A survey on non-traditional channels of B Natural

juices in retail market at ITC ltd

Submitted in partial fulfillment for the award of Post

Graduate Diploma in Management (PGDM)

PGDM BATCH 2015-17

Regd No. T-11018

Submitted To Submitted By

Prof. K. Venkata Lakshman K. Akhil Shiva Sai

 A survey on non-traditional channels of B Natural
juices in retail market at ITC ltd

Submitted in partial fulfillment for the award of Post

Graduate Diploma in Management (PGDM)

PGDM BATCH 2015-17

Prof. K. Venkata Lakshman Dr. Sabyasachi Rath

FACULTY GUIDE DEAN

 DECLARATION

I do hereby declare that the summer project titled A SURVEY ON NON

TRADITIONAL CHANNELS OF B NATURAL IN RETAIL MARKET AT ITC
Ltd is an original work undertaken by me, under the guidance of PROF.
VENKATA LAKSHMAN. The report submitted is a bonafide work of my own
efforts and has not been submitted to any institute/university/conference or
published before.

Full signature of the

student

Date:

Place:
 ACKNOWLEDGEMENT

Before we get into thick of things, I would like to add a few words of
appreciation for the people who have been a part of this project right from its
inception. The writing of this project has been one of the significant academic
challenges I have faced and without the support, patience, and guidance of
the people involved, this task would not have been completed. It is to them I
owe my deepest gratitude.

It gives me immense pleasure in presenting this project report on A SURVEY

ON NON TRADITIONAL CHANNELS OF B NATURAL IN RETAIL MARKET
AT ITC Ltd. With great pleasure, I express my heartiest thanks to Prof. K.
Venkata Lakshman for giving me an opportunity to work under his guidance.
He gave me the guidelines that helped me a lot in the preparation of my
research report.
I extend my sincere gratitude to Dr. Sabyasachi Rath, DEAN and Dr. M.
Madana Mohan, Program Chair for extending full support, offering guidance
and helped me in various other ways to do the project successfully.

The project could not be completed without their support and guidance.
Thanking them is a small gesture for the generosity shown.

I express my thanks to all the respondents to whom I approached, for their

support and valuable information, which has helped me in the completion of
my research project work. I also express my sincere gratitude to my parents,
friends and all those who have directly or indirectly inspired and helped me to
complete my project with unremitting zeal and enthusiasm.

K. Akhil Shiva Sai

Regd No. T-11018

FACULTY GUIDE CERTIFICATE

I Prof. K. Venkata Lakshman certify that Mr K. Akhil Shiva Sai has carried
out a Study on A SURVEY ON NON TRADITIONAL CHANNELS OF B
NATURAL IN RETAIL MARKET AT ITC Ltd as Summer Training Project
(STP) for part fulfilment for the award of Post Graduate Diploma in
Management from Vishwa Vishwani Institute of Systems and Management,
Hyderabad. Further, I hereby certify that training undertaken by him and the
Report submitted here with is genuine to the best of my knowledge and is
acceptable.
Signature:

Date:

INDEX
LIST OF CONTENTS Page No.

SI:NO CONTENTS
 1. Introduction
1.1 Introduction 1
1.2 Need for the Study 4
1.3 Scope of the study 4
1.4 Objectives of the Study 4

2 About the Company

. 2.1 Company Profile 6
2.2 Industry profile 10
2.3 SWOT Analysis of Industry 11
2.4 Competitors Profile in brief 12
2.5 SWOT Analysis of the Company 14
2.6 Literature Review 15

3.1 Research Methodology 21

3 3.2 Types of Research 21
. 3.3 Research Instrument(questionnaire) 21
3.4 Questionnaire Design 21
3.5 Data Collection Methods 22
3.6 Sampling Procedure 23
3.7 Sample size 23
3.8 Period of study 23
3.9 Pilot survey 23
3.10 Tools used for Data Analysis 24
3.11 Limitations of the study 24
3.12 Chapterisation 25

4.1 Data Analysis and Interpretation 27

4 5.1 Summary of Findings 37

. 5.2 Suggestions and Recommendations 37
5.3 Conclusion 38
Bibliography/Reference/Websites 39
5.
 ABSTRACT

This report is the sum of all the work done in ITC Ltd as an intern. The various
departments in ITC Ltd are as follows.

There are three departments namely GR1, GR2, GR4 and the one which im
assigned to is GR1 under which there more four departments namely GR1 A
which includes biscuits and noodles, GR1 B which includes Atta, Spices and
Salt, GR1 C which includes Bingo and Juices (B Natural), GR1 D which
includes Confectioneries. My project was alloted in GR1 C.

In these we were given the food department and in this the juices sector i.e. B
Natural. There were 2 tasks that were assigned to us in the juices sector.
They are as follows

Explore new channels-In this we were supposed to find new channels and
how our competitors are doing in these channels. We were supposed to
convert these new channels so that they take our product. The new channels
for B Natural were parks, theatres, bakeries, sweet shops, pan shops etc.

Visit outlets for information-We were supposed to visit various outlets and
find the reason as to why they are not taking our product. After that we had to
analyse those reasons and give a feedback to the company as to what
changes they can make to increase the sale of the product.
 CHAPTER-1

INTRODUCTION
 CHAPTER 1

1.1. INTRODUCTION

History of packaged fruit juice

1. Groups of grape pits dated to 8000 BCE show early evidence of juice
production although it is thought that the grapes may have been
alternatively used to produce wine.
2. One of the first regularly produced juices was lemonade, appearing in
16th century Italy, as an import, after its conception in the Middle East.
Orange juice originated in the 17th century. In the 18th Century, James
Lind linked citrus fruits to the prevention of scurvy, which, a century later,
lead to the implementation of the Merchant Shipping Act of 1867,
requiring all Ocean-bound British ships to carry citrus-based juice on
board.
3. A dentist, by the name Thomas B. Welch, developed a pasteurization
method that allowed for the storage of juice, without the juice fermenting
into alcohol in 1869. His method involved filtering squeezed grape juice
into bottles, sealing them with cork and wax, and then placing them in
boiling water. This method kills the yeast responsible for fermentation.
He then sold his new product as Dr Welch's Unfermented Wine.
4. In late 18th century United States, circulation of foreign fruit juices were
heavily regulated by tariffs. The McKinley Tariff Act of 1890 increased
import takes from 38 to 49.5 percent, and set taxes on fruit juices based
on the alcohol content of the drink. Juices with 18% or less alcohol were
taxed 60 cents per gallon, while anything above 18% was taxed $2.50
per proof gallon.

The market plan is one of the most important planning tools for businesses. It
is used to determine if there a market for the products or services. Recent
years has seen a switch from creating a product or service that meets the
consumers specific needs as opposed to creating demand for the products or

1
services. Once the product or service has been chosen, the market must be
analysed. This is where the market plan comes in.

A plan has four basic functions:

It tells individuals what resources are required.

It shows what specific things need to be done.
It gives goals that are measurable.
It forces the homework to be done.

The best way to start to generate a market plan is to:

Begin with the objectives of the business.

Generate a marketplace perspective
Determine any constraints or limitations
Make an outline of the key elements or tactics needed.

Marketing plans are built around the marketing concept theory, which gives
structure to identifying and satisfying the customers needs.

THE MARKETING CONCEPT

The market concept theory is based on the importance of the customers to

the business. The basis is that all policies and practices of the business
should be based upon the goal of satisfying the customers. In order to use the
marketing concept, four steps need to be achieved:

MARKET RESEARCH - determining the demands or needs of the

customers.
MARKET STRATEGY - analysis of the competitive advantage.
TARGET MARKETING - selecting which specific markets to serve.
MARKETING MIX - determining how to serve the needs for the target
markets.

MARKET RESEARCH:

The gathering of information about the present and prospective customer

needs. This is most commonly done through questionnaires and surveys.

2
MARKET STRATEGY

Small Businesses can gain a competitive advantage over larger competitors

by tailoring their products or services to meet the demands of the individual
customer. This tailoring can be done through the means of the product/service
offered, price, promotion, and distribution. The above are known as the
marketing mix. Another advantage is that small businesses offer a more
personalized interaction with the customer.

TARGET MARKETING

Small businesses often have constraints or limitations to the amount of

resources available for marketing their products or services. Therefore, they
need to target a few specific markets in which to concentrate their efforts. In
order to choose the optimal market(s) to target a segmentation of the total
market is needed. The three ways to segment the markets are:

1. Customer segmentation - identifying and marketing to the group(s) of

people that will be the heavy consumers.

2. Product Segmentation - identifying and marketing the existing bestselling

products or services to gain market share before marketing any new ones.

3. Geographical Segmentation - identifying and marketing to the specific

geographical area(s) that contain the heavy consumers.

MARKETING MIX:

This involves determining the proper mix of the product or service offered,
promotion, price, and distribution in order to meet the needs of each of the
target markets.

Product/Service Offered - need to choose whether to produce a specialized

product/service for certain customers or produce a more generic
product/service for a wide range of people.

3
Promotion - determining the proper channels or means for promotion. This
might include advertising through direct mail, flyers, point-of-purchase
displays, mass media, etc.

Pricing - the price of the product/service must be competitive, although small

businesses can often charge slightly more due to the personalized attention
that they offer.

Distribution - involves the choice between whether to distribute the

products/services through retail or wholesale means. Also it involves the
location of the business.

1.2 NEED FOR THE STUDY

Now-a-days customers prefer non-traditional channels (medical, mithai, and

bakery) for the purchase of juice while compared to kirana shops (traditional
channel). The researcher must know the behavior of juice products and
players in the market in order to increase the productivity.

1.3 SCOPE OF THE STUDY

The scope of this study is limited to only one WD (Warehouse Distribution)

which is located in rasoolpura. To cover only the routes which come under
that WD, this is at the distributer level. The respondents are the owner of retail
outlets which includes kirana shops, medical stores, mithai bandhar etc and
the numbers of respondents are 600 which include traditional outlets and non-
traditional outlets.

1.4. OBJECTIVES OF THE STUDY

1. To study the market trend and various channels which are used by the
retailers to get the product.
2. To find out the promotional tools used by ITC.

4
3. To study the customer preferences in selection of juices in various
channels from variety of brands.

5
 CHAPTER-2

ABOUT THE COMPANY

6
 CHAPTER 2

2.1 COMPANY PROFILE

ITC is one of India's foremost multi-business enterprise with a market

capitalisation of US $ 40 billion and a turnover of US $ 8 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 and as 'India's Most Admired
Company' in a survey conducted by Fortune India magazine and Hay Group.
ITC also features as one of world's largest sustainable value creator in the
consumer goods industry in a study by the Boston Consulting Group. ITC has
been listed among India's Most Valuable Companies by Business Today
magazine. The Company is among India's '10 Most Valuable (Company)
Brands', according to 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.

Multiple Drivers of Growth

ITCs aspiration to create enduring value for the nation and its stakeholders is
manifest in its robust portfolio of traditional and greenfield businesses
encompassing Fast Moving Consumer Goods (FMCG), Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business, and
Information Technology. This diversified presence in the businesses of
tomorrow is powered by a strategy to pursue multiple drivers of growth based
on its proven competencies, enterprise strengths and strong synergies
between its businesses.

The competitiveness of ITCs diverse businesses rest on the strong

foundations of institutional strengths derived from its deep consumer
insights, cutting-edge Research & Development, differentiated product
development capacity, brand-building capability, world-class
manufacturing infrastructure, extensive rural linkages, efficient trade

7
marketing and distribution network and dedicated human resources.
ITCs ability to leverage internal synergies residing across its diverse
businesses lends a unique source of competitive advantage to its products
and services.

Within a relatively short span of time, ITC has established vital brands
like Aashirvaad, Sunfeast, Dark Fantasy, Delishus, Bingo!, Yippee!,
Candyman, mint-o, Kitchens of India in the Branded Foods
space; Essenza Di Wills, Fiama Di Wills, Vivel, Vivel Cell Renew, Engage
and Superia in the Personal Care products segment; Classmate and
Paperkraft in Education & Stationery products; Wills Lifestyle and John
Players in the Lifestyle Apparel business; Mangaldeep in Agarbattis
and Aim in the Safety Matches segment. This growth has been rated by a
Nielsen Report to be the fastest among the consumer goods companies
operating in India.

Creating Enduring Value

Today, ITC is India's leading Fast Moving Consumer Goods company, the
clear market leader in the Indian Paperboard and Packaging industry, a
globally acknowledged pioneer in farmer empowerment through its wide-
reaching Agri Business and runs the greenest luxury hotel chain in the world.
ITC Infotech, a wholly-owned subsidiary, is one of India's fast-growing IT
companies in the mid-tier segment. This portfolio of rapidly growing
businesses considerably enhances ITC's capacity to generate growing value
for the Indian economy.

ITC's Agri-Business is one of India's largest exporters of agricultural products.

The ITC Groups contribution to foreign exchange earnings over the last ten
years amounted to nearly US$ 6.6 billion, of which agri exports constituted
57%. The Company's 'e-Choupal' initiative has enabled Indian agriculture
significantly enhance its competitiveness by empowering Indian farmers
through the power of the Internet. This transformational strategy has already

8
become the subject matter of a case study at Harvard Business School apart
from receiving widespread global acclaim.

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 group directly employs more than 32,000 people and the Company's
Businesses and value-chains generate around 6 million sustainable
livelihoods many of whom live at the margin in rural India.

Global Exemplar in Sustainability

Acknowledged as a global exemplar in sustainability, ITC is the only
enterprise in the world, of comparable dimensions to be carbon-
positive, water-positive, and solid waste recycling positive. A testimony
to its commitment to a low carbon growth path - over 43 % of the total energy
requirements of ITC is met from renewable sources. All ITC's premium luxury
hotels are LEED (Leadership in Energy and Environmental Design) Platinum
certified making it the "greenest luxury hotel chain" in the world. ITC's
Paperboards and Paper business is an icon of environmental stewardship.

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.

The Company continuously endeavours to enhance its wealth generating

capabilities in a globalising environment to consistently reward more than

9
5,19,000 shareholders, fulfil the aspirations of its stakeholders and meet
societal expectations.

2.1.1 PRODUCT PROFILE

ITC entered the Fruit-based juices and beverages market with the launch of B
Natural juices in January 2015. B Natural makes great tasting juices &
beverages with the goodness of fruits. The brand believes that being healthy
is a natural state, best served with great taste, fun and enjoyment.

B Natural has a range of eight exciting variants. Pick one to suit your mood
from the delicious Mango Magic, Apple Awe, Guava Gush and Litchi Luscious
to the tangy-sweet Mixed Fruit Merry, Orange Oomph and Pineapple Poise.
Our jamun variant Jamun Joy is a delight with no added sugar.

Our beverages are packaged in 6-layer Tetra Pak cartons. These cartons
protect the contents from environmental conditions and preserve their
nutritional value, so you can experience the goodness of our beverages in its
entirety.

10
2.2 INDUSTRY PROFILE

The fast moving consumer goods (FMCG) segment is the fourth largest sector
in the Indian economy. The market size of FMCG in India is estimated to grow
from US$ 30 billion in 2011 to US$ 74 billion in 2018.

Food products are the leading segment, accounting for 43 per cent of the
overall market. Personal care (22 per cent) and fabric care (12 per cent) come
next in terms of market share.
Growing awareness, easier access, and changing lifestyles have been the
key growth drivers for the sector.

What are FMCG goods?

11
FMCG goods are popularly known as consumer packaged goods. Items in
this category include all consumables (other than groceries/pulses) people
buy at regular intervals. The most common in the list are toilet soaps,
detergents, shampoos, toothpaste, shaving products, shoe polish, packaged
foodstuff, and household accessories and extends to certain electronic goods.
These items are meant for daily of frequent consumption and have a high
return.

Rural set to rise

Rural areas expected to be the major driver for FMCG, as growth continues to
be high in these regions. Rural areas saw a 16 per cent, as against 12 per
cent rise in urban areas. Most companies rushed to capitalise on this, as they
quickly went about increasing direct distribution and providing better
infrastructure. Companies are also working towards creating specific products
specially targeted for the rural market.

The Government of India has also been supporting the rural population with
higher minimum support prices (MSPs), loan waivers, and disbursements
through the National Rural Employment Guarantee Act (NREGA) programme.
These measures have helped in reducing poverty in rural India and given a
boost to rural purchasing power.

Hence rural demand is set to rise with rising incomes and greater awareness
of brands.

Urban trends
With rise in disposable incomes, mid- and high-income consumers in urban
areas have shifted their purchasing trend from essential to premium products.
In response, firms have started enhancing their premium products portfolio.
Indian and multinational FMCG players are leveraging India as a strategic

12
sourcing hub for cost-competitive product development and manufacturing to
cater to international markets.

Top Companies
According to the study conducted by AC Nielsen, 62 of the top 100 brands are
owned by MNCs, and the balance by Indian companies. Fifteen companies
own these 62 brands, and 27 of these are owned by Hindustan UniLever.

The top ten India FMCG brands are:

1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestl India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
2.3 SWOT analysis of industry

SWOT ANALYSIS OF FMCG SECTOR

Strengths:

1. Low operational cost.

2. High turnover rate.
3. Worldwide distribution both in urban and rural areas.
4. Presence of wee known brands

5. Favorable Government policy : Indian Government has passed the policies

aimed at attaining international competitiveness through lifting of the
quantitative restrictions, reducing excise duties, 100 per cent export

13
 oriented units can be set up by government approval and use of foreign
brand names etc

6. Foreign Direct Investment (FDI): Automatic investment approval up to 100

per cent foreign equity or 100 per cent for NRI and Overseas Corporate
Bodies investment is allowed for most of the food processing sector except
malted food, alcoholic beverages and those reserved for small scale
industries (SSI).

Weaknesses:
1. No entry barriers, therefore number of products are entering the market.

2. In FMCG industries there is very less scope of investment in technology

and achieving the condition of economies of scale mostly in small sectors .

Opportunities:
1. High income level.
2. Unused/unopened rural market.
3. Consumer goods pending level are high.
4. Large domestic market area.
5. There are also good opportunities available for those people who wants to
invest in business of value added products like desserts , puddings etc.

Threats:
1. Replacement of domestic brands by making no restriction on imports.
2. Rural demand has slow down.

3. In case of FMCG if the product if failed in the market then it is very difficult
to revive it back in the market.

4. Due to easy availability of other options customer tolerance and

satisfaction level is very low.

14
5. If the company launches the new product in the market then the other
competitive companies also launch the same product in the market which
results in reducing profits and increasing profits.

2.4 Competitors Profile in brief

Real (Dabur) - Today, Ral has a range of 14 exciting variants - from the
exotic Indian Mango, Mausambi, Guava & Litchi to international favourites like
Pomegranate, Tomato, Cranberry, Peach, Blackcurrant & Grape and the basic
Orange, Pineapple, Apple & Mixed Fruit.

Made from best quality fruits, Ral does not have artificial flavours and
preservatives, and offer your kids not just great taste, but also FRUIT POWER
- the power of fruits the power to stay ahead.

Tropicana (Pepsico) - Tropicana was founded in Bradenton, Florida, USA, in

1947. It is now enjoyed almost everywhere in the world. Carefully nurtured for
over 50 years, Tropicana has matured into one of the most respected
beverage brands. Tropicana is the #1 brand in packaged 100% Juice* in the
world in 2011 in off-trade volume. It is today available in 63 countries. Since
1998, Tropicana has been owned by PepsiCo, Inc. Tropicana Premium Gold
was re-launched as Tropicana 100% in 2008.

Paper boat (Hector) - Paper Boat is a brand of non-carbonated beverages

and energy drinks produced and marketed by Hector Beverages, which is
located in Bangalore, India. Hector Beverages had around 300 employees in
March 2015. Paper Boat beverages debuted for public purchase in August
2013. The product consists of traditional, authentic indigenous Indian drinks
that are packaged in single serving, flexible pouches. As of March 2015, ten
flavor varieties are produced. The beverages are produced using local spices,
fruit, flowers and pulses, and some of the fruits grow wild, such
as jamun and kokum. Hector Beverages has contracted with fruit processors
and has encouraged some farmers "to cultivate the fruits to ensure a stable

15
supply." The company has stated that it does not use artificial colouring or
preservatives in its products.

2.5 SWOT analysis of ITC Ltd

Strengths:
1. ITC has a strong and experienced management
2. Strong brand presence, excellent products advertising
3. Diversified product and services portfolio which includes FMCG, Hotel
chains, paper & packaging and agri-business
4. ITC limited employees over 25,000 people
5. Excellent research and development facilities

Weaknesses:
1. ITC is still dependant on its tobacco revenues and people have cheaper
substitutes and other brands
2. Hotel industry has not been able to create a huge market share

Opportunities:
1. Mergers and acquisitions to strengthen the brand
2. Increasing purchasing power of people thereby increasing demand
3. More publicity of hotel chains to increase market share

Threats:
1. Strict govt regulations and policies regarding cigarettes
2. Intense and increasing competition amongst other FMCG companies and
hotel chains
3. FDI in retail thereby allowing international brands

16
2.6 REVIEW OF LITERATURE

Indian retail sector has become one of the most powerful and fast growing
markets in the world. This growth influences the attitude of the Indian
customers and marketing approach of the companies. These features have
been discussed in this section.

Indian Council for Research in International Economic Relations (ICRIER)

developed research report titled Impact of organized retail on the
unorganized sector states that retail trade alone accounts for 41.83 percent
job opportunities with 14.95 million employed in the sector. Establishments
involved in retail trade claimed the highest percentage both in the rural (39.28
percent) and urban (45 percent) areas. It has been the most sought after
activity amongst own account establishments with a share of 48.45 percent. In
rural areas, 46.52 percent own account establishments were set up for retail
trade while the percentage was 51.44 in urban areas. Retail trade along with
manufacturing and social and personal service activities have emerged as the
three major non-agricultural activities giving the maximum number of jobs,
with a share of more than 72 percent of the total establishments.
Manufacturing establishments followed retail trade with 8.32 million people
employed. Social and personal service activities employed 7.35 percent
during the review period.

Barry Berman and Joel R Evans gave an overview on the impact of Retailing
on the economy .They stated that retailing is a major part of U.S. and world
commerce. According to them Retail sales and employment are vital
economic contributors and retail trends often mirror trends in a nations overall
economy. According to the Department of Commerce, annual U.S. retail store

17
sales exceed $4 trillion representing one-third of the total economy. Telephone
and mail-order sales by non-store retailers, vending machines, direct selling,
and Web generate hundreds of billions of dollars in addition to yearly
revenues, and apart from this the other services like personal consumption
expenditures on financial, medical, legal, educational etc account for another
several hundred billion dollars in annual retail revenues. Outside the United
States, retail sales are several trillions of dollars per year.

Michael Levy and Barton Weitz in the book Retailing Management have tried
to know how retailing has become an important economic activity. The book
titled Retailing Management definitely a different form of commentary on
Retailing Operations especially in the modern and the Western World. The
book discusses different facets of retailing strategies as they are useful for
developing the retail markets especially in a growing economy. In this book
the authors have tried to find out the reasons of growth of modern retailing,
different retail format, and multichannel retailing as a method of operating in a
competitive market. From the authors point of view there is a great change in
the consumer behavior which is influencing the pattern of retailing and their
strategies. The consumers have changed not only in terms of perception,
choices and ideas and identities but also their modes of buying have
significantly varied. These changes in the formats of retailing cannot convince
the consumers as to why they should buy the particular product from a
particular retail outlet. The change in the formats of branding i.e. from
manufacturing brand to retail branding or private labeling has also proved to
be of a limited impact. Therefore new methods of promotion especially
attracting and retaining consumer, changes in the POP display system are
being introduced. The buying system have changed, so does the buying
methods and promotional methods also have changed. The retailers have
tried to introduce new pricing strategy and the retail communication has
become a more important aspect of retail management in the modern world.

18
Barry Burman and Joel Evans have offered a different kind of approach to the
present system of retailing. The book Retail Management: A Strategic
Approach is basically related with understanding the marketing phenomenon
of retailing, the changes brought in due to competition amongst retailers in
terms of marketing, distribution, as well as promotional practices. The author
has concentrated on understanding and analyzing the detailed market from
different dimensions. The concept of SWOT analysis, situation analysis and
tactical analysis has been adopted by the authors to understand new trends in
retail marketing, its implications on competition as well as economics of
retailing, changes in the pricing policy and promotional techniques that are
adopted by different organized large scale retailers. The authors have tried to
understand retail institutions in terms of ownership, in terms of demand
pattern, in terms of strategic mix, in terms of emerging forms. The authors
have noticed that the non-traditional retailing especially Web Stores, or
Electronic Retail Channels are becoming more profitable and popular
because of changing tastes and styles of buyers, because of liking of the new
and emerging trend of Electronic medium. Internet has influenced not only in
terms of technology but Internet has become a social medium of
communication, which is responsible for development of E-Retailing which
has drastically influenced the strategies of retail management. This has
changed the perception, competitive strategies, distribution systems and
promotional strategies that are adopted by the retailers.

Dunne M. Patrick and Lufsch F. Robert gave a analyzed view that Customer
Services include the activities the retailer performs that influence

1. The case with which a potential customer can shop or learn about the
stores offerings

2. The case with which a transaction can be completed once the customer
attempts to make a purchase

3. The customers satisfaction with the product after the purchase.

19
These three elements are the pre-transaction, transaction, post-transaction
components of customer services

Rugman and DCruz developed a stream of research that potentially links

international business to globalization theories, pointing to the essentially,
regional rather than, global level of activity in the early 21st century. This
theoretical route again has difficulties when applied to retailing because of the
different nature of the international organization of investment in retailing and
the importance of the local market, and adoptions to it, for retailers. The
globalization studies start from an economic perspective, as in Spulbers
(2007) study of Dairy Farm and so do not address the issues of social change
that have become explicit in the recent activity of international retailers.

Dale Gillian and Banfield Graham have introduced the concepts of distribution
and retailing in elaborate manner. Distribution refers to the process of
movement of goods from the original producer to the final consumer. The line
of exchange is known as chain of distribution. In this final chain, retail is the
end point. Retailing includes all the activities involved in selling goods and
services to the final consumers for personal, non-personal use. Retailers
perform several functions such as bulk breaking, assorting, storing, advisory
services among others as a part of customer service. Manufacturers and
wholesalers expect retailers to be a part of established channel through which
customer feedback can flow back to them. The authors present the fact that
retailer is the first contact point that the customer has with the product and
therefore this fact gives him tremendous power.

Nair Suja in her book Retail Management has tried to explain the growth of
retailing in Indian context especially in the context of new economic policy,
global economic development, changes in the marketing and economic
system as well as changing pattern and classification of economic activity.
The author has tried to stress that there is a significant effect of liberalization
and privatization policies on development of retail format. According to author,
retailing has come to occupy a prominent position in todays modern society.

20
Inspite of the Indian retail revolution, it is said that over 90 percent of the 20
percent urban India are still towards the traditional retail. Now some worthy
modern organized retail format is slowly gaining acceptance and can easily be
seen to be emerging as a strong contender. The author has tried to make an
attempt to communicate various developments occurring in retail market
especially on account of evolving consumer behavior typically the evolution of
retail. It can be studied by having a look at 4 tier component i.e. consumer
behavior, trade structure, retailer-distributer-manufacturer relationship and the
competition. The profile of todays customer can be easily described as an
affluent one with a higher and most disposable income, frequent visits &
makes a longer and investment and time to explore a detailed shopping
experience. However the consumers have also revealed a willingness to pay
a premium provided they are offered better service quality at a retail counter.
In addition to these, modern consumers will also appreciate additional
facilities such as ATM, parking and in-store attendance.

David Gilbert is one of the noted authorities who in his book titled Retail
Marketing Management have identified the reasons of growth of Modern
Retailing. In this book he has tried to find out why the growth of retailing is
actually taking place. According to him more than any other business we are
witnessing the emergence of new forms of retailing and becoming more
segmented with reforms focusing on the needs of particular consumer
segment. The result of this is the development of more consumer friendly
environment. Whereas, once it was manufacturers brand that were all
important. The year 2000 has witnessed the power of retailers brand
challenging the position of suppliers. The traditional forms of independently
owned small business and co-operative have lost significant market share in
developed economy and the retail sector is now characterized by large scale,
multiple store, run by powerful and sophisticated organizations. The
increasing size of retailers and intensifying rates of competition in the markets
in which they are operating has made retailers to search for new ways to grow
their business. The author has tried to emphasize on two facts: First, retailing

21
has become a major avenue of growth and the increase in the retail
operations has changed the market dimensions. Second thing, there is an
impact of E-retailing which attracts considerable attention. However, though
initially it may not be successful but in the due course of time successful
models for retail sectors based on E-business and Electronic Media will
definitely influence the multichannel retailing system .

22
 CHAPTER-3

RESEARCH METHODOLOGY

CHAPTER 3

3.1 RESEARCH METHODOLOGY

Meaning of research:

M STEPHENSON in the encyclopaedia of social science define research as

the manipulation of things, concepts or symbols for the purpose of
generalizing to extend, correct or verify. knowledge, whether that knowledge
aids in construction of theory or in the practice of an art.

Webster's New International Dictionary defined research as, 'careful or critical

inquiry or examination in seeking facts or principles: diligent investigation the
order to ascertain something"

23
3.2 TYPE OF RESEARCH

Descriptive research:

In this survey, descriptive research is used which is most appropriate. This

research enables a researcher to explore new areas of investigation; normally
empirical problems are investigated adopting this approach. A researcher
develops his hypothesis based on his knowledge about the subject matter to
study.

3.3 RESEARCH INSTRUMENT

Questionnaire is the research instrument used in the survey. In this method, a

pre-printed list of questions arranged in sequence is used to elicit response
from the respondents. The questions in the list are asked to the customers
who are coming to showroom for buying vehicle or for enquiries.

3.4 QUESTIONNAIRE DESIGN:

The questionnaire is of structured type which consists of close-ended, open-

ended, multiple choice and dichotomous questions to suit the study.

3.5 DATA COLLECTION METHODS

Data could be broadly classified as follows:

1. Primary data
2. Secondary data

Primary data:

It is known as the data collected for the first time through field survey.
Such data are collected with a specific set of objectives to access the current
status of any variable studied. Primary data always reveal the cross section

24
picture of anything studied. This is needed in research to study the effect or
impact of any policy.

Sources of Primary Data:

1. Channel Exploration

Sale of the competitors

Frequency of supply

2. Retailers Feedback

Problems that the retailers are facing

Why they do not want the product.

Are they keeping the competitors product?

Secondary Data:

This refers to the information or facts already collected. Such data are
collected with the objective of understanding the past status of any variable.
The data collected and reported by some source is accessed and used for the
objective of the study. In this survey, secondary data is used.

Sources of Data collection:

1. Internal source:
Various internal sources like employee, books, sales activity, stock
availability, product cost etc.
2. External sources:
Libraries, trade publications, literatures, etc are some important
sources of external data.

3. Channel Exploration

Visibility of the product

Sale of secondary competitor.

25
The researcher has used primary data for the core purpose of project and
this primary data has been gathered by survey method. The researcher has
also used secondary data.

3.6 SAMPLING PROCEDURE

Convenience sampling is the sampling procedure used in the survey. This

method of sampling involves selecting the sample elements using some
convenient method going through the rigor of sampling method. The
researcher may make use of any convenient base to select the required
number of samples.

3.7 SAMPLE SIZE

Sample size is restricted to 90 Retail outlets.

3.8 PERIOD OF THE STUDY

The period of the study is 45 days.

3.9 PILOT SURVEY

Pilot survey is conducted for testing the questionnaires.30 samples have been
conducted during the Pilot Study. Pilot survey is in fact the replica and
rehearsal of the main survey.

Such a survey brings to light the weakness of the questionnaires and also of
the survey techniques. From the experience gained in this way, improvement
can be made to the questionnaire.

3.10 TOOLS USED FOR DATA ANALYSIS

The tools and technique used for analysis for the survey has been considered
as the decision based on:

Table analysis through weightage percentage

26
 Bar chart and Pie chart analysis is being considered within the project

3.11 LIMITATIONS OF THE STUDY

1. Time constraints:
As the respondents were busy, they could not spare time during
the interview schedule and hence sample size was restricted to 80
depositors.
2. Cost constraints:
Due to cost factors, survey could not be extended further
3. As the study was undertaken in Rasoolpura Warehouse Distribution, it
may not be applicable to other distributors.
4. The respondents were hesitating to answer the relevant detailed
information.

3.12 CHAPTERIZATION

Chapter -1 Introduction
Introduction Need for study
Scope of the study
Objective of the study

Chapter-2 Industry profile

27
About the company Company profile
SWOT Analysis of the Industry
Competitors profile
SWOT Analysis of the Company

Chapter-3 Research Methodology

Research Methodology Type of Research
Research Instrument
Questionnaire Design
Data Collection Methods
Sampling Procedure
Sample Size
Period of Study
Pilot survey
Tool used for Analysis
Limitations of the Study

Chapter-4 Data Analysis & Interpretation

Data Analysis & Interpretation
Chapter-5 Summary of Findings
Statistical Findings
Suggestions & Recommendations
Conclusion

28
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

29
3Q) Outlet Type?

Interpretation:

From the above pie chart we can say that there is more number of medical
shops with 57.1% followed by Bakery with 31% by this we can say that the
increase of medical is growing since everyone is becoming health conscious.

4Q) Outlet Beat name?

Beat Name No. of

Respondents(Retailers)
Diamond Point 16
Sikh village 10
rasolpura 10
Old bowenpally 8
Hasmathpet 8
Shamlal Building 7
Patigadda 6
New Bowenpally 6
Mayuri Marg 5
West maradpally 4
Kavadiguda 2
total 90

Interpretation:

30
From the above table we can say that diamond point has more market
potential followed by sikh village with 10.

5Q) Are you aware of B Natural juices?

Interpretation:

84.5% of people are aware of B Natural juices it a very good point for ITC by
this we can say the advertise impact is very high.

6Q) Do you have B Natural distribution service?

31
Interpretation:

Only 27.4% of the retailers have the distribution service ITC should improve
their approach and increase the distribution services to as many outlets as
possible.

7Q) Reasons for not opting B Natural juices?

Interpretation:

32
32.8% say due to lack of customers and offers this is a place where ITC
should improve by giving exciting offers to the retailers and increase more
customer awareness.

8Q) what are the beverages customers prefer the most?

Interpretation:

Juices are leading with 47.4% by this we can say is juice products are
trending in the market.

9Q) What are the juices available other than B Natural?

Interpretation:

33
Frooti 67.5% is available in almost all the outlets since its distribution service
is very good and since the customers are also demanding it.

10Q) Are you referring B Natural to the customers?

Interpretation:

82.6% of the retailers say that they refer B Natural to the customers its a very
good thing for the ITC as the retailers are also referring the product to the
customers.

11Q) Do you have availability of B Natural 200ml tetra packs?

34
Interpretation:

95.8% of retailers have 200ml tetra packs which is starting size and which is
also the most sold size.

12Q) What are the weekly sales of B Natural 200ml Tetra packs?

Interpretation:

95.7% sell 1-10 packs for week on an average its quite a good amounts units.

13Q) Do you have availability of 1Litre Tetra pack?

35
Interpretation:

Only 40.9% of retailers are opting to sell 1Ltr tetra packs which should be
improved and its the biggest size available in B Natural.

14Q) What are the weekly sales of 1Ltr B Natural juices?

All the outlets who have the B Natural 1 Litre service sell 1-5 units on an
average per week.

36
15Q) Are you satisfied with B Natural Distribution service?

Interpretation:

87% of the retailers who have service are satisfied with the distribution service
its a place where ITC should improve.

16Q) Are you satisfied with the trade promotions offered by ITC?

37
Interpretation:

69.6% retailers are only satisfied with the trade promotions offered by the ITC
its a bad sign.

17Q) What is the channel which you opt for purchasing the stock?

Interpretation:

100% of the Non-traditional outlets prefer warehouse distribution service

which is a very good thing as there are encouraging the warehouse
distribution service.

18Q) Customer attitude towards B Natural?

38
Interpretation:

69.6% of the outlets say that is the customers attitude towards the product is
4/5 it is also a major place where ITC should develop.

39
CHAPTER-5

40
 CHAPTER-5

5.1 SUMMARY OF FINDINGS

1. The awareness of the B Natural product is nice and it shows that the
advertisement impact.
2. Many of the retailers arent opting the service because of lack of
customers and offers ITC should improve on that.
3. There are 2 sizes available in B Natural 200ml and 1 Ltr and the 200ml
pack has more sales and is available in more number of outlets.
4. The trade promotions offered by ITC is not satisfactory.
5. The trending in the market is juices.
6. All the retailers are opting warehouse distribution service

5.2 SUGGESTIONS

On the basis of research suggestions are given:

1. Customer awareness regarding the product is high but when it comes to

the retailer its not acceptable should increase awareness to the retailer.
2. Display of the product is lacking in the retail shop, should provide displays
so that it can catch customer eye.
3. Should improve in the pricing strategy as the competitor is providing at
more reasonable cost when compared.
4. Exciting offers should be provided for the retailers based on their purchase
and also to provide offers for the end users as well.
5. Logistics should be improved and deliver as promised.
6. Informing about the features and benefits of the product helps to increase
in sale.
7. Continuity of the service should be there.
8. Should concentrate more in the non-traditional channels (medicals, mithai,
bakery etc)
9. Increase the awareness by conducting promotional activities in front of
malls or any supermarkets.

5.3 CONCLUSION
41
I conclude that many of the customers prefer non-traditional channel for
purchasing juices. Juices are the most trending right now in the market. ITC
has to improve in selling 1 Litre tetra packs, to improve trade promotions for
the retailers and also to improve the quality of service as some of the retailers
arent satisfied with the distribution service.

42
BIBILIOGRAPHY

http://smallbusiness.chron.com/growth-nontraditional-retailing-influenced-
channel-profitability-78497.html

http://www.itcportal.com/businesses/fmcg/foods/b-natural.aspx

http://www.bnatural.in/Default5.aspx

http://info.shine.com/industry/fmcg/6.html

http://www.itcportal.com/about-itc/profile/

http://shodhganga.inflibnet.ac.in/bitstream/10603/9375/14/14_chapter
%203.pdf

http://www.mbaskool.com/brandguide/fmcg/1485-itc-limited.html.

http://freaksense.com/swot-analysis-of-fmcg-product-sector/.

http://nawabzade.com/full-project-on-swot-analysis-of-fmcg-industries/

http://www.pepsicoindia.co.in/brands/tropicana.html

http://www.dabur.com/in/en-us/products/real

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44