EXECUTIVE SUMMARY OF THE PROJECT:

The project is titled as competitor’s analysis, as per the topic the project is analyzing
between two competitor brands. The competitor for ITC Mangaldeep is Cycle 3 in 1.In
Agarbathi market:

Market leader : Cycle 3 in 1 Market challenger : Mangaldeep 5 in 1

Cycle 3 in 1 is the main competitor of Mangaldeep, the sales is almost in the ratio of 3:1
between cycle and Mangaldeep .Today cycle is the market leader and is in the top of
mind of the people because they were in this field for long time and the brand is very old,
everyone are aware about cycle brand .Mangaldeep is the market challenger, the project
mainly focus on what has to be done to become a market leader, what is the expectation
from an agarbathi , why do users of agarbathi prefer Cycle, what is their feedback about
Mangaldeep .How can we improve the sales of Mangaldeep? , what can be done to make
it a market leader?

A field study was done about the Agarbathi market to know the market better and to
analyse the no of brands existing in this field ,how much sales are made .after the study
of the market ,the research techniques to be applied and the field work is to be done
followed by the analysis of the data obtained in the due course of time and then a
presentation to be made about the field visit, what were research and findings out the
research, and also to give some suggestions and recommendations to the company and
which will help them to develop the brand in a better way.

The field study was done in two main cities in Tamilnadu with a sample size of 600:

PLACE SAMPLE SIZE

1
 CHENNAI 300
COIMBATORE 300

TABLE OF CONTENTS

Page

ACKNOWLEDGEMENT…………………………………….........................................2
EXECUTIVE SUMMARY…………………………………………………………….. 3
LIST OF TABLES ……………………………………………………………………. 6
LIST OF FIGURES……………………………………………………………............. 7
ABBREVATIONS ……………………………………………………………............. 8

CHAPTER 1 ITC LTD

1.1 Company Profile………………………………………………………………8
1.1.1 ITC’S corporate Stratigies…..…………………. ……………………………10
1.2 History of ITC LTD……………………………………………………..…....11
1.3 About Mangaldeep……………………………………………………………15
1.4 Mission & Vision.……………………………………………………………..16

CHAPTER 2 COMPETITORS ANALYSIS

2.1 Introduction ………………………………………………………………..... 17

2.2 Competitor Array…………………………………………………………..… 19
2.3 Competitors profiling……………………………………………….…….…..21
2.3.1 Media Scanning ………….………………………………………………… .23
2.4 New Competitors…………………..……………….…………………...........24
2.5 About Cycle …………….….……………………………………….……….. 27
2.6 About Nandhi ………………………………………………………………... 28
2.7 About Onam………………………...………………………………………...28
2.8 About Sona Chandi…………………………………………………………….31

2
 CHAPTER 3
3.1 Background of the Problem ………………………………………………….. 32
3.2 Objectives………………………………………………………………………33

3.4 Limitations …………..……………………………………………………….. .33

CHAPTER 4
4.1 Research Process ………………………………………………………………… 34
4.2 Research Design ………………………………………………………………… 35
4.2.1 Research Methods ……………………………………………………………….. 36
4.2.2 Secondary Data ………………………………………………………….…...........38
4.2.3 Sampling Technique ………………………………………………………………45

CHAPTER 5 METHODOLOGY

5.1 Areas under Coverage …………………………………………………………. 47

5.2 Observations …………………………………………………………………… 48
5.3 Hypothesis ……………………………………………………………………… 48

CHAPTER 6 FINDINGS
6.1 Results of the survey……………………………………………………………..50

6.1.1 Reasons behind shifting of brands………………………..………………………53

6.1.2 Reasons behind not using Mangaldeep ……..……………………………………. 53

6.1.3. Statistics about Chennai …………..…………………………………………….. 54

6.1.4 Statistics about Coimbatore ……….……………………………………………...54

3
6.1.5 Fragrance of Mangaldeep vs. Cycle..................................................................…...55

CHAPTER 7 ANALYSIS OF SPSS

7.1 Regression between age & purchase made…………………………………………56
7.2 Sticks per use ………………………………………………………………………57
7.3 Usage per day………………………………………………………………………58
7.4 Awareness of Mangaldeep………………………………………………………….59
7.5 Awareness of ITC………………………………………………………………...…60
7.6 Awareness of cycle………………………………………………………………….61
7.7 Awareness of schemes………………………………………………………………62
7.8 Fragrance of mangaldeep……………………………………………………………63
7.9 Summary ……………………………………………………………………………64

CHAPTER 8 RECOMMENDATIONS &SUGESSTIONS………65

CHAPTER 9

9.1 APPENDICE ………………………………………………………………….66

9.2 REFERENCES ….……………………………………………………………73
9.3 CURICULAM VITAE……………………………………………………………78

4
CHAPTER – 1

1.1 Company Profile

ITC is one of India's foremost private sector companies with a market capitalisation of
nearly US $ 15 billion and a turnover of over US $ 4.65 billion. 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 third in pre-tax
profit among India's private sector corporations.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. While ITC
is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting
Cards.

As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman 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 practises 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

5
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 $ 2.4 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 21,000 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 4, 80,000 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."

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG
sector, the Company has commenced marketing agarbattis (incense sticks) sourced from
small-scale and cottage units. This business leverages the core strengths of ITC in nation-

6
wide distribution and marketing, brand building, supply chain management, manufacture
of high quality paperboards and the creation of innovative packaging solutions to offer
Indian consumers high quality agarbattis.

1.1.1 ITC’S CORPORATE STRATIGIES:

ITC is a board-managed professional company, committed to creating enduring value for

the shareholder and for the nation. It has a rich organizational 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

• Create multiple drivers of growth by developing a portfolio of world class

businesses that best matches organizational capability with opportunities in
domestic and export markets.
• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards
& Packaging, Agri Business and Information Technology.
• Benchmark the health of each business comprehensively across the criteria of
Market Standing, Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally competitive.
• Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and capabilities residing in 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.

7
1.2 HISTORY OF ITC:

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar
Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its
16th birthday on August 24, 1926, by purchasing the plot of land situated at 37,
Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This
decision of the Company was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into India's future. The Company's headquarter
building, 'Virginia House', which came up on that plot of land two years later, would go
on to become one of Kolkata's most venerated landmarks. The Company's ownership
progressively Indianised, and the name of the Company was changed to I.T.C. Limited in
1974. In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting
Gifting & Stationery - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'.

Though the first six decades of the Company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies
witnessed the beginnings of a corporate transformation that would usher in momentous
changes in the life of the Company.

ITC's Packaging & Printing Business Division, was set up in 1925 as a strategic
backward integration for ITC's Cigarettes business. It is today India's most sophisticated
packaging house.

8
In 1975 the Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of
ITC's entry into the hotels business was rooted in the concept of creating value for the
nation. ITC chose the hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect
employment. Since then ITC's Hotels business has grown to occupy a position of
leadership, with over 75 owned and managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India. Bhadrachalam
Paperboards amalgamated with the Company effective March 13, 2002 and became a
Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this
division merged with the Company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an
immense contribution to the development of Sarapaka, an economically backward area in
the state of Andhra Pradesh. It is directly involved in education, environmental protection
and community development. In 2004, ITC acquired the paperboard manufacturing
facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.
The Kovai Unit allows ITC to improve customer service with reduced lead time and a
wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. Since inception, its shares have been held by ITC, British American Tobacco
and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a
subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited
(Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing

company and a major supplier of tissue paper to the cigarette industry. The merged entity
was named the Tribeni Tissues Division (TTD). To harness strategic and operational

9
synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the
Paperboards & Specialty Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the International
Business Division (IBD) for export of agri-commodities. The Division is today one of
India's largest exporters. ITC's unique and now widely acknowledged e-Choupal
initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 9 states
covering over 3.5 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was
inaugurated in August 2004 at Sehore. The year 2006 witnessed the ramping up of the
Company's rural retailing network with 17 'Choupal Saagars' being operational in three
states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC's Packaging & Printing business launched a line of high quality greeting
cards under the brand name 'Expressions'. In 2002, the product range was enlarged with
the introduction of Gift wrappers, Autograph books and Slam books. In the same
year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting
cards in eight languages and 'Expressions Paperkraft', a range of premium stationery
products. In 2003, the company rolled out 'Classmate', a range of notebooks in the
school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain
of exclusive stores later expanded its range to include Wills Classic formal wear (2002)
and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular
segment with its men's wear brand, John Players, in 2002. In December 2005, ITC
introduced Essenza Di Wills, an exclusive line of prestige fragrance products, to select
'Wills Lifestyle' stores. In 2006, Wills Lifestyle became title partner of the country's most
premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition
from buyers and retailers as the single largest B-2-B platform for the Fashion Design
industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the
event forward to consumers.

10
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging
opportunities in this area. In a short span of 5 years, ITC Infotech has already crossed
over US$ 60 million in revenues. It also has a joint venture with ClientLogic, a top five
global Business Process Outsourcing (BPO) provider.

ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in
August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes. In 2002, ITC entered the confectionery and staples segments with the launch of
the brands Mint-O and Candyman confectionery and Aashirvaad atta (wheat flour).
2003 witnessed the introduction of Sunfeast as the Company entered the biscuits
segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In
just six years, the Foods business has grown to a significant size with over 150
differentiated products under six distinctive brands, with an enviable distribution reach, a
rapidly growing market share and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire

value chain found yet another expression in the Safety Matches initiative. ITC now
markets popular safety matches brands like iKno, Mangaldeep, VaxLit, Delite and Aim.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

11
1.3 ABOUT MANGALDEEP:

ITC has launched Mangaldeep Agarbattis across a wide range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and
Mogra. Recently, a new fragrance Yantra has been launched which evokes the ambience
of a temple. Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer
a choice of fragrances in a single pack. Mangaldeep is appropriately priced to appeal to a
cross-section of consumers at various price segments. These agarbattis are available in
innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of
packaging which retains the fragrance for a longer period and helps in "Completing the
Purity of Prayer".

The 'Mangaldeep' brand is fast emerging as the only national brand in an industry
dominated by multiple local brands. Mangaldeep is also being exported to United States
of America, United Arab Emirates, Bahrain, Nepal, Singapore, Malaysia, Oman and
South Africa.

With its participation in the business, ITC aims to enhance the competitiveness of the
small and medium scale sectors through its complementary R&D based product
development and strengths in trade marketing and distribution.

Six of ITC's small scale manufacturers are the first in the country to receive the ISO
9000-2001certification for agarbatti making.

ITC has also entered into an MOU with the Khadi & Village Industries Commission
(KVIC) to source agarbattis from KVIC approved units, and to distribute agarbattis
through the Khadi Bhavan / Khadi Bhandar outlets across the country. This collaborative

12
venture is expected to result in employment generation, particularly in the semi-urban
and rural areas.

ITC is also supporting an 'Agarbatti Community Participation Programme' run by the

Vyakti Vikas Kendra, a non-profit organisation founded by the renowned spiritual guru
Sri Sri Ravishankar and located near Bengaluru. Over 100 village women are gaining
from the training that this organisation imparts in rolling agarbattis. ITC is also beginning
to extend similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu,
who are also setting up agarbatti units, training village women in rolling agarbattis and
employing these women in these units.

1.4 MISSION & VISION:

Vision
Sustain ITC’s position as India’s most valuable corporations through world class
performance, creating growing value for Indian economy and company’s stake holders

Mission

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

environment, delivering superior and sustainable stakeholder value.

13
Chapter 2 COMPETITORS ANALYSIS:

2.1 INTRODUCTION:
Competitor analysis in marketing and strategic management is an assessment of the
strengths and weaknesses of current and potential competitors.

Competitors Analysis

Some businesses think it is best to get on with their own plans and ignore the
competition. Others become obsessed with tracking the actions of competitors (often
using underhand or illegal methods). Many businesses are happy simply to track the
competition, copying their moves and reacting to changes.
Competitor analysis has several important roles in strategic planning:
• To help management understand their competitive advantages/disadvantages relative to
competitors
• To generate understanding of competitors’ past, present (and most importantly) future
strategies
• To provide an informed basis to develop strategies to achieve competitive advantage in
the future
• To help forecast the returns that may be made from future investments (e.g. how will
competitors respond to a new product or pricing strategy?
Questions to ask
What questions should be asked when undertaking competitor analysis? The following is
a useful list to bear in mind:
• Who are our competitors? (see the section on identifying competitors further below)
• What threats do they pose?
• What is the profile of our competitors?

14
• What are the objectives of our competitors?
• What strategies are our competitors pursuing and how successful are these strategies?
• What are the strengths and weaknesses of our competitors?
• How are our competitors likely to respond to any changes to the way we do business?

The sources of competitor information can be neatly grouped into three categories:
• Recorded data: this is easily available in published form either internally or externally.
Good examples include competitor annual reports and product brochures;
• Observable data: this has to be actively sought and often assembled from several
sources. A good example is competitor pricing;
• Opportunistic data: to get hold of this kind of data requires a lot of planning and
organisation. Much of it is “anecdotal”, coming from discussions with suppliers,
customers and, perhaps, previous management of competitors.

12 Points for Doing Competitive Analysis

• Be a customer
• Find out as much as you can about the people who run competing businesses
• Buy stock in your competitors
• Talk to your competitors' customers.
• Use the Internet.
• Check public filings.
• Get to know local librarians.
• Attend industry conferences and trade shows
• Assess the competition's goals.
• Be aware of the potential for new competition.
• Don't delegate the job of keeping up with competitors
• Define the competitive landscape broadly.

Some of the components are:

• Competitor array

15
 • Competitor profiling
• Media scanning
• New competitors

2.2 COMPETITOR ARRAY:

One common and useful technique is constructing a competitor array. The steps include:

• define your industry - scope and nature of the industry

• determine who your competitors are
• determine who your customers are and what benefits they expect
• determine what the key success factors are in your industry
• rank the key success factors by giving each one a weighting - The sum of all the
weightings must add up to one.
• rate each competitor on each of the key success factors - this can best be
displayed on a two dimensional matrix - competitors along the top and key
success factors down the side.
• multiply each cell in the matrix by the factor weighting.
• sum columns for a weighted assessment of the overall strength of each competitor
relative to each other.
• An example of a competitor array follows:

Key Industry Competitor # 1 Competitor #1 Competitor #2 Competitor #2

Weighting
Success Factors rating weighted rating weighted

1 - Extensive
.4 6 2.4 3 1.2
distribution

2 - Customer focus .3 4 1.2 5 1.5

3 - Economies of
.2 3 .6 3 .6
scale

4 - Product
.1 6 .6 4 .4
innovation

Totals 1.0 20 4.9 18 3.6

16
Based on material presented in "Beat the Competition: How to Use Competitive
Intelligence to Develop Winning Business Strategies", Ian Gordon, Basil Blackwell
Publishers, Oxford, UK, 1989.

In this example competitor #1 is rated higher than competitor #2 on product innovation

ability (6 out of 10, compared to 4 out of 10) and distribution networks (6 out of 10), but
competitor #2 is rated higher on customer focus (5 out of 10). Overall, competitor #1 is
rated slightly higher than competitor #2 (20 out of 40 compared to 18 out of 40). When
the success factors are weighted according to their importance, competitor #1 gets a far
better rating (4.9 compared to 3.6).

Two additional columns can be added. In one column you can rate your own company on
each of the key success factors (try to be objective and honest). In another column you
can list benchmarks. They are the ideal standards of comparisons on each of the factors.
They reflect the workings of a company using all the industry's best practices.

Guidelines for Doing a Competitive Analysis

The competitive analysis section can follow a format that is shown below. In practice we
recomend this section be a single-spaced, two-column report that is limited to a single
sheet of paper (both sides used). Consequently, font size is generally 10 point or less.

This report would be made for each of the major competitors. While most of this report
focuses on the overall analysis of the competitor, you should recognize that you are
primarily interested in how this information may impact your company and, specifically,
a product or product line. Thus, you should make sure, where possible, to focus your
information on how it impacts the markets in which your product competes.

Note each sub-section within a section will contain 1-5 sentences that explain the sub-
section.

17
 • General Company Information - includes name, location (headquarters, other
locations of importance), website address
• Summary of Business – includes sections that summarize the company, business
units and nature of business
• Business Overview – includes sections on history, ownership structure, types of
businesses, mission, strategy/objectives, key executives
• Recent News/Developments – important company developments within last 6-12
months (e.g., reports from news sources, press releases, financial statements)
• Financial and Market Share Analysis – includes sections on corporate
performance, trends, market share for product
• Marketing – includes sections on products and services offered, target markets,
positioning, customers/users, pricing model, promotional efforts, sales force, and
distribution
• Other Issues – includes sections on technology capability, partnership
arrangements, intangible issues
• Competitors – list key competitors facing this company
• SWOT – strengths, weaknesses, opportunities and threats

2.3 COMPETITOR PROFILING:

Another common technique is to create detailed profiles on each of your major

competitors. These profiles give an in-depth description of the competitor's background,
finances, products, markets, facilities, personnel, and strategies. This involves:

• Background
o location of offices, plants, and online presences
o history - key personalities, dates, events, and trends
o ownership, corporate governance, and organizational structure
• Financials
o P-E ratios, dividend policy, and profitability** various financial ratios,
liquidity, and cash flow
o Profit growth profile; method of growth (organic or acquisitive)

18
• Products
o products offered, depth and breadth of product line, and product portfolio
balance
o new products developed, new product success rate, and R&D strengths
o brands, strength of brand portfolio, brand loyalty and brand awareness
o patents and licenses
o quality control conformance
o reverse engineering
• Marketing
o segments served, market shares, customer base, growth rate, and customer
loyalty
o promotional mix, promotional budgets, advertising themes, ad agency
used, sales force success rate, online promotional strategy
o distribution channels used (direct & indirect), exclusivity agreements,
alliances, and geographical coverage
o pricing, discounts, and allowances

• Facilities
o plant capacity, capacity utilization rate, age of plant, plant efficiency,
capital investment
o location, shipping logistics, and product mix by plant
• Personnel
o number of employees, key employees, and skill sets
o strength of management, and management style
o compensation, benefits, and employee morale & retention rates
• Corporate and marketing strategies
o objectives, mission statement, growth plans, acquisitions, and divestitures
o marketing strategies

19
2.3.1 MEDIA SCANNING:

We can learn a lot about the competitive environment by scanning our competitors' ads.
Changes in a competitor's advertising message can reveal new product offerings, new
production processes, a new branding strategy, a new positioning strategy, a new
segmentation strategy, line extensions and contractions, problems with previous
positions, insights from recent marketing or product research, a new strategic direction, a
new source of sustainable competitive advantage, or value migrations within the industry.
It might also indicate a new pricing strategy such as penetration, price discrimination,
price skimming, product bundling, joint product pricing, discounts, or loss leaders. It may
also indicate a new promotion strategy such as push, pull, balanced, short term sales
generation, long term image creation, informational, comparative, affective, reminder,
new creative objectives, new unique selling proposition, new creative concepts, appeals,
tone, and themes, or a new advertising agency. It might also indicate a new distribution
strategy, new distribution partners, more extensive distribution, more intensive
distribution, a change in geographical focus, or exclusive distribution. Little of this
intelligence is definitive: additional information is needed before conclusions should be
drawn.

A competitor's media strategy reveals budget allocation, segmentation and targeting

strategy, and selectivity and focus. From a tactical perspective, it can also be used to help
a manager implement his/her own media plan. By knowing the competitor's media buy,
media selection, frequency, reach, continuity, schedules, and flights, the manager can
arrange his/her own media plan so that they do not coincide.

Other sources of corporate intelligence include trade shows, patent filings, mutual
customers, annual reports, and trade associations.

Some firms hire competitor intelligence professionals to obtain this information.

20
2.4 NEW COMPETITORS:

In addition to analyzing current competitors, it is necessary to estimate future competitive

threats. The most common sources of new competitors are:

• Companies competing in a related product/market

• Companies using related technologies
• Companies already targeting your prime market segment but with unrelated
products
• Companies from other geographical areas and with similar products
• New start-up companies organized by former employees and/or managers of
existing companies

The entrance of new competitors is likely when:

• There are high profit margins in the industry

• There is unmet demand (insufficient supply) in the industry
• There are no major barriers to entry
• There is future growth potential
• Competitive rivalry is not intense
• Gaining a competitive advantage over existing firms is feasible

21
Products of Competitors: Products

Nag Champa, Natural, Ajaro, Aastha, Geet Govind, Super Hit, Black
Shrinivas ,Blossom, Royal, Masala Chandan, Sai Ram, Rajdhani, Neelkant, Siddhi,
Sugandhalaya Vinayak, Satya Fresh Rose, Satya Super Sandal, Tufan, Ritugandha,
Parijhatak and many more.
Panchavati 4 in 1, Shivam Dhoop Bathi, Himalaya, Dil Mini Pouch,
Bharat Industrial
Panchavati Flora, Sai Baba 2 in 1, Panchavati Dhoop Double Size,
Corporation
Panchavati Dhoop Small, Panchavati Dasang Dhoop, Sandal Dhoops
Ranga Rao & Sons Cycle 3x1, Rhythms, Sandalum, N.R., Woods
Chandan, Lyrics, Spiritual Guide, Gulistan, Brindavan Sandal, Juhi,
Padmini Products
Padmini Incense, Pakeezah, Padmini Dhoop.
Parimal Mandir Bharat Vasi, Moments, Rainbow 7x1
Aravinda Parimal
Sugandha Sringar, Sugandha Sringar Gold
Works
N. K. Subaiah Setty
Sugandha Kokila
& Sons
Sri Balakrishna
Danka Sugandh, Danka Sugandh Gold
Perfumery Works
Baikery Industries Shivaranjani
Gajanana
Vaishnavi Flora, Mangaladevi, Harileela, Chafa Flora
Perfumery Works
Akash Phool, Swarna Champa, Swarna Mallika, Swarna Gulab, Swarna
Moksh Agarbathi
Chandan, Swarna Night Queen, Swarna Mogra, Swarna Sugandha 4in1,
Co.
Swarna Kasturi, Swarna, Divya Sugandh
Mysore Temple Bell
Devika Flora, Vidarbha, Ashwamegha, Navaratna, Sublakshmi, Hawan
Agarbathi Works
Laxmi
Gayatri Hirva Chaffa, Gajra, Radhe Radhe, Sanskar, Gulab
Sugandhalaya
Prabhu Darshan, Krishna Leela, Ganesh Flora, Mangalam, Bhagwat,
Nikhil Products
Ananda, Jai Jaganath Pouch
Elite Agarbathi
Panadi, Wonderwood, Prabhu Pooja, Toofan, Sandal
Works
Amber Aromatics Super Mogra, Super Sandal, Amber Flora, Ratnamala
Asoka Trading Bharat Darshan
Adarsh Aromatics Master Gold
B. V. Aswathiah &
Nandi Mist, Joy, Madhu Mallika, Nandi Flora, Sandal, Rose
Bros.
Aparanji Industries Sugandha Swarna, Sugandha Gold.
Tejas Incense Co. Sri Sai Flora
Ambica Chemical
Ambica Heaven
Products
Vasu Agarbathies Heritage
Hem Corporation Precious Chandan
Rajalakshmi
Phoshak
Perfumery Works

22
Balaji Agarbathi Balaji 100, Om Sree Sai, Chandanam, Agarwood, Nad Al Oodh, Golden
Co. Flora
Shubha Mangla
Shubha Mangla Chandan, Heena
Industries
Jayant Agarbathi
Rolex Rose, Rolex, Maratha Peshwa
Co.

Pradhan Perfumers Royal Life

Omkar Parimal
Supreme, Shiva
Works
Orkay Fragrances Brinda
Ashok Agarbathi
Mogra, Chandan, Panadi, Parijatha
Works
Mysore Y.S.
Delite, Kewda, Parijatha
Agarbathi Works

Chamundeshwari Computer Sambrani Dhoop, Chamundeshwari Sandal

Vedavyasa Parimal Dhoop, Three Saints Dhoop, Chamundeshwari Maha Maruthi Dasangam,
Works Sandal & Rose Dhoop, Chamundeshwari Sandal Powder, Chamundeshwari
Kum Kum, Chamundeshwari Cones.

Anupam Industries Mangal Murti Rose, Gugal, Loban, Dasangam & Chandan Dhoop Sticks
Vasant Products Kesar Special & Akshar Dham Dhoop Sticks
Alpine Fragrance Jagat Jyothi Camphor
Ratilal & Co. G. F. Camphor
Gokul Sandal Powder
Sri Raghavendra
Rose Benzoin, Singapore Shibolga Loban Powder, Crystal Dhoop
Soapnut Works

Arochem Industries Roll On – Sukhad, Champa, Attar Phool, Millennium

Health Products Rose Water

Om Shanti Om, Rambakth Hanuman, Maha Shivaratri, Divine, Fragrance,
Fragrance India
Divine Sandal, Hare Krishna

2.5 ABOUT CYCLE:

23
Cycle brand is owned by Bangalore based N Rangarao and sons. NRS were pioneers in
branding this difficult market and Cycle brand is one of the largest agarbatti brand in
India which have a market share of 8%.

Cycle brand was launched in 1948. In this commodity market, Cycle was positioned as a
premium agarbatti brand. The brand was trying to differentiate by good packaging,
marketing campaigns and quality. Cycle 3-in -one is the most popular which have three
different fragrance sets of agarbattis in one pack.

Cycle brand has established itself in the market with some good marketing campaigns
with emphasis on quality and fragrance.
The Rs 130-crore NRRS — which also manufactures the Lia, Rhythm, Flute and
Nature’s Gift brands — is one of the few organized players in an industry with almost no
big names. However, in the recent past, the domestic agarbatti market — which has
grown at a CAGR of around 15% over the last five years, and is expected to grow at
roughly the same rate over the next five — has seen a fair bit of action, with the likes of
Hindustan Lever-SC Johnson (Glade), Reckitt Benckiser (Haze) and ITC (Mangaldeep)
entering the market.

2.6 ABOUT NANDHI:

24
M/s B.V Aswathaiah & Bros, a legend in the agarbathi venture is a 60 year old tradition
of fragrance and faith.

Our Products of excellence: Deluxe Sandal, Nandi Diamond, Deluxe Rose, Nandi Joy,
Nandi Mist and a host of others are cratered with care to reverberate tranquility and joy
amongst our committed clientele who return to us year after year.

Research has proved that pleasant odors do make a person more active. It also causes the
cells to trigger signals and stimulate various physiological responses.

One of the most important things about incense is that reduces stress.

Nature has gifted the sense of smell to identify the most pleasant odors. Your choice will
be the best and our desire is to make sure you will have it.

2.7 ABOUT ONAM

Profile
Endowed with the understanding of the subtle nuances of agarbathi making and inspired
by the secular feature of manufacture and export of incense sticks, cones, dhoops with
various types of fragrances like: floral, fruity, spice etc. Onam is a master of creativity
and innovation. With a humble beginning in 1962 with just one brand ‘ONAM’, we have
become a leading manufacturer and exporter with various categories of product range.
Our relentless service and high level of consistency in terms of our products quality have
helped us to bag many achievements. Today, our brand reaches to every nook and corner
of India and many parts of the world.

Products
We are leading manufacturer and exporter of incense sticks, cones, dhoops and pooja
items that includes:

25
• Incense Sticks
• Incense Cones
• Dhoop Stems
• Dhoop Sticks
• Hawan Samagri
• Kum Kum
• Vibhuti
• Sandal
• Guggul
• Loban

Our Incense Sticks are available in various fragrances like:

• Champa
• Boquet
• Jasmine
• Intimate
• Lavender
• Loban
• Lilly
• Oodh
• Lotus
• Sandal
• Rose
• Lilly of Valley
• Tuberose
• Floral
• Honeysuckle
• Kewra
• Peach
• Patchouli
• Frankincense

26
 • Cinnamon

Banana Product Category:

• Hexagonal
• Square
• Flat Box (pouch)
• 12" Long Box
• 16" Long Box
• Gift package
• Drawer Sachets
• Perfumed Cones
• Perfumed Dhoop Stems

Members

• Federation of Karnataka Chambers of Commence & Industry, Bangalore

• Karnataka Small Scale Industries Association, Bangalore.
• All India Agarbathi Manufacturers Association, Bangalore.
• The Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council,
Mumbai.
• India Trade Promotion Organization, New Delhi.

27
2.8 ABOUT SONA CHANDI:

Shankar Perfumery Works started its operations in the year 1963, in Bangalore India.
Manufacturers & exporters of agarbatti, incense sticks, from 1963. Our incense sticks,
agarbatti brands like Sona Chandi agarbatti, Kumbha agarbatti Black Diamond incense
sticks, Mangala theepam flora agarbatti & Cinnamon Masala incense sticks are well
known internationally.

Shankar Perfumery Works made an beginning in the year 1963, in Bangalore India. The
founder Shri K.R. Sathyanarayana Setty, laboured to make this unit into one of the major
manufactures of "Masala" perfumed and "Scented" Agarbathies.
Shankar Perfumery Works started into the production of Darbar bathi / Flora agarbattis
100 kgs. A day and it was sold only to hand full of customers at Kolkatta market,
gradually sons of K.R.Sathyanarayana Setty, K.S. Shankar, K.S. Ramanath & K.S. Shiva
prasad joined the business thereby strengthening the hands of K.R. Sathayanarayana
Setty.

Today the production of Shankar Perfumery Works is above 2500 tons per year. Till
1983 Shankar Perfumery Works was manufacturing only Darbar Indian traditional
agarbatti and masala flora batties with the limited market. Shankar Perfumery Works
made a beginning with the brand "Satyam" in scented and "Kumbha" in Halmaddi / flora
agarbathies and followed by many other successful brands. Today shankar perfumery
works products like Sona Chandi agarbathi, Kumbha flora agarbathi, Black Diamond
Indian incense sticks, Mangala theepam flora agarbatti & Cinnamon Masala / flora
bathies, are very well know in international markets.Company has catering these products
to the international market for the passed 2 decades.Since last decade company is striving
to globalise their products 100%. As on today 35% company share is with overseas
markets only.

28
Today, they have more than 40 years of experience manufacturing Indian incense sticks
of flora / masala / sented / perfumed incense sticks, we are pioneers in high class flora
agarbathis, and we have our own R&D unit all the process of our products takes in house
only. They exporters of our Indian incense sticks to more than 23 countries across the
globe. We are catering more than 150 flavours, today, with a strong staff of 200 plus
people.

CHAPTER 3

3.1 BACK GROUND OF THE PROBLEM:

To bring Mangaldeep as a Market Leader, the sales have to be increased drastically,

but there are certain problems that have to be faced, since the product is Agarbathi
such problems exist they are:

• People lack brand loyalty when they purchase Agarbathi

• Buy whichever is available
• Lack of awareness about Mangaldeep
• Buy whenever schemes are introduced
• Shifting from Mangaldeep to Cycle or to other brands
• Shifting from cycle or other brands to Mangaldeep

3.2 MAIN OBJECTIVE:

TO MAKE ITC MANGALDEEP A MARKET LEADER

29
Objectives:
• What are the expectations of the consumers from our product Mangaldeep? In
what way is cycle (3 in 1) better than Mangaldeep?

• Reasons behind the consumers choosing cycle 3 in 1 than Mangaldeep 5 in 1

• Reasons behind consumers shifting from Mangaldeep 5 in 1 to cycle 3 in 1

• Reasons behind consumers choosing Mangaldeep 5 in 1 for cycle 3 in 1 and also

the to know why they have shifted from cycle 3 in 1 to Mangaldeep 5 in 1

• To know what impact the consumers have on Mangaldeep 5 in 1, have reached

the consumers effectively, how do they place the product?

3.3 LIMITATIONS OF THE PROJECT:

The market research has its own limitations, the field study is done in specific areas and
the sample size may be small, to come to conclusions.
There may be some problems like:
1. Sampling errors
2. Questionnaire errors
3. Errors in data entry
4. Errors of respondents

Some others drawbacks for mangaldeep ITC can be:

1. Lack of awareness about the brand
2. Lack of awareness about the advertisements
3. Lack of brand loyalty
4. Availability of substitutes

Chapter 4

4.1 RESEARCH PROCESS

30
The research process includes the various steps

Fig 5.1 Steps followed in this research process

4.2 RESEARCH DESIGN

31
A research design is a framework for conducting the marketing research project .it details
the procedures necessary for obtaining the information needed to structure or solve
marketing research problems.

There are many ways to get information. The most common research methods are:
literature searches, talking with people, focus groups, personal interviews, telephone
surveys, mail surveys, email surveys, and internet surveys.

A literature search involves reviewing all readily available materials. These materials
can include internal company information, relevant trade publications, newspapers,
magazines, annual reports, company literature, on-line data bases, and any other
published materials. It is a very inexpensive method of gathering information, although it
often does not yield timely information. Literature searches over the web are the fastest,
while library literature searches can take between one and eight weeks.

Talking with people is a good way to get information during the initial stages of a
research project. It can be used to gather information that is not publicly available, or that
is too new to be found in the literature. Examples might include meetings with prospects,
customers, suppliers, and other types of business conversations at trade shows, seminars,
and association meetings. Although often valuable, the information has questionable
validity because it is highly subjective and might not be representative of the population

4.2.1 RESEARCH METHODS:

32
Exploratory Research:

Exploratory research is one type of research design, which is done for this research which
has its primary objective the provision of insights into and comprehension of the problem
situation confronting the researcher. This research is done here as to define the problem
more precisely , identify relevant course of action or gain additional insights before
approach could be developed.

The methods adopted under exploratory research are:

1. Observation and
2. In-depth interviewing technique
3. secondary data analysis

Descriptive research:

Descriptive research or statistical research provides data about the population or

universe being studied. But it can only describe the "who, what, when, where and how"
of a situation, not what caused it. Therefore, descriptive research is used when the
objective is to provide a systematic description that is as factual and accurate as possible.
It provides the number of times something occurs, or frequency, lends itself to statistical
calculations such as determining the average number of occurrences or central
tendencies.

One of its major limitations is that it cannot help determine what causes a specific
behaviour, motivation or occurrence. In other words, it cannot establish a causal
research relationship between variables.

The methods adopted under descriptive research are:

1. Telephonic interviews

33
 2. Consumer surveys
3. In- home personal interviews
4. Mall intercept personal interviews
5. E-mail interview
6. Internet interviews

Consumer Surveys Facilitate Decision Making

The most successful companies in the world rely on consumer surveys to assess their
particular market and the attitude of its consumers. Making assumptions about your
market is simply not enough. Failing to have quantitative research to back up your
marketing strategies can be costly. You must be able to present your product, service or
brand in ways that will be acceptable to your target. That is why regularly conducting
consumer surveys is critical to business success.

Consumer surveys can tell you:

• The demographics of your target audience, including: age, gender, income,

marital status, educational level and leisure activities
• Why people make certain purchasing decisions
• When and where people shop
• If people have a need for your product or service
• If there is an untapped market for your product or service
• Current awareness of your brand versus your competitors'
• People's buying habits

4.2.2 Secondary data analysis:

34
Secondary data analysis can be literally defined as second-hand analysis. It is the
analysis of data or information that was either gathered by someone else (e.g.,
researchers, institutions, other NGOs, etc.) or for some other purpose than the one
currently being considered, or often a combination of the two (Cnossen 1997).

If secondary research and data analysis is undertaken with care and diligence, it can
provide a cost-effective way of gaining a broader understanding of specific phenomena
and/or conducting preliminary needs assessments.

Secondary data are also helpful in designing subsequent primary research and, as well,
can provide a baseline with which to compare your primary data collection results.
Therefore, it is always wise to begin any research activity with a review of the secondary
data the final report to look like, a list of the types of data that you need to collect, and a
preliminary list of data sources.

SOURCES OF SECONDARY DATA:

Official Statistics: Official statistics are statistics collected by governments and their
various agencies, bureaus, and departments. These statistics can be useful to researchers
because they are an easily obtainable and comprehensive source of information that
usually covers long periods of time.

However, because official statistics are often “characterized by unreliability, data gaps,
over-aggregation, inaccuracies, mutual inconsistencies, and lack of timely reporting”
(Gill 1993), it is important to critically analyze official statistics for accuracy and
validity. There are several reasons why these problems exist:

1. scale of official surveys generally requires large numbers of enumerators

(interviewers) and, in order to reach those numbers enumerators contracted are often
under-skilled;

35
2. The size of the survey area and research team usually prohibits adequate supervision
of enumerators and the research process; and
3. Resource limitations (human and technical) often prevent timely and accurate
reporting of results.

Technical Reports: Technical reports are accounts of work done on research projects.
They are written to provide research results to colleagues, research institutions,
governments, and other interested researchers. A report may emanate from completed
research or on-going research projects.

Scholarly Journals: Scholarly journals generally contain reports of original research or

experimentation written by experts in specific fields. Articles in scholarly journals
usually undergo a peer review where other experts in the
same field review the content of the article for accuracy, originality, and relevance.

Literature Review Articles: Literature review articles assemble and review original
research dealing with a specific topic. Reviews are usually written by experts in the field
and may be the first written overview of a topic area. Review articles discuss and list all
the relevant publications from which the information is derived.

Trade Journals: Trade journals contain articles that discuss practical information
concerning various fields. These journals provide people in these fields with information
pertaining to that field or trade.

Reference Books: Reference books provide secondary source material. In many cases,
specific facts or a summary of a topic is all that is included. Handbooks, manuals,
encyclopedias, and dictionaries are considered.

Under standing the market for Agarbathi

36
The size of market is quite big, there are around 395 players in Chennai alone .The major
players are:

AGARBATTI Sales unit in sticks

N RANGA RAO & SONS CYCLE 3 IN 1 1,558.60

I T C MANGALDEEP 530.9

N RANGA RAO & SONS CYCLE 299.9

B V ASWATHIAH & BROS NANDI 265.3

PADMINI PRODS PADMINI 256.6

PARIMAL MANDIR SHANTI NIKETAN 245.5

PARIMAL MANDIR PARIMAL 241.4

LOCAL LOCAL 020 STICKS 233.2

LOCAL LOCAL 100 STICKS 230.3

The market share value of the major players

MS Val (Sticks) -
AGARBATTI Agarbatti

37
 N RANGA RAO & SONS CYCLE 3 IN 1 22.1

I T C MANGALDEEP 6.4

N RANGA RAO & SONS CYCLE 5.1

LOCAL 020 STICKS 4.9

B V ASWATHIAH & BROS NANDI 4.8

PADMINI PRODS PADMINI 4.5

PARIMAL MANDIR PARIMAL 4.4

PARIMAL MANDIR SHANTI NIKETAN 3.9

The market share vol and value is shown below:

MS VAL (in
AGARBATTI MS VOL (sticks) lakhs)

N RANGA RAO & SONS CYCLE 3 IN 1 23.6 539.1

I T C MANGALDEEP 8.1 169.8

N RANGA RAO & SONS CYCLE 4.6 124.6

LOCAL LOCAL 020 STICKS 4.2 118.9

B V ASWATHIAH & BROS NANDI 3.9 116.6

PADMINI PRODS PADMINI 3.6 109.2

PARIMAL MANDIR PARIMAL 3.6 106

PARIMAL MANDIR SHANTI NIKETAN 3.6 96.2

38
 The price of the pack with the no of sticks is given below:

AGARBATTI Sticks per pack Price per pack

N RANGA RAO & SONS CYCLE 3 IN 1 35 12

I T C MANGALDEEP 24 8

N RANGA RAO & SONS CYCLE 32 13

LOCAL LOCAL 020 STICKS 20 10

B V ASWATHIAH & BROS NANDI 33 14

PADMINI PRODS PADMINI 36 16

PARIMAL MANDIR PARIMAL 24 11

PARIMAL MANDIR SHANTI NIKETAN 12 5

From the above data:

The market leader : N RANGA RAO & SONS CYCLE 3 IN 1

The market challenger : I T C MANGALDEEP

39
 CYCLE 3 IN 1 VS MANGALDEEP

In lakhs

DESCRIPTION CYCLE 3 IN 1 MANGALDEEP

SALES UNITS IN STICKS 1,558.60 530.9

SALES UNITS IN PACKS 44.6 22.5

MS VOL (STICKS) 23.6 8.1

VALUE (LAKHS) 539 180

MS VALUE(STICKS) 22.1 6.4

WT VAL (RETAIL OUTLETS) 89% 59%

OFF TAKE IN STICKS 4,949 3,466

OFF TAKE IN PACKS 142 146

PRICE PER PACK 12 8

NO OF STICKS PER PACK 35 24

40
When cycle 3 in 1 is compared with Magaldeep,

 The sales units in sticks for Cycle 3 in 1 is three times of Mangaldeep,

i.e. it is in the ratio 3:1

 the sales units in packs is in the ratio 2:1,ie for every two pack sales of Cycle 3 in
1 ,there one pack sale in Mangaldeep .

 The market share price in sticks is also in the ratio of 3:1

 In 89% of retail outlets Cycle 3 in 1 is available and 59% of retail outlets

Mangaldeep is available.

 The pricing and the no of sticks per pack for Mangaldeep is lower than Cycle 3
in1.

 Cost of producing one stick of Agarbathi

• In Cycle 3 in 1 is 35 paise

• In Mangaldeep is 33 paise

41
4.2.3 SAMPLING TECHNIQUES:

It is incumbent on the researcher to clearly define the target population. There are no
strict rules to follow, and the researcher must rely on logic and judgment. The population
is defined in keeping with the objectives of the study.

Sometimes, the entire population will be sufficiently small, and the researcher can
include the entire population in the study. This type of research is called a census study
because data is gathered on every member of the population.

Usually, the population is too large for the researcher to attempt to survey all of its
members. A small, but carefully chosen sample can be used to represent the population.
The sample reflects the characteristics of the population from which it is drawn.

Sampling methods are classified as either probability or nonprobability. In probability

samples, each member of the population has a known non-zero probability of being
selected. Probability methods include random sampling, systematic sampling, and
stratified sampling. In nonprobability sampling, members are selected from the
population in some nonrandom manner. These include convenience sampling, judgment
sampling, quota sampling, and snowball sampling. The advantage of probability
sampling is that sampling error can be calculated. Sampling error is the degree to which a
sample might differ from the population. When inferring to the population, results are
reported plus or minus the sampling error. In nonprobability sampling, the degree to
which the sample differs from the population remains unknown.

42
The target populations for this research are house wifes, women above the age of 25, all
shopkeepers & other retailers. The main sampling technique adopted here are

1. Random sampling
2. Judgment sampling
3. convenience sampling

Random sampling is the purest form of probability sampling. Each member of the
population has an equal and known chance of being selected. When there are very large
populations, it is often difficult or impossible to identify every member of the population,
so the pool of available subjects becomes biased.

Judgment sampling is a common nonprobability method. The researcher selects the

sample based on judgment. This is usually and extension of convenience sampling. For
example, a researcher may decide to draw the entire sample from one "representative"
city, even though the population includes all cities. When using this method, the
researcher must be confident that the chosen sample is truly representative of the entire
population.

Convenience sampling is used in exploratory research where the researcher is interested

in getting an inexpensive approximation of the truth. As the name implies, the sample is
selected because they are convenient. This nonprobability method is often used during
preliminary research efforts to get a gross estimate of the results, without incurring the
cost or time required to select a random sample.

43
 CHAPTER 5: METHODOLOGY

5.1 AREAS UNDER COVERAGE:

The field study was done in two main cities in Tamilnadu with a sample size of 600:

PLACE SAMPLE SIZE

CHENNAI 300
COIMBATORE 300

Main Areas covered in the cities are:

CHENNAI COIMBATORE
Nungambakkam Ramanathapuram
Kodambakkam Nanjundapuram
Egmore Singanallur
Tnagar Gandhi Puram
Bezant nagar Ram Nagar
Ashok Nagar R S Puram
Crompet Ganapathy
Thambaram Selva Puram
Chetpat Town Hall
Choolaimedu Citra
Mount Road Race Course
Santhome Sungam
Anna nagar Pothanur
West Mamblam Peelamedu
Adayar Krishna colony

5.2 OBSERVATIONS:

44
 • Agarbathi users prefer mild odor because, the users suffer from headache,
asthma & vcing problems.
• Local brand aggarbathis are sold door to door at cheaper prices.
• People expect more no of schemes to be offered.
• 10 % of users don’t even know what brand of agarbathi they use.
• 13% users feel that Mangaldeep has very strong fragrance.
•

5.3 HYPOTHESIS:

• The advertising of cycle (3 in 1) does not affect the sales of Mangaldeep (5 in 1)

• Mangaldeep (5 in 1) fragrance is not as strong as cycle 3 in 1.

• Advertising does not have an impact on purchase intention for Mangaldeep 5 in 1

• Pricing of Mangaldeep 5 in 1 does not affect its sales.

• Packaging of Mangaldeep 5 in 1 has no impact on its sales.

• Consumers of Mangaldeep never shift to cycle 3 in 1

• Consumers of cycle 3 in 1 never shift to Mangaldeep 5 in 1.

• Mangaldeep 5 in 1 consumers are more satisfied with the product than the
consumers of cycle 3 in 1.

• Product awareness is low for Mangaldeep 5 in 1 than cycle 3 in 1

• Brand name does not have an impact on sales of Mangaldeep 5 in1.

CHAPTER 6 FINDINGS

45
6.1 RESULTS OF THE SURVEY:

BRAND AWARENESS

30
25
20
% AWARE 15
10
5
0
1 2
CHENNAI COIMBATORE

B R AN D USAGE

COIMB ATORE
2
CITIES

CHENNAI
1

0 5 10 15 20 25 30
% US AGE

46
 A W A R EN ES S A B O U T ITC

30
25
20
% A W AR 1E5
10
5
0
1 2
C HEN N A I C O IMB A TO R E

AWARENESS ABOUTSCHEMES

CHENNAI
64

63
% AWARE

62

61

60 COIMBATORE

59

58
1
2
CITIES

Percentage shifted from Mangaldeep to Cycle:

47
At Chennai:

Shifted From

At Coimbatore:

S H IF T

Not Shifted from

S h i f83%
Mangaldeep te d t o C1 4y
Percentage shifted from Cycle to Mangaldeep:

48
At Chennai:

Shifted From

At Coimbatore:

S H IF T E

Not shifted ,85%

FromCycle
6.1.1 REASONS BEHIND SHIFTING OF BRANDS:
Why are the users shifting from Mangaldeep to Cycle?

49
 • When they get offers in cycle
• when they get attracted by the add of cycle
• When they get an purchase intention by the add
• When they feel that fragrance of cycle is better than Mangaldeep

Why are users shifting from Cycle to Mangaldeep?

• When the product is at a offer period
• When the users feel that Mangaldeep has a better fragrance
• When they have choice of products.
• When there are not particular about brands.

6.1.2 REASONS BEHIND NOT USING MANGALDEEP

 NOT AWARE ABOUT MANGALDEEP

 SATISFIED WITH THE CURRENT BRAND
 BUY WHICHEVER IS AVAILABLE
 NOT PARTICULAR ABOUT BRANDS

R E SO N S

80

50
60
6.1.3 Statistics about Chennai:
• 28% of users use Mangaldeep out of which 15% are users shifted from cycle
to Mangaldeep
• 16 % of the users have again shifted back to cycle from Mangaldeep
• 29 % are aware about Mangaldeep whereas 95 % were aware about cycle.
• 23 % of users aware about ITC
• 64 % were aware about the schemes offered by Mangaldeep

6.1.4 Statistics about Coimbatore:

• 20% of users use Mangaldeep out of which 41% are users shifted from cycle to
Mangaldeep
• 14 % of the users have again shifted back to cycle from Mangaldeep
• 23 % are aware about Mangaldeep whereas 100 % were aware about cycle.
• 20 % of users aware about ITC
• 60 % were aware about the schemes offered by Mangaldeep

6.1.5 FRAGRANCE OF CYCLE VS MANGALDEEP

Fragrance of Mangaldeep:

51
 FR

Ve r y St r o n g ,
Fragrance of Cycle:

CHAPTER 7 ANALYSIS OF SPSS

S t ro n g
7.1 REGRESSION BETWEEN AGE & PURCHASE MADE:

H0: The purchase of mangaldeep is not dependent on the age of customer.

52 St r o n g ,
H1 : The purchase of mangaldeep is dependent on the age of customer

Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 age(a) . Enter
A All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .63 .3969 .35 1.155
a Predictors: (Constant), age

Coefficients(a)

Unstandardized Coefficients Standardized Coefficients

Beta Sig.
Model B Std. Error

(Constant) 1.758 .159 .000

1
Age 1.132E-02 .005 .129 .86
a Dependent Variable: purchase_made

We can conclude from the above tables that the age is not a factor that affects the buying
behavior. So therby regardless of age people’s preferences do not change.

7.2 STICKS PER USE & PURCHASE MADE

H0: The purchase made is not dependent on the sticks per use
H1: The purchase made is not dependent on the sticks per use

53
 Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 sticks per use(a) . Enter
a All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .67 .448 .39 1.01
a Predictors: (Constant), sticks per use

Coefficients(a)

Unstandardized Coefficients Standardized Coefficients

Beta Sig.
Model B Std. Error

(Constant) 1.458 .144 .000

1
sticks per use 1.01 .145 .38 .89
a Dependent Variable: purchase_made

From the study made, we can conclude that there is a small relation of the purchase
behavior with respect to the sticks per use but since there is a positive relation as the
sticks per use increase we can expect a rise in the purchase behavior.

7.3 USAGE PER DAY:

H0: The purchase made is not dependent on the usage per day

54
H1: The purchase made is dependent on the usage per day

Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 usage per day(a) . Enter
a All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .010(a) .000 -.002 1.157
a Predictors: (Constant), usage per day

Coefficients(a)

Unstandardized Coefficients Standardized Coefficients

Beta Sig.
Model B Std. Error

(Constant) 1.963 .143 .000

1
usage per day 2.125E-02 .142 .59 .881

This shows the relation between the purchase behavior and usage per day . This also
shares the same relation as sticks per use. But is more strongly relate. If the sticks
increase the purchase increases.

7.4 AWARENESS OF MANGALDEEP:

H0: The purchase made is not dependent on the awareness of Mangaldeep

55
H1: The purchase made is dependent on the awareness of Mangaldeep

Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 Awareness of mangaldeep(a) . Enter
a All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .71 .49 .44 1.156
a Predictors: (Constant), awareness of mangaldeep

Coefficients(a)
Unstandardized Standardized
Coefficients Coefficients
Beta Sig.
Model B Std. Error

(Constant) 1.969 .058 .000

1 awareness of -6.576E-02 .208 .27 .96
mangaldeep
a Dependent Variable: purchase_made

Since the awareness is less the people who buy Mangaldeep are less. So awareness is a
strong point to be focused on in the sales of the brand.

7.5 AWARENESS OF ITC:

56
H0: The purchase made is not dependent on the awareness of ITC
H1: The purchase made is dependent on the awareness of ITC

Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 awareness of ITC(a) . Enter
a All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .7(a) .49 .45 1.156
a Predictors: (Constant), awareness of ITC

Coefficients(a)

Unstandardized Coefficients Standardized Coefficients

Beta Sig.
Model B Std. Error

(Constant) 1.934 .054 .000

1
awareness of ITC .135 .166 .15 .419
a Dependent Variable: purchase_made

ITC has to be linked with Mangaldeep during the awareness campaign. ITC being a
company of repute, can exploit its brand image to bring an image for Mangaldeep.

7.6 AWARENESS OF CYCLE:

57
H0: The purchase made is not dependent on the awareness of Cycle
H1: The purchase made is dependent on the awareness of Cycle

Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 awareness of cycle(a) . Enter
a All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .62 .384 .37 1.156
a Predictors: (Constant), awareness of cycle

Coefficients(a)

Unstandardized Coefficients Standardized Coefficients

Beta Sig.
Model B Std. Error

(Constant) 2.059 .280 .000

1
awareness of cycle -.132 .284 -.019 .642
a Dependent Variable: purchase_made

This shows that people who buy Cycle are the ones who are only aware of the brand.
Lesser the awareness of cycle, more the purchase of mangaldeep.

58
7.7 AWARENESS ON SCHEMES:

H0: The purchase made is not dependent on the awareness of schemes

H1: The purchase made is dependent on the awareness of schemes

Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 awareness of schemes(a) . Enter
a All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 . 86(a) .007 .73 1.186
a Predictors: (Constant), awareness of schemes

Coefficients(a)
Unstandardized Standardized
Coefficients Coefficients
Beta Sig.
Model B Std. Error

(Constant) 1.926 .108 .000

1 awareness of -.150 .189 .11 .428
schemes
a Dependent Variable: purchase_made

This shows a relation such that when there are better schemes offered, more purchase will
be made for the Mangaldeep.

59
7.8 FRAGRANCE OF MANGALDEEP:

H0: The purchase made is not dependent on the fragrance of Mangaldeep

H1: The purchase made is dependent on the fragrance of Mangaldeep

Variables Entered/Removed(b)
Model Variables Entered Variables Removed Method
1 fragrance of mangaldeep(a) . Enter
a All requested variables entered.
b Dependent Variable: purchase_made

Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .176(a) .031 .028 1.172
a Predictors: (Constant), fragrance of mangaldeep

Coefficients(a)
Unstandardized Standardized
Coefficients Coefficients
Beta Sig.
Model B Std. Error

(Constant) 2.450 .145 .000

1 fragrance of -.265 .082 .38 .781
mangaldeep
a Dependent Variable: purchase made

Fragrance is not affecting the purchase behavior of Mangaldeep much, because people
are rather happy with the fragrance.

60
7.9 SUMMARY:

Coefficients

Unstandardized Standardized Sig.

Coefficients Coefficients
Model B Std. Error Beta
1 (Constant) 2.636 .686 .000
age 1.132E-02 .005 .129
.86
sticks per -9.167E-02 .141 .38 .817
use
usage per 2.125E-02 .142 .59 .881
day
awareness of .208 .27 .753
mangaldeep
awareness of .135 .166 .15 .419
ITC
awareness of -.161 .324 -.030 .621
cycle
awareness of -.150 .189 .11 .428
schemes
fragrance of -.265 .082 .38 .781
mangaldeep

Dependent Variable: purchase_made

61
CHAPTER 8 RECOMMENDATIONS & SUGGESTONS

• Lack of awareness is a major problem which stops us to take a lead, so I would

suggest that intensive advertising promotion should be made i.e. Attack the
leader by increasing expenditures on advertising and promotion It makes sense
only when the add is far superior that the competitors

• Advertising can be done in all mediums like TV, Radio, and Magazines. .etc .On
the whole effective advertising in the media is necessary. The advertisement
should develop a purchase intension in the minds of the viewers

• To make the buyers more loyal towards the brand, give more discounts and offers
For e.g. :if u can give a coupon inside the pack of Agarbathi, if ten coupons are
collected ,one pack can be given free or any small gifts can be given. Such offers
may develop a brand loyalty towards Mangaldeep

• Product proliferation : introduce the products with lots of variety, this will give
the buyer more choice
For e.g.: New Mangaldeep Tulips.

• Distribution innovation: a new channel of distribution should be selected so that

the product reaches them easily.

• Offer sample packs to all outlets so that the product gains awareness
• Sample packs can also be given with some local magazines which are being sold.

62
CHAPTER 9

9.1 APPENDICE

Questionnaire

Name:

Age:

Address:

.1. Are you a regular user of Aggarbathi?

o Yes
o No

2. Are you aware about the brand Mangaldeep 5 in 1?

o Yes
o No

3. What brand of Aggarbathi do you use?

o Mangaldeep 5 in 1
o Cycle 3 in 1

63
 o If others please specify:

4. How often do you buy Agarbathis?

o Monthly once
o Monthly twice
o Weekly once

5. How many Agarbathis do you light together?

o One at a time
o Two to five
o Five or more

6. How many times do you light Agarbathis in a day?

o Daily once
o Daily twice
o Two or more times

7. What is the best about the product Mangaldeep 5in 1

o Variety
o Quality
o Fragrance
o Pricing

8. Do you purchase Mangaldeep 5 in 1 because of its brand name ITC?

Yes No

9. Do you purchase Mangaldeep 5 in 1 only at special schemes, offers and

promotion packages?

Yes No

64
10. Rate the following brands in the 5 point scale:

For Mangaldeep 5 in 1:
High 5 4 3 2 1 low

Quality Quality

Quantity Quantity

Pricing Pricing

Advertising Advertising

Packaging Packaging

Fragrance Fragrance

11. Have you shifted from cycle 3 in 1 to Mangaldeep 5 in 1? If so why?

o 5 in 1 has additional fragrance

o Quality is better
o Quantity is more
o Brand name

If other reasons please specify:

12. I purchase Mangaldeep 5 in 1 because of the,

65
 o Brand name
o Quality
o Quantity
o Packaging
o Advertising

13. Rate the following brands in the 5 point scale:

For cycle 3 in 1:

High 5 4 3 2 1 low

Quality Quality

Quantity Quantity

Pricing Pricing

Advertising Advertising

Packaging Packaging

Fragrance Fragrance

14. Have you shifted from Mangaldeep 5 in 1 to cycle 3 in 1? If so why?

o 3 in 1 has better fragrance

o Quality is better
o Quantity is more
o Brand name

If other reasons please specify:

15. I buy cycle 3 in 1 because,

o Brand name

66
 o Quality
o Quantity
o Packaging
o Advertising

16. Choose the brand according to characteristics mentioned below

Cycle 3 in 1 vs Mangaldeep 5 in 1

FEATURES MANGALDEEP 5 IN 1 CYCLE 3 IN 1

Quality

Quantity

Fragrance

Pricing

Packaging

Brand name

Advertising

17. Are you aware about the special packages offered by Mangaldeep?

 Parachute oil free with Mangaldeep

 Jar scheme
 Others

18. When you purchase Agarbhathi on what basis you select your brand?

o Which ever is cheaper

67
 o One with strong fragrance
o One which has more number of sticks
o Buy whichever is available
o Because of shopkeepers recommendation
o Buy according to your perception

19. Rate the following brands according to your perception:

Agarbhathi Excellent VGood Good Average Bad VBad

CYCLE 3 IN 1

MANGALDEEP
5 IN 1

NANDHI

PADMINI

PARIMAL

20. What is your most preferred fragrance type in Mangaldeep?

o Jasmine
o sandal
o Rose
o 5 in 1
o 3 in 1
o Yantra

21. What do think about the fragrance of various brands?

68
 AGARBATHI LIGHT MILD STRONG VSTRONG

CYCLE 3 IN 1

MANGALDEEP
5 IN 1

NANDHI

PADMINI

PARIMAL

If you are an non user of mangaldeep then,

22. What stops you from trying out Mangaldeep 5 in 1?

o Satisfied with the current brand

o Not aware about the brand
o Non-availability of the brand

If other reasons please specify:

23. Are you aware about the mangaldeep 5 in 1 advertisement, if yes?

What do you feel about the add?

o Simple and meaningful

o Gives a strong impression about the brand
o Does not create any impact on the brand
o Does not convey any meaning

24. Rank the following brands from 1 to 5:

69
 Mangaldeep 5 in 1
Cycle 3 in 1
Nandi
Padmini
Parimal

9.2 References:

1. Brand Extension and Customer Loyalty. By: Weizhong Jiang; Dev, Chekitan S.;
Rao, Vithala R.. Cornell Hotel & Restaurant Administration Quarterly, Aug2002,
Vol. 43 Issue 4, p5, 12p, 3 charts, 2 graphs, 3bw; Abstract: Focuses on the brand
extensions embraced by lodging chains in the U.S. Emphasis on the customer loyalty
to inhibit the loss of customers to competitors; Analysis on the brand-switching
behavior of consumers; Aims to encourage consumer retention through brand
extension.

2. KNOW YOU COMPETITION. By: Berg, Joel. njbiz, 1/22/2007 Supplement, p24-
24, 1p; Abstract: The article profiles Jinsoo Kim, president and chief executive officer
of Image Solutions Inc. based in Whippany, New Jersey. In 1992, he started his own
business. Moreover, his educational background in the field of management is
discussed. The difficulties experienced by the company are cited. Moreover, the
company employs 200 people. For him, ignorance is not an obstacle in starting a
business.

3. Subject Terms: *COMPETITION

Title: COMPETITOR ANALYSIS AND DEFENSES IN THE MARKETPLACE.
Authors: Yihua Philip Sheng phsan@cs.siu.edu

70
 Mykytyn, Jr., Peter P.1 mykytyn@cba.siu.edu
Litecky, Charles R.1 clitecky@cba.siu.edu
Allen, Gove2 gallen@tulane.edu
Source: Communications of the ACM; Aug2005, Vol. 48 Issue 8, p107-112, 6p
Document Type: Article

4. Title: Invented competitors: a new competitor analysis methodology.

Authors: Fahey, Liam
Source: Strategy & Leadership; 2002, Vol. 30 Issue 6, p5, 8p
Document Type: Article
Subject Terms: *COMPETITION

5. Title: Competitor Identification and Competitor Analysis: A Broad-Based

Managerial Approach.
Authors: Bergen, Mark
Peteraf, Margaret A.
Source: Managerial & Decision Economics; Jun-Aug2002, Vol. 23 Issue 4/5, p157-
169,
13p, 1 chart, 1 diagram
Document Type: Article
Subject Terms: *COMPETITION

6. Title: Information Security as Response to Competitor ANALYSIS SYSTEMS.

Authors: Gordon, Lawrence A.1,2 lgordon@rshmith.umd.edu
Loeb, Martin P.3 mloeb@rhsmith.umd.edu
Source: Communications of the ACM; Sep2001, Vol. 44 Issue 9, p70-75, 6p
Document Type: Article

7. Title: How consistent are winning strategies? The role of competitor analysis
and budgets on performance in a simulation.

71
 Authors: Neal, Derrick J.
Source: Simulation & Gaming; Jun99, Vol. 30 Issue 2, p118, 14p, 5 charts
Document Type: Article
Subject Terms: *MANAGEMENT -- Simulation methods
*MARKETING

8. Title: Competitor Analysis Practices of US Companies: An Empirical Investigation.

Authors: Subramanian, Ram1
IsHak, Samir T.1
Source: Management International Review (MIR); 1998 1st Quarter, Vol. 38 Issue 1,
p7-23, 17p, 10 charts
Document Type: Article
Subject Terms: *BUSINESS

9. Title: COMPETITOR ANALYSIS AND INTERFIRM RIVALRY:

THEORETICAL INTEGRATION.
Authors: Ming-Jer Chen1
Source: Academy of Management Review; Jan1996, Vol. 21 Issue 1, p100-134,
Document Type: Article

10. Title: Know Your Enemy - Competitor Analysis for Success.

Source: Industrial & Commercial Training; 1995, Vol. 27 Issue 1, preceding pviii-
viii,
1/2p
Document Type: Entertainment Review
Subject Terms: *COMPETITION

72
11. Title: BLIND SPOTS IN INDUSTRY& COMPETITON
ANALYSIS:IMPLICATIONS INTERFIRM PERCEPTIONS FOR STRATEGIC
DECISIONS.
Authors: Zajac, Edward J.1
Bazerman, Max H.1
Source: Academy of Management Review; Jan1991, Vol. 16 Issue 1, p37, 20p, 1
diagram
Document Type: Article

12. Title: ORGANIZING COMPETITOR ANALYSIS SYSTEMS.

Authors: Ghoshal, Sumantra
Westney, D. Eleanor1
Source: Strategic Management Journal; Jan91, Vol. 12 Issue 1, p17-31, 15p
Document Type: Article
Subject Terms: *COMPETITION

13. Title: THINKING ONE STEP AHEAD: THE USE OF CONJECTURES IN

COMPETITOR ANALYSIS.
Authors: Amit, Raphael1
Domowitz, Ian2
Fershtman, Chaim3
Source: Strategic Management Journal; Sep-Oct88, Vol. 9 Issue 5, p431-442, 12p
Document Type: Article

14. Title: Competitor Analysis: Some Practical Approaches.

Authors: Brock, John J.1
Source: Industrial Marketing Management; Oct84, Vol. 13 Issue 4, p225-231, 7p

73
 Document Type: Article

15. Title: COMPETITOR ANALYSIS IN HEALTH CARE MARKETING.

Authors: Salvatore, Tony1
Source: Journal of Health Care Marketing; Fall84, Vol. 4 Issue 4, p11-16, 6p
Document Type: Article

16. Title: Competitor analysis--A prize-centered approach.

Authors: Oxenfeldt, Alfred R.
Moore, William L.
Source: Management Review; May81, Vol. 70 Issue 5, p23, 7p
Document Type: Article

17. Title: Competitor analysis: The missing link in the strategy.

Authors: Rothschild, William E.
Source: Management Review; Jul79, Vol. 68 Issue 7, p22, 10p
Document Type: Article

18. www.itc.in

74