SUBMITTED BY,HEMANT PANWARPGDM-1Rollno-P15FC170

*FINAL PROJECT ON ITC’S YIPEE

“ITC COMPANY”:ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India.ITC is one of the leading private sector enterprises that a market capitalization of $19 billion and a turnover of $5.1 billion. This diversified has business interests in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products. The company has employee strength of over 25,000 people at more than 60 locations across India.Overview- Highlight :• Indian FMCG sector is the fourth largest sector.• Low operational cost – competitive advantage• Huge potential –middle class & rural sector• Expected to grow at base rate of least 12% annually• Active in overseas acquisitions.• Retail sector contributes to 22% of the country’s GDP.• Accounts for approximately 8% of the total employment

21%

10%

37%

8%

5%

19%

market share

HUL ITCNESTELBRITANIADABUROTHERS

 Growth drivers in FMCG

LargeMarket

Spending pattern

 

Rise of rural

consumers

Changing profile

and mind set of

consumer

Growing popularit

y of organized retail

FDI support

Increasing per capita income of

urban populatio

n

Growthdrivers

VISION AND MISSION:VISION:- sustain ITC’s position of India’s most valuable corporation through world class performance ,creating growing value for the Indian economy and the company’s stakeholders.Mission:- to enhance the wealth generating environment delivering superior and sustainable stakeholder value.

Business:FMCG:- Under this division, the company has business interests in various segments like cigarettes, food, lifestyle retailing, personal care, Education and stationary, agarbattis and safety matches. The company offers a wide range of products under each segment.,ITC's Branded Packaged Foods Business is one of the fastest growing foods businesses in India.A spread of delectable offerings in Staples, Snacks & Meals, Confections and Beverages isavailable under several popular brands like Aashirvaad, Sunfast, Bingo!, Yippee!, Kitchens of India.

Packaging: ITC's Packaging & Printing Business is the largest value added converter of paperboard packaging in South Asia. It converts over 70,000 tones of paper, paperboard and laminates per annum into a variety of value-added packaging solutions for the food & beverage,

Agree Commodities & Rural Services:

ITC is the country's second largest exporter of agree-products. It currently focuses on exports and domestic trading of: Feed Ingredients Food Grains - Rice (Basmati), Wheat Marine Products - Shrimps and Prawns Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit Products, Fresh Fruits

Leaf Tobacco: ITC pioneered the cultivation and development of Leaf Tobaccos in India., ITC's Leaf Tobacco business is synonymous with being 'The One Stop Shop for Quality Indian Tobaccos‘

Hotels:  ITC Hotels, India's premier chain of luxury hotels was launched on October 18, 1975, with the opening of its first hotel.

 CMPETITORS:-• Marico• L oral• Nirma Ltd• HUL• Dabber 

MARKETING STRATEGYSTP FOR A PRODUCT:

Segment :- products and services for daily needs

Target group:- Every Indian household especially the middle class.

Positioning: - Enduring value for the nation for the share holder SWOT ANALYSIS: STRENGTH:- • ITC has a strong and experienced management• Strong brand presence• Diversified product and services packaging and agri business• ITC limited employees over 25000 people • Excellent research and development facilities

WEAKNESS:-Hotel industry has not been able to create a huge market shareOPPORTUNITY:-More publicity of hotel chains to increase market shareMergers and acquisitions to strengthen the brandTap rural markets and increase penetration in urban areasThreats:- FDI in retail thereby allowing international brands Intense and increasing competition amongst other FMCG companies and hotel chains 4p’s in yippee:-  PRODUCT PRICE PLACE PROMOTION

Different package At Rs.10 to match competitors.

Urban market Advantages over Maggi as competitor.

Round cake Also in Rs.5 Rural market penetration due to ITC distribution channel.

Ads mostly shown on particular channels & time.

80gm pack 2 variants

STP:-SEGMENT :- People looking for a healthy snack when hungry.

Target group:- Young people and children from upper and middle class.

Positioning:- Sunfast yippee noodles do not lump even 30 minutes after cooking.

SWOT ANALYSIS:-

Strength:- 1. Good advertising and visibility.2. Good product distribution availability.3. lots of flavors and varieties availability.

Weakness:- 1. Media generated news about health issues.2. Brand loyalty of Maggi is tremendous.

Opportunity:- 1. Untapped rural markets.2. Dinks, single professionals.3. Newer tastes.

Threats:- 1. Price was with other noodle brands.

Product Life Cycle:The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products

Introduction Stage :- This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector.

Growth Stage:- The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.

Maturity Stage:- During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.Decline Stage: – Eventually, the market for a product will start to shrink, and this is what’s known as the decline stage. This shrinkage could be due to the market becoming saturated or because the consumers are switching to a different type of product.

Gross Profit and Net Profit Margin of the company

year 2015 2014 2013 2012 2011

gross profit ratio (g.p./netsales*100) 41.190 40.864 38.746 38.548 37.336

BUSINESS FINANCE

1 2 3 4 535

36

37

38

39

40

41

42

Gross profit ratio

Series1

Axis Title

Axis Title

year 2015 2014 2013 2012 2011

net profit ratio (N.P/net sales*100) 26.317 26.430 24.809 24.504 23.242

1 2 3 4 521

22

23

24

25

26

27

Net profit ratio

Series1

Axis Title

Axis Title

Direct and indirect costs of the company – change in comparison to previous year

trend analysis

Direct cost 2015 2014 2013 2012 2011Increase/Decrease in Stock -214.53 -128.41 -246.35 -65.59 -270.55

Raw Materials Consumed 14886.49 13284.75 12312.139697.0

2 8431.28Power & Fuel Cost 581.65 613.19 550.11 453.02 421.06

Employee Cost 1780.04 1608.37 1387.011257.6

2 1140.02Other Manufacturing Expenses 1408.56 1330.48 1157.02

1053.51 944.29

Total 18442.21 16708.38 15159.9212395.

6 10666.1Indirect cost          General and Administration Expenses 1419.54 1089.35 1234.39

1049.68 993.4

Selling and Distribution Expenses 2117.19 1982.31 2088.32

1954.62 1701.27

Miscellaneous Expenses 1104.2 983.04 800.09 878.92 665.9Interest 78.45 23.63 105.91 97.96 87.98Depreciation 961.74 899.92 795.56 698.51 655.99

Provision for Tax 4389.79 3873.9 3265.792735.1

6 2280.55

Total 10070.91 8852.15 8290.067414.8

5 6385.09

change in RS(14-15) change in %1 0.05

-86.12 67.071601.74 12.06-31.54 -5.14171.67 10.6778.08 5.87

1733.83 10.38

330.19 30.31134.88 6.80121.16 12.3354.82 231.9961.82 6.87

515.89 13.32

Indirect cost          General and Administration Expenses 1419.54 1089.35 1234.39

1049.68 993.4

Selling and Distribution Expenses 2117.19 1982.31 2088.32

1954.62 1701.27

Miscellaneous Expenses 1104.2 983.04 800.09 878.92 665.9Interest 78.45 23.63 105.91 97.96 87.98Depreciation 961.74 899.92 795.56 698.51 655.99

Provision for Tax 4389.79 3873.9 3265.792735.1

6 2280.55

Total 10070.91 8852.15 8290.067414.8

5 6385.09

Fixed assets added during the year.

Fixed assets during the year

opening assets as on 1.04,2104 surplus balance

Additions for the year

With dawals and adj

31.3.15

                  Land        Leasehold   2.21 0.17 17.75buildings (freehold) 30.26 104.98 3.53

737.83

licensed properties-building improvement   6.7 3.62 35.84

plant and equipment 32.26 720.81 67.975962.4

4furniture and fixtures 7.1 68.9 10.85 404.87Vehicles 0.5 14.5 5.96 41.04office equipment 2.39 5.31 1.55 13.62railway siding etc.   0.13   0.24INTANGIBAL ASSETS        goodwill trademark       4.9Trademarks   4.78   10.8computer software   3.4 11.31 10.8business and commercial right   2.02   65.97Intangible assets under development        

3.Working Capital for the year

Working Capital  2015 2014  20132012   2011

current assets- current liabilities 6309.3 3113.15

2201.31

973.53

576.74

 Debt/Equity ratio of the company and its implications

year 2015 2014 2013 2012 2011

debts/equity 0.00476 0.00632 0.00875 0.010503 0.01261

“HUMAN RESOURCE MANAGEMENT”

Organization Structure – to be represented via hierarchy

 ANALYSIS OF JD’S AND JOB SATISFACTION POSTED BY THE COMPANY ONLINE –JOB PORTALS –

JOB SATISFACTION-

Employee satisfaction is often measured by anonymous employee satisfaction surveys administered periodically that gauge employee satisfaction. (I do not support these.)

Employee satisfaction is looked at in areas such as:

• management,• understanding of mission and vision,• empowerment,• teamwork,• communication, and• Coworker interaction.

The facets of employee satisfaction measured vary from company to company

JOB DISCRIPTION:-Many companies find it useful to create employee grade levels. Creating employee grade levels assures equal compensation for the same work across different departments and divisions. If your company employs designers, sales people, programmers and accountants, for instance, how do you make sure they receive equal compensation and treatment when such different people have similar responsibility levels? One good solution is employee grade levels.

Desired Profile:-• Proficiency in written communication, • Editing content and creating content.

Proficiency in MS Office,• Excel and PowerPoint and Microsoft Share• Point as well as in handling Intranets, Portals, Websites. Good interpersonal skills.

Education:-:UG -B.A - Any Specialization, Arts &Humanities, Communication, English, Journalism PG - M.A - Any Specialization, Arts & Humanities, Communication, English, Journalism Doctorate - Any Doctorate - Any Specialization, Doctorate Not Required 

ORGANAZATION CULTURE:-

ITC is a board-managed professional company, committed to creating enduring value for the nation and the shareholder. It has a rich organizational culture rooted in its core values of respect for people and belief in empowermentITC’s 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, Agree 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 ITC’s various businesses.

• Create distributed leadership within the organization by nurturing

talented and focused top management teams for each of the businesses.