Buying Behavior and Brand Awareness of Stationery products with respect to Educational Institutions

At ITC.LTD

Submitted in Partial Fulfillment of the Requirement for the Award of the Degree of Master of Business Administration 2011 - 2013 Of the Mahatma Gandhi University Submitted by Rince Baby REG.NO: 33261 Under the Guidance of Mr Ajith Thomas

Saintgits College of Engineering, Department of M.B.A (Affiliated to Mahatma Gandhi University, Kottayam, Kerala) Kottukulam Hills, Pathamuttom, Kottayam-686 532

Saintgits Institute of Management, Kottayam

ACKNOWLEDGEMENT

I would, at the very onset, like to thank Mr. Premodh, Assitant Manager, ESPB, ITC Limited for providing me the opportunity to perform my Summer Internship Program in the Company. I, would like to, give special thanks and gratitude to Mr. Vikram, for mentoring and providing the necessary data and information as and when required throughout the project. Their support and encouragement has been a source of inspiration for me and made my journey in ITC a delight. I would also offer my thanks to my Associate Dean Mr. Roji GeorgeSaintgits Institute of Management, Kottayam My thanks also go to Mr. Thomas Varghese, Chief Mentor, Saintgits Institute of Management, Kottayam I would also like to thank my classmates and seniors for extending me their help and cooperation whenever I approached them.

Saintgits Institute of Management, Kottayam

EXECUTIVE SUMMARY

Stationery Industry is a very heterogeneous group of business usually associated with the Schools, Colleges, and Office and plays a very crucial role in working of any organization across the globe. The concerned industry for my project is stationery industry. The project titled Buying behavior and Brand awareness of stationery products with respect to Educational Institutions. The main motive behind doing this project is to Know the industry, Have an overview of how ITC Classmate could penetrate the various Institutions, Know the working and buying behavior of Store department in the education institutions.

My project was totally based on primary data. The project started with a visit to various institutions in order to gain information about the stationery they use. This was done thoroughly in order to understand about scope of ITC Classmate to generate leads in those Institutions, before this I was given a thorough overview of different products of ITC Classmate. Data are collected from 30 education institutions located in different areas of kottayam district.

My findings through this project were there is a significant difference between the buying behaviors of people who are not aware of ITC brand.

Saintgits Institute of Management, Kottayam

TABLE OF CONTENTS

Sl. No.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Acknowledgement Executive Summary Introduction

Particulars

Page No.
2 3 5 6-7 8 9 9 10 10-12 13 14-18 19-20 21-26 26-29 30-35 36-51 52 54 54 55 56

Indian Stationery Industry Objective of the Study Scope of the Study Significance of study Limitations Industry Profile Company profile History of the Company List of Products & Brands SWOT Analysis Product Profile Literature Review Research Methodology Findings Conclusions Recommendations Bibliography and Reference Annexure

Saintgits Institute of Management, Kottayam

1.1 INTRODUCTION

We dont want satisfied customersWe want delighted customers. It is the new marketing mantra today. The same applies to stationery industry as well. Stationery Industry is a very heterogeneous group of business usually associated with the Schools, Colleges, and Office and plays a very crucial role in working of any organization across the globe. It includes Paper stationery which comprises of a vast collection of products like exercise books, note books, stitch, glued & tape pads, refill pads, flap over pads, subject books, plastic cover books etc. The huge greeting card market, autograph books, party invites etc, is also a part of this segment.

ITC.LTD

is

public conglomerate company

headquartered

in Kolkata, India.

Its turnover is $6 billion and a market capitalization of over $30 Billion. The company has its registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974.The company is currently headed by YogeshChanderDeveshwar. It employs over 26,000 people at more than 60 locations across India. ITC Limited completed 100 years on 24 August 2010.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. ITC's

Saintgits Institute of Management, Kottayam

aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world of its size and diversity to be 'carbon positive', 'water positive' and 'solid waste recycling positive.' In addition, ITC's businesses have created sustainable livelihoods for more than 5 million people, a majority of whom represent the poorest in rural India. The study has been conducted among a sample of schools in Kottayam district to understand the pattern of distribution of notebooks to students in various classes during the beginning of the academic year. It is also aimed to understand the awareness of ITC brand and classmate notebooks among the people involved in the procurement and distribution process namely principals, administrators and store managers.

Indian Stationery Industry: Opportunities and Challenges

In the international arena India is providing more scope for development and trends; however, with excellent quality, the Indian products are very much in demand. The Indian SMEs associated with stationery market has witnessed tremendous dynamic changes. In the last decade the Indian market has increased varieties to be exported in markets and has produced big market percentage. Indian Paper Stationery Industry, which is a part of the huge and scattered Indian stationery Industry, has been going through tremendous alteration in recent years. Despite fierce competition from neighboring markets, its scattered nature and the constantly changing trends, the paper stationery industry makers continue to make every effort, due to which the fruitful results are coming slowly and steadily. Indian companies have learnt that innovation, performance and versatility are the key area to be focused upon. Taking the points under consideration, the businessmen are now researching and developing new products, as the market is now more of consumer oriented which is always looking for cost effective

Saintgits Institute of Management, Kottayam

prices. This is because of the attitude of buyer which is now ready to spend more if are liable product is offered to him. With seasonal export market which stays from April-June major importing countries like U.S.A., Australia, Canada, major African countries and Middle East are the ones which accept Indian designs and style comfortably. With extreme precautions, and the good quality products offered and new marketing strategies are followed, the government has also come out with various incentives for SMEs. Particularly for stationary industry if we quote would be the education enhancement schemes which are giving growth to this sector. The Indian stationery market is also influenced by macroeconomic development, national income and lasts but not the least the ever-growing Indian population. The Indian stationery Industry is highly unorganized and the organized players are estimated to be less than the unorganized sector players due to which unorganized stationery players are expanded throughout the industry and controls major market share.

However, Indian stationary industry is facing major competition from the Importer especially Chinese manufacturers are the most competitive among all the otherworld market players as they have an advantage of mass production capacity, aggressive favorable government export policy, simplified low taxation and well developed infrastructure.

Saintgits Institute of Management, Kottayam

Stationery Industry: Introspection Time

Indian businessmen involved in the business of stationary items needs to work on proper research and development of the sector. Design, Colors, Quality, Themes, reaching the right partners and to find out new markets for their products should be on their agenda. Government at their level is taking initiatives; however, to bring in a spurt in the trade there is a need to focus on providing assistance to businessmen for buying good machinery, necessary infrastructure should be provided, to enhance export activities, workshops, conferences and training programs should be conducted at state and national level. Logistics is also a key concern that goods should reach on time which helps in maintaining a relationship with various customers across the globe.

1.2 OBJECTIVES
To find out the brand awareness of ITC classmate stationery products. To find out the buying behavior of customers and factors influencing in it. To find out whether the brand awareness has any impact on the buying behavior of people. To find out availability of stationery product of ITC in education institutions. To gather information about competitors strategies and performance in the market To find out trade margin for stationery product. To suggest measures for improving the availability of stationery product of ITC. To identify areas for increasing the sales of stationery productsof ITC.

Saintgits Institute of Management, Kottayam

Hypothesis Ho: There is no significant difference between the buying behaviors of people who are not aware of ITC brand. H1: There is a significant difference between the buying behaviors of people who are not aware of ITC brand.

1.3 SCOPE OF THE STUDY

It covers the market survey with the help of which market potential is carried out. It is useful for finding out the brand awareness and buying behavior of education institutions on ITC stationery products. It compares the major players of the stationery products on various aspects such as price, quality, durability, brand image. It is also useful for finding out actual expectations of the existing customer.

1.4 SIGNIFICANCE OF THE STUDY

The project intends to find the satisfaction level as well as the preferences of retailers pertaining to the various stationery brands launched by ITC. We aim to analyze the success, marketability and future growth prospects stationery brands. Basically we intend to find out the most popular stationery brand in the market from our sample. Stationery brands as such are a very minor part of the FMCG industry because FMCG sector is largely organized. Here we will also look into the market trends in stationery brands. This also helps the management whether they really meeting the expectation of the Schools stores. The study also enables to know the service frequency and delivery time of ITC and competitors.

Saintgits Institute of Management, Kottayam

1.5 LIMITATIONS OF THE STUDY:

This project is limited due to time constraint as it involves a lot of complex variables which require a detailed study over a period of time. The project did not cover the effect of brand awareness and buying behavior on a very large scale. Only a small population was studied, which may not be enough to show correct picture. The surveyed people were very reluctant to answer the question and the response may be biased. The major problem of the survey was that most of the respondents being very loyal to their brands didnt give exact answers .like they didnt talk much about what problems they are facing, what are the different marketing schemes of the brand in which they deal etc.

1.6 INDUSTRY PROFILE

Size of the business ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 billion and a turnover of US $ 6 billion.ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business

10

Saintgits Institute of Management, Kottayam

Week.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Ltd, provides IT services and solutions to leading global customers. ITC InfoTech has carved a niche for itself by addressing customer challenges through innovative IT solutions.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 26,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 4, 14,000 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."

11

Saintgits Institute of Management, Kottayam

Market share

ITC Limited public conglomerate company headquartered in Kolkata, India. Its turnover is $6 billion and a market capitalization of over $30 Billion. The company has its registered office in Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry with Imperial Tobacco of the United Kingdom, but it is now fully independent, and was rechristened to Indian Tobacco Company in 1970 and then to I.T.C. Limited in 1974 The Company is currently headed by YogeshChanderDeveshwar. It employs over 26,000 people at more than 60 locations across India. ITC Limited completed 100 years on 24 August 2010.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only company in the world of its size and diversity to be 'carbon positive', 'water positive' and 'solid waste recycling positive.' In addition, ITC's businesses have created sustainable livelihoods for more than 5 million people, a majority of whom represent the poorest in rural India.

12

Saintgits Institute of Management, Kottayam

1.7 COMPANY PROFILE

ITC Profile
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 30 billion and a turnover of over US $ 6 billion. ITC is rated among the World's Best Big Companies, Asia's 'Feb 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITCIndia Limited Type Founded Public (BSE:ITC) August 24, 1910

RadhaBazar Lane, Kolkata, India Headquarters Key people Virginia House, Kolkata, India Y C Deveshwar, Chairman K Vaidyanath, Director, CFO: ParthoChatterjee Industry Tobacco, Foods, Hotels, Stationery, Greeting Cards, Product Cigarettes, Packaged Food, Apparels

13

Saintgits Institute of Management, Kottayam

History
ITC was formed on August 24, 1910 under the name Imperial Tobacco Company of India Limited. Later the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. ITC contains a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education& Stationery and Personal Care. Finally the company changed its name to 'ITC Limited on September 2001. The earlier decades of the Company's existence were mainly depending on growth and consolidation of the Cigarettes and Leaf Tobacco businesses, In the Seventies it started to transform into a corporate. 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 in1979, ITC entered the Paperboard business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). ITC's first rural mall, christened 'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'ChoupalSaagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

14

Saintgits Institute of Management, Kottayam

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraft was launched in 2002. To augment its offering and to reach a wider stud ent population, the popular range of notebooks was launched under brand Classmate in 2003. Classmate over the years has grown to become Indias largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Text liners, Permanent Ink Markers and White Board Markers in 2009. 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 Club life evening wear (2003). 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 Indias 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

15

Saintgits Institute of Management, Kottayam

Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In just over a decade, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands likeMangaldeep, Aim, Aim Mega and Aim Metro.ITC's foray into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the

16

Saintgits Institute of Management, Kottayam

mass-market segment at select markets in October 2007 and Vivel De Wills &Vivel range of soaps in February and Vivel range of shampoos in June 2008.

Growth and diversification

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hostelling. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.

17

Saintgits Institute of Management, Kottayam

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing.

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 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 72,000 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." ITC has transformed itself from a leading cigarette manufacturer to an umbrella Group that offers a diversified product mix to enhance its brand image and reduce Dependency on tobacco related products. It has forayed into the hospitality service industry and has become a major player in the hotels segment. Its position in the FMCG (fast moving

18

Saintgits Institute of Management, Kottayam

consumer goods) business is also on a growth curve; especially its confectionery and biscuits which are slated to achieve the top ranks among its peers. It has made heavy investments to strengthen its IT (information technology) segment and to compete with the big players like Infosys and Wipro. Although the ITC group is marketing its image as an ideal corporate citizen and a company that takes its social responsibility seriously, it still earns 80% of revenues from selling cigarettes and other tobacco related products.

The major areas in which ITC has diversified are:

Major product categories of ITC FMCG

19

Saintgits Institute of Management, Kottayam

Hotels Paperboards and Packaging

Packaging

Agri-Business - exports -Choupal

Information Technology

Our Corporate Vision: Our corporate vision is to merge the latest in technology with the best of natural ingredients to create innovative color products. We consistently combine tradition with scientific ingenuity to provide the market with products that deliver verifiable results. VISION: Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders. MISSION: To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

20

Saintgits Institute of Management, Kottayam

1.8 SWOT ANALYSIS

ITC is one of India's biggest and best-known private sector companies. In fact it is one of the World's most high profile consumer operations. This swot analysis is about ITC. Its businesses and brands are focused almost entirely on the Indian markets, and despite being most wellknown for its tobacco brands such as Gold Flake, the business is now diversifying into new FMCG (Fast Moving Consumer Goods) brands in a number of market sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery. Examples of its successful new FMCG products include: Aashirvaad - India's most popular atta brand with over 50% market share. It is also present in spices and instant mixes. STRENGTHS ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business.ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery.

21

Saintgits Institute of Management, Kottayam

WEAKNESSES The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death.To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidized by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market. OPPORTUNITIES Core brands such as Aashirvaad, Mint-o, Bingo and Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration.ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. E-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages.ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate. Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's premier

22

Saintgits Institute of Management, Kottayam

FMCG business. Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand. THREATS The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings.ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future.

Competitive strategies of ITC Company ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITCs corporate strategies are: Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology.

23

Saintgits Institute of Management, Kottayam

Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality.

o o

Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC are various businesses.

Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

Sustain multiple drivers of growth, matching internal capabilities with emerging market opportunities

Pursue World class competitiveness in all businesses and across the entire value chain Best-in-class in terms of: Internal Vitality Market Standing Profitability

Strategy of Organization and Governance processes geared t Manage multiple businesses Blend core competencies and leverage ITC umbrella strengths to Create new avenues of growth.

Apart from crafting business models that establish direct linkages between businesses and societal goals, ITC is also engaged in implementing various other sustainable development initiatives towards making a meaningful contribution in the economic vicinity of its operating

24

Saintgits Institute of Management, Kottayam

locations. The thrust of these initiatives, christened 'Mission SunehraKal', is in three areas: (i) natural resource management, which includes wasteland, watershed and agriculture development; (ii) sustainable livelihoods, comprising genetic improvement in livestock and economic empowerment of women; and (iii) community development, with focus on primary education and health and sanitation.

ITC is committed to conducting its business operations with passionate respect for the environment. Several prestigious national and international awards (listed elsewhere in this report) testify to ITC's abiding commitment. Such recognition has further reinforced the Company's commitment to consciously synergies and direct the collective Endeavour of its employees at all levels across all businesses, functions and locations to continuously improve sustainability practices, to ultimately attain and exceed global standards. Internationally benchmarked specific consumption of water, dedicated pursuit of the goal of zero discharge and scaling up of rainwater harvesting in several moisture-stressed districts of India have enabled ITC retain its enviable position of a 'water positive' Company for the fourth successive year. The water harvesting potential created so far is over four times the Company's net water consumption. It is a matter of pride that ITC became 'carbon positive' during the year on the back of several energy conservation measures, usage of carbon neutral fuels and carbon sequestration through large-scale agro forestry programmes. ITC is making rapid strides towards attaining 'zero solid waste' status. Upon this achievement in the near term, ITC would perhaps be the only global enterprise of its size in the world to have achieved these milestones encompassing all three critical facets of environmental sustainability. In a nation where economic deprivation is widespread and the capacity of a large share of its citizens to participate effectively in economic growth is grossly limited, ITC seeks to contribute in

25

Saintgits Institute of Management, Kottayam

meaningful measure towards social empowerment and genderised development. The ITC eChoupal and ChoupalSaagar infrastructure - a combination of digital, human and physical assets - already serves over 3.5 million farmers and is potentially an efficient delivery channel for rural development.

1.9 PRODUCT PROFILE ITC's diversified portfolio comprises: Cigarettes & Cigars Foods Lifestyle Retailing Personal Care Education and Stationery Safety Matches Agarbattis Hotels Paperboards and Packaging Agri Business Leaf Tobacco Information Technology

26

Saintgits Institute of Management, Kottayam

Education and Stationery products

ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering.

Today, ITC continues to blend its core capabilities to market a growing range of education and stationery products. These capabilities include, a. Manufacturer of Indias first Ozone treated environment friendly El emental ChlorineFree (ECF) pulp, paper and paperboard. b. Knowledge of image processing, printing & conversion garnered from its Packaging & Printing Business. c. Brand Building & Trade Marketing & Distribution strengths resident in its FMCG Business. ITCs stationery Brands are marketed as Classmate and Paperkraft, with Classmate addressing the needs of students and Paperkraft targeted towards college students and executives. Indias truly largest

Classmate

National brand, reaching 65,000 outlets across the country, has over 300 variants in its range which comprises notebooks, long books, practical books, drawing books, scrap books, reminder pads etc

27

Saintgits Institute of Management, Kottayam

Classmate note books

The Classmate Fun N Learn range of children books targeting pre-school learners, comprising categories like Pre School Learner,Active Minds and Read Aloud Tales with features like Wipe n Use again, Trace & Color and Puzzles ensure that a child's first lessons are truly enjoyable.

Classmate Invento Geometry Boxes, launched for school students comprise a world-class precision compass and high quality plastic instrument coupled with interesting trivia and useful information, to make geometry more fascinating for students.

Aesthetically designed, Classmate pens offer the consumer a smoother and more comfortable writing experience through use of ergonomic design, reducing the effort required for writing. The initial launch comprises ball pens Classmate Safari and Classmate Ilet - and gel pens - Classmate Glider and Classmate Octane.

A new entry to the Classmate portfolio is its range of HB Jet Black pencils. Designed attractively for school kids, the pencils offer a unique advantage of lesser lead wear out and thus, Stay Sharper for Longer.

28

Saintgits Institute of Management, Kottayam

Dark and smooth writing coupled with Strong Bonded lead offer an enjoyable writing experience. The Classmate Notebook range builds in regional preferences and caters to the requirements of All India & State Education Boards. Every Classmate notebook carries ITC's Corporate Social Responsibility message on its back. For every four Classmate Notebooks, ITC contributes Re. 1 to its rural development initiative that supports, among other projects, primary education in villages.

Classmate has successfully run the Classmate Young Author & Artist Contest for 5 years. The contest is a national level event going across 34 cities and getting participation from 5000 schools.

The Paperkraft range consists of premium stationery with a wide variety for executives to choose from. The assortment consists of notepads & multi subject notebooks in hard, soft covers & multiple binding formats including spirals, wires etc.

The Paperkraftbrand recently launched premium business paperan environment friendly

multipurpose paper for office and home use. The paper has been crafted by ITCs Bhadrachalam unit using a pioneering technology, called Ozone Treated Elemental Chlorine Free technology.

29

Saintgits Institute of Management, Kottayam

1.10 LITERATURE REVIEW

Introduction: Consumers behavior indicates to the activities in which people gain, consume and dispose products and services. In the recent scenario there were numbers of research accomplished in the field of consumers buying behavior. Most of the researches were focus on the single brand, in spite of the significance of innovative ideas for understanding the fast-changing consumers habits. This research is going to explore the consumers buying behaviour under the influence of the brand equity. In this chapter, the literature that concerned with the functions and roles of brand and brand equity are reviewed to provide a theoretical framework for the analysis. Brand: A brand refers to the name or symbol used to identify the source of the product. According to marketing association (1960) brand is a name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller and to differentiate them from those of competitors. But there was the lack of intangible features such as image so; this definition has been criticized (Kotler 1996, Wood 2000). Brand is a name in every consumers mind (Mooij, 1998) and which is also characterized by a noticeable name or symbol which can differentiate the goods and services from the rivals (Aaker, 1991; Keller, 1998). Different researchers and different writers have given different definition on Brand highlighting various aspects of brand such as: The concept of brand equity (Keller 1993, Aaker 1996, Brand personality (Aaker 1997) etc. From the consumers point of view, Roman et al. (2005) defined brand as a guarantor of reliability and quality in consumer products. In addition consumers like to buy and use brand

30

Saintgits Institute of Management, Kottayam

name products with a view to highlight their personality in different situational contexts (Aaker, 1999; Fennis and Pruyn, 2006). Consumers nowadays have got a wide variety of choice. It is found that consumers emotions are one of the major determinants which affect their buying behaviour (Berry, 2000). When the consumers decide which products to purchase then they made preferences on the products which develop the perceptions towards the brand. Successful branding could make consumers aware of the presence of the brand and hence could increase the chance of buying the companys products and services (Doyle, 1999). The characteristics of successful brands: For the successful brands the brand should be everlasting and lucrative asset which must satisfied the consumers needs (Batchelor, 1998; Murphy, 1998). But Levitt (1983) mentioned that there are four elements for building a successful brand which are as follows:Tangible Product Basic Brand Augmented Brand Potential Brand Tangible products refer to the product or goods which fulfill the basic needs of the customers. On the other hand Basic brand indicates the packaging of the tangible product in order to make a product attractive and to gain the attention from the potential customers. The brand can then further improved with the provision of credibility, effectiveness after sales and the service which is known as the augmented brand. Finally the most important is the potential brand which is established through the customer loyalty towards the products which helps to create the image of the brand in the customers mind.

31

Saintgits Institute of Management, Kottayam

Brand Equity: Branding is an important decision when a new product is developed and it can add the considerable value when it is well renowned and has a positive image in the mind of the consumer. This concept is simply referred to brand equity. The concept of brand equity was emerged as the central concept in marketing over the past 20 years. From the managerial point of view, Farquhar (1989) defines brand equity as the added value with which a brand name endows a product and Aaker (1991) defines brand equity is a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firms customers. Brand equity is the intangible feature of a particular company or product that depends on associations made by the consumer. It is used to describe both the brands component values and the value of brand. However, brand equity is concerning the positive side only when the consumers are willing to pay more for the same level of quality just because of the name attached to the product (Bello and Holbrook, 1995). Moreover, brand equity could be considered as a ruined if it is not properly managed. The poor product quality and deprived customer services could directly affect the brand image which reduced the sales volume. One of the typical examples regarding brand is; it is a kind of equity that is imposition of laws to protect intellectual property (Murphy, 1998). In addition he said that it is also a tradable product which has a measurable financial value. To find some familiar brands listed on the stock market is a common thing in which they could be bought or sold. Brands like Marks and Spencer, Vodafone, Tesco and HSBC are all famous brands which are listed in the stock market.

32

Saintgits Institute of Management, Kottayam

Brand Equity could provide the consumers about the information of brand and manipulate their confidence during the purchasing process. Brand equity, itself is a wider and broad concept which can further subdivided into four main areas (Aaker, 1991; Keller 1998) Namely Brand Loyalty Name Awareness Perceived Quality Brand Associations These areas are defined briefly in following sections: Brand Loyalty: Brand loyalty is considered as one of the core components of the brand equity which affects the brand equity positively and directly. Because of the brand loyalty consumers continue to buy the brand, regardless of the superior features, prices and convenience owned by its competitors (Aaker, 1991). Consumers make the purchase as a habitual towards a particular brand just because of the reason that its prominence in stock and effective promotions. Brand Awareness: Brand awareness refers to the ability of a potential consumer to recall and recognize the brand, linking the brand with its corresponding product class (Aaker, 1991). To know about the product and to be aware of that is important for the potential consumers so that it could be one of the purchasing choices to them. This is because of the fact that the product needs to enter the awareness set before it comes to the consideration set (Blackwell et al., 2001). The increase in brand awareness is conductive to a higher chance of entering the later set (Nedungadi, 1990). So, the brand with higher awareness would be more likely to be purchased (Yasin et al., 2007).

33

Saintgits Institute of Management, Kottayam

Perceived Quality: Perceived quality is defined as the perception of the customers over the overall quality or superiority of a product or the service (Aaker, 1991; Keller, 1998). More specifically Aaker (1991) further classified into quality of product and quality of service. Quality of product has got seven dimension which affect the customers perception which are performance, features, conformance with specifications, reliability, durability, serviceability and fit and finish. On the other hand service quality is judged by its corresponding tangibles, competence, reliability, empathy, responsiveness. Brand Associations: Brand association is the last dimension for brand equity. Aaker (1991) defined brand association as the specific linkage between memory and the brand. Keller (1998) and Yasin et al. (2007) further added that the equity of brand is largely supported by consumers associations towards the brand, which contribute to a specific brand image. Brand association is one of the most complicated dimensions which connect to one another, consisting the multiple ideas, episodes, examples and facts that create a brand knowledge network. Keller (1993, 1998) further illustrates brand associations into three categories which are attributes, benefits and attitudes. Attributes refer to the specific character of the product. Benefit can be functional, experimental and symbolic where as attitudes are regarding the consumers overall assessments towards a brand. Consumers buying behavior: Schiffman and Kanuk mentioned that the consumer behavior is about how people make their decisions on personal or household products with the use of their available resources such as time, money and effort. On the other hand Gabbott and Hogg (1998) and Blackwell et al. (2006) provide a holistic view that defines consumer behavior as the activities and the

34

Saintgits Institute of Management, Kottayam

processes in which individual or groups choose, buy, use or dispose the products, services, ideas or experiences. The study of consumer buying behavior is most important topic in this research. In the very beginning, the consumer behavior can persuade the economics of a nation (Blackwell et al., 2006). They have their preferences of purchasing the products from a specific retailer which helps to make the retailers to survive in their competitive world. On the other hand by understanding the reasons for consumers to buy the products and their buying habits, an organization can use such information to devise corresponding marketing strategies in response to the consumers needs (Blackwell et al., 2006). In addition, present consumer behavior studies regard consumers as important determinants of organizational success and it is found that the most successful organizations are customer-centric (Blackwell et al., 2006). Models of Consumer behavior: To define explain the consumer buying behaviors there are several models developed which are vary in presentation such as pre-purchase, purchase and post- purchase (Hoyer and Maclnnis, 2001; Rayport and Jaworski, 2003). But Blackwell et al. (2001) argued by defining consumer behavior as a summation of acquisition, consumption and disposal of products or services. Later on Arnoud et al. (2004) proposed the circle of consumption that recognize purchasing process as a loop, comprising acquisition of goods and services, consumption and the disposal of used goods. For the models of consumer behavior Blackwell et al. (2006) proposed the seven stages which include need recognition, search for information, pre-purchase, evaluation, purchase, consumption, post-consumption evaluation and divestment. Stage one is the need recognition and this occurs when an individual customer is aware of a difference between the actual satisfaction and their perception level. Their buying process is

35

Saintgits Institute of Management, Kottayam

initiated when they identify their satisfaction and dissatisfaction needs. Functional needs and psychological needs are two different types of needs. The second stage is search information. Based on the customers personality, social class, income, size of purchase, past experiences, prior brand perceptions the length and the depth of search may vary (Moorthy et al., 1997). Solomon et al. (2006) divided search information further into pre-purchase search and ongoing search. Third stage is pre-purchase evaluation. In this stages the consumers compare the brand with different other products to make a better purchasing decision. Here, consumer pays particular attention to the attributes which are most relevant to their needs (Kotler et al., 2005). Such attributes are: size, quality, quantity and price which are used by the customers to judge before they buy something and if any changes occurs in these attributes may affect their decisions on brand and product choices (Blackwell et al., 2006). The fourth stage is purchase decisions which are taken by the customers after evaluating the offers from different retailers. There are two phases contributing which contributes the decision making processes including retailer and in-store selection. Retailer selection is made after judging from which retailers the product should be buy by investigating the attributes from earlier stage and in-store selection is because of the selling skills of salesman, display inside the shop and advertising (ibid). In stage five, consumers starts using the products and in stage six they start evaluating the using products. These both stages are after purchasing stages i.e. post-purchasing stages. In this stage there will be rise to satisfaction when consumers expectations are higher than the perceived performance and vice versa (Blackwell et al., 2006).

36

Saintgits Institute of Management, Kottayam

The last stage is divestment. In this stage consumers dispose the products. This stage is very important and key stage since the customers could be possible to make repeat purchases provided that they are satisfied with the above mentioned stages

1.11 RESEARCH METHODOLOGY

Research: Market research is defined as a systematic gathering, recording and analysis of the data concern with an objective. This whole activity is divided into various parts & after compilation of that we reach at certain findings, which enable us to take marketing decisions. It involves the diagnosis of information needed and the selection of relevant and interrelated variables. Redman and More defined research as a systematized effort to gain new knowledge. The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and has not been discovered as yet.

Significance of Research Research inculcates scientific and inductive thinking and it promotes the development of logical habit of thinking and organization. Research provides the basis for nearly all Govt. policies on our economic system. Research has its special significance in solving various operational and planning problems of business and industry. The significance of this project is to understand market potential of classmate products in schools around Kottaym district.

37

Saintgits Institute of Management, Kottayam

Research Design Survey method has been used for the data collection with the help of questionnaire as the research instrument. It was a field research method where consumers visit were made to gather the information needed for the market survey. The source for the information was the consumers of the desired product.

Type of Research Market research is being used to measure the characteristics of market, to obtain information needed for forecasting to evaluate new product ideas and improve existing product. There are number of decisions or alternatives in the market, one course of action is to be selected from them.

Method of Research The study falls under the category of Descriptive research and uses survey method. Descriptive research includes survey and fact finding enquiries of different kinds. It is description of state of affairs, as it exists at present. Main characteristics of this method are that, the researcher has no control over the variables. He can only report what is happening. The method of research used in this research was Survey method.Research methodology is the process which helps in selecting the tools to achieve the objectives. General Methodology: The methodology adopted for this project was completely base on primary information. The location of the study was in Kottayam district. The first stage included gathering information about the stationery product of the Kottayam market. That was, to find out which are the major players, what is the brand awareness and buying behavior of customers. The second stage

38

Saintgits Institute of Management, Kottayam

comprised determining the objective of the study and drafting the questionnaire. The questionnaire was designed keeping in mind the objective of the study. It was designed with due guidance of the company guide. The methodology consists of: Need and objective of research Collecting the facts/data Analysis of the data. Conclusion and solution

1) Sampling design: A definite plan developed to obtain a sample from a given population is called sampling plan. Designing the sample based on two decisions. First, who is to be surveyed? Second, how many people in the sample are chosen?

Sample unit: Education institutions in Kottayam district. Sample size: The larger the size, the more accurate the result would be. But practically, its not feasible to survey the entire target groups. The sample size of the survey done by me was 30 schools.

Sampling Procedure I try to find out the brand awareness and buying behavior of schools on ITC stationery products.

39

Saintgits Institute of Management, Kottayam

Contact Method I personally visited most of the schools. Few schools due to their busy schedule or loyalty for their brand refused to respond at all.

2) Sources of data collection: Primary data: Data obtained from the first hand by the researcher is called the primary data.Here the main source of primary data collection was discussion and interaction with customers by using the Questionnaire. Secondary data: Secondary data refers to the data available in some form or another and may include the result of the previously performed research or the available materials such as newspaper, reports may be from the internet. Various sources of secondary data used in this research are: Internet Interaction with the dealers.

Questionnaires were used as an instrument for data collection for primary data collection.

Types of questions: Open-end questions: Close-end questions:

40

Saintgits Institute of Management, Kottayam

An open-ended or simply open or free answer question gives the respondent complete freedom to decide the form, length and detail of answers. Open questions are preferred when the researcher is interested in knowing what is uppermost in the mind of the respondent. Close end questions has only two answers in the form yes or no, true or false or do not use etc.

3) Analytical tools:

The data, which was collected, was summarized and tabulated on MS-excel for further analysis. The analysis performed was mainly comparative analysis using statistical analytical tools. The tools that have been used are as follows: Bar Chart Pie Chart T-test

Duration of the Study Research work is only carried for 2 months

1.12DATA ANALYSIS & INTERPRETATION SCHOOLS IN KOTTAYAM The Kottayam district is well known for education system has got a total 248 high schools of which Government 60, Private aided 160 and Private unaided 22. This study covered a sample of 30 schools, 28 of which supply stationery products through the institution. These schools come under the categories of CBSE, ICSE and State syllabus.

41

Saintgits Institute of Management, Kottayam

Break Up of Types of Schools in Kottayam district

Type of school Government Private Aided Private Unaided Total

No of schools 60 166 22 248

Percentage 24.19% 66.93% 8.87% 100%

No of schools
8.87% 24.19% Govt Private Aided Private Unaided

66.93%

Inference In Kottayam district there are 60 government schools, 166 private aided schools, 22 private unaided schools. Totally there are 248 schools. From the data the private school are more in number and has the possibility for the availability of stationary products within the school campus.

42

Saintgits Institute of Management, Kottayam

Schools divided on the basis of syllabus

Syllabus CBSE ICSE STATE TOTAL

No of schools 98 14 136 248

Percentage 39.51% 5.64% 54.83% 100%

No of schools
39.51%

54.83%

5.64% CBSE ICSE STATE

Inference In Kottayam district there are 98 CBSE schools, 14 ICSE schools and 136 State Board schools. Totally there are 248 schools. Since there are 98 CBSE schools in Kottayam district, there is a higher demand for text books and notebooks in the school stationary compared to ICSE schools. Also the students and the subjects in the CBSE schools are higher than both ICSE and state schools.

43

Saintgits Institute of Management, Kottayam

Awareness of ITC stationery products other than classmate

Awareness Aware Not Aware

No of schools 22 8

Percentage 73.33% 26.66%

No of schools
25 20 15 10 5 0 Aware Not Aware Aware Not Aware

Inference Out of the 30 schools in Kottayam district taken as sample for the survey, 73.3% of the schools are aware of ITC stationery products. Awareness can be given to the remaining 26.6% of schools about the various stationary products offered by ITC.

44

Saintgits Institute of Management, Kottayam

Top Ranking (Weighted score)

First Factors Quality Price Discount Credit Period Timely supply 1 0 (10) 27(270) 0 0

Second (8) 1(8) 17(136) 5(40)

Third (6) 0 9(54) 3(18)

Fourth (4) 0 1(4) 18(72)

Fifth (0) 0 1 2

Total schools 28 28 28

Total Score 278 194 130

6(36)

7(28)

15

28

64

5(40)

11(66)

2(8)

28

114

300 250 Total score 200 150 100 50 0 Quality Price Discount Credit Period Timely supply Quality Price Discount Credit Period Timely supply

Inference The above data shows the preference of the customer in purchasing stationary products. Various attributes positions and their score are provided for the customer to rank their preferences. The first position is given 10 points, second 8 points, third 6 points, fourth 4

45

Saintgits Institute of Management, Kottayam

points. Attributes like quality, price, discount, credit period, timely supply are also provided for ranking. The data collected shows that 27 schools has ranked quality as the first preference with a total score of 270. And price as the second preference. This suggests that price and quality are the key factors which influence the purchasing behavior of the customer. T-Test Hypothesis

Ho: There is no significant difference between the buying behaviors of people who are not aware of ITC brand.

H1: There is a significant difference between the buying behaviors of people who are not aware of ITC brand.

Group Statistics Brand awareness N Buying behavior Aware 22 Mean 3.5455 1.5000 Std. Deviation 1.73829 .53452 Std. Error Mean .37060 .18898

Not aware 8

46

Saintgits Institute of Management, Kottayam

Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means Sig. (2F Buying behavior Equal assumed Equal variances not assumed 4.917 27.719 .000 variances 24.066 Sig. .000 T 3.240 df 28 tailed) .003

Inference Since the p value is less than the test value of 0.05, the null hypothesis cannot be accepted.Hence, brand awareness of people is affecting the intension of people to buy the product. Break - up of schools based on students strength

No of students Below 500 501 - 1000 1001 - 1500 1501 - 2000 Above 2000

No of schools 6 12 6 3 3

Percentage 20% 40% 20% 10% 10%

47

Saintgits Institute of Management, Kottayam

Total

30

100%

Number of schools
14 12 10 8 6 4 2 0 Below 500 501 - 1000 1001 1500 1501 2000 Above 2000

No of schools

Inference Out of the 30 schools surveyed 6 schools are having student population less than 500. Another 12 schools are having student strength of 501 to 1000. Another 6 schools are having student strength of 1001 to 1500. Another 2 schools have student strength of 1501 to 2000 and 2 schools have student strength of above 2000. Mode of Supply

Modes of supply Direct supply to students Through Vendor Through Institutional store No supply of stationery products Total

No of schools 7 2 19 2 30

Percentage 23.33% 6.66% 63.33% 6.66% 100%

48

Saintgits Institute of Management, Kottayam

No supply of stationery products Through Institutional store

Direct supply of students Through Vendor

Through Vendor Through Institutional store Direct supply of students 0 5 10 No of schools 15 20 No supply of stationery products

Inference From the above data 63 % of schools provide stationary products through the institutional stores. This shows that majority of the schools provide stationary through the store. Creating a contact with the school purchase department can be established and ITC stationary products can be made available through the institutional store. Place the order Month Jan Feb Mar April May Nov No orders No of schools 4 5 5 10 2 1 3
Saintgits Institute of Management, Kottayam

Percentage 13.33% 16.66% 16.66% 33.33% 6.66% 3.33% 10%

49

Total

30

100%

12 10 No of schools 8 6 4 2 0 Jan Feb Mar April Months May Nov No orders No of schools

Inference From the above data it can be inferred that orders for stationary products placed by the schools are highest during the month of April. Stocks can be updated and orders can be taken by the end march. Also promotions should be given in the months of February and March which can help to influence the purchasing decisions of the customer. Higher quality products with a moderate pricing will help in placing the product into the minds of the customer and thereby attracting orders and increasing sales. Trade margins on stationery products BRANDS CLASSMATE CAMLIN CELLO LOCAL BRANDS % OF SALES 26% 24% 14% 36%

50

Saintgits Institute of Management, Kottayam

% OF SALES
40% 30% 20% 10% 0% CLASSMATE CAMLIN CELLO LOCAL BRANDS

Interpretation: According to above graph, it is clear that local brands are giving 36% margin which is higher .Trade margin of ITC is 26%,Cello is 14%, Camlin is 24%, and the retailer gets the maximum margin in local brand that is 36%. Satisfaction level with respect to margin

SATISFIED 22%

NOT SATISFIED 78%

TOTAL 100%

SATISFIED NOT SATISFIED

Interpretation:

51

Saintgits Institute of Management, Kottayam

According to above graph 78% Institution store are not satisfied with the margins offered to them by the company. While only 8 % Institution stores are satisfied with margins. So company should rethink over trade margin policy. 1.13FINDINGS

1. Findings regarding distribution :

Most of the schools have tie up with local suppliers who manufacture and give the books to schools. Apart from the high margins provided by the local suppliers, their strong relationship with the school management also helps them in getting orders. Demand of ITC product is high but the schools are not ready to accept the Margins offered by the company. Some stores are purchasing some SKUs of classmate from the wholesale market, like the Maths ruled book.

2. Findings regarding Promotional activities:

Institution stores are expecting schemes comparable to local suppliers during season. Competitors are doing heavy promotional activities in comparison but ITC believes in quality not in promotion. Demand for Camlin products is high in some areas they are more in to the promotional activities.

52

Saintgits Institute of Management, Kottayam

3. Findings regarding Product of ITC:

Geometry box: Invento and Victor, geometry boxes quality is good but people are more aware of Camlin geometry boxes. Note books: Few customers have complained that ink is visible at the back side of the paper of classmate note book. Paperkraft: As compared to Bilt diaries Paperkraft diaries are costlier. Pen: The major finding for pen is that the length of classmate pens is slightly bigger thats why it is not comfortable while keeping it in shirts pocket.

4. On the spot payment, low cash discount, no credit facilities and fewer margins as
compare to competitors, push stores to sell other competitive brands.

5. Major competitors of classmate notebooks is Navneet, for pencil it is natraj, for

geometry box its camlin, for diaries it is Bilt.

6. The popularity and reach of local brands is more compared to other Indian brands. This
is mainlyon the basis of trade margin.

7. Due to the rural development initiatives together with the sale of classmate notebooks
creates value in the mind of consumers.

8. Most customers are attracted by the trivia provided at the front and back part of a
classmate notebook.

53

Saintgits Institute of Management, Kottayam

1.14 CONCLUSION Widening of awareness about classmate products especially stationary items need to be enhanced. Since the general awareness about stationary products from ITC is very inadequate. The market potential is good considering the number of schools and the number of students in each school. Generally the end customer either student or a parent looks at quality and in the long run. Classmate can establish a market preference if it is able to convince the administrators of its total value. Another important observation is that schools are procuring large number of writing pads or conference pads for internal use as well as for distributions. Awareness programs and making available the best price packages can bring long term sustainable growth in the market. 1.15 RECOMMENDATIONS The quality of cover page of the notebook should be reduced to some extent so that the price can be reduced. Classmate should cater to lower segment market by reducing its overall quality to some extent but the quality should be better than local brands. The company should concentrate more in to the distribution of Paperkraft diaries. Conduct promotional activities within the school level. To improve the Brand awareness conduct more promotional activities. Establish exclusive outlets of ITC around the education institutions. Provide discounts to the students during bulk purchase.

54

Saintgits Institute of Management, Kottayam

1.16 Bibliography and References

Books: Rural marketing Text by PradeepKashyap Marketing Management Text by Philip Kotler and Kevin Lane Keller Consumer Behaviour in Indian context by P.C Jain Journal of Marketing dated March 2012 Volume 76, No 2. Journal of Consumer Behaviour dated May June 2012 Volume 11, No 3

Websites:
www.google.com www.scribd.com http://www.itcportal.com http://en.wikipedia.org/wiki/Classmate_Stationery

Magazines Business Today Advertising & Management Newspapers Economic Times Business Standard

55

Saintgits Institute of Management, Kottayam

Annexure
Buying behavior and Brand awareness of stationery products with respect to Educational Institutions

School Place Contact person Contact No No of Students

: : : : :

1) 2) 3)

When does your school's academic year start? Do you supply stationery products to students? What is the mode of supply of stock? Direct supply to students Through Vendor Through Institutional Store

4)

Which all product categories do you purchase for students? Uniform Notebooks Text books Pen Pencil Art stationery (Wax Crayons, Color Pencils, Sketch Pens, Water Color ) Geometry Box

5) 6)

Which are the brands of stationery products you supply to students? Are you aware that ITC has stationery products in categories other than Classmate notebooks?

56

Saintgits Institute of Management, Kottayam

7)

When do you place the order for stationery products? January February March April

8)

When do you want vendors to deliver the stock to school? February March April May June

9)

When do you deliver the stock to students? April May June July

10) 11) 12) 13)

Do you purchase customized products with the logo of your school or regular notebooks? What is the reason for customizing the products? What do you do if there is excess stock? When purchasing stock, please rank the following from 1 to 5 in terms of importance, 1 being most important and 4 least: Quality Price Discount Credit period Timely supply/availability Have you placed this years order? What is your opinion about ITC Classmate products? ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14) 15)

57

Saintgits Institute of Management, Kottayam

Additional Questions
1) How do you rate quality of ITC stationery products?

Poor Average Good Very good Excellent

2) What are the ITC stationery products that you buy? Specify the quantity
Uniform Notebooks Text books Pen Pencil Art stationery (Wax Crayons, Color Pencils, Sketch Pens, Water Color ) Geometry Box

3) Do you intend to buy from ITC? Very unlikely Unlikely Neutral Likely Very likely

Thank you

58

Saintgits Institute of Management, Kottayam