A REPORT ON INTERNSHIP PROJECT AT ITC LIMITED

A REPORT ON INTERNSHIP PROJECT AT

ITC LIMITED

Project report submitted in partial fulfillment of the requirements for the award of

degree of

MASTER OF BUSINESS ADMINISTRATION

Of

BENGALURU CENTRAL UNIVERSITY

SUBMITTED BY

Ramkrishna Shivappa Wathare

REG NO: MB187707

UNDER THE GUIDANCE OF

Mr. Umesh B Mr. Gurudutt Shenoy

Area Executive Adjunct Professor

ITC limited R.V.Institute of Management

R V INSTITUTE OF MANAGEMENT

Bangalore

2019-2020

DECLARATION BY THE STUDENT

I hereby declare that “The study on market potential of Bingo snacks in Hubli region after bench-marking

key competition/local players in the segment is the result of the project work carried out by me under the

guidance of Mr. Gurudutt Shenoy and Mr. Umesh B in partial fulfillment for the award of Master’s

Degree in Business Administration by Bengaluru Central University.

I also declare that this project is the outcome of my own efforts and that it has not been submitted to

any other University or Institute for the award of any other degree or Diploma or Certificate.

Place: Bangalore Name: Ramkrishna Wathare

Date: 16th October 019 Register Number: MB187707

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind support and

help of many individuals and organization. I would like to extend my sincere thanks to all of them.

I thank the management and staff of ITC limited for giving an opportunity to undertake research study on

“Market Potential of Bingo snacks in Hubli region”

I am highly indebted to Mr. Umesh B for their guidance and constant supervision as well as for providing

necessary information regarding the project and also for their support in completing the project.

I would like thank Mr. Gurudutt Shenoy internal guide for providing me with a possible facilities in carrying

project.

I would like to express my gratitude towards my parents & members of ITC Limited for their kind

co-operation and encouragement which help me in completion of this project.

My thanks and appreciations also go to my Friends in developing the project and people who have willingly

helped me out with their abilities.

GUIDE CERTIFICATE

This is to certify that the Project Report title “study on Market Potential of Bingo snacks in Hubli Region

after benchmarking key competition/ local players in the segment at ITC Ltd” Submitted by (Ramkrishna

Shivappa Wathare and Reg.No MB187707) to Bengaluru Central University, Bangalore for the award of

Degree of MASTER OF BUSINESS ADMINISTRATION is a record of work carried out by her under

my guidance.

Place: Bangalore Signature of the guide

Date: 16th October 2019

0

The Report is Generated by DrillBit Plagiarism Detection Software

Title: ITC - A STUDY ON MARKET POTENTIAL OF BINGO SNACKS IN HUBLI REGION AFTER

Author Name:MB187707

Document : MB187707_DB (1343 KB) Submission Id : 191004101625 Submitted Date : 04-Oct-2019 10:19:23 (IST)

DrillBit Similarity Report

3

A-Satisfactory (0-10%)

B-Upgrade (11-40%)

17 A

C-Poor (41-60%)

D-Unacceptable (61-100%)

SIMILARITY % MATCHED FILES GRADE

Sl.No LOCATION MATCHED SOURCES %

1 4 AIMS College, Bangalore University By

<1

17KCCMD184 - 2018, MRSA

Student Paper

2 1 Article published in 2nd CIRP Conference on

<1

Surface Integrity (CSI)

Journal

3 3 Student Paper Published <1

www.mdpi.com

4 2 ABBS Student Internship Report Submitted to

<1

Bangalore University by - 16YUCMD183

Student Paper

5 6 www.iimshillong.ac.in <1

Internet Data

6 8 ECONOMIC ANALYSIS OF PRODUCTION,

<1

MARKETING AND VALUE ADDITION OF

TABLE OF CONTENTS

CHAPTER

CONTENTS

PAGE NUMBER

1

Introduction

Company profile

Company overview

Awards and Achievements

Mc Kinsey 7-S Framework

SWOT Analysis

Industry Profile

FMCG Sector

Top FMCG Brands

Porters five force model

Introduction to the topic

Statement of the Problem

Need and scope of the study

1-22

2

Methodology

Objectives

Methodology of research

Tools for Data Collection

Limitations of the study

23-25

3

SWOC Of The Research

26

4 Outcomes Of The Study 27-29

5 Experience, Learning and Conclusion 30-31

6 Bibliography 32

7 Annexure 33-37

Market Potential of Bingo snacks in Hubli region after benchmarking key competition in the segment

R.V. Institute of Management Page 1

CHAPTER -1

INTRODUCTION

1.1 COMPANY PROFILE

ITC was incorporated in the year 1910 on August 24, ITC initially abbreviated as Imperial Tobacco

Company of India Limited. As the Company's ownership progressively started becoming indianised,

the name of the Company was changed to India Tobacco Company Limited in 1970 and then again later

it is renamed as I.T.C. Limited in 1974.

ITC is one of the India’s topmost private sector company and at present it has market capitalization of

US 52 billion and Gross sales value of US 10 billion. ITC is among the world best companies and also

listed in “Asia fab 50 and worlds most reputed companies by Forbes Magazine in 2009. ITC also features

as India’s most admired company in a survey conducted by Fortune India magazine and Hay group in

the year 2013. ITC has diversified presence in FMCG-Branded packaged foods, cigarettes, personal

care, education, lifestyle retailing, hotels, packaging, agribusiness and Info-tech.

ITC’s packaged foods business is one of the largest and fastest growing brand in India. Some of the

popular food brands of ITC include -Sunfeast, Ashirvad, Fabelle, Sunbean, Bingo, Candyman B-

Natural, Mint-o and Yippee. ITC is representing the food business in multiple categories in the market

such as spices, staples, biscuits, snacks, beverages, chocolates, noodles and pasta. Annual Consumer

spends of over Rs 18000 crore on the ITC Branded packaged products and out of which Rs 2500 crore

comes from Bingo snacks. In Karnataka the ITC Food distribution managed in main company’s

stock point which is located in Bangalore and from there the stock is forwarded to other parts of the

city. Hubli is one of the major city in the state of Karnataka, it is commercial centre for trade and

said to be a business hub of North-Karnataka and one of the fastest growing city after the Bangalore

in the field of business and industry. The geographical advantage made a Hubli as a commercial as

well as industrial centre and attracted many companies to invest and establish the market for their

products. In Hubli region the ITC bingo make the sales of 50 lakh in a month.

The business continues to take a position in each facet of producing, distribution and marketing

to ensure that it can leverage emerging opportunities and fulfill its aspiration of being the most

trusted provider of Packaged Foods brands in the country. ITC's Food business additionally

exports its product to the key geographies of North America, Africa, Middle East and Australia.


R.V. Institute of Management page 2

1925: ITC Started the Packaging and Printing

It was set up in 1925 as strategic backward integration for ITC cigarette Business. Now it is turned to

be one of the leading star business of ITC.

1975: Entered to Service sector - A welcome move

In the year 1975 the firm entered into Hotel business the first Hotel of ITC was named as ITC- A

welcome Gathering Hotel Chola in Chennai. Now ITC Hotels turned to be a second largest Hotel

chains in India.

1979: Paper boards and specialty papers

In the year 1979 entered as ITC Bhadrachalam paperboards limited. Bhadrachalam paper boards

amalgamated with the company now it is turned into a Division of the company.

1985: Nepal Subsidiary

In the year of 1985, ITC has set up Tobacco Company named as Surya Tobacco Company in Nepal.

As Indo-Nepal and British joint ventures.

1990 Agri-Business - Strengthening Bond and Linkage with Farmers.

ITC set up the Agri-Business for exporting of Agri-Products. Now it has turned to be the largest

exporters and now it is widely recognized with its E-Choupal initiative.

2000 - Information Technology - Business Friendly Solutions

In the year 2000 ITC started ITC InfoTech India Limited. Today it is one of the fastest growing IT

services business in India.

2002 - Education and stationary products

ITC launched the limited edition notebooks under the Brand name of Paperkraft in the year 2002 and

in the year 2003 ITC introduced classmate notebooks.



2002: Agarbattis and Safety Matches

ITC launched the matches under the several brand names such iknoAim and Mangaldeep in the year

2000. Now the Mangaldeep turned to be the National Brand includes incense sticks with wide range

of fragrance like rose, Jasmine, Bouquet, Sandalwood and Fragrance of Temple.

2005: Personal care products

ITC Launched its personal care products in the year 2005 during these coarse of time the products are

has raised under the brand name of “Essensa Di willis, Vivel, Fiama and Savlon which has received

the good response from the customers.

2010: Expanding the Tobacco Portfolio

Hand rolled cigar named as Armenteros, was launched in the year 2010. In India Armenteros cigars

are only available at tobacco selling in selected Hotels, fine dining and exclusive clubs.



ITC LTD PRODUCTS PORTFOLIO

POPULAR BRANDS OF ITC



1.1.2 FMCG PRODUCTS OF ITC LIMITED

ITC is the market leaders in cigarettes business in India with a wide range of multiple brands. The

brands like (Gold Flake, Wills and Scissors) feature among the top 5 FMCG brands in the country.

The Lifestyle Retailing business of ITC was established in the year 2000 through the brand name

Wills Lifestyle chain the apparel and accessories are sold under the Wills trademark. ITC made its

entry into branded packaged foods business and rapidly expanded the portfolio to include

confectionery, staples and snack foods segments.

FMCG PRODUCTS BRANDS

Cigarettes

Domestic market - India Kings, Gold Flake, Navy

Cut, Scissors, Capstan, Berkeley and Bristol

USA - Checkers, Hi-Val, Royale Classic and Gold

Crest

Middle East - Royale Classic, Gold Cut and Scissors

Filter King

Ready to eat foods Kitchens of India

Staples Ashirvad

Confectionery Mint-o , Candyman

Lifestyle retailing

Relaxed Wear - Wills Sport

• Formal Wear - Wills Classic

• Evening Wear and Designer Accessories Wills

Club life

Notebooks

School notebooks - Classmate

College and office notebooks - Paperkraft

Safety Matches Aim, Mangaldeep, Ikno, Vaxlit and Delite

Incense sticks Mangaldeep



Manufacturing Plants of ITC ltd in India:

Product Location of Manufacturing Plant

Cigarettes Bangalore (Karnataka), Kolkata

(West Bengal), Munger (Bihar),

Saharanpur (Uttar Pradesh)

Green Leaf Threshing

Plants

Anaparti, Chirala (Andhra

Pradesh)

Packaging & Printing

Factories

Chennai (Tamil Nadu), Munger (Bihar)

Paper & Paperboard Mills Bollaram (Andhra Pradesh), Coimbatore

(Tamil Nadu), Sarapaka (Andhra

Pradesh),

Tribeni (West Bengal)

Rural Services Centre 10 in Madhya Pradesh,

Uttar Pradesh & Maharashtra

Lifestyle Retailing-

Design & Technology Centre

Gurgaon (Haryana)



1.1.3 Awards and achievements

In the year 2010 ITC was rated among Asia 50 Biggest companies by Forbes.

In the year 2010 bagged the FICCI award for outstanding achievement in rural development.

ITC chairman Y C Deveshwar was conferred the Padma Bhushan by government of India in

2011.

ITC won the 12th business world FICCI CSR award from UK in 2006.

In the year 2012 ITC was granted as Business leader in FMCG at NDTV Profit Business

Wills lifestyle was rated as the “super brand” in the year 2012 by super brand council of

India.

Y.C. Deveshwar was ranked 7th Best performing CEO by Harvard Business Review in

2013.

Y.C Deveshwar was awarded from Economic times as the best smart green leader lifetime

achievement award.

Vivel rated among top 5 Brands and most exciting brands in personal care product by

Economic Times.

ITC won overall CSR performance award at the Institute of public enterprise (IPE) in the

year 2012.



1.1.4 MCKINSEY 7S MODEL

Strategy

ITC focuses mainly on the chosen portfolio of FMCG, Hotel Industry, Paperboard Industry,

Packaging, Infotech and Agri Business. ITC ensures the business is world class and globally

competitive and focuses on strengthening the governance systems and create a leadership within

the organization by nurturing the talents.

Systems

The main systems of ITC that runs the business are financial and HR system as well as

communication and it is regularly monitored and evaluated and has the separate internal policies

and processes to record and track .



Shared value

The shared values are the fundamental values of the company ITC is always customer oriented

and strives to deliver the needs of their customers in terms of quality, value and satisfaction.

Skills

ITC looks for the candidates who possess the strong management skills and capable of working in

the teams and also should have sufficient knowledge about the industry and should fill the skill

gaps in the organization and contributes the progression of company. The performance of the

employees are monitored and rated.

Styles

The employees should have the effective leadership quality and should be competitive and co-

operative in the working environment with positive attitude and behavior and should be

participative in nature.

Staff

The total number of employees working in ITC is around 30000 directly across India and they

have been paid the competitive salary with all the benefits like medical allowances and travelling

allowances etc. ITC takes the highest care of their employees.

Structure

The organization structure of ITC limited is vast, the hierarchy includes Chairman, Board of

Directors both executive and non-executive directors in the top level management and the branch

managers , assistant branch managers followed by area managers , assistants and executives

includes in the middle level.



1.1.5 SWOT ANALYSIS OF ITC LIMITED

STRENGTH:

ITC has a strong and largest distribution network in India

It is a established Brand and has a good reputation in the market.

ITC has the world’s best research and development facilities.

Over 6500 E-Choupal CSR activities and sustainability initiatives enhance ITC’s brand image

reaching over 4 million farmers.

ITC has strong and experienced management.

WEAKNESS

ITC is still depending on its tobacco business for the revenues and contribution of tobacco

business is larger even after ITC has diversified business.

ITC InfoTech business has not been able to set the huge market.

OPPORUNITIES

Tap rural markets and also can increase penetration in urban areas.

Acquisition and mergers will help to increase the goodwill of the company.

As the purchasing power of people and consumption rate is increasing thereby there is increasing

demand in FMCG business.

THREATS

Rigid government rules, regulations and policies on tobacco business.

Intense competition from other Brands like HUL, Britannia, Parle and Nestle.

Competition from local players.



DISTRIBUTION CHANNEL OF ITC

MANUFACTURING PLANT

STOCK POINT

DISTRIBUTORS

WHOLESALER RETAILERS CONSUMERS



ORGANIZATION STRUCTURE OF ITC LIMITED (SALES)

BRANCH MANAGER

ASSISTANT BRANCH MANAGER

AREA MANAGER

AREA EXECUTIVE

SALES OFFICER

MANAGEMENT TRAINEE

SUPERVISER

SALESMAN



1.2 INDUSTRY OVERVIEW

FMCG SECTOR: - Fast moving consumer goods is the fourth largest division in the Indian

economy with family and personal care accounting for 50% of FMCG deals India. As compared to

rural market, 60% of income is been contributed by urban portion. Growing awareness, simple

access and changing ways of life have been the key development drivers for the area. FMCG

products are famously known as consumer goods. Things in this class incorporate all consumables,

individuals purchase these goods at regular intervals. The most well-known in common are latrine

cleansers, cleansers, shampoos, toothpaste, shaving items, shoe clean, bundled staple, and family

adornments and reaches out to certain electronic merchandise. These things are intended for every

day of regular utilization and have an exceptional yield.

According to the FMCG industry overview, revenues from the FMCG business has reached $ 52.75

Billion in FY18 and in future it is estimated around $ 103.7 Billion in 2020. As the consumption

rate is increasing rapidly, the FMCG sector turns to be as key sector for investors. The government

of India has also taken various initiatives to promote this industry and allowed 100% FDI in SBRT

and cash and carry models in the retail sector.

The total snack market in India is estimated around 29000 crore with the annual growth of 24%.

The future of Indian snack market is expected to grow with double digit CAGR for the time interval

of 2018-2024. Indian snack market comprises of both organized and unorganized market. The

unorganized market considered to be the leading Indian snack market but this is expected to reverse

during future course of time because the Indian snack market is growing rapidly due to some of the

factors like Lifestyle changes, rising urbanization , growing middle class , population , local

availability and availability of snacks in small packet size, low prices and companies strategies.

After 1995, India has seen an enormous change in Snack market. The significance of bite has been

reclassified from chips and cookies to cold drinks and mini meals. The demand for snack industry

has been increased in the recent time this influenced the manufactures to focus more on this

segment.



Because of the busier way of life to save the time the consumers demand has been increased for

fast moving packaged goods in India. The progression of innovation, urbanization, change in

technology, and increase in the population has pulled in a huge mass toward the snack markets in

India. So as to spare time, individuals are step by step moving towards ready to eat foods.

1.2.1 TOP FMCG BRANDS ARE :-

1) Hindustan Unilever Limited (HUL)

It is one of the biggest fast moving consumer goods organization in India. HUL was built up in

the year 1933 by lever brothers and in 1956 it was named as Hindustan Unilever Limited. HUL is

a market leader in the FMCG goods in India with its presence over 20 categories such as cleansers,

shampoo, tea among others with over 70 crore Indian buyer utilizing its items

2) ITC Limited

ITC reach to its client or buyers in numerous sections of business instead of FMCG set up in 1910

as imperial tobacco company of India limited, the organization was renamed as the Indian Tobacco

company Limited in 1970 and further I.T.C in 1974 a portion of the brands of this company are

popularly labeled by Brand names like Aashirvad, Sunfeast, Bingo in foods and john players in

fabric portion.

3) Dabur India limited

Dabur India ltd is one of India’s developing FMCG companies with revenue of over approx. Rs

7806 Cr Dabur was established in 1884 by a doctor named SK Burman in West Bengal to produce

and appropriation Ayurveda medications, Beverages. A portion of outstanding brands are Fem,

Dabur amla, Hair oil, Hajmola and Chywanprash. Presently organic juice of Dabur Real fruit is

famous then PepsiCo’s Tropicana.

4) Britannia Industries

The organization was built up 1891 with an initial investment of Rs 265 the biscuits were

manufactured in a small plant in Kolkata. Britannia Industries was started by Gupta brothers mainly

Nalin Gupta. Today Britannia Industries one of the leader organization in India with over 7858

crores income. Britannia is integrated with its cold chain logistics. It focuses mainly on quality and

freshness of the nourishment items and Britannia is perceived as one of the most trusted, important



and main stream brand among the Indian FMCG sector.

5) Godrej Consumer Product Limited (GCPL)

Godrej consumer product is an India’s biggest engineering and consumer goods organization. The

company was established in the year 1897 founder of the company is Ardeshir Godrej and today

GCPL items are utilized by over 1.1 billions buyers comprehensively. The organization is focusing

to grow abroad in the regions like Asia, Africa and Latin America. GCPL has the higher penetration

rates in both urban and rural market.

6) Parle :

Parle was established in 1929 in British India by Chauhan group of Vile Parle, Mumbai. Afterward

on it partitioned into three organization Parle agro, Parle products and Parle Bisleri in 1984.

Presently the organization is among the main top 10 FMCG companies in India. The organization

has some pioneer items in the portion like bread rolls (Biscuits), natural product juices (Frooti).

7) Amul

Amul framed at Anand in Gujrat in the year 1946 it is a co-operative body, GCMMF Gujarat

cooperative milk marketing federation sells Amul brand of milk and diary items across nation.

Amul turnover has been developing more than 20% because of the day by day sells 120 lakh liters

of milk in nation. GCMMF plans to accomplish the business turnover of Rs 30000 crores in 2017-

2018.

8) Patanjali Ayurvedh

Patanjali incorporated in 2015, Patanjali Ayurvedh overwhelmed the market giving the major

FMCG and shopper products organization like -HUL, ITC, Dabur and Colgate Palmolive etc.

Patanjali has wide scope of items in foods and personal care the Patanjali has broaden its business

into varieties and assortments of sections for EX:- Dental care, Beautifying agents ,Hair care and

so on.



9) Haldiram’s

The company had started as the small shop in Bikaner in the year 1937 over the years they a

massive word of mouth for its taste and hygienic food products across all the retails stores in India.

Haldiram’s is also one of among top 10 brands in India. Experts feels that the brand has more than

5000 crore in retails after Parle. Haldiram’s serve items like snacks, desserts and frozen foods.

HUL PARLE

BRITANNIA DABUR



AMUL

PANTAJALI

GODREJ



1.2.2 PORTER FIVE FORCE MODEL

Threat of new entrants

The snack market is growing rapidly and new entrants are considered this segment as one of

the profitable business.

Branded players are all priced similarly for the chips so the new the players are using the

market penetration strategies and also coming with more quantity.

Unorganized players in the market account for half of the total wafers segment discouraging

the new entrants into the market.

Branded players such as Lays and Haldiram’s etc. are enjoying the economies of scale and has

established networks to reach the market.



Competitive rivalry

High Competition: - All the branded players involves in cost cutting to increase their market

size, reach large audience and find the new markets.

Low quality differences within the branded players.

Low pricing strategies by unbranded players.

Brand loyalty is higher for branded chips

Bargaining powers of suppliers

High cost of inputs leads to the lower margins for the manufactures.

Scarcity of the raw materials impacts on the supply and distribution of products.

Branded companies like ITC has E-Choupal ventures that helps them to reduce the raw

material cost.

Bargaining powers of consumers

Consumer’s looks for the different variants and buying behavior might change at any time

based on their preferences and tastes.

Price sensitivity: If the price of the product is increased there is chance of consumer shifting to

another brand.

Threats of the substitutes

The Indian snack industry is huge and has lot of substitutes for the ready to eat meals like

cookies, namkeens, banana chips etc. Hence the substitution rate is higher in the snack

industry.



NATURE OF FMCG BUSINESS - FMCG SALES PROCEDURE

The salesmen (DS) are given an application in their mobile called PDA (Personal Digital

Assistant).

Personal Digital Assistant app is used for the following purpose

Recording the orders given by the retailers

Recording the collection of outstanding payment from retailers

Record the number of items returned by the retailers

The day’s summary can be viewed in the application it includes

1. The total value of orders in rupees

2. The outstanding amount collected from the retailers

3. The number of bills generated

1. The salesman has to upload the orders taken by him on the previous day.

2. The day wise route (Beat wise) updates will be downloaded by the salesman.

3. The bills of the orders received a day before will be generated. Each bill has two copies. These

bills with the load chart will be handed to the delivery of goods.

4. The outstanding bills of the current beat will be received from the office and carried during the

route visit.

5. The salesman approaches the route according to planned route. Approach of salesman for sales

for each outlet.

Collection of outstanding amount (if any).

Order taking item wise

The application process will be submitted at the end of order taking.

6. At the end of route visit the salesman refers day summary to know orders booked, total outlets

visited, target and bills effect.

7. The salesman has to upload the data of the route visited on to the server of the office.

8. Submission of the outstanding amount collected to the office



1.3 Introduction to the topic

Study on Market potential of Bingo snacks in Hubli region after bench-marking key

competition/local players in the segment. It is a market research study that has undertaken in Hubli

region to understand in general about the market size, potential customer and to identify the key

competitors of the Bingo. Market potential refers to the size of market for a goods or services for a

specific time period. In simple it can be said as the market share of products along with its

competitors.

The companies are always wants to know about the market potential for their products and

position of their company in the market because the future growth of the company always

depends upon the potential markets and it always depends upon the positioning of brand image,

good will of the companies and sales volume. The company may have huge demand for the

product at present and might be happy with its sales today but that does not mean they have

enough potential market for future.

ITC Bingo was launched in the year 2007 with variety of packaged salted snack overall India with

extensive advertising. According to industry sources quoting Nielsen data for February and March

2018 in the Bridges segment, ITC Bingo with a share of just over 30%, has overtaken PepsiCo’s

Kurkure .ITC Bingo has displayed consistency in being market leader in chips segment. ITC Bingo

in Hubli region dominated other players completely in a wholesale market and acquired a

monopoly over its competitors and through its strong distribution networks it covers a large area

and has access to remote places of city. At present in the Hubli region ITC Bingo has 6 sub brands

in its portfolio.

ITC Bingo worked extensively over the years to understand the best ingredients that can be used

to blend the taste and health. ITC working continuously to provide the quality products and

services to customers.

Bingo Variants: Bingo starters (Newly launched)

Bingo Potato Chips

Bingo Sprinkled chips

Bingo Tedhe Medhe

Bingo Mad Angles

Bingo Tangles

Bingo No Rulz

Competitors for Bingo: Lays, Britannia, Parle, Balaji, Too yum and local brands.



1.3.1 Statement of the problem.

Market share of Bingo snacks has remained constant from past three years that is around 23

percent. The company is just retaining the existing growth and earning the profit but not able to

increase and capitalize market size and share in the Hubli region with retailers. This research is

carried to know to reasons why the company is not able to increase its market share and size and

provide the solution for same.

1.3.2 Need and Relevance of the study :-

The ITC Bingo is the market leader in the wholesale segment and has monopoly over its

competitors but the growth of the Bingo in the retail segment is not that satisfactory for the company

even it has brand image and it is not performing to that extent as per the company expectations in

Hubli market. This study has undertaken in order to understand the present market potential of

bingo and understanding opportunities for bingo snacks, suggesting the company how the market

share of Bingo snacks can be increased in future and planning innovative activities to increase the

sales volume.



CHAPTER-2:

RESEARCH METHODOLOGY

TITLE OF THE PROJECT: Study on Market potential of Bingo snacks in Hubli region after

bench-marking key competition/local players in the segment.

Introduction:-

Planning, development and introduction of latest merchandise is usually related to uncertainty.

Specific knowledge relating to potential target purchasers and their probable spending money on

the new product provides with additional certainty regarding the market success of latest product

developments.

Market potential describes the most capability of an outlined marketplace for a particular product

/ service within a defined time period. In this context market refers to the entire of all potential

buyers with a certain need or desire and are willing satisfy such needs and full filling them with

buying the new products. The sales potential will then be derived from the results of the market

potential analysis.

2.1 OBJECTIVES :

To find out the market potential of Bingo in Hubli region.

To study about the competitors of ITC Bingo and comparing Bingo snacks with its

Competitors.

To study the performance of ITC Bingo in Hubli region with respect to retailers.

To study the Potential customer base of Bingo snacks.

To study the different parameters considered by customers while buying the snacks.



2.2 DATA COLLECTION

Data collection methods:

The data has collected from both primary and secondary data.

Primary data

Primary data has collected through observations and by interaction with retailers and consumers.

EX: Interview with consumers, Interview with Retailers and observations - In retail shops and

wholesale market

Secondary data

Secondary data collected from Company website and internet.

Tools for data collection: Observation and Interview methods.

The data is gathered through observation and interview methods in this research study “’Direct

observation” and “Face-to Face” interview is used to collect information from the retailers and

consumers on the daily basis. There were different types of retail outlets like supermarket,

Grocery stores and first club outlets where ITC has its distribution. The data is collected from

each of the above mentioned outlets personally by interrogation with the retailers.

SAMPLING METHOD:

Target Population: Retailers and consumers of Hubli region.

Sample Method: Simple random sampling method is used to observe the wholesalers, retailers

and consumers.

SAMPLING PLAN

Sample unit : Retailers and consumers in Hubli

Sampling frame : Hubli



2.3 BCG MATRIX ANALYSIS

HIGH LOW

STAR

Bingo Variants: Chips ,Mad angles,

Tedhe Medhe sub brand have variety of

flavors in each category

QUESTION MARKS

No Rulz which is baked products of

bingo

CASH FLOW

Bingo Sprinkled chilli and salted chips

are major cash flow for chips

DOG

Bingo starter’s chips which is made of

pulse did not pick up the market yet.

MARKET SHARE

2.4 Limitation of the study

The time was the constraint for the study.

Sometimes there is less co-operation from the consumers and retailers

The study which is carried out by choosing the random samples but not all.

To interview with the consumers in a short time period was more challenging.

MA

RK

ET

GR

OW

TH

RA

TE

HIG

H

LO

W



CHAPTER- 3

SWOC ANALYSIS OF THE RESEARCH

STRENGTH

ITC Bingo has a well-established brand presence in market and has lots of varieties this gains

importance of the study for approaching wholesalers, retailers and consumers.

The strong distribution network of ITC helped me in collecting the data easily from retailers

in a extensions areas as well.

The retailers and consumers of ITC bingo were very co-operative both helped me in sharing

the information about the product performance in Hubli region.

Excellent products advertising, diversified business of ITC created a brand awareness among

the consumers.

WEAKNESS

Retailers were refused to spare sufficient time for interaction because of their busy schedule

Health conscious people were not interested to share their views.

OPPORTUNITIES

This research helps for ITC Bingo for increasing the market share in Hubli region.

It helps in concentrating and targeting all segments of consumers by introducing new

varieties of snacks.

CHALLENGES

Retailers were always refused to disclose their bills because of this it was very difficult to get

the accurate net rate of other branded chips.

Presence of regional competitors in Hubli region were more, this led to the confusions which

should be considered.

Time was the constraint for the study to cover all sample unit.



CHAPTER – 4

OUTCOMES OF THE STUDY

Distribution network

The distribution network of ITC is well managed and has strong access to the remotes places of

Hubli city and also they have extended their service to nearby villages and entered rural market.

From the study it is identified and observed that ITC is Bingo chips are available in almost all the

wholesale and retail outlets. The distribution network of ITC covers the entire market of Hubli this

helps them stock their products easily in the stores.

Performance and Competition.

ITC Bingo has a monopoly market in wholesale segment there is rare competition for ITC Bingo

this is because of the schemes offered by company and loyalty programs for wholesalers are

influencing wholesalers to buy at larger quantity. The Performance of ITC Bingo in a wholesale

segment is excellent and majority of wholesalers were happy with the on time service of the

company. And one more reason for increased sales in the segment is all the rural retailers across

the city will come to Hubli to purchase the products directly from wholesalers.

As the ITC Bingo snacks are enjoying monopoly in wholesale market but when it comes

to retailers ITC has huge competition from PepsiCo’s Lays, Britannia chips, Too yum chips, Parle

chips and other local players. ITC has an excellent sales of Rs 5 chips and dominates the retail

market in the city but from the study it is identified that even though ITC Bingo has good sales and

stronger brand presence in retail they are not able to sell Rs 10 size of chips packets in large

quantity. This due to the poor availability of stocks. The distributor is not receiving the fresh stocks

and the stock is limited to only particular flavors. And retailers are continuously complaining about

the freshness of stock as the company is supplying chips which are near to expiry or old stock. In

the Rs 10 chips segment Lays has maximum market share in Hubli city and the availability of stock

is higher. So this is one of the main reason why ITC Bingo not able to increase the market share of

chips.



Consumer views

Majority of consumers in Hubli region prefer to buy Bingo because of the quality, Brand image

and varieties offered by Bingo are more compared to other Brands. ITC has extensive advertising

strategies which is filled with humor ad’s. This has impact on consumers and made the consumers

to visit the store more often. From the study it is also identified that consumers prefers chips for

consumption on a weekly basis and the major segment includes adults and children.

In the interview process with consumers it is also noted that consumers most preferred flavors are

tomato, chilli, salt and cream onion and the size of chips which consumers buy usually are Rs 5

and Rs 10 in the Hubli city and the main parameter considered by consumers while buying the

chips is quality.

Feedback by consumers

The image of the Bingo chips are positive most of the respondents says that the quality and taste

of the product is good and are satisfied with the product. Some of the consumers felt that it could

be better if Bingo increases its quantity.

Other Findings

Wholesaler are selling the Bingo chips at a lower prices to retailers this is leading losing of

retail outlets from the ITC authorized distributors.

In areas like Bus stop and railway station (they are referred as Institution channels) the

performance of Bingo is average. It is because of the net rate given by ITC distributor is higher

i.e. around Rs 4.34 for Rs 5 chips, where as other brands like Parle, Britannia and local brands

offering at cheaper rates. So here the retailers are unhappy with prices offered by distributors

and the margin is not working out for retailers so they only prefer to buy Rs 10 chips and this

also considered to be major reason where Bingo is not able to expand its market.



The sales of Rs 10 chips i.e. Sprinkled chilli and sprinkled salted having a excellent demand in

both wholesale and retail market.

Majority of retailers stocks Bingo snacks only because of the consumer demand for the product.

As the retailers purchases lesser quantity of chips and most of them will be not eligible to claim

the company schemes and majority of retailers are unhappy with the margins offered by ITC

distributors. - To become eligible for company schemes the retailers should purchase minimum

of 110 pieces box.

The sales of Bingo chips is observed to be lower in the premises of college areas. PepsiCo Lays

has good sales and demand in such areas.

Most of the retailers and wholesalers gives preference to quality and adopts quality as a criteria

to sell the product.

The major competitor of ITC Bingo is Lays and it has similar variants as Bingo and packaging,

color size and quantity offered are also same.

New entrant Balaji Wafers limited is one of the leading brands in Gujarat, Maharashtra, Goa

and Rajasthan. Now it has entered in to Hubli region and slowly establishing the market by

offering similar varieties with higher quantities at discounted rate to both wholesaler and

retailers. Balaji is observed to be a potential threat for the Bingo in Hubli region.

Super market and Hyper market in Hubli regions stocks more of Rs 20 and Rs 50 chips with

buy 1 get 1 offers at the stores.



Recommendations

Increasing the net weight of the Bingo chips where in the competitors are capturing the

market on this parameter.

As the people are getting health conscious the company should come with more varieties

of baked products so that it can target on all segments and increase its sales.

I would like to also suggest that company shall come out with attractive schemes and

offers for Retailers to stock higher SKU of Bingo snacks.

ITC should effectively use push and pull strategies to capture and win the larger market

share.

As few Retailers were complaining about the air issues of packets since ITC has its own

packaging division it can best utilized to solve issue and also it can come up with cost

effective and innovative packaging for Bingo to gain the consumer attention.

ITC spends lot of money on display activities on its premium products in same way the

company should encourage the innovative visibility of Bingo in retail outlets and also it

should have sales promotion activities.

Retailers facing the problem with return policy of ITC and Claiming of return on

damaged products is a lengthy procedure it takes up-to one month the company should

accept and replace the damaged products quicker and revise its existing return policy

procedure.

ITC has opportunities to enter to the different segments of snacks both western and Indian

namkeens.

As in the findings I have mentioned about the ITC Bingo is struggling with Rs 10 SKU

to encounter those problems myself conducted innovative display activities in the retail

outlets to increase the billings of Rs 10 SKU.



CHAPTER 5 –

EXPERIENCE, LEARNING AND CONCLUSION

Experience:

I had great learning experience from this internship and by being a part of ITC limited I got to know

how the FMCG sales of any business works. In this type of sector it very essential to maintain the

good reputation and good relationship with wholesalers, retailers and consumers by providing

quality of services. This internship was like a training for me by going to routes with salesman and

understanding the things which is going around the market and others aspects like how the salesman

approaches the retailers to convince them to buy the products.

Learning

ITC is one among top FMCG and fastest growing business in the world.

ITC is an Indian Company.

The study helped in understanding how the FMCG first hand sales of ITC works.

The study helps to understand the diversified business and distribution channel of ITC.

The study helps in understanding of roles and responsibilities of Area managers, Area

Executives, Supervisors and sales executives.

The study helped in understanding about the different types of FMCG products like ready to

eat foods and personal care products.

I have come across how the targets were fixed to sales executives for their business

achievement targets.

This study helps in understanding the different schemes, discounts and loyalty programmes

offered by the company to all the wholesalers and retailers.

Working of PDA - Personal Digital Assistant it is a App used by Salesman to take orders from

retailers.



Conclusion

As part of study I had great experience of learning from the project, being a part of ITC limited. I

got to know about the how the sales and distribution of any FMCG business is carried out through

a study on understanding the market of Bingo Snacks in Hubli region. The overall study was

regarding to know the customer base of Bingo, to understand about the competitors and

performance of Bingo both with retailers and wholesaler in the market over its competitors. From

the study I conclude that the ITC bingo has potential market in Hubli region and has many

opportunities to grab the share of the other brands.

ITC Bingo has monopoly market in wholesale business since it has been facing some issues with

retailers in terms of margin offered and old stock availability of 10 Rs chips with limited flavor

from this the company is not able to increase the market share but it can resolved with attractive

revised company schemes and by providing the fresh stocks to distributors and also the some of

the customers were unhappy with quantity offered in potato chips category so it is suggested to

company for increasing the net weight of the Bingo chips where in the competitors are capturing

the market on this parameter.

The sales executives of the company in Hubli should also look up using of catalogue for

communicating about the information about the product to uncovered areas to increase the market

size of the Bingo.

I convey my thanks to my internal & external mentor, the Area Executive of Hubli (Foods section)

and also all the staff for providing support in completing the project.



BIBLIOGRAPHY

Websites

1. https://www.itcportal.com/about-itc/index.aspx

2. https://www.researchandmarkets.com/

3. https://www.investindia.gov.in/team-india-blogs/fmcg-industry-overview

4. https://www.ibef.org/industry/Fmcg-presentation

http://www.itcportal.com/about-itc/index.aspx

http://www.researchandmarkets.com/

http://www.investindia.gov.in/team-india-blogs/fmcg-industry-overview

http://www.ibef.org/industry/Fmcg-presentation



Annexure

Weekly Report - Work Done Diary



PRODUCT KNOWLEDGE INFORMATION OF ITC BINGO AND OTHER BRANDS

SNACKS in HUBLI REGION

ITC Varieties Price Net weight

Bingo potato chips Sprinkled salt 10/- 28gm

Sprinkled chilli 10/- 28m

Sprinkled salt 20/- 60gm

Sprinkled chilli 20/- 60gm

Bingo potato chips Masala 5/- 12gm

Tomato 5/- 12gm

Chilli 5/- 12gm

Cream and onion 5/- 12gm

Tomato and chilli 5/- 12gm

Salted 5/- 12gm

Tomato 10/- 25gm


Bingo Tedhe Medhe Tomato masti 5/- 22.5gm

Masala tadka 5/- 22.5gm

Achari 5/- 22.5gm

Tomato masti 10/- 50gm

Masala tadka 10/- 50gm

Achari 10/- 50gm

Bingo Mad Angles Tomato madness 5/- 18gm

Masala madness 5/- 18gm

Achari masti 5/- 18gm

Chat masti 5/- 18gm

Peri peri 5/- 18gm

Tomato madness 10/- 40gm

Masala madness 10/- 40gm

Achari masti 10/- 40gm

Chat masti 10/- 40gm

Peri peri 10/- 40gm



Bingo tangles Tomato 5/- 18gm

Masala 5/- 18gm

Salted 5/ 18gm

Bingo No Rulz Cheese 5/- 15gm

Masala 5/- 15gm

Balaji Varieties Price Net weight

Potato chips Masala 5rs 18gm

Tomato 5rs 18gm

Salted 5rs 18gm

Banana 5rs 30gm

Chat masala 5rs 18gm

Cream and onion 5rs 18gm

Chatka patka 5rs 30gm

Wafers cheese 5rs 30gm

Lays Varieties Price Net weight

Potato chips Masala 5/- 15gm


Chilli 5/- 15gm

Hot and sweet chilli 5/- 15gm

Tomato 5/- 15gm

Kurkure Kurkure 5/- 21.5gm

Masala 10/- 28gm


Chilli 10/- 28gm

Hot and sweet chilli 10/- 28gm

Tomato 10/- 45gm

Kurkure 20/- 90gm

Doritos Cheese and sweets 20/- 44gm

Classic salted 20/- 52gm

Cheetos cheese 10/- 30gm

Wafers style Wafers style salted 10/- 28gm

Wafers style chilli 10/- 28gm



Too yum Varieties Price Net weight

Chips Multigrain chips

chat 5/- 14gm

Multigrain chips

tomato 5/- 14gm

Veggies stick 5/- 14gm

Karakare chilli 5/- 19gm

Noodle masala 5/- 19gm

Munchy masala 5/- 19gm

Multigrain chips

chat 10/- 28gm

Multigrain chips

tomato 10/- 28gm



Noodle masala 10/- 42gm


Parle Varieties Price Net weight

Chips Piri piri 5rs 15gm

Full toss 5rs 23gm

Tomato 5rs 15gm

Chat 5rs 15gm


Subtle onion 5rs 15gm

Britannia Varieties Price Net weight

Time pass tomato 5rs 18gm

Pudina 5rs 18gm

Pickle 5rs 18gm

Noodle masal 5/- 19gm


Multigrain chips

chat 10/- 28gm

Multigrain chips

tomato 10/- 28gm



Noodle masal 10/- 42gm




Parle Varieties Price Net weight

Chips Piri piri 5rs 15gm

Full toss 5rs 23gm

Tomato 5rs 15gm

Chat 5rs 15gm


Subtle onion 5rs 15gm

Britannia Varieties Price Net weight

Time pass tomato 5rs 18gm

Pudina 5rs 18gm

Pickle 5rs 18gm

Haldiram Varieties Price Net weight

Chips Salted 5rs 13g

Cream and onion 5rs 13g

Masala 5rs 13g

Chilli 5rs 13g

Tomato 5rs 13g

Halke fulke chips 5rs 16gm

NOTE:-

I have included the product information of major competitors only.

Variants of other brands is recorded based on the stock of retailers.

Documents

A REPORT ON INTERNSHIP PROJECT AT ITC LIMITED