Final Project Itc

A PROJECT REPORT ON

“A STUDY OF MARKETING STRATEGIES OF ITC’S PRODUCTS: WITH SPECIAL REFERENCE TO BINGO”

for the partial fulfilment of Master of Business Administration under Biju Pattnaik University

of Technology, Rourkela.

In Guidance of:Internal Guide: external guide:

Prof. SWAPNA MENON Mr. ASHUTOSH KUMAR

(Faculty marketing) CITY MANAGER,

ITC LIMITED. NAGPUR

ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 1 of 53

Acknowledgement am grateful and obliged to Mr. Ashutosh Kumar ( CITY INCHARGE) ITC

LIMITED. NAGPUR, who took the pain to guide me and help me to conduct my

study on time.IMy sincere thanks go to Mr, Sushil Mr. Ritesh, Mr. Atul, of ITC LTD. Who guided

me time to time for completion of my project.

I am also highly obliged to Prof. Swapna Menon (Faculty Marketing, RIMS) for his

kind support and guidance given to me from time to time for the completion of my

project.

I am also immensely thankful to Rourkela Institute of management studies, which

has recommended me for doing the project in the reputed organization and

extremely inspiring to me. I feel deeply regards to my family members and faculty

members of RIMS, who gave me encouragement, which enabled me to reach at this

stage.

Finally I am thankful to them who have helped me directly or indirectly during the

period of project preparation.


http://www.itcportal.com/centenary/internet/index.html

Ranjit Kumar Agarwal

Declaration

, Ranjit kumar Agarwal, hereby declare that the dissertation entitled “A Study

of Marketing Strategies of ITC’s Products: with special Reference

to BINGO”, submitted by me in partial fulfilment of degree of master of

business administration, Rourkela Institute of Management studies, under Biju

Pattnaik University of Technology, is my own. This work has not been submitted to

any other university nor has been published ever before.

I

I would like to declare that the information provided in the project report is authentic

to best of my knowledge, as it has been obtained through market survey done

entirely by me and verified by the concerned authority.

Date: Ranjit Kumar Agarwal

Place: Rourkela Reg. No. 0906260100

Batch: 2009 – 2011ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 3 of 53

Guide Certificate

This is to certify that the project entitled “A Study of Marketing Strategies of

ITC’s Products: with special Reference to BINGO”, is a bona fide work done

by RANJIT KUMAR AGARWAL bearing Regd.No.0906260100 under my guidance

and supervision and no part of the report has been submitted for the award of any

other degree or published in any other form to the best of my knowledge and belief.

Prof. SWAPNA MENON

MARKETING FACULTY

ROURKELA INSTITUTE OF MANAGEMENT STUDIES,

(ROURKELA)


Company certificate


Prefacehis project work has been designed to get the total market scenario of ITC’s

Products.TThis is generally a study to know the marketing strategies of Bingo and its

competitors, and customers & retailers behaviour towards newly launched product.

The project work seeks to:

Analyse the success, marketability and future growth prospects of BINGO.

Study the spending habits and motivation of consumers for buying snacks.

Reaction of people towards new launches.

Customer behaviour towards various schemes offered by BINGO.

Retailer’s behaviour towards different snacks products.


Contents

Title Page No.

CHAPTER -1

Introduction……………….………………........Objective of Project…………………………….Industry Profile of Food Processing Industry………………………………………….

Indian Food Processing industry…….... Indian Snacks Industry: An Overview.... SWOT Analysis of Indian Snacks

Industry……………………………………

CHAPTER-2

Profile of the Company…………………….... Company Background………………….. Products………………………………….. Areas of diversification………………….. Culture…………………………………

ITC’s Vision……………………….. ITC’s Mission……………………… ITC’s Core values………………… ITC’s Philosophy………………….

CHAPTER-3

Literature Review……………………….

CHAPTER-4

Study of Selected Research Problem……… Statement of Research Problem……….. Statement of Research Objective………. Research Design & Methodology……….. Analysis of Data…………………………… Summary of Other Findings……………… Recommendation &Conclusion…………

APPENDIX………………………………………. Questionnaire Sample…………………… Bibliography………………………………..


Introductionn the project, the nature of research is exploratory research whereby the efforts

have been made by executing the research in various markets of Nagpur City,

Maharashtra (Pardi, Ravi Nagar, Kweta Colony, Bardi, Sadar, Kalamana Market).

A systematic as well as well – designed approach has been adopted while

conducting research about market characteristics of telecom industry.

IIt is followed by the research methodology which is adopted has been defined with

the help of collected data. The data has been collected about the market share of

various Snacks Companies . The various Snacks Companies considered in this

report are: Fritolay, Haldirams, ITC, Parle and Diamond. The next step was

designing the sampling design, but in this research total population was taken in

account. Much effort was made to cover each & every outlet in the target area.

The primary data was collected through a prescribed questionnaire along with

personal interview. However, secondary data were collected referring various books

and websites.

Questionnaire contains both open ended and closed ended question, on the basis of

which the analysis was done with the help of clear graphical representation which

consists of Pie chart, Bar chart and other necessary graphs. The next step was the

most important step for analyzing the data looking at the actual findings of the project

and recommends the company about what to taken under consideration for

launching of its product and service.


Objective of the Project1. To study the snacks industry as a part of food processing industry.

2. To study the company profile of ITC Ltd the makers of BINGO.

3. To study the trends in snacks industry.

4. To analyse and interpret the results of sample collected.

5. To determine the future course of action by ITC.

6. To find conclusions to our project.


Industry Profile of Food Processing Industry

Indian Food Processing industry

Food processing industry in India is a sunrise sector that has gained prominence in

the recent years. Availability of raw materials, changing lifestyles and relaxation in

policies has given a considerable push to the industry’s growth. This sector is among

the few that serves as a vital link between the agriculture and industrial segments of

the economy. Strengthening this link is of critical importance to improve the value of

agricultural produce; ensure remunerative prices to farmers and at the same time

create favourable demand for Indian agricultural products in the world market. A

thrust to the food processing sector implies significant development of the agriculture

sector and ensures value addition to it.


Ministry of Food Processing Industries

The Ministry was set up in 1998 and the industry segments that come under its

purview are:

Fruit & Vegetable processing (including freezing and dehydration)

Grain Processing

Processing of Fish (including canning and freezing)

Processing and refrigeration of certain agricultural products, dairy

products, poultry and eggs, meat and meat products

Industries related to bread, oilseeds, meals (edible), breakfast foods, biscuits,

confectionery, savory snacks, malt extract, protein isolate, high protein food,

weaning food and extruded food products (including other ready-to-eat

foods)

Beer, including non-alcoholic beer

Alcoholic drinks from non-molasses base

Aerated water and soft drinks

Specialized packaging for food processing industries.

The Ministry of Food Processing Industries, GoI, has estimated the size of the Indian

food market at US$ 191 billion (Rs 8,600 billion). The processed food market is

projected to be over US$ 100 billion, of which the primarily processed food market

accounts for 60%, while the value-added processed food market is around 40%.

The average annual growth of the food processing industry has been around 8% bet

ween FY01-FY06. The segments that have driven the growth are the beverages and

meat & meat products and processed fish sectors. The food processing industry in


India has a share of 1.5% in the total GDP of the country, and as part of total

manufacturing accounts for 9%. India’s share in world trade in respect of processed

food is about 1.6%.

An extensive and highly fragmented industry, the food processing sector largely

comprises of the following sub-segments: fruits & vegetables, milk and milk products,

beer & alcoholic beverages, meat and poultry, marine products, grain processing,

packaged/convenience food and packaged drinks. A large number of players in this

industry are small sized companies, and are largely concentrated in the unorganized

segment. This segment accounts for more than 70% of the output in volume terms

and 50% in value terms. However, though the organized sector is comparatively

small, it is growing at a much faster pace.


Indian Snacks Industry: An Overview

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is

described as a small quantity of food eaten between meals or in place of a meal.

Snack food generally comprises bakery products, ready to eat mixes, chips,namkeen

and other light processed foods According to the ministry of food processing, the

snack food industry is worth Rs100 billion in value and over 4,00,000 tonnes in terms

of volume. Though very large and diverse, the snacks industry is dominated by the

unorganized sector. According to an Apeda survey almost 1,000 snack items and

300 types of savouries are sold across India. The branded snacks are sold at least

25% higher than the unbranded products. Savoury snacks have been a part of

Indian food habit, since almost ages. Though there is no particular time for snacks,

normally they are consumed at teatime. The variety is almost mind- boggling with

specialties from all regions, which have gained national acceptance.

The industry has been growing around 10% for the last three years, while the

branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500

crore, due to various reasons like Multiplex culture, snacking at home while watching

TV, pubs and bars (where they are served free). AC Nielsen's retail audit shows that

the large sales volumes are due to a marked preference for ethnic foods, regional

bias towards indigenous snacks and good value-for- money perception. Of course

the branded segment is much smaller at Rs 2,200 crore, which is what makes it so

attractive to food Companies that are looking at bigger shares. In the branded

snacks market, to get down to basics, Frito Lay commands a share of 45%, followed


by Haldiram’s at 27% and ITC at 16%. The rest is divided between a handful of new

entrants, wannabes and many regional players. Of the wide range of snacks

available, potato chips constitute a sizeable segment of the Indian snack food

industry, according to India Infoline. The potato chip market is generally an

unorganized industry. Nearly all potato chip snack products are manufactured and

sold locally. There is also no uniform standard for packaging, as there is in Europe,

the United States and other more developed regions. Many snack foods are sold

loose or packaged in poly-pouches, which may only be folded, or in some cases,

stapled closed. As the Indian economy continues to grow, and production standards

improve, many snack food companies are making significant investments into plant

equipment and packaging machinery. Pepsi Foods Ltd., now known as Frito-Lay

India Ltd., produces India's largest snack food manufacturers brands, including Ruffl

es, Hostess, Cheetos and Uncle Chips. Frito Lay's story is an example of how Ameri

can recipe were adjusted to satisfy local tastes. Procter & Gamble's Pringles brand

of potato crisp was launched in Delhi in 1999. Pringles is also a baked potato crisp,

unlike many other potato based Indian snack foods that are fried. P&G currently imp

orts the Pringles product and therefore the product has been priced at a premium

and is marketed to a micro-niche.


SWOT Analysis of Indian Snacks Industry

Strengths

Abundant availability of raw material

Vast network of manufacturing facilities all over the country

Vast domestic market

Urbanisation

Weaknesses

Low availability of adequate infrastructural facilities

Lack of adequate quality control & testing methods as per international stand-

ards supply chain due to a large number of intermediaries.

High requirement of working capital

Opportunities

Rising income levels and changing consumption patterns

Favourable demographic profile and changing lifestyles

Integration of development in contemporary technologies such as electronics,

material science, bio-technology etc. offer vast scope for rapid improvement

and progress

Opening of global markets


Threats

Affordability and cultural preferences of fresh food

High inventory carrying cost

High taxation

High packaging cost

Competition between national and regional players.


PROFILE OF THE COMPANY

Company Background

ITC is one of India's foremost private sectors companies with a market capitalization

of nearly US $ 22 billion and a turnover of over 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 also ranks among India's top 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, Greeting Cards, 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 and Greeting Cards.

As one of India's most valuable and respected corporations, ITC is widely perceived

to be dedicatedly nation-oriented. Chairman Yogesh Chandra 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 hotelier. 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 Limited,

is aggressively pursuing emerging opportunities in providing end-to-end IT solutions,

including e-enabled services and business process outsourcing.

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 endeavours to enhance its wealth generating capabilities in a

globalizing environment to consistently reward more than 3, 78,000 shareholders,


fulfil 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 Shareholders”

ITC was established on August 24, 1910 as the Imperial Tobacco Company of

India Limited in Kolkata. Initially, the company was involved in the trading of

imported cigarettes.

In 1925, in a backward integration move, the company started a packaging

and printing business.

The name of the company was changed to India Tobacco Company Limited

(I.T.C. Ltd.) in 1974.

In 1975, I.T.C. Ltd., through ITC-Welcome group, tied up with the US-based

Sheraton Corporation to enter the hospitality industry. It acquired its first hotel

in Madras (later renamed Chennai) in Tamil Nadu and called it the Welcome

group Chola Sheraton.

I.T.C. Ltd established ITC Bhadrachalam Paperboards Ltd. (IBPL) in 1975.

The company started production at its integrated pulp and paper/board

manufacturing facility at Bhadrachalam, Andhra Pradesh, in 1979.

In 1990, I.T.C. Ltd. set up an International Business Division (IBD) for export

of agricommodities.

I.T.C. started a greeting cards business under the brand name Expressions in

the year 2000.

In the same year, I.T.C. also entered the fashion retailing business by

extending its well known cigarette brand Wills. The retail outlets were called

Wills Lifestyle and offered premium leisure wear for men and women under

the Wills Sport brand. ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 19 of 53

In September 2001, the company was renamed ITC Ltd (without full stops,

and with no meaning attributed to the alphabets).

In 2001, ITC made an entry into the foods business.

In 2002, the company launched another clothing brand, John Players, which

targeted the urban youth.

In 2004, ITC was one of eight Indian companies to make it to the “Forbes ‘A’

List”8 which featured 400 of “the world’s best big companies”.

In Oct 2005, ITC has launched an exclusive line of prestige fine fragrances

and personal care products under the Essenza Di Wills brand.

In late 2007, ITC launched Fiama Di Wills soaps and shampoos following the

success of Essenza Di Wills.

In Dec 2007 ITC launches ECF (Elemental Chlorine Free). ITC is the first and

only Company in India using the ECF technology.


PRODUCTS OF THE COMPANY


Areas of Diversification

ITC has transformed itself from a leading cigarette manufacturer to an umbrella

group that offers a diversified product mix to enhance its brand image and reduce

dependency on tobacco related products. It has forayed into the hospitality service

industry and has become a major player in the hotels segment. Its position in the

FMCG (fast moving consumer goods) business is also on a growth curve; especially

its confectionery and biscuits which are slated to achieve the top ranks among its

peers. It has made heavy investments to strengthen its IT (information technology)

segment and to compete with the big players like Infosys and Wipro. Although the

ITC group is marketing its image as an ideal corporate citizen and a company that

takes its social responsibility seriously, it still earns 80% of revenues from selling

cigarettes and other tobacco related products.

The major areas in which ITC has diversified are:

FMCG

It is ITC's strategic intent to secure long-term growth by synergising and blending the

diverse pool of competencies residing in its various businesses to exploit emerging

opportunities in the FMCG sector.


ITC’s FMCG portfolio comprises:


http://www.itcportal.com/itc-business/fmcg/cigarettes.aspx

http://www.itcportal.com/itc-business/fmcg/foods.aspx

http://www.itcportal.com/itc-business/fmcg/lifestyle-retailing.aspx

http://www.itcportal.com/itc-business/fmcg/personal-care-products.aspx

http://www.itcportal.com/itc-business/fmcg/cigarettes.aspx

http://www.itcportal.com/itc-business/fmcg/foods.aspx

http://www.itcportal.com/itc-business/fmcg/lifestyle-retailing.aspx

http://www.itcportal.com/itc-business/fmcg/personal-care-products.aspx

http://www.itcportal.com/itc-business/fmcg/education-and-stationery-products.aspx

http://www.itcportal.com/itc-business/fmcg/safety-matches.aspx

http://www.itcportal.com/itc-business/fmcg/agarbattis.aspx

http://www.itcportal.com/itc-business/fmcg/education-and-stationery-products.aspx

http://www.itcportal.com/itc-business/fmcg/safety-matches.aspx

http://www.itcportal.com/itc-business/fmcg/agarbattis.aspx

HOTELS

ITC Welcomgroup, India's premier chain of luxury hotels was launched on October

18, 1975, with the opening of its first hotel - Chola Sheraton in Chennai. Since then

the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With

over 100 hotels in more than 80 destinations.

Examples:

BUKHARA, DAKSHIT, DUM PUKHT, WEST VIEW, PAN ASIAN, WELCOME

HERITAGE, FORTUNE HOTELS etc.


PAPERBOARDS AND PACKAGING

ITC's Paperboards and Specialty Papers Division is India's largest, technologically

advanced and most eco-friendly, paper and paperboards business. The business

caters to a wide spectrum of packaging, graphic, communication, writing, printing

and specialty paper requirements through its four world-class manufacturing units, 6

sales offices and a network of more than 50 dealers in India, along with an

international trade network of 15 distributors / agents.


The product range includes:

ITC's Paperboards & Specialty Papers business has won numerous awards for quality,

environmental management systems and product excellence.

AGRI-BUSINESS

ITC's pre-eminent position as one of India's leading corporates in the agricultural

sector is based on strong and enduring farmer partnerships that has revolutionized

and transformed the rural agricultural sector.

ITC's Agri Business Division is the country's second largest exporter of agri-

products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales

of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion).

Agri- exports

E-choupal


INFORMATION TECHNOLOGY

ITC Infotech, a global IT services company, is today one of India's fastest growing IT

services and solutions providers.

ITC Infotech offers IT services and solutions across five key industry verticals:

Banking, Financial Services & Insurance (BFSI), Consumer Packaged Goods

(CPG) & Retail, Manufacturing & Engineering Services, Travel, Hospitality &

Transportation and Media & Entertainment.


CULTURE

ITC’s Vision

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

world-class performance.

• Create growing value for the Indian economy and the Company's stakeholders.

ITC’s Mission

• To enhance the wealth generating capability of the enterprise in a globalizing

environment

• Deliver superior and sustainable stakeholder value.

ITC’s Core Values

The company’s Core Values are aimed at developing a performance-oriented

organization that is highly customer focused and also creates value for those holding

stake in it. It fully understands that it has a commitment to its stakeholders to act as a

guardian of the company from stakeholder’s point of view and deliver results in a

manner that actualizes stakeholder’s interest on a long-term basis.

It also delivers on the commitment to its customers by consistently addressing their

needs on product quality, value and overall satisfaction. It respects the values of

people and also encourages individuals to pursue their dreams, values their

differences and helps them to experiment in the pursuit of various opportunities.

ITC firmly believes in the concept of Excellence with their mantra being, “we do what

is right, do it well and win. We will strive for excellence in whatever we do”. It is

constantly in the pursuit of better and newer products, processes, services and

management practices. Apart from the interest of shareholders they also address ROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 28 of 53

their commitment to the nation to generate economic value, at the same time

ensuring that in achieving these goals no compromises are made whatsoever in

complying with rules and regulations as specified by law.

ITC’s Philosophy

ITC believes in practicing ethical behaviour among the corporate citizen. The

company follows an HR policy that is regulated by Teamwork, Trust, Collaboration,

Mutuality, Meritocracy, Objectivity, Collaboration, Self-respect and Human-dignity. It

is also deeply committed to make the company a gender friendly place for each

individual while also ensuring enhancement of equal opportunities for men and

women, preventing sexual harassment of any form and the adherence to good

employment practices. It is ensured that the interest of the company is foremost and

in this context acceptance of any kind of gifts or payments from suppliers or

customers is viewed as a serious breach of company discipline. And such acts are

also considered as damaging to the reputation of the company.


High standards of housekeeping and hygiene are followed to ensure excellent

physical working conditions. It is understood that all the directors, senior

management and employees shall conduct themselves in an honest manner and

avoid any conflict of interest.

The top officials and employees of ITC believe that ITC provides them freedom at

work and resources to experiment. Employees take pride in working for ITC for its

work culture, environment, and the way people are treated. They are consulted

before a new project\system is introduced and their concerns and suggestions

addressed. ITC also gives a lot of input to develop their skill and career. They give

utmost importance to equal opportunities, better work environment.


Literature Review

Marketing Mix

Product:Anything offered to a market for attention, acquisition, use, or consumption that

might satisfy a need or want. Product provides the functional requirements sought by

consumers.

Product Is a bundle of satisfaction that a customer buys.

Almost always a combination of tangible and intangible benefits

A product may be new to the company, but not to the customers and in reverse a

product may be new to the customers but not to the company.

NEW PRODUCT DEVELOPMENT PROCESS:

IDEA GENERATION

IDEA SCREENING

CONCEPT TESTING

MARKETING STRATEGY DEVELOPMENT

BUSINESS ANALYSIS

PRODUCT DEVELOPMENT

TEST MARKETING

COMMERCIALISATION / LUNCING


Price:

Pricing Policies:If a firm has the power in its market to set its own price, it can adopt a pricing policy.

Market penetration pricing: setting prices of products relatively low

compared to those of similar products

Destroyer pricing: Deliberate price cutting or offer of ‘free gifts/products’ to

force rivals (normally smaller and weaker) out of business or prevent new

entrants

Follow-the-leader pricing: A pricing strategy adopted by firms which copy

the market leader's prices

Skimming: High price, Low volumes, Suitable for products that have short life

cycles or which will face competition at some point in the future.

Pricing Methods:1- Cost Based Pricing

cost plus, markup pricing

easy, costs known, minimizes price competition

ignores demand elasticity, not profit maximizing

target return of investment

use breakeven analysis to find a price to yield a target ROI

…use sales volume to derive pri

2- Demand Based Pricing

Perceived value

It requires detailed knowledge of buyer behavior and demand elasticity

Only true profit maximizing strategy

It ignores costs and competitorsROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 32 of 53

3- Competition Based Pricing

Going rate pricing

Used when costs difficult to measure

Competitors lack differential advantage

Sealed bid

Forces competitors to lowest price

4- Select Final Price

Psychological pricing

Know demand elasticity

Start high, work toward costs

Discounts

Cash, trade, quantity, or seasonal

Promotional pricing.

5- Value Pricing

Price set in accordance with customer perceptions about the value of the

product/service

Examples include status products/exclusive products

6- Loss Leader

Goods/services deliberately sold below cost to encourage sales elsewhere

7- Price Discrimination

Charging a different price for the same good/service in different markets

Requires each market to be impenetrable

Requires different price elasticity of demand in each market


8- Destroyer/Predatory Pricing

Deliberate price cutting or offer of ‘free gifts/products’ to force rivals (normally

smaller and weaker) out of business or prevent new entrants

Anti-competitive and illegal if it can be proved

Place :

What is a Marketing Channel? This is a set of interdependent organizations involved in the process of

making a product or service available for use or consumption.

Channel functions Gathers information on customers, competitors and other external market

data

Develop and disseminate persuasive communication to stimulate purchases

Agreement on price and other terms so that transfer of ownership can be

effected

Placing orders with manufacturers

Acquire funds to finance inventories and credit in the market

Assume responsibility of all risks of the trade

Successive storage and movement of products

Helps buyers in getting their payments through with the banks

Oversee actual transfer of ownership


Types of intermediaries Distributors

Wholesalers

Retailers

Department stores

Promotion:Promotion is only a means of communication about the product without the

motive of persuading for that act which a customer do not want to do.

In marketing terms, the role of promotion is to inform, remind and persuade

existing or prospective customers to accept, resell, recommend or use of a

product, service and ideas.

What is Promotion mix?Promotion mix consists of careful blending of advertising, personal selling, sales

promotion, public relations, publicity and propaganda; to accomplish the

marketer’s promotional objectives.

When deciding the promotional mix, the management should consider:-

The target audience/ Market size and concentration

The objective of the promotional effort.

The nature of the product.

The stage of the product’s life cycle.

The funds available for the promotion/ Resource

Availability and the cost of each promotional tool.

Customer information needsROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 35 of 53

Elements under Promotion mix

a) Advertising

b) Sales Promotion

c) Personal Selling

d) Public Relations

e) Publicity

f) Propaganda


Study of Selected Research Problem

STATEMENT OF RESEARCH PROBLEM

In the branded snacks market, to get down to basics, Frito Lay commands a share of

45%, followed by Haldiram’s at 27% and ITC at 16%. The rest is divided between a

handful of new entrants, parle and many regional players. Out of these ITC’s Bingo

is a new entrant in the market, which was launched in 2007. ITC has launched Bingo

in a wide variety of flavours and formats, ranging from potato chips to finger snacks.

Because of its different and catchy advertisements Bingo has created a buzz in the

market. Therefore, our aim was to find out the most popular flavour of Bingo among

all the offerings. We began our analysis by dividing people into those who like to eat

snacks and those who don’t. We based our study on the survey of people who like to

eat snacks. This survey was conducted in Nagpur. To collect the data we designed a

questionnaire.


STATEMENT OF RESEARCH OBJECTIVE

The main objectives of our research were as follows:

To find out what percentage of population likes to eat snacks.

To find out which flavour of Bingo is most preferred.

To analyse the reason for the popularity of the most preferred snack

To know the satisfaction level of people who eat Bingo

To find out how much people spend on snacks weekly.

To find out the preferences of people for different brands


RESEARCH DESIGN & METHODOLOGY

Research design is the basic framework which provides guidelines for the rest of

research process. It specifies the methods for data collection and data analysis .In

this research project we have used the survey method of data collection, to be more

specific questionnaire method. We conducted a survey in Nagpur. Out of the

universe of 500 our sample size is 50. Respondents in the sample size were asked

to fill the questionnaires to gather the data.

The data for the research has been collected through interaction with people &

personal interview as per the prescribed format of questionnaire. The questionnaire

includes both open ended question and close ended question.

The format of the questionnaire has been attached in the APPENDIX.

Since, I wanted to know the percent of market shares of individual operators in my

area of survey; I followed UMBRELLA SURVEY method for my survey. I took care

that almost all outlets are covered in my area of survey to get the most effective

results.

Steps Involved:a) I selected a particular area to survey in a particular date.

b) I recognized any shop as general stores and betel shops outlet by looking

at banners, signboards, glow signs, wranglers etc.


c) I started to survey from one corner of the town to another corner and took

care that maximum outlets are covered.

The outlets consisted of:-

1) General stores

2) Medicine stores

3) Variety Stores

4) Betel shops etc.


Limitations There were few limitations to this methodology.

Those were:

a) Large no. of outlets was supposed to be covered within a short interval of

time.

b) Survey was possible only during the peak hour of business.

c) Most of the outlets remained busy & could not co-operate.

d) Many retailers did not cooperate due to fear of vigilance.

e) Many outlets were new & hence gave hypothetical data.

f) Few outlets demanded bribe in lieu of data or information.


ANALYSIS OF DATA

In order to extract the meaningful information from the data collected an analysis of

data is done using pie charts, bar graphs etc.

The first objective of the research project is concerned with finding

out what percentage of people likes to eat snacks. The pie chart

given below is clear on the percentage of people who like to eat

snacks. Out of 50 respondents 35 like to eat snacks while 15 don’t. 70% likes to eat

snacks while 30% don’t.

30%

70%

Preference for Snacksno yes


Our second objective is concerned with finding out which flavour of Bingo is

most preferred.

Table showing the responses of people:

Flavours Respondents

(Value)

Respondent

s (%)

Spicy Masala Potato Chips 3 8

Premium Salted Potato Chips 1 3

Juicy Tomato Ketchup Potato Chips 3 8

Chatkila Nimbu Achar Potato Chips 1 3

Red chilli Bijlee PotatoChips 3 8

Mad Angles 22 61

Tedhe Medhe 1 3

Livewires 2 6

The above table and pie chart shows the responses of the people. It is clear that Bingo’s

Mad Angles dominates the market for Bingo. The second spot is shared by two flavours

equally—Spicy Masala potato chips, Juicy Tomato Ketchup potato Chips and Red Chilli

Bijlee potato chips. Third most popular format of Bingo is Livewires and the fourth spot is

shared by Salted Potato Chips, Chatkila Nimbu Achar potato chips and Tedhe Medhe.


The third objective was to analyse the reasons for the popularity of the most

preferred flavour.

For this the respondents were asked what do they like most about Bingo. Following

pie chart shows their responses:-

46%

11%16%

8%

13% 6%

Reason for PopularityTaste Variety Quality Price Quantity Packaging

Taste 46

Variety 11

Quality 16

Price 8

Quantity 13


Packagin

g 6

From the above pie chart we can see that people like the taste of Bingo the

most i.e. they like to eat Mad Angles Because of its unique format and flavour.

Fourth objective was to find out how much people are satisfied with Bingo.

Following pie chart shows the satisfaction level of people:

17%

45%

38%

Satisfaction LevelUnsatisfied Very Satisfied Somewhat satisfied

Satisfied 17Very Satisfied 45Somewhat Satisfied 38


The fifth objective was to find out how much people spend weekly on snacks.

money spent0

2

4

6

8

10

12

14

16

18

20

Below 5050-100Above 100

Number of people

From the above diagram it is clear that most people spend below Rs.50 on

Snacks. And very small part of the sample spends more than Rs.100 on

snacks weekly.


Our sixth and last objective was to find out the preferences of people

for different brands. Here, we aim to find out the most popular brand

of snacks excluding Bingo.

Snacks Brand0

2

4

6

8

10

12

14

LaysHaldiram'sUncle chipsDiamondParle

Number of people

In the above graph we can see that Frito Lays is the most popular brand

among people followed by Uncle Chips and Haldiram’s. Next is Parle


Nankeens. The least popular brand appears to be Diamond. It may be

because of, it is a local brand and is not so popular in the snack industry in India.

SUMMARY OF OTHER FINDINGS

17 people out of 36 people who like to eat snacks feel that as compared to

other brands Bingo is much better. Other 12 feel that Bingo is somewhat

better and 7 feel that Bingo is about the same as other brands. No one feel

that Bingo is somewhat worse or much worse than other brands.

When people asked how often they eat Bingo 22 people said once a week

or more often, 11 people said everyday and 3 people said 2-3 times a month.

When people asked about their weekly expenditure on snacks, 56% people

spend below Rs.50, 30% people spend between Rs.50 – Rs.100 and only

14% spend above Rs.100.

When people asked excluding Bingo which brand snacks like the most,

Lays(Frito-Lay) is the most popular among the people than Uncle chips and

Haldiram’s followed by Parle. The least popular brand is Diamond.


RECOMMENDATION & CONCLUSION

After conducting the survey we are in a position to say that ever since its

launch Bingo as a preferred brand is on a rise. Although Frito Lays is the most

popular brand Bingo has carved a niche for itself. Bingo is in the growth stage

of its life cycle. Given more time it is capable of capturing a larger market

share and giving tough competition to other brands. Overall people seem to be

satisfied with Bingo.


APPENDIX


QUESTIONNAIRE

QUESTIONNAIREI am RANJIT KUMAR AGARWAL. I am currently doing my SUMMER INTERNSHIP PROGRAMME(SIP) for ROURKELA INSTITUTE OF MANAGEMENT STUDIES, ROURKELA under BPUT, Orissa, on “A STUDY OF MARKETING STRATEGIES OF ITC’s PRODUCTS WITH SPECIAL REFERENCE TO BINGO”.

Therefore, I would be very grateful to you, if you could spare some of your valuable time to complete following questionnaire.

Name: Gender:

AGE : City:

OCCUPATION :

PROFESSIONAL

BUSINESSMAN

SERVICE

STUDENT

ANY OTHER

General Instructions:

Answer all questions. Indicate your answer by marking a tick against an appropriate option.

1. Which company’s snack you prefer the most?a) ITC d) PEPSICO.


b) HALDIRAM’S e) PARLEc) DIAMOND

2. Reason for your choice?a) Good taste c) Good Adb) Packaging d) Availability

3. Which flavour you prefer the most?a) Salted c) Red chillib) Tomato d) Any other............

4. How often do you have snacks?a) Once a week or more often c) 2 to 3 times a monthb) Everyday d) Occassionally

5. How much do you spend weekly on snacks?a) Below Rs.50.00 c) more than Rs.100.00b) Rs.50-Rs.100.00

6. Which media influences you the most?a) T.V. c) Magazineb) Newspaper d) Banner

7. What is the reason that makes you remember the Ad.?a) Message of the Ad. c) Logical reasoning of the Ad.b) Frequency of the Ad. d) Characters of the Ad.

8. Score the below factors for the respective companies.( Score 1-5 )

ITC PEPSICO. HALDIRAM PARLE DIAMOND

Taste

Availability

Price

Brand name

PackagingROURKELA INSTITUTE OF MANAGEMENT STUDIES ITC LIMITED ROURKELA NAGPUR Page 52 of 53

Variety

9. Before switching on to …………………, which company’s snack did you prefer?a) ITC d) PARLEb) PEPSICO e) DIAMONDc) HALDIRAM”s

10. Reason for your choice?a) Good taste c) Good Ad

b) Packaging d) Availability

11. Which flavour you like of that company?a) Salted c) Red chillic) Tomato d) Any other...........

BIBLIOGRAPHY

www.itcportal.com

www.wikipedia.com


http://www.wikipedia.com/

http://www.itcportal.com/

Date post:	22-Nov-2014
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