A PROJECT REPORT ON

IN

FOR THE AWARD OF PARTIAL COMPLETION OF MASTER OF BUSINESS ADMINISTRATION (MBA)

FROM

U P Technical University, Lucknow

Under Supervision of Mr. Akshay Ahuja (Marketing Manager) ITC Ltd. Saharanpur Under Guidance of Mrs. Nidhi Mathur (Faculty MBA Department) IPEM, Ghaziabad

Submitted by Monty Arora MBA (2003-2005)

Institute of Professional Excellence & Management
A-13/1, S.S. G.T. Road Industrial Area, NH-24, Ghaziabad-201001

AKO LD E ET C N WE G MN

From this acknowledgement .I want to say thanks to persons who helped me directly or indirectly in shaping the present study. I find myself unable to re-compensate without the help provided by these elite personalities, through my pen picture. May God help them in all times of life! With profound pleasure and privilege, I express my deep gratitude to Mr. S. Subba Rao (Branch Manager) of ITC for granting me a permission to do summer training in such a prestigious company. The successful completion of this project entitled Estimate Biscuit Industry and Identify the Critical Success Factors in Saharanpur for ITC because of help and cooperation from several quarters. I would like to extend my sincere thanks to our esteemed guide Mr. Akshay kumar (Area Executive) for his kind co-operation and providing me a good environment to work on. I am also thankful to Mrs. Ruchika Jaiswal, Mrs. Nidhi Mathur, and my friends and respondents for providing me with valuable input from time. Finally, I would like to thank my family members for their understanding and help while I was working on this project.

(Monty Arora)

P EA E RF C
The customer is king: finally ten years after the liberalization of India's economy began the marketplace has, suddenly, become frighteningly competitive. Not only have new players including a host of powerful translation, stormed into the country, there are more brands available then even before in every segment of every market. Befittingly, for the time in above 50 years since Independence, delivering the final verdict will be the customer who is already finicky about what will buy, in future, only that which meets her every desire. This demands more intimate understanding of the customer by the smart companies'. In my project I have tried to Estimate Biscuit Industry and Identify the Critical Success Factors in Saharanpur for ITC.

Contents
Purpose of Training Company Profile Introduction Products of ITC ITC Structure Story of ITC Saharanpur History of Saharanpur ITC Family SWOT Analysis About Biscuit Manufacturers Britannia Priya Gold Parle Anmol Bakers Ltd. Sunfeast An Overview 06 09 10 13 19 23 30 32 35 37 38 43 46 51 53

Project Plan for Field Research Methodology Introduction Objectives of the Study Research Description Problem Formulation Research Proposal Analysis & Interpretation Findings Limitations & Problems Conclusions Suggestions & Recommendations Bibliography Annexure

56 60 61 62 63 69 70 71 90 92 94 96 99 101

PURPOSE OF THE TRAINING

PROJECT TITLE:

Estimate the biscuits Industry and identify the critical success factors. To determine key players operating in the Industry by estimating their volumes and critically evaluate distribution practices.

THE STUDY SHALL ENTAIL THE FOLLOWING :

Complete understanding of the category and industry : ? The key players with brand wise volumes. ? Availability & Visibility figures of key players by channels.

Understanding of the distribution process and the components of the distribution chain: ? The players: Distributor, trade (Wholesale & retail), Salesman. ? Various channels and their dynamics (wholesale, convenience, grocer, tea stall/restaurant...) ? Distribution infrastructure (vehicle, sales force...) ? Distribution norms and practices: (inventory, billing, credit, delivery, frequency of service....) ? Strengths & Weaknesses of various players as regards distribution.

Understanding of various trade schemes in the market : ? Critically analyze the schemes as regards their design and effectiveness ? Recommendations for ITC to formulate a distribution strategy to align with industry needs

INTRODUCTION OF COMPANY
Founded in 1910 as cigarette manufacturing and marketing organization, the ITC group has evolved into a multi market, multi technology and multi product group. An associate of BAT industries plc; ITC is Indias number one

company and the flagship of ITC group which has turnover of US $2 billion. A commitment to excellence has helped the ITC group secure and expand its leading position in key markets. And the group has over the years developed distinctive strength in every aspects of its business to achieve its objective.

Strong Financial Base

Today the ITC group has one of the highest market capitalization in India, nearing US $ 3 billion .With a asset, base ITC has the staying power to invest in capital intensive, long gestation projects. Substantial reserve and profitability Indian companies today.

1 0

Wider distribution
ITC has a wide distribution network that consist of 24, 00 people, and one that co-ordinates supplies from a dozen manufacturing location to over million retail outlets spread across 3700 towns daily.

Global outlook
ITC understands that in the year to come the only way to stay ahead will be catering to a global market. Thus it has already begun working towards this objective. Last year it has emerged as Indias largest exporter. ITCs product designed to meet international standards, keeping this in mind, the company has formed enduring. Future plan of the company include making India a major cigarette manufacturing base for global brands.

Consumer focus
ITCs products are used by millions of consumers from every walk of life. It has been able to create brands leaders in virtually. Every business it operates in

1 1

Cigarette Edible Oils Hybrid Seed Paper / Tissue Hotel

Wills, Scissors, Gold flake, Classic, India kings Sun drop, Crystal, Sdham. Real Gold Adarsh Bhadrachalan / Tribeni Welcome group Maurya Sheraton

Cost Leadership
ITC possesses an extensive manufacturing infrastructure for each of its business. An example on vertical integration ensures total quality control. The group has 12 manufacturing locations in India for cigarette, packaging, printing, and agro-processing.

1 2

PRODUCTS OF ITC
Today ITC is dealing in almost all the sectors of production. Some major areas of production are as follows:-

LEAF TOBACCO DIVISION

ITC has brought modern farm practices and continuous improved to Virginia and Burley Tobacco cultivation. The companys green leaf threshing at Anarporti and Chirala are the largest in Asia. They are the first tobaccos threshing plants in the world to get ISO 9002 accreditation for matching International norms. ITCs ILTD (Indian Leaf Tobacco development Division) is Indias largest buyer, processor and exporter of leaf tobacco. Through its emphasis on quality and services, ILTD, is striving to make tobacco the Golden Crop Of India.

HOTELS
ITC entered the tourism industry in the year 1975 with the WELCOME Group, ITCs hotels division. In less then 20 years it has created chain of Luxury Hotels at key location such as Agra, Andaman, Aurangabad, Jaipur, Jodhpur etc. for discerning business traveler it has created two distinct options, the exclusive Sheraton Towers, a hotel with in a hotel and the executive, club at all its destinations across the country. The Mourya Sheraton at Delhi and the Mughal Sheraton at Agra are the best in the world.

1 3

SEEDS
ITCs Agro-Business Division was set up to develop, produce and market hybrid and high yielding, varieties of seeds to farmers. Today, this division is a leader in oil seeds and other cereal crops. ITCs Adarsh have emerged as one of the Indias leading brands of seeds well received by the farming commodities. Its Sunflower Hybrid Seeds performed better then the best in the National Trials Conduct by the Indian Council of Agricultural Research. This is a result of a commitment to plant breeding, farm technology, quality seed production and an extensive rural marketing network.

CIGARETTES
ITC owns the brand leadership in every segment The Company has launched several new brands such as Capstan Menthol, Filter, Capstan standard, Gold Flake Kings, and Berkley Filter. Gold Flake Premium Filter has since been rolled out of market and Gold Flake Light King size has been introduced ITCs strong brand portfolio has is demonstrated by the fact that scissors is the brand leader in volume, Wills remain as the largest free standing consumer product in India and Wills Gold Flake family has grown to be come the largest single trademark in the consumer product. ITCs factories at Calcutta, Saharanpur, Bangalore and Munger have the 9002-quality accreditation The Company has signed an agreement with the British American Tobacco Company Limited (BAT) of which it is already an associate. As per this agreement ITC Ltd. launched BATs global brand such as State Express 555 and Benson and Hedges.

1 4

EDIBLE OILS
In the edible oil business, the ITC agri business division and its associates ITC agro Tech Ltd. have set up one of the Indias largest state-of-art interested in oilseeds Complex in Andhra Pradesh. ITC brand like Sun drop, Crystal and Real Gold have established them in the refined edible oil market. Infect Sundrop is the largest selling brand of the Sunflower oil in the country. ITC has also begun promoting the development of palm oil.

PACKING AND PRINTING

It develop pack designs on 24-hours turnaround basis International Liquor brands and other fast moving consumer products manufactures are today some of the users of the company packing products. Through a strategy of being market leader and technology driven the ITC group has achieved market leadership and in the largest integrated source of paper and paperboard products. ITCs printing and packaging division has a technical collaboration with Liquid Box Corporation USA, to manufacture and market bag-in box system in India.

SPECIALITY PAPERS
In 1979, ITC entered the papers industry with ITC Bhadrachalam paperboards. Through the application of clonally technology and scientific plantation management, it has revolutionized land productivity. Today it offers the widest variety of papers and paperboard manufactured by the single group in India. Tribeni Tissues, which

1 5

amalgamated, with the ITC group has emerged as the leader in custom specific specialty paper for cheques and passports and for the packaging, printing, insulation decorative laminate and communication industries.

FINANCIAL SERVICES
ITC financial services were inaugurated in 1986. It diversified in to Asset Financing and capital market operations through its associates ITC Classic Finance Ltd. Classic has also ventured into Merchant and investment banking, capital market intermediation, International advisory services and public deposit mobilization. Classic Today is one of the best capitalized Financial services Companies.

SPECIALTY PAPER
ITC operates a 33000 TPA plant at Tribeni, West Bengal, to manufacturing specialty papers, mainly with the imported wood pulp cigarette packing paper to BAT subsidy in Africa and Central Asia. Margins in the business have been adversely affected with stiff price competition from domestic as well as imported products post reduction in import duty. ITC has been scouting for an international joint venture partner for upgrading technology in this business. The division received certification under ISO9001 quality standards and Gold Star awards From Royal Society for Prevention of accidents, UK .The specialty. Besides captive consumption, ITC also exports paper division contributed to Rs.1bn. to the total revenues during FY00 compared to 880.5mn

1 6

in FY99. The company produced 16355 tons of specialty paper during the year. International business division, which is involved in handling exports from the company, did exports of Rs.3.2 billion during FY00.The division exports agri.products to various countries across the globe.Recently the division has decided to set up e-choupals for Shrimps and coffee. These e-choupals would provide up-to -date information grading local and global weather and scientific practice followed at different place to farmers. The division has plans of setting up 300 such choupals across the country current year ITC also has an InfoTech division, which is being realigned to focus on e-commerce software solutions.The company plans to hive off its InfoTech division in to a separate subsidiary.

NEW ENTERENCE
The company has decided to venture in to a number of new and unrelated areas. ITC has recently launched its leisure apparels under Wills sports brand to leverage on its Wills brand equity. The company had also ventured into Branded Holidays business, which is being reviewed as performance has been below expectations.

1 7

EARNING FACTORS
Excise duty changes on cigarettes. New product launches are as: Rothmans International brand portfolio may be launched through ITC, as Rothmans has withdrawn proposal for 100% subsidiary post global merge with BAT. Leaf & tobacco crop depends on weather conditions which results its impact on material costs. Export markets reduce dependence on domestic market. Exports are also affected by the domestic crop production. Paper/paperboard margins depend on International paper & wood pulp Prices as well as charges in custom duty rates. Excise duty exemption in northeastern states And also one of the largest Non banking financial services.

1 8

ITC STRUCTURE
As stated earlier, ITC is a well-diversified company with the interests in various businesses. To facilitate efficient running of the business, the company has spit up in to several division, which enjoys great deal of functional autonomy. Divisional Board or the Divisional Executive Committee depending up on its size heads each division. Although management is vested in the Board of Directors consisting of the both Executives and non-executive directors, most of the authorities and responsibilities have been delegated to committee of directors which comprises of executive directors only. All of the Divisional boards and divisional executive Committees report to Committee of directors. The various divisions with their head quarters are as follows:

NAME
1- Corporation Headquarters (CHQ) 2- Indian Leaf Tobacco Development Division (ILTD) 3- Indian Tobacco Division (ITD) 4- Packaging and Printing Division (PPD) 5-ITC Bhadrachalam Paper Board Ltd.

PLACE
Calcutta Guntur Calcutta Tiruvottiyur Secundrabad

1 9

6- Trebeni Tissue Division 7- Hotels Division (HD) 8- Export Division (ED) 9- Agri-business Division (ABD) 10- International Business Division (IBD) 11- Information Systems Functions (IFS) 12- Integrated Research Center (IRC) 13- International Travel House (ITH)

Calcutta New Delhi New Delhi Hyderabad Mumbai Calcutta Bangalore Calcutta

Divisions are further broken up into component unit and branches such as etc., for example- the hotel division holds around Marketing branches, Cigarettes factories, and Hotel properties 17 hotels under the name of Welcome Group.

2 0

PRODUCTION BRANCHES
The production branches better known as cigarette factories are situated in four factories, viz. I. II. III. IV. Calcutta Bangalore Saharanpur Munger (Bihar)

Following are the subsidiaries fall under ITD: 1. Surya tobacco company 2. All India tobacco company limited 3. lan enterprises Ltd. 4. Fortune tobacco company 5. ITC filtrona Ltd. Marketing overview: ITC has got 17 trade marketing branches in the following regions:

NORTH:
1. 2. 3. New Delhi Saharanpur Jammu 4. Lucknow 5. Jaipur

2 1

SOUTH:
1. 2. 3. Bangalore (H.Q.) Coimbatore Ernakulam 4. Secundrabad. 5. Madras

EAST:
1. 2. Calcutta (H.Q.) Vishakapatnam 3. Guwahati 4. Patna

WEST:
1. 2. Mumbai (H.Q.) Ahemadabad 3. Bhopal 4. Nagpur

Apart of the above, a major constituent of ITD is tobacco technology Centre, situated at Bangalore.

2 2

THE STORY OF ITC SAHARANPUR

ITC Saharanpur was born out of a planned inroad and a fortuitous meeting, which was to unleash the beginning of the dream by 1924 the Peninsular Tobacco Company had manufacturing unit at Munger and Bangalore and was now combing the northern region to locate its third one. Saharanpur seemed the ideal choice due its location advantage being on the main railway lines connecting Calcutta as well as Bombay with west Punjab right up to Peshawar. As the story goes R.G Baker, one of the stalwarts of the company, visited Saharanpur in search of suitable land to locate the factory. The visit had almost proved to be an exercise in futility and Mr. Backer was standing at the railway station ready to leave. Just then BABU SHIV DAYAL SHARMA walked up to him with an invitation to inspect the land bounded on the west by the canal and to the north by Sardar Patel marg. The site as approved and the initial lease were signed on the 7th July 1925. Thus began an era of challenge and transition. J.P.HILL became the first factory manager and initiated operations with a labor force of 26 men (at 8 annals a day), a technology of fine rose watering can for conditioning, 2 lakhs cutting machine,1 dryer,1 cooler,3 standard making machines(making 500 cigarettes a minute),3 rose cracknel packing machines and with an engineering department out in the open under the mango tree trees opposite the site of the pp school. Production in the first month was 5.9 million and touched 23 million by the end of year.

2 3

The decade of the thirties witnessed the series of unprecedented events. These ranged from a three-year closure in 1934 owing to depressed trading condition and the Swadeshi and Boycott Movement to a devastating earthquake in the same year. The factory in Munger was severally hit, so opening of the Saharnpur unit compensated the loss of production. In 1932 the first Moline M2 packer arrived. Another landmark event in the annals of time was the foundation of the Cigarette Workers Union in 1938 with the help of J.B. Miller and Pandit Kamalnath. The registration of the union took place in March 1939. 30th Dec. 1953 was an important milestone in securing sound working relations between workers and management. This day marked the signing of the First Long Term Agreement. The post-war years heralded an era of modernization end experimentation for ITC Saharanpur. Two new Lauhoff Stem Rolling Machines, Two MRTC Machines and the first format or Threshing and Classifying plant made their entry. 1954 signified the arrival of the Forklift, which revolutionized the method of work in the go downs. By the end of sixties wooden cases had gradually given way to CFCs (corrugated fiber containers). In 1968 MK8 makers arrived along with PA7RO Filter Attachment. The factory was running in three smooth shifts and production had soared up to 924 million. It was at this juncture that Ted Ramble retired after the longest single tenure as branch manager. In 1970 the Imperial Tobacco Company changed its name to India Tobacco Company Ltd. Workers welfare activities saw an acceleration with

2 4

the launch of workers Welfare Scheme. Also a greater emphasis was now been laid on the creation of a culture of continuous learning. In 1983 Computer Center was set up in the unit by which time the payroll, Financial Accounting and Inventory system had been computerized. In 1984 and Integrated Factory Information System was developed in Bangalore and passed on other units. The technical training center was established in 1986 to provide technical training and know how to workers and managers alike. In 1988 LTA was the landmark event. It made provision for the computerization of work processes for clericals in the factory and also for secondarization, which involved the physical merger of the packing and making departments, which till now has been in relative isolation of each other. The Duplex Packer was introduced in 1989 and was readily received and adopted too. Simultaneously high quality requirements and subsequently growing competition had become realities of the day. The introduction of high speed LOGA Machine in 1993 was an example of the first post-liberalization attempt to upgrade the existing state to tune with these demands. Anticipating substantial growth in the market share a massive modernization and up gradation project was launched in Saharanpur involving an overhauling of infrastructure and service to cater to a truly world class factory. In June 1994 the political fortunes in the state of U.P. turned and a High Luxury Tax was imposed on all br4ands of cigarettes costing Rs. 5 or more per packet. This hampered operations in the factory and the manufacture of cigarettes (except for exports) was stalled.

2 5

In 1955 ITC, Saharnpur had the rate distinction of winning the British Safety Councils National Award for the third year in succession for a low accident rate. Fortunately the Luxury Tax too was lifted in October 1995 through an ordinance of Governor and normal production was resumed. It had been a long struggle with the entire unit displaying remarkable fortitude. Despite all limitation even during this crisis Saharanpur was the largest manufacturer of the Bingo Cigarettes like Scissors Std., Capstan Std., Berkeley Std., Bristol and Hero and the exports like Huston and Midland (to USA) and Classic (to Russia). In 1996 a Long Term Agreement between the management and the union is another instance of continuous process in the history of ITC, Saharanpur. The agreement provides the flexibility in work norms, practices and manning ensuring world-class level of performance and productivity. ITC Saharanpur was born out of a planned inroad and a fortuitous meeting, which was to unleash the beginning of the dream. By 1924 the Peninsular Tobacco Company had manufacturing unit at Munger and Bangalore and was now combing the northern region to locate its third one. Saharanpur seemed the ideal choice due its location advantage being on the main railway lines connecting Calcutta as well as Bombay with west Punjab right up to Peshawar. As the story goes R.G Baker, one of the stalwarts of the company, visited Saharanpur in search of suitable land to locate the factory. The visit had almost proved to be an exercise in futility and Mr. Backer was standing at the railway station ready to leave. Just then BABU SHIV DAYAL SHARMA walked up to him with an invitation to inspect the land bounded on the west by the canal and

2 6

to the north by Sardar Patel marg. The site as approved and the initial lease were signed on the 7th July 1925. Thus began an era of challenge and transition. J.P.HILL became the first factory manager and initiated operations with a labor force of 26 men (at 8 annals a day), a technology of fine rose watering can for conditioning, 2 lakhs cutting machine,1 dryer,1 cooler,3 standard making machines(making 500 cigarettes a minute),3 rose cracknel packing machines and with an engineering department out in the open under the mango tree trees opposite the site of the pp school. Production in the first month was 5.9 million and touched 23 million by the end of year. The decade of the thirties witnessed the series of unprecedented events. These ranged from a three-year closure in 1934 owing to depressed trading condition and the Swadeshi and Boycott Movement to a devastating earthquake in the same year. The factory in Munger was severally hit, so opening of the Saharnpur unit compensated the loss of production. In 1932 the first Moline M2 packer arrived. Another landmark event in the annals of time was the foundation of the Cigarette Workers Union in 1938 with the help of J.B. Miller and Pandit Kamalnath. The registration of the union took place in March 1939. 30th Dec. 1953 was an important milestone in securing sound working relations between workers and management. This day marked the signing of the First Long Term Agreement. The post-war years heralded an era of modernization end experimentation for ITC Saharanpur. Two new Lauhoff Stem Rolling Machines, Two MRTC Machines and the first format or Threshing and Classifying plant made their entry. 1954 signified the arrival of the Forklift, which revolutionized the method of work in the go downs. By the

2 7

end of sixties wooden cases had gradually given way to CFCs (corrugated fiber containers). In 1968 MK8 makers arrived along with PA7RO Filter Attachment. The factory was running in three smooth shifts and production had soared up to 924 million. It was at this juncture that Ted Ramble retired after the longest single tenure as branch manager. In 1970 the Imperial Tobacco Company changed its name to India Tobacco Company Ltd. Workers welfare activities saw an acceleration with the launch of workers Welfare Scheme. Also a greater emphasis was now been laid on the creation of a culture of continuous learning. In 1983 Computer Center was set up in the unit by which time the payroll, Financial Accounting and Inventory system had been computerized. In 1984 and Integrated Factory Information System was developed in Bangalore and passed on other units. The technical training center was established in 1986 to provide technical training and know how to workers and managers alike. In 1988 LTA was the landmark event. It made provision for the computerization of work processes for clericals in the factory and also for standardization, which involved the physical merger of the packing and making departments, which till now has been in relative isolation of each other. The Duplex Packer was introduced in 1989 and was readily received and adopted too. Simultaneously high quality requirements and subsequently growing competition had become realities of the day. The introduction of high speed LOGA Machine in 1993 was an example of the first post-liberalization attempt to upgrade the existing state to tune with these demands.

2 8

Anticipating substantial growth in the market share a massive modernization and up gradation project was launched in Saharanpur involving an overhauling of infrastructure and service to cater to a truly world class factory. In June 1994 the political fortunes in the state of U.P. turned and a High Luxury Tax was imposed on all br4ands of cigarettes costing Rs. 5 or more per packet. This hampered operations in the factory and the manufacture of cigarettes (except for exports) was stalled. In 1955 ITC, Saharanpur had the rate distinction of winning the British Safety Councils National Award for the third year in succession for a low accident rate. Fortunately the Luxury Tax too was lifted in October 1995 through an ordinance of Governor and normal production was resumed. It had been a long struggle with the entire unit displaying remarkable fortitude. Despite all limitation even during this crisis Saharanpur was the largest manufacturer of the Bingo Cigarettes like Scissors Std., Capstan Std., Berkeley Std., Bristol and Hero and the exports like Huston and Midland (to USA) and Classic (to Russia). In 1996 a Long Term Agreement between the management and the union is another instance of continuous process in the history of ITC, Saharanpur. The agreement provides the flexibility in work norms, practices and manning ensuring world-class level of performance and productivity.

2 9

HISTORY OF SAHARANPUR

1925 : Cigarette manufacturing unit established. 1926 : Manufacturing of cigarette began & brands were Red Bird, Duck & Peacock. 1935 : Packing Machines established. 1938 : Created cigarette workers union with the help of J.B.Miller & Pt. Kamalnath. 1940 : First major strike came in practice. 1942 : The post of Labour Welfare Officer created. 1953 : First long term agreement marked signing. 1970 : Company got its name Indian Tobacco Company (ITC)

3 0

1983 : The computer center was set up in ITC SAHARANPUR unit. 1984 : An Integrated Factory Information System was developed at Bangalore. 1986 : The Technological training center was established. 1994 : High & Luxury tax was imposed on all branches of cigarettes 1995 : Saharanpur unit bagged British Safety Council National Award for its low rate of accident.

3 1

ITC FAMILY
ITC PAPERBOARD LIMITED
Indias largest manufacture of paper & paperboard. It also a Indias largest exporter of paper & paperboard industry.

ITC CLASSIC FINANCE LIMITED

It is Rs. 315Cr company which is established to offer preferred financial services & products.

ITC AGRO-TECH LIMITED

Business processes edible oil & also moving towards consolidatig other aspects of edible oil procurement, marketing & trading.

ITC FILTRONA LIMITED

A joint venture with filtrona international limited. UK is making available in India the latest Cigarette filter technology including technology advance multiple filters.

3 2

ITC ZENECA LIMITED

A unique partnership of two major players in agro-business, ITC with ZENECA limited UK. It develops high quality seeds for the Indian agriculture sector.

INTERNATIONAL TRAVEL HOUSE LIMITED

One of the Indias leading travel & tour agency offering services for business & leisure travelers throughout India, in the business of rent a car under the Eurocar brand& in the process of setting of golf resets of International standards.

SURYA TOBACCO COMPANY LIMITED

ITCs joint venture project in Nepal is the companys largest private sector corporation with brands leader in every segment. ITC has achieved the Super star trading house status. It contributes over 4% of the revenue, provides 9% of the Indian agri-export & about 2% of the companys total export centers total tax.

INDIAN TOBACCO DIVISION

It is Indias largest manufacture & exporter of cigarette. It has the market share of 67% of the total cigarette market in India.

3 3

INDIAN LEAF TOBACCO DEVELOPMENT DIVISION

Its the largest producer & exporter of tobacco in India.

ITC HOTELS LIMITED

A premier hotel chain catering to the International travelers. Its the market & operates 16 leading hotel properties under the Welcome group banner. It has the collaboration with ITC Sheraton USA for the International marketing of the ITC hotels.

3 4

SWOT ANALYSIS OF THE ORGANIZATION

SWOT analysis is basically used as important technique through which a company can know its positive features and can overcome its negative aspects. Therefore SWOT analysis an important role to formulate the business strategies for any company, which are based on its strength, weakness, opportunity and threats. The SWOT analysis of its Ltd. can be done as under: -

STRENGTHS 1. The company product is a quality product. 2. Best pricing policy. 3. Good packing 4. Dedicated sales force

WEAKNESSES 1. The company has a small product profile. 2. The distribution network is very weak ITC biscuits are not available at every shop. 3. It has less number of distributors as compared to its competitors. 4. It has poor distribution infrastructure. 5. Lack of frequent and regular trade schemes.

3 5

OPPORTUNITIES 1. The ITC should target the rural market also. 2. The new product can create a wide area of market. 3. A good distribution network can given tough competition to its competitors.

THREATS 1. The aggressive nature of the competitors is the main threat to the company. 2. The distribution network of its competitors is very strong. 3. Its competitors have more number of distributors. 4. The indirect reach of the company is too weak. 5. High tax rate. 6. Government policies.

3 6

B IT N IA R AN

3 7

Britannia is the market leader in the organized biscuit and bakery product market in India. Biscuits contribute to more then 80% of Britannia's total turnover. Other products include bread and cakes. Britannia diversified into dairy products in 1997 with processed cheese and dairy whitener. The portfolio was expanded with the launch of butter, pure, flavoured milk in tetra packs and UHT milk.

History Of Company 1918 The Company was incorporated on 21stMarch, as a public limited company under the Indian Companies Act, VII of 1913. The Company Manufacture bakery and soybean products, export of cashew Kernels marine products, general merchandise items and computer software. 1921 The Company obtained a priority of Certificate and imported new machinery thereby becoming the first biscuit company in India to install and run a gas oven plant.

1924 A new factory was established at Kasara pier Road in Mumbai. In the same year the Company became a subsidiary of Peek, Frean & Co. Ltd. U.K. a leading

3 8

biscuit manufacturing company, and further strengthened its position by expanding the factories at Calcutta and Mumbai . 1939-45 A Large part of the Company's production was diverted to war effort on account of World War II and at times as much as 95% of the total capacity was booked for the production of "Service Biscuit" 1952 The Calcutta Factory was shifted from Dum Dum to spacious grounds at Taratola Road in the suburbs of Calcutta. During the same year automatic plants were installed there and later in Mumbai in 1954. 1954 The development of high quality sliced and wrapped bread in India was pioneered by the Company and was first manufactured at Delhi. 1961 Manufacture of bread was started in Mumbai and a new bread bakery was set up at Delhi in 1965.

1976 Britannia bread was introduced in Calcutta and Chennai.

3 9

1978 After the issue of shares to the Indian public, the non resident holding in the Company was reduced to less than 40%. 1979 With effect from 3rd October, the name of the company was changed from the Britannia biscuits Co., Ltd., to Britannia Industries Ltd. 1980 The company signed 10 years technical collaboration agreement with Nebico Pvt. Ltd. Nepal, for the supply of know-how relating to manufacturing packaging and marketing of biscuits and selection of plant and machinery. 1989 The Company launched new brand of biscuit, namely, 'CIRCUT'. Another brand "PURE MAGIC" was extended nationally and posta badam was added to "GOOD DAY" ranged of biscuits Bread production and affected for some time at Delhi factory do to industrial unrest.

1991

4 0

The Company launched two new speciality brands viz. Britannia milk bread and Britannia brown bread in Delhi and extended nationally its main brands petit Burro and elaichi cream. On 17th August the Company handed over to SM Dychem Ltd, its soya unit at Vidisha, MP. The Company proposed to invest in the equity capital of Britco Company Pvt. Ltd. a joint venture with JMRPCO Ltd., Hong Kong, for manufacture of beverage bases and essence for Coca Cola, Fanta & Sprite and to export processed snack foods.

Competitive position The entry of new MNC's have not posed a direct thereat to Britannia as these MNC's have positioned their brands in the premium/health segment. Britannia has maintained market leadership with a 40%volume share and 48% value market share in the organized sector. FMCG major HLL is expected to venture into the segment Britannia has been aggressive in new launches and marketing during the last 2years anticipating the competition. It has also recently acquired Quality Biscuits gaining a strong foothold in the southern market. Operating margins have been improving despite the fast pace of new product launches in the last 2-3 years. Rationalization of manufacture operating and greater contribution of higher margin diary products have both contribute to the margin gains. Britannia has decided to hive off its diary business into a joint venture with the New Zealand based Fonterra Cooperative Britannia and

4 1

Fonterra will each hold 49% of the Rs 2.25 bn. equity while the balance 2% will be held by business associates. Products of Britannia Good day Britannia 50-50 Hide and Seek Cream Treat Marrie Gold` These are some popular brands of Britannia biscuits and there are other various brands Britannia biscuits.

4 2

P IY G L R A OD
The wondrous magical journey of the company Surya Food &Agro Ltd began in Oct. 1993& since then we have been one of the leading manufacturers of biscuits in northern India, their brand "PRIYAGOLD'' has been a perennial favorite since then. On a profound level the inevitable cycle of distribution network has helped us to chart our way in western party of India as well. It is our obsession to make the finest quality biscuits available to the consumer &it has been our constant endeavor to give our consumer a palate to look forward to a taste &flavor that is uniquely "PRIYAGOLD''. We have operated in the new age sharply ruled by the dizzying pace of technology, poised to catch emerging trends thus improving quality standards, where fully automated ovens bake the biscuits round the clock and they find there way into automatic packing units at the company's plant in Surajpur, Greater Noida (U.P.) to cater to the ever growing demand of "PRIYAGOLD" biscuits. This thinking is reflected in what our brand stands for "Haq Se Maango" a positioning that was formulated to drive home the fact that everyone has the right to good taste &the right to ask for it. We feel that the means to finding he future lies not just in believing about tomorrow but in ourselves. What can never be destroyed like the eternal forces of nature is our trust & confidence in ourselves. Thus empowered we have ensured that "PRIYA GOLD" always strives hard to satisfy our esteemed consumers. This compile flaunts the most cherished products that we have in our "PRIYA GOLD" portfolio. Towards your good health, our efforts. Cherish it with us.

4 3

Company believes that quality is of supreme importance, to the consumer. Precisely why we never compromise on quality, Temperature, Light and Humidity play a vital role in baking all this is under control at our plant, the worlds only biscuit plant which is 100% CFC free climate controlled. Hygiene standards for us cannot be compromised so the entire plant is completely dust proof. "Our commitment to our consumer is reflected in our commitment to the quality of our product"

Products Butter Bite Cream Biscuits Crackjack

4 4

Distribution Channel of Priya Gold

Company

C& F

Distributor

Salesman

Retailer

Customer

4 5

P RE AL
INTRODUCTION A long time ago, when the British ruled India, a small factory was set up in the suburbs of Mumbai City, to manufacture sweets and toffees. The year was 1929 and the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called Parle Products, survived and succeeded, by adhering to high quality and improvising from time to time. A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality. Did you know, how Parle fought to make biscuits affordable, despite World War II. How Parle fought to make biscuits affordable to all. Biscuits were very much a luxury food in India, when Parle began production in 1939. Apart from Glucose and Monaco biscuits. Parle did offer a wide variety of brands. However, during the Second World War, all domestic biscuit production was diverted to assist the Indian soldiers in India and the Far East. Apart from this, the shortage of wheat in these days, made Parle decide to concentrate on the more popular brands, so that people could enjoy the price benefits. Thankfully today, there's no dearth of gradients and the demand for more premium brands is on the rise. That's why, we now have a wide range of biscuits and mouthwatering confectionaries to offer. The strength of the Parle

4 6

Brand was over the years. Parle has grown to become a multi-million US Dollar company. Many of the Parle products biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde selection, since 1971. Today, Parle enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India. The Parle Biscuit brands, such as, Parle-G, Monaco and Krackjack and confectionery brands, such as, Melody, Poppins, Mangobite and Kismi, enjoy a strong imagery and appeal amongst consumers. Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! And yet, we know that this reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek, or the single twist wrapping of Mango bite. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength.

The Quality Commitment: Parle Products has one factory at Mumbai that manufactures biscuits & confectioneries while another factory at Bahadurgarh, in Haryana manufactures biscuits Apart from this, Parle has manufacturing facilities at Neemrana, in Rajasthan and at Bangalore in Karnataka. The factories at Bahadurgarh and Neemrana are the largest such manufacturing facilities in India. Parle Products also has 14 manufacturing units for biscuits & 5 manufacturing units for confectioneries, on contract. All these factories are located at strategic location, so as to ensure a constant output & easy distribution. Each factory has state-ofthe-art machinery with automatic printing & packaging facilities. All Parle

4 7

products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials, packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. Every batch of biscuits & confectioneries are thoroughly cheeked by expert staff, using the most modern equipment. The Marketing Strength: The extensive distribution network, built over the years. is a major strength for Parle Products. Parle biscuit & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, entering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network. The parle marketing philosophy emphasizes catering to the masses. We constantly endeavour at designing products that provide nutrition &fun to the common man. Most Parle offerings are in the low & mid-range price segments. This based on our cultivated understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers, and in this way, caters a range of products to a variety of consumers. The Customer Confidence The Parle name conjures up fond memories across the length and breadth of the country. After all, since 1929, the people of India have been growing up Prale bicuits & sweets. Today, the Parle brands have found their

4 8

way into the hearts and homes of people all over India & abroad. Parle biscuits and confectioneries continue to spread happiness & joy among people of all ages. The consumer is the focus of all activities as Parle. Maximizing value to consumers and forging enduring customer relationships are the core endeavors Parle. Our efforts are driven towards maximizing customer satisfaction and this is in "Parle Products Limited will strive to provide consistently nutritious & quality food products to meet consumers' satisfaction by using quality materials and by adopting appropriate processes. To facilitate the above we will strive to continuously train our employees and to provide them an open and participative environment. " Products Parle G 1. Kracjack 2. Monaco 3. Moria Choice 4. Hide & Seek 5. Fun Center 6. Cheese lings 7. Jeffs 8. Sixer

4 9

Distribution Channel of Parle

Company

Distributor

Salesman

Retailer

Customer

5 0

A M LB K R L D N O A ES T.
Anmol biscuits were introduced in Kolkatta in 1994 by Shri Baij Nath Choudhary A dynamic businessman, who has more than 20 year's experience in biscuit manufacturing. He has never missed an opportunity to expand ever since he introduced the Anmol brand with the result that Anmol has a capacity of 500ft X4ft oven installed at Vill. Maitypara P.O. Dankuni, Hooghly in West Bengal. Anmol Biscuits (P) Ltd. has its head office at 229 A.J.C. Bose Road, 6th floor, Crescent Tower, Kolkatta. Anmol biscuits become a grand success in eastern part of the country on the sheer strength of its quality and technical superiority. Anmol group has diversified interest also as they have Anmol spices in Kolkatta, Coconut oil refinery and cement grinding plant in west Bengal. Shri Chaudhary is joined by his 4 sons in entire business venture. Spurred by the success of Anmol biscuits, Shri Baijnath Choudhary put up a state of the art biscuit manufacturing unit at 38- A Udyog Vihar. Greater Noida (U.P.), which is 272X4ft in size and Mr. Gobind Ram Chaudhary. One of the 4 sons Shri Bajinath Chaudhary. Anmol Bakers Ltd Has already introduced 17 sweet and salted biscuit varieties and has launched the product in 5 states of North India, which is ever growing and very potential market for biscuits. Anmol Bakers Ltd. Super Stockists Re-Distribution Consignee Agents Stock

Retail Outlets

Consumer

5 1

Distribution Channel of Anmol

Anmol Bakers Limited has 3 tier strong system of distribution. The company has appointed 19 super stockists / consignee agents in the states of Uttar Pradesh, Uttaranchal, Delhi, Haryana, Punjab & Rajasthan. Goods are dispatched from the factory located at Greater Noida to various super stockists and consignee agents who in turn dispatch the material further to re-distribution stockist spread in towns & tehsils of above states. The re-distribution stockists distribute the material to various outlets in their area from where these products reach the ultimate consumer. The company is determined to enhance and strengthen its already very strong distribution network of more than 450 redistribution stockists.

5 2

SUNFEAST An Overview
ITC made its entry into the branded biscuits market on 28th July 2003 with the launch of the "Sunfeast" range of Biscuits in Kolkata and Hyderabad. The initial range of offerings in the 'Glucose', 'Marie' and 'Cream' segments provides both basic and value added options to the consumer. In keeping with its commitment to delight the consumer, ITC's Foods business has introduced two product innovations in its initial range of offerings. 'Orange Marie' and 'Butterscotch Cream' have been introduced for the first time in the Indian market after months of research and extensive sampling across approximately 14,000 consumers. The 'Sunfeast' range will be launched nationally in phases in over one million retail outlets in the country. "Sunfeast" - the umbrella brand name introduced in the Glucose, Marie and Cream segments "Sun" mascot - the brand ambassador reinforcing the positioning of the brand "Spread the Smile" Product Innovation - two unique and new flavours - for the first time in the India market- Orange Marie and Butterscotch Cream biscuit "Sunfeast" - to be launched nationally in phases in over One million retail outlets across the country. Kolkata - July 30, 2003: ITC's Foods business today announced the launch of the "Sunfeast" range of high quality and great tasting biscuits with offerings in Glucose, Marie and Cream segments. Speaking on the occasion, Mr. Ravi Naware, Divisional Chief Executive, ITC Limited - Foods Division said, "the launch of "Sunfeast", marks ITC Foods entry

5 3

into the branded biscuit market with a range of offerings in both basic and value added segments." "Sunfeast", with the Brand Essence "Spread the Smile" connotes happiness, contentment, satisfaction and pleasure one would derive from great tasting and high quality biscuits. The brand positioning and imagery is reinforced by the Sun mascot conveying the emotional and gratifying aspects of the product. "The latest offering from ITC Foods is in tune with the company's strategic direction to develop new product lines by synergising its proven competencies. We believe that our understanding of the Indian consumer is reflected in the increasing confidence in the "ITC" brand and more importantly the trust that Indian consumers are reposing in all our products" added Mr. Naware. "Sunfeast" range of biscuits is competitively priced and would include two new product innovations - Orange flavored Marie and Butterscotch flavored Cream biscuits launched for the first time in the Indian market. "Sunfeast Biscuits" - Initial Offerings Sunfeast Glucose Biscuits deliver the Natural Goodness of Wheat and is available in 100gms, 75gms and 19gms priced at Rs4/-, Rs3/- and Re 1/respectively targeting children between the age group 4-14 years and their mothers. Sunfeast Orange Marie - a very differential offering is available in 200gms, priced at Rs13/- and "Sunfeast Marie Light" - Light & Crispy, available in 200gms and 400gms, priced at Rs13/- and Rs19/respectively targeting housewives and families.

5 4

Sunfeast Orange Cream, Sunfeast Butterscotch Cream & Sunfeast Bourbon Cream - Smooth & Yummy Cream Biscuits, available in 100gms, priced at Rs10/-, Rs10/- and Rs12/- respectively targeting children between the age group 4-14 years. ITC Limited - Foods Division, being in the forefront of product innovation has introduced two new flavours Orange Marie and Butterscotch Cream Biscuits after 12 months of product research and development and extensive sampling across 14,000 consumers across all POP first time in the Indian market. the entire range of "Sunfeast Biscuits" will be packed in vibrant colours, distinctive graphics and fonts identifying sub categories - at the same time maintaining a consistent look of the umbrella brand "Sunfeast".

5 5

PROLECT PLAN IN TERMS OF FIELD STUDY OF THE PROJECT

The entire project activity was divided into weekly milestone to ensure the following:

5 6

 Complete framework of the project Completion of the project on time To be economize on time To make continuity of the project Timely completion of the weekly schedules

WEEK- 1
Visiting the marketing branch of ITC. Meeting the project guide to make a scheduled plan for the coming week. Visiting WD(wholesale dealer) point of ITC to know their working process.

WEEK-2
Making a general survey of the market (wholesaler, retailer& customer) to find out the top selling brands with in which the study has to be done.

5 7

 Five brands came in picture which are most operating brands in the market along with two brands which operates only in some areas of Saharanpur.

WEEK-3
Designing a questionnaire to get information regarding the top selling brand out of the chosen five brands. Divided Saharanpur in four zones to cover one area in one week.

WEEK- 4
Interviewed retailers, wholesalers & consumers in first zones which covers the following areas- Avas vikas, Court Nagar, Janakpuri. road, Mission compound, Hakikat nagar, Naveen nagar, Tarawati road, Chander

WEEK-5
Interviewed retailers, consumers & wholesalers in second zone which covers the following areas- Sharda nagar, Patel nagar, Gurudwara road,& Ambala road, Khalasi line, Govind nagar.

5 8

WEEK-6
Interviewed retailers, consumers & wholesalers in third zone which covers the following areas- Numaish Camp, Madho Nagar,Behatadda, Matia mahal, Bhagat singh chowk, Raiwala, Chilkana road.

WEEK-7
Interviewed retailers, consumers & wholesalers in fourth zone which covers the following areas- Nakhasa Bazar, Rani Bazar, Naya bazaar, More Ganj, Sahid Ganj, Kakkar Ganj.

WEEK-8
Analysis & interpretations Suggestions & Recommendations.

5 9

INTRODUCTION OF RESEARCH
This chapter focuses on the methodology and the techniques used for the collection, classification and tabulation of data. It sheds light on the research problem the objective of the study its limitations and the hypothesis that have evolved for the study. The later part of the chapter explains the manner in which the data is collected, classified, tabulated and analyzed so asto reach to conclusive results.

6 0

Research Methodology has many dimension, it includes not only the research methods but also considers the logic behind the methods used in the context of the study and explains why only a particular method or technique has been used so that search lend themselves to proper evaluation. Thus in a way it is a written game-plan for concluding research. Therefore in to design a research problem it is necessary to design a research methodology for the problem as the same may differ from problem to problem.

OBJECTIVES & SCOPE OF THE STUDY

On the basis of my study objectives and scope of the study is as follows : ? To study the brand preferences for different Biscuits. ? To find the extent of brand loyalty that exists among different Biscuit brands. ? To study the influence of various aspects on buying behaviour and to conduct a comparative analysis across different respondents. ? To estimate the Biscuit industry in Saharanpur Area.

6 1

? To bifurcate the Biscuit Industry on the basis of their success factors. ? Understanding of the distribution system at different WD points. ? Collection of date regarding industry figured key players, availabilities schemes etc. by carrying out a detail market survey. ? Collection of data and representing them graphically. ? To analyse the data collected the according to it cater some recommendations. ? To suggest the distribution system for ITC and to point out the strong points of it . ? To point out the Trade Increasing schemes.

Research Description
HYPOTHECATION OF THE STUDY
Hypothesis is considered as the principal instrument in research. It enables to make probability statement about population parameters. The study will be conducted under the broad framework of the following Hypothecation. 1. Buyer's (customers) give equal importance to different factors while deciding about the purchase of biscuits.

6 2

2. 3. 4. 5.

Buyers consider price. Different media knowledge and in influencing the buyer. Friends generally influence the idea of having biscuits. Children at home are a major factor in deciding a particular brand of biscuit.

SCOPE OF STUDY :
The scope of study has been limited to sample size of 140 Retailers due to the time and the cost constraints. However, the scope of the study with respect to geographical area is restricted to the city of Saharanpur.

NATURE OF STUDY :
It is an exploratory research and the basic aim of exploratory research is to gain familiarity with the phenomena or to achieve new insights into it. So the study has tried to find out the psychograph of the consumer and to find, who have the maximum influence on the decision making of the consumers.

RESEARCH DESIGN
To study the consumer behaviour with respect to Brand Preference in Different Brands of Biscuit sample survey method has been chosen sample

6 3

survey method has been chosen because of its benefits over other methods. It allows direct contact with the customer and therefore customer psycho can be studied more efficiently. To collect data a number of techniques are employed under the sample survey method like questionnaire, observation and interview schedule. The increasing of questionnaire and schedule it probably due to increased emphasis by social scientists on quantitative measurements to uniformly accumulated data.

SELECTION OF SAMPLE
Social phenomenon being very vat, it becomes impossible to contact each and every individual of the population due to limitations of essential resources like time and money. Therefore, the study is preferable borrowed down to a representative sample to make the study more manageable. Keeping in view of the objectives and resource limitations of the study, samples of 140 retailers were considered. The selected sample is representative of the population and is accurate and practicable.

SAMPLING PLAN
The following factors have to be decided with in the scope of sampling plan. 1. SAMPLING UNIT

6 4

First step in developing any sample design as to clearly define the set of objectives technically called the universe to be studied. The universe can be finite or infinite. My universe was finite as I opted for specific city Saharanpur. 2. SAMPLE SIZE : This refers to the people surveyed although large samples are more reliable but due to shortage of time and money a small representative of 140 retailers were chosen. 3. SAMPLING PROCEDURE : This refers to procedure by which respondents should be chosen. In order to obtain a representative sample a probability sample of population was drawn. Probability sampling can be of following types: Simple Random Sampling Stratified Random Sampling Cluster (Area) Sampling In this case stratified random sampling was done since respondents were classified into well define classes or strata that were distinct from each other. 4. SAMPLE DESIGN : Because the primary sampling unit represented a cluster of unit based on geographic area of Saharanpur.

COLLECTION OF DATA

6 5

After the research problem has been defined and the research design has been chalked out, the task of data collection begins. The dara can be collected mainly through primary sources, but it was supplemented by secondary data. For the collection of primary data, the respondents were contacted personally and the research instrument used for gathering data was the questionnaire. To get further insight into the research problem, interview regarding their buying practices too was made. This was done to cross check the authenticity of the data provided. To supplement the primary data and to facilitate the process of drawing inferences secondary data was collected from published sources like magazines journals, newspapers etc.

FORMATION OF QUESTIONNAIRE
Quite often the questionnaire is considered as the heart of a survey operation. Hence it should be carefully constructed It is an investment that is widely used to collect various types of data and consists of long fists of questions designed to collected any information. It has personally been and that people are more frank in giving replies to a questionnaire than to an interview schedule. Though being less expensive, it has certain limitations like incomplete entries and incomplete responses. But the educational qualification of the respondents is an additional factor by which this technique the most relied upon. Formation of a good questionnaire involves intensive thinking and deliberation of the problem with predetermined objectives and aims properly placed in the questionnaires. In the words of Goode & Halt. "in general, the word questionnaire refers to a device for securing answers to questions by using

6 6

a form which the respondent fills in himself". All the logical, sequential order.

questions in a

questionnaire are framed with a specific objective in mind and all placed in a

ANALYSIS OF DATA
Data, after collection, has to be analysed in accordance will the outline laid for the purpose at the time of developing the research plan. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups Data presented in state appears unrecognized and complex. Statistical processors are used to read this complex data into some significant understandable form. The method of data analysis methods procedures for classifications, ending, tabulation an statistical analysis of raw data.

CLASSIFICATION OF DATA
It refers to the process of arranging data into homogeneous classes subsequent to the collection of data, the results were sorted out and arranged in different categories.

TABULATION OF DATA :
After classification and coding data is arranged in the form of tables also and fit chart being used. Tabulation is therefore, arrangement of data in columns and rows. After the research problems has been defined and the research design has been chalked out, the task of data collection begins. The data can be

6 7

collected from primary and secondary sources. The basic premises of my study are primary data but at the same time it is supplement with the secondary data. Random sample that was representative of the target market was chosen, the respondents were contacted personally and the research instrument used for gathering data was the questionnaire. To get further insight into the research problem interview regarding these buying practices too was made.

PROBLEM FORMULATION
ITC Ltd has to launch a new product biscuits under its fmcg range of products. For this purpose a lot of research was going on in many parts of north India. So Saharanpur area was given to me to do the research work.

6 8

This research is basically done to explore the biscuit market of Saharanpur. So, that the company can design its product according to the market & demand of the customers & consumers in the market. This study should entail many things like which are the major operating brands of biscuit in the market, who are the major companies operating in the market of Saharanpur, what are the distribution norms & practices & above all what are the various trade schemes on the product in the market of Saharanpur. The study should cover all important element of the market, which give useful information to ITC for the launch of its biscuit in the market of Saharanpur.

RESEARCH PROPOSAL
Following were interviewed in the course of the study to gather the information to fulfill the stated objectives: -

6 9

 Retailers (grocers, convenience stores, tea stalls & restaurants) Wholesalers Consumers & customers SAMPLE SIZE RETAILORS CONSUMERS : : 90 40 : : 10 05

WHOLESELEERS DISTRIBUTORS

7 0

ANALYSIS & INTERPRETATION

The data which is collected through the questionnaire is analyzed and interpretation is given on the basic of analysis. 1. AVERAGE QUANITY OF BISCUIT SOLD BY THE RETAILERS IN TERMS OF QUANTITY PER MONTH

COMPANIES PARLE PRIYAGOLD BRITANNIA ANMOL APSARA OTHERS

SALES IN PACKETS 2000 1800 1500 1000 800 400

7 1

AVERAGE SALES PER MONTH

2500

2000 SA LE S IN TE RM S 1500 OF PA CK S 1000

Series1

500

0 PARLE PRIYAGOLD BRITANNIA ANMOL APSARA OTHERS NAME OF THE COMPANIES

2. AVERAGE QUANITY OF BISCUIT SOLD BY THE DISTRIBUTORS IN TERMS OF RUPEES PER MONTH

COMPANIES PARLE PRIYAGOLD BRITANNIA ANMOL APSARA OTHERS

SALES IN RUPEES 1000000 900000 700000 500000 300000 200000

7 2

SALES BY DISTRIBUTORS IN RUPEES PER MONTH

1200000 SALE IN RUPEE 1000000 800000 600000 400000 200000 Priya Gold Britannia Apsara Others Anmol Parle 0 Series1

N M O CO P N A E F MA Y

7 3

3. MARKET SHARE OF THE BISCUIT COMPANIES ON THE BASES OF THE CONSUMER SURVEY
NAME OF THE COMPANY PARLE PRIYAGOLD BRITANNIA ANMOL APSARA OTHERS PERCENTAGE OF MARKET SHARE 30.22% 26.88% 22.40% 13.60% 5% 2%

PERCENTAGE OF MARKET SHARE PARLE PRIYAGOLD BRITANNIA ANMOL APSARA OTHERS

30.22% 26.88%

7 4

INTERPRETATION OF THE DATA

As the above data shows that biscuit company in the Saharanpur is a very competitive one. As far as the big operators are concern PARLE leads the market with each having 30.22% PRIYAGOLD which is the next most operating brand in the market. BUTTER-BITE of PRIYAGOLD is one & the only operating brand of PRIYAGOLD. Family pack of this company is the leading brand due to its quality & low price having 26.88% market share following BRITANNIA with 22.40%. In the deapth of both these brands its PARLE-G, MONACO & KRACKJACK is the leaders for the PARLE, and its the MONACO, FIFTY-FIFTY & MASKSA CHASKA is the BRITANNIA competitive operating products for the PARLE. As the data also shows that PARLE & PRIYA GOLD is in stiff competition with each other even in the rural areas of Saharanpur biscuit is known as PARLE-G. On the other hand, its the PRIYAGOLD which is the next most operating brand in the market. BUTTER-BITE of PRIYAGOLD is one & the

7 5

only operating brand of PRIYAGOLD. Family pack of this company is the leading brand due to its quality & low price. ANMOL can also not to be ignored with market share of about 13.60%. As far as others brands as concerned its the CREMICA & SWEET-HOME as they covers only the 4% of the total market. They operate only in the backward areas of the Saharanpur due to their cheap products APSARA is the yet another brand with about 5% share in the Saharanpur biscuit company.

4. Do you prefer any specific brand, give reasons for the brand preference?

BRAND PREFERNCE ON THE BASIS OF CONSUMER SURVEY

YES NO

65% 35%

BRAND PREFERNCE BY THE CONSUMERS

YES NO

7 6

7 7

INTERPRETATATION OF THE DATA

As the data above tells that the percentage of the Brand loyal consumers are very low. This is just because of the competition in the market. Each company has its own advantage, schemes, quality & taste. This causes consumers to migrate towards a new product, each tome they visit the shop. The most appropriate reason for the brand preference by the consumers is PRICE. About 25% consumers go for the quality for the brand preference. And only about 20% of those go for the QUALITY. 23% of the consumers go for the TASTE. 10% & 5% of the total consumers goes for the ADVERTISEMENT & PACKING respectively. Only about 7% & 10% of the total consumers goes for AVILABILTY & SCHEMES on the product respectively. This data clearly tell us the competitive situation of the Biscuit industry.

7 8

REASONS FOR BRAND PRERENCE

Brand Preference Reasons
25 20 15 10 5 0 Price Quality Advertisement Packing Taste Availibility Schemes

7 9

5. Does Promotional Activity affect the sale of products in the market?

YES

69% 31%

NO

CONSUMER OPINION ON PROMOTIONAL ACTIVITY

NO YES

8 0

INTERPRETATION
At the data above shows that, out of the total consumers surveyed a major portion of them are in favor that promotional activities like tour to world cop, free trips & other awards increase the sale of the biscuit in the market. On the other hand, about 31% of the consumers are against them. Most of them are brand loyal.
CASH DISCOUNT W R W R W R W R W R 25% 17% 20% 22% 20% 30% 18% 10% 17% 21%

6. WHICH IS COMMONLY

CREDIT POLICY REPLACEMENT

THE USED

MOST

FAST SERVICE

SCHEMES

DISTRIBUTION PRACTCE

8 1

DISTRIBUTION PRACTICE USED BY WOLESALLER & RETILER

PERCENTAGE USED 35% 30% 25% 20% 15% 10% 5% 0%
W R W R CREDIT W R W R W R CASH DISCOUNT REPLACEMENT FAST SERVICE SCHEMES

Series2

DIFFERENT PRACTICES USED

8 2

KEY PLAYERS IN SAHARANPUR ESTIMATED % AS PER FIGURES GIVEN BY DISTRIBUTORS :

Organized National Players Unorganized Regional & Local
Unorganized Regional & Local Players 35% Organized National Players 65%

Players 65% 35% Britannia Anmol

Priya Gold Parle

Apsara Others

Findings

8 3

Graphical and analytical representation above shows organized sector has less market share that is 35% as compare to unorganised sector has hold 65% of market share on same pattern of whole Indian market.

8 4

Q.1 What is Sales Bifurcation at different sale points?

Provision stores 1-3 pkt. 3-6 pkt. 15% 35%

Confectioners 8% 20% 72%

Sales Bifurcation

Tea stall 50% 20% 30%

Above 6 pkt. 50%

80 60 % 40 20 0 Prov. Stores Confectioners Tea Stalls 1-3 Pkt 3-6 Pkt >6 Pkt

Findings
The data in table above and graphical representation reveals that at provision stores 1-3 Pkt. sale is 15%, 3-6 Pkt. sales is 35%, above 6 pkt. sales is 50% at confectioners there are 72% sale of above 6 pkt., 20% of 3-6 pkt. and 8% sale of 1-3 pkt. and at tea stall 50% sale is of 1-3 pkt., 20% sale of 3-6 pkt. and 30% sale is of above 6 pkt.

8 5

Q.2. Would customer is ready to pay higher cost for the good quality? Response Yes No
Response for Quality

%age of Respondents 75 25

80 60 %age 40 20 0 Response Yes No

Findings
Graphical and tabular representation of my survey reveals that according to 75% of dealers customer is ready to pay higher cost for the good quality and 25% says no, customer is not ready to pay higher cost for the good quality.

8 6

Q.3. Whether customer is ready to changeover to another brand when there is some sort of schemes of More weight on same price or some free gift along with it? Response Yes No %age of Respondents 75 25

%age of Respondents

Yes No

Findings
Tabular and Pie Representation above shows 75% of dealers agrees that customer is ready to changeover to another brand because of various schemes and 25% are also there who says no, customer will strict on their own brand.

8 7

Q.4. What should be the promotional Scheme? Schemes Gifts Prize Coupons Discount Good Commission Extra quantity 30 25 20 15 10 5 0 Gifts Prize Coupons Discount Schemes Good commission Extra quantity % age of Respondents 10 25 25 30 10

Findings
30% of respondents says company should provide them good commission. 25% of respondents says discount and prize coupons respectively. 10% of them demanded attractive gifts should be given to them by company and rest 10% says extra quantity.

8 8

Q.5. In your opinion do the advertisement of a particular brand does attract the customer? Response Yes No % age of Respondents 70 30

No

Yes 0 10 20 30 40 50 60 70

%age of Respondents

Findings
In the opinion of 70% of my respondents advertisement of particular brand attract the customer and 30% says no advertisement doesn't attract the customer.

8 9

Q.6. Whether advertisement of a particular brand changes consumer loyalty to other brand? Response Yes No % age of Respondents 55 45

No

Yes 0 10 20 30 40 50 60

% age of Respondents

Findings
In survey conducted by me, in the opinion of 55% of my respondents advertisement of particular brand change the consumer's loyalty to other brand and 45% says no advertisement doesn't make any effect on consumer's choice.

9 0

F D G IN IN S

9 1

On the basis of my study, some findings are as follows: In my survey I found, maximum confectioners deals in Parle because of its quality maximum number of customers wants it. Parle has good presence in convenient stores/provisional stores .In posh has also strong presence. Anmol, Apsara and other local brands mostly available with tea-stalls provision stores because of more margin and supply at every corner of the city. Priya Gold and Anmol biscuits have less advertisement, which is the source of information for mass, where as Britannia has widely spread advertising campaign so it is a word of mouth for the people. ITC advertisement of sunfeast Biscuit must be shown repeatedly (again & again) and also which may attract children mostly. The total success in biscuits industry depends on the a). b). c). Sales force Regular Supply Quality of the productions

9 2

LIMITATIONS AND PROBLEMS

Although sincere efforts were made to collect maximum information from the respondents even then this report is subject to following limitations and problems. 1. Due to constraints of money it was difficult to cover all the area of Saharanpur.

9 3

2. The sample selected by the research was of 140 retailers so due to a small sample out of a big universe, the results may not be completely correct. 3. Some if the respondents though me as representative, hence instead of answering my question they put their question to me and expected me to answer them. 4. The people were quite hesitant inquiring exact data regarding their income level. 5. In today's materialistic world people want return on queering something. 6. Co-operation of respondents. This has been a major problem. People were reluctant to fill the questionnaire or face the interview.

9 4

C NLS N O C U IO S
The main reason behind choosing this topic for conducting research to know about Estimate Biscuit Industry and identify the critical success factor in Saharanpur for ITC. This is very important in increasing the sale of a product. Infact, knowing consumer perception is regarded as essential tools in the growth and expansion of the company. The brand preference can motivate the consumer to purchase a large quantity of a brand. It helps the company in differentiating their products from another companies. After doing my survey in various biscuits brands in Saharanpur. I did find that most retailers have Priya Gold, Parle and Britannia biscuit in their

9 5

shops. According to my survey the demand of Parle is being found almost higher than other brands. Secondly Priya Gold is demanded most, but the Britannia demand is going down. Hence mostly customer prefer feature of product and Brand Name. In the last I can say that in Saharanpur city there can be a more scope of ITC Sunfeast biscuit. Company should come up with more advertisement through the wall paintings and in local newspaper to catch attention of consumers.

9 6

S G ET N U G S IO S & RC M EDT N E O M N A IO S
A few recommendations on the basis of the findings of survey are as follows : Supply of biscuits should be regulated at various WD points and retailers. More advertisement should be given in the local newspaper to catch media as well as public attention. Regular supply of the items should be properly mantained by enhancing supply chain network. Quality of the product should be unmatched, some thing innovative need to be done to make biscuits life long. The best way to push sales is to give higher margin to retailer as compared to competitors as they act as opinion leaders for consumers.

9 7

 Promotion schemes for both traders and consumers should be there it may include Incentives to traders on fixed volume of sales and Schemes during special occasions like cricket matches and tourist season should be launched in terms of gift-hampers coupons to enhance sale. Wall paintings. Attractive margin for retailers.

9 8

LEARNING EXPERIENCE DURING THE TRAINING

My, project entitled estimate the biscuit industry and identify the critical success factor was given to me for my summer training in I.T.C. It has been a great experience, while during a training in Saharanpur city. In, my life it was my first experience to get people know of different categories through interviewing and getting fill up questionnaires from them. After doing my survey, I learnt that at each and every level their is a compitition. GAINS 1. The first and main thing I learnt about the distribution channel of different companies of biscuits. 2. About handling the work force. 3. How to get people convince for buying the product. 4. How to increase the sales force. 5. About the current situation of market condition. LOSS 1. During the training some if the sample respondents does not give their full information and also hesitate to fill up the Questionnaires. 2. The sample selected by the research was of 140 retailers so due to a small sample out o a big universe, the results may not be completely correct. It was too hot, outside, and places were far from each other.

9 9

B L G AH IB IO R P Y

1 0

 Kothari C.R., Research Methodology, Methods & Techniques (Second Edition) Kooper, Research Methodology Kotler Philip, The Marketing Management (The Millennium Edition) Chhabra T.N. Marketing Management Website of different Companies Magazines :1. Pukar, I.T.C. Ltd. 2. E & S Magazine, I.T.C. Ltd. 3. The EHS Magazine, I.t.C. Ltd. News Papers 1. I.T.C. News 2. The Economic Times

1 0

QUESTIONNAIRE (DISTRIBUTOR)
NAME OF THE OWNER NAME OF THE SHOP ADDRESS (C & F) : : : :

1 0

1. What is the Infrastructure?

2. What is your frequency? a. Daily b. Weekly c. Monthly

3. What is a No. of Beat (Route)?

4. What is your credit facility for retailers? a. Weekly Basis b. Monthly Basis

5. What is your Coverage plan in the Market?

6. What are your Brands name and stock keeping unit?

1 0

7. Turnover monthly about?

8. How much margin you give to retailers? a. Less than 10% c. 15% to 20% b. 10 to 15% d. Above 20%

QUESTIONNAIRE FOR WHOLESALLER AND RETAILER

NAME OF THE FIRM ADDRESS OF THE FIRM ---------------------------------------------------

1 0

1. Which brand/s of biscuit do you often sell?

Britannia Apsara Amulya Parle Anmol Priyagold Cremica

Any other (please specify) ____________

2. How much quantity do you sell in a week?

In terms of quantity____________________________________ In terms of rupees ____________________________________

3. Which is the most operating brand/s in the market according to you?

___________________________________________

4. What is the most appropriate reason for its success ? QUALITY PRICE EASY AVILABILTY ADVERTISEMENT TASTE PACKING

1 0

ANY OTHER ______________________

5. What is most commonly used channel of distribution? __________________________________________

6. What is the most commonly used distribution practice by you Fast service Cash Discount Credit Replacement

Any Other (please specify) __________

7. Are you fully satisfied with is most operating brand in the market YES NO

8. If no, give suggestion for the improvement of the brand. ________________________________________________

1 0

9. Do you provide any promotional activity to your consumers. YES NO

10. Give suggestions for the success of a new product to be launched in the market. _____________________________________________________________ _____________________________________________________________ _____________________________________________________________

1 0