itc new level marketing (1).pdf

A STUDY ON “ENTRY LEVEL MARKETING STRATEGY FOR ITC TO
ENTER RTC (Ready to cook) INDUSTRY
BY
Mr P.U. SANDEEP KUMAR
USN: 1NZ13MBA08
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELGAUM
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the guidance of
INTERNAL GUIDE EXTERNAL GUIDE
Mrs. Niviya Feston Mr. Abhishek Vinay Singh
Asst.Professor REGIONAL SALES MANAGER
Department of Management Studies
NEW HORIZON COLLEGE OF ENGINEERING
OUTER RING ROAD, MARATHALLI, BANGALORE
Batch 2013 - 2015

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of the project
would be incomplete without the mention of the people who made it possible, whose
constant guidance and encouragement crowned the effort with success.
I express my sincere gratitude to our beloved Director/Principal
Dr. MANJUNATH who always has been a tremendous source of inspiration and
strength to me.
I would like to convey my sincere regards to Dr SHEELAN MISRA, Prof. and Head,
Department of MBA for having encouraged me constantly and supporting me
throughout the project.
I would like to convey my sincere regards to Mr. ABHISHEK VINAY SINGH
REGIONAL SALES MANAGER-SOUTH, ITC ltd., Bangalore who was my
external guide for his valuable suggestion and necessary guidance during the course of
the project.
I would like to convey my sincere regards to Mrs. NIVIA FESTON, Assistant
Professor, Department of MBA who was my internal guide for his continuous
encouragement and guidance which helped me greatly to in the course of the project.
Finally I thank my parents and friends who had been constant source of inspiration for
the completion of this project.

TABLE OF CONTENTS
CHAPTER TITLE OF CHAPTER PAGE NO.
1 Introduction
1.1 Introduction about the internship
1.2 Topic of the study
1.3 Need for the study
1.4 Objectives of the study
1.5 Scope of the study
1.6 Methodology adopted
1.7 Limitations of the study
1.8 Review of Literature
1-5
2 Industry and Company profile
2.1 RTC Industry India
2.2 Company profile
2.3 Products portfolio
2.4 Vision
2.5 Mission
2.6 Core values
2.7 Areas of operation
2.8 Infrastructural facilities
2.9 Competitors information
2.10 SWOT analysis of ITC limited
2.11 Future Growth and Prospects
6-25
3 Theoretical Background of study
3.1 Strategy
3.2 Marketing strategic
3.3 Market entry strategic
3.4 Porters five forces analysis
3.5 Strategies for entering new business
26-29
4 Data analysis and Interpretation 30-49
5 5.1 Findings
5.2 Suggestions
5.3 Conclusion
5.4 Bibliography
50-58
Annexure
Questionnaire

LIST OF TABLES AND CHARTS
S N TABLES AND CHARTS PAGE NO
4.1 Table and chart showing age group for the respondents 30
4.2 Table and chart showing the gender for the respondents 31
4.3 Table and chart showing the educational qualification of the
respondents
32
4.4 Table and chart showing the occupation of the respondents 33
4.5 Table and chart showing the income of the respondents 34
4.6 A table and chart showing the awareness of ready to cook food
products
35
4.7 A table and chart showing the preference of ready to cook food
products
36
4.8 A table and chart showing the cuisine preference of the respondents 37
4.9 A table and chart showing the respondents prefer to buy traditional
Indian food products as ready to cook food products
38
4.10 A table and chart showing which ready to cook brand the respondents
prefer
39
4.11 A table and chart showing the respondents place of purchase of
ready to cook products
40
4.12 A table and chart showing from where the respondents get
information about ready to cook products
41
4.13 A table and chart showing the respondents response for current price
42
4.14 A table and chart showing which ready to cook products the
respondents purchase often
43
4.15 A table and chart showing the respondents frequency of purchase
44
4.16 A table and chart showing the respondents feel that celebrity
endorsement ready to cook products
45
4.17 A table and chart showing the respondents preference for other stock
keeping unit(SKU)
46
4.18 A table and chart showing the respondents purchase behaviour 47
4.19 A table and chart showing the respondents preference of another
brand of the product appears in the market
48
4.20 A table and chart showing the important factors influcing the
customer in buying ready to cook food products
49

EXECUTIVE SUMMARY
The Project “A STUDY ON ENTRY LEVEL MARKETING STRATEGY
FOR ITC TO ENTER RTC (Ready to cook) INDUSTRY” was done at ITC ltd.
Bangalore, with a view to find out the factors which a customer considers before
purchasing a ready to cook consumable product and also to achieve the objectives of
determining existing competitors strategy in ready to cook food industry.
Since RTC industry is still in infancy stage in India, ITC has no prior experience
in this industry. This project will help the company to design entry level marketing
strategy in RTC industry, with a view to give an edge over existing competitors in this
industry.
The research was restricted to only people within the age group of 18-45 since the
study mainly concentrates on this particular age group who are most likely to consume
ready to cook products and will form the major bulk of customers. The sample size was
100 respondents. Convenient sampling technique was carried out. The study is restricted
to Bangalore and was focused on only ID fresh.
Questionnaires and direct interviews were used to collect primary data. Likert
Scale was used to scale the responses. The Analytical Techniques used to analyse &
interpret data was Microsoft Excel.
The findings were that majority of the respondents were 18-45 years old and most
of the respondents used the brand ID fresh. The respondents considered price, quality,
availability, quantity offered in the package and freshness as important parameters. The
respondents considered the factors namely brand name, easy to cook and quality on a
very important factor/ parameter.
The major suggestions made to the company were that the advertisements &
promotional activities have to be aggressive in order to deal with existing competitors.

A STUDY ON ENTRY LEVEL MARKETING STRATEGY FOR ITC TO ENTER RTC (Ready to cook) INDUSTRY AT ITC.ltd
NEW HORIZON COLLEGE OF ENGINEERING Page 1
CHAPTER-I
INTRODUCTION
1.1 INTRODUCTION ABOUT THE INTERNSHIP
The Project titled “A STUDY ON ENTRY LEVEL MARKETING
STRATEGY FOR ITC TO ENTER RTC (Ready to cook) INDUSTRY” was done at
ITC ltd. Bangalore, with a view to find out the factors which a customer considers before
purchasing a ready to cook consumable product and also to achieve the objectives of
determining existing competitors strategy in ready to cook food industry.
Since ITC is entering a potentially new market, this project will help the
company to design entry level marketing strategy in RTC industry, with a view to give
an edge over existing competitors in this industry.
1.2 TOPIC
“A STUDY ON ENTRY LEVEL MARKETING STRATEGY FOR ITC TO
ENTER RTC (Ready to cook) INDUSTRY” at ITC ltd, Bangalore
1.3 NEED FOR THE STUDY
The study will collect data, responses & suggestions directly from the
respondents regarding various parameters/ attributes of the product (Price, Quality,
Taste, Nutritional value, Quantity and Availability).
This will help the company to analyse and understand the opportunities and
threats of Ready to cook industry from the customer’s as well as competitor’s
perspective, and help to develop a product which meets the customer’s requirements.
1.4 OBJECTIVES
 To explore the new market and analyse opportunities/threats and determine
number of prospective customers.
 To study the perception of ready to cook food industry.
 To study the factors that affects the buying of ready to cook products.
 To develop strategies for ITC to enter RTC (Ready to Cook) market.

1.5 SCOPE OF THE STUDY
 The study will analyse the opportunities and threats existing in the market
 The study will focus on only ID fresh as the main competitor
 The study is restricted to Bangalore
 The study will be limited only to people who fall under 18-45 years of age.
1.6 METHODOLOGY
Research Methodology:
 Descriptive Research: A descriptive research methodology was adopted because
the objective of the study is to provide a systematic & factual description of the
level of satisfaction of the customers who may use RTC products. An
Experimental or Causal type of research cannot be done to achieve the objectives
of the study. A Descriptive research is best suited for this study.
Primary Data Collection:
Original data will be collected through questionnaires & through field research by
interviewing customers to meet the objectives of the study.
Sampling:
 Sample Size: 100
 Sampling Technique/ Methodology
Convenience Sampling: Convenience sampling was used because any person can
participate in the research study. Also because of the availability or the ease of access of
the respondents and the quickness with which the data can be gathered unlike other
sampling techniques.
Since the respondents were in the age group of 18 o 45 it will not be possible in a short
period to get all information about the elements in the population and create a sample
frame. Hence random sampling was not used.
Since very easily answerable questions were asked to collect the data there was no need
for any special knowledge to provide the data. Hence judgmental sampling was not used.
Likert Scale:
 It is the most widely used approach to scaling responses in survey research, such
that the term is often used interchangeably with rating scale, or more accurately
the Likert-type scale, even though the two are not synonymous. The scale is
named after its inventor, Rensis Likert.

Analytical Techniques to be used:
 Microsoft Excel
1.7 LIMITATIONS
 Some of respondents may not reveal much information regarding their usage.
 Convenience sampling may not give a sample which is a true representative of
the population
 There may be bias in the response given
 This research is limited due to time and resource constraints
1.8REVIEW OF LITERATURE
1. G.S. Dangayach and S.G. Deshmukh
Manufacturing strategy has attracted serious research attention in the recent past.
In this paper, an attempt is made to review the status of literature in manufacturing
strategy. A literature classification scheme is suggested. A total of 260 articles from 31
referred journals and international conferences are classified into content (manufacturing
capabilities, strategic choices, best practices, trans‐national comparison, literature survey,
and performance measurement) and process‐related issues. We have categorized the
methodology used in the literature into conceptual, descriptive, empirical, exploratory
cross‐sectional and exploratory longitudinal approaches. Based on this, some possible
research issues are also identified, viz., resource‐based operations strategy, sector
specific manufacturing strategy, relevance of manufacturing strategy to small and
medium enterprises, manufacturing strategy in the context of green manufacturing, effect
of organizational culture on formulation of manufacturing strategy, and performance
measurement.
2. Rosanna Garcia and Roger Calantone
A plethora of definitions for innovation types has resulted in an ambiguity in the way the
terms ‘innovation’ and ‘innovativeness’ are operational zed and utilized in the new
product development literature. The terms radical, really-new, incremental and
discontinuous are used ubiquitously to identify innovations. One must question, what is
the difference between these different classifications? To date consistent definitions for
these innovation types have not emerged from the new product research community. A
review of the literature from the marketing, engineering, and new product development

disciplines attempts to put some clarity and continuity to the use of these terms. This
review shows that it is important to consider both a marketing and technological
perspective as well as a macro level and micro level perspective when identifying
innovations. Additionally, it is shown when strict classifications from the extant
literature are applied, a significant shortfall appears in empirical work directed toward
radical and really new innovations. A method for classifying innovations is suggested so
that practitioners and academics can talk with a common understanding of how a specific
innovation type is identified and how the innovation process may be unique for that
particular innovation type. A recommended list of measures based on extant literature is
provided for future empirical research concerning technological innovations and
innovativeness.
3. Abbie Griffin and John R. Hauser
` During the past 20 years, numerous studies have explored the R&D—marketing
interface and its role in the new product development (NPD) process. Academics and
practitioners (including a PDMA task force) have examined commonly used measures of
success, the underlying reasons for the success or failure of NPD projects, and the effects
of R&D—marketing integration on both project- and company-level success. Does this
mean we have all the answers when it comes to ensuring the necessary level of
cooperation and interaction between R&D and marketing? Of course not.
Abbie Griffin and John R. Hauser note that prior research on R&D—marketing
integration is being reassessed in light of the movement toward flatter organizational
structures and cross-functional teams. To facilitate that reassessment, and to help guide
future research in this area, they review recent research on the methods employed for
integrating R&D and marketing, and they propose several hypotheses regarding those
methods. They present their review and hypotheses within the framework of a causal
map they have developed for studying functional integration.
4. B. Zafer Erdogan
Use of celebrities as part of marketing communications strategy is a fairly
common practice for major firms in supporting corporate or brand imagery. Firms invest
significant monies in juxtaposing brands and organizations with endorser qualities such
as attractiveness, likeability, and trustworthiness. They trust that these qualities operate
in a transferable way, and, will generate desirable campaign outcomes. But, at times,

celebrity qualities may be inappropriate, irrelevant, and undesirable. Thus, a major
question is: how can companies select and retain the 'right' celebrity among many
competing alternatives, and, simultaneously manage this resource, while avoiding
potential pitfalls? This paper seeks to explore variables, which may be considered in any
celebrity selection process by drawing together strands from various literatures.
5. Wolfgang Ulaga and Samir Chacour
Delivering superior value to customers is an ongoing concern of management in
many business markets of today. Knowing where value resides from the standpoint of the
customer has become critical for suppliers. In this article, the construct of customer-
perceived value is first assessed through a literature review. Then a multiple-item
measure of customer value is developed, and our approach is illustrated by the marketing
strategy development project of a major chemical manufacturer in international markets.
The article finally discusses how the customer value audit can be linked to marketing
strategy development and provides guidelines for managerial actions.

CHAPTER-2
INDUSTRY PROFILE
2.1 RTC INDUSTRY- INDIA
India has made lot of progress in agriculture & food sectors since independence
in terms of growth in output, yields and processing. It has gone through a green
revolution, a white revolution, a yellow revolution and a blue revolution. Today, India is
the largest producer of milk, fruits, cashew nuts, coconuts and tea in the world, the
second largest producer of wheat, vegetables, sugar and fish and the third largest
producer of tobacco and rice. Now the time is to provide better food processing & its
marketing infrastructure for Indian industries to serve good quality & safest processed
food like Ready to Cook food. It is opening a new window in world scenario as far as
taste & acceptance is concerned. The retort processed foods do not require rehydration or
cooking and can be consumed straight from the pouch with or without pre-warming,
depending upon the requirement of the users and the weather conditions. Today, almost
all companies in food processing sector using "Retort Technology" developed by
Defence Food Research Laboratory (DRFL).
The Indian Ready to Cook (RTC) food segment has emerged from its early days
of being a fringe alternative to home cooked meal or to eating out. A fast-paced urban
lifestyle, increasing prevalence of nuclear family structure, rising disposable income,
increasingly larger number of globe-trotting Indians with an experimentative palate are
all favourable demographic factors spurring the adoption of RTC foods in India. Further,
the growth of modern retail has provided unprecedented brand and category visibility to
convenience foods. Also, technological advancements in packaging and flavour science
have brought RTC foods centre-stage among urban Indians. In RTC segments and
specifically in pasta, vermicelli and instant mix categories, the competitive landscape is
largely dominated.

128
0
500
1000
1500
2000
2500
3000
3500
2006
RTC Market In India
RTC Market In
India
72
28
Bachelors
Prefer RTC
128
2900
2006 2015
RTC Market In India
RTC Market In
India
67
33
Working
Women
Prefer RTC
86
14
Households
Prefer RTC

COMPANY PROFILE
2.2 ABOUT COMPANY:
ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal.
ITC Limited completed 100 years on 24 August 2010.
Its diversified business includes five segments: FMCG, Hotels, Paperboards, Paper &
Packaging and Agri Business. In 2012-13, the company had an annual turnover of US$
8.31 billion and a market capitalisation of US$ 45 billion. It employs over 25,000 people
at more than 60 locations across India and is part of Forbes 2000 list.
ITC claims that it is the only company in the world of comparable dimensions to be
Carbon Positive, Water Positive and Solid Waste Recycling Positive.
ITC was formed on 24 August 1910 under the name Imperial Tobacco Company of India
Limited. Later the name was changed to India Tobacco Company Limited in 1970 and
then to I.T.C. Limited in 1974. Finally, the company changed its name to 'ITC Limited'
on September 2001.
The earlier decades of the company's activities centred around the tobacco industry.
Since 1964 conclusive epidemiological evidence of the deadly effects of tobacco
consumption has led to a sharp decline in official support for producers and
manufacturers of tobacco, in spite of its large contribution to the agricultural, fiscal,
manufacturing and exporting sectors of the economy.
Viewing the changes in the business dynamics in the tobacco industry, the company
starting looking to other venues for earning revenue. In 1970s, it started to enter non-
tobacco businesses and in the same period it started reducing the foreign equity holding
in the company to 40%.
Today ITC is the country's leading FMCG marketer, the clear market leader in the Indian
Paperboard and Packaging industry, a globally acknowledged pioneer in farmer
empowerment through its wide-reaching Agri Business, the second largest Hotel Chain
in India and a trailblazer in 'green hoteliering'

ITC InfoTech, a wholly-owned subsidiary, is one of India's fast-growing IT companies in
the mid-tier segment. ITC's Agri-Business is one of India's largest exporters of
agricultural products. The ITC group's contribution to foreign exchange earnings over
the last ten years amounted to nearly US$ 5.4 billion, of which agri exports constituted
56%. The Company's 'e-Choupal' initiative has enabled Indian agriculture significantly
enhance its competitiveness by empowering Indian farmers through the power of the
Internet.
2.3 PRODUCTS PORTFOLIO
Tobacco products
 Cigarettes: In 2012-13, ITC earned revenue of Rs. 27,136 Crores from the
business of Cigarettes (56% of total revenue). In the same year, this segment
contributed to profits of Rs. 8,694 Crores (82% of total profits). ITC Ltd sells
80% of the cigarettes in the India, where 275 million people use tobacco
products.
Its major cigarette brands are W.D. & H.O. Wills, Gold Flake Kings, Gold Flake
Premium, Gold Flake Super Star, Navy Cut, Insignia, India Kings, Classic
(Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild),555,
Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and
Duke & Royal

Other businesses
 Foods: ITC is India's largest seller of branded foods with sales of over Rs. 4,600
Crores in 2012-13. It is present in 4 categories in Foods business: Staples, Snack
Foods, Ready to Eat Foods and Confectionery. Its major food brands are: Kitchens
of India, Aashirvad aata, Mint-o, Sun feast Biscuits & Pasta, Candy man toffees,
Bingo chips, Yippee noodles.
 Lifestyle Apparel: Wills Lifestyle and John Players brands. Wills Lifestyle was
accorded the, Super brand status and John Players was included in the top 10 Most
Trusted Apparel Brands 2012‟ by The Economic Times.

 Personal Care: (Fiama Di Wills, Vivel, Superia, Essenza Di Wills and Engage
brands in perfumes
 Stationery: Classmate, Paper Kraft and Colour Crew brands. Launched in 2003,
Classmate became the largest notebook brand in India in 200

 Safety Matches and Agarbattis: Ship, iKno and Aim brands of matches;
Mangaldeep Incense Sticks (agarbattis).
 InfoTech ITC InfoTech is IT Services Company incorporated in the year 2000.
Headquartered in Bangalore, India. The Company is a fully owned subsidiary
of ITC Limited. The company has a service delivery footprint across more than
140 countries worldwide, and offers end-to-end solutions through dedicated
development centres offices and delivery centres in North
America, Europe and Asia Pacific, in addition to hubs based in Bangalore, Pune,
Trivandrum, and Kolkata.

 Hotels: ITC's hotels (under brands including Welcome Hotel) have evolved into
being India's second largest hotel chain with over 90 hotels throughout India. ITC is
also the exclusive franchise in India of two brands owned by Sheraton International
Inc.-The Luxury Collection and Sheraton which ITC uses in association with its own
brands in the luxury 5 star segment. Brands in the hospitality sector owned and
operated by its subsidiaries include Fortune Park Hotels and Welcome Heritage
Hotels.
 Paperboard, Specialty Paper, Graphic and other Paper.
 Packaging and Printing for diverse international and Indian clientele.

 e-Choupal
ITC's Agri Business Division, one of India's largest exporters of agricultural commodities,
has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its
customers around the world on a sustainable basis.
The e-Choupal model has been specifically designed to tackle the challenges posed by the
unique features of Indian agriculture, characterized by fragmented farms, weak
infrastructure and the involvement of numerous intermediaries, among others.

2.4 VISION
Sustain ITC’s position as one of India’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company’s stakeholders
2.5 MISSION
To enhance the wealth generating capability of the enterprise in a globalizing environment,
delivering superior and sustainable stakeholder value
2.6 CORE VALUES
ITC’s core values are aimed at developing a customer focused, high performance organization
which creates values for its stakeholders

SHAREHOLDING AND LISTINGS
ITC's equity shares are listed on Bombay Stock Exchange, National Stock Exchange of
India and Calcutta Stock Exchange. The company's Global Depository Receipts(GDRs)
are listed on the Luxembourg Stock Exchange.
SHAREHOLDERS (AS ON 31-MARCH-2014) SHAREHOLDING
Foreign companies (mainly British American Tobacco Company) 30.54%
Foreign Institutional Investors (FII) 19.68%
Banks, Financial Institutions, Insurance Companies and Mutual Funds 33.44%
Bodies Corporate 04.91%
Public and Others 11.13%
GDRs 00.30%
Total 100.00%

GOVERNANCE STRUCTURE
 Board of Directors:
Comprising executive (4) and non- executive directors (11) Strategic supervision
 Corporate Management Committee:
Comprising executive directors and senior managers Strategic Management
 Divisional Chief Executive & Divisional Management Committee:
Executive Management
2.7 AREAS OF OPERATION:
 ITC is a Pan India company operating throughout the 29 states & 7 union
territories. It is present in major Indian cities like: Kolkata, Delhi, Mumbai,
Bangalore, Chennai etc.
 Globally ITC is present in countries like: Russia, USA, UAE,
Australia, New Zealand etc.
2.8 INFRASTRUCTURAL FACILITIES:
ITC has infrastructural facilities which can be compared or match with the best in the
World. The company’s head office and other branches offer these facilities:
 Fully furnished conference rooms with all latest equipment
 High Bandwidth Internet Connectivity
 Good lighting and ventilation
 Multiple Time Zone Support
 Electronic Project Updates and Status Reports
 Latest Tele / Video Conferencing Equipment
 Latest R&D equipment and facilities in the laboratories
 Highly networked information system
 Fire Prevention and Protection Measures
 Good and comfortable seating arrangements for the employees
 Fully air conditioned premise
 Provides good ambience to the customers and the clients who visit the branch

2.9 COMPETITORS INFORMATION:
If ITC enters ready to cook food industry the major competitor
 ID fresh foods
ID fresh Foods Product Portfolio
 ID fresh foods
 ID fresh foods

2.10 SWOT ANALYSIS OF ITC LIMITED
STRENGTHS:
 ITC has a strong and experienced management
 Wealth of local knowledge & International expertise helps it to be globally
competitive
 Managing diverse businesses, ITC has 105 subsidiaries connected with its
various operations
 Strong brand presence, excellent products advertising
 Diversified product and services portfolio which includes FMCG, Hotel chains,
paper & packaging and agri-business
 Over 6500 E-Choupal CSR activities and sustainability initiatives enhance ITC‟s
brand image reaching over 4 million farmers
 ITC limited has over 25,000 employees
 Excellent Distribution network
 Excellent research and development facilities
WEAKNESS:
 ITC is still hugely dependent on its tobacco revenues
 Diversification into various lines in which it does not have much knowledge
would be very risky proposition
 Hotel industry has not been able to create a huge market share

OPPORTUNITIES:
 The market is always open for innovation
 Mergers and acquisitions to strengthen the brand
 Big untapped market available for FMCG, cigarettes, hotels , IT, retail garment,
packaging & agricultural products
 Good source of revenue & foreign exchange available by way of exports of
agricultural products , hotels & cigarettes
 Proper publicity of the hotels would increase its brand image & revenue
 Increasing purchasing power of people thereby increasing demand
THREATS:
 Negative publicity for smoking could affect its cigarette segment
 Government is under huge pressure from public organizations for banning
tobacco products which could affect it adversely
 High competition from established brands
 Competition from unbranded products
 Poor monsoon leads to poor agricultural growth which would affect the agri-
exports
 FDI in retail thereby allowing international brands
 People have cheaper substitutes to the products

2.11 FUTURE GROWTH AND PROSPECTS:
 Diversified conglomerate ITC Limited plans to invest about Rs 25,000 Crores in
the next 5-7 in various projects.
 The company is also working towards entering the nutrition, health and well-
being segment. ITC is making an audacious campaign to build Indian brands.
 ITC's growing presence in agriculture, food and personal care products is
enabling a synergy of R&D capabilities to deliver future products aimed at
nutrition, health and well-being. ITC would attempt to address problems of
cardio- vascular health cognition and diabetes.
 ITC recognises special attention needed to tackle common health disorders in the
country, several long term research platforms had been designed to create unique
interventions.
 Aiming to become the number one FMCG player in the country (barring
cigarettes), the company is eyeing a top line of around Rs 15,000 crore over the
next five to seven years from this new line of business.
 ITC's segment revenue from non-cigarette FMCG business had already crossed
Rs 5500 crore.
 Wimco, which was acquired by the company in 2005, the land of the closed
factories at Maharashtra and Chennai would be utilised by converting them into
food parks.
 On export of food products by ITC, 'Aashirwaad' brand atta is planned to being
exported to New Zealand, Australia, US and Canada. But the government had
imposed restrictions on such exports for ensuring food security in wheat-based
products
 The company had suggested that value-added exports of food products should
never be stopped but can come with some obligation imposed on the company to
import equivalent amount of wheat into the country. The suggestion was
receiving a favourable attention from the government.
 The Nepal subsidiary was the number one company in that country in terms of
size and employees & is prospective for further growth.
(Source: ITC’s Chairman Y.C. Deveshwar, at the 101st Annual General Meeting
on 27th July, 2012 & at the 102nd
Annual General Meeting on 26th
July, 2013)

ANALYSIS OF FINANCIAL STATEMENTS
BALANCE SHEET
Consolidated Balance Sheet as at 31st March, 2014
As at As at
Note 31st March, 2014 31st March, 2013
(` in Crores)
(` in
Crores)
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 1 795.32 790.18
Reserves and surplus 2
26441.
64 27236.96
22367.
72 23157.90
Minority interests 203.03 179.89
Non-current liabilities
Long-term borrowings 3 76.40 90.80
Deferred tax liabilities (Net) 4A
1306.9
9
1213.5
9
Other Long term liabilities 5 42.74 40.47
Long-term provisions 6 131.75 1557.88 144.75 1489.61
Current liabilities
Short-term borrowings 7 150.24 –
Trade payables
2106.2
5
1771.5
6
[Includes share of Joint Ventures
` 30.36 Crores (2013 - ` 23.94
Crores)]
Other current liabilities 8
3673.1
0
3560.0
3
Short-term provisions 9
5956.4
7 11886.06
5194.3
9 10525.98
TOTAL 40883.93 35353.38

ASSETS
Non-current assets
Fixed assets 10
Tangible assets
12556.
00
11728.
45
Intangible assets 73.83 100.54
Capital work-in-progress - Tangible
assets
3081.2
9
2041.3
7
Intangible assets under development 36.08 20.66
15747.
20
13891.
02
Less: Provision for assets given on
lease 5.67 5.67
15741.
53
13885.
35
Goodwill on consolidation 297.14 316.51
Non-current investments 11 798.52 814.17
Deferred tax assets (Net) 4B 35.52 24.11
Long-term loans and advances 12
1428.9
2
1246.3
0
Other non-current assets 12A 1.24 18302.87 1.24 16287.68
Current assets
Current investments 13
6485.5
0
5167.1
1
Inventories 14
8255.2
4
7522.0
9
Trade receivables 15
2439.2
1
1395.7
6
Cash and bank balances 16
3490.1
9
3828.3
0
Short-term loans and advances 17 816.20 529.61

PROFIT AND LOSS
Consolidated Statement of Profit and Loss for the year ended 31st March, 2014
Other current assets 18
1094.7
2 22581.06 622.83 19065.70
TOTAL 40883.93 35353.38
Note
For the year
ended For the year ended
31st March, 2014 31st March, 2013
(` in Crores) (` in Crores)
Gross Income 19 50550.61 45102.45
Gross Revenue from sale of products and services 49247.28 43920.76
Less: Excise Duty 14262.58 12597.31
Net Revenue from sale of products and services 34984.70 31323.45
Other operating revenue 332.38 304.09
Revenue from operations 20 35317.08 31627.54
Other income 21 970.95 877.60
Total Revenue 36288.03 32505.14
Expenses
Cost of materials consumed 10376.05 9069.82
` 108.30 Crores (2013 - ` 83.62 Crores)]
Purchases of Stock-in-Trade 2976.98 3305.23
Changes in inventories of finished goods,
work-in-progress, Stock-in-Trade and
Intermediates 22 (112.74) (256.84)
Employee benefits expense 23 2504.24 2145.63
Finance costs 24 6.37 87.18
Depreciation and amortisation expense 964.92 859.11

` 1.91 Crores (2013 - ` 1.45 Crores)]
Other expenses 25 6520.66 6189.36
Total Expenses 23236.48 21399.49
Profit before tax 13051.55 11105.65
Tax expense:
Current tax 26 3988.87 3088.05
Deferred tax 27 72.06 324.02
Profit after tax before share of results of
associates and
minority interests 8990.62 7693.58
Less: Minority interests 109.81 96.38
Share of net profit of associates 10.57 10.87
Profit for the year 8891.38 7608.07
Earnings per share (Face Value ` 1.00 each) 28 (i)
Basic ` 11.22 ` 9.69
Diluted ` 11.09 ` 9.56

CHAPTER 3
THEORETICAL BACKGROUND OF STUDY
3.1STRATEGY:
A strategy is defined as, a unified, comprehensive, and integrated plan that relates to the
strategic advantages of the firm to the challenges of the environment. It is designed to ensure
that the basic objectives of the enterprise are achieved through proper execution by the
organization.
3.2MARKETING STRATEGY:
Marketing strategy is the goal of increasing sales and achieving a sustainable competitive
advantage. Marketing strategy includes all basic and long-term activities in the field of
marketing that deal with the analysis of the strategic initial situation of a company and the
formulation, evaluation and selection of market-oriented strategies and therefore contributes
to the goals of the company and its marketing objectives.
3.3 MARKET ENTRY STRATEGY:
A market entry strategy s planned method of delivering goods or services to a new target
market and distributing them there.
Michael Porter’s three generic strategies
CHAPTER 3
3.1STRATEGY:
organization.
CHAPTER 3
3.1STRATEGY:
organization.

Porter wrote in 1980 that strategy target either cost leadership, differentiation, or focus. These
are known as Porter's three generic strategies and can be applied to any size or form of
business. Porter claimed that a company must only choose one of the three or risk that the
business would waste precious resources. Porter's generic strategies detail the interaction
between cost minimization strategies, product differentiation strategies, and market focus
strategies.
1. Cost Leadership strategy: Organizations compete for a wide customer based on
price. Price is based on internal efficiency in order to have a margin that will sustain
above average returns and cost to the customer so that customers will purchase your
product/service. Works well when product/service is standardized can have generic
goods that are acceptable to many customers, and can offer the lowest price.
Continuous efforts to lower costs relative to competitors are necessary in order to
successfully be a cost leader.
2. Differentiation strategy: Value is provided to customers through unique features
and characteristics of an organization's products rather than by the lowest price. This
is done through high quality, features, high customer service, rapid product
innovation, advanced technological features, image management, etc.
3. Focus Strategy: This dimension is not a separate strategy for big companies due to
small market conditions. Big companies which chose applying differentiation
strategies may also choose to apply in conjunction with focus strategies (either cost or
differentiation). On the other hand this is definitely appropriate strategies for small
companies especially for those wanting to avoid competition with big ones. In
adopting a narrow focus, the company ideally focuses on a few target markets also
called a segmentation strategy or niche strategy.

3.4 PORTERS FIVE FORCE ANALYSIS
Five forces:
 Threats of new entrants
 Threat of substitute products or services
 Bargaining power of customers (buyers)
 Bargaining power of suppliers
 Intensity of competitive rivalry
Five forces:
Five forces:

3.5 STRATEGIES FOR ENTERING NEW BUSINESS
 Merger Strategy
 Acquisitions Strategy
 Joint Ventures
 Diversification
 Forward Integration
Merger strategy: Many firms prefer to enter new business through mergers. Combination
of two or more firms is known as merger. When the firms of similar objectives and similar
strategies combine into one firm, such combinations are called mergers
Acquisition strategy: Sometimes want to enter a new business through the strategy of
acquisition. Acquisition is defined as, “The attempt of one firm to acquire ownership or
control over another firm against the wishes of the latter’s management.
Joint Ventures: Joint venture are partnership in which two or more firms carry out a
specific project or corporate in a selected areas of business. Joint ventures can be temporary;
disbanding after the project is finished or long term. Ownership of the firms remains
unchanged.
Diversification: Diversification can be related or unrelated. It becomes an attractive
strategy when a company runs out of profitable growth opportunities in its core business. The
purpose of diversification is to build shareholder value. Diversification builds shareholder
value when a diversified group of businesses can perform better under the auspices of a
single corporate parent then they would as independent, stand alone businesses.
Forward integration: Forward vertical integration occurs when the firms acquire or
create the company that purchases its products or services. Many firms start their operation in
a limited fashion, and later expand them vertically, when they accumulate enough financial
resources.

CHAPTER-4
ANALYSIS AND INTERPRETATION
TABLE.4.1 SHOWING THE AGE GROUP FOR THE RESPONDENTS
SL. NO. Age No. of Respondents %
1 18 to 25 11 11
2 25 to 30 35 35
3 30 to 45 33 33
4 45 and above 21 21
Total 100 100%
Source: Primary Data
ANALYSIS: Table 4.1 shows the age group of the respondents. From the table it can be
said that 11% of the customers lie under the age group of 18-25, 35% of them lie under 25-
30, 33% lie under 30-45 and 21% lies under 45 and above.
CHART4.1.1DISPLAYING THE AGE GROUP OF THE RESPONDENTS
Source: Table No.4.1
INTERPRETATION:
From the above chart 4.1.1 majority of the respondents lie under the age group of 30-45 and
just 11 % of respondents lie under the age group of 18-25.
11%
35%
33%
21%
Age
18 to 25
25 to 30
30 to 45
45 and above

TABLE 4.2 SHOWING THE GENDER FOR THE RESPONDENTS
ANALYSIS: Table 4.2 shows the gender of the respondents. From the table it can be said
that 63% of the customers are female and 37% of them are male.
CHART 4.2.1- DISPLAYING THE GENDER OF THE RESPONDENTS
INTERPRETATION:
From the above chart 4.2.1 majority of the respondents are female of 63% and 37% of
respondents are male.
SL. NO. Gender No. of Respondents %
1 Male 37 37
2 Female 63 63
Total 100 100%
37%
63%
Gender
Male
Female

TABLE 4.3 SHOWING THE EDUCATIONAL QUALIFICATION OF
THE RESPONDENTS
ANALYSIS: Table 4.3 shows the education qualification of the respondents. From the
table it can be said that 58% of the customers are undergraduates, 23% of them are
postgraduates, 16% are other studies, and only 3% of them are PUC.
CHART 4.3.1- DISPLAYING THE EDUCATIONAL QUALIFICATION
OF THE RESPONDENTS
INTERPRETATION:
From the above chart 4.3.1 majority of the respondents of 58% of the customers are
undergraduates, 23% of them are postgraduates, 16% are other studies, and only 3% of them
are PUC.
SL. NO. Educational
Qualification
No. of Respondents %
1 PUC 03 03
2 UG 58 58
3 PG 23 23
4 Other 16 16
Total 100 100%
3%
58%
23%
16%
Educational qualification
PUC
UG
PG
other

TABLE 4.4 SHOWING THE OCCUPATION OF THE RESPONDENTS
SL. NO. Occupation No. of Respondents %
1 Student 11 11
2 Employee 57 57
3 Self Employee 11 11
4 Other 21 21
Total 100 100%
ANALYSIS: Table 4.4 shows the occupation of the respondents. From the table it can be
said that 57% of the respondents are employees, 21% of them are others,11% them are
student, and the other 11% are them are self employee
CHART4.4.1-DISPLAYING THE OCCUPATION OF THE
RESPONDENTS
INTERPRETATION:
From the above chart 4.4.1 majority of the respondents of 57% are employees, 21% of them
are others,11% them are student, and the other 11% are self employee.
11%
57%
11%
21%
Occupation
Student
Employee
Self Employee
Other

TABLE 4.5 SHOWING THE INCOME OF THE RESPONDENTS
SL. NO. Income No. of Respondents %
1 10000 to 15000 24 24
2 15000 to 25000 26 26
3 25000 to 30000 32 32
4 30000 and above 18 18
Total 100 100%
ANALYSIS: Table 4.5 shows the income of the respondents. From the table it can be said
that 32% of the respondents are getting the income between 25000 to 30000, 26% of them are
getting the income between 15000 to 25000 , 24% them are getting the income between
10000 to 15000, and the other 18% of them are getting the income of 30000 and above.
CHART 4.5.1- DISPLAYING THE INCOME OF THE RESPONDENTS
INTERPRETATION: From the above chart 4.5.1 majority of the respondents of 32%
are the respondents are getting the income between 25000 to 30000, 26% of them are getting
the income between 15000 to 25000 ,24% them are getting the income between 10000 to
15000, and the other 18% are them are getting the income of 30000 and above.
24%
26%
32%
18%
Income
10000 to 15000
15000 to 25000
25000 to 30000
30000 and above

TABLE 4.6 SHOWING THE AWARENESS OF READY TO COOK
FOOD PRODUCTS
SL. NO. Awareness No. of Respondents %
1 Yes 100 100
2 No 0 0
Total 100 100%
ANALYSIS:
Table 4.6 shows 100% of the respondents are aware of ready to cook food products.
CHART 4.6.1- DISPLAYING THE AWARENESS OF READY TO COOK
FOOD PRODUCTS
INTERPRETATION:
From the above chart 4.6.1 100% of the respondents are aware of ready to cook food
products.
FOOD PRODUCTS
1 Yes 100 100
2 No 0 0
Total 100 100%
ANALYSIS:
FOOD PRODUCTS
INTERPRETATION:
products.
100%
0%
Awareness
FOOD PRODUCTS
1 Yes 100 100
2 No 0 0
Total 100 100%
ANALYSIS:
FOOD PRODUCTS
INTERPRETATION:
products.
Yes
No

TABLE 4.7SHOWING THE PREFERENCE OF READY TO COOK
FOOD PRODUCTS
ANALYSIS:
Table 4.7 shows the respondents of 54% prefer for convenience, 24% of them prefer for taste
and 22% of them prefer for nutrition.
CHART 4.7.1- DISPLAYING THE PREFERENCE OF READY TO
COOK FOOD PRODUCTS
INTERPRETATION:
From the above chart 4.7.1 majority of the respondents of 54% prefer for convenience, 24%
of them prefer for taste and 22% of them prefer for nutrition.
SL. NO. Preference No. of Respondents %
1 Taste 24 24
2 Nutrition 22 22
3 Convenience 54 54
4 Other 0 0
Total 100 100%
24%
22%
54%
0%
Preference
Taste
Nutrition
Convenience
Other

TABLE 4.8 SHOWING THE CUISINE PREFERENCE OF THE
RESPONDENTS
SL. NO. Cuisine No. of Respondents %
1 Indian 79 79
2 Chinese 12 12
3 Italian 5 5
4 Mexican 4 4
Total 100 100%
ANALYSIS:
Table 4.8 shows the respondents of cuisine preference where 79% prefer Indian foods, 12%
prefer Chinese food, 5% prefer Italian food and remaining 4% prefer Mexican.
CHART 4.8.1- DISPLAYING THE CUISINE PREFERENCE OF THE
RESPONDENTS
INTERPRETATION:
From the above chart 4.8.1 majority of the respondents of cuisine preference where 79%
prefer Indian, 12% prefer Chinese, 5% prefer Italian and 4% prefer Mexican.
79%
12%
5%
4%
Cuisine
Indian
Chinese
Italian
mexican

TABLE 4.9 SHOWING THE RESPONDENTS PREFER TO BUY TRADITIONAL
INDIAN FOOD PRODUCTS AS READY TO COOK FOOD PRODUCTS
ANALYSIS:
Table 4.9 shows the respondents of 81% of them prefer buy traditional Indian food products
as ready to cook products, rest 19% do not prefer
Chart4.9.1-displaying the respondents prefer to buy traditional indian food products
INTERPRETATION:
From the above chart 4.9.1 majority of the respondents of 81% of them buy traditional Indian
food products as ready to cook products, rest 19% do not prefer.
SL. NO. Traditional Indian
food
1 Yes 81 81
2 No 19 19
Total 100 100%
81%
19%
Tradiational Indian Food
Yes
No

Table 4.10 showing which ready to cook brand the respondents prefer
SL. NO. Brand No. of Respondents %
1 ID fresh 63 63
2 MTR 25 25
3 Knorr 12 12
Total 100 100%
ANALYSIS:
Table 4.10 shows the respondents of 63% of them buy ID fresh brand, 25% of them buy
MTR and 12% of them buy Knorr.
Chart 4.10.1- Displaying which ready to cook brand the respondents prefer
INTERPRETATION:
From the above chart 4.10.1 shows majority of the respondents of 63% of them buy ID fresh,
25% of them buy MTR and 12% of them buy Knorr.
63%
25%
12%
Brand
ID fresf
MTR
Knorr

Table4.11 showing the respondent’s place of purchase of ready to cook products
SL. NO. Place of purchase No. of Respondents %
1 Grocery 18 18
2 Convenient store 14 14
3 Super market 62 62
4 Other 6 6
Total 100 100%
ANALYSIS:
Table 4.11 shows the respondents of 62% of them buy the ready cook product from super
market, 18% from grocery, 14% of them buy from convenient store and remaining 6% of
them buy from the other place.
Chart 4.11.1- Displaying the respondent’s place of purchase of ready to cook products
INTERPRETATION:
From the above chart 4.11.1 shows majority of the respondents of 62% of them buy ready to
cook product from super market, 18% from grocery, 14% of those buy from convenient store
and 6% of them buy from the other place.
18%
14%
62%
6%
Place of purchase
Grocery
Convenient store
Super market
Other

Table4.12 showing from where the respondents get information about ready to cook
products
SL. NO. Information No. of Respondents %
1 Newspaper/Magazine 27 27
2 Internet/Online 11 11
3 Television 37 37
4 Friends/Neighbours 25 25
5 Radio/FM 0 0
Total 100 100%
ANALYSIS: Table 4.12 shows the respondents of 37% of them get information about ready
to cook product from television, 27% of them get from newspaper/magazine, 25% of them
get the information through friends/neighbours and 11% get from internet/online.
Chart 4.12.1- Displaying from where the respondents get information about ready to
cook products
INTERPRETATION:
From the above chart 4.12.1 shows majority of the respondents of 37% of them get
information about ready to cook product from the television, 27% of them get from
newspaper/magazine, 25% get the information from friends/neighbours and 11% get from
internet/online.
27%
11%
37%
25%
0%
Information
Newspaper/Magazine
Internet/Online
Television
Friends/Neighbours
Radio/FM

Table 4.13showing the respondent’s response for current price ready to cook products
SL. NO. Price justified? No. of Respondents %
1 Yes 83 83
2 No 17 17
Total 100 100%
ANALYSIS:
Table 4.13 shows the respondents of 83% of them agree with current price of ready to cook
products and 17% of them are do not agree.
Chart 4.13.1- Displaying the respondent’s response for current price ready to cook
products
INTERPRETATION:
From the above chart 4.13.1 shows majority of the respondents of 83% of them agree with
the current price and 17% of them do not agree.
83%
17%
Price justified
Yes
No

Table 4.14showing which ready to cook products the respondents purchase often
SL. NO. Purchase often No. of Respondents %
1 Idly/Dosa Batter 37 37
2 Parota 18 18
3 Chapatti 21 21
4 Instant Mix 24 24
Total 100 100%
ANALYSIS:
Table 4.14 shows the respondents of 37% of them purchase idly/dosa batter, 24% purchase
instant mix, 21% of them purchase chapatti and 18% purchase parota.
Chart 4.14.1- Displaying which ready to cook products the respondents purchase often
INTERPRETATION:
From the above chart 4.14.1 shows majority of the respondents 37% of them purchase
idly/dosa batter, 24% purchase instant mix, 21% of them purchase chapatti and 18% purchase
parota
37%
18%
21%
24%
Purchase often
Idly/Dosa Batter
Parota
Chapatti
Instant Mix

Table4.15 showing the respondent’s frequency of purchase of ready to cook product
SL. NO. Frequency of
purchase
1 Daily 44 44
2 Weekly 31 31
3 Fortnightly 14 14
4 Monthly 11 11
Total 100 100%
ANALYSIS:
Table 4.15 shows the respondents of 44% of them purchase daily, 31% purchase weekly,
14% purchase fortnightly and 11% purchase monthly.
Chart 4.15.1- Displaying the respondent’s frequency of purchase of ready to cook
product
INTERPRETATION:
From the above chart 4.14.1 shows majority of the respondents of 44% of them purchase
products daily, 31% purchase products weekly, 14% purchase fortnightly and 11% purchase
monthly.
44%
31%
14%
11%
Frequency of purchase
Daily
Weekly
Fortnightly
Monthly

Table4.16 showing the respondents feel that celebrity endorsement affects buying
decision
SL. NO. Celebrity
endorsement
1 Yes 71 71
2 No 29 29
Total 100 100%
ANALYSIS:
Table 4.16 shows the respondents of 71% of them feel that celebrity endorsement affects the
buying decision and 29% are do not feel that celebrity endorsement affects the buying
decision.
Chart 4.16.1- Displaying the respondents feel that celebrity endorsement affects buying
decision
INTERPRETATION:
From the above chart 4.16.1 shows majority of the respondents 71% of them feel that
celebrity endorsement affects the buying decision and 29% do not feel that celebrity
endorsement affects the buying decision.
71%
29%
Celebrity Endorsement
Yes
NO

Table 4.17showing the respondent’s preference for other stock keeping unit (SKU)
SL. NO. Stock keeping
unit(SKU)
1 ½ Kg 22 22
2 3 Kg 47 47
3 5 Kg 31 31
Total 100 100%
ANALYSIS:
Table 4.17 shows the respondents of 47% of them prefer3kg (SKU), 31% of them prefer 5kg
(SKU) and 22% of them prefer 1/2kg (SKU).
Chart 4.17.1- Displaying the respondent’s preference for other stock keeping unit
(SKU)
INTERPRETATION:
From the above chart 4.17.1 shows majority of the respondents of 47% of them prefer 3kg
(SKU), 31% of them prefer 5kg (SKU) and 22% prefer 1/2kg (SKU).
22%
47%
31%
Stock keeping unit(SKU)
1/2 Kg
3 Kg
5 Kg

Table4.18 showing the respondents purchase behaviour
SL. NO. Purchase behaviour No. of Respondents %
1 Postpone your
purchase
9 9
2 Switch over to other
brand
25 25
3 Go to other shop to
search for preferred
brand
55 55
4 Do not buy 11 11
Total 100 100%
ANALYSIS:
Table 4.18 shows the respondents of 55% go to other shop to search for preferred brand, 25%
switch over to other brand, 11% do not buy and 9% postpone the purchase.
Chart 4.18.1- Displaying the respondents purchase behaviour
INTERPRETATION:
From the above chart 4.18.1 shows majority of the respondents 55% go to other shop to
search for preferred brand, 25% switch over to other brand, 11% do not buy and 9% postpone
the purchase.
9%
25%
55%
11%
Purchase behaviour
Postpone your purchase
Switch over to other brand
Go to other shop to search for
preferred brand
Do not buy

Table4.19 showing the respondent’s preference of another brand of the same product
appears in the market
SL. NO. New brand No. of Respondents %
1 No, not at all 23 23
2 I may consider 47 47
3 Can’t say 31 31
Total 100 100%
ANALYSIS:
Table 4.19 shows the respondents of 47% are to be consider, 31% can’t say and 23% not at
all consider the product.
Chart 4.19.1- Displaying the respondent’s preference of another brand of the same
product appears in the market
INTERPRETATION:
From the above chart 4.19.1 shows majority of the respondents 47% are to be consider, 31%
can’t say and 23% not at all consider the product.
23%
47%
31%
New brand
No, not at all
I may consider
Can't say

TABLE 4.20 IMPORTANT FACTORS INFLUENCING THE CUSTOMER IN
BUYING READY TO COOK FOOD PRODUCTS
Factors Mean SD Range
Price 3.81 1.12 2.69 <= Mean <= 4.93
Quality 4.8 0.47 4.33 <= Mean <= 5.27
Availability 4.54 0.8 3.74 <= Mean <= 5.34
Freshness 4.82 0.48 4.34 <= Mean <= 5.3
Packaging 4.6 0.71 3.89 <= Mean <= 5.31
Brand 4.91 0.29 4.62 <= Mean <= 5.2
Advertisement 4.44 0.94 3.5 <= Mean <= 5.38
Easy to Cook 4.88 0.35 4.53 <= Mean <= 5.23
INTERPRETATION:
To ascertain the prominent factor that makes the customers to purchase, mean and standard
deviation is computed. The values of mean and standard deviation have given an idea of
factors. On comparison of means, Brand name (Maximum Mean 4.91) is important followed
by Easy to cook (Mean 4.88). It is surprising that, price is not the factor to make customer to
buy.
In terms of SD also, the similar factor are getting listed. That is, Brand Name, Easy to Cook,
Freshness etc. At last, Price is having Maximum SD.
Range for the respective factors gives an idea of Responses in large Scale Survey. One can
understand and interpret the same depending on the requirement of decision.

CHAPTER-5
FINDINGS, CONCLUSION AND SUGGESTIONS
5.1FINDINGS
 The study has taken into consideration of respondent’s majority of female respondents
in age group of 25-30 with small portion under the age group of 18-25. As most of the
respondents around 58% of undergraduates, 23% of postgraduates the study has vast
coverage of educated respondents.
 In terms of Occupational distribution, around 57% of respondents are employees. At
the same time 11% of them are self employed. Hence, purchasing capacity of
respondents is recorded well 32%respondnets are having income between 25000 to
30000, 26% of them are getting the income between 15000 to 25000 ,24% them are
getting the income between 10000 to 15000, and the other 18% are them are getting
the income of 30000 and above.
 The question of “Do you Aware of Ready Cook Food” has surprisingly given positive
response almost for 100%. This may be due to the fact that the changes in the life
style of respondents group. Majority of the respondents, top the level of 54% prefer
for convenience, 24% of them prefer for taste. It is to be observed and surprising that
only 22% of them prefer for nutrition.
 Around 79% of respondents have preferred Indian style. This witnesses that still our
culture in terms of food preference is not influenced by the other cultural reasons.
Preference of ID Fresh is supported by 63% by leaving the next level of preference to
the competitor MTR Knorr.
 Opinion on purchase place has given maximum preference to Super market (62%).
Preference to other places like grocery shops and convenient store has also recorded
considerable amount.
 Awareness on Ready cook provision has been responded well through the choices of
television by 37%, newspaper/magazine by 27%, friends/neighbours by 25% and
Internet/Online by11% of respondents. Current price is acceptable by considerable
group of respondents of size (83%). Preference of the ready cook is opted for
idly/dosa batter (37%), instant mix (24%), chapatti (21%) and parota (18%).
 It is obvious that due to perishable nature, people go for purchase of ID Fresh daily.
This is opted by 44% of respondents. Celebrity endorsement is supporting for

purchase – around 71%. On the other hand, 55% of the respondents go to other shop
to search for preferred brand, 25% switch over to other brand, 11% do not buy and
9% postpone the purchase.
 To ascertain the prominent factor that makes the customers to purchase, mean and
standard deviation is computed. The values of mean and standard deviation have
given an idea of factors. On comparison of means, Brand name (Maximum Mean
4.91) is important followed by Easy to cook (Mean 4.88). It is surprising that, price is
not the factor to make customer to buy.
 In terms of SD also, the similar factor are getting listed. That is, Brand Name, Easy to
Cook, Freshness etc. At last, Price is having Maximum SD.
 Range for the respective factors gives an idea of Responses in large Scale Survey.
One can understand and interpret the same depending on the requirement of decision.
5.2CONCLUSION
With the financial gain level rising, want for milk, meat or fish, fruits and vegetables
is also increasing in Republic of India. With a lot of urbanization, Indian families additionally
consume more processed foods, a lot of ready to cook foods, etc. Asian Americans, now
numbering over ten million together with the opposite thirteen million persons of Asian
country origin spread everywhere the globe are a large potential marketplace for the RTC
Foods out of India. This creates a scope for the producers to return back out with an extended
vary of dishes together with the same old meals. India had been at the forefront for type of
dishes each in domestic and world market.
Food corporations ought to increase the promotion of RTC food to make awareness
among individuals regarding the thought of RTC food and win over customers regarding the
misconception regarding the else preservatives in RTC food.

5.3SUGGESTIONS
 Price - Indian customers are extremely worth sensitive. For any new product they
choose the merchandise supported their worth and a lot of or less the repeat purchases
are compact by worth issue. Same is that the case with able to Eat foods.
 Value proposition – RTC foods ought to be perceived as a price proposition by
customers. Price proposition means that it ought to be ready to save ton of your time
and cash with adequate amount to act as a full meal.
 Price for cash - customers ought to understand RTC packs as Value for cash i.e. they
ought to feel the cash they spent on that is well spent and not wasted. May be
wherever repeat shopping for can be induced. If customers see RTC as a price for
cash possibility they won’t search for alternative choices like ordering from edifice or
reaching to an edifice.
 Quantity and style of food - Indians area unit voracious eaters and therefore the
family size is additionally giant. And Indians area unit won’t to intake a three full
course meal on any day. Thus the number prepackaged within the RTE packs ought to
be spare. Which is wherever the shopping for call can acquire play if the number is
skimpy to meet the whole family then contumaciously they won’t contemplate
shopping for it once more?
 Easy accessibility - the largest contender for RTC foods are restaurants that are
simply accessible geographically and accessible with the choice of threshold delivery.
Thence RTC has got to be created accessible in such method that it will be simply
accessible by the consumers throughout traditional searching also as throughout
emergencies.

5.4BIBLIOGRAPHY
 G.S. Dangayach, S.G. Deshmukh, (2001) "Manufacturing strategy: Literature review
and some issues”, International Journal of Operations & Production Management,
Vol. 21 Iss: 7, pp.884 - 932
 Journal of Product Innovation Management Volume 19, Issue 2, pages 110–
132, March 2002
 Journal of Product Innovation Management Volume 13, Issue 3, pages 191–215, May
1996
 Journal of Marketing Management Volume 15, Issue 4, 1999
 Industrial Marketing Management Volume 30, Issue 6, August 2001, Pages 525–540
Websites
 www.itcportal.com 
 www.wikipedia.com

ANNEXURE
QUESTIONNAIRE
I, P.U. SANDEEP KUMAR, pursuing MBA (MARKETING) in the Department of
Master of Business Administration, NEW HORIZON COLLEGE OF ENGINEERING,
Bangalore.
I need you to be a part of the fact finding exercise which will be useful for completing
my research work for the fulfilment of the MBA degree. The data being collected will be
used purely for academic and research purpose only.
Please tick the answers whichever is appropriate according to you. I sincerely thank
for your valuable time in responding to this questionnaire.
1) Name: ___________________________________________
2) Age
1. 18 to 25 [ ]
2. 25 to 30 [ ]
3. 30 to 45 [ ]
4. 45 and above [ ]
3) Gender
1. Male [ ]
2. Female [ ]
4) Educational qualification
1. PUC [ ]
2. UG [ ]
3. PG [ ]
4. Other [ ]
5) Occupation
1. Student [ ]
2. Employee [ ]
3. Self employee [ ]
4. Other [ ]

6) Monthly income
1. 10000 to 15000 [ ]
2. 15000 to 25000 [ ]
3. 25000 to 30000 [ ]
4. 30000 and above [ ]
7) Are you aware of ready to cook food products?
1. Yes [ ]
2. No [ ]
8) Why do you prefer ready to cook food products?
1. Taste [ ]
2. Nutrition [ ]
3. Convenience [ ]
4. Other [ ]
9) What cuisine do you prefer?
1. Indian [ ]
2. Chinese [ ]
3. Italian [ ]
4. Mexican [ ]
10) Would you buy traditional Indian food products as ready to cook products?
1. Yes [ ]
2. No [ ]
11) Which ready to cook brand do you prefer?
-------------------
ID Fresh [ ]
MTR [ ]
Knorr [ ]

12) From where do you buy the ready to cook products?
1. Grocery [ ]
2. Convenient store[ ]
3. Super market [ ]
4. Other [ ]
13) Where did you get information about ready to cook products?
1. Newspaper/ Magazines [ ]
2. Internet/ Online [ ]
3. Television [ ]
4. Friends/ Neighbours [ ]
5. Radio/ FM [ ]
14) Are the current price of ready to cook products justified?
1. Yes [ ]
2. No [ ]
15) Which ready to cook product do you buy offen?
1. Idly/Dosa Batter [ ]
2. Parota [ ]
3. Chapatti [ ]
4. Instant Mix [ ]
16) What is your frequency of buying ready to cook food products?
1. Daily [ ]
2. Weekly [ ]
3. Fortnightly [ ]
4. Monthly [ ]
17) Do you feel celebrity endorsement affects your buying decision?
1. Yes [ ]
2. No [ ]
18) What is the other Stock Keeping Unit would you prefer?

1. ½ Kg [ ]
2. 3KG [ ]
3. 5Kg [ ]
19) If your preferred brand is not available for repeat purchases then what will you do?
1. Postpone your purchase [ ]
2. Switch over to other brand [ ]
3. Go to the other shop to search for your preferred brand [ ]
4. Do not buy [ ]
20) If another brand of the same product appears in the market, will you prefer to stop buying
this brand and buy the new brand?
1. No, not at all [ ]
2. I may consider [ ]
3. Can’t say [ ]
21) How much importance do you give to the following factors when you purchase ready to
cook products?
Factors
Very
Important
Important Normal Least
important
None
Price
Quality
Availability
Freshness
Packaging
Brand
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