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A

RESEARCH REPORT ON
COMPRATIVE ANALYSIS OF MARKETING STAREGY
OF HUL AND ITC

Report submitted in the partial fulfillment of the requirement
for
MASTER OF BS!NESS A"M!N!STRAT!ON "e#ree
Pro#rammed



1
UNDER GUIDENCE OF

MR. UTKARSH SHUKLA
Assistant. PROFESOR
GNIOT. GR. NOIDA

SUBMITTED BY
GAURAV KR CHATURVEDI
MBA Roll No.-!!"!"##!$


AC$NO%&E"'EMENT
As any one who has written a project work, or research work, it is quite impossible to As any one who has written a project work, or research work, it is quite impossible to
acknowledge by name every individual who has played some part in this work. I feel it acknowledge by name every individual who has played some part in this work. I feel it
difficult to express in words my profound sense of gratitude to most respected persons difficult to express in words my profound sense of gratitude to most respected persons
who helped me to make this work possible. who helped me to make this work possible.
I acknowledge my gratitude to respected faculty r I acknowledge my gratitude to respected faculty r. !"#A$%& %&!#'A who have !"#A$%& %&!#'A who have
been kind enough to suggest improvement of this work and make it broad, based. been kind enough to suggest improvement of this work and make it broad, based.
'auar( )umar *hatur(edi 'auar( )umar *hatur(edi
+
(
PREFACE
)ast oving *onsumer +oods popularly known )*+ is as the name suggests is the )ast oving *onsumer +oods popularly known )*+ is as the name suggests is the
most demanded products in the market. It includes every thing from food items like most demanded products in the market. It includes every thing from food items like
flour, biscuits, ice creams, etc to body products soaps, face creams to cigarettes to flour, biscuits, ice creams, etc to body products soaps, face creams to cigarettes to
beverages, etc. consumers need these things in their everyday life so they invests a good beverages, etc. consumers need these things in their everyday life so they invests a good
portion of there income in these things. "here are so many companies which are dealing portion of there income in these things. "here are so many companies which are dealing
in )*+ products like &!', ,abur, I"*, A!' dealing in dairy products, etc. -y the in )*+ products like &!', ,abur, I"*, A!' dealing in dairy products, etc. -y the
vary nature of the product the companies are seeing this as a great source of income. As vary nature of the product the companies are seeing this as a great source of income. As
large number of companies are looking this sector as a profitable venture, so for large number of companies are looking this sector as a profitable venture, so for
sustaining there position and gain new market they have to bring some thing unique in sustaining there position and gain new market they have to bring some thing unique in
there products or services to gain position in the market or to sustain there. there products or services to gain position in the market or to sustain there.
In this project my focus is on tracking down the changing requirements, preferences, In this project my focus is on tracking down the changing requirements, preferences,
needs of customers and their changing perspective on the different products offered . needs of customers and their changing perspective on the different products offered .
.
OB,ECT!-E OF THE RESEARCH
"his topic has been chosen to study the *omparative arketing / -usiness strategy of
I"* 'td. and &!'. "here are certain prospective on which a company sells their
products in to the market and diversifies their business. "his project has been a great
learning experience for me0 at the same time it gave me enough scope to implement my
analytical ability. )ull project gives an insight about the strategies and its various
aspects. It is purely based on whatever the researcher learned at 12I -usiness %chool.
All the topics have been covered in a very systematic way. "he language has been kept
simple so that even a layman could understand. "he whole theoretical part is covered
with relation to the product. It helped to understand the various concepts of marketing.
"he various theories like learning, perception, attitude, motivation, and personality are
fully studied in the project.
3hat are the steps &industan !nilever 'td. is adapting to be market leader and to
differentiate itself from its competitors. 3hat is the steps company is utili4ing to find
current trend in the market5
ost of the product of &!' comes in the category of convenience products. "hey are
frequently used and bought by the customers. "here is large no. of players in the market,
who are supplying similar product to the customers.
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7ow, customers have become smart, they have great knowledge of market, product and
suppliers. %o, they are looking for the product which is providing something extra. "he
primary objective of this study is to systematically explore the determinants responsible
for the competitive advantage of I"* 'imited and how I"* developed new product lines
in its foods business drawing on its competencies in brand8building, $/,, packaging,
and distribution. &owever, market analysts were not sure whether I"* would achieve
success in all the food categories that it had entered.
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COMPAN. PROF!&E
:


Compan/0s Ba*)#round
;
&industan !nilever 'imited <&!'= is India>s largest )ast oving *onsumer +oods
*ompany, touching the lives of two out of three Indians with over (? distinct categories
in &ome / 2ersonal *are 2roducts and )oods / -everages. "hey endow the company
ith a scale of combined volumes of about 6 million tonnes and sales of $s.1?,???crores.
&!' is also one of the country>s largest exporters0 it has been recogni4ed as a +olden
%uper %tar "rading &ouse by the +overnment of India.

"he mission that inspires &!'>s over 19,??? employees, including over 1,.?? managers,
is to @add vitality to life.@ &!' meets everyday needs for nutrition, hygiene, and
personal care with brands that help people feel good, look good and get more out of life.
It is a mission &!' shares with its parent company, !nilever, which holds 91.99A of
B
the equity. "he rest of the shareholding is distributed among .B?,??? individual
shareholders and &!'>s brands 8 like 'ifebuoy, 'ux, %urf 1xcel, $in, 3heel, )air /
'ovely, 2ond>s, %unsilk, *linic, 2epsodent, *lose8up, 'akme, -rooke -ond, #issan,
#norr8Annapurna, #wality 3all>s C are household names across the country and span
many categories 8 soaps, detergents, personal products, tea, coffee, branded staples, ice
cream and culinary products. "hey are manufactured over 6? factories across India. "he
operations involve over (,??? suppliers and associates. &!'>s distribution network
comprising about 6,??? redistribution stockists, covering :.. million retail outlets
reaching the entire urban population, and about (9? million rural consumers.

&!' has traditionally been a company, which incorporates latest technology in all its
operations. "he &industan !nilever $esearch *entre <&'$*= was set up in 1D9B, and
now has facilities in umbai and -angalore. &'$* and the +lobal "echnology *enters
in India have over (?? highly qualified scientists and technologists, many with post8
doctoral experience acquired in the !% and 1urope.

&!' believes that an organi4ationEs worth is also in the service it renders to the
community. &!' is focusing on health / hygiene education, women empowerment, and
water management. It is also involved in education and rehabilitation of special or
D
underprivileged children, care for the destitute and &IF8positive, and rural development.
&!' has also responded in case of national calamities G adversities and contributes
through various welfare measures, most recent being the village built by &!' in
earthquake affected +ujarat, and relief / rehabilitation after the "sunami caused
devastation in %outh India.
In (??1, the company embarked on an ambitious programme, %hakti. "hrough %hakti,
&!' is creating micro8enterprise opportunities for rural women, thereby improving their
livelihood and the standard of living in rural communities. %hakti also includes health
and hygiene education through the %hakti Fani 2rogramme, and creating access to
relevant information through the i%hakti community portal. "he program now covers 19
states in India and has over .1,??? women entrepreneurs in its fold, reaching out to
1??,??? villages and directly reaching to 19? million rural consumers. -y the end of
(?1?, %hakti aims to have 1??,??? %hakti entrepreneurs covering 9??,??? villages,
touching the lives of over :?? million people.

&!' is also running a rural health programme C 'ifebuoy %wasthya *hetana. "he
programme endeavors to induce adoption of hygienic practices among rural Indians and
aims to bring down the incidence of diarrhea. It has already touched ;? million people in
approximately 19??? villages of B states. "he vision is to make a billion Indians feel safe
and secure.

If &industan !nilever straddles the Indian corporate world, it is because of being single8
minded in identifying itself with Indian aspirations and needs in every walk of life.
1?
M!SS!ON
!nilever>s mission is to add Fitality to life. 3e meet everyday needs for nutrition,
hygiene and personal care with brands that help people feel good, look good and get
more out of life.
Hur deep roots in local cultures and markets around the world give us our strong
relationship with consumers and are the foundation for our future growth. 3e will bring
our wealth of knowledge and international expertise to the service of local consumers 8 a
truly multi8local multinational.
Hur long8term success requires a total commitment to exceptional standards of
performance and productivity, to working together effectively, and to a willingness to
embrace new ideas and learn continuously.
"o succeed also requires, we believe, the highest standards of corporate behavior
towards everyone we work with, the communities we touch, and the environment on
which we have an impact.
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"his is our road to sustainable, profitable growth, creating long8term value for our
shareholders, our people, and our business partners
"!STR!BT!ON STRATE'. OF H&
&industan !nilever is pruning its distribution network strategy. It is rationalising its own
sales force and adding more muscle to its distributors on the field. *7-*8"F1BEs
%riram Iyer explains.
&industan !nilever is facing pressure on volume growth. And, with its hands tied on the
pricing front, it is restructuring its distribution strategy to bring in cost efficiency with
I1nterJ the go8to8market programmeE. )irst tried out in umbai, this will now be
implemented across all towns and cities with a population above eight lakh, starting with
*hennai.
&ow does it work5 1arlier, &!' had different distributors for its home and personal care
division and food division in the same area. 7ow, all the products would be sold by the
same distributor in any one area.
1(
Also, earlier, products from different divisions used different distributors, even in the
same city. 7ow, products across divisions will be fed to retailers through unified
distributors.
"hough the programme may reduce &!'>s sales force in southern India by half, &!'
denies reduction in sales force.
&!' currently has eight distributors in *hennai. "his will fall to four as the company
will no longer use different distributors in the same area. 1xperts say once implemented
completely, the company>s sales force in southern India may fall by half, something
&!' denies.
K"he +o8to8arket model also helps to remove the enormous logistics hitherto faced by
the distributors in their back8end operations, thus removing significant costs from the
system. ore importantly, enabling them to focus on the front8end to deliver better
services to end8retail,L &!' said.
&!' has also tied up with anpower *onsultants to help distributors recruit better sales
staff.
%ources say that as part of the programme, &!' has withdrawn its channel financing
facility, which it had with I*I*I -ank and %tandard *hartered. It will use the electronic
real8time gross settlement mode of money transfer for future transactions, bringing down
working capital expenditure. &owever, &!' says it will use both channel financing and
$8"8+8% while dealing with its distributors.
1.
PRO"CTS OF H&J
&ipton
'ipton, the world>s largest selling tea brand, is an iconic brand for the youth through both
its hot and cold formats.
'ipton Mellow 'abel is !nilever>s global tea brand and sells in many countries across the
world, with tea bags, packet tea and 'ipton Ice "ea.
'ipton Ice "ea, the international ice tea drink, is available in India in 'emon and 2each
flavours. It is available in (9? ml glass bottles, (?? ml vending cups, (69 ml cans and
one litre tetra packs.
"he company has created an alliance with 2epsi to market, sell and distribute 'ipton Ice
"ea. "he company itself has over 19,??? vending machines. "he alliance will further
strengthen the out8of8home consumption of tea and coffee.
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Surf E1*el
A pioneer in the Indian detergent powder market, %urf 1xcel has constantly upgraded
itself over the years, to answer the constantly changing washing needs of the Indian
homemaker. "oday %urf 1xcel offers outstanding stain removal ability on a wide range
of stains. "his means that mothers now have the freedom to let their kids experience life
without worrying about stains.
%urf 1xcel quick wash is powered with a path8breaking technology8 it reduces water
consumption and time taken for rinsing by 9?A. It is a significant benefit, given the
acute water scarcity in most of India.
%urf 1xcel is available in . variantsJ %urf 1xcel -lue, %urf 1xcel Nuick 3ash and %urf
1xcel Automatic. %o whatever be the need, %urf 1xcel hai na.
Bree2e
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-ree4e %cent agic is the soap which fulfills the aspirations of women of rural India.
-ree4e has offered them >beauty at an affordable price>, making them look and feel
beautiful.
-ree4e comes in 6 exotic fragrances C $ose, %andal, 'ime and $ajnigandha. All this at a
very affordable price for the masses.
%heel
3heel is India>s number one detergent brand. 'aunched in 1DB;, it cleans effectively
with lesser effort, making a laborious chore like washing light and easy. oreover,
3heel does not burn hands or harm clothes like some other detergents, which contain a
high percentage of soda. 1ver since its relaunch in (??1, with the new
positioning of >best clean with less effort>, 3heel has been growing strongly. $esearch
showed that consumers seek a solution to heavy duty laundry, like bed sheets and
curtains. ,eveloping on this insight, wheel sought to eliminate the trouble of tough dirt
or heavy8duty laundry. ass market consumers have welcomed the solution, making it
the number one.
Pureit
1:
2ureit, a breakthrough offering of &industan !nilever <&!'=, comes with many unique
benefits C complete protection from all water8borne diseases, unmatched convenience
and affordability.
2ureitEs unique +ermkill -attery technology kills all harmful viruses and bacteria and
removes parasites and pesticide impurities, giving you water that is Ias safe as boiledE. It
assures your family 1??A protection from water8borne diseases like jaundice, diarrhea,
typhoid and cholera. 3hatEs more, it doesnEt need gas, electricity or continuous tap
water supply.
2ureit not only renders water micro8biologically safe, but also makes the water clear,
odourless and good8tasting.
Mou will be further reassured to know that 2ureit meets the stringent germ8kill criteria of
the 1nvironmental 2rotection Agency <12A=, the toughest regulatory agency in the
!%A. "he performance of 2ureit has also been tested by leading scientific and medical
institutions in India and abroad.
"his patented technological breakthrough has been developed by &!'. "his state8ofC
the8art engineering developed by a team of over 1?? Indian and international experts
from &!' and !nilever $esearch *entres has made 2ureit possible at the consumer
price of just $s. 1B??.
Pears
1;
Introduced in India in 1D?(, 2ears soap has no equal. It is gentle enough, even for baby>s
skin.
2ears is manufactured like any other soap, but unlike in conventional soaps, the
glycerine is retained within the soap. "hat is the cause if its unique transparency. After
manufacturing, the soap is mellowed under controlled conditions over weeks. At the end
of this maturing process, it is individually polished and packed in cartons.
"oday 2ears is available in three variants 8 the traditional amber variant, a green variant
for oil control and a blue variant for germ protection.



!TC
1B
!TC &imited which previously stood for Imperial Tobacco Company of India Limited,
is one of India>s foremost private sector companies with a market capitalisation of more
than !% O 1B billion and a turnover of !% O 6.;9 billion. I"* is rated among the 3orld>s
-est -ig *ompanies, Asia>s >)ab 9?> and the 3orld>s ost $eputable *ompanies by
)orbes maga4ine, among India>s ost $espected *ompanies by -usiness 3orld and
among India>s ost Faluable *ompanies by -usiness "oday.
I"* has a diversified presence in *igarettes, &otels, 2aperboards / %pecialty 2apers,
2ackaging, Agri8-usiness, 2ackaged )oods / *onfectionery, Information "echnology,
-randed Apparel, +reeting *ards, %afety atches and other )*+ products. 3hile
I"* is an outstanding market leader in its traditional businesses of *igarettes, &otels,
2aperboards, 2ackaging and Agri81xports, it is rapidly gaining market share even in its
nascent businesses of 2ackaged )oods / *onfectionery, -randed Apparel and +reeting
*ards.
As one of India>s most valuable and respected corporations, I"* is widely perceived to
be dedicatedly nation8oriented. *hairman M. *. ,eveshwar calls this source of
inspiration @a commitment beyond the market@. In his own wordsJ @I"* believes that its
aspiration to create enduring value for the nation provides the motive force to sustain
growing shareholder value. I"* practices this philosophy by not only driving each of its
1D
businesses towards international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part.@
I"*>s diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time8tested core competenciesJ unmatched distribution
reach, superior brand8building capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Hver time, the strategic forays into new
businesses are expected to garner a significant share of these emerging high8growth
markets in India.
!TC3s Agri8-usiness is one of India>s largest exporters of agricultural products. I"* is
one of the country>s biggest foreign exchange earners <!% O (.B billion in the last
decade=. "he *ompany>s >e8*houpal> initiative is enabling Indian agriculture significantly
enhance its competitiveness by empowering Indian farmers through the power of the
Internet. "his transformational strategy, which has already become the subject matter of
a case study at &arvard -usiness %chool, is expected to progressively create for I"* a
huge distribution infrastructure, significantly enhancing the *ompany>s marketing reach.
!TC3s wholly owned Information "echnology subsidiary, I"* Info"ech India 'imited,
is aggressively pursuing emerging opportunities in providing end8to8end I" solutions,
including e8enabled services and business process outsourcing. !TC3s production
facilities and hotels have won numerous national and international awards for quality,
(?
productivity, safety and environment management systems. I"* wasthe first company in
India to voluntarily seek a corporate overnance rating.
!TC !N FMC'
(1
Cigarettes
I"* is the market leader in cigarettes in India. 3ith 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.
((
Foods
I"* made its entry into the branded / packaged )oods business in August (??1 with the
launch of the #itchens of India brand. A more broad8based entry has been made since
Pune (??( with brand launches in the *onfectionery, %taples and %nack )oods segments.
"he )oods business is today represented in 6 categories in the market. "hese areJ
Q $eady "o 1at )oods
Q %taples
Q *onfectionery
(.
Q %nack )oods
In order to assure consumers of the highest standards of food safety and hygiene, I"* is
engaged in assisting outsourced manufacturers in implementing world8class hygiene
standards through &A**2 certification. "he unwavering commitment to internationally
benchmarked quality standards enabled I"* to rapidly gain market standing in all its :
brandsJ
Q #itchens of India
Q Aashirvaad
Q %unfeast
Q mint8o
Q *andyman
Q-ingoR
(6
Lifestyle Retailing
I"*Es 'ifestyle $etailing -usiness ,ivision has established a nationwide retailing
presence through its 3ills 'ifestyle chain of exclusive specialty stores. 3ills 'ifestyle,
the fashion destination, offers a tempting choice of 3ills *lassic work wear, 3ills %port
relaxed wear, 3ills *lublife evening wear, fashion accessories and 1ssen4a ,i 3ills C
an exclusive range of fine fragrances and bath / body care products and )iama ,i 3ills
C a range of premium shampoos and shower gels. 3ills 'ifestyle has also introduced
3ills %ignature designer wear, designed by the leading designers of the country.
%ills Classi* work wear was launched in 7ovember (??(, providing the premium
consumer a distinct product offering and a unique brand positioning. I"* forayed into
(9
the youth fashion segment with the launch of ,ohn Pla/ers in ,ecember (??( and Pohn
2layers is committed to be the 7o. 1 fashion brand for the youth.
ducation ! Stationary products
I"* made its entry into the stationery business in (??( with its premium range of
notebooks, followed in the year (??. with the more popular range to augment its
offering.
I"*>s stationery -rands are marketed as @*lassmate@ and @2aperkraft@, with *lassmate
addressing the needs of school goers and 2aperkraft targeted towards college students
and executives.
"gar#attis
As part of I"*>s business strategy of creating multiple drivers of growth in the )*+
sector, the *ompany commenced marketing Agarbattis <incense sticks= sourced from
small8scale and cottage units in (??..
(:
$otels
I"* entered the hotels business in 1D;9 with the acquisition of a hotel in *hennai, which
was then rechristened I"* *hola. %ince then the I"*83elcomgroup brand has become
synonymous with Indian hospitality. 3ith over D? hotels in ;; destinations.
%ackaging
I"*>s 2ackaging / 2rinting -usiness is the country>s largest convertor of paperboard
into packaging. It converts over 9?,??? tonnes of paper and paperboard per annum into a
variety of value8added packaging solutions for the food / beverage, personal products,
cigarette, liquor, cellular phone and I" packaging industries. It has also entered the
)lexibles and *orrugated *artons business.
e&C'oupal
"he unique e8*houpal model creates a significant two8way multi8dimensional channel
which can efficiently carry products and services into and out of rural India, while
recovering the associated costs through agri8sourcing led efficiencies. "his initiative now
(;
comprises about :9?? installations covering nearly 6?,??? villages and serving over 6
million farmers.
Leaf (o#acco
I"* is the largest buyer, processor and exporter of leaf tobaccos in India 8 creating a
global benchmark as the single largest integrated source of quality tobaccos. %erving
customers in 9? countries across more than ;? destinations, I"* co8creates and delivers
value at every stage of the leaf tobacco value chain.
Infor)ation (ec'nology
I"* Infotech offers I" services and solutions across five key industry verticalsJ -anking,
)inancial %ervices / Insurance <-)%I=, *onsumer 2ackaged +oods <*2+= / $etail,
anufacturing / 1ngineering %ervices, "ravel, &ospitality / "ransportation and edia
/ 1ntertainment. I"* Infotech, a global I" services company, is today one of IndiaEs
fastest growing I" services and solutions providers.
Initiatives taken & Let*s put India first
(B
I"* is committed to a national agenda of raising agricultural productivity and making
the rural economy more socially inclusive. I"* believes that the urgency and scale of
these tasks make market linked solutions and innovations more effective and sustainable
than capital intensive approaches.
Social ! far) Forestry
I"* has helped to bring nearly 1.,??? hectares of wasteland under social forestry
benefiting more than 1:,??? poor households in 6:: villages.
I"*Es social forestry programme simultaneously addresses the livelihood problems of
marginal farmers and the ecological imperative of regenerating biomass and nurturing
depleted soils.
(D
"!STR!BT!ON CHANNE&S
A distribution channel is asset of marketing intermediaries or channels members ,
which forms links between A* and customers . Intermediaries the need of customerEs
product from various A*. "he intermediaries indistribution channels carry out key
marketing activities8buying and selling , transporting, and financial products as they
.?
move from producer to customers . )or customers to find the right products in the right
products in the right place at the time distribution channels are a key factor.
"istribution *hannel perform follo4in# fun*tions 56
A**1%%I-I'I"M
*H!7I*A"IH7
)11,-A*#
1))I*I17*M
A%%H$"17"
MAR$ET!N' STRATE'.
arketers need to understand the psyche of the rural consumers and then act
accordingly. $ural.marketing involves more intensive personal selling efforts compared
to urban marketing. )irms should refrain from designing goods for the urban markets
and subsequently pushing them in the rural areas. "o effectively tap the rural market, a
.1
brand must associate it with the same things the rural folks do. "his can be done by
utili4ing the various rural folk media to reach them in their own language and in large
numbers so that the brand can be associated with the myriad rituals, celebrations,
festivals, @melas@, and other activities where they assemble.
,istribution G place %trategy Hne of the ways could be using company delivery van
which can serve two purposes it can take the products to the customers in every nook
and corner of the market, and it also enables the firm to establish direct contact with
them, and thereby facilitate sales promotion.&owever, only the bigwigs can adopt this
channel.
"he companies with relatively fewer resources can go in for syndicated distribution
where a tie8up between non8competitive marketers can be established to facilitate
distribution.
"!STR!BT!ON STRATE'.
Hne of the ways could be using company delivery van which can serve two purposes 8 it
can take "he products to the customers in every nook and corner of the market, and it
.(
also enables the firm to establish direct contact with them, and thereby facilitate sales
promotion.&owever, only the bigwigs can adopt this channel. "he companies with
relatively fewer resources can go in for syndicated distribution where a tie8up between
non8competitive marketers can be established to facilitate distribution. Annual @melas@
organi4ed are quite popular and provide a very good platform for distribution because
people visit them to make several purchases.According to the Indian arket $esearch
-ureau, around B??? such melas are held in rural India every year. $ural markets have
the practice of fixing specific days in a week as arket ,ays <often called @&aats>= when
exchange of goods and services are carried out. "his is another potential low cost
distribution channel available to the marketers. Also, every region consisting of several
villages is generally served by one satellite town <termed as @andis@ or Agri8markets=
where people prefer to go to buy their durable commodities. If marketing managers use
these feeder towns, they will easily be able to cover a large section of the rural
population.
RESEARCH METHO"O&'.
..
"he word research derives from the )rench resar*her, from resear*her, to search
closely where @chercher@ means @to search@0 its literal meaning is >to investigate
thoroughly>
All pro#ress is born of inquir/ doubt is often better than o(er *onfiden*e for it lead
to inquir/ and inquir/ leads to in(ention and thus a si#nifi*an*e of resear*h *an
4ell be understood7
$esearch is defined as human activity based on intellectual application in the
investigation of matter. "he primary aim for applied research is discovering,
interpreting, and the development of methods and systems for the advancement of
human knowledge on a wide variety of scientific matters of our world and the universe.
$esearch can use the scientific method.
According to Clifford 4ood/ research comprises K,efining / redefining problems,
formulating hypothesis or suggestion solution, collecting, organi4ing and analy4ing the
data, making deduction and reaching conclusion, / at last carefully testing the
conclusion to determine whether they fit the formulating the hypothesis.L
Samplin#
.6
%ample si4e has been taken by judgement sampling. Pudgement sampling is a process in
which the selection of a unit, from the population is based on the prejudgement. "his
research is requires the survey of different telecom industry in 'ucknow region.
$esearch concentrates on the mobile user of different telecom service providers. %o the
selection of units for this research has been judged by the researcher.
T.PES OF RESEARCH
.9
"he basic types of research are as follows J
87 "es*ripti(e resear*h5
"he major purpose of this research is description of the state of affairs as it exists at
present. ,escriptive $esearch <who, what, where, how=
,esigned to provide further insight into the research problem by describing the variables
of interest *an be used for profiling, defining, segmentation, estimating, predicting, and
examining associative relationships.
97 Anal/ti*al Resear*h5
In this research, the researcher has to use facts or information already available these to
make, and analy4e these to make a critical evaluation of the material.
:7 Applied resear*h J
It aims and finding a solution for an immediate problem facing a society or an
industryGbusiness organi4ation.
;7 Fundamental resear*h5
It mainly concerned with generali4ation / with the formulation of a theory
<7 =uantitati(e Resear*h5
It is based on the measurement of quantity or amount. It is applicable to phenomena that
can be expressed in terms of quantity.
.:
>7 =ualitati(e Resear*h5
It is concerned with the qualitative phenomenon, i.e., phenomena relating to or involving
or king.
?7 Con*eptual Resear*h5
It is related to some abstract ideas or theory.
@7 Empiri*al Resear*h5
It is data8 based research, coming with a conclusions which are *apable of being verified
by the observation and experiment.
A7 "ia#nosti* Resear*h5
%uch a research fallow case C study method or in depth approaches to reach the basic
casual relation.
8B7 E1plorator/ Resear*h5
"he objective of this research is the development of hypothesis rather than their testing.
1xploratory research.
RESEARCH PROCESS
)ormulating the $esearch problem
.;
1xtensive literature survey
2reparing the research design
,etermining the sample design
*ollection the data
Analysis of data
2reparation of report
RESEARCH "ES!'N
.B
A research design is the arrangement of conditioned for collection and analysis of data in
a manner that aims to combine relevance to the research purpose which economy in
procedure. ain characteristics of research design can be summari4ed in two words8
Anticipation
%pecification
y research design is CEDP&ORAT!-E RESEARCH "ES!'NE
In my research, I have conducted survey of different %hopkeepers G ,istributors and
customer in &u*)no4 Re#ion to check their behavior and customer orientation, and
availability of product of both companies.
"he research is based on the primary data. %econdary data can be used only for
reference. $esearch has been done by primary data collection and primary data has been
collected by meeting with the obile users. ,ata is collected through questionnaire.
"his study will be based on judgments sampling and this research is skewed to mobile
user level. "his is an explanatory type of research. "his research needs further study also
$esearch is a kind of pilot study.
RESEARCH TOO&
.D
)or the data collection I have used structured, and open ended questionnaire.
"he researcher must decide the way of selecting a sample or sample design.
SAMP&E "ES!'N
A sample design is a definite plan determined before any data are actually collected for
obtaining a sample from a given population .%amples can be either probability or non
probability samples.
Important sample designs are8
1. ,1'I-1$A"1 %A2'I7+
(. %I2'1 $A7,H %A2'I7+
.. "$A"I)I1, %A2'I7+
6. N!H"A %A2'I7+
9. *'!%"1$ %A2'I7+
:. $A7,H %A2'I7+
I used RAN"OM SAMP&!N' in my research, because deliberate sampling involves
purposive or deliberate selection of particular unit of the universe for constituting a
sample which represents the universe.
6?
SAMP&!N' N!T
A decision has to be taken concerning a sampling unit before selecting sample. %ampling
unit may be geographical one thatEs why in my research the sampling unit is &u*)no4 6
Re#ion7
SAMP&E S!FE
"he researcher while deciding the appropriate si4e of the sample compromises all the
factors affecting the sample si4e. "he decision to decide the sample si4e must be
scientifically made and should not be done arbitrarily because of the risk involved ."he
sample si4e should be neither too large nor too small.
"herefore in my research study sample si4e is 8BB.
RESEARCH !NSTRMENT
Nuestionnaire
CO&&ECT!ON OF PR!MAR. "ATA
61
3e collect primary data during the course of doing experiment in an experimental
research but in case we do research of the descriptive type and performs surveys,
whether sample surveys or census surveys, then we can obtain primary data either
through observation or through direct.
*ommunication with respondents in one form or another or through personal interviews
this means that there are several methods of collecting primary data, particularly in
surveys and descriptive researches. "he important ones are C
Hbservation ethod
Interview ethod
"hrough questionnaires
=uestionnaire method is being used in order to collect the primary data.
CO&&ECT!ON OF SECON"AR. "ATA
3hen the researcher utili4es the secondary data, then he has to look into various sources
from where he can obtain them. %econdary data may either be published data or
unpublished data.
"he secondary data was collected in order to get address of offices and contact no. of
agents of different insurance companies and their branches
6(
SAMP&!N' TECHN!=E
)or my survey I used Cluster Samplin# technique. I selected a sample of 1?? people
around the area and interviewed them according to the questionnaire.
In the survey I tried to find out their preferences / tastes, their purchasing habit, are they
brand loyal or they consider their friends advice or some reference group during
purchasing. I also tried to find out that are they satisfied with the quality or present
stature of product, did they want any change in the existing product.
I also interviewed some of the shop owner and distributors and try to find out what the
company is doing to sustain their customer and what new changes they are bringing in
their product to gain competitive advantage from other competitors.
RE&AT!-E ME"!A "!STR!BT!ON
In response to the question regarding the media of advertising the respondents were
asked about the media. In the electronic media there are "elevision, Internet, radio,
newspaper and cinema. "he question ask to respondent about availblity of product of
both brand.
6.
;DA respondents say that they come across the advertisement of the present ,etergent
2owder brand by the television, 1 9A respondents come across to $adio and followed
by cinema <:A=.
"his shows that the appearance of the advertisements on "elevision is very much
effective and that>s why it is important segment of electronic media.
In rural areas the 7ewspaper and $adio is important segment of electronic media.
Hindustan nile(er H& G !TC 6 Sto*) Comparison for safe in(estment5
H&
H!N"STAN nile(er <&!'= is the largest pure8play )*+ company in the country
and has one of the widest portfolio of products sold via a strong distribution channel. It
owns and markets some of the most popular brands in the country across various
categories, including soaps, detergents, shampoos, tea and facecreams.
PERFORMANCE5
After stagnating between 1DDD and E?6, the company is back on the growth track. In the
past three years, &!'Es net sales have witnessed a *A+$ of 11A, while net profit has
posted a *A+$ of 1;A. "he company is set to gain further momentum, given the
revival of consumer spending. &!' sells products at different price points straddled
between the entire value chain. In the past few years, it has diversified into processed
foods, ice8creams, water purifiers and specialised chemicals. -ut home and personal care
<&2*= continues to remain the bread / butter segment for the company. "his division
accounted for ;(A of &!'Es revenue and D1A of its profit <before interest and tax=
66
during the year ended ,ecember E?;. %o, it wonEt be wrong to call &!' a personal care
major.
'RO%TH "R!-ERS5
"he company has been launching new products and brand extensions, with investments
being made towards brand8building and increasing its market share. &!' is also
streamlining its various business operations, in line with the IHne !nileverE philosophy
adopted by the !nilever group worldwide. Introduction of premium products and
addition of new consumers via market expansion will be &!'Es growth drivers.
F!NANC!A&S5
&!'Es net sales have recorded a *A+$ of more than 11A over the past three years,
while its net profit has posted a *A+$ of 1;A during the same period. 3hile its sales
have maintained a secular growth trend, profit margins have shown an erratic trend
during the period. &igh dividend yield, steady growth and strong market standing in its
product categories have enabled &!' to command premium valuations, compared to
other )*+ companies.
R!S$S5
-eing an 7* operating in India, &!' is more conservative in its strategies than its
Indian counterparts. oreover, given increasing competition, it faces the risk of being
overtaken by domestic players in various categories. 2rolonged inflation may lead to
margin contraction, in case &!' is not able to pass on this burden to consumers. "he
companyEs large si4e also poses a problem, since it does not give &!' the agility to
address the competition it faces from national and regional players.
TO SM !T P5
69
&!'Es up8and8running business model is a treat for investors seeking exposure in the
)*+ segment. "he company has delivered in the past and has the potential to do better
in future. In the small and medium term, &!' is a better bet than I"*.
!TC
I"* is not a pure8play )*+ company, since cigarettes is its primary business. It is
diversifying into non8tobacco )*+ segments like foods, personal care, paper products,
hotels and agri8business to reduce its exposure to cigarettes.
PERFORMANCE5
,espite diversification, I"*Es reliance on cigarettes is still huge. "he tobacco business
contributes 6?A to its revenues, and accounts for over B?A of its profit. "his cash8
generating business has enabled it to
take ambitious, but expensive bets in new segments and deliver modest profit growth.
I"*Es non8cigarette )*+ business S which contributes 19A of its revenues S eroded
close to BA of I"*Es profit last year. Its other businesses like hotels and paper together
account for over (?A of I"*Es profit. Agri8business, which is its second8largest revenue
earner, contributes one fourth to its revenues, but only .86A to its 2-I".
'RO%TH "R!-ERS5
I"*Es backward integration to ensure that its products pass efficiently from the farms to
6:
consumers has helped it to cut down supply and procurement costs. I"*Es non8cigarette
)*+ business leverages the large distribution network the company has developed by
selling cigarettes over the years. A rich product mix, along with ramp8up of investments
in its new sectors, will be instrumental in charting I"*Es growth path.
F!NANC!A&S5
,uring the past three fiscals, I"*Es consolidated revenue has seen a *A+$ of ((A. Its
profit has grown at just 1(A during the same period. I"*Es sales and profits have
displayed a secular growth trend. -ut the pressure of sustaining its new businesses, as
well as higher tax burden on the cigarette business, is straining its profits. After
undeterred growth spanning eight quarters, I"* witnessed a marginal de8growth in net
profit for the trailing four quarters ended Pune E?B.
R!S$S5
Increased regulatory clamps on tobacco, along with rising tax burden, pose a business
risk for I"*. %o, it has started an ambitious diversification plan, which has its own set of
risks. 3ith its foray into the conventional )*+ space, I"* has entered the high8clutter
branded products market. "his will burden its resources in terms of ad spend and brand8
building. *reating brand recall and building market share in new products are I"*Es key
challenges. 1xport ban and rising crop prices pose a threat for its agri8business, taxing its
margins.
TO SM !T P5
I"*Es growth story is still evolving. I"* is eyeing the pie which &!' and other )*+
players currently enjoy. "hough risky, the companyEs business model will pay off in the
6;
long run. I"* has proved its expertise in the cigarettes, hotels, paper and agri8businesses.
Investors who want to bank on its execution ability in )*+ can consider the stock with
a long8term hori4on.
SPP&. CHA!N MANA'EMENT OF !TC
%R+BL,S F"C- #y I(C C$"IN
1. %hortages in supply system
(. &oarding due to anticipation of a rise in excise duties on cigarettes *reates artificial
shortage
6. *an be solved by stricter monitoring policy during the time close to the budget
9. 2ilferage of stock during transportation ,ue to improper action of 3,s *an be
solved by timely reporting
PH.S!CA& "!STR!BT!ON
,emand 1stimation C collaborative forecasting< %alesforce with dealers=
)orecast based on last month sales
6B
2roduction plan made according to forecast
,elivery to * / ) agents within ; days *)As deliver goods to dealers on the basis of the
branch office route plan
H& "!STR!BT!ON S.STEM
"etail O(er(ie4
"he distribution network of &!' is one of the key strengths that help it to supply most
products to almost any place in the country from %rinagar to #anya kumari. "his
includes, maintaining favorable trade relations, providing innovative incentives to
retailers and organi4ing demand generation activities among a host of other things. 1ach
business of &!' portfolio has customi4ed the network to meet its objectives. "he most
obvious function of providing the logistics support is to get the companyEs product to the
end customer.
"istribution S/stem of H&
&!'>s products, are distributed through a network of 6,??? redistribution stockists,
covering :.. million retail outlets reaching the entire urban population, and about (9?
million rural consumers. "here are .9 */)As in the country who feed these
redistribution stockists regularly. "he general trade comprises grocery stores, chemists,
6D
wholesale, kiosks and general stores. &industan !nilever provides tailor made services
to each of its channel partners. It has developed customer management and supply chain
capabilities for partnering emerging self s ervice stores and supermarkets. Around
(,??? suppliers and associates serve &!'Es 6? manufacturing plants which are
decentrali4ed across ( million square miles of territory.
S*hemati* of H&0s "istribution Net4or)
"istribution at the -illa#esJ
"he company has brought all markets with populations of below 9?,??? under one rural
sales organisation."he team comprises an exclusive sales force and exclusive
9?
redistribution stockists."he team focuses on building superior availability of products. In
rural India, the network directly covers about 9?,??? villages, reaching (9? million
consumers, through :??? sub stockists.
HRural "istribution Model of H&I
&!' approached the rural market with two criteria the accessibility and viability. "o
service this segment, &!' appointed a $edistribution stockist who was responsible for
all outlets and all business within his particular town. In the (9A of the accessible
markets with low business potential, &!' assigned a su# stockist who was responsible
to access all the villages at least once in a fortnight and send stocks to those markets.
91
"his sub stockist distributes the company>s products to outlets in adjacent smaller
villages using transportation suitable to interconnecting roads, like cycles, scooters or the
age old bullock cart. "hus, &industan !nilever is trying to circumvent the barrier of
motorable roads. "he company simultaneously uses the wholesale channel, suitably
incentivising them to distribute company products.
"istribution at the rban *entres5
,istribution of goods from the manufacturing site to * / ) agents take place through
either the trucks or rail roads depending on the time factor for delivery and cost of
transportation. +enerally the manufacturing site is located such that it covers a bigger
geographical segment of India. )rom the * / ) agents, the goods are transported to $%Es
by means of trucks and the products finally make the Ilast mileE based on the local
popular and cheap mode of transport.

9(
Channel "esi#n
&industan 'ever 'imited <&!'= has two types of channel selling
i. $egular <traditional= retail channel,
ii. ,irect %elling *hannel in the name of &industan 'ever 7etwork <&'7=.
&!' has a well entrenched high distribution model which comprises of */)As,
$edistribution %tockists, wholesalers and retailers <as shown earlier=. &industan
!nilever>s distribution network is recogni4ed as one of its key strengths. Its focuses on
2roduct availability, -rand communication, and higher levels of brand experience.
H&0s Sales Brea) up throu#h different *hannels5
%ales -reak8up "hrough ,ifferent *hannels;A:?A..Aodern $etail!rban +eneral
"rade$ural Areas
Channel Stru*ture
9.
"ypically, the goods produced in each of the &!'>s 6? factories are sent to a depot with
the help of a carrying and forwarding agent <*/)A=. "he company has its depot in
every state of the country. "he */)A is a third party and gets servicing fee for stock and
delivery of the products. In each town, there is at least a redistribution stockist <$%= who
takes the goods from the */)A and sells them to retail outlets. In Pharkhand the */)A
is in $anchi and Pamshedpur is serviced by . $edistribution %tockists at %akchi <Gs Hm
2rakash Agarwal=, -istupur and 2arsudih.
"he &!' management reali4ed certain problems with the existing sales model. )irst, the
model was not viable for small towns with small population and small business. &!'
found it expensive to appoint one stockist exclusively for each town. %econdly, the retail
revolution in the country has changed the pattern the customers shop. 'arge retail self
service shops are becoming commonplace.
In response of these problems, &!' redesigned its sales and distribution channel
and the new system is known as 3diamond model3 in the company. At the top end of the
diamond, there are the self service retail stores which constitute 1?A of the total )*+
market. "he middle, fatter part of the diamond represents the profit center based sales
team. In the bottom of the pyramid is the rural marketing and distribution which
accounts for (?A of the business. As a result of the new distribution plan the company
has planned to reduce the number of $% in small towns.
96
Mo%&'n R&tail
U'(an G&n&'al
T'a%&
R)'al A'&as
Redistri#ution Stockists.
"otal number of $% in '!*#7H3 T .?. "his is going to be reduced to only one with
effect from next month of this year.
USales Margin: ;7?>J which includes cash discount, unloading expenses from depot,
distribution expenses to retailers, incentive schemes / other incidental expenses.
UModes of transport used: $ickshaw, tempo.
U Incentive schemes: -efore (??? holiday packages and tours but after (??? no non
monetary incentive for $%.
99
USoftware systems and Information System: !7I)M B.. <,eveloped by I- / **=.
"his software needs to be synchroni4ed daily and the system updates any informationG
incentive schemes G sales figures etc to and from the common shared platform.
UAreas of Operations: arked for each of the $%.
USelling Operations: $%s sells the goods to
3holesaler <gets 1.9 A max. discount from $%=
$etailers <gets 1.?A max. discount from $%=
/'olesaler.
+ets cash discounts and other schemes promoted by &!' <gets points under Fijeta
%cheme=.
Retailers.
Total retailer base in amshedpur: Approximately 1?;?.
Sales MarginJ ,epends on the product
%oap, detergents BA on $2
*osmetics 1?A on $2
)ood items BA on $2
9:
"ATA ANA&.S!S
)or the analysis of data collected through survey work, a series of steps were followed
which are given in a chronological orderV 1ach question of the questionnaire was
assigned codes <coding=V )urther the data was analy4ed by using diagrams, graphs, charts
etc.V "he graphic rating scale and ranking method was used to measure the response and
attitude of the customer. )inally, an effort was made to extract meaningful information
from analy4ed data, which acted as a base for the recommendations.
9;
8. A4areness le(el *onsumer about H& and !TC7
HUL
*#+
ITC
,#+
!NTERPRETAT!ON
Among of 1?? people :? people are aware about hul and 6? people are about Itc .
9B
(. Ho4 mu*h J of urban and rural mar)et does both brand *o(ersK
-,
$,
!!
,!
$-
!$
#
#
!#
$#
,#
-#
*#
)'(an ')'al
.)l it/ ot.&'
!nterpretation5 In urban area hul covers 96A itc covers .6A and remain ((A of
market covers by other companies. In rural areas hul covers 6(A itc covers .9A and
(.A of market covers by other companies.
9D
:7 %hi*h mar)etin# tool does both brands usin# more effe*ti(el/K
#
#
!#
$#
,#
-#
*#
HUL ITC
& 0a'1&tin2
'&tail 0a'1&tin2
0&%ia 0a'1&tin2
!nterpretation5 &ul and Itc more using media marketing than any other
marketing
:?
;74hen it 4as as)ed the retailers that ho4 do /ou sell FMC' produ*ts7 The
response is under6
No. o3 '&s4on%&nt P&'/&nta2&
P&'sonal 4&'s)asion *# $#+
P'o%)/t a5aila(l& !# *#+
Ot.&' '&ason !# #+
0
20
40
60
80
100
120
140
Personal
persuation
product
avaliable
Other
reason
percentage
no. of
respondent
Int&'4'&tation6 ost of the retailers had said that there is no need to personal relation
or effort to sell a product.if the quality is better and price is less in comparison to another
product.
:1
;7%hen it 4as as)ed from the retailers re#ardin# the best option to sell a produ*t7
The response is follo4ed as under5
2ri4e offer .(A
2rice off ((A
Attractive packaging :A
ore advertising 6?A
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
1 2
Prize Offer
Price off
ttractive
pac!aging
"ore advertising
!terpretation5 According to retailers more advertising is the option to sell a product
and in advertising ".F. advertisement in the best option in 'ucknow city.
:(
>%hen it 4as as)ed from the retailers about the frequen*/ of pur*hasin# the
FMC' produ*t from the suppliers7the response had *ome out as belo45
"ail/ 99J
%ee)l/ ><J
Monthl/ 88J
An/ other 9J
0#
10#
20#
30#
40#
50#
60#
$0#
dail% &ee!l% 'onthl% an%
other
(eries1

!nterpretation56 According to the retailers they purchase the )*+ product weekly
mostly
:.
?7 %hen it 4as as)ed from retailers about the best alternati(es 4hi*h influen*e the
*ustomers FMC' bu/in# de*ision7
The response is tabulated as under5
Brand ?>J
T7-7 ad(ertisement <@J
Pa*)a#in# 8>J
Pri2e <BJ

0#
20#
40#
60#
80#
1
brand
).*.advertise'ent
pac!aging
prize
!nterpretation56 According to retailers mostly they take the buying decision by brand.
:6
@7 %hen it 4as as)ed from retailers about distribution *hannel adopted b/ FMC'
4hole seller5
Responses as follo4ed as under5
Shop to shop >BJ
"ire*t sellin# :BJ
Other reason 8BJ
!nterpretationJ8 According to retailers they adopted the shop to shop distribution
channel in )*+.
:9
0#
10#
20#
30#
40#
50#
60#
shop to
shop
direct
selling
other
reason
(eries1
S%OT ANA&S!S
S%OT ANA&.S!S OF H&
Stren#ths 5
%trong and well differentiated brands with leading share positions. -rand portfolio
includes both global !nilever brands and local brands of specific relevance to India.
*onsumer understanding and systems for building consumer insight. %trong $/,
capability, well linked with business. Integrated supply chain and well spread
manufacturing units. ,istribution structure with wide reach, high quality coverage and
ability to leverage scale. Access to !nilever global technology capability and sharing of
best practices from other !nilever companies. &igh quality manpower resources.
%ea)nesses J
Increased consumer spends on education, consumer durable, entertainment, travel etc.
resulting in lower share of wallet for )*+. 'imited success in changing eating habits
of people. *omplex supply chain configuration, unwieldy number of %#!>s with
dispersed manufacturinglocations. 2rice positioning in some categories allows for low
price competition. &igh %ocial costs <housing, foodgrains / firewood, health and other
welfare measures= in the plantation business.
::
Threats5
'ow priced competition now present in all categories. +rey imports.%puriousGcounterfeit
products in rural areas and small towns. *hanges in fiscal benefits. !nfavourable raw
material prices in oils, tea commodity etc.
Opportunities J
arket and brand growth through increased penetration especially in rural areas.
-rand growth through increased consumption depth and frequency of usage across all
categories. !pgrading consumers through innovation to new levels of quality and
performance. 1merging odern "rade can be effectively used for introduction of more
upscale 2ersonal *are products. +rowing consumption in Hut of &ome
categories.2osition &'' as a sourcing hub for !nilever companies in various countries.
'everaging the latest I" technology.
S%OT ANA&.S!S !TC
Stren#ths
!TC leveraged it traditional businesses to develop new brands for new segments. )or
example, ITC used its experience of transporting and distributing tobacco products to
remote and distant parts of India to the advantage of its )*+ products. I"* master
:;
chefs from its hotel chain are often asked to develop new food concepts for its )*+
business.
I"* is a diversified company trading in a number of business sectors including
cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel,
personal care, greetings cards, Information "echnology, safety matches, incense sticks
and stationery.
%ea)nesses
"he company>s original business was traded in tobacco. I"* stands for Imperial "obacco
*ompany of India 'imited. 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.
"o fund its cash gu44ling )*+ start8up, the company is still dependant upon its
tobacco revenues. *igarettes account for 6; per cent of the company>s turnover, and that
in itself is responsible for B?A of its profits. %o there is an argument that I"*>s move
into )*+ <)ast oving *onsumer +oods= is being subsidised by its tobacco
operations. Its +old )lake tobacco brand is the largest )*+ brand in India 8 and this
single brand alone hold ;?A of the tobacco market.
:B
Opportunities
*ore brands such as Aashirvaad, int8o, -ingoR And %un )east <and others= can be
developed using strategies of market development, product development and marketing
penetration.I"* is moving into new and emerging sectors including Information
"echnology, supporting business solutions.
e8*houpal is a community of practice that links rural Indian farmers using the Internet.
"his 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
1? million farmers in 1??,??? villages.
Threats
"he obvious threat is from competition, both domestic and international. "he 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. 3estern companies will see India as an exciting opportunity for themselves to
find new market segments for their own offerings.
I"*>s opportunities are likely to be opportunities for other companies as well. "herefore
the dynamic of competition will alter in the medium8term. "hen I"* will need to decide
whether being a diversified conglomerate is the most competitive strategic formation for
a secure future.
:D
F!N"!N'S AN" S''EST!ON
Anal/sis of mar)etin# a*ti(ities
('e %roduct ,i0 of I(C
I"* had launched nearly all the products range off 7on tobacco 2roducts0 they are very
aggressive in their distribution of such products. "he existing network of I"*Es
*igarettes distribution is being used extensively for the sales all products of I"* )ood
division. "hey are trying to capitali4ed the market by associating the products with the
I"* brand.
I(C %ricing strategy
"he pricing of the I"* food division depends upon the *ustomersE demand schedule, the
cost function and the competitorsE price. "he pricing of the company is such that it caters
to the need of all income groups of people but special provision has been kept for 'ow
and middle income group, and their pricing are competitive with respect to other players
like -ritannia, 2arle and -riskfarm.
;?
"he company follows the +oing rate pricing that is the price of the product depends
upon the competitors price. "he firm chooses pricing more or less the same as arket
leader.
I(C %ro)otional activities
A particular budget is allocated for the promotion of the products, the local promotion
scheme is decided by the Area %ales anages, it give its suggestion to the ,istrict office
and that is forwarded to the &ead Nuarter in #olkata.
In another promotional scheme for -iscuits a particular number of cases is given freely
to the distributors according to the amount of sale they make, this was a drop do4n
promotion i.e. of the number of free cases that a particular distributors gets, off them a
certain part is reserved for the retailers and customer if they buy a certain level of biscuit
quantity.
I(C -istri#ution
-uoyed by a strong distribution network I"* is likely to retain its market share in the
cigarettes business0 the ban on advertisements is likely to work in favour of I"* thanks
to the recall factor. "he company>s reliable distribution network also ensures superior
inventory turnover than its peers.
;1
According to the survey conducted and after analy4ing the 2rice, 2romotion, 2lace and
2roduct, arketing strategy of the I"* and &!' and the consumer behavior in the
market the company can implement the following measure for increasing the sales and
volume of their products.
&ul and Itc both companies cover most of the market share but &ul is the market
leader in the )mcg sector.
-oth companies are using latest marketing tool to aware the customer.
I"* mostly using retail marketing.
customers are aware but they are not informed about the latest product of the
companies.
arketing channels are not effectively implemented.
&ul using latest marketing technologies.
&ul and Itc more using media marketing than any other marketing

;(
CONC&S!ON
In recent years, the )*+ sector declined due to downtrading. Also because of presence
of large number of companies trying to sei4e this opportunity, this force the old &'' for
the change and thus, their transformation has resulted in a new &'', which has
successfully faced this challenge and reversed this trend. It has done so by substantially
strengthening their brands and building capabilities. "his has already begun to yield
benefits and they are returning to growth. Folume growth is being followed by value
growth, which in turn is bringing profit growth.
India is one of the most exciting markets offering great potential. Hver the next 1?
years, the per capita income in India is likely to double. In )*+, there is an
opportunity to cataly4e penetration, increase usage, and upgrade consumers. As a
result, the )*+ market is expected to grow to over $s.1??,??? crores from its
current base of $s.6?,??? crores.
;.
"he new &industan 'ever an exciting opportunity for growth. "hey have .9 powerful
brands covering all segments, with leading market positions in most. "oday, these are
stronger and more relevant to the consumer than ever. "he people are energi4ed by the
scale of the opportunity and determined to sei4e it. "he scale of the business and
operations gives them the resources needed.
=EST!ONNA!RE
From Customer0s
,ateJ
7ame of *ustomerJ
AgeJ
2hone noJ
Address
1. &ow much is your income5
a. W$s.1?,???
;6
b. $s.1?,???8$s.(9,???
c. $s.(9,???8$s.9?,???
d. X$s.9?,???
(. &ow much do you invest on consumption on )*+5
a. W.?A
b. .?8:?A
c. :?8B?A
d. XB?A
.. ,uring purchase what in influence your purchase5
a. 2rice
b. Nuality
c. 2ackaging
d. 1xperiment
e. Influence by others
6. Are you aware about &!' and I"* brands 5
a. yes
;9
b. 7o
9. 3hich brand is more often used by you5
a. &!'
b. I"*
c. Hther
:. ,o you prefer any other brand5 < If IyesE which brand =
a. &ul
b. Itc
c. *olgate 2almolive India 'td.
;. Are the products of these brand easily available to your nearest shop5
a. Mes
b. 7o
B. 3hich brand provides you more discount on every product5
a. &ul
b. Itc
c. Hthers
;:
D. 3hich brands provides more and more offers5
a. &ul
b. Itc
c. Hthers
1?. ,o you know about the presence of different products of different companies in the
same category5
a. Mes
b. 7o
11. &ave you ever tried them5
a. Mes
b. 7o
1(. Are you satified with the products you are using of these brands5
a. Mes
b. 7o
1.. ,o you want any changes in the product5
;;
a. Mes
b. 7o
.
From Shop6o4ners G distributors
,ateJ
7ame of retailerJ
AgeJ
2hone noJ
AddressJ
1. 3hat is the market share of &!'5
(. &ow much is the consumption of &!'Es product with respect to the
products of other companies5
;B
.. ,o you think customers are satisfied with the products and services you are
offering5
6. 3hat are the ways to get the feed back from customers5
9. Hn which part customers are really not satisfied5
:. &ow do you find the changing tastes and preferences in customers5
;. 3hat is &!' is doing to tackle this problem5
B!B&!O'RAPH.
Referen*es ta)en 5
httpJGGwww.itcportal.com
httpJGGwww.google.co.inG
httpJGGwww.blonnet.com
httpJGGwww.just8food.com
httpJGGwww.thehindubusinessline.com
httpJGGwww.imcri.org
;D
httpJGGwww.scribd.com
BOO$S
#othari, *.$., (??9 $esearch ethodology, 3ishwa 2rakashan, India.
#otler, 2hilip. (??9, arketing anagement, 2rentice hall India.
arketing anagement,
Ma#a2ines
-usiness "oday
Investors India
-usiness 3orld
1conomic "imes
-usiness %tandard
B?