projectonitc.docx ankit tripathi (apeejay g noiga)

7/29/2019 projectonITC.docx Ankit Tripathi (Apeejay G NOIGA)

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RESEARCH REPORT ON

DRIVING SUPERIOR VISIBILITY OF OTHER

FMCG PRODUCTS IN CONVENIENCE OUTLETS

SUBMITTED FOR THE PARTIAL FULFILLMENT OF AWARD

OF

POST GRADUATE DIPLOMA IN MANAGEMENT

AT

ITC

BY

ANKIT TRIPATHI

ROLL NO: M2011022

UNDER THE SUPERVISION OF

(PROF. SUPRIYA GUPTA)

APEEJAY INSTITUTE OF TECHNOLOGY

GREATER NOIDA (UP)2011-13


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DECLEARATION

The work in this report is based on the original work carried out by me at Apeejay Institute of

Technology, School of Management, Greater Noida. No part of this report has been submitted

elsewhere for any other degree or qualification and it is all my work unless referenced to the

contrary in the text.

(Sumit Kumar Sinha)

M2011143


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CERTIFICATE

This is to certify that SUMIT KUMAR SINHA, Roll No M2011143 a student of

PGDM(G)batch of Apeejay Institute of Technology - School of Management, Greater

Noida has done the project work on DRIVING SUPERIOR VISIBILITY OF OTHER

FMCG PRODUCTS IN CONVENIENCE OUTLETS, under my supervision and

guidance. I understand this project report is being submitted to Apeejay Institute of

Technology, Greater Noida for award of degree of PGDM (G). To the best of my

knowledge, this report has not been submitted to any other University for award of any other

degree.

During this period, I have found the performance of his work satisfactory.

(Prof.SUPRIYA GUPTA) Date:

(SUPERVISOR)

(Prof. D.N Bajpai) Date:

(DIRECTOR)


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ACKNOWLEDGEMENT

I, hereby take the opportunity to express my deep and profound gratitude to Mr. Deepak

Srivastava and of this research project, without whose help my thesis would not have been a

success. I also thank to Prof. SUPRIYA GUPTA for her technical guidance and advice.

Last but not least, I would like to thank my family and my friends for their support and help

during the execution of the study.

Sumit Kumar Sinha

PGDM(G)

Roll no:-M2011143


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Table of contents

INDEX PAGE NO.

DECLARATION ------------------------------------------- ii

CERTIFICATE ------------------------------------------- iii

INDUSTRY CERTIFICATE --------------------------------- iv

ACKNOWLEDGEMENT ------------------------------------- v

EXECUTIVE SUMMARY --------------------------------------- vi

1.Introduction 1-62.1 FMCG and Product Characteristics

2.2 Industry Segment

2.Objective of the study 7

3.Literature Review 8-11

4.ITC 12-314.1Company profile

4.2Vision Statement

4.3Mission Statement

4.4Positioning Statement

4.5ITC Corporate Strategies

4.6History of ITC

4.7ITC Business Portfolio

4.8ITC FMCG

4.9Marketing Strategy used by ITC


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3.10 ITC FMCG Supply Chain

3.11 ITC SWOT

4 Competitive Analysis 32-38

4.1HUL4.2P&G

4.3DABUR

5 Research Study 38-445.1Research methodology

5.2Areas Surveyed

5.3Project methodology

5.4Reference Period

5.5Research Type

5.6Sample Design

5.7Sampling

5.8Tools & Techniques

6 Data Analysis 45-70

7 Limitations 71

8 Findings 72-73

9 Conclusion 74

10Recommendations 75

11Bibliography 76

12Appendix 77


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Executive Summary

The report is an earnest endeavor made to understand the driving superior visibility of other

FMCG product in convenience outlets in Patna. I was required to conduct a market study to see

the coverage by ITC products and bring out the potential and loyal retailers so that the company

could maintain the market leadership in the existing business scenario in the FMCG market.

During the course of study I visited around 200 retail outlet and conducted personal interviews

with the retailers to find out the visibility of FMCG products. I also used observation technique

to ascertain penetration of the ITC FMCG products and the market potential for the new

products. Also interviews were conducted to determine major competitors in FMCG segment.

Also the motive of research was to also ascertain promotional tools for marketing, and provide

recommendation for the same.

Research also included studying the behavior of consumers about their preferences for all

FMCG products in convenience outlets, and ascertains the overall buying behavior of consumers

with the help of questionnaire.


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Introduction of Study

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables other than groceries/pulses. The most

common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe

polish, packaged foodstuff, and household accessories and extends to certain electronic goods.

These items are meant for frequent consumption and have a high return. Typical characteristics

of FMCG products include products that often cater to three very distinct but usually wanted for

aspects - necessity, comfort, luxury. They meet the demands of the entire cross section of

population. Price and income elasticity of demand varies across products and consumers.

Individual items are of small value (small SKU's) although all FMCG products put together

account for a significant part of the consumer's budget. Often consumer spends little time on the

purchase decision. Brand loyalties or recommendations of reliable retailer/ dealer drive purchase

decisions. Limited inventory of these products (many of which are perishable) are kept by

consumer and prefers to purchase them frequently, as and when required. A major portion of the

monthly budget of each household is reserved for FMCG products. The volume of money

circulated in the economy against FMCG products is very high, as the number of products the

consumer use is very high. Brand switching is often induced by heavy advertisement,

recommendation of the retailer or word of mouth.

Competition in the FMCG sector is very high resulting in high pressure on margins. FMCG

companies maintain intense distribution network. Companies spend a large portion of their

budget on maintaining distribution networks. New entrants who wish to bring their products in

the national level need to invest huge sums of money on promoting brands. Manufacturing can
http://www.naukrihub.com/india/fmcg/companies/http://www.naukrihub.com/india/fmcg/companies/http://www.naukrihub.com/india/fmcg/companies/http://www.naukrihub.com/india/fmcg/companies/


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be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper

imports. Also the market is more pressurized with presence of local players in rural areas and

state brands.

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 characterizes the sector. FMCG Sector is expected to grow by over

60% by end of 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. However

penetration level as well as per capita consumption in most product categories like jams,

toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential.

Burgeoning Indian population, particularly the middle class and the rural segments, presents an

opportunity to makers of branded products to convert consumers to branded products.

FAST Moving Consumer Goods (FMCG) sector will witness more than 50 per cent growth in

rural and semi-urban India by end of 2010, according to an analysis carried out by the Associated

Chambers of Commerce and Industry of India.

The Indian rural market with its vast size and demand base offered a huge opportunity that

FMCG companies cannot afford to ignore. With 128 million households, the rural population is

nearly three times the urban. Companies in this sector to benefit include known names such as

Nirma, HLL, Dabur, ITC, Godrej, Britannia, Coca-Cola, Pepsi, among others. Availability of

key raw materials, cheaper labor costs and presence across the entire value chain gives India a

competitive advantage.


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However the FMCG market penetration is less and the demand is more. Thus manufacturers will

have to deepen their concentration for higher sales volumes. Some of the problems associated

with rural markets are acute dependence on the vagaries of the monsoon, seasonal consumption

linked to harvests, festivals and special occasions, poor roads and power problems and low capita

disposable income. The other difficulty that FMCG companies are likely to face is that of

logistics. India's 627,000 villages are spread over 3.2 million sq km. Delivering products to the

750 million Indians living in rural areas is a tough task.


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Top 20 Fast Moving Consumer Goods (FMCG) Companies in

India:

1. Hindustan Unilever Ltd. (HUL)

2. ITC (Indian Tobacco Company)

3. Nestl India

4. GCMMF (AMUL)

5. Dabur India Ltd

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries Ltd.

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries Ltd.

11. Colgate-Palmolive (India) Ltd.

12. Gillette India Ltd.

13. Godfrey Phillips

14. Henkel Spic

15. Johnson & Johnson

16. Modi Revlon

17. Nestle

18. Nirma Ltd

19. Amul India

20. Godrej Consumer Products Ltd


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Product Characteristics

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

They are generally used once in a month.

They are used directly by end users.

They are non durable.

They are sold in packaged form.

They are branded.

Industry Segment

The main segments of FMCG sectors are:

Personal care:

Oral care; Skin care; Personal wash (Soaps); Cosmetics and Toiletries; Deodorants; Perfumes;

Paper products (Tissues, diapers and sanitary);Shoe care.

Major companies active in this segment are Hindustan unilever, ITC, Godrejsoaps, Colgate-

Palmolive, Marico, Dabur, Proctor and gamble.

Household Care:

Fabric wash(laundry soaps and synthetic detergents); household cleaners ((dish/utensil cleaners,

floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish

and furniture polish).

Major companies active in this segment are Hindustan unilever, Nirma and Reckitt & Colman.


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Branded and Packaged Food and Beverages:

Health beverages; soft drinks; staples/cereals; bakery products (biscuits, breads, cakes); snack

food; chocolates; ice creams; tea; coffee; processed fruits, vegetables and meat; diary products;

bottled water, branded flour; branded rice; juices etc.

Major companies active in this segment are Hindustan unilever, ITC, Nestle,Cadbury and Dabur.

Spirits and Tobaccos:

Major companies active in this segment include ITC, Godfry Philips, UB and Shaw Wallace.


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Objective of the study

The objective of the summer training is to ensure that I as a management student develop in

real life experience for handling the specific project and also to develop all understanding

of the various management activities related to the area of my specialization. This training

gives us a substantial corporate exposure and also serves as a useful tool of interaction with

the corporate sector.

The project has been derived from the field of Marketing and is entitled as Driving

superior visibility of other FMCG products in convenience outlets.

The main Objective of the project is--

To check the visibility of other FMCG product in convenience outlets.

To know the impact of Retail Visibility on customers ultimate purchase intension.

Understanding about the functioning of merchandising system, visualmerchandising and display.

To find out the problems faced by the retail outlets related to ITC products.

To study the position of the ITC products in relation to competitors product.

To study the market capitalisation of ITC products in total sales.


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Literature Review


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Literature Review

The research on visibility of FMCG product is done to know their impact on consumers i.e.

to know their purchasing behavior after the visibility of products.

Many authors or researchers have given their different reviews regarding this topic.

In a study conducted by Rindova (2007) it is found that Visibility reflects the level of awareness

and exposure of the public towards the product, i.e. how many people know about the product .

Visibility is associated with the number of times that individuals encounter information about or

receive messages about the product. Awareness of a product is one of the preconditions that

must exist before people will buy the product.

Cacioppo and Petty (1989) in their research say that high visibility leads to an increase in the

exposure and familiarity of the subject, causing consumers to form a positive attitude towards

subjects.

In a study done by Dellarocas (2007) it is found that Visibility captures the number of times

individuals are exposed to information and messages about a product. The higher the visibility of

the product, the more likely it is available in customers memory. With regards to visibility,

although less understandable than the effect of favorability at the first glance, empirical evidence

attests to the impact of visibility on product purchase

In a study done by Grunert (2006) says that Visibilityboth for manufacturers nationwide

brand or retail store level brandis important


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In International Management Review ( Vol. 6 No. 2 2010) it is found that

Brand visibility is one major way to communicate the brand. Companies are always looking for

tools and ways to increase the brand visibility and communication

This research have given Some Ways to Increase Brand or Product Visibility and

Communication

Sorting the products/ brands properly (visibly) in the shelf

Some shopkeepers keep products indiscriminately. If all the SKUs of a particular brand

is kept in an orderly fashion, the brand name is clearly visible to the purchaser and this

presentation creates a strong impression. A careful sorting of Indian font and English font in

equal proportion. Packages have different sizes of font of their product labels. Displaying the

large images to the front would create better visibility.

Dedicated company display shelf space

Nestl, BATB, and Unilever do it very visibly. They provide a specific shelf for their product.

Other local companies can do it. It will increase their brand visibility and will raise the cost of

merchandising to the companies already doing that.

Corporate or specific brand labeled T shirts

Retail shop owners, shop employees, and even some regular customers can be provided these

kinds of gifts. Brand is communicated to all customers visiting the shop. Corporate or a specific

brand-labeled T-shirts can be given to DSRs who move from shop to shop; the brand is

communicated to everyone who comes across them.


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Fill in the blank spaces in the shop

In many shops, there are spaces which the shop owner could not polish or have a finishing or

color it. These spaces can be effectively used for brand or corporate communication. Corporate

or specific brand posters can be labeled in the spaces to be covered. These will make retailers

happy, as they add to the interior beauty of the shop


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ITC


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Company profile

ITC Limited is an Indianconglomerate founded on 24 August 1910. The company (formerly

known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander

Deveshwar. The company has its registered office in Kolkata. It employs over 20,000 people at

more than 60 locations across India.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,

Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel,

Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an

outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards,

Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of

Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

It ranks third in pre-tax profitamong India's private sector corporations. ITC is one of India's

foremost private sector companies with a market capitalization of over US $ 22 billion and a

turnover of US $ 6 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50'

and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected

Companies by Business World and among India's Most Valuable Companies by Business Today.

ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand

Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.ITC is one of India's most valuable and respected

corporations.
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/Yogesh_Chander_Deveshwarhttp://en.wikipedia.org/wiki/Yogesh_Chander_Deveshwarhttp://en.wikipedia.org/wiki/Net_profithttp://en.wikipedia.org/wiki/Net_profithttp://en.wikipedia.org/wiki/Net_profithttp://en.wikipedia.org/wiki/Yogesh_Chander_Deveshwarhttp://en.wikipedia.org/wiki/Yogesh_Chander_Deveshwarhttp://en.wikipedia.org/wiki/Conglomerate_(company)http://en.wikipedia.org/wiki/India


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Vision statement

Sustain ITC's position as one of India's most valuable corporations through world class

performance, creating growing value for the Indian economy and the Companys stakeholders

The mission statement

To enhance the wealth generating capability of the enterprise in a globalizing environment,

delivering superior and sustainable stakeholder value

Positioning statement

"Enduring Value. For the nation. For the Shareholder."


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ITCs corporate strategies are:

Create multiple drivers of growth by developing a portfolio of world class businesses that

best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &

Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market

Standing, Profitability and Internal Vitality.

Ensure that each of its businesses is world class and internationally competitive.

Enhance the competitive power of the portfolio through synergies derived by blending

the diverse skills and capabilities residing in ITCs various businesses.

Create distributed leadership within the organization by nurturing talented and focused

top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to

catalyze the entrepreneurial energies of management by striking the golden balance between

executive freedom and the need for effective control and accountability.


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HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of

India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's

existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot

of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs

310,000. The Company's ownership progressively Indianised, and the name of the Company was

changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio

encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information

Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle

Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were

removed effective September 18, 2001.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for

ITC's Cigarettes business. It is today India's most sophisticated packaging house.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai

which was rechristened 'ITC-Welcomgroup Hotel Chola'. Since then ITC's Hotels business has

grown to occupy a position of leadership, with over 70 owned and managed properties spread

across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited, which today has become the market leader in India.


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In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In

August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to

Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a

major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was merged

with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers

Division in November 2002.

In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for

export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative

began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4

million farmers. ITC's first rural mall, christened 'Choupal Sagaar' 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.

In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'.

In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books

and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular

range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium

stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the

school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international

quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores

later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening


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wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John

Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier

fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and

retailers as the single largest B-2-B platform for the Fashion Design industry. In 2007, the

Company introduced 'Miss Players'- a fashion brand in the popular segment for the young

woman.

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC

Infotech India Limited, to more aggressively pursue emerging opportunities in this area.

ITC's foray into the Foods business is an outstanding example of successfully blending multiple

internal competencies to create a new driver of business growth. It began in August 2001 with

the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.

In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-

o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the

introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast

growing branded snacks category with Bingo! in 2007.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value

chain found yet another expression in the Safety Matches initiative. ITC now markets popular

safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation

of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and

Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,

Sambrani and Nagchampa.


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ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care

products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills

provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and

women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian

consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels

and Soaps in September, October and December 2007 respectively. The Company also launched

the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in

October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of

shampoos in June 2008.


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ITC -FMCG

Cigarettes

ITC is the market leaderin cigarettes in India. Its highly popular portfolio of brands includes

Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley,

Bristol and Flake.

ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur

and Kolkata. These factories are known for their high levels of quality, contemporary technology

and work environment.


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ITC's has presence in overseas markets as well. In the extremely competitive US market, ITC

offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has

become a key player in the GCC markets through growing volumes of its brands.

Foods

ITC made its entry into the branded & packaged Foods business in August 2001 with the launch

of the Kitchens of Indiabrand. A more broad-based entry has been made since June 2002 with

brand launches in the Confectionery, Staples and Snack Foods segments.

The Foods business strives to deliver quality food products to the consumer. All products of

ITC's Foods business available in the market today have been crafted based on consumer insights

developed through extensive market research. ITC's state-of-the-art Product Development

facility is located at Bangalore.

The Foods business is represented in 4 categories in the market. These are:

Ready To Eat Foods

Staples

Confectionery

Snack Foods

ITCs six brand of food include:

Kitchens of India Aashirvaad Sun feast mint-o Candyman Bingo!
http://www.kitchensofindia.com/http://www.itcportal.com/foods/foods_kitchens.htmlhttp://www.itcportal.com/foods/foods_kitchens.htmlhttp://www.itcportal.com/foods/foods_aashirvaad.htmlhttp://www.itcportal.com/foods/foods_aashirvaad.htmlhttp://www.itcportal.com/foods/foods_sunfeast.htmlhttp://www.itcportal.com/foods/foods_sunfeast.htmlhttp://www.itcportal.com/foods/foods_mint-o.htmlhttp://www.itcportal.com/foods/foods_mint-o.htmlhttp://www.itcportal.com/foods/foods_mint-o.htmlhttp://www.itcportal.com/foods/foods_mint-o.htmlhttp://www.itcportal.com/foods/foods_bingo.htmlhttp://www.itcportal.com/foods/foods_bingo.htmlhttp://www.itcportal.com/foods/foods_bingo.htmlhttp://www.itcportal.com/foods/foods_mint-o.htmlhttp://www.itcportal.com/foods/foods_mint-o.htmlhttp://www.itcportal.com/foods/foods_sunfeast.htmlhttp://www.itcportal.com/foods/foods_aashirvaad.htmlhttp://www.itcportal.com/foods/foods_kitchens.htmlhttp://www.kitchensofindia.com/


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Lifestyle retailing

ITCs ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of

exclusive specialty stores.

Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear,

Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di

Willsan exclusive range of fine fragrances and bath & body care products and Fiama Di Wills

- a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills

Signature designer wear, designed by the leading designers of the country.

With a distinctive presence across segments at the premium end, ITC has also established John

Players as a brand that offers a complete fashion wardrobe to the male youth of today.

Education & Stationary

ITC made its entry into the stationery business in the year 2002 with its premium range of

notebooks. ITC's Education and Stationery Products are marketed under the brands "Classmate"

and "Paperkraft".

The Classmate range of products is targeted at satisfying education & stationery needs of

students & young adults. The product range includes Notebooks, Math Instruments, Scholastic

Products as well as Writing Instruments.

The Paperkraft range of products aims at satisfying the stationery needs & office consumables

need of office executives & working professional. The continuously expanding product range

under Paperkraft includes Premium Business Paper, Paper Stationery, Markers & Highlighters.


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Safety Matches

ITCs range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega

and Aim Metro. With differentiated product features and innovative value additions, these brands

effectively address the needs of different consumer segments. The Aim brand is the largest

selling brand of Safety Matches in India.

ITC also exports regular and premium safety matches brands to markets such as Middle East,

Africa and the USA. ITC aims to enhance the competitiveness of the small and medium scale

sectors through its complementary R&D based product development and marketing strengths,

especially the breadth and depth of the Company's trade marketing and distribution.

Aggarbattis

ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage

units in 2003. Mangaldeep Agarbattis are available in a wide range of fragrances like Rose,

Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.Durbar

Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide

consumer acceptance. The premium range from ITC, Mangaldeep Spriha has two offerings,

Pratiti and Sarvatra and is specially hand rolled by Cottage Industries, Sri Aurobindo Ashram,

Pondicherry.

Personal care

ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC

has already launched an array of brands, each of which offers a unique and superior value

proposition to discerning consumers. Anchored on extensive consumer research and product


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development, ITC's personal care portfolio brings world-class products with clearly

differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills'

'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is

being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and

benchmarked manufacturing practices. Contemporary technology and the latest manufacturing

processes have combined to produce distinctly superior products which rank high on quality and

consumer appeal.


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MARKETING STRATEGY USED BY ITC

ITC started an earnest exercise by creating a new brand image and corporate philosophy by

investing in new business categories like personal care, premium apparel, rural business (e-

Choupal) and foods. All along using its famed distribution strengths built through its successful

past businesses like cigarettes, paperboards and packaging, hotels and agri business, to create

synergies across its verticals and help prop up its new businesses, like personal care and foods.

ITC has a well thought-out strategic approach. Rather than acquiring weaker brands to get into

these new segments inorganically, it created a range of new personal care and branded apparel

brands.

The first step in this well-planned strategy was the launch ofWills Lifestyle, the premium

branded apparel business in 2002.

ITC then moved on to take the competition head on in the FMCG domain, through ITC Foods

in August 2001, and personal care business, which is the focal point of this story, in 2005. It has

created good impact with its well etched-out Personal Care Brands. Under this category,

brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia were

designed to take care of various sets of consumer segments.

But behind this launch was five years of intensive on ground research of market conditions and

consumer expectations. Over one lakh consumers were surveyed across the country to test

various prototypes. Acceptance benchmark was kept as high as 90 percent for the final products.

ITC called this exercise as '3E approach explore, establish and execute. As an adage goes

'if you have to win a race, you have to clearly target the No 1', ITC too aimed the No 1 which

happened to be the formidable HUL (which still reigns over 50 percent of the FMCG market).


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And ITC's target was HUL and P&G only. ITC roped in its tobacco business veteran Sandeep

Kaul to spearhead the personal care launch; it also sought help from product formulation and

branding experts in Europe and America to formulate the fragrance, aesthetics and packaging.

Many of the brands have also been developed at its R&D centre. The results are there for

everyone to see. In less than four years, ITC has been able to create brand awareness and

consumer acceptance for its five product lines Essenza Di Wills, Fiama Di Wills, Vivel Di

Wills, Vivel and the Superiaeach targeted at the needs, aspirations and usage behavior of

different consumer segments.


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Distribution system at ITC

The process of passing down each passing the product down the chain to the next organization

through Chain of intermediaries, before it finally reaches the consumer or end-user is known as

the 'distribution chain' or the 'channel.'

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

DealerOr wholesaler, who sells to end customers

Advertisement typically used for consumption goods

ITC follows:

CHANNEL WISE DISTRIBUTION

Here the total product is divided into different channels like, Health

care product, Personal care products, Home products & etc.

BEAT WISE DISTRIBUTION

Here total market is divided into different areas where the products are served to all the

outlets exist in that area.
http://en.wikipedia.org/wiki/Dealerhttp://en.wikipedia.org/wiki/Dealer


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SWOT ITC

Strengths

ITC leveraged it traditional businesses to develop new brands for new segments. ITC is a

diversified company trading in a number of business sectors including cigarettes, hotels, paper,

agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards,

Information Technology, safety matches, incense sticks and stationery.

Weaknesses

To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco

revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is

responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast

Moving Consumer Goods) is being subsidized by its tobacco operations. Its Gold Flake tobacco

brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco

market. Unrelated diversification is also a major weakness of ITC.

Opportunities

Core brands such as Aashirwad, Mint-o, Bingo! And Sun Feast (and others) can be developed

using strategies of market development, product development and marketing penetration.ITC is

moving into new and emerging sectors including Information Technology, supporting business

solutions.


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e-Choupal is a well thought of initiative that could be used in other sectors in many other parts of

the world. It is also an ambitious project that has a goal of reaching 10 million farmers in

100,000 villages

Per capita consumption of personal care products in India is the lowest in the world offering an

opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

Threats

The obvious threat is from competition, both domestic and international.

ITC's opportunities are likely to be opportunities for other companies as well. Therefore the

dynamic of competition will alter in the medium-term. Then ITC will need to decide whether

being a diversified conglomerate is the most competitive strategic formation for a secure future.


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Competitive analysis


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Competitive analysis

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company,

touching the lives of two out of three Indians with over 20 distinct categories in home & personal

care products and food & beverages. HUL is also one of the country's largest exporters; it has

been recognized as a Golden Super Star Trading House by the Government of India.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as

Hindustan Lever Limited through a merger ofLever Brothers, Hindustan Vanaspati Mfg. Co.

Ltd. and United Traders Ltd.It is headquartered in Mumbai,Indiaand has employee strength of

over 15,000 employees and contributes for indirect employment of over 52,000 people. The

company was renamed in June 2007 to Hindustan Unilever Limited.

HUL is the market leader in Indian consumer products with presence in over 20 consumer

categories such as soaps, tea, detergents and shampoos amongst others with over 700 million

Indian consumers using its products. It has over 35 brands. Its a company that has consistently

had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands).

Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its

products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets .
http://en.wikipedia.org/wiki/Fast_moving_consumer_goodshttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/File:Hindustan_Unilever_Logo.svghttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Lever_Brothershttp://en.wikipedia.org/wiki/Fast_moving_consumer_goods


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Strengths: Strong brand portfolio, price quantity

& variety. Innovative Aspects. Presence of Established distribution

networks in both urban and ruralareas.

Solid Base of the company. Corporate Social

Responsibility(CSR)

Weaknesses: "Me-too" products which illegally

mimic the labels and brands of theestablished brands.

Strong Competitors & availabilityof substitute products.

Low exports levels.

High price of some products. High Advertising Costs.

Opportunities:

Large domestic marketover abillion populations .

Untapped rural market. Changing Lifestyles & Rising

income levels, i.e. increasing percapita income of consumers.

Export potential and tax & dutybenefits for setting exports units.

Threats:

Tax and regulatory structure. Mimic of brands Removal of import restrictions

resulting in replacing of domesticbrands.

Temporary Slowdown in Economycan have an impact on FMCGIndustry.


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Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that

manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries:

P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd.

P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer

Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous

brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and

Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care

segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment.

Procter & Gamble entered Indian markets in 1951 with Vicks Product Inc. USA, branch of P &

G.

Procter & Gamble India since then has launched Whisper - the breakthrough technology sanitary

napkin, Ariel detergent, Ariel super soaker, Pantene Pro-V shampoo, Head & Shoulders

shampoo, Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter &

Gamble Home Products Limited launched Pampers - world's number one selling diaper brand.

Today, Proctor & Gamble is the second largest FMCG company in India after Hindustan Lever

Limited.


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SWOT Analysis P&G

Strengths

Leading Market Position Diversified and innovative

product Portfolio Strong Finances in past

years

Weakness

Quality control Problem Decreased Revenues in

their Northeast AsianMarket

Opportunities

Developing Markets Demographic trends across

the world

Threats

Competitors Rising cost of energy

prices New Regulations


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DABUR

Dabur India Limited is the fourth largest FMCG Company in India with brands like Dabur Amla,

Dabur Chyawanprash, Vatika, Hajmola and Real. The company has kept an eye on new

generations of customers with a range of products that cater to a modern lifestyle, while

managing not to alienate earlier generations of loyal customers.

Dabur was founded in the year 1884 by Dr. S K Burman. Dabur is headquatered in Ghaziabad

Uttar Pradesh. Mr Anand Burman is the current chairman of the company. Dabur has a employee

strength of approx 3000.

Dabur is an investor friendly brand as its financial performance shows. The company's growth

rate rose from 10% to 40%. Dabur had a turnover of approximately Rs. 3390.9 Crore in the

fianancial year(2009-10) & Market capitalization of over US$ 3.5 Billion (Rs 15500 Crore),

Its brands of juices, namely, Real and Active, together make it the market leader in the Fruit

Juice Category


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SWOT Analysis Dabur

STRENGTHS

Strong presence in well defined niches(like value added Hair Oil and Ayurvedaspecialties)

Core knowledge of Ayurveda ascompetitive advantage

Strong Brand Image Product Development Strength Strong Distribution Network

Extensive Supply Chain IT Initiatives R & Da key strength

WEAKNESS

Seasonal Demand( like chyawanprash inwinter and Vatika not in winter)

Low Penetration(Chyawanprash) High price(Vatika) Limited differentiation (Vatika) Unbranded players account for the 2/3rd

of the total market(Vatika)

OPPORTUNITIES

Untapped Market(Chyawanprash) Market Development Export opportunities. Innovation Increasing income level of the middle

class Creating additional consumption pattern

THREATS

Existing Competition( like Himani,baidyanath and Zandu for DaburChyawanprash and Marico,Keo Karpin,HLL and Bajaj for Vatika Hair Oil)

New Entrants

Threat from substitutes (like Bryllcreamfor Vatika hair oil)


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Research Study


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Research Methodology

Exploratory research was conducted in 20 areas of Patna mentioned below (source list) regarding

visibility of other FMCG product in convenience outlets of ITC and also to ascertain competitors

in each line of ITC products.

A total of 200 retail stores were surveyed. During the course of the study a number of stores that

were scattered all over Patna (source list mentioned below) were visited. It was very difficult to

tabulate a record of all the retailers and wholesalers present in the city and then carry out our

study, in the short span of time that was allotted. As a result retailers were selected according to

our convenience.All shops and areas were surveyed that could possibly be approached.

A personal interview as well as observation was used to carry out the study. Personal interviews

were conducted with the retailers to ascertain major competitors of ITC. Observation was used to

ascertain the visibility of other FMCG product of ITC.


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Areas Surveyed

TUGALPUR

SURAJPUR

JAGATFARM

PROJECT METHODOLGY

Understand and study the plansand prepare a questionnaire

Use quantitative and exploratoryresearch for data

Analyze the collected data fordetecting the gaps,deficiencies &areas of improvement

Develop recommendationsbased on the findings.


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Reference PeriodThis study is conducted for the period of 2 months starting from 1st May to 30th June,2012

Research Type

EXPLORATORY RESEARCH: The study was conducted to ascertain visibility of other

FMCG product of ITC. Also the study was conducted to ascertain major competitors and

consumer preference.

Sample Design

A sample design is a definite plan for obtaining a sample for a given population. It refers to a

techniques or procedure adopted in selecting items for the sample.

Sampling:

Further, the design that has been adopted for the study of the given topic is CONVENIENT

SAMPLING.

The following is the sample design that has been adopted for the study.

1. Population:- Finite(Patna)

2. Sampling Unit:- Areas of Patna

3. Sample size:- A total of 200 consumers and 204 retail outlets.


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Tools and techniques:

Primary Data: - Primary data was collected during the course of research period with

the help of the questionnaire that was designed for the consumers to collect the

information that was required to carry out the research. Personal interview were

conducted with the retailers to ascertain major competitor in the market.

Secondary Data: - Secondary data was collected from books, articles, Internet and

previous research papers that had been conducted by the company representatives and

officials.

Instrument:

Questionnaire for consumers

Personal Interviews with retailers

Tools and techniques of Analysis

Simple statistical tools and techniques like average, frequency, tables and graphs, were used.


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DATA ANALYSIS


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Data Analysis:

Visibility of other FMCG products in different outlets:

VISIBILITY OF FMCG

PRODUCTSNO OF OUTLETS %

VISIBLE 174 85

NOT VISIBLE 30 15

TOTAL 204 100

ANALYSIS BASED ON VISIBILITY

0

50

100

150

200

250

VISIBLE NOT VISIBLE TOTAL

NO OF OUTLETS

%


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The above chart shows that from 204 retailers it is observed that ITC products are visible in 174

shops & 30 shops do not have ITC products.

So this indicates that ITC has high visibility.

Absence of ITC brands in shops shows that this patch of outlets is lacking distributors attention,

brand awareness among retailers or consumers.

Knowledge about ITC FMCG products

Knowledge about ITC FMCG productsNo of

Retailers %

YES 190 93.13

NO 14 6.86

0

20

40

60

80

100

120

140

160

180

200

YES NO

No of Retailers

%


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As seen above in the graph approximately 94% of retailers have knowledge of ITC FMCG

products. This indicates high level of awareness among retailers regarding ITC FMCG products.

Aggressive advertising will increase ITC Sales

Aggressive advertising will increase ITC Sales

No of Retailers %

Yes 200 98.00%

0

50

100

150

200

250

No of Retailers %

Yes

No


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No 4 1.96%

As seen in the above graph approximately 98% of retailers feel that aggressive advertising will

increase sale of ITC FMCG products. This indicates high need of aggressive advertising for ITC

FMCG products.

Analysis on the basis of Customer responds

Knowledge about ITC FMCG products

No of

Customers %

YES 172 91

NO 28 9


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As seen above in the graph approximately 91% of customers have knowledge of ITC FMCG

products. This show high level of awareness among customers regarding ITC FMCG products

YES

NO

Frequently use of any ITC FMCG products No of Customers %

Every day 128 64

Once a week 47 23.50Once a month 21 10.50

Rarely 4 2


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As seen above in the graph approximately 64% of consumers use everyday ITC FMCG products.

This show how ITC FMCG products have in great demand between the consumers.

Likeness of ITC FMCG products as compare

to other brands(like HUL, P&G, dabur etc)

No of

Customers %

Much Better 42 21

Better 67 33.50

Same 81 40.50

Worse 10 05

0

20

40

60

80

100

120

140

Every Day Once a Week Once a Month Rarely


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As seen above in the graph customers like ITC products. Approximately 34% of customer thinks

ITC is a better product which indicates a good market of ITC products.

0

10

20

30

40

50

60

70

80

90

MuchBetter Better Same Worse

Satisfied with ITC FMCG products No of Customers %

Very Good 59 29.50

Good 72 36

Average 54 27

Bad 15 7.50


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As seen above in the graph approximately 30% of customers are very satisfied with ITC FMCG

products. This indicates high satisfaction level among customers regarding ITC FMCG products

Visibility of product enhance the purchase No of Customers %

Agree 141 70.50

Disagree 59 29.50

0

10

20

30

40

50

60

70

80

Very Good Good Average Bad


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As seen above in the graph approximately 71% of customers agree that the more visibility of

products enhance them to purchase the products.

Visibility of product enhance the purchase No of Customers %

HUL 72 36

ITC 58 29

P&G 45 22.50

Others 25 12.50

Agree

Disagree


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As seen in the graph, the visibility of ITC is 29% as compare to other brands which is not bad if

we compare to big competitors like HUL, P&G etc.

Some consumer details

0

10

20

30

40

50

60

70

80

HUL ITC P&G Others

Visibility

Visibility


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Age groupFrequency Percent

15 to 25 35 17.5

25 to 35 54 27.0

35 to 45 62 31.0

45 to 55 29 14.5

more than55

20 10.0

Total 200 100.0

As seen in the graph above maximum respondents are in the age group of 25 to 45 years.

0

10

20

30

40

50

60

70

15-20 25-35 35-45 45-55 More than 55

Age

Age


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Frequency Percent

less than100000

6 3.0

100000 to200000

40 20.0

200000 to500000

125 62.5

more than500000

29 14.5

Total 200 100.0

As seen above maximum respondents are in the income group of Rs 200000 to 500000

0

20

40

60

80

100

120

140

less than

100000

100000 to

200000

200000 to

500000

more than

500k

Family Income Per Annum

Family Income Per Annum


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Data on the factors which Consumers consider while choosing a FMCG

product

parameter Frequency Percent

low imp 2 1.0

Neutral 17 8.5Imp 53 26.5

very imp 128 64.0

Total 200 100.0

As seen in the graph above 64% of respondents rated quality as a very important attribute while

choosing a FMCG product

0

20

40

60

80

100

120

140

low imp neutral imp very imp

Quality

Quality


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Parameter Frequency Percent

low imp 19 9.5

Neutral 23 11.5

Imp 53 26.5

very imp 105 52.5

Total 200 100.0

As seen in the graph above, approximately 53% respondents rated Brand name as a very

important factor while choosing a FMCG product.

0

20

40

60

80

100

120


Brand

Brand


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no imp 5 2.5

low imp 32 16.0

Neutral 44 22.0

Imp 95 47.5

very imp 24 12.0

Total 200 100.0

As seen in the graph above, approximately 48% respondents rated Discounts as an important

factor while choosing a product.

0

10

20

30

40

50

60

70

8090

100

no imp low imp neutral imp very imp

Discounts

Discounts


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no imp 11 5.5

low imp 22 11.0

Neutral 49 24.5

Imp 106 53.0

very imp 12 6.0

Total 200 100.0

As seen in the graph above, approximately 53% respondents rated Promotional Schemes as an


0

20

40

60

80

100

120


Promotional Schemes

Promotional Schemes


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no imp 8 4.0

low imp 13 6.5

Neutral 48 24.0

Imp 79 39.5

very imp 52 26.0

Total 200 100.0

As seen in the graph above, approximately 40% respondents rated Shopping Convenience as an


0

10

20

30

40

50

60

70

80


Shopping Convience

Shopping Convience


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no imp 11 5.5

low imp 21 10.5

Neutral 46 23.0

Imp 99 49.5

very imp 23 11.5

Total 200 100.0

As seen in the graph above 50% respondents rated Price as an important factor while choosing a

FMCG product.

0

5

10

15

20

25

30

35

4045

50


Price

Price


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As seen in the graph above, approximately 50% respondents rated Performance as a very


0

20

40

60

80

100

120


Performance


low imp 4 2.0

Neutral 2 1.0

Imp 84 42.0

very imp 110 55.0

Total 200 100.0


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Data on the factors which influence the consumer most on your buying of a

particular product

As seen in the graph above, approximately

36% respondents agreed that Word of Mouth influenced their buying of products.

0

20

40

60

80

100

120

140

160

Strongly

disagree

Disagree Neutral Agree Strongly agree

word of mouth

Television AD

Newspaper

Internet

family/Friends

Package Design

Parameter

Word of

mouth

TV ads Newspap

er Internet

Family/f

riends

Package

design

Strongly

disagree 26 6 7 65 12 2

disagree 57 51 93 80 44 23

neutral 44 18 30 15 13 2

agree 71 124 68 30 109 145

Strongly agree 2 1 2 4 22 3


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62% respondents agreed that TV Ads influenced their buying of other FMCG product.

47% respondents disagreed that Newspaper/Magazines influenced their buying of other

FMCG product.

44% respondents disagreed that Internet influenced their buying of other FMCG product

55% respondents agreed that Family/Friends influenced their buying of other FMCG

product.

73% respondents agreed that Package Design influenced their buying of other FMCG

product.


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Does unavailability affects purchase


Yes 127 63.5

No 73 36.5

Total 200 100.0

As seen in the above graph 63.5% respondents admitted that unavailability of their product

affects purchase, while 36.5% consumers responded that it doesnt.

Yes

No


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Interest in buying new products


not at allinterested

17 8.5

not interested 25 12.5

neutral 33 16.5

interested 82 41.0

very interested 43 21.5Total 200 100.0

As seen in the graph above, approximately 41% respondents were interested in buying a new

product.

0

10

20

30

40

50

60

70

80

90

Not at all

interested

not interested neutral interested very interested


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Important factors

OUTLET COVERAGE:

Salesmen are covering the whole Patna city

In internal areas especially in the city, FMCG products are performing well.

VISIBILITY OF BINGO:

After covering 10 outlets everyday with the DS, it is found that at more than 7 outlets,

BINGO is visible in all regions.

Less visibility of BINGO at Raja bazar region.

BINGO is visible at more than 3/5 outlets of the total outlets in Patna.

5 Rs. Pack is mostly visible.

TEDE MEDE is considered the most favored category among all.

Stands are not clean & other brand of product in the racks or stand.

VISIBILITY OF CANDY MAN:

Out of 10 outlets it is found that at more than 8 outlets, CANDY MAN is visible in all

areas.


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Again less visibility in Raja bazar region.

CANDY MAN is visible at more than 3.5/5 outlets of the total outlets in Patna.

VISIBILITY OF MANGALDEEP AGARWATTI:

After covering 10 outlets it is found that at more than 5outlets, MANGAL DEEP is

visible.

MANGALDEEP is visible at more than 2.5/5 outlets of the total outlets in Patna.

VISIBILITY OF SUN FEAST:

After covering 10 outlets it is found that at more than 6 outlets, SUN FEAST is visible.

SUN FEAST is visible at more than 3/5 outlets of the total outlets in Patna.

VISIBILITY OF AIM:

After covering 10 outlets it is found that at more than 9 outlets, AIM is visible.

AIM is visible at more than 4.5/5 outlets of the total outlets in Patna.

VISIBILITY OF MINTO-FRESH:

Out of 10 outlets it is found that at more than 7 outlets, MINTO-FRESH is visible in all

areas.

Less visibility in Khaughal region.


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MINTO-FRESH is visible at more than 3.5/5 outlets of the total outlets in Patna.

VISIBILITY OF SUPERIA:

Out of 10 outlets it is found that at more than 4 outlets, SUPERIA is visible in all areas.

Less visibility in Kankarbagh region.

SUPERIA is visible at more than 2/5 outlets of the total outlets in Patna.


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Limitations

The time period for the study was not enough for such a vast topic.

It was difficult for the storekeepers to pinpoint the sales of a particular brand in retail

stores

No proper data was available about the stores in the city.

As the nature of research was exploratory so it was difficult to cover each and every

retailer.

Many retailers dont express their original perception and views because of biasness.

Certain open ended questions were not answered with justice.


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Findings & Analysis

The survey was done in all the major area of Patna zone to driving the visibility of other FMCG

products in convenience outlets. The area is divided in five parts PTC, Kankarbagh, Raja bazar,

Khaugal, Patna city. Some of the products which is visible in convenience outlets are Bingo,

Candy man, Mangaldeep, Sun feast, Aim, Minto-fresh and Superia. Data was collected through

visiting and surveying around 200 outlets serviced by ITC Patna.

Following are the Findings of distribution Network

I. To check the visibility of other FMCG products at retail outlet. While doing this, I understood

about distribution and stocking process at WD (Wholesale Distributor) point is as follows:

a) Ordering process

b) Billing process.

c) Delivery process.

From the above research and operation, Retailers and distributors point of view was cleared.

I also find that:-

Sometimes due to unavailability of ITC products, retailer sells another brand to customer

Daily salesman doesnt visit on date or time to the outlets.


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In the duration of my project I use to visit the market daily with DS (distributor salesmen) and

analyze the market of ITC FMCG products in convenience outlets. ITC & other companies

provide same margin to retailer.

The margin is provided on the base of amount of supply to retailer.


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Conclusion

ITC is one of the reputed companies amongst various FMCG Industry. ITC is having different

product with its various product line. ITC has acquired a big share of market in India because of

its competitive pricing, distribution system and through good customer relation.

From my side of survey, I have concluded that:-

Good channel of distribution system of ITC helps in the availability of products in the

market.

Visibility of ITC products is good in the market, but companies have to focus more

on this by comparing their competitors.

ITC have good position in the market as compare to other competitors.

ITC have large product line and their distribution in Patna zone is very good.

Marketing materials (like posters, displays etc...) is not distributed properly to the

retailers.

Some of the retailers are not working their labor best for increasing the revenue of the

company

Supervisors of distribution point not focus properly on retailers problem.


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Recommendations

Even as visibility and availability of other FMCG ITC products is 84% we should strive

for more penetration among the consumers.

Analyzing and identifying major competitors. Keeping a tab on their strengths and

weakness and accordingly preparing own strategy.

Increasing awareness for product among the consumers and retailers.

Efficient marketing of products to retailers.

Increasing the efficiency of distribution system.

Sell Out space can be increased to increase the awareness among the consumers.

Sponsorships to local events would be an efficient marketing technique.

Van promotions

Tie up with regional/local newspapers running competitions at the time of festive season.

Giving occasional discounts

Introduction of promotional schemes.

Example: Promotional schemes such as buy fairness cream and get a soap for free

Availability of products in all the retail outlets to ensure penetration and also giving

importance to convenience of the consumer.

Package design should be made as attractive as possible.

Wooing youngsters with attractive packaging.

Appropriate pricing of the product so as to serve our target market. The company should

try to create not only brand awareness but also an interest among the target group to use

the product and feel the effect.


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Bibliography

Books:-

V S Ramaswamy, Marketing Management: Global Perspective Indian Context (-4th

Edition)

Philip kotler and Gray Armstrong,Principles of Marketing(12th Edition)

Rajan sexana,Marketing Management(3rd Edition), TMH publication

Dr S.P.Gupta, Statistical Methods(31st Edition), Sultan chand & sons, educational

publishers, New Delhi

Rajagopal ,Marketing Management, Vikas Publication

Websites

www.itcportal.com wikipedia.org/wiki/ITC Limited

www.indianindustryprofiles.com

www.researchandmarkets.com

www.indiaretailing.com

Search Engine

www.google.com
http://www.itcportal.com/http://www.indianindustryprofiles.com/http://www.indianindustryprofiles.com/http://www.researchandmarkets.com/http://www.researchandmarkets.com/http://www.indiaretailing.com/http://www.indiaretailing.com/http://www.google.com/http://www.google.com/http://www.google.com/http://www.indiaretailing.com/http://www.researchandmarkets.com/http://www.indianindustryprofiles.com/http://www.itcportal.com/


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Appendix

Questionnaire

1. Personal Details:

Age: -

15 to 2525 to 35

35 to 45

45 to 55

Above 55

Gender: -

MaleFemale

Family Income per annum:-

Less than 100,000

100,000 to 200,000

200,000 to 500,000

More than 500,000

2. Have you heard of ITC FMCG products?

Yes

No


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3. How frequently do you use ITC product?

Every Day

Once a Week

Once a Month

Rarely

4. Compare to other brands (like HUL, P&G, Dabur , Amul etc), how much

you like ITC products?

Much Better

Better

Same

Worse

5. How much are you satisfied with ITC FMCG products?

Very Good

Good

Average

Worse

6. Does more visibility of the product of enhance your purchase?

Agree

Disagree


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7. In your view which brand have more visibility in outlets?

HUL

ITC

P&G

Others

8. Rate the importance of the following factors while choosing a FMCG product

Particulars Noimportance

Lowimportance

Neutral Mediumimportance

Highimportanc

Quality

Recognized brand name

Discounts

Schemes

Shopping conveniencePrice

Performance

9. Other than the product, which of the following would influence the most on

your buying of a particular product, mark on the scale of 1 to 5 where

1: strongly disagree, 2: disagree, 3: neutral, 4: agree, 5: strongly agree

Particulars StronglyDisagree

Disagree Neutral Agree StronglyAgree

Word of mouth

Television Ad

Newspaper


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Internet

Family/Friends

Package Design

10.Does unavailability of the product of your choice affect your purchase?

Agree

Disagree

11.If a new product with similar attributes as of the product of your choice is

launched, rate your interest in buying that product?Not at all interested

Not interested

Neutral

Interested

Very interested

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