summer project(itc)kaushik
TRANSCRIPT
An itc [Type text]
May and June, 2010
Submitted to: Submitted by:
Mr. Aarvind Upadhyay Kaushik banerjee
Area Manager PGDM Sem -2
ITC Limited (Kanpur) IPM (Meerut)
INSTITUTE OF PRODUCTIVITY & MANAGEMENT {MEERUT}
A project report on
ITC
COMPETITION PAID PRACTICES WITH REFERENCE TO THE LOYALTY OUTLETS VIJETA STORE ,PERFECT STORE, INDIA OUTLET ,STAR OUTLET AND ITC PERSONAL CARE PRODUCTS PERFORMANCE AT THESE OUTLET .
Content
Chapter 1
Acknowledgement.
Preface.
Introduction: FMCG and product characteristics.
Industry segment.
Project description.
Chapter 2
Company profile.
History, Evolution and overview.
ITC Mission, Vision and core values.
Business portfolio.
Marketing & Pricing strategy.
ITC working structure.
Working of a branch.
GR1, 2, 3 & 4.
Distribution channel.
Market share of all FMCG by ITC .
Chapter 3
Major players.
Competitor’s analysis.
Project objective.
Methodology.
Brand wise categorization.
Chapter 4
Data sheet.
Data analysis.
Chapter 5
Finding and evaluation.
SWOT analysis.
BCG matrix.
Chapter 6
Suggestions and recommendations.
Learning from the project.
Limitations and bibliography.
ACKNOWLEDGEMENT
Before starting a reach out to the innards of the project work, as a part of my
Appreciativeness-interlaid, I would like to highlight the names of certain
people, who not only lent a helping hand in attaining a plurality of practical
exposure, but bailed me out of hardship as and when I encountered it.
I would like to thank Mr. Aarvind upadhyay area manager (Kanpur) ITC
Limited, Lucknow for explaining me each and every aspect of Marketing
Research in a lucid and practical way and for giving me the opportunity to
work on this project.
I am also thankful to Mr.Amit srivastava and Mr. Shrijeet paul area
executive (Kanpur) ITC Lucknow and to Mr. Kunal sahu for making me
aware regarding the field and helping me to complete this summer training
project.
I fell highly delighted in mentioning the name of my friends and last but not
the least thanking to my parents for providing me the entire emotional and-
moral backup without support and encouragement of them this project
would have not been completed.
I hope that the project would be a great event to boost the hierarchy of my
academic career.
PREFACE
Research is the feedback, which any organization sought for the purpose of
effective policy making. It is the systematic problem Analysis, model building
and fact finding for the purpose of important decision -making and control in
the marketing of all goods and services.
Every research is aimed to achieve certain solution to research problems .If
there is no problem then, the meaning of the research becomes vague. The
research problem that I was supposed to deal with was, brand wise
comparison of personal care products and their loyalty schemes given by the
companies in Kanpur market. The study was done on the basis of parameter
like price paid for annual the display, service, and promotional schemes etc.
The different comparative companies of personal care products were
Hindustan unilever, P&G, Marico, Dabur .The sample unit was the retailer of
Kanpur.
With a well define research problem, a study was started two ascertain the
variations and conditions of the existing sales of personal care products.
The overall objective of the study was to analyze the annual display outlets
of the company and judge is it a wrong or a write outlet for display.
Introduction –FMCG
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 of consumer non durable products (CND) and
caters to the everyday needs of the people.
Exports
India is one of the world’s largest producer for a FMCG products but its FMCG
exports are languishing at around 1,000 crore only. There is noteworthy
potential for increasing exports but there are certain factors inhibiting this,
Small-scale sector reservations bound ability to invest in expertise and
quality up gradation 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 FMCG sector generally have 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, Godrej
soaps, Colgate-Palmolive, Marico, Dabur, Proctor and gamble.
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The premium segment caters mainly to urban high class and upper middle
class, and is more brand conscious and less price sensitive. The popular
segment caters to mass segments in urban and rural markets; prices here
are around 40% of the premium segment prices.
Growth
With the increase in rural income and improvement in distribution network
(i.e. road development projects), the penetration levels are set to increase.
Since the consumption level in urban areas is already high in most of the
categories, the growth can come only from deeper penetration and higher
consumption in rural areas. In the year 2005-06, the sector witnessed
growth because of the increase in consumer demand from urban and rural
areas. In addition to demand, prices also went up. Also, with the increase in
disposable income, some consumers have moved up in the value chain.
The growth for FMCG products in February 2006 was the highest in 5 years,
on YoY (year over year) basis.
Prospects
The proportion of the consuming class to total households will touch 46%
by FY07 from 17.4% in FY95, estimated by National Council for Applied
Economic Research (NCAER). As the native companies are expanding in
international market, the MNC subsidiaries are looking for greater leverage
of the parent strengths. Also, big MNCs cannot afford to avoid India
because of its potential market
Personal Care Sector in (India)
Increase in per capita income and heightened awareness of personal
appearances; have fuelled the demand for personal care products in India
and today this sector has emerged as one of the fastest growing markets in
the country. Keeping this in mind, we have released an industry Profile on
Personal Care Sector in India. This well researched document is presented in
a series of 105 slides in PDF format, with data tables, and graphs. This profile
has been prepared through extensive secondary and internet research.
This profile will help in providing basic information about the industry to
foreign companies planning to enter the Indian market or existing companies
(foreign / Indian) expand their business in India, companies planning to set
up manufacturing units and companies strategising to increase their market
share, etc. The profile will also be of value to consultants, analysts, market
research organizations and corporate advisors.
Profile on Personal Care Sector in India helps to gain an insight into the
evolution of the industry and competitive dynamics prevalent in the market.
It discusses the recent developments in the industry and analyzes the key
trends and issues.
Personal care (Global view)
The personal care industry had an excellent growth rate in all the major
markets of the world in 2005-2006. Since the past few years, people have
become more conscious about their appearance and look, leading to a huge
demand for these products in the whole world. New products are launched
by the leading brands to attract consumers. The trends in all the leading
personal care markets show that this industry is showing a massive potential
for growth. The women’s beauty industry is growing at rate of approximately
USD 202.254 billion every year where as the global market for cosmetics
alone USD 30.33 billion. The global personal care products industry is
growing at a very rapid pace; some of the factors responsible are:
Rise in consumer spending power,
Increased demand due to people consciousness,
Key demographic factors,
Entry of herbal and organic products,
Lifestyle and climactic changes, and
Massive advertising and promotiom strategy
FutureProspects
The future for the personal care products industry is very prosperous,
which can be analyzed by the rising growth trends of the industry. But
there are many concerns related to the chemicals and toxins used as
ingredients for making personal care products. These substances can
affect our health and the environment also. They are absorbed through
our skin and can enter our bloodstream thereby affecting our kidney and
liver, and thus can have very harmful effects on our bodies and when
these products are washed off from the body, they are released in to the
environment.
Many companies are addressing these problems and are shifting their
focus to the natural and organic products. These products are beneficial to
our health as well as environment, because very less quantity of synthetic
compounds and toxic elements are used in these products. In most of the
countries the demand for organic products has been rising steadily.
According to a study conducted by the Natural Personal Care Consumers:
Unlocking Future Potential, the organic products market in UK alone will
rise from USD 18.19 million in 2007 to USD 24.26 million in the year 2011.
Organic and natural personal care products industry has profited much
from the growing consumer awareness and their changing lifestyles.
These developments have also helped in introduction of a lot of organic
products in the market. Despite many sectors showing signs of maturation
in the key, developed markets, innovation remains high and while
economic prosperity continues many consumers are proving willing to
make the trade up, signaling a positive future for value sales.
Household care:
Fabric wash (Laundry soaps and synthetic detergents);household cleaners
( dish/utensils cleaners, floor cleaners, toilet cleaners, air fresheners,
insecticides and mosquito repellants, metal polishes and furniture polish).
Major companies active in this segment include Hindustan uni lever, Nirma
and Reckitt & Colman.
Branded and packaged Food and Beverages:
Health beverages; soft drinks; staples; bakery products (biscuit, cakes and
bread); snack food; chocolate; ice cream; tea coffee; processed fruits,
vegetables and meat; dairy products; bottled water; branded flour;
branded rice; branded sugar; juices.
Major companies active in this segment are Hindustan unilevewr, Nestle,
Cadbury and Dabur.
Spirits and Tobaccos:
Major companies active in this segment are ITC, Godfrey Phillips, UB and
Shaw Wallace.
Project Description
There is a strong MNC presence in the Indian FMCG market. 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 of consumer non durable products (CND) and caters to
the everyday needs of the populace.
The project will study competition paid practices with reference to the loyalty
outlets Vijeta store, Perfect store, India outlet and Star outlet and an ITC PCP
performance at these outlets. The project duration is of 8 weeks from 20 th
April to 20th June.
The whole Kanpur area and all the three WD points (B.R Sons, STC and Shree
Traders) areas have been visited for study.
A detailed study and research work will be done by collecting and analyzing
the primary data obtained from PAMS division from various retail amass.
Company Profile
ITC is one of India's foremost private sector companies with a market
capitalisation of over US $ 22 billion and a turnover of over US $ 5 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 BusinessWorld 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 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.
As one of India's most valuable and respected corporations, ITC is widely
perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls
this source of inspiration "a commitment beyond the market". In his own
words: "ITC believes that its aspiration to create enduring value for the
nation provides the motive force to sustain growing shareholder value. ITC
practices this philosophy by not only driving each of its businesses towards
international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a
part."
ITC's diversified status originates from its corporate strategy aimed at
creating multiple drivers of growth anchored on its time-tested core
competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged service
skills in hoteliering. Over time, the strategic forays into new businesses are
expected to garner a significant share of these emerging high-growth
markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products.
ITC is one of the country's biggest foreign exchange earners (US $ 3.2
billion in the last decade). The Company's 'e-Choupal' initiative is enabling
Indian agriculture significantly enhance its competitiveness by empowering
Indian farmers through the power of the Internet. This transformational
strategy, which has already become the subject matter of a case study at
Harvard Business School, is expected to progressively create for ITC a huge
rural distribution infrastructure, significantly enhancing the Company's
marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd,
provides IT services and solutions to leading global customers. ITC Infotech
has carved a niche for itself by addressing customer challenges through
innovative IT solutions.
ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily seek
a corporate governance rating.
ITC employs over 26,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating
capabilities in a globalising environment to consistently reward more than
3,42,000 shareholders, fulfill the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring
Value. For the nation. For the Shareholder."
History Evolution and Overview
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively
Indianised, the name of the Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in
1970 and then 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-business, Foods, Lifestyle Retailing,
Education & Stationery and Personal Care - the full stops in the Company's
name were removed effective September 18, 2001. The Company now
stands rechristened 'ITC Limited'.
The Company’s beginnings were humble. 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. This decision of the Company was historic in more
ways than one. It was to mark the beginning of a long and eventful journey
into India's future. The Company's headquarter building, 'Virginia House',
which came up on that plot of land two years later, would go on to become
one of Kolkata's most venerated landmarks.
Though the first six decades of the Company's existence were primarily
devoted to the growth and consolidation of the Cigarettes and Leaf
Tobacco businesses, the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life of the
Company.
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'. The objective of ITC's entry into the hotels business was rooted in
the concept of creating value for the nation. ITC chose the hotels business
for its potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large scale direct and indirect employment.
Since then ITC's Hotels business has grown to occupy a position of
leadership, with over 100 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. Bhadrachalam Paperboards amalgamated with the Company
effective March 13, 2002 and became a Division of the Company,
Bhadrachalam Paperboards Division. In November 2002, this division merged
with the Company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology, productivity,
quality and manufacturing processes are comparable to the best in the
world. It has also made an immense contribution to the development of
Sarapaka, an economically backward area in the state of Andhra Pradesh. It
is directly involved in education, environmental protection and community
development. In 2004, ITC acquired the paperboard manufacturing facility of
BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The
Kovai Unit allows ITC to improve customer service with reduced lead time
and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British
joint venture. Since inception, its shares have been held by ITC, British
American Tobacco and various independent shareholders in Nepal. 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. The merged entity was named the Tribeni Tissues Division (TTD).
To harness strategic and operational synergies, TTD was merged with the
Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
Also 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.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products
business with the launch of Expressions range of greeting cards. A line of
premium range of notebooks under brand “Paperkraft” was launched in
2002. To augment its offering and to reach a wider student population, the
popular range of notebooks was launched under brand “Classmate”in
2003. “Classmate” over the years has grown to become India’s largest
notebook brandand has also increased its portfolio to occupy a greater
share of the school bag. Years 2007- 2009 saw the launch of Children Books,
Slam Books, Geometry Boxes, Pens and Pencils under
the “Classmate” brand. In 2008, ITC repositioned the business as the
Education and Stationery Products Business and launched India's first
environment friendly premium business paper under
the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the
premium executive stationery and office consumables segment. Paperkraft
entered new categories in the office consumable segment with the launch of
Textliners, Permanent Ink Markers and White Board Markers in 2009.
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 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. To mark the occasion,
ITC launched a special 'Celebration Series', taking the event forward to
consumers.
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. Today ITC Infotech is one of India’s
fastest growing global IT and IT-enabled services companies and has
established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across key
focus verticals - Manufacturing, BFSI (Banking, Financial Services &
Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and Media & Entertainment.
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-
oand 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 eight years, the Foods business has grown to a
significant size with over 200 differentiated products under six distinctive
brands, with an enviable distribution reach, a rapidly growing market share
and a solid market standing.
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's foray 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.
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.
Mission, Vision and Core Values
Business Portfolio
Marketing and Pricing Strategy
ITC Working Structure
ITC Working Of a Branch
BRANCH MANAGER
ASSITANT MANAGER ASSITANT MANAGER
ASSITANT MANAGER
{GR2} {GR1/3} {GR4}
PAMS FOOD/BINGO
CIGRATTE
AREA MANAGER AREA MANAGER AREA
MANAGER
AREA EXICUTIVE/ AREA EXICUTIVE /
AREA EXICUTIVE/
SALES TRANIEE SALES TRANIEE SALES
TRANIEE
GR 1, 2, 3 and 4.
GR 1 / GR 3 GR 2 GR 4
Food and Bingo PAMS Cigarettes
Biscuits Shampoos Cigerattes
Confectioneries Toilet soap Match box[
Pasta Shower gel -
Salt Agarbatti -
Snacks Dhoops -
Masalas - -
Candy - -
Bingo - -
Atta - -
Distribution Channel
(SUPPLY CHAIN)
FACTORY/HUB
K0 K2
Wholesale service provider
(wsp)
K1
K3
wholesale dealer(wd)
K4
Wholesalers’ (wd) Retail Stockiest (sip)
K0 - factory to market.
K1 – factory to wd.
K2 – factory to wsp.
K3 – wsp to wd.
K4 – wd to market.
Market Share of all FMCG
Now ITC do not produce greeting cards.
Major Players
Among the major players Hindustan unilever has the strong presence
in the food, personal care and the household care (detergents) sectors; ITC is
the market leader in cigarettes; Nirma has a strong presence in the
detergent market; Nestle and Britannia are active in the food sector and
Colgate has a strong presence in the oral care sector.
Competitor’s analysis
Vijeta outlet: These outlets are mainly the whole sale outlets the term
Vijeta is defined by Hindustan unilever as a part of their loyalty scheme.
There are three main categories in this segment:
1) Silver.
2) Gold.
3) Platinum.
*Servicing norms – daily.
Selection criteria
1) Silver is selected on a minimum sale of Rs 75,000 per month.
2) Gold is selected on a sale of Rs 75,000 plus per month.
3) Platinum is selected on a minimum sale of Rs 1,50,000 per month.
Location of main vijeta stores in Kanpur.
1) Gp lane.
2) Masale wali gali.
3) Nayaganj.
4) Visati bazaar.
*There are 112 vijeta stores in Kanpur.
Super value stores: These are the major retail outlets of Hindustan
unilever these retail outlets contribute a major part in sales of Hindustan
unilever. HUL earlier used to pay 3.5% for the display but these days they
pay a fixed rent on their display and the rent is calculated on average basis
and sales at these outlets.
*Servicing norms – 2 days in a week 1 day dets and 1 day cosmetics.
Profit margin – Dets (Soaps and detergents) - 8%.
Cosmetics (Shampoo, oral , skin and hair) – 10%.
Selection criteria
1) On sales of Rs 80,000 to 1,00,000.
2) Location of the store.
3) On footfall.
Location of main super value stores in Kanpur
1) Rakesh Lalbangla.
2) Hazari Naveen market.
3) Kholi Naveen market.
4) Bhatia Shastri nagar.
5) Ramesh Kumar Aryaganj.
*There were earlier 160 svs but now there are only 5 stores.
Perfect stores: This is a new concept brought in by Hindustan unilever here
they are changing their old super value store to a newly called concept
Perfect store. Project ‘perfect stores’ is the world’s biggest consumer
connects initiative in Unilever family to raise falling market share of the
Indian arm. These ``perfect stores’’ are standardized ones with set plans for
fixtures and products and display. HUL’s experience shows a neat
segmented arranging of similar products helps boost sales 30% of a store
since 70% of purchase decisions are made on the spot.
Three basic fundamentals of ‘Perfect Store’
1) Visibility.
2) Assortment.
3) Cleanliness.
Selection criteria
1) On sales of Rs 80,000 to 1,00,000.
2) Location of the store.
3) On footfall.
*There are 160 perfect stores in Kanpur.
India outlet: These are the major retail outlets of Procter and Gamble and
these outlets contribute the major part of sales of the company. These
outlets are the class A outlet of the company earlier these outlets were
called Platinum outlets.
There are three main categories in this segment:
1) Mass.
2) Open trade (OT).
3) Wholesale.
Selection criteria
1) Mass on sale of Rs 1,00,000.
2) Open trade (OT) on sale of Rs 5,000 to 7,000.
3) Wholesale on sale of Rs 1,00,000 to 1,50,000.
Star store: These outlets are basically the mom and pop stores rural stores.
These outlets are generally located in rural areas and the Procter and
Gamble tries to focus their rural areas from here.
Selection criteria
1) Location of the store.
2) On footfall.
Objective of the Project
All companies are having their own planning and business strategies but the
company who is having the best, is the most successful company among its
competitors. So the company can easily get success among its competitors
by applying best effective marketing strategies.
The main objective of the study is:-
Competition paid practices with reference to the loyalty outlets Vijeta
store, Perfect store, India outlet and Star outlet.
To know the impact of retail visibility on customers ultimate purchase
intention.
Understanding about the function of merchandising system, visual
merchandising and display.
To find out the problems faced by different (wd) points in selecting
right annual display points.
An ITC PCP performance at these outlets.
Methodology
A research design is the arrangement of condition for collection and analysis
of data in a manner that aims to combine relevance to the research purpose
with economy in procedure. A good design is often characterized by
adjectives like flexible, appropriate, efficient, and economical and so on. The
design appropriate for this research is DISCRIPTIVE RESEARCH WITH A
HELP OF A SCHEDULE. Descriptive research includes surveys, fact-findings
enquiries of different kinds. The major purpose of this research is description
of the state of affairs, as it exists at present. The main character of this
method is that the researcher has no control over the variables
CLASSIFICATION OF DATA:
I have classified the data into two specific types:
Primary source:
1. Interview.
2. Filling up of schedule.
3. Observation.
4. Verbal communication.
Secondary source:
1. Internet.
2. Magazines.
Sample size:
The sample size for retailers is 200.
Period of study:
The study is carried out for a period of 60 days. It commenced on 20th April
2010 and completed on 20th June 2010.
Field area:
This research study work was carried out in Kanpur Uttar Pradesh.
Focused brand:
Fiama di wills.
Vivel di wills.
Vivel.
Superia.
Brand wise categorization
Shampoos
Premium segment.
Fiama di Wills (shampoo). Variants
Every day mild.
Aqua balance.
Volume boost.
Silky strong.
Shine in style.
Mid segment.
Vivel di wills (shampoo) ` Variants
Soft and fresh.
Shine and glow.
Volume and bounce.
Popular segment.
Superia (shampoo) Variants
Shiny black.
Vibrant green.
Maxi protect.
Shower gels
Fiama di wills (shower gel) Variants
Mild dew.
Exotic dream.
Clear spring.
Soaps
Premium segment.
Fiama di Wills (soaps) Variants
Mild dew.
Clear spring.
Upper mid segment.
Vivel di wills (soaps) Variants
Sheer radiance.
Sheer cream.
Mid segment.
Vivel (soaps) Variants
Young glow.
Sandal sparkle.
Auerveda essence.
Satin soft.
Popular segment.
Superia (soaps) Variants
Healthy glow.
Fragrant flower.
Natural glow.
Lemon fresh.
Soft sandal.
Data
Sheet
Data Analysis
Annual display outlets
1) From all 91 annual display outlets we have only 11 low profile outlets
which can be changed or mended.
a) Omkar genral store.
b) Mittal genral strore.
c) Maa pitambar genral store.
d) Deepu sales.
e) Sudhir store.
f) Virendra genral store.
g) Gupta fancy.
h) Sewa prov store.
i) Bhatia prov store.
j) Kishan lal prov store.
k) Priya medical.
2) We have an average height of 4.487 feet of our display windows from the
floor.
3) An average length and breadth of 2.7, 2.6 inches.
4) We are paying an average of Rs 665.87 to all these outlets.
5) Competition is having an average of 4 windows for pams at these outlets.
6) Competition is having an average space of 4.87sqft area for display at
these outlets.
7) Competition is paying an average sum of Rs 1786.669 to these outlets.
Vijeta stores.
1) Availability superia toilet soap in 112 Vijeta stores 633 CFC.
2) Availability superia shampoo 515 CFCin 112 Vijeta stores.
3) Availability Vivel toilet soap in 112 Vijeta stores is 193 CFC.
4) Availability of competition is 859 CFC in 112 Vijeta stores.
Finding and Evaluation
1) Payment scheme for the annual display outlets is not so attractive to the
retailers in comparison to other major FMCG companies.
2) No clear communication, retailers are not aware of the extra 4% discount
given to them for the display.
3) Displays not at hot spots.
4) No proper tracking on merchandising.
5) It was found that the low profile respondents wants fixed gift as a part of promotional schemes and high profile respondents want scratch cards, this motivates them more to sell any product.
6) Rate cutting being also a factor for low sales at different areas of Kanpur.
7) Communication gap between company and sales man.
Ie: Hindustan unilever directly reaches there salesman and educates them
about new offers and schemes but ITC does not do so. ITC only reaches to
(wd) and tells them about schemes and offers and (wd) manipulates the
information and then informs the salesman.
8) All display windows of Hindustan unilever in Kanpur are cancelled now due
to their structural change only windows at cosmetic stores are running.
SWOT Analysis
Strengths
ITC leveraged it traditional businesses to develop new brands for new
segments. For example, ITC used its experience of transporting and
distributing tobacco products to remote and distant parts of India to the
advantage of its FMCG products. ITC master chefs from its hotel chain are
often asked to develop new food concepts for its FMCG business.
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
The company's original business was traded in tobacco. ITC stands for
Imperial Tobacco Company of India Limited. It is interesting that a business
that is now so involved in branding continues to use its original name,
despite the negative connection of tobacco with poor health and premature
death.
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
subsidised by its tobacco operations. Its Gold Flake tobacco brand is the
largest FMCG brand in India - and this single brand alone hold 70% of the
tobacco market.
Opportunities
Core brands such as Aashirvaad, 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.
e-Choupal is a community of practice that links rural Indian farmers using
the Internet. This is an original and 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.
ITC leverages e-Choupal in a novel way. The company researched the tastes
of consumers in the North, West and East of India of atta (a popular type of
wheat flour), then used the network to source and create the raw materials
from farmers and then blend them for consumers under purposeful brand
names such as Aashirvaad Select in the Northern market, Aashirvaad MP
Chakki in the Western market and Aashirvaad in the Eastern market. This
concept is tremendously difficult for competitors to emulate.
Chairman Yogi Deveshwar's strategic vision is to turn his Indian
conglomerate into the country's premier FMCG business.
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. The
laws of economics dictate that if competitors see that there is a solid profit
to be made in an emerging consumer society that ultimately new products
and services will be made available. Western companies will see India as an
exciting opportunity for themselves to find new market segments for their
own offerings.
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.
BCG Matrix for ITC LTD
Suggestions
The company can introduce power points on the basis of these three
factors availability, cleanliness, visibility and sales . The company
should give them some gifts on collection of these points or these
points can also be redeemed by the retailers on time to time basis.
The company is right now offering 4% extra on windows to the retailers
instead of giving this offer the company should offer the retailer a
discount of 4%+2%+1% (cash discount).
Ie: 1000 *4%=40
40*2%=.8
And 1% cash discount can be given if the payment is delivered within
12 days of purchase.
The company should introduce targets for the retailers and they can be
paid accordingly.
The company can try to introduce SMS greeting system to make the
retailers aware about different schemes and offers and they can also
send them greetings on different occasions and festivals.
Learning from the project
1. All theories and concepts as studied till now got a practical application.
2. To get the best response the bar tenders retailers and the sales person
should be visited at the time which best suit them.
3. Never ever we should over-sale and under deliver. This is the worst
thing for a company because customer loses trust in the company if he
do not get what has been promised.
4. It helped me by polishing my communication skills and taught me how
to deal in the market.
5. As I was floated for the first time in the market, it shifted with
tremendous confidence inside me.
6. It did to same extent help in developing a better understanding
different marketing forgone.
7. It brings with in a sense of responsibility and passion to work for the
organization.
8. I had an opportunity to meet professionals placed very well in the
industry.
Limitations
Although every effort is made to make the report as accurate and
appropriate but yet it has some limitation because situation and
environment are not in control. The limitation of my study is:
The study is concentrated in Kanpur city only so the findings are
generalization for Kanpur only.
The study may be infested by the exaggeration of some respondents.
It is possible that some potential source might have remained
entrapped.
This study is limited to time, and is based on a study for 60day.
Sometimes some consumers were busy in personal life so could not
able to give time for interview and hence some of the datas may not
be exact.
Someone told me I have no time.
Bibliography
BOOKS:
Marketing Management- Kotler Philip
Marketing Research -Boyd
Research Methodology - C.R. Kothari
MAGAZINE:
Business today
WEBSITES:
www.google.com
www.itcportal.com