Acknowledgement

Apart from the efforts put by us, the success of any project depends largely on the encouragement and guidelines of many others. We take this opportunity to express gratitude to the people who have been instrumental in the successful completion of this project. We would like to show our greatest appreciation to Mr. Adithya Krishnamoorthy, Assistant Manager, ITC, Pune. He guided us about marketing channel details and ITC s communication strategy for Fiama Di Wills. Without his encouragement and guidance this project would not have materialized. We took support from ITC s branch office, Lucknow. The information about local sales force and distributor channels received from Mr. Anoop Mishra, Area Executive, ITC and Mr. Srihari KR, Assistant Manager, ITC was instrumental in understanding the operations of the distribution network of Fiama Di Wills. We sincerely thank them for their valuable time and support.

About ITC
ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 19 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing in enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'eChoupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavours to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 3, 72,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."

ITC shampoo brands

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

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

Vivel Shine & Glow is suitable for dull to normal hair and is enriched with Green Tea Extract and Conditioners. It adds shine to hair. Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra Conditioners and Soya Protein. It makes hair soft and fragrant. Vivel Volume & Bounce is suitable for oily to normal hair and contains Jojoba Oil and Conditioners. It adds volume and bounce to hair. The product portfolio was further enhanced with the launch of Ultrapro anti-dandruff shampoo under the umbrella brand Vivel in December 2008. Ultrapro promises to fight dandruff twice as effectively while also providing care for hair through the plus plus benefits of Nourishment and Moisturisation.

2.

Superia The Superia range 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. Superia shampoos with triple conditioners and natural ingredients bring a natural shine to hair. Superia shampoos are available in two variants:

y y

Shiny Black with Triple Conditioners and the natural goodness of Hibiscus & Brahmi extracts. Vibrant Green with Triple Conditioners and the natural goodness of Amla & Arnica extracts. Another addition to the Superia shampoo portfolio, Superia Maxi Protect Active Health shampoo contains Dandruff Fighter along with Vitamins & Soya Protein. It fights multiple types of dandruff causing germs and leaves hair & scalp feeling clean & healthy.

3. Fiama Di Wills In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products comprising shampoos, conditioner, shower gels and bathing bar. The Fiama Di Wills range combines the goodness of nature and science, providing gentle and effective care. 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. The fragrances, aesthetics and packaging have been developed in collaboration with European specialists. Fiama Di Wills products are targeted at the young, modern, aware customers who are confident of themselves and seek indulgences that make them feel alive and beautiful. The range combines exotic naturals like Sage, Watercress, Magnolia blossoms and the best of contemporary science like Hydro Restorative System and Cuticle Restore Technology to make the consumer feel beautiful, today, tomorrow. Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc., USA, offer a range of five variants. Each of these is designed to deliver a specific hair benefit to the consumer:

y y y y y

Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo suitable for regular use. Aqua Balance (with extracts of Magnolia Blossoms & Watercress) is a gentle moisturizing shampoo ideal for dry, dull hair. Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampoo ideal for thin, limp hair. Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth, silky and strong and is ideal for weak, damaged hair. Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny and manageable, easy to style and is ideal for dull to normal hair. Each of these shampoos can be complemented with Fiama Di Wills Polishing Drops conditioner. This gentle conditioner enriched with Avocado Oil and Burdock extract promises to make hair shiny, soft and smooth. It also gives the additional benefits of UV protection as it contains Sunflower Seed extract, which is a natural UV absorber. Launched in September 2010, the Fiama Di Wills Anti-Hairfall Shampoo is unique as it offers consumers the goodness of Brazil Nut, found in the Amazon Forests and the effectiveness of science with the Hair restore Technology. Brazil Nut, is known to seal in hair moisture giving it shine and a silky smooth texture. It also helps renew dry and lifeless hair. The Hair Restore Technology, developed at the ITC R&D Centre, helps repair cuticles and restore the protective lipid layer to reduce further damage. This strengthens hair and

reduces hair fall due to breakage. The Anti-hairfall Conditioner also enriched with Brazil Nut extracts and the hair restore technology gives best results when used with Fiama Di Wills Anti Hairfall Shampoo.

Evaluation Criteria
Out of the above mentioned brands, Fiama di wills is our chosen brand. The basis on which information has been gathered either from the company personnel or ITC s distribution network is listed below:-. Channel strategy: Examining the extent to which the current channel performs the following functions: 1. 2. 3. 4. Promoting (Push) the product to the next level or end consumers. Stocking the products (This is to reduce chances of stock-outs) Providing credit to customers (Wholesaler/retailers/ end-customers) Gathering and passing on information related to changes in customer needs or competitive activities.

Examining the channels also on the following criteria: 1. How effective is the option in increasing sales? Are they able to achieve the sales they planned? 2. At what cost? (cost for 1 Rupee of sale.) What is the cost involved? 3. Does the channel cooperate in promoting certain brands/ products, new launches, sales promotion schemes? 4. Do they undercut and sell below MRP? Logistics: The logistics used is answered by the following questions: 1. How are the orders placed by customers (dealers/ retail chains) processed? Is the method efficient or does it results in delays? [stock out situation if order not processed fast] 2. Where are the stock points (warehouses)? [no of warehouses] 3. What is the stocking pattern (How much stocked)? 4. How are the goods transported? The logistics are captured by the above activities and the evaluation of the activity is on 1. The option that provides the desired service levels, i.e. desired frequency at which retailers are serviced (frequency of stocking etc). 2. At Lower costs Sales force design: Sales force objective: Understanding the following: 1. The extent to which the sales force are required to persuade dealers/ retailers to buy/ stock products, cooperate on sales promotion schemes

2. 3. 4. 5. 6.

Indentifying any problems faced by dealers and rectifying them Gathering information on consumer preferences or changes in competitive activity Searching for new dealers/ retailers How are the sales force organized? Is it by geography or by products or by markets? What is the proportion of salary to incentive scheme of average salesman take home?

Communication Questions to examine the fit between context and communication objective: 1. Is the objective of communication to create brand awareness or is it to persuade and create a favourable attitude towards the product? 2. Is this a new brand and therefore the communication is part of a launch campaign or is it an already existing brand offering for this product-market and the communication designed for such a context? Issues related to Message: 1. Does the message use informational appeal or transformational appeal? 2. If informational appeal is used, is conclusion drawn or not, is it one -sided or two sided argument, what is the order in which argument is presented? 3. Does the approach appear correct given the level of audience education and their views on the information or message? 4. If transformational appeal is used, does it use negative appeal like fear etc or positive appeal like humour, love, pride etc.? 5. Does the above message reflect a distinct advantage over competing brands and does the target segment value this benefit? (PoD ) 6. Does the message use attractive and popular source to deliver the message? Is it an expert source, likable source or trustworthy? Issues related to Media: 1. What media is used for communication? 2. Is the media appropriate given the involvement level of the product including the price, the number of consumers to be reached and their geographical spread, media habits and the influence on them in their purchase decision for such products? 3. The media is therefore to be examined on its effectiveness in communication and also its cost (cost of reaching a 1000 consumers).

Information about Distribution and Communication Strategy

Who is the target segment for Fiama Di Wills shampoo? Fiama Di Wills is a premium range of personal care products comprising shampoos, conditioner, shower gels and bathing bar. It targets the premium segment. What is the positioning of Fiama Di Wills shampoo? This shampoo, which is a premium beauty product, had been initially positioned as a beauty product, then they had variants of the same and then they proceeded to the hair care segment (like ant i dandruff shampoo).

Questions pertaining to Channel Strategy:1. What are the different shampoo brands promoted by ITC? y Fiama Premium y Vivel Mid Premium y Superia Mass Market Brand y Superia health care (dandruff shampoo) The Benchmarks for different ITC shampoo brands are:y y y

Superia :: Chic Vivel :: Sunsilk Fiama :: Dove

2.

What distribution Channels are used for the different brands of shampoos? Do they differ? All ITC products use similar channels hence there is not much difference among various brands. Wherever there is a distributor involved in the channel, the items go to the distributor but the billing happens at the company directly. The central pillar of the ITC distribution channel is the Wholesale Distributor (WD). Through the WD, ITC can either reach out to specific retailers or push their products through another level of Wholesalers. The various channels existing for ITC are:
y y y y

ITC -> WD -> Wholesaler -> Retailer` ITC -> WD -> Retailers ITC -> WD -> Distributor-Key accounts ( key accounts refers to modern trade facilities and hyper marts) ITC to big retail chains (like Reliance, Big Bazaar)

malls

3. What tasks are performed by the channel members? Three kinds of activities are performed:
y

Sales people go and capture the order. In case of normal wholesalers and retailers it is captured based on intuition of the salesmen (which is based on the past data) or set norms on the number of bottles that should be present at a retail location. For the big retail chains they would have some set numbers i.e. they should have a certain minimum number of shampoo cases. If they take orders say on Tuesdays and Thursdays of the week, so depending on differences between desired level of inventory and actual, the orders would be placed. ITC then ensures that this order is fulfilled completely. In terms of display many companies make sure that the products are arranged in the right way (on shop and in shop) but ITC is not really spending a lot of money on this. But they try to see that posters and banners are put up in the right way.ITC currently focuses on retail chains like Reliance, Big Bazaar etc. In some cases ITC also pays for putting up products in the Hot Spot area i.e. areas where the customers attention is caught initially. A lot of companies like HUL,

Britannia would pay around Rs 300 per month for the hot spot area. So ITC also buys these hot spots for a period of 1 month or 6 months. For the various variants of Fiama, ITC has a pattern of arranging them on these hot spots, as in what will come on the left and what will come on the right, or whether the 100 gm pack would come before the 200 ml bottle, see that no two similar colours of the variants come together and so on. Every company has a person called merchandiser who takes care of the product placement in these retail stores. ITC used to spend a lot of money on the merchandiser, but in the last 1 or 2 years they have cut down on this.

4. What is the no. of intermediaries involved in the channel for Fiama di wills shampoo? ITC has its own factories where it makes the products, and out sourced factories which make the product, and it gets marketed in the name of ITC. From the factory the products move to the central warehouses, where the products are stacked, then to the state warehouse. Each state has typically 1 warehouse ( Bihar -1 and UP -2 or 3) From the state warehouse it goes to the distributor. From the distributor it goes either to the wholesalers or the retailers or key accounts. The product belongs to ITC till the time it is billed to the distributor. When the product changes hand to the distributor the product changes from ITC liability to distributor liability.

5. What is the commission at each stage of the channel? In addition to commission are there any other costs specific to the use of a channel? The product remains ITC liability till it reaches the distributor. All the members work on fixed contract rather than prorate basis. Actual marketing margin starts from the distributor. Typically distributor earns a margin of 3-3.5% on personal care products. The wholesale margin is about 4-5% and retail margin is about 15-20 %. Beside the margin it gives its distributor, it reimburses the distribution cost i.e. the cost associated with sending the product to the wholesaler or retailer. ITC Factory Branch Office Central Warehouse

State Warehouse ITC outsourced Wholesaler/ Distributer

Retailer

a. Do you provide credit facilities to the channel? Are there any cash discounts for early cash payment?  Distributors normally work on the cash basis. These distributors normally send the cash, and then they get product delivery. ITC doesn t work on credit basis. But after the distributor stage, to every other member of the channel i.e. wholesaler, retailer etc they work on credit basis, which is normally 7-15 days. This exact number of days is dependent on the importance of the subsequent channel member. Say for Reliance or a Big Bazaar it can even go up to 21 days.  Cash discounts: ITC gives a lot of freedom to the distributor. Cash discount can be something like a 1% on delivery. This usually depends on the distributor. b. Do you have quantity discounts (i.e. higher commissions for higher volumes)?  Every month they have a scheme that runs on a slab based system. These schemes are predominantly run on mass distribution products like Superia etc. Say if you pick up 1 -2 cases you might get a 2% discount, for 10 cases - 3 % discount. It is less frequent for premium products like Fiama. c. Do you provide any other trade schemes if so how often and in what situations?  Personal care is a cyclical business, summers it goes up and winters it hits a rock bottom. It is very competitive in terms of the quantity and price combination offered by the competitors. ITC runs schemes during a fixed period of the year. An example of the same is the Dhamaka period from February to April. Apart from the regular slab based schemes, the company also does such once a year promotional campaigns. 6. What is the process by which distributors and wholesalers are identified and selected? What is the selection criteria used for distributors/wholesalers? Select those distributors and wholesalers who contribute about 80 percent of the sales volume. The cost to serve the remaining 20 percent becomes very high., hence they would not be preferred. The selection criteria used for distributors/wholesalers are mainly infrastructure, experience in the FMCG, and financial health of the distributor. 7. Do you have any training programs /meets for channel members? How often? What is expected from these programs? Training for distributor includes a formal induction program meant for new distributors. The company has systems and software training programs for salesman or supervisors. Whenever there is a launch of a new variant of a soap or shampoo products, extensive training is provided for the salesman and supervisor by arranging trade meets and distributing samples. Here they are explained the USP, why the product is launched and the competitors. This happens at various levels, the company trains the sales persons and they talk to various distributors. 8. Are there targets or quotas for channel members? Are there any other measures used to evaluate channel members? There is no quota for wholesaler or retailer for fancy products like Fiama, but ITC has many loyalty schemes running, which would mean that if the consumer were to buy a certain quantity of Fiama month on month he/she would get certain discount or certain num of points which can be ber accumulated and availed in the form of a foreign visits etc. But essentially targets are for the

salesmen to sell the product. Say one salesman would be handling 1 wholesaler and 3 retailers, so his target would be based on certain heuristically decided factor. Measurements are huge, we have infrastructure that allows us to find out time spent by a salesman at a particular outlet and the time he moves to the outlet through a PDA device. The salesman is supposed to login to the device for making transactions, which also enables the company to track the movement of the salesman. Basically in terms of productivity there is a lot of analysis that goes on. Besides his target his performance is based on how many outlets he visited and how many days he was present at outlets. 9. Are the channel members cooperative and enthusiastic in implementing consumer/sales promotion schemes through the channel? They are not as enthusiastic about the personal care segment of ITC as their other produc ts. 10. Are there territories assigned to channel members? If so, are there any instances of violation? Territories are assigned, but people do violate. The company takes very strict action if people violate. 11. Are there instances where selling below MRP (price cutting) by channel members are a matter of serious concern? What steps are taken to prevent this? Normally it doesn t happen in the case of personal care segment. ITC doesn t give a lot of pressure to its salesmen to perform. So this enables salesmen not to go for undercutting or territory violation. But if some discounts are given they are from the distributor margin, probably in the tune of 1 % or so. The percentage of sales coming from the personal care segment is very miniscule. So the company doesn t care much if someone is giving off 50 paisa or some similar small proportion of money. 12. What are the terms and conditions in appointing these channel members (in terms of how much of deposit they have to keep, minimum no of salespeople required, certain level of stock maintained etc) At a distributor level terms and conditions are well defined. Say there is a given territory or target. Say there are 250 outlets. Then there would be a need to have 2-3 salesmen working for 6 days a week. One delivery vehicle would also be needed; generally a Tata 407 is used. The channel member needs to have certain amount of money at a given point of time and a certain amount of stock at a given point of time. Typically the credit maintained is 21 days. But for the retailer and wholesaler level the figure is not well defined. 13. What are the performance requirements of channel members frequency of servicing, employing of sales people, market data collection and any other?
y y y

The frequency of servicing is once a week for any outlet. At a premium outlet it is twice a week. In terms of employing sales people its upto the channel members and ITC doesn t interfere in this. Market data collection is done through personal or third party audit. For the third party audit, ITC normally tells the auditors what data they want. For e.g. the company wants to launch a

new variant of Superia or Fiama, the company might want to know which outlet in a certain market are stocking their competitor product. For this they might send out their salesmen to find out the data for that. Every month the sales men collect information about the new product launches and the new schemes run by the competitor. 14. What are some of the sales and trade promotions that are in place for Fiama Di Wills? Sales promotions
 Buy a 200 ml Shampoo bottle and get conditioner worth Rs 40 free  Lucky draw and chance of meeting Hannah Montana

Trade promotions
 Volume based discount schemes  Quantity based discounts  Buy stock worth Rs 2000 or more and receive a discount of 4 %

Questions pertaining to Logistics 1. Is there a fixed time period at which the channels are serviced? What is the time taken to fulfil an order outside the regular servicing? When we talk of channels, we are essentially speaking of two levels (typically). The first level is from ITC to the WD and the next level is between the WD and the retailer. Representatives visit each retailer from the WD around once a week and take their orders. These orders are serviced within a day. Now, from ITC to WD, the story is different. The frequency of visit/service completely depends on the nature of the WD itself, depending on the location, volumes serviced by the WD. For example, in a major area or a metro city, each WD is served almost daily or once in two da In ys. remote areas, this may go down to as much as once or twice a week. 2. What are the stocking levels at each stage that you recommend? Are these adhered to? The company has its own stocking norms for Fiama Di Willis. It is 7 days if it s a wholesaler or retailer. So for a distributor it s normally 10 days, which includes some safety stock and replenishment time. When we say stock is measured in days, it is calculated by his past sales in a day. For example, if a retailer sells 2 bottles of Fiama a day, according to the above standard, he would need to stock 14 bottles at least. 3. What are the measures used to ensure that the stock levels are maintained? You track the past data and track the difference between the desired level of inventory and the actual and carry out the replenishment on that basis. This is tracked by the salesman. Each salesman carries a PDA, and this information is punched into the PDA carried by the sales man. This data is also analysed on a monthly basis to track the performance. 4. Does the company maintain warehouses or is it maintained by the channel members? Both. As the diagram shows, ITC does maintain a few warehouses per area. From these warehouses, they supply the WDs, who maintain their own warehouses. Once it reaches the WD s warehouse,

they take care s rc the te s to retailers from there For the UP east and central area, ITC has warehouses located at Kanpur and Varanasi.

ITC Warehouse anpur/Varanasi

WD Warehouse 0 WDs in Lucknow

5. Ho a th p odu ts transported to the warehouses (type and frequen y of transportation and how are the produ ts transported fro the warehouse to the channel members? From the ITC warehouses, trucks transport products to the warehouses of the WDs. Once it reaches them, retailers are supplied either in trucks, vans or autos based on the size of their order. Not more than twice a week. F-W-D- W, transportation and fre u ency is geography based. The company maintains a minimum EO of a truck load of a mixture of ITC products. 9 T and 11 T trucks go for transporting these products. From WD to retailer, transportation would typically happen in Tata 407. Other places it would happen in 3 wheelers like piaggio. A cycle pulled thela is also used sometimes. 6. What is the servicing frequency at each channel level and what is the consequence of changing this servicing frequency? Lot of it depends on the geography. Stock levels maintained by distributor are for 21 days. Ground reality is fairly assessed by the sales force on the ground.

1. Do you have a sales force to promote to the channel? How are they organised (by geography/product/market) (how many sales people are employed and what is the basis on which this number is decided)? In order to find out new distributors retailers, an entire range of people of the company get involved. Information about the distributor is brought by the employees at the lowest level of the company, and then it is sent upward for decisions at the subse u ent higher levels. 100 years before, there was just one distributor handling entire city of Mumbai. Now over a period of time the turnover has increased and the distributor network has been divided based on the geography into east and west etc. ITC would use a 3rd party audit data say Ac Nielson data for identifying the number of kirana stores that are there along with paan shops etc, and based on the data the company would decide on the number of distributors needed, number of wholesalers needed and sales personnel needed etc. Also the company estimates the turnover of the various retail outlets and then finds out a suitable candidate for taking up the distributorship for ITC for that locality. The company explains the whole business prospect in the process to the shortlisted people.

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Retailers 10000 retailers in Lucknow

 



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But for a salesman this is a very easy job which at the outset looks difficult to a person. Territory demarcation on the ground level is also in a way done by the salesforce. 2. What are the functions of the sales force? (What do they do?) Sales force, employed by the distributors goes to the retailers/wholesalers, take the orders and ir come back to the distributor so that the product get billed and delivered. These sales people are not in the payroll of ITC but in the payroll of the distributor. ITC has people called area executives who are in the payroll of ITC who only monitor the salesmen and train them. These area executives scout for new parties (distributors . Sales force doesn t have anything to do with such activities. At some place the salesforce do some amount of merchandising. They make sure that everything is pac ed k properly and the order is followed. Above the sales man we have the supervisors whose responsibility is to perform the value added activities. These people are in the payroll of the distributor; their function is to go to the outlets and say, start stocking fiama shampoo over vivel shampoo by talking of the benefits of the product. They have to convince the retailer to stock the product in a particular locality, dust it once in a while and replace the products if they are expired. This is handled by the supervisors and not salespeople. In addition to regular sales force, with the increasing relevance of modern retail stores, it is becoming essential for most companies to have ISOPs or In-Store Promoters. They are typically sales girls between the ages 18 and 25 who are placed in modern outlets such as Big Bazaar. Their primary role is to increase consumer awareness of Fiama Di Wills shampoo. They are exclusive to the brand and are aided by any of the in store promotion for the brand.

ITC

3. Are the sales force provided fixed salary or commission or a combo and if so in what proportion and why? Typically for any sales force it is a combination of fixed and variable. Variable is as low as 20 % to as high as 60 %. It is not predefined by the company. It depends on the area executive/distributor of that area. For instance, for the lucknow area, the division between fixed and variable is 60 -40. Product wise incentive is drawn to encourage the sales force to perform better. All this is localized. For Lucknow, it was noticed that the average salesman made Rs 7000 per month, with the best salesmen making upto Rs 12000. 4. Are the sales force required to gather information on consumer preferences and/or changes in competitive activity? How is this ensured? No, if there is any new product in the market they will inform about that to the supervisor, and this information is passed on to the subse u ent higher level for appropriate action. For malls there are

Main Distributors

WD

WS/Ret
Wholesale (Passive

Ret
Direct to retail

few people who rotate among the products to promote it. These people will be trained by the company and then they promote the product when they are placed in the malls. When the company launches a new product it ensures good visibility with retail outlets/malls by getting into contract about the amount of product they would stock etc. For the launch of a new product also the company gets into contract with malls for some people who will get trained and promote the same in the mall as mentioned above. For Big Bazaar etc the company would have special promotions for a sale day like Wednesday bazaar etc and the company is then assured of a certain visibility. ITC would help these malls by coming out with a new offer on ITC product say a discount of some amount or product bundling offers etc. So then the company inspects the space and finally gets into the contractual agreement which happens between the retail chain and ITC. 5. In addition to their regular functions, do they search for new dealers/retailers? If so, how? Yes, salesmen are normally divided into territories. They are encouraged to observe if new stores open up in their territories. Once such stores do open up, they are instructed to take note of the location of the store, its patronage and most importantly, if the store is stocking competitor brands such as Pantene, Garnier. In case they are, the salesmen are encouraged to inform the supervisor and subsequently, approach the stores and persuade them to stock ITC brands as well. Questions pertaining to Communication 1. What is the company s positioning statement? Fiama Di Wills is a premium personal care product, targeted at section A women mainly. It is the only transparent shampoo in the premium segment. According to ITC executives, their research has shown them that transparency gives customers the impression of a pure and natural product. There are 3 transparent variants of the shampoo
 Everyday Mild  Volume Boost  Aqua Balance

2. What is the current campaign available for FDW shampoo? Two current campaigns are being employed by the company One campaign focuses on the nature + science combination and it features Deepika Padukone. The other one involves teen idol Hannah Montana and is featured on the Disney Channel. It is called Shine and Style and also features an online campaign at http://www.disney.in/shineinstyle/. The intention behind the latter is to attract young teens (mainly girls) to try out the shampoo for the first time and convert them into brand loyals who will spread word about the benefits of the brand in the future.
y What is the message?

The message is that unlike other brands of shampoo that are either positioned as natural (Vatika, Himalaya) or technologically advanced (Head & Shoulders, Garnier), Fiama Di Wills is positioned to having the best of both worlds, with a unique combination of nature and science. The slogan used in the campaign is Beautiful you. Today. Tomorrow.

y Are there any special campaigns used?

Yes. Recently, Fiama Di Wills celebrated the fact that there were 18 Lakh users of the brand. As a part of this celebration, 34 TLP (Ten Lakh Population) towns in India were chosen as locations for the promotion, wherein company representatives setup small fairs including games, promotions and celebrations in residential areas. The primary aim of this campaign was to announce to the public that Fiama Di Wills had many users, and to hence assure them about the quality of the brand and the faith that so many people had placed in the brand.

y What are the illustrations used?

Various illustrations have been used by Fiama Di Wills for its campaign. Below are a few examples of the same.

What media has been used for this campaign? The various media that have been used for this campaign are listed below Television Newspaper Store branding Online (Facebook as well as Hannah Montana website)

   
y

How has this campaign been effective? What measures been used to check its effectiveness? Has it helped increase market share? Was any other measures used to check effectiveness?  Yes, the campaigns have increased market share by a fair margin according to ITC officials. y Brand ambassadors?  The main brand ambassadors for FDW are Deepika Padukone and Hannah Montana.

3. How is this campaign different from launch campaign for FDW shampoo? The launch campaign of Fiama Di Wills focussed on building awareness about the brand, about how it was a blend of nature and science. Once this was done, the Hannah Montana campaign focussed on creating awareness and interest of Fiama Di Wills among teenagers who would become future users of the brand. The 18 Lakh campaign conducted recently was to inform current as well as potential users about the size of the brand, and encourage more people to jump onto the bandwagon. Below is a snapshot of the plan designed for the city of Kanpur.

(Source Anoop Mishra, Area Executive, ITC Lucknow) Has the advertisement campaign changed over time -No Has the message changed?-No Has the slogan changed? No Change in Brand ambassadors? -No Has the media used been changed? If changed why? -No 4. Which media is mostly used and why? Television is the media channel that has been used the most. This is because of the consumer segment being targeted by Fiama Di Wills. Since most of the women targeted by Fiama Di Wills can

be best reached using TV, it is the widely used media channel. Specifically, the ads for Fiama Di Wills rarely appear on sports and news channels, and frequent channels that focus on lifestyle and daily soaps. 5. Has the media been used for (a) reach purpose (b) greater ability to convey the message and persuade (c) can be achieved at a lower cost than other media? The media has mainly been used for reach purpose. While the lowest cost media channel is Facebook, the reach of Facebook is currently far lower than that of Television. Evaluation and Recommendation of Sales and Distribution Strategy Beside the margin it gives to its distributors, ITC reimburses the distribution cost. That is the cost associated with sending the product to the wholesaler or retailer. ITC gives a lot of freedom to the distributors who can flexibly determine the quantum of discounts for the next levels in the channel. ITC runs promotional schemes during fixed period of time during each year. Apart from these, ITC also runs loyalty based discount schemes. ITC has a very strong distribution network which was built up on its existing cigarette distribution network. Apart from this, ITC has also built modern trade channels including supermarkets and malls. Normally distributors payments reach at the time of delivery. That is no credit at this level. But after that to every other member of the channel i.e. wholesaler, retailer etc. they work on credit basis, which is normally 7-15 days. This exact number of days is dependent on the importance of the subsequent channel member. Say for Reliance or a big bazaar it can go even up to 21 days. As per the distribution diagram, ITC maintains a two-way communication via its branch office strategically located to cover more than 2 or three regions. As discussed, ITC has engineered a combination of seasonal discounts and loyalty programs to incentivise the channel member. This acts as a part of push strategy of ITC. Evaluation and Recommendation of Communication Strategy: When ITC introduced its new range of shampoos, Fiama de Wills in India, the Indian shampoo and personal care market was saturated with players from Multinational behemoths, right from Revlon to Garnier and P&G. To introduce a new product in such an industry cramped for space is no easy task. While ITC carried on its branding activity with lan, using one of the leading stars in Indian cinema, Deepika Padukone, what mattered most was the way the product was positioned in a market where hair care products were divided between cosmetic and natural, when consumers were caught between the two propositions, drawn by the cosmetic attraction and believing in herbal power, Fiama di Wills offered the best of both worlds as being the perfect blend of nature and science! Advertising has a considerable effect on the consumer behavior and thus marketers rely on this sequential process to increase the customer base.
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Attention, the first step of AIDA model aims at spreading the awareness about the product or service among the targeted consumers

We present an analysis of the three leading shampoo brands in the Indian market and how they have tried to initiate Attention in the minds of Indian consumers through their communication strategies:

Proctor & Gamble s brand of shampoo, Pantene, has harped on shine through its communication, most recently through its Shine Pantene campaign. As a result, the moment someone says Pantene, one thinks of shiny hair. The 4-minute Pantene commercial of a girl who cannot hear, playing the violin has been one of the best shampoo ads in recent memories, with over 4 million views on Youtube as well.

At the same time, Garnier Fructis has adopted the extreme imagery route, the focus being on strong hair . In their If you want it long, it s got to be strong campaign, the models wear unrealistic hair & are shown breaking objects that their hair gets tied to, rather than the hair giving way. It s farfetched but it works with the audience as suggested by the sales of the brand. On the other hand, ITC s Fiama di Wills shampoo has a diffused imagery in the market. Their proposition is gentle yet effective through a combination of nature & science for a beautiful you today, tomorrow . There are too many things they try to say through their communication. As a result, the ads have failed to register with the audience & trigger brand recall.
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The next step in this model is to incite interest in the minds of the consumers through a catchy tagline, highlighting the main features and benefits of the products/services and many other ways.

Fiama Di Wills scores here in terms of a catchy tagline. Also, the use of Hannah Montana campaigns to generate interest has been successful. However, the Sunsilk Gang of Girls has been till date the most successful interest generating promotional campaign for shampoos. Pantene, Head and Shoulders and Garnier Fructis have also not generated great interest amon g people in terms of people looking forward to the next advertisement. However, they have created enough buzz in consumers minds through their focused communication strategy.
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Marketers should also satisfy the emotional and higher order needs (Esteem and S elf Actualization needs of Maslow s Hierarchy of needs) of the consumers to develop a strong desire in their minds to purchase the product or service.

Through an intelligent use of linking beauty to the hair care product, Fiama has successfully tried to create a feeling of desire in the minds of the consumers. Their success on their attempt is however not very evident. At the 2008 Wills Lifestyle pageant, it has an exclusive Fiama Di Wills fashion line created by two leading fashion designers titled 'Lost in an Urban Maze' to showcase a premium imagery. This was also an effort on the part of Fiama to generate desire in the minds of the consumers. Head and Shoulders with its strong appeal of No Dandruff has created the most desirable impact on the consumers minds. The shiny appeal of the Pantene ad has also been successful in the desire effect.
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Developing desire is followed by the action step where the consumers have all the related information about the product and have reasons to avail the product or service but advertisers should develop some motivation for the consumers to go for the final step of purchasing

We do not have enough information from our secondary and primary research to comment on the action part of the communication. Recommendations

Shampoo Head & Shoulders Pantene Garnier Sunsilk Fiama

Message Anti dandruff Shiny hair Long and Strong Haircare experts Nature and science

As we see from the above summary, all the other rival brands have a clear message One which communicates the benefit of using the shampoo. Note that all these are tangible benefits. While the nature and science message is a unique positioning, it does not clearly mention what benefits such a shampoo provides. We recommend that Fiama maintains their current positioning, but also add some tangible benefit to their communication. Fiama Di Wills should form a clear focus on their communication strategy. Currently they do not focus on one particular differentiating aspect of their product. In order to compete effectively in the crowded shampoo market they wanted to provide the best of both worlds to the consumers. Hence, the focus became ambiguous and the communication of the Fiama has failed to achieve the desired effect.

Also, Fiama should rely more and invest more in ATL campaigning, as their target segment warrants it. They have taken a step in the right direction with the Hannah Montana campaign, and they c an look to rope in some more teen idols to promote their brand.