolio has around nine variants of soaps available across India.
ITC‘s Kaul says, ―The brand was launched in 2008 with a bouquet of world-class offerings,
which comprised of the following soap variants: Satin Soft, Young Glow, Silk spring, Ayurveda
Essence, Vivel Di Wills in two variants. Each variant is crafted to offer a specific benefit to the
different needs of the discerning consumer.‖ And this product variant approach is a result of
ITC‘s ‗3E‘ approach (Explore, Establish and Execute) to research and development. As Kaul
shares, ―Extensive insights gained through numerous consumer engagements have enabled ITC‘s
R&D and Product Development teams to develop superior, differentiated products that meet the
consumer‘s stated and innate needs.‖ In fact an intensive market research is one of the key areas
where ITC‘s personal care division has a strong focus. There are 3-5 years of intensive research
usually before a product is launched. This surely strengthens the brand‘s marketing team with
some sound consumer insights.
The Push-Pull strategy
Apart from the smart product strategy, the biggest reason for Vivel‘s initial success is its push-
pull strategy that ITC applies to its other soap brands too. As Dr Kumar explains, ―Push is the
powerful distribution clout and pull is the advertising strategies that have been sustained ever
since the launch of ITC‘s soap brands. Vivel‘s focus on looking good with its campaigns and
Fiama‘s celebrity based strategy brings in a clear differentiation.‖ At the distribution level, the
brand is widely available in both modern and traditional trade. Not just availability, Vivel is also
quite high on visibility at retail outlets. Experts point out that like most of the ITC‘s FMCG
brands, Vivel has also adopted eye level merchandising that is, placing the products just at the
usual eye level at retail outlets. This increases the visibility of the product. Kaul says, ―As
compared to Essenza Di Wills and Fiama Di Wills, Vivel is more widely available at various
retail and departmental stores. Trade marketing is one of our core strengths. Hence, for all its
brands, distribution is an important aspect and has helped make varied products widely available
variant of Vivel), with a slightly premium image, is competing with the higher priced variants of
Lux or other similar brands. ―Vivel‘s variants like Satin Soft may appeal to consumers who have
been perceiving value with brands like Godrej No. 1 that offer traditional variants at Rs 18 for
115 grams (very often the brand is also on sales promotion),‖ adds Dr Kumar. Currently, Vivel‘s
product portfolio has around nine variants of soaps available across India.
ITC‘s Kaul says, ―The brand was launched in 2008 with a bouquet of world-class offerings,
which comprised of the following soap variants: Satin Soft, Young Glow, Silk spring, Ayurveda
Essence, Vivel Di Wills in two variants. Each variant is crafted to offer a specific benefit to the
different needs of the discerning consumer.‖ And this product variant approach is a result of
ITC‘s ‗3E‘ approach (Explore, Establish and Execute) to research and development. As Kaul
shares, ―Extensive insights gained through numerous consumer engagements have enabled ITC‘s
R&D and Product Development teams to develop superior, differentiated products that meet the
consumer‘s stated and innate needs.‖ In fact an intensive market research is one of the key areas
where ITC‘s personal care division has a strong focus. There are 3-5 years of intensive research
usually before a product is launched. This surely strengthens the brand‘s marketing team with
some sound consumer insights.
The Push-Pull strategy
Apart from the smart product strategy, the biggest reason for Vivel‘s initial success is its push-
pull strategy that ITC applies to its other soap brands too. As Dr Kumar explains, ―Push is the
powerful distribution clout and pull is the advertising strategies that have been sustained ever
since the launch of ITC‘s soap brands. Vivel‘s focus on looking good with its campaigns and
Fiama‘s celebrity based strategy brings in a clear differentiation.‖ At the distribution level, the
brand is widely available in both modern and traditional trade. Not just availability, Vivel is also
quite high on visibility at retail outlets. Experts point out that like most of the ITC‘s FMCG
brands, Vivel has also adopted eye level merchandising that is, placing the products just at the
usual eye level at retail outlets. This increases the visibility of the product. Kaul says, ―As
compared to Essenza Di Wills and Fiama Di Wills, Vivel is more widely available at various
retail and departmental stores. Trade marketing is one of our core strengths. Hence, for all its
brands, distribution is an important aspect and has helped make varied products widely available
38
to consumers.‖ Thus the distribution push has played a key role in Vivel‘s performance so far.
The brand has clubbed that with a celebrity led advertising pull. Experts believe that Vivel has
very sensibly used celebrities to enhance the brand awareness. ―Kareena Kapoor is a perfect fit
for the consumers Vivel is looking at. She has given the aspirational edge to the brand among its
core target group,‖ says an expert. Vivel also has South Indian celebrity like Trisha Krishnan as
brand endorser to connect better with the consumers in the South Indian market. Samsika‘s
Kapoor says, ―South India is a huge market in itself and it‘s a smart strategy from Vivel to have a
celebrity with whom these consumers relate well. It increases the reach of the brand in that
specific market.‖ This Push-Pull strategy is rightly complemented with Vivel‘s competitive
pricing. Vivel is available in the price range of Rs 5 (40 gm bar) to Rs 18 (100 gm). This is the
range within which most of the mid segment soap brands are priced too. The brand is expanding
beyond soaps. Apart from soaps, it has four shampoo variants in select markets in India and
ITC‘s first fairness cream, Vivel Active Fair. The fairness cream is currently being rolled out
nationally. Also, industry reports suggest that brand may further expand in other beauty and
personal care categories like Talc‘s and Deodorant. ITC‘s Kaul says, ―Consumers are evolving at
a fast pace and the only way to ensure consumer delight is innovation in the product portfolio. As
ITC‘s Personal Care Business is gearing up to revolutionize the personal care segment in India,
with extensive research and development and consumer insight based innovation, we plan to
augment the Vivel range of products to reach out to more consumers and address their evolving
needs in personal care. However, IIM‘s Kumar opines, ―Vivel is into shampoo and fairness
cream categories and hence the long term challenge is not only to offer good variants but also to
develop a brand association that gets entrenched in the psyche of consumers. A sustainable core
association is essential for any brand in the soap market.
Segment and grow!
Late entrant ITC is making competition count in the Rs 29,000-crore personal care industry. ITC
may be a late entrant in the Rs 29,000-crore personal care industry growing at 12 per cent every
year, but it sure is making competition count. Some number crunching will establish that the
cigarette-to-hotels major has indeed made inroads into an intensely competitive market often
marked by pressured margins. In just two years, ITC‘s personal care business has notched up
market share of about 5 per cent (volume) in soaps, and around 3.4 per cent in shampoos.
to consumers.‖ Thus the distribution push has played a key role in Vivel‘s performance so far.
The brand has clubbed that with a celebrity led advertising pull. Experts believe that Vivel has
very sensibly used celebrities to enhance the brand awareness. ―Kareena Kapoor is a perfect fit
for the consumers Vivel is looking at. She has given the aspirational edge to the brand among its
core target group,‖ says an expert. Vivel also has South Indian celebrity like Trisha Krishnan as
brand endorser to connect better with the consumers in the South Indian market. Samsika‘s
Kapoor says, ―South India is a huge market in itself and it‘s a smart strategy from Vivel to have a
celebrity with whom these consumers relate well. It increases the reach of the brand in that
specific market.‖ This Push-Pull strategy is rightly complemented with Vivel‘s competitive
pricing. Vivel is available in the price range of Rs 5 (40 gm bar) to Rs 18 (100 gm). This is the
range within which most of the mid segment soap brands are priced too. The brand is expanding
beyond soaps. Apart from soaps, it has four shampoo variants in select markets in India and
ITC‘s first fairness cream, Vivel Active Fair. The fairness cream is currently being rolled out
nationally. Also, industry reports suggest that brand may further expand in other beauty and
personal care categories like Talc‘s and Deodorant. ITC‘s Kaul says, ―Consumers are evolving at
a fast pace and the only way to ensure consumer delight is innovation in the product portfolio. As
ITC‘s Personal Care Business is gearing up to revolutionize the personal care segment in India,
with extensive research and development and consumer insight based innovation, we plan to
augment the Vivel range of products to reach out to more consumers and address their evolving
needs in personal care. However, IIM‘s Kumar opines, ―Vivel is into shampoo and fairness
cream categories and hence the long term challenge is not only to offer good variants but also to
develop a brand association that gets entrenched in the psyche of consumers. A sustainable core
association is essential for any brand in the soap market.
Segment and grow!
Late entrant ITC is making competition count in the Rs 29,000-crore personal care industry. ITC
may be a late entrant in the Rs 29,000-crore personal care industry growing at 12 per cent every
year, but it sure is making competition count. Some number crunching will establish that the
cigarette-to-hotels major has indeed made inroads into an intensely competitive market often
marked by pressured margins. In just two years, ITC‘s personal care business has notched up
market share of about 5 per cent (volume) in soaps, and around 3.4 per cent in shampoos.
39
Brands Vivel and Superia are each estimated to be more than Rs 200 crore per annum in
consumer spends. Putting those numbers in context is a IMRB household panel survey in
February 2010 that indicates Vivel and Superia soaps and shampoos have been purchased by
over seven crore households, representing nearly 30 per cent of Indian households.
What helped ITC cut across the clutter is probably its product proposition: a wide range of
products meeting international quality standards but developed on the basis of Indian consumer
experience? Of course, chief executive of personal care strategic business unit, Sandeep Kaul,
believes it‘s not one selling proposition, but several that have helped ITC carve out a place in the
market. ―We offer a superior value proposition to the consumer and we have an intimate
understanding of consumer insight. And, of course, the aesthetics. These are the cornerstones of
our value proposition,‖ Kaul says.
No doubt. At ITC, there is a lot that goes into understanding the consumer. The company spent
close to four years researching at its centre in Bangalore before the first product from the
personal care stable rolled out. ―That is why our products have been accepted by the consumer.
We probably have the fastest growing set of brands in the market,‖ Kaul points out before adding
rather modestly that the base is also small.
ITC‘s non-cigarette fast moving consumer goods (FMCG) business — which contributes close to
50 per cent to the company‘s turnover — registered a strong set of numbers in the third quarter
of 2011 and among the highlights was a continued reduction in loss reported by the FMCG
business. While revenues increased 23.8 per cent year-on-year to Rs 1,104 crore, losses came
down by Rs 12 crore to Rs 74 crore, though sequentially it increased due to new launches. Angel
Broking Research expects the revenue traction in the segment to continue and loss to reduce
albeit at a slower pace than FY2010, though breakeven is likely to be achieved only in FY2013.
Engagement with consumers, promotional activities and new age consumer connect avenues
have had their roles to play, but it is the relentless rollout of products that has given ITC‘s
FMCG portfolio so much visibility. In a short span of time, ITC has managed to create a
presence across different price points, almost bombarding the market with launches. In the super
premium segment, it has Essenza Di Wills‘ fragrances, in premium Fiama Di Wills, in the mid-
Brands Vivel and Superia are each estimated to be more than Rs 200 crore per annum in
consumer spends. Putting those numbers in context is a IMRB household panel survey in
February 2010 that indicates Vivel and Superia soaps and shampoos have been purchased by
over seven crore households, representing nearly 30 per cent of Indian households.
What helped ITC cut across the clutter is probably its product proposition: a wide range of
products meeting international quality standards but developed on the basis of Indian consumer
experience? Of course, chief executive of personal care strategic business unit, Sandeep Kaul,
believes it‘s not one selling proposition, but several that have helped ITC carve out a place in the
market. ―We offer a superior value proposition to the consumer and we have an intimate
understanding of consumer insight. And, of course, the aesthetics. These are the cornerstones of
our value proposition,‖ Kaul says.
No doubt. At ITC, there is a lot that goes into understanding the consumer. The company spent
close to four years researching at its centre in Bangalore before the first product from the
personal care stable rolled out. ―That is why our products have been accepted by the consumer.
We probably have the fastest growing set of brands in the market,‖ Kaul points out before adding
rather modestly that the base is also small.
ITC‘s non-cigarette fast moving consumer goods (FMCG) business — which contributes close to
50 per cent to the company‘s turnover — registered a strong set of numbers in the third quarter
of 2011 and among the highlights was a continued reduction in loss reported by the FMCG
business. While revenues increased 23.8 per cent year-on-year to Rs 1,104 crore, losses came
down by Rs 12 crore to Rs 74 crore, though sequentially it increased due to new launches. Angel
Broking Research expects the revenue traction in the segment to continue and loss to reduce
albeit at a slower pace than FY2010, though breakeven is likely to be achieved only in FY2013.
Engagement with consumers, promotional activities and new age consumer connect avenues
have had their roles to play, but it is the relentless rollout of products that has given ITC‘s
FMCG portfolio so much visibility. In a short span of time, ITC has managed to create a
presence across different price points, almost bombarding the market with launches. In the super
premium segment, it has Essenza Di Wills‘ fragrances, in premium Fiama Di Wills, in the mid-
40
market segment Vivel and in the popular segment Superia. There is a segment below the popular,
but ITC is not present at that price band.
While the company has kept its fragrances small, it gives ITC‘s FMCG portfolio a prestige
value, priced as they are on par with international designer fragrances. ―It is doing very well,
considering that the distribution has been kept limited. We would like to keep it that way. We
need a particular ambience for the brand to be presented,‖ Kaul points out.
Launch pad
―Our track record in launching new products has been pretty excellent,‖ Kaul says. That‘s
putting it mildly. The personal care business of ITC has gained ground leveraging investments in
R&D, product development and brand building. The company made a foray into the fast-
growing and relatively under-penetrated domestic skin care market with the launch of Vivel
Active Fair Cream (the fairness cream market is estimated at Rs 1,900 crore) in June 2010. The
product has been well received in the launch markets and is being progressively rolled out to
target markets.
The business expanded its product portfolio in the soaps category with the launch of Vivel
Glycerin Milk Cream, a new offering in the winter segment. Vivel Deo Spirit, its offering in the
freshness segment, was extended to Andhra Pradesh, Kerala and Karnataka last winter. The anti-
hair fall shampoo variant under the Fiama Di Wills brand launched in September 2010 has also
been successful, says the company.
Recently, ITC entered the men‘s grooming segment with the Aqua Pulse shower gel and soap.
―We are progressively seeing a trend, wherein men are beginning to look for value propositions
and products created keeping them in mind. People are becoming more and more discerning,‖
Kaul explains.
The business is investing in building a strong portfolio of products and brands through well-
defined research and development strategies backed by the company‘s state-of-the-art R&D
centre. It is also continuously enhancing the quality of engagement with consumers through
efficient deployment of media, direct contact and promotional activities across conventional and
new age consumer connect avenues.
market segment Vivel and in the popular segment Superia. There is a segment below the popular,
but ITC is not present at that price band.
While the company has kept its fragrances small, it gives ITC‘s FMCG portfolio a prestige
value, priced as they are on par with international designer fragrances. ―It is doing very well,
considering that the distribution has been kept limited. We would like to keep it that way. We
need a particular ambience for the brand to be presented,‖ Kaul points out.
Launch pad
―Our track record in launching new products has been pretty excellent,‖ Kaul says. That‘s
putting it mildly. The personal care business of ITC has gained ground leveraging investments in
R&D, product development and brand building. The company made a foray into the fast-
growing and relatively under-penetrated domestic skin care market with the launch of Vivel
Active Fair Cream (the fairness cream market is estimated at Rs 1,900 crore) in June 2010. The
product has been well received in the launch markets and is being progressively rolled out to
target markets.
The business expanded its product portfolio in the soaps category with the launch of Vivel
Glycerin Milk Cream, a new offering in the winter segment. Vivel Deo Spirit, its offering in the
freshness segment, was extended to Andhra Pradesh, Kerala and Karnataka last winter. The anti-
hair fall shampoo variant under the Fiama Di Wills brand launched in September 2010 has also
been successful, says the company.
Recently, ITC entered the men‘s grooming segment with the Aqua Pulse shower gel and soap.
―We are progressively seeing a trend, wherein men are beginning to look for value propositions
and products created keeping them in mind. People are becoming more and more discerning,‖
Kaul explains.
The business is investing in building a strong portfolio of products and brands through well-
defined research and development strategies backed by the company‘s state-of-the-art R&D
centre. It is also continuously enhancing the quality of engagement with consumers through
efficient deployment of media, direct contact and promotional activities across conventional and
new age consumer connect avenues.
41
The business continues to leverage investments in manufacturing facilities at Haridwar
(Uttarakhand) and Manpura (Himachal Pradesh). Apart from the fiscal benefits that accrue on
such investments, these facilities also provide a higher degree of flexibility in manufacturing.
Kaul vows that products and variants will keep rolling. ―We are in the process of rolling out
products in categories where we have already entered. That process will go on,‖ he says. Peer
companies believe Kaul. ―We respect them as a company with good financial capability,
distribution and management,‖ Emami director, Harsh Agarwal says. In a market as big as Rs
29,000 crore, there is possibly space for many players.
In all these launches ITC has followed the top-down approach that has given it tremendous
success in its lifestyle retailing and the stationery segment foray as well as its food business. ITC
stepped into lifestyle and the stationery segments about a decade ago with premium Paperkraft
notebooks and Wills Sport apparel. It‘s only much later that it introduced mass market brands
Classmate notebooks and John Players menswear. Then in 2001 ITC entered the food business
with premium ready-to-eat brand Kitchens of India and followed it up in 2003 with the launch of
the Aashirvaad range of ready meals in the Rs 35-50 price band.
THE PORTFOLIO
ITC‘s personal care portfolio is designed to appeal a cross-section of consumers with its
differentiated value propositions.
Essenza Di Wills is a range of super premium offerings which includes fragrances and bath and
body care products with distinctive olfactory profiles. The brand aims to offer ―a balance
between the classical and the contemporary‖ with offerings for both men and women. Essenza
Di Wills‘ deodorant is priced at Rs 475 and the perfumes upwards of Rs 1,800.
Fiama Di Wills is a range of bath care products especially designed for consumers who seek to
indulge themselves in premium experiences through products and services. The brand offers a
range of shampoos, conditioners, soaps and shower gels that combine exotic natural elements
like sage, watercress and magnolia blossoms with contemporary technology like hydro
restorative system, hair restore technology and the cuticle restore technology. The products are
priced between Rs 33 and Rs 120.
The business continues to leverage investments in manufacturing facilities at Haridwar
(Uttarakhand) and Manpura (Himachal Pradesh). Apart from the fiscal benefits that accrue on
such investments, these facilities also provide a higher degree of flexibility in manufacturing.
Kaul vows that products and variants will keep rolling. ―We are in the process of rolling out
products in categories where we have already entered. That process will go on,‖ he says. Peer
companies believe Kaul. ―We respect them as a company with good financial capability,
distribution and management,‖ Emami director, Harsh Agarwal says. In a market as big as Rs
29,000 crore, there is possibly space for many players.
In all these launches ITC has followed the top-down approach that has given it tremendous
success in its lifestyle retailing and the stationery segment foray as well as its food business. ITC
stepped into lifestyle and the stationery segments about a decade ago with premium Paperkraft
notebooks and Wills Sport apparel. It‘s only much later that it introduced mass market brands
Classmate notebooks and John Players menswear. Then in 2001 ITC entered the food business
with premium ready-to-eat brand Kitchens of India and followed it up in 2003 with the launch of
the Aashirvaad range of ready meals in the Rs 35-50 price band.
THE PORTFOLIO
ITC‘s personal care portfolio is designed to appeal a cross-section of consumers with its
differentiated value propositions.
Essenza Di Wills is a range of super premium offerings which includes fragrances and bath and
body care products with distinctive olfactory profiles. The brand aims to offer ―a balance
between the classical and the contemporary‖ with offerings for both men and women. Essenza
Di Wills‘ deodorant is priced at Rs 475 and the perfumes upwards of Rs 1,800.
Fiama Di Wills is a range of bath care products especially designed for consumers who seek to
indulge themselves in premium experiences through products and services. The brand offers a
range of shampoos, conditioners, soaps and shower gels that combine exotic natural elements
like sage, watercress and magnolia blossoms with contemporary technology like hydro
restorative system, hair restore technology and the cuticle restore technology. The products are
priced between Rs 33 and Rs 120.
42
The Vivel range of products launched in 2008 is ITC‘s leading personal care brand and has
emerged as one of the fastest growing brands nationally. The brand offers a range of bath care
and skin cream products in the mid-market segment. The Vivel portfolio comprises soaps with
actipro-N, one with double moisturizers, Vivel Milk Cream & Glycerin Soap, as well as the first
soap targeted the youth, Vivel Deo Spirit. In shampoos, Vivel has two variants — Total Care and
Ultra Pro Anti-Dandruff shampoo. Vivel expanded its portfolio with the launch of ITC‘s first
fairness cream, Vivel Active Fair which promises a lightened skin in just seven days. The
products are priced between Rs 5 (soaps) and Rs 129 (shampoos).
The Superia range comprises soaps and shampoos aimed at the value consumer. The products are
priced between Rs 5 and Rs 52.
Rural reach
The rural market, which is currently the hotbed of FMCG battles, is ITC‘s strongpoint while
many may find it challenging reaching out to consumers there. ―It‘s a combination of direct
reach and wholesaling that ITC has developed over the years. We are perhaps one of the few
organizations that reach two million outlets,‖ Kaul adds.
The e-Choupal network, the world‘s largest rural digital infrastructure empowering four million
farmers in 40,000 villages, is another area of engagement that ITC can tap. ―We have existing
relationships there based on the network that can be leveraged to disseminate both the product
story and its value proposition,‖ Kaul explains.
It‘s not without reason that companies are reaching out to rural India. Depending on category, as
high as 55 per cent in some sub-segments in the personal care business is in the rural market. The
growth rate varies across India, but ranges between seven and goes up to 20 per cent in some
cases.
For people more comfortable with investing less money at a time, ITC has what the FMCG
world is selling the fastest these days — products in sachets. ―It‘s an Indian psyche. Sachets are
sold in urban and the rural markets, though the percentage may be higher in rural,‖ Kaul says.
The Vivel range of products launched in 2008 is ITC‘s leading personal care brand and has
emerged as one of the fastest growing brands nationally. The brand offers a range of bath care
and skin cream products in the mid-market segment. The Vivel portfolio comprises soaps with
actipro-N, one with double moisturizers, Vivel Milk Cream & Glycerin Soap, as well as the first
soap targeted the youth, Vivel Deo Spirit. In shampoos, Vivel has two variants — Total Care and
Ultra Pro Anti-Dandruff shampoo. Vivel expanded its portfolio with the launch of ITC‘s first
fairness cream, Vivel Active Fair which promises a lightened skin in just seven days. The
products are priced between Rs 5 (soaps) and Rs 129 (shampoos).
The Superia range comprises soaps and shampoos aimed at the value consumer. The products are
priced between Rs 5 and Rs 52.
Rural reach
The rural market, which is currently the hotbed of FMCG battles, is ITC‘s strongpoint while
many may find it challenging reaching out to consumers there. ―It‘s a combination of direct
reach and wholesaling that ITC has developed over the years. We are perhaps one of the few
organizations that reach two million outlets,‖ Kaul adds.
The e-Choupal network, the world‘s largest rural digital infrastructure empowering four million
farmers in 40,000 villages, is another area of engagement that ITC can tap. ―We have existing
relationships there based on the network that can be leveraged to disseminate both the product
story and its value proposition,‖ Kaul explains.
It‘s not without reason that companies are reaching out to rural India. Depending on category, as
high as 55 per cent in some sub-segments in the personal care business is in the rural market. The
growth rate varies across India, but ranges between seven and goes up to 20 per cent in some
cases.
For people more comfortable with investing less money at a time, ITC has what the FMCG
world is selling the fastest these days — products in sachets. ―It‘s an Indian psyche. Sachets are
sold in urban and the rural markets, though the percentage may be higher in rural,‖ Kaul says.
43
A growing demand would necessarily require capacity augmentation. ITC responded to the
needs by adding capacity at its plant at Haridwar in Uttarakhand and commissioned a new plant
at Manpura in Himachal Pradesh sometime back. ―We are in the mode of expanding capacity but
probably in the same locations. It‘s an ongoing process as we continue to invest in newer forms
of technology,‖ Kaul says.
Is inorganic expansion an option? ―We are always open to options of inorganic growth.
However, we will be able to do or get into inorganic growth only if we believe that we can
create more value than existing handlers of the asset. Given the market construct in India, there
are not many opportunities that are available for acquisition,‖ Kaul explains the ITC philosophy.
Milestones galore
three products have been voted as consumer‘s choice in a Nielsen survey. Kaul would like to see
more such milestones. ―Winning consumer affection is our priority number one. We have been
meeting our expectations,‖ Kaul says proudly.
The company doesn‘t want to share the targets, but Angel Broking says, while cigarettes will
continue to remain the main profit centre, investments in non-cigarette businesses have started
yielding positive results, many of which are just about a decade old in the 100 years of the
company‘s existence.
―We expect non-cigarette earnings before interest and taxes to post a 35 per cent compound
annual growth rate aided by reduction in non-cigarette FMCG losses, improvement in hotel
margins aided by higher average room rate and higher margins in paperboards,‖ a recent report
from the broking house notes.
MARKETING MATTERS!
With the core proposition to offer consumers a unique brand experience, ITC‘s personal care
business has engaged in a slew of consumer contact programmer:
Fiama Di Wills collaborated with Walt Disney to launch a limited edition Fiama Di Wills
Hannah Montana pack for Indian teens. This association with Walt Disney‘s teen pop star
provided a unique opportunity for Fiama Di Wills to engage with a younger demography. Fiama
A growing demand would necessarily require capacity augmentation. ITC responded to the
needs by adding capacity at its plant at Haridwar in Uttarakhand and commissioned a new plant
at Manpura in Himachal Pradesh sometime back. ―We are in the mode of expanding capacity but
probably in the same locations. It‘s an ongoing process as we continue to invest in newer forms
of technology,‖ Kaul says.
Is inorganic expansion an option? ―We are always open to options of inorganic growth.
However, we will be able to do or get into inorganic growth only if we believe that we can
create more value than existing handlers of the asset. Given the market construct in India, there
are not many opportunities that are available for acquisition,‖ Kaul explains the ITC philosophy.
Milestones galore
three products have been voted as consumer‘s choice in a Nielsen survey. Kaul would like to see
more such milestones. ―Winning consumer affection is our priority number one. We have been
meeting our expectations,‖ Kaul says proudly.
The company doesn‘t want to share the targets, but Angel Broking says, while cigarettes will
continue to remain the main profit centre, investments in non-cigarette businesses have started
yielding positive results, many of which are just about a decade old in the 100 years of the
company‘s existence.
―We expect non-cigarette earnings before interest and taxes to post a 35 per cent compound
annual growth rate aided by reduction in non-cigarette FMCG losses, improvement in hotel
margins aided by higher average room rate and higher margins in paperboards,‖ a recent report
from the broking house notes.
MARKETING MATTERS!
With the core proposition to offer consumers a unique brand experience, ITC‘s personal care
business has engaged in a slew of consumer contact programmer:
Fiama Di Wills collaborated with Walt Disney to launch a limited edition Fiama Di Wills
Hannah Montana pack for Indian teens. This association with Walt Disney‘s teen pop star
provided a unique opportunity for Fiama Di Wills to engage with a younger demography. Fiama
44
Di Wills ―Shine in Style‖ Hannah Montana Packs received an overwhelming response, says the
company.
The Vivel Active Fair within months of its launch received extremely encouraging consumer
response. The brand, in a special initiative for consumers in Kerala, gave young women an
opportunity to be the next gorgeous face of the Malayalam film industry. Reputed Malayalam
director Lal Jose was roped in for the selection process.
Vivel Soaps undertook the Vivel Lakshadhikari contest in Andhra Pradesh. The contest offers
consumers an opportunity to win Rs 5 lakh on completion of a simple slogan ‗Vivel should make
your dream come true because…‘ and along with it, send any three Vivel soap wrappers/cartons
to a mailing address. The first couple of Vivel Lakshadhikari were announced recently and
felicitated by brand ambassador and Tamil actor Trisha Krishnan.
Superia recently announced its ‗Superia Saundarya Sakhi‘ initiative in Uttar Pradesh. It is an
initiative to enhance skills of women entrepreneurs in the business of beauty across the state of
Uttar Pradesh. As a part of this initiative, Superia will reach out to 4,000 beauty parlor owners in
more than 30 districts of Uttar Pradesh.
Superia has also announced the ‗Superia Chamakta Sitara‘ campaign in Uttar Pradesh. The
contest, in association with schools across 29 districts of Uttar Pradesh, aims to recognize all-
round development among students. Students from grade 7 to 12 will compete to become the
‗Superia Chamakta Sitaras‘. These students will be judged on the parameters of grooming,
attendance, academics and extracurricular activities. The campaign will reach out to more than
1,000 schools.
Di Wills ―Shine in Style‖ Hannah Montana Packs received an overwhelming response, says the
company.
The Vivel Active Fair within months of its launch received extremely encouraging consumer
response. The brand, in a special initiative for consumers in Kerala, gave young women an
opportunity to be the next gorgeous face of the Malayalam film industry. Reputed Malayalam
director Lal Jose was roped in for the selection process.
Vivel Soaps undertook the Vivel Lakshadhikari contest in Andhra Pradesh. The contest offers
consumers an opportunity to win Rs 5 lakh on completion of a simple slogan ‗Vivel should make
your dream come true because…‘ and along with it, send any three Vivel soap wrappers/cartons
to a mailing address. The first couple of Vivel Lakshadhikari were announced recently and
felicitated by brand ambassador and Tamil actor Trisha Krishnan.
Superia recently announced its ‗Superia Saundarya Sakhi‘ initiative in Uttar Pradesh. It is an
initiative to enhance skills of women entrepreneurs in the business of beauty across the state of
Uttar Pradesh. As a part of this initiative, Superia will reach out to 4,000 beauty parlor owners in
more than 30 districts of Uttar Pradesh.
Superia has also announced the ‗Superia Chamakta Sitara‘ campaign in Uttar Pradesh. The
contest, in association with schools across 29 districts of Uttar Pradesh, aims to recognize all-
round development among students. Students from grade 7 to 12 will compete to become the
‗Superia Chamakta Sitaras‘. These students will be judged on the parameters of grooming,
attendance, academics and extracurricular activities. The campaign will reach out to more than
1,000 schools.
45
How the tobacco-to-hospitality major ITC stormed the
Personal Care market. What makes it tick...?
TATA, BIRLA, RELIANCE, OR GODREJ. Just look at the making of these business
conglomerates, you will find that diversification into new businesses has been the biggest
propellant of their ever-growing size, clout and brand prowess. Popularly known as ITC, the $5-
billion Indian Tobacco Company is a likely addition to this select club of ambitious desi
conglomerates. Starting from its humble beginnings in 1910 as Imperial Tobacco Company of
India, Virginia House, the group headquarters in Kolkata, has been the proud witness to many
successful new business scripts in the company‘s long and varied journey. As tobacco became a
bad word in the last two decades, and successive governments began to put many curbs in terms
of advertising and other promotions around tobaccos, it became a tough business environment to
operate in, besides it has started taking a toll on the company's image. Hence, ITC needed to
change its track and that too quickly. And like a skin shedding snake, ITC started an earnest
exercise in creating a new brand image and corporate philosophy by investing in new business
categories like personal care, premium apparel, rural business (eChoupal) and foods. All along
using its famed distribution strengths built through its successful past businesses like cigarettes,
paperboards and packaging, hotels and agri business, to create synergies across its verticals and
help prop up its new businesses, like personal care and foods. ITC has a well thought-out
strategic approach. Rather than acquiring weaker brands to get into these new segments
inorganically, it created a range of new personal care and branded apparel brands. The decisive
element for its new brands was having a product that's differentiated and superior in value
proposition than what the competition has to offer. The first step in this well-planned strategy
was the launch of Wills Lifestyle, the premium branded apparel business in 2002. This business
is being spearheaded by CEO Atul Chand from New Delhi. That ITC was very serious about this
new foray was clear from the fact that it hit the market with four brands— Wills Classic, Wills
Sport, Wills Club Life and Wills Signature—to cater to the specific apparel needs of men and
women of upper and mid-income levels. Besides, it has also launched exclusive men's and
women's wear brands—John Players and Miss Players. Not stopping at apparel, ITC then moved
on to take the competition head on in the FMCG domain, through ITC Foods in August 2001,
and personal care business, which is the focal point of this story, in 2005. It has created good
How the tobacco-to-hospitality major ITC stormed the
Personal Care market. What makes it tick...?
TATA, BIRLA, RELIANCE, OR GODREJ. Just look at the making of these business
conglomerates, you will find that diversification into new businesses has been the biggest
propellant of their ever-growing size, clout and brand prowess. Popularly known as ITC, the $5-
billion Indian Tobacco Company is a likely addition to this select club of ambitious desi
conglomerates. Starting from its humble beginnings in 1910 as Imperial Tobacco Company of
India, Virginia House, the group headquarters in Kolkata, has been the proud witness to many
successful new business scripts in the company‘s long and varied journey. As tobacco became a
bad word in the last two decades, and successive governments began to put many curbs in terms
of advertising and other promotions around tobaccos, it became a tough business environment to
operate in, besides it has started taking a toll on the company's image. Hence, ITC needed to
change its track and that too quickly. And like a skin shedding snake, ITC started an earnest
exercise in creating a new brand image and corporate philosophy by investing in new business
categories like personal care, premium apparel, rural business (eChoupal) and foods. All along
using its famed distribution strengths built through its successful past businesses like cigarettes,
paperboards and packaging, hotels and agri business, to create synergies across its verticals and
help prop up its new businesses, like personal care and foods. ITC has a well thought-out
strategic approach. Rather than acquiring weaker brands to get into these new segments
inorganically, it created a range of new personal care and branded apparel brands. The decisive
element for its new brands was having a product that's differentiated and superior in value
proposition than what the competition has to offer. The first step in this well-planned strategy
was the launch of Wills Lifestyle, the premium branded apparel business in 2002. This business
is being spearheaded by CEO Atul Chand from New Delhi. That ITC was very serious about this
new foray was clear from the fact that it hit the market with four brands— Wills Classic, Wills
Sport, Wills Club Life and Wills Signature—to cater to the specific apparel needs of men and
women of upper and mid-income levels. Besides, it has also launched exclusive men's and
women's wear brands—John Players and Miss Players. Not stopping at apparel, ITC then moved
on to take the competition head on in the FMCG domain, through ITC Foods in August 2001,
and personal care business, which is the focal point of this story, in 2005. It has created good
46
impact with its well etched-out Personal Care Brands, headed by Sandeep Kaul. Under this
category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia
were designed to take care of various sets of consumer segments.
impact with its well etched-out Personal Care Brands, headed by Sandeep Kaul. Under this
category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia
were designed to take care of various sets of consumer segments.
47
RESEARCH METHODOLOGY
Research comprises "creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of humans, culture and society, and the use of this
stock of knowledge to devise new applications." It is used to establish or confirm facts, reaffirm
the results of previous work, solve new or existing problems, support theorems, or develop
new theories.
A broad definition of research is given by Martyn
Shuttleworth - "In the broadest sense of the word, the
definition of research includes any gathering of data,
information and facts for the advancement of
knowledge."
Steps in conducting research
Research is often conducted using the hourglass model structure of research. The hourglass
model starts with a broad spectrum for research, focusing in on the required information through
the method of the project (like the neck of the hourglass), then expands the research in the form
of discussion and results. The major steps in conducting research are:
Specifying the purpose of research
Determine specific research questions
Specification of a Conceptual framework - Usually a set of hypotheses
Choice of a methodology (for data collection)
Data collection
Analyzing and interpreting the data
Reporting and evaluating research
RESEARCH METHODOLOGY
Research comprises "creative work undertaken on a systematic basis in order to increase the
stock of knowledge, including knowledge of humans, culture and society, and the use of this
stock of knowledge to devise new applications." It is used to establish or confirm facts, reaffirm
the results of previous work, solve new or existing problems, support theorems, or develop
new theories.
A broad definition of research is given by Martyn
Shuttleworth - "In the broadest sense of the word, the
definition of research includes any gathering of data,
information and facts for the advancement of
knowledge."
Steps in conducting research
Research is often conducted using the hourglass model structure of research. The hourglass
model starts with a broad spectrum for research, focusing in on the required information through
the method of the project (like the neck of the hourglass), then expands the research in the form
of discussion and results. The major steps in conducting research are:
Specifying the purpose of research
Determine specific research questions
Specification of a Conceptual framework - Usually a set of hypotheses
Choice of a methodology (for data collection)
Data collection
Analyzing and interpreting the data
Reporting and evaluating research
48
Research method:
Most research can be divided into three different categories; exploratory, descriptive and causal.
Each serves a different end purpose and can only be used in certain ways. In the online survey
world, mastery of all three can lead to sounder insights and greater quality information. Over the
next couple weeks we‘ll be taking a look into all these forms of research and how you can
incorporate each in your organization‘s strategies for improvement and growth as well as
measuring your company‘s level of success.
Descriptive Research
Descriptive research takes up the bulk of online surveying and is considered conclusive in nature
due to its quantitative nature. Unlike exploratory research, descriptive research is preplanned and
structured in design so the information collected can be statistically inferred on a population.
The main idea behind using this type of research is to better define an opinion, attitude, or
behavior held by a group of people on a given subject. Consider your everyday multiple choice
questions. Since there are predefined categories a respondent must choose from, it is considered
descriptive research. These questions will not give the unique insights on the issues like
exploratory research would. Instead, grouping the responses into predetermined choices will
provide statistically inferable data. This allows you to measure the significance of your results on
the overall population you are studying, as well as the changes of your respondent‘s opinions,
attitudes, and behaviors over time.
Data collection:
Data collection is one of the most important stages in conducting a research. You can have the
best research design in the world but if you cannot collect the required data you will be not be
able to complete your project. Data collection is a very demanding job which needs thorough
planning, hard work, patience, perseverance and more to be able to complete the task
successfully. Data collection starts with determining what kind of data required followed by the
selection of a sample from a certain population. After that, you need to use a certain instrument
to collect the data from the selected sample.
Research method:
Most research can be divided into three different categories; exploratory, descriptive and causal.
Each serves a different end purpose and can only be used in certain ways. In the online survey
world, mastery of all three can lead to sounder insights and greater quality information. Over the
next couple weeks we‘ll be taking a look into all these forms of research and how you can
incorporate each in your organization‘s strategies for improvement and growth as well as
measuring your company‘s level of success.
Descriptive Research
Descriptive research takes up the bulk of online surveying and is considered conclusive in nature
due to its quantitative nature. Unlike exploratory research, descriptive research is preplanned and
structured in design so the information collected can be statistically inferred on a population.
The main idea behind using this type of research is to better define an opinion, attitude, or
behavior held by a group of people on a given subject. Consider your everyday multiple choice
questions. Since there are predefined categories a respondent must choose from, it is considered
descriptive research. These questions will not give the unique insights on the issues like
exploratory research would. Instead, grouping the responses into predetermined choices will
provide statistically inferable data. This allows you to measure the significance of your results on
the overall population you are studying, as well as the changes of your respondent‘s opinions,
attitudes, and behaviors over time.
Data collection:
Data collection is one of the most important stages in conducting a research. You can have the
best research design in the world but if you cannot collect the required data you will be not be
able to complete your project. Data collection is a very demanding job which needs thorough
planning, hard work, patience, perseverance and more to be able to complete the task
successfully. Data collection starts with determining what kind of data required followed by the
selection of a sample from a certain population. After that, you need to use a certain instrument
to collect the data from the selected sample.
49
Sources of Data
Generally we can collect data from two sources, primary sources and secondary sources. Data
collected from primary sources are known as primary data and data collected from secondary
sources are called secondary data.
Primary Data
Defining Primary Data in Market Research: Primary data is information that you collect
specifically for the purpose of your research project. An advantage of primary data is that it is
specifically tailored to your research needs. A disadvantage is that it is expensive to obtain.
Primary Data Collection:
1. Interviews:
This is an indirect method of collecting primary data. Here information is not collected directly
from the source but by interviewing persons closely related with the problem. This method is
applied to apprehend culprits in case of theft, murder etc. The information relating to one's
personal life or which the informant hesitates to reveal are better collected by this method. Here
the investigator prepares 'a small list of questions relating to the enquiry. The answers
(information) are collected by interviewing persons well connected with the incident. The
investigator should cross-examine the informants to get correct information.
This method is time saving and involves relatively less cost. The accuracy of the information
largely depends upon the integrity of the investigator. It is desirable that the investigator should
be experienced and capable enough to inspire and create confidence in the informant to collect
accurate data.
2. Questionnaire method:
This is a very commonly used method of collecting primary data. Here information are collected
through a set of questionnaire. A questionnaire is a document prepared by the investigator
containing a set of questions. These questions relate to the problem of enquiry directly or
indirectly. Here first the questionnaires are mailed to the informants with a formal request to
Sources of Data
Generally we can collect data from two sources, primary sources and secondary sources. Data
collected from primary sources are known as primary data and data collected from secondary
sources are called secondary data.
Primary Data
Defining Primary Data in Market Research: Primary data is information that you collect
specifically for the purpose of your research project. An advantage of primary data is that it is
specifically tailored to your research needs. A disadvantage is that it is expensive to obtain.
Primary Data Collection:
1. Interviews:
This is an indirect method of collecting primary data. Here information is not collected directly
from the source but by interviewing persons closely related with the problem. This method is
applied to apprehend culprits in case of theft, murder etc. The information relating to one's
personal life or which the informant hesitates to reveal are better collected by this method. Here
the investigator prepares 'a small list of questions relating to the enquiry. The answers
(information) are collected by interviewing persons well connected with the incident. The
investigator should cross-examine the informants to get correct information.
This method is time saving and involves relatively less cost. The accuracy of the information
largely depends upon the integrity of the investigator. It is desirable that the investigator should
be experienced and capable enough to inspire and create confidence in the informant to collect
accurate data.
2. Questionnaire method:
This is a very commonly used method of collecting primary data. Here information are collected
through a set of questionnaire. A questionnaire is a document prepared by the investigator
containing a set of questions. These questions relate to the problem of enquiry directly or
indirectly. Here first the questionnaires are mailed to the informants with a formal request to
50
answer the question and send them back. For better response the investigator should bear the
postal charges. The questionnaire should carry a polite note explaining the aims and objective of
the enquiry, definition of various terms and concepts used there. Besides this the investigator
should ensure the secrecy of the information as well as the name of the informants, if required.
Success of this method greatly depends upon the way in which the questionnaire is drafted. So
the investigator must be very careful while framing the questions. The questions should be
(I) Short and clear
(ii) Few in number
(iii) Simple and intelligible
(iv) Corroboratory in nature or there should be provision for cross check
(v) Impersonal, non-aggressive type
(vi) Simple alternative, multiple-choice or open-end type
(a) In the simple alternative question type, the respondent has to choose between alternatives
such as ‗Yes or No‘, ‗right or wrong‘ etc.
For example: Is Adam Smith called father of Statistics? Yes/No,
(b) In the multiple choice type, the respondent has to answer from any of the given alternatives.
Example: To which sector do you belong?
(i) Primary Sector
(ii) Secondary Sector
(iii) Tertiary or Service Sector
(c) In the Open-end or free answer questions the respondents are given complete freedom in
answering the questions.
answer the question and send them back. For better response the investigator should bear the
postal charges. The questionnaire should carry a polite note explaining the aims and objective of
the enquiry, definition of various terms and concepts used there. Besides this the investigator
should ensure the secrecy of the information as well as the name of the informants, if required.
Success of this method greatly depends upon the way in which the questionnaire is drafted. So
the investigator must be very careful while framing the questions. The questions should be
(I) Short and clear
(ii) Few in number
(iii) Simple and intelligible
(iv) Corroboratory in nature or there should be provision for cross check
(v) Impersonal, non-aggressive type
(vi) Simple alternative, multiple-choice or open-end type
(a) In the simple alternative question type, the respondent has to choose between alternatives
such as ‗Yes or No‘, ‗right or wrong‘ etc.
For example: Is Adam Smith called father of Statistics? Yes/No,
(b) In the multiple choice type, the respondent has to answer from any of the given alternatives.
Example: To which sector do you belong?
(i) Primary Sector
(ii) Secondary Sector
(iii) Tertiary or Service Sector
(c) In the Open-end or free answer questions the respondents are given complete freedom in
answering the questions.
51
The questionnaire method is very economical in terms of time, energy and money. The method is
widely used when the scope of enquiry is large. Data collected by this method are not affected by
the personal bias of the investigator. However the accuracy of the information depends on the
cooperation and honesty of the informants. This method can be used only if the informants are
cooperative, conscious and educated. This limits the scope of the method.
Information is like raw materials or inputs in an enquiry. The result of the enquiry basically
depends on the type of information used. Primary data can be collected by employing any of the
above methods. The investigator should make a rational choice of the methods to be used for
collecting data. Because collection of data forms the beginning of the statistical enquiry.
Secondary Data
Secondary data is data collected by someone other than the user. Common sources of secondary
data for social include censuses, organizational records and data collected through qualitative
methodologies or qualitative research. Primary data, by contrast, are collected by the investigator
conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition, analysts of
social and economic change consider secondary data essential, since it is impossible to conduct a
new survey that can adequately capture past change and/or developments.
Data Collection Instrument: Questionnaire (Close Ended Questions)
This method acts as a great source or a facility for the collection of the data from the diverse and
scattered group of people. A questionnaire consists of a variety of the questions printed or typed
in a definite order on a form – which are mailed further to the respondents. The respondent has to
answer these questions on his own.
The main function or the objective of the questionnaire is to collect data from the respondents,
who are generally scattered in a vast diverse area. This method also helps in the collection of
reliable and dependable data.
The questionnaire method is very economical in terms of time, energy and money. The method is
widely used when the scope of enquiry is large. Data collected by this method are not affected by
the personal bias of the investigator. However the accuracy of the information depends on the
cooperation and honesty of the informants. This method can be used only if the informants are
cooperative, conscious and educated. This limits the scope of the method.
Information is like raw materials or inputs in an enquiry. The result of the enquiry basically
depends on the type of information used. Primary data can be collected by employing any of the
above methods. The investigator should make a rational choice of the methods to be used for
collecting data. Because collection of data forms the beginning of the statistical enquiry.
Secondary Data
Secondary data is data collected by someone other than the user. Common sources of secondary
data for social include censuses, organizational records and data collected through qualitative
methodologies or qualitative research. Primary data, by contrast, are collected by the investigator
conducting the research.
Secondary data analysis saves time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, provides larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition, analysts of
social and economic change consider secondary data essential, since it is impossible to conduct a
new survey that can adequately capture past change and/or developments.
Data Collection Instrument: Questionnaire (Close Ended Questions)
This method acts as a great source or a facility for the collection of the data from the diverse and
scattered group of people. A questionnaire consists of a variety of the questions printed or typed
in a definite order on a form – which are mailed further to the respondents. The respondent has to
answer these questions on his own.
The main function or the objective of the questionnaire is to collect data from the respondents,
who are generally scattered in a vast diverse area. This method also helps in the collection of
reliable and dependable data.
52
According to Bogardus, ―a questionnaire is a list of the questions sent to a number
of persons to answer. It secures the standardized results that can be tabulated and
also treated statistically.‖
Advantages of the Questionnaire
1. Requires less skill.
2. Less training is needed.
3. Cheaper in nature.
4. Also impersonal in nature.
5. Pressure is less.
6. Anonymity.
Disadvantages of the Questionnaire
1. Returns are low if compared to the other methods used for the collection of the data.
2. Response is also less.
3. Less flexible in working.
4. Occurrence of errors.
5. Less reliable.
6. Sometimes answers obtained can be wrong.
7. Not efficient in the depth – problems.
SAMPLING
A sample: A subset or some part of a larger population representative of the entire population A
sample is drawn using either probability or non probability sampling procedure Non-probability
sampling is typically applied in exploratory research. It is used when data needs to be collected
speedily with little cost. A population element: The individual participant or object to be
measured.
SAMPLING DESIGN
According to Bogardus, ―a questionnaire is a list of the questions sent to a number
of persons to answer. It secures the standardized results that can be tabulated and
also treated statistically.‖
Advantages of the Questionnaire
1. Requires less skill.
2. Less training is needed.
3. Cheaper in nature.
4. Also impersonal in nature.
5. Pressure is less.
6. Anonymity.
Disadvantages of the Questionnaire
1. Returns are low if compared to the other methods used for the collection of the data.
2. Response is also less.
3. Less flexible in working.
4. Occurrence of errors.
5. Less reliable.
6. Sometimes answers obtained can be wrong.
7. Not efficient in the depth – problems.
SAMPLING
A sample: A subset or some part of a larger population representative of the entire population A
sample is drawn using either probability or non probability sampling procedure Non-probability
sampling is typically applied in exploratory research. It is used when data needs to be collected
speedily with little cost. A population element: The individual participant or object to be
measured.
SAMPLING DESIGN
53
There are three main stages in sampling design and it should minimize the error that may occur
due to the sampling process 1: Should the study gather information from a sample or a census? 2:
What type of sampling approach? 3) How about the appropriate size of the sample?
Sampling Methods can be classified into one of two categories:
Probability Sampling: Sample has a known probability of being selected
Non-probability Sampling: Sample does not have known probability of being selected as in
convenience or voluntary response surveys.
Probability Sampling
In probability sampling it is possible to both determine which sampling units belong to which
sample and the probability that each sample will be selected. Simple Random Sampling (SRS)
Stratified Sampling
Cluster Sampling
Systematic Sampling
Multistage Sampling (in which some of the methods above are combined in stages)
Data Analysis Techniques:
Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data.
The data analysis techniques used in this project are Pie Diagrams, & Bar Charts.
There are three main stages in sampling design and it should minimize the error that may occur
due to the sampling process 1: Should the study gather information from a sample or a census? 2:
What type of sampling approach? 3) How about the appropriate size of the sample?
Sampling Methods can be classified into one of two categories:
Probability Sampling: Sample has a known probability of being selected
Non-probability Sampling: Sample does not have known probability of being selected as in
convenience or voluntary response surveys.
Probability Sampling
In probability sampling it is possible to both determine which sampling units belong to which
sample and the probability that each sample will be selected. Simple Random Sampling (SRS)
Stratified Sampling
Cluster Sampling
Systematic Sampling
Multistage Sampling (in which some of the methods above are combined in stages)
Data Analysis Techniques:
Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data.
The data analysis techniques used in this project are Pie Diagrams, & Bar Charts.
54
Results & Interpretations
ITC claims of have segmenting the market with its brand portfolio offering Fiama Di Wills,
Vivel & Superia, each catering to a different segment. However the findings are quite different!
Most of the stores still do not provide ITC soaps.
After surveying around 14 shops in Khar & Bandra (W), the results were as such:
Name of the shop:
1. Babulal & Co. General Stores
Soap with the Maximum
Selling
Lux
Which Variant? Strawberry & Cream(Pink Lux)
Monthly Stock 4-5 dozens
The owner here says, Lux is the most selling soap in his store & is popular among
all the classes. He says the most selling variant is the Pink Lux, i.e. Strawberry &
Cream. He orders at least 4-5 dozens of soap on a monthly basis out of which 3
dozens are LUX soaps, followed by Lifebuoy, Pears, and Cinthol.
2. Sachin Stores
Soap with the Maximum Selling Lux
Which Variant? 1. Strawberry & Cream
2. Creamy White
Monthly Stock 6 dozens
The Owner here points out to the fact that Lux is the most selling brand & has 2
variants which are sold out more, Strawberry & Cream, & Creamy White. He also
offers Fiama Di Wills & Vivel, but points out the fact it still isn‘t catching up. He
also says Lux is the most bought product because of its advertising!
Results & Interpretations
ITC claims of have segmenting the market with its brand portfolio offering Fiama Di Wills,
Vivel & Superia, each catering to a different segment. However the findings are quite different!
Most of the stores still do not provide ITC soaps.
After surveying around 14 shops in Khar & Bandra (W), the results were as such:
Name of the shop:
1. Babulal & Co. General Stores
Soap with the Maximum
Selling
Lux
Which Variant? Strawberry & Cream(Pink Lux)
Monthly Stock 4-5 dozens
The owner here says, Lux is the most selling soap in his store & is popular among
all the classes. He says the most selling variant is the Pink Lux, i.e. Strawberry &
Cream. He orders at least 4-5 dozens of soap on a monthly basis out of which 3
dozens are LUX soaps, followed by Lifebuoy, Pears, and Cinthol.
2. Sachin Stores
Soap with the Maximum Selling Lux
Which Variant? 1. Strawberry & Cream
2. Creamy White
Monthly Stock 6 dozens
The Owner here points out to the fact that Lux is the most selling brand & has 2
variants which are sold out more, Strawberry & Cream, & Creamy White. He also
offers Fiama Di Wills & Vivel, but points out the fact it still isn‘t catching up. He
also says Lux is the most bought product because of its advertising!
55
3. Mahavir Stores
Soap with the Maximum Selling Lux
Which Variant? 1. Strawberry & Cream
2. Creamy White
Monthly Stock 5 dozens
The owner at this store proudly says Lux is the most sold out soap, and says
the 100gms Strawberry & Cream, Creamy White are the most preferred
variants. There are no Itc Soaps here for display.
4. Sundaram Stores
Soap with the Maximum Selling 1. Lux
2. Pears
Which Variant? Strawberry & Cream
Weekly Stock 24 soaps
This being the only store at Pali Nibbana, is a shop with all high end
products, He says the most sold soaps are Lux followed by Pears. He also
says Lux Shower gels along with Palmolive Shower Gels are quite popular
with the upper middle class residing at Pali Hill. He buys his soaps on a
weekly basis, 24 soaps being the minimum quantity. Even after being
located in such a posh area, there is no display of Itc soaps; he says Fiama Di
Wills is often enquired for but he yet has to decide if he wants to place them
at his store.
3. Mahavir Stores
Soap with the Maximum Selling Lux
Which Variant? 1. Strawberry & Cream
2. Creamy White
Monthly Stock 5 dozens
The owner at this store proudly says Lux is the most sold out soap, and says
the 100gms Strawberry & Cream, Creamy White are the most preferred
variants. There are no Itc Soaps here for display.
4. Sundaram Stores
Soap with the Maximum Selling 1. Lux
2. Pears
Which Variant? Strawberry & Cream
Weekly Stock 24 soaps
This being the only store at Pali Nibbana, is a shop with all high end
products, He says the most sold soaps are Lux followed by Pears. He also
says Lux Shower gels along with Palmolive Shower Gels are quite popular
with the upper middle class residing at Pali Hill. He buys his soaps on a
weekly basis, 24 soaps being the minimum quantity. Even after being
located in such a posh area, there is no display of Itc soaps; he says Fiama Di
Wills is often enquired for but he yet has to decide if he wants to place them
at his store.
56
5. Amar Stores
Soap with the Maximum Selling 1.Lux
2.Lifebuoy
Which Variant? Strawberry & Cream
Monthly Stock 6-7 dozens
The owner here points out that Lux & Lifebuoy are the most sold soaps; he
says there are no Itc products at his store. He also points out that The
Strawberry & Cream is the most favored Lux, followed by Lifebuoy.
6. Choice Supermarkets
Soap with the Maximum Selling 1.Lux
2.Pears
Which Variant? Creamy White
Monthly Stock 72Soaps(Lux) &
36soaps(Pears)
This shop was the biggest one strategically placed at the centre of Pali market, the
owner here says that Lux & Pears are the most bought ones. He says Palmolive
Shower Gels are bought on a huge scale. He keeps Fiama Di Wills at the store, he
also shares they get a 2% discounting scheme from Lux.
5. Amar Stores
Soap with the Maximum Selling 1.Lux
2.Lifebuoy
Which Variant? Strawberry & Cream
Monthly Stock 6-7 dozens
The owner here points out that Lux & Lifebuoy are the most sold soaps; he
says there are no Itc products at his store. He also points out that The
Strawberry & Cream is the most favored Lux, followed by Lifebuoy.
6. Choice Supermarkets
Soap with the Maximum Selling 1.Lux
2.Pears
Which Variant? Creamy White
Monthly Stock 72Soaps(Lux) &
36soaps(Pears)
This shop was the biggest one strategically placed at the centre of Pali market, the
owner here says that Lux & Pears are the most bought ones. He says Palmolive
Shower Gels are bought on a huge scale. He keeps Fiama Di Wills at the store, he
also shares they get a 2% discounting scheme from Lux.
57
7. Sony Medical & Supermarket
Soap with the Maximum Selling 1.Lux
2.Medimix
Which Variant? Strawberry & Cream
Monthly Stock 5-6 dozens
The owner here does offer Fiama Di Wills & Vivel, and says that Fiama Di
Wills Soaps are popular over Vivel soaps, but ask him which the most sold
ones are, he quickly says Lux! Woh 100 grams ka Pink wala Lux.
8. Gala Stores
Soap with the Maximum Selling Lux
Which Variant? Strawberry & Cream
Monthly Stock 6 dozens
Gala Stores has all the high end brands, Ask him, which soaps are the most sold
out, pat comes the reply Lux. He also offers Fiama Di Wills & Vivel. His monthly
stock is of 6 dozens soap; ask if Itc provides any discounting schemes, nothing!
7. Sony Medical & Supermarket
Soap with the Maximum Selling 1.Lux
2.Medimix
Which Variant? Strawberry & Cream
Monthly Stock 5-6 dozens
The owner here does offer Fiama Di Wills & Vivel, and says that Fiama Di
Wills Soaps are popular over Vivel soaps, but ask him which the most sold
ones are, he quickly says Lux! Woh 100 grams ka Pink wala Lux.
8. Gala Stores
Soap with the Maximum Selling Lux
Which Variant? Strawberry & Cream
Monthly Stock 6 dozens
Gala Stores has all the high end brands, Ask him, which soaps are the most sold
out, pat comes the reply Lux. He also offers Fiama Di Wills & Vivel. His monthly
stock is of 6 dozens soap; ask if Itc provides any discounting schemes, nothing!
58
9. Corner Stores
Soap with the Maximum Selling 1.Lux
2.Lifebuoy
Which Variant? Strawberry & Cream
Weekly Stock 30soaps (Lux)
The shop is placed at a very strategic location, in the centre of Union Park, & is at
the corner, the owner here offers Vivel, but no Fiama Di Wills, and he says Lux is
the most sold soap followed by Lifebuoy.
10. N.m Stores
Soap with the Maximum Selling Lux
Which Variant? Creamy White
Monthly Stock 7 dozens
The owner here does offer Fiama Di Wills & Vivel, but says Lux is the most
sold out soap. Ask him if Itc provides with discounting schemes & he says
no, nothing as such.
9. Corner Stores
Soap with the Maximum Selling 1.Lux
2.Lifebuoy
Which Variant? Strawberry & Cream
Weekly Stock 30soaps (Lux)
The shop is placed at a very strategic location, in the centre of Union Park, & is at
the corner, the owner here offers Vivel, but no Fiama Di Wills, and he says Lux is
the most sold soap followed by Lifebuoy.
10. N.m Stores
Soap with the Maximum Selling Lux
Which Variant? Creamy White
Monthly Stock 7 dozens
The owner here does offer Fiama Di Wills & Vivel, but says Lux is the most
sold out soap. Ask him if Itc provides with discounting schemes & he says
no, nothing as such.
59
11. Dhanraj Stores
Soap with the Maximum Selling Lux
Which Variant? Creamy White
Monthly Stock 5-6 dozens
The owner says undoubtedly, Lux is the most sold one! He doesn‘t offer Fiama Di
Wills or Vivel. He says the Creamy White is the most sold variant in Lux.
12. The Beauty Hub
Soap with the Maximum Selling 1.Himalaya
2.Lux
Which Variant? Creamy White
Strawberry & Cream
Monthly Stock 8 dozens
This is a high end shop with all brands including the branded ones, he offers only
Fiama Di Wills along with his other branded soaps & cosmetics! Ask him which
are the most bought soaps in his store he says Himalaya followed by Lux.
11. Dhanraj Stores
Soap with the Maximum Selling Lux
Which Variant? Creamy White
Monthly Stock 5-6 dozens
The owner says undoubtedly, Lux is the most sold one! He doesn‘t offer Fiama Di
Wills or Vivel. He says the Creamy White is the most sold variant in Lux.
12. The Beauty Hub
Soap with the Maximum Selling 1.Himalaya
2.Lux
Which Variant? Creamy White
Strawberry & Cream
Monthly Stock 8 dozens
This is a high end shop with all brands including the branded ones, he offers only
Fiama Di Wills along with his other branded soaps & cosmetics! Ask him which
are the most bought soaps in his store he says Himalaya followed by Lux.
60
13. G.K medical & General Stores
Soap with the Maximum Selling 1.Pears
2.Lux
Which Variant? Creamy White
Monthly Stock 4-5 dozens
This store offers Fiama Di Wills along with other brands such as Lux,
Medimix, Pears, Dove, and Lifebuoy etc. The most sold ones in his store are
Pears followed by Lux.
14. Willingdon Stores
Soap with the Maximum Selling 1.Lux
2.Dove
3.Pears
Which Variant? Strawberry & Cream
Weekly Stock 30soaps (Lux)
This shop is a high end one having only the upper middle class as his
segment. He offers all branded products; ask him which is the most selling
soap at his store, Lux followed by Dove & then Pears. He offers Fiama Di
Wills & Vivel, but also points out Itc have a very bad service & they are not
happy with Itc. They get discounting offers from Lux & Dove; he states that
even Itc should follow with such schemes.
13. G.K medical & General Stores
Soap with the Maximum Selling 1.Pears
2.Lux
Which Variant? Creamy White
Monthly Stock 4-5 dozens
This store offers Fiama Di Wills along with other brands such as Lux,
Medimix, Pears, Dove, and Lifebuoy etc. The most sold ones in his store are
Pears followed by Lux.
14. Willingdon Stores
Soap with the Maximum Selling 1.Lux
2.Dove
3.Pears
Which Variant? Strawberry & Cream
Weekly Stock 30soaps (Lux)
This shop is a high end one having only the upper middle class as his
segment. He offers all branded products; ask him which is the most selling
soap at his store, Lux followed by Dove & then Pears. He offers Fiama Di
Wills & Vivel, but also points out Itc have a very bad service & they are not
happy with Itc. They get discounting offers from Lux & Dove; he states that
even Itc should follow with such schemes.
61
For the research purpose on Soaps, I also did a Questionnaire Method, where I got
50 respondents to my questionnaire.
Results from Questionnaire Method:
Out of which,
20% were Below 18,
50% were in the age group of 18-35,
28% were in the age group of 35-55 &
2% were Above 55
For the research purpose on Soaps, I also did a Questionnaire Method, where I got
50 respondents to my questionnaire.
Results from Questionnaire Method:
Out of which,
20% were Below 18,
50% were in the age group of 18-35,
28% were in the age group of 35-55 &
2% were Above 55
62
When asked to choose which are the more important features of soap
apart from Cleaning Ability, the responses were as such:
44.9% respondents said it was Lathering Capacity of soap.
36.7% respondents said it was Skin Softening Ability of soap.
12.2% respondents said it was The Fragrance of soap.
6.1% respondents said it was Affordability.
When asked to choose which are the more important features of soap
apart from Cleaning Ability, the responses were as such:
44.9% respondents said it was Lathering Capacity of soap.
36.7% respondents said it was Skin Softening Ability of soap.
12.2% respondents said it was The Fragrance of soap.
6.1% respondents said it was Affordability.
63
When asked about their Current Brand of Bathing Soap, the responses
were as such:
Most of the respondents used Lux, and then there was Dove, Then
Fiama Di Wills, & Pears, Johnsons Baby, Medimix followed later.
When asked about their Current Brand of Bathing Soap, the responses
were as such:
Most of the respondents used Lux, and then there was Dove, Then
Fiama Di Wills, & Pears, Johnsons Baby, Medimix followed later.
64
They were asked if they were aware of Liquid Body Wash as a bathing
option, If Yes, What were the reasons for not using it?
Do not feel the need for change scored the highest reason for not using
Liquid Body wash. While some felt Liquid Body wash is a feminine
product, while some stated it‘s highly priced, where some said the entire
family will not like using it.
They were asked if they were aware of Liquid Body Wash as a bathing
option, If Yes, What were the reasons for not using it?
Do not feel the need for change scored the highest reason for not using
Liquid Body wash. While some felt Liquid Body wash is a feminine
product, while some stated it‘s highly priced, where some said the entire
family will not like using it.
65
When asked from where did they find out about new bathing products in
the market?
84% said TV Ads
14% said they Explore the shelves to find out new products
2% said they find out about new bathing products from the Shopkeeper.
When asked from where did they find out about new bathing products in
the market?
84% said TV Ads
14% said they Explore the shelves to find out new products
2% said they find out about new bathing products from the Shopkeeper.
66
Recommendations:
In line with ITC's aspiration to be India's premier FMCG Company, recognized for its world-
class quality and enduring consumer trust, ITC forayed into the Personal Care business in July
2005. In the short period since its entry, ITC has already launched an array of brands, each of
which offers a unique and superior value proposition to discerning consumers. Anchored on
extensive consumer research and product development, ITC's personal care portfolio brings
world-class products with clearly differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel', "Engage"
and ‘Superia‘ brands has received encouraging consumer response and is being progressively
extended nationally.
Itc has segmented its market for different classes, but the research shows
some alarming points.
Even when Itc‘s Vivel has captivated the market, it still has a lot of
competition from Lux.
Vivel needs to buck up on its advertisements, even after having a
brand ambassador like Kareena Kapoor; it still has a very slow
growth & will take time to compete with Lux, Pears.
After surveying different shops. It came to my notice that Lux &
Dove offers discounting schemes to shopkeepers, whereas Itc
doesn‘t, so it needs to follow that.
Also many shopkeepers complained about Itc having bad services,
so it can communicate with the wholesalers & retailers & work on
it.
Recommendations:
In line with ITC's aspiration to be India's premier FMCG Company, recognized for its world-
class quality and enduring consumer trust, ITC forayed into the Personal Care business in July
2005. In the short period since its entry, ITC has already launched an array of brands, each of
which offers a unique and superior value proposition to discerning consumers. Anchored on
extensive consumer research and product development, ITC's personal care portfolio brings
world-class products with clearly differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel', "Engage"
and ‘Superia‘ brands has received encouraging consumer response and is being progressively
extended nationally.
Itc has segmented its market for different classes, but the research shows
some alarming points.
Even when Itc‘s Vivel has captivated the market, it still has a lot of
competition from Lux.
Vivel needs to buck up on its advertisements, even after having a
brand ambassador like Kareena Kapoor; it still has a very slow
growth & will take time to compete with Lux, Pears.
After surveying different shops. It came to my notice that Lux &
Dove offers discounting schemes to shopkeepers, whereas Itc
doesn‘t, so it needs to follow that.
Also many shopkeepers complained about Itc having bad services,
so it can communicate with the wholesalers & retailers & work on
it.
67
Conclusion:
Using a six-pillar strategy that straddles consumer in sighting to product
development and packaging, ITC has created a powerful personal care
portfolio with five brands across multiple categories and price-points
The Six Success Mantras!
1. SEGMENTATION
Creating brands from scratch with no history and lineage, ITC used clear
segmentation across its five product lines and the target audience, each brand was
meant for a different audience.
2. GROUP SYNERGY
Once the five products were created and communication strategies set, ITC
leveraged its properties like hotels, foods and apparel store network to retail these
brands.
3. COMMUNICATION STRATEGY
Like HUL, these brands sport Western names, and different communication.
Essenza & Fiama, meant for the elite, have English communication, while Vivel &
Superia use Hindi.
4. BRAND EXTENSIONS
A selective extension as it doesn‘t want to confuse consumers with too many
irrelevant brand extension & sub-brands. The Essenza range is the only exception.
Conclusion:
Using a six-pillar strategy that straddles consumer in sighting to product
development and packaging, ITC has created a powerful personal care
portfolio with five brands across multiple categories and price-points
The Six Success Mantras!
1. SEGMENTATION
Creating brands from scratch with no history and lineage, ITC used clear
segmentation across its five product lines and the target audience, each brand was
meant for a different audience.
2. GROUP SYNERGY
Once the five products were created and communication strategies set, ITC
leveraged its properties like hotels, foods and apparel store network to retail these
brands.
3. COMMUNICATION STRATEGY
Like HUL, these brands sport Western names, and different communication.
Essenza & Fiama, meant for the elite, have English communication, while Vivel &
Superia use Hindi.
4. BRAND EXTENSIONS
A selective extension as it doesn‘t want to confuse consumers with too many
irrelevant brand extension & sub-brands. The Essenza range is the only exception.
68
5. BRAND AMBASSADORS
ITC uses brand ambassadors strategically. While for the Fiama and Vivel ranges it
has 5roped in brand ambassadors, for the Superia & Essenza ranges the key TG is
the real king.
6. PACKAGING
Since packaging plays a key role in product differentiation, ITC uses it to the hilt.
It has taken foreign experts help to make its products stand out from competition.
5. BRAND AMBASSADORS
ITC uses brand ambassadors strategically. While for the Fiama and Vivel ranges it
has 5roped in brand ambassadors, for the Superia & Essenza ranges the key TG is
the real king.
6. PACKAGING
Since packaging plays a key role in product differentiation, ITC uses it to the hilt.
It has taken foreign experts help to make its products stand out from competition.
69
Limitations of the Project:
As this is an academic project, the time period was short & the
research is restricted only to Mumbai Region.
Also due to the time constraint, I have done questionnaire method
with 50 people & have covered 14 shopkeepers for an analysis of
the Soap buying behavior.
Limitations of the Project:
As this is an academic project, the time period was short & the
research is restricted only to Mumbai Region.
Also due to the time constraint, I have done questionnaire method
with 50 people & have covered 14 shopkeepers for an analysis of
the Soap buying behavior.
70
Bibliography:
Marketing management by Philip Kotler.
The New Age Marketing Book. (Various Authors)
E-newspapers
The Times Of India
The Business Standard
Webliography
http://www.soaphistory.net/
http://www.abhinavjournal.com/images/Commerce_&_Management/Nov12/
16.pdf
http://www.exchange4media.com/marketing/the-vivel-soap-
opera_42108.html
http://www.mbaofficial.com/mba-courses/research-methodology
http://www.itcportal.com/about-itc/shareholder-value/ITC-Corporate-
Presentation.pdf
http://www.yourarticlelibrary.com/marketing/marketing-segmentation-
definition-criteria-and-other-details
http://www.itcportal.com/businesses/fmcg/personal-care-products/essenza-
di-wills.aspx
http://www.itcportal.com/media-centre/press-reports-
content.aspx?id=1321&type=C&news=ITC-eyes-better-margins-by-riding-
up-the-price-chain-with-Fiama-Di-Wills
http://www.business-standard.com/article/management/segment-and-grow-
111052300013_1.html
Bibliography:
Marketing management by Philip Kotler.
The New Age Marketing Book. (Various Authors)
E-newspapers
The Times Of India
The Business Standard
Webliography
http://www.soaphistory.net/
http://www.abhinavjournal.com/images/Commerce_&_Management/Nov12/
16.pdf
http://www.exchange4media.com/marketing/the-vivel-soap-
opera_42108.html
http://www.mbaofficial.com/mba-courses/research-methodology
http://www.itcportal.com/about-itc/shareholder-value/ITC-Corporate-
Presentation.pdf
http://www.yourarticlelibrary.com/marketing/marketing-segmentation-
definition-criteria-and-other-details
http://www.itcportal.com/businesses/fmcg/personal-care-products/essenza-
di-wills.aspx
http://www.itcportal.com/media-centre/press-reports-
content.aspx?id=1321&type=C&news=ITC-eyes-better-margins-by-riding-
up-the-price-chain-with-Fiama-Di-Wills
http://www.business-standard.com/article/management/segment-and-grow-
111052300013_1.html
71
Appendix:
Questionnaire
Name:
1. Please Mention your Age
Below 18
18-35
35-55
Above 55
2. Mention Your Gender
Male
Female
3. Please rate the following features of Soap in terms of how important each of
them is to you.
Very Important Important Neutral Less Important
Cleaning
Ability
Fragrance
Lathering
capacity
Affordability
Appendix:
Questionnaire
Name:
1. Please Mention your Age
Below 18
18-35
35-55
Above 55
2. Mention Your Gender
Male
Female
3. Please rate the following features of Soap in terms of how important each of
them is to you.
Very Important Important Neutral Less Important
Cleaning
Ability
Fragrance
Lathering
capacity
Affordability
72
Skin Softening
Ability
4. What Kind of Bathing Soap do you currently use?
Bar Soap
Liquid Body Wash/Gel
5. Are you aware of liquid body wash as a bathing soap option?
Yes
No
6. If Yes, What are the reasons for not using Liquid Body Wash currently (Choose
more than one if applicable)
High Price
Lack of availability
Do not feel the need for
change
Entire Family will not
like using it
Skin Softening
Ability
4. What Kind of Bathing Soap do you currently use?
Bar Soap
Liquid Body Wash/Gel
5. Are you aware of liquid body wash as a bathing soap option?
Yes
No
6. If Yes, What are the reasons for not using Liquid Body Wash currently (Choose
more than one if applicable)
High Price
Lack of availability
Do not feel the need for
change
Entire Family will not
like using it
73
It‘s a feminine product
Poor Cleaning Ability
7. Where do you find out about new bathing products in the market?
Newspaper Ads
TV Ads
Hoardings & Banners
From the Shopkeeper
Banners/Ads at the Store
Explore the Shelves to find
out new products
8. Who goes to buy the Bathing Soap?
My Parent or Wife/Husband
Myself
Domestic Helpers
9. You bought your Current Brand Because?
Celebrities Endorsers
It‘s a feminine product
Poor Cleaning Ability
7. Where do you find out about new bathing products in the market?
Newspaper Ads
TV Ads
Hoardings & Banners
From the Shopkeeper
Banners/Ads at the Store
Explore the Shelves to find
out new products
8. Who goes to buy the Bathing Soap?
My Parent or Wife/Husband
Myself
Domestic Helpers
9. You bought your Current Brand Because?
Celebrities Endorsers
74
Low Price
Availability At Store
Out of Habit
10. Do you get influenced by TV Ads or Celebrity Brand Endorsers & then buy the
Soap?
Yes
No
11. Which is your Current Brand of Bathing Soap?
Cinthol
Vivel
Lux
Pears
Dove
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10. Do you get influenced by TV Ads or Celebrity Brand Endorsers & then buy the
Soap?
Yes
No
11. Which is your Current Brand of Bathing Soap?
Cinthol
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Lux
Pears
Dove
Hamam
Fiama
Johnson‘s Baby
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