“Study of Alternate Channels to Promote Kara Wipes in Lucknow Market”
Summer Training Project Report submitted in partial fulfillment of the requirements for the
Diploma of
Post Graduate Diploma in Management At
Jaipuria Institute of Management, Lucknow
By
Feroz Ahmad
Enroll No. : JIML-11-057
Batch: 2011-13
Project Mentor: Prof. Hyma ApparajuAbstract
The purpose of my study was to “find out different channels that can be used in
promoting and maximizing the sales of Kara in major markets of Lucknow. As
any study is incomplete without the interaction with its main stakeholders, I also
interacted with many commuters of different cosmetics, general stores and
medical stores covering various major markets of Lucknow such as Aminabad,
Hazratganj, Charbagh, Patrakarpuram, Bhoothnath, Hussainganj etc.
Further interaction was with the second most important stakeholder who plays a
significant role in sale of a product i.e. retailer. It helped in gauging the
expectations of retailers as well as the expectations of customers through
retailers to reduce the gap between expectations and realistic presence of the
product.
I sampled Kara in major markets of Lucknow to increase the awareness of Kara
because the concepts of using wet facial wipes is very new in India unlike other
western countries where people spend their major portion salary in disposable
products.
Executive Summary
2
In last few years, the growth and development story of India has seen different
stages. From the time of independence to 1991, the time of liberalization in India
and then to the twenty first century, the markets have shown tremendous
changes. Today consumers have got the power and the income to spend on
products. Different firms entered in the market and lost but many succeeded and
make their mark. All the markets starts with nascent stage and later grow to its
maturity, same with the wipes market which is in its nascent stage in India now
but the potential is high if explored.
Kara is a brand name of Wet wipes from the house of Grasim Industries, Aditya
Birla Group. Among its different variants, Refreshing facial wipes are the most
selling wipes in the consumer market.
My project title was “study of alternate channels to promote Kara in Luknow
market” in Grasim Industries, Aditya Birla Group. Objective of the project was to
find out the ways to promote Kara and create new potential areas for the
product. It also involves the work to find out the measures to keep the product
ahead of its competitors such Johnson & Johnson, Bilt, Good Look, Freshia,
Mistique and last but the least the Chinese wipes products.
For brand promotion and widening the horizon for the new products launched
by the company I sampled Kara in almost all major markets and malls of
Lucknow such as Aminabad, Hazratganj, Hussainganj, Bhootnath,
Patrakarpuram, Thakurganj, Saharaganj mall, Spencer, Shalimar mall etc. which
also resulted into generating the awareness of the brand and it provided a
chance to the people to use Kara at free of cost first time. Once they are fond of
the product, they will voluntarily buy the product and will become its regular
user.
In my later stage of training, I was assigned to understand the operations of the
company by visiting almost all markets in Lucknow. For the purpose, I visited
more than 140 shops and took orders from retailers of the company and was
3
also responsible in placing the product onto new stores by convincing the
retailers to keep the product.
Without collection of statistical data and its analysis any project is incomplete,
thus, I surveyed 156 people by way of questionnaire and collected some
secondary data from internet to understand and analyze the exact situation of
the market. Analysis part has been done through interviews and surveys with the
people visiting the retail stores in different major markets and malls of Lucknow.
Result showed that the concept of using wet facial wipe is not as new as it was a
couple of years ago in the Indian market and now people are partially aware of it.
Middle class people can be targeted and educated about this new concept
through extensive promotional activities. One of the finding was that people
consider wet wipes as an extravagant article rather than essential product which
is positioned by the company and do not want to spend a lot on such a product.
Acknowledgement
The training program was designed in such a way that it provided a full learning
opportunity throughout the training program. I would like to express my
4
gratitude towards all the people who guided me throughout the program and
their direct or indirect help was priceless for me, without their guidance and
support this project would not have been completed successfully.
I express my sincere gratitude to Mr. Divyankar Goel, Regional Sales Manager,
North Division, Grasim Industries & Birla Cellulose, for his belief in me and giving
a chance to do market research for the company.
It has been an honor to do my summer training under Mr. Surya Prakash Singh,
Area Sales Manager, North Division, Grasim Industries & Birla Cellulose, a
composed and talented person who not only guided but also supported and
rectified me where I was going wrong. Therefore, I would specially thank Mr.
Surya Prakash Singh for his continuous guidance and assistance throughout the
training.
There was a great learning from my team at Grasim Industries, who not only
behave in a co-operative manner but also provide constant help in the
completion of the project, thus, I thank to my each team member in the training
program.
Last but surely not the least, I am very much thankful to my faculty guide, Prof.
Hyma Apparaju, core faculty at Jaipuria Institute of Management Lucknow, for
her continuous guidance and support from the proceeding of the project to its
completion. I can not think of the accomplishment of the project without her
assistance and guidance.
TABLE OF CONTENTS
Page No.
CHAPTER - 1RELEVANCE OF THE
STUDE………………………………………………………………………….4
5
TEAM CONSTITUTION
…………………………………………………………………………………..4
ACHIEVEMENT AND RECOGNITION
……………………………………………………………..5
CHAPTER - 2
……………………………………………………………………………………………………...6
SUMMER INTERNSHIP PROFILE …………………………………………...
…………………….....7
STUDY OF ALTERNATE CHANNELS TO PROMOTE KARA
WIPES………………………7
USE OF SOCIAL MEDIA TO PROMOTE KARA WIPES………………......….
………………….9
INDTRODUCTION ABOUT ADITYA BIRLA GROUP…………………………..
……………….11
HINDALCO INDUSTRIES………………………………………………………….
………………..22
IDEA CELLULAR………………………………
………………………………………………………25
ULTRATECH ………..
…………………………………………………………………………………...27
GRASIM INDUSTRIES ……………………………………………….
……………………………….31
BIRLA CELLULOSE…...…………………………………………….
…………………………………37
6
ANALYSIS OF INDIAN WIPES MARKET………….………….………………...
………………….60
COMPETITION ANALYSIS OF KARA WIPES …………….…………..….……...
……………….65
MICHAEL PORTER’S FIVE FORCES MODEL ………………………………………...
………....67
SWOT ANALYSIS
………………………………………………………………………………………….69
CHAPTER – 3 ………………………………………………………………………………………….
…………72
RESEARCH METHODOLOGY …………………………………………………………….
…………..73
CHAPTER – 4 ……………………………………………………………………………………….
……………79
DATA ANALYSIS ………………………………………………………………………….
………………80
CHAPTER – 5 …………………………………………………………………………………….
………………99
RECOMMENDATIONS AND SUGGESTIONS …………………………………….……………
100
CHAPTER – 6 ……………………………………………………………………………………….………..
…104
CONCLUSION …………………………………………………………………………….
……………….105
7
CHAPTER – 7 ……………………………………………………………………………………….
…………...106
ANNEXURE
………………………………………………………………………………………………...107
BIBLIOGRAPHY
…………………………………………………………………………………………..109
MY LEARNING FROM SUMMER INTERNSHIP …..
…………………………………………..110
LIST OF FIGURES
Page No.
FIG 1: USE OF WET WIPES………………………………………………………………………
…………80
FIG 2: MARKET SHARE OF WET FACIAL WIPES ……………………..
…………………………...81
FIG 3: FREQUENCY OF USE OF WET WIPES ……………………….
……………………………….82
FIG 4: PREFERRED PLACE TO BUY SKIN CARE
PRODUCTS………………………………….83
FIG 5: RESPONSE ABOUT IDEAL PACK……….
……………………………………………………...84
8
FIG 6: RESPONSE ABOUT IDEAL PRICE FOR A MEDIUM SIZE PACK……………….
…...85
FIG 7: PURPOSE OF USE OF
WIPES………………………………………………………………... ....86
FIG 8: PERCEPTION OF CUSTOMER TOWARDS THE CONCEPT OF WIPES............
….87
FIG 9: AWARENESS OF KARA WIPES ……………….
……………………………………………….88
FIG 10: MEDIUM MADE AWARE ABOUT KARA
WIPES……………………………………….89
FIG 11: SATISFACTION LEVEL TOWARDS KARA WIPES.
…………………………………...90
FIG 12: INFLUENCIAL ATTRIBUTES OF KARA WIPES …………………………………….…
91
FIG 13: ATTRIBUTES LEAD TO DISLIKE KARA WIPES …………………………….…….
….92
FIG 14: ATTRIBUTES THAT DIFFERENTIATE KARA FROM OTHER BRANDS
…….93
FIG 15: WOULD KARA BE RECOMMENDED BY CUSTOMERS ………………….……..
….94
FIG 16: GENDER DISTRIBUTION OF CUSTOMERS……………………………………..
…….95
FIG 17: AGE DISTRIBUTION …………………………………………………………………….….
….96
9
FIG 18: SHARE OF INCOME CLASS…………………………………………………………. .….
….97
FIG 19: PROFESSION DISTRIBUTION…………………………………………………….. .….….98
10
CHAPTER-1INTRODUCTION
Aditya Birla Group is India's first truly multinational corporation. Global
in vision, rooted in values, the Group is driven by a performance ethic
pegged on value creation for its multiple stakeholders. The group has an
annual turnover of US$ 24 billion, market capitalization of US$ 23 billion,
and has over 100,000 employees belonging to over 25 different
nationalities on its rolls. The group has diversified business interests and
is dominant player in all the sectors in which it operates such as viscose
staple fibre, metals, cement, viscose filament yarn, branded apparel,
carbon black, chemicals, fertilizers, insulators, financial, service, telecom,
BPO and IT services.
Its subsidiary company Grasim is the largest exporter of Viscose Rayon
Fiber in the country, with exports to over 50 countries.
11
Grasim Industries is mainly focusing on increasing more awareness about
its newly launched Kara wet wipes. Being a new concept in India, it is very
difficult for the company to divert Indian customers to substitute
traditional handkerchief by Kara wet wipes. They are position the same
through their continuous and effective marketing communication. They
have an edge over their competitors because of its backward integration
and the raw material for Kara wet wipes is being provided from Birla
cellulose division.
I sampled in different markets of Lucknow to create awareness about the
product and give the commuters opportunity to use Kara wet wipes free
of cost for the first time approach. A field work has also been done to
know the response of the customers towards the brand of company,
brand of the competitors, their perception about using wet wipes etc.
through a formal questionnaire.
I was fortunate enough to get this opportunity to work with such a
multinational incorporation. As the group quotes its tageline, “Taking
India to the world”, it provided a lot of learning experiences those will
surely help in long run in my transformation towards corporate world.
Scope of the study
The data collected gives the clear picture of the product in the markets of
Lucknow, the study of this research, gives the company an indication about
whether it is feasible to move on with the persisting movements and marketing
strategies, and if no, then how to go about it and make it worthwhile for the
brand as well as the company. And conclude on what should be the most favored
deal.
The main purpose to conduct this marketing research is to find out the
perception of the consumer towards the new concept of the skin care wet wipes
whether they are not hesitant to accept this new concept of the wet wipes or
they still believes in the traditional method of using the formulized based
12
products. And even to study how much awareness of this product is there in the
market and the brand image of it.
Another main aim to conduct this study was to understand the retailers
reactions and expectation towards the KARA and to reduce the gap between the
expectations of retailers and in actual.
The study of consumers’ responses helps firms and organizations improve their
marketing strategies.
Purpose of the study
The objective of project was “To take measures for maximizing sales
opportunities and promote Kara in Lucknow market. Thus, approaching to
general public and introducing our products to them and reminding them until
they give a formal response was our priority task. However, along with it, a
primary research work was also done to supplement the field work.
Context of Study
Free samples were given to people along with a small briefing about the product
who showed good level of interest in Kara. The questionnaire was pre-designed
and during conversation, the questions were disguisedly asked.
Relevance of Study
The research work gives us an idea as to what difficulties Kara is facing in spite
of being a very good quality product. It gives a scope of improvement to rethink
on some marketing aspects like better discount slabs, refining target customers
etc. Since the TV advertisement campaign for Kara is gaining momentum,
aggressive selling can be practiced to offer Kara in major market of Lucknow.
13
Reporting: I reported to Mr. Surya Singh, Area Sales Manager who acted as the
delivery head for this particular project.
Team Constitution: The core team was made up of six members in trade
management area covering Lucknow. The one management trainee, one Sales
Officer and Area Sales Manager were involved in Trade Management. We all
together sampled people covering a particular market for a particular day.
I applied my learning at JIML
During the project my learning in classroom (case studies, freewheeling
discussions) proved to be very useful. At times I referred to my marketing book
for brand promotion & distribution channel of KARA. Basically all the marketing
communication tools for brand promotion and different distribution channel for
placing the KARA to retailers are applied in the field came from my marketing
knowledge. This comparison pushed me to revisit the plans/ strategy thought
out by me. This was of immense help in improving the quality of my inputs.
Achievements/Recognition:
Post the sampling activity, I was assigned to visit retailers along with one
salesman to take orders from retailers keeping Kara and place the product onto
new counters for the increment of sales as well as awareness. I got appreciation
from Area Sales Manager for high worth of order in a day and continuous
placement of the product onto new counters.
14
15
Chapter-2Detailed Introduction of about the Topic
Summer Internship Profile
1) Modern Trade Management
Modern trade management deals with malls and shopping complex where
thousands of customers come daily to buy household items. Kara is available at
almost every mall in Lucknow however internees under this profile have to
check inventory levels of product, placing of the product as compared to
competitor products, visibility, customers’ reaction on seeing the product etc.
2) General Trade Management
16
In this profile, all the small retail shops are focused where I had to see if Kara is
already available with them, are the retailers happy about the response of the
product, sufficient inventory levels are maintained etc. Also there were many
retail shops which didn’t have any wet wipes and were apprehensive about
keeping the product. I had to market the product to such retailers and clarify any
doubts which retailer has about the product.
3) Marketing Research
This profile is a pure marketing research based where I have to ask respondents
to fill up a pre-designed questionnaire thus fulfilling the given objective. I chose
places like malls and major markets where I had to intercept respondents and
request them to take part in the research. Sample size was 156 which includes
both online and offline.
“STUDY OF ALTERNATE CHANNELS TO PROMOTE KARA
WET WIPES IN LUCKNOW MARKET”
Marketing communications are the means by which firms attempt to inform,
persuade, and remind consumers, directly or indirectly about the products and
brands they sell. In a sense, marketing communications represent the “voice of
the company and its brands and are a means by which it can establish a dialogue
and build relationships with consumers. Marketing communications also
perform many functions for consumers. They can tell or show consumers how
and why a product is used, by what kind of person, and where and when.
Consumers can learn about who makes the product and what the company and
brand stand for; and they can get an incentive or reward for trial or usage.
Marketing communications allow companies to link their brands to other people,
places events, brands, experiences, feelings, and things. They can contribute to
brand equity by establishing the brand in memory and creating a brand image as
well as drive sales and even affect shareholder value.
17
Although marketing communications can play a number of crucial roles, they
must do so in an increasingly tough communication environment. Technology
and other factors have profoundly changed the way consumer process
communications, and even whether they choose to process them at all. The rapid
diffusion of powerful broadband internet connections, ad skipping digital video
recorders, multipurpose cell phones, and portable music and video players have
forced marketers to rethink a number of their traditional practices. These
dramatic changes have eroded the effectiveness of the mass media.
Sales promotion tools
Using Social Media Channels to Promote Kara
The main challenge in this era is to stand out from the crowd, and use of any non-
traditional channel of promotion can differentiate us from our competitors and
we can attract the potential customers.
One of every nine people on earth log on to social media channels every day and
spend 700 billion minutes a day sharing content on social media. Kara needs a
social media component, or may potentially lose the attention of over 750
million social media users. Here are five fun ways to promote the product on
social media channels.
18
Patronage RewardsPatronage RewardsPoint-of-Purchase
PromotionsPoint-of-Purchase
PromotionsContestContest
SweepstakesSweepstakes
GamesGames
Cash or other award offered for regular use of a product or
service
Cash or other award offered for regular use of a product or
service
Displays or demonstrations at the point of
purchase or sale
Displays or demonstrations at the point of
purchase or sale
Consumers submit an entry to be judged by
a panel
Consumers submit an entry to be judged by
a panel
Consumers submit their names for a
drawing
Consumers submit their names for a
drawing
Consumers receive
something each time they buy
which may help them win a prize
Consumers receive
something each time they buy
which may help them win a prize
Facebook Offers
Facebook recently rolled out the new Facebook offers for fan pages, which is a
free service for Facebook page administrative. The Facebook offers feature is as
easy as posting a status update, and is an easy, fun way to promote the brand. We
can create a catchy, strong headline – remember, the offer will be competing
with lots of other status updates, photos and links in your fans’ news feeds. Next,
add an image that is recognizable in thumbnail form and represents our offer at a
glance. As a final step, add fine print or terms and conditions to avoid
misconceptions if our customers have. Fans redeem Facebook offers via their
smartphone or from an email that’s mailed to them after they get the offer.
Pin it to win it
One of the hottest new social media channels over the past twelve months is
pinterest, a social bookmarking site that acts as a virtual pin board, visually
saving and sharing recipes, favorite products, stunning images, beauty tips and
much more.
The company can take full advantage of the excitement surrounding pinterst by
creating “pin it to win” contests. Where it can share some beauty tips and at the
same time it can educate how regular use of wet wipes can keep our skin healthy.
These contests encourage users to pin products from the company website to
their own personal pin boards – the more pins or “repins” the product receives,
19
the better chance the customers have to win. This is a great way to drum up
excitement for a new variant or change in existing variant of Kara. The more
visually striking our product, the more successful our pinterest contest will be.
Reviews on Blogs
There are more than 164 million blogs on the internet and more than 133 million
blog readers. If we search long enough, we will find well written, popular blogs
covering almost any topic under the sun.
Many bloggers are interested in reviewing products and working with brands,
especially when free products are involved. Giving a blogger with a loyal
following a sample or complimentary product is a great way to get exposure for
Kara wet wipes. Readers trust their favorite bloggers’ opinions on products, and
a great product review can go a long way in building our brand. We can consider
offering a second product or exclusive discount for the blogger to give away to
their readers. Blogger reviews promoting our product will give us lots of
exposure.
Aditya Birla Group is India's first truly multinational corporation. Global in
vision, rooted in values, the Group is driven by a performance ethic pegged on
value creation for its multiple stakeholders. The group has an annual turnover of
20
US$ 24 billion, market capitalization of US$ 23 billion, and has over 100,000
employees belonging to over 25 different nationalities on its rolls. The group has
diversified business interests and is dominant player in all the sectors in which it
operates such as viscose staple fibre, metals, cement, viscose filament yarn,
branded apparel, carbon black, chemicals, fertilizers, insulators, financial,
service, telecom, BPO and IT services. The origins of Aditya Birla Group can be
traced back to the 19th century when Seth Shiv Narayan Birla started trading in
cotton in the town of Pilani, Rajasthan. In the early part of the 20th century,
Group's founding father, Ghanshyamdas Birla, expanded the group and set up
industries in critical sectors such as textiles and fibre, aluminium, cement and
chemicals. In 1969, Aditya Birla, the then Chairman of the Group, put the group
on the global map. He set up 19 companies outside India, in Thailand, Malaysia,
Indonesia, the Philippines and Egypt.
Under Aditya Birla's leadership, the group attained new heights and it became
world's largest producer of viscose staple fibre, the largest refiner of palm oil, the
third largest producer of insulators and the sixth largest producer of carbon
black. After Aditya Birla's demise his son Kumar Mangalam Birla took over the
charge of the group and under his leadership the group has sustained the
significant position in the sectors in which it operates. The Group operates in 25
countries — India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg,
Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia,
Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and
Korea.
A US $29.2 billion corporation, the Aditya Birla Group is in the league of Fortune
500. It is anchored by an extraordinary force of 130,000 employees, belonging to
30 different nationalities. In India, the Group has been adjudged "The Best
Employer in India and among the top 20 in Asia" by the Hewitt-Economic Times
and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from
its overseas operations.
21
Globally the group has proved its mettle:
A metals powerhouse, among the world's most cost-efficient aluminium
and copper producers. Hindalco-Novelis is the largest aluminium rolling
company. It is one of the three biggest producers of primary aluminium in
Asia, with the largest single location copper smelter
No.1 in viscose staple fibre
The fourth largest producer of insulators
The fourth largest producer of carbon black
The eleventh largest cement producer globally and the second largest in
India
Among the best energy efficient fertiliser plants
Among the world's top 15 and India's top four BPO companies
In India, the Group holds a frontrunner position as:
A premier branded garments player
The second largest player in viscose filament yarn
The second largest in the core alkali sector
Among the top five mobile telephony players
A leading player in life insurance and asset management
Among the top three supermarket chains in the retail business
Global Presence of the group
Aditya Birla Group has many subsidiary companies across the world. It has its
presence not only in Asian countries but also in European and African countries.
Thailand
22
o Thai Rayon
o Indo Thai Synthetics
o Thai Acrylic Fibre
o Thai Carbon Black
o Aditya Birla Chemicals (Thailand) Ltd.
o Thai Peroxide
Philippines
o Indo Phil Textile Mills
o Indo Phil Cotton Mills
o Indo Phil Acrylic Mfg. Corp.
Indonesia
o PT Indo Bharat Rayon
o PT Elegant Textile Industry
o PT Sunrise Bumi Textiles
o PT Indo Liberty Textiles
o PT Indo Raya Kimia
Egypt
o Alexandria Carbon Black Company S.A.E
o Alexandria Fiber Company
China
23
o Liaoning Birla Carbon Canada
o AV Cell Inc.
o AV Nackawic Inc.
Australia
o Aditya Birla Minerals Ltd. Laos
o Birla Laos Pulp and Paper Plantation Company Ltd.
Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where
success does not come in the way of the need to keep learning afresh, to keep
experimenting.
Diversified Businesses
Aditya Birla is organized into various subsidiaries that operate across different
sectors. Among these are viscose staple fibre, non-ferrous metals, cement,
viscose filament yarn, branded apparel, carbon black, chemicals, Modern retail
(under the 'More' brand of Supermarkets, and also under the Trinethra, and
Fabmall brands until recently), fertilizers, sponge iron, insulators, financial
services, telecom, BPO and IT services. The Group consists of four main
companies, which operate in various industry sectors through subsidiaries, joint
ventures etc. These are Hindalco, Grasim, Aditya Birla Nuvo, and UltraTech
Cement.
Non Ferrous Metals
The groups non-ferrous metals are under Hindalco. It is a dominant player in
aluminum and copper. Its manufacturing locations are primarily in India, and it
owns mines in Australia. On February 11, 2007, the company entered into an
24
agreement to acquire the Canadian company Novelis for U$6 billion, making the
combined entity the world's largest rolled-aluminium producer. On May 15,
2007, the acquisition was completed with Novelis shareholders receiving $44.93
per outstanding share of common stock.
Hindalco has also recently acquired Alcan's stake in the Utkal Alumina Project
Joint venture in Orissa,India. Hindalco is a Fortune500 company, it makes
alumina chemicals, primary aluminum, rolled products, alloy wheels, roofing
sheets, wire rods, Cast copper rods, copper cathodes and several other products.
But the project has faced massive protests from locals. On 16 Dec 2001 three
tribal people were shot dead because they were opposed to the project.
Cement
The Group has two subsidiary companies in cement sector named as Grasim and
UltraTech cement. Together the two companies under the group account for a
substantial share of the cement market in India. UltraTech cement comprises the
erstwhile cement business of L&T which was acquired by the group. UltraTech
announced an increase in sales by 18% and Profit after Tax by 42% for the
quarter ending March 31, 2012.
Carbon Black
The Group is the fourth largest manufacturer of Carbon Black worldwide. It
operates out of facilities in Egypt, Thailand, India and China. It is a major supplier
to several major automobile tyre manufacturers worldwide.
Textile Business
The Aditya Birla Group is the world's largest player in the Viscose Staple Fiber
industry. It operates out of India also such as in Laos, Thailand, Malaysia and
25
China. It owns the Birla Cellulose brand. Apart from viscose staple fiber, the
group also owns acrylic fiber businesses in Egypt and Thailand, viscose filament
yarn businesses and spinning mills at several locations all over India and South
East Asia.
The group has pulp and plantation interests in Canada and has recently invested
in plantations in Laos the Aditya Birla group is also a major player in the branded
garments market in India. Its subsidiary, Madura Garments, is a major producer
of textile fabric as well as the brand licensee of Louis Phillip, Van Heusen and
Allen Solly in India. It operates company owned retail outlets in several cities in
India and now planning to go to Pakistan as well.
Telecom Services
Aditya Birla Group holds a 98.3% stake in Idea Cellular, a leading telecom
operator in India. Idea Cellular started off as a joint venture with the group,
AT&T and the Tata Group. However the stakes of the remaining partners was
eventually acquired by the group. After an Initial Public Offering on the Indian
Stock Markets, Idea Cellular now accounts for a third of the group's market
capitalization.
Other Business
Apart from the above businesses, the group is a major player in sectors like
Insulators, Fertilizers, IT (It owns PSI Data Systems Limited -
http://www.psidata.com), ITeS (It owns Trans-works and recently acquired the
Canadian BPO Firm Minacs), Chemicals, Mining, Sponge Iron, Financial Services
(A joint venture with Sunlife) and more recently, Retail.
26
Beyond Business
Transcending business for over 50 years now, the Group has been and continues
to be involved in meaningful welfare-driven initiatives that distinctly impact the
quality of life of the weaker sections of society in India, South-East Asia and
Egypt.
In India, the Group's social projects span 3,000 villages. It reaches out to seven
million people annually through the Aditya Birla Centre for Community
Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla. Its
focus is healthcare, education, sustainable livelihood, infrastructure and
espousing social causes.
The Group runs 42 schools, which provide quality education to over 45,000
children in India's interiors. Of these, over 18,000 children receive free
education. An additional 8,000 students receive merit scholarships. Likewise at
its 18 hospitals in India, more than a million patients are given extremely
subsidised medical care. To embed corporate social responsibility as a way of life
in organisations, the Group has set up the FICCI – Aditya Birla CSR Centre for
Excellence, in Delhi.
The Group transcends the conventional barriers of business and reaches out to
the marginalised because of its conviction of bringing in a more equitable society
and send out a message that "We care”.
MAJOR COMPANIES
The major companies of the Group are among India's leading corporate. These
include:
Grasim: Viscose staple fibre, rayon grade pulp, cement, chemicals, textiles
27
UltraTech Cement Ltd: Ordinary Portland cement, Portland blast
furnace slag cement, Portland pozzolana cement and grey Portland
cement
Samruddhi Cement: Cement
Hindalco: Aluminum, copper
Aditya Birla Nuvo: Garments, viscose filament yarn, carbon black,
textiles, insulators
Idea Cellular Ltd.: Telecom
Birla Sun Life Insurance Co. Ltd.: Life insurance
Birla Sun Life Asset Management Company Ltd.: Mutual fund
Aditya Birla Money Mart Limited: Mutual fund distribution
Aditya Birla Capital Advisors Private Limited (ABCAP): Private equity
advisory and investment management, for Indian and offshore investors
Aditya Birla Money Limited: Leading player in broking space
Aditya Birla Minacs IT Services Ltd.: Application development,
maintenance and enhancement solutions
Aditya Birla Minacs Worldwide Limited: Customer relations
management (CRM), integrated marketing services, knowledge process
outsourcing
Aditya Birla Finance Limited: Asset-based finance, corporate finance
and investment banking, capital market and treasury
Birla Insurance Advisory & Broking Services Ltd: Non-life insurance
advisory and broking services
Non-life insurance advisory and broking services: Apparel retail
Peter England Fashions and Retail Ltd: Apparel retail
Madura Garments Exports Limited: Apparel export
Aditya Birla Retail Limited: Multi-format stores
Tanfac Industries Ltd.: Fluorine chemicals
Essel Mining & Industries Ltd.: Iron and manganese ore mining, noble
ferro alloys
28
REWARDS & RECOGNITION
2002
KHARACH unit won Chairman's Gold Award for manufacturing
excellence.
2003
Birla Cellulose's HARIHAR (India) unit bagged "TERI Corporate
Environmental Award" for cleaner production, while keeping waste
generation at its lowest.
Birla Cellulose's KHARACH (India) unit was awarded "Green-tech Gold
Award" for environmental excellence, in recognition for its continuous
efforts in the field of sustainable development and environmental
preservation.
2004
Birla Cellulose's NAGADA (India) unit was awarded the coveted
"Stockholm Industry Water Award", a first time achievement in Asia.
Grasilene division – HARIHAR won “Green-tech Environment Excellence
Gold” Award.
HARIHAR unit won “Golden Peacock Environment Management” Award.
2005
KHARACH unit won PSU- Quality Circle competition for South Gujarat
Industries
2007
HARIHAR Poly fibers wins 2007 “IMC Ramakrishna Bajaj award
29
2008
The President of India, Mrs. Pratibha Patil confers the much coveted
Rotary International Polio Eradication Champion Award on Mrs.
Rajashree Birla
2009
Grasim's pulp and fibre division wins the highly prestigious Asian CSR
Award.
Idea Cellular wins the Economic Times' "Emerging Company of the Year
Award for 2009".
2010
Hindalco ranked ninth across industries on Forbes Asia's Fab 50
companies list of Asia's 50 most valued companies.
Hindalco and Birla White declared winners in the Golden Peacock Awards
for Corporate Social Responsibility
The Rajiv Gandhi Environment Award for Clean Technology for the year
2009-2010 is awarded to Vikram Cement Works.
2011
Business Today’s Best Companies to work for in India’s survey, the Aditya
Birla Group was on the top of the league in their “rankings of most loved
companies”.
The Aditya Birla Group is ranked No. 4 in the list of global top companies
for leaders and No.1 in Asia Pacific for 2011, in a study conducted by Aon
Hewitt, Fortune Magazine.
30
An industry leader in aluminium and copper, Hindalco Industries Limited, the
metals flagship company of the Aditya Birla Group is the world's largest
aluminium rolling company and one of the biggest producers of primary
aluminium in Asia. Its copper smelter is the world’s largest custom smelter at a
single location.
Established in 1958, we commissioned our aluminium facility at Renukoot in
eastern Uttar Pradesh, India in 1962. Later acquisitions and mergers, with Indal,
Birla Copper and the Nifty and Mt. Gordon copper mines in Australia,
strengthened our position in value-added alumina, aluminium and copper
31
products. The acquisition of Novelis Inc. in 2007 positioned us among the top
five aluminium majors worldwide and the largest vertically integrated
aluminium company in India. Today we are a metals powerhouse with high-end
rolling capabilities and a global footprint in 13 countries. Our consolidated
turnover of USD 15.85 billion (Rs. 72,078 crore) places us in the Fortune 500
league.
Hindalco's businesses — creating superior value
Hindalco is one of the leading producers of aluminium and copper. Our
aluminium units across the globe encompass the entire gamut of operations,
from bauxite mining, alumina refining and aluminium smelting to downstream
rolling, extrusions, foils, along with captive power plants and coal mines. Our
copper unit, Birla Copper, produces copper cathodes, continuous cast copper
rods and other by-products, such as gold, silver and DAP fertilisers.
Our units are ISO 9001:2000, ISO 14001:2004 and OHSAS 18001 certified.
Several units have gone a step further with an integrated management system
(IMS), combining ISO 9001, ISO 14001 and OHSAS 18001 into one business
excellence model. We have been accorded the Star Trading House status in India.
Hindalco's aluminium metal is accepted for delivery under the High Grade
Aluminium Contract on the London Metal Exchange
(LME). Our copper quality standards are also
internationally recognised and registered on the
LME with Grade A accreditation.
Aluminium
Hindalco's major products include standard and
speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat
rolled products, extrusions and foil. The integrated facility at Renukoot houses
an alumina refinery and an aluminium smelter, along with facilities for the
production of semi-fabricated products, namely, redraw rods, flat rolled
32
products and extrusions. The plant is backed by a co-generation power unit and
a 742 MW captive power plant at Renusagar to ensure the continuous supply of
power for smelter and other operations.
A strong presence across the value chain and synergies between operations has
given us a dominant share in the value-added products market. As a step
towards expanding the market for value-added products and services, we have
launched various brands in recent years — Everlast roofing sheets, Freshwrapp
kitchen foil and Freshpakk semi-rigid containers.
Copper
Birla Copper, Hindalco’s copper unit, is located in Gujarat.
The unit has the unique distinction of being the largest
single-location copper smelter in the world. The smelter
uses state-of-the-art technology and has a capacity of
500,000 tpa.
Birla Copper also produces precious metals, fertilisers and sulphuric and
phosphoric acid. The unit has captive power plants for continuous power
generation and a captive jetty to facilitate logistics and transportation.
Birla Copper upholds its longstanding reputation for quality copper cathodes and
continuous cast copper rods by assuring its management processes meet the
highest standards. It has acquired certifications such as ISO-9001:2000 (Quality
Management Systems), ISO-14001:2004 (Environmental Management System)
and OHSAS-18001:2007 (Occupational Health and Safety Management Systems).
Mines
Hindalco acquired two Australian copper mines, Nifty and Mt. Gordon, in 2003.
The Birla Nifty copper mine consists of an underground mine, heap leach pads
33
and a solvent extraction and electrowinning (SXEW) processing plant, which
produces copper cathode.
The Mt. Gordon copper operation consists of an
underground mine and a copper concentrate
plant. Until recently, the operation produced
copper cathode through the ferric leach process.
In 2004, a copper concentrator was commissioned to provide concentrate for
use at Hindalco's operations in Dahej.
Both Nifty and Mt. Gordon have a long-term life of mine off-take agreement with
Hindalco for supply of copper concentrate to the copper smelter at Dahej.
Idea Cellular Limited was incorporated in 1995, and now ranks third in terms of
all-India wireless revenue market share at 13.6 per cent. Idea ranks second with
23.6 per cent revenue market share in nine service areas where it holds 900 MHz
spectrum and which derive about 41 per cent of the industry’s all-India
revenues. The market positioning of Idea reflects the strength of its brand
considering the fact that Idea added 11 out of its total 22 service areas in the past
four years. Today, it is a pan-India player with commercial 2G operations in 22
service areas, and 3G in nine of these circles. Its subscriber base has grown
multifold, from 7.37 million in March 2006 to 89.5 million in March 2011.
Idea holds 16 per cent stake in Indus Towers, a joint venture with other telecom
majors Bharti Airtel and Vodafone. Indus Towers is the world's largest tower
company with over one lakh towers.
34
Idea enjoys a market leadership position in many of its operational areas. It
offers GPRS on all its operating networks for all categories of subscribers, and
was the first company in India to commercially launch the next generation EDGE
technology in Delhi in 2003. As a pioneer in technology deployment, it has been
at the forefront through the adoption of bio fuels to power its base stations, and
by employing satellite connectivity to reach inaccessible rural areas in Madhya
Pradesh.
Idea has been a leader in the introduction of value-added services, and there are
many firsts to its credit, including a voice portal 'Say Idea', Idea TV, voice chat
and instant messenger. Tariff plans have been customer-friendly, catering to the
unique needs of different customer segments, for instance the 'Women's Card'
caters to the special needs of women on the move, and 'Youth Card' covers the
emerging youth segment. Idea has a network of over 70,000 cell sites covering
the entire length and breadth of the country. The company has over 3,000
service centres servicing Idea subscribers across the country. Idea’s service
delivery platform is ISO 9001:2008 certified, making it the only operator in the
country to have this standard certification for all 22 service areas and the
corporate office.
Achievements
Idea has won numerous awards and is the only Indian GSM operator to win the
prestigious GSM Association Award consecutively in the best mobile technology
category for the Best Billing and Customer Care Solution both in 2006 and in
2007, even in the face of international competition.
Idea was adjudged the ‘Emerging Company of the Year’ by The Economic
Times. Brand Idea has won many accolades for its innovative communication.
The ‘What an Idea, Sirji’ ads have won four Effies from 2008-2010, making it
one of the ‘Buzziest’ brands in the country.
In 2011 Brand Idea moved to the No. 4 position amongst all service brands in
the 'Most Trusted Brands Survey' conducted by Economic Times publication.
35
Idea's biggest campaigns – "Break the Language Barrier" and "No idea – Get
Idea" were ranked globally as the best brand campaigns 2011 at MMA Global
Awards and World Communication Awards, London.
In radio, Idea won six awards at the Golden Mikes Awards 2011 and was
adjudged the Advertiser of the Year. Besides, Idea has also won a series of
Digital Awards, the biggest being the Yahoo Big Chair where it won Gold.
IDEA Cellular has been recognized as the 'Most Customer Responsive
Company' in the Telecom sector, at the prestigious Avaya Global Connect
Customer Responsiveness Awards 2010.
Idea's subscriber base as at the end of August 2011 according to the statistics,
is totalling to 98,441,714.
UltraTech Cement Limited is India's biggest cement company and India’s largest
exporter of cement clinker based in Mumbai, India. The company is division
of Grasim Industries. It has an annual capacity of 52 million tonnes. UltraTech is
India's largest exporter of cement clinker. The company's production facilities
are spread across eleven integrated plants, one white cement plant, and one
clinkerisation plant in UAE, fifteen grinding units, and five terminals.
UltraTech's success is attributed to its diverse product offerings. Different
products are handled by different product groups, which are also known as
profiles. Product groups decentralise control and encourage innovation. They
also ensure better customer segmentation, which in turn leads to better
customization of product offerings and guarantees cent percent customer
satisfaction. UltraTech Cement, Birla White, UltraTech Concrete, UltraTech
36
Building Products and UltraTech Solutions are the different profiles of UltraTech,
each catering to varied needs. This versatility has been a key competitive
advantage for UltraTech over the years.
UltraTech is the 10th largest cement manufacturer in the world making it a
significant global player. It has grinding units, jetties, bulk terminals and
integrated plants all across the world. UltraTech Cement is the country's largest
cement clinker exporter, catering to export markets in countries across the
Indian Ocean, Africa, Europe and the Middle East. Such diverse presence across
countries has helped UltraTech leverage economies of scale and enabled it to
become a name to reckon with in the international market.
UltraTech’s journey began almost three decades ago and throughout this
journey, the focus has always been on providing customers with the best
products and services. The resulting success has only reaffirmed UltraTech’s
desire to be a complete end-to-end building solutions provider. Each milestone
in this journey is a cherished memory: becoming the largest cement
manufacturer in India, winning the ‘SUPERBRAND’ and 'POWERBRAND'
accolades and being recognised as a truly global organization, are a few that
stand out.
UltraTech’s inception can be traced back to the mid-1980s with the
establishment of Grasim’s first cement plant at Jawad in Madhya Pradesh. In
2001, with the objective of increasing its reach, Grasim acquired a stake in L&T
Cement Ltd. The stake was further increased to a majority stake in 2003 thereby
giving Grasim a pan-India presence and an increased market share. In 2004, the
demerger of L&T’s cement business was completed and Grasim acquired a
controlling stake in L&T Cement Ltd and the name was subsequently changed to
UltraTech cement. The cement business of Grasim was demerged and vested in
Samruddhi Cement Limited in May 2010, with Samruddhi Cement Limited
consequently being amalgamated with UltraTech Cement Limited in July 2010. In
September 2010, UltraTech Cement Middle East Investments Limited, a wholly
37
owned subsidiary of UltraTech Cement acquired management control of ETA
Star Cement Company, along with its operations in the UAE, Bahrain and
Bangladesh, thereby putting UltraTech on the global map.
Today, UltraTech Cement is the tenth largest producer of cement globally. It has
a diverse presence across the globe. The company has eleven integrated plants,
one white cement plant and one clinkerisation plant, which is based in the UAE.
Furthermore, UltraTech has 15 grinding units across the world: 11 in India, 2 in
UAE and 1 each in Bahrain and Bangladesh. It also has 2 rail bulk terminals in
India, 3 coastal terminals, out of which 2 are located in India and one in Sri
Lanka.
UltraTech Cement is the largest selling single brand cement in India and the
largest cement clinker exporter. UltraTech's products include Ordinary Portland
Cement, Portland Pozzolana Cement and Portland Blast Furnace Slag cement.
UltraTech is the most trusted and preferred brand of Engineers, builders,
contractors and individual house builders. Today, UltraTech is used in vital
structures like dams, bridges, flyovers, airports, metro railways apart from
residential and commercial structures.
Ready mix concretes of UltraTech operate under the mother brand of UltraTech
Concrete. UltraTech Concrete sub-brands are christened 'Fibrecon', 'Free Flow',
'Colourcon', 'Stainless', 'Thermocon', 'Hypercon', 'Pervious' and 'Décor', each of
which offer a unique value proposition and cater mainly to specific requirements
of large infrastructural projects.
38
UltraTech Building Products manufactures and markets technologically
reengineered products including dry mix mortars and blocks for the
construction and infrastructure industry. The sub brands of UltraTech Building
Products are 'Seal & Dry', 'Super Stucco', 'Readiplast', 'Fixoblock', 'Xtralite' and
'Powergrout'.
UltraTech Building Solutions (UBS) is a novel concept in the Indian Construction
Industry. It is a one stop shop designed on the "plan, build and support"
philosophy, which offers home building solutions right from planning to
completion. UBS is based on a franchise model that caters to the building and
construction needs of individual home builders as well as the entire building and
construction fraternity. Collaboration is the key to UBS which houses renowned
brands of building materials apart from its own cement, namely paint,
construction chemicals, steel, pipes and fittings. A basket of services like
technical advisory, vaastu services, House Layouts and Construction Cost
Calculator, also form a significant part of the offerings at UBS.
The UltraTech brand houses its white cement products under the umbrella of
'Birla White'. Birla White's range comprises of Birla White Cement and other
finishing products, widely used for interiors and exteriors including flooring,
39
walls and ceilings. The sub brands of Birla White are 'Wallcare', 'Textura',
'Levelplast' and 'GRC'.
Star Cement is a leading manufacturer of cement in the Middle East. Its
operations are spread across UAE, Bahrain and Bangladesh with an installed
capacity of 3 million metric tons per annum.
Grasim Industries Limited, a flagship company of the Aditya Birla Group, ranks
among India's largest private sector companies, with consolidated net revenue of
Rs.202 billion and a consolidated net profit (before extraordinary items) of
Rs.27.6 billion (FY2010).
Starting as a textiles manufacturer in 1948, today Grasim's businesses comprise
viscose staple fibre (VSF), cement, chemicals and textiles. Its core businesses are
VSF and cement, which contribute to over 90 per cent of its revenues and
operating profits. The Aditya Birla Group is the world’s largest producer of VSF,
commanding a 21 per cent global market share. Grasim, with an aggregate
capacity of 333,975 tpa has a global market share of 10 per cent. It is also the
second largest producer of caustic soda (which is used in the production of VSF)
in India. Grasim is the largest exporter of Viscose Rayon Fiber in the country,
40
with exports to over 50 countries. This, along with Aditya Birla Nuvo can be
considered as the flagship companies of the AV Birla Group.
Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made,
biodegradable fibre with characteristics akin to cotton. As an extremely versatile
and easily blendable fibre, VSF is widely used in apparels, home textiles, dress
material, knitted wear and non-woven applications.
Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat
and Harihar in Karnataka, with an aggregate capacity of 333,975 tpa.
Nagda
Nagda is its largest unit producing a wide range of VSF to suit customer
requirements in terms of length, denier and colour and also second and third
generation fibres like Modal, Excel and Solvent Spun fibres, respectively. Nagda
is also the largest producer of spun-dyed specialty fibre in the world.
Harihar
The Harihar unit houses facility for manufacture of both VSF and rayon grade
pulp, the basic raw material for VSF. The company's Rayon Grade plant was the
first in India to use totally indigenous wood resources with in-house technology
for producing rayon pulp with an innovative oxygen bleaching process to reduce
the use of chlorine.
Kharach
The VSF plant at Kharach, set up in 1996, employs the most modern technology
giving it a competitive edge in the export market.
Joint Ventures (JV)
Thai Rayon Promoted in 1974 by the Aditya Birla Group, Thai Rayon is the sole
manufacturer of Viscose Rayon Staple Fibre (VSF) in Thailand. More than 50 per
41
cent of Thai Rayon's VSF throughput is directly exported to more than 20
countries worldwide. The VSF meets the stringent quality expectations of
customers in USA, Mexico, Europe, Turkey, Canada, Israel, Australia, South Korea,
Philippines, Indonesia, Pakistan, Bangladesh and Sri Lanka.
PT Indo Bharat Rayon Marketed under the brand name of 'Birla Cellulose', the
company produces a wide range of VSF in engineered specifications for textiles
and non-woven applications. The company's strong focus on environmental
protection is reflected through its investments in a sophisticated state-of-the-art
waste-water treatment plant and scientific waste disposal systems.
Grasim has joint venture with the following overseas companies:
AV Cell and AV Nackawic in Canada
AV Cell and AV Nackawic supply dissolving grade pulp to the Group’s VSF
units in India, Thailand and Indonesia.
Birla Lao Pulp & Plantation Limited in Laos
To further strengthen the backward integration in pulp, Birla Lao has
been formed as a JV with other associate companies for raising captive
plantations at Laos. This will provide a low cost source for wood to meet
future requirements of a green field pulp plant in due course of time.
Birla Jingwei Fibres Company Limited in China
The JV with Hubei Jingwei Chemical Fibre Company Ltd. was formed in
2006 for manufacturing VSF. Currently, this plant has a capacity to
produce VSF of 35,000 tpa.
This spread and scale of operations make the Group's VSF operations very cost
competitive. Moreover, vertical integration into plantation, manufacturing of rayon
grade pulp and horizontal integration into production of principal raw material
required for VSF production, namely, caustic soda, intermediate inputs namely CS2,
42
sulphuric acid along with captive power and steam generation facilities, further
enhance its competitive edge.
Research & Development
Grasim has established a very strong R&D base covering different stages of the
value chain such as:
Grasim Forest Research Institute, Harihar is involved in R&D of forestry. Birla
Research Institute for Applied Sciences (BRI), Nagda is involved in the
development of different generations of cellulosic fibres. Textile Research
Application Development Centre (TRADC) at Kharach, a NABL accredited Lab, is
involved in addressing research and development related to downstream textile
value chain comprising various fibres, yarns, processing, garments, etc.
With the capability to offer the entire range of cellulosic fibre under the umbrella
brand of “Birla Cellulose”, Grasim has positioned itself as a dependable supplier
of cellulosic fibres for “Feel, Comfort & Fashion” across global markets. To
penetrate into niche market segments and to grow further, the division has
ventured into the production of high performance viscose fibres aptly named
Viscose Plus, High Wet Modulus Fibres (Modal) and new generation Solvent
Spun Fibres and Birla Excel. Grasim is also the largest producer of Sodium
Sulphate, a byproduct of VSF manufacture. This chemical is widely used in the
paper and pulp, detergent, glass and textile industries.
Cement
Grasim has grown to become a leading cement player in India. Grasim ventured
into cement production in the mid 1980s, setting up its first cement plant at
Jawad in Madhya Pradesh and since then it has grown to become a leading
cement player in India.
43
Grasim’s cement operations today span the length and breadth of India, with 11
composite plants, 11 split grinding units, four bulk terminals and 64 ready-mix
concrete plants as on 30 June 2009.
All the plants are located close to sizeable limestone mines and are fully
automated to ensure consistent quality. All units use state-of-the-art equipment
and technology and are certified with ISO 9001 for quality systems and ISO
14001 for environment management systems.
Chemicals
Grasim has India's second largest caustic soda unit. Rayon grade caustic soda is
an important raw material in VSF production. To achieve a reliable and
economical supply of this chemical, Grasim set up a rayon grade caustic soda unit
at Nagda in 1972, with an initial capacity of 33,000 tpa. This has since grown to
258,000 tpa, making it the country's second largest caustic soda unit.
Textiles
Grasim has strong nation-wide retail network and also caters to international
fashion houses in USA and UK. Grasim has a strong presence in fabrics and
synthetic yarns through its subsidiary, Grasim Bhiwani Textiles Limited, and is
well known for its branded suitings, Grasim and Graviera, mainly in the polyester
- cellulosic branded menswear.
Grasim's strong nationwide retail network includes 50 exclusive showrooms as
well as 200 wholesalers and 25,000 multi-brand outlets through which it reaches
its customers. Grasim caters to international fashion houses in the USA and UK
44
supplying fabric to them for manufacturing of garments, which are available in
some of the largest retail chain stores.
Sources of competitive advantage
Cost: Grasim is the lowest cost producer of VSF in the world. It is the most
integrated fibre producer with the chain stretching right from Forest to Pulp to
Fibre to Yarn. All most all the intermediate inputs are captive. Besides, their in-
house engineering division enables us to grow in a most cost effective way.
Technology: On technology front, they produce all the three generations of man-
made cellulosic fibres from an in-house developed capability through research
and development. Their research and development efforts are not limited to
fibre stage alone but extend to entire textile value chain. While the plantation
and related activity is carried out at Grasim Research Institute (GFRI, Harihar,
India), the Product innovations are carried out at Birla Research Institute (BRI,
Nagda, India). For value chain related activities, a state of art “Textiles Research
& Application Development Centre” has been established at Kharach, Gujarat-
India to entire textile value chain from yarn to fabric to garments.
Markets: On marketing front, their reach extends to the entire globe, through
marketing offices. On a global level, their major strength is in spun-dyed fibres
and now other specialties such as Non-woven, Modal and Excel have started
penetrating in global markets. Their brand “Birla Cellulose” is firmly entrenched
in the market. Their value added marketing services comprising of technical,
logistical, financial, marketing and informational support have enabled us to
emerge as the most preferred supplier of VSF in world. Our offerings whether
from India, Thailand, Indonesia or China are all marketed under the mother
brand “Birla Cellulose” and sub brands Birla Viscose, Birla Modal & Birla Excel.
An umbrella brand has enabled us to create a common identity for our product
45
across the globe irrespective of its production origin and creating of awareness
of the brand.
Consumer Products Division of Grasim Industries
Grasim Industries, an Aditya Birla Group Enterprise has started its Consumer
Product Division with various personal care & home care dry & wet wipes
products. This marks the company’s foray into the Indian FMCG market. The
Indian FMCG market is of US$13.1 billion and is the fourth largest sector in the
economy. FMCG Sector is expected to grow by over 60% by 2015. That will
translate into an annual growth of 10% over a 5-year period.
In 2008 the company launched Kara skin care wipes and Prim Home Care wipes.
Kara Skincare wipes is positioned as an essential skincare accessory.
In 2009, Grasim entered the baby care segment with the launch of Puretta.
Puretta is targeted at today's mother, who opts for a contemporary and
convenient lifestyle. Introduced for the first time in India, the Puretta product
portfolio includes Complete Cleaning Wipes, Germ Shield Wipes and Skin
Nourishing Wipes.
Birla Cellulose is the Aditya Birla Group's umbrella brand for its range of
cellulosic fibres. It comprises versatile sub-brands; Birla Viscose, Birla Viscose
Plus, Birla Modal, and Birla Excel. These brands offer a wide range of functional
benefits such as soft feel, high moisture absorbency, bio degradability and
46
comfort to the wearer. These fibres have multiple applications including apparel,
home textiles, dress material, knitwear, non-woven etc.
Fibre is one of the oldest businesses of the Aditya Birla Group that commenced in
1954. Birla Cellulose is a world leader in viscose staple fibre (VSF). Its
production is spread across six countries, viz. Canada, Thailand, India, Indonesia,
China and Laos. The Group independently fulfils India's entire VSF requirements.
With a strong focus on Research and Development (R&D), the Group's R&D
initiatives span the entire value chain.
Grasim Forest Research Institute — pulp to plantation research
Birla Research Institute for Applied Sciences — pulp to fibre research
Textile Research & Application Development Centre (TRADC) — value
chain from fibre to garments / made ups
"Nature is the genesis of all that surrounds us; therefore, what other than nature
could be the origin of Birla Cellulose.”. Nature is the source of Birla Cellulose and
herein the inspiration of our logo lies.
'Fibers from Nature' is our theme and our message: Leaves fall and grow all over
again; they are a renewable resource of nature. Birla Cellulose is much like these
leaves and is made from the same trees. The floating leaves symbolise the key
characteristics of Birla Cellulose which are "comfort and lightness". The vibrant
green indicates that Birla Cellulose can take on vibrant colours. The circle
signifies the cycle of nature and sustainability.
Nature remains the underlying theme for all our brands:
Viscose is symbolised by the fresh green of summer
Modal is symbolised by the burnt orange of autumn
Excel is symbolised by the deep pink of spring.
47
An integrated outlook
Birla Cellulose is growing by leaps and bounds through both organic and
inorganic route. The efforts towards integration and self-sufficiency are as
follows:
Backward integration into pulp and plantation.
Captive power plant at all locations.
In house manufacturing of all major chemicals and auxiliaries used in VSF
manufacturing.
Attributes of Birla Cellulose
Natural: Soothing, comforting and elevating, Birla cellulose exhibits all qualities
of its source nature.
Stylish: The drape and fall of Birla Cellulose with its natural inheritance is a
fashion statement.
Timeless: Just like nature, Birla Cellulose, is timeless and shall always remain in
vogue.
A fashion catalyst: A hint of Birla Cellulose in your wardrobe brings in the
glamour that differentiates between mundane and fashionable.
Versatile: Birla Cellulose combines the best properties of all fibres. It is
extremely bendable hence enhancing the realms of possibilities in clothing.
Birla Cellulose - Fibres from nature contributing to a green world
48
Preserving our environment has always been the inspiration behind Birla
Cellulose. It has successfully achieved this goal through the following initiatives:
Nurturing and building the green cover
Over a million plantlets are being produced from identified superior
clones for development of clonal orchards and plantations.
Land conservation
Efforts are on to encourage tree-farming practice on marginal, sub-
marginal and fallow lands to the best advantage of the country. The yield
of Viscose is seven times that of cotton for the same land area. Thus
significantly contributing to conservation of land, and reaping maximum
results from this limited resource.
Water conservation
Birla Cellulose Viscose is highly environment friendly. Every kilogram of
viscose produced saves 200 buckets of water when compared to cotton.
Thus it preserves one of the most valuable natural resources.
Process friendliness
The process being followed for production is environment friendly and
green due to the following advantages:
Non toxic effluent as a result of replacement of zinc by alum
Less solid waste generation due to reduced lime consumption
Reduced risk of fouling biological microorganism in reactor
Spun Shades
This variant is environment friendly and results in conservation of water
throughout the value chain. It is Okeo Tex certified, i.e. it meets the
ecological requirements set for baby articles.
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Birla Cellulose: The perfect blend
Birla Cellulose fibres are the perfect blend with all types of fibres. The benefits of
using Birla Cellulose as a blend are as below:
Birla Cellulose blends Benefits of blending with Birla Cellulose
Birla Cellulose-cotton Makes cotton soft and supple
Improves fabric uniformity
Imparts sheen and colour brilliance
Birla Cellulose-wool Improves wear properties
Imparts softness
Enhances skin friendliness
Adds shine and luster
Birla Cellulose-silk Maintains sheen of silk
Improves comfort
Economical and fashionable
Birla Cellulose-
synthetics
Improves comfort, breathability, lustre and skin
friendliness
Birla Cellulose-elastane Offers excellent sheen, comfort and stretch
Birla Cellulose-elastane Offers excellent sheen, comfort and stretch
PRODUCTS OF BIRLA CELLULOSE
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Aditya Birla group announced its foray into the baby care segment in India by
launching ‘PURETTA’ 100 per cent natural and biodegradable baby care wipes in
2009. Product portfolio includes Complete Cleansing Wipes, Germ Shield Wipes
and Skin Nourishing Wipes. These wipes are safe for the baby’s delicate skin as
they are alcohol free, hygienic, hypoallergenic and dermatologically tested. Since
Puretta (meaning pure and diminutive) is made from Birla Cellulose, soothes the
baby’s tender skin with its soft and nature-friendly properties.
While the usage of baby wipes is growing in India, there is limited access to
quality products at the right price points. Most of the products available today
are imported, and are primarily regular wet wipes that do not serve the specific
needs of baby care. Puretta fills this gap with its three distinct variants, aiming to
satisfy the need of Smart Moms.
Most of the other wet wipes in the market today are made from Polyester-
Viscose blended non- woven fabric or paper. Polyester is not skin friendly and its
repeated use on the skin is not advisable. Paper tissues tear off when rubbed
over skin and leave lint on face in a way that can often embarrass the user. While
Puretta is made up of non-woven fabric which absorbs sweat, extra oils from the
skin without scrubbing it. It doesn’t wither when rubbed hard and doesn’t leave
lint on facial skin or stubble.
Characteristics of Puretta Baby Wipes
Safe for baby’s skin.
Hygienic.
Hypoallergenic
Dermatologically tested.
Alcohol free.
With mild fragrance.
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Convenient- hassle free cleaning and application of lotions without using
towel or cotton balls.
Portable.
With optimized efficacy.
For complete baby care.
Variants of Puretta
Complete Cleansing Wipes
Complete cleansing baby wipes are enriched with chamomile extracts these
wipes are gentle and soothing to the baby’s skin ensuring complete cleansing
while retaining the pH balance of the skin. It is a smart way to clean the baby
completely anytime & anywhere.
It is basically used on baby’s nappy area and can be used on complete body of a
0-3 years of babies. It is used for following:
Every nappy or diaper change.
For cleansing in the absence of regular bath while travelling or in
winters.
Wipe entire body to keep baby clean and fresh at all times, day or night.
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Provide soothing relief.
Most of the other wet wipes in the market today are made from Polyester-
Viscose blended non- woven fabric or paper. Polyester is not skin friendly and its
repeated use on the skin is not advisable.
Paper tissues tear off when rubbed over skin and leave lint on face in a way that
can often embarrass the user. While Puretta is made up of non-woven fabric
which absorbs sweat, extra oils from the skin without scrubbing it. It doesn t ‟
wither when rubbed hard and doesn t leave lint on facial skin or stubble.‟
Skin Nourishing Wipes
Skin Nourishing Baby Wipes keeps the baby’s skin soft and nourished always,
after a bath or even during the dry season. Enhanced with Mineral oil and Pear
extracts, it leaves a protective layer of moisture on the baby’s delicate skin. A
smarter way to keep the baby’s skin nourished anytime, anywhere.
It is used on baby’s complete body especially hands, feet, face, neck and back
area. It is a good add-on or occasional substitute for baby oil massage. It is
basically for babies of age 0-3 years but can also be used for older children with
sensitive skin. And it is used for following:
Essential to keep baby’s skin soft and nourished always.
After bath and during dry season.
While travelling or exposure to air-conditioning at home
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Germ Shield Wipes
Germ Shield Baby Wipes contains antiseptic properties to protect the babies
from germs always. Enriched with Lavender extracts, it leaves the baby’s skin
refreshed. A smart multipurpose option for not only sanitizing baby’s hands and
mouth but also utensils, tethers and toys, anytime and anywhere.
It is basically for 0-5 year old babies but can also be used by older children while
travelling and also advisable for adults handling the babies. And it is used for
protecting the babies from germs throughout the day with natural antiseptic
properties.
Essential to clean baby as he/she gains mobility and crawls on surface
that may be contaminated.
After play time, before food and especially while travelling.
To sanitize baby’s utensils, tethers and toys.
PRIM Home & Kitchen Care Wipes
PRIM is basically dry wipes used in Kitchen and various multipurpose household
works. It can be used to wipe the utensils and cutleries. One wipe can be used for
at least a month in the kitchen. There is no product in the market in this category
but Scrotch brite is there which is seen as the substitute of the product. Usually
cloth is used as the substitute in most of the families but if the promotion is done
properly to make the consumers aware of this product it will do very good in the
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market because of very less competition in this category. There are two packs
available in the market one is three wipes pack and the other one in five wipes
pack.
HANDYS - Hand sanitizing wipesHandys hand sanitizing wipes have been shown to clean and sanitize hands more
effectively than rub-in gels. These sanitizing wipes are extra tough on germs,
killing 99.9% of germs. Though there are few companies who manufacture
sanitizing wipes, but all of them are alcohol based. Handys is the only sanitizing
wipe which is Triclosan based and as sufficient as alcohol in killing germs.
Triclosan is one of the antibacterial and antifungal and even toothpaste. Grasim
Industries outsource Triclosan from vivimed Labs based in Hyderabad. The
wipes contain 0.1% Triclosan which is sufficient to give required anti bacterial
properties.
Rub-in gel sanitizers can not remove stain marks or dirt but sanitizing wipes are
very efficient in cleaning hands. It is gentle on hands, containing moisturizers,
aloe vera and silicones. Clinically tested, our hand sanitizing wipes provide
convenient protection anywhere, anytime when soap and water are not
available. It is an excellent product for anybody seeking hygiene and prevention
from infections.
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KARA Skin Care Wipes
Grasim Industries has started its Consumer Product Division with various FMCG
products which includes personal care & home care dry & wet wipes products.
The main product of our concern for the research is Kara Skincare wipes.
It is not easy to look beautiful all the time and it gets even harder when you are
out of home with pollution, dust and heat. Introducing for the first time in India,
Kara a complete range of skincare wipes.
In India, the market for wet wipes was gradually picking up with changing
lifestyles and the fast pace of life among the young and upwardly mobile
population with higher disposable income.
''Kara skincare wipes fill up the lacuna in this segment as there is lack of
availability of quality products at appropriate price in the Indian market.''
Kara Skincare wipes is a new product to hit the Indian market. The brand is now
running heavy print campaign announcing the launch. Kara Skincare wipes can
be called as India's first branded skincare wipe product. Skincare wipes are
popular in the west but in India the category is a new one. Although Indian
consumers are familiar with the products which are imported, it’s the first time
that an Indian company enters this segment Kara means care. The brand also
marks Aditya Birla Group's foray into the Indian FMCG market.
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The brand aims to create a new category of wipes in India. Hence the challenge is
to educate the target audience about the usefulness of this product. This task is
cut out for Kara since the customer is already exposed to such products. The only
task is to inculcate the habit of buying and using the wipes. The product is
relevant in the Indian market for two reasons.
One is the climate which necessitates such a product and
Second is the growing number of lady professionals.
The brand has the tagline “At your best always” this clearly communicates the
core brand positioning. The brand is being promoted as the anytime solution to
look good.
Also Kara is loaded with lotions for different application like deep pore cleansing,
moisturizing, toning, sunscreen and make up remover.
Rejuvenating the skin is a natural property of mint oil and cucumber coupled with
aloe Vera for skin nourishing – in refreshing wipes.
Jojoba and Avocado unclogs pres, detoxes and exfoliates dead skin in Deep Pore
Cleansing wipes.
Rose and Thyme are well known to have toning properties – used in Toning Wipes.
Honey and Almond are age – old products for removing dryness of skin and
moisturizing present in – moisturizing wipes
Aloe Vera and plum have natural sunscreen properties – Kara Sunscreen wipes.
Lavender cleaning and relaxing properties while Seaweed has nourishing effect on
skin – both used for makeup removal wipes.
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Kara has a good potential to create and own a new category. The brand already
has the first mover advantage. But the category does not have much entry
barriers. It can face stiff competition from cheap imports. But Kara has the
financial backing of Birla group and the investment in building this brand will
pave the way for another successful marketing story.
Kara is readily available pan India at superstores, cosmetic and chemist outlets
and modern retail. The ease of usability of a convenient and high value product
at an affordable cost in India for a young and mobile population is a huge
opportunity that Kara wishes to address.
Kara wipes were highly effective with unique formulations having natural
ingredients that nourish the skin. They are alcohol free and dermatologically
safe. Kara is made from 'Birla Cellulose', a fibre that is 100 % natural and
biodegradable
Compactly packaged and pre-moistened Kara skincare wipes give a hygienic,
convenient and effective skincare solution to the consumers on the go. These
wipes are easy to carry and use.
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Raw Material Used for KARA
Kara is made of 100% Viscose. Viscose is Purer & Softer and more absorptive
than Cotton. VSF is 100% Natural and 100% Biodegradable. The material is non-
woven fabric which absorbs sweat, extra oils from the skin without scrubbing it.
It doesn’t wither when rubbed hard and doesn’t leave lint on facial skin or
stubble. Most other wet wipes in the market today are made from Polyester-
Viscose blended non-woven fabric or paper. Polyester is not skin-friendly and its
repeated use on the skin is not advisable. Paper tissues tear off when rubbed
over skin and leave lint on face in a way that can often embarrass the user.
How it works
The science behind this dullness is the formation of unstable molecules called
free radicals when your skin is exposed to elements like pollution, sun, wind,
temperature, and stress during the day. These react with the skin to deplete skin
proteins (collagen) and thus weaken the skin substrate to cause a slow
continuous ageing, which one does not realise till the effects start showing in the
form of wrinkles and sagginess. How do we prevent this? The answer lies in a
regular dose of nourishment for your skin that is rich in antioxidants.
With a new innovative product range of Kara ™ Skincare Wipes rich in natural
extracts, this once incurable problem has found an extremely simple answer.
What you could not do so far through the day is now possible as many times as
you want. A critical three step action which cleans your skin, gives it essential
hydration and replenishes the vital nutrition of the skin can be done in one easy
swipe, thanks to the advanced skin wipe technology from Kara. Its unique
innovative three step action that is set to change your skincare routine, and
ensure that the skin stays young and vibrant all though the day.
1. Skin cleaning: Skin experts recommend thorough cleaning of the face before
applying anything in order to avoid blocking of pores with lotions which can
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result in boils, acne and pimples. To take care of this, every skincare wipe has
fibrils on its surface which ensure thorough cleaning of the skin pores when they
come in contact with the skin.
2. Hydration: The benefits of water in preventing skin ageing and dullness are
well established. Each skincare wipe has 80% aqua loading which is transferred
to the skin, ensuring a rich, ageless and healthy skin.
3. Nourishment: Antioxidants are substances that combat free radicals, and thus
help reverse the process of ageing. A steady dose of antioxidants through the day
helps in preventing skin ageing. Each Kara wipe has natural ingredients like
avocado, aloe Vera and almonds etc. which serve as antioxidants, and thus
nourish the skin constantly to gradually reveal flawless glowing skin.
This three step action was always a very critical need for the skin, and with the
revolutionary wipe format of skincare, it has enabled women to rectify dull
sagging skin all through the day. Additionally, a mesh like structure of the easy-
to-carry around wipe helps to hold just the right amount of lotion for one time
usage, and a superior applicator technology that regulates the uniformity of
lotion absorption into the skin. Therefore, the right amount of skincare at the
right time is the Kara way of doing skincare. Make Kara skincare wipes a habit,
and see your skin rejuvenate and glow with health and beauty, forever!
Manufacturing Facility of KARA
Kara wipes are manufactured at the company’s plant at Kharach, Gujarat. The
plant layout is approved by FDA and manufacturing activity takes place under
stringent conditions that ensure user safety and hygiene.
Aditya Birla Group launched this product i.e. KARA skincare wipes in 2008. It is
basically a solution to skin care regime out of home– a convenient way to be at
your best always. Sometimes your hectic schedule leaves you with little time to
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take care of your skin. But with Kara skincare wipes in your bag, you can now take
care of your skin even when you are on the go.
With the unique formulation of natural ingredients, these wipes are easy to use
anytime and anywhere. What’s more they are made from Birla Cellulose, a fibre
that is 100 per cent natural and biodegradable.
Kara skincare wipes are the India’s first branded skin care product. These types
of products are very popular in west but in India the category is new one.
Although Indian consumers are familiar with the products which are imported, is
the first time that an Indian company entered this segment. The brand also
marks Aditya Birla Group’s foray into the Indian FMCG market. According to
reports, wipes market is worth around Rs. 30 crore (Source: Ginny filament
Website). Kara skincare wipes are positioned as an essential skincare accessory.
The brand is targeting the young lady professionals who often need to meet lot of
people. The brand aims to create a new category of wipes in India. Hence the
challenge is to educate the target population about the usefulness of this product.
Hassle free application of lotion without using cotton balls.
Portable
Optimized efficacy.
100 per cent natural and biodegradable.
Hygienic.
Alcohol free.
Dermatologically safe.
Assurance of ‘Aditya Birla Group’
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Variants of KARA
Deep Pore Cleansing Wipes
Kara Deep Pore Cleansing is a gentle, effective way to clean your skin of
dirt, grime and excess of oil. Enriched with Jojoba and Avocado extracts, it
unclogs pores, detoxifies and thoroughly exfoliates dead skin cells.
Sunscreen Wipes
Kara sunscreen wipes has a formulation of SPF 20 which protects the skin
from the adverse effects of UV A and UV B sun rays. It is enriched with
antioxidants like plum extract and vitamin E that nourishes the skin and
Aloe Vera that keeps the skin moisturized.
Moisturising Wipes
Kara Moisturising wipes is enriched with the goodness of almond and
honey for beautiful radiant and glowing skin. It is also fortified with
vitamins for skin conditioning and is suitable for use right throughout the
year.
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Toning Wipes
Kara Toning Wipes is enriched with Rose and Thyme extract that tighten
the skin and maintain the normal pH balance.
Make Up Removal Wipes
Kara Make-Up Removal Wipes are enriched with Lavender and Seaweed
extracts that removes the make-up in just one swipe.
Refreshing Facial Wipes
Kara Refreshing wipes are enriched with Aloe Vera for skin nourishment
and mint oil for effective freshening. It ensures effective cleansing to
remove dirt, excess oil and grime from the face and neck and also leaves a
lingering fragrance.
Disposable Wipes Market
Industrialization and urbanization has led to concentration of human settlement
at urban centers, which are the hub of the commercial activities.
Industrialization has also led to an increase in personal income levels and the
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consequential expansion of the middle class, allowing a greater number of folks
to indulge in value added consumer disposable items like facial cleaning wipes,
moist towelettes, personal hygiene wipes and time-saving products like
household cleaning wipes etc. The growing use of wipes in industrial and
consumer applications, combined with modernization and increased consumer
awareness, has led to an increase of demand of wipes globally.
Wipes started at the bottom or more precisely, the baby’s bottom. Yet, during the
past decade, the category has grown to include hard surface cleaning, makeup
applications and removal, dusting and floor cleaning. In fact, applications other
than baby care now account for about 50% of sales in the wipes category.
Disposable wipes have evolved into a global business concept generating more
than $5 billion in sales a year. Achieving strong double-digit growth year after
year, the category now assumes a major role in the personal care market.
Spanning from make-up removal and deodorant wipes in personal care to floor
and furniture cleaning products in household care, disposable wipes have
gradually expanded to offer a wide range of new applications, replacing the
traditional combination of cloth, cotton and cleaning solution.
North America continues to be the leading market, and is projected to grow from
$4.5 billion in 2009 to $5.5 billion in 2014. Western Europe is second with sales
of $3.6 billion in 2009, which is predicted to grow to $4.2 billion in 2014.
According to reports, China represents more than 33% of the world’s spunlace
production, growing more than 33% between 2008 and 2009. More rapid gains
will be linked to developing nations such as China and India; China alone has
increased its demand for wipes to nearly $500 million in 2011 and will surpass
Japan as the leading market in the Asia/Pacific region.
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Classification of wipes based on application
Wipes mainly cater into 3 categories:
1.Personal Care wipes
2.Household & home cleaning wipes
3.Industrial cleaning wipes
As per the EDANA’s report in 2010, the total wipes deliveries in 2010, amounted
to 283,058 tonnes to be compared to 250,356 tonnes in 2009. They subdivide as
shown in table 1.
Personal Care wipes:
The personal care wipes market has increased by 15.7% compared to 2009.
• Baby wipes: Baby wipes are wet wipes used to cleanse the sensitive skin of
infants. These are saturated with solutions anywhere from gentle cleansing
ingredients to alcohol based cleaners. Baby wipes are typically sold in plastic
tubs that keep the cloths moist and allow for easy dispensing.
• Cleansing pads: Cleansing pads are fiber sponges that have been previously
soaked with water, alcohol and other active ingredients for a specific intended
use. There are different types of cleansing pads offered by the beauty industry:
makeup removing pads, anti-spot treatments and anti-acne pads that usually
contain salicylic acid, vitamins, menthol and other treatments).Cleansing pads
for preventing infection are usually saturated with alcohol and bundled in sterile
package. Hands and instrument may be disinfected with these pads while
treating wounds. Disinfecting cleansing pads are often included in first aid kits
for this purpose.
• Personal hygiene: These are usually pre-moistened and come either
individually packaged or in one larger container that can be resealed. These
kinds of wipes can be useful when you’re doing outdoor activities, especially
during warmer weather. The wipes can remove dirt and sweat before they settle
into your pores. Some no-rinse wipes can even remove waterproof makeup.
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Household & home cleaning wipes:
• Kitchen wipes
• Bathroom wipes
• Food service wipes
• Glass surface cleaning wipes
• Automotive care wipes
Industrial cleaning wipe
When it comes to industrial applications, choosing the right wipe for the job can
make an enormous difference in terms of performance, efficiency and economy.
Rags and laundered cloths were once the all-purpose solution for wiping dirt and
oils from equipment and hands. Convenient disposable wipes are now widely
recognized as the preferred alternative.
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Global demand for wipes
Pre-moistened or wet wipes are normally supplied to the consumer already wet
or pre-moistened with a liquid, while the dry wipes are supplied dry, with the
understanding that the consumer will add a liquid if needed. In 2009, wet wipes
contributed around 71% of the total wipes market. Over time, dry wipes are
predicted to gradually gain market share, growing from 29% in 2009 to 30% in
2014.
Raw materials for wiping fabrics:
• Polyester: It is by far the most common fiber for carded technologies. As per
the application and wipes categories the blend percentage varies. Normally the
Industrial wipes are made from 100% Polyester. It is estimated at nearly 43% of
the fiber consumed in spun lace.
• Viscose: It is another common fiber for wipes, especially for personal care.
Personal care wipes are used on very sensitive parts – baby care, facial wipes etc.
It has to be very soft, smooth and silky. Viscose fiber has all these properties and
because of these properties viscose fiber is referred as “art silk” in the textile
industry. Nonwovens industry producers have been working on developing
wipes that will flush. To create a flushable nonwoven product, the right
combination of strength, easy break up and dispersion is required. To be
considered truly flushable the wipe must also be biodegradable. Wipes made
from viscose fibers have all these properties and thus can be categorized has
flushable products. Household wipes are generally made up of polyester and
viscose blended fibers, polyester being the major component.
• Cotton: Environmental consciousness combined with price increases and
shortages in competing materials have created a strong market opportunity for
cotton in the nonwoven industry during the past two years, particularly in the
wipes market where the addition of cotton can boost absorbency and strength.
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Cotton has been enjoying a place in the private label baby wipes market, viscose
continues to be a dominant fiber in most spun lace applications, despite a global
supply shortage that has driven up prices.
Developed regions like the U.S., Western Europe and Japan will continue to lead
the global wipes market because of the large affluent population and lifestyle
trends focused on time saving products. Developing regions like China and India
will show a rapid growth for wipes – due to the industrial expansions leading to
express economic growth.
Opportunities for growth exist however they can only be realized by
continuously introducing innovative products. Wiping fabric manufacturers are
working hard to make sure their wipes customers have lots of choices when it
comes to environmentally friendly products. Some of the categories where we
can expect to see future growth are household cleaning wipes, toddler wipes and
facial wipes.
Baby care may have marked the beginning of nonwovens market; the marketers
are now moving into even more lucrative categories in an effort to expand the
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use of wipes beyond babies and are reaching to older kids and their parents.
Their portability and convenience, coupled with the hygiene aspect of their
single usage, has made them very popular with all types of consumers. Clearly
wipes are a rags-to-riches success story in the household and personal products
industry and we can bet that demand for these products will continue to grow.
In the never-ending drive to encourage consumer spending, advertisers are
targeting the hygiene habits of the young Indian male.
Analysis of Indian wipes market
In the last 3 years there has been an explosion in the number and types of wipes
available to the consumer. From baby wipes and facial wipes to disinfecting
wipes for your countertop and a slew of automotive wipes to keep your 4-wheel
“baby” shiny and supple. In a fast paced world, these wipes are designed for
convenience, whether that is for your own personal use or to deal with all those
thankless jobs around the house and garage.
Betting that rising incomes are persuading more Indian men to take better care
of their appearance, the Aditya Birla conglomerate is offering Kara – a new
weapon in the battle against the sweat generated as boys go about their daily
business. Kara is a face wipe designed to replace the damp cotton towel many
Indian men carry on their bikes and scooters as they negotiate the hot streets of
Mumbai or Madras. Male grooming products have become one of the fastest
growing segments of India’s consumer products industry as men pay ever more
attention to how they look and move away from a traditional emphasis on
intelligence as the ultimate male quality.
Datamonitor, UK-based market research consultancy, estimates that 50 per cent
of Indian men and women believe that physically attractive people have more
opportunities in life.
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“Rising affluence and greater consciousness of personal image and hygiene are
expected to drive growth in both rural and urban areas,” said Euromonitor, a
London-based market research firm, in a report. Sales of dedicated men’s
grooming products in India are estimated to be $500m a year, and rising at 15
per cent annually.
Changes in trends in the wipes market have also been driven by new product
developments and the positive reception of new product applications by the
consumer. The global market for wet wipes continues to grow, although it is
important to be cognizant of the challenges that will present great difficulties to
many. Those companies that can combine cutting edge technology with the
development of new and innovative ideas will survive in the long run. The wipes
in India are generally made of Viscose and Spun lace. Birla Cellulose
manufactures 98% of the Viscose Staple Fiber in India, so it is poised to do well
against other local players as they would have to purchase VSF from it.
The disposable facial wet wipes market is estimated at Rs 8 crores. Kara holds a
dominant position in market with turnover of Rs. 4.5 crores thus capturing 56%
of the market. However the sector in India is currently fragmented and
unorganized. Ginni filaments (Noida) also hold a strong position in wet wipes
market, though their product can’t be matched in terms of quality to Kara.
Wipes witnessed a surge in the number of players vying for consumer attention
towards the latter half of the review period. Grasim Industries Ltd undertook
intense brand activity in 2009 and 2010, while Johnson & Johnson (India) Ltd
launched a baby wipes product line in 2010. Others such as The Himalaya Drug
Co. and Godrej Consumer Products Ltd launched brands in 2009 and extended
their portfolios over 2010. Private label players Apollo Pharmacy and Pantaloon
Retail India Ltd heightened their brand promotions through point-of-sale
visibility in 2010.
The disposable wet wipes market, fairly niche and nascent in India, has
grown to Rs 8 crores. Birla Cellulose (Consumer Products Division of
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Grasim Industries), which has launched three brands in this category
namely Kara, Puretta and Prim for various purposes over the last couple
of years, accounts for Rs 4 crores of the market.
In the US and Europe, 6 and 10 per cent of the income is spent on
disposable products. In India, it is 0.0001 per cent.
Worldwide, wet wipes are a $6-billion category, but in India, it’s a nascent
category, and a lifestyle item at that, not an essential one, so it will take a
while before there comes an inflection point.
The disposable wipes market posted double-digit growth in 2008.
Consumer awareness about hygiene products increased as a result of
increasing advertising, price reductions and the launch of cheaper
variants by manufacturers over the latter half of the year. Skin Care wipes
also benefited due to the faster pace of life in cities and the rise in the
number of nuclear families and working women, who tend to rely more
on disposable products when working in the kitchen or whilst travelling
outside of the home.
The wipes in India are generally made of Viscose and Spun lace. Birla
Cellulose manufactures 98% of the Viscose Staple Fibre in India, so it is
poised to do well against other local players as they would have to
purchase VSF from it.
The leading market research agency KSA TECHNOPAK conducted a
market survey & discovered that there is a huge untapped potential for
wipes in India. According to the survey after Delhi NCR and Chandigarh,
Lucknow is the biggest market for cosmetics in North India.
The disposable wipes market in India faces stiff competition from cheaper
Chinese imports.
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Competitive Landscape
The stronghold of Tainwala Personal Care Products Pvt Ltd on wipes gradually
waned over the latter half of the review period. The company built on its first-
mover advantage in the review period, and still commands 70% of all wipes
value sales in India. However, the swift emergence of national players such as
Grasim Industries Ltd, The Himalaya Drug Co, and private label players has
caused disruption to its lead in both general purpose wipes and baby wipes.
Prospects
Wipes constituted less than 1% of retail hygiene value sales in India in 2010.
With such products not being traditionally popular in the country, the category
still relied on niche consumer segments or season-dependent sales. Though
home care wipes and floor cleaning systems is not likely to see any major
developments over the forecast period, other product categories under personal
wipes – including intimate wipes and cosmetic wipes – are expected to
contribute more to wipes growth overall. In a similar trend to the review period,
a majority of value sales growth in all wipes categories will be due to the entry
and marketing push of national manufacturers.
The Indian tissue and hygiene market is very small and largely untapped.
Untapped market potential
As per the leading market research firm, Euromonitor, the market size of away-
from-home tissue and hygiene segment in the year 2010 is estimated to be Rs 3,
115.5 million; Retail tissue and hygiene market size is Rs 18, 623.8 million;
Hygiene market size is Rs 12, 454.2 million; and the Tissue category has the
market size of Rs 3, 895.6 million. But what’s the reason behind the low
penetration of tissue and hygiene market in India? The reason could be lack of
awareness and sensitivity/ attention paid towards the hygiene in India.
Lack of awareness in the category
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Traditionally in India, very few consumers are habituated of face wipes. The
players in tissue and hygiene category needs to pay more attention on
generating consumer awareness relating to use and benefit of hygiene related
products. One such initiative is taken by Birla Viscose brand - Kara Skincare
wipes, which was launched nearly four year ago in 2008, as a new category in the
tissue and hygiene care. At first, the challenge for the brand was to educate and
create awareness among its target audience – the young consumers, about the
use of skin wipes. The brand used BTL and ATL marketing tools which helped it
to be recognised among its target audiences.
Urban vs. rural market
About 70 percent of India’s total population resides in rural India. With growing
income of the consumers from rural India, the industry is focusing more on
producing specific products, SKUs, priced reasonably for these markets. As per
Euromonitor International Report, in categories such as beauty and personal
care; consumer appliances; homecare and retailing; India ranks close to breaking
into top 10 markets in the world by retail value. But India’s global ranking in
tissue and hygiene category is world’s lowest in terms of value market share.
Traditional barriers
Cultural barriers to consumption have prevented the tissue and hygiene industry
from scaling the growth heights achieved by other consumer goods industries.
Some of the categories such as toilet paper have market potential in urban
market only, rural consumers rarely uses toilet papers. Other categories such as
baby wipes and diapers are gaining market share in rural market. Still, tissue and
hygiene market can be considered as an urban phenomenon but the category has
huge untapped potential in rural areas as well.
Future potential
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The increased label penetration of branded tissue and hygiene products is
mainly seen in urban areas where the average disposable income is high and
they are more aware about hygiene related issues. But in recent times we have
seen that leading FMCG bands such as Proctor & Gamble, Johnson & Johnson,
Godrej, Dabur etc with their economic product range has been successful in rural
India. More consumer centric approach with small packs and lower price range,
tissue and hygiene market can successfully establish themselves in rural market.
Competition Analysis of Kara Wipes
Grasim Industries aims to create a new category of wipes in India . Hence the
challenge is to educate the TG about the usefulness of this product. This task is
cut out for Kara since the TG is already exposed to such products. The only task
is to inculcate the habit of buying and using the wipes. The product is relevant in
the Indian market for two reasons. One is the climate which necessitates such a
product and second is the growing number of lady professionals The brand has
the tagline " At your best. Always " which clearly communicates the core brand
positioning. The brand is being promoted as the anytime solution to look good.
Kara has a good potential to create and own a new category. The brand already
has the first mover advantage. But the category does not have much entry
barriers. It can face stiff competition from cheap imports. But Kara has the
financial backing of Birla group and the investment in building this brand will
pave the way for another successful marketing story.
As the advertisement with Anushka Sharma and Sharman joshi has also started
which is also enhancing the sales of Kara, it will also be able to tackle
competition with it. It clearly tells that Kara wipes are not only for women but
are also for men as shown in the advertisement of Kara wipes.
Competition is also raising in wipes market as the market of wipes is untapped in
India. Many domestic cosmetic as well as non-cosmetic companies such as
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Johnson & Johnson, Bilt, Gini and Good Look have enterned into the market with
their low price wipes to capture the market share. Simultaneously, many Chinese
wipes are coming to India with their lower cost and trying to capture market of
wipes as in many shops of wholesale market in Lucknow. Low prices along with
more wipes are being offered to wholesalers.
Competitors
Sound Wave Wet Wipes
Chinese Wipes
Ginni Wet Wipes
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Good look Wet wipes
Organic Wet wipes
These foreign wipes are also trying to capture the market of wipes which is still
untapped. As with the name of Aditya Birla its market will definitely grow
Michael Porter’s Five Forces Model
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Threat of New Entrance
Being a new and niche segment, wet wipes market was overlooked earlier but
due to entrance of big players like Johnson & Johnson and Aditya Birla group,
even small firms are coming into the market. Likewise niche markets, wet wipes
market has great potential of growth. When Aditya Birla Group came with its
cosmetic wipes range and no other company’s wipes were available in the
market and the company was enjoying a monopoly in Lucknow but the scenario
has changed, now the competition is available in the market. The major threat is
wipes like lotus, clarus, purple turtle, Etiquette by Built are available in the
market. These companies are giving high margins to the retailers and providing
to the customer at low cost. So the product price elasticity is affected by
substitute products. New entrants are coming to get and increase the market
share which is increasing the rivalry.
Threat of Substitute
There are many substitute of this product. Some has direct competition of the
product such as cheaper Chinese wipes, wipes of Johnson and Johnson etc. Some
are indirect competitor of Kara such as handkerchief, towel, tissue paper etc.
Bargaining Power of Suppliers
The main raw material used in making wipe is Viscose Staple Fibre (VSF) which
is largely manufactured by the cellulose division of Aditya Birla Group. Aditya
Birla Group sells Viscose Staple Fibre to so many domestic and international
companies those use this VSF in making of wipes and other products. For Kara,
there is no bargaining power of supplier because its own parent company
produces the raw material. On the other hand, for other wet wipes manufacturer,
bargaining power of supplier is very high due to sole supplier of VSF.
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Bargaining Power of Customers
Being availability of different variants of wet wipes of different companies such
as Johnson & Johnson, Bilt, Kara, Good Look and different Chinese companies,
wipes market is like buyers’ market rather than sellers’ market. Now, customers
have wide range of choice of product and have power to influence the price of
the product.
SWOT Analysis of Kara Wet Wipes
Strength
1. Under the flagship of well known brand Aditya Birla Group
2. Segmentation of specific wipes for specific purpose
3. Availability in seven variants which is maximum number of variants
compare to its competitors
4. Alcohol free product
5. Convenient for customers to use in busy and any situations.
6. Hassle free application of lotion without using cotton balls.
7. Superior Quality
8. Portable – It can be easily carried
9. 100% Natural, hygienic and Biodegradable produc
10. Dermatological Safe
11. The product is made up of pure viscose which has a 10 times better
absorbing power than cotton.
12. Best Brand – Compactly packaged and pre-moistened Kara skincare wipes
give a hygienic, convenient and effective skincare solution to the
consumers on the go. These wipes are easy to carry and use. They are
highly effective with unique formulations having natural ingredients that
nourish the skin. They are alcohol free and dermatological safe. Kara is
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made from Birla Cellulose, a fibre that is 100 percent natural and
biodegradable.
13. Free promotion – Kara wet wipes have partnership with spinz deodorant.
Sipnz deodorant is in the high demand so customer gets free trial on
purchase of every spinz which helps to promote Kara.
14. Company has been focusing merchandising of KARA at potential stores
like Papu Stores, Big Bazaar, Spencer etc.
Weakness
1. KARA hasn’t been spending much on advertisement which leads to low
level of awareness in market.
2. No infrastructure in Lucknow obstacle in operation.
3. Retailers have very less margin as compared to other brands.
4. Comparatively high price
5. Irregular follow-up by the salesman is hindering the sales to go up.
Opportunity
1. Lucknow is one of the fastest developing city in Uttar Pradesh. It is second
fastest growing city of U.P after Noida. Due to which there is a lot of
potential in Lucknow as a market for Kara wet wipes.
2. Lucknow has one of the highest consumer expenditure for cosmetic
market. Standard of living, status symbol & life style have been on rise
thus pushing up such demand. Growing market of skin care products in
Lucknow.
3. Hotels have been on rapid rise in Lucknow. Demand of wet wipes is high
in hotels.
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4. Restaurants can provide KARA wet wipe to their customers for
refreshment.
5. Beauty Parlour – Opportunity came out for Kara is refreshing wipes and
makeup removal could be used in beauty parlour operations like facial,
makeup, cleansing, body spa, massage etc could add value to customer
and in some of operation they could charge more from customers. KARA
can target local branded beauty parlours.
6. Gyms – KARA could be use in GYM for refreshment purpose of customer
after exercise.
7. Travel agency – KARA wet wipes is mostly used during travelling so travel
agency can be targeted.
8. People are gradually getting acquainted with the western concept of wet
wipes.
9. Huge untapped market.
10. Climate of India is favorable for such products.
11. Growing market of Skincare products in India
Threats
1. Stiff competition from cheaper Chinese wipes.
2. Very new concept of wet wipes in India.
3. High level of competition from main rivals like Johnson & Johnson,
Mystique, Dove, Fresh Ones.
The Chinese wipes have always gained a lot of popularity and it is very difficult
to remove their mark from the customer mind.
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Chapter-3
Research Methodology
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Research Methodology
Research methodology is the arrangement of condition for collection and
analysis of data in a manner that aims to combine the relevance to the research
purpose with economy in procedure. Research is conceptual structure within
which research is conducted. It is way to systematically study and solve the
research problems. The steps which complete the process are mentioned below:
a) Problem Identification
b) Development of Approach to problem
c) Research design Formulation
d) Fieldwork and Data Collection
e) Data Preparation and Analysis
f) Report preparation and Presentation
Research Design:
Research design begins with the identification of management decision problem
and the success of the research highly depends on the well description of
management decision problem.
A Research Design is a frame work or blue print for conducting the marketing
research project. It details the procedures necessary for obtaining the
information needed to structure or solve marketing research problem. Although
a broad approach to the problem has already been developed, the research
design specifies the details, the nuts and bolts of implementing the approach. A
research design lays the foundation for conducting the project. A good research
design will ensure that the marketing research project is conducted effectively
and efficiently. There are three types of research designs viz.
a) Exploratory: This type of research is done when objective is not known
and it helps in providing insight and understandings to define a problem.
It also involves formulation of hypothesis. The study involves finding out
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present data of demand for skincare wipes and prospective buyers and
consumers of the skincare wipes.
b) Descriptive: Descriptive study is an extension of exploratory study and it
contains people surveyed, method of analysis, data collection and analysis
of problem. Research was done to find out Market feasibility of Kara
skincare wipes, so that we can make strategies to establish our products
in the market in a better way, providing more awareness and place the
product properly as well as promote the brand and emerge as a good
competitor in the market.
c) Causal: It helps in determining the cause and effect relationships.
Manipulation of one or more independent variables is done to match with
the objective of our problem.
In this project, Descriptive Research Design had been used.
The major objective of descriptive research is to describe something, usually
market characteristics or functions. Descriptive research is conducted for the
following:
To describe the characteristics of relevant groups, such as consumers,
sales people, organizations, or market areas.
To estimate the percentage of units in a specified population
exhibiting a certain behavior.
To determine the perception of product characteristics.
To determine the degree to which marketing variables are associated.
To make specific prediction.
The Descriptive research can be classified in two methods:
1) Survey Methods: This method is used when the research directly
corresponds the respondent, makes him aware of our objective and seeks his
help in filling up the questionnaire. The respondent answers each and every
question thus giving his contribution to the study. Some of the observation
methods are: Telephonic Surveys, Mall intercept Mail surveys.
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2) Observation methods: This method is used when the researcher uses his
own judgment on behalf of respondent by observing his reactions and answers
when they interact with each other. The researcher tries to put all elements of
research questions in the conversation and seeks to find the answers without
letting respondent know about it.
In this project, Observation method as well as survey method has been used.
The former one has been used for retailers where they were unaware that they
are participating in the research with their conversation and latter one has been
used for all commuters of retail stores and online as well.
Scaling
Scaling is applied to the attempts to measure the attitude objectively. Attitude is
a resultant of number of external and internal factors. Depending upon the
attitude to be measured, appropriate scales are designed. Scaling is a technique
used for measuring qualitative responses of respondents such as those related to
their feelings, perception, likes, dislikes, interests and preferences. Most
commonly used scales are:
a) Nominal: Numbers serve only as labels or tags for identifying and classifying
objects. Only permissible operation on the numbers in a nominal scale is
counting
b) Ordinal: A ranking scale in which numbers are assigned to objects to indicate
the relative extent to which the objects possess some characteristic. In addition
to counting, one can place objects accordingly relative to their rank.
c) Interval: Numerically equal distances on the scale represent equal values in
the characteristic being measured. However the location of origin is arbitrary.
d) Ratio: Possesses all the properties of the nominal, ordinal, and interval scales.
It has an absolute zero point
In this project, all the questions have been designed using Nominal scale.
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Sample Size:
The data was collected through filling up the questionnaires, getting data from
retailers and thorough market survey and market research study. The sample
size for the study taken is 156 which includes online as well as online.
Sample and Sampling Techniques
Sample basically means a subgroup of elements of population selected for
participation in study. And number of elements to be included in the study is
known as sample size.
Execution of the sampling process requires a detailed specification of how the
sampling designs decisions with respect to the population, sampling frame,
sampling unit, sampling technique, and sample size is to be implemented.
Sampling technique is broadly classified as:
Non Probability Sampling– sampling technique that do not use chance
selection procedures and rather they rely on the personal judgment of the
researcher. Non probability sampling technique is further classified as:
o Convenience Sampling
o Judgmental Sampling
o Quota Sampling
o Snowball Sampling
Probability Sampling– a sampling procedure in which each element of
population has a fixed probabilistic chance of being selected for the
sample. And probability sampling is further classified as:
o Simple Random Sampling
o Systematic Sampling
o Stratified Sampling
o Cluster Sampling
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In this study basically Convenience sampling i.e. Non Probability Sampling
Technique has been used wherein I surveyed people online and people visiting
to malls, cosmetic stores, general stores, medical stores etc. of Lucknow.
Convenience attempts to obtain a sample of convenient elements. The selection
of the sampling unit is left primarily to the interviewer. In this type of sampling
technique often the respondents are selected because they happen to be in the
right place at the right time.
Convenience sampling is the least expensive and least time consuming of all the
sampling techniques. The sampling units are accessible, easy to measure and
cooperative. In spite of these advantages, this form of sampling has serious
limitations. Many potential sources of selection bias are present, including
respondent self-selection. Convenience sampling is not representative of any
definable population. This study basically included mall-intercept as the
sampling technique. And the sample size for the study taken is 156 people that
include all respondents online as well as offline. A close end questionnaire was
constructed for my survey. A questionnaire consisting of a set of questions was
presented to respondents for their answers.
Data Collection
Primary Data:
The first hand information bearing on any research is the one which has been
collected by the researcher. The data here is collected through:
A structured questionnaire
Personal interview of both retailer and consumers.
Secondary Data:
The data which has already been collected, complied and presented earlier by
any agency may be used for purpose of investigation. The data collected through:
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Various publications in form of annual reports, various papers and
journals published from time to time.
Through internet and Books
Limitations of the study:
Research is based on the collection of data from both primary and
secondary sources.
There may be a possibility of biasness on the part of some respondents,
but very much care has been taken to make this report unbiased.
Some respondents might not give the correct information due to their
lack of interest and shortage of time.
Small sample size of 156 may not represent the true picture as it would
have been by taking response from entire population.
All the information, which is taken, is biased on primary and secondary
data that has its own limitations.
Location constraint i.e. respondents from high profile location will
respond positively and respondents from lower level location will
respond negative, although, diversification of location has been
maintained and I have tried to cover almost all type of markets in
Lucknow.
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Chapter-4Analysis of data collected
88
Yes81%
No19%
1. Do you use wet facial wipes?
Figure - 1
The above statistic shows that 81% respondents are the user of wet facial wipes.
Being randomly surveyed a sample of 156 people online as well as offline, this
may not be the actual result in the market.
But, this huge positive response clearly indicates that the use of wet facial wipes
in Indian market has increased drastically over years. It also provides a scope
that people are shifting their mind from traditional liquid form of cosmetics
products to the wet wipes products.
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Johnson &
Johnson36%
Kara48%
Good Look5%
Bilt7%
Others4%
2. If yes, which brand of wet wipe do you use?
Figure - 2
The above graph is indication of market share of the wet wipes market specially
in lucknow. Here, Kara holds a dominant market position of 48% and the biggest
competitor of Kara is Johnson & Johnson that is giving a significant competition
to the market leader. There are many small players such as Bilt and good Look
and last but not the least the Chinese products those hold a small portion of the
wipes market. Kara is gaining first mover advantage and benefit of its backward
integration where its subsidiary company Birla Cellulose provides VSF which is
core raw material for the production of wet wipes.
Moreover, Grasim Industries needs to strategise to defend its market share
which is gradually decreasing and follower which is Johnson & Johnson grabbing
the market over years.
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Once in a
day17%
Twice in a day24%
Thrice in
a day5%
More than thrice2%
When required52%
3. How often do you use the wipe?
Figure - 3
Here, according to data, 52% respondents use wet wipes when they require the
same. However, 27% people use wipes twice in a day and 17% once in a day. The
people who uses wipes thrice in a day are 5% and more than thrice are 2%, thus,
we can feature on the pack or in advertisement that use of wipes twice in a day
can nourish your skin and can keep your skin healthy. This will result into high
increment in the use of the product and ultimately the sale will get a boost.
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Mall27%
Cosmetic Shop43%
General Store18%
Medical Store
9%Others
3%
4. Where from do you normally prefer to buy most of your skin care products?
Figure - 4
As Skin care products are associated with cosmetics, thus, 43% respondents buy
their skin care products from cosmetics shops. Significant economical growth
and liberalization in India has led the growth of malls in major Indian cities.
People are more open to buy their daily household and cosmetic products from
these malls. Malls stand at 27% in the graph, However, there is a shifting of
perception of the people that medical stores are not only visited for disease
based medicine but for also purchase of skin care products.
Hence, we should be not only focusing on cosmetic store for the sale of the
product but can also take medical stores and malls to place the product for the
increment in the sale.
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5 wipes8% 10
wipes32%20 wipes
27%
30 wipes18%
More than 30 wipes15%
5. Which pack do you think is ideal pack?
Figure - 5
Among all the respondents, 32% feels that 10 wipes pack is ideal pack. 20 wipes
pack may also be considered to target the mass customers, stands at 27% in the
graph. Only 8% respondents believe that 5 wipes pack is an ideal pack, although,
it is the smallest pack of Kara available in the market. Other large pack
containing 30 and more than 30 wipes pack did not get much response.
Therefore, we can promote the product with 10 wipes and 20 wipes pack with
better and attractive offerings to target large audience.
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Rs. 20-30
36%
Rs. 30-4030%
Rs. 40-50
20%
Rs. 50-60
6%
More than 60 but less than 808%
6. According to you, what should be the ideal price for the multipurpose medium size wipes
pack?
Figure - 6
Being availability of various variants of Kara at different prices, it provides an
option to customer to choose their ideal pack as per their budget for the cosmetic
products. Among all respondents, 36% believe the ideal price pack for them is of
Rs. 20-30 and Rs. 30-40 is the ideal price pack according to 30% of the
respondents. Even, 20% of respondents are ready to spend Rs. 40-50 on a
product like wet facial wipes. There are few but 6% and 8% respondents do not
feel expensive in spending Rs. 50-60 and more than Rs. 60 but less than Rs. 80
respectively.
Therefore, we can target with Rs. 20-30 and more than Rs. 30 price pack and
bring many schemes and other offers with this pack.
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Refresh-ing 50%
Moisturizing3%
Toning 2%
Cleansing44%
Sunscreen Protection2%
7. For what purpose do you use wipes?
Figure - 7
Indian hot weather has been an advantage for wet wipes manufacturer. People
are using wet wipes in the hot summer for wiping out sweat instead of using
tradition handkerchief. High life style among urban people has been a reason in
increment of use of wet wipes in Indian cities. Among all the people surveyed,
50% which is a huge percentage uses wet wipes for the purpose of refreshment.
Now people are more health and beauty conscious and 43% of the respondents
use wet wipes for the purpose of cleansing their skin.
We can design our campaign to feature refreshment and cleansing benefits and
how it can help in nourishing their skin. Other variants such as toning,
moisturizing, sun protection and make up removal those are very few
percentage holder in the graph, can be kept for the support in the second line
and cleansing and refreshment variant should be kept in front line to appeal to
the customers.
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Strongly Agree12%
Agree57%
Not sure18%
Disagree8%
Strongly Disagree5%
8. Being wipes are available from refreshing to complete make up range, you think wipes are be-
coming more useful than traditional liquid form of cosmetic products.
Figure - 8
We can infer from the response of the above question that 57% of the
respondents agree that wet wipe products are becoming more useful than
traditional liquid form of cosmetic products. Although, 12% of respondents
strongly agree and provide a scope for wet wipe companies that they can
approach with their products. A small percentage of people disagree and to some
extent strongly disagree that they can not think of switching over from
traditional liquid form of cosmetic products to wet wipe products.
Thus, we need to increase the awareness of the product and its different variants
for almost all purpose of cosmetic.
96
Yes81%
No15%
Not Sure4%
9. Are you aware of the brand kara?
Figure - 9
It is a very pleasant and satisfying result that being launched in 2008, Kara has
gained a significant awareness of its brand in the market. Among all respondents,
81% are aware of Kara and 4% are not sure but have heard of the brand
somewhere. Only 15% of respondents are entirely unaware of the brand Kara,
despite of its full effort in creating awareness of the brand.
Thus, we can infer that Kara in not at its introduction stage rather it is on its
growth stage where we need to provide information to customers in convincing
that how our product is different and better than products of the other players in
the market.
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Tv adver-tisement
58%Hoardings
7%
Retailer22%
Word of mouth13%
10. How did you come to know about kara?
Figure - 10
TV advertisement is highly responsible in creating the awareness of the product,
58% of the respondents is aware about Kara because of TV advertisement. This
shows the effectiveness of TV advertisement and its reach to the masses. People
recalls and associate the brand with the celebrity who is the endorser of the
brand. As retailers are one the main stakeholder in selling and promotion of the
brand, here, 22% respondents came to know about Kara because of retailers
wherefrom they buy their skin care products.
We can not ignore hoardings and word of mouth those accounts for 7% and 13%
respectively.
98
Excel-lent15%
Good67%
Aver-age11%
Bad6%
Worst2%
11. How do you find kara skin care wipes?
Figure - 11
All the efforts of marketing campaigns are worthless without a good product.
Effective marketing efforts can help in first time sale of a product but repeat sale
of the product is highly dependent on the performance of the product. The data
shows that 67% of the respondents are in favour of the product and consider
Kara a good product and further, 15% consider it even excellent. 11% of
respondents are not highly satisfied with the product and found the brand as
average. Last but not the least, 5% people ranked the product as bad and even
2% are highly dissatisfied and put the brand into worst category. We should not
ignore these 2% and 5% people, these are very few in numbers but these highly
dissatisfied customers can influence the satisfied customers not to use the
product by word of mouth.
Thus, we should try to enhance our product and make sure none of the
customers are dissatisfied post the use of the product.
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Fragrance12%
Re-freshness60%
Hy-gienic17%
Price4%
Brand name8%
12. What attributes influence you to like kara?
Figure - 12
Kara’s refreshment variant is most popular in the market. Refreshment is the
attribute that influenced 60% of the people I surveyed to like Kara. They feel that
after the use of Kara wipes, they have refreshment over their faces. Among 156
respondents, 17% are the people who like Kara because of hygienic attribute. It
provides a lot of hygienic benefits to its regular user. From secondary data, I
found that a couple years back, people dislike Kara because of its fragrance but
now the situation is completely different and the graph clearly shows that 11%
like Kara because of its fragrance only. Still people trust on branded product
rather non-branded, 8% respondents are fond of Kara because its brand name.
Only 4% have liking feeling because, undoubtedly the product is costlier than
other brands available in the market.
Thus, I think the brand name of Aditya Birla Group should be in front of the pack
and easily visible, we can enhance the product to provide more refreshing
benefit to its user to attract more customers.
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Fragrance10%
Softness of wipe
18%
Price 29%
Availabil-ity
41%
Others2%
13. What attributes lead you to dislike kara?
Figure – 13
It is very surprising that people dislike Kara because of its non-availability. The
statistic shows that 41% of the respondents have found Kara unavailable once
they have asked for it. Moreover, it resulted into dislike feeling towards the
brand. High price has been a factor because of that 29% of respondents do not
like Kara and prefer other cheap brand over it. They do not want to spend so
much on such cosmetic products and buy cheap wipes like of Bilt, Good Look and
Chinese wipe products. Being manufactured by VSF i.e. natural fibre, 18% of the
respondents still do not like the softness of Kara. High price and low quality is
being perceived by the customers that can create a huge ignorance of the brand.
Fragrance is not as attractive as it should be, that the belief of 10% of the
respondents.
Therefore, we should be more focused in placing the product onto all small and
major counters Lucknow markets. Wet wipes product is a small product and the
company should follow sale oriented marketing strategy. It should ensure
availability of the product keeping in mind the convenience of customers instead
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of selling huge numbers only some select counters. Kara is positioned to be high
quality product, thus, its high price may not hamper the sale of the brand but any
gap in the expectation and reality of the product can result into switch of
customers.
Quality51%
Attractive Packaging 10%
Utility14%
Value for money25%
14. What does make kara different from other brands?
Figure - 14
It is a very pleasant response from the user of the brand that 51% found the
product as a high quality product. Wet wipes are more or less same in all
attributes, therefore, quality is an attribute that can be used to differentiate Kara
from other different brands. Among all respondents, 25% found the price of
product is not very high as quality the company provides and they feel the
product is a value for money. Utility accounts for 14% and attractive packaging
stands at 10% in the above graph. It implies that only 10% of the respondents
found the packaging of the product is attractive than other brand available in the
market.
Hence, we should use quality as a unique selling proposition for the brand and
also should redesign the packaging of the brand more attractive keeping mind
the young generation customers.
102
Yes56%
No5%
May be
39%
15. Would you like to recommend Kara to your friends and family who are not using it?
Figure - 15
A good product gets promoted by its existing customers and creates many new
users. Once asked whether respondents would like to recommend Kara to their
friends and family members, 56% responded in yes and 39% may possibly
recommend the brand. Only 5% of respondents would not like to recommend
Kara to any of their friends and family members. This is after use effect of the
product, a good product with good attributes would compel its user to
recommend the brand others too.
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Male44%
Fe-male56%
Gender
Figure - 16
Females are more conscious about their beauty and use a lot of skin care
products. Here, 56% respondents are female and 44% male that shows that we
should target female most rather male. Moreover, we should not completely
ignore male customers, although they are not very much beauty conscious but
spend some portion of their income on cosmetic and skin care products.
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15-2583%
26-3513%
36-403%
Above 401%
Which age group do you belong to?
Figure - 17
The statistic clearly shows that teen ager and young people is the main user of
wet wipes. Out of total respondents, 83% belongs to the age of 15-25. Young
married females and males are the second most users of wipes that stands at
13% on the graph.
Thus, we should be more focused on targeting young school and college students
and last but not the least young working people who spends a large portion of
their income on cosmetic.
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(Rs. 0-10000)76%
(Rs. 10000-20000)12%
(Rs. 20000-30000)
7%
(Above Rs.30000)4%
Income group (per month)
Figure - 18
Here, 77% of the respondents fall under the income level of Rs. 0-10000 that
implies using wet wipe products is no more an extravagant activity, people with
low income or dependent on their family spend good amount on skin care
products. Upper middle class people those fall under the income level of Rs.
10000-20000 accounts for 12%.
Thus, Kara is not a luxurious product made for high profile people, even lower
middle class, middle class and upper middle class people can be targeted. They
are not very high user of wet wipes but surely they are in very huge numbers.
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Student82%
Working Profes-sional11%
Home Maker
2%Self Employed
6%
What is your profession?
Figure - 19
Kara is a product made for youth, now students are very conscious about their
look and life style. They are very much well informed and understand the
benefits of using these skin care products. Among all respondents, 82% are
students who use wet facial wipes. Working professionals do not get free time to
care about their beauty and skin, thus, the concept of wet wipes those can be
conveniently carried and used has given them flexibility to take care of their skin
out of their busy schedule.
Therefore, we should mainly focus on students and working professional these
categories of people are the one who would use the product.
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Chapter-5
Recommendations and Suggestions
108
Recommendations
Grasim Industries has been working hard to establish leading brand position of Kara
in market. Kara has been able to prove its mettle and highly accepted by customers. I
would like to recommend following activities those hopefully will help in growth of
Kara. These are as follows:
1. To create the BRAND AWARENESS, the following points should be taken into
consideration
There is huge competition from the Chinese wipes so it requires doing
aggressive advertising, campaigns, and samplings at the beginning of
summer season, so that product should create awareness at right time
and push the sale.
Activities and promotions at hyper markets and malls to attract more and
more customers, mostly during Saturdays and Sundays.
At low budget company can place KARA dangles in concerned retailers.
Dangles are very effective marketing communication as it makes
customer’s eyes to see on hanging dangles. Even at low budget company
can stick the KARA tape to rakes where product is placed that can
increase the awareness of product.
Company can organize event on women’s day which is on 8th march to
create the awareness. The sale of KARA will increase as summer starts in
March-April. Even mother’s day which lies in may is best month for
demand for KARA. So company can organize such events in popular stores
like Big Bazaar, Spencer and Vishal mega mart etc.
2. Modification in marketing mix of the product and schemes.
Getting the product into an eye catching and handy package for various
purposes, so that it attracts both consumers and retailers at a glance.
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The product needs rigorous advertising be it in print media and
television, hoardings, van operations, lama, only then the awareness could
be brought about the brand and the products.
Kara is a product that can be easily understood & adapted by the youth &
the admission season in Lucknow University starts from May-June at the
time of admission we can appoint at least with 2 employees with a canopy
& with a few samples outside the colleges in North Campus & in South
Campus this will definitely help to spread the awareness about the
product amongst the youngsters.
Company should acknowledge the customers that the company is
charging high prices because of its high quality material unlike of other
brands and also educate that compromise in quality of fibre can harm the
skin through different media sources.
There’s a huge demand for the product among the “new-generation
working women” as they prefer handy products for convenient and easy
accessibility. So focusing on the right consumer group is necessary.
Hotels have been on rapid rise in Lucknow. Demand of wet wipes is high
in hotels.
Restaurants can provide KARA wet wipe to their customers for
refreshment.
Another idea which I think may help the product is that if the company
can tie up with CAB SERVICES like Merru & many more & provide
samples inside the cab this may help to at least a chance where the
consumers may actually use the wipe & can judge it & a display in the cab
itself will help a lot for promotional factor. It is found that more than 13%
of the population of Lucknow prefers cab for commuting.
Display schemes to the retailers should be provided which should include
posters & halogen board with the name of the shop written on it.
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Retailers getting very high margin from the Chinese wipes and other
brand so the company should also take care of its retailers expectations so
that it will fulfil their needs and keep them satisfied.
I think company should for a time being raise the margin level from 18%
(16%+2%) to around 30% & should concentrate more on advertisements
hence as a result of which the consumers will get attracted towards this
product and it will raise the demand for the product & retailers will also
start keeping the product in their shelves.
Regular contact should be maintained with the retailer directly so that
they can give their feedback to the company regarding to the consumer
reaction rather than through the agents.
3. Extension of promotional channel
Apart from traditional promotional channels, I would recommend to use
social media channel to promote Kara wipes in youth those are internet
centric and spend their maximum time on accessing internet.
The company can tie up with some internet solution consultant and
source the responsibility of promoting Kara on different social Medias
such as maintaining Facebook fan page in solving queries of customers
towards the product. The detail of this suggestion has been put under
chapter 2, in “Detailed introduction about the topic”.
A blog can be created on internet which can educate people about
skincare and benefits of using Kara wipes. It can also ask for feedback
from users and inform them about new variants and offers etc. The blog
can be made interactive by putting surveys on it. The link of the blog can
be bulk mailed to various people falling within the target market.
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Industry Look up
Aviation Industry: Like the company has managed to have tie-ups with
Kingfisher airlines, other companies can also be targeted with proper
explanation on cost-effectiveness of the product.
Beauty Parlor: Kara refreshing wipes and makeup removal could be used
in beauty parlor operations like facial, makeup, cleansing, body spa,
massage etc could add value to customer and in some of operation they
could charge more from customers and for the same local branded beauty
parlors can be targeted.
Saloons: Likewise, even saloons have a lot of business potential for the
product especially Porsche saloons of Lucknow like L’oreal, Femina Plus,
Jawed Habib.
Gyms: Also the product can do wonders in terms of gaining cliental from
gyms in the city, as refreshing wipes would be more cost-effective than
the usage of towels. Potential Gyms of Lucknow would be – Ozone gym,
Park view gym.
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Chapter-6
Conclusion
113
Findings of the Research
As per the marketing research it’s been concluded the following observation:
1. Quality of the wipes is being appreciated by most of the customers
2. High competition from other brand of wipes such as Johnson& Johnson as
they are providing schemes and even their prices are low.
3. People are getting more conscious regarding brands, quality, and hygiene.
4. Consumers especially women, prefer buying the products of brands like
L’oreal, Dove, Pond’s, Himalaya, etc. because they have been using the
other cosmetic items such as face wash, cold cream, moisturizing cream
etc. of these brands and prefer to buy the wipes of the same brand.
5. People are not aware that sunscreen, moisturizing, toning, deep-pore
cleansing variants are available in the market under the brand of Kara.
6. Retailers are not well aware about the product and are unable to explain
the details about the product to the consumers, as they themselves do not
have the complete understanding about the product.
7. People are not familiar with the new concept of using wet wipes for
almost all cosmetic needs. As certain study and research says that “Asian
markets especially Indian market does not cater to new products as the
people are more inclined towards tried and tested products”.
8. The first thing which acts as a gatekeeper between the product & the
retailers is the margin provided by the company. As there are other local
wipes available in the market with more margins to offer than offered by
us as a result of this retailer hesitate at a first go to keep the product into
their shelf.
9. Another point which I think is very shocking to see is the delivery of the
order from the distributor to the retailers, in my very short span of period
I came across with many complaints from the retailers stating that they
had placed their order but the consignment has not been delivered or it
took more than 2 weeks to get the delivery, this may act against the
product’s brand value or the retailer may lose interest from the product.
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Chapter-7
Annexure
115
Questionnaire
1) Do you use wet facial wipes?
a) Yes b) No c) Can not say
2) If yes, which brand of wet wipe you use?
a) Bilt b) Johnson & Johnson c) Kara d) Good Look e) Others________
3) How often do you use the wipe?
a) Once in a day b) Twice in a day c) Thrice in a day d) More than
thrice e) When required
4) Where from do you normally prefer to buy most of your skin care products?
a) Mall b) Cosmetic Shop c) General Store d) Medical Store
e) Others_____
5) Which pack do you think is ideal pack?
a) 5 wipes b) 10 wipes c) 20 wipes d) 30 wipes e) More than 30
wipes
6) According to you, what should be the ideal price for the multipurpose
medium size wipes pack?
a) Rs.20-30 b) 30-40 c) 40-50 d) 50-60 e) More than 60 but less
than 80
7) For what purpose do you use wipes?
a) Refreshing b) Moisturizing c) Toning d) Cleansing
e) Sunscreen protection
8) Being wipes are available from refreshing to complete make up range, you
think wipes are becoming more useful than traditional liquid form of
cosmetic products.
a) Strongly agree b) Agree c) Can’t say d) Disagree
e) Strongly disagree
9) Are you aware of the brand ‘Kara’?
a) Yes b) No c) Not sure
10)How did you come to know about Kara?
a) TV advertisement b) Hoardings c) Retailer d) Other____________
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11)How do you find Kara skin care wipes?
a) Excellent b) Good c) Average d) Bad e) worst
12)What attributes influenced you to like Kara?
a) Fragrance b) Refreshment c) Hygienic d) Price
e) Brand name
13)What attributes lead you to dislike Kara?
a) Fragrance b) softness of wipe c) Price d) Availability
e) Others_________
14)What makes Kara different from other brands?
a) Quality b) Attractive packaging c) Utility d) Value for money
15)Would you like to recommend Kara to your friends and family who are not
using it?
a) Yes b) No c) May be
The following are some personal questions about you that will be used for
statistical purposes only. Your information will be held in the strictest
confidence.
Name: ____________________________________________________________
Gender:
a) Male _____ b) Female ______
Which age group do you belong to?
a. (15-25) b. (26-35) c. (36-40) d. (Above 40)
Which income group (per month) do you fall under?
a. (0-10000) b. (10,000-20,000) c. (20,000-30,000)
d. Above 30,000
What is your profession?
a) Student b) Working Professional c) Home maker d) Self Employed
Contact No. / Email id:
(Thank you so much for your time and co-operation, have a good day!!)
117
Bibliography
Marketing Management, 12th edition, Philip Kotler, Kevin Lane Kotler,
Published by Prentice Hall, USA
Advertising and Integrated Brand Promotion, 4th Edition, Thomas C.
O’Guin, Chris T. Allen, Richard J. Semenik, Published by Thomson South-
Western Publishing house.
Consumer Behaviour Analysis (critical perspectives on business and
management) by G.R Foxall, Published by Routeldge Publishers.
Webliography
http://www.times100.co.uk
http://www.en911.com
http://www.wikipedia.com
http://www.adityabirla.com
http://www.adityabirla.com/birlacellulose
http://www.google.com
http://www.grasim.com
http://www.marketingpractice.blogspot.com/2008/05/kara-skincare-
wipes-at-your-best-always.html
http://www.indiaprwire.com/pressrelease/consumer/
2008060410008.htm
http://www.living.oneindia.in/insync/2008/aditya-birla-group-kara-
skincare-wipes-070608.html
118
My Leaning from Summer Training
I learnt lot things during the project. Firstly it provided me much needed
corporate exposure like working in formal made team, business communication,
prioritizing work. Secondly I brush up my sales & marketing skills through
continuous given inputs on soft skills and business communication during
summer internship program; but there is no better place to hone these skills
than the workplace. I would like to share one experience that one day, I turned
up for reporting 10 minutes late due to traffic jams but I was sent back for the
day. My industry guide, Mr. Surya Prakash Singh, who is a good example of a well
disciplined person and grown by his own core values and philosophy. He neither
used to come late nor used to allow anybody to come late. It was a good learning
that in corporate world time is money and one is expected to be punctual. After
the day, I never have been late for a minute and it continues till now and would
be always, as it is rightly said, “Almost every mistake is a gift if we learn from it”.
119
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