INTERNSHIP PROJECT REPORT

On

MARKETING STRATEGIES OF ITC LIMITED

Submitted By –

Name: Ovais Ur Rehman Khan

Batch & Section: WA2 (2011-2013)

Student ID: D1113WSISBEPGP10085 (NOI-4A-CT-3256)

Area of Research: Marketing

Internship start and finish dates: 12th Dec 2011 to 27th Jan 2012

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ACKNOWLEDGEMENT

With profound sense of gratitude and regard, I convey my sincere thanks to my

guide and mentor, for their valuable guidance and the confidence they instilled in

that helped me in successful completion of the project report.

I wish to express my sincere gratitude to my project guide Prof. Deepti Sharma

under whose guidance the study was undertaken. Without him guidance at each

stage of the project study, the task could not have been accomplished.

Specially, I would like to thank my company guide Mr. Amardeep (Marketing

Manager), ITC Ltd., who has been a constant source of inspiration for me during

the completion of this project. He gave me invaluable inputs during our endeavor to

complete this project.

I am indebted to all staff members of ITC Limited. for their valuable support and

cooperation during the entire tenure of this project. Not to forget, all those who have

kept our spirits surging and helped me in delivering my best

Last but most important I thank ‘God Almighty’ above who guided me and

bestowed me with the wisdom and an opportunity to carry out the project.

Last but not the least I am ever grateful to my friends for their help and support in

completing my project.

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TABLE OF CONTENT

S. No. Topic

1 Introduction to the Industry

2 Introduction to the Company

3 Research Methodology

4 Significance of the Study

5 Research Methodology

6 Sampling Methodology

7 Limitation of the Study

8 Facts and Finding

9 Data Analysis and Interpretation

10 Recommendation

11 Conclusion

12 Bibliography

13 Annexure

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EXECUTIVE SUMMARY

This project titled “Marketing Strategies of ITC Limited”. The researcher has

talked about the products and services offered by the company and the satisfaction

of customers with them.

This project gives a brief introduction to the ITC Ltd. also discuss the rapidly

growing personal care sector in India, and various other points of importance. In the

introduction to the company, the vision, mission, corporate governance of the

company is discussed along with recent developments as well as its importance in

India.

This project titled “Marketing Strategies of ITC Limited” had detailed study. The

first chapter I have given in this project is Introduction to the industry in which I

have included on personal care industry, global market and the future of the personal

care industry.

The second chapter includes the Introduction about the company. I have given brief

of the ITC Limited vision, mission, corporate governance and all about ITC Limited.

In the third chapter I have given in this project includes the Research Methodology

in which I have covered the objective of the project, Scope of the study, significance

of the study, research design, sample methodology and limitation of the project

which i have faced.

In the fourth chapter I have included the major fact and findings of the project i.e.

marketing strategies adopted by ITC Limited. Major products of the ITC, product

profile and descriptions which ITC limited deals.

Fifth chapter data analysis and interpretation I have covered the diagrammatical data

and conclusions derived from them.

Lastly the recommendation and conclusion describe the researcher’s personal

conclusions of the research.

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INTRODUCTION TO THE INDUSTRY

Personal care products are generally used for personal health and hygiene. It

includes products like body talc, body scrub, tooth paste, tooth brush, tongue

cleaner, tooth powder, bathing salts, bathing gel, essential oils, moisturizer, skin

creams, face wash, hair oil, hair shampoo, hair conditioner, soap, nail and cuticle

care products. The personal care product market was a success on all counts in

2005-2006 with good performances from each of the Big 5 markets. In recent years,

consumer health awareness has slowly been increasing and this has led people trying

to take better care of themselves.

The major demand is for the products that are of basic need for the consumers like

soap, shampoo, hair oil etc. The personal care products industry consists of four

major sub-sectors manufacturing a range of products. These sub-sectors and their

products are highlighted below:

Face Care Products- Face is the reflection of an

individual’s physical appearance. Generally, the

beauty of a person is described by the look of one’s

face. Thus, to enhance the beauty of the face people

use face care products whose market is growing at

double digits. The industry manufactures products like

astringent, face cream, face scrub, face toner,

moisturizer, cleanser, etc. Some of these products are

used for clarification and purification of the facial skin from dust and harmful rays

of the sun while others are used for toning.

Hand and Foot Care Products- As the name suggest these products are used to

enhance the beauty of hands and feet. The hand and foot care product market

segment, grew 5.9% in 2005 to a total of 338.2 million dollars, and included many

successful product introductions. These included herbal and organic products, as

well as products for youthful skin. Men are also starting to take better care of

themselves, resulting in growth in the men’s foot care products market segment.

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Hand and foot care products can be broadly categorised into cuticle care products,

foot scrub, hand and foot cream, nail care products etc. The diagram below shows

the various market segments:

Global Market (segment) share in %

Hair Care Products- Hair care was the largest market segment, both in 2004 and in

2005 with sales reaching 350 million dollars. The price war has had its impact on the

shampoo and styling categories. Sales in hair coloring products has stabilized while

hair conditioners and hair repair products, showed significant growth. Consumers

are willing to buy special, more costly, products because these products are used for

many purposes like hair cleansing, hair conditioning and hair coloring. Some

important hair care products are mentioned below:

Hair Shampoo

Hair Conditioner

Hair Oil

Hair Styling Gel

Hair Glaze

Hair Spray

Hair Colors

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Cosmetics- The global cosmetics market continues to

benefit from a combination of strong macroeconomic

trends creating opportunities for new product niches.

The strongest growth in the global cosmetics market in

2005 was derived from developing regions such as

Eastern Europe and Latin America and key markets in

Asia-Pacific, with expansion linked to large

populations, rising disposable incomes, modernising retail and distribution networks

and increased industry awareness amongst consumers. Cosmetics are items to

enhance or protect the appearance or odor of the human body. The products included

in this category are:

Eye makeup products

Face makeup products

Lip makeup products

Personal Care industry witnessed 23 per cent rise in TV advertising during 2007

compared to 2006 in India.

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Personal Hygiene' segment garnered a high share of 43 per cent of overall Personal

Care industry advertising on TV during 2007 in India.

Share of categories of Personal Care Industry in India.

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Future Prospects

The future for the personal care products industry is very prosperous, which can be

analyzed by the rising growth trends of the industry. But there are many concerns

related to the chemicals and toxins used as ingredients for making personal care

products. These substances can affect our health and the environment also. They are

absorbed through our skin and can enter our bloodstream thereby affecting our

kidney and liver, and thus can have very harmful effects on our bodies and when

these products are washed off from the body, they are released in to the

environment.

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INTRODUCTION TO THE COMPANY

ITC is one of India's foremost private sector companies with

a market capitalisation of nearly US $ 18 billion and a

turnover of over US $ 5.1 Billion. ITC is rated among the

World's Best Big Companies, Asia's 'Fab 50' and the

World's Most Reputable Companies by Forbes magazine, among India's Most

Respected Companies by BusinessWorld and among India's Most Valuable

Companies by Business Today. ITC ranks among India's `10 Most Valuable

(Company) Brands', in a study conducted by Brand Finance and published by the

Economic Times. ITC also ranks among Asia's 50 best performing companies

compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty

Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information

Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other

FMCG products. While ITC is an outstanding market leader in its traditional

businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is

rapidly gaining market share even in its nascent businesses of Packaged Foods &

Confectionery, Branded Apparel, Personal Care and Stationery.

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

to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of

inspiration "a commitment beyond the market". In his own words: "ITC believes

that its aspiration to create enduring value for the nation provides the motive force to

sustain growing shareholder value. ITC practices this philosophy by not only driving

each of its businesses towards international competitiveness but by also consciously

contributing to enhancing the competitiveness of the larger value chain of which it is

a part."

ITC's diversified status originates from its corporate strategy aimed at creating

multiple drivers of growth anchored on its time-tested core competencies:

unmatched distribution reach, superior brand-building capabilities, effective supply

chain management and acknowledged service skills in hoteliering. Over time, the

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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 24,000 people at more than 60 locations across India. The

Company continuously endeavors to enhance its wealth generating capabilities in a

globalising environment to consistently reward more than 3,75,000 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."

VISION OF THE COMPANY

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

class performance, creating growing value for the Indian economy and the

Company’s stakeholders.

MISSION OF THE COMPANY

To enhance the wealth generating capability of the enterprise in a globalising

environment, delivering superior and sustainable stakeholder value.

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ITC’s CORE VALUES

ITC's Core Values are aimed at developing a customer-focused, high-performance

organisation which creates value for all its stakeholders:

Trusteeship

As professional managers, we are conscious that ITC has been given to us in "trust"

by all their stakeholders. ITC actualise stakeholder value and interest on a long-term

sustainable basis.

Customer Focus

ITC is always customer focused and will deliver what the customer needs in terms

of value, quality and satisfaction.

Respect For People

ITC is result oriented, setting high performance standards as individuals and teams.

ITC simultaneously respect and value people and uphold humanness and human

dignity. ITC acknowledge every individual brings different perspectives and

capabilities to the team and that a strong team is founded on a variety of

perspectives. ITC want individuals to dream, value differences, create and

experiment in pursuit of opportunities and achieve leadership through teamwork.

Excellence

ITC do what is right, do it well and win. ITC will strive for excellence in whatever

they do.

Innovation

ITC will constantly pursue newer and better processes, products, services and

management practices.

Nation Orientation

ITC is aware of their responsibility to generate economic value for the Nation. In

pursuit of their goals, ITC will make no compromise in complying with applicable

laws and regulations at all levels.

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CORPORATE GOVERNANCE

Preamble

Over 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 Purpose

ITC 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 Principles

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

i. Management must have the executive freedom to drive the enterprise

forward without undue restraints; and

ii. This freedom of management should be exercised within a framework of

effective accountability.

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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.

Cornerstones

From 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 fulfíls 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.

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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.

THE ITC CODE OF CONDUCT  

Applicable to all directors, senior management and employees of the Company

Preamble

 ITC’s Code of Conduct was circulated to the employees more than five years back

and is posted on the Company’s corporate website. This Code has now been re-

drafted for better presentation. This Code is derived from three interlinked

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fundamental principles, viz. good corporate governance, good corporate citizenship

and exemplary personal conduct.

Philosophy

ITC is a professionally managed organisation and the core value underlying our

corporate philosophy is "trusteeship". We believe this organisation has been handed

to us by the various stakeholders in "trust" and we as professionals are the "trustees"

of these stakeholders. It is therefore our responsibility to ensure that the organisation

is managed in a manner that protects and furthers the interests of our stakeholders.

We recognise society as an important stakeholder in this enterprise and therefore it

is part of our responsibility to practise good corporate citizenship.

It is also our belief that in order to serve the interests of our stakeholders in

perpetuity, we must build ITC into an institution whose dynamism and vitality are

anchored in its core values.

Corporate Governance Policy

The Corporate Governance Policy is the apex level instrument guiding conduct of

the affairs of the Company and clearly delineates the roles, responsibilities and

authorities of the key entities in the governance structure of the Company. This

Code forms an integral part of the Company’s Governance Policy. The directors,

senior management and employees must adhere to the Corporate Governance Policy

of the Company.

Good Corporate Citizenship

In the conduct of the Company’s business, the practice of good corporate citizenship

is a prerequisite and embraces the following:

Dealing with People in the Organisation

In dealing with each other, directors, senior management and employees shall

uphold the values which are at the core of our HR Philosophy - trust, teamwork,

mutuality and collaboration, meritocracy, objectivity, self respect and human

dignity. Indeed, these values form the basis of our HR management systems and

processes. In selection and recruitment, while meritocracy will be a prime criterion,

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managers will scrupulously consider all factors that go towards securing the interests

of the Company. ITC will focus on meritocracy, equity and upholding of Company

values in all people processes including performance management systems,

appraisals, remuneration and rewards.

A Gender Friendly Workplace

As a good corporate citizen, ITC is committed to a gender friendly workplace. It

seeks to enhance equal opportunities for men and women, prevent/stop/redress

sexual harassment at the workplace and institute good employment practices.

Sexual harassment includes unwelcome sexually determined behaviour such as:

unwelcome physical contact; a demand or request for sexual favours; sexually

coloured remarks; showing pornography and any other unwelcome physical, verbal

or non-verbal conduct of a sexual nature.

ITC maintains an open door for reportees; encourages employees to report any

harassment concerns and is responsive to employee complaints about harassment or

other unwelcome and offensive conduct. A committee has been constituted to

enquire into complaints and to recommend appropriate action, wherever required.

ITC demands, demonstrates and promotes professional behaviour and respectful

treatment of all employees.

Relationships with Suppliers and Customers

All directors, senior management and employees shall ensure that in their dealings

with suppliers and customers, the Company’s interests are never compromised.

Accepting gifts and presents of more than a nominal value, gratuity payments and

other payments from suppliers or customers will be viewed as serious breach of

discipline as this could lead to compromising the Company’s interests.

Legal Compliance

It is the Company’s policy to comply fully with all applicable laws and regulations.

Ensuring legal and regulatory compliance is the responsibility of the Chief

Executives of the Businesses and the Divisional Management Committees. The

Company cannot accept practices which are unlawful or may be damaging to its

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reputation. Divisional Management Committees must satisfy themselves that sound

and adequate arrangements exist to ensure that they comply with the legal and

regulatory requirements impacting each business and identify and respond to

developments in the regulatory environment in which they operate. In the event the

implication of any law is not clear, the Company’s Legal Department shall be

consulted for advice.

Health and Safety

The Company attaches great importance to a healthy and safe work environment.

ITC is committed to provide good physical working conditions and encourages high

standards of hygiene and housekeeping. Particular attention should be paid to

training of employees to increase safety awareness and adoption of safe working

methods, particularly designed to prevent serious or fatal accidents.

Environment Policies

The Company believes that commitment to sustainable development is a key

component of responsible corporate citizenship and therefore deserves to be

accorded the highest priority. Accordingly, the Company is committed to Best

Practices in environmental matters arising out of its business activities and expects

each business to fully demonstrate this commitment.

In addition to complying with applicable laws and regulations, Businesses must

establish procedures for assessing the environmental effects of their present and

future activities. They should adopt Best Practices in their environmental policies

and procedures.

Personal Conduct

All directors, senior management and employees have the obligation to conduct

themselves in an honest and ethical manner and act in the best interest of the

Company at all times. They are expected to demonstrate exemplary personal

conduct through adherence to the following:

Avoidance of Conflict of Interest

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All directors, senior management and employees must avoid situations in which

their personal interest could conflict with the interest of the Company. This is an

area in which it is impossible to provide comprehensive guidance but the guiding

principle is that conflict, if any, or potential conflict must be disclosed to higher

management for guidance and action as appropriate.

Transparency and Auditability

All directors, senior management and employees shall ensure that their actions in the

conduct of business are totally transparent except where the needs of business

security dictate otherwise. Such transparency shall be brought about through

appropriate policies, systems and processes, including as appropriate, segregation of

duties, tiered approval mechanism and involvement of more than one manager in

key decisions and maintaining supporting records. It shall be necessary to

voluntarily ensure that areas of operation are open to audit and the conduct of

activities is totally auditable.

Protection of Confidential Information

No director, senior management and employee shall disclose or use any confidential

information gained in the course of employment/ association with the Company for

personal gain or for the advantage of any other person. No information either

formally or informally shall be provided to the press, other publicity media or any

other external agency except within approved policies.

Company Facilities

No director, senior management and employee shall misuse Company facilities. In

the use of Company facilities, care shall be exercised to ensure that costs are

reasonable and there is no wastage.

Leading by Example

The organisation’s directors and senior management set the professional tone for the

Company. Through both their words and their actions, the organisation’s leadership

conveys what is acceptable and unacceptable behaviour. ITC’s directors, senior

management and employees must constantly reinforce through their actions and

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behaviour that ITC’s stated beliefs of responsible corporate citizenship are rooted in

individual conviction and personal integrity.

Waivers

Any waiver of any provision of this Code of Conduct for a director, senior

management or employee must be placed for approval before the Company’s Board

of Directors/ Corporate Management Committee, as appropriate.

Non Adherence

Any instance of non-adherence to the Code of Conduct / any other observed

unethical behaviour on the part of those covered under this Code should be brought

to the attention of the immediate reporting authority, who shall in turn report the

same to the Head of Corporate Human Resources.

Senior management for the purpose of this Code would mean the following:

- Managers at Grade ‘A’ & its equivalent, and above

- Divisional & SBU Chief Executives

- Corporate HODs

This Code of Conduct, as adopted by the Board of Directors of the Company

on 26th March, 2005, was amended on 29th March, 2006.

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RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY

Objective One:

To analyze the marketing strategies of ITC Limited used to market their

personal care products in extremely competitive environment of industry.

Objective Two:

To study and analyse the factors influencing a customer to buy personal care

products in competitive environment of industry.

Objective Three:

To identify the customer perception with respect to features required in their

personal care products.

SCOPE OF THE STUDY

The study will be limited to ITC personal care product, marketing strategy and also

consumer survey about the personal care products. The survey was limited to the

geographical area of New Delhi. The sample size was limited to 50 respondents.

SIGNIFICANCE OF THE STUDY

(i) Significance of the Industry:

The study can benchmark the factors behind the success of ITC Limited in the

Indian FMCG market. This will help them achieve sales volume and higher market

share in the Indian personal care products.

(ii) Significance of the Researcher:

I have gained lot of experience while doing this project. The project had helped me

to study the marketing strategies of the ITC Limited and to interact with the

Managers and Executive of the ITC Limited. To interact with the customers of the

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different religions while filling questionnaire for my study. This will help me in my

future career.

RESEARCH DESIGN

The research was probability based exploratory research.

Primary Data

Internal data from companies offices and employees

Interviews of Marketing Managers

Secondary Data

Organization Website

Internet

Data Collection Tools

Questionnaires (Open-ended and Close-ended)

Personal Interviews

SAMPLING METHODOLOGY

(i) Sampling Unit: Customers and Employees of ITC Limited

(ii) Sampling Technique: Random Sampling

(iii) Sampling Area: New Delhi

(iv) Sample Size: 50 Customer

LIMITATION OF THE STUDY:

The sample size was limited to 50 customers

The survey was limited to South Delhi.

Biased opinions of the customers are limiting factors for the research.

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Needs, wants and demands

Products (Goods, service and ideas)

Value, cost and satisfaction

Exchange and Transaction

Relationships and networks

Markets

Marketers and prospects

FACTS AND FINDING

MARKETING STRATEGIES OF ITC LIMITED

Marketing has been defined in various ways, but it can be defined as:

A social and managerial process by which individuals and groups obtain

what they need and want through Creating, Offering, Exchanging Products

of value with others. There are certain elements on which marketing and this

particular definition of marketing rests. They are linked to each other and they

are complimentary one giving rise to the other. Their relationship is shown in

a diagrammatic form below.

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Marketing is indeed an ancient art; it has been practiced in one form or the

other. Marketing is considered to be most important of all management

functions in any business. The basic task of marketing is the delivery of a

total offer to the consumer in such a manner that:-

a) The other fulfills the needs of the consumer.

b) The terms and attributes of the offer are acceptable.

c) All the organizational goals, including profits, are achieved in the

process.

Firstly, place, it chooses the product that would meet the identified needs of

the chosen consumer/consumer group. Secondly, it performs various

distribution functions like transportation, warehousing, channel management,

etc. so that the product can conveniently reach the consumer. Thirdly, the firm

carries out a number of promotion measures like personal selling, advertising

and sales promotional programmes with a view to communicating with the

consumer and promoting the product. Lastly, the firm uses the pricing

mechanism to achieve the consummation of the marketing process, striking

the level of price that is acceptable to the firm as wall as to the consumer. All

activities and programmes which a business firm designs and carries out in its

effort towards winning customers, relate to one or the other of the four

elements -product, distribution, pricing and promotion. These four elements

constitute the Marketing Mix of the firm.

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MARKETING MIX VARIABLES/FOUR Ps OF MARKETING & THEIR

SUB-ELEMENTS

Product Variables

Product mix and product line

Design, quality, features, models, style, appearance, size, and warranty of

products

Packaging, type, materials, size, appearance and label

Branding and trade mark

Merchandising

Service, pre-sale and after-sale

New products

Place Variables

Channels of distribution, types of intermediaries, channel design, location

of outlets, channel remuneration and dealer-principal relations

Physical distribution, transportation, warehousing, inventory levels, order

processing, etc.

Price Variables

Pricing policies, levels of prices, levels of margins, discounts and rebates

Terms of delivery, payment terms, credit terms and instilment facilities

Resale price maintenance

Promotion Variables

Personal selling: objectives, level of effort, quality of sales force, cost

level, level of motivation

Advertising: media mix, budgets, allocations and programmes

Sales promotional efforts, display, contests, trade promotions

Publicity and public relations

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Assembling and managing the marketing mix is the main part of the

marketing task.

SOME OTHER VARIABLES OF MARKETING

Customer Variables

Number of customers

Location of the customers

Purchasing power of the customers .Buying behaviour

Habits of purchase

Personality traits and attitudes

Lifestyles and needs

Brand awareness and brand loyalty

Competition Variables

Structure of the industry

Nature and intensity of the competition, Buyer's market or the Seller's

market? Or moderately competitive?

Number of competitors, their size, capacity and territory of operation.

Products and services offered by the competitors.

Competitor's sales level in each market segment/product

Competitor's strengths and weaknesses -in products, costs, logistics,

channel, sales force, promotion and marketing organization

Competition from substitute products

Trade Variables

Structure of the trade

Type of intermediaries, their number and strength

Trade practices

Services provided by the trade

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Motives and attitudes of the intermediaries

Extent of sophistication of the trade

Environment Variables

Level of technology

Government regulation on products, prices, distribution. Etc

Controls on trade practices

Economic conditions in the country

Geography and climate

Culture and traditions

Law and politics

Attitudes of the public and the media

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INTERRELATIONSIP BETWEEN MARKETING MIX AND

ENVIRONMENTAL VARIABLES

Since the marketing process is essentially an interaction between the

marketing mix and the environment I assembling and managing the marketing

mix becomes the crux of the marketing task. In fact many marketing scholars

and marketing practitioners view marketing as synonymous with the

assembling and operating of the marketing mix. Assembling the marketing

mix elements into a winning marketing programme is however, not an easy

job. It involves many crucial decisions relating to each of the elements

product, price, channel and promotion. Decisions are also required on the

interrelationships of the elements.

Product

A product is not a mere non-living object; it is not a mere assemblage of

matter -physical and chemical. Utility alone is not the function of a product. A

product means something more than a physical commodity. People associate

meanings with products; they derive satisfaction from the non-utility aspects

of the products as well. Products have an identity or a personality of their

own. The utility aspect of the product is but one component of the product

personality.

Theodore Levitt puts it succinctly when he says: “Products are almost always

combinations of the tangible and intangible... to the buyer, a product is a

complex cluster of value satisfactions. The generic thing by itself is not the

product; it is merely... the minimum that is necessary at the outset to give the

producer a chance to play the game. It is the playing that gets the results. A

customer attaches value to a product in proportion to its perceived ability to

help solve his problems or meet his needs. All else is derivative...The product

is the total package of benefits the customer receives when he buys it...The

customer never just buys the generic product...He buys something that

transcends and what that something is, helps determines from whom he'll buy,

what he'll pay.”

28

Product definition concerns the various properties, which are designed into

the manufacturer's product line and the assortment of models and items, i.e.,

the product mix, which makes up his total product offering. The conditions

and circumstances, which need to be considered in formulating this definition,

can be divided into those, which influence the development of new products,

those, which relate to the product mix, and those, which stem from the

attributes of the company itself.

New-product development involves several stages, beginning with the

generation of new-product ideas and their appraisal to eliminate those

unworthy of further consideration. Products, which warrant additional

investigations are identified and technical work is begun on them along with,

appropriate economic and market research. During this stage the physical

properties of the new product are determined, small quantities are produced in

the laboratory or pilot plant, preliminary investigation of patent rights is

begun, and initial estimates of production costs are made. If initial

expectations are fulfilled, development of the product proceeds through

process research, prototype testing, and commercialisation.

The major determinants of the product mix are technology, competition,

operating capacity, and market factors. Accelerating technology is

undoubtedly the basic force affecting the product mix of the individual

company, with competitive pressures running a close second. In some

companies, under-utilised capacity is an -important influence along with such

market factors as shits in the product mix of customers, changes in the

availability and / or cost of materials, new developments in manufacturing

processes, changes in the level of business activity, and government controls.

The type and variety of products, which are appropriate for a company, are

also a function of the firm's inherent strengths and weaknesses. Those

attributes of accompany with the most direct bearing on product definition are

the strength of its marketing performance, the extent of its production

capacity, the quality of its R&D effort, and the abilities of its executive group.

29

The amount of financial slack available may also be an important influence on

product definition.

Price

Price is the exchange value of a product. Pricing is undoubtedly one of the

most important decision areas of marketing. Price and sales volume together

decide the revenue of any business. As the sales volume in itself is dependent

on price, pricing really becomes the key to the revenue of the business.

Pricing is crucial to profits as well. Pricing becomes a vital decision area on

account of certain other factors besides its crucial role in bringing revenues

and profits to the business.

Price is not only the factor influencing the demand for industrial goods and

the patronage of industrial buyers; it is an indispensable part of the marketing

strategy. A price that is too high invites both competition and buyer

resistance. While a price that is too low may well competition, it will also

deflate profits and may incur losses.

In many instance the prices of industrial goods fall into patterns that are fairly

uniform throughout an industry. Nevertheless, a marketer mist decide whether

or not to follow industry patterns, and if not, how much to deviate from them.

These decisions must be made against a background of environmental forces

including competition, changing costs and shifting patterns of demand.

To price the equipment the industrial marketer must know the type of

competition in his industry, the nature of his costs, and the way in which the

demand for his product behaves.

The typical industrial market is composed of a small group of large firms, a

more numerous group of medium-sized firms, and often a group of very small

companies, which sell mainly on the basis of price. The first two groups are

likely to subscribe to the philosophy of responsible competition. However, the

nature and intensity of competition tends to change with the changes in the

lifecycle of products. These conditions often give rise to a phenomenon

known as price leadership.

30

The nature and pricing implications of costs tend to change with different

time periods production cycle, equipment use cycle or product life cycle.

Different types of costs-controllable or non-controllable, incremental or sunk,

overhead or direct, separable, and joint -exercise different influences on

pricing.

The derived nature of demand for industrial goods affects its behaviour in

response to price change. While it is theoretically possible to stimulate

demand for industrial products by lowering their price, increased sales will

result only to the extent that prices of related consumer goods can be reduced

sufficiently to stimulate their sales.

Place

Distribution channels playa vital role in the successful marketing of most of

the products. The distribution channel is an extension of the manufacturer into

the markets he plans to supply. The manner in which products and services

are made available through it is a function of its structure as well as the

relationship, which prevails among its different elements or intermediaries.

The basic choice is whether this structure will be composed of captive

(owned) or independent units.

Since a distribution channel exists for the purpose of moving merchandise and

making services available, channel strategy also involves planning of a

logistical nature. How efficiently the channel structure functions as the

delivery system depends in large part on the quality of logistical planning and

its execution.

Distributors are the most numerous and the most important group of

middlemen handling industrial goods. Industrial users find it desirable to buy

from the distributor because he usually can give quick delivery, his use saves

paper work in buying, he can sometimes offers low prices, adjustments are

easier to negotiate, he may enable the buyer to save freight costs, and he is a

good source of trade information. The patronage of the distributor thus comes

mainly from (1) the firm too small to buy direct, (2) the large firms for

31

emergency needs and items bought in small amounts, or as means of reducing

inventory.

Manufacturer's and sales agents are useful outlets to producers of a single

item or a narrow line of articles, to the manufacturer with limited finances,

and to all kinds of manufacturers in areas where demand is thin or trade

contracts are lacking. Advantages in using agents are that their costs are often

relatively low and the producer incurs no costs unless sales are made, they

offer contracts to a firm entering a new market, and their sales service is more

specialised and intense than that of the distributor. But the manufacturer who

markets through agents loses control over his marketing operations, lacks

flexibility in bidding, incurs excessive costs when volume is large, loses

speed of delivery, quality of technical service, and selling drive in comparison

with his own sales force. Brokers and commission merchants are useful

mainly in special situations.

Manufacturer's branch houses are of two types those that carry stocks and

those that do not. Through the branch house, the manufacturer gets better

sales service, more adequate and representative stocks, and control of

technical and maintenance service. But branch houses are often so costly as to

be prohibitive.

Promotion

The crucial event in the marketing process is the sale. Within the context of

the corporate mission, every component of the marketing strategy is intended

to bring it about. But 1t must be brought about in a way, which assures

customer satisfaction. This places a special burden on advertising, personal

selling, sales promotion, and to a lesser extent, public relations, which are the

principal avenues through which direct contact with the customer is made.

Each has a unique contribution to make both in generating sales and in

sustaining customer patronage.

The task of the industrial advertiser is complicated by the multiple buying

influence characteristics of many industrial firms, the derived nature of

demand for industrial goods, and the fact that many materials, parts, and

32

components lose their identity in the end product. These conditions influence

the role of advertising in the firm's promotional strategy, which in turn has a

bearing on the purposes which advertising will be called upon to serve. While

these purposes vary with the firm and the market situation, several are fairly

common. They are to inform, to identify the customers, to win recognition, to

support salesman, to motivate distributors, and to stimulate demand.

The most commonly used media for disseminating advertising messages and

the sales appeal which they contain are trade journals and catalogues,

followed by direct mail, exhibits, general publications, and distributor aids.

The choice of media is determined by the need to reach the proper personnel

in the customer's organization with the proper frequency with proper overall

impression.

The chief limiting factor underlying factor underlying the advertising effort is

the amount of budgetary support management decides to give it. Sometimes

this is determined through the application of a fixed percentage to either last

year's sales or anticipated sales.

Publicity is commonly regarded as a form of advertising, although it performs

a slightly different function and is not paid by the sponsor. The most effective

way to create publicity is to generate newsworthy situations and events.

Advertising agencies are probably used less by industrial than by consumer

goods marketers to assist in their advertising and publicity. However, this

appears to be changing as: the number of agencies specialising in industrial

accounts increases and the number, which offers promotional services on a

job-shop basis, continues to grow.

In selling products, the promotion mix mostly consists of Direct Selling and

advertising. Being high value items and complex in function, personal contact

with the customer is essential to convince him of the product's quality and

capability.

It is not so, however, with consumer products. In spite of this many consumer

product companies use Direct Selling in concert with advertising, to get

consumers to try their brand and switch over to it. But direct selling cannot

33

substitute for advertising; it can only be used tactically to intensify the

marketing effort, mainly because it is expensive.

MARKETING COMMUNICATIONS

FMCG - Cigarettes business has an internal code for advertising/ promotions,

which is reviewed every year, and whenever any new law/rules are introduced. The

internal code is more stringent than other codes. It not only comprehensively covers

all aspects of other codes but also encompasses areas not covered by them. The

requirements under Advertising Standards Council of India (ASCI) code of conduct,

which is now the Government of India's Governing code, are applied across the

business.

All laws related to the product category such as The Cigarettes (Regulation of

Production, Supply and Distribution) Act, 1975, The Cigarettes and Other Tobacco

Products (Prohibition of Advertisement and Regulation of Trade and Commerce,

Production, Supply and Distribution) Act, 2003, The Cable Television Networks

(Regulation) Act, 1995, and The Cinematography Act, 1952, which have provisions

for regulations of advertising/promotions in India are strictly followed.

Any State Government laws on advertising/promotion for ITC's products are

completely adhered to. There is on-going review of these codes to ensure

compliance.

The FMCG Cigarettes business sells a legal product, which is not banned in any

market where it sells. Tobacco products are often a subject of public debate.

Stringent quality standards/systems are established to respond to queries/ concerns

and are known to all stakeholders.

The Foods business voluntarily follows the ASCI (Advertising Standards Council

of India) Code for all Marketing Communication.

Every time a new Marketing Communication is created, it is checked for compliance

with the ASCI Code. In addition, a monthly compliance validation is done by

respective managers.

The Foods business does not sell any product which is 'banned in certain markets' or

is 'the subject of stakeholder questions or public debate'.

34

In the Paperboards & Specialty Papers, Packaging & Printing and Greeting,

Gifting and Stationery businesses, all codes/ standards relating to Standard

Weights & Measures Rules are followed. These requirements are reviewed on a

monthly basis for compliance. None of the products from these businesses is 'banned

in certain markets' or subject of stakeholder concern or public debate.

In the Hotels business, marketing communication is governed by self-regulation

and guided by Indian Society of Advertisers (ISA) Rules and guidelines.

It is reviewed quarterly to ensure compliance with relevant rules and internal

guidelines.

The Hotels business does not sell any product banned in the market nor is the

subject of stakeholder questions or public debate.

Agri-business has not advertised its product and services in a major way and no

voluntary code is therefore required to be followed. Communications and

promotions done so far have been in accordance with the law of the land and have

been duly approved by the Legal Department of the Company.

The business is in the process of establishing a voluntary code, as it has recently

initiated advertising its retail business.

The Leaf Tobacco business provides Corporate Advertisements (e.g. 'With best

compliments from ITC Ltd'. etc.) to souvenirs published by certain organisations.

This is in accordance with the provisions of Cigarettes and Other Tobacco Products

Act (Prohibition of Advertising and Regulation of Trade and Commerce,

Production, Supply and Distribution) Act, 2003. However, the business does

advertise its Organic Agri-inputs. The business also publishes Corporate

Advertisements (stating that ITC-ILTD is India's leading tobacco exporter and

providing contact details) in reputed International Tobacco Journals.

No product advertisement relating to tobacco is published by the business. The

business also maintains a website, 'itc-iltd.com', which provides the details of

Tobaccos grown in different regions of India. All the advertisements published in

various fora are reviewed by the Divisional Management Committee (DMC) every

35

month. Any material change in the contents of the website are also approved by the

DMC.

Lifestyle Retailing business follows the Voluntary Code on Advertising and

Promotion.

The code ensures that the advertisements are not deliberately misleading in terms of

claim and representation, and are not offensive to generally accepted standards of

public decency (nothing vulgar, indecent or repulsive). Glorification of acts of sex

and violence is avoided. References to religion in general and specific religions are

also avoided. It is ensured that advertisements maintain fairness to competition and

the contests and promotions are as per the laws of the land. The terms and conditions

of promotions are vetted by the Legal Department. There is no deriding of race,

caste and community in advertisements or promotion. Packaging of the product is in

accordance with Packaging and Weights & Measures Acts.

Compliance is ensured through on-going review. Each campaign/promotion is vetted

for compliance before release.

The Lifestyle Retailing business does not sell any product that is banned in certain

markets or subject of stakeholder questions or public debate.

Compliance

All the businesses/Divisions of ITC have well-established systems, procedures and

review mechanisms to identify and comply with the laws and regulations concerning

products and services. ITC continued to comply with all applicable statutes.

ITC PERSONAL CARE PRODUCT RANGE

ITC recently entered the Personal Care Products market, which is currently the fief

of Fast Moving Consumer Goods (FMCG) majors Hindustan Lever and Procter &

Gamble.

There is a certain degree of exhaustion in the sector, which has created a window of

opportunity for a new player with the right business plan. Established players in the

FMCG segment have been indulging in a bloody war over pricing, with undercutting

and discounts being the order of the day.

36

The size of the Personal Care Product market is about Rs 15,000 crore (Rs 150

billion), with soaps and shampoos alone accounting for Rs 7,000 crore (Rs 70

billion).

In the last three years the segment is estimated to be growing at 8-9 per cent, which

is considered to be among the highest in the Rs 45,000 crore (Rs 450 billion) FMCG

market.

ITC already sells a wide range of products in the FMCG segment but none in

Personal Care. The company's FMCG range now has more than 45 food products,

covering staples, ready-to-cook pastes, confectionery, snacks and biscuits and ready-

to-eat meals. ITC emerged as the most profitable FMCG company in the second

quarter in the current financial year.

ITC launched an exclusive line of prestige fine fragrances under the Essenza Di

Wills brand in mid 2005. The Essenza Di Wills range of perfumes reinforces ITC’s

tradition of bringing world-class products to Indian consumers to enrich the quality

of their lives.

Essenza Di Wills embodies a fine balance between the classic and the

contemporary. The brand personifies exclusivity, innate style, sophistication and

magnetism.

The Essenza Di Wills line has been developed with

the assistance of French perfumery experts to give it

the mystique and premium luxury quality that go

with the best of international brands.

Inizio, the signature range under Essenza Di Wills

captures the very essence of attraction between a

man and a woman with its two distinct lines - Inizio Femme (for women) and Inizio

Homme (for men). The women's fine fragrance revolves around 'Floral Fruity

Musky' notes while the men's fine fragrance is centered on 'Oriental Woody

Fruity' notes. The bath and body care products share the same olfactory signature

of the fine fragrances, to offer a harmonized grooming experience.

37

The latest addition to the Essenza Di Wills portfolio is the Aqua range

for men (Aqua Homme) that offers a distinctive and fresh aquatic

fragrance. The Aqua range includes an After-Shave Lotion, a

Deodorant, a Hair & Body Shampoo and a Bathing Bar.

Essenza Di Wills has significantly enhanced its brand salience in the lifestyle space

by being the associate sponsors of the Wills Lifestyle India Fashion Week, the

country's most premier fashion event that brings together the leading designers of

the country.

The Essenza Di Wills fashion line, specially designed for the brand by one of

India’s leading designers, Varun Bahl, received high appreciation at the Spring-

Summer show in September 2007. Essenza Di Wills is available at Wills Lifestyle

stores, select John Players stores and select premium outlets.

This comprehensive grooming regimen of 16 products includes in the women's

range, Eau De Parfum, Eau De Toilette, Deodorant, Shower Gel, Shampoo, Bathing

Bar, Body Lotion, Cleansing Milk, Toner and Nourishing Cream while the men's

range comprises Eau De Toilette, After Shave Lotion and Balm, Deodorant, All

Over Shampoo and Bathing Bar. The bath and body care products share the same

olfactory signature of the men and women's fine fragrances, to offer you a

harmonised fragrance experience.

A renowned European Design Firm has designed the packaging for the Inizio line.

The fine fragrances are presented in an elegant three-piece box. The gold and

maroon in the packaging for the women's range, complement each other invoking an

aura that is intriguing and timeless. The interplay between black and bronze in the

packaging for the men's range exudes eternal masculine charm. The clean-cut design

and shape of the bottles expresses the fine harmony of the classic and the

contemporary, a style reminiscent of European signature fragrance lines.

This range has been created by a dedicated team within ITC working with

International designers and fragrance houses, over the past three years and has

undergone extensive product testing in India as well as in Europe, to ensure that the

Indian consumer has a memorable product experience.

38

In September 2007, ITC launched Fiama Di Wills, a

premium range of personal care products comprising

shampoos, conditioner, shower gels and soap. This

premium range is a unique blend of nature and science that

promises gentle effective care. It is an outcome of 4 years of extensive research and

development by experts at ITC R&D Centre. The packaging for all Fiama Di Wills

products has been developed by a leading European design firm and the fragrances

have been   developed by an international fragrance house in France.

Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc.,

USA, offers a range of four variants. Each of these is designed to deliver a specific

hair benefit to the consumer :

Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring

shampoo suitable for daily use.

Aqua Balance (with extracts of

Magnolia Blossoms & Watercress)

is a gentle moisturizing shampoo

ideal for dry, dull hair.

Volume Boost (with extracts of

Rosemary & Sage) is a gentle

volumizing shampoo ideal for

thin, limp hair.

Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair

smooth, silky and strong and is ideal for weak, damaged hair.

Each of these shampoos can be complemented with

Fiama Di Wills Polishing Drops conditioner. This

gentle conditioner enriched with Avocado Oil and

Burdock extract promises to make hair shiny, soft and

smooth. It also gives the additional benefits of UV

protection as it contains Sunflower Seed extract, which is

a natural UV absorber.

39

The Fiama Di Wills product line also consists of a 3-variant range of transparent

shower gels which are unique as they come with suspended beads:

Mild Dew (enriched with soft beads, peach and avocado extracts) is for soft,

moisturized skin.

Clear Springs (enriched with

jojoba beads, sea weed and

lemongrass extracts) is for

clear healthy skin.

Exotic Dream (enriched with

glitter beads, bearberry leaves

and black currant extracts) is

for stimulating freshness.

The Fiama Di Wills range of soaps has been

launched under the sub - brand SkinSense. The

first variant to be introduced in this range is Soft

Green. This is a gentle caring soap, which helps

enhance retention of skin proteins making skin

look beautiful and youthful.

Between February and June 2008, ITC expanded its personal care portfolio with the

launch of Vivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and

Vivel, a range of soaps and shampoos, cater to the specific needs of a wide range of

consumers.

Backed by consumer insights, these ranges offer the unique value proposition of

providing the multiple benefits of Nourishment, Protection and Hydration in every

single product. Thus providing, the ever-discerning consumer, complete care.

The Vivel Di Wills range is available in two variants. Its unique carton pack has

been developed by ITC's design team to provide a novel consumer experience.

Vivel Di Wills Sheer Radiance is enriched with Olive

Oil, to provide skin lustre to make it radiant.

40

Vivel Di Wills Sheer Crème is enriched with Shea Butter, to moisturize skin to

make it soft and supple.

The Vivel range of soaps is available in four variants:-

Vivel Young Glow is enriched with Vitamin E and Fruit Infusions which help in

providing youthful glow to the skin.

Vivel Satin Soft is enriched with Vitamin E and Aloe Vera which help the skin feel

beautifully soft.

Vivel Sandal Sparkle is enriched with Sandalwood

Oil and Active Clay which helps in providing clear

skin.

Vivel Ayurveda Essence is enriched with multiple Ayurvedic Ingredients which

help protect skin from germs and harsh environment, keeping it healthy and

beautiful.

The Vivel range of shampoos is available in three variants:-

Vivel Shine & Glow is suitable for dull to normal hair and is enriched with

Green Tea Extract and Conditioners.

It adds shine to hair.

Vivel Soft & Fresh is suitable for dry

to normal hair and contains Extra

Conditioners and Soya Protein. It

makes hair soft and fragrant. 

Vivel Volume & Bounce is suitable for oily to normal hair and contains

Jojoba Oil and Conditioners. It adds volume and bounce to hair.

Vivel shampoos in line with its aspiration to offer world class products to the Indian

consumer. Vivel shampoos will be available in three variants - Shine & Glow, Soft

& Fresh and Volume & Bounce - customized to meet specific consumer needs.

Vivel shampoos are conveniently packaged in 200ml and 100 ml bottles and will

also be available in sachets. The extension of the Vivel brand into the shampoo

category follows the successful launch of Vivel soaps in February this year.

41

Vivel shampoos, enriched with a unique Actipro-K

complex, provide the Power of 3 benefits - Nourishment,

Protection and Hydration. Backed by consumer insight,

this novel value proposition is a result of 4 years of

extensive research and product development at the ITC

R&D Centre. The convergence of these benefits provides the ever discerning

consumer wholesome care for her hair and makes her look beautiful. This belief is

encapsulated in the Vivel tag line, “Khoobsurti bas mein, Duniya kadmon mein’.

The exquisite fragrances for Vivel products have been developed by leading

international fragrance houses. The soft vignette design and the unique braid design

behind the brand logo are a reflection of the brand philosophy of delivering multiple,

relevant and powerful benefits in each product.

The three Vivel shampoo variants offer clearly differentiated benefits to the

consumer:

Vivel Shine & Glow is suitable for dull to normal hair and is enriched with

Green Tea Extract and Conditioners. It adds shine to hair.

Vivel Soft & Fresh is suitable for dry to normal hair and contains Extra

Conditioners and Soya Protein. It makes hair feel soft and fragrant.

Vivel Volume & Bounce is suitable for oily to normal hair and contains

Jojoba Oil and Conditioners. It adds volume and bounce to hair.

The 200 ml and 100 ml bottles and 8 ml sachets are priced at Rs. 89, Rs. 49 and Rs.

2, respectively.

Apart from Vivel and Vivel Di Wills, ITC’s personal care portfolio comprises 

Essenza Di Wills, Fiama Di Wills and Superia brands.

In the popular segment, ITC has launched a range of soaps

and shampoos under the brand name Superia.

Superia Soaps enriched with natural ingredients give radiant

glowing skin. Superia Soaps are available in four variants :

1. Fragrant Flower: with the fragrance of Rose &

Lavender Oil

42

2. Soft Sandal: with the fragrance of Sandal & Almond Oil

3. Natural Glow: with Neem & Coconut Oils

4. Healthy Glow: with Orange Oil

Superia shampoos with triple conditioners and natural

ingredients bring a natural shine to hair. Superia shampoos are

available in two variants:

1. Shiny Black with Triple Conditioners and the natural

goodness of Hibiscus & Brahmi extracts.

2. Vibrant Green with Triple Conditioners and the natural goodness of Amla

& Arnica extracts.

Superia soaps & shampoos are an outcome of 3 years of extensive product

development by ITC scientists at the ITC Research and Development Centre.

Consumer Insights based on detailed understanding of the modern Indian consumer

led to the development of these products and brand experience. The delightful

fragrances for the various products have been developed with leading international

fragrance houses. The aesthetics and packaging for the products have been

developed with leading designers and have been researched amongst hundreds of

consumers .

Superia soaps will be available in sizes ranging from 50g to 125g, and the shampoos

in 125 ml and 55 ml.

  

43

DATA ANALYSIS AND INTERPRETATION

Sample Size: 50 Respondents

Sex:

Male Female

8 42

Male16%

Female84%

Findings: Out of the 50 respondents taken 84% are female and rest 16% are male.

44

Age group:

18-25 26-35 36-45 45-55 Above 55

27 13 7 2 1

18-2554%

26-3526%

36-4514%

44-554%

Above 552%

Findings: Out of the 50 respondents maximum 54% are from the age group of 18-

25 followed by 26% 26-35, 14% 36-45, 4% 44-55 and only 2% above 55.

45

Occupation:

Working Non-Working

47 3

Working94%

Non-Working6%

Findings: Out of the 50 respondents maximum 94% respondents are working while

6% are not working.

46

Income Group:

10,000-15,000 15,001-20,000 20,001-25,000 Above 25,000

8 9 15 18

10,000-15,00016%

15,001-20,00018%

20,001-25,00030%

Above 25,00036%

Findings: Out of the 50 respondents 36% respondents are from above 25,000

income group followed by 30% 20,001-25,000, 18% 15,001-20,000 and 16%

10,000-15,000.

47

Q1. Do you use Personal Care Products?

Yes No

50 0

Yes100%

Findings: Above chart depict maximum 100% respondents are using Personal Care

Products.

48

Q.2 When you think of Personal Care Products, which brands come to your

mind?

HLL P&G J&J Reckitt B ITC L’Oreal Any

Other

18 8 4 2 8 4 6

HLL36%

P&G16%

J&J8%

Reckitt B4%

ITC16%

L'Oreal8%

Any Other12%

Findings: 36% respondents had ticked on HLL while they think of Personal Care

Products followed by 16% each P&G and ITC, Johnson & Johnson and L’oreal

ticked 8% and any other ticked 12%.

49

Q.3 Do you use personal care product according to your skin type?

Yes No

35 15

Yes70%

No30%

Findings: Most of the respondents 70% does not use personal care product

according to their skin type.

50

Q.4 Are you a brand loyal customer?

Yes No

18 32

Yes36%

No64%

Findings: Most of the respondents 64% are not brand loyal customers. But 36%

respondent said they are very brand loyal.

51

Q.5 If not, then which out of following factors fluctuates you to other brands.

Discounted Price Promotional

Schemes

Strong

Advertisement

Any other

13 15 4 0

Discounted Price41%

Promotional Schemes

47%

Strong Adv.13%

Findings: Most of the respondents 46% fluctuates to other brands because of good

promotional schemes offered by other company and 41% said good discounted price

can change their view 13% said strong advertisement can change their view point.

52

Q.6 Are you aware of personal care products by ITC?

Yes No

42 8

Yes84%

No16%

Findings: Above chart depict that most of the respondents 84% are aware of

personal care products by ITC.

53

Q.7 Have you used ITC personal care products?

Yes No

32 28

Yes53%

No47%

Findings: Above chart depict that 53% respondents have used ITC personal care

products and rest 47% have not yet used the ITC products.

54

Q.8 Which of the following personal care product you have been used of ITC?

A B C D E

Essenza Di

Wills

Perfumes

Inizio Femme

(for women)

Essenza Di

Wills

Perfumes

Inizio Homme

(for men)

Essenza Di Wills

Perfumes Aqua

Homme (for men

After-Shave

Lotion, a

Deodorant, a

Hair & Body

Shampoo and a

Bathing Bar)

Fiama Di

Wills

(Shampoos,

Conditioner,

Shower

Gels &

Soap)

Vivel Di Wills

(Shampoos

and Soap)

4 3 5 12 9

A12%

B9%

C15%

D36%

E27%

Findings: Above chart depict that majority of the respondents 37% have used Fiama

Di Wills (Shampoos, Conditioner, Shower Gels & Soap) followed by 27% used

Vivel Di Wills (Shampoos and Soap), 15% have used Essenza Di Wills Perfumes

Aqua Homme (for men After-Shave Lotion, a Deodorant, a Hair & Body Shampoo

and a Bathing Bar), 12% are using Essenza Di Wills Perfumes Inizio Femme (for

women) and 9% using Essenza Di Wills Perfumes Inizio Homme (for men) of ITC

Personal Care Product.

55

Q.9 Are you satisfied with the personal care product of ITC you are using /

used?

Yes No

26 6

Yes79%

No21%

Findings: Above chart depict that most of the respondents 79% are satisfied with

the personal care product of ITC they are using rest 21% are not satisfied.

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Q.10 What motivates you to buy ITC personal care product?

Advertisement Celebrities Quality & Packing Any Other

26 12 9 3

Advertisement52%Celebrities

24%

Quality & Pack-ing18%

Any Other6%

Findings: 52% respondents are motivate to buy ITC personal care product through

advertisement 24% celebrity endorsement, 18% Quality & Packaging of the product

and 6% ticked over any other reason.

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Q.11 Will you recommend the ITC Product to you friend and family members?

Yes No

26 0

Yes100%

Findings: 100% respondents said they will recommend the ITC Product to their

friend and family members.

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RECOMMENDATIONS

On the basis of above findings, a few recommendations can be put forward:

1. It is necessary to have a high level of advertisement during the phase when a

consumer actually purchases a personal care product. For instance during the last

week of the month, just before purchase of monthly quota of their personal care

products in most houses. Such a pulsed advertisement would be sufficient.

2. In order to attract a consumer through advertisements, it is benefits that have to

be highlighted in the advertisements. This is necessary because consumers do

not go through an extensive evaluation process for personal care products.

3. Any promotional scheme is to be displayed at the point of purchase prominently

rather than through advertisements.

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CONCLUSION

In today’s dynamic and competitive business environment, marketers should

understand the changing perceptions and needs of consumers. These perceptions

keep on changing with time. As the competition is so tough that marketers keeps on

increasing customer expectations by providing them better quality products. Once

consumer experience a particular set of level, he/she dose not want to move below

that level.

The personal care product market has low involvement purchase decision. The

consumers are not brand loyal. They keep on changing their brands frequently. So it

is important for a marketer to keep his product alive in the market, otherwise the

company will be kicked out of the market. We can take the example of the Camay,

which could not catch the market pulse, and today it is out of the market.

The following attributes are essential for the personal product segment:

Fragrance and freshness are two most important attributes for the soap. So the

manufactures should lay their main emphasis on these two attributes. Some soap

is not doing well because they don’t possess these qualities in their soaps. We

can take the example of Denim, which is unsuccessful soap, as it does not fulfill

these two essentialities.

Price is another important attribute as the market looks for the value for money.

People are price conscious. Not much people go for the premium range.

The consumers also consider foam and deodorant. Consumers have a

psychology towards foam. The foam gives a feeling of cleaning the body well.

Lot of people doesn’t like lifebuoy, because it doesn’t generate foam. Now a

day’s people are also looking for deodorant in the soap. The flow of lot of

deodorant sprays has also encouraged the peoples to look for deodorant in the

soaps.

Apart from these attributes we find that promotional schemes are very important in

catching the attention of consumers. That is why we are seeing that lots of

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companies are coming with new promotional schemes. In survey also lot of people

have said that promotional schemes tends to fluctuate from one brand to other brand.

It has been revealed during the survey that advertisement plays an important role in

positioning of personal care products. It helps in creating brand awareness among

the consumers. This is advertisement, which makes consumers aware of free offers

and discounted price.

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BIBLIOGRAPHY

Books

- Marketing Management, Philips Kotler, The Millennium Edition, Prentice Hall

of India Private Limited, New Delhi.

- Sales and Distribution Management, T.K. Panda, Sunil Sahadev, Oxford

University Press, New Delhi, 2005.

Magazines

- India Today

- The Week

- Business Today

Newspapers

- Economics Times

- Times of India

- Financial Express

Websites

- www.google.com

- www.itcportal.com

- www.fashionproducts.com/personal-care-overview.html

- www.indiantelevision.com

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ANNEXURE

QUESTIONNAIRE

Personal Details:

Name: _____________________________________________________________

Sex:

Male

Female

Age group:

18-25

26-35

36-45

46-55

Above 55

Occupation:

Working

Non-Working

Income Group:

10,000-15,000

15,001-20,000

20,001-25,000

Above 25,000

Q1. Do you use Personal Care Products?

Yes

No

Q.2 When you think of Personal Care Products, which brands come to your

mind?

HLL

P&G

Johnson & Johnson

Reckitt Benckiser

ITC Ltd.

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L’Oreal

Any Other, Pl. Specify___________________________________________

Q.3 Do you use personal care product according to your skin type?

Yes

No

Q.4 Are you a brand loyal customer?

Yes

No

Q.5 If not, then which out of following factors fluctuates you to other brands.

Discounted Price

Promotional Schemes

Strong Advertisement

Any Other, Pl. Specify___________________________________________

Q.6 Are you aware of personal care products by ITC?

Yes

No

Q.7 Have you used ITC personal care products?

Yes

No

Q.8 Which of the following personal care product you have been used of ITC?

Essenza Di Wills Perfumes Inizio Femme (for women)

Essenza Di Wills Perfumes Inizio Homme (for men)

Essenza Di Wills Perfumes Aqua Homme (for men After-Shave

Lotion, a Deodorant, a Hair & Body Shampoo and a Bathing Bar)

Fiama Di Wills (Shampoos, Conditioner, Shower Gels & Soap)

Vivel Di Wills (Shampoos and Soap)

Q.9 Are you satisfied with the personal care product of ITC you are using /

used?

Yes

No

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Q.10 What motivates you to buy ITC personal care product?

Advertisement

Celebrities

Quality & Packing

Any Other, Pl. Specify___________________________________________

Q.11 Will you recommend the ITC Product to you friend and family members?

Yes

No

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