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A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 1
Dr. D. Veerendra Heggade
Institute of Management Studies and Research
Vidyagiri, Dharwad – 580 004
Approved by AICTE, New Delhi & Affiliated to Karnatak University,
Dharwad
Report on Summer In-plant Training
A STUDY ON COMPARATIVE ANALYSIS OF
AASHIRVAAD GHEE AND ITS COMPITETORS
At
M/s HUBLI CIGERATTE CENTRE, HUBLI
By
Mr. Prashanth Hanagal
Reg. Number: 17MBA472
MBA II Semester
Submitted in partial fulfillment of the requirements for the degree
of
Master of Business Administration.
INTERNAL GUIDE EXTERNAL GUIDE
Prof. Sunil Hiremat Mr. Umesh.B
Asst. Professor Sales Executive
AUGUST 2018
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 2
DECLARATION
I hereby declare that this Report on Summer In-plant Training titled ‘A STUDY
ON comparative analysis of ITC’s Aashirvaad Ghee and Its competitors
conducted at HUBLI CIGERATTE CENTRE, Hubli submitted by me to
Karnatak University, Dharwad, is a record of an original and independent study
undertaken during June 2018 to August 2018 under the guidance and supervision
of Mr. Umesh.B Area Executive at HUBLI CIGERATTE CENTRE, Hubli &
Prof.Sunil Hiremat, Assistant Professor at Dr. D Veerendra Heggade Institute of
Management Studies and Research, Vidyagiri, Dharwad.
I further declare that this project has not formed the basis for award of any other
degree/ diploma of other University/ Institution.
Date: Prashanth Hanagal
Place: Dharwad Signature and Name of the Student
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 3
ACKNOWLEDGEMENT
At the outset, I would like to take this opportunity to acknowledge the support
and cooperation of all those who enabled successful completion of this
Summer In-plant Training. I have immense pleasure in expressing my deepest
gratitude to our Prof. Sunil Hiremat for his guidance, which goes a long way
to set my future career. I would like to extend my sincere gratitude to Mr.
Umesh. B, Area Executive and Chetan Sales Executive of Hubli cigarette
centre pvt ltd. and their team under whose guidance I undertook this project
and completed successfully. I extend my thanks to Prof.shrivatsav joshi,
Assistant Professor, Dr. Anil Yaragatti, Dean Academic and other faculty
members of our Institute for extending valuable advice and support during the
project period.
Last but not the least there were so many who shared valuable information that
helped in successful completion of this project all of whom I also wish to
thank.
Prashanth.H
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 4
CONTENTS
CHAPTER TITLE
PAGE
NO
A LIST OF TABLES
I
B LIST OF GRAPHS
II
C LIST OF FIGURES
III
D LIST OF CHARTS
IV
E EXECUTIVE SUMMURY
V
1 INTRODUCTION
1
2
ORGANIZATION STUDY
a) COMPANY PROFILE
b) ORGANIZATION PROFILE
c) THEORETICAL BACKGROUND
4-32
3 RESEARCH DESIGN
33-39
4 DATA ANALYSIS AND INTERPRETATION
40-67
5 FINDINGS AND SUGGESTIONS
68-70
6 CONCLUSION
71
7
ANNEXURE
 BIBLIOGRAPHY
 QUESTIONNAIRE
72-79
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 5
A.LIST OF TABLES
SL.NO PARTICULARS
PAGE
NO.
1 The Table Representing the types of Outlets 40
2 Table representing the total turnover of outlet
per month
41
3 Table representing the total turnover of ghee in
outlets
42
4 Table representing the ghee brands in
Respective outlets
43
5 Table representing the Customers are aware of
ITC Aashirvaad svasti ghee
44
6 Table representing the reasons of not aware of
ITC ghee
45
7 Table representing the maintain the stock of
ITC Aashirvaad svasti ghee
46
8 Table representing the Reasons for not stocking
of ITC ghee in outlet
47
9 Table representing the customer intuition on
ITC Aashirvaad swasti ghee
48
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 6
10 Table representing the Association with ITC
company
49
11 Table representing the more profit margin ghee
companies
50
12 Table representing the perception of ITC ghee
Regarding price compare to other ghee brands
51
13 Table representing the Perception of ITC ghee
brand Regarding quality
52
14 Table representing the Perception of ITC ghee
brand Regarding Availability
53
15 Table representing the Ranking of ghee brands 54
16 Table representing the Problems face while
selling the ITC Aashirvaad svasti Ghee
55
17 Table representing the Support receiving from
company to promote ITC ghee
56
18 Table representing the Support Not receiving
from company to promote ITC ghee
57
19 Table representing the Receive stock while
ordering on time and per schedule
58
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 7
20 Table representing the Reasons for Not Receive
ITC ghee stock while ordering on time
59
21 Table representing the ITC push activities 60
22 Table representing the priority of Ghee brands
in outlets for more stock
61
23 Table representing the Reasons required to keep
stock of ITC ghee in outlets
62
24 Table representing the place order In month of
Aashirvaad swasti ghee
63
25 Table representing the When retailer order the
Size lot of ITC Aashirvaad ghee
64
26 Table representing the Mode of advertisement
to promote ITC Aashirvaad svasti ghee
65
27 Table representing the vindication of the
success of ITC’s distribution channels
66
28 Table representing the Level of Satisfaction
towards usage of Aashirvaad svasti Ghee
67
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DVHIMSR DHARWAD Page 8
B.LIST OF GRAPHS
SL.NO PARTICULARS
PAGE
NO.
1 Graph Representing the types of Outlets 40
2 Graph Representing the total turnover of
outlet per month
41
3 Graph Representing the total turnover of ghee
in outlets
42
4 Graph Representing the ghee brands in
Respective outlets
43
5 Graph Representing the Customers are
aware of ITC Aashirvaad svasti ghee
44
6 Graph Representing the reasons of not
aware of ITC ghee
45
7 Graph Representing the maintain the stock
of ITC Aashirvaad svasti ghee
46
8 Graph Representing the Reasons for not
stocking of ITC ghee in outlet
47
9 Graph Representing the customer intuition
on ITC Aashirvaad swasti ghee
48
10 Graph Representing the Association with ITC
company
49
11 Graph Representing the more profit margin
ghee companies
50
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 9
12 Graph Representing the perception of ITC
ghee Regarding price compare to other ghee
brands
51
13 Graph Representing the Perception of ITC
ghee brand Regarding quality
52
14 Graph Representing the Perception of ITC
ghee brand Regarding Availability
53
15 Graph Representing the Ranking of ghee
brands
54
16 Graph Representing the Problems face while
selling the ITC Aashirvaad svasti Ghee
55
17 Graph Representing the Support receiving
from company to promote ITC ghee
56
18 Graph Representing the Support Not
receiving from company to promote ITC ghee
57
19 Graph Representing the Receive stock while
ordering on time and per schedule
58
20 Graph Representing the Reasons for Not
Receive ITC ghee stock while ordering on time
59
21 Graph Representing the ITC push activities 60
22 Graph Representing the priority of Ghee
brands in outlets for more stock
61
23 Graph Representing the Reasons required to
keep stock of ITC ghee in outlets
62
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 10
24 Graph Representing the place order In
month of Aashirvaad swasti ghee
63
25 Graph Representing the When retailer order
the Size lot of ITC Aashirvaad ghee
64
26 Graph Representing the Mode of
advertisement to promote ITC Aashirvaad
svasti ghee
65
27 Graph Representing the vindication of the
success of ITC’s distribution channels
66
28 Graph Representing the Level of Satisfaction
towards usage of Aashirvaad svasti Ghee
67
C. LIST OF FIGURES
FIG.NO PARTICULARS
PAGE
NO.
1 The key brands of ITC across segments 12
2 ITC Food Products 13
3 ITC’s Ghee Product profile 28
D.LIST OF CHARTS
CHART
.NO
PARTICULARS
PAGE.
NO
1 HUBLI CIGARETTE AGENCY -
ADMINISTRATION CHART
29
2 CHANNEL FUNCTIONS 34
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
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Executive summary
The company is develops a distribution strategy for FMCG products
considering the latest technological advancements as well as the shift in
demand-side preferences and applies the result on an existing product
aiming for a significant increase in customers. After providing the basic
knowledge concerning marketing and distribution, an in-depth analysis
of the possible distribution channels, including distribution through a
branch network, agents, the Internet, mobile Internet and independent
asset managers, as well as the multi-channel distribution strategy is
made. This analysis is conducted through gathering and comparing the
current empirical and theoretical research, in order to gain an insight
into the various options and trends in today‘s markets from the demand,
as well as from the supply side of view. The demographic differences in
the adoption of innovative channels, the level of consulting provided,
the perceived safety and the trust are found to be the critical properties
of a distribution channel.
The results from the analysis conducted are applied on the financial
product in the second part of the thesis. The target the state distribution
strategy is derived after a thorough examination of the product as well as
the targeted customer segment. The stated distribution strategy aims to
strengthen and extend existing channels by reducing prices and
increasing incentives to sell or sales personnel as well as creating and
implementing a new online distribution channel, in order to obtain a
multi-channel distribution. The resulting strategy allows the food
products to be advertised to a broader public. The provided good service
will allow the strategy to be implemented effectively. The strategy
ensures an effective push of the FMCG products sales and the flexibility
of the management in order to reduce reaction time on new market
trends.
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FMCG INDUSTRIES IN INDIA
Introduction
Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the
Indian economy with Household and Personal Care accounting for 50 per cent
of FMCG sales in India. Growing awareness, easier access and changing
lifestyles have been the key growth drivers for the sector. The urban segment
(accounts for a revenue share of around 40 per cent) is the largest contributor
to the overall revenue generated by the FMCG sector in India and recorded a
market size of around US$ 52.75 billion in 2017-18. However, in the last few
years, the FMCG market has grown at a faster pace in rural India compared
with urban India. Semi-urban and rural segments are growing at a rapid pace
and FMCG products account for 50 per cent of total rural spending.
Market Size
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from
US$ 840 billion in 2017, with modern trade expected to grow at 20 per cent -
25 per cent per annum, which is likely to boost revenues of FMCG companies.
In 2016-17, revenue for FMCG sector have reached US$ 49 billion and is
expected to grow at 9-9.5 per cent in FY18 supported by expectations of the
total consumption expenditure reaching nearly US$ 3,600 billion by 2020
from US$ 1,595 billion in 2016. Direct selling sector in India is expected to
reach Rs 159.3 billion (US$ 2.5 billion) by 2021, if provided with a conducive
environment through reforms and regulation.
CURRENT GROWTH RATE OF FMCG:
The consumer durables market is expected to reach US$ 12.5 billion in 2015
and US$ 20.6 billion by 2020. Urban markets account for the major share (65
per cent) of total revenues in the consumer durables sector in India. There is a
lot of scope for growth from rural markets with consumption expected to grow
in these areas as penetration of brands increases. Also, demand for durables
like refrigerators as well as consumer electronic goods are likely to witness
growing demand in the coming years in the rural markets as the government
plans to invest significantly in rural electrification. The FMCG sector has
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 13
grown at an annual average of about 11 per cent over the last decade. The
overall FMCG market is expected to increase at (CAGR) of 14.7 per cent to
touch US$ 110.4 billion during 2012-2020, with the rural FMCG market
anticipated to increase at a CAGR of 17.7 per cent to reach US$ 100 billion
during 2012-2025.Food products is the leading segment, accounting for 43 per
cent of the overall market. Personal care (22 %) and fabric care (12%) come
next in terms of market share.
Growing awareness, easier access, and changing lifestyles have been the key
growth drivers for the consumer market. The Government of India's policies
and regulatory frameworks such as relaxation of license rules and approval of
51 per cent foreign direct investment (FDI) in multi-brand and 100 per cent in
single-brand retail are some of the major growth drivers for the consumer
market.
Urban segment the biggest contributor to the sectors revenue
The urban segment is the biggest contributor to the sector, accounting for two-
thirds of total FMCG sector revenue. The semi-urban and rural segments
which are growing at a brisk pace, currently account for 33.5% of revenues of
the FMCG sector. FMCG products account for 53% of total rural spending.
Lower priced packs have increased the penetration of the FMCG sector in
rural India. The sectors that are witnessing high growth include salty snacks,
refined edible oil, healthcare products, iodized salt etc. Hair oils, toothpastes
and shampoos have quite high penetration in both urban and rural markets
while the sales of instant noodles, floor cleaners and hair dyes is increasing in
rural markets due to higher awareness. There are a total of 12-13 million retail
outlets in India, with kirana stores being the majority of them. Some of the
major FMCG players in India include ITC, HUL, Nestle, Dabur, Godrej,
Consumer, etc.
Government initiatives:
Some of the major initiatives taken by the government to
promote the FMCG sector in India are as follows:
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In the Union Budget 2017-18, the Government of India has proposed to spend
more on the rural side with an aim to double the farmer’s income in five years;
as well as the cut in income tax rate targeting mainly the small tax payers,
focus on affordable housing and infrastructure development will provide
multiple growth drivers for the consumer market industry.
The Government of India’s decision to allow 100 per cent Foreign Direct
Investment (FDI) in online retail of goods and services through the automatic
route has provided clarity on the existing businesses of e-commerce
companies operating in India.
With the demand for skilled labour growing among Indian industries, the
government plans to train 500 million people by 2022 and is also encouraging
private players and entrepreneurs to invest in the venture. Many governments,
corporate and educational organizations are working towards providing
training and education to create a skilled workforce.
The Government of India has drafted a new Consumer Protection Bill with
special emphasis on setting up an extensive mechanism to ensure simple,
speedy, accessible, affordable and timely delivery of justice to consumers.
The Goods and Services Tax (GST) is beneficial for the FMCG industry as
many of the FMCG products such as Soap, Toothpaste and Hair oil now come
under 18 per cent tax bracket against the previous 23-24 per cent rate.
TOP 10 FMCG COMPANIES
1. ITC (Indian Tobacco Company)
2. Hindustan Unilever Ltd.
3. Nestle India
4. GCMMF(AMUL)
5. Dabur India
6. Asian Paints(India)
7. Cadbury India
8. Britannia Industries
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9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
COMPANY PROFILE
INTRODUCTION TO THE COMPANY:
ITC Limited or ITC is an Indian company based in Kolkata, West Bengal. Its
diversified business includes five segments: Fast-Moving Consumer Goods
(FMCG), Hotels, Paperboards & Packaging, Agri Business & Information
Technology. Though, cigarette business contributes more than 80% of the
profits of the company, 80% of the capital is invested in the non-tobacco
businesses.
Established in 1910 as the Imperial Tobacco Company of India Limited, the
company was renamed as the India Tobacco Company Limited in 1970 and
later to I.T.C. Limited in 1974. The periods in the name were removed in
September 2001 for the company to be renamed as ITC Limited. The company
completed 100 years in 2010 and as of 2012-13, had an annual turnover of
US$8.31 billion and a market capitalization of US$ 50 billion. It employs over
30,000 people at more than 60 locations across India and is part of Forbes
2000 list.
ITC is one of India's foremost multi-business enterprise with a market
capitalization of US $ 50 billion and Gross Sales Value of US $ 10 billion.
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
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ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the
World's Most Reputable Companies by Forbes magazine and as 'India's Most
Admired Company' in a survey conducted by Fortune India magazine and Hay
Group. ITC also features as one of world's largest sustainable value creator in
the consumer goods industry in a study by the Boston Consulting Group. ITC
has been listed among India's Most Valuable Companies by Business Today
magazine. The Company is among India's '10 Most Valuable (Company)
Brands', according to 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 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. As one of India's most valuable and respected
corporations, ITC is widely perceived to be dedicatedly nation-oriented.
ITC's Agri-Business is one of India's largest exporters of agricultural products.
ITC is one of the country's biggest foreign exchange earners ($ 3.2 billion in
the last decade). The Company's 'e-Choupal' initiative is enabling Indian
agriculture significantly enhance its competitiveness by empowering Indian
farmers through the power of the Internet. This transformational strategy,
which has already become the subject matter of a case study at Harvard
Business School is expected to progressively create for ITC a huge rural
distribution infrastructure, significantly enhancing the Company's marketing
reach.
ITC's wholly owned Information Technology subsidiary, ITC InfoTech India
Ltd, provides IT services and solutions to leading global customers. ITC
InfoTech has carved a niche for itself by addressing customer challenges
through innovative IT solutions.
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
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Its beginnings were humble. 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
Rs310,000. This decision of the Company was historic in more ways than one.
It was to mark the beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House', which came up on that
plot of land two years later, would go on to become one of Kolkata's most
venerated landmarks. The Company's ownership progressively indianised, and
the name of the Company was changed to ITC 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. The Company now stands
rechristened 'ITC Limited'.
Though the first six decades of the Company's existence were primarily
devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco
businesses, the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life of the
Company.
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'. The objective of ITC's entry into the hotels
business was rooted in the concept of creating value for the nation. ITC chose
the hotels business for its potential to earn high levels of foreign exchange,
create tourism infrastructure and generate large scale direct and indirect
employment. Since then ITC's Hotels business has grown to occupy a position
of leadership, with over 100 owned and managed properties spread across
India.
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In 1979, ITC entered the Paperboards business by promoting ITC
Bhadrachalam Paperboards Limited, which today has become the market
leader in India. Bhadrachalam Paperboards amalgamated with the Company
effective March 13, 2002 and became a Division of the Company,
Bhadrachalam Paperboards Division. In November 2002, this division merged
with the Company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology, productivity,
quality and manufacturing processes are comparable to the best in the world. It
has also made an immense contribution to the development of Sarapaka, an
economically backward area in the state of Andhra Pradesh. It is directly
involved in education, environmental protection and community development.
In 2004, ITC acquired the paperboard manufacturing facility of BILT
Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The
Kovai Unit allows ITC to improve customer service with reduced lead time
and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British
joint venture. Since inception, its shares have been held by ITC, British
American Tobacco and shareholders in Nepal. In August 2002, Surya Tobacco
became a subsidiary of ITC Limited and its name was changed to Surya Nepal
Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper
manufacturing company and a major supplier of tissue paper to the cigarette
industry. The merged entity was named the Tribeni Tissues Division (TTD).
To harness strategic and operational synergies, TTD was merged with the
Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
Also in 1990, leveragingitsagri-sourcing competency, ITC set up the Agri-
Business Division for export of agri-commodities. The Division is today one
ofIndia's largest exporters. ITC's unique and now widely acknowledged e-
Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now
it extends to 10 states covering over 4 million farmers. ITC's first rural mall,
christened 'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On the
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
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rural retail front, 24 'ChoupalSaagar' are now operational in the 3 states of
Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC forayed into the Greeting, Gifting and Stationery products
business with the launch of Expressions range of greeting cards. A line of
premium range of notebooks under brand “Paper craft” was launched in 2002.
To augment its offering and to reach a wider student population, the popular
range of notebooks was launched under brand “Classmate” in 2003.
“Classmate” over the years has grown to become India’s largest notebook
brand and has also increased its portfolio to occupy a greater share of the
school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books,
Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC
repositioned the business as the Education and Stationery Products Business
and launched India's first environment friendly premium business paper under
the “Paper craft” Brand. “Paper craft” offers a diverse portfolio in the
premium executive stationery and office consumables segment. Paper craft
entered new categories in the office consumable segment with the launch of
Text liners, Permanent Ink Markers and White Board Markers in 2009.
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 Club life evening wear (2003). ITC also
initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's
most premier fashion event - Wills Lifestyle India Fashion Week - that has
gained recognition from buyers and retailers as the single largest B-2-B
platform for the Fashion Design industry. To mark the occasion, ITC launched
a special 'Celebration Series', taking the event forward to consumers. In 2007,
the Company introduced 'Miss Players'- a fashion brand in the popular
segment for the young woman.
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. Today ITC InfoTech is one of India’s
fastest growing global IT and IT-enabled services companies and has
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established itself as a key player in offshore outsourcing, providing outsourced
IT solutions and services to leading global customers across key focus
verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance),
CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and
Transportation) and Media & Entertainment.
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 just
seven years, the Foods business has grown to a significant size with over 200
differentiated products under six distinctive brands, with an enviable
distribution reach, a rapidly growing market share and a solid market standing.
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,
Mangaldeepa, Aim, Aim Mega and Aim Metro.
ITC's foray into the marketing of Agarbattis(incense sticks) in 2003 marked
the manifestation of its partnership with the cottage sector. ITC's popular
Agarbattis brands include 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 (InizioHomme) 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
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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.
Products and brands
Foods:
ITC's major food brands include Kitchens of India; Aashirvaad, B natural,
Sunfeast, Candyman, Bingo! and Yippee!. ITC is India's largest seller of
branded foods with of over Rs. 4,600 crore in 2012-13. It is present across 6
categories in the food business including, snack foods, ready-to-eat meals,
fruit juices, dairy products and confectionary.
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Other businesses
Personal care :
Personal care products include perfumes, haircare and skincare categories.
Major brands are Fiama Di Wills, Vivel, Essenza Di Wills, Superia and
Engage.
Stationary:
Brands include Classmate, PaperKraft and Colour Crew. Launched in 2003,
Classmate went on to become India's largest notebook brand in 2007.
Hotels:
ITC's Hotels division (under brands including WelcomHotel) is India's second
largest hotel chain with over 90 hotels throughout India. ITC is also the
exclusive franchisee in India of two brands owned by Sheraton International
Inc. Brands in the hospitality sector owned and operated by its subsidiaries
include Fortune Park Hotels and WelcomHeritage Hotels.
Cigarettes
ITC Ltd sells 81% of the cigarettes in India, where 275 million people use
tobacco products and the total cigarette market is worth close to $11 billion
(around Rs. 757399.4 million)
ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold
Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic
(Verve, Menthol, Menthol Rush, Regular, Citric Twist, Ice Burst, Mild &
Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike,
Players, Flake and Duke & Royal.
Safety Matches and Agarbattis: Ship, i Kno and Aim brands of safety
matches and the Mangaldeep brand of agarbattis (Incense Sticks).
Paperboard: Products such as specialty paper, graphic and other paper are
sold under the ITC brand by the ITC Paperboards and Specialty Papers
Division like Classmate product of ITC well known for their quality .
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Packaging and Printing: ITC's Packaging and Printing division operates
manufacturing facilities at Haridwar and Chennai and services domestic and
export markets.
Information Technology: ITC operates through its fully owned
subsidiary ITC Infotech India Limited,
Business area of the company includes:
 Cigarettes
 Food
 Lifestyle Retailing
 Personal Care
THE ITC WAY
ITC is a board-managed professional company, committed to creating
enduring value for the shareholder and for the nation. It has a rich
organizational culture rooted in its core values of respect for people and belief
in empowerment. Its philosophy of all-round value creation is backed by
strong corporate governance policies and systems.
ITC’s corporate strategies are:
1) 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.
2) Continue to focus on the chosen portfolio of FMCG, Hotels, Paper,
Paperboards & Packaging, Agriculture Business and Information Technology.
3) Benchmark the health of each business comprehensively across the criteria of
Market Standing, Profitability and Internal Vitality.
4) Ensure that each of its businesses is world class and internationally
competitive.
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5) Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and capabilities residing in ITC are various
businesses.
6) Create distributed leadership within the organization by nurturing talented and
focused top management teams for each of the businesses
Following diagram shows the key brands of ITC across
segments:-
Fig No: 1
ITC FOOD PRODUCTS
ITC's Branded Packaged Foods business is one of the fastest growing foods
businesses in India, driven by the market standing and consumer franchise of
its popular brands - Aashirvaad, Bingo! Sunfeast, Fabelle, Sunbean, Yippee!
Kitchens of India, B Natural, ITC Master Chef, Farmland, mint-o, Candyman
and GumOn. The Foods business is today represented in multiple categories in
the market - Staples, Spices, Biscuits, Confectionery & Gums, Snacks,
Noodles & Pasta, Beverages, Dairy, Ready to Eat Meals, Chocolate, Coffee
and Frozen Foods.
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ITC's uncompromising commitment to the health and safety of its consumers
ensures adherence to the highest levels of quality, safety and hygiene
standards in manufacturing processes and in the supply chain. All ITC-owned
manufacturing units are Hazard Analysis and Critical Control Point (HACCP)
certified. The quality performance of all manufacturing units is monitored
continuously online. Going beyond process control, ITC ensures that quality
standards are scrupulously adhered to while choosing ingredients that go into
the preparation of its food products.
ITC's Foods brands delight millions of households with a wide range of
differentiated, value-added products developed by leveraging ITC's in-house
R&D capabilities, relevant consumer insights, a deep understanding of the
Indian palate gained from its Hotels business, its agri-sourcing & packaging
strengths, exciting, innovative communication and an unmatched distribution
network.
The business continues to invest in every aspect of manufacturing, distribution
and marketing to ensure that it can leverage emerging opportunities and fulfill
its aspiration of being the most trusted provider of Branded Packaged Foods in
the country. ITC's Foods business also exports its products to the key
geographies of North America, Africa, Middle East and Australia.
Fig No: 2
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Products profile
Sunfeast:
In July 2003, ITC made a foray into the biscuits market by launching the
Sunfeast range of biscuits. Since then, Sunfeast biscuits have always stood for
quality and are known for offering innovative and wholesome biscuits.
Sunfeast connotes happiness, contentment, satisfaction and pleasure. Within a
span of 12 years, Sunfeast has well-established presence in almost all
categories of biscuits.
Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at
the premium end. High quality married with exciting innovations has helped
drive this category. Dark Fantasy Choco Fills has wowed the Indian consumer
with its innovative centre-filled format and high-quality packaging.
In addition, ITC has launched Sunfeast Farmlite Digestive All Good biscuit -
India's Only Digestive biscuit with No Maida & No Added Sugar. This biscuit
is made from whole wheat flour of Aashirvaad Atta which makes it naturally
rich in fibre content and brings alive ITC's commitment to provide delightful
experiences to every consumer.
Sunfeast Dark Fantasy Yumfills Cake - A delicious soft pie cake, filled with
luscious crème & enrobed generously by smooth and rich choco layer.
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AASHIRVAAD:
ITC entered the branded Atta market with the launch of Aashirvaad Atta in
May 2002 and within a short span became the number one in branded
packaged atta across the country.
'Aashirvaad' promises the Indian housewife the joy of providing her family
with the most delightful home-made rotis, made from the finest quality atta.
ITC uses the sourcing strength of its e-Choupals to buy wheat directly from
the farmers to deliver happiness to the Indian consumer - Khusiyaan Chun
chun ke (Happiness Handpicked) - Ek Vaada Sacha Sa - Shudhata Aur
Sampoornata ka ! (A True Promise of Purity and Wholesomeness.
'Aashirvaad' is made from finest quality wheat that ITC has the unique
capability to source through its e-Choupal network.
BINGO:
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Bingo! was launched in March 2007 with a wide range of exciting packaged
salted snacks. The range includes multiple flavor variants of Potato Chips &
Finger Snacks.
The brand is associated with youth, fun and excitement. It fulfils the
consumers need for variety and novelty in snacks. At present Bingo! has 4
sub-brands in its portfolio, each of which have unique values based on
consumer need differentiation.
Kitchens in India:
- Ready-to-eat gourmet cuisine Kitchens of India specialises in bringing to
life age-old Indian dishes from across the country crafted by the Master Chefs
of ITC's hotels, especially from the gourmet cuisines of Dum Pukht, Bukhara
and Dakshin. All Kitchens of India products help consumers recreate an
exclusive fine-dining experience in their own homes.
The Kitchens of India delectable treats are crafted with 100% natural
ingredients and free of any preservatives. The age-old cooking techniques
used by our Master Chefs add a unique taste that captures the essence of a
meal that is nothing short of a royal Indian treat. Kitchens of India meals are
packaged in 'keep fresh' packs, so that you can enjoy in an instant, what has
taken centuries to perfect. Kitchens of India has a strong presence in both the
Indian and overseas markets. So, no matter which part of the globe you are in,
you can always savor the taste of authentic Indian gourmet cuisine.
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Our range spans gastronomic delights of India in its entirety, from the far-
flung regions of the northwest frontier to the coastal regions of the south.
From exotic vegetarian and non-vegetarian dishes, to authentic Biryanis and
delicious halwas, Kitchens of India assures a complete dining experience.
Yippee Noodles and Pastas:
ITC entered the instant noodles segment with the launch of Sunfeast Yippee!
in 2010. The sourcing and blending expertise that has made Aashirvaad India's
No 1 branded Atta has been leveraged to create a delightful noodle block. The
block being round in shape does not need to be broken while cooking,
providing really long & slurpy noodles. A special scientific process ensures
that the noodles does not lump even 30 minutes after cooking.
Yippee! instant noodles is available in four lip smacking variants - Magic
Masala, Classic Masala, Power Up Masala and Mood Masala. Magic Masala
is a special masala created by ITC with spices and also has five different types
of dehydrated vegetables. Classic Masala is the Classical Indian Masala
flavour with a perfect blend of spices. Power Up Masala is made from whole
wheat atta and has vegetable additions in every strand. Mood Masala is a
differentiated offering with 2 Masala Mix sachets which allows you to choose
your taste every time; thus making it a perfect partner for all moods!
B NATURAL:
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ITC entered the Fruit-based juices and beverages market with the launch of B
Natural Fruit beverages in January 2015. B Natural is the only brand in India
to launch packaged fruit beverages made directly from fruit & not from
concentrate. The proposition "Made from fruit & not from concentrate" is
promoted by Mrs. Shilpa Shetty Kundra, the brand ambassador who is well
known movie star celebrity with established credentials as a Fitness and Yoga
enthusiast
B Natural's products have the goodness of fruits and are luscious, thick and
taste closest to the natural taste of fruits. B Natural portfolio currently has the
first ever 100% Pomegranate juice. In Nectars range, it currently has 12
flavors Mixed Fruit, Guava, Litchi, Pomegranate, Orange, Mango, Pineapple,
Apple, Jamun and the very regionally differentiated variants Bael for North &
East, Phalse for North & West and Punjab da Kinnow for North. B Natural
Festive Delight portfolio comprises of 6 novel packs. "Lamp of Purity" is the
first ever gift pack by B Natural which can be converted to a Lantern.
MINT-O:
ITC launched 'Mint-O Fresh' in October 2004. Its launch extended the
footprint of the 'Mint-O' brand in line with the strategy of adding excitement
and contributing to the growth of the confectionery category. 'Mint-O Fresh' is
especially targeted at the adult consumer creating a basket of mint-based
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products. Mint-O Fresh comes in an assortment of three cool and refreshing
mints with varying intensity of mints. - Max, Premium and Ultra.
Another offering in the adult mint confectionery segment is Mint-O GOL, in
the 'Chews' sub-segment. A brand for young adults, Mint-O GOL appeals to
both men and women, offering a never before "refreshing indulgence".
Yet another addition to the Mint-O portfolio is the 'Mint-O Ultramintz'- a
sugar-free extra-strong mint. Available in select markets, Mint-O Ultramintz
has received encouraging consumer response.
CANDYMAN:
ITC launched the 'Candyman' range of confectioneries in August 2002, led by
the 'Candyman Fruitee Fun' range of assorted fruit flavours ('Wild Banana',
'Pineapple Punch', 'Orange Josh' and 'Mango Delite'). The brand was further
strengthened with the launch of 'Candyman Natkhat Mango'. Candyman also
entered the coffee toffee segment with the successful launch of 'Candyman
Cofitino' in November 2005.
Candyman's new offer in 2007 was the highly successful Choco Double
eclairs which delighted the consumers with chocolate on the inside and the
outside. In line with the strategy of providing innovative flavours and formats
to consumers, Candyman Toffichoo Strawberry - a luscious fruit flavored soft
and chewy toffee - was launched in 2009. Another significant offering from
Candyman in 2013, Candyman Crème Lacto comes with a crunchy Caramel
shell filled with rich crème center.
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The launch of ‘Candyman Jellicious' in 2013 marked ITC's foray in the Jelly
segment. These pulpy fruity jellies are available in the market in strawberry,
mango and orange flavours. In 2016, ITC further strengthened its portfolio
with the launch of Jelimals that comes in an innovative MUP pack. These are
soft delicious gummy bears that come in four flavors - mango, strawberry,
orange and pineapple, aimed at providing a fun filled experience to kids.
Candyman's purpose has been to provide best in class experience to cater to
the "sweet tooth" of its consumers. Widening the scope, Candyman launched a
slew of exciting offers in 2017 that tingle the taste buds and add a zing in the
day of kids and adults alike. Tadka, spicy center-filled candies, was launched
in mango and pineapple flavours. Crunchy, the first-ever layered candy in
India, crumbles instantly into many pieces and triggers a ‘peanut' explosion in
the mouth. Clear candy - shiny, smooth and transparent candies - comes in two
exciting flavours- raw mango and ripe mango. Duochoo is a two-color, soft,
chewy toffee with the feel of rich strawberry milkshake.
Milky eclairs, launched in March 2018, provides the experience of chewing
into the soft caramel shell to reveal a delicious milky crème center.The
highlight launch of 2018 is Tadka Time: a one-of-a-kind candy in India,
extending Candyman's offerings in Multi Unit Packs. The result of top
innovation by Candyman, these soft jelly beans are coated with masala, and
come in two flavors - masala mango and masala cola. Fruity Delite, the latest
offering, is available in 3 fantastic flavours: litchi, mango, and blackcurrant in
the form of clear, glossy candies that easily glide on the tongue to give you a
delightful fruity experience.
Gumon
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ITC launched 'GumOn' Chewing Gum in September 2014. GumOn's launch marked
the entry of ITC into the category of gums. A Long Lasting Chewing gum, GumOn is
available in a refreshing Spearmint flavour and juicy Strawberry flavour. 'GumOn' is
targeted at the Teens and Young Adults offering them a chewing gum which truly
delivers on its promise of Long Lasting Flavour.
FABELLE:
Fabelle chocolates are ITC's premier offering in the luxury chocolate space.
Made from cocoas sourced from the most exotic cocoa growing regions of the
world and combined with unique ingredients, Fabelle offers an immersive and
participative chocolate experience.
Launched in April 2016, Fabelle has a range of exquisitely handcrafted boxed
chocolates such as Fabelle Elements - intricately crafted pralines inspired by
the elements of nature, Fabelle Ganache - velvety soft cubes of exotic cocoas
delicately churned with butter & fresh cream and Fabelle As Your Like It -
personalized chocolate cup creations offering myriad possibilities of fillings
and toppings, Gianduja - a nutty, melt in mouth delicacy and Single Origin
Cacaos - an assortment of 6 rich dark chocolate bars made with cocoas
sourced from 6 different countries.
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SUNBEANS:
ITC forayed into the branded coffee category in July 2016 with the launch of
Sunbean Gourmet Coffee. To the discerning coffee consumer, Sunbean
Gourmet Coffee presents exquisite blends of the choicest Indian &
international bean varietals. It is the culmination of an extensive search across
the world to select some of the finest beans which were then expertly blended
by ITC's master-blenders with beans from some of India's best coffee growing
regions to deliver an unparalleled coffee experience. Sunbean Gourmet Coffee
is available in two delightful variants - Nicamalai and Panagiri.
Sunbean Nicamalai, a blend of the choicest coffee beans from Nicaragua and
Anamalai, is a fruity-sweet aromatic coffee with a creamy expression.
Sunbean Panagiri, a blend of selected coffee varietals from Panama and Baba
Budangiri, is an intensely fragrant coffee with a pleasant roasted nutty taste
and a hint of chocolate.
Sunbean Gourmet Coffee is available in ITC luxury collection hotels across
the country and can also be purchased at select modern trade outlets and on e-
commerce portals.
COMPETITORS OF ITC’S FOOD PRODUCTS
1) HUL
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Hindustan Unilever Limited (HUL) is the largest Fast Moving Consumer
Goods Company located in India. It has a rich 80 years of legacy in this field.
Almost, nine out of ten Indian households make use of the products of HUL.
The company works daily for a better future to make people feel and look
good with their various brands and services. The main product includes
cleaning agents, food products, personal care products, and water purifiers.
It has about 35 brands which span across 20 distinct categories like detergents,
soaps, skin care, deodorants, tea, coffee, ice cream, packaged food, and many
more. The main strength of this company is its innovation. The company’s
research center continuously works and develops innovative products which
make HUL lead the consumer goods market. As HUL is considered as
a market leader in consumer goods, it is indeed a top ITC competitor.
2) NESTLE
Nestle is a food processing industry located in Switzerland. Established in the
year 1866, Nestle is the largest food company in the world based on revenue.
The various products of Nestle include medical food, baby food, breakfast
cereals, bottled water, tea, coffee, dairy products, confectionery, frozen food,
ice cream, snacks, and pet foods.
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The company has about eight factories and many co-packers. It is a lively
company which provides their consumers with various products of global
standards. The company has about 200 brands that range from global to local
ones and their products are available in almost 191 countries. The research
and development center of Nestle is the world’s largest food and nutrition
research organization. Due to their broad portfolio of products, Nestle is
considered a top ITC competitor.
3) DANONE
A popular French food product company, Danone is based out in Paris. It
operates in food and beverage industry worldwide. The company has their
business operations through their four segments, EDP Norma,
EDP International, Waters, and Specialized Nutrition.
It offers various products like Yogurt, almond and soy milk, ice creams,
powdered proteins, and many more. The company also provides oral and tube
feeding products which are used for the nutritional treatment of babies and
children; hypoallergenic products, liquid oral nutritional supplements for
babies and children.
The products by Danone are produced using superior quality rawmaterials
and processes. Danone’s yogurt has a top selling product and it has a good
record of health benefits. Due to their products in various categories, Danone
is considered a top ITC competitor.
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Awards
 ITC won the Legal Era Award for the ‘Best Compliance In-House Legal Team of
the Year’.
 ITC’s Sankhya Data Centre, Bangalore became the first data centre in the
world to get LEED® Platinum Certification from the US Green Building
Council.
 ITC’s production units at Bangalore, Kolkata and Saharanpur received the
‘Future Ready Factory’ Platinum Awards at the India Manufacturing
Excellence Awards (IMEA) instituted by Frost & Sullivan and The Economic
Times. The Pune factory was the Winner in the ‘Information Technology
Leadership’ category.
 The ITC factory in Munger received the 1st prize at the FICCI Water Awards
(Industrial Water Use Efficiency category) 2014-15.
 ITC’s Agri Business won 2 Gold awards for Best Exporter of Green Coffee and
for exports to Europe from the India Coffee Trust.
 Wills Lifestyle was conferred the “Super Brand” status for 2015.
 Harvard Business Review ranked ITC Chairman Mr Y C Deveshwar as the 7th
Best Performing CEO in the World in its January-February 2013 edition.
 ITC was presented the World Business and Development Award at the Rio+20
UN Summit for its Social and Farm Forestry initiative (2012).
 ITC was presented the AIM Asian CSR Award by the Asian Forum on
Corporate Social Responsibility (AFCSR), in recognition of its contribution to
the creation of sustainable livelihoods and fostering economic growth in rural
communities in India (2012).
 Chairman Mr Y C Deveshwar was conferred the Padma Bhushan by the
Government of India (2011).
 ITC Hotels the ‘Greenest Luxury Hotel Chain in the World’ (2011).
 ITC was conferred the National Award for Excellence in Corporate
Governance from the Institute of Company Secretaries of India (2007).
 ITC was the 1st Indian Company and 2nd in the world to win the
Development Gateway Award for its trailblazing e-Choupal initiative (2005).
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ORGANIZATION STUDY
Date of Establishment
24-08-1910
Revenue
60,493 Crore (US$8.8 billion) (2017)
Net income 10,471 Crore(US$1.5 billion) (2017)
Carporate Address
Virginia House,37, Jawaharlal Nehru Road, Kolkata
700071, West Bengal.
Website: www.itcportal.com
Chairperson Sanjiv Puri
Business Operation Cigarettes/ Tobacco
Background
ITC ltd was incorporated on August 24, 1910, under the
name Imperial tobacco Company of India ltd. To make
cigarettes and tobacco. In 1975, the company entered
the hospitality business with the acquisition of ITC
Welcomegroup Hotel chola.
Financials
Total Income – Rs. 381208.5 Million
Net profit – Rs. 96077.3 Million
Company Secretary Sri.Biswa Behari Chatterjee
Auditors Deloitte Haskins & Sells
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KEY EXECUTIVES:
Sl. No Name Designation
1 Mr. Sanjiv Puri Chairman
2 Mr. Biswa Behari Chatterjee Company Secretary
3 Mr. Nakul Anand Executive Director
4 Mr. Suryakant Balkrishna Mainak Non Executive Director
5 Mr. Krishnamoorthy Vaidyanath Non Executive Director
6 Mr. Anil Baijal
Non Executive &
Independent Director
7 Mrs. AV Girija Kumar Non Executive Director
8 Mr. Shilabhadra Banerjee
Non Executive &
Independent Director
9 Mr. Sunil Behari Mathur
Non Executive &
Independent Director
10 Mrs. Meer Shankar
Executive & Independent
Director
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ITC’s Ghee Product profile
Fig No: 3
Aashirvaad Svasti Ghee is the first product from ITC's dairy portfolio. In
India, different kinds of ghee exist, catering to the regional taste palates. ITC's
Aashirvaad Svasti Ghee is an outcome of R&D at the ITC Life Sciences and
Technology Centre, Bangalore, which studied these different regional profiles
of ghee, to craft out superior regional variants for the consumers.
Pure Cow Ghee variant has been recently launched in Bangalore. It is made
from pure cow's milk which is procured using ITC's own milk sourcing
network. Special infrastructure has been developed & deployed to segregate
cow and buffalo milk at the source and along the procurement network.
The milk goes through stringent quality tests before reaching ITC's own state
of the art manufacturing facility at Munger, Bihar, where best in class
manufacturing practices are deployed to manufacture this ghee.
Furthermore, Aashirvaad Svasti Ghee is made using a special SloCook process
that enhances its natural aroma, giving it a distinct flavor profile. With its
wonderful aroma, rich granular texture and consistent quality, Aashirvaad
Svasti Ghee is a must have in every household. Packed in convenient pack
formats - Uniquely shaped PET jars and refill pouches, Aashirvaad Svasti
Ghee is available in different pack sizes. Jars are available in sizes of 200ml,
500ml and 1 Ltr packs. Refill pouches are available in 50ml, 100ml, 200ml
and 500ml packs.
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HUBLI CIGARETTE AGENCY - ADMINISTRATION
CHART
Chart No.1
Hubli Cigarette Agency
CIGARETTE
DEVISION
Hubli Cigarette
Agency
FOOD DEVISION
Mahendrakar
Agency For
Cadbury India Ltd.
Logistics office for
the ITC products
Logistics office
for the Cadbury
products
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ABOUT THE DISTRIBUTER: “HUBLI CIGARETTE
AGENCY”
The Hubli Cigarette Agency has the organization structure as maintained
bellow. There is three sections in order to make the all functions on time. Like
1) Hubli Cigarette Agency-Cigarette division handles with all administration and
the stock point for the ITC cigarette products. And computer billing section
and cash collection section is come in this division.
2) Hubli Cigarette Agency-Food division handles with all type of activities which
is going to help for the sales departments. In this division the sales persons are
given training and targets for the months. And their monthly reports are kept
for further sales analysis. And for the food products stock point is show in the
organization structure.
3) Then we have the Mahendhrakar agency for Cadbury section. In this section
all entire north Karnataka Cadbury sales reports. And accounts which are
related to Cadbury are kept. The Mahendhrakar agency is the Super-stockiest
for Cadbury India Ltd., for entire north Karnataka.
4) Then we have the logistics offices for maintaining the ITC food products. In
order to make sure that supply has to happen on time without any delay. In
order to fulfill this, the Hubli cigarette agency has following some
management roles. They are following the FIFO (First in First Out) method
for supplying the products. And placing the order to the company C&F will be
based on the past performance and feature demand they will place the order to
C&F.
5) Lastly we have the Cadbury logistics division. In this the all kinds of Cadbury
products are kept according to the marks. And they are also provided Air
condensational room for cold storage
.
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SWOT ANALYSIS:
Strengths:
Strong Brands in various businesses: ITC is a strong house of brands with
most of its products leading the segments in which they operate.
ITC owns some of the most popular cigarette brands like gold flake and
Classic. It also owns Sunfeast, which is amongst the top selling biscuits in
India.
Similarly, Aashirvaad, Yippee!, Engage, John Players and Bingo are also
amongst the market leader in their respective categories. ITC’s hotel and
property businesses are also doing well.
ITC has successfully utilised the strengths of existing business to foray into a
newer products or categories. ITC leveraged the strong distribution system of
cigarette brands to create a channel for its FMCG products.
Weaknesses:
High Proportion of revenues from Tobacco products: ITC has been
continuously making efforts to divert the FMCG business from over
dependence on tobacco products and have been successful in doing so to an
extent. But, tobacco products remain to be the major source of the revenue
contributing more than 60% of the total revenue from FMCG businesses.
Association with Tobacco Products affects the image: ITC has made a lot
of efforts to improve its corporate image but the fact that ITC has many
tobacco products in its portfolio impacts its corporate image.
An increase in Tax on Tobacco affects revenue: Due to the increase in
taxation on tobacco products, the prices and hence revenues get affected.
Hotel industry has not been able to create a huge market share.
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Opportunities:
Growth in Purchasing power and improving lifestyle: ITC should tap on
the increasing purchasing power and improving the lifestyle of customers in
India. This could help in increasing revenue for all its businesses.
Tap opportunities created in the Rural Market: The growing rural market
in India and other emerging nations create huge opportunities to improve the
bottom-line of the company.
Strategic Acquisitions: ITC should continue making the strategic acquisition
like they have done in the past by acquiring Savlon from Johnson & Johnson
and B Natural from Balan natural Foods. Keeping in mind that the product fits
into the existing distribution network, ITC can look to increase its portfolio of
products and expand its Non-Tobacco FMCG business and thereby
strengthening the base of revenue.
Growing Personal Hygiene as well as Food processing Industry in India:
ITC should utilise its distribution channel in Personal Hygiene and Food
Processing Industry to capitalise on the growth in the categories and hence
increase revenue
Threats:
Intensifying Competition in FMCG businesses: ITC faces intense
competition in its FMCG business from large MNCs like HUL and P&G and
Indian FMCGs like Patanjali and Dabur. This limits the market share for ITC.
Strict Regulations and Increasing Taxation in Cigarette Business: The
Tobacco and Cigarette Industry in India continue to be targeted by strict
government regulations and taxation system. This possesses a threat to the
highly profitable Cigarette business of ITC.
Increasing awareness on health: There has been an increase in the health
consciousness which has resulted in the decrease in demand for tobacco
products in India. Also, anti-smoking campaigns throughout the country affect
the sales of cigarettes.
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THEORETICAL BACKGROUND
Distribution channel
The path through which goods and services travel from the vendor to the
consumer or payments for those products travel from the consumer to the
vendor. A distribution channel can be as short as a direct transaction from the
vendor to the consumer, or may include several interconnected intermediaries
along the way such as wholesalers, distributors, agents and retailers. Each
intermediary receives the item at one pricing point and movies it to the next
higher pricing point until it reaches the final buyer. Coffee does not reach the
consumer before first going through a channel involving the farmer, exporter,
importer, distributor and the retailer.
Channel management
The process by which a producer or supplier directs marketing activity by
involving and motivating parties comprising its channel of distribution.
Channel partner
An individual or business that sells products or services on behalf of primary
or. Examples of channel partner types might include: consultants, value added
resellers, system integrators, managed service providers and
Supply chain stages
• Customers
• Retailers
• Wholesales/distributors
• Manufacturers/ Plants
• Component/raw material suppliers
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Channel functions
Chart no.2
RETAIL INDUSTRY
Retail is the process of selling consumer goods and/or services to customers
through multiple channels of distribution to earn a profit. Demand is created
through diverse target markets and promotional tactics, satisfying consumers'
wants and needs through a lean supply chain.
Retail outlet
A store that sells smaller quantities of products or services to the general
public, A business that operates as a retail outlet will typically buy goods
directly from manufacturers or wholesale suppliers at a volume discount and
will then mark them up in price for sale to end consumers. Retailers buy goods
in large quantities from manufacturers or importers, either directly or through
Distribution
Channel
Functions
Risk Taking
Information
Promotion
Physical
Distribution
Negotiation
Marketing
Contact Financing
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a wholesaler, and then sell smaller quantities to the end-user. It arrange goods
in their finished state to be sold to the customer who are prepared to pay for
the pleasure of eating, wearing or experiencing particular products .
The Best suitable retail outlets for selling ITC products
Department store
Department stores are very large stores offering a huge assortment of "soft"
and "hard" goods which often bear a resemblance to a collection of specialty
stores. A retailer of such store carries a variety of categories and has a broad
assortment of goods at an average price. They offer considerable customer
service.
Discount store
Discount stores are often able to drop their prices due to efficient distribution
methods. Many of the largest discount stores are also chain stores, and include
Wal-Mart, Target, and K-Mart. Furthermore, many of these discount stores
could also be categorized as big-box stores as they grow to include more and
more products sometimes even including a large grocery section
Warehouse store
Warehouses that offer low-cost, often high-quantity goods piled on pallets or
steel shelves; warehouse clubs charge a membership fee.
Variety store
Variety stores offer extremely low-cost goods, with a vast array of selection.
The downfall to this is that the items are not very high quality.
Demographic
Retailers that aim at one particular segment (e.g., high-end retailers focusing
on wealthy individuals)
Mom-And-Pop
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A small retail outlet owned and operated by an individual or family. It focuses
on a relatively limited and selective set of products.
General store
A general store is a rural store that supplies the main needs for the local
community.
Convenience store
A convenience store provides limited amount of merchandise at more than
average prices with a speedy checkout. This store is ideal for emergency and
immediate purchase consumables as it often works with extended hours,
stocking every day.
Hypermarkets
It provides variety and huge volumes of exclusive merchandise at low
margins. The operating cost is comparatively less than other retail formats.
Supermarket
A large store that sells a variety of food and household items to customers
E- tailer
The customer can shop and order through the internet and the merchandise is
dropped at the customer's doorstep or an e-tailor. Here the retailers use drop
shipping technique. They accept the payment for the product but the customer
receives the product directly from the manufacturer or a wholesaler. This
format is ideal for customers who do not want to travel to retail stores and are
interested in home shopping.
RESEARCH DESIGN
NEED FOR THE STUDY
The ITC‘s Food Products are sold through retailers and wholesalers in Hubli City.
The study is on Comparative Analysis of ITC Aashirvaad svasti ghee and its
competitors in Hubli-Dharwad city. As per my project, title is to know the
effective distribution from the outlet retailers. The projects is a study on
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Aashirvaad svasti Ghee product of ITC because the Aashirvaad svasti ghee have a
sales volume which is low in market so the project is being undertaken to know
that there is any distribution problems or customers problems towards the ITC‘s
Ghee product in the market.
STATEMENT OF THE PROBLEM
ITC is one of the biggest FMCG Company in India. ITC FMCG has been
aggressive in recent past towards diversifying its FMCG division as to reduce its
dependency on cigarette division. Food as a division is comparatively new for
ITC and the company wants to establish a strong foot hold in the current highly
competition Food sector through strengthening its channel of distribution.
Considering the same ITC distribution at Hubli has been in line with company
vision out is keen to understand the retailer‘s satisfaction towards its channel
services been provided.
TITLE OF THE PROJECT
“A Study on comparative analysis of ITC with special
reference to Aashirvaad Ghee in Hubli-Dharwad City”
OBJECTIVE OF THE STUDY:
1. To Study and understand the preference of Retailers of ITC Products.
2. To Study the analyses the service provided by ITC.
3. To Study the channel wise Behavior in terms of Product moment specially
with Aashirvaad svasti ghee.
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RESEARCH METHODOLOGY
RESEARCH DESIGN
The study was based on both primary and secondary data. The primary data
was collected through printed questionnaires consisting of following
categories.
 Dichotomous Questions.
 Completely Structured questions
Using this data measurement technique, the information was collected by
personal interviews.
The secondary data was collected through company manuals, brochures and
website of the company, trade and other public domain, referred journals
discussions with company guide.
The collected data was processed by using SPSS Software.
Sampling Design
The sample selected for survey was purely Non-probability, Convenience
sample.
Sampling plan
Sampling unit: Retailers
Sampling Method: Non-probability, Convenience Sampling.
Sampling Size: 150 Respondents
Sampling Plan: Structured Questionnaire Method.
Sampling Area: Hubli-Dharwad city
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Tools and Techniques of Data Collection
The above mentioned sampling units were interviewed personally i.e., face to
face interviews were done.
Questionnaire was used for data collection from Wholesalers & retailers, in
order to form the effective sales and distribution to the company.
SCOPE OF THE STUDY:
The scope of project study by the researcher is mainly focused on the
understanding of the Retailer perception & dissatisfaction. The information,
which was gathered from the project study, makes the project more useful by
developing the needed information for internal company records. This
information also proves useful to managers in the right form at the right time
in order to help them for better marketing decisions.
To achieve the goals of a business, the company has to monitor the market
situation on a regular basis to be updated on the market trends. Thus the
survey has a great scope both for the company as well as the Brand.
Limitation of the study
1. The duration of the project was limited for only 2 months
2. The geographical area for the study is limited to Hubli-Dharwad cities only
3. The report is confined to the concept of marketing management only
4. The sample for the study is limited to 150 samples only
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DATA ANALYSIS AND INTERPRETATION
Table no.1 Representing the types of Outlets
Sl.
No Particulars No of Respondents Percentage
1 Departmental Store 4 2.7
2 Wholesaler 1 0.7
3 Retail Shop 145 96.7
Total 150 100
Graph No.1 Representing the types of Outlets
INTERPRETATION:
From the above graph, it can be interpreted that retailers are dealing more in
ITC products than the competitors in Hubli city. In terms of total constitution
of the samples considered 96.7% of the retailers, 0.7% of Wholesalers and
2.7% Departmental Store considered are dealing with ITC range of products.
It is because in the Hubli city more number of retail outlets are there & the
company is providing sufficient margin and the company‘s delivery time is
also good. it is evident that the penetration of ITC is more in case of retail
outlet than wholesale outlet and Departmental Store.
3% 1%
96%
Type of Outlets
Departmental Store
Wholesaler
Retail Shop
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Table 2: Representing the total turnover of outlet per
month
Graph 2: Representing the total turnover of outlet per month
INTERPRETATION: From the above graph, it can be interpreted that 56%
Outlets sales Turnover is Around Rs. 20,000-Rs. 50,000.
38% of Outlets sales turnover is Rs.50,000 -Rs.1,00,000
3% of outlets are less than Rs. 20,000 Sales turnover
3% of outlets are more than Rs. 1,00,000 Sales Turnover .
3%
56%
38%
3%
Turnover of Outlets
Rs.10,000 - Rs.20,000
Rs.20,000- Rs.50,000
Rs.50,000 - Rs.1,00,000
More than Rs.1,00,000
total turnover of outlet per month
SI.
No particulars
No of
Respondents Percent
1 Rs.10,000 - Rs.20,000 5 3.3
2 Rs.20,000- Rs.50,000 84 56
3 Rs.50,000 - Rs.1,00,000 57 38
4 More than Rs.1,00,000 4 2.7
Total 150 100
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Table No 3. Representing the total turnover of ghee in outlets
total turnover of ghee in outlet
Sl.No Particulars No of Respondents Percentage
1 below Rs.5,000 126 84
2 Rs.5,000 to Rs.10,000 21 14
3 Rs.10,000 to Rs.30,000 3 2
Total 150 100
Graph No.3 Representing the total turnover of outlet per month
INTERPRETATION:
In the above graph it can be interpreted that Monthly sales Turnover of Ghee
as per the retailers information the Ghee sales is low as compare to the other
Products. As per the survey 84% retailers turnover of ghee is below 5,000/- .
14% of big Retailer shops ghee Turnover is 5,000 to 10,000 and Rest of
Departmental Store and wholesale store turnover of ghee is more Then
10,000/-
84%
14%
2%
Turnover of Ghee in Outlets
below Rs.5,000
Rs.5,000 to Rs.10,000
Rs.10,000 to Rs.30,000
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Table No.4 Representing the ghee brands in Respective outlets
Ghee brands in Respective outlets
SI. No Particular
No of
Respondents Percent
1 ITC 36 14%
2 GRB 71 28%
3 Nandini 60 24%
4 Patanjali 4 2%
5 Aditya 26 10%
6 Shri Krishna 21 8%
7 other 34 14%
Total 252 100%
Graph No.4 Representing the ghee brands in Respective
outlets
INTERPRETATION:
In above graph it can be interpreted that highest stock of Ghee’s in
Respective Outlets is GRB(28%). Then second Highest is Nandini (24%), And
Other Ghee companies like ITC (14%), Others (local Ghee brand) (13%),
Aditya(10%), Shri Krishna(8%), least of Patanjali(2%).
0%
5%
10%
15%
20%
25%
30%
ITC GRB Nandini Patanjali Aditya Shri
Krishna
other
14%
28%
24%
2%
10%
8%
14%
Series2
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Table No.5 Representing the Customers are aware of ITC
Aashirvaad svasti ghee
G
r
a
p
h
No. 5 Representing the Customers are aware of ITC
Aashirvaad svasti ghee
INTERPRETATION:
In above graph it can be interpreted that only 40% customers are aware of
Aashirvaad svasti Ghee.
Rest of 70% customers not aware of Aashirvaad swasti ghee because lack of
advertisement, product visibility, lack of Promotion so on.
60%
40%
Customers are aware of ITC Aashirvaad svasti ghee
yes
No
Si.
No Particulars No. of Respondents Percentage
1 yes 46 30.7
2 No 104 69.3
Total 150 100
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Table No.6 Representing the reasons of not aware of ITC ghee
reasons of not aware of ITC ghee
Si.
No particulars No of Respondents Percentage
1 lack of product visibility 24 16
2 lack of advertisement 64 42.7
3
lack of sale team support from
company 17 11.3
4 Improper service from company 2 1.3
5 No response 43 28.7
Total 150 100
Graph No. 6 Representing reasons of not aware of ITC ghee
INTERPRETATION: In above graph it can be interpreted that 43% people
not Aware about ITC Ghee Because of Lack of Advertisement.
16% People not aware because lack of product visibility.
11% People are not aware because Lack of sale team support from company
1% people says Improper Service from company.
16%
43%11%
1%
29%
Reasons of not aware of ITC ghee
lack of product visibility
lack of advertisement
lack of sale team support
from company
Improper service from
company
No response
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Table No.7 representing the maintain the stock of ITC
Aashirvaad svasti ghee
maintain the stock of ITC Aashirvaad svasti ghee
SI. No Particulars No of Respondents Percentage
1 Yes 46 30.70%
2 No 103 68.70%
3 No Response 1 0.70%
Total 150 100%
Graph No. 7 Representing the maintain the stock of ITC
Aashirvaad svasti ghee
INTERPRETATION:
From the above graph, it can be interpreted that 31% of the retailers are selling
ITC Aashirvaad svasti Ghee in Outlets. Rest of 69% of the Retailers are not
maintaining stock of Aashirvaad svasti ghee in their outlets.
As per the data, it is evident that the More Number of retailers are not
maintaining the stock of ITC Ghee Because of improper Service from
company and Still not approach to these outlets to promote Aashirvaad ghee
and Increase the sale of ghee.
31%
69%
0%
maintain the stock of ITC Aashirvaad svasti ghee
Yes
No
No Response
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Table No.8 Representing the Reasons for not stocking of ITC
ghee in outlet
Reasons for not stocking of ITC ghee in outlet
SI.
No Particulars No of Respondents Percentages
1 No consumer Demand 80 53%
2 High in price 5 3%
3 Less in margin 6 4%
4 company not Approach 15 10%
5 No Response 44 30%
Total 150 100%
Graph No.8 Representing the Reasons for not stocking of ITC
ghee in outlet
INTERPRETATION:
From the above graph, it can be interpreted that Retailers not stocking
Aashirvaad ghee because 80% Retailers say No one consumer Demand to the
ITC ghee.
10% Retailers are say that still Company not approach to promote ghee or
order taking from Retailer.
0%
10%
20%
30%
40%
50%
60%
No consumer
Demand
High in price Less in margin company not
Approach
No Response
53%
3% 4%
10%
29%
Percentage
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Table No.9 Representing the customer intuition on ITC Aashirvaad
swasti ghee
SI.NO Particulars colour packaging
Packet
size pricing quality
Smell
and
Taste Total
1 Reasonable 2% 6% 4% 4% 4% 4%
2 Moderate 52% 31% 33% 25% 21% 50% 35%
3 High 40% 57% 58% 73% 71% 46% 57%
4 Very High 6% 6% 5% 2% 4% 4%
Total 100% 100% 100% 100% 100% 100% 100%
Graph No.9 Representing the customer intuition on ITC
Aashirvaad swasti ghee
INTERPRETATION:
In the above graph it can be interpreted that the Majority of the retailers (52%)
have rated the colour of Aashirvaad ghee is moderate.57% of Retailers rated
High in packaging Because of ITC ghee company packing is good. 58% of
Retailers are rated High in Pocketsize .73% Retailers rated High in price
because rest of ghee brands are in low price compare to Aashirvaad svasti
ghee (exclude GRB).71% majority of Retailers say quality of Aashirvaad ghee
is high Because brand loyalty. 46% of retailers are rated moderate in smell and
Taste .
0%
20%
40%
60%
80%
2% 6% 4% 4% 4%
52%
31% 33%
25% 21%
50%
40%
57% 58%
73% 71%
46%
6% 6% 5% 2% 4%
Reasonable Moderate High Very High
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Table No.10 Representing the Association with ITC company
Association with ITC company
SI. No Particulars No of Respondents Percentages
1 1-2 years 13 9%
2 2-5 years 69 46%
3 5-10 years 50 33%
4 More than 10 years 6 4%
5 No Response 12 8%
Total 150 100
Graph No.10 Representing the Association with ITC company
INTERPRETATION:
In the above graph it can be interpreted that 46% Retailers are associated with
ITC company because of good Service from distribution channel and maintain
good relationship with Retailers. 33% of Retailers are associated 5-10 Years to
maintain good relationship and loyal to the Retailers. 9% Retailers are recently
started the business to associated with company to increase the sales of
products and profit to their outlets. Rest of 4% Retailers are old customers to
the ITC company long years ago .
9%
46%
33%
4% 8%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1-2 years 2-5 years 5-10 years More than 10
years
No Response
percentage
Association with ITC company
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Table No.11 Representing the more profit margin ghee
companies
SI. N0 Particulars No of Respondents Percentages
1 ITC 7 5%
2 GRB 42 28%
3 NANDINI 38 25%
4 ADITYA 8 5%
5
SHRI
KRISHNA 6 4%
6 OTHERS 21 13%
7 All Equal 28 19%
Total 150 100%
Graph No.11 Representing the more profit margin ghee
companies
INTERPRETATION:
From the above graph it can be interpreted that GRB(28%) is the most
preferred company while considering margin payout being given to retailers
are over and above company‘s such as Nandini (25%), other local
-
10
20
30
5%
28% 25%
5% 4%
13%
19%
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brands(13%), ITC(5%), while Aditya (5%) and Shri Krishna(4%) are giving
less margins respectively.
(19%) of Retailers say all ghee brands are Equal margin.
Table No.12 representing the perception of ITC ghee
Regarding price compare to other ghee brands
perception of ITC ghee Regarding price compare to other ghee brands
Sl.No particulars Aditya GRB Nandini Patanjali Revati
Shri
Krishna Total
1 High 72% 6% 96% 82% 83% 87% 71%
2 Equal 28% 35% 4% 19% 17% 13% 19%
3 Low 0% 59% 0% 0% 0% 0% 10%
Total 100% 100% 100% 100% 100% 100% 100%
Graph No.12 Representing the perception of ITC ghee
Regarding price compare to other ghee brands
INTERPRETATION:
From the above graph it can be interpreted that Majority of the Retailers
(72%) rated Aashirvaad ghee Price is higher than Aditya ghee. Majority of the
Retailers (59%) rated Aashirvaad ghee is lower price than GRB. Rest of
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aditya GRB Nandini Patanjali Revati Shri Krishna
72%
6%
96%
82% 83%
87%
28%
35%
4%
19% 17%
13%
59%
Percentage
High Equal Low
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brands Nandini (96%), Patanjali (82%), Revati (83%), Shri Krishna (87%)
ghee brands are lower price than Aashirvaad ghee.
Table No.13 Representing the Perception of ITC ghee
brand Regarding quality
Graph No.13 Representing the Perception of ITC ghee brand
Regarding quality
INTERPRETATION:
From the above graph it can be interpreted that Majority of the Retailers
(80%) rated Aashirvaad ghee Quality is higher than Aditya ghee. Majority of
the Retailers (65%) rated Aashirvaad ghee is high quality than GRB. Rest of
brands Nandini (91%), Patanjali (91%),
80%
65%
91% 91% 87% 85%
20%
33%
9% 9% 13% 15%
2%
0%
50%
100%
Aditya GRB Nandini Patanjali Revati Shri Krishna
percentage
High Equal Low
Perception of ITC ghee brand Regarding quality
SI. No Particulars Aditya GRB Nandini Patanjali Revati
Shri
Krishna Total
1 High 80% 65% 91% 91% 87% 85% 83%
2 Equal 20% 33% 9% 9% 13% 15% 17%
3 Low 2% 0%
Total 100% 100% 100% 100% 100% 100% 100%
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Revati (87%), Shri Krishna (85%) ghee brands are lower quality than
Aashirvaad ghee.
Table No.14 Representing the Perception of ITC ghee brand
Regarding Availability
SI.No Particulars Aditya GRB Nandini Patanjali Revati
Shri
krishna To
1 High 89% 89% 91% 95% 95% 89% 91
2 Equal 9% 9% 4% 4% 6% 9% 7%
3 Low 2% 2% 6% 2% 2% 2%
Total 100% 100% 100% 100% 100% 100% 10
Graph No.14 Representing the Perception of ITC ghee brand
Regarding Availability
INTERPRETATION:
From the above graph it can be interpreted that Majority of the Retailers
(89%) rated Aashirvaad ghee availability is higher than Aditya ghee. Majority
of the Retailers (89%) rated Aashirvaad ghee is higher availability than GRB.
Rest of brands Nandini (91%), Patanjali (95%),
Revati (95%), Shri Krishna (89%) ghee brands are lower price than
Aashirvaad ghee.
89% 89% 91% 95% 95% 89%
9% 9% 4% 4% 6% 9%
2% 2% 6% 2% 2%
0%
20%
40%
60%
80%
100%
Aditya GRB Nandini Patanjali Revati Shri krishna
percenatage
High Equal Low
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Table No.15 Representing the Ranking of ghee brands
Graph No.15 Representing the Ranking of ghee brands
INTERPRETATION:
From the above graph it can be interpreted that Ranking on ghee brands to
Majority of the Retailers (45%) rated high priority on GRB
Only 6% Retailers are rated high on priority and 18% Retailers rated 2nd
priority on ITC Aashirvaad svasti ghee and (2%) of retailers are rated least on
priority.
0%
10%
20%
30%
40%
50%
60%
70%
80%
Aditya GRB ITC Nandini others Patanjali Shri
Krishna
5%
45%
6%
32%
7% 5%
18%
32%
36%
1% 2%
7%
21%
Percentage
High on Priority
2
3
4
5
6
Least on Priority
No Response
Si.
No particulars Aditya GRB ITC Nandini others Patanjali
Shri
Krishna Total
1 High on Priority 5% 45% 6% 32% 7% 5% 14%
2 2 8% 39% 18% 31% 1% 1% 1% 14%
3 3 12% 12% 13% 22% 3% 2% 35% 14%
4 4 35% 3% 15% 12% 2% 1% 32% 14%
5 5 32% 36% 1% 2% 7% 21% 14%
6 6 5% 9% 1% 11% 68% 5% 14%
7 Least on Priority 3% 2% 75% 21% 14%
8 No Response 1% 1% 1% 1% 1% 1% 1% 1%
Total 100% 100% 100% 100% 100% 100% 100% 100%
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Table No.16 Representing the Problems face while selling the
ITC Aashirvaad svasti Ghee
SI. No Particulars Frequency Percentages
1 High in Price 34 22.7
2 Low of Quality 3 2
3 Lack of Advertisment 78 52
4 Improper service from company 11 7.3
5 No Response 24 16
6 Total 150 100
Graph No.16 Representing the Problems face while selling the
ITC Aashirvaad svasti Ghee
INTERPRETATION:
From the above graph it can be interpreted that Majority of the Retailers (52%) rated
lack of Advertisement. 23% Retailers say high in Price, 7% Retailers says Improper
service from company.2% retailers says low of quality.
So ITC company advertising About Aashirvaad ghee and decrease the price little bit
to increase the sale of Aashirvaad ghee.
23%
2%
52%
7%
16%
Problems for selling ITC ghee
High in Price
Low of Quality
Lack of Advertisment
Improper service from
company
No Response
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 68
Table No.17 Representing the Support receiving from
company to promote ITC ghee
Support receiving from company to promote ITC ghee
SI. N0 Particulars Frequency Percentages
1 Yes 42 28
2 No 93 62
3 No Response 15 10
Total 150 100
Graph No.17 Representing the Support receiving from
company to promote ITC ghee
INTERPRETATION:
From the above graph it can be interpreted that Majority of the Retailers
(62%) not receiving support from company to promote ITC ghee.
28% retailers are receiving support from company to promote ITC ghee.
ITC company better to support other Retailers to promote ghee and increase
the sale of ITC ghee.
28%
62%
10%
support
Yes No No Response
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 69
Table No.18 Representing the Support Not receiving from
company to promote ITC ghee
SI. N0 Particulars Frequency Percentages
1 Lack of availability 7 5%
2 lack of supply 10 7%
3 Lack of sales team Support 32 21%
4 Lack of Interest and support from the company 29 19%
5 Lack in Required size and Quantity 13 9%
6 No Response 59 39%
Total 150 100%
Graph No.18 Representing the Support Not receiving from
company to promote ITC ghee
INTERPRETATION:
From the above graph it can be interpreted that Majority of the Retailers
(21%) not receiving support from company to promote ITC ghee because of
lack of sales team support, 19% retailers are said that lack of Interest and
support from the company.9% retailers are said that lack of Required size and
quantity. 7% retailers are said that lack of supply from company. 5% retailers
said that lack of availability.
ITC company have to support to retailers to promote ITC ghee and take
Interest to promote ghee.
5 %
7%
21%
19%
9%
39%
-
5
10
15
20
25
30
35
40
45
Lack of
availability
lack of supply Lack of sales
team Support
Lack of Interest
and support
from the
company
Lack in Required
size and
Quantity
No Respons
Percentage
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 70
Table No.19 Representing the Receive stock while ordering on
time and per schedule
SI. No Particulars Frequency Percentages
1 Yes 53 36%
2 No 65 43%
3 No Response 32 21%
Total 150 100%
Graph No.19 Representing the Receive stock while ordering on
time and per schedule
INTERPRETATION:
From the above graph it can be interpreted that 36% retailers are receiving
stock while they ordering on time and per schedule.
43 % retailers are not receiving stock while they ordering on time and per
schedule.
ITC company have to deliver the order as per schedule to satisfied to retailers.
36%
43%
21%
Chart Title
Yes No No Response
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 71
Table No.20 Representing the Reasons for Not Receive ITC
ghee stock while ordering on time
SI. No Particulars Frequency Percent
1 Lack of Proper service 44 29.3
2 Lack of supply chain 22 14.7
3 No Response 84 56
Total 150 100
Graph No. 20 Representing the Reasons for Not Receive ITC
ghee stock while ordering on time
INTERPRETATION:
From the above graph it can be interpreted that 29% retailers Not Receive ITC
ghee stock while ordering on time because of Lack of proper service.
15% retailers Not Receive ITC ghee stock while ordering on time because of
Lack of supply chain.
So ITC company doing proper service and increase the supply chain to
increase the sale of ghee.
29%
15%
56%
Chart Title
Lack of Proper service Lack of supply chain No Response
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 72
Table No.21 Representing the ITC push activities
Graph No.21 Representing the ITC push activities
INTERPRETATION:
From the above graph it can be interpreted that majority of retailers rated 13%
reasonable in Gift offers.
25% retailers are rated less in lucky draws, 13% of retailers rated both
moderate and high.
11% retailers rated Reasonable and moderate in quick and supply. Majority of
retailers (13%) rated moderate in sales margin.
15% of retailers are rated to moderate on slab wise targets.
0%
20%
40%
60%
80%
Gift
offers
Lucky
draws
offers
and
schemes
Quick
and
supply
Sales
margin
slab
wise
targets
Trade
Discount
25%
13% 15%11% 13% 15%13%
1% 2% 1%
71% 71% 71% 71% 71% 71% 71%
Percentage
Factors
ITC Push activities to promot ghee
less
Reasonable
moderate
high
Very High
No response
SI.
No Particulars
Gift
offers
Lucky
draws
offers and
schemes
Quick and
supply
Sales
margin
slab
wise
targets
Trade
Discount Total
1 less 7% 25% 0% 1% 6% 2% 1% 6%
2 Reasonable 13% 4% 3% 11% 10% 15% 13% 10%
3 moderate 7% 0% 13% 11% 13% 10% 15% 10%
4 high 2% 0% 13% 6% 1% 2% 1% 4%
5 Very High 0% 0% 0% 1% 0% 0% 0% 0%
6
No
response
71% 71% 71% 71% 71% 71% 71% 71%
Total 100% 100% 100% 100% 100% 100% 100% 100%
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 73
15% of retailers are rated to moderate on Trade Discount
Table NO.22 Representing the priority of Ghee brands in outlets for more
stock
Sl.
No
Particular
s
priority of Ghee brands in outlets for more stock
TotalAditya GRB Nandini other Patanjali Revati
Shri
krishna
1 High on
priority
5% 46% 35% 9% 5% 14%
2 2.00 11% 42% 39% 5% 1% 3% 14%
3 3.00 24% 7% 18% 6% 1% 44% 14%
4 4.00 47% 3% 6% 5% 1% 39% 14%
5 5.00 11% 1% 1% 4% 67% 9% 7% 14%
6 6.00 1% 1% 6% 24% 68% 14%
7 Least on
priority
1% 1% 65% 6% 23% 2% 14%
8 No
Respondi
ng
1% 0%
Total 100.0
%
100.
0%
100.0%
100.
0%
100.0%
100.0
%
100.0
%
100.0%
Graph No. Representing stock of Ghee companies
INTERPRETATION:
From the above graph it can be interpreted that more stock of ghee companies
majority of retailers (46%) are rated high on priority to GRB ghee and 2nd
Priority is Nandini(39%) , 3rd
priority is shri Krishna, 4th
priority is Aditya, 5th
priority is patanjali, 6th
priority is Revati, least on priority to other local ghee
brands.
46%
39%
44%47%
67% 68%65%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Percentage
High on priority
2
3
4
5
6
Least on priority
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 74
Table No.23 Representing the Reasons required to keep stock
of ITC ghee
SI.
No
Particulars
Attractive
offers
Attractive
Packing
Credit
System
Customer
Demand
Profit
Margin
quality
Flexibility
Replacement
Visual
Display
1 Less 2% 1%
2 Reasonable 3% 1% 1% 5% 5% 6% 3% 1%
3 Moderate 25% 20% 24% 23% 35% 17% 19% 20%
4 High 35% 39% 40% 38% 27% 41% 44% 44%
5 Very High 3% 7% 3% 1% 1% 3% 3%
6
No
Response 32% 33% 32% 32% 32% 32% 32% 32%
Total 100% 100% 100% 100% 100% 100% 100% 100%
Graph No.23 Representing the Reasons required to keep stock
of ITC ghee in outlets
INTERPRETATION:
From the above graph it can be interpreted that reasons to keep stock of ITC
Ghee to majority of Retailers (35%) are rated need high in Attractive offers.
39% retailers need high in attractive Packing, 40% retailers need high in credit
system, 38% retailers need high in customer demand, 35% retailers need
moderate on Profit Margin, 41% retailers need high in quality, 44% retailers
need high flexibility Replacement, 44% retailers need high in visual Display.
0%
10%
20%
30%
40%
50%
35%35% 39% 40% 38% 41% 44% 44%
less
Reasona
ble
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 75
Table No.24 Representing the place order In month of
Aashirvaad svasti ghee
SI. N0 Particulars Frequency Percent
1 once in a Week 10 6.7
2 Every fortnight 28 18.7
3 once in a month 13 8.7
4 No Response 99 66
Total 150 100
Graph No. 24 Representing the place order In month of
Aashirvad swasti ghee
Interpretation:
From the above graph it can be interpreted that 19% Retailers are place order
Aashirvaad ghee in Every fortnight. 8% Retailers are place order in once in a
month.
7% Retailers are place Order once in a week.
7%
19%
8%
66%
Chart Title
once in a Week
Every fortnight
once in a month
No Response
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 76
Table No.25 Representing the When retailer order the Size lot
of ITC Aashirvaad ghee
When retailer order the Size lot of ITC Aashirwad ghee
SI. No Particulars Frequency Percentages
1 1-20 packs 44 29.3
2 20-50 packs 1 0.7
3 No Response 105 70
Total 150 100
Graph No.25 Representing the When retailer order the Size lot
of ITC Aashirvaad ghee
INTERPRETATION: From the above graph it can be interpreted that 29%
of Retailers order the size lot of Aashirvaad ghee 1-20 packs. And rest of 1%
retailers ordered 20-50 packs.
29%
1%
70%
size lot of ITC Ghee
1-20 packs 20-50 packs No Response
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 77
Table No.26 Representing the Mode of advertisement to
promote ITC Aashirvaad svasti ghee
Mode of advertisement to promote ITC Aashirvaad svasti
ghee
SI.No Particulars
Responses
N Percent
1 Social media & Print media 33 13%
2 Hoardings 12 5%
3 Television 106 40%
4 Word Of Mouth 111 42%
5 Others 1 0%
Total 263 100.00%
Graph No.26 Representing the Mode of advertisement to promote ITC
Aashirvaad svasti ghee
INTERPRETATION: From the above graph it can be interpreted that
different mode of advertisement to promote the Aashirvaad ghee to increase
sales In Respective outlets.
42% Retailers advice to advertise in word of mouth. 40% retailers are advice
Television is best effect to aware the Aashirvaad ghee. 13% Retailers are
advice social media and print media is effect to spread all over the city about
Aashirvaad ghee. 5% retailers only advice hoarding is good to promote
Aashirvaad ghee.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Social media
& Print
media
Hoardings Television Word Of
Mouth
Others
13%
5%
40% 42%
0%
Percentage
Series1
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 78
Table No.27 Representing the vindication of the success of
ITC’s distribution channels
SI.
No
Particulars Easy
Replacement
Loyalty
To
Retailers
Offers for
Quality
Products
On
Time
Delivery
Solving
Retailers
Complaints
T
1 no response 13% 14% 13% 13% 13% 1
2 strongly
Disagree
3% 5% 3% 1% 3% 3
3 Neither
agree or
Disagree
13% 43% 18% 5% 27% 2
4 Agree 60% 33% 57% 43% 52% 4
5 Strongly
Agree
11% 5% 9% 38% 5% 1
Total 100% 100% 100% 100% 100% 1
Graph No.27 Representing the vindication of the success of
ITC’s distribution channels
INTERPRETATION: From the above graph it can be interpreted that
majority of Retailers (60%) are agree in Easy Replacement. And 43%
Retailers are Neither agree or Disagree to the loyalty to Retailers. 57%
Retailers are agree to offers for quality products. 43% Retailers are agree to on
time Delivery. 52% Retailers agree to solving Retailers complaints.
0%
10%
20%
30%
40%
50%
60%
70%
43%
60% 57%
43%
52%
Percentage
no response
strongly Disagree
Neither agree or Disagree
Agree
Strongly Agree
A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors
DVHIMSR DHARWAD Page 79
Table No.28 representing the Level of Satisfaction towards
usage of Aashirvaad svasti Ghee
SI.
No
Particulars Packaging Pricing availability Discount Quality
and
Quantity
Visual
Display
T
1 Dissatisfied 29% 5
2 Neither
Satisfied or
Dissatisfied
36% 59% 34% 36% 6% 8% 3
3 Satisfied 64% 12% 66% 64% 86% 60% 5
4 Highly
Satisfied
8% 32% 7
Total 100% 100% 100% 100% 100% 100% 1
Graph No.28 Representing the Level of Satisfaction towards
usage of Aashirvaad svasti Ghee
INTERPRETATION:
From the above graph it can be interpreted that represent the level of
satisfaction towards usage of Aashirvaad ghee. Majority of Retailers (64%)
are satisfied with Packaging, 59% Retailers are neither satisfied or dissatisfied
in pricing. 66% of Retailers are satisfied in availability.
64% Retailers are satisfied with Discount. 86% retailers are satisfied with
quality and quantity of product. 60% of retailers are satisfied with visual
display of ITC Ghee.
0
0.2
0.4
0.6
0.8
1
Dissatisfied
Neither Satisfied or
Dissatisfied
Satisfied
Highly Satisfied
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report
ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report

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ITC's Aashirvaad Ghee V/S other Ghee brands comparison Report

  • 1. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 1 Dr. D. Veerendra Heggade Institute of Management Studies and Research Vidyagiri, Dharwad – 580 004 Approved by AICTE, New Delhi & Affiliated to Karnatak University, Dharwad Report on Summer In-plant Training A STUDY ON COMPARATIVE ANALYSIS OF AASHIRVAAD GHEE AND ITS COMPITETORS At M/s HUBLI CIGERATTE CENTRE, HUBLI By Mr. Prashanth Hanagal Reg. Number: 17MBA472 MBA II Semester Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration. INTERNAL GUIDE EXTERNAL GUIDE Prof. Sunil Hiremat Mr. Umesh.B Asst. Professor Sales Executive AUGUST 2018
  • 2. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 2 DECLARATION I hereby declare that this Report on Summer In-plant Training titled ‘A STUDY ON comparative analysis of ITC’s Aashirvaad Ghee and Its competitors conducted at HUBLI CIGERATTE CENTRE, Hubli submitted by me to Karnatak University, Dharwad, is a record of an original and independent study undertaken during June 2018 to August 2018 under the guidance and supervision of Mr. Umesh.B Area Executive at HUBLI CIGERATTE CENTRE, Hubli & Prof.Sunil Hiremat, Assistant Professor at Dr. D Veerendra Heggade Institute of Management Studies and Research, Vidyagiri, Dharwad. I further declare that this project has not formed the basis for award of any other degree/ diploma of other University/ Institution. Date: Prashanth Hanagal Place: Dharwad Signature and Name of the Student
  • 3. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 3 ACKNOWLEDGEMENT At the outset, I would like to take this opportunity to acknowledge the support and cooperation of all those who enabled successful completion of this Summer In-plant Training. I have immense pleasure in expressing my deepest gratitude to our Prof. Sunil Hiremat for his guidance, which goes a long way to set my future career. I would like to extend my sincere gratitude to Mr. Umesh. B, Area Executive and Chetan Sales Executive of Hubli cigarette centre pvt ltd. and their team under whose guidance I undertook this project and completed successfully. I extend my thanks to Prof.shrivatsav joshi, Assistant Professor, Dr. Anil Yaragatti, Dean Academic and other faculty members of our Institute for extending valuable advice and support during the project period. Last but not the least there were so many who shared valuable information that helped in successful completion of this project all of whom I also wish to thank. Prashanth.H
  • 4. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 4 CONTENTS CHAPTER TITLE PAGE NO A LIST OF TABLES I B LIST OF GRAPHS II C LIST OF FIGURES III D LIST OF CHARTS IV E EXECUTIVE SUMMURY V 1 INTRODUCTION 1 2 ORGANIZATION STUDY a) COMPANY PROFILE b) ORGANIZATION PROFILE c) THEORETICAL BACKGROUND 4-32 3 RESEARCH DESIGN 33-39 4 DATA ANALYSIS AND INTERPRETATION 40-67 5 FINDINGS AND SUGGESTIONS 68-70 6 CONCLUSION 71 7 ANNEXURE  BIBLIOGRAPHY  QUESTIONNAIRE 72-79
  • 5. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 5 A.LIST OF TABLES SL.NO PARTICULARS PAGE NO. 1 The Table Representing the types of Outlets 40 2 Table representing the total turnover of outlet per month 41 3 Table representing the total turnover of ghee in outlets 42 4 Table representing the ghee brands in Respective outlets 43 5 Table representing the Customers are aware of ITC Aashirvaad svasti ghee 44 6 Table representing the reasons of not aware of ITC ghee 45 7 Table representing the maintain the stock of ITC Aashirvaad svasti ghee 46 8 Table representing the Reasons for not stocking of ITC ghee in outlet 47 9 Table representing the customer intuition on ITC Aashirvaad swasti ghee 48
  • 6. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 6 10 Table representing the Association with ITC company 49 11 Table representing the more profit margin ghee companies 50 12 Table representing the perception of ITC ghee Regarding price compare to other ghee brands 51 13 Table representing the Perception of ITC ghee brand Regarding quality 52 14 Table representing the Perception of ITC ghee brand Regarding Availability 53 15 Table representing the Ranking of ghee brands 54 16 Table representing the Problems face while selling the ITC Aashirvaad svasti Ghee 55 17 Table representing the Support receiving from company to promote ITC ghee 56 18 Table representing the Support Not receiving from company to promote ITC ghee 57 19 Table representing the Receive stock while ordering on time and per schedule 58
  • 7. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 7 20 Table representing the Reasons for Not Receive ITC ghee stock while ordering on time 59 21 Table representing the ITC push activities 60 22 Table representing the priority of Ghee brands in outlets for more stock 61 23 Table representing the Reasons required to keep stock of ITC ghee in outlets 62 24 Table representing the place order In month of Aashirvaad swasti ghee 63 25 Table representing the When retailer order the Size lot of ITC Aashirvaad ghee 64 26 Table representing the Mode of advertisement to promote ITC Aashirvaad svasti ghee 65 27 Table representing the vindication of the success of ITC’s distribution channels 66 28 Table representing the Level of Satisfaction towards usage of Aashirvaad svasti Ghee 67
  • 8. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 8 B.LIST OF GRAPHS SL.NO PARTICULARS PAGE NO. 1 Graph Representing the types of Outlets 40 2 Graph Representing the total turnover of outlet per month 41 3 Graph Representing the total turnover of ghee in outlets 42 4 Graph Representing the ghee brands in Respective outlets 43 5 Graph Representing the Customers are aware of ITC Aashirvaad svasti ghee 44 6 Graph Representing the reasons of not aware of ITC ghee 45 7 Graph Representing the maintain the stock of ITC Aashirvaad svasti ghee 46 8 Graph Representing the Reasons for not stocking of ITC ghee in outlet 47 9 Graph Representing the customer intuition on ITC Aashirvaad swasti ghee 48 10 Graph Representing the Association with ITC company 49 11 Graph Representing the more profit margin ghee companies 50
  • 9. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 9 12 Graph Representing the perception of ITC ghee Regarding price compare to other ghee brands 51 13 Graph Representing the Perception of ITC ghee brand Regarding quality 52 14 Graph Representing the Perception of ITC ghee brand Regarding Availability 53 15 Graph Representing the Ranking of ghee brands 54 16 Graph Representing the Problems face while selling the ITC Aashirvaad svasti Ghee 55 17 Graph Representing the Support receiving from company to promote ITC ghee 56 18 Graph Representing the Support Not receiving from company to promote ITC ghee 57 19 Graph Representing the Receive stock while ordering on time and per schedule 58 20 Graph Representing the Reasons for Not Receive ITC ghee stock while ordering on time 59 21 Graph Representing the ITC push activities 60 22 Graph Representing the priority of Ghee brands in outlets for more stock 61 23 Graph Representing the Reasons required to keep stock of ITC ghee in outlets 62
  • 10. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 10 24 Graph Representing the place order In month of Aashirvaad swasti ghee 63 25 Graph Representing the When retailer order the Size lot of ITC Aashirvaad ghee 64 26 Graph Representing the Mode of advertisement to promote ITC Aashirvaad svasti ghee 65 27 Graph Representing the vindication of the success of ITC’s distribution channels 66 28 Graph Representing the Level of Satisfaction towards usage of Aashirvaad svasti Ghee 67 C. LIST OF FIGURES FIG.NO PARTICULARS PAGE NO. 1 The key brands of ITC across segments 12 2 ITC Food Products 13 3 ITC’s Ghee Product profile 28 D.LIST OF CHARTS CHART .NO PARTICULARS PAGE. NO 1 HUBLI CIGARETTE AGENCY - ADMINISTRATION CHART 29 2 CHANNEL FUNCTIONS 34
  • 11. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 11 Executive summary The company is develops a distribution strategy for FMCG products considering the latest technological advancements as well as the shift in demand-side preferences and applies the result on an existing product aiming for a significant increase in customers. After providing the basic knowledge concerning marketing and distribution, an in-depth analysis of the possible distribution channels, including distribution through a branch network, agents, the Internet, mobile Internet and independent asset managers, as well as the multi-channel distribution strategy is made. This analysis is conducted through gathering and comparing the current empirical and theoretical research, in order to gain an insight into the various options and trends in today‘s markets from the demand, as well as from the supply side of view. The demographic differences in the adoption of innovative channels, the level of consulting provided, the perceived safety and the trust are found to be the critical properties of a distribution channel. The results from the analysis conducted are applied on the financial product in the second part of the thesis. The target the state distribution strategy is derived after a thorough examination of the product as well as the targeted customer segment. The stated distribution strategy aims to strengthen and extend existing channels by reducing prices and increasing incentives to sell or sales personnel as well as creating and implementing a new online distribution channel, in order to obtain a multi-channel distribution. The resulting strategy allows the food products to be advertised to a broader public. The provided good service will allow the strategy to be implemented effectively. The strategy ensures an effective push of the FMCG products sales and the flexibility of the management in order to reduce reaction time on new market trends.
  • 12. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 12 FMCG INDUSTRIES IN INDIA Introduction Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy with Household and Personal Care accounting for 50 per cent of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. The urban segment (accounts for a revenue share of around 40 per cent) is the largest contributor to the overall revenue generated by the FMCG sector in India and recorded a market size of around US$ 52.75 billion in 2017-18. However, in the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50 per cent of total rural spending. Market Size The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per annum, which is likely to boost revenues of FMCG companies. In 2016-17, revenue for FMCG sector have reached US$ 49 billion and is expected to grow at 9-9.5 per cent in FY18 supported by expectations of the total consumption expenditure reaching nearly US$ 3,600 billion by 2020 from US$ 1,595 billion in 2016. Direct selling sector in India is expected to reach Rs 159.3 billion (US$ 2.5 billion) by 2021, if provided with a conducive environment through reforms and regulation. CURRENT GROWTH RATE OF FMCG: The consumer durables market is expected to reach US$ 12.5 billion in 2015 and US$ 20.6 billion by 2020. Urban markets account for the major share (65 per cent) of total revenues in the consumer durables sector in India. There is a lot of scope for growth from rural markets with consumption expected to grow in these areas as penetration of brands increases. Also, demand for durables like refrigerators as well as consumer electronic goods are likely to witness growing demand in the coming years in the rural markets as the government plans to invest significantly in rural electrification. The FMCG sector has
  • 13. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 13 grown at an annual average of about 11 per cent over the last decade. The overall FMCG market is expected to increase at (CAGR) of 14.7 per cent to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7 per cent to reach US$ 100 billion during 2012-2025.Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 %) and fabric care (12%) come next in terms of market share. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the consumer market. The Government of India's policies and regulatory frameworks such as relaxation of license rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per cent in single-brand retail are some of the major growth drivers for the consumer market. Urban segment the biggest contributor to the sectors revenue The urban segment is the biggest contributor to the sector, accounting for two- thirds of total FMCG sector revenue. The semi-urban and rural segments which are growing at a brisk pace, currently account for 33.5% of revenues of the FMCG sector. FMCG products account for 53% of total rural spending. Lower priced packs have increased the penetration of the FMCG sector in rural India. The sectors that are witnessing high growth include salty snacks, refined edible oil, healthcare products, iodized salt etc. Hair oils, toothpastes and shampoos have quite high penetration in both urban and rural markets while the sales of instant noodles, floor cleaners and hair dyes is increasing in rural markets due to higher awareness. There are a total of 12-13 million retail outlets in India, with kirana stores being the majority of them. Some of the major FMCG players in India include ITC, HUL, Nestle, Dabur, Godrej, Consumer, etc. Government initiatives: Some of the major initiatives taken by the government to promote the FMCG sector in India are as follows:
  • 14. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 14 In the Union Budget 2017-18, the Government of India has proposed to spend more on the rural side with an aim to double the farmer’s income in five years; as well as the cut in income tax rate targeting mainly the small tax payers, focus on affordable housing and infrastructure development will provide multiple growth drivers for the consumer market industry. The Government of India’s decision to allow 100 per cent Foreign Direct Investment (FDI) in online retail of goods and services through the automatic route has provided clarity on the existing businesses of e-commerce companies operating in India. With the demand for skilled labour growing among Indian industries, the government plans to train 500 million people by 2022 and is also encouraging private players and entrepreneurs to invest in the venture. Many governments, corporate and educational organizations are working towards providing training and education to create a skilled workforce. The Government of India has drafted a new Consumer Protection Bill with special emphasis on setting up an extensive mechanism to ensure simple, speedy, accessible, affordable and timely delivery of justice to consumers. The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the FMCG products such as Soap, Toothpaste and Hair oil now come under 18 per cent tax bracket against the previous 23-24 per cent rate. TOP 10 FMCG COMPANIES 1. ITC (Indian Tobacco Company) 2. Hindustan Unilever Ltd. 3. Nestle India 4. GCMMF(AMUL) 5. Dabur India 6. Asian Paints(India) 7. Cadbury India 8. Britannia Industries
  • 15. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 15 9. Procter & Gamble Hygiene and Health Care 10. Marico Industries COMPANY PROFILE INTRODUCTION TO THE COMPANY: ITC Limited or ITC is an Indian company based in Kolkata, West Bengal. Its diversified business includes five segments: Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology. Though, cigarette business contributes more than 80% of the profits of the company, 80% of the capital is invested in the non-tobacco businesses. Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974. The periods in the name were removed in September 2001 for the company to be renamed as ITC Limited. The company completed 100 years in 2010 and as of 2012-13, had an annual turnover of US$8.31 billion and a market capitalization of US$ 50 billion. It employs over 30,000 people at more than 60 locations across India and is part of Forbes 2000 list. ITC is one of India's foremost multi-business enterprise with a market capitalization of US $ 50 billion and Gross Sales Value of US $ 10 billion.
  • 16. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 16 ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and as 'India's Most Admired Company' in a survey conducted by Fortune India magazine and Hay Group. ITC also features as one of world's largest sustainable value creator in the consumer goods industry in a study by the Boston Consulting Group. ITC has been listed among India's Most Valuable Companies by Business Today magazine. The Company is among India's '10 Most Valuable (Company) Brands', according to 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 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. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners ($ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Ltd, provides IT services and solutions to leading global customers. ITC InfoTech has carved a niche for itself by addressing customer challenges through innovative IT solutions.
  • 17. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 17 Its beginnings were humble. 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 Rs310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. The Company's ownership progressively indianised, and the name of the Company was changed to ITC 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. The Company now stands rechristened 'ITC Limited'. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. 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'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India.
  • 18. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 18 In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveragingitsagri-sourcing competency, ITC set up the Agri- Business Division for export of agri-commodities. The Division is today one ofIndia's largest exporters. ITC's unique and now widely acknowledged e- Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'ChoupalSaagar' was inaugurated in August 2004 at Sehore. On the
  • 19. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 19 rural retail front, 24 'ChoupalSaagar' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand “Paper craft” was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand “Classmate” in 2003. “Classmate” over the years has grown to become India’s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “Paper craft” Brand. “Paper craft” offers a diverse portfolio in the premium executive stationery and office consumables segment. Paper craft entered new categories in the office consumable segment with the launch of Text liners, Permanent Ink Markers and White Board Markers in 2009. 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 Club life evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman. 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. Today ITC InfoTech is one of India’s fastest growing global IT and IT-enabled services companies and has
  • 20. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 20 established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. 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 just seven years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. 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, Mangaldeepa, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis(incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular Agarbattis brands include 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 (InizioHomme) 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
  • 21. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 21 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. Products and brands Foods: ITC's major food brands include Kitchens of India; Aashirvaad, B natural, Sunfeast, Candyman, Bingo! and Yippee!. ITC is India's largest seller of branded foods with of over Rs. 4,600 crore in 2012-13. It is present across 6 categories in the food business including, snack foods, ready-to-eat meals, fruit juices, dairy products and confectionary.
  • 22. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 22 Other businesses Personal care : Personal care products include perfumes, haircare and skincare categories. Major brands are Fiama Di Wills, Vivel, Essenza Di Wills, Superia and Engage. Stationary: Brands include Classmate, PaperKraft and Colour Crew. Launched in 2003, Classmate went on to become India's largest notebook brand in 2007. Hotels: ITC's Hotels division (under brands including WelcomHotel) is India's second largest hotel chain with over 90 hotels throughout India. ITC is also the exclusive franchisee in India of two brands owned by Sheraton International Inc. Brands in the hospitality sector owned and operated by its subsidiaries include Fortune Park Hotels and WelcomHeritage Hotels. Cigarettes ITC Ltd sells 81% of the cigarettes in India, where 275 million people use tobacco products and the total cigarette market is worth close to $11 billion (around Rs. 757399.4 million) ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Ice Burst, Mild & Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal. Safety Matches and Agarbattis: Ship, i Kno and Aim brands of safety matches and the Mangaldeep brand of agarbattis (Incense Sticks). Paperboard: Products such as specialty paper, graphic and other paper are sold under the ITC brand by the ITC Paperboards and Specialty Papers Division like Classmate product of ITC well known for their quality .
  • 23. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 23 Packaging and Printing: ITC's Packaging and Printing division operates manufacturing facilities at Haridwar and Chennai and services domestic and export markets. Information Technology: ITC operates through its fully owned subsidiary ITC Infotech India Limited, Business area of the company includes:  Cigarettes  Food  Lifestyle Retailing  Personal Care THE ITC WAY ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITC’s corporate strategies are: 1) 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. 2) Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agriculture Business and Information Technology. 3) Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. 4) Ensure that each of its businesses is world class and internationally competitive.
  • 24. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 24 5) Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC are various businesses. 6) Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses Following diagram shows the key brands of ITC across segments:- Fig No: 1 ITC FOOD PRODUCTS ITC's Branded Packaged Foods business is one of the fastest growing foods businesses in India, driven by the market standing and consumer franchise of its popular brands - Aashirvaad, Bingo! Sunfeast, Fabelle, Sunbean, Yippee! Kitchens of India, B Natural, ITC Master Chef, Farmland, mint-o, Candyman and GumOn. The Foods business is today represented in multiple categories in the market - Staples, Spices, Biscuits, Confectionery & Gums, Snacks, Noodles & Pasta, Beverages, Dairy, Ready to Eat Meals, Chocolate, Coffee and Frozen Foods.
  • 25. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 25 ITC's uncompromising commitment to the health and safety of its consumers ensures adherence to the highest levels of quality, safety and hygiene standards in manufacturing processes and in the supply chain. All ITC-owned manufacturing units are Hazard Analysis and Critical Control Point (HACCP) certified. The quality performance of all manufacturing units is monitored continuously online. Going beyond process control, ITC ensures that quality standards are scrupulously adhered to while choosing ingredients that go into the preparation of its food products. ITC's Foods brands delight millions of households with a wide range of differentiated, value-added products developed by leveraging ITC's in-house R&D capabilities, relevant consumer insights, a deep understanding of the Indian palate gained from its Hotels business, its agri-sourcing & packaging strengths, exciting, innovative communication and an unmatched distribution network. The business continues to invest in every aspect of manufacturing, distribution and marketing to ensure that it can leverage emerging opportunities and fulfill its aspiration of being the most trusted provider of Branded Packaged Foods in the country. ITC's Foods business also exports its products to the key geographies of North America, Africa, Middle East and Australia. Fig No: 2
  • 26. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 26 Products profile Sunfeast: In July 2003, ITC made a foray into the biscuits market by launching the Sunfeast range of biscuits. Since then, Sunfeast biscuits have always stood for quality and are known for offering innovative and wholesome biscuits. Sunfeast connotes happiness, contentment, satisfaction and pleasure. Within a span of 12 years, Sunfeast has well-established presence in almost all categories of biscuits. Sunfeast Biscuits straddle all segments of the market led by Dark Fantasy at the premium end. High quality married with exciting innovations has helped drive this category. Dark Fantasy Choco Fills has wowed the Indian consumer with its innovative centre-filled format and high-quality packaging. In addition, ITC has launched Sunfeast Farmlite Digestive All Good biscuit - India's Only Digestive biscuit with No Maida & No Added Sugar. This biscuit is made from whole wheat flour of Aashirvaad Atta which makes it naturally rich in fibre content and brings alive ITC's commitment to provide delightful experiences to every consumer. Sunfeast Dark Fantasy Yumfills Cake - A delicious soft pie cake, filled with luscious crème & enrobed generously by smooth and rich choco layer.
  • 27. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 27 AASHIRVAAD: ITC entered the branded Atta market with the launch of Aashirvaad Atta in May 2002 and within a short span became the number one in branded packaged atta across the country. 'Aashirvaad' promises the Indian housewife the joy of providing her family with the most delightful home-made rotis, made from the finest quality atta. ITC uses the sourcing strength of its e-Choupals to buy wheat directly from the farmers to deliver happiness to the Indian consumer - Khusiyaan Chun chun ke (Happiness Handpicked) - Ek Vaada Sacha Sa - Shudhata Aur Sampoornata ka ! (A True Promise of Purity and Wholesomeness. 'Aashirvaad' is made from finest quality wheat that ITC has the unique capability to source through its e-Choupal network. BINGO:
  • 28. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 28 Bingo! was launched in March 2007 with a wide range of exciting packaged salted snacks. The range includes multiple flavor variants of Potato Chips & Finger Snacks. The brand is associated with youth, fun and excitement. It fulfils the consumers need for variety and novelty in snacks. At present Bingo! has 4 sub-brands in its portfolio, each of which have unique values based on consumer need differentiation. Kitchens in India: - Ready-to-eat gourmet cuisine Kitchens of India specialises in bringing to life age-old Indian dishes from across the country crafted by the Master Chefs of ITC's hotels, especially from the gourmet cuisines of Dum Pukht, Bukhara and Dakshin. All Kitchens of India products help consumers recreate an exclusive fine-dining experience in their own homes. The Kitchens of India delectable treats are crafted with 100% natural ingredients and free of any preservatives. The age-old cooking techniques used by our Master Chefs add a unique taste that captures the essence of a meal that is nothing short of a royal Indian treat. Kitchens of India meals are packaged in 'keep fresh' packs, so that you can enjoy in an instant, what has taken centuries to perfect. Kitchens of India has a strong presence in both the Indian and overseas markets. So, no matter which part of the globe you are in, you can always savor the taste of authentic Indian gourmet cuisine.
  • 29. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 29 Our range spans gastronomic delights of India in its entirety, from the far- flung regions of the northwest frontier to the coastal regions of the south. From exotic vegetarian and non-vegetarian dishes, to authentic Biryanis and delicious halwas, Kitchens of India assures a complete dining experience. Yippee Noodles and Pastas: ITC entered the instant noodles segment with the launch of Sunfeast Yippee! in 2010. The sourcing and blending expertise that has made Aashirvaad India's No 1 branded Atta has been leveraged to create a delightful noodle block. The block being round in shape does not need to be broken while cooking, providing really long & slurpy noodles. A special scientific process ensures that the noodles does not lump even 30 minutes after cooking. Yippee! instant noodles is available in four lip smacking variants - Magic Masala, Classic Masala, Power Up Masala and Mood Masala. Magic Masala is a special masala created by ITC with spices and also has five different types of dehydrated vegetables. Classic Masala is the Classical Indian Masala flavour with a perfect blend of spices. Power Up Masala is made from whole wheat atta and has vegetable additions in every strand. Mood Masala is a differentiated offering with 2 Masala Mix sachets which allows you to choose your taste every time; thus making it a perfect partner for all moods! B NATURAL:
  • 30. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 30 ITC entered the Fruit-based juices and beverages market with the launch of B Natural Fruit beverages in January 2015. B Natural is the only brand in India to launch packaged fruit beverages made directly from fruit & not from concentrate. The proposition "Made from fruit & not from concentrate" is promoted by Mrs. Shilpa Shetty Kundra, the brand ambassador who is well known movie star celebrity with established credentials as a Fitness and Yoga enthusiast B Natural's products have the goodness of fruits and are luscious, thick and taste closest to the natural taste of fruits. B Natural portfolio currently has the first ever 100% Pomegranate juice. In Nectars range, it currently has 12 flavors Mixed Fruit, Guava, Litchi, Pomegranate, Orange, Mango, Pineapple, Apple, Jamun and the very regionally differentiated variants Bael for North & East, Phalse for North & West and Punjab da Kinnow for North. B Natural Festive Delight portfolio comprises of 6 novel packs. "Lamp of Purity" is the first ever gift pack by B Natural which can be converted to a Lantern. MINT-O: ITC launched 'Mint-O Fresh' in October 2004. Its launch extended the footprint of the 'Mint-O' brand in line with the strategy of adding excitement and contributing to the growth of the confectionery category. 'Mint-O Fresh' is especially targeted at the adult consumer creating a basket of mint-based
  • 31. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 31 products. Mint-O Fresh comes in an assortment of three cool and refreshing mints with varying intensity of mints. - Max, Premium and Ultra. Another offering in the adult mint confectionery segment is Mint-O GOL, in the 'Chews' sub-segment. A brand for young adults, Mint-O GOL appeals to both men and women, offering a never before "refreshing indulgence". Yet another addition to the Mint-O portfolio is the 'Mint-O Ultramintz'- a sugar-free extra-strong mint. Available in select markets, Mint-O Ultramintz has received encouraging consumer response. CANDYMAN: ITC launched the 'Candyman' range of confectioneries in August 2002, led by the 'Candyman Fruitee Fun' range of assorted fruit flavours ('Wild Banana', 'Pineapple Punch', 'Orange Josh' and 'Mango Delite'). The brand was further strengthened with the launch of 'Candyman Natkhat Mango'. Candyman also entered the coffee toffee segment with the successful launch of 'Candyman Cofitino' in November 2005. Candyman's new offer in 2007 was the highly successful Choco Double eclairs which delighted the consumers with chocolate on the inside and the outside. In line with the strategy of providing innovative flavours and formats to consumers, Candyman Toffichoo Strawberry - a luscious fruit flavored soft and chewy toffee - was launched in 2009. Another significant offering from Candyman in 2013, Candyman Crème Lacto comes with a crunchy Caramel shell filled with rich crème center.
  • 32. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 32 The launch of ‘Candyman Jellicious' in 2013 marked ITC's foray in the Jelly segment. These pulpy fruity jellies are available in the market in strawberry, mango and orange flavours. In 2016, ITC further strengthened its portfolio with the launch of Jelimals that comes in an innovative MUP pack. These are soft delicious gummy bears that come in four flavors - mango, strawberry, orange and pineapple, aimed at providing a fun filled experience to kids. Candyman's purpose has been to provide best in class experience to cater to the "sweet tooth" of its consumers. Widening the scope, Candyman launched a slew of exciting offers in 2017 that tingle the taste buds and add a zing in the day of kids and adults alike. Tadka, spicy center-filled candies, was launched in mango and pineapple flavours. Crunchy, the first-ever layered candy in India, crumbles instantly into many pieces and triggers a ‘peanut' explosion in the mouth. Clear candy - shiny, smooth and transparent candies - comes in two exciting flavours- raw mango and ripe mango. Duochoo is a two-color, soft, chewy toffee with the feel of rich strawberry milkshake. Milky eclairs, launched in March 2018, provides the experience of chewing into the soft caramel shell to reveal a delicious milky crème center.The highlight launch of 2018 is Tadka Time: a one-of-a-kind candy in India, extending Candyman's offerings in Multi Unit Packs. The result of top innovation by Candyman, these soft jelly beans are coated with masala, and come in two flavors - masala mango and masala cola. Fruity Delite, the latest offering, is available in 3 fantastic flavours: litchi, mango, and blackcurrant in the form of clear, glossy candies that easily glide on the tongue to give you a delightful fruity experience. Gumon
  • 33. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 33 ITC launched 'GumOn' Chewing Gum in September 2014. GumOn's launch marked the entry of ITC into the category of gums. A Long Lasting Chewing gum, GumOn is available in a refreshing Spearmint flavour and juicy Strawberry flavour. 'GumOn' is targeted at the Teens and Young Adults offering them a chewing gum which truly delivers on its promise of Long Lasting Flavour. FABELLE: Fabelle chocolates are ITC's premier offering in the luxury chocolate space. Made from cocoas sourced from the most exotic cocoa growing regions of the world and combined with unique ingredients, Fabelle offers an immersive and participative chocolate experience. Launched in April 2016, Fabelle has a range of exquisitely handcrafted boxed chocolates such as Fabelle Elements - intricately crafted pralines inspired by the elements of nature, Fabelle Ganache - velvety soft cubes of exotic cocoas delicately churned with butter & fresh cream and Fabelle As Your Like It - personalized chocolate cup creations offering myriad possibilities of fillings and toppings, Gianduja - a nutty, melt in mouth delicacy and Single Origin Cacaos - an assortment of 6 rich dark chocolate bars made with cocoas sourced from 6 different countries.
  • 34. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 34 SUNBEANS: ITC forayed into the branded coffee category in July 2016 with the launch of Sunbean Gourmet Coffee. To the discerning coffee consumer, Sunbean Gourmet Coffee presents exquisite blends of the choicest Indian & international bean varietals. It is the culmination of an extensive search across the world to select some of the finest beans which were then expertly blended by ITC's master-blenders with beans from some of India's best coffee growing regions to deliver an unparalleled coffee experience. Sunbean Gourmet Coffee is available in two delightful variants - Nicamalai and Panagiri. Sunbean Nicamalai, a blend of the choicest coffee beans from Nicaragua and Anamalai, is a fruity-sweet aromatic coffee with a creamy expression. Sunbean Panagiri, a blend of selected coffee varietals from Panama and Baba Budangiri, is an intensely fragrant coffee with a pleasant roasted nutty taste and a hint of chocolate. Sunbean Gourmet Coffee is available in ITC luxury collection hotels across the country and can also be purchased at select modern trade outlets and on e- commerce portals. COMPETITORS OF ITC’S FOOD PRODUCTS 1) HUL
  • 35. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 35 Hindustan Unilever Limited (HUL) is the largest Fast Moving Consumer Goods Company located in India. It has a rich 80 years of legacy in this field. Almost, nine out of ten Indian households make use of the products of HUL. The company works daily for a better future to make people feel and look good with their various brands and services. The main product includes cleaning agents, food products, personal care products, and water purifiers. It has about 35 brands which span across 20 distinct categories like detergents, soaps, skin care, deodorants, tea, coffee, ice cream, packaged food, and many more. The main strength of this company is its innovation. The company’s research center continuously works and develops innovative products which make HUL lead the consumer goods market. As HUL is considered as a market leader in consumer goods, it is indeed a top ITC competitor. 2) NESTLE Nestle is a food processing industry located in Switzerland. Established in the year 1866, Nestle is the largest food company in the world based on revenue. The various products of Nestle include medical food, baby food, breakfast cereals, bottled water, tea, coffee, dairy products, confectionery, frozen food, ice cream, snacks, and pet foods.
  • 36. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 36 The company has about eight factories and many co-packers. It is a lively company which provides their consumers with various products of global standards. The company has about 200 brands that range from global to local ones and their products are available in almost 191 countries. The research and development center of Nestle is the world’s largest food and nutrition research organization. Due to their broad portfolio of products, Nestle is considered a top ITC competitor. 3) DANONE A popular French food product company, Danone is based out in Paris. It operates in food and beverage industry worldwide. The company has their business operations through their four segments, EDP Norma, EDP International, Waters, and Specialized Nutrition. It offers various products like Yogurt, almond and soy milk, ice creams, powdered proteins, and many more. The company also provides oral and tube feeding products which are used for the nutritional treatment of babies and children; hypoallergenic products, liquid oral nutritional supplements for babies and children. The products by Danone are produced using superior quality rawmaterials and processes. Danone’s yogurt has a top selling product and it has a good record of health benefits. Due to their products in various categories, Danone is considered a top ITC competitor.
  • 37. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 37 Awards  ITC won the Legal Era Award for the ‘Best Compliance In-House Legal Team of the Year’.  ITC’s Sankhya Data Centre, Bangalore became the first data centre in the world to get LEED® Platinum Certification from the US Green Building Council.  ITC’s production units at Bangalore, Kolkata and Saharanpur received the ‘Future Ready Factory’ Platinum Awards at the India Manufacturing Excellence Awards (IMEA) instituted by Frost & Sullivan and The Economic Times. The Pune factory was the Winner in the ‘Information Technology Leadership’ category.  The ITC factory in Munger received the 1st prize at the FICCI Water Awards (Industrial Water Use Efficiency category) 2014-15.  ITC’s Agri Business won 2 Gold awards for Best Exporter of Green Coffee and for exports to Europe from the India Coffee Trust.  Wills Lifestyle was conferred the “Super Brand” status for 2015.  Harvard Business Review ranked ITC Chairman Mr Y C Deveshwar as the 7th Best Performing CEO in the World in its January-February 2013 edition.  ITC was presented the World Business and Development Award at the Rio+20 UN Summit for its Social and Farm Forestry initiative (2012).  ITC was presented the AIM Asian CSR Award by the Asian Forum on Corporate Social Responsibility (AFCSR), in recognition of its contribution to the creation of sustainable livelihoods and fostering economic growth in rural communities in India (2012).  Chairman Mr Y C Deveshwar was conferred the Padma Bhushan by the Government of India (2011).  ITC Hotels the ‘Greenest Luxury Hotel Chain in the World’ (2011).  ITC was conferred the National Award for Excellence in Corporate Governance from the Institute of Company Secretaries of India (2007).  ITC was the 1st Indian Company and 2nd in the world to win the Development Gateway Award for its trailblazing e-Choupal initiative (2005).
  • 38. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 38 ORGANIZATION STUDY Date of Establishment 24-08-1910 Revenue 60,493 Crore (US$8.8 billion) (2017) Net income 10,471 Crore(US$1.5 billion) (2017) Carporate Address Virginia House,37, Jawaharlal Nehru Road, Kolkata 700071, West Bengal. Website: www.itcportal.com Chairperson Sanjiv Puri Business Operation Cigarettes/ Tobacco Background ITC ltd was incorporated on August 24, 1910, under the name Imperial tobacco Company of India ltd. To make cigarettes and tobacco. In 1975, the company entered the hospitality business with the acquisition of ITC Welcomegroup Hotel chola. Financials Total Income – Rs. 381208.5 Million Net profit – Rs. 96077.3 Million Company Secretary Sri.Biswa Behari Chatterjee Auditors Deloitte Haskins & Sells
  • 39. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 39 KEY EXECUTIVES: Sl. No Name Designation 1 Mr. Sanjiv Puri Chairman 2 Mr. Biswa Behari Chatterjee Company Secretary 3 Mr. Nakul Anand Executive Director 4 Mr. Suryakant Balkrishna Mainak Non Executive Director 5 Mr. Krishnamoorthy Vaidyanath Non Executive Director 6 Mr. Anil Baijal Non Executive & Independent Director 7 Mrs. AV Girija Kumar Non Executive Director 8 Mr. Shilabhadra Banerjee Non Executive & Independent Director 9 Mr. Sunil Behari Mathur Non Executive & Independent Director 10 Mrs. Meer Shankar Executive & Independent Director
  • 40. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 40 ITC’s Ghee Product profile Fig No: 3 Aashirvaad Svasti Ghee is the first product from ITC's dairy portfolio. In India, different kinds of ghee exist, catering to the regional taste palates. ITC's Aashirvaad Svasti Ghee is an outcome of R&D at the ITC Life Sciences and Technology Centre, Bangalore, which studied these different regional profiles of ghee, to craft out superior regional variants for the consumers. Pure Cow Ghee variant has been recently launched in Bangalore. It is made from pure cow's milk which is procured using ITC's own milk sourcing network. Special infrastructure has been developed & deployed to segregate cow and buffalo milk at the source and along the procurement network. The milk goes through stringent quality tests before reaching ITC's own state of the art manufacturing facility at Munger, Bihar, where best in class manufacturing practices are deployed to manufacture this ghee. Furthermore, Aashirvaad Svasti Ghee is made using a special SloCook process that enhances its natural aroma, giving it a distinct flavor profile. With its wonderful aroma, rich granular texture and consistent quality, Aashirvaad Svasti Ghee is a must have in every household. Packed in convenient pack formats - Uniquely shaped PET jars and refill pouches, Aashirvaad Svasti Ghee is available in different pack sizes. Jars are available in sizes of 200ml, 500ml and 1 Ltr packs. Refill pouches are available in 50ml, 100ml, 200ml and 500ml packs.
  • 41. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 41 HUBLI CIGARETTE AGENCY - ADMINISTRATION CHART Chart No.1 Hubli Cigarette Agency CIGARETTE DEVISION Hubli Cigarette Agency FOOD DEVISION Mahendrakar Agency For Cadbury India Ltd. Logistics office for the ITC products Logistics office for the Cadbury products
  • 42. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 42 ABOUT THE DISTRIBUTER: “HUBLI CIGARETTE AGENCY” The Hubli Cigarette Agency has the organization structure as maintained bellow. There is three sections in order to make the all functions on time. Like 1) Hubli Cigarette Agency-Cigarette division handles with all administration and the stock point for the ITC cigarette products. And computer billing section and cash collection section is come in this division. 2) Hubli Cigarette Agency-Food division handles with all type of activities which is going to help for the sales departments. In this division the sales persons are given training and targets for the months. And their monthly reports are kept for further sales analysis. And for the food products stock point is show in the organization structure. 3) Then we have the Mahendhrakar agency for Cadbury section. In this section all entire north Karnataka Cadbury sales reports. And accounts which are related to Cadbury are kept. The Mahendhrakar agency is the Super-stockiest for Cadbury India Ltd., for entire north Karnataka. 4) Then we have the logistics offices for maintaining the ITC food products. In order to make sure that supply has to happen on time without any delay. In order to fulfill this, the Hubli cigarette agency has following some management roles. They are following the FIFO (First in First Out) method for supplying the products. And placing the order to the company C&F will be based on the past performance and feature demand they will place the order to C&F. 5) Lastly we have the Cadbury logistics division. In this the all kinds of Cadbury products are kept according to the marks. And they are also provided Air condensational room for cold storage .
  • 43. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 43 SWOT ANALYSIS: Strengths: Strong Brands in various businesses: ITC is a strong house of brands with most of its products leading the segments in which they operate. ITC owns some of the most popular cigarette brands like gold flake and Classic. It also owns Sunfeast, which is amongst the top selling biscuits in India. Similarly, Aashirvaad, Yippee!, Engage, John Players and Bingo are also amongst the market leader in their respective categories. ITC’s hotel and property businesses are also doing well. ITC has successfully utilised the strengths of existing business to foray into a newer products or categories. ITC leveraged the strong distribution system of cigarette brands to create a channel for its FMCG products. Weaknesses: High Proportion of revenues from Tobacco products: ITC has been continuously making efforts to divert the FMCG business from over dependence on tobacco products and have been successful in doing so to an extent. But, tobacco products remain to be the major source of the revenue contributing more than 60% of the total revenue from FMCG businesses. Association with Tobacco Products affects the image: ITC has made a lot of efforts to improve its corporate image but the fact that ITC has many tobacco products in its portfolio impacts its corporate image. An increase in Tax on Tobacco affects revenue: Due to the increase in taxation on tobacco products, the prices and hence revenues get affected. Hotel industry has not been able to create a huge market share.
  • 44. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 44 Opportunities: Growth in Purchasing power and improving lifestyle: ITC should tap on the increasing purchasing power and improving the lifestyle of customers in India. This could help in increasing revenue for all its businesses. Tap opportunities created in the Rural Market: The growing rural market in India and other emerging nations create huge opportunities to improve the bottom-line of the company. Strategic Acquisitions: ITC should continue making the strategic acquisition like they have done in the past by acquiring Savlon from Johnson & Johnson and B Natural from Balan natural Foods. Keeping in mind that the product fits into the existing distribution network, ITC can look to increase its portfolio of products and expand its Non-Tobacco FMCG business and thereby strengthening the base of revenue. Growing Personal Hygiene as well as Food processing Industry in India: ITC should utilise its distribution channel in Personal Hygiene and Food Processing Industry to capitalise on the growth in the categories and hence increase revenue Threats: Intensifying Competition in FMCG businesses: ITC faces intense competition in its FMCG business from large MNCs like HUL and P&G and Indian FMCGs like Patanjali and Dabur. This limits the market share for ITC. Strict Regulations and Increasing Taxation in Cigarette Business: The Tobacco and Cigarette Industry in India continue to be targeted by strict government regulations and taxation system. This possesses a threat to the highly profitable Cigarette business of ITC. Increasing awareness on health: There has been an increase in the health consciousness which has resulted in the decrease in demand for tobacco products in India. Also, anti-smoking campaigns throughout the country affect the sales of cigarettes.
  • 45. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 45 THEORETICAL BACKGROUND Distribution channel The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributors, agents and retailers. Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does not reach the consumer before first going through a channel involving the farmer, exporter, importer, distributor and the retailer. Channel management The process by which a producer or supplier directs marketing activity by involving and motivating parties comprising its channel of distribution. Channel partner An individual or business that sells products or services on behalf of primary or. Examples of channel partner types might include: consultants, value added resellers, system integrators, managed service providers and Supply chain stages • Customers • Retailers • Wholesales/distributors • Manufacturers/ Plants • Component/raw material suppliers
  • 46. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 46 Channel functions Chart no.2 RETAIL INDUSTRY Retail is the process of selling consumer goods and/or services to customers through multiple channels of distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying consumers' wants and needs through a lean supply chain. Retail outlet A store that sells smaller quantities of products or services to the general public, A business that operates as a retail outlet will typically buy goods directly from manufacturers or wholesale suppliers at a volume discount and will then mark them up in price for sale to end consumers. Retailers buy goods in large quantities from manufacturers or importers, either directly or through Distribution Channel Functions Risk Taking Information Promotion Physical Distribution Negotiation Marketing Contact Financing
  • 47. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 47 a wholesaler, and then sell smaller quantities to the end-user. It arrange goods in their finished state to be sold to the customer who are prepared to pay for the pleasure of eating, wearing or experiencing particular products . The Best suitable retail outlets for selling ITC products Department store Department stores are very large stores offering a huge assortment of "soft" and "hard" goods which often bear a resemblance to a collection of specialty stores. A retailer of such store carries a variety of categories and has a broad assortment of goods at an average price. They offer considerable customer service. Discount store Discount stores are often able to drop their prices due to efficient distribution methods. Many of the largest discount stores are also chain stores, and include Wal-Mart, Target, and K-Mart. Furthermore, many of these discount stores could also be categorized as big-box stores as they grow to include more and more products sometimes even including a large grocery section Warehouse store Warehouses that offer low-cost, often high-quantity goods piled on pallets or steel shelves; warehouse clubs charge a membership fee. Variety store Variety stores offer extremely low-cost goods, with a vast array of selection. The downfall to this is that the items are not very high quality. Demographic Retailers that aim at one particular segment (e.g., high-end retailers focusing on wealthy individuals) Mom-And-Pop
  • 48. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 48 A small retail outlet owned and operated by an individual or family. It focuses on a relatively limited and selective set of products. General store A general store is a rural store that supplies the main needs for the local community. Convenience store A convenience store provides limited amount of merchandise at more than average prices with a speedy checkout. This store is ideal for emergency and immediate purchase consumables as it often works with extended hours, stocking every day. Hypermarkets It provides variety and huge volumes of exclusive merchandise at low margins. The operating cost is comparatively less than other retail formats. Supermarket A large store that sells a variety of food and household items to customers E- tailer The customer can shop and order through the internet and the merchandise is dropped at the customer's doorstep or an e-tailor. Here the retailers use drop shipping technique. They accept the payment for the product but the customer receives the product directly from the manufacturer or a wholesaler. This format is ideal for customers who do not want to travel to retail stores and are interested in home shopping. RESEARCH DESIGN NEED FOR THE STUDY The ITC‘s Food Products are sold through retailers and wholesalers in Hubli City. The study is on Comparative Analysis of ITC Aashirvaad svasti ghee and its competitors in Hubli-Dharwad city. As per my project, title is to know the effective distribution from the outlet retailers. The projects is a study on
  • 49. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 49 Aashirvaad svasti Ghee product of ITC because the Aashirvaad svasti ghee have a sales volume which is low in market so the project is being undertaken to know that there is any distribution problems or customers problems towards the ITC‘s Ghee product in the market. STATEMENT OF THE PROBLEM ITC is one of the biggest FMCG Company in India. ITC FMCG has been aggressive in recent past towards diversifying its FMCG division as to reduce its dependency on cigarette division. Food as a division is comparatively new for ITC and the company wants to establish a strong foot hold in the current highly competition Food sector through strengthening its channel of distribution. Considering the same ITC distribution at Hubli has been in line with company vision out is keen to understand the retailer‘s satisfaction towards its channel services been provided. TITLE OF THE PROJECT “A Study on comparative analysis of ITC with special reference to Aashirvaad Ghee in Hubli-Dharwad City” OBJECTIVE OF THE STUDY: 1. To Study and understand the preference of Retailers of ITC Products. 2. To Study the analyses the service provided by ITC. 3. To Study the channel wise Behavior in terms of Product moment specially with Aashirvaad svasti ghee.
  • 50. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 50 RESEARCH METHODOLOGY RESEARCH DESIGN The study was based on both primary and secondary data. The primary data was collected through printed questionnaires consisting of following categories.  Dichotomous Questions.  Completely Structured questions Using this data measurement technique, the information was collected by personal interviews. The secondary data was collected through company manuals, brochures and website of the company, trade and other public domain, referred journals discussions with company guide. The collected data was processed by using SPSS Software. Sampling Design The sample selected for survey was purely Non-probability, Convenience sample. Sampling plan Sampling unit: Retailers Sampling Method: Non-probability, Convenience Sampling. Sampling Size: 150 Respondents Sampling Plan: Structured Questionnaire Method. Sampling Area: Hubli-Dharwad city
  • 51. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 51 Tools and Techniques of Data Collection The above mentioned sampling units were interviewed personally i.e., face to face interviews were done. Questionnaire was used for data collection from Wholesalers & retailers, in order to form the effective sales and distribution to the company. SCOPE OF THE STUDY: The scope of project study by the researcher is mainly focused on the understanding of the Retailer perception & dissatisfaction. The information, which was gathered from the project study, makes the project more useful by developing the needed information for internal company records. This information also proves useful to managers in the right form at the right time in order to help them for better marketing decisions. To achieve the goals of a business, the company has to monitor the market situation on a regular basis to be updated on the market trends. Thus the survey has a great scope both for the company as well as the Brand. Limitation of the study 1. The duration of the project was limited for only 2 months 2. The geographical area for the study is limited to Hubli-Dharwad cities only 3. The report is confined to the concept of marketing management only 4. The sample for the study is limited to 150 samples only
  • 52. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 52 DATA ANALYSIS AND INTERPRETATION Table no.1 Representing the types of Outlets Sl. No Particulars No of Respondents Percentage 1 Departmental Store 4 2.7 2 Wholesaler 1 0.7 3 Retail Shop 145 96.7 Total 150 100 Graph No.1 Representing the types of Outlets INTERPRETATION: From the above graph, it can be interpreted that retailers are dealing more in ITC products than the competitors in Hubli city. In terms of total constitution of the samples considered 96.7% of the retailers, 0.7% of Wholesalers and 2.7% Departmental Store considered are dealing with ITC range of products. It is because in the Hubli city more number of retail outlets are there & the company is providing sufficient margin and the company‘s delivery time is also good. it is evident that the penetration of ITC is more in case of retail outlet than wholesale outlet and Departmental Store. 3% 1% 96% Type of Outlets Departmental Store Wholesaler Retail Shop
  • 53. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 53 Table 2: Representing the total turnover of outlet per month Graph 2: Representing the total turnover of outlet per month INTERPRETATION: From the above graph, it can be interpreted that 56% Outlets sales Turnover is Around Rs. 20,000-Rs. 50,000. 38% of Outlets sales turnover is Rs.50,000 -Rs.1,00,000 3% of outlets are less than Rs. 20,000 Sales turnover 3% of outlets are more than Rs. 1,00,000 Sales Turnover . 3% 56% 38% 3% Turnover of Outlets Rs.10,000 - Rs.20,000 Rs.20,000- Rs.50,000 Rs.50,000 - Rs.1,00,000 More than Rs.1,00,000 total turnover of outlet per month SI. No particulars No of Respondents Percent 1 Rs.10,000 - Rs.20,000 5 3.3 2 Rs.20,000- Rs.50,000 84 56 3 Rs.50,000 - Rs.1,00,000 57 38 4 More than Rs.1,00,000 4 2.7 Total 150 100
  • 54. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 54 Table No 3. Representing the total turnover of ghee in outlets total turnover of ghee in outlet Sl.No Particulars No of Respondents Percentage 1 below Rs.5,000 126 84 2 Rs.5,000 to Rs.10,000 21 14 3 Rs.10,000 to Rs.30,000 3 2 Total 150 100 Graph No.3 Representing the total turnover of outlet per month INTERPRETATION: In the above graph it can be interpreted that Monthly sales Turnover of Ghee as per the retailers information the Ghee sales is low as compare to the other Products. As per the survey 84% retailers turnover of ghee is below 5,000/- . 14% of big Retailer shops ghee Turnover is 5,000 to 10,000 and Rest of Departmental Store and wholesale store turnover of ghee is more Then 10,000/- 84% 14% 2% Turnover of Ghee in Outlets below Rs.5,000 Rs.5,000 to Rs.10,000 Rs.10,000 to Rs.30,000
  • 55. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 55 Table No.4 Representing the ghee brands in Respective outlets Ghee brands in Respective outlets SI. No Particular No of Respondents Percent 1 ITC 36 14% 2 GRB 71 28% 3 Nandini 60 24% 4 Patanjali 4 2% 5 Aditya 26 10% 6 Shri Krishna 21 8% 7 other 34 14% Total 252 100% Graph No.4 Representing the ghee brands in Respective outlets INTERPRETATION: In above graph it can be interpreted that highest stock of Ghee’s in Respective Outlets is GRB(28%). Then second Highest is Nandini (24%), And Other Ghee companies like ITC (14%), Others (local Ghee brand) (13%), Aditya(10%), Shri Krishna(8%), least of Patanjali(2%). 0% 5% 10% 15% 20% 25% 30% ITC GRB Nandini Patanjali Aditya Shri Krishna other 14% 28% 24% 2% 10% 8% 14% Series2
  • 56. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 56 Table No.5 Representing the Customers are aware of ITC Aashirvaad svasti ghee G r a p h No. 5 Representing the Customers are aware of ITC Aashirvaad svasti ghee INTERPRETATION: In above graph it can be interpreted that only 40% customers are aware of Aashirvaad svasti Ghee. Rest of 70% customers not aware of Aashirvaad swasti ghee because lack of advertisement, product visibility, lack of Promotion so on. 60% 40% Customers are aware of ITC Aashirvaad svasti ghee yes No Si. No Particulars No. of Respondents Percentage 1 yes 46 30.7 2 No 104 69.3 Total 150 100
  • 57. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 57 Table No.6 Representing the reasons of not aware of ITC ghee reasons of not aware of ITC ghee Si. No particulars No of Respondents Percentage 1 lack of product visibility 24 16 2 lack of advertisement 64 42.7 3 lack of sale team support from company 17 11.3 4 Improper service from company 2 1.3 5 No response 43 28.7 Total 150 100 Graph No. 6 Representing reasons of not aware of ITC ghee INTERPRETATION: In above graph it can be interpreted that 43% people not Aware about ITC Ghee Because of Lack of Advertisement. 16% People not aware because lack of product visibility. 11% People are not aware because Lack of sale team support from company 1% people says Improper Service from company. 16% 43%11% 1% 29% Reasons of not aware of ITC ghee lack of product visibility lack of advertisement lack of sale team support from company Improper service from company No response
  • 58. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 58 Table No.7 representing the maintain the stock of ITC Aashirvaad svasti ghee maintain the stock of ITC Aashirvaad svasti ghee SI. No Particulars No of Respondents Percentage 1 Yes 46 30.70% 2 No 103 68.70% 3 No Response 1 0.70% Total 150 100% Graph No. 7 Representing the maintain the stock of ITC Aashirvaad svasti ghee INTERPRETATION: From the above graph, it can be interpreted that 31% of the retailers are selling ITC Aashirvaad svasti Ghee in Outlets. Rest of 69% of the Retailers are not maintaining stock of Aashirvaad svasti ghee in their outlets. As per the data, it is evident that the More Number of retailers are not maintaining the stock of ITC Ghee Because of improper Service from company and Still not approach to these outlets to promote Aashirvaad ghee and Increase the sale of ghee. 31% 69% 0% maintain the stock of ITC Aashirvaad svasti ghee Yes No No Response
  • 59. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 59 Table No.8 Representing the Reasons for not stocking of ITC ghee in outlet Reasons for not stocking of ITC ghee in outlet SI. No Particulars No of Respondents Percentages 1 No consumer Demand 80 53% 2 High in price 5 3% 3 Less in margin 6 4% 4 company not Approach 15 10% 5 No Response 44 30% Total 150 100% Graph No.8 Representing the Reasons for not stocking of ITC ghee in outlet INTERPRETATION: From the above graph, it can be interpreted that Retailers not stocking Aashirvaad ghee because 80% Retailers say No one consumer Demand to the ITC ghee. 10% Retailers are say that still Company not approach to promote ghee or order taking from Retailer. 0% 10% 20% 30% 40% 50% 60% No consumer Demand High in price Less in margin company not Approach No Response 53% 3% 4% 10% 29% Percentage
  • 60. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 60 Table No.9 Representing the customer intuition on ITC Aashirvaad swasti ghee SI.NO Particulars colour packaging Packet size pricing quality Smell and Taste Total 1 Reasonable 2% 6% 4% 4% 4% 4% 2 Moderate 52% 31% 33% 25% 21% 50% 35% 3 High 40% 57% 58% 73% 71% 46% 57% 4 Very High 6% 6% 5% 2% 4% 4% Total 100% 100% 100% 100% 100% 100% 100% Graph No.9 Representing the customer intuition on ITC Aashirvaad swasti ghee INTERPRETATION: In the above graph it can be interpreted that the Majority of the retailers (52%) have rated the colour of Aashirvaad ghee is moderate.57% of Retailers rated High in packaging Because of ITC ghee company packing is good. 58% of Retailers are rated High in Pocketsize .73% Retailers rated High in price because rest of ghee brands are in low price compare to Aashirvaad svasti ghee (exclude GRB).71% majority of Retailers say quality of Aashirvaad ghee is high Because brand loyalty. 46% of retailers are rated moderate in smell and Taste . 0% 20% 40% 60% 80% 2% 6% 4% 4% 4% 52% 31% 33% 25% 21% 50% 40% 57% 58% 73% 71% 46% 6% 6% 5% 2% 4% Reasonable Moderate High Very High
  • 61. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 61 Table No.10 Representing the Association with ITC company Association with ITC company SI. No Particulars No of Respondents Percentages 1 1-2 years 13 9% 2 2-5 years 69 46% 3 5-10 years 50 33% 4 More than 10 years 6 4% 5 No Response 12 8% Total 150 100 Graph No.10 Representing the Association with ITC company INTERPRETATION: In the above graph it can be interpreted that 46% Retailers are associated with ITC company because of good Service from distribution channel and maintain good relationship with Retailers. 33% of Retailers are associated 5-10 Years to maintain good relationship and loyal to the Retailers. 9% Retailers are recently started the business to associated with company to increase the sales of products and profit to their outlets. Rest of 4% Retailers are old customers to the ITC company long years ago . 9% 46% 33% 4% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 1-2 years 2-5 years 5-10 years More than 10 years No Response percentage Association with ITC company
  • 62. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 62 Table No.11 Representing the more profit margin ghee companies SI. N0 Particulars No of Respondents Percentages 1 ITC 7 5% 2 GRB 42 28% 3 NANDINI 38 25% 4 ADITYA 8 5% 5 SHRI KRISHNA 6 4% 6 OTHERS 21 13% 7 All Equal 28 19% Total 150 100% Graph No.11 Representing the more profit margin ghee companies INTERPRETATION: From the above graph it can be interpreted that GRB(28%) is the most preferred company while considering margin payout being given to retailers are over and above company‘s such as Nandini (25%), other local - 10 20 30 5% 28% 25% 5% 4% 13% 19%
  • 63. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 63 brands(13%), ITC(5%), while Aditya (5%) and Shri Krishna(4%) are giving less margins respectively. (19%) of Retailers say all ghee brands are Equal margin. Table No.12 representing the perception of ITC ghee Regarding price compare to other ghee brands perception of ITC ghee Regarding price compare to other ghee brands Sl.No particulars Aditya GRB Nandini Patanjali Revati Shri Krishna Total 1 High 72% 6% 96% 82% 83% 87% 71% 2 Equal 28% 35% 4% 19% 17% 13% 19% 3 Low 0% 59% 0% 0% 0% 0% 10% Total 100% 100% 100% 100% 100% 100% 100% Graph No.12 Representing the perception of ITC ghee Regarding price compare to other ghee brands INTERPRETATION: From the above graph it can be interpreted that Majority of the Retailers (72%) rated Aashirvaad ghee Price is higher than Aditya ghee. Majority of the Retailers (59%) rated Aashirvaad ghee is lower price than GRB. Rest of 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Aditya GRB Nandini Patanjali Revati Shri Krishna 72% 6% 96% 82% 83% 87% 28% 35% 4% 19% 17% 13% 59% Percentage High Equal Low
  • 64. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 64 brands Nandini (96%), Patanjali (82%), Revati (83%), Shri Krishna (87%) ghee brands are lower price than Aashirvaad ghee. Table No.13 Representing the Perception of ITC ghee brand Regarding quality Graph No.13 Representing the Perception of ITC ghee brand Regarding quality INTERPRETATION: From the above graph it can be interpreted that Majority of the Retailers (80%) rated Aashirvaad ghee Quality is higher than Aditya ghee. Majority of the Retailers (65%) rated Aashirvaad ghee is high quality than GRB. Rest of brands Nandini (91%), Patanjali (91%), 80% 65% 91% 91% 87% 85% 20% 33% 9% 9% 13% 15% 2% 0% 50% 100% Aditya GRB Nandini Patanjali Revati Shri Krishna percentage High Equal Low Perception of ITC ghee brand Regarding quality SI. No Particulars Aditya GRB Nandini Patanjali Revati Shri Krishna Total 1 High 80% 65% 91% 91% 87% 85% 83% 2 Equal 20% 33% 9% 9% 13% 15% 17% 3 Low 2% 0% Total 100% 100% 100% 100% 100% 100% 100%
  • 65. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 65 Revati (87%), Shri Krishna (85%) ghee brands are lower quality than Aashirvaad ghee. Table No.14 Representing the Perception of ITC ghee brand Regarding Availability SI.No Particulars Aditya GRB Nandini Patanjali Revati Shri krishna To 1 High 89% 89% 91% 95% 95% 89% 91 2 Equal 9% 9% 4% 4% 6% 9% 7% 3 Low 2% 2% 6% 2% 2% 2% Total 100% 100% 100% 100% 100% 100% 10 Graph No.14 Representing the Perception of ITC ghee brand Regarding Availability INTERPRETATION: From the above graph it can be interpreted that Majority of the Retailers (89%) rated Aashirvaad ghee availability is higher than Aditya ghee. Majority of the Retailers (89%) rated Aashirvaad ghee is higher availability than GRB. Rest of brands Nandini (91%), Patanjali (95%), Revati (95%), Shri Krishna (89%) ghee brands are lower price than Aashirvaad ghee. 89% 89% 91% 95% 95% 89% 9% 9% 4% 4% 6% 9% 2% 2% 6% 2% 2% 0% 20% 40% 60% 80% 100% Aditya GRB Nandini Patanjali Revati Shri krishna percenatage High Equal Low
  • 66. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 66 Table No.15 Representing the Ranking of ghee brands Graph No.15 Representing the Ranking of ghee brands INTERPRETATION: From the above graph it can be interpreted that Ranking on ghee brands to Majority of the Retailers (45%) rated high priority on GRB Only 6% Retailers are rated high on priority and 18% Retailers rated 2nd priority on ITC Aashirvaad svasti ghee and (2%) of retailers are rated least on priority. 0% 10% 20% 30% 40% 50% 60% 70% 80% Aditya GRB ITC Nandini others Patanjali Shri Krishna 5% 45% 6% 32% 7% 5% 18% 32% 36% 1% 2% 7% 21% Percentage High on Priority 2 3 4 5 6 Least on Priority No Response Si. No particulars Aditya GRB ITC Nandini others Patanjali Shri Krishna Total 1 High on Priority 5% 45% 6% 32% 7% 5% 14% 2 2 8% 39% 18% 31% 1% 1% 1% 14% 3 3 12% 12% 13% 22% 3% 2% 35% 14% 4 4 35% 3% 15% 12% 2% 1% 32% 14% 5 5 32% 36% 1% 2% 7% 21% 14% 6 6 5% 9% 1% 11% 68% 5% 14% 7 Least on Priority 3% 2% 75% 21% 14% 8 No Response 1% 1% 1% 1% 1% 1% 1% 1% Total 100% 100% 100% 100% 100% 100% 100% 100%
  • 67. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 67 Table No.16 Representing the Problems face while selling the ITC Aashirvaad svasti Ghee SI. No Particulars Frequency Percentages 1 High in Price 34 22.7 2 Low of Quality 3 2 3 Lack of Advertisment 78 52 4 Improper service from company 11 7.3 5 No Response 24 16 6 Total 150 100 Graph No.16 Representing the Problems face while selling the ITC Aashirvaad svasti Ghee INTERPRETATION: From the above graph it can be interpreted that Majority of the Retailers (52%) rated lack of Advertisement. 23% Retailers say high in Price, 7% Retailers says Improper service from company.2% retailers says low of quality. So ITC company advertising About Aashirvaad ghee and decrease the price little bit to increase the sale of Aashirvaad ghee. 23% 2% 52% 7% 16% Problems for selling ITC ghee High in Price Low of Quality Lack of Advertisment Improper service from company No Response
  • 68. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 68 Table No.17 Representing the Support receiving from company to promote ITC ghee Support receiving from company to promote ITC ghee SI. N0 Particulars Frequency Percentages 1 Yes 42 28 2 No 93 62 3 No Response 15 10 Total 150 100 Graph No.17 Representing the Support receiving from company to promote ITC ghee INTERPRETATION: From the above graph it can be interpreted that Majority of the Retailers (62%) not receiving support from company to promote ITC ghee. 28% retailers are receiving support from company to promote ITC ghee. ITC company better to support other Retailers to promote ghee and increase the sale of ITC ghee. 28% 62% 10% support Yes No No Response
  • 69. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 69 Table No.18 Representing the Support Not receiving from company to promote ITC ghee SI. N0 Particulars Frequency Percentages 1 Lack of availability 7 5% 2 lack of supply 10 7% 3 Lack of sales team Support 32 21% 4 Lack of Interest and support from the company 29 19% 5 Lack in Required size and Quantity 13 9% 6 No Response 59 39% Total 150 100% Graph No.18 Representing the Support Not receiving from company to promote ITC ghee INTERPRETATION: From the above graph it can be interpreted that Majority of the Retailers (21%) not receiving support from company to promote ITC ghee because of lack of sales team support, 19% retailers are said that lack of Interest and support from the company.9% retailers are said that lack of Required size and quantity. 7% retailers are said that lack of supply from company. 5% retailers said that lack of availability. ITC company have to support to retailers to promote ITC ghee and take Interest to promote ghee. 5 % 7% 21% 19% 9% 39% - 5 10 15 20 25 30 35 40 45 Lack of availability lack of supply Lack of sales team Support Lack of Interest and support from the company Lack in Required size and Quantity No Respons Percentage
  • 70. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 70 Table No.19 Representing the Receive stock while ordering on time and per schedule SI. No Particulars Frequency Percentages 1 Yes 53 36% 2 No 65 43% 3 No Response 32 21% Total 150 100% Graph No.19 Representing the Receive stock while ordering on time and per schedule INTERPRETATION: From the above graph it can be interpreted that 36% retailers are receiving stock while they ordering on time and per schedule. 43 % retailers are not receiving stock while they ordering on time and per schedule. ITC company have to deliver the order as per schedule to satisfied to retailers. 36% 43% 21% Chart Title Yes No No Response
  • 71. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 71 Table No.20 Representing the Reasons for Not Receive ITC ghee stock while ordering on time SI. No Particulars Frequency Percent 1 Lack of Proper service 44 29.3 2 Lack of supply chain 22 14.7 3 No Response 84 56 Total 150 100 Graph No. 20 Representing the Reasons for Not Receive ITC ghee stock while ordering on time INTERPRETATION: From the above graph it can be interpreted that 29% retailers Not Receive ITC ghee stock while ordering on time because of Lack of proper service. 15% retailers Not Receive ITC ghee stock while ordering on time because of Lack of supply chain. So ITC company doing proper service and increase the supply chain to increase the sale of ghee. 29% 15% 56% Chart Title Lack of Proper service Lack of supply chain No Response
  • 72. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 72 Table No.21 Representing the ITC push activities Graph No.21 Representing the ITC push activities INTERPRETATION: From the above graph it can be interpreted that majority of retailers rated 13% reasonable in Gift offers. 25% retailers are rated less in lucky draws, 13% of retailers rated both moderate and high. 11% retailers rated Reasonable and moderate in quick and supply. Majority of retailers (13%) rated moderate in sales margin. 15% of retailers are rated to moderate on slab wise targets. 0% 20% 40% 60% 80% Gift offers Lucky draws offers and schemes Quick and supply Sales margin slab wise targets Trade Discount 25% 13% 15%11% 13% 15%13% 1% 2% 1% 71% 71% 71% 71% 71% 71% 71% Percentage Factors ITC Push activities to promot ghee less Reasonable moderate high Very High No response SI. No Particulars Gift offers Lucky draws offers and schemes Quick and supply Sales margin slab wise targets Trade Discount Total 1 less 7% 25% 0% 1% 6% 2% 1% 6% 2 Reasonable 13% 4% 3% 11% 10% 15% 13% 10% 3 moderate 7% 0% 13% 11% 13% 10% 15% 10% 4 high 2% 0% 13% 6% 1% 2% 1% 4% 5 Very High 0% 0% 0% 1% 0% 0% 0% 0% 6 No response 71% 71% 71% 71% 71% 71% 71% 71% Total 100% 100% 100% 100% 100% 100% 100% 100%
  • 73. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 73 15% of retailers are rated to moderate on Trade Discount Table NO.22 Representing the priority of Ghee brands in outlets for more stock Sl. No Particular s priority of Ghee brands in outlets for more stock TotalAditya GRB Nandini other Patanjali Revati Shri krishna 1 High on priority 5% 46% 35% 9% 5% 14% 2 2.00 11% 42% 39% 5% 1% 3% 14% 3 3.00 24% 7% 18% 6% 1% 44% 14% 4 4.00 47% 3% 6% 5% 1% 39% 14% 5 5.00 11% 1% 1% 4% 67% 9% 7% 14% 6 6.00 1% 1% 6% 24% 68% 14% 7 Least on priority 1% 1% 65% 6% 23% 2% 14% 8 No Respondi ng 1% 0% Total 100.0 % 100. 0% 100.0% 100. 0% 100.0% 100.0 % 100.0 % 100.0% Graph No. Representing stock of Ghee companies INTERPRETATION: From the above graph it can be interpreted that more stock of ghee companies majority of retailers (46%) are rated high on priority to GRB ghee and 2nd Priority is Nandini(39%) , 3rd priority is shri Krishna, 4th priority is Aditya, 5th priority is patanjali, 6th priority is Revati, least on priority to other local ghee brands. 46% 39% 44%47% 67% 68%65% 0% 10% 20% 30% 40% 50% 60% 70% 80% Percentage High on priority 2 3 4 5 6 Least on priority
  • 74. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 74 Table No.23 Representing the Reasons required to keep stock of ITC ghee SI. No Particulars Attractive offers Attractive Packing Credit System Customer Demand Profit Margin quality Flexibility Replacement Visual Display 1 Less 2% 1% 2 Reasonable 3% 1% 1% 5% 5% 6% 3% 1% 3 Moderate 25% 20% 24% 23% 35% 17% 19% 20% 4 High 35% 39% 40% 38% 27% 41% 44% 44% 5 Very High 3% 7% 3% 1% 1% 3% 3% 6 No Response 32% 33% 32% 32% 32% 32% 32% 32% Total 100% 100% 100% 100% 100% 100% 100% 100% Graph No.23 Representing the Reasons required to keep stock of ITC ghee in outlets INTERPRETATION: From the above graph it can be interpreted that reasons to keep stock of ITC Ghee to majority of Retailers (35%) are rated need high in Attractive offers. 39% retailers need high in attractive Packing, 40% retailers need high in credit system, 38% retailers need high in customer demand, 35% retailers need moderate on Profit Margin, 41% retailers need high in quality, 44% retailers need high flexibility Replacement, 44% retailers need high in visual Display. 0% 10% 20% 30% 40% 50% 35%35% 39% 40% 38% 41% 44% 44% less Reasona ble
  • 75. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 75 Table No.24 Representing the place order In month of Aashirvaad svasti ghee SI. N0 Particulars Frequency Percent 1 once in a Week 10 6.7 2 Every fortnight 28 18.7 3 once in a month 13 8.7 4 No Response 99 66 Total 150 100 Graph No. 24 Representing the place order In month of Aashirvad swasti ghee Interpretation: From the above graph it can be interpreted that 19% Retailers are place order Aashirvaad ghee in Every fortnight. 8% Retailers are place order in once in a month. 7% Retailers are place Order once in a week. 7% 19% 8% 66% Chart Title once in a Week Every fortnight once in a month No Response
  • 76. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 76 Table No.25 Representing the When retailer order the Size lot of ITC Aashirvaad ghee When retailer order the Size lot of ITC Aashirwad ghee SI. No Particulars Frequency Percentages 1 1-20 packs 44 29.3 2 20-50 packs 1 0.7 3 No Response 105 70 Total 150 100 Graph No.25 Representing the When retailer order the Size lot of ITC Aashirvaad ghee INTERPRETATION: From the above graph it can be interpreted that 29% of Retailers order the size lot of Aashirvaad ghee 1-20 packs. And rest of 1% retailers ordered 20-50 packs. 29% 1% 70% size lot of ITC Ghee 1-20 packs 20-50 packs No Response
  • 77. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 77 Table No.26 Representing the Mode of advertisement to promote ITC Aashirvaad svasti ghee Mode of advertisement to promote ITC Aashirvaad svasti ghee SI.No Particulars Responses N Percent 1 Social media & Print media 33 13% 2 Hoardings 12 5% 3 Television 106 40% 4 Word Of Mouth 111 42% 5 Others 1 0% Total 263 100.00% Graph No.26 Representing the Mode of advertisement to promote ITC Aashirvaad svasti ghee INTERPRETATION: From the above graph it can be interpreted that different mode of advertisement to promote the Aashirvaad ghee to increase sales In Respective outlets. 42% Retailers advice to advertise in word of mouth. 40% retailers are advice Television is best effect to aware the Aashirvaad ghee. 13% Retailers are advice social media and print media is effect to spread all over the city about Aashirvaad ghee. 5% retailers only advice hoarding is good to promote Aashirvaad ghee. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Social media & Print media Hoardings Television Word Of Mouth Others 13% 5% 40% 42% 0% Percentage Series1
  • 78. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 78 Table No.27 Representing the vindication of the success of ITC’s distribution channels SI. No Particulars Easy Replacement Loyalty To Retailers Offers for Quality Products On Time Delivery Solving Retailers Complaints T 1 no response 13% 14% 13% 13% 13% 1 2 strongly Disagree 3% 5% 3% 1% 3% 3 3 Neither agree or Disagree 13% 43% 18% 5% 27% 2 4 Agree 60% 33% 57% 43% 52% 4 5 Strongly Agree 11% 5% 9% 38% 5% 1 Total 100% 100% 100% 100% 100% 1 Graph No.27 Representing the vindication of the success of ITC’s distribution channels INTERPRETATION: From the above graph it can be interpreted that majority of Retailers (60%) are agree in Easy Replacement. And 43% Retailers are Neither agree or Disagree to the loyalty to Retailers. 57% Retailers are agree to offers for quality products. 43% Retailers are agree to on time Delivery. 52% Retailers agree to solving Retailers complaints. 0% 10% 20% 30% 40% 50% 60% 70% 43% 60% 57% 43% 52% Percentage no response strongly Disagree Neither agree or Disagree Agree Strongly Agree
  • 79. A Study on Comparative Analysis of ITC Aashirvaad Ghee and its Competitors DVHIMSR DHARWAD Page 79 Table No.28 representing the Level of Satisfaction towards usage of Aashirvaad svasti Ghee SI. No Particulars Packaging Pricing availability Discount Quality and Quantity Visual Display T 1 Dissatisfied 29% 5 2 Neither Satisfied or Dissatisfied 36% 59% 34% 36% 6% 8% 3 3 Satisfied 64% 12% 66% 64% 86% 60% 5 4 Highly Satisfied 8% 32% 7 Total 100% 100% 100% 100% 100% 100% 1 Graph No.28 Representing the Level of Satisfaction towards usage of Aashirvaad svasti Ghee INTERPRETATION: From the above graph it can be interpreted that represent the level of satisfaction towards usage of Aashirvaad ghee. Majority of Retailers (64%) are satisfied with Packaging, 59% Retailers are neither satisfied or dissatisfied in pricing. 66% of Retailers are satisfied in availability. 64% Retailers are satisfied with Discount. 86% retailers are satisfied with quality and quantity of product. 60% of retailers are satisfied with visual display of ITC Ghee. 0 0.2 0.4 0.6 0.8 1 Dissatisfied Neither Satisfied or Dissatisfied Satisfied Highly Satisfied