Final Report by Aman

8/3/2019 Final Report by Aman

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AProject Study Report

On

Summer Training Undertaken at

STUDY AND EVALUATION OF SP AND L OUTLETS

in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted By: - Submitted To:-

Mohit Khandelwal Mr.Prashant Madaan

MBA Part 4th Year

2008-2010

Gyan Vihar International School of Business Management

Jaipur, Rajasthan

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PREFACE

Theoretical study combined with practical knowledge makes the learning meaningful and

enables the individual to develop self-confidence because theoretical knowledge is

always incomplete without its practical implication like gun without bullet. Seeing the

necessity that the student could know and take opportunity for practical exposures of

the business world.

As a part of course curriculum, summer training is compulsory for all the students of MBA.

It is true that work experience in an organization of repute adds an extensive

knowledge and exposure to the individual.

The practical exposure makes the individual learn about the actual field work. It makes him

realize that not only the theory but also the knowledge of the market is as important

as the former. During the training period the student learns through this own

experience, the real situation of the corporate world and put his theoretical

knowledge into practice. This experience is valuable for the student and plays a

leading and an important role in his career.

The starting days of the training were very difficult but we were full of joy and enthusiasm,

and had the spirit to excel. Those days of beginning were devoted to simply

understand the product i.e. STUDY AND EVALUATION OF SP AND L OUTLETS

coordinating with the office and later on with the team. It was totally a new and

different experience for me. Slowly and steadily, as I started learning about the

market, I realized that it was not an easy task to do something commendable. Yet, I

was determined to achieve my objective.

The overall experience, exposure, knowledge and teamwork was a great satisfaction for

me. At this point (after the completion of the summer training project. I realized that

there is no other and better way to learn the things expect practical experience.

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Acknowledgement

I express my sincere thanks to my project guide, Mr. Sunil Dadhich & Vinod

Miwani, Area executive (Jaipur Branch) , Deptt TABACCO, for guiding

me right form the inception till the successful completion of the project. I

sincerely acknowledge them for extending their valuable guidance,

support for literature, critical reviews of project and the report and above

all the moral support they had provided to me with all stages of this

project.

I would also like to thank the supporting staff Urmila Madam Department, for

their help and cooperation throughout our project.

(Signature of Student)

MOHIT KHANDELWAL

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CONTENTS

S.NO NAME OF TOPIC PAGE NO. SIGNATURE

1. INTRODUCTION

1.1 Introduction of the Industry 6

1.2 Introduction of the Organization 12

2. MARKETING STAREGY

2.1 Marketing Mix 24

2.2 Promotion 25

2.3 Strategy 30

3. Research Methodology

3.1 Title of the Study 37

3.2 Duration of the Project 38

3.3 Objective of the Study 40

3.4 Type of Research 42

3.5 Limitation of Study 46

4. Fact & Finding 47

5. Analysis & Intervention 52

6. SWOT 53

6.1 Analysis by Graphs 61

7. Conclusion & Summary 65

8. Appendix 72

9. Bibliography & References 75


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EXECUTIVE SUMMARY

Branch Manager:- Mr. Hemat Singh Rana

Area Executive :- Mr. Sunil Dadhich & Vinod Miwani


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INTRODUCTION OF THE INDUSTRY

ITC is one of India's foremost private sector companies with a market capitalization of

nearly US $ 15 billion and a turnover of over US $ 4.75 billion. Rated among the

World's Best Big Companies by Forbes magazine, among India's Most Respected

Companies by Business World and among India's Most Valuable Companies by

Business Today, ITC ranks third in pre-tax profit among India's private sector

corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards &

Specialty Papers, Packaging, Agro-Business, Packaged Foods & Confectionery,

Information Technology, Branded Apparel, Greeting Cards, Safety Matches and

other FMCG products. While ITC is an outstanding market leader in its traditional

businesses of Cigarettes, Hotels, Paperboards, Packaging and Agro-Exports, it is

rapidly gaining market share even in its nascent businesses of Packaged Foods &

Confectionery, Branded Apparel and Greeting Cards.

ITC employs over 20,000 people at more than 60 locations across India. Ranked among

India's most valuable companies by the 'Business Today' magazine, ITC

continuously endeavors to enhance its wealth generating capabilities in a globalizing

environment to consistently reward more than 4,55,000 shareholders, fulfill the

aspirations of its stakeholders and meet societal expectations. This over-arching

vision of the company is expressively captured in its corporate positioning statement:

" Enduring Value. For the Nation. For the Shareholder. "

ITC Ltd today stands as one of Indias largest premiere private sectors in the world with its

presence felt in different businesses.

Cigarettes-ITC name in terms of the Cigarette business envelopes a wide range of

popular brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy

Cut, Scissors, Capstan, Berkeley, Bristol and Flake in terms of its portfolio.

1Paper Boards- ITC's Packaging & Printing Business is the country's largest convertor

of paperboard into packaging. It was set up in 1925 as a strategic backward

integration for ITC's Cigarettes business. It also offers a variety of value-added

packaging solutions for the food & beverage, personal products, cigarette, liquor,

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cellular phone and IT packaging industries. ITC Paperboards business has a

manufacturing capacity of over 360,000 tones per year and is a market leader in

India across all carton-consuming segments. Its stationery brands "Paper Kraft" &

"Classmate" are widely distributed brands across India.

1Greeting cards- ITC Greeting & Gifting products include Expressions range of greeting

cards and gifting products.

1Safety matches- ITC brands of safety matches include Mangaldeep, VaxLit, Delite and

Aim. The Aim is to be the largest selling brand of Safety Matches in India. It also

exports premium brands to markets such as Europe, Africa and the USA. It has

launched Mangaldeep brand of Aggarbattis with a wide range of fragrances like

Rose, Jasmine, Bouquet, Sandalwood. Mangaldeep is also being exported to USA,

UAE, Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa.

1ITC 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 Club life evening wear (2003). In 2002, ITC entered into the popular

segment with its men's wear brand, John Players. In 2005, ITC introduced Essenza

Di Wills, an exclusive line of prestige fragrance products.

1FMCG- ITC made its entry into the branded & packaged Foods business in August 2001

with the launch of the "Kitchens of India" brand. In 2002 it expanded into

Confectionery, Staples and Snack Foods segments. ITC's brand in Food category

include: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo!

ITC's International Business Division (IBD) is the country's second largest exporter of

agri-products. ITC exports Feed Ingredients (Soyameal), Food grains (Rice, Wheat,

Pulses), Coffee & Spices, Edible Nuts, Marine Products, and Processed Fruits.

1The E-Choupal Model- ITC has been very effective in tackling the challenges posed

by the unique features of Indian agriculture, characterized by fragmented farms,

weak infrastructure and the involvement of numerous intermediaries. It has helped

farmers overcome the challenges associated with rural farming to a large extend.

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1ITC Hotels- In 1975 the Company launched with the acquisition of a hotel in Chennai

which has been rechristened 'ITC-Welcome group Hotel Sheraton'. Rooted in the

concept of creating value for the nation, ITC chose the hotel business for its potential

to earn high levels of foreign exchange, create tourism infrastructure and generatelarge scale direct as well as indirect employment. Since then ITC's Hotels business

has grown to occupy a position of leadership, with over 90 owned and managed

properties spread across India, catering to the different needs and choices of

travelers from across the world. It stands today as the only Hotel Chain in the world

which is known to have an Indian Soul.

2ITC is a board-managed professional company, committed to creating enduring value for

the shareholder and for the nation. It has a rich organizational culture rooted in its

core values of respect for people and belief in empowerment. Its philosophy of all-

round value creation is backed by strong corporate governance policies and

systems.

In pursuit of international competitiveness, ITC has launched four brands- Checkers,

Hi-Val, Royale Classic and Gold Crest - in the extremely competitive

US market. ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings

cigarettes in the Middle East.

ITC's FMCG businesses have one of the largest retail networks in the country,

consisting of over 2 million retailers.

In June 2002 ITC entered the Confectionery, Staples and Snack foods

Segments. In just five years, the Foods business has grown to a significant size with 100

differentiated products, five distinctive brands, an enviable distribution reach, a rapidly

growing market share and a solid market standing. The Foods business is today

represented in 4 categories in the market. These are:

1) Ready To Eat Foods

2) Staples

3) Confectionery

4) Snack Foods

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THE ITC VISION

Sustain ITC's position as one of India's most valuable corporations through

world class performance, creating growing value for the Indian economyand the Companys stakeholders

THE ITC MISSION

To enhance the wealth generating capability of the enterprise in a globalizing

environment, delivering superior and sustainable stakeholder value

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INTRODUCTION OF THE ORGANIZATION

The Indian FMCG sector is the fourth largest sector in the economy with a total market size

in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by

a well-established distribution network, intense competition between the organized

and unorganized segments and low operational cost. Availability of key raw

materials, cheaper labor costs and presence across the entire value chain gives

India a competitive advantage. The FMCG market is set to treble from US$ 11.6

billion in 2003 to US$ 33.4 billion in 2015. Burgeoning Indian population, particularly

the middle class and the rural segments, presents an opportunity to makers of

branded products to convert consumers to branded products. Growth is also likely to

come from consumer 'upgrading' in the matured product categories. With 200 million

people expected to shift to processed and packaged food by 2010, India needs

around US$ 28 billion of investment in the food-processing industry. India is one of

the largest emerging markets, with a population of over one billion.

Period production and yield of tobacco in India

Period Area (000 ha) Production(000

tone)

Unit yield

(kg/h)

Proportion with

irrigation (%)

1975/76 368 350 950 29.8

1980/81 452 481 1 065 33.7

1985/86 397 441 1 111 39.9

1990/91 385 563 1 353 43.2

1994/95 381 567 1 486 45.3

1995/96 395 535 1 356 n.a.(1)1996/97 432 599 1 386 n.a.(1).

1997/98 464 646 1 393 n.a.(1)

Notes: (1) n.a. = not available.

ITC is the market leader in cigarettes in India, with its wide range of invaluable brands; it

has a leadership position in every segment of the market. Its highly popular portfolio

of brands include Insignia, India kings, Classic, Gold flake, Silk Cut, Navy Cut,Scissors, Capstan, Berkeley, Bristol and Flake.

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ITC's share of filter cigarettes in the country is more than 70%.

In pursuit of international competitiveness, ITC has launched four brands - Checkers, Hi-

Val, Royale Classic and Gold Crest - in the extremely competitive US market.

Recently ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings

cigarettes in the Middle East.

ITC's FMCG businesses have one of the largest retail networks in the country, consisting of

over 2 million retailers.

ITCs extensive India-wide distribution network enables its greeting cards reach over 12,000

multi brand outlets in over 700 cities nationally. In the last three years, 10,000

greeting card designs have reached these outlets with the help of a web-enabled e-

commerce model.

The company has been able to build on its leadership position because of its single minded

focus on value creation for the consumer through significant investment in product

design, innovation, manufacturing technology, quality, marketing and distribution.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,

Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in

its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and

Greeting Cards.

The tobacco sector contributes to the States economies through crop production and to the

exchequer through excise duty, as well as from their share in the net central excise

duties. Tobacco cultivation is concentrated in three states: Andhra Pradesh, Gujarat

and Karnataka. The additional excise duties on tobacco, which is distributed only

among tobacco growing states, increased from Rs 3 477 million in 1979/80 to Rs 18

532 million in 1999/2000. During the fiscal years 1995 to 1998, the State

Governments received annually 47.5 percent of the net proceeds of union excise

duty levied on a number of commodities, including on tobacco products. It amounted

to around Rs 240000 million annually, of which the share from the tobacco sector is

estimated to have been around 9 percent. These are an important source of revenue

for the States.

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Industry Structure Analysis:-

13

Existing

Competition

GPI,

Marlboro

Threats from Substitute

GPI(Four square & cigars).

.

Bargaining

Power of

BuyersBargainin

g Power

of

Suppliers

Threats from New Entrants


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ITC's CORE VALUESTrusteeship

As professional managers, we are conscious that ITC has been given to us in "trust" by all

our stakeholders. We will actualize stakeholder value and interest on a long term sustainable

basis.

Customer Focus

We are always customer focused and will deliver what the customer needs in terms of value,

quality and satisfaction.

Respect For People

We are result oriented, setting high performance standards for ourselves as individuals and

teams. We will simultaneously respect and value people and uphold humanness and human

dignity. We acknowledge that every individual brings different perspectives and capabilities

to the team and that a strong team is founded on a variety of perspectives. We want

individuals to dream, value differences, create and experiment in pursuit of opportunities and

achieve leadership through teamwork.

Excellence

We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation

We will constantly pursue newer and better processes, products, services and management

practices.

Nation Orientation

We are aware of our responsibility to generate economic value for the Nation. In pursuit of

our goals, we will make no compromise in complying with applicable laws and regulations at

all levels.

ACHIEVEMENTS

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ITC's Cigarettes business has been winning numerous awards for its quality, environmental

management systems and product excellence:

'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter of

Cigarettes for 2008 by the Tobacco Board based on previous three years'

performance.

Occupational Health and Safety Award 2007 for Excellence in Safety Management to

the Bengaluru, Saharanpur and Kolkata factories from the Royal Society for

Prevention of Accidents (ROSPA), U.K.

5 Star Health and Safety Rating in 2007 from the British Safety Council to the

Bengaluru, Munger, Kolkata and Saharanpur factories and the "Sword of Honour"

for Bengaluru & Saharanpur factories in 2006.

Greentech Gold Award for excellence in Safety Management for the year2007 to the

Bengaluru, Kolkata and Saharanpur cigarette factories for the high level of

performance that the units have achieved in Environment Health and Safety (EHS).

Saharanpur along with Kolkata and Munger factories were honoured with the Gold

award and the Bengaluru Factory with the Platinum Award in 2006.

Greentech Gold Award for Excellence in Environment Management 2007 to the

Bengaluru, Kolkata and Munger factories.

Safety Innovation Award for 2007 and 2006 for Innovative Safety Management

System to the Bengaluru Factory from the Institution of Engineers and also the

Unnatha Suraksha Puraskara Award 2006 from NSC Karnataka Chapter.

Golden Peacock Award for Occupational Health and Safety from the Institute of

Directors, New Delhi; Award for Outstanding Performance in Environment

Health and Safety from the CII and the Suraksha Puraskar Award from the

National Safety Council, Mumbai to the Kolkata factory in 2007 and the "1st

National Security Today Award " in the category ofBest Maintained Fire Safety

System in 2005.

Occupational Health and Safety Gold Award from the ROSPA, UK; the Winners

Trophy Safety Health and Environment Award from the CII Eastern region;

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National Award for Excellence in Water Management and Innovative Project

Award Initiatives for Energy Conservation from the CII to the Munger factory in

2007 and also the Excellence in Water Management Award from CII-GBC for

2006.

All the four factories are certified by Det Norske VERITAS (DNV) for ISO 14001, for their

Environment Management Systems, OHSAS 18001 for their Occupational Health

and Safety Management Systems (OHSMS) and the ISO 9000-2000 for Quality

Management Systems. The Kolkata factory is the first cigarette factory in India to

be awarded the SA 8000 Certificate for Social Accountability by Det Norske Veritas

(DNV) in June 2004.

ITC's R&D Centre at Peenya, Bangalore has the distinction of being the first independent

R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001

for Environment Management Systems by DNV. The R&D Centre is also certified for

the standard ISO/IEC17025:2005, by National Accreditation Board for Testing and

Calibration Laboratories (NABL). This certification is awarded for "General

requirement for the competence of Testing & Calibration Laboratories"

M i l e s t o n e s

1996 Flat 10 packs launched

1997 10s hinged-lid packs introduced for Regular Size filters

1999 New factory at Bengaluru commenced operations

2000 Brownfield project at Saharanpur factory completed

2001 Regular Size filters offered in 5s packs

2002 Beveled edge packs introduced

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2003 India Kings marketed in contour packs; Insignia launched in

shoulder box

2004 Long-Size filters offered in wave packs

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CONCEPT OF MARKERTING

CONCEPT:-

Marketing concept means that an organization aims all its efforts at satisfying its customers

at profit. The marketing concept is a simple but very important idea.

Marketing comprehensive term and includes all resources and set of activities necessary to

direct and facilitate the flow of goods and services from producer to Customer in the

person of Distribution. Businessman regards marketing as a management function

plan, promote and deliver product to the customer. Human efforts, finances and

management constitute the primary resources in marketing.

Much of marketing in concerned with the problem of profitability disposing what is

produced. Marketing in the economy process by which goods and services are

exchanged between the producer and the Customer and their values determined in

terms of money prices.

Marketing activities are concerned with the demand simulating and demand fulfilling efforts

of the enterprises.

Marketing is the delivery of a standard of living to society.

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MARKINTING SYSYTEM:

Diagram shows the exchange-taking place between marketing to intermediate organization,

which will in turn go for further transition to meet ultimate buyers satisfaction.

MARKETING ACTIVITY & ANALYSIS:

The marketing activity takes place in a wider environment or framework which has

controllable and uncontrollable variable. The controllable variables are which can be

planned organized and put to perform by the marketing company. Whereas

uncontrollable variables, which are beyond the control of the organization. Must

adopt or adjust itself to these uncontrollable factors for a satisfactory performance.

The controllable and uncontrollable factors are show as under.

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MARKETING MIX

The term Marketing Mix was introduced by Prof. N.H. Borden of the Harward Business

School of America. It describes combination of the four inputs which constitute the

core of a companys marketing system the products the distribution system the

price structure and the promotional activities.

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According to Mr. Jerome McCarthy an American expert, Marketing Mix is the pack

of four sets of variables namely, product variables, price variables. Promotion

variables and place variable.

Marketing Mix is the set of controllable variables and their levels that a firm uses to

influence its target Market. McCarthy Popularized a four factor classification of this

tools called the four Ps, which is a follows:-

PROMOTION

Developing the promotional Mix entails selecting and blending different channels of

communication in order to achieve the promotional objective of the marketing Mix.

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SALES PROMOTION

ITC uses various techniques for sales promotion activities, which are as follows: -

Print media

Electronic media

Fairs & Gifts

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Demonstrations

POP

Free sample

PRINT MEDIA

ITC LTD industries use various media to create awareness and sales of their products

following are as follows:

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ELECTRONIC MEDIA

We can see ITC LTD advertise the product through various ads, major satellite channel like

star news channel.

GIFTS

Company offers several gifts to their dealers and major contractors and architectson the special festivals or occasions to attract them.

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DEMONSTRATION

To promote sales and to develop the sales, company executives interact with the architects

and contractors to create demand for the products through the effective demo of the

products. They also explain the strength of the products over the competitors.

FREE SAMPLES

Company also for increase sales by distributing free samples to dealers, contractors,

customers, despite this company also give products like dairies, calendar, key rings,T- shirts, rough pads to relatives, neighbors etc.

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MARKETING STRATEGY

Marketing strategy is the complete and unbeatable plan, designed specifically for attaining

the marketing objective of the firm/business unit. The marketing objective indicate

what the firm want to achieve, the marketing strategy provides the design for

achieving them.

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Marketing

MarketCompetito


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MARKET SEGMENT

The business unit has to clarify what market segments it will seek and what product offers it

will make. It other words, it has to state its product market scope. Strategy should

decide whom to include and who to exclude.

GROWTH PATH

In this part of strategy the firm has to decide what would be its path for achieving the market

penetration, market development or product development.

COMPONENTS OF STRATEGY MARKETING PLANNING

Strategy marketing planning included analysis of internal and external forces. On the basis

of this analysis corporate strategy is designed on which the marketing objectives are

based. As per marketing objectives the marketing strategic are developed.

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Growth Differentiat


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COMPETITIVE MARKETING STRATEGIES

Competitive marketing Strategy in founded on consistently understanding and predicating

carrying market conditions needs to survive and grow every organization needs

competitive strategies.

Following five forces determine industry attractiveness and profitability:

Threat of New Entrance

Bargaining Power Of Suppliers

Bargaining Power Of Byers

Rivalry among Existing Firms

Threat of substitute Product & Service

FORMULATING THE MARETING STRATEGY

Basically, formulation of marketing strategy consists of three main Tasks:

Selecting the target market.

Positioning the offer.

Assembling the marketing mix.

SELECTING THE TARGET MARKET: -

To say that target market selection is a part of marketing development is just stating the

obvious. It does not fully bring out the important of the inseparable linkage between

the two when the selection of the target market is over and important part of the

market strategy of the product is determined, defined and expressed

POSITIONING THE OFFER:-

The next major dimension of marketing strategy relates to positioning of the offer. The firm

has already selected the target market and decided its basic offer. The point is that30


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the firm has to clarify it proposes of do with its offering, how it wants the offer to be

perceived by the customer. What position it seeks and what image it proposes to

build for its offer.

ASSEMBLING THE MARKETING MIX

The marketing mix means assembling the four Ps of Marketing in best possible

combination. This process involved the choice of the appropriate marketing activities

and the allocation of the appropriate marketing effort/resources to each one of them.

The marketing mix is a dynamic entity. It needs to be constantly modified and

manipulated depending on requirements.

IMPLEMENTATION OF MARETING STRATEGY

Once the business unit has developed its principle strategies it must work out detailed

supporting programs.

According to McKinney & Company, strategy is only one of seven elements in

successful business practice. McKinneys 7-S framework for business success as

shown in figure. The first three-element strategy, structure and system are

considered the hardware of success. The next four style means that company

employees shared values are the software.

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CATEGORY OF MARETING STRATEGY

These strategies can be fitted into two broad categories:-

The price oriented strategies

The differentiation oriented strategies.

THE PRICE ORIENTED MARKETING STRATEGIES

Firms taking to the price route in marketing strategy compete on the strength of pricing.

They are price on their competitive server. They juggle competitive reality. They can

afford to offer lower price and will make the targeted profit. The elbow outcompetition with the cushion they enjoy in the matter of pricing.

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THE DIFFERENTIATION ORIENTED STRATEGIES

The differentiation route to strategy revalues aspects other than price. It works on the

principle that a firm cam make its offer distinctive from all competing offers and win

through the distinctive and a firm adopting such route can price its product on the

perceived value of the attributes of the offer and not be necessarily on composition

parity basis.

Differentiation helps a firm more away from price competition. Meaningful

differentiation in competitively more effective and enduring than low-cost production

alone. When, the two strategies are combined in a single company the results are

spectacular.

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RESEARCH METHODOLOGY - DEFINED

a. Research is the systematic investigation to establish facts or collect information on a

pre-decided subject.

b. Methodology is the specification of the system of principles and techniques used in a

particular discipline.

The Project

35

Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Finding & Recommendations


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The project is entitled STUDY AND EVALUATION OF SP AND L OUTLETS (SP & L

outlets- Super Premium and Light outlets.)

DURATION OF THE STUDY: - The duration of the project training was 45 days

undertaken to accomplish the title and objective. The completion of 45 days of

summer training was successfully done. The duration of the project was 18th of May

to 26th of June; the main motive of summer training was to interact with actual

corporate world and future manager under which I have successfully completed my

summer training.

FODS should be in proper sequence according to the selling power of Outlets.

Insignia, B&H, 555, Classic Regular, Classic milds, Classic Ultra Milds, Classic

Menthol, Gold flake king (20), Gold flake king (10), Gold flake light (20), Gold

flake light (10), Wills Silk Cut, Wills Navy Cut, Bristol filter, Bristol Stander,

Flake.

Sp & l outlets- Super premium and light outlets:-

On the basis of per day selling volume and brand stock Sp and l outlets are decided.

One who have stock of 5 brands (Mrp>90) and per day sale>=70 sticks comes in sp

& l outlet. One who have stock of 4 brands (Mrp>90) and per day sale>=40 sticks

comes in sp outlet. One who have stock of 3 Ksft brands and per day sale>=70

sticks or have stock of 2 brands(Mrp>90) and per day sale>=40comes in l outlet.

One who sells 1-10 packets of cigarettes in 1 day? They come under volume class 6.

One who sells 10- 20 Volume Class 5

20- 50 Volume Class 4



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110 and above Volume Class 1.

The Objectives

Is to find out Market Potential of companys sp & l outlets and identify theAreas of

improving Sales.

Competition Analysis

Consumers Preferences

OBJECTIVES OF THE STUDY:-

The main objective of the study was to know the view of consumer regarding ITCproduct, and my personal objective was to change the mind set of consumer

who is already using another brand of the Tobacco in the Jaipur area.

Customer attitude plays a vital role in the field of marketing and in development of

any organization because now a days it is customers market. All the

marketing activities revolve around him. There are the days of cut throat

competition. So it becomes important to know about the behavior of thecustomers.

Objectives of study:-

1) To find out the reaction of the customers towards different cigarettes & tobacco

brands.

2) To find out which cigarettes & tobacco brand customers are using in this area.

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3) To know about the consumer satisfaction as well dissatisfaction regarding thecigarettes & tobacco.

4) Marker survey to know about the demand of cigarettes & tobacco in comparison toother cigarettes & tobacco.

5) To know the suggestions from the different users(customers of cigarettes & tobacco)

6) To know about the factors affecting on buying decision if customers.

7) To understand advertisement effect on cigarettes & tobacco and effectiveness ofdifferent advertisement Medias.

8) To find out managerial usefulness of study.

OPERATION RESEARCH GROUP (ORG)

Functions:

Organization research group is doing research for different companies. It is appointed by

the company itself to know the performance of the company.

They mainly look for the following:-

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Service

Availability

Visibility

Freshness

Purchasing power

Selling power.

TYPE OF RESEARCH

39

TYPE OF RESEARCH

Primary Source Secondary Source


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1. PRIMARY SOURCE:

We collect primary data during the course of experiments in an experimental research but

in case we do research of the descriptive type and perform surveys then we can

obtain primary data either through observation or through direct communication.

METHODS/TECHNIQUES OF PRIMARY DATA SOURCE

INTERVIEW

QUESTIONNARIES

OBSERVARTION

RECORD VIEW

INTERVIEW:-

This method is used to collect the information from groups or individuals. Analyst selects

the people who are related with the system for the interview. In this method the

analyst sits face to face with the people and records their responses. The interviewer

must plan in advance the type of questions he/ she is going to ask and should be

ready to answer any type of question. He should also choose a suitable place and

time which will be comfortabl for the respondent.

The information collected is quite accurate and reliable as the interviewer can clear

and cross check the doubts there itself. This method also helps gap the areas of

misunderstandings and help to discuss about the future problems. Structured and

unstructured are the two sub categories of Interview. Structured interview is moreformal interview where fixed questions are asked and specific information is

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collected whereas Unstructured interview is more or less like a casual

conversation where in-depth areas topics are covered and other information apart

from the topic may also be obtained.

QUESTIONNAIRE:-

It is the technique used to extract information from number of people. This method can be adopted

and used only by an skillful analyst. The Questionnaire consists of series of questions

framed together in logical manner. The questions are simple, clear and to the point. This

method is very useful for attaining information from people who are concerned with the

usage of the system and who are living in different countries. The questionnaire can be

mailed or send to people by post. This is the cheapest source of fact finding.

Open-ended questionnaires are used to learn feelings, opinions, general experiences on process

detail or problem. In it, questions are answered in their own words. Where as in Closed

questionnaires a set of prescribed answers are used and specific response have to be

selected. This is a costly affair as the questions should be printed out.

RECORD VIEW:-

The information related to the system is published in the sources like newspapers, magazines,

journals, documents etc. This record review helps the analyst to get valuable information

about the system and the organization.

OBSERVATION:-

Unlike the other fact finding techniques, in this method the analyst himself visits the organization

and observes and understand the flow of documents, working of the existing system, the

users of the system etc. For this method to be adopted it takes an analyst to perform this job

as he knows which points should be noticed and highlighted. In analyst may observe the

unwanted things as well and simply cause delay in the development of the new system.

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2. SECONDARY SOURCE:

Secondary data source are data collected by persons or agencies for purpose other than

solving the research problem.

Data which are not originally collected but rather obtain from published or unpublished

sources are known as Secondary Data

Type of Secondary Source:

INTERNAL SOURCE:

Cost Analysis

Sales Analysis

Sales Activity Reports

Management Report

EXTERNAL SOURCE:

Annual Report

Newspapers & Magazines

Library

Research Brief

The objective of the project was to find out Market Potential of Cigarettes and Identify the

Areas of improving Sales of Cigarettes in the GFP channel. The GFP channel mainly

consists of the small retail outlets from where Grocery product is sold. These retail

outlets are open almost 24 X 7. Apart from Grocery, these retail outlets also sell

confectionary, biscuits, soft drinks, Agarbattis, etc.

In order to meet the objective, the response of 150 retailers was recorded by doing a

market survey along with the salesmen of Globbus Sales distributor, in different

locations of Nagpur city (in their own routes). The main objective behind going along

with the salesmen was to understand how they carry out their work and to check if

any better way can be suggested to perform it in a superior way.

The questionnaire was mainly focused at finding the availability of Cigarettes and its

competitors brands in the GFP channel, consumer preferences, retailers investment42


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capacity and willingness, their stocking policy, prevalence of Trade, Credit and

Consumer schemes, visibility and availability of ITC in the channel.

The information thus collected was used to build up strategies for Market Potential of

Cigarettes and Identify the Areas of improving Sales of Cigarettes in the GFP

channel for wider coverage and growth of market share as further explained in the

report.

Marketing channels for Bides and Cigarettes

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LIMITATIONS OF THE STUDY

No project is without limitations and it becomes essential to figure out the various

constraints that we underwent during the study. The following points in this direction wouldadd to our total deliberations:-

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1. During the study, on many occasions the respondent groups gave us a cold shoulder.

2. The respondents from whom primary data was gathered any times displayed complete

ignorance about the complete branded range, which was being studied.

3. Lack of time is the basic limitation in the project.4. Some customers refuse to cooperate with the queries.

5. Some Customers gave biased or incomplete information regarding the study.

6. Money played a vital factor in the whole project duration.

7. Lack of proper information and experience also because hurdle for me.

8. Some customer did not answer all the questions or do not have time to answer.

All research papers have its own limitations in terms of methodology and the resources

available for its conduct. This study is no exception to it and has been carried under

following limitation:

Some of the respondents were not forthcoming with information as they

thought it to be a waste of time.

A number of respondents were biased towards a particular brand, which was

giving them better returns.

Some of the respondents were not available so, contacted person was not

able to present a fair view.

Respondents lack of time to give information and their casual attitude was a

big hindrance in the study.

FACTS AND FINDING

Q1.)How much percentages of ITC psus in sp & l outlets?

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Key Takeout: - According to pie chart, Psu percentage of Itc is 71.96%,Gpi is 8.41%,both

(Itc & Gpi) are 16.82% and there are 2.80% outlets which dont have any psu. This

shows that an Itc brand has good visibility towards customers.

Q2.) How much percentages of ITC counters in sp & l outlets?

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Key Takeout:- According to pie chart, Counter percentage of Itc is 55.14%,Gpi is 3.73%andthere are 41.12% outlets which have their personal counters. This shows there is a

huge untapped outlets yet to be captured.

Q3. ) How much percentages of ITC backwall in sp & l outlets?

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Key Takeout:- According to pie chart, Counter percentage of Itc is 48.59%,Gpi is 4.67%and

there are 46.72% outlets which have their personal back walls. This shows there is

a huge untapped outlet yet to be captured.

Q4.) How much percentages of ITC Glowsign board in sp & l outlets?

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Key Takeout:- According to pie chart, Glow sign percentage of Itc is 42.05%,Gpi is3.73%,both (Itc & Gpi) are 3.73% and there are 50.46% outlets which dont have any

Glow sign.

5. Availability ofking size filter tip.

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By this bar graph the availability percentage of classic is

100%,Marlboro is 50%,IK is 70% and Insignia is 70%.

ANALYSIS AND INTERPRETATION

1. After doing all the activities of price control price is still not Controlled. To

overcome this problem directly contact with. Customer will be effective.

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2. DSS timing was not proper as they starts late and in th Noon time Most of the

outlets are close so they have to starts as early. As Possible. And they should visit

first those outlets which were Closed in the noon time.

3. Company should give some credit limit to small tea stall, Tapries so that they

can take goods from the company sells man so. That they can sell at company price

rate.

4. The DSS are not sufficient to cover the whole route and all small shops so it

requires more numbers DSS as the available. Ones dont cover the outer route,

which led company in loss.

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S.W.O.T. are best appreciated in the contact of marketing analysis and

strategy formulation. Together a consideration of the environment

the resources values. Expectat ions and objectives provide the

basis for marketing analysis, so as to arr ive a t a v iew of the

organizations strategic situation. I t helps to form a basis for

deciding on the extent to which a change in strategy is necessary.

The components of S.W.O.T. analysis are as follow: -

Strength Weakness Opportunities Threats

Resource

Relative

Competitive

Advantage

Image

Infrastructur

e

Market

Leadership

Deficiencie

s in resources,

skills and

capabilities

Financial

resources

Source of

outfit

Inadequate

measures viewed

against change in

product / Market

scope

Favorable

situation

Identification

of new market

segment

Changes in

competitive or

regularity

Technologica

l changes

Unfavorable

situation

Entry of new

competitors

Slow market

growth

Major

technological

change

Appearances

of substitute

product

Note: This SWOT analysis is done on the Data that has been collected during the Two

month Summer Training.

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STRENGTHS

ITC leveraged it traditional businesses to develop new brands for new segments. For

example, ITCused its experience of transporting and distributing tobacco products to

remote and distant parts of India to the advantage of its FMCG products. ITC master

chefs from its hotel chain are often asked to develop new food concepts for its

FMCG business.

ITC is a diversified company trading in a number of business sectors including cigarettes,

hotels, paper, agriculture, packaged foods and confectionary, branded apparel,

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Threats

OpportunitiesWeakness

Strengths

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personal care, greetings cards, Information Technology, safety matches, incense

sticks and stationery.

1) Parent support

ITC Ltd. has a strong support from its parent company, which is the worlds largest

processed Cigarettes, and Food Company, with a presence in almost every country.

The company has access to the parents hugely successful global folio of products

and brands.

2) Brand strength

In India, ITC Ltd has some very strong brands like Wills Navy cut, Sunfeast Biscuits, john

Player . These brands are almost generic to their product categories.

3) Product innovation

The company has been continuously introducing new products for its Indian patrons on a

frequent basis, thus expanding its product offerings.

4) Smaller skus

5) Working capital intensity

WEAKNESSES

The company's original business was traded in tobacco. ITC stands for Imperial TobaccoCompany of India Limited. It is interesting that a business that is now so involved in

branding continues to use its original name, despite the negative connection of

tobacco with poor health and premature death.

To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco

revenues. Cigarettes account for 47 per cent of the company's turnover, and that in

itself is responsible for 80% of its profits. So there is an argument that ITC's move

into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco

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operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and

this single brand alone hold 70% of the tobacco market.

The company has been continuously introducing new products Like candy which is not

much profitable business, Rise in cigarettes price which create dissatisfaction in

consumer, and customer. Unawareness of company that this much brands is

produced by this company. Consumer knows the product but not aware that this

product is belongs to ITC Ltd.

OPPORTUNITIES

Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be

developed using strategies of market development, product development and

marketing penetration.

ITC is moving into new and emerging sectors including Information Technology, supporting

business solutions.

e-Choupal is a community of practice that links rural Indian farmers using the Internet. This

is an original and well thought of initiative that could be used in other sectors in many

other parts of the world. It is also an ambitious project that has a goal of reaching 10

million farmers in 100,000 villages. Take a look at eChoupal here

http://www.itcportal.com/agri_exports/e-choupal_new.htm

ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers

in the North, West and East of India of atta (a popular type of wheat flour), then used

the network to source and create the raw materials from farmers and then blend

them for consumers under purposeful brand names such as Aashirvaad Select in the

Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in

the Eastern market. This concept is tremendously difficult for competitors to emulate.

Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the

country's premier FMCG business.

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Per capita consumption of personal care products in India is the lowest in the world offering

an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

1) Expansion

The company has the potential to expand to smaller towns and other geographies. Existing

markets are not fully tapped and the company can increase presence by

penetrating further. With India's demographic profile changing in favour of the consuming

class, the per capita consumption of most FMCG products is likely to grow.

2) Product offerings

The company has the option to expand its product folio by introducing more brands which

its parents are famed for like breakfast cereals, Smarties Chocolates, Carnation, etc.

3) Global hub

Since manufacturing of some products is cheaper in India than in other South East Asian

countries, ITC Ltd could become an export hub for the parent in certain product

categories.

THREATS

The obvious threat is from competition, both domestic and international. The laws of

economics dictate that if competitors see that there is a solid profit to be made in an

emerging consumer society that ultimately new products and services will be made

available. Western companies will see India as an exciting opportunity for

themselves to find new market segments for their own offerings.

ITC's opportunities are likely to be opportunities for other companies as well. Therefore the

dynamic of competition will alter in the medium-term. Then ITC will need to decide

whether being a diversified conglomerate is the most competitive strategic formation

for a secure future.

1) Competition

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The company faces immense competition from the Godfrey Philips in premium cigarettes.

Foursquare is giving tough competition to Gold flake. organized as well as the

unorganized sectors. Off late, to liberalize its trade and investment policies to enable

the country to better function in the globalised economy, the Indian Government has

reduced the import duty of food segments thus intensifying the battle.

2) Changing consumer trends

Trend of increased consumer spends on consumer durables resulting in lower spending on

FMCG products. In the past 2-3 years, the performance of the FMCG sector has

been lackluster, despite the economy growing at a decent pace. Although, off late

the

situation has been improving, the dependence on monsoon is very high.

3) Sectoral woes

Rising prices of raw materials and fuels, and in turn, increasing packaging and

manufacturing costs. But the companies may not be able to pass on the full burden

of these onto the customers.

WHY SWOT

1. To asses weather there are opportunities to explore2. To summarize previous analysis & combine them with key issues from

environmental analysis.

3. To undertake more structured analysis

4. The best possible way to convert threat & weakness into Strength & Opportunities

5. SWOT analysis involves an assessment of the Company from inside (its competitive

advantages or past performance), as well as from the outside (current and future needs of

the community, competitors' performance, new legislation, changes in the donor base, entryof new coming into the field, or new program opportunities)

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6. At the end of a SWOT analysis, Stakeholders will have a list of concerns or issues

that require a response from the Company. These identified concerns can then be

translated into long term and short-term goals for the Company.

ANALYSIS BY GRAPHS

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STRATIGIES FOR GROWTH

Key Growth Strategies

These three elements form the basis of our strategy for profitable growth. They are highly

integrated and mutually inter-dependent:

1. Geographic Expansion

2. Innovation/Renovation

3. Channel Growth

Supporting Strategies

4. People and Organization

5. Communication

6. Manufacturing

7. Acquisition

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SUMMARY OF THE PROJECT

The basic task of the project titled STUDY AND EVALUATION OF SP AND L

OUTLETS was to analyze the market strategy adopted by the company. The

success of any company depends on marketing strategy. So, evaluation and study of

marketing strategy become important. To attract the buyers of other competing

brands and to ensure that the existing buyers dont switch over to other brands.

Promotional offers can effectively come to the rescue of the market here.

However, merely making the use of the marketing strategy is not sufficient. The marketer

needs to know the attitude of customers and dealers through the various promotional

activities. So, a sample schedule was constructed and questionnaires weredeveloped for dealers and customers. A survey was carried to find out the result for

knowing the impact of marketing strategy on customers and dealers. Questionnaires

were both closed and open ended. Closed-end questions specified all the possible

answer and were easier to interpret and tabulate. Open-end questions allowed

respondents to answer in their own words and other revealed about how people

think. Interview method was given preference for obtaining responses.

According to this survey it was analyzed that most of the customers were awarded about

the different types of promotional activities. Out of them 57% answered that sales

promotional activities have been impressive. According to 63% customers it was

found that sales promotion schemes affect their purchase plans. Among the users

and non-users of ITC, it was found that quality of the product has been the most

important factor to inference about the purchasing decision.

According to customers opinions, they observed that due to eco-friendly and economicallyproducts of ITC may get more success in the coming years.

According to dealers, the top attributes that influence the customers purchase decision are

brand name, price and quality. 70% dealers accepted that it might be successful due

to range and price of product. 50% dealers have not been happy with effective sales

promotional activities. 90% dealers thought that new product launched would really

affect the sales of ITC products.

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To conclude, it can be observed that marketing strategy adopted by the company has not

been up to the mark due to poor salespromtional activities, lack of conducting

customer awareness programs and not using print and electronic media in a proper

manner. So, to have positive impact of the strategy, it is required that the company

should consider following suggestions for the improvement and better effectiveness

of marketing efforts.

CONCLUSION

It is seen that in the normal course of business as presented Knowledge of market is

essential for the development of the product. Thus apparently there is an increasing need

for the development of product in-sync not only with customer needs but also try to provide

more than customer basic needs. With the customer now becoming tech-survey and

prevalence of other service providers has resulted in a paradigm shift regarding consumer65


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behavior and preferences and thus incorporation of changes effectively is the key word to

success. Hence the effect of globalization is perceptible.

This dynamic change has revolutionized marketing. CONSUMER IS THE KING is the

new value proposition that is being called upon .In addition, there are many competitorsproviding more or less the same services and fighting for a greater share of pie. It is not

surprising that new marketing ideas keep surfacing so as to meet the new market place

tests. This may lead to a tendency towards a general compromise / shifting of brands by the

consumer in the market.

One way to deal with the problem is to ensure that some sort of solidarity is worked upon

and transgression of other brands into ITC brands is smooth. The survey has identified

major areas. The following point will be concluding this topic:-

Customers can come and get their problems & queries resolved.

Customers will be directed to get their queries resolved.

This principle will begin a new chapter in customer service in Rajasthan

Customer satisfaction is the top priority of ITC

As a philosophy ITC believes in serving the customer at his doorsteps

Batter Image in Rural Area.

SUGGESTIONS AND RECOMMENDATIONS

A customer is the most important visitor on our premises. He is not dependent on

us. We are dependent on him. He is not an interruption on our work. He is the

purpose of it. He is not an outsider in our business. He is a part of it. We are

not doing him a favour by serving him. He is doing us a favour by giving us an

opportunity to do so.

MAHATMA GANDHI

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Customer education is an important aspect of customer protection. Hence

customer awareness camps should be organized by ITC to give information

regarding their products.

Print and electronic media should be used freely

Commercial sponsor programs should be organized to attract dealers.

More and more effective training programs should be conducted regularly for

marketing and sales executives.

There is a need to coordinate effective and efficient promotional programs for

the dealers so that they can achieve their sales targets.

At present, company gives advertisement only on Star news Channel. To

enhance its areas, there is a need of the hour that company should use other

channels also for effective advertising.

Company should organize prize-winning contests to attract more and more

customers and dealers.

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More and more demo classes should be conducted on the regular basis.

company should use flex, boards no large basis.

ITC LTD must print broachers regarding the products.

Annexure 1

List of Areas covered

Vaishali nagar Ajmer road

Nirman nagar Shyam nagar

Mansarover Sodala

Jhotwara Sikar road

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Ambabari Raja park

Murli pura Shastri nagar

Malviya nagar Durga pura

Gopal pura bypass Sanganer

Pratap nagar M.I. road

Bani park Tonk road

Mahesh nagar Barkat nagar

Annexure 2

Businesses

S.No. Category Sub-Category

1. FMCG Cigarettes

Foods ,Snacks

Lifestyle Retailing

Greeting, Gifts & Stationary

Safety Matches

Agarbattis

2. HOTELS

3. PAPERBOARDS & PACKAGING Paperboards & Specialty papers

Packaging

4. AGRI-BUSINESS Agri-exports (e-choupal)

Leaf Tobacco

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5. INFORMATION TECHNOLOGY

6. GROUP COMPANIES

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Annexure 3

Price List for di fferent Brands

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Brands MRP(Rs.) PTR (Rs.)

Insignia 140 123.18

India King 100 87

B&H 100 91.20

555 100 91.20

Classic 94 86

Gold flake king 44 40

Navy Cut 34 31.25

Bristol 19 17.40

Gold flake premium 29 26.80


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1. Ramaswamy, V.S. & Namakumari, S.2004. Marketing Management :

Planning, Implementation & Control, New Delhi : Macmillan India Ltd.

2. Kotler, Philip. 2003. Marketing Management, New Delhi : Prentice

Hall of India Pvt. Ltd.

3. Perrault, Williom D. & McCarthy, E.Jerome. 2005. Basic Marketing :

A global - Managerial Approach, New Delhi : Tata McGraw Hill

Publishing Com. Ltd,

4. Bosc, Biplab S.1998. Handbook of Marketing Management,

Mumbai: Himalaya Publishing House.

5. Kotler, Philip. 2004. Marketing Management, Delhi : Pearson

education (Singapore) Pvt. Ltd.

6. Varshney, R.L. & Gupta, S.C. 2000. Marketing Management & Indian

Perspective, New Delhi: Sultan Chand & Sons.

7. Palmer, Adrien.2004. Introduction to Marketing : Theory & Practice,

New Delhi : Oxford University Press.

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REFERENCES

www.Google.com

www.itcportal.com
http://www.google.com/http://www.itcportal.com/http://www.google.com/http://www.itcportal.com/

Documents

Final Report by Aman