Project Report on Retail Coverage of ITC


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Project Report on Retail Coverage of ITC

  1. 1. 1 Summer Training Project Report On Retail Coverage Submitted in the partial fulfillment of the requirement for the award of the Degree of Master of Business Administration (2012-14) Under the supervision of: By: Mr. Deepak Kumar Jitender Shoolini University of Biotechnology & Management Sciences
  2. 2. 2 Acknowledgement I am neither a research expert nor a trend spotter; I am a management student with foundation of management principles and theories, who is curious about various sectors and its latest happenings. Definitely, I can’t ignore the technology, with internet as the backbone and those search engines which helped me in building up this research project. To being with, I am obliged to Mr. Manish Sharma (Area Executive, ITC Ltd.) & Ms. Rajni (Human Resource Manager, ITC Ltd.) who allotted me this chance and without their guidance and constructive criticism this report might have not been completed. I would like to thank Agent franchise owner, supervisor and individuals & for helping me in making project. I would like to express my heart full gratitude to Mr. Deepak Kumar (Area Executive, ITC Ltd.), who helped me in sharpening my thinking by cheerfully providing challenging comments and questions. I’m also thankful to the management & all employees of ITC LTD. Lastly, I would like to thanks to the ALMIGHTY and my parents for their moral and financial support and my colleagues with whom I shared my day-to-day experiences and received lots off suggestions that improved my work quality. Jitender MBA
  3. 3. 3 PREFACES In the economy for tightening Business nuts and bolt of any company need to measure its market position in a certain time interval with ever changing theories and the concept of market. For this assessment we need the robust methodology of survey. Although surveys does not reveal the absolute solution of any objectives, but it provides the inclination towards a good output. ITC Ltd. is a good FMCG company in Indian market. In this project I compare the Retail Coverage of this company. Find the market share & market potential of this company etc. The preparation of this report provides you great pleasure in releasing our work and market experiences in few pages which shows overall and experienced knowledge and the practical approach about the style of a professional and thing which I found various affecting to our marketing and product image. The project termed as ―Retail Coverage‖ has made an effort to find out the issues concerning with ITC LTD.
  4. 4. 4 TABLE OF CONTENT S. No Chapters Page No 1 Title Page 1 2 Certification from organization 3 Acknowledgement 2 4 Prefaces 3 5 Executive Summary Topic Objective of the study Research methodology 5 6 7 8 6 Company Profile 9-26 7 SWOT Analysis 27 8 Competitive Analysis 28-31 9 Industry Analysis (Using Porter’s five forces model) 32-33 10 Analysis and interpretation 34-46 11 Findings and Recommendations 47 12 Limitations and Conclusions 48 13 Questionnaire 49-50 14 Bibliography 51
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  6. 6. 6 EXECUTIVE SUMMARY TOPIC: “Retail Coverage” The report is an earnest endeavor made to understand the present market scenario of FMCG in Shimla region and simultaneously ascertain visibility and availability of ITC products. I was required to conduct a market study to see the coverage by ITC products and bring out the potential and loyal retailers so that the company could maintain the market leadership in the existing business scenario in the FMCG market. During the course of study I visited around 200 retail stores and conducted personal interviews with the retailers to find out major competitors of ITC. I also used observation technique to ascertain penetration of the ITC products and the market potential for the new products. Also interviews were conducted to determine major competitors in FMCG.
  7. 7. 7 OBJECTIVES OF THE STUDY The objective of the summer training is to ensure that I as a management student develop in real life experience for handling the specific project and also to develop all understanding of the various management activities related to the area of my specialization. This training gives us a substantial corporate exposure and also serves as a useful tool of interaction with the corporate sector. The project has been derived from the field of Marketing and is entitled as “Retail coverage of ITC’s products”. The main objective of the study is: To know the retail coverage of ITC products. Identify the major competitor of ITC FMCG products in the market. To check the competitor’s market strategies. Estimate market potential for ITC FMCG products.
  8. 8. 8 RESEARCH METHODOLOGY: It includes the response of ITC products from retailers at retail outlets with respect to its competitors. Work at retail outlets: 1) To check the availability of products. 2) To check visibility of products. 3) Identifying what would the factor to increase sale. Data collection technique: - 1) Interview with retailers. 2) Questionnaire. 3) Observation. Research instrument: - Direct contacts with retailers. Sampling Plan: - Sample size 200 retailers Sampling Method Simple Random Sampling Area Shimla
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  10. 10. 10 Company Profile ITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander Deveshwar. The company has its registered office in Kolkata. It employs over 20,000 people at more than 60 locations across India. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's foremost private sector companies with a market capitalization of over US $ 22 billion and a turnover of US $ 6 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable 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 among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC is one of India's most valuable and respected corporations.
  11. 11. 11 Vision statement 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 The mission statement To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value Positioning statement "Enduring Value. For the nation. For the Shareholder."
  12. 12. 12 ITC’s corporate strategies are • Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. • Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. • Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. • Ensure that each of its businesses is world class and internationally competitive. • Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities’ residing in ITC’s various businesses. • Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. • Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.
  13. 13. 13 HISTORY OF ITC ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. The Company's ownership progressively indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcome group Hotel Chola'. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 70 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).
  14. 14. 14 In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Sagaar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.
  15. 15. 15 In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging opportunities in this area. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint- o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.
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  18. 18. 18 ITC -FMCG Cigarettes ITC is the market leader in cigarettes in India. It’s highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake. ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment. ITC's has presence in overseas markets as well. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands.
  19. 19. 19 Foods ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The Foods business strives to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. ITC's state-of-the-art Product Development facility is located at Bangalore. The Foods business is represented in 4 categories in the market. These are: 1. Ready To Eat Foods 2. Staples 3. Confectionery 4. Snack Foods
  20. 20. 20 Lifestyle retailing ITC’s ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di Wills – an exclusive range of fine fragrances. With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today.
  21. 21. 21 Education & Stationary ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks. ITC's Education and Stationery Products are marketed under the brands "Classmate" and "Paperkraft". The Classmate range of products is targeted at satisfying education & stationery needs of students & young adults. The product range includes Notebooks, Math Instruments, Scholastic Products as well as Writing Instruments. The Paperkraft range of products aims at satisfying the stationery needs & office consumables need of office executives & working professional. The continuously expanding product range under Paperkraft includes Premium Business Paper, Paper Stationery, Markers & Highlighters.
  22. 22. 22 Safety Matches ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro. With differentiated product features and innovative value additions, these brands effectively address the needs of different consumer segments. The Aim brand is the largest selling brand of Safety Matches in India. Aggarbattis ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide consumer acceptance..
  23. 23. 23 Personal care ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.
  24. 24. 24 WelcomGroup of Hotels ITC-Welcome group: fastest growing Hospitality chain in India Over 90 properties across 70 locations 5 Brands –ITC Hotels, Welcome Hotel, My Fortune, Fortune & Welcome Heritage 15 5-Star Deluxe/ 5-Star Properties with over 3800 rooms 40 Fortune Hotels with over 3000 rooms 40 Welcome Heritage Properties with nearly 1000 rooms Exclusive tie up with Starwood’s Luxury Collection for 10 Hotels. First hotel chain in the world to have all its premium luxury hotels certified at the highest LEED (Leadership in Energy and Environmental Design) Platinum Rating
  25. 25. 25 MARKETING STRATEGY USED BY ITC ITC started an earnest exercise by creating a new brand image and corporate philosophy by investing in new business categories like personal care, premium apparel, rural business (e- Choupal) and foods. All along using its famed distribution strengths built through its successful past businesses like cigarettes, paperboards and packaging, hotels and agri business, to create synergies across its verticals and help prop up its new businesses, like personal care and foods. ITC has a well thought-out strategic approach. Rather than acquiring weaker brands to get into these new segments inorganically, it created a range of new personal care and branded apparel brands. The first step in this well-planned strategy was the launch of Wills Lifestyle, the premium branded apparel business in 2002. ITC then moved on to take the competition head on in the FMCG domain, through ITC Foods in August 2001, and personal care business, which is the focal point of this story, in 2005. It has created good impact with its well etched-out Personal Care Brands. Under this category, brands like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia were designed to take care of various sets of consumer segments. But behind this launch was five years of intensive on ground research of market conditions and consumer expectations. Over one lakh consumers were surveyed across the country to test various prototypes. Acceptance benchmark was kept as high as 90 percent for the final products. ITC called this exercise as '3E’ approach —explore, establish and execute. As an adage goes 'if you have to win a race, you have to clearly target the No 1', ITC too aimed the No 1 which happened to be the formidable HUL (which still reigns over 50 percent of the FMCG market). And ITC's target was HUL and P&G only. ITC roped in its tobacco business veteran Sandeep Kaul to spearhead the personal care launch; it also sought help from product formulation and branding experts in Europe and America to formulate the fragrance, aesthetics and packaging.
  26. 26. 26 Many of the brands have also been developed at its R&D centre. The results are there for everyone to see. In less than four years, ITC has been able to create brand awareness and consumer acceptance for its five product lines Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia—each targeted at the needs, aspirations and usage behaviour of different consumer segments. Kaul informs that the strategy for designing personal care is that everyone is a potential consumer. Distribution system at ITC The process of passing down each passing the product down the chain to the next organization through Chain of intermediaries, before it finally reaches the consumer or end-user is known as the 'distribution chain' or the 'channel.' A number of alternate 'channels' of distribution may be available: Distributor, who sells to retailers, Dealer Or wholesaler, who sells to end customers Advertisement typically used for consumption goods ITC follows: CHANNEL WISE DISTRIBUTION Here the total product is divided into different channels like, Health care product, Personal care products, Home products & etc. BEAT WISE DISTRIBUTION Here total market is divided into different areas where the products are served to all the outlets exist in that area.
  27. 27. 27 SWOT of ITC Strengths Cigarette market is 22,000 crore and ITC has lion’s share in it. Strong brand recognition and product portfolio. Distribution network. Weaknesses Dependence on tobacco revenues Negative Connection of Tobacco Unrelated diversification. Opportunities Consumption Of personal care products Rural Market E-Choupal Threats Competition both Domestic & International Increasing Tax on cigarettes Regulatory restrictions on cigarettes Ban on smoking
  28. 28. 28 Competitive Analysis Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company, touching the lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages. HUL is also one of the country's largest exporters; it has been recognized as a Golden Super Star Trading House by the Government of India. HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to ―Hindustan Unilever Limited‖. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. It has over 35 brands. It’s a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India.
  29. 29. 29 SWOT Analysis of HUL Strengths: • Strong brand portfolio, price quantity & variety. • Innovative Aspects. • Presence of Established distribution networks in both urban and rural areas. • Solid Base of the company. • Corporate Social Responsibility(CSR) Weaknesses: • "Me-too" products which illegally mimic the labels and brands of the established brands. • Strong Competitors & availability of substitute products. • Low exports levels. • High price of some products. • High Advertising Costs. Opportunities: • Large domestic market – over a billion populations. • Untapped rural market. • Changing Lifestyles & Rising income levels, i.e. increasing per capita income of consumers. • Export potential and tax & duty benefits for setting exports units. Threats: • Tax and regulatory structure. • Mimic of brands • Removal of import restrictions resulting in replacing of domestic brands. • Temporary Slowdown in Economy can have an impact on FMCG Industry.
  30. 30. 30 Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment. Procter & Gamble entered Indian markets in 1951 with Vicks Product Inc. USA, branch of P & G. Procter & Gamble India since then has launched Whisper - the breakthrough technology sanitary napkin, Ariel detergent, Ariel super soaker, Pantene Pro-V shampoo, Head & Shoulders shampoo, Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter & Gamble Home Products Limited launched Pampers - world's number one selling diaper brand. Today, Proctor & Gamble is the second largest FMCG Company in India after Hindustan Lever Limited.
  31. 31. 31 SWOT Analysis of P&G Strengths: • Leading Market Position • Diversified and innovative product Portfolio • Strong Finances in past years Weakness: • Quality control Problem • Decreased Revenues in their Northeast Asian Market Opportunities: • Developing Markets • Demographic trends across the world Threats: • Competitors • Rising cost of energy prices • New Regulations
  32. 32. 32 INDUSTRY ANALYSIS Porter’s five force model Interpretation: [FMCG SECTOR] 1. Threat of new entrants: Economies of Scale Not Easy to Achieve Positive Product Differentiation Requires huge R&D Positive Capital Requirements High Positive Access to Distribution Channels Not Easy Positive Cost Disadvantages More Positive Government Policy More Positive Switching Costs Low Negative Porter’s Five Forces Degree Remark Threat of new entrants Low Favorable Threat of substitute products High Unfavorable Bargaining power of customers High Unfavorable Bargaining power of suppliers High Unfavorable Competitive rivalry within an industry High Unfavorable
  33. 33. 33 2. Threat of substitute products: Products with improving price/performance tradeoffs relative to present industry products. 3. Bargaining power of customers: Low switching cost. Buyers are numerous and fragmented. Considering buyer power retailers, they are able to negotiate the price with the company. 4. Bargaining power of suppliers: Supplier industry is dominated by a few firms. Suppliers’ products have few substitutes. Buyer is not an important customer to supplier. Suppliers’ product is an important input to buyers’ product. Suppliers’ products are differentiated. Suppliers’ products have high switching costs. Supplier poses credible threat of forward integration. 5. Competitive rivalry within an industry: Using price competition. Staging advertising battles. Making new product introductions. Increasing consumer warranties or service.
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  35. 35. 35 Source: Data collected through Questionnaire. Figures in parentheses indicate percentage. Table no. 10.1. Frequency of DS Weekly 144 (72%) Fortnightly 44 (22%) Twice a week 0 (0%) Monthly 12 (6%) 144 44 0 12 0 50 100 150 200 Weekly Fortnightly Twice a week Monthly The graph shows that 72% of the DS goes weekly to the retail outlets for taking orders while 6% of the DS go only once in a month.
  36. 36. 36 Table no. 10.2. Frequency of the competitor’s DS Weekly 166 (83%) Monthly 20 (10%) Twice a week 0 (0%) Monthly 14 (7%) 166 20 0 14 0 50 100 150 200 Weekly Fortnightly Twice a week Monthly The data above in table and graph shows that the83% of DS of competitor’s are going weekly on the retail outlets while 7% of the DS go only once in a month.
  37. 37. 37 Table no. 10.3. Are the orders delivered to you on time? Strongly Agree 28 (14%) Disagree 72 (36%) Agree 94 (47%) Strongly Agree 6 (3%) 28 94 6 72 Strongly Agree Disagree Agree Strongly Disagree The above pie-chart shows that 14% of the retailers are strongly agree that there product is delivered to them on time and 47% are of them agree but 36% of the retailers told that their orders is not delivered to them on time.
  38. 38. 38 Table no. 10.4. Are the orders of competitor’s delivered to you on time? Strongly Agree 58 (29%) Disagree 22 (11%) Agree 106 (53%) Strongly Agree 14 (7%) 58 22106 14 Strongly Agree Disagree Agree Strongly Disagree The above pie-chart shows that 29% of the retailers are strongly agree that there product is delivered to them on time and 53% are of them agree and only 7% of the retailers are not happy because the product is not delivered to them on time.
  39. 39. 39 Table no. 10.5 Quality of competitor’s service Excellent 16 (8%) Bad 14 (7%) Good 146 (73%) Average 24 (12%) The data shows that 73% of the retailers said that the quality of the competitor’s service is good while only 14% of retailers are not happy with competitor’s service. 16 14 146 24 0 40 80 120 160 200 Excellent Bad Good Average
  40. 40. 40 Table no. 10.6 Best company in terms of services HUL 64 (32%) Frito-Lay 60 (30%) Godfrey Phillips India 18 (9%) Britannia 16 (8%) Nestle 42 (24%) The above chart clearly shows that HUL & Frito-Lay are the market leader in terms services and Nestle is also providing good services to their retailers. 32% 30% 9% 8% 24% HUL Fritolay Godfrey Phillips India Britannia Nestle
  41. 41. 41 Table no. 10.7 Are your orders fulfilled properly? Strongly Agree 30 (15%) Disagree 48 (24%) Agree 110 (55%) Strongly Disagree 12 (6%) The table shows that the 70% (55% agreed & 15% strongly agreed) that the orders they give are properly fulfilled while 30% (24% disagree & 6% strongly disagree) that they orders they give are not properly fulfilled. 0 40 80 120 160 200 Strongly Agree Disagree Agree Strongly Disagree 30 48 110 12
  42. 42. 42 Table no. 10.8 ITC distribution channel Excellent 34 (17%) Bad 44 (24%) Good 74 (37%) Average 48 (24%) The chart above shows that the 36% retailers says that ITC’s distribution channel is good while 17% marked it as excellent and 19% said that its average, but only 22% retailers perception about ITC’s distribution channel is bad. 34 44 74 38 Excellent Bad Good Average 0 40 80 120 160 200
  43. 43. 43 Table no. 10.9 Are your complaints solved properly? Strongly Agree 24 (12%) Disagree 10 (5%) Agree 158 (79%) Strongly Disagree 8 (4%) The data above shows that above 90% of the respondents agree that their complaints are properly solved, whenever they face any problem 24 10 158 8 Sales
  44. 44. 44 Table 10.10 Growth rate of ITC Excellent 20 (10%) Bad 12 (6%) Good 88 (44%) Average 80 (40%) The graph shows that 44% respondents said that the growth rate of ITC is good and 40% said that its average and only 6% of the respondents think that the growth rate of ITC is bad. 0 10 20 30 40 50 60 70 80 90 Excellent Bad Good Average 20 12 88 80
  45. 45. 45 Table 10.11 Services of ITC Excellent 34 (17%) Bad 44 (24%) Good 74 (37%) Average 48 (24%) The chart shows that only 31% of respondents marked services of ITC as bad while rest of them marked ITC services as Excellent, Good & Average. 36 62 60 52 Sales Excellent Bad Good Average
  46. 46. 46 Table no. 10.12 Rating of ITC 1 8 2 64 3 34 4 76 5 18 From the data collected through questionnaire it is founded that the respondents has give overall of 3.34 points to ITC from 5 and which is above average and can also b called as good. 0 20 40 60 80 1 2 3 4 5 14 22 76 52 35
  47. 47. 47 Findings & Recommendations Analyzing and identifying major competitors. Keeping a tab on their strengths and weakness and accordingly preparing own strategy. Increasing awareness for ITC products among the consumers and retailers. Efficient marketing of products to retailers. Increasing the efficiency of distribution system. Ensuring every shop in the area must have ITC’s product. Appointing knowledgeable salesmen who can market products to retailers effectively. Tie up with regional/local newspapers running competitions at the time of festive season. 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: (a)Width of Distribution: total number of outlets covered should be increase in order to bridge the distribution gap. For that ITC should (b) Increase the number of DS. (c) 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 increase the total margin given to retailers.
  48. 48. 48 Limitations and Conclusion Limitations: The time period for the study was not enough for such a vast topic. It was difficult for the salesmen to pinpoint the sales of a particular brand in retail stores. As the nature of research was exploratory so it was difficult to cover each and every retailer. Many retailers don’t express their original perception and views because of biasness. Certain questions were not answered with justice. Conclusion: From the above comparison it could be inferred that besides ITC is new in the FMCG sector but still it has managed to reach a level at which the other strong companies are. A score of 3.34 is a very good score at a point when the old competitors (leaders) are at a score of 3.8. 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'. There is a need to put the image of our product Bingo in the mind of customers before they come to purchase at shop. There is need of more focus on the sales of Personal care products.
  49. 49. 49 Retail coverage Area-Shimla Questionnaire Q 1) Name of the retailer __________________________________________. Q 2) Type of retailer ______________________________________________. Q 3) Name of the DS covering the beat _______________________________. Q 4) How many times does the DS comes? a) Weekly c) Twice a week b) Fortnightly d) Monthly Q 5) How many times does the competitor’s DS comes? a) Weekly c) Twice a week c) Fortnightly d) Monthly Q 6) Are the orders delivered to you on time? a) Strongly agree c) Agree c) Disagree d) Strongly disagree Q 7) Are the orders of competitors delivered to you on time? a) Strongly agree c) Agree c) Disagree d) Strongly disagree Q 8) How do you rate the services of competitors? a) Excellent c) Good b) Bad d) Average Q 9) Which company is good in terms of services? a) HUL d)Britannia b) Frito-Lay e) Nestle c) Godfrey Philips India
  50. 50. 50 Q 10) Are your orders fulfilled properly? a) Strongly agree c) Agree b) Disagree d) Strongly disagree Q 11) What is your perception about ITC’s distribution channel? a) Excellent c) Good b) Bad d) Average Q 12) Are your complaints solved properly? a) Strongly agree c) Agree b) Disagree d) Strongly disagree Q 13) What do you think about the growth rate of ITC? a) Excellent c) Good b) Bad d) Average Q 14) How do you rate our services? a) Excellent c) Good b) Bad d) Average Q 15) Rate ITC from 1 to 5. a) 1 d) 2 b) 3 e) 4 c) 5
  51. 51. 51 Bibliography Research Methodology - Naresh Kumar Malhotra Retail Management - Ogden Competitive Analysis Of Itc Free Essays 1 – 20 ITC Competitors - Compare ITC Ltd with Competitors Indian tobacco company Hindustan Unilever Limited (HUL) Proctor and Gamble (P&G)