AA

Project Study ReportProject Study Report

OnOn

Training Undertaken atTraining Undertaken at

ITC Ltd. ITC Ltd.

(‘BINGO’) (‘BINGO’)

“A comparative analysis of ITC Ltd. Bingo snacks V/S Frito-Lays &

analysis of retailer buying behavior”

Submitted in partial fulfillment for the

Award of Degree of

Master of Business Administration

Submitted By:Submitted By: Submitted To:-Submitted To:-

Shubham JainShubham Jain Ms.Pooja RatnawatMs.Pooja Ratnawat

MBA Part 2MBA Part 2 Asst. ProfessorAsst. Professor

2010-20122010-2012

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Subodh Institute of Management & Career StudiesSubodh Institute of Management & Career Studies

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Preface

The curriculum MBA provides a well structured and integrated course of business studies.

However, to develop managerial skill in the students’ induction of practical training during the

studies has been incorporated to supplement theoretical study of managerial principles of

business. Industrial training helps to gain real life knowledge about the industrial environment

and business practices. The MBA program provides student with a fundamental knowledge of

business and organizational functions and activities, as well as an exposure to strategic

thinking of management.

The exposure to business environment during the training at Business organization helps in

better understanding of the theoretical knowledge given to us by the learned Professors on

various subjects. Training at floor level helps in development of industrial traits in the

personality.

In today’s globalized world, where cutthroat competition is prevailing in the market, theoretical

knowledge requires work experience. One needs to have practical knowledge for development

in his/her carrier. Rightly has been said that “Experience is the best teacher”. The emphasis in

the project is providing the study and an insight into Indian FMCG Business Scenario.

The Project provided in ITC Ltd. was “Comparative study between ITC & Other products of

Snacks in Jaipur”. The training has provided valuable experience & knowledge during the

survey. The Project consists of findings after data analysis, SWOT analysis and conclusions

have been drawn with recommendations.

Acknowledgement

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I express my sincere thanks to my project guide, Ms. Pooja Baid, Asst. Manager, ITC Foods

Division., for guiding me right from the inception till the successful completion of the project. I

sincerely acknowledge her for extending their valuable guidance, support for literature, critical

reviews of project and the report and above all the moral support she had provided to me with

all stages of this project.

I would also like to thank the supporting staff Ms. Pooja Ratnawat, for their help and

cooperation through out our project.

Shubham Jain

Executive Summary

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With increasing foray into various category of food business ITC needs to determine the best

way to serve the grocery outlets and build equally strong distribution system that match the

long term growth plans of the company in the FMCG business.

This report provides a competitive analysis of noodles industry of ITC and its vis-à-vis nestle.

The scope of the study is restricted to Jaipur city. The analysis is based on retailer

questionnaire. Various parameters such as credit term quality of service, delivery system,

knowledge of salesman etc have been studied.

The result brings out Nestle as the preferred company, primarily on account high quality of

services and consumer demand. The report concluded with recommendation to increase the

brand image of the yippee noodles.

Declaration

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I, Shubham Jain, a student of Subodh Institute of Management & Career Studies (SIMCS),

hereby declare that I have worked on a project titled “Comparative study between ITC &

Other products of Snacks” focusing on Jaipur region” during summer internship at ITC

Ltd., Jaipur in partial fulfillment of the requirement for the Masters of Business Administration.

I indemnify my research work to be authentic and original to the best of my knowledge in all

respects of the process carried out during the project tenure.

My learning experience at ITC, Jaipur Branch, and in the market of the Jaipur Region, under

the guidance of Mr. Jai Prakash Lata, Jaipur Branch, ITC, has been truly enriching.

Date: Dec …., 2011

(SHUBHAM JAIN)

Contents

1. Introduction to the Industry

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2. Introduction to the Organization

3. Research Methodology

3.1 Title of the Study

3.2 Duration of the Project

3.3 Objective of Study

3.4 Type of Research

3.5 Sample Size and method of selecting sample

3.6 Scope of Study

3.7 Limitation of Study

4. Facts and Findings

5. Analysis and Interpretation

6. SWOT

7. Conclusion

8. Recommendation and Suggestions

9. Appendix

10. Biblography

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S.No. Title Page No.

1. Introduction 6

2. Company Profile 11

Objective of the Study

3. SWOT Analysis 18

4. Comparative analysis of ITC Bingo V/S Frito-Lays

Chips

22

5. Study of Selected Research Problem 32

6. Findings 38

7. Recommendations 40

8. Conclusion 42

9. Limitations 43

10. Suggestions 44

11. Questionnaire Sample 45

12. Bibliography 49

1. INTRODUCTION

1.1. FMCG SECTOR IN INDIA

The FMCG sector represents consumer goods required for daily or frequent use. The main

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segments of this sector are personal care (oral care, hair care, soaps, cosmetics, and

toiletries), household care (fabric wash and household cleaners), branded and packaged food,

beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery

products) and tobacco.

The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth

largest sector in the economy and is responsible for 5% of the total factory employment in

India. The industry also creates employment for 3 million people in downstream activities,

much of which is disbursed in small towns and rural India. This industry has witnessed strong

growth in the past decade. This has been due to liberalization, urbanization, increase in the

disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the

reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts

of personal care companies to attract the burgeoning affluent segment in the middle-class

through product and packaging innovations.

The FMCG sector is a producer of luxury items targeted at the elite, in reality; the sector

meets the everyday needs of the masses. The lower-middle income group accounts for over

60% of the sector's sales. Rural markets account for 56% of the total domestic FMCG

demand.

Many of the global FMCG majors have been present in the country for many decades. But in

the last ten years, many of the smaller rung Indian FMCG companies have gained in scale.

As a result, the unorganized and regional players have witnessed erosion in market share.

Government of India has recently opened the gate for FDI in consumer retail market. This

would, undoubtedly, add wings to this flying sector of Indian economy.

1.2. Top 20 Fast Moving Consumer Goods (FMCG) Companies in India

1. Hindustan Unilever Ltd. (HUL)

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

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5. Dabur India Ltd

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries Ltd.

9. Procter & Gamble Hygiene and Health Care

10.Marico Industries Ltd.

11.Colgate-Palmolive (India) Ltd.

12.Gillette India Ltd.

13.Godfrey Phillips

14.Henkel Spic

15.Johnson & Johnson

16.Modi Revlon

17.Nestle

18.Nirma Ltd

19.Amul India

20.Godrej Consumer Products Ltd

1.3. Outlook

There is a huge growth potential for all the FMCG companies as the per capita consumption

of almost all products in the country is amongst the lowest in the world. Again the demand or

prospect could be increased further if these companies can change the consumer's mindset

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and offer new generation products. Earlier, Indian consumers were using non-branded

apparel, but today, clothes of different brands are available and the same consumers are

willing to pay more for branded quality clothes. It's the quality, promotion and innovation of

products, which can drive many sectors.

The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth

largest sector in the economy and is responsible for 5% of the total factory employment in

India.

The industry also creates employment for 3 million people in downstream activities, much of

which is disbursed in small towns and rural India. This industry has witnessed strong growth

in the past decade. This has been due to liberalization, urbanization, increase in the

disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the

reduction in excise duties, de-reservation from the small-scale sector and the concerted

efforts of personal care companies to attract the burgeoning affluent segment in the middle-

class through product and packaging innovations.

The lower-middle income group accounts for over 60% of the sector's sales. Rural markets

account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have

been present in the country for organized and regional layers have witnessed erosion in

market share.

1.4. History of FMCG Sector In India

In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force

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in the FMCG sector well supported by relatively less competition and high entry barriers

(import duty was high). These companies were, therefore, able to charge a premium for their

products. In this context, the margins were also on the higher side. With the gradual opening

up of the economy over the last decade, FMCG companies have been forced to fight for a

market share. In the process, margins have been compromised, more so in the last six years

(FMCG sector witnessed decline in demand).

1.5. Current Scenario

The growth potential for FMCG companies looks promising over the long-term horizon, as

the per-capita consumption of almost all products in the country is amongst the lowest in the

world. As per the Consumer Survey total consumption expenditure are almost 40% and 8%

was accounted by groceries and personal care products respectively. Rapid urbanization,

increased literacy and rising per capita income are the key growth drivers for the sector.

Around 45% of the population in India is below 20 years of age and the proportion of the

young population is expected to increase in the next five years.

Aspiration levels in this age group have been fuelled by greater media exposure, unleashing

a latent demand with more money and a new mindset. In this backdrop, industry estimates

suggest that the industry could triple in value by 2015 (by some estimates, the industry could

double in size by 2010).

India offers a large and growing market of 1 billion people of which 300 million are middle class

consumers. India offers a vibrant market of youth and vigor with 54% of population below the

age of 25 years. These young people work harder, earn more, spend more and demand more

from the market, making India a dynamic and inspirational society. Domestic demand was

expected to double over the ten-year period from 1998 to 2010.

The number of households with "high income" is expected to increase by 60% in the next four

years to 44 million households.

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

excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to

US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product

categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped

market potential. 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.

1.6. Growth drivers FMCG Sectors in India

1. Disposable Income: There is increase in disposable income, observed in both rural and

urban consumers, which is giving opportunity to many rural consumers to shift from traditional

unorganized unbranded products to branded FMCG products and urban fraternity to splurge

on value added and lifestyle products. The increasing salaries, along with rising trend of perks

in the corporate sector at regular intervals, have increased people’s spending power. As per

some research, there is a high correlation between Disposable per capita and HPC per capita.

2. Organized Retail: The emergence of organized retail have lead to more variety with ease in

browsing, opportunity to compare with different products in a category, one stop destination

(entertainment, food and shopping) etc, which is playing an important role in bringing boom in

the Indian FMCG market. Currently the modern trade is capturing 5% of the total retail space,

which will increase to 10% and 25% in 2010 and 2025 respectively. Also, as the credit card

and organized retail trend picks up, people won’t think much while buying and buy more.

3. Distribution Depth: Rural Penetration: There are 5500 towns and 6.38 Lacs villages with

2.5Mln and 5Mln outlets respectively. Due to saturation and cut throat competition in urban

India, many FMCG companies are devising strategies for targeting rural consumers in a big

way. Many FMCG companies are focusing on increasing their distribution network to penetrate

with a step by step plan. This is the reason that FMCG urban market size has dropped from

50% to 29% in last 5 years. The FMCG market size for semi-urban and rural segment was

19% and 52% respectively for the year 2006-07. As per FICCI, the FMCG market size for 13

urban, semi-urban and rural for year 2007-08 was expected to be 57%, 21% and 22%, which

clearly shows that rural market is the growth engine for FMCG growth. Though the urban

markets are growing too, the incremental addition in consumer’s households is much more in

rural space as compared to urban markets.

Rural and Urban potential

Urban Rural

Population Distribution in 2001-02(m House Hold) 53 135

Population 2009-10(M house Hold) 71 156

% Distribution(2001-02) 28 72

Market(Town/Village) 3870 635000

4. Buying Pattern Shift: The crisis of declining FMCG markets during 2001-04 was driven by

new avenues of expenditure for growing consumer income such as consumer durables,

entertainment, mobiles, motorbikes etc. Now, as many consumers have already upgraded,

their income is being directed towards pampering themselves.

4%11%

9%

8%

40%

28%

Spending Pattern(%)

Saving

other

Clothing

Personal Care

Grocery

Entertainment

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5. Favorable Indian Economy & Demographics: 45% people in India are under 20 years of

age. Per capita disposable income has increased from $550 to $600 in 2007 (9% increase).

GDP is growing at a CAGR between 8 to 9%.In the next five years, affluent and aspirers as a

total will supersede strivers and will be dominated by aspirers, as per NCAER.

1.7. Indian Competitiveness and Comparison with the World Markets

The following factors make India a competitive player in FMCG sector:

Availability of raw materials

Because of the diverse agro-climatic conditions in India, there is a large raw material

base suitable for food processing industries. India is the largest producer of livestock,

milk, sugarcane, coconut, spices and cashew and is the second largest producer of

rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash,

which are required for the production of soaps and detergents. The availability of these

raw materials gives India the location advantage.

Labor cost comparison

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Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in

the world, after China & Indonesia. Low labor costs give the advantage of low cost of

production. Many MNC's have established their plants in India to outsource for domestic and

export markets.

Presence across value Chain

Indian companies have their presence across the value chain of FMCG sector, right from the

supply of raw materials to packaged goods in the food-processing sector. This brings India a

more cost competitive advantage. For example, Amul supplies milk as well as dairy products

like cheese, butter, etc.

1.8. Characteristics of FMCG Sector

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From the consumers' perspective:

o Frequent purchase

o Low involvement (little or no effort to choose the item -- products with strong

brand loyalty are exceptions to this rule)

o Low price

From the marketers' angle:

o High volumes

o Low contribution margins

o Extensive distribution networks

o High stock turnover

2. INTRODUCTION TO THE ORGANIZATION

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2.1. History

The company was founded as Wills, Watkins & Co. by Henry Overton Wills I and his partner

Watkins, who opened a shop in Castle Street, Bristol in 1786. After the retirement of his

partner in 1789, it became Wills & Co..

In 1826 his two sons, William Day Wills and Henry Overton Wills took over the company. The

company pioneered canteens for the workers, free medical care, sports facilities and paid

holidays. In 1830, the company was renamed W.D. & H.O. Wills. Their first brand was Bristol,

made at the London factory from 1871 to 1974. Three Castles and Gold Flake followed in 1878

and Woodbine ten years later.

In 1901 Sir William Henry Wills et al. formed the Imperial Tobacco Company from a merger

of W.D. & H.O. Wills with seven other British tobacco companies. Imperial remains one of the

world's largest tobacco companies. Embassy was introduced in 1914 and relaunched in 1962

with coupons. The last member of the Wills family to serve the company was Christopher, the

great great grandson of H.O. Wills I. He retired in 1969.

ITC Limited public conglomerate company headquartered in Kolkata, India. Its turnover is $6

billion and a market capitalization of over $30 Billion. The company has its registered office in

Kolkata. It started off as the Imperial Tobacco Company, and shares ancestry with Imperial

Tobacco of the United Kingdom, but it is now fully independent, and was rechristened to Indian

Tobacco Company in 1970 and then to I.T.C. Limited in 1974.

The company is currently headed by Yogesh Chander Deveshwar. It employs over 26,000

people at more than 60 locations across India and is listed on Forbes 2000. ITC Limited

completed 100 years on 24 August 2010.

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

Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

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

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

nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care

and Stationery.

ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only

company in the world of its size and diversity to be 'carbon positive', 'water positive' and 'solid

waste recycling positive.' In addition, ITC's businesses have created sustainable livelihoods for

more than 5 million people, a majority of whom represent the poorest in rural India

2.2. 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 economy and the Company’s stakeholders.

2.3. 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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Y.C. Deveshwar (Chairman)

Executive Director

Anup Singh k.Vaidyanath

Non-Executive Director

Anil Baijal R K Kaul S H Khan S B Mathur

D K Mehrotra H G Powell P B Ramanujam Anthony Ruys

Basudeb SenB Vijayraghvan

2.5. BRANDS OF ITC

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2.4.Board of Director : Chairman's Statement

ITC's Vision and Strategy

"Envisioning a larger societal purpose ('a commitment beyond the market') has always been a

hallmark of ITC. The Company sees no conflict between the twin goals of shareholder value

enhancement and societal value creation. The challenge lies in fashioning a corporate strategy

that enables realization of these goals in a mutually reinforcing and synergistic manner"

2.6. Advertisement and Add Concept:-

Advertisements are cost effective means to communicate messages and ideas to build brand

preferences and awareness and it is one of the most important tools which a company uses to 21

direct persuasive communication to directive buyers in public or to educated people to avoid

hard drink and so on.

The basic objective of advertising is sales promotion sales promotion expenditure have been

increasing as a percent of budget expenditure annually and the growth is likely to continue in

future. Celebrities signed by the ITC Ltd. are as follows:

Cricketers:-

Sachin Tendulkar

Yuvraj Singh

Cine Stars

Shahrukh

Soha ali khan

Deepika Padukone

Ileana

Hrithik Roshan

2.7. ITC Involved in Following Businesses:

Cigarettes

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W. D. & H. O. Wills, 

Gold Flake Kings, Gold Flake Premium, 

Navy Cut

Insignia

India Kings

Classic (Verve, Menthol, Menthol Rush, Regular, Mild & Ultra Mild)

555,Benson & Hedges

Silk Cut

Scissors

Capstan

Berkeley

Bristol

Lucky Strike

Players 

Flake

Foods

 Ashirvaad

Minto

Sunfeast

Candyman

Bingo

Yippee

Sunfeast Pasta 

Biscuits

Confectionery

Noodles

Snack Foods

Apparel

Wills Lifestyle

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John Players 

Personal care

Fiama di Wills

 Vivel

Essenza di Wills

Superia

Vivel di Wills 

Stationery

Classmate

Paperkraft 

Safety Matches and Agarbattis

Ship 

iKno; Mangaldeep

Aim brands

Hotels

Fortune

Welcomheritage 

3. Research Methodology

3.1. Title of the Study : Statement of Research Problem

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Net Turnover grew by 16.3% primarily driven by a 20.9% growth in the non-cigarette FMCG

businesses, a 19.8% growth in the Cigarettes business and a 17.4% growth in the

Paperboards, Paper & Packaging segment.

In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%,

followed by Haldiram’s at 27% , ITC at 21% and Parle at 5-7%.

The rest is divided between a handful of new entrants, wannabes and many regional players.

Out of these ITC’s Bingo is a new entrant in the market, which was launched in 2007. ITC has

launched Bingo in a wide variety of flavors and formats, ranging from potato chips to finger

snacks. Because of its different and catchy advertisements Bingo has created a buzz in the

market.

Therefore, our aim was to find out the most popular flavor of Bingo among all the offerings.

I have begun our analysis by dividing people into the one’s who preferred more ready made

chips than others. This survey was conducted in Jaipur. To collect the data we designed a

questionnaire.

3.2. Duration of the Project

The duration of the project is of 45 Days.

3.3. Objective of Study

1. To study the snacks industry as a part of food processing industry.

2. To study the company profile of ITC Ltd,the makers of BINGO.

3. To examine the comparative study between Bingo, Parle, Lays, Diamond

4. To examine the comparative trends in snacks industry.

5. To study the Difference between Ordering stock & Ready Stock.

6. To ensure the availability of Itc-bingo.

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7. To examine the sales of Itc product & other products as well as schemes for that.

8. To analyse and interpret the results of sample collected.

9. To determine the future course of action by ITC by offering suggestions through the

samples collected.

10.To find conclusions to our project.

3.4. Type of Research : RESEARCH DESIGN & METHODOLOGY

RESEARCH METHODOLOGY

It includes the response of Bingo Snacks from retailers and customer at retail outlets and in

Modern trade with respect to it competitors.

It also includes the responses of competitor Frito-Lays, Parle, Diamond from various sources.

Work at retail outlets: (Sample has been taken from the normal population)

1. To check the availability of products.

2. To check visibility of products.

3. SWOT analysis of products.

4. To check how old the product is.

5. To trace the complaints regarding the product.

6. Identifying what would the factor to increase sale.

7. To check the Cash discount on the sale

8. To check the Credit availability of the product to retailers.

9. Time taken in replacement of the product due to wear, tear or by expiry of the

product.

10. Knowledge about the brand

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11. Time taken in Ordering & Delivering of the stock by ordering stock or by Ready

stock.

Research Design:-

The study is conducted by both quantitative data & qualitative data. There are two types of

data i.e.

Primary data (Collected from the questionnaires, interview, and observations) & The

Secondary data (which is to be collected by ITC website, internet, books and newspaper).

Data collection technique: -

Primary Data:-

1) Interview with retailers, customers, distributors, and company officials of ITC.

2) Interview with retailers and customers of Frito-Lays, parle.

3) Questionnaire.

4) Observation.

5) Direct contact with people.

Secondary data: - newspaper, Internet and textbooks.

Sources of Data:-

Desciption of Location:- Jhotwara, Vaishalli nagar, DCM, Doctors Colony , Sodala, Sirsi

Road, Niwaru road, Sanganer , Malviya Nagar , Mansarovar , Bagru road, Vidhyadhar

Nagar, Sodala of Jaipur.

Desciption of sub-location:-

Restaurants, Pan Bhandar, Kirana Stores, General Stores, Departmental Stores,

Crockery, Backers, Fancy Store, Misthan Bhandars, Dairy, Traders/Enterprises

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3.5. Sample Size & Method of Selecting Sample

Method: - The sources of data can be collected from the questionnaires & interview from the

retailers.

Sampling Plan: -

Sample size : 400 prospectuses

Sample segmentation : On the basis of Shop name, location & gender.

Sampling Method : Simple Random

Sampling Area : Jaipur

Time : 45 Days

3.6. Scope of Study

The research will help ITC to find out the factors that would help in increasing their net

sales & earning.

It will help ITC to review their quality, promotional method.

It will explore the way to improve Retailer satisfaction.

It will also explore the way to come up as increase in the market share in wafer

industry.

Also it will help to carry out their reach to the customer

It will help to know the taste, preferences and the expectations of the consumer.

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3.7. Limitation of Study

Limited scope:

The area which is taken into consideration for the study is restricted only to Jaipur city.

Biased:

Findings are based on the views expressed by the consumers. So it may suffer from biased

prejudices of individual retailer.

Respondents:

Some of the respondents were not co-operative & many seem to be having no interest.

Limited Scope:

The study has not been intended on a very large scale, have the possibility of errors, which

cannot be ruled out.

The survey has been conducted only in few areas of jaipur.

No time to answer questions: Lack of retailer’s interest to answer the questions. Retailer

seems wastage of time.

The information given by the client may be false and biased.

4. Facts & Findings

SUMMARY OF FINDINGS

16 people out of 36 people who like to eat snacks feel that as compared to other brands

Bingo is much better. Other 12 feel that Bingo is somewhat better and 8 feel that Bingo is

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about the same as other brands. None feel that Bingo is somewhat worse or much worse

than other brands.

When asked how often they eat Bingo 22 people said once a week or more often, 11

people said everyday and 3 people said 2-3 times a month.

Following are the Findings of distribution Network

I. To check the availability, visibility and DND (if any) of Bingo at retail outlet. While doing this, I

understood about distribution and stocking process at WD (Wholesale Distributor) point is as

follows:

a) Ordering process

b) Billing process.

c) Delivery process.

From the above research and operation, Retailers and distributors point of view was cleared.

II. To collect information of Frito-Lays and analyze the data thereafter. For that I have

interviewed Frito-Lays distributors and company official.

III. In order to overcome weakness, my recommendations and contributions.

In the duration of my project I use to visit the market daily with DS (distributor salesmen) and

analyze the market of ITC Bingo and Frito-Lays. ITC & other companies provide same margin

to retailer.

The margin is provided on the based of amount of supply to retailer.

Important factors

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OUTLET COVERAGE:

Salesmen are covering the whole Jaipur city

In internal areas especially in the city, BINGO is performing well.

VISIBILITY:

After covering 25 outlets everyday with the DS, it is found that at more than 15 outlets,

BINGO is visible

No visibility of BINGO at the railway station and bus stand

BINGO is visible at more than 1/3 outlets of the total outlets in Jaipur

5 Rs. Pack is mostly visible

TEDE MEDE is considered the most favored category among all

Stand are not clean & other brands of product in the racks or stand.

FRESHNESS:

o For freshness it was considered that if the manufacturing month is 5 months old then

the stock is fresh.

o On the above parameter more than 95% stock is considered fresh

TRADE SCHEMES:

No credit is given by the company or the salesmen

No cash discount is given

6% is the maximum discount that is given on the purchase of more than 1000 Rs.

Margin is somewhat similar to LAYS but less than Diamond and PARLE

SALES PRACTICES:

No credit is given to the retailers.

On the spot ready stock is provided to the retailers.

Stock is also provided by Ordering stock or Billing process.

Units are carried in taxi,auto or rickshaw.

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Detailed billing is done by the salesmen

CONSUMER OFFERS:

50% extra is provided in TEDE MEDE category

Lack of attractive offers for the consumers

LAYS is providing good consumer offers like:

a. Kurkure is providing Tea Time value share pack.

b. 33% extra in 10 Rs pack of Uncle Chips.

c. Super Saver pack of 20 Rs Uncle Chips with 72g

d. World Cup Special flavors with exciting offers of winning prizes

e. Share pack of 10 and 20 Rs LAYS.

f. Super saver pack of 30 Rs Lays.

GENERAL FINDINGS:

We are competing with our prime competitor LAYS.

BINGO is a well established brand.

BINGO is performing well in the internal areas of the city.

TEDE MEDE is on the top of the chart among all categories of BINGO

BINGO CHIPS are competing well with LAYS in small outlets.

MAD ANGLES are not performing up to the mark

In the racks of BINGO, LAYS are being displayed.

Why LAYS in the market????

LAYS has first mover advantage in the wafer market.

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LAYS has captured the market for a very long time.

LAYS has adopted intensive advertising and they have better promotion style.

Increasing consumer demand

More salesmen, more routes to be covered.

Salesmen are better trained. They could easily convert the sales. However, the strong

brand image of LAYS also helps them.

Why sales of BINGO are decreasing???

Lack of stock in godown

Imbalance between demand and supply

Outdated stock

Summer vacations. Therefore, students are not purchasing BINGO.

Salesmen are not capable enough to convert the sales.

Clashes of areas of salesmen

Competing with a well established brand LAYS

Ignoring other potential brands like Diamond & PARLE. Their margin are high and good

in weight

Lack of racks, hanger etc. to display the products at some outlets

Finding about the working in ITC

ITC uses FIFO method to reduce the wastage of goods due to expiry.

They also keep the good on constant move from low sale area to high sale area.

The company collects all the expired goods four time a year, and destroy them.

Retailers must return expired or damaged products within six month after the date of

expiry.

Adjustment for them is done in three month time.

ITC provide their retailers with racks, hanger, etc to display the products.33

The benefits received by the retailer depend upon their sales volume and also the

location of their shops.

Other Factors of the Brand

ITC has a good mix of traditional and modern type of distribution channel.

The response of customer towards Bingo is positive.

At some outlets the sale was good.

Offer packs or consumer offer packs mostly sales.

The total coverage of ITC Bingo snacks falls very short in comparison to Frito-Lays.

Sometime there was demand but no supply.

One of the major problems is that many packets are being expired or due to wear

and tear the products are not saleable in the market. Retailers have complained

many times but no response is being taken.

Majority of retailers is asking about Boards, Display, and Racks.

Delay in replacement of Chips.

Some Shop keepers do not get scheme on time.

Also at some places Bingo’s signage is still hanging in spite of no transactions

with those outlets.

34

The problem is the lack of coverage and promotion activities & proper advertisement.

So for promotion activities there are some point recommended by me in the next page.

5. Analysis of Data & Data Interpretation

Data was collected through visiting and surveying 210 outlets (Departmental Stores,

Convenience Stores, Wholesale outlets) serviced by ITC in Jaipur. The outlets covered were

present in area covered by two WD’s of ITC, namely S.K. Monutrade Pvt .Ltd and M/s Pawan

Associates WDS. The objective of the focused data collection was to get a clearer comparative

picture.

Area Covered

Day 1: Kantichand Road with Ready Stock

Day 2: Bagru Road with Ready Stock

Day 3: Sindhi Colony with Ordering Stock

Day 4: Vidh. Nagar with Ready Stock

Day 5: Niwaru Road with Ordering Stock

Other Days :

Mansarovar

Malviya Nagar

Sanganer

Diggi Road

Radha Vallabh Marg\

Sangam Road

Anta Colony & Sunder Nagar

Kisaan Colony & Shikaarpur Road in Rural area

Area of Questioning

35

Ordering Stock

Ready Stock

Complaints & Expiry about the product

Cash Discount

Schemes of the brands with other competitors

Companies stocked & preferred company.

Availability & Visibility of product.

Frequency of salesman visit.

Cash and credit term.

Weekly/Monthly sales.

Replacement of stock.

Sales Practices

Trade scheme and consumer offers.

In order to extract the meaningful information from the data collected an analysis of data is

done using pie charts, bar graphs etc.

Data collected on the basis of two types:-

1. On the basis of Retailers

2. On the basis of Customers

SALESMEN’S VISIT TO THE MARKET36

ITC

Lays

Parle

Diamond

0 50 100 150 200 250 300 350 400 450 500

180

190

95

80

DS Visit

Out of 210 outlets covered, 180 outlets are visited by the ITC’s salesmen, Lays DS visits

190 outlets, Parle DS visits 95 outlets and Diamond’s DS visit 80 outlets. In rural areas,

at many outlets the DS of Lays and Parle do not visit the outlets.

DS Visit in a week37

once a week

Twice a week

Thrice a week

more

0 50 100 150 200 250 300 350 400 450 500

OTHERS

Column2

Column1

Parle

LAYS

ITC

Once a week Twice a

week

Thrice a

week

More

ITC 180 0 0 0

LAYS 190 0 0 0

PARLE 95 25 0 0

OTHERS 90 65 0 0

38

Availability of Product

ITC

LAYS

Parle

Others

0 50 100 150 200 250 300 350 400 450 500

Availability of product

Availability of Product

ITC 155

LAYS 185

PARLE 43

OTHERS 90

Out of 210 outlets, LAYS is on the top of the chart with availability in 185 outlets

whereas ITC’s Bingo is available in 155 outlets. Parle is available in 43 and others

including Parle, Crax, & Diamond are available in 90 outlets of the internal city.

39

Preferred company

25%

41%

11%

Prefered Company

ITC

LAYS

PARLE

Total outlets ITC LAYS PARLE OTHERS

210 53 87 23 47

The above data clearly indicate that LAYS is most preferred company by the outlets due to

the consumer demand and a strong brand image of the company. Some outlets prefer the ITC

and PARLE just because of non reach of the DS of the LAYS.

40

Grievance handling by DS.

Total Yes No

ITC 180 133 47

LAYS 190 155 35

PARLE 95 76 19

74%26%

ITC

Yes

No

41

82%

18%

LAYS

Yes

No

80%

20%

PARLE

Yes

No

During the survey it was found that as compared to the DS of ITC, the DS of LAYS are more

efficient in handling the grievances of retailer. However the salesman of ITC is knowledgeable

according to the response of the retailers. A frequent complaint is the result of delay in the

stand demand. There must be a training program for the retailers to improve their knowledge

and skills about the product and selling.

D&D(Damage and Destroy) satisfaction

42

Yes No

ITC 152 28

LAYS 182 8

PARLE 76 19

84

16

ITC

Yes

No

43

96%

4%

LAYS

Yes

No

80

20

PARLE

Yes

No

The replacement of the expiry or damaged products is also a thing that needs a focus.

The replacement of LAYS is more frequent than ITC. Most of the retailers refuse to place any

order just because they were having a lot of stock to be replaced and told that they will place

order only when the stock would be replaced

44

Managing Stock Out

Total Outlets Contact Ds Contact WD

directly

Other

210 172 15 23

45

82%

7%

11%

Managing Stock Out

Contact Ds

Contact WD directly

Other

In the situation of stock out, nearly 82% outlets point out that they wait for next visit by

DS or buy substitute (other) where as 11% said they purchase product from secondary

wholesalers.

Consumer Data Analysis and Interpretation

Preferred company

46

22%

53%

10%

15%

Prefered Company

ITC

LAYS

PARLE

Total No. of

Consumer

ITC LAYS PARLE OTHERS

180 40 95 18 27

The above data clearly indicate that LAYS is most preferred company by the consumers due to

a strong brand image of the company and also it matches their taste. ITC is trying its best to

reach more and more consumers.

Criteria for selecting the favored company

47

50%

17%

23%

Criteria for selection

Taste

Pricing

Visiability/Availability

No. of

Consumers

Taste Pricing Visibility Others

180 90 31 41 18

The above data clearly indicates that most of the consumers select their favorite wafer

company by the taste. Although pricing and visibility/availability are also major criteria for them.

Source of knowledge for selecting the company

48

50%

26%

14%

Source of knowledge

Outlet Visibility

Friends

Magazine

Total

Consumers

Outlet

Visibility

Friends Magazine/Newspaper Others

180 90 47 25 18

The above data clearly indicate that visibility of the product at the outlet increases the

knowledge of the consumer about the product. Also the recommendation of friends and

relatives are always a major source of knowledge for any product. Magazines and newspaper

also helped Bingo to reach to the consumers.

Improvement Area for Bingo

49

45%

30%

17%

Improvement Area

Taste

Marketing

Pricing

Total

Consumer

Taste Marketing Pricing/Weight Others

180 81 54 32 13

The above data clearly indicate that taste and marketing are the two major areas of concern

where some improvements are required. Like, taste of Mad Angles are good but in wafers

some “difference with Excellency” is required.

50

Factor of success for Bingo

55%

30%

10%

Factor of success

Taste

Visibility/Availability

Pricing/Weight

Total

Consumers

Taste Visibility/Availability Pricing/Weight Others

453 99 54 18 9

The above data clearly indicate that taste is the most favorable factor for the success of bingo.

Although the visibility/availability and Pricing/weight can’t be ignored.

Other Data’s of survey from the point of consumers are as follows :

51

The first objective of the research project is concerned with finding out what

percentage of people likes to eat snacks. The pie chart given below is clear on

the percentage of people who like to eat snacks. Out of 200 respondents 144 like to

eat snacks while 56 don’t.

Our second objective is concerned with finding out which flavor of Bingo is most

preferred.

52

YES-14472%

NO-5628%

Chart Title

Table showing the responses of people:

Flavours Respondents

(value)

Respondents

(percentage)

Masala Potato chips 3 8%

Salted Potato chips 1 3%

Tomato Potato chips 3 8%

Chatkila Nimbu Achar Potato chips 1 3%

Tandoori Paneer Tikka Potato chips 3 8%

Mad Angles 22 61%

Tedhe Medhe 1 3%

Livewires 2 6%

8%3%

8%3%

8%

61%

3%6%

Chart Title Masala Potato chips

Salted Potato Chips

Tomato Potato chips

Chatkila Nimbu Achar Potato Chips

Tandoori Paneer Tikka potato chips

Mad Angels

Tedhe Medhe

Livewires

The above table and pie chart shows the responses of the people. It is clear that Bingo’s Mad

Angles dominates the market for Bingo.

53

The second spot is shared by two flavours equally—Masala potato chips and Tandoori Paneer

Tikka potato chips. Third most popular format of Bingo is Livewires and the fourth spot is

shared by Salted Potato Chips, Chatkila Nimbu Achar potato chips and Tedhe Medhe.

The third objective was to analyze the reasons for the popularity of the most

preferred flavour. For this the respondents were asked what do they like most

about Bingo. Following pie chart shows their responses.

47%

11%

16%

8%

13%

5% Chart TitleTaste

Variety

Quality

Price

Quantity

Packaging

From the above pie chart we can see that people like the taste of Bingo the most i.e. they like to eat

Mad Angles Because of its unique format and flavor.

54

Fourth objective was to find out how much people are satisfied with Bingo. It

means it is value for money & taste preference from others is also good. Following

pie chart shows the satisfaction level of people:

very satisfied44%

somewhat satis-fied39%

unsatisfied17%

Chart Title

The fifth objective was to find out how much people spend weekly on snacks.

0

5

10

15

20

25

30

25

15

10

Below 50

50-100

Above 100

Money Spent

No.of people

From the above diagram it is clear that most people spend below Rs.50 on Snacks. And

very small part of the sample spends more than Rs.100 on snacks weekly.

55

Our sixth and last objective was to find out the preferences of people for different brands.

Here, we aim to find out the most popular brand of snacks excluding Bingo.

0

2

4

6

8

10

12

14 13

7

9

2

5

Lays

Kurkure

Uncle chips

Parle

Haldirams namkeens

Snacks Brands

No. of people

In the above graph we can see that Frito Lays is the most popular brand among people

followed by Uncle Chips and Kurkure. Next is Haldiram’s Namkeens. The least popular brand

appears to be Pringles. It may be because Pringle is based on American recepies and tastes

and the Indian public has not been able to warm up to the American tastes. Also, Pringles is

imported which makes it a little more expensive than Indian snacks.

56

TRADE SCHEMES

Bingo:

On Purchase of Discount Offered

1-500 Rs 4%

500-1000 Rs 5%

1000 Above 6%

Lays:

M.R.P. Discount (In Slabs) Discount (In %)

5 Rs 24+1 4%

10 Rs 40+1 2.5%

70+2 3.8%

100+3 3%

20 Rs 50+1 2%

70+2 3.8%

100+3 3%

57

Parle:

M.R.P. Discount (In Slabs) Discount (In %)

5 Rs 24+1 4%

10 Rs 24+1 4%

20 Rs 24+1 4%

Diamond:

Credit period is given from one week to one month

CONSUMER OFFERS

Bingo:

50% extra is provided in TEDE MEDE category

Lays:

1. Kurkure is providing Tea Time value share pack.

2. 33% extra in 10 Rs pack of Uncle Chips.

3. Super Saver pack of 20 Rs Uncle Chips with 72g.

4. World Cup Special flavors with exciting offers of winning prizes.

5. Share pack of 10 and 20 Rs LAYS.

6. Pack of 30Rs lays pack with 110gms in it.

58

Parle:-

20% extra in 10 Rs. Packets.

SALES PRACTISES

BINGO:

A. No credit is given to the retailers.

B. On the spot ready stock is provided to the retailers.

C. Units are carried in taxi or auto or rickshaw.

D. Detailed billing is done by the salesmen

LAYS:

A. No credit is given to the retailers.

B. On the spot ready stock is provided to the retailers.

C. Units are carried in taxi or auto.

D. Summarized billing is done by the salesmen i.e. as a whole…

Diamond

A. Credit is given to the retailers on honesty basis for 1 week. (Upto 1 month)

B. In very rare case 6 months credit can also be given.

C. On the spot ready stock is provided to the retailers.

D. Units are carried in taxi or rickshaw.

E. Summarized billing on SKU basis is done by the salesmen

PARLE:

59

A. 1 week credit is given to the retailers.

B. On the spot ready stock is provided to the retailers.

C. Units are carried in taxi.

D. Summarized billing on SKU basis is done by the salesmen.

COMPARATIVE ANALYSIS OF ITC BINGO V/S FRITO-LAYS CHIPS

PREMIUM SALTED JUICY TOMATO KETCHUP

RED CHILLI BIJLI SPICY MASALA REMIX

INTERNATIONAL CREAM & ONION

60

BRIDGES MAD ANGLE

CHILLI DHAMAKA TOMATO MISCHIEF

HATKE-JHATKE

FUNKY MASALA TOMATO TWIST

61

TEDHE-MEDHE

ABOUT BINGO!

The launch of Bingo! On 14th March 2007 marked ITC's foray into the fast growing branded

snack foods segment. Bingo’s portfolio includes an array of products in both Potato Chips &

Finger Snacks segment. Bingo is positioned as a youthful and innovative snack, offering the

consumers with choice in terms of both formats and flavors.

The launch is symbolic of ITC Foods' distinct approach of introducing innovative and

differentiated products in a largely undifferentiated market place. Bingo’s launch was

strategically timed around the World Cup.The idea was to get the consumer to take that first

bite.The company has positioned this brand as a fun brand targeting at the youth.Bingo are in

two types-Chips & mad angles.

Bingo! Potato Chips – ‘the crunchiest potato chips’

Bingo! Potato Chips are all about ‘irresistible combinations’. They are a combination of crunchy

potato chips along with yummy flavors. These flavors range from traditional favorites like

Salted to innovative ones such as Red Chilli & Lime Pickle.

What’s new?

62

Bingo! Pickle Tickle: Some lemons remain lemons, the tastier ones become lime pickle. But

the naughty pickled lemons escape the jar, mix with crunchy potato chips to tickle your taste

buds! A bite of the mouth watering Bingo! Pickle Tickle Potato Chips with just the right spicy

and sour flavor of pickled lime in crunchy potato chips. It will surely make the taste buds crave

for more! Pickle Tickle is currently being launched in the Southern parts of India.

Bingo! Mad Angles –"har angles se Mmmm…"

One of the biggest successes from the Bingo! portfolio, Bingo! Mad Angles has carved a niche

for itself in the consumers mind and is synonymous with the perfect triangular snack.

A combination of innovative flavours on a traditional khakra base, Mad Angles is a snack that

is true to taste and perfect flavour delivery as well as shape, making it a snack that’s truly "har

angles se Mmmm…"

What's new?

Bingo! brings you the chaat flavour that you can savour without having to stop by the "gali ka

chaatwala".

Let your fingers dive in to the perfect combination of the taste of fresh pudina, tangy tamarind,

creamy yogurt and of course, the crunchiness of khakra triangles. Available in packs of

Rs.5, Rs. 10 and Rs. 20, the new Bingo!

BRAND IDENTITY

A brand which is for the whole country by providing the customers with tastes (flavors) from all

around India.

Bingo identifies itself as a brand which is youthful, fun and colorful.

The triangular shape of the chips makes it easily recognizable amongst the consumers.

WHAT’S IN THE NAME OF BINGO!

63

FRITO LAYS

Company Profile of Frito-Lays

Frito-Lay is the world's largest manufacturer and distributor of snack foods and is a wholly

owned subsidiary of PepsiCo. Since its entry in India in 1989, PepsiCo’s snack foods division

Frito Lay India (FLI) has become the clear leader in branded salty snack segment with popular

brands like Lays, Kurkure, Uncle Chips, Cheetos and Lehar Namkeens.

Frito Lays India produces its snacks at its state-of-the-art plants in Channo (Punjab), Pune

(Maharashtra) and Sankrail (West Bengal). The company operates over 40 distribution centers

64

BINGO!

Easy to pronounce

RecallableExclamation

MarkTrendy and Fun

Catchy

that serve more than 2,500 active stockists, reaching approximately 1 million retail outlets that

in turn make the product available at an arms length.

Frito-Lay India Ltd. produces India's largest snack food manufacturer’s brands, including

Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay's story is an example of how American

recipes were adjusted to satisfy local tastes.

WINNING FLAVOUR

Lay’s, the world’s and India’s No 1 potato chips brand from Frito-Lay India, is all set to provide

some new lip smacking tastes to its consumers. The four short listed flavors from a whopping

1.3 million ideas came from four winning consumers, each of whom gets Rs 5 lakh for their

‘dillogical’ flavor ideas. Cheesy Mexicana, Tangy Twist, Mastana Mango and Hip Hop Honey &

Chilly from a three-month long Give Us Your Delicious Flavor (GUYDF) campaign. The four

flavors will be sold in the market across India for the next two months with the theme bachega

sirf tastiest (survival of the tastiest). The flavor that elicits the maximum consumer votes will

not only continue to stay in the market as the mega winner, but its ideator would be awarded a

grand prize of Rs 50 lakh and 1% of sales revenue.

VARIANTS OF FRITO LAYS

CHIPS Kurkure Uncle chips Aliva

1. Spanish tangy

tomato

1.Masala munch 1.Spicy treat 1.Special

2. American cream

and onion

2. Chili chatka 2. Chatpata Masala 2.Special tomato

3. Classic salted 3.Funjabi(rajma) 3.ChachakaChinese 3.Special salted

65

4. Magic Masala 4. Rajhasthani 4.Special mint

Winning flavors 5. Hyderabadi

5. Hip hop honey 6. Solid masti twist

6. Cheesy Mexicana 7. Solid masti khatta-

mittha

7. Tangy twist 8. Dewana tomato desi

beat

8. Mastana mango 9. Flirty lime

10. Naughty tomato

COMPETITION AMONG VARIANTS OF BINGO Vs LAYS

66

BINGO CHIPS LAYS CHIPS

1. Spicy Masala remix Chilly Mexicana

2. International cream onion American cream and onion

3. Juicy tomato ketchup Spanish tangy tomato

4. Red chili bingo Magic Masala

5. Premium salted Classic salted

Bridges

6. Mad angle tomato Kurkure Dewana tomato

7. Mad angle chili Kurkure chili chatka

8. Mad angle achari Kurkure Rajhasthani

9. Hatke-Jhatke Funky Kurkure Funjabi

10. Hatke-Jhatke Tomato Kurkure Naughty Tomato

11. Tedhe-Medhe Kurkure Masala Munch

VARIANTS OF PARLE

CHIPS FULLTOSS

67

Tangy Tomato Green Mango Chatni

Classic salted Masala Munch

Masala Masti Masala Kachori

Red Chilli Tangy Pickle

Aloo Chat Jhalmuri

Cream and Onion

CALCULATION OF PRICE TO RETALIER (PTR)

PTR =

Main Competitors:

1. Frito-Lay

Lays

Kurkure

Uncle Chipps

Cheetos

68

MAXIMUM RETAIL PRICE ( MRP)

100 + % MARGIN

2. Parle Full Toss

Comparison of Prices:

Distribution Channel

Bingo Lays Parle

Total No. of distributors 4 1 2

69

Product Price

(ITC Ltd)

Product Price

(Frito Lay)

Product Price

(Parle)

Bingo

Rs. 5

Rs. 10

Rs. 20

Lays

Rs. 5

Rs. 10

Rs. 20

Uncle Chipps

Rs. 10

Rs. 20

Kurkure

Rs. 5

Rs. 10

Rs. 20

Full Toss

Rs. 5

Rs. 10

Rs. 20

Total No. of salesmen 7 12 7

Total routes/beats 42 72 42

Area Covered Jaipur Jaipur Jaipur

M.R.P. P.T.R

Bingo Lays Parle

5 Rs 4.46Rs 4.50Rs 4.28Rs

10 Rs 8.93Rs 9.00Rs 8.56Rs

20 Rs 17.86Rs 18.00Rs 17.12Rs

WEIGHT

ON CHIPS

M.R.P. Bingo Lays Parle

5Rs 14g 14g 17g

10Rs 28g 28g 36g

20Rs 66g 62g 84g

30Rs - 110g -

FULLTOSS/TEDE MEDE/ KURKURE/CHATAKA PATAKA/KURRAM

M.R.P. Bingo Lays Parle

70

5Rs 30g 25g 30g

10Rs 67.5g 55g 50g

20Rs 130g 150g

On MAD ANGLES

M.R.P. Bingo

5Rs 20g

10Rs 50g

20Rs 120g

Extra Schemes in the Brands

Parle - 20% Extra

Uncle Chips - 33% Extra

Bingo - 50% Extra(In Tedhe Medhe)

71

Product Portfolio

Bingo provides innovative finger foods like the Pakoda inspired Live Wires, Khakra inspired Mad Angles

and Time pass snack in the form of Tedhe Medhe. The Potato Chips offerings include Salted, Masala

and Tomato flavours, Chatkila Nimbu Achaar, etc. Bingo! – International Cream & Onion is the brand’s

latest addition to its existing unique and exciting range.

FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER

72

1. SCHEMES OF VOLUME PURCHASE

Cash discount

Card discount (sampling)

2. DISPLAY MATERIAL

Stickers

Banners

G.S. Boards

D.P.S. Boards

Racks

Counters

6. SWOT Analysis73

S Things the company does well.

W Things the company does not do well.

O Conditions in the external environment that favor strengths.

TConditions in the external environment that do not relate to existing strengths or favor areas of current weakness.

Internal

External

SWOT analysis is a tool for auditing an organization and its environment. It is the first

stage of planning and helps marketers to focus on key issues. SWOT stands for

strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal

factors. Opportunities and threats are external factors.

74

Production CostsMarketing SkillsEmployee CapabilitiesFinancial ResourcesAvailable TechnologyCompany/Brand Image

Strengths and

Weaknesses(INTERNAL)

OpportunitiesAnd

Threats(EXTERNAL)

SocialDemographicEconomicTechnologicalPolitical/LegalCompetitive

75

Strengths-

Believe on the customer satisfaction.

ITC has a broader product line and outstanding reputation.

Record revenues and increasing market share

Great brands, strong distribution, innovative capabilities

popular with younger people, wide array of brands

ITC has a big share , popular, well know by customers, hire celebrities for promotion

Company has good market share in Jaipur

Company has a Brand Equity among Consumers.

ITC is a well-established co., so it has a good reputation in the market.

Presence of well-known brands in FMCG sector

Abundant availability of raw material

Weaknesses-

No provision for regular replacement of damage of packets.

Distribution is not proper so we can say not justified.

Non-fulfillment of commitments on time, made to shopkeepers.

Incompetent salesman who do not give the schemes in the market regularly.

Unavailability of various demanded flavors like American lays, uncle chips.

Not proper control over distribution network

Low availability of adequate infrastructural facilities

Inefficient supply chain due to a large number of intermediaries

76

Opportunities-

Increase the coverage areas.

Increase market share by improving service

Increase the target consumer every year.

Company can go for more Monopoly counters.

May tie up or liaison with major showrooms, computer centers & restaurant.

Huge publicity of Bingo has created a lot of demand.

Company has brand equity in the eyes of customers, so its new products can easily

penetrates in the market.

Untapped rural market.

Rising income levels, i.e. increase in purchasing power of consumers

water related products, soft drinks, energy drinks

Threats-

Distributors are reducing in Jaipur city.

Constant competition with Lays.

Other snacks companies (i.e Parle, Diamond etc) are increasing competition.

Decline in market reputation due to ineffectiveness & declaring service.

Aggressive marketing strategies of Lays.

Threat of competitors new brand entry in the market in near future.

High taxation

High packaging cost

77

7. Conclusion

My Project gives me the true knowledge of customer relationship concepts & also helped to

understand the working environment of the ITC.

The major thing, which I found in my whole project, is as follow:

The market share of Lays is more than Itc.

The distribution channel of both companies is not proper.

Advertising policy of Lays is better than Itc.

Company relation with retailers is credit based, which provided company to penetrate

into the Market.

Sincere efforts for Sales promotion are required.

A communication channel between retailers and company is required.

Route in charge should be appointed on all routes in consultation with marketing

department.

Information about the company’s sales promotional scheme and product development

should be communicated to retailers.

Proper distribution of Incentive Package should be provided among retailers.

There is a need to put the image of our product Bingo in the mind of customers before

they come to purchase at shop.

Lays has been around for a longer time and has its loyalists. Lays scores on flavor while

Bingo is crunchier. Right now Lays has the upper hand but Bingo has a good thing

going with new and innovative products like 'Mad Angles'

78

8. Recommendations & Suggestions

Recommendations

There is vast distribution gap between ITC Bingo snacks and Frito-Lays which has to be

filled up in order to increase the sales for that ITC should consider:

Width of Distribution: total number of outlets covered should be increase in order to

bridge the distribution gap. For that ITC should

Increase the number of DS.

Ready Stock: there are many areas around the city where supply through loading

auto is not possible for that ready-stock should be made available.

We can give advertisement at news papers,pamplets if we talk with operators for our

advertisement.

We can increase the total margin given to retailers.

We can introduce new schemes for: Wholesaler scheme?

79

o Wholesaler is totally interested in margin or demand which has high demand

in the market. At present ITC Bingo is in its growing stage if we provide

comparatively high margin to wholesaler then it will influence the sale.

We can introduce new consumer offer packs.

To some of posh area we can provide free sample of Bingo so that the people get

aware of the product quality.

Company should appoint competent & honest salesman so that they could provide

schemes to the entire retailer’s & cover their full route.

It is often seen that some salesman do not intimate schemes to the retailer & few of the

retailers complained about it. So there should be frequent visits of Customer Executives

to their respective areas to keep the shopkeepers benefited with various schemes.

Delay in starting of supply vans from respective depot should be checked & a proper

time register should be maintained.

Most of the retailers are complaining about non-fulfillment of commitments regarding

their sampling. Company should make sure that the retailers get the sampling on time

so that they are satisfied.

Most of the retailers are complaining about delay & no replacement of Chips

Marketing Management should sort some solutions to this major problem of replacing

Chips.

Half filled chips should also be checked at the time of issue of goods

from the distributor’s go down to the respective routes.

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Introduce a celebrity in order to increase the fame of BINGO

In order to drive the distribution visibility should be increased at the shops/outlets.

Intensive action should be taken in this context

Opt for a differentiation strategy because even if people buy wafer but they call “LAYS

dena” or if they buy TEDE MEDE they say “KURKURE dena”.

Retailers should be provided with some attractive schemes.

Actions should be taken for increasing consumer demand

Promotional campaign should be conducted at the school for making awareness among

the kids because they are the major consumer.

Improvement needed in regular supply.

POP and display activities should be on regular basis.

There should be a training program for salesmen so that they could handle all the

grievances of the retailers.

Salesmen could be trained in such a way that they could take on the spot decisions.

Retailers should be provided with a helpline no. so that they can solve their problem.

Cash discount should be given to the retailer to encourage cash payment.

Credit for short period should be given because it is the demand of some retailers

Racks, hangers etc. should be provided where ever it is required in order to increase

the level of visibility at the outlets.

At the outlets, it is found that in the racks of BINGO, LAYS are being displayed. DS

should take action at the outlets or intimate the superiors so that they could take

necessary actions

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Some cultural or academic programs should be conducted and BINGO word can be

used to express the winning moment and give some BINGO products as small prizes.

This will make awareness among the kids of BINGO

In the internal areas and those places where DS of LAYS can’t reach, is a place for

some good opportunity. In the city area, neither LAYS nor BINGO are doing well. Those

are the places where the scope for BINGO can be created

Introduce some better consumer offers at regular interval in order to attract more and

more consumers

There should be some arrangement for the retailers so that they can deal with the

situation like “what if the stock ended earlier? Should I wait for the next visit of DS?”

Suggestions

An inspection officer should be recruited who perform surprise inspection of the market

and find out the problems.

Salary of the sales personals should be increased so they may not indulge in fraud to

retailers.

The vehicles of the agency should be inspected so the delivery should be maintained.

The supply from the factory to the agency should be good especially the brands like Mad

Angles & Tedhe Medhe.

9. Appendix

10. Bibliography

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BOOKS:

Marketing Management- Radha Swami/ Nam kumari

Research Methodology-C.R.Kothari

Principles of Marketing-P. Kotler & Armstrong

WEBSITES:

www.google.com

www.ask.com

www.wikipedia.org

NEWS PAPERS:

The Times Of India

The Economics Times

Hindustan Times

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11. Questionnaire

RESEARCH PROJECT ON THE STUDY OF BINGO

This is survey on Bingo by Shubham Jain for the partial fulfilment of the requirements for thefor the partial fulfilment of the requirements for the

awards the degree of MASTER OF BUSINESS ADMINISTRATION. So kindly give yourawards the degree of MASTER OF BUSINESS ADMINISTRATION. So kindly give your

response to these questions:-response to these questions:-

QUESTIONNAIRE on

Name: _______________________

Age : ________

Signature: ___________________

General Instructions:

1. Answer all questions.

2. Indicate your answer by marking a tick against an appropriate option.

3. Mark only one option in all questions.

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Q1. Do you like to eat snacks?

Yes ___

No ___

Q2. Have you heard of ITC’s BINGO?

Yes ___

No ___

Q3. Have you ever tried BINGO?

Yes ___

No ___

Q4. Which flavour do you like the most?

1. Masala Potato Chip ___

2. Salted Potato Chip ___

3. Tomato Potato Chip ___

4. Chatkila Nimbu Achar Potato Chip ___

5. Tandoori Paneer Tikka Potato Chip ___

6. Mad Angles ___

7. Tedhe Medhe ___

8. Livewires ___

Q5. How often do you have BINGO?

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Once a week or more often ___

Everyday ___

2 to 3 times a month ___

Q6. How much do you spend weekly on snacks?

Below Rs. 50 ___

Rs. 50-100 ___

More than Rs. 100 ___

Q7. Overall, how satisfied are you with BINGO?

Very satisfied ___

Somewhat satisfied ___

Unsatisfied ___

Q8. What do you like about BINGO?

Taste ___

Variety ___

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Quality ___

Price ___

Quantity ___

Packaging ___

Q9. Compared to other snacks (such as Kurkure, Lays, Parle etc.) that are available, would

you say that BINGO is?

Much better ___

Somewhat Better ___

About the same ___

Somewhat Worse ___

Much Worse ___

Q10. How likely are you to recommend BINGO to others?

Definitely will recommend ___

Probably will recommend ___

Not sure ___

Probably will not recommend ___

Definitely will not recommend ___

Q11. How did you first discover BINGO?

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Advertising- T.V, Newspaper, Radio ___

Friends/ Family ___

Saw it in store ___

Other ___

Q12. Before switching on to BINGO, which snack did you prefer?

Lays _____

Kurkure _____

Uncle chips _____

Parle _____

Haldiram Namkeens _____

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