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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
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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/India7/29/2019 projectonITC.docx Ankit Tripathi (Apeejay G NOIGA)
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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/7/29/2019 projectonITC.docx Ankit Tripathi (Apeejay G NOIGA)
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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.
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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 .
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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
low imp neutral imp very imp
Brand
Brand
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Parameter Frequency Percent
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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Parameter Frequency Percent
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
important factor while choosing a FMCG product.
0
20
40
60
80
100
120
no imp low imp neutral imp very imp
Promotional Schemes
Promotional Schemes
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Parameter Frequency Percent
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
important factor while choosing a FMCG product.
0
10
20
30
40
50
60
70
80
no imp low imp neutral imp very imp
Shopping Convience
Shopping Convience
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Parameter Frequency Percent
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
no imp low imp neutral imp very imp
Price
Price
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As seen in the graph above, approximately 50% respondents rated Performance as a very
important factor while choosing a FMCG product.
0
20
40
60
80
100
120
low imp neutral imp very imp
Performance
Parameter Frequency Percent
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
Parameter Frequency Percent
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
Parameter Frequency Percent
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/7/29/2019 projectonITC.docx Ankit Tripathi (Apeejay G NOIGA)
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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