Introduction

ITC- India Limited Type

Public (BSE:ITC)

Founded- August 24, 1910Radha Bazar Lane,

Kolkata, India

Headquarters- Virginia House, Kolkata, India

Key people - Y C Deveshwar, ChairmanK Vaidyanath, Director, CFO: Partho Chatterjee

Industry- Tobacco, Foods, Hotels

Products- Cigarettes, Packaged Food, Hotels, Apparel

Revenue- $4.75 billion USD (2006)

Employees- 20,000 (2006)

Website- http://www.itcportal.com/
 ITC

Is one of India's foremost private sectors companies with a market capitalization of nearly US $ 15
billion and a turnover of over US $ 4.75 billion. ITC is rated among
theWorld's Best Big Companies, Asia's 'Fab 50' and the World's most ReputableCompanies
by Forbes magazine, among India's Most Respected Companies by Business World and among
India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands', in a study conducted by Brand Finance and published by the
Economic Times.

It has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,

Packaging, Agri Business, Packaged Foods & Confectionery, Information Technology,Branded
Apparel, Greeting Cards, 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 and Greeting Cards.

7As 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

 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 hotelier. Over time, the strategic forays into new businesses are expected to
garner a significant share of these emerging high-growth markets in India.
 Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the
country's biggest foreign exchange earners (US $ 2.8 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.

 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.

 Production facilities and hotels have won numerous national and internationalawards for
quality, productivity, safety and environment management systems. ITC wasthe first
company in India to voluntarily seek a corporate governance rating.

 The employees of ITC are over 21,000 people at more than 60 locations across India. The
Companycontinuously endeavors to enhance its wealth generating capabilities in a
globalizingenvironment to consistently reward more than 3,95,000 shareholders, fulfill
theaspirations of its stakeholders and meet societal expectations. This over-arching vision
of the company is expressively captured in its corporate positioning statement:
 FACTORS OF ITC

 CARBON POSITIVE CORPORATION

Due to global warming we are noticing climate changes in the environment. These are the result of
large- scale emission of gases such as carbon-di-oxide. This can result too many harsh
consequences.

Itc has been a company which has worked for reducing green house gas emission. All ITC
businesses work towards minimizing energy consumption and where ever possible use
environmental friendly products. ITC has implemented several CDM projects under the Kyoto
protocol and ensured that there is proper sequestration of carbon dioxide through large scale social
and farm forestry initiatives. All this is done through a properly established technique to reduce the
total carbon dioxide in the atmosphere.

Energy efficiency practices of ITC have helped the company to achieve a world class standard of
energy utilization in many units. 30.9% of the energy consumption of this company is from
renewable resources. Itc has chosen wind energy as a focus area for optimizing its positive
environmental foot prints. The company has already invested in wind generation plants in Tamil
nadu to meet its energy requirements for their plant in Chennai.

 WATER POSITIVE CORPORATION.

India has a very troubled water future. It has access to less than 4% to fresh water supply and the
condition is likely to be worsening in the near future.

Itc sustainability initiative focuses on the following:

Itc has been able to achieve the lowest specific water consumption through benchmarking,
conservation and audit.

Itc recycles all waste water, hence they not only reduce fresh water intake but they also prevent
pollution of fresh water resources.

Itc has managed to create a positive foot print through rain water harvesting between their own
units and watershed areas.
  WASTE RECYCLING POSSITIVE.

There is a significant amount of waste being disposed through land filling and dumping, hence
waste management is an area of serious concern in India.

Most of the landfills and dumping sites are serious health hazards to people living in the
neighbourhood of these areas. This not only causes health problems but also causes soil and water
contamination.

All the factories of itc such as the cigarette plant at Bengaluru , Saharanpur, munger and Kolkata,
the ITC green centre at Gurgaon, surya, Nepal, citrate factory at simla, and also the ITC hotels-
maurya, maratha, grand central, sonar , windsor, Mughal , etc , all recycle almost the entire waste
generated , i.e , more than 99 % out of their operations.

PROBLEMS FACED BY ITC

ITC had to face many external problems too which can be divided into political,economical,social
and technological .

POLITICAL PROBLEM :The agriculture produce marketing act required to create mandis so that
there is an equitable distribution of gains among producers, consumers and traders.

Due to its inefficiency the mandis were not able to serve the requirment of the farmers as well to a
company like ITC.

ITC had to face a fundamentel regulatory barrier which prohibited pocurment outside the mandis.

ITC had to pursue the government that the company would operate according to the nature and
requirment of the act. It had to convince the commission that e-chopal would benefit both market
and farmers.

Later on the government waived off the mandi tax which the company decided to pay in order to
maintain good relation with the government.

Economic issues : ITC e-chopal has considered all poverty, farming , poor lively hood as inter
connected issues.

ITC has qucikly impacted whole agricultural chain from seed to money in the bank. It views rural
poverty as the result of how rural society and rural economy has structured.

Due to the ITC initiative of e-chopal there is a 10 % rise in the income of the farmers and incomes
from farming and support services has risen by over 38%in 2000.
 STRATEGIES OF ITC COMPANY
ITC’s corporate strategies are :

 Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organisational 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 organisation by nurturing talented and focused top
management teams for each of the businesses.
 Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

ITC in FMCG

 CIGRETTES:

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ithas a
leadership position in every segment of the market. It's highly popular portfolio of brands includes
Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley,
Bristol and Flake.
The Company has been able to build on its leadership position because of its single minded focus
on value creation for the consumer through significant investments in product design, innovation,
manufacturing technology, quality, marketing and distribution.All initiatives are therefore worked
upon with the intent to fortify market standing in the long term. This in turns aids in
designing products which are contemporary and rele vantto the changing attitudes and evolving
socio economic profile of the country. This strategic focus on the consumer has paid ITC
handsome dividends.
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 sinc June 2002 with brand
launches in the Confectionery, Staples and Snack Foods segments .The Foods business is today
represented in 4 categories in the market. These are:* Ready To Eat Foods* Staples*
Confectionery* Snack Foods In order to assure consumers of the highest standards of food safety
and hygiene, ITC is engaged in assisting outsourced manufacturers in implementing world-class
hygiene standards through HACCP certification. The unwavering commitment to
internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all
its 6 brands:* Kitchens of India* Aashirvaad* Sunfeast* mint-o* Candyman* Bingo!

Lifestyle Retailing :

ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence
through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle,the fashion
destination, offers a tempting choice of Wills Classic work wear, Wills Sportrelaxed wear, Wills
Clublife evening wear, fashion accessories and Essenza Di Wills – anexclusive range of fine
fragrances and bath & body care products and Fiama Di Wills - arange of premium shampoos and
shower gels. Wills Lifestyle has also introduced WillsSignature designer wear, designed by the
leading designers .

Wills Classic:

work wear was launched in November 2002, providing the premium Consumer a distinct product
offering and a unique brand positioning .ITC forayed into the youth fashion segment with the
launch of John Players in December 2002 and John Players is committed to be the No. 1 fashion
brand for the youth.

Education & Stationary products:

ITC made its entry into the stationery business in 2002 with its premium range of notebooks,
followed in the year 2003 with the more popular range to augment its offering .ITC's stationery
Brands are marketed as "Classmate" and "Paperkraft", with Classmate addressing the needs of
school goers and Paperkraft targeted towards college students and executives.
Agarbattis

As part of ITC's business strategy of creating multiple drivers of growth in the FMCGsector, the
Company commenced marketing Agarbattis (incense sticks) sourced fromsmall-scale and cottage
units in 2003.

Hotels:

ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, whichwas then
rechristened ITC Chola. Since then the ITC-Welcomgroup brand has becomesynonymous with
Indian hospitality. With over 90 hotels in 77 destinations

Packaging :

ITC's Packaging & Printing Business is the country's largest convertor of paper board into
packaging. It converts over 50,000 tonnes of paper and paperboard per annum into a variety
of value-added packaging solutions for the food & beverage, personal products ,cigarette, liquor,
cellular phone and IT packaging industries. It has also entered the Flexibles and Corrugated
Cartons business.

Agri Business:

e-Choupal
The unique e-Choupal model creates a significant two-way multi-dimensional channel which can
efficiently carry products and services into and out of rural India, while recovering the associated
costs through agri-sourcing led efficiencies. This initiative now comprises about 6500 installations
covering nearly 40,000 villages and serving over 4million farmers.

Leaf Tobacco:

ITC is the largest buyer, processor and exporter of leaf tobaccos in India - creating a global
benchmark as the single largest integrated source of quality tobaccos. Serving customers in 50
countries across more than 70 destinations, ITC co-creates and delivers value at every stage of the
leaf tobacco value chain.
Information Technology:

ITC Infotech offers IT services and solutions across five key industry verticals: Banking ,
Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) & Retail,
Manufacturing & Engineering Services, Travel, Hospitality & Transportation and Media&
Entertainment. ITC Infotech, a global IT services company, is today one of India’s fastest growing
IT services and solutions providers.

Initiatives taken
- Let’s put India first:

ITC is committed to a national agenda of raising agricultural productivity and making therural
economy more socially inclusive. ITC believes that the urgency and scale of thesetasks make
market linked solutions and innovations more effective and sustainable thancapital intensive
approaches.

 Social & farm Forestry

ITC has helped to bring nearly 13,000 hectares of wasteland under social forestry benefiting more
than 16,000 poor households in 466 villages .ITC’s social forestry programme simultaneously
addresses the livelihood problems of marginal farmers and the ecological imperative of
regenerating biomass and nurturing depleted soils.

 Watershed Development

ITC’s watershed initiatives have led to an improvement in soil and moisture regimes – there is
more land under irrigation, water tables have risen and farmers can harvest more than one crop,
making it possible to live off the land round the year.

 Agricultural Development

ITC offers facilitation to farmers to form agri-business societies, pool knowledge and resources,
improve productivity and quality, and reach out beyond local markets to sell at better margins.

 Women Empowerment

The confidence and skills generated among women by forming credit groups and managing
businesses become assets to their communities.
  Livestock Development

The milk marketing co-operatives represent exemplary change in rural enterprise, away from
dependence on agriculture and local markets.

 Primary Education

School going becomes an empowering process for the child and the community. The awareness of
entitlements like education and health grows, along with a sense of the community’s
responsibility.

ITC Pricing strategy:

The pricing of the ITC food division depends upon the Customers’ demand schedule, the cost
function and the competitors’ price. The pricing of the company is such that it cat ersto the need of
all income groups of people but special provision has been kept for Low and middle income group,
and their pricing are competitive with respect to other players like Britannia, Parle and Bris k
farm. The company follows the Going rate pricing that is the price of the product depends up on
the competitors price. The firm chooses pricing more or less the same as Market leader.

ITC Promotional activities:

A particular budget is allocated for the promotion of the products, the local promotion scheme is
decided by the Area Sales Manages, it give its suggestion to the District office and that is
forwarded to the Head Quarter in Kolkata. In another promotional scheme for Biscuits a particular
number of cases is given freely tothe distributors according to the amount of sale they make, this
was i.e. of the number of free cases that a particular distributors gets, off them acertain part is
reserved for the retailers and customer if they buy a certain level of biscuitquantity.

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Statements Analysis Analysis of the data on Ratio :Ratio analysis is Natarajan`s view on ITC
Gopinath Natarajan, EVP, IIFL PR e MIA feels that, overall with a non- cigarette income revenue
growing, the delta from that ITC LIMITED Review by Former Sr. Logistics Executive: Good
leveraging distribution networks for competitive advantage: a case of fmcg channel management at
itc ltd. prof. ray titus*; dr. literature review Literature Review.

Attached is an annotated bibliography of the research we conducted on the digital divide. In order
to perform a comprehensive Review of Literature used in place of long-term debt whenever their
use would lower the average cost of capital to the firm.

They suggested Harvard Business Review ranked ITC Chairman Y C Deveshwar as the 7th Best
Performing CEO in the World. ITC conferred the prestigious ‘World …Literature Review on
Financial Statements Analysis. Only available on StudyMode . Topic: Ratio, adopted by ITC .ltd
(biscuit divison) and the impact of it on ITC Literature Review A.

ITC Product Profile Winning brands are the badge of a country’s economic Sharpe’s Single Index
Model and its Application Literature Review average returns of the individual stock ITC ltd.,
FOOD SECURITY – A free PowerPoint PPT presentation (displayed as a Flash slide show) on
PowerShow.com - id: bdcdd-M2EzZAfter a week of storms and high water, Hurricane Harvey has
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property Rabindranath Tagore FRAS .

ITC may be a late entrant in the Rs 29,000-crore personal care industry growing at 12 per cent
every year, but it sure Is making competition count. Some number crunching will establish that the
cigarette-to-hotels major has indeed made inroads into an intensely competitive market often
marked by pressured margins.

In just two years, ITC's personal care business has notched up market share of about 5 per cent
(volume) in soaps, and around 3.4 per cent in shampoos .Brands Vivel and Superia are each
estimated to be more than Rs. 200 crore per annum in consumer spend. Putting those numbers in
context is a IMRB household panel survey in February 2010 that indicates Vivel and Superia soaps
and shampoos have been purchased by over seven crore households, representing nearly 30 per
cent of Indian house holds.What helped ITC cut across the clutter is probably its product
proposition: a wide range of products meeting international quality standards but developed on the
basis of Indian consumer experience.

Of course, chief executive of personal care strategic business unit, Sandeep Kaul, believes it's not
one selling proposition, but several that have helped ITC carve out a place in the market.

 Rural market is one of the best opportunity in India for soaps and shampoo sector.In this
sense, I can say that rural market is future of FMCG(soaps and shampoos).As the research
of PURBA BASU (FACULTY OF ICFAI, B. SCHOOL), Thelifestyle of rural consumers
is changing.

 Rural market and marketing strategy have become latest marketing buzzword for most
of FMCG majors.

 She added thestrategies of different FMCG companies for capturing rural market like
Titan’ssonata watches, coca cola’s 200ml bottles, different marketing strategies of HLLand
Marico Ltd. She takes into consideration the study of national council for applied economic
 research (NCAER). According to the NCEAR projections, thenumber
of middle and high income household In rural India.India is expecting to grow from 80
million to 111 million by 2007.

 In urban Indiasame is expecting to grow from 46 million to 59million. Thus , absolute

size of rural India is expecting to grow double that of urban. increasing demand.
Factorslike village psyche, strong distribution network, and market awareness.

 This implies that rural market has huge potential for marketer to meet up the are few
prerequisites to make dent into rural markets. the model is of the stolid Dutch Anglo
conglomerate Unilever Group, which has enjoyed century long presence in India through
its subsidiary Hindustan lever Ltd.

 It was Hindustan lever Ltd which several years ago popularized Idea of selling its products
in tiny packages.

 Its sachets of detergent and shampoos are in great demand in rural Indian
villages.Britannia with it low priced Tiger biscuits has become success story in rural
market. The characteristics of rural market in terms of low and spared out population and
limited purchasing power make it difficult market to capture.

 The bottom of pyramid marketing strategies and 4 P’s model of availabilities, affordability,
acceptability and awareness provide us with a means of developing strategies to tackle
marketing issues to marketing soaps and shampoos in rural India.

 Some successful stories like Garmin phone in Bangladesh .As per concern of my research,
it is detail study of soaps and shampoos used by rural consumers.

 It will provide the detail information about consumer preference s towards soaps
and shampoos which is too unique and different from above researches.

. "We offer a superior value proposition to the consumer and we have anintimate understanding of
consumer insight. And, of course, the aesthetics. These are the cornerstones of
our value proposition," Kaul says. No doubt. At ITC, there is a lot that goes into understanding the
consumer. The company spent close to four years re searching at its centre in Bangalore before the
first product from the personal care stable rolled out.
"That is why our products have been accepted by the consumer. We probably have the fastest
growing set of brands in the market," Kaul points out before adding rather modestly that the base
is also small .ITC's non-cigarette fast moving consumer goods (FMCG) business -
which contributes close to 50 per cent to the company's turnover - registered a strong set
of numbers in the third quarter of 2011 and among the highlights was acontinued reduction in loss
reported by the FMCG business.

While revenues increased 23.8 per cent year-on-year to Rs1,104 crore, losses came down by Rs 12
crore to Rs 74 crore, though sequentially it increased due to new launches.Angel Broking Research
expects the revenue traction in the segment to continue and loss to reduce albeit at a slower pace
than FY2010, though breakeven is likely to be achieved only in FY2013.Engagement with
consumers, promotional activities and new age consumer connect avenues have had their roles
to play, but it is the relentless rollout of products that has given ITC's

Market share

ITC Limited (BSE: 500875) public conglomerate company headquartered in Kolkata, India.[1] 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 Yogesh Chander Deveshwar. It employs over 26,000 people
at more than 60 locations across India and is listed on Forbes 2000. 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.

ACHIEVMENTS OF ITC SO FAR:

Achievements/ recognition:

 In 2014 –ITC has been voted among the top two ?Buzziest Brands? in the ?Corporate? category
by ?afaqs?, one of the world?s largest marketing and advertising portals.

 2013 – ITC Infotech becomes the 1st PTC Authorized Training Partner in India
ITC Hotels ties up with RP Group Hotels & Resorts to manage 5 hotels in India and Dubai
Fiama Di Wills Launches Second Edition of Couture Spa Range of Gel Bathing Bars

 In 2012– Mr Y C Deveshwar, Chairman, ITC Limited has been ranked the 7th Best Performing
CEO in the World in the global scorecard on '100 Best Performing CEOs in the World'
published by the Harvard Business Review (HBR) in its January–February 2013 edition.

 ITC Bags Asian CSR Award–2012

 ITC Infotech collaborates with Oracle to develop the Oracle Airline Data Model, part of Oracle's
Passenger Data Management solution for the Airline Industry
ITC launches its iconic hotel in ChennaI

 2011– ITC Hotels adjudged 'People's Choice – Most Trusted Hotel Brand

 2011 –ITC Infotech launches first indigenously developed sustainability management and
reporting tool
 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter of Cigarettes for
2008 by the Tobacco Board based on previous three years' performance.

 Occupational Health and Safety Award 2007 for Excellence in Safety Management to the
Bengaluru, Saharanpur and Kolkata factories from the Royal Society for Prevention of
Accidents (ROSPA), U.K

 5 Star Health and Safety Rating in 2007 from the British Safety Council to the Bengaluru,
Munger, Kolkata and Saharanpur factories and the 'Sword of Honour' for Bengaluru &
Saharanpur factories in 2006.

Dealing with People in the Organisation

 In dealing with each other, directors, senior management and employees shall uphold the
values which are at the core of our HR Philosophy - trust, teamwork, mutuality and
collaboration, meritocracy, objectivity, self respect and human dignity.

 Indeed, these values form the basis of our HR management systems and processes. In
selection and recruitment, while meritocracy will be a prime criterion, managers will
scrupulously consider all factors that go towards securing the interests of the Company.

 ITC will focus on meritocracy, equity and upholding of Company values in all people
processes including performance management systems, appraisals, remuneration and
rewards.

A Gender Friendly Workplace

 As a good corporate citizen, ITC is committed to a gender friendly workplace. It seeks to

enhance equal opportunities for men and women, prevent/stop/redress sexual harassment
at the workplace and institute good employment practices.

 Sexual harassment includes unwelcome sexually determined behaviour such as:

unwelcome physical contact; a demand or request for sexual favours; sexually coloured
remarks; showing pornography and any other unwelcome physical, verbal or non-verbal
conduct of a sexual nature.

 ITC maintains an open door for reportees; encourages employees to report any harassment
concerns and is responsive to employee complaints about harassment or other unwelcome
and offensive conduct. A committee has been constituted to enquire into complaints and to
recommend appropriate action, wherever required.
  ITC demands, demonstrates and promotes professional behaviour and respectful treatment
of all employees.

Relationships with Suppliers and Customers

All directors, senior management and employees shall ensure that in their dealings with suppliers
and customers, the Company's interests are never compromised. Accepting gifts and presents of
more than a nominal value, gratuity payments and other payments from suppliers or customers will
be viewed as serious breach of discipline as this could lead to compromising the Company's
interests.

Legal Compliance

It is the Company's policy to comply fully with all applicable laws and regulations. Ensuring legal
and regulatory compliance is the responsibility of the Chief Executives of the Businesses and the
Divisional Management Committees.

The Company cannot accept practices which are unlawful or may be damaging to its reputation.
Divisional Management Committees must satisfy themselves that sound and adequate
arrangements exist to ensure that they comply with the legal and regulatory requirements
impacting each business and identify and respond to developments in the regulatory environment
in which they operate.

In the event the implication of any law is not clear, the Company's Legal Department shall be
consulted for advice.

Health and Safety

The Company attaches great importance to a healthy and safe work environment. ITC is
committed to provide good physical working conditions and encourages high standards of hygiene
and housekeeping. Particular attention should be paid to training of employees to increase safety
awareness and adoption of safe working methods, particularly designed to prevent serious or fatal
accidents.

Environment Policies

The Company believes that commitment to sustainable development is a key component of

responsible corporate citizenship and therefore deserves to be accorded the highest priority.

Accordingly, the Company is committed to Best Practices in environmental matters arising out of
its business activities and expects each business to fully demonstrate this commitment.
In addition to complying with applicable laws and regulations, Businesses must establish
procedures for assessing the environmental effects of their present and future activities. They
should adopt Best Practices in their environmental policies and procedures.

Personal Conduct

All directors, senior management and employees have the obligation to conduct themselves in an
honest and ethical manner and act in the best interest of the Company at all times. They are
expected to demonstrate exemplary personal conduct through adherence to the following:

Avoidance of Conflict of Interest

All directors, senior management and employees must avoid situations in which their personal
interest could conflict with the interest of the Company. This is an area in which it is impossible to
provide comprehensive guidance but the guiding principle is that conflict, if any, or potential
conflict must be disclosed to higher management for guidance and action as appropriate.

Transparency and Auditability

All directors, senior management and employees shall ensure that their actions in the conduct of
business are totally transparent except where the needs of business security dictate otherwise. Such
transparency shall be brought about through appropriate policies, systems and processes, including
as appropriate, segregation of duties, tiered approval mechanism and involvement of more than
one manager in key decisions and maintaining supporting records. It shall be necessary to
voluntarily ensure that areas of operation are open to audit and the conduct of activities is totally
auditable.

Protection of Confidential Information

No director, senior management and employee shall disclose or use any confidential information
gained in the course of employment/ association with the Company for personal gain or for the
advantage of any other person. No information either formally or informally shall be provided to
the press, other publicity media or any other external agency except within approved policies.
Dealing in Securities of the Company by Employees

 Employees, who are granted Options under the Company's Employee Stock Option
Schemes (ESOS), and their 'Immediate Relatives', shall not buy and / or sell any .

 Employees, who are not granted Options under ESOS, and their 'Immediate
Relatives', shall not buy and / or sell shares of the Company in excess of 2,000
shares in aggregate in a calendar quarter.
 Employees and their Immediate Relatives shall not enter into any derivative
transactions with respect to the shares of the Company.

(Immediate Relative for this purpose means spouse, and includes parent, sibling, and child if they
are financially dependent on the employee.)

Company Facilities

No director, senior management and employee shall misuse Company facilities. In the use of
Company facilities, care shall be exercised to ensure that costs are reasonable and there is no
wastage.

Leading by Example

The organisation's directors and senior management set the professional tone for the Company.
Through both their words and their actions, the organisation's leadership conveys what is
acceptable and unacceptable behaviour. ITC's directors, senior management and employees must
constantly reinforce through their actions and behaviour that ITC's stated beliefs of responsible
corporate citizenship are rooted in individual conviction and personal integrity.

Waivers

Any waiver of any provision of this Code of Conduct for a director, senior management or
employee must be placed for approval before the Company's Board of Directors / Corporate
Management Committee, as appropriate.
Non Adherence

Any instance of non-adherence to the Code of Conduct should be brought to the attention of the
immediate reporting authority, with copies to the relevant Divisional Chief Executive / Head of
Corporate Department and the Head of Corporate Human Resources. In respect of senior
management, any such instance should be brought to the attention of the Chairman of the Audit
Committee with a copy to the Company Chairman.

Duties of Independent Directors

The duties of Independent Directors of the Company, as laid down under Schedule IV to the
Companies Act, 2013, are incorporated herein pursuant to Clause 49 of the Listing Agreement
with Stock Exchanges. It shall be the duty of Independent Directors to:

a. undertake appropriate induction and regularly update and refresh their skills, knowledge
and familiarity with the Company;
b. seek appropriate clarification or amplification of information and, where necessary, take
and follow appropriate professional advice and opinion of outside experts at the expense of
the Company;
c. strive to attend all meetings of the Board of Directors and of the Board Committees of
which they are a member;
d. participate constructively and actively in the Board Committees in which they are
chairpersons or members;
e. strive to attend the general meetings of the Company;
f. ensure, where they have concerns about the running of the Company or a proposed action,
that these are addressed by the Board of Directors;
g. keep themselves well informed about the Company and the external environment in which
it operates;
h. not to unfairly obstruct the functioning of an otherwise proper Board or Board Committee;
i. pay sufficient attention and ensure that adequate deliberations are held before approving
related party transactions and assure themselves that the same are in the interest of the
Company;
j. ascertain and ensure that the Company has an adequate and functional vigil mechanism and
ensure that the interests of a person who uses such mechanism are not prejudicially affected
on account of such use;
k. report concerns about unethical behaviour, actual or suspected fraud or violation of the
Code of Conduct;
l. act within their authority and assist in protecting the legitimate interests of the Company,
shareholders and its employees;
m. not to disclose confidential information, including commercial secrets, technologies,
advertising and sales promotion plans and unpublished price sensitive information, unless
such disclosure is expressly approved by the Board of Directors or required by law.
Whistleblower Policy

1. Philosophy

ITC believes that every employee is a trustee of its stakeholders and must adhere to the Company's
Code of Conduct (hereinafter referred to as ‘ITC Code') and conduct himself or herself at all times
in a professional and ethical manner.

2. Purpose

The "Whistleblower Policy" encourages Directors and employees (hereinafter referred to as

'employees') to bring to the Company's attention, instances of unethical behaviour, actual or
suspected incidents of fraud or violation of the ITC Code, that could adversely impact the
Company's operations, business performance and / or reputation. The Company will investigate
such reported incidents in an impartial manner and take appropriate action to ensure that the
requisite standards of professional and ethical conduct are always upheld.

3. Policy

It is ITC's Policy:

(a) To create an environment where every employee feels free and secure to report specific
incidents of unethical behaviour, actual or suspected incidents of fraud or violation of the ITC
Code;

(b) To investigate such reported incidents in a fair manner;

(c) To take appropriate disciplinary action against the delinquent employee(s);

(d) To ensure that no employee is victimised or harassed for bringing such incidents to the
attention of the Company.

The practice of this Policy will be overseen by the Audit Committee.

4. Reporting Mechanism

(a) Employees are encouraged to bring to the attention of the Company incidents pertaining, inter
alia, to:
(i) Illegal or unethical conduct including that which adversely affects investors, shareholders,
customers, suppliers, other employees, or the business performance or image or reputation of the
Company;

(ii) Violation of any law or regulation including actual or suspected fraud;

(iii) Conflict of interest with the Company;

(iv) Leaking of confidential or proprietary information of the Company;

(v) Any other violation of the ITC Code.

(b) A Whistleblower complaint may be made by any employee (hereinafter referred to as the
‘complainant'). Such complaint should be sent to his or her immediate reporting authority, with
copies to the relevant Divisional Chief Executive / Head of Corporate Department and the Head of
Corporate Human Resources. Anonymous complaint will not be entertained. If the complainant
has reasons to believe that the concerned immediate reporting authority or his / her superior is
involved in the suspected violation, the complaint may be addressed directly to the Head of
Corporate Human Resources.

Complaint by or against senior management (as defined in the ITC Code) should be made to the
Chairman of the Audit Committee with a copy to the Company Chairman.

(c) Complaint shall be made in writing and must include as much information about the suspected
violation as the complainant can provide. It should describe:

(i) the nature, period of commission and details of the alleged violation;

(ii) the identities of the persons suspected to have committed the alleged violation; and

(iii) a description of the documents that would prove or relate to the suspected violation.

(d) Employees are encouraged to report such incidents as early as possible, in any case within 30
days of the suspected violation / breach noticed by him / her, so that timely action can be taken.

5. Investigation

(a) Upon receipt of a complaint (other than by or against senior management), the Head of
Corporate Human Resources, who should keep the Line Director informed, will make an
assessment thereof and on being satisfied as to the seriousness and credibility of the complaint,
direct the complaint for investigation, in consultation with the General Counsel, to the Internal
Audit Department of the Company.
(b) All employees have a duty to cooperate in an investigation.

(c) All information disclosed during the course of an investigation, including the identity of the
complainant, will be kept confidential, except as necessary or appropriate to disclose for the
purposes of the investigation or where required to be statutorily disclosed.

(d) The report of the investigation shall be submitted by the Internal Audit Department to the
Corporate Management Committee alongwith reasoning and supporting material. Depending on
the materiality, the investigation findings will be reported to the Audit Committee.

(e) Complaint by or against senior management will be investigated as directed by the Audit
Committee.

(f) If the Corporate Management Committee / the Audit Committee determines that a violation has
occurred, the Company will take appropriate action which may include disciplinary proceedings
against the violator, including termination of employment.

6. No Retaliation

(a) This Policy is intended to encourage and enable employees to raise bonafide concerns. No
employee who reports a violation shall suffer any harassment, retaliation or adverse employment
condition as a consequence of such reporting.

(b) Any employee who retaliates against a person reporting a violation will be subject to
disciplinary proceedings, which may extend to termination of employment.
7. Complaint to be made in good faith

(a) A complainant must act in good faith and have reasonable grounds for forming a belief that his
or her complaint constitutes a violation as described under Clause 4(a).

(b) This Policy must not be used as a tool for victimisation, making false allegation or acting
malafide.

(c) Any person who is found to be making baseless, reckless, malicious or deliberately false
allegation, shall be subject to disciplinary proceedings, which may extend to termination of
employment.
 LITERATURE REVIEW

1. Kajanathan Rajendran (2012) did a study in Sri Lanka titled Effect of corporate Governance
on Capital Structure. Investigation was made on the impact of corporate governance on capital
structure of Sri Lankan manufacturing firms. It was concluded that corporate governance has
important implications on the financing decisions of Sri Lankan manufacturing firms.

2. Bihari Suresh Chandra (2012) conducted the study Corporate Governance is key to Better
Corporate Image: A study in the Banking Sector in India. It has been concluded that there is a need
for a strong culture of compliance at the top of the organization and necessary to consider how
management can respond to ethical or reputation concerns. The biggest challenge in India is to
implement the rules of corporate governance at the ground level. It is required to extend the
principles of good corporate governance practices to co-operatives, Non-banking Private
Companies and other financial institutions.

3. Zizadeh Ahmed (2012), Faculty Member Of Azad Islamic University, North Branch Tehran,
Iran in his study “Corporate governance: Frameworks “concluded that corporate social ethical and
environmental performances are being viewed increasingly by investors as indicators of
management quality and proxies for performance in other areas of the business. A good company
must have good environmental management system. The extent to which companies satisfy the
needs of a divergent group of stakeholders can also lead to the satisfaction of ultimate objective of
shareholder’s wealth maximization.

4. Mulyadi Martin Surya, Anwar Yunita and Ikbal Muhammood observed that good corporate
governance is based on the pillars of accountability, fairness, transparency and independence in his
study the importance of corporate governance in public sector (2012) and concluded that
community and citizens perceive that public sector corporate governance is essential in
determining its service quality. Accountability, transparency and efficiency help in measuring
performance of public sector.

5.Hussin Norazian Othman Radiab (2012) in Code of Corporate Governance and Firm
Performance concluded that most of the good governance mechanisms still seem to be
insignificant in relation to firm performance which is measured by return on assets and return on
equity. It has provided evidence that an independent board chair is an effective internal monitoring
mechanism to promote better performance.
  Abbie Griffin and John R. Hauser note that prior research on R&D—marketing
integration is being reassessed in light of the movement toward flatter organizational
structures and cross‐functional teams. To facilitate that reassessment, and to help guide
future research in this area, they review recent research on the methods employed for
integrating R&D and marketing, and they propose several hypotheses regarding those
methods. They present their review and hypotheses within the framework of a causal map
they have developed for studying functional integration.

 John Tsalikis is an Assistant Professor of Marketing at Florida International University.

His articles have appeared in the Journal of the Academy of Marketing Science, Journal of
Business Ethics, Journal of International Consumer Marketing, and Psychology and
Marketing.

 David J. Fritzsche is a Professor of Business Administration at the University of Portland.

His articles have appeared in the Academy of Management Journal, Columbia Journal of
World Business, Journal of Macromarketing, Journal of Marketing Research, Marketing
Ethics: Guidelines for Managers, and Research in Corporate Social Performance and
Policy.
GROWTH RATE YEARS:
 Research Methodology

INTRODUCTION AND MEANING

Research methodology is way to systematically solve the research problem. The research
methodology includes the various methods and techniques for conducting a research. D. Salinger
and M. Stephenson in the encyclopaedia of social sciences define research as “the manipulation of
things, concepts or verify knowledge, whether that knowledge aids in construction of theory or in
the practice of an art”.

ITC Distribution:

Buoyed by a strong distribution network ITC is likely to retain its market share in the cigarettes
business; the ban on advertisements is likely to work in favour of ITC thanks to the recall factor.
The company's reliable distribution network also ensures superior inventory turnover than its
peers.
 BCG MATRIX OF ITC

 Buiscuits

.
PRODUCT MIX OF ITC
OBJECTIVES OF THE STUDY:

The primary objective of this study is to systematically explore the determinant responsible for the
competitive advantage of ITC Limited and how ITC developed new product lines in its foods
business drawing on its competencies in brand-building, R&D, packaging, and distribution.
However, market analysts were not sure whether ITC would achieve success in all the
food categories that it had entered.

1. To know why people prefer buying the ITC products.

2 To know the main attractions that attract the consumers to buy the products..

3. To understand how ITC has diversified themselves to a multi-product corporation from a single
product company.

4. To analyze the growth and strategies of ITC.

5. To initialize all the market strategies adopted by ITC limited.

Aim of the research:

To analyze the growth of ITC by its marketing strategy.

SAMPLING PLAN: Since it is not possible to study whole universe, it becomes necessary to
take sample from the universe to know about its characteristics.

Sample size: 50 consumers.

Sample area : My sample area was Dharamshala and Rait.

Research design:

A research design refers to the “framework or plan of the study that guides t5he collection and
analysis of data. A typical research design of a company basically tries to resolve the following
issues:

1.Determining data collection design.

2. Determining data methods.
3.Determining data resources.
4.Determining primary data collection methods.

EXPLORATIVE RESEARCH DESIGN:

EXPLORATIVE RESEARCH AND STUDIES ARE UNDERTAKEN WITH A VIEW TO

KNOW MORE ABOUT THE PROBLEM.

CONCLUSIVE RESEARCH DESIGN:

 DESCRIPTIVE.
 EXPERIMENTAL.
4 P’S OF ITC LIMITED:

MARKETING MIX
TYPE OF RESEARCH:

The present study will adopt the exploratory approach wherein, there is a need to gather large
amount of information before making a conclusion.

PLAN DEVELOPING THE RESEARCH:

The data for this research project has been collected through self Administration. Due to time
limitation and other constraints direct personal interview method is used. A structured
questionnaire was framed as it is less time consuming, generates specific and to the point
information, easier to tabulate and interpret. Moreover respondents prefer to give direct answers.

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Survey Method and Field Activity. Primary data
collection will base on personal interview. I have prepared the questionnaire according to the
necessity of the data to be collected.

COLLECTION OF DATA:

1: PRIMARY DATA: All the people from different profession were personally visited and
interviewed. They were the main source of Primary data. The method of collection of primary data
was direct personal interview through a structured questionnaire.
2: SECONDARY DATA: It was collected from internal sources. The secondary data was
collected on the basis of organizational file, official records, news papers, magazines, management
books, preserved information in the company’s database and website of the company.

SWOT ANALYSIS OF ITC:

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 well-known
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

 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.

Take a look at eChoupal here http://www.itcportal.com/agri_exports/e-choupal_new.htm 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 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.

ITC was incorporated on August 24, 1910 under the name of ‘Imperial Tobacco Company of India
Limited’. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the
centre of the Company’s existence. The Company celebrated its 16th birthday on August 24, 1926,
by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road)
Kolkata

 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.
 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 dependant 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 subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest
SUB BRANDS OF ITC
Price in the Marketing Mix Of ITC :

 ITC has an operating income of estimated rupees 15,037 crore at the end of the fiscal year
2015 and revenues worth rupees 53,748 crores at the end of the financial year 2015-16.

 It has several business interests and faces lots of competition from rival companies.

 Moreover, it has decided to market its products in every nook and corner of India and
hence has maintained both competitive and penetration pricing policies to deal with
competitors and to successfully spread its product reach to remotest parts in India

 ITC for its luxurious products like hotel business has adopted a premium pricing policy
but for consumer products, it has adopted a reasonable pricing policy as it recognises that
most Indians belong to middle-class section of society and if the product prices are pocket
friendly and affordable, it will help in creating sales and ultimately will lead to better
revenue figures.

CODE OF CONDUCT OF ITC

Preamble

ITC's Code of Conduct is derived from three interlinked fundamental principles, viz. good
corporate governance, good corporate citizenship and exemplary personal conduct.

Philosophy

 ITC is a professionally managed organisation and the core value underlying our corporate
philosophy is "trusteeship". We believe this organisation has been handed to us by the
various stakeholders in "trust" and we as professionals are the "trustees" of these
stakeholders.

 It is therefore our responsibility to ensure that the organisation is managed in a manner that
protects and furthers the interests of our stakeholders. We recognise society as an important
stakeholder in this enterprise and therefore it is part of our responsibility to practise good
corporate citizenship.

 It is also our belief that in order to serve the interests of our stakeholders in perpetuity, we
must build ITC into an institution whose dynamism and vitality are anchored in its core
values.
Corporate Governance Policy

The Corporate Governance Policy is the apex level instrument guiding conduct of the affairs of the
Company and clearly delineates the roles, responsibilities and authorities of the key entities in the
governance structure of the Company. This Code forms an integral part of the Company's
Governance Policy. The directors, senior management and employees must adhere to the
Corporate Governance Policy of the Company.

Good Corporate Citizenship

In the conduct of the Company's business, the practice of good corporate citizenship is a
prerequisite and embraces the following:
Q1. Have you heard of a company called I.T.C.? if yes how?

 Yes – 80%
 No-20%

0%
20%

80%

OPINION PERCENTAGE

YES 80%

NO 20%

INTERPRETATION: From above response it can be seen that.

 20% people are know the name ITC.
 80% people are not aware of ITC.
Q2. Are you aware Vivel / Superia soaps?
 Yes-90%
 No – 10%

1st Qtr
0%
10%

2nd Qtr
90%

AWARENESS PERCENTAGE

YES 90%
NO 10%

INTERPRETATION: From above response it can be seen that.

 90% people are aware about vivel / superia soaps.
 10% people are unaware of them.
Q3. What soap do you use?

1.) Dettol-65%

2.) Lux-20%
3.) Sinthol-15%

0%
15%

20%

65%

PRODUCTS PERCENTAGE

DETTOL 65%

LUX 20%

SINTHOL 15%

INTERPRETATION: From above response it can be seen that.

 65%people use Dettol.
 20%people use lux.
 15%use SinthoL
Q5. Since when you are using the products of ITC?

1.) 2 years -75%

2.) 6 months- 15%
3.) 3-4 months-10%

0%
10%

15%

75%

USAGE TIME PERIOD PERCENTAGE

2 YEARS 75%

6 MONTHS 15%
3-4 MONTHS 10%

INTERPRETATION: From above response it can be seen that.

 75%people use these soaps from 2 years.
 15% use these soaps from 6 months.
 10% use these soaps from 3-4 months.
Q6. How many people in your family use the products of ITC?

1.) ALL MEMBER 6 – 70%

2.) FOUR MEMBERS – 20%

3.) TWO MEMBERS – 10%

0%
10%

20%

70%

FAMILY USAGE PERCENTAGE

ALL MEMBERS 70%

FOUR MEMBERS 20%

TWO MEMBERS 10%

INTERPRETATION: From above response it can be seen that.

 70% of the family having all the family members use same soap.
 20% of the family having 4 members use same soap.
 10% of the family having 2 members who use the same soap.
Q8. How many times in a day you use the product of ITC?

1). One time -40%

2). Three times -10%

3). Several times -50%

0%
10%

40%

50%

USAGE PERCENTAGE

ONE TIME 40%

THREE TIMES 10%
SEVERAL TIMES 50%

INTERPRETATION: From above response it can be seen that.

 50% of the consumers use the soap several times in a day.
 40% of the consumers use the soap one time in a day.
 10% of the consumers use the soap three times in a day
Q9. What do you consider while buying the soaps of ITC ?

1)Quality – 19%
2) Color and size -10%
3) Brand name- 10%
4) Discounts/offers/free gifts-30%
5) Price- 31%

10%

10% 31%

19%

30%

CONSIDERATION PERCENTAGE

QUALITY 19%

COLOUR AND SIZE 10%

BRAND NAME 10%
DISCOUNTS/OFFERS 30%

PRIZE 31%

INTERPRETATION: From above response it can be seen that.

 31% of the consumers see the price before buying.
 30% see the discounts/offers/gifts before buying.
 19% see the quality before buying.
 10% see the brand name before buying.
 10 % see the colour and size before buying.
Q10. How much money (in Rs.) you spend to buy the products of ITC ?

1) Less than 5 – 2%

2) 5> 10 -40%

3) More than 10- - 58%

0%
2%

40%

58%

MONEY TO BE SPENT PERCENTAGE

LESS THAN 5 2%
5>10 40%
MORE THAN 10 58%

INTERPRETATION: From above response it can be seen that.

 2% spend less than 5 to buy soaps.
 40% spend 5>10 to buy soaps.
 58% spend more than 10 to buy soaps.
Q11. By watching T.V. advertisements which product you prefer to buy under the influence of

advertisement ?

1.Electronic -30%

2. FMCG -60%

3. Garments-10%

0%
10%

30%

60%

PRODUCTS PERCENTAGE

ELECTRONICS 30%

FMCG 60%

GARMENTS 10%

INTERPRETATION: From above response it can be seen that.

 60% of the consumers will buy the FMCG products by watching advertisement.
 30% of consumers will buy electronics buy watching advertisement.
 10% of the consumers will buy garments by watching advertisement.
Q12. How do you react when advertisements appear on T.V?

1.Watch with interest – 43%

2. Switch to another channel- 22%

3 Start talking to others – 25%

4. Get irritated- 8%

8%

26%
44%

22%

REACTIONS PERCENTAGE

WATCH WITH INTEREST 44%

GET IRRITATED 8%
START STALKING TO OTHERS 25%
SWITCH TO ANOTHER CHANNEL 22%

INTERPRETATION: From above response it can be seen that.

 44% Of the consumers watch the ads with Interest.
 25% of the consumers start stalking to others
 22% of the consumers switch to other channels
 8% of the consumers get irritated.
Q13. How frequently you view the T.V advertisements with concentration ?

1.Frequently- 20%

2. Quite often-30%

3. Sometimes- 40%

4. Never-10%

10%

20% 40%

30%

TIMINGS PERCENTAGE

FREQUENTLY 20%
QUITE OFTEN 30%
SOMETIMES 40%
NEVER 10%

INTERPRETATION: From above response it can be seen that

 40% of the consumers watch ads sometimes
 30% of the consumers watch the ads quite often
 20% of the consumers watch the ads frequently
 10% of the consumers never watch the ads.
 FINDINGS

After a good deal of consumer survey and marketing research, I have collected worthwhile data to
make it valuable information in conclusion. The analysis of those data’s is given below :-
DATA ANALYSIS FOR THE PREFERENCE FOR THE SOAPS ANDTHEIR BUYING
INFLUENCING FACOTRS IN RURAL MARKET:
In survey of preference of my target consumers towards soap, I had found different preferences
and different choices of consumers. On the bases of their choices I had get following data:-

As per given in above chart, 90% of soap market share is captured by HUL. 50%consumers prefer
HUL’s LUX and 30% lifebuoy. While other companies contribute only 8% in which ITC’s all
soaps brands (de wills, vivel and superia ) contribute only 2%to 3% that is very less compare to
HUL

FACTS

 Consumer Buying Decision

The main driver in attracting the consumers is Quality of the product itself with nearly65% of the
people surveyed citing it as the main criterion for choosing the product, followed by past
experience of the consumer with the brand (17.6%). Price was third criterion with a percentage of
11.7% of the people surveyed gave importance during buying. An effective advertisement will
attract more and more customer to buy, helps in the brand and image formation, and informative in
telling the USP of the product.

 Analysis on Diversification

ITC has been a leader in the tobacco business, but it realize from the up coming trend sthat
remaining with a single business is not a noble thought, moreover the company wasth reatened of
the anti-tobacco campaign.
Therefore the company decided to venture into InfoTech with ITC InfoTech, foods via Kitchens
of India, greeting cards through Expressions and lifestyle retailing through Wills Sport.
  Each of these is intended to draw revenues of at least Rs. 250 crore by 2005.ITC was a cash
rich company with a liquidity of Rs.8816 million in the cigarette business, even though the
company understood the need and usefulness of diversification .The writer in the article is
mainly concerned with the way ITC spreads its wings in the lifestyle segments, he writes:”

 Forty-five stores in 34 cities in just under a year, selling an expensive fashion brand of
relaxed-wear. If retail swamp-out and brand salience were the goals, ITC’s Wills Sport
would be on a victory lap already.

 ”The company has started its retail stores not only in Indian metros but also in the small
towns like Ranchi, Jabalpur, Gwalior, Belguam, Ernakulam etc. the article also talks about
the strong market campaign done by the company, it also describe how the company has
used its brand image to attract the Indian youth.

 It also tells about the strategy adopted by the company to differentiate itself in this
segment, like the company is outsourcing its designs form the American Design
Intelligence Group (ADIG), a San Francisco, US-based garment and retail consultancy.

 Now it has its own six-member team, even as it continues a tie-up with Science & Designs,
an Italian fashion design house – through which it keeps a watch on hot western labels such
as Banana Republic and Armani Exchange.

 Financial Analysis of ITC Ltd.

In the quarter ended June, 07, ITC’s net profit grew 20% to Rs.782.87 million and net sales rose up
17% to Rs.3325.23 million. This profit growth was primarily driven by its cigarette business
because of high margin and agribusiness, but its top line growth mainly comes from non tobacco
business and agro business. ITC is facing pressure on its consolidating operating margin due to
continued losses by its non- cigarette FMCG business and decline in the profitability for paper and
paper board business. Higher advertising expanses, which grew 35% in FY07 and freight cost,
which were up 31% last year, have also affected the margins. Going forward, the focus will be on
the performance of its non tobacco FMCG business, which has begin to show sign of turning
around
 The researcher has used secondary data, magazines, internet, books, some market survey
using marketing tools like asking question through phone, personal interview etc.

 ITC’s top line and bottom-line growth is likely to be marginally affected looking at its
aggressive investment in hotel and other FMCG business. Its recent foray in to home
and personal care also need immediate investment . At the current market price of Rs.180,
the stock is valued at around 20.5 times its FY08estimated earning per share of Rs.9.

 This is significantly lower than its historical price to earnings multiple of around 25 and
also lower than its peers in FMCG sectors. This provides 20-25% upside over the next 12-
18 months.

FUTURE PLANS OF THE COMPANY

 Today, the Aashirvaad brand stands for atta and salt and is expected to add suji spices and
rice in the staples segment. In the ready-to-eat segment, Aashirvaad has been expanding the
range and the latest offering includes its combo packs of rice and gravies . Besides, an all-
purpose curry paste has also been included in the range.

 To make a success of any foods business, apart from understanding the palate, it would
be procurement and sourcing which have to deliver on two fronts: mainly that of quality
and efficiency . As for its ready to eat category Kitchens of India (KOI), the company’s
strategy is to expand the KOI product portfolio . In this category, the company plans to
introduce new products to meet the evolving needs of consumers. This premium brand is
targeted at tourists, consumers who order at home, NRIs and women in the age group 25
plus.
 RECOMMENDATIONS

o According to the survey conducted and after analyzing the Price, Promotion, Place and
Product of the ITC and the consumer behavior in the market the company can implement
the following measure for increasing the sales and volume of their products.

o Advertisement for the Aashirvaad atta is found to be ineffective and infrequent.

o So, the company can come up with an aggressive advertisement to attract the Indian
housewife as they are found to be the decision maker in the buying of Atta.

o The company can come up the concept of forming a Retail chain of Food products across
all over India as it is follows the marketing strategy of Umbrella branding.

o In such retail chains all the food division products can be sold at the discounted rate, as
more and more products are coming under the Umbrella products like food processing.

o The branded atta can be exported to other countries where we are currently exporting the
whole wheat.

o The company can approach the government or distributing their products in Military
canteens and can sell them to organization that provides the afternoon meals to the children
as a part of mid-day meal scheme.
 SUGGESTIONS

These are the following suggestion.

 Company should decrease the rate of PRODUCTS

 Company should more work on advertising of PRODUCTS

 Company should also work for its distribution.

 Company should reduce the awareness of people about itc.

 Company should start many scheme & offer to increasing of PRODUCTS

 Company should also analysis its competitors strategy.

 They should expand the product portfolio.

 ITC should do vertical integration in hotel industry as they have done in

agricultural sector.

 The company should get ready for threat new entrants.

 Limitations

 Skill set shortage

 Maintaining high quality standards

 Lack of talent pool

 Unable to do primary research

 Confidentiality

 Enhanced risk management

 Time constraint

 While surveying I encounter with some problems like some people were not
readyto respond and few of them who responded were in hurry hence the
active participation was lacking.Due to which I faced difficulties in collecting
information regarding our questionnaire. Another problem which I face was that
people were hesitating to giveinformation about their income.

 Except it, sample size that I have taken was small(50 respondents) and its difficult
task to draw conclusion or reach to exact result onthe basis of limited sample
size. Time was very limited go into depth.Threats to me were that people were
hesitant to give income related information sothere is chance to error regarding
income

 Customer satisfaction stills a subservient goal:

No one denies the importance of customer orientation, but it is easy to see that most companies are

not practicing it. Some companies still consider customers to be the irritants, which they have to
put up with because they bring revenues.
  Ignores societal and environmental good:
Since a company commits itself to serving its customers, it designs and produces products that its

customers want. The practice has led to designing of products with superfluous features and

benefits, resulting in wastage of precious resources. Companies are depleting earth’s resources to

please customers, who are forever making extravagant demands on companies that are just too
ready to oblige.

It is important that a company utilizes the services of anthropologists, sociologists, political

scientists and economists to unearth customers’ latent needs because marketers cannot unearth

them. It is also important that technological innovations be allowed to run their course, and new

products be launched without customers having demanded such products. A company should

continue to focus on basic scientific research, even as it tries to serve customers’ espoused needs.

It is important to remember that a successful new-to-the-world product is launched when a

technological innovation meets customers’ latent needs.

 Suppresses innovation:

Marketing research unearths customer requirements, which a company uses to guide its innovation

process. It is not always a good idea to let customers’ espoused needs guide a company’s

innovation process because customers cannot express needs which are beyond the realm of their

own experiences. Customers would not have expressed the need for mobile phones, simply
because they did not know that such a possibility existed.

Therefore, when a company bases its innovation process on customers’ espoused needs, it can only

come with products which are incrementally better than the ones they are currently using. Such

companies cannot come up with fundamentally new products because their customers never asked
for them. Scientific discoveries can serve latent needs of customers, but these discoveries lie
unused in laboratories as marketers have not been able to unearth such needs.
  Technological Advances
A knock against the marketing orientation, and a benefit cited with a product orientation, is the
ability to more quickly upgrade products with advanced technology and quality features. Though
more responsive, companies that do not make product improvements a focus may not have the
ability to adapt as quickly to provide these quality benefits to customers.

This can serve as a deterrent to cutting-edge buyers who want to get in on the latest product
advances.

 Production Efficiency

Another potential drawback of a customer-centric strategy is less emphasis on perpetual

improvement of production processes and efficiency. New equipment and production processes
emerge all the time in industries and if your company is not constantly watching for these
improvements, it can fall behind. Production efficiency is critical to maintain low costs and
generating strong profits. Even with a marketing orientation, your business should watch for
opportunities to upgrade on production.

 Customer-Centric Alignment

 A major cultural advantage of adopting the marketing orientation in your business is that
you can can employees at all levels involved in one strategic mission of customer
satisfaction.

 This requires top management emphasizing the needs and satisfaction of customers as top
priorities.

 If all employees commit to providing what customers want, your business should do better
developing quality, well-received products and earning profits on them over time.
 Adaptability

 Another significant advantage of a marketing orientation is that your company likely has its
ear to the market to garner more immediate feedback from customers.

 This helps you improve service but also make product or service adjustments generally
desired by customers.

 Companies that make the product the focus are often too busy focusing on product research
and development that they lose sight of what customers need or want in a solution.
 CONCLUSION

 In this analysis I found that a vast majority of rural consumers prefer LUX and LIFEBUOY
most trusted brands.

 But all these brands are costlier and entrance of ITC’s soaps with vast of soaps
varieties i.e. Superia for mass and de wills for high income group population with
competitive prices attracting rural consumers to use ITC’s soaps.

 Advertisement(TV ad) most influences buying behavior of rural consumers

 Local influential persons are the best source for awareness of FMCG product

 “BUZZ” are used to choose a brand

 Low price with good quality products have makeable sales result

 Company should do “UMBRELLA BRANDIND” to set brand name in consumer’s mind

like HUL,DABUR,NIRMA etc

 This case study has been compiled from information freely available from public sources.
It is merely intended to be used for educational purposes only
– 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
 Mint-o – Mint-0 Fresh is the largest cough lozenge brand in India
 Bingo! – a new introduction of finger snacks.
 Kitchens of India – pre-prepared foods designed by ITC’s master chefs.
 Sunfeast – is ITC’s biscuit brand (and the sub-brand is also used on some pasta products)
 Bibliography

 Wiki – ITC
 ITC’s own official site

WEBSITES:

http://www.itcportal.comhttp:
//www.google.co.in
/http://www.blonnet.comhttp:
//www.justfood.comhttp
://www.thehindubusinessline.comhttp
://www.imcri.orghttp:
//www.scribd.com
www.itcportal.com

BOOKS:

RESEARCH METHODOLOGY-C.R.KOTHARI

ITC ANNEXURES ON MARKETING OF ITC PRODUCTS

ITC REPORTS ON THE MARKETING STRATEGIES OF ITC 2015

MARKETTING MANAGEMENT- P. KOTLER

MARKETING RESEARCH-G.C. BERI

NAME OF RESPONDENT ……………………………………..

AGE OF RESPONDENT…………………………………………

GENDER OF RESPONDENT………………………………………

Q1. Have you heard of a company called I.T.C.?

 Yes –
 No-

Q2. Are you aware Vivel / Superia soaps?

 Yes-
 No –

Q4. What soap do you use?

1.) Dettol-

2.) Lux-3.) Sinthol-

Q5. Since when you are using the products of ITC ?

1.) 2 years
-2.) 6 months-
3.) 3-4 months-
Q7. How many people in your family use the products of ITC?

1.) ALL MEMBER 6

2.) FOUR MEMBERS

3.) TWO MEMBERS

Q8. How many times in a day you use the soap?

1). One time -

2). Three times -

3). Several times -

Q9. What do you consider while buying the soap?

1)Quality
2) Color and size -
3) Brand name-
4) Discounts/offers/free gifts-
5) Price

Q10. How much money (in Rs.) you spend to buy the soap?

1) Less than 5 –

2) 5> 10 -

3) More than 10-

Q11. By watching T.V. advertisements which product you prefer to buy under the
influence of advertisement ?

1 .El e c t r o n i c -

2. FMCG -

3 . Ga r me n t s -

Q12. How do you react when advertisements appear on T.V?

1 . Wa t c h wi t h i n t e r e s t –

2 . S wi t c h t o a n o t h e r c h a n n e l -

3 Start talking to others –

4. Get irritated-

Q13. How frequently you view the T.V advertisements with concentration ?

1. Frequently-

2. Quite often-

3. Sometimes-

4. Never-