NIFT PG 2013 Question Paper with solutions

  Wipro Consumer Care and Lighting, part of Wipro, plans to enter body lotions and shampoo categories with its flagship brand Santoor. “While the category is highly competitive, there is a lot of headroom to grow as penetration level is significantly lower in India compared to other markets,” according to the president at Wipro Consumer Care. The company started test marketing the hair care and body lotion products recently. Wipro Consumer, which recorded a 17% increase in its revenues in the third quarter and ended December at ₹ 1,028 crore, also expects half of its total sales to come from international business with the addition of Singapore-based FMCG firm LD Waxsons. At present, international operations contribute 40–45% to its revenues. Wipro Consumer acquired LD Waxsons for about $144 million (approx.₹ 775 crore). During the third quarter, its Indonesia and Vietnam businesses grew 26% and 24%, respectively, while China and Middle East grew by 32%. The Santoor brand has been growing over 20% in the last few quarters. It is the third largest soap brand in the country after Hindustan Unilever's Lifebuoy and Lux and has market leadership in south and western India. Last month, it became the top brand in states such as Maharashtra, Karnataka and Gujarat. However, it's a huge task for Wipro to replicate a similar feat in the ₹4,500-crore shampoo market, where HUL is by far the leader with over 50% market share. Also,margins have moderated in the past on account of promotions and ad spends, says a recent report by JP Morgan. Hence, companies such as Procter & Gamble & L’Oreal, are introducing various premium products like hair treatments, serums, hair masks, hair conditioners to help support margin profile for their hair care portfolio.