Itc project arun

SUMMER INTERNSHIP REPORT

On

“Market Research Activity of Navy Cut”

Submitted in partial fulfillment of the requirements for the award of degree of POST GRADUATE DIPLOMA IN MANAGEMENT

(2010-12)

Under the Supervision(s) of:-

Praveen Mustoor

Submitted By:-

ARUN SINGH

(PGDM)

2010-2012

Department of Management Studies & Research,

Tirpude College- Nagpur

Market Research Activity of Navy Cut Page 1

DECLARATION

I, Mr. Arun Singh hereby declare that the project entitled “Market Research Activity of Navy Cut” was carried out for Dreams Events is a genuine work of P.G.D.M. (Marketing) IInd semester course.

To the best of my knowledge any part of this context has not been submitted earlier for any Degree, Diploma or Certificate Examination.

Mr. Arun Singh


ACKNOWLEDGEMENT

It gives me great pleasure in acknowledging the invaluable assistance

expended to us by various personalities in the successful completion

of this report. Our debts are due to many individuals who provided us

guidance, advice and useful comments that helped us in the successful

completion of this report. As usual the debts can be only warmly

acknowledged but never fully recompensed.

I owe my gratitude to Dreams Events, Nagpur for providing me the opportunity to undergo two months summer training, especially Mr. Nikhil Kesharwani, Branch Manager for allowing me to work on the project

I would like to give sincere thanks to everyone in Mudra Events Pvt. Ltd. Mumbai, for their help, guidance, cooperation; they did it in one way or other for successful completion of the project. I am greatly acknowledged by their kind help.

I am thankful to ITC limited for allowing me to conduct the market research of Navy Cut.

Mr. Arun Singh


INDEX

Table of ContentsEXECUTIVE SUMMARY...................................................................................6

COMPANY PROFILE .....................................................................................13

INTRODUCTION ...........................................................................................18

THE ITC PROFILE...........................................................................................17

HISTORY...................................................................................................... 20

THE ITC WAY................................................................................................22

ITC CORE VALUES ........................................................................................24

MISSION & VISION ......................................................................................28

OBJECTIVE ...................................................................................................30

RESERCH METHODLOGY ..............................................................................32

DATA COLLECTION METHODS :....................................................................36

DATA ANALYSIS AND INTERPRETATION .......................................................37

HYPOTHESIS.................................................................................................40

ANALYSIS:....................................................................................................42

SUGGESTIONS & CONCLUSION....................................................................55

LIMITATIONS OF THE STUDY ........................................................................57

BIBLIOGRAPHY ............................................................................................59

QUESTIONNAIRE..........................................................................................61


EXECUTIVE SUMMARY


EXECUTIVE SUMMARY

Tobacco in India:-

India is the third producer of tobacco in the world after china. It produces 572 million kg of tobacco in 2002-2003. India only holds a major 0.7% share of the US $30 billion global import – export trade in tobacco, with cigarettes/cigarette tobacco accounting for 85% of the country, s total tobacco export.

The tobacco industry holds tremendous potential for India. For the

government, it means excise duties and export revenues, and for the country in

general, it translate into huge employment opportunity. Despite being the third

largest producer, India is only the ninth largest exporter of tobacco and tobacco

products in the world. Out of total tobacco produced in India , only 1/3 is

flue/cured tobacco suitable for cigarette manufacturing .Most of tobacco

produced in suitable for the manufacture of chewing tobacco , bides and other

chip tobacco products , which have no demand outside the country . There is

only an export demand for flue-cured tobacco, which is used for cigarette

manufacturing.

The production of tobacco is integral to the economies of a number of

Indian state and regions where it is grown. Tobacco is predominantly grown in

Andhra Pradesh, Gujarat, Karnataka and Uttar Pradesh. Andhra Pradesh and

Karnataka traditionally produce flue-cured leaf. Growing of tobacco is a very

lucrative owing to its short growing session and the profitability in relation to

other cash crops.


As can be seen from the pie chart one (below), Indian consumption of

tobacco does not follow western trends with 38% of tobacco being consumed as

bidi’s , 48% as chewing tobacco and only 14%as cigarettes that is bidis , snuff

and chewing tobacco such as ghutka , khaini and zard form the bulk (86%) of

Indians total tobacco production . this low percentage of consumption in

cigarettes of 14%compares to 90% in the rest of the world . in fact the per capita

consumption of cigarette in India nearly 1/10th of the world average .

The unique tobacco consumption pattern is a combination of tradition and

more importunately the discriminatory tax impose on cigarette over the last two

decades. Cigarette smoker pay almost 85 %( Rs 5181crore) of the total tax

revenues generated from tobacco. This discriminatory tax is justified on the

ground that it is a “luxury” tax. This is a misnomer because it is the

discriminatory tax which is causing the difference in price between cigarette

and other tobacco products.


TOBACCO CONSUMPTION AND REVENUE SPLIT 2009-10

CONSUMPTION:-


CONTRIBUTION:-

The bidi industry is relatively unorganized, rural and labor intensive in

nature. With very few large producer, they wrap the product in tends leaf and

much of the industry volume is hand rolled. The market is very regional in

character with different brands sporting different shapes and sizes dominating

the market.


COMPANY

PROFILE


Company Details

COMPANY - ITC Limited

Type- Public (BSE:500875)

Industry- Conglomerate

Founded - 1790 (as Wills & Co.)

Founders - Henery Overton Wills

Headquarters- 37, J.L. Nehru Road , Kolkata, west Bengal

Key People - Y.C. Deveshwar, Chairman Kurush Grant, Exec. Director, P. Dhobale, Exec. Director, Nakul Anand, Exec. Director, Rajiv Tandon, CFO,

Website – www. itcportal.com


INTRODUCTION


INTRODUCTION

ITC started its journey long back in 1910 under the name of ‘Imperial Tobacco Company of India Limited’. During the first few decades of its operation the focus of the company revolved around Cigarettes and Leaf Tobacco businesses. But during the seventies the company ventured into different businesses including hotels and paperboards. During the nineties the company started Agri Business Division and the new millennium saw ITC venturing into Greetings Card, Lifestyle Retailing, Information Technology, Packaged Food, Matches, Agarbattis (incense sticks) and many more. In the last few years ITC expanded its portfolio to include snacks and personal care products as well. So, over the years the company has become a truly diversified business house with interests spanning across industries. We included ITC in this document as being a FMCG leader but our basic objective is to study the marketing and advertising in Indian context – so along with FMCG, we will analyse the other business in which ITC has key presence. The ITC financial statements divide its business into four main categories which are shown in below diagram:


ITC Ltd.

Agri Business

FMCGPaper works

Hotels

FMCG business of the company is divided into following seven sub-segments:-


Cigarettes

Foods

Lifestyle Retailing

Personal Care

Education & Sanitory

Safety Matches

Agarbattis

Following diagram shows the key brands of ITC across segments:-

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol and Flake, Silk Cut and Duke.

The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution.


All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends.

ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. 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.

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur, Kolkata and Pune. These factories are known for their high levels of quality, contemporary technology and work environment.wards

ITC's Cigarettes business has been winning numerous awards for its quality, environmental management systems and product excellence.


THE

ITC

PROFILE


The ITC Profile

ITC is one of India's foremost private sector companies with a market capitalization of over US $ 33 billion and a turnover of US $ 7 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 has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part."


ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions.

ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating.

ITC employs over 24,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 4, 22,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder."


HISTORY


HISTORY

The company was founded as Wills, Watkins & Co. by Henry Overton Wills I and his partner Watkins, who opened a shop in Castle Street, Bristol in 1786. After the retirement of his partner in 1789, it became Wills & Co..

In 1826 his two sons, William Day Wills and Henry Overton Wills took over the company. The company pioneered canteens for the workers, free medical care, sports facilities and paid holidays. In 1830, the company was renamed W.D. & H.O. Wills. Their first brand was Bristol, made at the London factory from 1871 to 1974. Three Castles and Gold Flake followed in 1878 and Woodbine ten years later.

In 1901 Sir William Henry Wills formed the Imperial Tobacco Company from a merger of W.D. & H.O. Wills with seven other British tobacco companies. Imperial remains one of the world's largest tobacco companies. Embassy was introduced in 1914 and relaunched in 1962 with coupons. The last member of the Wills family to serve the company was Christopher, the great great grandson of H.O. Wills I. He retired as sales 1969.


http://en.wikipedia.org/wiki/W.D._%26_H.O._Wills

THE ITC WAY ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems.

ITC’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, Agriculture 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 are 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


ITC’S CORE VALUES


ITC’S CORE VALUES

Corporate Governance

PreambleOver the years, ITC has evolved from a single product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging, paper and paperboards and international commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole.

Since the commencement of the liberalisation process, India's economic scenario has begun to alter radically. Globalisation will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITC's governance policy recognises the challenge of this new business reality in India.

Definition and PurposeITC defines Corporate Governance as a systemic process by which companies


are directed and controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum of societal resources, we believe that the governance process should ensure that these companies are managed in a manner that meets stakeholders aspirations and societal expectations.

Core PrinciplesITC's Corporate Governance initiative is based on two core principles. These are :

Management must have the executive freedom to drive the enterprise forward without undue restraints; and

This freedom of management should be exercised within a framework of effective accountability.

ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations.

CornerstonesFrom the above definition and core principles of Corporate Governance emerge the cornerstones of ITC's governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance.

Trusteeship:ITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees.


This belief therefore casts a responsibility of trusteeship on the Company's Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfils its obligations and responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are protected.

Transparency:ITC believes that transparency means explaining Company's policies and actions to those to whom it has responsibilities. Therefore transparency must lead to maximum appropriate disclosures without jeopardising the Company's strategic interests. Internally, transparency means openness in Company's relationship with its employees, as well as the conduct of its business in a manner that will bear scrutiny. We believe transparency enhances accountability.

Empowerment and Accountability:Empowerment is an essential concomitant of ITC's first core principle of governance that management must have the freedom to drive the enterprise forward. ITC believes that empowerment is a process of actualising the potential of its employees. Empowerment unleashes creativity and innovation throughout the organisation by truly vesting decision-making powers at the most appropriate levels in the organisational hierarchy.

ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors. We believe that empowerment, combined with accountability, provides an impetus to performance and improves effectiveness, thereby enhancing shareholder value.

Control:ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed.


Ethical Corporate Citizenship:ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behaviour, both internally within the organisation, as well as in their external relationships. We believe that unethical behaviour corrupts organisational culture and undermines stakeholder value.

MISSION Market Research Activity of Navy Cut Page 27

&

VISION

VISION

Sustain ITC's position as one of India's most valuable corporationsthrough world class performance,

creating growing value for the Indian economy and the Company’s

stakeholders.


MISSION

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

delivering superior and sustainablestakeholder value

OBJECTIVEMarket Research Activity of Navy Cut Page 29

OBJECTIVE OF THE PROJECT

Primary objective


The main objective of the research activity was to find out the market

share of the ITC Cigarettes.

To find the taste preference for Navy Cut.

Find out the problem faced by the local vendors in sales.

Secondary objective

The Objective was to find out the sales of various brands of own

company, as well as competitors.

Awareness of various brands of own company and competitors to

consumers.

How do the consumers rate Navy Cut as a product?

Are the consumers willing to undergo future market research activity?


RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is considered as the nerve of the project. Without

a proper well-organized research plan, it is impossible to complete the project

and reach to any conclusion. The project was based on the survey plan. The


main objective of survey was to collect appropriate data, which work as a base

for drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic

behind the methods used in the context of a research study and it explains why a

particular method has been used in the preference of the other methods

Research design:Research design is important primarily because of the increased complexity in

the market as well as marketing approaches available to the researchers. In fact,

it is the key to the evolution of successful marketing strategies and

programmers. It is an important tool to study buyer’s behavior, consumption

pattern, brand loyalty, and focus market changes. A research design specifies

the methods and procedures for conducting a particular study. According to Ker

linger, “Research Design is a plan, conceptual structure, and strategy of

investigation conceived as to obtain answers to research questions and to

control variance.

Types of research are:

Descriptive ResearchMarket Research Activity of Navy Cut Page 33

The type of research adopted for study is descriptive. Descriptive studies are

undertaken in many circumstances when the researches is interested to know the

characteristic of certain group such as age, sex, education level, occupation or

income. A descriptive study may be necessary in cases when a researcher is

interested in knowing the proportion of people in a given population who have

in particular manner, making projections of a certain thing, or determining the

relationship between two or more variables. The objective of such study is to

answer the “who, what, when, where and how” of the subject under

investigation. There is a general feeling that descriptive studies are factual and

very simple. This is not necessarily true. Descriptive study can be complex,

demanding a high degree of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be

flexible in its approach, but a descriptive study in contrast tends to be rigid and

its approach cannot be changed every now and then. It is therefore necessary,

the researcher give sufficient thought to framing research.

Questions and deciding the types of data to be collected and the

procedure to be used in this purpose. Descriptive studies can be divided into two

broad categories: Cross Sectional and Longitudinal Sectional. A cross sectional

study is concerned with a sample of elements from a given population. Thus, it

may deal with household, dealers, retail stores, or other entities. Data on a

number of characteristics from sample elements are collected and analyzed.

Cross sectional studies are of two types: Field study and Survey. Although the

distinction between them is not clear- cut, there are some practical differences,

which need different techniques and skills. Field studies are ex-post-factor

scientific inquiries that aim at finding the relations and interrelations among

variables in a real setting. Such studies are done in live situations like

communities, schools, factories, and organizations.


Another type of cross sectional study is survey result, which has been taken by

me. A major strength of survey research is its wide scope. Detail information

can be obtained from a sample of large population .Besides; it is economical as

more information can be collected per unit of cost. In addition, it is obvious that

a sample survey needs less time than a census inquiry. Descriptive research

includes survey and fact finding enquiries of different kinds of the major

purpose. Descriptive research is description of the state of affairs, as it exists at

present. The main characteristic of this method is that the researcher has no

control over the variables; he can only report what has happened or what is

happening. The methods of research utilized in descriptive research are survey

methods of all kinds including comparative and co relational methods. The

reason for using such needs to be flexile in its approach, but a descriptive study

in contrast tends to be rigid and its approach cannot be changed ever now and

then.

Data collection methods:After the research problem, we have to identify and select which type of data is

to research. At this stage; we have to organize a field survey to collect the data.

One of the important tools for conducting market research is the availability of

necessary and useful data.

Primary data: For primary data collection, we have to plan the

following four important aspects.

Sampling Market Research Activity of Navy Cut Page 35

Research Instrument

Secondary Data - The Company’s profile, journals and various

literature studies are important sources of secondary data.

DATA ANALYSIS

&Market Research Activity of Navy Cut Page 36

INTERPRETATION

Data analysis and interpretation

1. Questionnaires

2. Pie chart and Bar chart


Questionnaires:

This is the most popular tool for the data collection. A questionnaire contains

question that the researcher wishes to ask his respondents which is always

guided by the objective of the survey.

Pie chart:

This is very useful diagram to represent data, which are divided into a number

of categories. This diagram consists of a circle of divided into a number of

sectors, which are proportional to the values they represent. The total value is

represented by the full create. The diagram bar chart can make comparison

among the various components or between a part and a whole of data.

Bar chart:

This is another way of representing data graphically. As the name implies, it

consist of a number of whispered bar, which originate from a common base line

and are equal widths. The lengths of the bards are proportional to the value they

represent.

Preparation of report:

The report was based on the analysis and presented with the findings and

suggestions. The sample of the questionnaires is attached with the report itself.

Sampling Methodology:

Details of the sampling methodology, I have made questionnaire. The one is

made for the Customer.

No. of questions in questionnaires for customer: 05

No. of question related to ITC product: 02

No. of people met during the research: 200


No. of respondents during the research: 180

Sample unit

Professionals, Business man,

Employees, Students

METHODOLOGY USED FOR THIS RESERCH

In this research survey by questioner’s method was used for collection

of data and facts.

HYPOTHESIS


HYPOTHESIS

Hypothesis is usually considered as the principal instrument in

research. Its main function is to suggest new experiments and

observations. In fact many experiments’ are carried out with the

deliberate object of tasting hypothesis


Hypothesis on topic:-

ITC ltd is the leader in the cigarette market in Nagpur and the product

Wills Navy Cut of ITC is the largest selling as compared to other

brands.

ANALYSIS

Q1. Are you a smoker or a non smoker?

1. Yes 2.No


60%

40%

Yes No

Inferences

1. Out of total surveyed sample 60 % of consumers were smokers.

2. Remaining 40 % people who were non-smokers had come to kiosks for

pan and gutkas etc.

3. Mainly young people were smokers.

Q.2 Are you 18 years or above?

1. Yes 2. No


NO10%

YES 90%

Are you 18 years and above?

Inferences

1. Almost 90% consumers were above 18 years of age.

Q3. Since when have you been smoking?

1. 18-25 2. 26-33 3. 34-Above


18-2575%

26-3320%

34-Above5%

Since when have you been smoking?

Inferences:

1. A majority of customers (75%) started smoking between 18-25 yrs of

age.

2. 20%of the customers preferred smoking at the age group of 26-33 yrs.

3. 5% of the customers started smoking at the age of 34 and above.

Q.4. which brands do you prefer?

1. Gold Flake lights/regular 2.Will's King & Navy Cut

3.Marlboro Lights & Menthol 4.Classic Ultra & Others


Gold Flake/Regular40%

Wills King & Navy Cut25%

Marlboro Lights & Menthol

20%

Classic Ul-tra &

Others

15%

Cigarette Brands

Inference

1. Gold flake lights and regular were the market leaders in preference.

2. Wills king and navy cut were the next preferred with 25% share .

3. Marlboro lights and menthol made a share of 20% in the market.

4. Classic ultra and others had 15% shares in the market.

Q.5. How do you rate Navy Cut as a product?

a) Very good b)Good


c) Average d) Did not like it

Very Good50%

Good30%

Average10%

Did not like it10%

How do you rate navy cut as a product?

Inferences

2. It is known that Navy Cut is sold as Wills and comes in one size

only rather than Gold flake which has variants as small, big ,

menthol and thus is preferred but because of its strong tobacco it

has a taboo with it.

GRAPHICAL REPRESENTATION OF MARKET SHARE


76.00%

23.50%

0.05%

ITCGPIOTHERS

MARKET SHARE OF VARIOUS PLAYERS


One amongst various objectives of research was to find out the market

share of all prominent players in the cigarette market. Since the area

of study was Nagpur city. In the research it was found that only ITC

LTD. & GPI LTD. Are the most prominent players and any other

company was not significantly present in the market.

Market share is calculated in the following manner:-

Total no. of sticks sold of the company

X 100

Total no. of sticks sold in market

Total sticks sold in the market =20654.33

Total sticks sold by ITC LTD. = 15796.33

Total sticks sold by GPI LTD. = 4858

All the figures are in thousands.

Calculation of market share of ITC LTD.

15796.33

X 100 = 76%

20654.33


Calculation of market share of GPI LTD.

4858

X 100 = 23.5%

20654.33


TOTAL SALES OF CIGARETTES SEGMENT WISE

The following graph shows segment wise sales of cigarette:-

KFTRSFT

LONGSBINGOS

0

2000

4000

6000

8000

10000

12000

14000

1845

13775

19632136

rw

KSFT :- King size Filter

RSFT :- Regular size Filter

Percentage of sales through various channels

The following graph shows that which type of outlets have maximum

sales:


PAN SHOP ; 81%

TEA STALL

; 12%

KIRANA & GROCERY; 5%

OTHERS; 2%

PAN SHOP

TEA STALL

KIRANA & GROCERY

OTHERS

SALES FROM VARIOUS CHANNELS OF RETAIL SALES.

It was necessary to find out that through which channels of retail sales

or through which type of outlets maximum sales come. It was found

that total no. of outlets which sell cigarette was 5,538. This figure

includes all type of outlets such as pan shop, Tea stall, Grocery &

Kirana shop, STD PCO booth, Restaurants etc.

FINDING AND ANALYSIS OF ITC LTD CIGARETTE

As the primary objective of caring out research was to find out the

sales of Navy Cut brand of ITC, it was necessary to find that how the


sales took place through various channels. Apart from the distribution

channel I would like to call the panatelas, tea points, restaurant, PCO

booths, grocery or kirana shops as channels of retail sales. These

various avenues are also a channel for company to its product.

ITC has been leading the Indian cigarette market for 90 year

undoubtedly. The reason of this resounding success is that ITC trees

to catch the pales of the market through such activities at regular

intervals of time. That’s why caring out this activity was a great

instance of learning for me.

Apart from keeping note of sales of Navy Cut, it was important to

find that through which type of outlets or channels maximum sales are

done. It was important to know that at these channels where amenities

were available for the consumer. E.g. electricity, TV, refrigerator,

vending machine etc, and all these factors do object the sale of that

particular outlet.

ITC has a wide product line to offer with almost 16 brands and a few

in pipelines and can be launched anytime. It was important to study

that which branch enjoys how much share in total cumulative sales of

ITC. Ltd.

The finding of the report were as follows:

Sales of various Brands of ITC ltd.

Name of Brand Sales Figures in thousands


Bristol standard 77

Bristol filter 400

Benson & Hedges Spl. Ft 4.08

Benson & Hedges Lights 19.86

Classic Regular 17.77

Classic Milds 30.36

Gold flake Kingsize 1019

Gold flake Light 36.99

Gold flake Premium 5740.88

Honey dew 28

India Kings 26.34

Wills Navy cut 583.65

Wills Silk cut 35.09

Wills Filter 4177.31


Bristo

l stan

derds

bristo

l filte

r

Benson an

d Hedges S

pl. Ft.

Benson an

d Hedges L

ights

Classic

Regular

Classic

Mild

s 30.36

Goldflake Kingsi

ze

Goldflake Lig

hts

Goldflake Pre

mium

Honey Dew

India Kings

Wills

Nav

ercut

Wills

Silku

t

Wills

Filte

r0

1000

2000

3000

4000

5000

6000

7000

77

4000

4.08 19.86 17.77 30.36

1019

36.99

5740.88

28 26.34583.65

35.09

4177.31


SUGGESTIONS

&

CONCLUSION


SUGGESTIONS & CONCLUSION

Research and distribution of various brand needs to be improved

because on random visits made. Wills Navy cut and Bristol were in

out of stock situation at some outlets.

Salesman visits in areas of Central Avenue, Itwari and Maskasath

should be made regular.

Since advertisement and promotion from any kind of media has

been banned number of facing of packets of all brands should be

increased at the retail outlets.

ANSWER TO HYPOTHESIS

The finding of the report shows that ITC is the market leader with

maximum percentage in sales and the reach and distribution of its

products is good. ITC has penetrated into maximum number of outlets

and thus ensures good sales. Thus the hypothesis is correct that ITC is

the market leader, but Wills Navy Cut does not have the market

leadership compared to Gold Flake of ITC itself.


LIMITATION


LIMITATIONS OF THE STUDY

Every study has certain limitations. In my study, also there were certain

limitations, which I could not able to solve.

1. The research was conducted for Nagpur region.

2. Time factor was also important for me. I had only 50 days to complete

my research, for which a full-fledged report was insufficient for me.

3. The customer filled the questionnaire mostly in careless manner, so it was

difficult to make them hold for time.

4. I found general customers who can give ideal time to answer my

questions; and was conducted in various sectors of Nagpur by the

promoters.

5. The sample size is also very small which represent my research on

consumer behavior.

6. The responses of outlet owners and respondents may be biased.

7. Due to hiding of facts the figures can manipulative.

8. Due to reluctance in supplying data, data collection may be objected.

My study is not recognizable in whole INDIA as well as outside Nagpur due

to the above limitations and less area coverage.


BIBLIOGRAPHY


BIBLIOGRAPHY

www.itcportal.com

www.wikipedia.com


http://www.wikipedia.com/

QUESTIONNAIRE


Consumer survey Questionnaire

Q.1. Are you a smoker or a non smoker?

a) Smoker

b) Non Smoker

Q.2. Are you 18 years or above?

a) Yes

b) No

Q3. Since when have you been smoking?

a) 18-25

b) 26-33

c) 33-Above

Q.4. which brands of cigarette do you prefer?

a) Gold Flake lights/regular

b) Will's King & Navy Cut

c) Marlboro Lights & Menthol

d) Classic Ultra & Others


Q.5. How do you rate Navy Cut as a product?

d) Very good

e) Good

f) Average

g) Did not like it


THE END


Date post:	09-Feb-2015
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