Professional Documents
Culture Documents
This is the matter of great pleasure as well as great privilege and pride for me to
present this project report. This project became possible only due to full
cooperation and sincerity provided by the Company and institute as well. I am
indebted and thankful to the management of ITC Limited for providing me an
opportunity to work in this esteemed and flourishing organization.
I would like to take this opportunity to express my most sincere gratitude towards all
my faculty members Whose classroom teaching helped me to develop insights into the
marketing concepts in general.
I also thank the vendors and local retailers approached by me and the Respondents in
the process of collecting information.
My heartiest thanks also go to my family and friends who gave me cooperation
whenever needed.
NISHIKANT KUMAR
STUDENT DECLARATION
I,NISHIKANT KUMAR student of BBA OF JIET here by declare that the ‘Project
Report’ titled
is completed and submitted under the guidance of Mr. RAHUL (Area Executive) ITC
LTD., PATNA.
The imperial findings and conclusion in report are based on the data collected by me
and the entire project work is not a reproduction of any source.
DATE
NISHIKANT KUMAR
(SIGNATURE)
PREFACE
This project report is hereby submitted for the partial fulfillment for the
award of degree of master business administration, which will
presumably prove useful to the management of the ITC too.
Sr. No. Contents
1. EXECUTIVE SUMMARY
2. ABOUT PERSONAL CARE PRODUCTS
3. ITC HISTORY
4. ITC LEADERSHIP
5 ITC STRATEGY
6. ABOUT VIVEL SOAP
7. CIGAREETE DIVISION
8. STUDY OF SELECTED RESEARCH
PROBLEM
9. DATA ANALYSIS
14. FINDINGS
15. RECOMMENDATION
16. ANNEXURE
17. BIBLIOGRAPHY & QUESTIONNAIRE
INTRODUCTIO
EXECUTIVE SUMMARY
The study “A comparative study of ITC personal care product and its competitor
brands” is mainly concerned with the retail market in Patna. I had gone through
some number of retail outlets in every area comprising big or small and tried to
cover major area in Patna. One of the reason for this study had been to
understand and to find out the position of ITCs personal care product in the
market and to know what is the distribution channel through which the retailers
get the personal care products of ITC LTD.As retailers are the last intermediary
in distribution channel who delivers the products to the final consumer and they
very much depends upon the retail markerts to get the desired product.
In the Second part of my study, I had focused on retailers perception about ITCs
personal care products and other competing brands,theirs margin on ITC
products.
In the Third part of my study,I tried to get insight into the strategies of
leading players of personal care product………
It has been observed through the study that the retail market has great potential in
Patna.
OBJECTIVE OF STUDY
SCOPE:
The study tittled “A Comparative study of ITC’s personal care products
distribution with others organized players with special reference to
retailers” was in Patna areas.I survey 250 retailers.
The project is limited to Patna and surrounding areas in the duration
from 1 June 2010 to 31st July 2010.
The finding are based on the responses given by the retailers , the
finding should not be considered universally applicable.
LIMITATION OF STUDY :
Due to time constraints the survey study was limited to 250 retailers
only.
The survey was conducted in Patna only.
The Company 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.
Personal care products have been an important part of our life, since ages.The Soap
industry has been growing at around 10% for the last three years, while the branded
segment is growing at about 30% per annum.
While Indian consumers constantly looking for variety and getting quality-conscious
day by day, high quality soap with an Indian fragnent would surely be an absolute hit
in the market.The company manufactures a wide variety of soaps having unique
ranges as well as variants to provide nourishment, protection ,moister etc.
In 1957 the company launched its hotels business with the acquisition of a hotel in
Chennai, which was rechristened ITC-Welcome group Hotel Chola. The objective of
ITC’s entry into the hotels business was rooted in the concept of creating value for the
nation. ITC choose 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 65 owned and managed properties spread across
India.
Tobacco became a subsidiary of ITC Limited and its name was changed to Surya
Nepal Limited (Surya Nepal).
Also in 1990, leveraging its agro-sourcing competency, ITC set up the international
business division (IBD) for export of Agro- commodities. The division is today one of
the India’s largest exporters. ITC’s unique and now widely acknowledged e-Choupal
initiative began in 2000 with soya farmers in Madhya Pradesh. Now its extends to 7
states covering over 3.5 million farmers. ITC’s first rural mall, christened
“CHOUPAL SAGAR” was inaugurated in August 2004 at Sehor. The year 2006
witnessed the ramping up of the company’s rural retailing network with 10 “Choupal
Sagar” being operational in three states of Madhya Pradesh, Maharashtra & Uttar
Pradesh. Nine more “Choupal Sagar” are in an advanced stage of construction and will
be launched shortly.
In 2000, ITC’s packaging & printing business launched a line of high quality greeting
cards under the brands name “Expressions”. In 2002, the product range was enlarged
with the introduction of gift wrappers, autograph books and slam book. In the same
year, ITC also launched “Expression Matribhasha”, a vernacular range of greeting
cards in 8 languages and “Expression Paper Kraft”, 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 wears 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 Club life 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 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’ takes the event forward to consumers.
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.
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 the range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
ITC is one of the India’s foremost private sector companies with a market
capitalization of nearly US $ 19 billion* and a turnover of over US $ 5.1 Billion.
ITC is rated among the World’s best Big Companies, Asia’s ‘Feb. 50’ and the
World’s Most Reputable Companies by Forbes magazine, among India’s Most
Respected Companies by Business World and among India’s Most Valuable
Companies by Business Today. ITC ranks among India’s ’10 Most Valuable
(Company) Brands’, in a study conducted by Brand Finance and published by
the Economic Times. ITC also ranks among Asia’s 50 best performing
companies compiled by Business Week.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agro-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
Agro-Exports, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery.
ITC’s diversified status originates from its corporate strategy aimed at creating
multiple drivers of growth anchored on its time-tasted 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 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 25,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating capabilities in
a globalizing environment to consistently reward more than 3, 68,000
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
Stakeholder.”
ECONOMIC PERFORMANCE
• India’s largest FMCG Company.
• Now business alone support over 120 SME’s across the country.
SOCIAL PERFORMANCE
• Empowering over 3.5 million framers through nearly 6000 e-choupals
covering 3,6000 villages as at November 2006 : 6500 e-choupals covering
38000 villages)
ENVIRONMENTAL PERFORMANCE
• ITC turns carbon positive ( sequestering / strong more
CO2 than it emits.
• ITC is the first from India and among the first 10 companies in the world
to publish its Sustainability Report in compliance (at the highest A+
level) with the latest G3 guidelines of the Netherlands- based Global
Reporting Initiative (GRI), a UN- backed, multistakeholder international
initiative to develop and disseminate globally applicable Sustainability
Reporting Guidelines.
• ITC is the first Indian company and the second in the world to win the
prestigious Development Gateway Award. It won the $ 100,000 Award
for the year 2005 for its trailblazing ITC e-Choupal initiative which has
achieved the scale of a movement in rural India. The Development Gateway
Award recognizes ITC’s e-Choupal as the most exemplary contribution in the
field of Information and Communication Technologies
(ICT) for development during the last 10 years. ITC e-Choupal won the award
for the importance of its contribution
n to development priorities like poverty reduction, its scale and replicability,
sustainability and transparency.
• ITC has won the inaugural ‘World Business Award’ the
worldwide business award recognizing companies who have made significant
efforts to create sustainable livelihood opportunities and enduring wealth in
developing countries. The award has been instituted jointly by the United
Nations Development Programme (UNDP) and the HRH Prince of Wales
International Business Leaders Forum (IBLF).
• ITC is the first Corporate to receive the Annual FICCI Outstanding Vision
Corporate Triple Impact Award in 2007 for its invaluable contribution to the
triple bottom line benchmarks of building economic, social and natural capital
for the nation.
DNV. The R&D centre is also certified for the standard ISO/IEC
17025:2005, by National Accreditation Board for Testing and Calibration
Laboratories (NABL). This certification is awarded for “General requirement
for the competence of Testing & Calibration Laboratories.”
• ITC Chairman Y. C. Deveshwar has received several honors over the
years. Notable among them are:
YEAR AWARD
2006:- Business Person of the year from UK Trade & Investment, the UK
Government organization that supports overseas businesses in that country.
2006:- Inducted into the ‘Hall of Pride’ by the 93rd Indian Science Congress.
2001:- Manager Entrepreneur of the year from Ernst & Youth Retail
Visionary of the year from Images, India’s only fashion and retail trade
magazine.
1994:- Marketing Man of the Year from A&M, the leading marketing
magazine.
• The Stockholm Challenge 2006 for the e-Choupal initiative. This award is
for using Information Technology for the economic development of rural
communities.
Flowing from the concept and the principles of Corporate Governance adopted
by the Company, leadership within ITC is exercised at three levels. The Board
of Directors at the apex, as trustee of shareholders, carries the responsibility for
strategic supervision of the Company. The strategic management of the
Company rests with the Corporate Management Committee comprising the
whole time Directors and members drawn from senior management. The
executive management of each business division is vested with the Divisional
Management Committee (DMC), headed by the Chief Executive. Each DMC is
responsible for and totally focused on the management of its assigned business.
This three-tiered interlinked leadership process creates a wholesome balance
between the need for focus and executive freedom, and the need for supervision
and control.
• Cigarettes
• Foods
• Life Style Retailing
• Safety Matches
• Agarbatties
• HOTELS
• Packaging
• AGRI-BUSINESS
• Agri Exports
• E-Choupal
• Leaf Tobacco
• GROUP COMPANIES
• INFORMATION TECHNOLOGY
THE ITC VISION
CORE VALUES
• Trusteeship
• Customer Focus
• Respect for People
• Excellence
Innovation
FACTORY
DISTRIBUTION STRATEGY
The personnel care products of ITC are distributed to the consumers in the
following manner.
HUB
WSP
(Warehouse service provider)
RETAILER
CONSUMER
RETAILER
WD (Retailer dealer)
Branch manager
Assistant Branch Manager
Area manager
Area Executive
MAIN OFFICE:-
Patliputra trading corporation(PTC)
Opposite B.N. College,Patna
THREATS
• Competition both domestic and international.
• Increasing tax on cigarettes.
Weaknesses
• The company’s original business was traded in tobacco. ITC stands for
Imperial Tobacco Company of India Limited. It is interesting that a
business that is now so involved in branding continues to use its original
name, despite the negative connection of tobacco with poor health and
premature death.
• To fund its cash guzzling FMCG start-up, the company is still
dependant upon its tobacco revenues. Cigarettes account for 47 per cent
of the company’s turnover, and that in itself is responsible for 80% of its
profits. So there is an argument that ITC’s move into FMCG (Fast
Moving Consumer Goods) is being subsidized by its tobacco operations.
Its Gold Flake tobacco brand is the largest FMCG brand in India – and
this single brand alone holds 70% of the tobacco market.
Opportunities
• Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and
others) can be developed using strategies of market development,
product development and marketing penetration.
• ITC is moving into new and emerging sectors including Information
Technology, supporting business solutions.
• e-Choupal is a community of practice that links rural Indian farmers
using the Internet. This is an original and well thought of initiative that
could be used in other sectors in many other parts of the world. It is also
an ambitious project that has a goal of reaching 10 million farmers in
100,000 villages.
• ITC leverages e-Choupal in a novel way. The company researched the
tastes of consumers in the North, West and East of India of atta (a
popular type of wheat flour), then used the network to source and create
the raw materials from farmers and then blend them for consumers under
purposeful brand names such as Aashirvaad Select in the Northern
market, Aashirvaad MP Chakki in the Western market and Aashirvaad
in the Eastern market. This concept is tremendously difficult for
competitors to emulate.
• Chairman Yogi Deveshwar’s strategic vision is to turn his Indian
conglomerate into the country’s premier FMCG business.
• Per capita consumption of personal care products in India is the lowest
in the world offering an opportunity for ITC’s soaps, shampoos and
fragrances under their Wills brand.
Threats
• The obvious threat is from competition, both domestic and
international. The laws of economics dictate that if competitors see that
there is a solid profit to be made in an emerging consumer society that
ultimately new products and services will be made available. Western
companies will see India as an exciting opportunity for themselves to
find new market segments for their own offerings.
VIVEL PORTFOLIO
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 rangr of
soaps and shampoos ,cater to the specific needs of a wide
range of consumers.
Vivel Di Wills and Vivel are high quality ranges of soaps and
shampoos for the upper mid and mid market consumer
segments.All products offer a unique value proposition of
bringing together ingridients that provide the benefit of
Nourishment,Protection and Moisturisation through one
product,hence providing the ever discerning consumer
complete care,which makes her beautiful and confident.
Each channel addresses the needs of the customer. The mass retail and
key retail segments address the convenience aspect as they are located in
proximity to residential areas. The Modern Retail outlets might address
the same customer but provides a different value proposition. It
addresses a different need of providing a wide array of products under
one roof when the customer values a shopping experience, and would
like to have an experience of picking up his groceries and personal care
products.
For example in case of VIVEL soap, ITC towards making this product
reach the end user had to employ the right channel, and ensure proper
strategies are in place towards maximizing the off take of the product
through the channel by the target customers. Now the availability of the
same product at different channel members is different. The product may
be available in boxes and in large quantity at the retailers point targeting
the retailers whereas the same product is available in the base pack with
the retailers, here targeting the retailers. Even at this part of the channel,
there is a difference. The product at a localkiryana shop may be
available with no offer whereas the same product at a big departmental
store might be available withn an offer.this is how each channel member
act differntly with the same motive of increasing sales and profit.
Vivel has carved a strong position for itself in the Indian market, riding
high on its superior and differentiated product offerings and unique
brand experience to Indian consumers. In a span of just two years since
its launch alongwith a beautiful ambassador like Kareena Kapoor, Vivel
has received stupendous response . Vivel has successfully established its
superior value proposition to discerning consumers.
The brand attributes of beauty, warmth and quality were all brought to
life with the celebration of Vivel's success. The event provided the
guests with an opportunity to interact with the Bollywood superstar and
brand ambassador of Vivel soaps, Kareena Kapoor. With a chance to
interact with their favorite movie star, the event witnessed immense
enthusiasm and excitement amongst the partners present at the venue.
Expressing his views on the event, Mr. Atul Joshi, Head of Marketing,
Personal Care Products Business, ITC Limited said, "We take pride in
the role that our trade partners play in building consumer confidence. It
is their support and trust in us which has helped Vivel in achieving rapid
growth and consumer acceptance.We express our gratitude and
appreciation for their support.
The event ensured great fervor and entertainment and came to a bustling
end with Kareena Kapoor felicitating the guests
Commenting on the event, she added, "I am thankful to Vivel for having
given me an opportunity to interact and thank Vivel's trade partners for
their efforts and immense contribution in making Vivel a household
name.".
ITC is the market leader in cigarettes in India. With its wide range of invaluable
brands, it has a leadership position in every segment of the market. It’s highly
popular portfolio of brands includes Insignia, India kings, Classic, gold Flake,
Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
The company has been able to build on its leadership position because of its
single minded focus on value creation for the consumer through significant
investments in product design, innovation, manufacturing technology, quality,
marketing and distribution.
All initiatives are therefore worked upon with the intent to fortify market
standing in the long term. This in turns aids in designing products which are
contemporary and relevant to the changing attitudes and evolving socio
economic profile of the country. This strategic focus on the consumer has paid
ITC handsome dividends.
ITC’s pursuit of international competitiveness is reflected in its initiatives in the
overseas markets. In the extremely competitive US market, ITC offers high-
quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC
has become a key player in the GCC markets through growing volumes of its
brands.
• BENGALURU (BANGALORE)
• KOLKATA
• MUNGER
• SAHARANPUR (U.P.)
These four production units have got the ‘five star rating’ by the British Safety
Council.
• Leverages
• Unique Agric sourcing skills
• ITC Welcome group’s Experts & Dermitologists.
• FMCG distribution synergies
• ITC R&D Centre, Bangalore
• Staples;Vivel Di Wills,Vivel,Fiama,Superia.
• Soaps: Vivel,Fiama.
.It includes not only collection of data but analysis of the data so collected.
.The data so collected and analyzed is used to solve various marketing problems
relating to goods and services.
In the branded soap market, to get down to basics, Frito Vivel commands a share
of 45%, followed Vivel Di Wills at 27% and ITC at 16%. The rest is divided
between a handful of new entrants, wannabes and many regional players. Out
of these ITC’s vingo s a new entrant in the market, which has
launched in 2007. ITC has launched vivel in a wide variety of
formats, ranging from potato chips to triangular bridges.
Because of its different and catchy advertisements vivel has
created a buzz in the market.
Therefore our aim was to find the most popular Varient among all the offerings.
We began our analysis by dividing people into those who like to use soaps and
those who don’t. We based our study on survey of people who like to use soap.
This survey was conducted in Patna.
• Product wise
• Price wise
• Promotion wise
• Operation wise
The product wise analysis comprise of different variants present in VIVEL & in
VIVEL DI WILLS.
Price wise analysis includes the PTR Analysis, margin analysis, different SKU
wise analysis of price etc.
Operation wise analysis includes time motion study, liquidity ratio etc.
In order to extract the meaningful information from the data collected, an
analysis of data is done using various graphs and charts.
DATA SOURCE
Data, in fact are the raw material with which a market research
function. The accuracy of the collected data is of great significance for
drawing correct and valid conclusion from the investigation.
Depending upon the source, data can be classified into two categories.
• Primary data: Information , which has been gathered for the first
time, is called primary data. Here the sources, expected to have
the desired information are contacted by the various methods to
collect the data.
For the study , primary data was collected from the respondents in
Patna, and the secondary data was collected from the business
magazines, news paper and internet.
DATA COLLECTION METHOD
Necessary information have been collected for the purpose of study by
using the both, Primary as well as secondary sources.
Sampling Method:-
A probability sampling technique for the study or problem enabled to
get much accurate data’s with varying simple random tool.
Sampling Unit:-
The sampling unit is the basic unit containing the element of the
population to be sampled. Eg. retail outlets.
Patna area was taken as the population Patliputra colony, Boring Road,
Boring Canal Road, Patna city Danapur, KKankad Bag,Raja Bazar, Rajeev
Nagar were the areas taken as sample.
Sample Size:-
My sample is taken from the retailer market as well as from the retail
market.
Retailer- 250
Number of respondent-250
BRANDS NO OF PERCENTAGE
RESPONSES
LUX 245 98 %
DETOL 210 84 %
VIVEL 150 60 %
MARGO 200 80 %
INTERPRETATION:-
Regular visit of the salesman in the market shows their sincerity and effort
for the product. If we compare this table with the previous one, It shows
that in the outlet where LUX, DETOL & MARGO is available, the salesman
visit is regular. In terms of percentage LUX, DETOL & MARGO has 98 %,
84 %, and 80 % salesman visit respectively. The percentage of VIVEL
SOAP is 60 % salesman visit.
No of Retailer =250
Margin No of Reatiler
Rs 0.50 35
Rs 1.00 117
At m.r.p. 98
INTERPRETATION:-
Majority of the retailer work in Rs.1 margin. Only 98 out of 250 work in
same price and 35 retailers out of 250 retailer’s sale the product at
Rs.0.50 margin. 117 retailers out of 250 retailers are selling the product
at Rs.1.00 margin.
SUGGESTIONS
The findings clearly determines the various shortcomings of
the performance appraisal system so there are few suggestion
which will help the organization to improve the performance
appraisal system and thus, will result in improving or
motivating the employee in order to “Perform better"
and the suggestion are as follows:-
• The performance appraisal system should be made
transparent so, that the employee freely communicate
with the leader in order to improve his/her performance
this will help the employee to understands his/her
strength and weakness.
• Performance appraisal should be done without biasness.
It should be based on work of staff, its detain for work
and organization.
• Performance appraisal is a systematic technical tool to
improve the efficiency of the employee and thus, the
performance appraisal should be done on quarterly ands
half yearly basis instead of annual basis.
• Performance and rewards should be made directly
proportional, so the employee gets motivated and this
will help him/her to improve better.
• A proper feedback should be given to the employee
highlighting their shortcoming and could perform better
in future.
QUESTONNAIRE& BIBLIOGRAPHY
QUESTIONNAIRE
Dear Respondent,
Kindly fill up the questionnaire below for providing us your valuable
opinion, which will help us to serve you better. Your responses will be
kept strictly confidential.
• NAME:
• ADDRESS:
…………………………………………………………………………………
Q1)Do you sell personal care products?
Ans.
Q2) which company in its brand of soap is competing in the market in terms of
price to its competitor?
• Hindustan uniliver
If No, why
Ans.
Ans.
Q6)Do you think that the advertisement given in T.V for Vivel soap has increased
its sale in your outlet?
Ans. Yes No
Ans. If Yes,then
4. Did I.T.C Made its Name In personal care products In a short period
Of time?
Reffered Websites:-
• www.itcportal.com
• www.google .com
Reffered Books:-