Mega Final Vinay

CONSUMER BEHAVIOUR ON I.T.
C PRODUCTS
A STUDY
On
CONSUMER BEHAVIOUR TOWARDS I.T.C PRODUCTS
A Project Report submitted to
Dr. Jyothirmayi Degree College

In partial fulfillment of requirement for the award of
BACHELOR OF BUSINESS MANAGEMENT DEGREE COURSE
For the 2012-2013 Session.
Submitted by:
Mr. METHUKULA VINAY,
Regd No: 105027014.
Under the Guidance of
Mr. G.VISHWANATH SIR M.B.A.
Asst. Professor
Dr. JYOTHIRMAYI DEGREE COLLEGE

ADONI
Affiliated to Rayalaseema University

KURNOOL
2012- 2013
Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

MANAGEMENT
DEPT.OF
CONSUMER BEHAVIOUR ON I.T.C PRODUCTS
CONSUMER BEHAVIOUR TOWARDS I.T.C PRODUCTS
Project
Submitted By
Mr. METHUKULA VINAY,
(REGISTER NO: 105027014)
In partial fulfillment of the degree of
BACHELOR OF BUSINESS MANAGEMENT
Under the guidance of
Mr. G.VISHWANATH, M.B.A.
ASST.PROFESSOR
DEPARTMENT OF MANAGEMENT STUDIES
Dr. JYOTHIRMAYI DEGREE COLLEGE

RAMJALA ROAD, ADONI
RAYALASEEMA UNIVERSITY
KURNOOL
JANUARY - 2013

MANAGEMENT
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BONAFIDE CERTIFICATE
This is to certify that the project work entitled CONSUMER BEHAVIOUR TOWARDS I.T.C
PRODUCTS is a bonafide record work done by
Mr. METHUKULA VINAY
(Regd.
No.105027014) submitted in the partial fulfillment of the requirement for the award of the degree of
BACHELOR OF BUSINESS MANAGEMENT of the

RAYALASEEMA UNIVERSITY KURNOOL.
Head of Department
Principal of the College
Place:
Date:

MANAGEMENT
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GUIDE CERTIFICATION
This is to certify that the project work entitled CONSUMER BEHAVIOUR TOWARDS
I.T.C PRODUCTS Is a bonafide record work done by Mr.
METHUKULA VINAY (Regd.
No.105027014) Submitted in the partial fulfillment of the requirement for the award of the degree of
BACHELOR
OF BUSINESS MANAGEMENT of the
RAYALASEEMA
UNIVERSITY.KURNOOL.
Faculty Guide
Head of Department
Place:
Date:

MANAGEMENT
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DECLARATION
Mr. METHUKULA VINAY (Reg. No.105027014) a bonafide student of the Department

of Management studies, Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI would
like to declare that the project titled CONSUMER BEHAVIOUR TOWARDS I.T.C
PRODUCTS in the partial fulfillment of Bachelor of Business Management degree course of
the RAYALASEEMA UNIVERSITY, KURNOOL is my original work and will not be
submitted for the award of an other degree, diploma, fellowship or other title or prize.
Signature of the Declarant
Date:
Place:

MANAGEMENT
Name:
Reg. No:
DEPT.OF
ACKNOWLEDGEMENT
I would like to express my sincere thanks to our Correspondent

Mr. MURALI BABU for encouraging us to do the training well from the
college.
I would like to thank our Principal Mr. VIJAY KUMAR and for helping
me to undergo the training well.
Next I owe gratitude to my Head of the Department (HOD) Mr.

CHANDRA SEKHAR permitting me to undertake the project in my
interested specialization.
I wish to express my gratitude to III Year BBM Coordinator Mr. GANESH

RAO for helping me to undergo the project.
Last but not least I would thank my guide Mr.G.VISHWNATH and also
our staff members, Dr. JYOTHIRMAYI DEGREE COLLEGE for their
support during the course of my project which is worth praising.
I also express my gratitude to my parents for blessing me and encouraging

me to undergo the project effectively.

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TABLE OF CONTENTS

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CHAPTER
CONTENTS
PAGE NO
Introduction
1.1 Definitions of Consumer Behavior & Marketing
1-9
1.2 Factors of Consumer Behaviors
Study design
2.1. Importance of study
2.2. Objectives of study
2.3. Need of study
2.4. Scope of study
2.4. Methodology
2.5.Limitation
10 - 16
Industry & company Profile
17 - 31
Data Analysis and Interpretation
32 - 48
Findings ,Suggestions & Conclusion

6.1Findings
6.2 Suggestions
6.3 Conclusion
49 - 51
Bibliography
Questionnaires
Annexure
52 - 63
4&5
LIST OF TABLES
DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI
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CONTENTS
PA
N
O
1
2
3
4
5
6
7
8
9
1
0
1
1
1
2
1
3
1
Have you ever used I.T.C products

I.T.C products are available without any Interruption
I.T.C products are available to reasonable prices
Are you satisfied with the quality and the quantity of the
Products
Advertising of I.T.C is up to satisfactory level

Will you refer I.T.C products to your relatives and friends
The company perform any social welfare activities
Company is changing according to consumers wishes
That I.T.C has advantage over its competitors
What makes you to buy I.T.C products
Who influenced you to buy I.T.C products
How do you rate I.T.C products
Differentiate the ITC Product with other products
ITC products providing good advertisement with their brand
ambassadors
Suggestions
33
34
35
36
37
38
39
40
41
42
43
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LIST OF GRAPHS
CONTENTS
PA
H
N
O
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Responds ever used I.T.C products

Responds I.T.C products are available without any Interruption
Responds I.T.C products are available to reasonable prices
Responds Are you satisfied with the quality and the quantity of the
Products
Responds Advertising of I.T.C is up to satisfactory level

Responds Will you refer I.T.C products to your relatives and friends
Responds The company perform any social welfare activities
Responds Company is changing according to consumers wishes
Responds That I.T.C has advantage over its competitors
Responds What makes you to buy I.T.C products
Responds Who influenced you to buy I.T.C products
Responds How do you rate I.T.C products
Responds Differentiate the ITC Product with other products
Responds ITC products providing good advertisement with their
brand ambassadors
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34
35
36
37
38
39
40
41
42
43
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CHAPTER-I
INTRODUCTION
Management:
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The basic unit of society is the individual. But no individual can satisfy
his needs and desires himself. So he unites his fellow beings and works in organized
group to achieve his objectives.
An organization is a set of people working together to achieve
common goals. Wherever there is organized group of people working towards a

common goal, some type of management becomes essential. Management makes
people to realize the objectives of the group and direct their efforts towards the
achievement of the objectives.
Management is essential part of group activity. It is primary force
within a group/ organization which tends to lead it towards the group goal.
Management is a universal process in all organized, social and economic activities.
In our life, we see that every activity we undertake involves an element
that ensures consideration and cohesiveness to the activity, with our acts would be
unproductive and ineffective.
Management is a critical element in economic growth of a country. A
country enough factors of production and other natural resources can still be poor if it
does not have competent managers to combine and coordinate resources. Without
management, a countrys resources of production remain as resources and never
become production.
Management is central core of our national as well as personal
activities and the way we manage and our institutions reflects with alarming clarity
what we and our society becomes.
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Definitions of management:
The art of getting things done through others
Management also defined as planning, organizing, and controlling performed

to determine and accomplish the objectives by use of people and resources. This
definition indicates that managers use people and other resources such as finance,
equipment in attaining their goals.
The art of knowing exactly what you want men to do and seeing that they to
do it in the best and the cheapest way
1.
2.
3.
Market:
A market is a set of actual and potential (future) buyers of a product.
The concepts of exchange and relationships lead to the concept of a market.
Economists use the term market to refer a collection of buyers and sellers, who
transact in particular product class.
Marketing:
Marketing is perhaps most complex and challenging function performed by
every business firm. It is the main reason for the existence of business. In this age of
rapid change, marketing is the springboard of all business operations. It is guiding
element of every business. It is powerful mechanism which alone can satisfy the
needs and wants of the customer at the place and price they desire.
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Definition:
According to
American
Marketing Association
Marketing is the
performance of the business activities that directs flow of goods and services from
product to customers
According to Philip Kolter Marketing is a social and managerial process
by
which individuals and group obtain what they need and want through creating,
offering and exchanging products of value with others.
According to StantonMarketing is a total system of interacting business
activities designed to present and potential customers
In a broader sense, marketing may be viewed as a complex system of
organizations and process by which nations resources are distributed among the
people and satisfy their wants and needs.
Consumer Behavior:
We are all consumers, consumer behavior is a vital factor which most be
known to the marketing management, unless a marketing manager has the knowledge
of the factors that effects the consumer purchasing patterns, he con not do his best in
the formation of sates policies and advertising policies.
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Consumers have to play a major role in protecting themselves from clutches of

businessman. First of all they must know their rights as consumers secondly they
should not hesitate to exercise their rights, consumers must adopt this sprits of they
help and co-operation, consumers must be aware of all the laws which were executed
by the government in this regard unless are knows that there is an act like the
prevention of food adutiration act one cannot complaint against the guilt. Hence
consumer education is indispensable in the modern world.
The term consumer behaviour refer to the behavior of the consumers while
purchasing using and disposing the products which they will satisfy their needs, so
this consumer behavior is vital factor in manufacturing management. The study of
consumer behavior is the study of how the individuals spend their available resources
like time, money and efforts etc on consumption of the product.
Definition:
The decision process and physical activity of individuals engage in when
evaluating, acquiring, using or disposing of goods and services.
-Loudon andbitta
Factors influencing consumer behavior:
There are four major factors influencing consumer behavior. They are:
1.
2.
3.
4.
Cultural factors
Social factors
Personal factors
Psychological factors
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Cultural factors:
Cultural factors are broadest and deepest influence on consumer behavior. The
marketer needs to under stand the role played by buyers culture, sub-culture and
social classes.
Culture:
Culture is the most basic cause of a person wants and behavior. Culture is
acquired as part of social experience. In the context of consumer behavior, culture

means sum of learned beliefs, values and customs that serve to regulate the behavior
of customers of particular society.
Sub-culture:
Each culture contains smaller sub cultures based on common life experience
and situations. Sub-cultures include nationalities, religions, racial groups and
geographic regions. Many sub-cultures make up important market segments.
Social classes:
Social classes are relatively homogenous divisions in a society. Each social
class exhibits similar product and brand preferences. Social classes refer not only
income but other indicators such as education, occupation and residential area.
Social factors:
A consumers behavior also is influenced by social factors, such as the
consumers small groups, family and role and status.
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Groups:
A persons behavior is influenced by small groups. Groups that have a direct
influence and to person belong are called membership groups. Some are primary
groups with whom regular but informal interaction such as family, friends, neighbors
and co workers.
Family:
Family members can strongly influence buyers behavior. Family is a
fundamental reference group for many consumers. Infact, it is the target market for
many products. Marketers distinguish between two types of families in the consumer
life. The family of orientation consists of ones parents and siblings. On the other hand
family of procreation namely once spouse and children will have a more direct
influence on every day buying behavior. The concept of family life cycle gives
valuable insights in the buying behavior of a family.
Role and status:

A person belongs to many groups i.e., family, club, organizations. The person
position in each group can be defined in terms of both role and status. A role consists
of the activities peoples are expected to perform according to the person around them.
Each of individual roles will influence some of other buying behavior.
Personal factors:
A buyers decisions also are influenced by personal characteristics such as the
buyers age and life style or life cycle stage, occupation, economic situations etc.
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Age and lifecycle stage:

People change the goods and services they buy over their life times, taste in
food, clothes, furniture and recreation are often age related. Buying is also determined
by the stage of the family life cycle. Marketers often define their target markets in
terms of life cycle stage and develop appropriate products and marketing plans for
each stage.
Occupation:
A person occupation effects the goods and services bought blue collar workers
tend to buy more work clothes where as white collar workers buy more suits and ties.
Economic situations and conditions:

A person economic situation will affect product choice. An individual can
considered buying an expensive, says is he has enough spendable income, saving are
borrowing power, marketers income sensitive goods watch trends in personal income,
savings and interest rates. If economic indicators point to a recession, marketers can
take steps to redesign and reprice their products closely.
Psychological factors:
Persons buying choices are further influenced by four major
psychological factors motivation, perception, learning and beliefs and attitudes.
Motivation:
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A person has many needs at any given time. Some are biological, arising from
stages of tension such as hungry, thirst or discomfort. Most of those will not be strong
enough to motivate when it is aroused to sufficient level of interest. A motive is need
that is sufficiently
pressing to direct the persons to seek satisfaction. Consumer motives can be described
as a process through which wants are satisfied human behavior is goal oriented. Goals
are sought after the results of motivated behavior.
Perception:
Perception is the process by which an individual selects, organizes and
interprets information inputs to create managerial picture of world. Perception has
strange implications for marketers. Consumers make decisions based on what they
perceive. They generally equal at the quality of product on the basis of variety of
informational causes such as colour, size, price and strong image. Consumers often
ready on prices as on indicator of quality. How consumers perceive a price has a
strong influence and purchase decision.
Learning:
When people act, they learn. Learning describes changes in individuals
behavior arising from experience. Learning theories says most of the human behavior
is learned. Learning occurs through the interplay of drives, stimuli, cause, responses
and reinforcement. Learning involves changes in a persons behavior due to the fast
experience.
Beliefs and attitudes:
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Through doing and learning people accrued beliefs and attitudes. These interns
influence their buying behavior. A belief is descriptive thought of a person has about
something. Marketers are interested in beliefs that people formulate about specific
product and service.
As consumers we have many attitudes towards products and services. But they
are not necessarily permanent, they do change. Marketers are instructed how
consumers attitudes form and how they changed.
CHAPTER-II
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STUDY DESIGN
NEED FOR STUDTY
To understand the likes and dislikes of consumer extensive consumer research

study are being conducted these researches to find out
What the consumer things of the companies products and those of its competitors.
How can the product be improved in their opinion
How the consumers use the products
What is the consumer attitude towards the products and its advertising
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IMPORTANCE OF STUDY
1. Consumer behaviour consists of activities/process followed in making any buying

decision of goods as well as service.
2. Consumption behaviour is a study focus on consuming unit.
3. Consumer behaviour is importance of individuals, groups, or organizations and the
processes they use to select, secure, and dispose of products, services, experiences, or
ideas.
4. To know the importance of three factors are identified as determinants to consumer
behaviour.
EX : ECONOMIC DETERMINANTS etc.,
5. Consumer behaviour is important factor in determining marketing policies.

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Objectives of the study:
To know the behaviour of the consumers towards I.T.C products.

To study the factors which influence the consumers to prefer the I.T.C products.
To know the buyer responses, tastes and preferences towards the products.
To analyse the competitive advantage over others.
To know the satisfactory levels of consumers with the usage of I.T.C products.
To know consumer needs and change accordingly.
To know the social responsibility of the company towards society.
To study wide range of products of the company useful to all classes.
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Sources of data
The study is conducted through primary data and secondary data.
The information is obtained through questionnaire, interviews, with
Primary data:
respondents and dealers, discussions with consumers. The primary data is collected
and gathers for specific purpose.
Secondary data:
The secondary data is obtained from company records, circulars, and policy
documents, broachers of the company and from the company website.
Sample size:
Data were collected by the means of well structured closed ended and open
ended questions from 100 consumers. The consumers are from various classes and
various age groups.
Methodology
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The following methods are followed for this study

Questionnaire method:
In this method questions are designed in such a way to know the behaviour of
consumers towards I.T.C products. They are designed in an order with closed ended
and open ended questions.
Observation method:
In this method it is possible to get both past and current information, it enables
to observe the variables which influenced consumers behaviour as it occurs.
To get past information some records are observed.

Interview method:
It is most commonly used method in data collection it has wide flexibility. The
purpose of this method is to facilitate understanding behavioural aspects of consumers
being surveyed. There are three types of methods such as personal interview method,
mail interview method and telephonic interview method.
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Limitations of the study:
Although the attempt was made to gather relevant data. Yet there were few
short comings and difficulties.
The major limitations are:
Consumer behavior and their opinions are liable to change.

Study is confined to Kurnool and near by areas only.
Limited access to know companies important information like profits etc..
Time is another constraint.
Some of the consumers were busy in their jobs, so they couldnt spend sufficient time
to give information.
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CHAPTER-III
INDUSTRY
PROFILE
&
COMPANY
PROFILE
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INDUSTRY
PROFILE
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INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) goods are all consumable items
(other than groceries/pulses) that one needs to buy at regular intervals. These are
items which are used daily, and so have a quick rate of consumption, and a high
return. FMCG can broadly be categorized into three segments which are:
Household items as soaps, detergents, household accessories, etc,
Personal care items as shampoos, toothpaste, shaving products, etc and finally
Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft
drinks
etc.
Global leaders in the FMCG segment are Nestl, ITC, Hindustan Unilever
Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg,
Kleenex, General Mills, Pepsi, Gillette etc.
Overview
The burgeoning middle class Indian population, as well as the rural sector,
present a huge potential for this sector. The FMCG sector in India is at present, the
fourth largest sector with a total market size in excess of USD 13 billion as of 2012.
This sector is expected to grow to a USD 33 billion industry by 2015 and to a
whooping USD 100 billion by the year 2025.
This sector is characterized by strong MNC presence and a well established

distribution network. In India the easy availability of raw materials as well as cheap
labour makes it an ideal destination for this sector. There is also intense competition
between the organised and unorganised segments and the fight to keep operational
costs low.
A look at some factors that will drive growth in this sector:
Increasing rate of urbanization, expected to see major growth in coming years.
Rise in disposable incomes, resulting in premium brands having faster growth and
deeper penetration.
Innovative and stronger channels of distribution to the rural segment, leading to

deeper penetration into this segment.
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Increase in rural non-agricultural income and benefits from government welfare

programmes.
Investment in stock markets of FMCG companies, which are expected to grow

constantly
Some of the challenges this sector is likely to face are:
Increasing rate of inflation, which is likely to lead to higher cost of raw materials.
The standardization of packaging norms that is likely to be implemented by the

Government by Jan 2013 is expected to increase cost of beverages, cereals, edible oil,
detergent, flour, salt, aerated drinks and mineral water.
Steadily rising fuel costs, leading to increased distribution costs.
The present slow-down in the economy may lower demand of FMCG products,
particularly in the premium sector, leading to reduced volumes.
The declining value of rupee against other currencies may reduce margins of many
companies, as Marico, Godrej Consumer Products, Colgate, Dabur, etc who import
raw materials.
In conclusion:
This sector will continue to see growth as it depends on an ever-increasing internal

market for consumption, and demand for these goods remains more or less constant,
irrespective of recession or inflation. Hence this sector will grow, though it may not
be a smooth growth path, due to the present world-wide economic slowdown, rising
inflation and fall of the rupee. This sector will see good growth in the long run and
hiring will continue to remain robust.
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COMPANY
PROFILE
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COMPANY PROFILE
Evolution
ITC was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited. As the Company's ownership progressively

Indianised, the name of the Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in 1970 and then
to I.T.C. Limited in 1974. The Company now stands rechristened 'ITC Limited'.
The Companys 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 is currently headed by YogeshChanderDeveshwar. It
employs over 26,000 people at more than 60 locations across India and is listed on
Forbes 2000. ITC Limited completed 100 years on 24 August 2010.
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ITC has a diversified presence in Cigarettes, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,

Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches
and other FMCG products. While ITC is an outstanding market leader in its
traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share evenin its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal
Care and Stationery.
History
The company had founded-pioneered canteens for the workers, free
medical care, sports facilities and paid holidays. In 1830, the company was renamed
W.D. & H.O. Wills. Their first brand was Bristol, made at the London factory from
1871 to 1974. Three Castles and Gold Flake followed in 1878 and Woodbine ten years
later.
In 1901 Sir William Henry Wills formed the Imperial Tobacco
Company from a merger of W.D. & H.O. Wills with seven other British tobacco
companies. Imperial remains one of the world's largest tobacco companies. Embassy
was introduced in 1914 and relaunched in 1962 with coupons. The last member of the
Wills family to serve the company was Christopher, the great great grandson of H.O.
Wills I. He retired as sales 1969.
Rural initiatives
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ITC's Agri-Business is India's second largest exporter of agricultural
products. ITC is one of the India's biggest foreign exchange earners (US $ 2 billion in
the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers through the
power of the Internet. This transformational strategy, which has already become the
subject matter of a case study at HarvardBusinessSchool, is expected to progressively
create for ITC a huge rural distribution infrastructure, significantly enhancing the
Company's marketing reach.
Global and other Honours
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.
ITC Hotel Royal Gardenia, Bengaluru is the first Indian Hotel and world's largest, to
get the LEED Platinum rating - the highest green building certification globally.
The Stockholm Challenge 2006 for the e-Choupal initiative. This award is for using
Information Technology for the economic development of rural communities.
Vision
Sustain ITC's position as one of Indias most valuable corporations through
world class performance, creating growing value for the Indian economy and the
Companys stakeholders.
Mission
To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value.
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The following are the businesses and products of I.T.C
Cigarettes
ITC is the market leader in cigarettes in India. With its wide range of invaluable
brands, it has a leadership position in every segment of the market. It's highly popular
portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake,
Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol and Flake, Silk Cut and
Duke.
Sunfeast
ITC made its entry into the branded & packaged Foods business in August 2001 with
the launch of the Kitchens of India brand. A more broad-based entry has been made
since June 2002 with brand launches in the Confectionery, Staples and Snack Foods
segments.
ITC entered the into different segments like Atta market with the
launch of Aashirvaad Atta, biscuits with Sunfeastrange of Glucose,
Marie and Cream Biscuits, confectionery segment with 'mint-o' and
'Candyman', salted snacks with Bingo.
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Lifestyle Retailing
ITC's
Lifestyle
Retailing
Business
Division
has
established a nationwide retailing presence through its Wills

Lifestyle chain of exclusive specialty stores.Coming to wills it is very
nice brand over all the world and it produced exclusive spots wear,
it designed many international products for men and women
separately.
ITC forayed into the youth fashion segment with the
launch of John Players in December 2002.
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Personal Care
ITC forayed into the Personal Care business in July
2005.ITC's Personal Care portfolio under the 'Essenza Di Wills',

'Fiama Di Wills', 'VivelUltraPro', 'Vivel' and 'Superia' brands has
received encouraging consumer response and is being progressively
extended nationally.
Education and Stationery
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ITC made its entry to the education and stationery
business with its Paperkraft brand in the premium segment in 2002;

and later expanded into the popular segment with its Classmate
brand in 2003. By 2007, Classmate became the largest Notebook
brand in the country.
Safety Matches
The Matches business leverages the core strengths of ITC in marketing and
distribution, brand building, supply chain management and paperboard & packaging to
offer Indian consumers high quality safety matches. ITC's range of Safety matches
includes popular brands like iKno, Mangaldeep, Stylites, Aim and Aim Mega.
Paperboards and Specialty Papers
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ITC's Paperboards and Specialty Papers Division is India's largest,
technologically advanced and most eco-friendly, paper and paperboards business. The
business caters to a wide spectrum of packaging, graphic, communication, writing,
printing and specialty paper requirements through its four world-class manufacturing
units.
Packaging
ITC's Packaging & Printing Business is the largest value added converter of
paperboard packaging in South Asia. It converts over 70,000 tonnes of paper, paperboard
and laminates per annum into a variety of value-added packaging solutions for the food
& beverage, personal products, cigarette, liquor and consumer goods industries.
Its client list includes several well-known national and international
companies like Nokia, Colgate Palmolive, PernodRicard, Diageo, British American
Tobacco, Philip Morris International, Agio Cigars, UB Group, Tata Tetley, Tata Tea,
Reckitt Benckiser, RadicoKhaitan, Akbar Brothers, Surya Nepal, VST Industries, etc.
40
DEPT. OF MANAGEMENT
Agri Commodities & Rural Services
ITC's Agri Business Division is the country's second largest exporter of agriproducts. It currently focuses on exports and domestic trading of: Soyameal- Rice
(Basmati), Wheat Shrimps and Prawns ,Fruit Purees/Concentrates, IQF/Frozen Fruits,
Organic Fruit Products, Fresh Fruits Coffee, Black Pepper, Chilly, Turmeric, Ginger,
Celery and other Seed Spices
Leaf Tobacco
41
DEPT. OF MANAGEMENT
ITC pioneered the cultivation and development of Leaf Tobaccos in India.
Nearly a century of creating customer delight ensures that globally, ITC's Leaf
Tobacco business is synonymous with being "The One Stop Shop for Quality Indian
Tobaccos".
Hotels
India's premier chain of luxury hotels was launched on October 18,
1975, with the opening of its first hotel - Chola Sheraton in Chennai. Since then the
ITC Hotels brand has become synonymous with Indian hospitality. With over 100
42
DEPT. OF MANAGEMENT
hotels in more than 90 destinations, ITC Hotels has set new standards of excellence
in the hotel industry in Accommodation, Cuisine, Environment and Guest Safety.
43
DEPT. OF MANAGEMENT
CHAPTER-IV &
V
DATA ANALYSIS
&
INTERPRETATION
1. Have you ever used I.T.C products?
44
DEPT. OF MANAGEMENT
PARTICULARS
PERCENTA
GE(%)
84
16
YES
NO
Graph
90
80
70
60
50
Graph1
40
30
20
10
0
Yes
No
The above graph shows usage of I.T.C products in the market.
According to the graph 84% of people are using the I.T.C products and 16% of people
45
DEPT. OF MANAGEMENT
are not using them. By the help of this graph we came to know that most number of
people are using I.T.C products.
2. Do you think I.T.C products are available without any

Interruption?
PARTICULARS
PERCENTAGE (%)
YES
54
NO
46
Graph
46
DEPT. OF MANAGEMENT
100
90
80
70
60
50
Graph 2
40
30
20
10
0
Yes
No
The above graph shows the availability of I.T.C products. The graph shows
54% of respondents are satisfied with the availability of I.T.C products there is free
supply of products, so they are satisfied , 46% are not satisfied with the
availability of I.T.C products are not frequently available in villages, so they are not
satisfied.
3. Does I.T.C products are available to reasonable prices?
PARTICULARS
PERCENTAGE (%)
47
DEPT. OF MANAGEMENT
YES
40
NO
60
Graph
70
60
50
40
Graph 3
30
20
10
0
Yes
No
The above graph shows how many people are satisfied with price of
I.T.C products.40% are satisfied because they are from rich and above middle class
families.60% are not satisfied because they are from below middle class families so
they are not satisfied with price of I.T.C products.
4. Are you satisfied with the quality and the quantity of the
Products?
48
DEPT. OF MANAGEMENT
PARTICULARS
PERCENTAGE (%)
YES
78
NO
22
Graph
90
80
70
60
50
Graph 4
40
30
20
10
0
Yes
No
In the above graph shows the satisfactory level of consumers towards
quality and quantity of I.T.C products.78% of respondents are satisfied because they
are enjoying the quality and quantity of I.T.C products and 22% are not satisfied
because they want more from I.T.C products.
49
DEPT. OF MANAGEMENT
5. Is advertising of I.T.C is up to satisfactory level?
YES
NO
PARTICULARS
PERCENTAGE (%)
54
46
Graph
56
54
52
50
Graph 5
48
46
44
42
Yes
No
The
graph
shows
satisfactory
level
of
consumers
towards
advertisements of I.T.C products.54% of respondents are satisfied because the

advertisements of I.T.C arecolorful and attractive and 46% are not satisfied because
they not aware of advertisements of I.T.C products.
50
DEPT. OF MANAGEMENT
6. Will you refer I.T.C products to your relatives and friends?
PARTICULARS
PERCENTAGE (%)
YES
80
NO
20
Graph
90
80
70
60
50
Graph 6
40
30
20
10
0
Yes
No
51
DEPT. OF MANAGEMENT
The above graph shows the reference level of I.T.C products.80% of
respondents refer I.T.C products to their relatives and friends because they are
satisfied with I.T.C products in all aspects and 20% of respondents are not satisfied
with I.T.C products so they do not refer the I.T.C products to others.
7. Does the company perform any social welfare activities?
PARTICULARS
PERCENTAGE (%)
YES
82
NO
18
Graph
52
DEPT. OF MANAGEMENT
90
80
70
60
50
Graph 7
40
30
20
10
0
Yes
No
The above graph shows the performance activities of I.T.C products out of
100%, 82% of respondents know about the social welfare activities performed by
I.T.C and just 18% of respondents do not know about the social welfare activities
done by ITC.
8. Do you think company is changing according to consumers wishes?
PARTICULARS
YES
PERCENTAGE (%)
52
53
DEPT. OF MANAGEMENT
NO
48
Graph
53
52
51
50
Graph 8
49
48
47
46
Yes
No
The above graph shows weather I.T.C is changing according to
consumers wishes. Out of 100% of respondents 52% only satisfy because they are
satisfied with the newly launched I.T.C products and 48% are not satisfied because
they need something more from I.T.C.
54
DEPT. OF MANAGEMENT
9. Do you think that I.T.C has advantage over its competitors?
PARTICULARS
PERCENTAGE (%)
YES
64
NO
36
Graph
70
60
50
40
Graph 9
30
20
10
0
Yes
No
The above graph shows weather I.T.C has advantages over its competitors.
Out of 100% of respondents 64% agreed that I.T.C has advantages over its
competitors as no other company has wide range of products as I.T.C and 36% do not
accept above statement because they use other company products.
55
DEPT. OF MANAGEMENT
10. What makes you to buy I.T.C products?
TYPE
PRICE
14
BRAND
26
ADS
26
QUALITY
34
PERCENTAGE (%)
Graph
40
35
30
25
20
Graph 10
15
10
5
0
Price
Brand
Ads
Quality
The above graph shows that what makes the consumers to buy I.T.C products
out of 100% of respondents 14% of respondents buy I T C products because of price,

56
DEPT. OF MANAGEMENT
26% of respondents buy I.T.C products because of brand name another 26% of
respondents buy because of ads and 34% of respondents buy I.T.C products because of
quality.
11. Who influenced you to buy I.T.C products?
PERCENTAGE (%)
FAMILY
40
ADS
44
DEALERS
REFERENCE GROUPS
14
TYPE
Graph
50
45
40
35
30
25
Graph 11
20
15
10
5
0
Family
Ads
Dealers
Reference Groups
57
DEPT. OF MANAGEMENT
The above graph shows by whom consumers influenced to buy I.T.C products.
Out of 100% of respondents 40% are influenced by family, 44% of respondents are
influenced by ads, just 2% of respondents are influenced by dealers and 14% of
respondents are influenced by reference groups.
12. How do you rate I.T.C products?
TYPE
PERCENTAGE (%)
EXCELLENT
GOOD
64
AVERAGE
26
POOR
Graph

70
60
50
40
Graph 12
30
20
10
0
Excellent
Good
Average
Poor
58
DEPT. OF MANAGEMENT
The above graph shows the rating of I.T.C products out of 100% of
respondents 8% rate I.T.C products excellent, 64% of respondents rate I.T.C products
very good, 26% of respondents rate I.T.C products average and just 2% rate I.T.C
products poor.
13. When you differentiate the ITC Product with other products on which basis
you can do?
TYPE
Price
Quality & Quantity
PERCENTAGE (%)
10
35
Helping in Poor
30
Packaging
25
GRAPH
59
DEPT. OF MANAGEMENT
40
35
30
25
20
15
10
5
0
Graph 13
respondents 10% rate I.T.C products price, 35% of respondents rate I.T.C products
quality & quantity, 30% of respondents rate I.T.C products helping in poor and just
25% rate I.T.C products packaging.
14. ITC products providing good advertisement with their brand ambassadors
or not?
particulars
PERCENTAGE (%)
YES
60
NO
40
Graph
60
DEPT. OF MANAGEMENT
70
60
50
40
Graph 14
30
20
10
0
YES
NO
respondents 60% of respondents agreed that ITC providing good advertisement with
their brand ambassadors and 40% of respondents not agreed.
SWOT analysis
SWOT analysis gives information, under which a company operates. A SWOT

(strengths, weakness, opportunities, threats) analysis consists evaluating companys
internal strength and weakness and external opportunities and threats.
SWOT analysis of I.T.C:
61
DEPT. OF MANAGEMENT
Strength:
Wide product range and diversified businesses.

Well established brand image.
Strong market share.
Quality, quantity and price is satisfactory.
Corporate social responsibility.
Better manufacturing and innovation capabilities.
Dynamic according to customers preferences and tastes.
I.T.C products are useful to all kinds of people in their daily schedule.
Weakness:
Weak advertising and publicity.

Target market is mainly concentrated, only in northern part of India.
Falling behind research and development.
Opportunities:
Expanding products in international market, with help of the globalization.

Serving additional customer groups.
Faster market growth and increase in demand for consumer product in the country.
Increasing consumer loyalty.
Threats:
Stiff competition from competitors.
62
DEPT. OF MANAGEMENT
Entry of low cost competitors.

Change in buyer needs and tastes.
CHAPTER-VI
63
DEPT. OF MANAGEMENT
FINDINGS
&
SUGGESTIONS
CONCLUSION
Findings
1. Most of consumers are using I.T.C products because I.T.C has wide range of products
and services useful in all walks of life.
2. The products are available for reasonable prices, affordable by all classes and also
premium range available for high-end consumers.
64
DEPT. OF MANAGEMENT
3. The quality and quantity of products are quite satisfactory when compared to the
competitors.
4. Main asset of I.T.C is its goodwill. As it has history of 100 years and dedication to
serve consumers. They believe that consumer is the king
5. People are satisfied with the advertising, as the celebrities like Sharukh khan, Deepika
padukune, Ranbir kapoor are the brand ambassadors.
6. Many people refer I.T.C products to their friends and relatives as they are satisfied
with quality, quantity and price.
7. It is also changing dynamically.
8. As I.T.C has many businesses all over the India, it is providing employees to lakhs of
people.
9. It is also helping society in the form of childrens primary education, project by
contributing some amount from sale of classmate books. Its main objective is rural
development.
10. The I.T.C e-choupal was very effective, this creates awareness among farmers about
agriculture,
Suggestions & conclusions
After making a detailed study, the following suggestions are given:
The products must be available to rural customers also; it must not be limited to cities
and towns.
Advertising is not up to the mark when compared to competitors. It must be
improved.
65
DEPT. OF MANAGEMENT
Some products like John players are of high cost, I.T.C hotels charge very high rates,
these prices must be made reasonable, which can be affordable by middle class
people.
Programs must be conducted to create awareness about wide range of I.T.C products.
The e-choupal is prevalent in northern parts of India only. Measures must be taken to
launch in other parts of the country also.
CHAPTER VII
66
DEPT. OF MANAGEMENT
BIBLIOGRAPH
Y
QUESTIONNAI
ERS
ANNEXURE
67
DEPT. OF MANAGEMENT
Bibliography
Marketing management
Web
Site
Philip Kotler
Google Search
www.ITC.portal.com.
68
DEPT. OF MANAGEMENT
69
DEPT. OF MANAGEMENT
70
DEPT. OF MANAGEMENT
QUESTIONNAIRE
QUESTIONNAIRE
71
DEPT. OF MANAGEMENT
DEAR RESPONDENTS,
I am METHUKULA VINAY studying my final year
B.B.M at
DR.JYOTHIRMAYI DEGREE COLLEGE. As a partial fulfillment of my course ,

I am taking up a project on consumer behavior towards I.T.C products.
Please spend some of your valuable time to fill this questionnaire.
I assure that the information provided by you will be kept confidential and will be
used only for academic purpose.
YOURS
FAITHFULLY,
METHUKULA
VINAY.
NAME
AGE
OCCUPATION:
:
:
1. Have you ever used I.T.C products?
[ ] yes
[ ] no
72
DEPT. OF MANAGEMENT
2. Do you think I.T.C products are available with out any interruption?
[ ] yes
[ ] no
3. Does I.T.C products are available to the reasonable prices?
[ ] yes
[ ] no
4. Are you satisfied with the quality and the quantity of the products?
[ ] yes
[ ] no
5. Is advertising of I.T.C is up to satisfactory level?
[ ] yes
[ ] no
6. Will you refer I.T.C products to your relatives and friends?
[ ] yes
[ ] no
7. Does the company perform any social welfare activities?
[ ] yes
[ ] no
8. Do you think company is changing according to consumers wishes?
[ ] yes
[ ] no
9. Do you think that I.T.C has advantage over its competitors?
[ ] yes
[ ] no
10. What makes you to buy I.T.C products?
[ ] price
[ ] brand
[ ] ads
[ ] quality
73
DEPT. OF MANAGEMENT
11. Who influenced you to buy I.T.C products?

[ ] family & friends
[ ] ads
[ ] dealers
[ ] reference groups
12. How do you rate I.T.C products?

[ ] very good
[ ] good
[ ] average
[ ] poor
13. When you differentiate the ITC Product with other products on which
you can do?
basis
] Price
] Quality & Quantity
] Helping in Poor
] Packaging
14. ITC products providing good advertisement with their brand ambassadors
or not?
15. Your valuable suggestions for growth of the company:
] Yes 60%
] No 40%
74
DEPT. OF MANAGEMENT
ANNEXURE
75
DEPT. OF MANAGEMENT

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CONSUMER BEHAVIOUR ON I.T.

A Project Report submitted to

Dr. Jyothirmayi Degree College

Dr. JYOTHIRMAYI DEGREE COLLEGE

Affiliated to Rayalaseema University

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

CONSUMER BEHAVIOUR TOWARDS I.T.C PRODUCTS

DEPARTMENT OF MANAGEMENT STUDIES

Dr. JYOTHIRMAYI DEGREE COLLEGE

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

Mr. METHUKULA VINAY

BACHELOR OF BUSINESS MANAGEMENT of the

Principal of the College

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

DEPARTMENT OF MANAGEMENT STUDIES

METHUKULA VINAY (Regd.

OF BUSINESS MANAGEMENT of the

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

Mr. METHUKULA VINAY (Reg. No.105027014) a bonafide student of the Department

Signature of the Declarant

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

I would like to express my sincere thanks to our Correspondent

Next I owe gratitude to my Head of the Department (HOD) Mr.

I wish to express my gratitude to III Year BBM Coordinator Mr. GANESH

I also express my gratitude to my parents for blessing me and encouraging

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

Dr. JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

1.2 Factors of Consumer Behaviors

Industry & company Profile

Data Analysis and Interpretation

Findings ,Suggestions & Conclusion

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

Have you ever used I.T.C products

Advertising of I.T.C is up to satisfactory level

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

Responds ever used I.T.C products

Responds Advertising of I.T.C is up to satisfactory level

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

An organization is a set of people working together to achieve

common goals. Wherever there is organized group of people working towards a

Management is essential part of group activity. It is primary force

In our life, we see that every activity we undertake involves an element

Management is a critical element in economic growth of a country. A

Management is central core of our national as well as personal

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI

CONSUMER BEHAVIOUR ON I.T.C PRODUCTS

The art of getting things done through others

Management also defined as planning, organizing, and controlling performed

transact in particular product class.

DR.JYOTHIRMAYI DEGREE COLLEGE, ADONI