SUMMER TRAINING PROJECT REPORT ON SALES & DISTRIBUTION Training Undertaken at

Submitted towards the partial fulfillment of requirements Of Rajasthan Technical University, Kota for the award of Master of Business administration (M.B.A)

INTERNATIONAL SCHOOL OF INFORMATICS & MANAGEMENT, JAIPUR

Session (2010-12)

Submitted to: Ms. Sumedha Shandilya

Submitted by: NITESH AGRAWAL MBA III semester1

ACKNOWLEDGEMENT

A work is never a work of individual. I owe a sense of gratitude to the intelligence & cooperation of those people who had been so easy to let me understand what I need from time to time for completion of this exclusive project. I want to express my gratitude towards Mr. J.P.Lata Marketing Manager of ITC for giving me an opportunity to complete this project. This project is due to the experience and knowledge of several people. Though I am unable to mention all of them individually, any debt or gratitude to them is not less. I am very thankful to the ITC for the facilities provided to me to complete my project work.

(Signature of Student)

Name of the Student

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TABLE OF CONTENT

S.NO

TOPIC

PAGE NO.

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

PREFACE INTRODUCTION OF THE COMPANY ORGANAZITIONAL STRUCTURE PRODUCTS OF THE COMPANY PERFORMANCE OF THE COMPANY CHALLENGES FACED BY ITC RESEARCH PROBLEM SCOPE AND OBJECTIVE REVIEW OF LITERATURE HYPOTHESIS RESEARCH DESIGN COLLECTION OF DATA ANALYSIS OF DATA INTERPRETATION OF DATA

5 6 25 33 53 58 61 63 66 70 72 76 78 81

FINDI NG

93

3

16. 17. 18.19.

CONCLUSION SUGGESTION LIMITATION ANNEXURE BIBLIOGRAPHY

95 97 99 101 105

20.

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PREFACE

To start a business the success depends upon the research done about the particular & consumer attitude the product. Marketing research plays a vital role in a business to make it successful. I tried to put my best effort to complete the task on the basis of skills. I am having this study done about the flour sales & distribution in the city of different companies. In order to know about the opportunities in the mareket.Inthe study, an attempt is made to cover every aspect of these objectives to find out solutions for the company.

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COMPANY INTRODUCTION

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COMPANY OVERVIEW

ITC is one of the India`s foremost private sector companies with a market capitulation of nearly US $ 15 billion & a turnover of US $ 6 billion. Rated among the World`s Leading Companies by Forbes magazine, ITC ranks third in pre-tax profit among India`s private Sector corpoiration.ITC has a diversified presence in Cigarettes, Hotels, Paperboard & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards & other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging & Agri-Export, it is rapidly gaining market share even in its nascent businesses of Branded Apparel, Greeting Cards & Packaged Foods & Confectionery. As one of India`s most valuable & 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).

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ITC`s diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management & acknowledged services skills in hoteliering. Over time, the strategic forays into new businesses are expected to grammar a significant share of these emerging high-growth markets in India.

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ITC VISION

Sustain ITCs position as one of the Indias most Valuable corporations through world Class performance, creating growing value For the Indian & the companys Stake holders.

ITC MISSIONTo enhance the wealth generating capability of Enterprise in a globalizing environment, delivering Superior & sustainable stake holder value.Over the years, ITC has evolved from a single Product Company to a multiple business corporation.Its business separated over a wide spectrum, Ranging from cigarettes & tobacco to hotels Packaging, paper & paperboards & international.

Commodities trading.ITC defined Corporate Governance as a systemic Process by which companies are directed & controlled to

Enhance their wealth generating capacity.Since large corporation employ wast quantum of a societal Resources, we believe that the governance process should Ensure that these companies are managed in a manner that Meets stake holders aspirations & societal expectations.

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CORE PRINCIPLESITC`s Corporate Governance initiative is based on two core principles. These are Management must have the executive freedom to drive the enterprise forward without undue restraints; and

This freedom of management should be exercised with in a framework of effective accountability

CONTROLITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are preemptively and effectively managed.

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MOTO OF THE COMPANYListen to our customers & supply the ideal product at reasonable price

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HISTORY OF THE COMPANY

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HISTORY AND BACKGROUND

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 company`s existence. The Company celebrated its 16 birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee,(now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000.This decision of the Company was historic in more ways Than one. It was to mark the beginning of a long and eventful journey in to India` future. The Company`s headquarter building,Virgina House, which came up on that plot of land two years later,would go on to become one of Kolkata`s most venerated landmarks. The Company`s ownership progressively indianised, and the name of the Company was changed to I.T.C Limited in 1974. In recognition of the Company`s multi-businesses portfolio encompassing a wide range of businesses-Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specailty Papers, Agri-Exports,Food, Lifestyle Retailing and Greeting Gifting & Stationery-the full stops in the Company`s name were removed effective September 18, 2001. The Company now stands rechristened ITC Limited.

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In 1925 as a strategic backward integration for ITC`s Cigarettes business. It is today India`s most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened ITC-Welcome group hotel Chola`.The objectives of ITC`S Entry into hotels business was rooted in the concept of creating value for the nation.ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC`s Hotel`s business has grown to occupy a position of leadership, with 66 owned and managed properties spread across India. In 1979, entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13,2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company`s Tribeni Tissuses Division to from the Paperboards & specialty Papers Division. ITC`S paperboards` technology, productivity, quality and manufacturing processes are comparable to the best in the world. In 2004 ,ITC acquired the paperboard manufacturing facility of BILT Industrial PACKAGING Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. This KOVAI Unit allows ITC to improve customer service with reduced lead time and a wider product range. On 1985, ITC SET up Surya Tobacco Co. in Nepal as a joint venture with the reputed Soaltee group. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).

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In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarettes industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies TTD was merged with the Bhadrachalam Paperboards Division to form Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the International Business Division (IBD) for export of agri- commodities. The division is today one of Indias largest exporters. ITCs unique & now widely acknowledged e- Choupal initiative began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 6 states covering over 3.1 million farmers. In 2000, ITCs Packaging business high quality greeting cards under the brand name Expressions. Launched a line of In 2002 , the product range was enlarged with the introduction of the Gift wrappers, Autograph books & Slam books. In the same year, ITC also launched Expressions Matrubhasha, a vernacular range of greeting cards in eight. Language & Expressions Paper raft, a range of premium stationery products. In 2003, the company rolled out Classmates, arrange of notebooks in the school stationery segment. ITC also entered the Lifestyle retailing business with the Wills Sport range of international quality relaxed. Wear for men & women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) & Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its mens wear brand , John players, in 2002. In 2000 . ITC pun off its information technology business into a wholly owned subsidiary , ITC InfoTech India Limited. To more aggressively pursue emerging opportunities in this area.15

ITC made its entry into the braded &packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A mare broad- based entry has been made since June 2002 with brand launches in the Confectionery, Staples & Snacks Foods segments. In 2002, the mint-o trademark was acquired & relaunched in orange &mint flavors. In the same year Candy man was added to the confectionery range & Aashirvaad Atta was rolled out. The Aashirvaad brand now extends to ready-to-eat foods, ready-to-cook pastes & salt. In 2003 the Candy man range was expanded to include deposited candies & clairs. In 2003 Sun feast biscuits were launched & mint-o lemon mint flavor was introduced. In 2004 the Kitchens of India brands was extended to cooking pastes. In 2002, ITCs philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangle Deep , Vaxlit, Delite & Aim.

ITCs foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITCs popular agarbattis brands include Spriha & Mangle Deep across a range of fragrances like Rose, Jasmine, Sandalwood, Madhur, Sambrani & Nagchampa.

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ITC Registered Office

ITC Limited Virgina House 37 J.L Nehru Road Kolkata Pin Code 700071 INDIA

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An overview of ITC Saharanpur Factory

ITC Saharanpur Factory was established in the year 1926 and is the second oldest among all the cigarette factories after Merger. It manufactures processed cut tobacco and packed cigarettes. It has a built up area of 26334 s-m. The facilities include the production block consisting of primary manufacturing department (PMD) & secondary manufacturing department (SMD) ,leaf go down ,WMS go down , FG (shipping department) , utilities , service block , administrative block & gate house .

Tobacco leaves are purchased from farmers through auction by ILTD (leaf tobacco division) & are sending to different ITD factories depending on their requirement. Tobacco leave is divided in 2 parts, the lamina (leaf part) & the stem (the midrib separated from lamina by threshing). Tobaccos leaves are received in leaf go down & stored till the time they are issued to PMD for processing.

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The PMD process in 2 separated lines the (the lamina & the stem line respectively) which result in processed cut tobacco which gets stored in Cut Tobacco Store (CTS). From CTS it is issued to SMD for production of packed cigarettes. The SMD is divided in 2 sections the maker & the packer sections. Wrapping materials stores (WMS) materials are supplied from WMS go down at this state both the maker & the packer for production. WMS materials are all other things cigarettes packet other than the tobacco the maker is responsible for producing cigarettes sticks & the packer section produces packed cigarettes These are then sent to the finished goods go down for temporary storage & eventual shipment from there.

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CAREERS WITH ITC ENTRY LEVEL RECRUITMENTITC visits premier Engineering and Management campuses every year to induct quality talent for its various Businesses.

Manufacturing

ITC inducts talent for the Technical function from the 5 IITs (Chennai, Delhi, Kanpur, Kharagpur, Powai) and some of the NITs. Engineers from disciplines such as Mechanical, Electrical and Electronics, Production Engineering, Chemical and Civil are considered for placement.

The process starts in August each year with a campus visit and a pre-placement presentation. This provides an opportunity for young aspirants to learn more about the Company, its history and achievements, its corporate strategy, details of its various businesses and the kind of careers they can look forward to.

The selection process is objective and robust. A range of selection tools are used. These include assessment centres, group tasks and indepth personal interviews.

Candidates found suitable for employment are immediately given offers to join ITC in July of the following year. After a comprehensive induction programme, they are assigned to various businesses of the Company.

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Marketing and Human ResourcesITC sources talent from the premier Management Institutes of the country for the Marketing and HR functions. These campuses include the IIMs, ISB, XLRI, FMS, IIFT, TISS, JBIMS and Symbiosis.

The pre-placement presentation at campuses, normally in September/October each year, provides an opportunity for young aspirants to know more about the Company, its history and achievements, its corporate strategy, details of the various businesses and the kind of careers they can look forward to.

During these visits, ITC also selects first-year students for Summer Internships during April to July of the following year.

A team of ITC managers visits campuses once again between December and March for final placement. The process consists of group discussions and personal interviews preceded by psychometric tests and assessment centres. Employment offers are made to selected candidates immediately. On joining ITC in July, candidates undergo an induction programme before being assigned to one of the Company's businesses.

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Trading, Sourcing and LogisticsITC visits premier institutes such as IIMA, IIFT, IRMA and MANAGE to induct talent for its Agri Business Division.

Pre-placement presentations at campuses normally take place in September/October each year. These presentations provide an opportunity for young aspirants to know more about the Company, its history and achievements, its corporate strategy, details of its various businesses and the kind of careers they can look forward to.

During these visits, first-year students are selected for Summer Internships with ITC in April to July of the following year.A team of ITC managers visits these campuses once again between December and March for campus interviews. The process consists of group discussions and personal interviews preceded by psychometric tests and assessment centers.

Employment offers are made to selected candidates immediately. On joining ITC in July, candidates participate in an induction programme. Thereafter they are assigned to responsibilities in Trading, Sourcing and Logistics in the Agri Business Division.

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FinanceITC recruits entry-level talent for the Finance function from amongst qualified Chartered Accountants and MBAs specializing in Finance.

Candidates are short-listed for selection from a pool of applicants that apply to ITC on-line through the Company's portal at www.itcportal.com. Recruitment of entry level talent in the Finance Function takes place twice a year.

Preliminary interviews are held at selected locations. The short-listed candidates are called to Kolkata for the final selection process which extends over two days. The selection process comprises psychometric tests, assessment centers, group tasks and personal interviews. The interviewing panel looks for a strong conceptual base in finance and accounting. Effective inter-personal skills, integrity, intellectual rigour, a "will do" attitude, creativity, leadership and high energy are other essential attributes.

Candidates who receive offers of employment undergo a comprehensive induction programme before being assigned to the Internal Audit function. The tenure in the Internal Audit function normally extends over a period of 3 years. Following this, they are assigned operational responsibilities in one of the Company's businesses.

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Manfred Boden (West-Germany) obtains 1980-81 unsolicited computer print-outs from "spirit" comunicators. Before that he received telephone calls. Until 1983 he has also unsolicited contacts with communicators of non-human evolution.

Hans Otto Koenig developed new spirit communication technologies from 1982 to 1988, employing extremely low frequency oscillators, as well as lights in the ultraviolet and infrared range. In 1983 he appeared on a popular radio program on Europes largest radio station, Radio Luxembourg. The host, Rainer Holbe, had Koenig set up his equipment under close supervision of the station engineers. One of the engineers asked if a voice could come through in direct reply to a question, and a voice quickly replied, We hear your voice. Otto Koenig makes wireless contact with the dead. Stunned, Rainer Holbe addressed the millions of listeners across Europe, I tell you, dear Listeners of Radio Luxembourg, and I swear by the life of my children, that nothing has been manipulated. There are no tricks. It is a voice, and we do not know from where it comes.

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ORGANIZATION STRUCTURE

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Formals 3 Tierd governance structure : Board of director:Comprising executive (4) &non executive directors (11) strategic supervision

Corporate management committee:Comprising executive directors & senior managers strategic management

Divisional Chief executive & divisional management committee:Executive management

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SHARE HOLDERS

BOD

CORPORATE MANAGEMENT COMMITTEE

(CMC)

DMV (HOTEL)

DMC (PAPER)

DMC (TOBACCO)

DMC (IT)

DMC (AGGI)

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MANAGEMENT COMMITTEEBoard of DirectorsChairman Yogesh Chander Deveshwar

Corporate Management Committee

DirectorsY C Deveshwar Chairman A Singh Member28

K Vaidyanath Member K N Grant Member

ExecutivesN Anand Member A Nayak Member T V Ramaswamy Member S Sivakumar Member K S Suresh Member R Tandon Member B B Chatterjee Member & Secretary

Executive Vice President & Company SecretaryBiswa Behari Chatterjee

General CounselKannadiputhur Sundararaman Suresh

Investor Service Centre37 Jawaharlal Nehru Road, Kolkata 700 071, India Phone: 033-2288 6426/2288 003429

Fax: 033-2288 2358 E-mail: isc@itc.in

AuditorsDeloitte Haskins & Sells Chartered Accountants, Kolkata

Board Committees Investor Services CommitteeA V Girija Kumar Chairman P B Ramanujam Member B Sen Member K Vaidyanath Member B Vijayaraghavan Member B B Chatterjee Secretary

Compensation CommitteeS H Khan Chairman A Baijal Member S B Mathur Member H G Powell Member B Sen Member

Nominations Committee30

Y C Deveshwar Chairman A Baijal Member S Banerjee Member A V Girija Kumar Member S H Khan Member S B Mathur Member D K Mehrotra Member P B Ramanujam Member

Sustainability CommitteeY C Deveshwar Chairman S Banerjee Member H G Powell Member A Ruys Member B Sen Member B Vijayaraghavan Member B B Chatterjee Secretary Anup Singh Krishnamoorthy Vaidyanath Kurush Noshir Grant

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Executive DirectorsAnil Baijal Angara Venkata Girija Kumar Serajul Haq Khan Sunil Behari Mathur Dinesh Kumar Mehrotra Hugo Geoffrey Powell Pillappakkam Bahukutumbi Ramanujam

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PRODUCTS OF THE COMPANY

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LINES OF BUSINESS INDIA TOBACCO FOOD DIVISION LIFESTYLE RETAILING BUSINESS PERSONAL CARE PRODUCT STRATEGIC BUSINESS UNIT EDUCATIONARY & STATIONARY PRODUCT STRATEGIC BUSINESS UNIT SAFETY MATCHES STRATEGIC BUSINESS UNIT AGARBATTIS STRATEGIC BUSINESS UNIT HOTEL DIVISION PAPER BOARD & SPECIALITY PAPER DIVISION PACKAGING & PRINTING STRATEGIC BUSINESS UNIT AGRI BUSINESS DIVISION

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CIGARETTES & TOBACCO

Initially ITC was dealing only in Cigarettes & Tobacco.It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment.

In pursuit of international competitiveness, ITC has launched four brands Checkers Cigarettes, Hi-Val Cigarettes, Royale Classic Cigarettes and Gold Crest Cigarettes In the extreme competitive us market recently ITC has launched Royale Classic Cigarettes, gold cut and scissors filters Kings Cigarettes in the Middle East. The response to these brands has been encouraging.35

The requirement to print pictorial health warnings on tobacco product packs under the 'Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003' (COTPA) and the consequential constriction in consumption will jeopardize the livelihood of 35 million people dependent on the tobacco industry. Restrictive measures of this nature should be preceded by the creation of alternative sources of income for those so affected.

Packaging & Printing Business-

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

Hotels-

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In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India.

Competitors:ITC had a competition from the Taj group of hotels and some international hotels like Hyatt hotels, Hilton and le meridian. ITC has its hotels in every major city across India. The standard of the ITC hotel comes from the fact that the Delhi based Maurya Sheraton is the only hotel that is proffered by government of India for providing hospitality to their international guest and delegates.

Future prospects:With the success in hotel industry the company must move on further, ITC should open a family restaurant chain or fast food restaurants in the metro cities. This would definitely be a success. ITC should try to expand further in foreign countries

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PACKAGING & PRINTING BUSINESS

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002.

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The different paperboard brands of ITC are:Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber Propac

Solid Bleached Sulphate Boards: Safire Graphik, Art Maestro, Carte Persona

Poly coated boards: Indobev, Indobarr

Recycled boards: Ecoviron, Fusion

ITC is one of the world's most modern and contemporary manufacturers of packaging and graphic series of boards. ITC's Paperboards business has a manufacturing capacity of 360,000 tonnes per year and is India's market leader across all carton-consuming segments including cigarettes, foods, beverages, pharma, personal care & toiletries, durables and match shells.

The business posted steady growth with segment revenues improving by 11% during the quarter. This was driven by a 14% improvement in volumes of the Value Added Portfolio of paper and paperboards and robust performance of the packaging business.

ITC is the largest exporter of coated boards from India. The Company exports nearly 20 per cent of the coated boards it produces. Its coated boards fulfill exacting customer requirements in

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Malaysia, Sri Lanka, Bangladesh, Iran, Australia, UAE, Saudi Arabia, Singapore, U.K., Italy, Netherlands and China.

The new pulp mill project is nearing completion and is slated for commissioning in the last quarter of this fiscal. Steady progress is also being made in the completion of the new paper machine. The pulp mill with a capacity of 120000 tons of hardwood pulp will provide a distinct cost advantage, apart from removing the dependency on imported hardwood pulp, which has seen an unprecedented run-up in prices, adversely affecting margins across the industry. The paper machine will augment capacity by about 100,000 TPA in 2008/09 and will drive growth based on strong forward linkages with the stationery business.

Agri Business DivisionAlso in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Sager' was inaugurated in August 2004 at Sehore. On the rural retail front, 24

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'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. Farmer empowerment, Choupal Saagar, Choupal Fresh, Choupal Pradarshan Khet Processed Fruits, Marine Products, Customer Centric Approach.

The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalizing markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.

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ITC's example also shows the key role of information technology - in this case provided and maintained by a corporation, but used by local farmers - in helping to bring about transparency, to increase access to information, and to catalyze rural transformation, while enabling efficiencies and low cost distribution that make the system profitable and sustainable.

Critical factors in the apparent success of the venture are ITC's extensive knowledge of agriculture, the effort ITC has made to retain many aspects of the existing production system, including retaining the integral importance of local partners, the company's commitment to transparency, and the

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respect and fairness with which both farmers and local partners are treated. The sustainability of the engagement comes from the idea that neither the corporate nor social agendas will be subordinated in favor of the other.

Lifestyle Retailing business-

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

COMPETITORS AND SUGGESTIONS:

ITC had proved to be a tuff competitor in this segment too against the established brands like MONTE CARLO, peter England, Allen Solly and many more. The launch of Miss Players was a good move by the company as it gives an advantage to the company for introducing a complete collection especially for women. Only few companies had introduced such exclusive brands. The company can move on with the introduction of new products like jackets, winter shawls.

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Information TechnologyIn 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of Indias IT-enabled services fastest growing global IT and companies and has

established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment

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Safety MatchesIn 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

FOODITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In just seven years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing.

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.

ITCS MINTO mouth freshener is emerging as a recognizing brand apart from rival PREFETTIS HALLS. A blend of effective distribution, aggressive trade level activity and consistent marketing efforts have helped the business to gain a substantial market share in this segment.

Competitors:Britannia Parle Priyagold

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IMPROVEMENTS NEEDED:

The steady growth of the company is satisfactory since it had launched late in the market but the significant growth in the product is amazing. In my view company should concentrate on the brands by adding more flavors. for attracting kids company can introduce free gift items like what lays had done previously when it had introduce tazos. During the research it is fund that some retailers are not getting product due to the reasons like shortage, no approach of salesman etc so being new in the market we have to firstly satisfy 4Ps to get success.

Agarbattis (incense sticks)

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include

superia and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. The Expressions range of Aromatic candles comprises Romance - the Decor Amour - the Series, Adora

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Personal Care-

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

The 'Fiama Di Wills' range of shampoos and shower gels are now available at all major markets. The company has recently launched Fiama Di Wills Polishing Drops (conditioner), which is enriched with Avocado Oil and Burdock extract to make the hair feel smooth and shiny. These superior products are an outcome of years of R & D based product development. They reflect ITC's deep consumer insight.

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COMPETITORS:

The company had entered this segment very late; the market is still dominated by GARNIER and LOREAL with HINDUSTAN UNILEVER, PROCTOR AND GAMBLE and COLGATE PALMOLIVE just behind them. It would be a matter of time for ITC to show its presence, since it had become a name of trust among the people of India.

CONCLUSION:

As per the company introduction of soap and shampoos, it can move on with the introduction of cosmetics to the Indian market. It need to do more efforts in order to raise the sale of personal products because products other than superia are not doing well.

Education & Stationery Products

ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering. ITCs stationery Brands are marketed as Classmate and Paperkraft, with Classmate addressing the needs of students and Paperkraft targeted towards college students and executives. Classmate Fun N Learn , Classmate Invento , Classmate pens, Paperkraft are the stationery products of ITC.

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COMPETITORS:

The major competitor of ITC in this field is NAVNEET publication whose notebooks are very popular among people.

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CONTRIBUTION IN THE MARKET:

The Classmate brand alone contributes about Rs 150 crore. Data estimates the market for school and education sector at Rs 5,000 crore. Classmate lack behind the variety if compared to Navneet publications. With the introduction of more varieties it can be a market leader.

The GREETING CARD section includes EXPRESSION greeting card which are gaining huge popularity among the people .The main reasons behind is that they are available I wide range apart from ARCHIES and HALLMARK which are very expensive.

The company can have a growth in this segment because of its quality in its brand and at a reasonable price. On the other hand hallmark is charging more because of its brand name. The card can be of wider acceptance if remain in same price range.

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COMPANY PERFORMANCE

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FINANCIAL PERFORMANCEIn total sales of the ITC, FMCG division enjoys maximum share. FMCG is having the maximum sales and that too in cigrate manufacturing in which company is a national player and oldest in this manufacturing field. The company is having negative profits in FMCG-other than cigrate as company has just entered in this segment ,inspite of this, company is having 83.46% growth in it and loss company is having in its. FMCG-other than cigrate is all due to initial investment in sales and administration expenses in this division. In agricultural division company net sales has lowered down but the overall profit i.e PBT has increased by 98.30% which shows the division has been able to maintain its below the line expenditures i.e selling and administration expenses. About hotel business, company is having loss in it and all this is because of that terrorist attack in Mumbai on Taj hotel last year which has shaken the faith of public and also a step reduction in international travel as a fallout of the global economic crisis has triggered a significant slide in occupancies and average room rates and the company has to bear a loss in the of month of September 2009. In paper and paper boards Business Company is having 12% growth in PBT.

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Ten Years at a GlanceS.No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. YEARS 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GROSS INCOME (RS. IN CRORES) 8827.11 9982.46 11194.47 12039.92 13585.39 16510.51 19636.53 21966.84 23678.46 26862.98

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AWARDS

ITC`s Cigarettes business has won numerous awards for its quality, environmental management systems and product excellence. The Kolkata factory has won the prestigious Genentech Safety Gold Award for the year 20032004 in the manufacturing sector. ITC`s cigarette factories in Kolkata, Bangalore and munger have been awarded the OHSAS 18001 Certificate by Det Norske VERITAS (DNV) for their Occupational Health and Safety Management systems(OHSMS). ITC has been awarded the Best Manufacturer of Cigarettes and 3 Best Exporter of Tobacco Products for 2003, by the Tobacco Board of India. The Saharanpur factory has won the GOLD Award, 2003 on Occupational Safety from The Royal Society for the Prevention of Accidents (ROSPA). The Kolkata factory was the first cigrate factory in the world to receive the ISO 14001 accreditation for their environmental management systems. The Saharanpur and Bangalore factories have also received the ISO 14001 certification. All cigarette factories have ISO 9002 Quality Certification. The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best in Eastern Region) for 1998.

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The ITC has also received the prestigious Sword of Honors Award from the British Safety Council for highest standards of safety.

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CHALLENGES FACED BY THE COMPANY

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Mission Sunehra Kal, ITCs rural capacity building programme, now active in 11 States, empowers rural people communities to sustainable changes that make them

economically competitive and socially secure. In the rural communities where the mission has put down roots there is a new spirit of optimism and confidence. People have augmented and diversified their livelihoods. Education for children, employment for women, sanitation and family health have taken on a new urgency. Every family and every farm has resources to build a better future. Stagnation and deterioration have given way to change and improvement. To accomplish this change, ITC targets four problems, which it believes are the fundamental obstacles to productivity and growth in the farm sector : 1. Loss of productivity through soil erosion caused by intensification of land use and decline of water tables and forest resources. 2. Dependence on out-moded farm practices and inferior inputs. 3. Loss and disruption of farm incomes and non-availability of alternative livelihoods. Inadequate access to primary education and healthcare 4. Inadequate access to primary education and healthcare

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ITC enables farmers to implement solutions that are sustainable because they are 1. mutually reinforcing, 2. based on knowledge transfer and co-operative application of technology, 3. dependent on mobilisation and optimisation of local resources. The delivery model mobilises a four-way partnership between village communities, specialist NGOs, the Government and ITC, bringing to every initiative the best relevant management and technical expertise. ITC has also worked with State Governments in pioneering public-private partnerships. In Andhra Pradesh, 3,596 hectares of wasteland have been developed so far through a collaboration with the State Governments rural poverty reduction project, Indira Kranthi Padham, and its Comprehensive Land Development programme. ITC has also signed a landmark agreement with the Government of Rajasthan to bring 5,000 hectares under soil and moisture conservation in the drought-prone Bhilwara district. By augmenting water resources and forest cover and fostering organic soil management, ITC has enhanced farm productivity. It has simultaneously opened up new avenues of non-farm income and employment to reduce pressure on land.

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INTRODUCTION: RESEARCH PROBLEM

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RESEARCH PROBLEM

TO ANALYSIS THE SALES & DISTRIBUTION OF AASHIRWAD FLOUR IN DIFFERENTDIFFERENT PLACES OF JAIPUR CITY AND ALSO FIND OUT THE DIFFERSENCES BETWEEN ITS& ITS COMPETITORS PRODUCT.

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SCOPE AND OBJECTIVE OF THE STUDY

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OBJECTIVE OF RESEARCH TO ANALYSE THE SALES OF AASHIRVAAD IN THE CITY OF JAIPUR. TO ANALYSE THE DISTRIBUTION OF AASHIRVAAD IN THE CITY JAIPUR.

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REVIEW OF LITERATURE

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REVIEW OF LITERATURE DEFINITION OF SALES:

It is a process by which

-one identifies the people, who have a need. [ PROSPECTING] -one determines the needs of the people.[ NEEDS ]

-one determines a way of finding a solution to the prospect's problem.[ PROPOSE]

-one determines the way of communicating your product as a solution. [RECOMMENDING]

-one determines the value for the product for the prospect.[ ADVOCATING YOUR PRODUCT].

-one determines / sells benefits of the product to the prospect. [ SELLING BENEFITS]

and then creating a transaction for exchanging the product for a value. [ CLOSING THE SALE ]

and thus creating a satisfaction to the buyer's needs/wants. [ CREATING CUSTOMER SATISFACTION] ================================================67

Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in these chains will have their own specific needs; which the producer must take into account, along with those of the all-important end-user

.

DEFINITION OF DISTRIBUTION

THE ACT OF DISTRIBUTION MEANS ; apportionment. Something distributed; over -The geographic occurrence -The customers occurrence -The usage occurence -Others The process of distribution of goods/services could include -logistics -warehousing -transportation -order processing/ servicing etc etc

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Traditionally, distribution has been seen as dealing with LOGISTICS: how to get the product or service to the customer. It must answer questions such as: The two-step channel of distribution is for the producers to give the retail small quantities. Should the product be sold through a retailer? Should the product be distributed through wholesale? Should multi-level channels be used? How long should the channel be (how many members)? etc etc

The distribution channel

Channels A number of alternative `channels' of distribution may be available: Selling direct Mail order (including Internet and telephone sales) Retailer Wholesaler Agent (who acts on behalf of the producer)

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HYPOTHESIS

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HYPOTHESIS

(a) NULL HYPOTHESIS-Sales &distribution is essential for any business. Retailers areSatisfied regarding the sales & distribution of the company. They are satisfied with the quality of company product & also satisfied with packaging of the company.

(b) ALTERNATIVE HYPOTHESIS: Some retailers are unsatisfied with the sale of aashirvaad because they told us the rate of aashirvaad is more than other flour product. So they are unsatisfied.

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RESEARCH DESIGN

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RESERACH DESIGN

SAMPLE SIZE:A sample size of100 shopkeeper was taken.

SAMPLE PROCEDURE:Simple random sampling was done.

DATA COLLECTION INSTRUMENT:

The study is based on analysis and interpretation of a questionnaire which was distributed to 100 shopkeepers. The survey included open and ended questions the information about the new shopkeeper who are open the shop recently or in few days.

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SAMPLE DESIGN

Data collection (primary & secondnary). Graphical representation. Data representation. Select different-2 market of JAIPUR.

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SOURCES OF DATA

Both Primary data and secondary data were collected to meet the objective. Data is taken as per the requirements of the study. TO collect the primary data, we went to the different-2 market of Jaipur city. In this research we collect the data from 10 markets & about 100 shops for collect primary data, for collect the secondary data we use ITC website ,news paper ITC report, market trend,magzine article.

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COLLECTION OF DATA

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COLLECTION OF DATAFor collection of primary data we went to the different-2 market of Jaipur city. For collection of primary data.we prepared a questionnaire to know about the research. In this we meet the 100 retailers & ask him different-2 question to complete the objective that we have to done in the research objective. In collection of primary data we use ITC website, news paper ITC report, market trend, magazine article & other related information to complete the objective of research.

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ANALYSIS OF DATA

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ANALYSIS OF DATA

In Jaipur City there are mainly three brands competing each others. These are Aashirvaad , Shaktibhog & Local mill flour

S.NO

COMMODITY Aashirvaad

WEIGHT (KG.) 10 kg.

PRICE (Rs) 190-195 Rs.

1.

Flour Shakti Bhog 10 kg. 170-175 Rs.

2.

Flour

Local Mill 3. Flour

10 kg.

140-145 Rs.

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SALES ( IN %)

S.No

Area

Aashirvaad Flour

Shakti Bhogh

Local Mill Flour

1. 2. 3.

Malviya Nagar Mansarovar Jhotwara

40 30 25

40 40 35

20 30 40

4.

Vidhyadhar nagar

40

35

25

5.

Raja park

35

35

30

6.

Lalkothi Area

30

40

30

7.

Road no. 17 , VKI area ,Jaipur Sanganer

5

25

70

8.

15

35

50

9.

Sardar patel road

25

45

30

10.

Main city(zohri bazaar, badi chopad, choura rasta)

40

35

25

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INTERPRETATION

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INTERPRETATION

BASED ON THE FINDINGS OF THE SURVEY WE GET THE FOLLOWING RESULTS:

MALVIYA NAGARIn this area aashirvaad had got all generally all positive review from the shop.

Shakti bhog Local mill Aashirvaad

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MANSAROVARIn this area aashirvaad had got also all generally all positive review from the shop.

Shakti bhog

Local mill

Aashirvaad

83

JHOTWARAIn this area the sale of aashirvaad is lower than its competitors.

Shaktibhog

Local mill

Aashirvaad

84

VIDHADHAR NAGARIn this area position of Aashirvaad is best.

Shaktibhog

Local mill

Aashirvaad

85

RAJA PARKIn this area there are great competition in Shakti bhog & aashirvaad flour.

Shaktibhog Local mill Aashirvaad

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LAL KOTHI AREAIn this area position of Shakti bhog is better than aashirvaad flour.

Shaktibhog

Local mill

Aashirvaad

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ROAD NO.17 VKI AREA

Sales- It is the one of the areas where more labour class people are living thats why here Local mill flour is doing well.

Shaktibho g Local mill

Aashirvaa d

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SANGANERIn this area there is great share of local mill flour .

Shaktibhog

Local mill

Aashirvaad

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SARDAR PATEL ROADIn this area aashirwad stands weak than its competitors.

Shaktibhog

Local mill

Aashirvaad

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MAIN CITY AREAIn this area position of aashirwad is strong.

Shaktibhog

Local mill

Aashirvaad

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DISTRIBUTIONS.No 1 2 3 4 5 6 7 8 9 10 AREA MALVIYA NAGAR MANSAROVAR JHOTWARA ROAD NO.17 VKI AREA Aashirvaad R.S. R.S. R.S. O.B./R.S. Shakti Bhogh R.S. R.S. R.S. R.S. R.S. R.S. R.S. R.S. R.S. R.S. Local Mill Flour R.S. R.S. R.S. R.S. R.S. R.S. R.S. R.S. R.S. R.S.

VIDHYADHAR NAGAR R.S. SANGANER RAJA PARK LAL KOTHI SARDAR PATEL ROAD MAIN CITY R.S. R.S. R.S. R.S. R.S.

O.B=ORDER BOOK, R.S=READY STOCK

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FINDING AND CONCLUSION

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FINDINGS

After Conducting the Survey on Sales and Distribution of Aashirvaad Flour in the city of Jaipur, We find that the rate of Aashirvaad Flour is more than its Competitors ( Shakti Bhogh and Local Mill Flour). The Retailers said that product is strong, but due to high rate than others its sale is less than its competitors. We also find that the packaging of Aashirvaad is better than its competitors. We also find that the Distribution of ITC Aashirvaad is much better than others.

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CONCLUSION

Conclusion is that, JAIPUR is a good class city , so market position of aashirwad is strong. But in some areas like industrial area(VKI Area) , its position is weak due to its prices. If we talk about the flour of the weight of 10 Kg. The rate of local mill flour is between 140 145 Rs. To compare with Aashirvaad it is less than about 50 Rs. (Aashirvaad rate is between 190-195 Rs.) It means that they purchase more 3 Kg. flour in 50 Rs. If we talk about Shakti Bhogh it is also less than 20 Rs, in comparison to Aashirvaad (Shakti Bhogh rate is between 170-175 Rs.) So ITC should work on it, to increase the sales of Aashirvaad in the market of Jaipur.

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.

SUMMARY

After going thick on the things, now the time is to make a complete picture. While making a product SKU (stock keeping unit) of the shop retailers think about the GMROI (Gross margin return on investment) & they promote the brand which pays them highest. They expect return in the form of profit margin, company schemes and window displays. Among these company schemes makes the difference & are the highest sources of motivation after profit margins. Retailing demands a constant push from the company.

Marketers need to use advertising and brand building strategy to address the discerning buyers and retail push to in the different buyers. The manufacturer should understand the consumer behavior. Because retailers cant help quality and price. It is only up to the manufacturer to provide the consumer what he wants. I need to stress on it because 77% retailers said that it is the demand for what we sell.

At the time of research it is found that the profit margins available to the all distributors of different brands and retailers are same. Retailers are mainly getting profit of 10-12 %. But what vary are the schemes introduced by the companies for retailers and end consumers.

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SUGGESSIONS

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SUGGESTION

These are the following suggestion.

Company should decrease the rate of aashirvaad. Company should more work on advertising of aashirvaad. Company should also work for its distribution. Company should increase the awareness of people about itc. Company should start many scheme & offer to increase sell of aashirvaad. Company should also analysis its competitors strategy. Company should make people aware about AASHIRWADS quality because quality is a strong reason behind its high price.

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LIMITATIONS

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LIMITATION

Time is short for deep research. Change in rates. The study is limited. The study is limited to some areas of Jaipur city. We have to consider only 10 Kg. weights

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ANNEXURES

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ANNEXURES(1) Which flour you are selling in the present? (a) Shakti bhog (b) Aashirvaad (c) Local mill (d) Some or all of the above

(2) Which brand is delivering you proper service? (a) Shakti bhog (b) Aashirvaad (c) Local mill

(3) Which factors do you consider while purchasing flour? (a) Quality (b) Price (c) Resource

(4) Which brand do you store most? (a) Shakti bhog (b) Aashirvaad (c) Local mill102

(5) When a consumer comes to your shop without specific demand, which brand you gives to him? (a) Shakti bhog (b) Aaswhirvaad (c) Local mill

(6) Which brand is offering you highest margins? (a) Shakti bhog (b) Aaswhirvaad

(c) Local mill

(7) Which brands distribution is best? (a) Shakti bhog (b) Aaswhirvaad(c) Local mill

(7)

which brands packagaging is best? (a) Shakti bhog (b) Aaswhirvaad (c)Lokal mill

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(8) Which brand is giving you more instruction about the product? (a) Aashirvaad (b) Shakti bhog (c) Local mill (9) Have you use aashirvaad? (a) Yes (b) No

(10) What is your opinion about aashirvaad?

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BIBLIOGRAPHY

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BIBLIOGRAPHY

ITC ANNEXURES ITC REPORTS MARKETTING MANAGEMENT- P. KOTLER MARKETING RESEARCH-G.C. BERI www.itcportal.com RESEARCH METHODOLOGY-C.R.KOTHARI

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THANK YOU FOR YOUR COOPERATION

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