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“A study of Rural Market - A Study on Project Deep-Dive Towns at Reckitt

Benckiser in M.P ”

Report submitted to IPER PGDM for partial fulfillment of the requirement for Post Graduation Diploma in Management (2009-11)

COMPLIED BY:

GAGAN SINGH MOKHA

IPER-PGDM

STUDY CONDUCTED UNDER

THE GUIDANCE OF:

Mr. ASHISH CHATURVEDI

ASE, BHOPAL

RECKITT BENCKISER INDIA LTD

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PREFACE

The researches provide an opportunity to a student to demonstrate application of his/her

knowledge, skill and competencies required during the technical session. Research also

help the student to devote his/her skill to analysis the problem to suggest alternative

solutions, to evaluate them and to provide feasible recommendations on the provide data.

This project report is on “A study of Rural Market - A Study on Project Deep-Dive

Towns at Reckitt Benckiser in M.P ”

Although I have tried my level best to prepare this report an error free report every effort has

been made to offer the most authenticate position with accuracy.

There are many differences in theoretical study and the practical study as the theories are

applicable universally but when it comes to practical each situation differs from the other.

To prepare this report I have visited the towns of those cities and worked for more than a week

over there in Vidisha and Beena.

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CERTIFICATE

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ACKNOWLEDGEMENT

I would to grab this opportunity to thank first of all the almighty god who has given me the

intellect so that I am able to perform work for my company and prepare this research report.

Then I would like to thank my Dean Prof.A.S.Khalsa and my sir Prof.Hersh Sharma for

providing me with this opportunity of having such a wonderful company like RECKITT

BENCKISER for my summer training. I would like to thank my sir Mr.Ashish Chaturvedi-Area

sales executive (Rural)-M.P and Mr.Vashu Kamdar- PSR who have been extremely dedicated

towards me. Without your cooperation my knowledge about the FMCG sector would have been

nil. You both have been very much cooperative and dedicated towards passing on the knowledge

from yourself on to me. Sincere thanks to both of you sir. I would also like to thank my parents

and my friends who have always been very cooperative whenever I need them. In the end I

would like to thank all those who have been associated with my research project and this report.

GAGAN SINGH MOKHA

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CONTENTS

INTRODUCTION- FMCG SECTOR

COMPANY PROFILE – OVERVEIW AND HISTORY

CONCEPTUAL OVERVEIW

DEMOGRAPHY OF INDIA

RURAL MARKET IN INDIA

PROJECT DEEP DIVE

INTRODUCTION TO THE PROJECT

CASE STUDY-INTRODUCTION TO DEEP DIVE TOWNS

WORKING WITH THE COMPANY

RESEARCH METHODOLOGY

FINDING- ANALYSIS AND SUGGESTIONS

COMPETITOR PROJECT IN RURAL

SUGGESTIONS TO THE COMPANY

LEARNINGS

BIBLIOGRAPHY

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INTRODUCTION- FMCG SECTOR

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INTRODUCTION - FMCG SECTOR

The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the economy with a total market size in excess of Rs 60,000 crore. This industry essentially comprises Consumer Non Durable (CND) products and caters to the everyday need of the population.

Fast Moving Consumer Goods (FMCG), are 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.

Exports

India is one of the world’s largest producer for a number of FMCG products but its FMCG exports are languishing at around Rs 1,000 crore only. There is significant potential for increasing exports but there are certain factors inhibiting this. Small-scale sector reservations limit ability to invest in technology and quality upgradation to achieve economies of scale. Moreover, lower volume of higher value added products reduce scope for export to developing countries.

Product Characteristics

Products belonging to the FMCG segment generally have the following characteristics:

They are used at least once a month They are used directly by the end-consumer They are non-durable They are sold in packaged form

Industry Segments

Main segments of FMCG sector are:

Health and Personal Care

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Fabric Care Home Care Food and Beverages

Growth Opportunities

Large untapped rural market Export potential Increasing disposable income with result in faster growth revenue

Present Challenges

Competition from the unbranded players in rural market Bargaining power of consumers Lack of innovative approach in distribution channel Rising material, advertisement and distribution cost

"Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

Benefits of Industry

Low operational costs Presence of established distribution networks in both urban and rural areas Presence of well-known brands in FMCG sector

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COMPANY PROFILE- OVERVEIW AND HISTORY

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COMPANY OVERVIEW

Reckitt Benckiser is a global force in household, health and personal care products, delivering ever better solution to consumers. The company has the sales of over 6 billion pounds consistently going ahead of the industry due to its leading brands, its operation in over 60 countries and sales in 180, and its highly motivated multinational management. Reckitt Benckiser Group Plc. (Reckitt Benckiser) is principally engaged in the manufacturing and marketing of household, cleaning, health and personal care products. The company manufactures products related to several categories which include dishwashing, fabric care, surface care, health care, home care, personal care products and food. The company operates through 60 operating companies across 180 countries. The company has 13 directly held subsidiaries which include Propack, Reckitt Benckiser (Australia) Pty Limited, Reckitt Benckiser (Brazil) Limited, Reckitt Benckiser (Canada) Inc. Reckitt Benckiser Deutschland GmbH, Reckitt Benckiser Health care (UK) Limited, Reckitt Benckiser Inc., Reckitt Benckiser (India) Limited, Reckitt Benckiser Italia and Reckitt Benckiser (UK) Limited. The company is headquartered in the UK. The company reported revenues of (British Pounds) GBP 6,563.00 million during the fiscal year ended 2009, an increase of 24.56% over 2008. The operating profit of the company was GBP 1,505.00 million during the fiscal year 2009, an increase of 22.06% over 2008. The net profit of the company was GBP 1,120.00 million during the fiscal year 2009, an increase of 19.40% over 2008. In 2008, the BBC broadcast an investigation into the methods Reckitt Benckiser used to maintain the market share of the Gaviscon power brand. The company held Platinum status in 2005, 2006, 2007, and 2008 in the Business.

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HISTORY

Reckitt & Colman Colman's was founded in 1814 when Jeremiah Colman began milling flour and mustard in Norwich, England. Reckitt & Sons started in 1840 when Isaac Reckitt rented a starch mill in Hull, England. He diversified into other household products and in due course passed on his business to his four sons. Reckitt & Sons was first listed on the London Stock Exchange in 1888. In 1938 Reckitt & Sons merged with J&J Colman to become Reckitt & Colman Ltd. Reckitt & Colman sold the Colman's food business in 1995 but still has some food brands. Benckiser Johann A. Benckiser founded a business in Germany in 1823. Its main products were industrial chemicals. Benckiser went public in 1997. Merger and subsequent developments The company was formed by a merger between Britain's Reckitt & Colman and the Dutch company Benckiser NV in December of 1999. Bart Becht became CEO of this new company and has been credited for its transformation, focusing on core brands and improving efficiency in the supply chain. The new management team’s strategy of “innovation marketing” – “A combination of increased marketing spend and product innovation, focusing on consumer needs – has been linked to the company’s ongoing success”. For example, in 2008, the company’s “rapid succession of well publicized new product variants” was credited for helping them “to capture shoppers' imagination” Business week has also noted that “40% of Reckitt Benckiser's $10.5 billion in 2007 revenues came from products launched within the previous three years.”

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BRIEF PROFILE OF THE BUSINESS

Reckitt & Benckiser Plc, UK, promote Reckitt & Benckiser of India Ltd (Reckitt & Benckiser). The company has business interests in household products, personal care and pharmaceuticals. Key brands include Dettol, Cherry Blossom, Harpic, Robin liquid blue and Mortein. Around 40% of the company ´s sales come from its flagship product Dettol. Dettol`s market share hovers around 85% and its product portfolio comprises toilet soaps, anti germ liquids and talcum powder. The remaining divisions, namely fabric care, shoe care and floor care contribute approximately 15% to the total turnover. Within the household products and the personal care segments, Reckitt & Benckiser is mainly into insecticides, lavatory care, surface care, shoe care and air fresheners. Insecticides contribute over 50% to Reckitt & Benckiser’s household business and 26% to its total sales. The company has a strong brand Mortein in the insect repellent market with a total market share of 45% (coil 12% and mats 33%). In the relatively small lavatory care market (Rs320m), Reckitt & Benckiser’s Harpic enjoys a 79.6% market share. Its brand Cherry enjoys a 79% market share in the Indian shoe care industry. The Indian air freshener market is estimated at Rs120m with Balsara Hygiene’s Odonil leading the market with an 80% share. Reckitt & Benckiser has positioned its Haze brand at the premium end of the market. Regarding the wash-segment, Reckitt & Benckiser is currently present only in the postwash segment with its flagship brand Robin Blue, which is in existence since 1984. Robin Blue powder market share is around 20%. The company has entered into a joint venture, operational from March 1998, with pharmaceutical major Nicholas Piramal; a company having a strong distribution reaches with chemists. The UK parent and Nicholas Piramal hold 40% stake each while the balance is with Reckitt & Benckiser. The joint venture, Reckitt Piramal, is the largest over the counter (OTC) pharmaceutical company in the country. Recent Development Reckitt Benckiser Plc and Lancaster Square Holdings SL, have made a voluntary offer to the equity shareholders of Reckitt Benckiser India Ltd to acquire 41,91,339 equity shares of Rs 10 each, representing 12.73 per cent of the paid up equity share capital of Reckitt Benckiser India, at Rs 250 per share, payable in cash. The specified date is August 16, 2002. The date of the opening of the offer is September 2, 2002. The date of the closing of the offer is October 1, 2002. In aggregate, Reckitt Benckiser Plc and Lancaster Square at present hold 28,721,849 fully paid up equity shares of Rs 10 each, representing 87.27 per cent of the paid up equity share capital of Reckitt Benckiser India. After the open offer the company plans to delist its shares. Reckitt Benckiser Plc has received approval from the Foreign Investment Promotion Board (FIPB) for infusion of funds of Rs 403.19 crore for the open offer of its subsidiary, Reckitt Benckiser (India) Ltd. The parent has made an open offer to acquire the public shareholding of Reckitt Benckiser (India) at Rs 250 per share. The company is making serious efforts to improve penetration of the specialised toilet cleaner and to upgrade the habits of Indian consumer. For this purpose, Reckitt & Benckiser has recently tied up with sanitaryware major EID Parry’s premium brand Parryware for a co-branding

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initiative in Delhi. The company has recently relaunched Cherry Blossom Shine in a handy and compact case. The company also launched the Mortein Xtra Power range of mosquito coils and mats. It extended the range of offerings of the Dettol brand further by recently introducing Dettol Extra Care soap and Dettol talcum powder. As part of its strategy, Reckitt & Benckiser has decided to pull out of its food products business. Its factory at Chetla, which manufactures the Robinson brand of barley, is proposed to be sold as a going concern. Negotiations in this regard are currently underway. The merged overseas parent, christened Reckitt Benckiser Plc, which holds 51 per cent of the company`s equity stake, was firming up its strategy to garner a higher share of the market for dish wash, home care, fabric care and health care products. Reckitt & Benckiser would draw up its strategy some time later in line with the parent company`s strategy. A decision on change in the name of Reckitt & Benckiser would also be taken after the legal formalities are completed in the UK. The merged parent is also working on a global e-commerce initiative strategy. Initially, however, this strategy will more likely to focus on B2B rather than B2C transactions. Reckitt’s Indian operations would, for the time being, continue to be channeled through the existing distributors` network. Strength of Organization and Culture The Reckitt Benckiser culture lies at the heart of our success. Led by a strong management team, who are heavily incentivised to achieve performance, our people are entrepreneurial and take it upon themselves to own and create initiatives and deliver great execution. They are driven and dynamic, and want to make their mark. We enjoy constructive conflict with each other and our partners, and like to take calculated risks to gain advantage in some of the most competitive markets in the world. We keep the organisation slim, streamlined and unbureaucratic. In this way we can have fast decision-making, be spontaneous and respond rapidly to changing consumer needs and market conditions. Our commitment to performance is total, whether it is financial results or impacting upon climate change and helping those more vulnerable in society. To tackle the total carbon footprint of our products, from cradle-to-grave, in 2008 we progressed our Carbon 20 initiative and developed detailed plans and measurements for working with consumers to achieve our commitment to reduce our total carbon footprint by 20% by 2020. This year we also delivered on the last part of our commitment to save 150,000 lives through working with Save the Children across the world. We are now working with them on a new programme, which will see our commitment have even more impact in the future.

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OUR VISION

Reckitt Benckiser passionately delivers better solutions in household cleaning and health & personal care to customers and consumers, wherever they may be, for the ultimate purpose of creating shareholder value.

CORE VALUES

Four key values:- Achievement - Achievement makes them who they are. They don’t just aim high, their aim to achieve beyond expectation - to outperform. And they develop and support their people to outperform so they can all achieve results wherever they focus, be it products, profits or CSR.

Entrepreneurship - They encourage bold thinking and commercial drive. They allow daring ideas to thrive and value the passion that people bring in turning ideas into great execution. Teamwork - They pull together to succeed. As individuals they are competitive high-achievers, but they bring their strengths together when needed to work as one united by common principles and attitudes, not rules and processes, to drive success. Commitment - For them, ‘the buck stops here’. They take personal responsibility for their areas of accountability and take the initiative in doing what’s needed. They aren’t slaves to process or spoon-fed. Their people are given the latitude to do what they think is right within a framework for success. Leaders at all levels select people against this attitude and develop it further to ensure the sustainability of the business.

COMPANY’S STRATEGY

Our clear and consistent strategy is to drive above industry growth and returns through:

A disproportionate focus on driving our Powerbrands, global leaders in categories with high growth potential, and completing their international roll-out.

High levels of media and marketing investment, and continuous innovation.

Transforming net revenue growth into even better profit and strong cash flow.

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Disproportionate focus on our 17 Powerbrands Powerbrands are Reckitt Benckiser’s globally leading brands in high growth categories, and of the 17 Powerbrands, 15 are either Number 1 or 2 globally. We have further strengthened our leadership positions for our Powerbrands in 2008. This year we further strengthened and refined our Powerbrands to 17, and we are transitioning other brands with the same footprint into them. As an example, in the US we are transitioning Electrasol and Jet Dry into the Finish brand, and in Europe, transitioning Calgonit into Finish. This delivers both benefits for the consumer, through better and faster access to our innovation pipeline, and increased effectiveness and efficiency for us, through common advertising and packaging. Our newly acquired Mucinex brand, the US’ leading cough and decongestion remedy, made it to the Powerbrand list straightaway. This brand came with the acquisition of the Adams business and has already delivered results over and above our challenging expectations. Powerbrands accounted for 62% of Reckitt Benckiser’s 2008 net revenues. This is up from 61% in 2007. Continuing to invest behind our brands Our growth has been achieved by ensuring that consumers know about our products and the reasons to buy them. This year we again increased our marketing and advertising investment behind our brands and reaped the reward. In harder market conditions, we think it is more important, not less, to invest in keeping our brands at the forefront of consumers’ minds. Media deflation has enabled us to get more value, but despite lower costs, we have increased our media investment by 14% at constant exchange compared to the previous year. We remain amongst the highest investors in media in the industry, with 12.4% of net revenue ploughed back into advertising our brands. Innovation – driving above average growth Investment and product innovation are the key driving factors behind the Powerbrands’ and RB’s growth. Consumers today are making their purchasing decisions with even greater scrutiny. Our innovation has been crucial in giving consumers even more reason to buy our products. Turning our growth into cash We turn our growth into attractive profits and cash flow through margin expansion and cash conversion. We drive our margins by focusing on higher margin categories and products. We then build on this by having a never-ceasing cost optimization programme, which in all market conditions relentlessly looks at taking cost out without taking anything away from consumers and, where

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possible, making the products even better. At a time when consumers are looking harder for value for money, we are able to give them 10% more Vanish for the same price by reducing 70% of the plastic in the packaging. We moved from a round tub to a resealable pouch. This also helped improve Reckitt Benckiser’s environmental impact, which has remained an important focus even in more challenging times. Through our cost optimisation programme, we have managed to minimise the price increases we passed on to consumers to partially offset the rise in commodity costs. With this activity, and benefiting from the faster growth on our higher margin RB Pharmaceutical and consumer health care businesses, we have driven adjusted operating margins up by 80bps and delivered very strong cash flow. This has strengthened the financial position of the Company and allowed the return of funds to shareholders. We have increased the full year dividend by 45% and funded a £300m share buy back programme.

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Company Background in India • Reckitt Benckiser India Ltd (RBI), priory known as Reckitt & Coleman India Ltd. • Reckitt’s presence in India dates back to 1934 when a group company Atlantic (East) Ltd, started operations in India. • Reckitt & Coleman India (RCI) was incorporated in 1951 to take over manufacturing operations of Atlantic East Ltd (AEL). • Trading activities of RCI and AEL’s operations were merged in 1969. • RCI was a wholly owned subsidiary of Reckitt & Coleman UK till 1970. • The company’s name was changed to Reckitt Benckiser in 1999 by the global merger of Reckitt & Coleman Plc and Benckiser Plc in December 98. Activities & Products:-

Principal activities are manufacturing and distributing a wide range of household and personal products.

Products of the Company include antiseptics, toilet care products, shoe care products, mosquito repellants and personal health care products.

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KEY PRODUCTS IN INDIAN MARKET

Health and Personal Care Profile of category Products that relieve common personal or health problems. Antiseptics protect against infection and deliver germ kill. Analgesics, Cold/Flu/Sore Throat and Gastro-Intestinals are generally over the counter medications for common ailments like pain, fever, cold, flu, sore throat or heartburn. Suboxone is the Company’s prescription drug against opioid dependence. Veet, our Depilatory product, removes hair leaving beautiful smooth skin. Our skin care range consists of products like Clearasil to fight spots and break-outs for visibly clearer skin and products like E45 for dry skin. Denture Care consists of both denture fixatives and cleaners. Market Position Dettol is the No.1 worldwide in Antiseptics. Nurofen and Gaviscon are leading Analgesic and Gastro-Intestinal brands in Europe and Australia. Strepsils is No.1 in Sore Throat globally. Veet is the No.1 depilatory brand worldwide. Suboxone is the global leader in prescription opioid dependency treatment. Clearasil is the No:1 brand in Europe across all markets it plays in. KEY BRANDS

Veet Dettol Clearasil Strepsils

Veet The world leader in cosmetic depilatory products. Trusted for its efficacious solutions, Veet markets a range of modern products that deliver beautiful, touchably smooth skin. Leadership is driven by constant product innovation, such as our new improved creams containing twice the moisturisers and our new High Precision Facial Wax which allows for precise and long lasting results at home. Principal Markets

West and Eastern Europe, North & South America, Africa, Asia Pacific, Australasia Dettol The world's leading brand of Antiseptics and trusted champion of family health. Dettol is the

gold standard of effective germ kill recommended by medical experts and healthcare professionals for its proven ability to protect families from germs. The brand remains up to date through the launch of new products relevant to changing lifestyles such as hand sanitizer, liquid hand wash, shower gel, all purpose cleaners, and antibacterial wipes. Principal Markets South Asia, Africa & Middle East, Asia Pacific, Europe, Australasia

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Clearasil

The expert in spot care. Clearasil is renowned for its highly effective range of acne treatment creams, facial washes and cleansing pads, giving consumers the confidence of visibly clearer skin. It’s strong position is continuously reinforced with innovation such as the re-launch of the Stay Clear range of products including our new Skin Perfecting Wash. Principal Markets N. America, Europe, Australasia, Japan.

Strepsils Strepsils is the world's leading sore throat medicine. Trusted by consumers and pharmacists

alike, the brand is now present in over 100 countries. From its inception as a sore throat gargle in 1950, the range has grown to a wide range of both lozenges and sprays giving consumer the choice they require in treating their sore throats. Principal Markets Strepsils is the No1 sore throat product with principal markets in Europe, Asia, Australasia, Africa and Middle East.

Surface care Profile of Category Five product groups. Disinfectant cleaners both clean and disinfect surfaces, killing 99.9% of germs. All purpose cleaners are ideal for many household surfaces, particularly in the bathroom and kitchen. Lavatory cleaners offer specialised cleaning and disinfecting for the toilet bowl and cistern. Specialty cleaners are designed for specific tasks – from cleaning ovens to removing limescale. Finally, Polishes & Waxes clean and shine hard surfaces such as furniture and floors. Market Position No.1 worldwide in Surface Care with leading positions across the five product groups described above. KEY BRANDS

Easy off Bang Lysol Dettol Harpic

Easy off Bang Easy off Bang is a new range of power cleaners launched in 2004. It is now in over 50 countries

with the following range of products: Lime & Grime and Degreaser Triggers, Grease & Floors Dilutables and Stain & Toilet lavatory cleaner. Principal Markets Europe, US, Developing Markets.

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Lysol Lysol is the No.1 disinfectant brand in the U.S., with over 50% of households using Lysol

products. Families have trusted the brand to help keep their homes healthy for over 100 years. Hospitals across the U.S. also trust the brand to satisfy their cleaning and disinfecting needs. Principal Markets North America, South America, Asia Pacific, South Asia

Dettol

Dettol offers the No.1 anti-bacterial cleaning range in the UK. Launched first in 1984 as Dettox with Dettox Antibacterial Cleanser, the anti-bacterial cleaning range has now been regrouped under the Company's other strong Antiseptic/Disinfectant brand, Dettol. Dettol Anti-bacterial Surface Cleanser safely kills harmful bacteria such as Salmonella, Listeria and E-Coli but contains no bleach and leaves no taint or odour, so it's safe to use around young children and on food preparation areas. Principal Markets

UK Harpic Launched in England in the 1920s, Harpic toilet bowl cleaner has been successfully extended to

47 countries on a platform of powerful cleaning. Harpic provides a full range of liquid toilet bowl cleaners, tablets, wipes, toilet bowl blocks, cistern blocks. Principal Markets Africa & Middle East, Asia Pacific, Europe, Latin America

Fabric Care Profile of Category This category consists of five product groups used for cleaning and treating all fabrics. It covers products used before, during or after the main laundry wash cycle. Fabric Treatment products remove stains from clothes, carpets and upholstery. Garment Care products are specially formulated for washing delicate fabrics. Water Softeners protect the machine and laundry against the build-up of limescale and other deposits. Fabric Softeners are used for softening and freshening fabrics and ironing aids help make ironing more convenient. Laundry Detergents clean fabrics in washing machines.

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Market Position No.1 worldwide in Fabric Treatment and Water Softener categories. No.2 worldwide in Garment Care. Principal Markets France, Turkey, Germany, Russia, Italy, Spain, UK, Greece, Belgium, Switzerland (sold under Calfort brand name in Italy). Vanish

Vanish is the leading global trusted stain removal expert for both fabrics and carpets. For stains on your fabrics, Vanish is available in both in-wash formats and pre-treat. Recent launches in the Vanish range include Vanish Oxi Action Crystal White (2006) which not only removes stains from all your white garments, it also restores them to their original bright whiteness. Vanish Oxi Action Magnets (launched 2007) is a unique sachet which contains a dose of Vanish

which is released during the wash cycle and attracts and traps dirt and colour runs on its sachet. Whether you are dealing with a stain on your clothes or on your carpet, Vanish provides amazing, effective and safe stain removal: all stains gone, right before your eyes. Vanish: trust pink, forget stains! Principal Markets • UK, Russia, Korea, Spain, Italy, Germany, Australia, Poland, Turkey • Sold under Spray’ n Wash and Resolve brands in the U.S. Home Care Profile of Category Consists of three categories. Air Care products remove odours and add fragrance to the air to create an ambience. Various formats include: autosprays, electrical plug-ins, aerosols, gels and candles. Pest Control products offer solutions to domestic infestation. The category includes insecticide and rodenticide products – in formats such as coils, mats, baits, traps, vapourisers and sprays – to prevent infestation and to kill pests. Shoe Care cleans and protects shoes. Market Position No.2 worldwide in Air Care, Pest Control and Shoe Care. KEY BRANDS

Airwick Mortein

Airwick

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Air Wick was first launched in the USA in 1944 with the invention of Air Wick Liquid, a wick in a glass bottle of liquid, which absorbs odours as it is pulled up within the bottle. Airwick is now present in 85 countries offering consumers a large and growing range of fragrances and formats including plug ins, battery operated devices, candles, gels and aerosols. They are used to freshen or add fragrance to the air, but also, increasingly to create ambience. Principal Markets Europe, North America, Asia Pacific

Mortein Mortein was first launched in the 1880s in Australia. It has been successfully launched

throughout New Zealand, South Asia and the South Pacific. This pest control brand is famous for the 'Louie the Fly' cartoon character advertising in Australia which has been used for over three decades. 'Louie' is now being used in South Asia for Mortein, and in Malaysia, Singapore and Thailand for Shieldtox. Principal Markets Asia Pacific, South Asia.

Food Profile of Category The Food business is focused on products that liven up the flavour of your favourite foods and make meals more enjoyable. Our major segments are mustard, barbecue sauce, hot sauce and French Fried Onions. While the category is focused primarily in North America, our famous food brands are distributed and sold in more than 55 countries. More than 90% of our portfolio is made up of number one or number two brands. Market Position French’s is the leading brand of mustard in the world; its North American market share is more than 30%. Frank’s RedHot Sauce is the region’s number two hot sauce and Cattlemen’s Barbecue Sauce is the number one barbecue sauce in Foodservice.

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MAJOR PLAYERS

Hindustan Lever Limited (HLL) HLL is India's renowned and largest Fast Moving Consumer Goods (FMCG) Company. It is a leader in Home & Personal Care Products, Food & Beverages having widespread marketing & distribution network all over India. HLL covers 1 million retail outlets and 50000 villages with 7000 redistribution stockists. The distribution network of HLL is spread all over India. Its primary sale is to the redistribution stockists and the secondary sale is carried out by the stockists to various wholesale and retail outlets. With this backdrop in the FMCG market, HLL planned to e-integrate the entire distribution network and aspired for a software that takes care of various phenomenal issues of the stockists. Challenge: Over 7000 Redistribution Stockists (RS) of HLL are responsible for reaching the nook and corner of the consumer market and make the HLL products available wherever required. The Redistribution Stockists (RS) of HLL obtain stock from the C&F agents and store it in their gowdown and distribute the stocks through their sales network. These were the areas of concern:

Manipulation of schemes offered by HLL - HLL offers secondary schemes for the retailers to promote sales. The chances of manipulating these schemes were high and no effective approach was prevalent to keep track of whether the schemes reach the retailers or not.

Normally, the dealers of HLL deal with numerous products and are engaged in frequent sale and distribution activity. Hence, they hardly had any time to keep track of the stock movement. This led to piling up of non-moving stock.

As the principal company is unaware of the stock level, it periodically sends the stocks to the distributor. This led to dumping the non-moving stocks. The distributor had no powerful means to control this, as he himself does not know the stock level.

The billing and reporting were time-consuming process for the RS. The report formats changed very frequently and the distributors had difficulty in providing the reports in required formats.

RS was barely able to keep track of the salesperson performance. Solution: HLL has chosen Wings to e-integrate its entire distribution network using Wings SCM - exclusive software designed for Distributors & Stockists. Wings SCM provided innovative solutions to surmount the difficulties in the earlier system.

Wings SCM handles schemes efficiently. It has controlled manipulation of schemes to a great extent. Whenever the schemes are declared by HLL they are defined in Wings. Hence, each time a sales invoice is raised automatically the scheme benefits are included in the bill. This ensures that the retailer gets what is intended for him.

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The inventory module of Wings efficiently handles stock movement and helps the RS to keep track of the stock movement and stock balance at any point of time. The effective reorder management resulted in maintaining sufficient stock at all times.

Wings designed flat file reports exclusively for HLL. These reports display the purchase, sales and stock balance of the stockist. These files are updated in the HLL website. This enables the principle company to keep abreast of the current market demands and the stock to be sent to the distributor.

Reports as you want - The Report Writer utility enables the stockist to design and get the report in whichever format they want it. Once the data is available Wings can represent it in the desired format.

Load Charts - Once the distributor generates the sales invoices of a particular day, Wings automatically generates the load chart based on it. This chart displays the load i.e. the quantity of each item to be loaded in the van, for each beat.

Collections - Wings has various collection modes. The stockist can enter salesman-wise, beat-wise, date-wise, profit center-wise, product-wise and party wise collections details.

Compatibility with other software - Wings supports export and import of data. This feature is helpful when a distributor is dealing with various principal companies and is using different software for each principle company. The distributor can either import the data from other software to Wings or export the data in Wings to other software to get the consolidated reports.

3-Dimensional Reports - Wings helps to filter the reports by period, product and customer. This enables the stockist to analyze the sales data in various aspects.

DOS Printing - Wings supports DOS printing. This makes printing faster. Johnson & Johnson Caring for the world, one person at a time... inspires and unites the people of Johnson & Johnson. We embrace research and science - bringing innovative ideas, products and services to advance the health and well-being of people. Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world. Our Family of Companies comprises:

The world’s premier consumer health company The world’s largest and most diverse medical devices and diagnostics company The world’s fourth-largest biologics company And the world’s seventh-largest pharmaceuticals company

We have more than 250 operating companies in 57 countries employing 117,000 people. Our worldwide headquarters is in New Brunswick, New Jersey, USA. To learn more about our companies, explore the map. Our Credo Values The values that guide our decision making are spelled out in Our Credo. Put simply, Our Credo challenges us to put the needs and well-being of the people we serve first.

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Our Management Approach Johnson & Johnson is a company of enduring strength. We credit our strength and endurance to a consistent approach to managing our business, and to the character of our people. Our Views & Positions As a global corporation, what we believe and what we do has an impact on the challenges and opportunities facing health care and business today. Corporate Governance Our Credo values guide the actions of people throughout the Johnson & Johnson Family of Companies. These values extend to our accounting and financial reporting responsibilities. Company Structure See how our Family of Companies is organized. Our People & Diversity People and values are our greatest assets and diversity is a central part of the cultures across the Johnson & Johnson Family of Companies. Our History Johnson & Johnson was founded more than 120 years ago. Since then, we’ve brought the world new ideas and products that have transformed human health and well-being. Dabur India Limited Dabur India Ltd (Dabur India), a part of the Dabur Group, was incorporated in 1975 for manufacturing and marketing FMCG, ayurvedic and pharmaceutical products. The pharmaceutical division of the company was demerged in 2003. In Apr 2006, three entities, Balsara Hygeine Products Ltd, Balsara Home Products Ltd and Besta Cosmetics Ltd were merged with Dabur India. Dabur India operates with four divisions namely, consumer care, consumer healthcare, foods and international business division. The consumer care caters to six FMCG segments of hair care, oral care, health supplements, digestives, home care and skin and baby care. Some of its major brands include, Vatika, Meswak, Hajmola, Babool and Odomos among others. Consumer healthcare deals in ayurvedic products under the brands Honitus, Nature Care and Shankpushpi among others. Dabur India operates its food business through Dabur Foods Ltd that offers juices, nectars, drinks and food additives under the brand names Real, Active and Coolers among others. Dabur India operates nine production facilities organised around three main factories at Baddi, HP; Pantnagar, Uttarakhand and Nepal; and six support factories at UP, Jammu, Rajasthan, MP, WB and Dadra and Nagar Haveli. In FY07, consumer care accounted for approximately 88% of the company’s revenue. In May 2007, Dabur India incorporated H&B Stores Ltd, a wholly owned subsidiary, for foraying into the retail business.

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CONCEPTUAL OVERVIEW-

RURAL SECTOR AND DEMOGRAPHY OF INDIA

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DEMOGRAPHICS OF INDIA

The demographics of India are remarkably diverse. India is the second-most populous country in the world with over 1.18 billion people (estimate for April, 2010) and consists of more than one-sixth of the world's population. It contributes 17.31% of the world's population and projected that India will be the largest populated country by 2025 surpassing China, and by 2050 it will have over 1.6 billion people. India has more than two thousand ethnic groups, and every major religion is represented, as are four major families of languages (Indo-European, Dravidian, Austro-Asiaticand Tibeto-Burman languages) as well as a language isolate (the Nihali language spoken in parts of Maharashtra). The Indian subcontinent has long been one of the world’s most populous regions, but as in many of today’s developing countries, population growth took off in the 20th century. India began the century with a population of about 238 million and ended it with 1 billion. India added another 100 million by 2006, when its population reached an estimated 1.1 billion. This phenomenal growth followed a century of relatively stable population size, according to most historical estimates. India is often described as a collection of many countries held together by a common destiny and a successful democracy. Its diverse ethnic, linguistic, geographic, religious, and demographic features reflect its rich history and shape its present and future. No fewer than 16 languages are featured on Indian rupee notes. It is also only the second country to achieve a population of 1 billion. While it is an emerging economic power, life remains largely rooted in its villages. Only a small fraction of Indians are benefiting from the country’s expanding industrial and information sectors. India has more people than Europe, more than Africa, more than the entire Western Hemisphere. India’s population will exceed that of China before 2030 to become the world’s most populous country, a distinction it will almost certainly never lose. Just one group, Indian boys below age 5, numbers 62 million—more than the total population of France. India’s annual increase of nearly 19 million contributes far more to annual world population growth than any other country.

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RURAL SECTOR IN INDIA

India has a mass population of over 70% living in the rural sector. The Indian growth story is now spreading itself to India's hinterlands. Rural India, which accounts for more than 70 per cent of the country's one billion population (according to the Census of India 2001), is not just witnessing an increase in its income but also in consumption and production. Although many Westerners associate Indian life with teeming megacities, as the country’s registrar general said in 2005, “India lives in its villages.”A large majority of Indians live in relatively small localities and are engaged in farming or some activity related to farming. In 2001, the average Indian lived in a village of about 4,200 people; 72 percent of India’s total population was classified as rural, and 58 percent of workers were engaged in agriculture . Following table 1 and table 2 provides more of validity to the following data.

This gives a proof of the working pattern and residence of the population in our country. Over 70 per cent of India’s population still live in rural areas. There are substantial differences between the States in the proportion of rural and urban population (varying from almost 90 per cent in Assam and Bihar to 61 per cent in Maharashtra). Agriculture is the largest and one of the most important sectors of the rural economy, both as a contributor to economic growth and employment. Its contribution to the GDP has

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declined over the last five decades but agriculture still remains the source of livelihood for over 70 per cent of the country’s population

Just 11 percent of Indians lived in large cities of 1 million or more residents. Many Indians who live in relatively populated areas are classified as rural because their communities are highly dependent on agriculture and lack the population density required for the official urban designation. In general, India classifies communities as urban if they have at least 5,000 people; a population density of at least 400 people per square kilometer (1,000 per square mile); and less than 25 percent of the male labor force engaged in agriculture. Accordingly, many of the 16 percent of Indians living in places with 5,000 to 19,999 people are classified as rural. Throughout most of India, rural residents have lower educational levels, higher mortality and fertility, higher poverty, and fewer modern amenities than urban residents. Rural-to-urban migration has been much slower than in Latin America and in other world regions. Most Indians live their entire lives within a relatively limited geographic area.

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POPULATION INDICATORS FOR INDIA

This indicator clearly suggests that in the future also the population of the rural sector would be in more dominance over the urban sector. Hence the market has a very great potential.

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RURAL POPULATION GROWTH RATE This chart clearly suggests the rural population growth state wise in the coming years.

http://populationcommission.nic.in/facts1.htm

When we have a glance at this chart the population growth rate of the rural sector is most in the states of Bihar, Uttar Pradesh, Madhya Pradesh, Rajasthan and Orissa which tends to around 55%. This is then followed by Andra Pradesh, Karnataka, Tamil Nadu and Kerala by 14%. A dominance of southern sates is felt.

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INTRODUCTION TO THE PROJECT

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INTRODUCTION TO THE PROJECT

Reckitt Benckiser Group Plc. (Reckitt Benckiser) is principally engaged in the manufacturing and marketing of household, cleaning, health and personal care products. The company manufactures products related to several categories which include dishwashing, fabric care, surface care, health, home care and personal care products and food. As the rural sector market is growing and still about 70 to 75% of the population resides in the rural sector so the critical touch point that is the rural market has been released by most of the FMCG companies. MNCs and Indian companies alike are plugging into rural India with a vengeance. Till recently, most FMCG companies used to treat rural markets as adjuncts to their urban strongholds and rural consumers as a homogeneous mass without segmenting them into target markets and positioning brands appropriately. Now the target shift pattern has diverted from the urban to the large rural market. To expand the market share and attain growth prospects targeting rural market by Reckitt Benckizer is to be must. My project deals with the working of the company in the rural market of Madhya Pradesh. The company has come up with a new strategy of targeting the rural sector to increase the size of its cake in terms of market share. Before moving further to research work we will have to study demographic features of our country, the size of the rural sector and the company’s initiatives that is the project DEEP DIVE specially targeting the rural sector. Thorough study of all the above head is required before coming up with any conclusion or suggestion. For preparing a well defined and detailed report I was assigned a task of working in the rural market of Madhya Pradesh. A detailed report of the Deep Dive towns namely Vidisha and Beena have been studied in detailed by me in my project which would be discussed in the later stages of the report. The report of the Deep Dive towns is further made after continuous working in the towns on field and carefully observing the towns during the training duration. If the company manages to maintain its strategy of the rural sector the a greater chunk of market share is awaited for the company as the urban sector is to its saturation level and the 70% of this sector has been remained unexplored. Now the war from the urban market is likely to shift its pattern towards the rural sector.

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PROJECT DEEP DIVE OF RECKITT BENCKIZER 2010

Indian Market – Facts

• Market facts − 72% of All India consumers live in the Rural areas (Source - Census of India –

2001) − Rural growth outpacing urban growth i.e. Rural markets are growing 5-12%

higher than urban market (the trend to continue) – (Source – NCAER) − Rural has been attracting huge attention from the government and the industry

alike − Massive increase in budgetary allocations (2009-10 budget)

− Huge waivers for farmers (to benefit rural economy) − Strengthening Rural Employment Guarantee scheme (would result

in increase in disposable income) − Rural – Huge market with untapped potential (Source –

NCAER) − Rural is a huge contributor across various product/service segments − e.g. 55% of LIC policies are from Rural, 70% of toilet soaps are in Rural, 50% of

TV/Fridges/Wrist watches etc Rural Market – Facts

• Industry investing in Rural areas − Huge untapped potential, Focus on increasing distribution and tapping the huge

consumer base (Source : RMAI) − Focused channel programs by FMCG players to address the needs of the channel

− HUL – “Project Shakti” − ITC – “E-Chaupal” − Coca-Cola – Project “Parivartan” − Tata Tea – Project “Gaon Chalo” − Dabur – ASTRA (Advanced Sales Training for Retail Ascendence)

− Non-FMCG also targeting rural to drive growth − SBI – Project Tiny Account − Indian Postal department – Offering more services via its strong 150000

office strong network

Rural Market – Changing principles

• Rural Market − Consumer awareness similar to urban – TV acts as a great leveler − Higher disposable incomes makes the market more attractive

• Shift from the conventional 4Ps model to 4As model

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• Organizations focusing on driving 4As to leverage the strong rural markets RB - Way Forward

• Focusing on 4A principles − Focus initiatives to address some/all of the 4As

Availability- The first challenge is to ensure availability of the product or service. India's 627,000 villages are spread over 3.2 million sq km; 700 million Indians may live in rural areas, finding them is not easy. However, given the poor state of roads, it is an even greater challenge to regularly reach products to the far-flung villages. Marketers must trade off the distribution cost with incremental market penetration.

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Affordability- The second challenge is to ensure affordability of the product or service. With low disposable incomes, products need to be affordable to the rural consumer, most of who are on daily wages. Some companies have addressed the affordability problem by introducing small unit packs.

Acceptability- The third challenge is to gain acceptability for the product or service. Therefore, there is a need to offer products that suit the rural market. One company which has reaped rich dividends by doing so is LG Electronics. In 1998, it developed a customized TV for the rural market and christened it Sampoorna. It was a runway hit selling 100,000 sets in the very first year. Because of the lack of electricity and refrigerators in the rural areas, Coca-Cola provides low-cost ice boxes — a tin box for new outlets and thermocol box for seasonal outlets.

Awareness- Building awareness is another challenge. Fortunately, however, the rural consumer has the same likes as the urban consumer — movies and music — and for both the urban and rural consumer, the family is the key unit of identity. However, the rural consumer expressions differ from his urban counterpart. Outing for the former is confined to local fairs and festivals and TV viewing is confined to the state-owned Doordarshan. Consumption of branded products is treated as a special treat or indulgence.

Amongst the fourA’s the major ones are the awareness and availability. All the game relies on these two A’s rest two are secondary in the hands of the consumer.

Deep Dive – National Roll Out 2010 by RBI

Objective – to deliver incremental business growth in the Super Stockist channel by improving overall Quality of Coverage This program was the biggest initiative by the company to form a super stockiest and then under him stockiest to serve the deep dive towns. Huge Investments on Visibility front across these towns i.e. Rs4Crs to be spent on visibility by the company. Additional resources (PSRs/ASEs) to get the maximum out of these highly prosperous & growing towns Big rewards for field force and channel partners Focused media inputs in the rural territories – for the first time media focus to be given to these towns

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Ultimately these all efforts were made by the company to further achieve 35% business growth across Deep Dive towns. Deep Dive – Plan 2010

Improved Coverage- Total of 766 Towns (>2Lacs of business) to be enrolled in the program 25% of numeric distribution covering 58% of SS Channel business

53 additional PSRs required 7 additional ASEs 1054 Mandays to be increased

Differential Visibility- Differential Visibility Tools to ramp up in-Market visibility across these towns Dealer Boards (34150 Nos) Tin Plates (22980 Nos) Wall Painting (766000 Sq Feet) In-Shop Branding (500 O/Ls)

Trade Initiatives-Structured WS program across >3.5Lac Sub-DB towns Top 4 Parties across 288 towns to be enrolled into the program Target delivery incentive for the WS parties 0.6% incremental spend

Team Incentive- ASM/ASE/PSR to be incentivised on Deep Dive Targets To be integrated in the standard incentive Design

Sub-DB Incentive- incentive for program Sub-DBs on planned Business ach Target incentives of Rs3500/6000 for two quarters in the year Integrate the same in Sub-DB Incentive for 2010

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Program Element details & Status Update

1. Additional Manpower Plans

2. Differential Visibility

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3. Trade Initiative – Sub-DB WS program

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4. Sub-DB Incentive-

• For the enrolled Sub-DBs − Incentive for Q1 (only Quarter 1) on delivering the Deep Dive target

− Slab 1 (>3.5 Lacs per month) – Gift worth Rs6000/- − Slab 2 (2-3.5 Lacs per month) – Gift worth Rs3500/-

• This incentive integrated with Sub-DB incentive for Half-1 2010 - Sub-DB program brochures would be carrying all the details

INTRODUCTION TO DEEP DIVE TOWNS

Reckitt Benckiser India (RBI) classifies its major areas or high target towns in the rural market as deep dive towns also known as the DD towns. They are the main focus point of the company in achieving the target of thee company and are also expected a growth of 35% on year to year basis. These towns act as a major focus point for the company in terms of sales view and taken special care off. In particular for this research work I have been allotted two of the company’s deep dive town which are Vidisha and Beena respectively.

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DEEP DIVE TOWN- VIDISHA

Vidisha was the first DD town which was allotted to me for my study. This town is located approximately 45 kms. From Bhopal. The town has a very healthy market prospects in terms of trade as I have worked for approximately ten days in this town which can be an identification sign for any one. The stockiest for this town is Hasmukh Brothers. The town has a population ranging from 2-2.5 lakh people. While when we compare it with the Vidisha district the population is just the four times of the town’s population. The stockiest holds 7 number of wholesalers for the products of RBI and covers approximately 275+ shops in the region. The major markets covered by the stockiest in the town are Pital mill, Madhavganj, Station road and Tilak chowk. Apart from that neighboring four small villages are also served by the stockiest. RBI puts this town in the range bracket of 3-3.5 lakh monthly sales target. With the great potential in the town it is able to achieve its half yearly target for this year starting from January ending to June. The stockiest apart from the RBI holds four other major brands as a stockiest and has a man force of three workers to serve all the five brands. Visibility that is the visual merchandising was visible in some parts of the town very clearly which was having a greater impact on the promotional purpose. Various forms of visibility tools were observed by me in the form of danglers, posters, display boards for the retailers, wall paintings were observed. In the supermarkets whenever our product was shifted to the back while working in the market I tried them to be visible in the eye of the customers which will have an ultimate result on the sales of that product. I tried to convince the retailers to make the consumer aware about our brands any make sure that it always hit the eye of the consumer when ever steps in for anything. Mr.Vashu Kamdar is the company’s Pilot Sales Representative (PSR) for this town. Reaction of the stockiest:

Towards company- when talking about the reaction of the stockiest towards company was very much positive.

Towards products/brands offered- the stockiest was very much satisfied by the range and the segments which the company was serving.

Expectation of the stockiest:

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Stockiest margin- according to the stockiest there must be an further increase in the margin for him as he suggests that he works on a very little margin.

Target incentive programs- the stockiest wants good target insensitive programs as it acts as a beneficiary position in terms of monetary benefits for the stockiest and he gets attracted towards them.

Suggestion by the stockiest:

Effective schemes Effective consumer offers. Dispatching the ordered goods only by the super stockiest. Inspection of the delivered goods.

GROWTH PROSPECTS IN THE TOWN: When we put focus on targets the whole picture seems to be quite positive from the point of view of the company. The attainment of targets clearly defines that the town is in the growth stage. In 2010 Quarter first targets set by the company for the town were 7.50 while the town achieved much more than the expected that is 9.46 which was a very positive sign for the company while comparing with the Q1 target of 2009 that was 5.55. In 2010 Quarter two targets set by the company for year 2010 was 9.90 and the achievement was of 9.96 which again indicated growth while comparing with the Q2 target of 2009 that was 7.34. In 2010 when we compare half yearly targets the set target was 17.40 while the achievement was of 19.42 while it was 12.89 as compared to 2009. In 2010 the town indicated a achievement% of 126% in the Q1 while 101% in the Q2 while for the half yearly was 112%. After analyzing all the sales data it clearly suggests that the town is very well in the growth stage and will come out with flying colors in future.

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DEEP DIVE TOWN- BINA

Bina was the second DD town which was allotted to me for my study. This town is located approximately 180 kms. From Bhopal. The town has a very healthy market prospects in terms of trade in coming future as I have worked for approximately five days in this town which is an identification sign for me. The present stockiest for this town is Prakash Agency The town has a population ranging from 1.5-2 lakh people. The stockiest holds 4 number of wholesalers for the products of RBI and covers approximately 250+ shops in the region. Apart from the town the stockiest covers 10 neighboring towns and areas. RBI puts this town in the range bracket of 3-3.5 lakh monthly sales target. The stockiest apart from the RBI holds other major brands as a stockiest and has a man force of three workers to serve all the brands. Visibility that is the visual merchandising was visible in some parts of the town very clearly which was having a greater impact on the promotional purpose. There was a very huge wall painting in front of the shop of the stockiest of the dettol soap acting as a visibility purpose. Various forms of visibility tools were observed by me in the form of danglers, posters, display boards for the retailers, wall paintings were observed.. I tried to convince the retailers to make the consumer aware about our brands any make sure that it always hit the eye of the consumer when ever steps in for anything. I personally tried the retailer to attract the consumers by highlighting the products specially those offering consumer offers. Mr.Vashu Kamdar is the company’s Pilot Sales Representative (PSR) for this town. Reaction of the stockiest:

Towards company- when talking about the reaction of the stockiest towards company was rude and negative attitude was observed. That was mainly due to non fulfillment of the targets by him.

Towards products/brands offered- the stockiest was very much satisfied by the range and the segments which the company was serving.

Expectation of the stockiest:

Stockiest margin- according to the stockiest there must be an further increase in the

margin for him as he suggests that he works on a very little margin.

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Target incentive programs- the stockiest wants good target insensitive programs as it acts as a beneficiary position in terms of monetary benefits for the stockiest and he gets attracted towards them.

Revision of targets. Suggestion by the stockiest:

• Stockiest suggest that smooth functioning of the company is not visible. The company must understand the culture, market environment and adjust accordingly and flexibly towards the stockiest.

• Market criticalities must be understood at the upper level. • It’s not an easy task to perform sales in rural. • Six monthly targets must be accordingly month wise so that burden on the stockiest is not

on the last month. GROWTH PROSPECTS IN THE TOWN: When we put focus on targets the whole picture seems to be in a doldrums from the view point of company as well as stockiest. Targets are not being met. In 2010 Quarter first targets set by the company for the town were 9.85 while the town achieved 9.95 which was a very positive sign for the company while comparing with the Q1 target of 2009 that was 7.29. In 2010 Quarter two targets set by the company for year 2010 was 14.10 and the achievement was of 8.19 which indicated degrowth while comparing with the Q2 target of 2009 that was 10.44. In 2010 when we compare half yearly targets the set target was 23.94 while the achievement was of 18.14 while it was 17.74 as compared to 2009 again a situation of degrowth. In 2010 the town indicated a achievement% of 101% in the Q1 while 58% in the Q2 while for the half yearly was 76%. After analyzing all the sales data it clearly suggests that the town going in a degrowth stage, no growth is been observed in terms of figures and sales. This is mainly due to the migrating laborers which came to Bina for the purpose of building oil refinery and the laborers have left so the sales has drastically gone down. But I the near future the sales is likely to go up as when the refinery starts the trade in that area will boom and it will be an win-win situation for both company and the stockiest.

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WORKING WITH THE COMPANY

RATE CALCULATION (Working on excel):-

Its very important aspect of rate decision because this is the method on which we provide rate to distributer and mainly to retailers. We convince our retailer on the basis of schemes which company provides on different products, so in order to convey them what all the benefits company is providing them on different products we should know the method that is used to deduct scheme % and provide with the actual amount they will save on MRP.

We first start with the margin that is company fix % that company provide on all products that is been calculated on MRP. Now this is calculated by division of MRP by (100 + % margin). Now this the rate without deducting the scheme, now before we deduct scheme we have to first deduct VAT because scheme is being calculated before VAT being charged. Vat is deducted same as done for margin that is Amt after margin divided by 100+ % of VAT. Now after this scheme is being deducted from amt after deducting VAT that is = Amt after deducting VAT - (Amt after deducting VAT*% scheme), now again for final calculation of rate vat is being added than the amt after this is the final amt which is provided to retailers.

Now for Distributers, margins for distributers are calculated same as for retailers on MRP and also schemes also is calculated likewise. Thus this is the method how we calculate rate of different products with the help of excel.

MARGINS

Cherry full products, Mansion polish and Harpic al products 12%

Dettol soap 8.5%

Robin products leaving powder 12%

Robin powder, Lizol full and rest all products leaving Pharma 10%

All pharmacy products 16%.

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PSR BOOKLET

PSR booklet is a very important tool in the hands of PSR provided by the company. It’s a book which consist of a number of inbuilt feature which are helpful for PSR to maintain there record, make there future plan and also keep a track on there working so as to where they have reached and how far they have to go. It’s half yearly record maintained book.

PSR booklet primarily consist of Permanent journey plan of the PSR which has to be filled by PSR according to him that what work plan he will follow in future have to be noted in it which is helpful for them. Than it consists of summary sheet which keeps a record of SUB_DB name and there average sale and next page consist of SUB-DB target and also its achievement. Now this is very important so as to keep a eye over our target and there achievement and also evaluate our performance that we are working with the pace or we are lacking our target.

It consists of Micro Target Sheet which is a tracker of every week of working in the market. Its helps to track out every week progress of secondary sale.

It also consist of Visibility summary sheet which keeps information about how many Dealer boards, tin plates and how much in store branding is being done in which town and retailer name. This has made a critical task easy so as to keep record of various visibility tools was difficult but with the help of this booklet it has becomes easier and also malpractices can be stopped with the help of this.

It also consist of Top wholesaler details and also there targets and there achievement, and also a KPI tracker that is the key product integrator which is track of the key products of RBI

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RESEARCH METHODOLOGY

Research methodology is a very organized and systematic way through which a particular case or problem can be solved efficiently. Sources of Data Data refers to a collection of natural phenomena, descriptors, including the results of experience, observation or a set of premises. This may consist of nos., words or images particularly as measurements or observations of a set of variables. There are two sources of data:

• Primary Source To study the retailers of the both the cities I designed certain parameters and worked in the markets for lot of those keeping those in mind. It was basically a observation based case study for the company. What the retailer feels is to known that is the critical touch point and what I personally felt that if I will directly ask the retailers there would be manipulations in my data. Hence I designed those parameters and worked in the market accordingly and gathered information. After gathering the information I have analyzed it carefully and prepared a suggestion report for the company for both the towns.

• Secondary Source To study the company’s Deep Dive initiative I took help from the internal secondary sources from the marketing department of the company. To identify the rural sector of our country help from the internet was taken.

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ANALYSIS OF DATA

Parameter- Are you satisfied with the products offered by the company?

ANALYSIS- When we look at the satisfaction rate it is fairly good and acceptable for the company as over 75% of the retailers are satisfied with the products of the company and those who were not came up with a reason that prices are premium and affordability factor came into consideration. While the major chunk says that are pretty much satisfied by the products offered. The reaction of the retailers towards the products of the company is very much positive as the figures of 83% and 77% very clearly suggest the whole picture. While the neutral one was those rarely cared what the company was offering they just knew about serving the customers.

SATISFIED83%

NEUTRAL10%

NOT SATISFIED

7%VIDISHA

SATISFIED77%

NEUTRAL15%

NOT SATISFIED

8%BINA

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PARAMETER- Are you satisfied with the promotion done by the company at top level?

ANALYSIS- again the satisfaction among the retailers is quite good as the figures of 69% and 73% feels that the promotional campaigns at the top level are quite good by the company. While the neutral ones felt that the demand for the products would remain whether promotional activities be performed or not this was felt by 18% and 27% of the retailers of the respective towns. While a chunk of retailers that were 4% and 9% felt that the promotional facilities of other FMCG is far much better than RBI. PARAMETER- Are you satisfied with the services of your stockiest?

SATISFIED69%

NEUTRAL27%

NOT SATISFIED4% VIDISHA

SATISFIED73%

NEUTRAL18%

NOT SATISFIED9%

BINA

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ANALYSIS- When we compare the satisfaction level amongst the retailer towards stockiest it comes out to a satisfactory figure. This clearly suggests that satisfaction level amongst the retailers is present towards the stockiest in both the towns. Figures of 71% and 79% act as quite impressive when we talk about the satisfaction level. Neutral ones were genrally those who made payment in advances and rarely cared who so ever is the stockiest they dominated by a 20% and 7% in both the cites. While the non satisfied had row with the stockiest in past over cash discounts or over some other issues which accounted to 9% and 14% respectively.

SATISFIED71%

NEUTRAL20%

NOT SATISFIED9%

VIDISHA

SATISFIED 79%

NEUTRAL7%

NOT SATISFIED14%

BINA

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PARAMETER- whom does you feels more comfortable trading with company’s PSR or stockiest representative?

ANALYSIS- Amongst the Pilot Sales Representative (PSR) and Stockiest Sales Representative (SSR) maximum number of retailers wants to deal with PSR reason being that the scheme information and product availability can be properly known to retailers. This was the most critical parameters for me to study. The sales volume when PSR went on to beat was far much more than the SSR. This was clearly visible from the data of the two towns. To support my point the retailers felt that they were more comfortable with PSR. 77% and 83% retailers felt that they were more comfortable in dealing with the PSR.

PSR77%

SSR16%

ANY ONE7%

VIDISHA

PSR83%

SSR11%

ANY ONE6% BINA

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PARAMETER- What encourages you to keep more of RBI products?

ANALYSIS- This is the story behind extra sales in Vidisha while the demand influences to maximum then to schemes whereas in Bina schemes are the most exciting factor which attracts the retailer. In Vidisha strong dominance of demand is observed over the others. While when we compare that with Bina schemes play a major role. In Vidisha 35% of retailers felt that demand is a most important factor to keep RBI products while the next dominance is of 29% which felt that it is the schemes on the products that motivate us. While on other hand in Bina schemes have a strong dominance over the demand. As 29% felt that it is the schemes that encourage them to keep those products followed by demand, consumer offers and margins.

MARGIN19%

CONSUMER OFFERS

17%

DEMAND35%

SCHEMES29%

VIDISHA

MARGIN21%

CONSUMER OFFERS

24%DEMAND26%

SCHEMES29%

BINA

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PARAMETER- EFFECTS OF VISIBLITY

65 % shopkeepers from both the towns believe that visibility tends to increase sales. While the rest 35% believe that customer is smart enough to purchase what he wants. As the company project Deep Dive consist of a number of initiatives one of which was visibility. Company has decided to spent a huge amount of money in visibility is basically creating awareness among rural areas about the products of companies. This is the method to convey company’s mission and vision to rural areas through dealer boards, Tin plates and company’s punch lines.

Company also focused in store branding by propagation if scheme under which company organized a competition in which retailers visibility will be graded of different towns and the SS of that towns which has best visibility will get prizes like microwave oven and some cash amount. This program was win-win situation first company was able to do there product branding and also SS are also getting benefit out of it.

Company made huge investment in number of various visibility tools across a number of town’s i.e.

Dealer Boards (34150 No’s) Tin Plates (22980 No’s) Wall Painting (766000 Sq Feet) In-Shop Branding (500 O/Ls)

65%

35%

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SUGGESTIONS FOR THE TOWN- VIDISHA

• Great potential in the market- the market of Vidisha has a great potential in itself as the growth figures clearly suggests. Stockiest must consider the criticality and look forward to the neighbouring small towns and villages population to increase his sales.

• Lack of beat by the stockiest- beat ratio must be increased by the stockiest as the market has a huge potential and the stockiest must look forward to it. Beat must be increased.

• PSR turns up in achieving far much- when the satisfaction rate was compared

amongst the PSR and the stockiest representative most of the retailers felt that they feel more comfortable in dealing with the PSR. The stockiest must raise his standards and recruit good man power.

• Target incentive scheme is very beneficial- there must be more and more of

target incentive schemes as the stockiest whole focus is upon attaining that and it acts as a win-win situation for both the stockiest as well as the company.

• Seriousness over secondary missing- the soctkiest must take up the task of

secondary sales very seriously as the seriousness over the secondary was missing.

• Consumer offers must be pushed more in this market as it attracts to a great deal- the attraction towards products offering with the consumer offer grabbed major attention in this market. Hence it must be more pushed into this market.

• PSR book implementation must be done by the stockiest.

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SUGGESTIONS FOR THE TOWN- BINA

• Attitude problem by the stockiest- the stockiest must change his attitude towards company and the defined targets. Each company looks for growth and to attain the targets are defined accordingly.

• Dominance over the company- the stockiest must not have a dominance over the company

• Secondary not performed properly- although the stockiest manages to sell a

good amount of products from his counter but the secondary part must also be performed by him as it will help him in enhancing his market share. Dependency over the company’s PSR must not be there.

• Row between the stockiest and a wholesaler- there is a great row between the

stockiest and wholesaler over the cash discount. This must be avoided as it effects the working of the both.

• Market criticalities must be understood at the upper level.

• Target must be accordingly so that no further negations must be

performed.

• Terms and conditions must be mentioned and explained to the stockiest clearly while offering any target incentive program.

• PSR book implementation must be done by the stockiest.

• More concentration upon the visibility tools must be performed.

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COMPETITOR PROJECT IN RURAL When we talk about the competitor products in the rural market the projects are basically: ITC CHOUPAL SAGAR- In 1990 leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. With entry of this ITC has shifted its all the products concentration in the rural sector and its gaining huge success in terms of growth. PROJECT SHAKTI BY HUL-

Hindustan Unilever Limited (HUL) to tap this market conceived of Project Shakti. This project was started in 2001 with the aim of increasing the company’s rural distribution reach as well as providing rural women with income-generating opportunities. This is a case where the social goals are helping achieve business goals. The recruitment of a Shakti Entrepreneur or Shakti Amma (SA) begins with the executives of HUL identifying the uncovered village. The representative of the company meets the panchayat and the village head and identify the woman who they believe will be suitable as a SA. After training she is asked to put up Rs 20,000 as investment which is used to buy products for selling. The products are then sold door-to-door or through petty shops at home. On an average a Shakti Amma makes a 10% margin on the products she sells. The major objectives were

• The Shakti entrepreneur program creates livelihood opportunities for underprivileged rural women.

• The Shakti Vani program works to improve the quality of life in rural India, by spreading awareness of best practices in health and hygiene.

• They are also studying the consumption habits of the rural people.

SHAKTI VANI- An initiative which helps support Project Shakti is the Shakti Vani programme. Under this programme, trained communicators visit schools and village congregations to drive messages on sanitation, good hygiene practices and women empowerment. This serves as a rural communication vehicle and helps the SA in their sales. In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also

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includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 31,000 women entrepreneurs in its fold, reaching out to 100,000 villages and directly reaching to 150 million rural consumers.

DABUR-ASTRA

This is sort of training program me started by dabur to its retailers of the rural market to boost up there growth upto 15%.Advanced Sales Training for Retail Ascendance (ASTRA), is acustomised training programme for frontline sales force at Dabur India Ltd. ASTRA is a dedicated audio-visual sales training initiative launched to enhance the quality of field execution. The programme is aimed at managing channel complexities with respect to sales and distribution and is undertaken through 'train the trainer' programme using 75 professional actors to train more than 2,000 channel partners across the country. The Astra training consultancy module has been created in five vernacular Indian languages - Bengali, Tamil, Telugu, Malayalam and Kannada.

Through this programme, we’ve trained nearly all of Dabur’s and its channel partners Sales force comprising Sales Officers, Stockists, Salesmen etc.

Shopkeepers selling Dabur India's consumer products would now learn marketing through role-plays staged by professional actors at their shops. As part of a recent initiative titled Astra, advanced sales training for retail ascendance, FMCG major has recruited 75 sales and HR managers across the country who would educate over 2,000 distribution channel partners of the firm about the complexities of sales and distribution through the audio-visual medium.

Dabur is targeting sales growth of above 15 per cent after implementing Astra, which was unveiled in May, and expects nearly 40 per cent growth in sales through modern trade and institutions, like hotels. The company also will keep a tab on its performance on a monthly and quarterly basis.

Dabur has a distribution reach of 25 lakh retail outlets across the country. About 75 per cent of the company's sales come form rural areas, hence, it has created the Astra training consultancy module in five vernacular languages, Bengali, Tamil, telungu, Malayalam and Kannada. The company also expects rise in consumer spending in the rural areas and plans to spread the initiative in the rural market.

Under Astra, Dabur has categorised its sales and distribution channels into finer segments, such as key grocers, mass grocers, chemist, wholesale, small outlet and modern trade.

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The programme will address specific needs and expectations of each channel in the areas such as, trade activation programmes, trade promotion programmes, brand/SKU focus, merchandising and managing channel conflict.

"We have seen that attrition among stockists is very high, we hope through this programme it would encourage greater involvement of stockists in their job and sales," said Sudhakar. Dabur's own sales force consists of 450 employees in the country.

Astra is a step ahead of Dare, driving achievement of retail excellence, introduced by the company in 2006. Dare was aimed at leveraging Dabur's brands performance in modern retail. Astra will encompass all the distribution channels including modern retail.

It will also run refresher training courses every six months. Every sales officer in Dabur has to work according to a journey cycle that begins on the first of every month.

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RECOMMENDATIONS

The project was concerned with the companies initiative to grasp the rural market as the facts

indicates the growing and fast emerging rural market than the urban areas. The company’s

initiative that is project deep dive is responsible for increasing sales of the products of the

companies. Apart from this there are also some crtical issues where the companies should focus

in order to enhance there working and also establishing there brand some of the recomendation

from my point of view as I have myself visited market they are –

Measures should be made in order to educate the Customer about the products.

The company should modify its advertising strategy and educate the customer about its

age old existence and enhance its brand image and many of the persons does not know

Reckitt Benckiser but all knows dettol.

Every possible step should be taken nationwide for sales promotion measures and

campaigns of the company in context of boosting sales and brand enhancement.

There are sometimes changes in lending rate when under cutting stock are available thus

this have to be kept in mind as it effects sales and also customer preference.

Company should more focus on its brand instead of independent branding of products as

all of the products of the company are successful thus tis would create a good company

brand image in eyes of customers.

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SUGGESTION FOR THE COMPANY

• A strong sector of India’s market is yet to be explored properly which can help in increasing the market share to a great extent.

• The company Deep Dive Plan is excellent and must focus on it with a great note.

• The company must constantly keep on increasing the size of the Deep Dive towns so that the reach becomes easier and faster.

• Every possible step should be taken nationwide for sales promotion measures and

campaigns of the company in context of boosting sales and brand enhancement.

• Measures should be made in order to educate the Customer about the duplicate

products.

• The company must keep a check on the Stockiest to a great extent and monitor his working very closely in terms of secondary sales.

• The company must promote good incentive programmes for the PSRs and the stockiest so that the ultimate target to grab rural market share must be achieved.

• The company should modify its advertising strategy and educate the customer

about its age old existence and enhance its brand image.

• Right on time concept is very important in the FMCG Industry because in the

absence of it customers purchase other company products.

• Company must understand the culture of rural market of India and must adapt to it accordingly.

• As the demand of the consumer offer goods rises in the rural market to a great extent hence it availability must be performed.

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LEARNINGS

Working of the company and FMCG sector

Familiarity of the brands and there sales percentage

Rate calculation and scheme calculation.

QPS-quantity purchase scheme. Scheme given by company on extra percentage.

Primary and secondary schemes

ECHO BRANDS.

Visibility target.

Promotion and merchandising.

Distributor and the retailer’s margin on the brands

Under mark: how the discount is applied to the brands i.e amount/1+discount%

Manipulation: how prices are manipulated to provide something extra

Importance of cash discount

Secondary sales- the most critical part in our sector and its great importance.

Working environment in the rural market.

Sales and efforts to perform it.

Tackling of retailers.

Explanation of schemes to promote sales to accomplish my targets

Helped a lot in understanding the importance of the deep dive areas.

Role of deep dive areas in achieving my targets as well as company’s target.

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BIBLIOGRAPHY

Books

Principle of Management (Kotler)

Kothari, C.R. “Research Methodology: Method and Techniques” Wishva Prakashan Pvt

Ltd.

Websites

www.google.com

http://en.wikipedia.org/wiki/Fast_moving_consumer_goods

http://www.reckittbenckiser.com/site/RKBR/Templates/Home.aspx?pageid=1

http://www.hotfrog.in/Companies/RECKITT-BENCKISER

http://en.wikipedia.org/wiki/Dabur

http://www.business-standard.com/india/news/dabur-uses-astra-to-boost-rural-

sales/327802/

http://www.itcportal.com/the_itc_profile/history_evolution.html

http://en.wikipedia.org/wiki/Demographics_of_India

http://www.financialexpress.com/news/hll-project-shakti-to-cover-all-rural-india/100565/

http://populationcommission.nic.in/facts1.htm

http://www.rb.com/home

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