AMITY BUSINESS SCHOOL, NOIDA [pic] REPORT ON: NEW PRODUCT DEVELOPMENT OF ITC’s FIAMA DI WIllS [pic][pic] SUBMITTED TO: MS. SUPRITI AGGARWAL SUBMITTED BY: GROUP-9 Anshika Chhabra (F-18) Gangesh Gunjan (F-28) Pranav Pravin (F-38) Eshan Bhateja (F-39) ACKNOWLEDGEMENT We members of Group 9, would like to take this opportunity to express gratitude to our teacher and mentor, Ms. Supriti Agarwal, for providing us support and constant guidance without which we would not have been able to complete the project. Her constant guidance and support made this work an enriching experience for us.We were able to learn so much about the holistic, integrated, Principle- centric approach for solving personal & professional problems. Lastly we would like to thank all those who have directly or indirectly assisted us in completing this project which includes those who provided with the congenial environment for work and our friends and family who at different times provided us with the required data.
Group 9 INDEX 1. ABSTRACT 2. INTRODUCTION 3. RESEARCH METHODOLOGY 4. LITERATURE REVIEW 5. DATA ANALYSIS 6. CONCLUSION 7. BIBLIOGRAPHY ABSTRACT The Major objectives of the project are as follows:- To analyze the new product development strategies and the steps which a product goes through after when it is launched.
• To analyze the research methodology which is involved in new Product Development(in this case the new product in fiama di-Wills) • To do the Literature review of the product this involves company review and many other literature aspects. • To do the data analysis part so that to figure out the sales and promotion of the product and whether the offers and advertisements are enough for this new product to get stability in the market. • And To finally conclude the project by examining all the tests which are carried out.Introduction To the Project:- Our project Concentrates on how a new product is launched in the market and then to develop that particular project, what type of strategies a company generally make is all what we want to figure out. Here The new product that we have taken is ITC’s “Fiama Di Wills”. New Product Development:- The development of original products, product improvements, product modifications, and new brands throught the firm’s own R & D efforts.
ITC launched Fiama Di Wills, a premium range of shampoos , following the success of Essenza Di Wills, its exclusive range of fine fragrances and super premium personal care products.Fiama Di Wills continues ITC’s tradition of bringing world class products to the Indian consumer. Now the challenge for ITC was to make this product stable in the market and to carry out various strategies.
A unique blend of nature and science, ‘Fiama Di Wills’ shampoos are an outcome of 4 years of extensive product development by scientists at the ITC Research and Development Centre with the assistance of American product formulation experts. The fragrances for the various products have been developed in conjunction with leading international fragrance houses. The packaging is contemporary and the guiding design principle, including the ap closure, highlights the brand by combining round and organic natural form with a clean and scientific look. The shampoos, introduced in 2 convenient sizes are offered in 4 variants designed to deliver very specific needs to the consumers. The superior product and brand experience is a result of ITC’s extensive and deep consumer insightople will like this product.
About Fiama Di Wills [pic] In September 2007, ITC launched Fiama Di Wills, a premium range of personal care products comprising shampoos, conditioner, shower gels and soap. This premium range is a unique blend of nature and science that promises gentle effective care.It is an outcome of 4 years of extensive research and development by experts at ITC R Centre. The packaging for all Fiama Di Wills products has been developed by a leading European design firm and the fragrances have been developed by an international fragrance house in France.
Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc. , USA, offers a range of five variants. Each of these is designed to deliver a specific hair benefit to the consumer : • Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo suitable for daily use. Aqua Balance (with extracts of Magnolia Blossoms & Watercress) is a gentle moisturizing shampoo ideal for dry, dull hair. • Volume Boost (with extracts of Rosemary & Sage) is a gentle volumizing shampoo ideal for thin, limp hair. • Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth, silky and strong and is ideal for weak, damaged hair. • Shine in Style (with extracts of Chamomile and Green Tea) makes hair shiny and manageable, easy to style and is ideal for dull to normal hair.
Each of these shampoos can be complemented with Fiama Di Wills Polishing Drops conditioner. This gentle conditioner enriched with Avocado Oil and Burdock extract promises to make hair shiny, soft and smooth. It also gives the additional benefits of UV protection as it contains Sunflower Seed extract, which is a natural UV absorber. The Fiama Di Wills product line also consists of a 3-variant range of transparent shower gels which are unique as they come with suspended beads: | |• |Mild Dew (enriched with soft beads, peach and avocado extracts) is for soft, moisturized skin.
| |• |Clear Springs (enriched with jojoba beads, sea weed and lemongrass extracts) is for clear healthy skin. | | |• |Exotic Dream (enriched with glitter beads, bearberry leaves and black currant extracts) is for | | | |stimulating freshness. | | | | | The Fiama Di Wills range of soaps has been launched under the sub – brand SkinSense. The first variant to be introduced in this range is Soft Green.This is a gentle caring soap, which helps enhance retention of skin proteins making skin look beautiful and youthful. Between February and June 2008, ITC expanded its personal care portfolio with the launch of Vivel Di Willsand Vivel brands. Vivel Di Wills, a range of soaps, and Vivel, a range of soaps and shampoos, cater to the specific needs of a wide range of consumers. Backed by consumer insights, these ranges offer the unique value proposition of providing the multiple benefits of Nourishment, Protection and Hydration in every single product.
Thus providing, the ever-discerning consumer, complete care. pic] RESEARCH RELEVANCE Development of retail space in India has resulted in the Indian consumer being exposed to a variety of retail formats leading to change in consumer buying behavior. Objectives of these researches were to investigate the consumer decision making styles and various factors which determines factors that induces the shopping experiences and their link to consumer behavior. There are three fundamental patterns which a consumer can follow and they could be: (I) Brand first, Price second (ii) Price first, brand second (iii) Brand and Price simultaneously. Research methodologyType of Study: Study is exploratory & descriptive in nature. Data Collection: Source of Data: Two types of data sources will be taken into consideration ? Primary Data ? Secondary Data ? Primary Data: The primary data are those which are collected a fresh and for the first time and thus happen to be original in character.
Under this project direct collection of data from source of information & techniques such as personal interviewing and survey through questionnaire filled by the target population. ? Secondary Data: Secondary data will consist of different literatures like books which are published, articles, internet.SAMPLING METHODOLOGY Sampling Technique: Initially, a rough draft was prepared keeping in mind the objective of the research.
The questionnaire consisted of questions concerning customer decision making styles and demographic information of respondents. The final Questionnaire was arrived only after certain important changes were done. Thus the sampling came out to be judgemental and convinent. Sampling Unit: The respondants who were asked to fill out questionnaires are the sampling units. The target population consist of active shoppers. Sample size: The sample size was restricted to only 100. Sampling Area :The area of the research was NCR Region, INDIA.
Literature review New product development (NPD) is the term used to describe the complete process of bringing a new product or service to market. There are two parallel paths involved in the NPD process: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. Companies typically see new product development as the first stage in generating and commercializing new products within the overall strategic process of product life cycle management used to maintain or grow their market share.FMCG Fast Moving Consumer Goods (FMCG), are the products that are sold quickly at relatively low cost.
Though the absolute profit made on FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods.FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately. INDIAN FMCG MARKET The Indian FMCG sector with a market size of US$13. 1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterize the sector. FMCG Sector is expected to grow by over 60% by 2010.
That will translate into an annual growth of 10% over a 5-year period.It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2004-2008, it has been able to make a fine recovery since then.
LEADING INDIAN BRANDS ? Hindustan Unilever Ltd. ? ITC ? P ? GCMMF (AMUL) ? Britannia Industries ? Marico Industries ? Dabur India ? Nestle India The evolution of Indian FMCG marketIndia has always been a country with a big chunk of world population, be it the 1950’s or the twenty first century. In that sense, the FMCG market potential has always been very big.
However, from the 1950’s to the 80’s investments in the FMCG industry were very limited due to low purchasing power and the government’s favouring of the small-scale sector. Hindustan Lever Limited (HLL) was probably the only MNC company that stuck around and had its manufacturing base in India. At the time, the focus of the organised players like HLL was largely urbane. There too, the consumers had limited choices.However, Nirma’s entry changed the whole Indian FMCG scene. The company focused on the ‘value for money’ plank and made FMCG products like detergents very affordable even to the lower strata of the society.
Nirma became a great success story and laid the roadmap for others to follow. Private consumption expenditure trends |CAGR |Food, beverages, |Personal | |(%) |tobacco |care | |FY81 |11. 0% |13. 4% | |FY91 |11. 7% |11. % | |FY01 |11. 9% |14.
8% | *CAGR over a decade MNC’s like HLL, which were sitting pretty till then, woke up to new market realities and noticed the latent rural potential of India. The government’s relaxation of norms also encouraged these companies to go out for economies of scale in order to make FMCG products more affordable. Consequently, today soaps and detergents have almost 90% penetration in India. Post liberalisation not only saw higher number of domestic choices, but also imported products.The lowering of the trade barriers encouraged MNC’s to come and invest in India to cater to 1bn Indians’ needs. Rising standards of living urban areas coupled with the purchasing power of rural India saw companies introduce everything from a low-end detergent to a high-end sanitary napkin. Their strategy has become two-pronged in the last decade.
One, invest in expanding the distribution reach far and wide across India to enable market expansion of FMCG products. Secondly, upgrade existing consumers to value added premium products and increase usage of existing product ranges.One of the biggest changes to hit the FMCG industry was the ‘sachet’ bug. In the last 3 years, detergent companies, shampoo companies, hair oil companies, biscuit companies, chocolate companies and a host of others, have introduced products in smaller package sizes, at lower price points. This is the single big innovation to reach new users and expand market share for value added products in urban India, and for general FMCG products like detergents, soaps and oral care in rural India. PHASES IN THE EVOLUTION OF SECTOR Weekly Markets, Village and Rural Melas ? Source of entertainment Rural and historic reach [pic] Convenience stores, Mom-and-pop / Kirana shops ? Neighborhood stores/convenience ? Traditional and pervasive reach [pic] PDS outlets, Cooperatives ? Government supported ? Availability/low costs/distribution [pic] Exclusive Brand outlets, Hypermarkets and Supermarkets, Department stores and Shopping malls. ? Shopping experience/ efficiency ? Modern formats/ international ? Traditional Format Retailers ? Kiranas: Traditional Mom and Pop Stores ? Street Markets ? Exclusive /Multiple Brand Outlets ? Modern Format retailers ? Supermarkets (Foodworld) Hypermarkets (Big Bazaar) ? Department Stores(S Stop) ? Hypermarket ? Big Bazaar ? Star CHANGING INDIAN CONSUMER ? Greater per capita income ? Increase in disposable income of middle class households ? 20. 9%* growth in real disposable income in ’03-07’.
? Growing high and middle income population ? Growing at a pace of over 10% per annum over last decade ? Affordability growth ? Falling interest rates ? Easier consumer credit ? Greater variety and quality at all price points ? The urban consumer ? Getting exposed to international lifestyles ? Inclined to acquiring asset More discerning and demanding than ever ? No longer need-based shopping ? Shopping is a family experience ? Changing Mindset ? Increasing tendency to spend ? Post Liberalization children coming of age ? Greater levels of education DATA ANALYSIS Data analysis is a process of gathering, modeling, and transforming data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domainsRETAILER’S VIEW: Frequency Table |Close_Competitor | | | | | | | | | | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |Packaging |2 |3. 0 |3.
0 |3. 0 | | |Quality |29 |48. 66 |48. 66 |51.
66 | | |Price |24 |40. 0 |40. 0 |91. 6 | | |Availability |5 |8. 34 |8. 34 |100. 0 | | |Total |60 |100.
0 |100. 0 | | | [pic] CONCLUSION: The highly satisfied group of respondents declared that variety and assortment are very important factor when they select a product for buying. The less satisfied customers considered availability of products in small stores as an important factor. Stockiest agree that Ambience, Brand name and awareness are important factors in selling the product. Students agree that Physical Facilities of large stores is an important factor for considering a buying a Fiama Di Wills product.The result of test indicates that price involved and accessibility are two important factors which influence the decision of consumer going to buy other Brand product. Bibliography 1. www.
fiamadiwills. com 2. http://www. itcportal. com/sets/personalcare_frameset. htm 3. http://www. reviewstream.
com/reviews/? p=45241 4. http://www. indiantelevision. com/mam/headlines/y2k4/july/julymam15. htm 5. http://www. fmcgmarketers. com/SectorTrends.
htm 6. www. mouthshut. com/review/Fiama_di_wills-139188-1. html 7.
http://www. business-standard. com/india/news/itc-expands-fiama-di-wills-brand-to- soaps/31543/on