Professional Documents
Culture Documents
RESPECT TO ITC
A project report submitted to Andhra University, in partial fulfillment for the award of
the degree of
By
done by me and has not been submitted to any other university and
institution.
DATE:
The gap between the expected and actual is monitored to identify the
marketing needs. The study is divided into five chapters. Chapter 1 deals
with theoretical framework which includes the main subject, topic related
concepts, review of literature. Chapter 2 deals with the methodology adapted
for the study. Chapter 3 deals with the organization’s profile. Chapter 4
deals with data analysis. Chapter 5 deals with findings. Suggestions and
conclusions of the study done .
ACKNOWLEDGEMENT
1. INTRODUCTION
•Introduction to Marketing
•Competative technique
2. METHODOLOGY
3. ORGANISATION PROFILE
INTRODUCTION TO MARKETING:
A market-focused, or customer-focused, organization first determines
what its potential customer’s desire, and then builds the product or service.
Marketing theory and practice is justified in the belief that customers use a
product or service because they have a need, or because it provides a
perceived benefit.
Two major factors of marketing are the recruitment of new customers
(acquisition) and the retention and expansion of relationships with existing
customers (base management). Once a marketer has converted the
prospective buyer, base management marketing takes over. The process for
base management shifts the marketer to building a relationship, nurturing the
links, enhancing the benefits that sold the buyer in the first place, and
improving the product/service continuously to protect the business from
competitive encroachments.
For a marketing plan to be successful, the mix of the four "Ps" must
reflect the wants and desires of the consumers or Shoppers in the target
market. Trying to convince a market segment to buy something they don't
want is extremely expensive and seldom successful. Marketers depend on
insights from marketing research both formal and informal, to determine
what consumers want and what they are willing to pay for. Marketers hope
that this process will give them a sustainable competitive advantage.
Marketing management is the practical application of this process. The offer
is also an important addition to the 4P's theory.
The American Marketing Association (AMA) states, "Marketing is an
organizational function and a set of processes for creating, communicating
and delivering value to customers and for managing customer relationships
in ways that benefit the organization and its stakeholders.
Marketing methods are informed by many of the social sciences,
particularly psychology, sociology, and economics. Anthropology is also a
small, but growing influence. Market research underpins these activities.
Through advertising, it is also related to many of the creative arts. Marketing
is a wide and heavily interconnected subject with extensive publications. It
is also an area of activity infamous for re-inventing itself and its vocabulary
according to the times and the culture.
Concept of Marketing:
"Marketing" is an instructive business domain that serves to inform
and educate target markets about the value and competitive advantage of a
company and its products. “Value” is worth derived by the customer from
owning and using the product. “Competitive Advantage” is a depiction that
the company or its products are each doing something better than their
competition in a way that could benefit the customer.
Marketing is focused on the task of conveying pertinent company and
product related information to specific customers, and there are a multitude
of decisions (strategies) to be made within the marketing domain regarding
what information to deliver, how much information to deliver, to whom to
deliver, how to deliver, when to deliver, and where to deliver. Once the
decisions are made, there are numerous ways (tactics) and processes that
could be employed in support of the selected strategies.
As Marketing is often misinterpreted as just advertising or sales, Chris
Newton, in What is marketing? (Marketing Help Online, 2008), defined
marketing as every strategy and decision made in the following twelve areas:
• Identifying and quantifying the need in the marketplace
• Identifying and quantifying the target markets
• Identifying the optimum cost effective media – online and offline - to
reach the target markets
• Reviewing the priorities of the product offering in your overall
product mix ‘matrix’
• Identifying and developing the most effective distribution channels,
be they wholesaler networks, partnering alliances, franchising, or any
number of conduits to the market.
• Testing different ways of packaging the concepts or products to find
their most 'easy-to-sell' form
• Testing to find the optimum pricing strategies
• Developing effective promotional strategies and effective advertising
and supporting collateral, offers, and launch strategies
• Developing and documenting the sales process
• Finding the optimum execution of the sales process – through testing
of selling scripts, people selection, supporting collateral, skills and
attitudinal training, tracking, measuring and refining
• Ensuring that sales projections reflect realistic production capacities
• Developing nurture programs to optimize the lifetime value of the
customer
The goal of marketing is to build and maintain a preference for a
company and its products within the target markets. The goal of any
business is to build mutually profitable and sustainable relationships with its
customers. While all business domains are responsible for accomplishing
this goal, the marketing domain bears a significant share of the
responsibility.
Within the larger scope of its definition, marketing is performed
through the actions of three coordinated disciplines named: “Product
Marketing”, “Corporate Marketing”, and “Marketing Communications”.
Four Ps:
In the early 1960s, Professor Neil Borden at Harvard Business School
identified a number of company performance actions that can influence the
consumer decision to purchase goods or services. Borden suggested that all
those actions of the company represented a “Marketing Mix”. Professor E.
Jerome McCarthy, also at the Harvard Business School in the early 1960s,
suggested that the Marketing Mix contained 4 elements: product, price,
place and promotion.
In popular usage, "marketing" is the promotion of products, especially
advertising and branding. However, in professional usage the term has a
wider meaning which recognizes that marketing is customer-centered.
Products are often developed to meet the desires of groups of customers or
even, in some cases, for specific customers. E. Jerome McCarthy divided
marketing into four general sets of activities. His typology has become so
universally recognized that his four activity sets, the Four Ps, have passed
into the language.
These four elements are often referred to as the marketing mix, which
a marketer can use to craft a marketing plan. The four Ps model is most
useful when marketing low value consumer products. Industrial products,
services, high value consumer products require adjustments to this model.
Services marketing must account for the unique nature of services. Industrial
or B2B marketing must account for the long term contractual agreements
that are typical in supply chain transactions. Relationship marketing attempts
to do this by looking at marketing from a long term relationship perspective
rather than individual transactions.
Product:
Scope
* Breadth -- number of product lines in a range. * Depth -- number of
product items in a product line.
Steps in product design:
• Design and development of product ideas.
• Selection of and sifting through product ideas.
• Design and testing of product concept.
• Analysis of business instead of product concept.
• Design and testing of emotional product.
Packaging:
Requirements of good packaging:
• Functional - effectively contain and protect the contents
• Provide convenience during distribution, sale, opening, use, reuse, etc.
• Be environmentally responsible
• Be cost effective
• Appropriately designed for target market
• Eye-catching (particularly for retail/consumer sales)
• Communicate attributes and recommended use of the product and
package
• Compliant with retailers' requirements
• Promotes image of enterprise
• Distinguishable from competitors' products
• Meet legal requirements for product and packaging
• Point of difference in service and supply of product.
• For a perfect product, perfect color.
Forms of packaging:
• Specialty packaging — emphasizes the elegant character of the product
• Packaging for double-use
• Combination packaging two or more products packaged in the same
container
• Kaleidoscopic packaging — packaging changes continually to reflect a
series or particular theme
• Packaging for immediate consumption — to be thrown away after use
• Packaging for resale — packed, into appropriate quantities, for the
retailer or wholesaler
Trademarks:
Significance of a trademark:
• Distinguishes one company's goods from those of another
• Serves as advertisement for quality
• Protects both consumers and manufacturers
• Used in displays and advertising campaigns
• Used to market new products
Brands:
A brand is a name, term, design, symbol, or other feature that distinguishes
products and services from competitive offerings. A brand represents the
consumers' experience with an organization, product, or service.
A brand has also been defined as an identifiable entity that makes a specific
promise of value.
Co-branding involves marketing activity involving two or more products.
Pricing:
Pricing refers to the amount of money exchanged for a product. This value is
determined by utility to the consumer in terms of money and/or sacrifice that
the consumer is prepared to give for it.
Objectives:
• Increase sales volume
• Increase revenue
• Achieve or increase profits
• Increase or maintain market share
• Eliminate competition
• Achieve advantages of mass production
Distribution (Place):
Channels:
• Manufacturer to consumer (most direct)
• Manufacturer to wholesaler to retailer to consumer (traditional)
• Manufacturer to agent to retailer to consumer (current)
• Manufacturer to agent to wholesaler to retailer to consumer
• Manufacturer to agent to customer ( ex : DCL,AMWAY )
Manufacturers:
Reasons for direct selling methods:
• Manufacturer wants to demonstrate goods.
• Wholesalers, retailers and agents not actively selling.
• Manufacturer unable to convince wholesalers or retailers to stock
product.
• High profit margin added to goods by wholesalers and retailers.
• Middlemen unable to transport.
Reasons for indirect selling methods:
• Manufacturer does not have the financial resources to distribute
goods.
• Distribution channels already established.
• Manufacturer has no knowledge of efficient distribution.
• Manufacturer wishes to use capital for further production.
• Too many consumers in a large area; difficult to reach.
• Manufacturer does not have a wide assortment of goods to enable
efficient marketing.
• Direct on-selling advantages.
Wholesalers:
Reasons for using wholesalers:
• Bear risk of selling goods to retailer or consumer
• Storage space
• Decrease transport costs
• Grant credit to retailers
• Able to sell for the manufacturers
• Give advice to manufacturers
• Break down products into smaller quantities
Agents:
• Commission agents work for anyone who needs their services. They do
not acquire ownership of goods but receive del credere commission.
• Selling agents act on an extended contractual basis, selling all of the
products of the manufacturer. They have full authority regarding price
and terms of sale.
• Buying agents buy goods on behalf of producers and retailers. They have
an expert knowledge of the purchasing function.
• Brokers specialize in the sale of one specific product. They receive a
brokerage.
• Factory representatives represent more than one manufacturer. They
operate within a specific area and sell related lines of goods but have
limited authority regarding price and sales terms.
OTHER COMPETETIVE TECHNIQUES:
Sales agents:
Agents in the sales process can be defined as representing either side
of the sales process for example:
Sales broker or Seller agency or seller agent
This is a traditional role where the salesperson represents a person or
company on the selling end of the deal.
Transaction broker
This is where the salesperson doesn't represent either party, but handles the
transaction only. This is where the seller owes no responsibility to either
party getting a fair or honest deal, just that all of the papers are handled
properly.
Sales Outsourcing
This is direct branded representation where the sales reps are recruited,
hired, and managed by an external entity but hold quotas, represent
themselves as the brand of the client, and report all activities (through their
own sales management channels) back to the client. It is akin to a virtual
extension of a sales force. (see Sales Outsourcing entry)
Sales Managers
It is the goal of a qualified and talented sales manager to implement various
sales strategies and management techniques in order to facilitate improved
profits and increased sales volume. They are also responsible for
coordinating the sales and marketing department as well as oversight
concerning the fair and honest execution of the sales process by his agents.
Salespersons
What is Selling?
Academically, selling is thought of as a part of marketing, however,
the two disciplines are completely different. Sales often forms a separate
grouping in a corporate structure, employing separate specialist operatives
known as salespeople (singular: salesperson). Selling is considered by many
to be a sort of persuading "art". Contrary to popular belief, the
methodological approach of selling refers to a systematic process of
repetitive and measurable milestones, by which a salesperson relates his or
her offering of a product or service in return enabling the buyer to achieve
their goal in an economic way.
While the sales process refers to a systematic process of repetitive and
measurable milestones, the definition of the selling is somewhat ambiguous
due to the close nature of advertising, promotion, public relations, and direct
marketing
Sales departments often form a separate grouping in a corporate
structure, employing individuals who specialize in sale specific roles.
Selling involves sales which are the pinnacle act of completed of a
purchasing activity.
Selling also involves salespeople who are the primary agents of
facilitating sales.
Selling is the profession-wide term, much like marketing defines a
profession. Recently, attempts have been made to clearly understand who is
in the sales profession, and who is not. There are many articles looking at
marketing, advertising, promotions, and even public relations as ways to
create a unique transaction.
Many believe that the focus of selling is on the human agents involved
in the exchange between buyer and seller. Effective selling also requires a
systems approach , at minimum involving roles that sell, enable selling, and
develop sales capabilities. Selling also involves salespeople who possess
specific set of sales skills and knowledge are required to facilitate the
exchange of value between buyers and sellers that is unique from marketing,
advertising, etc.
Supply Chain:
A supply chain or logistics network is the system of organizations,
people, technology, activities, information and resources involved in moving
a product or service from supplier to customer. Supply chain activities
transform natural resources, raw materials and components into a finished
product that is delivered to the end customer. In sophisticated supply chain
systems, used products may re-enter the supply chain at any point where
residual value is recyclable. Supply chains link value chains.
A typical supply chain begins with ecological and biological
regulation of natural resources, followed by the human extraction of raw
material and includes several production links, for instance; component
construction, assembly and merging before moving onto several layers of
storage facilities of ever decreasing size and ever more remote geographical
locations, and finally reaching the consumer.
Many of the exchanges encountered in the supply chain will therefore
be between different companies who will seek to maximize their revenue
within their sphere of interest, but may have little or no knowledge or
interest in the remaining players in the supply chain. More recently, the
loosely coupled, self-organizing network of businesses that cooperates to
provide product and service offerings has been called the Extended
Enterprise.
There is often confusion over the terms Supply Chain and Logistics. It
is now generally accepted that the term Logistics applies to activities within
one company/organization involving distribution of product whereas the
term Supply Chain also encompasses manufacturing and procurement and
therefore has a much broader focus as it involves multiple enterprises,
including suppliers, manufacturers and retailers, working together to meet a
customer need for a product or service.
There are actually four common Supply Chain Models. Besides the
two mentioned above, there are the American Productivity & Quality
Center's (APQC) Process Classification Framework and the Supply Chain
Best Practices Framework. Critics has questioned the validity of all these
models.
Advertising:
Advertising is a form of communication that typically attempts to
persuade potential customers to purchase or to consume more of a particular
brand of product or service. Many advertisements are designed to generate
increased consumption of those products and services through the creation
and reinforcement of "brand image" and "brand loyalty". For these purposes,
advertisements sometimes embed their persuasive message with factual
information. Every major medium is used to deliver these messages,
including television, radio, cinema, magazines, newspapers, video games,
the Internet and billboards. Advertising is often placed by an advertising
agency on behalf of a company or other organization.
Advertisements are seen on the seats of shopping carts, on the walls of
an airport walkway, on the sides of buses, and are heard in telephone hold
messages and in-store public address systems. Advertisements are often
placed anywhere an audience can easily or frequently access visual, audio
and printed information.
Types of advertising:
Media
A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station
Commercial advertising media can include wall paintings, billboards,
street furniture components, printed flyers and rack cards, radio, cinema and
television ads, web banners, mobile telephone screens, shopping carts, web
popup’s, skywriting, bus stop benches, human directional, magazines,
newspapers, town criers, sides of buses or airplanes ("logojets"), in-flight
advertisements on seatback tray tables or overhead storage bins, taxicab
doors, roof mounts and passenger screens, musical stage shows, subway
platforms and trains, elastic bands on disposable diapers, stickers on apples
in supermarkets, shopping cart handles, the opening section of streaming
audio and video, posters, and the backs of event tickets and supermarket
receipts. Any place an "identified" sponsor pays to deliver their message
through a medium is advertising.
Another way to measure advertising effectiveness is known as ad
tracking. This advertising research methodology measures shifts in target
market perceptions about the brand and product or service. These shifts in
perception are plotted against the consumers’ levels of exposure to the
company’s advertisements and promotions.The purpose of Ad Tracking is
generally to provide a measure of the combined effect of the media weight
or spending level, the effectiveness of the media buy or targeting, and the
quality of the advertising executions or creative. Ad Tracking Article
Television commercials:
The TV commercial is generally considered the most effective mass-
market advertising format, as is reflected by the high prices TV networks
charge for commercial airtime during popular TV events. The annual Super
Bowl football game in the United States is known as the most prominent
advertising event on television. The average cost of a single thirty-second
TV spot during this game has reached $2.7 million (as of 2007).
Exhibit I
THE TOP 10 COMPANIES IN FMCG SECTOR
S.No. Companies
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
The companies mentioned in Exhibit I, are the leaders in their
respective sectors. The personal care category has the largest number of
brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and
Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or
54% of the personal care category. Cigarettes account for 17% of the top
100 FMCG sales, and just below the personal care category. ITC alone
accounts for 60% volume market share and 70% by value of all filter
cigarettes in India.
The foods category in FMCG is gaining popularity with a swing of
launches by HLL, ITC, Godrej, and others. This category has 18 major
brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the
powders segment. The food category has also seen innovations like softies in
ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both
GCMMF and Godrej Pillsbury. This category seems to have faster
development than the stagnating personal care category. Amul, India's
largest foods company, has a good presence in the food category with its ice-
creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top
100 FMCG brands, dominates the biscuits category and has launched a
series of products at various prices.
In the household care category (like mosquito repellents), Godrej and
Reckitt are two players. Goodknight from Godrej, is worth above Rs 217
crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo
category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's
Head and Shoulders and Pantene are also trying hard to be positioned on top.
Clinic is nearly double the size of Sunsilk.
Dabur is among the top five FMCG companies in India and is a herbal
specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in
2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash,
Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in
the Indian sub-continent, Southeast Asia, Far East, Middle East, South
Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint
company, with a turnover of Rs.22.6 billion (around USD 513 million).
Forbes Global magazine, USA, ranked Asian Paints among the 200 Best
Small Companies in the World
Cadbury India is the market leader in the chocolate confectionery market
with a 70% market share and is ranked number two in the total food drinks
market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and
Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian
group in consumer products and services in the Global Beauty and Wellness
space.
Company Profile :-
ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily seek
a corporate governance rating.
ITC employs over 24,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating
capabilities in a globalising environment to consistently reward more than
3,83,000 shareholders, fulfill the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring
Value. For the nation. For the Shareholder."
History of ITC:
TC was incorporated on August 24, 1910 under the name of 'Imperial
Tobacco Company of India Limited'. Its beginnings were humble. A leased
office on Radha Bazar Lane, Kolkata, was the centre of the Company's
existence. The Company celebrated its 16th birthday on August 24, 1926, by
purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L.
Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the
Company was historic in more ways than one. It was to mark the beginning
of a long and eventful journey into India's future. The Company's
headquarter building, 'Virginia House', which came up on that plot of land
two years later, would go on to become one of Kolkata's most venerated
landmarks. The Company's ownership progressively Indianised, and the
name of the Company was changed to I.T.C. Limited in 1974. In recognition
of the Company's multi-business portfolio encompassing a wide range of
businesses - Cigarettes & Tobacco, Hotels, Information Technology,
Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle
Retailing and Greeting Gifting & Stationery - the full stops in the Company's
name were removed effective September 18, 2001. The Company now
stands rechristened 'ITC Limited'.
Though the first six decades of the Company's existence were primarily
devoted to the growth and consolidation of the Cigarettes and Leaf
Tobacco businesses, the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life of the
Company.
In 1975 the Company launched its Hotels business with the acquisition of a
hotel in Chennai which was rechristened 'ITC-Welcome group Hotel
Chola'. The objective of ITC's entry into the hotels business was rooted in
the concept of creating value for the nation. ITC chose the hotels business
for its potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large scale direct and indirect employment. Since
then ITC's Hotels business has grown to occupy a position of leadership,
with over 70 owned and managed properties spread across India. In 1979,
ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India.
Bhadrachalam Paperboards amalgamated with the Company effective March
13, 2002 and became a Division of the Company, Bhadrachalam
Paperboards Division. In November 2002, this division merged with the
Company's Tribeni Tissues Division to form the Paperboards & Specialty
Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also
made an immense contribution to the development of Sarapaka, an
economically backward area in the state of Andhra Pradesh. It is directly
involved in education, environmental protection and community
development. In 2004, ITC acquired the paperboard manufacturing facility
of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil
Nadu. The Kovai Unit allows ITC to improve customer service with reduced
lead time and a wider product range.
In 2000, ITC launched a line of high quality greeting cards under the brand
name 'Expressions'. In 2002, the product range was enlarged with the
introduction of Gift wrappers, Autograph books and Slam books. In the
same year, ITC also launched 'Expressions Matrubhasha', a vernacular
range of greeting cards in eight languages and 'Expressions Paperkraft', a
range of premium stationery products. In 2003, the company rolled out
'Classmate', a range of notebooks in the school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range
of international quality relaxed wear for men and women in 2000. The Wills
Lifestyle chain of exclusive stores later expanded its range to include Wills
Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC
also initiated a foray into the popular segment with its men's wear brand,
John Players, in 2002. In 2006, Wills Lifestyle became title partner of the
country's most premier fashion event - Wills Lifestyle India Fashion Week
- that has gained recognition from buyers and retailers as the single largest
B-2-B platform for the Fashion Design industry. To mark the occasion, ITC
launched a special 'Celebration Series', taking the event forward to
consumers. In 2007, the Company introduced 'Miss Players'- a fashion
brand in the popular segment for the young woman.
In 2000, ITC spun off its information technology business into a wholly
owned subsidiary, ITC Infotech India Limited, to more aggressively
pursue emerging opportunities in this area. Today ITC Infotech is one of
India’s fastest growing global IT and IT-enabled services companies and has
established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across key
focus verticals - Manufacturing, BFSI (Banking, Financial Services &
Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and Media & Entertainment.
ITC Foods:
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.
The packaged foods business is an ideal avenue to leverage ITC's
proven strengths in the areas of hospitality and branded cuisine,
contemporary packaging and sourcing of agricultural commodities. ITC's
world famous restaurants like the Bukhara and the Dum Pukht, nurtured
by the Company's Hotels business, demonstrate that ITC has a deep
understanding of the Indian palate and the expertise required to translate this
knowledge into delightful dining experiences for the consumer. ITC has
stood for quality products for over 98 years to the Indian consumer and
several of its brands are today internationally benchmarked for quality. The
Foods business carries forward this proud tradition to deliver quality food
products to the consumer. All products of ITC's Foods business available in
the market today have been crafted based on consumer insights developed
through extensive market research. Apart from the current portfolio of
products, several new and innovative products are under development in
ITC's state-of-the-art Product Development facility located at Bengaluru.
Leadership in the Foods business requires a keen understanding of the
supply chain for agricultural produce. ITC has over the last 98 years
established a very close business relationship with the farming community in
India and is currently in the process of enhancing the Indian farmer's ability
to link to global markets, through thee-Choupal initiative, and produce the
quality demanded by its customers. This long-standing relationship is being
leveraged in sourcing best quality agricultural produce for ITC's Foods
business.
The Foods business is today represented in 4 categories in the market.
These are:
• Ready To Eat Foods
• Staples
• Confectionery
• Snack Foods
Aashirvaad
Staples
ITC entered the branded Atta market with the launch of Aashirvaad Atta in
Jaipur and Chandigarh on 26th May 2002. The product is now available all
over India.
‘Aashirvaad’ promises the Indian housewife the joy of providing her family
with the most delightful home-made rotis, made from the finest quality atta.
ITC uses the sourcing strength of its e-Choupals to buy wheat directly from
the farmers to deliver happiness to the Indian consumer
– Khushiyaan Chun Chun ke (Happiness handpicked).
‘Aashirvaad’ is made from finest quality wheat that ITC
has the unique capability to source through its e-
Choupal network. Premium quality atta, made from
100% MP 'sharbati' wheat is also available as
Aashirvaad Select Atta . The wheat for Aashirvaad MP Blend Chakki
Atta comes from the plush, fertile soil of Madhya Pradesh and then blended
using the traditional 'chakki-grinding' method to give the superior,
discerning taste.
ITC Foods also aims to delight the consumer through superior and
innovative packaging. The Aashirvaad package is PET Poly, with the design
showcasing the farming process undertaken in the rural heartland of India in
the form of a Madhubani painting. ‘Aashirvaad Select’ Atta (5 kg pack) was
awarded the World Star Award for Excellence in Packaging in the
Consumer Pack Category. This is one of the most prestigious awards in the
world for Packaging.
Aashirvaad Salt
ITC launched branded packaged salt under the brand name
‘Aashirvaad Salt’ on 26th March, 2003. The product is
available in grocery stores around the country.
Spices
ITC forayed into the branded spices market with the launch of Aashirvaad
Spices in Northern India in May 2005. The offering currently consists of
Chilli, Turmeric and Coriander powder in SKUs of 50g, 100g, 200g and
500g each.
The product is available in grocery
stores around the country.
The company entered organic foods
retailing in July 2007 with the launch of
Aashirvaad Select Organic Spices. Aashirvaad Select will initially offer
chilli, turmeric and coriander powders. The organic spices are available in
all major metros across all modern
trade outlets and food retail chains in packs of 100 grams.
Instant Mixes
This range, launched in March '06, includes Gulab Jamun, Rava Idli, Rice
Idli, Rice Dosa, Khaman Dhokla, Rasmalai and Vada mix. Aashirvaad
Instant Mixes promise the discerning Indian homemaker perfect tasting
dishes, consistently. The Rava idli Mix is available in 500g pack and rest of
the products are available in 200g packs. The latest entrants to the portfolio
include Rasmalai and Vada mixes. Rasmalai mix is
available in 126g pack and Vada mix in 200g pack.
Aashirvaad Multi-purpose Cooking Paste
The Multi-Purpose Cooking paste is the latest offering from the
‘Aashirvaad’ brand. The ‘Aashirvaad’ Multi-Purpose cooking paste is
positioned as a kitchen aide. The product, ‘Bhuna hua taiyaar masala’, is a
fried paste of onions, tomatoes, ginger and garlic shallow fried in refined
sunflower oil.
It is a basic paste used for most north Indian dishes. It is suitable for all
tomato-based dishes.
The ‘Aashirvaad’ Multi-Purpose Cooking paste is available in Delhi,
Chennai, Hyderabad, Bengaluru, Kolkata, Ahmedabad, Mumbai and Pune at
leading grocery outlets. It is available in easy to use pouch size of 100g and
280g bottle.
Snack foods
Sunfeast
In 2003, ITC forayed into the Biscuits
market with the Sunfeast range of
Glucose, Marie and Cream Biscuits.
Sunfeast’s brand essence, "Spread the
Smile" connotes happiness,
contentment, satisfaction and pleasure. The mascot Sunny reinforces the
emotional aspects of the brand.
Sunfeast immediately established itself as a provider of innovative and
distinctive products - Sunfeast Marie was launched in
an innovative orange flavour and the 'Sunfeast
Dream Cream' range includes new flavours as well
as flavour enhancers. The Sunfeast Dream Cream
range is currently available in 8 variants. The
Company has also introduced 'Sunfeast Dark
Fantasy', a dark chocolate and vanilla cream offering
for the premium segment in select markets.
Riding on the success of its initial offerings, ITC also
entered the milk biscuit category with Sunfeast Milky
Magic biscuits in the general milk and milk cream
categories. Apart from milk which helps mental growth,
these biscuits also contain the finest quality wheat aiding physical growth.
Both cream and milk biscuits have received enthusiastic response from
consumers.
In the last few years the Sunfeast biscuits portfolio has been enhanced to
include salted crackers and cookies. The 'Sunfeast Snacky' salted crackers
are available in 2 unique variants viz., Chilli Flakes and Classic Salted.
Sunfeast's cookie offering, 'Sunfeast Special' biscuits are also available in
select markets. The Sunfeast Special range currently includes cookies in
three variants – Butter, Cashew and crunchy Coconut, as well as cream
biscuits in two variants – Choco and Orange. The recently launched
Sunfeast Golden Bakery offers the freshly baked taste of cookies in 3
variants - Choco-nut, Butter-nut and Butter scotch.
The brand has also launched Sunfeast Nice, a tasty and delightful offering
of crispy, sugar sprinkled biscuits.
The Sunfeast product portfolio has been further
expanded to include healthy snacking options as well.
'Sunfeast Pasta Treat', a whole wheat based instant
pasta was introduced as a healthy snacking option for
children. After the tremendous success of the 4 initial
flavours the instant Pasta range has been extended with two new exciting
flavours – Pizza and Chicken. The pasta segment was
further expanded with the launch of 'Sunfeast Benne
Vita' in 4 innovative variants. This range has been
enhanced recently with the launch of Sunfeast Benne
Vita Flax Seed biscuits that reflect the brand essence of Benne Vita, which
in Italian stands for ‘Good Life’. The flax seed content in these protein and
mineral enriched biscuits is a rich vegetarian source of Omega III acids.
With continued focus on health and nutrition, Sunfeast extended the biscuits
portfolio to the nutritional segment with the launch Sunfeast Sachin's Fit
Kit – a range of healthy products co-created with Sachin Tendulkar. It is
for the first time in India that an icon of the stature of Sachin Tendulkar has
been actively involved in the product development process as co-creator of
the Sunfeast Sachin's Fit Kit range. It is the shared vision of Sunfeast as well
as Sachin Tendulkar that products under the Sachin's Fit Kit range will
enable create "Champions of Tomorrow". The launch range comprises two
offerings - Sunfeast Sachin's Vitamin and Protein enriched biscuits and
Sunfeast Sachin's Multigrain biscuits.
Bingo
Snack foods
Bingo!
The launch of Bingo! in March 2007 marked ITC's foray
into the fast growing branded snack foods segment.
Bingo’s portfolio includes an array of products in both
Potato Chips & Finger Snacks segment.
Bingo! is positioned as a youthful and innovative
snack, offering the consumers with choice in
terms of both formats and flavors.
The beginnings might have been humble-the dreams were anything but. By
1910, with the advent of electricity, Britannia mechanised its operations, and
in 1921, it became the first company east of the Suez Canal to use imported
gas ovens. Britannia's business was flourishing. But, more importantly,
Britannia was acquiring a reputation for quality and value. As a result,
during the tragic World War II, the Government reposed its trust in Britannia
by contracting it to supply large quantities of "service biscuits" to the armed
forces.
As time moved on, the biscuit market continued to grow… and Britannia
grew along with it. In 1975, the Britannia Biscuit Company took over the
distribution of biscuits from Parry's who till now distributed Britannia
biscuits in India. In the subsequent public issue of 1978, Indian shareholding
crossed 60%, firmly establishing the Indianness of the firm. The following
year, Britannia Biscuit Company was re-christened Britannia Industries
Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores
revenue mark.
On the operations front, the company was making equally dynamic strides.
In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its
new corporate identity - "Eat Healthy, Think Better" - and made its first
foray into the dairy products market. In 1999, the "Britannia Khao, World
Cup Jao" promotion further fortified the affinity consumers had with 'Brand
Britannia'.
Britannia strode into the 21st Century as one of India's biggest brands and
the pre-eminent food brand of the country. It was equally recognised for its
innovative approach to products and marketing: the Lagaan Match was
voted India's most successful promotional activity of the year 2001 while the
delicious Britannia 50-50 Maska-Chaska became India's most successful
product launch. In 2002, Britannia's New Business Division formed a joint
venture with Fonterra, the world's second largest Dairy Company, and
Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision
and accelerating graph, Forbes Global rated Britannia 'One amongst the Top
200 Small Companies of the World', and The Economic Times pegged
Britannia India's 2nd Most Trusted Brand.
Today, more than a century after those tentative first steps, Britannia's fairy
tale is not only going strong but blazing new standards, and that miniscule
initial investment has grown by leaps and bounds to crores of rupees in
wealth for Britannia's shareholders. The company's offerings are spread
across the spectrum with products ranging from the healthy and economical
Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having
succeeded in garnering the trust of almost one-third of India's one billion
population and a strong management at the helm means Britannia will
continue to dream big on its path of innovation and quality. And millions of
consumers will savour the results, happily ever after.
The foods & beverages business consists of beverages, branded staples, ice
cream and culinary products.
In beverages, the company is the world's largest packet tea marketer. The big
tea brands are Taj Mahal, Red Label, 3 Roses, Taaza and Yellow Label. In
coffee, the company market Bru instant coffee and Deluxe Green Label
Roast & Ground Coffee.
The branded staples business comprises Annapurna wheat flour and edible
salt. In Ice Creams, the company markets the Kwality Wall's range, which
comprises 'Impulse' brands like the Max range for children, Cornetto, and
Feast for teenagers and young adults. It also caters to the 'take-home'
segment. In culinary products, it offers the Kissan range of jams, squashes,
tomato ketchup, sauces, and puree. To target new users the company have
also come out with sachet packs for jams.
The home & personal care portfolio comprises some of the biggest brands in
India.
In soaps, the major brands are Lifebuoy, Lux, Liril, Breeze, Pears, Hamam
and Dove. In detergents, the main brands are International Surf Excel, Surf,
Rin, Wheel, OK, 501, Sunlight, and Ala. To cater to household care, the
company markets the Vim and Domex range.
The personal products business addresses oral, hair, and skin care needs. In
oral care, Close-Up and Pepsodent toothpaste, toothbrushes and toothpowder
are offerings. In hair care, the company has a host of products, ranging from
shampoos to hair oils. Clinic, Sunsilk, and Lux are the main hair care
brands. In skin care, the company markets Fair & Lovely, Pond's, Lakme,
and Pears franchises. In color cosmetics, the company markets the Lakme
range of beauty products. In deodorants and fragrances, the main household
names are Rexona, Axe and Denim.
Colgate-Palmolive Company
Indian Oil Corporation Limited
L'Oreal S.A.
Mars, Inc.
Nestle S.A.
S.C. Johnson & Son, Inc.
Sara Lee Corporation
The Clorox Company
Wipro Corporation
Reckitt Benckiser PLC
Procter & Gamble
The Gillette Company
Revlon, Inc.
Kraft Foods, Inc.
Bhatinda Chemicals Limited
Parle Products Pvt Ltd
CHAPTER 4
COMPANY: BRITANIA
DISTRIBUTER: (VIZAG) SRI VENKATA RATNA
TRADERS
OFFICE: 28-16-19/A, SURYA BAGH,
VIZAG-20.
GODOWN: 30-8-5A, BHANU STREET,
DABAGARDENS, VIZAG-20.
MANAGER: KAMESH
SALARIES:
The salesman gets Rs.4000+ 10% incentives.
The supervisor gets Rs.6000+ 10% incentives.
The drivers get Rs.2000.
Incentives are given as per the work carried out by the salesman and
supervisor to achieve the target by the distributor or during some festive
season or a special occasion.
SUPPLY CHAIN:
The supply chain runs on a weekly schedule basis. Once the order is placed
by the distributor it takes 2 days for the stock to reach the distributors
godown from the C&F unit. As per Sri Venkata Ratna Traders is concerned,
2 truck loads of stock is transported into the Vizag market weekly. 1 truck
load consists of 600 cartons of the required products worth 3.5lacs. To cover
the retail outlets in the city the distributor has 6 salesmen, 1 van and 2
auto’s. The rural market comes under a totally different segment. Weekly
once a visit is paid to those rural markets and the information is collected
regarding the amount of stock sold and amount of stock reqired in the
market.
The outdated and DND(defective and damaged) products are collected
from the market and dumped in a dumping ground in Yendada under the
supervision of the company officials.
MAIN PRODUCTS:
Britanaia 50 – 50
Maska chaska
Tiger
Marie
The company does not provide any kind of reimbursement for the sales force
whatsoever. They strictly provide only a 5% margin support to the dealer to
carry out his work.
COMPANY: PARLE.
DISTRIBUTER: LAXMI AGENCIES.
OFFICE: DABAGARDENS, VIZAG-20.
GODOWN: BHANU STREET,
DABAGARDENS, VIZAG-20
WORKFORCE:
As per Sri Laxmi Agencies, they have nearly 5 executives, 2
salesman, 1 delivery boy and 1 computer person and 2 autos. Each sales
person needs to cover nearly 30-35 outlets per day i.e. nearly 140 outlets are
covered in a day. The sales person enquires about the stock with the retailer
and takes the order as per the retailers requirements. The sales person reports
to the manager about the order placed by the retailer and then the manager
makes necessary arrangements for the order to be distributed to the various
retailers as per their requirements. These are then fed into the computer and
the sales invoice is generated which mentions the invoice name, customer
id, SI no, date, market, ordered by, customer and address. For example:
Bill No.: Parle/48920
Customer: Nagaraj Stores
Address:
SI No.: T3731
Date: 15-5-2008
Market: VS-(WED) Collectrate main road
Order By: V. CH Shekar.
Customer id: 1438
Then the auto or van leaves the distributors godown to the retail
outlets to distribute the ordered products among the various retailers.
SALARIES:
The salesman gets Rs.4000+incentives.
The supervisor gets Rs.6000+incentives.
The drivers get Rs.2000.
Incentives are given as per the work carried out by the salesman and
supervisor to achieve the target by the distributor or during some festive
season or a special occasion.
Every month the salesman increases 1% of the total market coverage
and based on this incentives will be provided.
The company official i.e.., the sales executive is present to watch all the
activities taking place in all 3 districts. Monthly 7-10 days is spent by the
sales executive in the Vizag market. The stay may get extended as per the
requirements in the market.
SUPPLY CHAIN:
Vizag market is divided into 3 districts. The main branches/depot are
in Hyderabad and Vijayawada.
As per the requirements the distributor needs to place the order to the
company. The tranaction is carried out through DD. Once the DD is cleared
it takes maximum 5 days for the products to reach. As per Sri Laxmi
Agencies is concerned, 1 truck load consists of 200 cartons of the required
products. To cover the retail outlets in the city the distributor has 2
salesmen, 1 van and 2 auto’s. The rural market comes under a totally
different segment. Weekly once a visit is paid to those rural markets and the
information is collected regarding the amount of stock sold and amount of
stock required in the market.
The outdated and DND(defective and damaged) products are collected
from the market and dumped in a dumping ground in Yendada under the
supervision of the company officials or else it is packed and sent back to
Hyderabad. The expired products are replaced by thee company. It may take
a time of 2-3 months.
MAJOR COMPETITORS:
1) Britania
2) Sunfeast
MAIN PRODUCTS:
1) Hide n Seek
2) Paele G
3) Marie
4) Krack Jack
SALES PROMOTIONAL ACTIVITIES:
1) All other general schemes like providing 50% or 35% extra gms on
specific biscuits provided by the company directly to the customer.
2) If the sales are high, the schemes also increase, thus the schemes are never
static.
3) provide display racks for displaying of Parle products.
4) Production demo is given to the cutomer as well as to the retailer.
5) Incentives are given to the retailer.
6) Various other schemes depending on the retailers performance.
7) In-packed gifts to the customers.
REIMBURSEMENTS:
Distributor looks after all the reimbursements but in case of any losses
the company will cover the gap. There are no fixed reimbursements given to
the dealer eg; salesman salary or incentives, transportation costs.
SALES STRUCTURE:
GSM to RSM to ASM to Distributor to Salesmen
1) Both the salesmen visit their respective outlets and collect the
information.
2) The information collected by the salesmen is reported to the Distributor.
3) The distributor reports to the Area Sales Manager who visits the market
every 10 days of the month.
4) The ASM reports to the Regional Sales Manager.
5) Finally the RSM reports to the General Sales Manager who is the senior
most in the level.
CRITERIA FOR NEW DISTRIBUTORSHIP:
As per Parle’s needs of a distributor for any market the interested
dealer should fulfill the following:
1) An investment of 3-4lacs is required to get the distributorship
of Parle products.
2) The sales force should consist of 5 executives and 2 salesmen
and 1 delivery boy.
3) The company requires a godown of nearly 600-800 sq ft.
SALARIES:
14 salesmen are there with the agency and each need to cover at least 25
outlets and as per Rising Sun Enterprise nearly 100 outlets should be
covered by all the salesmen out of the 872 outlets in total.
SUPPLY CHAIN:
HUL has no distributors in Vizag, instead they have stockists. The main
office(super stockist) is in Vijayawada. The Vizag stockists get their
stock from the super stockists in Vijayawada, which also serves as the
main godown for Andhra Pradesh.
The main branch that controls the Andhra Market is based in Chennai.
The products are delivered weekly 3 times. 1 truck load carries 10 tonnes
of goods worth approximately 10lacs.
If the stock with one of the distributors is inadequate then he can collect
the required amount of stock from the nearby distributor.
Claim is put by the distributor regarding the DND (defective and
damaged) products. In case of damaged personal products, it will be
returned back to the company. The main line products will be dumped in
Yendada.
SALES STRUCTURE:
Regional Manager to Regional Sales Manager to Area Sales Manager to
Area Executive to Territory Sales Officer to Distributor to Salesman.
1) The salesman collects information from the market and reports to the
distributor.
2) Then the distributor reports to the assigned TSO.
3) The TSO then reports to the concerned Area Executive.
4) The Area Executive hands over the information to the Area Sales
Manager.
5) The Area Sales Manager then reports to the Regional Sales Manager.
6) Finally the Regional Sales Manager reports to the Regional Manager.
MAJOR COMPETITORS:
1) ITC
2) Nestle
3) P&G
4) Britania
5) Parle
MAIN PRODUCTS:
Mainstream Products:
1) Rexona
2) Lux
3) Lifebuoy
4) Rin Supreame
5) Rin Advance Bar
6) Surf Blue
7) Surf Excel
8) Vim Bar
9) Wheel Powder
Foods:
1) Annapurna Salt
2) Taj Mahal
3) Amaze Biscuit
4) 3 Roses Tea
5) Kissan Jam & Sauce
6) Bru Coffee
SALES PROMOTIONAL ACTIVITIES:
1) If the sales are high, the schemes also increase, thus the
schemes are never static.
2) They provide display racks for displaying of HUL products.
3) Every month sales promotional activities are provided directly
to the retailer.
4) Every month new sales promotional activities are carried out as
almost every month 1 new product is launched.
REIMBURSEMENTS:
The company does not provide any kind of reimbursement to the
dealer. Claim is put forward by the distributor for damaged products and the
process may take atleast a months time. In case the personal products are
damaged no monetary reimbursements are provide. They will be replaced
by new products.
ATTTA:-
MARIE:-
MARIE PARLE 180g (150g + 30g FREE) 10rs
MARIE PARLE 347g 22rs
MARIE BRITANIA 85g 7rs
MARIE BRITANIA 176g 13 rs
MARIE BRITANIA 370g 25 rs
SUNFEAST
MARIE ITC 171g 12rs
MARIE ITC 332g 25rs
GLUCOUSE:-
PARLE G PARLE 880g 40 rs
PARLE G PARLE 220g 10 rs
PARLE G PARLE 330g 15rs
TIGER BRITANIA 450g 22rs
TIGER BRITANIA 165g 8rs
COOKIES:-
SUNFEAST
COOKIES ITC 75g 5rs
COOKIES BRITANIA 90g 12rs
COOKIES BRITANIA 180g 23rs
COOKIES PARLE 75 g 5rs
GOLDEN
BAKERY ITC 75g 15rs
CHIPS:-
MUSST BITES PARLE 55g 10rs
LAYS FRITO
AMERICAN STYLE
AND ONION,
MAGIC MASALA,
CLASSIC SALTED 32g 10rs
BINGO ITC
MAD ANGLES 55g 10rs
SALTED 34g 10rs
SPICY MASALA
MIX 34g 10rs
Analysis of ATTA market:-
Q-SNO
Respondent’s / Shop Name
Location
Mo.of year in business – 1 yr 1-5 yr 5-8yr >8yr
aashiravard
annapurna
pillsbury
priya
Fig 1.1
From the above pie chart we can find that ITC’s atta brand aashirvard
is clearly the number one national atta brand in vizag followed by Pillsbury .
Aashirvard is clearly having a good market share in the national atta brand
segment
2) BEST MARGIN PROVIDED BY WHICH NATIONAL
ATTABRAND
aashiravard
annapurna
pillsbury
priya
Fig1.2
The above pie chart deals with which atta company provides a good
amount of margin to its products. And from the information collected from
the retailers its found ITC leads in this too while many other retailers feel
Pillsbury also provide a good amount margin
3)WHICH ATTA BRAND PROVIDES BEST PROMOTIONAL
DISCOUNTS/ OFFERS
aashiravard
annapurna
pillsbury
priya
Fig-1.3
The above pie chart deals with which atta company has good
promotional activities for the customers as well as for the retailers. And from
the information collected from the retailers its found ITC is the company
which has a good amount promotional activities followed by annapurna atta
from TATA’s
4) WHICH COMPANY HAS BEST SCM / LOGISTICS
aashiravard
annapurna
pills bury
priya
Fig-1.4
The above pie chart deals with which atta company has a good SCM \
LOGISTICS. And from the information collected from the retailers its found
ITC has the best logistics or the best supply chain management which is
very efficient in taking orders and delivering the products followed by
annapurna atta
5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER
WEEK)
<1
1 to 3
>3
Fig - 1.5
In the above question the retailer were asked whats the ideal number
of weeks or days do they want the company officials or salesmen to pay
them a visit and deliver the products to them and from the above pie chart it
can be easily found that most if the retailers prefer a visit within a week
itself so as to maintain a good amt of stock.
6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES
(A)AASHIRVAAD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA
aashiravard
annapurna
pillsbury
priya
Fig-1.6
The above pie chart deals with which atta company provides with
good credit facilities. And from the information collected from the retailers
its found ITC is the company which provides the highest amount of credit
facilities to its retailers when compared with any other company in the
buisness
7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR
TOTAL ORDER
<20%
20 to 40%
40 to 60%
Fig- 1.7
In the above question the retailer were asked how much credit per cent
would they like to get from the company’s and from the above pie chart it
has been found that most of the retailers want that the credit facility should
be between 20%-40%.
8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR
CREDIT
<7 days
7 to 15 days
15 to 30 days
Fig-1.8
In the above question the retailer were asked how many days do they
prefer should be given to them to repay the credit given to them by the
company and from the above pie chart it has been found that most of the
retailers want that the credit repayment days should be between 15-30 days.
9) % OF ATTA BUSINESS CONTRIBUTION TO TOTAL
PROPRIETORS / SHOP BUSINESS
<5%
5% to 10%
10% to 15%
Fig- 1.9
In the above question the retailer were asked how much per centage
does the atta products contribute in there business and from the above pie
chart it has been found that nearly 10 % to 15% is what atta business
contributes to a retailers business.
Analysis of PASTA market:-
Q-SNO
Respondent’s / Shop Name
Location
No.of year in business – 1 yr 1-5 yr 5-8yr >8yr
sunfeast
m aggi
top raeman
Fig- 2.1
From the above pie chart we can find that ITC’s ready to eat (pasta)
brand sunfeast is clearly the last brand in this segment when compared to its
competitors . As clearly seen nestle maggi is the leader in this market of
ready to eat noodles.
2)BEST MARGIN PROVIDED BY WHICH NATIONAL READY TO
EAT BRAND
sunfeast
maggi
top raeman
Fig - 2.2
The above pie chart deals with which ready to eat brand provides a
good amount of margin to its products. And from the information collected
from the retailers its found that maggi leads in this too leaving all its
competitors far behind .
3)WHICH READY TO EAT BRAND PROVIDES BEST
PROMOTIONAL DISCOUNTS/OFFERS
sunfeast
maggi
top raeman
Fig- 2.3
The above pie chart deals with which ready to eat brand has good
promotional activities for the customers as well as for the retailers. And from
the information collected from the retailers its found that maggi has the wide
range of promotional activities for customers as well as for the retailers
4)WHICH COMPANY HAS BEST SCM / LOGISTICS
(A)SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN
sunfeast
m aggi
top raeman
Fig- 2.4
The above pie chart deals with which atta company has a good SCM \
LOGISTICS. And from the information collected from the retailers its found
maggi has the best logistics or the best supply chain management which is
very efficient in taking orders and delivering the products when compared
with any of its competitiors.
5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER
WEEK)
(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY
sunfeast
maggi
top raeman
Fig - 2.5
In the above question the retailer were asked whats the ideal number
of weeks or days do they want the company officials or the salesmen to pay
them a visit and deliver the products to them and from the above pie chart it
can be easily found that most of the retailers prefer a visit within a week
itself so as to maintain a good amt of stock.
6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES
sunfeast
maggi
top raeman
Fig 2.6
The above pie chart deals with which ready to eat brand provides with
good credit facilities. And from the information collected from the retailers
its found magi provides the highest amount of credit facilities to its retailers
when compared with top raeman and sunfeast
7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR
TOTAL ORDER
<20%
20 to 40%
40 to 60%
Fig- 2.7
In the above question the retailer were asked how much credit per cent
would they like to get from the company’s and from the above pie chart it
has been found that most of the retailers want that the credit facility should
be between 20%-40%.
8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR
CREDIT
<7 days
7 to 15 days
15 to 30 days
Fig - 2.8
In the above question the retailer were asked how many days do they
prefer should be given to them to repay the credit given to them by the
company and from the above pie chart it has been found that most of the
retailers want that the credit repayment days should be between 15-30 days.
9) % OF READY TO EAT BUSINESS CONTRIBUTION TO TOTAL
PROPRIETORS / SHOP BUSINESS
<5%
5 to 10%
10 to 15%
Fig - 2.9
In the above question the retailer were asked how much per centage
does the ready to eat products contribute in there business and from the
above pie chart it has been found that nearly 5 % to 10% and quite few
retailers said it contributes less than 5% to there business.
Analysis of BISCUIT market:-
Q-SNO
Respondent’s / Shop Name
Location
sunfeast
parle
britania
Fig- 3.1
From the above pie chart we can find that there is a lot of neck to neck
competition in the biscuit market with all the three company’s having a good
amount of market share but its britania which is having the majority
2) BEST MARGIN PROVIDED BY WHICH BISCUITS BRAND
(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL
sunfeast
parle
britania
Fig 3.2
The above pie chart deals with which biscuit brand provides a good
amount of margin to its retailers. And from the above pie chart we can find
out that its sunfeast which provides a good amount of margin to its retailers
soon followed by britania
3) WHICH BISCUIT PROVIDES BEST PROMOTIONAL
DISCOUNTS/ OFFERS
sunfeast
parle
britania
Fig - 3.3
The above pie chart deals with which biscuit brand has best
promotional activities for the customers as well as for the retailers. And from
the information collected from the retailers its found that britania has the
wide range of promotional activities for customers as well as for the retailer .
followed by sunfeast.
4) WHICH COMPANY HAS BEST SCM / LOGISTICS
(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL
sunfeast
parle
britania
Fig 3.4
The above pie chart deals with which biscuit company has a good
SCM \ LOGISTICS. And from the information collected from the retailers
its found that both sunfeast and britania have a good logistics and there scm
process is good with no problems in supply of goods and services
5)WHICH IS IDEAL NUMBER OF WEEKS FOR YOU ? (PER
WEEK)
(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY
<1
1 to 3
>3
Fig 3.5
In the above question the retailer were asked whats the ideal number
of weeks or days do they want the company officials or the salesmen to pay
them a visit and deliver the products to them and from the above pie chart it
can be easily found that most of the retailers prefer a visit within a week
itself so as to maintain a good amt of stock.
6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES
(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL
sunfeast
parle
britania
Fig - 3.6
The above pie chart deals with which biscuit brand provides with
good credit facilities. And from the information collected from the retailers
its found sunfeast provides the highest amount of credit facilities to its
retailers when compared with top parle and britania.
7)HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR
TOTAL ORDER
(A)< 20% (B) 20% - 40% (C) 40% - 60%
(D) > 60% (E) NO CREDIT REQD
0 - 20
20 - 40
40 - 60
60 - 80
Fig - 3.7
In the above question the retailer were asked how much credit per cent
would they like to get from the company’s and from the above pie chart it
has been found that most of the retailers want that the credit facility should
be between 20%-40%.
8)HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR
CREDIT
(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS (D) 15-30 DYS (E) > 30 DAYS
<7 days
7 to 15 days
15 to 30 days
Fig - 3.8
In the above question the retailer were asked how many days do they
prefer should be given to them to repay the credit given to them by the
company and from the above pie chart it has been found that most of the
retailers want that the credit repayment days should be between 15-30 days
9)% OF biscuit BUSINESS CONTRIBUTION TO TOTAL
PROPRIETORS / SHOP BUSINESS
(A)< 5 % (B) 5%-10% (C) 10%-15% (D) >15%
<5%
5 to 10%
10 to 15%
Fig - 3.9
In the above question the retailer were asked how much per centage
does the biscuit contribute in there business and from the above pie chart it
has been found that nearly 5 % to 10% .
Analysis of CHIPS market:-
Q-SNO
Respondent’s / Shop Name
Location
lays
bingo
uncle chips
Fig 4.1
From the above pie chart we can find that there is a lot of neck to neck
competition in the chip market with all the three companys having a good
amount of market share but its lays and bingo which is having the majority .
2) BEST MAGIN PROVIDED BY WHICH CHIPS BRAND
(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS
lays
bingo
uncle chips
Fig 4.2
The above pie chart deals with which chips brand provides a good
amount of margin to its retailers. And from the above pie chart we can find
out that its bingo and lays which provides a good amount of margin to its
retailers. and the difference is very less.
3) WHICH CHIPS BRAND PROVIDES BEST PROMOTIONAL
DISCOUNTS/OFFERS
(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS
lays
bingo
uncle chips
Fig - 4.3
The above pie chart deals with which chips brand has best
promotional activities for the customers as well as for the retailers. And from
the information collected from the retailers its found that lays has the wide
range of promotional activities for customers as well as for the retailer
followed by bingo which is also good in promotional activities.
4) WHICH COMPANY HAS BEST SCM / LOGISTICS
(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS
lays
bingo
uncle chips
Fig - 4.4
The above pie chart deals with which chips company has a good SCM
\ LOGISTICS. And from the information collected from the retailers its
found that both lays and bingo have a good logistics and there scm process is
good with no problems in supply of goods and services.
5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER
WEEK)
(A) <1 (B) 1-3 (C) >3 (D) EVERYDAY
<1
1 to 3
>3
Fig - 4.5
In the above question the retailer were asked whats the ideal number
of weeks or days do they want the company officials or the salesmen to pay
them a visit and deliver the products to them and from the above pie chart it
can be easily found that most of the retailers prefer a visit within a week
itself so as to maintain a good amt of stock.
6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES
(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS
lays
bingo
uncle chips
Fig - 4.6
The above pie chart deals with which chips brand provides with good
credit facilities. And from the information collected from the retailers its
found lays provides the highest amount of credit facilities to its retailers
when compared with top bingo and uncle chips.
7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR
TOTAL ORDER
(A) < 20% (B) 20% - 40% (C) 40% - 60% (D) > 60%
(E) NO CREDIT REQD
<20%
20 to 40%
40 to 60%
Fig 4.7
In the above question the retailer were asked how much credit per cent
would they like to get from the compnay’s and from the above pie chart it
has been found that most of the retailers want that the credit facility should
be between 20%-40%.
8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR
CREDIT
<7 days
7 to 15 days
15 to 30 days
Fig 4.8
In the above question the retailer were asked how many days do they
prefer should be given to them to repay the credit given to them by the
company and from the above pie chart it has been found that most of the
retailers want that the credit repayment days should be between 15-30 days
9) % OF CHIPS BUSINESS CONTRIBUTION TO TOTAL
PROPRIETORS / SHOP BUSINESS
<5%
5 to 10%
10 to 15%
Fig - 4.9
In the above question the retailer were asked how much per centage
does the chips buisness contribute in there business and from the above pie
chart it has been found that nearly 5 % to 10% .
ITC QUESTIONAIRE
Respondents / Shop Name -
Location-
No. Of years in business–
(A) <1 yr (B) 1-4 yrs (C) 4-8 yrs (D) >8 yrs
1) TICK THE MOST APPROPRIATE LEVEL (SERVICE
SATISFACTION SURVEY)
(A) SUPPLY CHAIN MANAGEMENT
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
EXCELLENT
GOOD
SATISFACTORY
POOR
Fig 5.1
(A) WD BEATS
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
EXCELLENT
GOOD
SATISFACTORY
POOR
Fig - 5.2
EXCELLENT
GOOD
SATISFACTORY
POOR
Fig - 5.3
(D) COMPANY OFFICIALLY VISIT
(a) WEEKLY (b) MONTHLY (c) HALF YEARLY (e) YEARLY
WEEKLY
MONTHLY
HALF YEARLY
YEARLY
Fig - 5.4
EXCELLENT
GOOD
SATISFACTORY
POOR
Fig 5.5
(F) RANGE OF SKU
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
EXCELLENT
GOOD
SATISFACTORY
POOR
Fig - 5.6
EXCELLENT
GOOD
SATISFACTORY
POOR
Fig - 5.7
(H) CREDIT FACILITIES
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
EXCELLENT
GOOD
SATISFACTORY
POOR
Fig - 5.8
EXCELLENT
GOOD
SATISFACTOR
Y
POOR
Fig - 5.9
CHAPTER V
FINDINGS , SUGGESTIONS & CONCLUSION
FINDINGS:-
As per the finding from the market review and market visits while
doing the project under ITC ltd the it was quite clear that ITC is the market
leader in almost all the fields be it its products, credit system, customer
relationship etc. The company has come a long way from the image of only
being a Cigarettes company. The company has created a perfect bond
between itself and the consumer and its brands like sunfeast, aashirvaad,
minto, vivel, fiama are quite familiar among the consumers.
As per the observation it was found that aashirvard atta is the clear
market leader and there is no other company which can give a tuff
competition to ITC. Perfect SKU and Pricing has resulted in the success of
aashirvarad which has eradicated Pillsbury which was the market leader
before. Even companies like HUL which have annapurna atta are finding it
difficult to market it product with the kind of distribution channel ITC is
using.
The success of ITC is not only limited to atta even the biscuit of
business under the brand name sunfeast is doing very well for the company
and is able to stand up in the market even after facing tuff competition from
two very old and prominent companies which were market leaders in this
segment Britania and Parle. The company has been able to aim to different
segments for its biscuit and the result have been very good. Sunfeast marie,
sunfeast glucose, sunfeast burbourn are doing very good and are very
familiar among the consumers. Time to time in pack gifts have also kept the
customers attracted to its products.
Sunfeast pasta is a new product by the company which has done fairly
good for the company. Since pasta is a new product for the people and
people have still not have developed the taste for it. Since the company is
facing its major competition form maggi which is a product from nestle and
has been in this field for a very long time and enjoys a monopoly in the
market. It will take sometime foe sunfeast pasta to become a profitable
product for the company.
Bingo is another product by ITC Ltd which has fairly performed and
is showing positive signs in the market with its growing sales. The product
has able to make an impact in the markets in the recent past. Bingo is facing
its major competition from Lays which has been in the market for a long
time and with many different flavours which has captured the mind of the
people. With proper marketing strategy like buy two get one free has helped
bingo to make a place for itself in the chips market which has lots of scope
for the company since very few players are there in this segment.
CONCLUSION:-
1) The well known brand name that ITC has created by the sale of its
Cigarettes has helped the company to sell it other products without much
of problem or competition.
2) Companies proper distribution channel has helped it to be in the good
books of the retailers which is one of the plus points for the companies
since many companies don’t stand out to ITC’s distribution channels.
3) With its practice of providing maximum credit facility to the retailer it
has become very popular among the retailers be it a small or key outlet
stores.
4) Proper consumer relation has helped the company to strengthen its place
in the market which will be beneficial to the company to turn into market
leader in all the segments.
5) Threat to the company is limited when taken atta and biscuit is taken into
consideration but with the betterment in its products like pasta and chips
very soon it will be the market leader.
SUGGESTIONS:-
1) Company should try and get more different types of SKU’s for its
products like biscuits, pasta and chips since the present SKU are not
enough to capture buyers from all the segments.
2) More and more demonstration are required to be given to the consumers
when it comes to deal with pasta since many don’t know what pasta
actually is. It should be carried out mainly in key outlets.
3) Packaging is also a problem which the company is facing. Company
should try and improve the looks of its packaging specially for its food
products since the competitors are able to get an upper hand when it
comes to attractive packaging.
4) More new flavours are required when chips are taken into consideration.
Out of some six flavours only two or three flavours are doing good in
the market which is helping its competitors like lays to strengthen its
market.
5) More faster distribution is required since many retailers are having
some problems regarding the delivery of goods specially the small
retailers.
6) More and more sales promotional are required so as to improve its
relationship with the customer and to make a strong presence of the
product in the market .
BIBLIOGRAPHY
BOOKS
2) WD BEATS
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
6) RANGE OF SKU
(a)EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
7) BRAND IMAGE
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
8) CREDIT FACILITIES
(a)EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR
9) RELATIONSHIP BUILDING
(a)EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR