DECLARATION

I “NAME OF THE STUDENT” declare that, I have completed

Industry Oriented Dissertation project titled as “TITLE OF THE

PROJECT” which is submitted in partial fulfillment of the

requirements for the degree of Master in Management Studies

(Marketing) of University of Mumbai during 2015-2017.

The information presented in this project is original work and does

not form any part of the project undertaken previously to the best of

my knowledge.

DATE: Signature

NAME OF THE
STUDENT
ROLL
NO.___________

1
 Acknowledgement
I am neither a research expert nor a trend spotter; I am a management student with
foundation of management principles and theories, who is curious about various
sectors and its latest happenings.

Definitely, I can’t ignore the technology, with internet as the backbone and those
search engines which helped me in building up this research project.

To being with, I am obliged to Mr. Manish Sharma (Area Executive, ITC Ltd.) &
Ms. Rajni

(Human Resource Manager, ITC Ltd.) who allotted me this chance and without their
guidance

and constructive criticism this report might have not been completed. I would like to
thank Agent

franchise owner, supervisor and individuals & for helping me in making project.

I would like to express my heart full gratitude to Mr. Deepak Kumar (Area
Executive, ITC Ltd.),

who helped me in sharpening my thinking by cheerfully providing challenging

comments and

questions. I’m also thankful to the management & all employees of ITC LTD.

Lastly, I would like to thanks to the ALMIGHTY and my parents for their moral and
financial support and my colleagues with who

m I shared my day-to-day experiences and received lots off suggestions that

improved my work quality.

Jit
en
de
r

M
B
A

EXECUTIVE SUMMARY
The report is an earnest endeavor made to understand the present market scenario of
FMCG in Shimla region and simultaneously ascertain visibility and availability of
ITC products. I was required to conduct a market study to see the coverage by ITC
products and bring out the potential and loyal retailers so that the company could
maintain the market leadership in the existing business scenario in the FMCG
market.

During the course of study I visited around 200 retail stores and conducted personal
interviews with the retailers to find out major competitors of ITC. I also used
observation technique to ascertain penetration of the ITC products and the market
potential for the new products. Also interviews were conducted to determine major
competitors in FMCG.
3
 TABLE OF CONTENT

CHAPTE PAGE
PARTICULARS
R NO. NO.
DECLARATION
CERTIFICATE
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
1. SYNOPSIS OF THE PROJECT 1
1.1 Introduction 2
1.2 Need of the Project 3
1.3 Objectives of the Study 4
1.4 Research Methodology 5
1.5 Literature Review 7
1.6 Expected Scope and Outcome of the Project 12
1.7 Limitation of the Project 14
2. 16
2.1 Xyz 19
2.2 Xyz 21
3. XYZ 22
3.1 Xyz 23
3.2 Xyz 24
3.3 Xyz 25
4 4.1 XYZ 29
4.2 Xyz 30
4.3 Xyz 30
 4.4 Xyz 31
5 XYZ 32
5.1 Xyz 33
 OBJECTIVES OF THE STUDY

The main objective of the study is:

 To know the retail coverage of ITC products.

 Identify the major competitor of ITC FMCG products in the market.

 To check the competitor’s market strategies.

 Estimate market potential for ITC FMCG products.

7
 RESEARCH METHODOLOGY:

It includes the response of ITC products from retailers at retail outlets with respect to
its competitors.

Work at retail outlets:

1) To check the availability of products.

2) To check visibility of products.

3) Identifying what would the factor to increase sale.

Data collection technique: -

1) Observation.
8
9
 Company Profile

ITC Limited is an Indian conglomerate founded on 24 August 1910. The company

(formerly known as Imperial Tobacco Company of India Limited) is currently
headed by Yogesh Chander Deveshwar. The company has its registered office in
Kolkata. It employs over 20,000 people at more than 60 locations across India.

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.

It ranks third in pre-tax profit among India's private sector corporations. ITC is one
of India's foremost private sector companies with a market capitalization of over US
$ 22 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 Week.

ITC is one of India's most valuable and respected corporations.

10
 Vision statement
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
Company’s stakeholders

The mission statement

To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value

Positioning statement
"Enduring Value. For the nation. For the Shareholder."
11
 ITC’s 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.

• Benchmark the health of each business comprehensively across the

criteria of Market Standing, Profitability and Internal Vitality.

• 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’s
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.
12
 HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the
centre of the Company's existence. The Company celebrated its 16th birthday on
August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now
renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. The Company's
ownership progressively indianised, and the name of the Company was changed to
I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio
encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels,
Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports,
Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the
Company's name were removed effective September 18, 2001.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business. It is today India's most sophisticated
packaging house.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened 'ITC-Welcome group Hotel Chola'. Since then ITC's
Hotels business has grown to occupy a position of leadership, with over 70 owned
and managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its
name was changed to Surya Nepal Private Limited (Surya Nepal).

13
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing
company and a major supplier of tissue paper to the cigarette industry. Tribeni
Tissues Division was merged with the Bhadrachalam Paperboards Division to form
the Paperboards & Specialty Papers Division in November 2002.

In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business
Division for export of agri-commodities. ITC's unique and now widely
acknowledged e-Choupal initiative began in 2000 with Soya farmers in Madhya
Pradesh. Now it extends to 9 states covering over 4 million farmers. ITC's first rural
mall, christened 'Choupal Sagaar' was inaugurated in August 2004 at Sehore. On the
rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya
Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC launched a line of high quality greeting cards under the brand name
'Expressions'. In 2002, the product range was enlarged with the introduction of Gift
wrappers, Autograph books and Slam books. In the same year, ITC also launched
'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages
and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the
company rolled out 'Classmate', a range of notebooks in the school stationery
segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in 2000. The Wills Lifestyle
chain of exclusive stores later expanded its range to include Wills Classic formal
wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into
the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills
Lifestyle became title partner of the country's most premier fashion event - Wills
Lifestyle India Fashion Week - that has gained recognition from buyers and retailers
as the single largest B-2-B platform for the Fashion Design industry. In 2007, the
Company introduced 'Miss Players'- a fashion brand in the popular segment for the
young woman.

14
 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.

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 Aashirvaad atta (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 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 like iKno, Mangaldeep, Aim, Aim Mega
and Aim Metro.

ITC forayed 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. Inizio, the signature range
under Essenza Di Wills provides a comprehensive grooming regimen with distinct
lines for men (Inizio Homme) and women (Inizio Femme). 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 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.

15
1
1
 ITC -FMCG
Cigarettes
ITC is the market leader in cigarettes in India. It’s highly popular portfolio of brands
includes

Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan,
Berkeley, Bristol and Flake.

ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger,

Saharanpur and Kolkata. These factories are known for their high levels of quality,
contemporary technology and work environment.

ITC's has presence in overseas markets as well. In the extremely competitive US

market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions.
In West Asia, ITC has become a key player in the GCC markets through growing
volumes of its brands.
18
Foods
ITC made its entry into the branded & packaged Foods business in August 2001 with
the launch of the Kitchens of India brand. A more broad-based entry has been made
since June 2002 with brand launches in the Confectionery, Staples and Snack Foods
segments.

The Foods business strives to deliver quality food products to the consumer. All
products of ITC's Foods business available in the market today have been crafted
based on consumer insights developed through extensive market research. ITC's
state-of-the-art Product Development facility is located at Bangalore.

The Foods business is represented in 4 categories in the market. These are:

1. Ready To Eat Foods

2. Staples

3. Confectionery

4. Snack Foods
19
Lifestyle retailing
ITC’s ventured into Lifestyle Retailing Business Division through its Wills Lifestyle
chain of exclusive specialty stores.

Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic
work wear,

Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and
Essenza Di Wills – an exclusive range of fine fragrances.

With a distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to the
male youth of today.
20
Education & Stationary

ITC made its entry into the stationery business in the year 2002 with its premium
range of notebooks. ITC's Education and Stationery Products are marketed under the
brands "Classmate" and "Paperkraft".

The Classmate range of products is targeted at satisfying education & stationery

needs of students & young adults. The product range includes Notebooks, Math
Instruments, Scholastic Products as well as Writing Instruments.

The Paperkraft range of products aims at satisfying the stationery needs & office
consumables need of office executives & working professional. The continuously
expanding product range under Paperkraft includes Premium Business Paper, Paper
Stationery, Markers & Highlighters.
21
Safety Matches
ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim,
Aim Mega and Aim Metro. With differentiated product features and innovative value
additions, these brands effectively address the needs of different consumer segments.
The Aim brand is the largest selling brand of Safety Matches in India.

Aggarbattis

ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and
cottage units in 2003. Mangaldeep Agarbattis are available in a wide range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini,
Anushri, Ananth and Mogra.Durbar Gold is a new offering from Mangaldeep
launched in Andhra Pradesh and has received wide consumer acceptance..
22
Personal care

ITC forayed into the Personal Care business in July 2005. In the short period since its
entry, ITC has already launched an array of brands, each of which offers a unique
and superior value proposition to discerning consumers. Anchored on extensive
consumer research and product development, ITC's personal care portfolio brings
world-class products with clearly differentiated benefits to quality-seeking
consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel
Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging
consumer response and is being progressively extended nationally.
23
WelcomGroup of Hotels
ITC-Welcome group: fastest growing Hospitality chain in India

Over 90 properties across 70 locations

5 Brands –ITC Hotels, Welcome Hotel, My Fortune, Fortune & Welcome

Heritage

15 5-Star Deluxe/ 5-Star Properties with over 3800 rooms

40 Fortune Hotels with over 3000 rooms

40 Welcome Heritage Properties with nearly 1000 rooms

Exclusive tie up with Starwood’s Luxury Collection for 10 Hotels.

First hotel chain in the world to have all its premium luxury hotels certified at
the highest LEED (Leadership in Energy and Environmental Design)
Platinum Rating
24
 MARKETING STRATEGY USED BY
ITC
ITC started an earnest exercise by creating a new brand image and corporate
philosophy by investing in new business categories like personal care, premium
apparel, rural business (e-Choupal) and foods. All along using its famed distribution
strengths built through its successful past businesses like cigarettes, paperboards and
packaging, hotels and agri business, to create synergies across its verticals and help
prop up its new businesses, like personal care and foods. ITC has a well thought-out
strategic approach. Rather than acquiring weaker brands to get into these new
segments inorganically, it created a range of new personal care and branded apparel
brands.

The first step in this well-planned strategy was the launch of Wills Lifestyle, the
premium branded apparel business in 2002.

ITC then moved on to take the competition head on in the FMCG domain, through
ITC Foods in August 2001, and personal care business, which is the focal point of
this story, in 2005. It has created good impact with its well etched-out Personal Care
Brands. Under this category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di
Wills, Vivel and the Superia were designed to take care of various sets of consumer
segments.

But behind this launch was five years of intensive on ground research of market
conditions and consumer expectations. Over one lakh consumers were surveyed
across the country to test various prototypes. Acceptance benchmark was kept as
high as 90 percent for the final products. ITC called this exercise as '3E’ approach
—explore, establish and execute. As an adage goes
'if you have to win a race, you have to clearly target the No 1', ITC too aimed the
No 1 which happened to be the formidable HUL (which still reigns over 50 percent
of the FMCG market). And ITC's target was HUL and P&G only. ITC roped in its
tobacco business veteran Sandeep Kaul to spearhead the personal care launch; it also
sought help from product formulation and branding experts in Europe and America
to formulate the fragrance, aesthetics and packaging.

25
Many of the brands have also been developed at its R&D centre. The results are there
for everyone to see. In less than four years, ITC has been able to create brand
awareness and consumer acceptance for its five product lines Essenza Di Wills,
Fiama Di Wills, Vivel Di Wills, Vivel and the Superia—each targeted at the needs,
aspirations and usage behaviour of different consumer segments. Kaul informs that
the strategy for designing personal care is that everyone is a potential consumer.

Distribution system at ITC

The process of passing down each passing the product down the chain to the next
organization through Chain of intermediaries, before it finally reaches the
consumer or end-user is known as the 'distribution chain' or the 'channel.'

A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Dealer Or wholesaler, who sells to end customers
Advertisement typically used for consumption goods

ITC follows:

CHANNEL WISE DISTRIBUTION

Here the total product is divided into different channels

like, Health care product, Personal care products, Home
products & etc.

BEAT WISE DISTRIBUTION

Here total market is divided into different areas where the products are served to
all the outlets exist in that area.

26
 SWOT of ITC
Strengths
Cigarette market is 22,000 crore and ITC has lion’s share in it.

Strong brand recognition and product portfolio.

Distribution network.

Weaknesses
Dependence on tobacco revenues

Negative Connection of Tobacco

Unrelated diversification.

Opportunities
Consumption Of personal care products

Rural Market

E-Choupal

Threats
Competition both Domestic & International
Increasing Tax on cigarettes

Regulatory restrictions on cigarettes

Ban on smoking

27
 Competitive Analysis

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods
company, touching the lives of two out of three Indians with over 20 distinct
categories in home & personal care products and food & beverages. HUL is also one
of the country's largest exporters; it has been recognized as a Golden Super Star
Trading House by the Government of India.

HUL was formed in 1933 as Lever Brothers India Limited and came into being in
1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan
Vanaspati Mfg. Co. Ltd. and United Traders Ltd.It is headquartered in Mumbai,
India and has employee strength of over 15,000 employees and contributes for
indirect employment of over 52,000 people. The company was renamed in June
2007 to ―Hindustan Unilever Limited‖.

HUL is the market leader in Indian consumer products with presence in over 20
consumer categories such as soaps, tea, detergents and shampoos amongst others
with over 700 million Indian consumers using its products. It has over 35 brands.
It’s a company that has consistently had the largest number of brands in the Top 50
and in the Top 10 (with 4 brands).

Hindustan Unilever's distribution covers over 1 million retails outlets across India
directly and its products are available in over 6.3 million outlets in India, i.e., nearly
80% of the retail outlets in India.
28
SWOT Analysis of
HUL
o
r
a
Strengths: t
e

• Str S
ong brand o
portfolio, c
price i
quantity & a
variety. l
• Inn
ovative R
Aspects. e
s
• P p
resence o
of n
Establish s
ed i
distributi b
on i
networks l
in both i
urban t
and rural y
areas. (
• Sol C
S
id Base of R
the )
company.
•
C
o
r
p
 availabili
ty of
Weaknesses: substitut
e
products.
• "M • L
e-too"
products ow
which exports
illegally levels.
mimic the • H
labels and
brands of igh price
the of some
establishe products.
d brands. • H
• Str igh
ong Advertisi
Competito ng Costs.
rs &
Changi
ng
Lifestyl
es &
Rising
Opportunitie income
s: levels,
i.e.
increasi
•
ng per
Large
capita
dome
stic income
marke of
t – consum
over a ers.
billio • E
n xport
popul potentia
ations l and tax
. & duty
• U benefits
for
ntappe setting
d rural exports
market. units.
•
 rt
restrict
ions
resulti
ng in
Threats: replaci
ng of
• T domes
ax and tic
brands
regulat
.
ory
• T
structu emporar
re. y
• M Slowdo
wn in
imic of
Econom
brands y can
• have an
Rem impact
oval on
of FMCG
impo Industry
.

29
Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio
that manufactures a wide range of consumer goods. In India Proctor & Gamble has
two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd.

P&G Hygiene and Health Care Limited is one of India's fastest growing Fast
Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores.
It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products
Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty
global brands such as Ariel and Tide in the Fabric Care segment, and Head &
Shoulders, Pantene, and Rejoice in the Hair Care segment.

Procter & Gamble entered Indian markets in 1951 with Vicks Product Inc. USA,
branch of P & G.
Procter & Gamble India since then has launched Whisper - the breakthrough
technology sanitary napkin, Ariel detergent, Ariel super soaker, Pantene Pro-V
shampoo, Head & Shoulders shampoo, Tide Detergent Powder - the largest selling
detergent in the world. In 2003, Procter & Gamble Home Products Limited launched
Pampers - world's number one selling diaper brand.

Today, Proctor & Gamble is the second largest FMCG Company in India after
Hindustan Lever Limited.
30
 SWOT Analysis of P&G

Strengths: Weakness:

• Leading Market Position • Quality control Problem

• Diversified and innovative • Decreased Revenues in
product Portfolio their Northeast Asian
• Strong Finances in past Market
years

Opportunities: Threats:

• Developing Markets • Competitors

• Demographic trends across • Rising cost of energy
the world prices
• New Regulations
31
 INDUSTRY ANALYSIS
Porter’s five force model

Porter’s Five Forces Degree Remark

Threat of new entrants Low Favorable

Threat of substitute products High Unfavorable

Bargaining power of customers High Unfavorable

Bargaining power of suppliers High Unfavorable

Competitive rivalry within an industry High Unfavorable

Interpretation: [FMCG SECTOR]

1. Threat of new entrants:

Economies of Scale Not Easy to Achieve Positive

Product Differentiation Requires huge R&D Positive

Capital Requirements High Positive

Access to Distribution Channels Not Easy Positive

Cost Disadvantages More Positive

Government Policy More Positive

Switching Costs Low Negative

32
2. Threat of substitute products:

Products with improving price/performance tradeoffs relative to present

industry products.

3. Bargaining power of customers:

Low switching cost.

Buyers are numerous and fragmented.

Considering buyer power retailers, they are able to negotiate the price with the
company.

4. Bargaining power of suppliers:

Supplier industry is dominated by a few firms.

Suppliers’ products have few substitutes.

Buyer is not an important customer to supplier.

Suppliers’ product is an important input to buyers’ product.

Suppliers’ products are differentiated.

Suppliers’ products have high switching costs.

Supplier poses credible threat of forward integration.

5. Competitive rivalry within an industry:

Using price competition.

Staging advertising battles.

Making new product introductions.

Increasing consumer warranties or service.

33
3
 Source: Data collected through Questionnaire.

Figures in parentheses indicate percentage.

Table no. 10.1.

Frequency of DS
Weekly 144 (72%)

Fortnightly 44(22%)

Twice a week 0(0%)

Monthly 12 (6%)

200

144
150 Weekly
Fortnightly
100
Twice a week
44
50
12 Monthly
0
0

The graph shows that 72% of the DS goes weekly to the retail outlets for taking
orders while 6% of the DS go only once in a month.
35
Table no. 10.2.

Frequency of the competitor’s DS

Weekly 166 (83%)

Monthly 20(10%)

Twice a week 0(0%)

Monthly 14 (7%)

200
166
150 Weekly

100
Fortnightly
Twice a week
50
20 14 Monthly
0

The data above in table and graph shows that the83% of DS of competitor’s are
going weekly on the retail outlets while 7% of the DS go only once in a month.
36
Table no. 10.3.

Are the orders delivered to you on time?

Strongly Agree 28(14%)

Disagree 72(36%)

Agree 94(47%)

Strongly Agree 6(3%)

6 28

Stron
Disag
94 Agree
72 Stron

The above pie-chart shows that 14% of the retailers are strongly agree that
there product is delivered to them on time and 47% are of them agree but 36%
of the retailers told that their orders is not delivered to them on time.
37
Table no. 10.4.

Are the orders of competitor’s delivered to you on

time?

Strongly Agree 58 (29%)

Disagree 22 (11%)

Agree 106(53%)

Strongly Agree 14(7%)

14
58
Strongly
Agree
Disagree
Agree
Strongly
Disagree
106 22

The above pie-chart shows that 29% of the retailers are strongly agree that there
product is delivered to them on time and 53% are of them agree and only 7% of the
retailers are not happy because the product is not delivered to them on time.
38
Table no. 10.5

Quality of competitor’s service

Excellent 16(8%)

Bad 14(7%)

Good 146(73%)

Average 24 (12%)

200

160

120

80
146

40

16 14 24
0
Excellent Bad Good Average

The data shows that 73% of the retailers said that the quality of the competitor’s
service is good while only 14% of retailers are not happy with competitor’s service.
39
Table no. 10.6

Best company in terms of services

HUL 64 (32%)

Frito-Lay 60 (30%)

Godfrey Phillips India 18 (9%)

Britannia 16 (8%)

Nestle 42 (24%)

24%
32%
Fritolay
Godfrey
Phillips India
8%
Britannia
Nestle
9%

30%

The above chart clearly shows that HUL & Frito-Lay are the market leader in terms
services and Nestle is also providing good services to their retailers.
40
 Table no. 10.7

Are your orders fulfilled properly?

Strongly Agree 30 (15%)

Disagree 48 (24%)

Agree 110(55%)

Strongly Disagree 12(6%)

200

160
110

120

80
48
30
40
12

0
Strongly Agree Disagree Agree Strongly Disagree

The table shows that the 70% (55% agreed & 15% strongly agreed) that the orders
they give are properly fulfilled while 30% (24% disagree & 6% strongly disagree) that
they orders they give are not properly fulfilled.
41
Table no. 10.8

ITC distribution channel

Excellent 34 (17%)

Bad 44 (24%)

Good 74 (37%)

Average 48 (24%)

200

160

120

80

40 74
44
34 38
0
Excellent Bad Good Average

The chart above shows that the 36% retailers says that ITC’s distribution channel is
good while 17% marked it as excellent and 19% said that its average, but only 22%
retailers perception about ITC’s distribution channel is bad.

42
Table no. 10.9
Are your complaints solved properly?

Strongly Agree 24(12%)

Disagree 10 (5%)

Agree 158 (79%)

Strongly Disagree 8(4%)

Sales

8 24
10

158

The data above shows that above 90% of the respondents agree that their complaints
are properly solved, whenever they face any problem
43
Table 10.10
Growth rate of ITC

Excellent 20 (10%)

Bad 12 (6%)

Good 88 (44%)

Average 80 (40%)

90
80
70
60
50 88
80
40
30
20
20
10 12
0
Excellent Bad Good Average

The graph shows that 44% respondents said that the growth rate of ITC is good
and 40% said that its average and only 6% of the respondents think that the
growth rate of ITC is bad.
44
Table 10.11
Services of ITC

Excellent 34 (17%)

Bad 44 (24%)

Good 74 (37%)

Average 48 (24%)

Sales

36
52

62
60

The chart shows that only 31% of respondents marked services of ITC as bad while
rest of them marked ITC services as Excellent, Good & Average.
45
Table no. 10.12
Rating of ITC
1 8

2 64

3 34

4 76

5 18

80

60

40 76
52
20 35
22
14
0
1 2 3 4 5

From the data collected through questionnaire it is founded that the respondents has
give overall of 3.34 points to ITC from 5 and which is above average and can also b
called as good.
46
 Findings & Recommendations

Analyzing and identifying major competitors. Keeping a tab on their strengths

and weakness

and accordingly preparing own strategy.

Increasing awareness for ITC products among the consumers and retailers.

Efficient marketing of products to retailers.

Increasing the efficiency of distribution system. Ensuring every shop in the area
must have

ITC’s product.

Appointing knowledgeable salesmen who can market products to retailers

effectively.

Tie up with regional/local newspapers running competitions at the time of festive

season.

There is vast distribution gap between ITC Bingo snacks and Frito-Lays which
has to be filled up in order to increase the sales for that ITC should consider:

(a)Width of Distribution: total number of outlets covered should be increase

in order to bridge the distribution gap. For that ITC should

(b)Increase the number of DS.

(c) Ready Stock: there are many areas around the city where supply through
loading auto is not possible for that ready-stock should be made available.

We can increase the total margin given to retailers.

47
 Limitations and Conclusion
Limitations:
The time period for the study was not enough for such a vast topic.
It was difficult for the salesmen to pinpoint the sales of a particular brand in
retail stores.
As the nature of research was exploratory so it was difficult to cover each and
every
retailer.
Many retailers don’t express their original perception and views because of
biasness.
Certain questions were not answered with justice.

Conclusion:
From the above comparison it could be inferred that besides ITC is new in the
FMCG sector but
still it has managed to reach a level at which the other strong companies are. A score
of 3.34 is a
very good score at a point when the old competitors (leaders) are at a score of 3.8.

Lays has been around for a longer time and has its loyalists. Lays scores on
flavor while Bingo is crunchier. Right now Lays has the upper hand but
Bingo has a good thing going with new and innovative products like 'Mad
Angles'.
 There is a need to put the image of our product Bingo in the mind of
customers before they come to purchase at shop.

There is need of more focus on the sales of Personal care products.

48

Retail coverage Area-Shimla

Questionnaire

Q 1) Name of the retailer

__________________________________________. Q 2) Type of
retailer ______________________________________________. Q
3) Name of the DS covering the beat
_______________________________.

Q 4) How many times does the DS comes?

a) Weekly c) Twice a week

b) Fortnightly d) Monthly

Q 5) How many times does the competitor’s DS comes?

a) Weekly c) Twice a week

c) Fortnightly d) Monthly
Q 6) Are the orders delivered to you on time?

a) Strongly agree c) Agree

c) Disagree d) Strongly disagree

Q 7) Are the orders of competitors delivered to you on time?

a) Strongly agree c) Agree

c) Disagree d) Strongly disagree

Q 8) How do you rate the services of competitors?

a) Excellent c) Good

b) Bad d) Average

Q 9) Which company is good in terms of services?

a) HUL d)Britannia

b) Frito-Lay e) Nestle

c) Godfrey Philips India

49
Q 10) Are your orders fulfilled properly?
a) Strongly agree c) Agree

b) Disagree d) Strongly disagree

Q 11) What is your perception about ITC’s distribution channel?

a) Excellent c) Good

b) Bad d) Average

Q 12) Are your complaints solved properly?

a) Strongly agree c) Agree

b) Disagree d) Strongly disagree

Q 13) What do you think about the growth rate of ITC?

a) Excellent c) Good

b) Bad d) Average

Q 14) How do you rate our services?

a) Excellent c) Good

b) Bad d) Average

Q 15) Rate ITC from 1 to 5.

a) 1 d) 2

b) 3 e) 4

c) 5
50
 Bibliography

Research Methodology - Naresh Kumar Malhotra

Retail Management - Ogden
www.Itcportal.com
www.itcindia.com
Competitive Analysis Of Itc Free Essays 1 – 20
ITC Competitors - Compare ITC Ltd with Competitors
Indian tobacco company
Hindustan Unilever Limited (HUL)
Proctor and Gamble (P&G)
51