ITC summer-internship_report

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Dr. Gaur Hari Singhania Institute of Management Research
SUMMER TRAINING REPORT
ON
“To analyze the contribution of Chemist & Cosmetic
outlets in Personal Care Product business”
Submitted in partial fulfillment of the requirements of
Post Graduate Diploma in Business Management
By
Shraddha Mishra
Batch-14
Roll No.-1249
Jaykaylon Colony,
Kamla Nagar,
Kanpur-208005

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Acknowledgement
“Not what we give, But what we share,
For the gift, without the giver
Is bare”
~James Russell Lowell
An experience of an Environment outside text books and class rooms has remained the best
teacher for ages. “Analyzing the contribution of chemist & cosmetic outlets in Personal care
Products of ITC vis a vis to its competitors”, was an expedition to learn and understand the
Market nomenclature in a different way.
I express a deep sense of gratitude to our mentor, Mr. Arvind Upadhyay area manager
(Kanpur) ITC Limited, Lucknow, for his unfaltering support and motivation which made
this study worthwhile. A token of gratitude, to Mr. Shrijeet Paul area executive
(Kanpur) ITC Lucknow, the staff of ITC Lucknow, Tirupati Agency Kanpur, Shree Agency
Kanpur and Various outlets of Kanpur, for without their support this study would have been
impossible.
I am deeply obliged to all those outlets owners who inculcated their knowledge during my survey
process, for without them this study would have been nonexistent.
.

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Executive Summary
The study of “Analyzing the contribution of chemist & cosmetic outlets in Personal care Products
of ITC vis a vis to its competitors” was aimed at finding out the role of both the chemist &
cosmetic outlets in influencing Visual merchandising (VM) to understand the customer buying
behavior, along with that it also focuses on the DS productivity, the monthly stock movement of
personal care products of ITC in contrast to its competitors and the role of company promoters
in these outlets.
Visual Merchandising basically deals with elements of display of products which is gaining
momentum in India with the growth of retail industry. It is important to notice that Visual
merchandising is involved in getting more visitors to stores and also in converting them into
shoppers. As this accounts for 2/3rd of the process, it is of immense importance.
On the same path the role, of company salesmen is very crucial in raising the sales and making
the product availability to the maximum possible outlets and thereby it enables them to penetrate
more deeply into the market.
Similarly, company promoters working as a beauty advisor is a very challenging position. As a
company promoter, having all the essential knowledge and understanding of the company’s
product, along with good motivational skills, leaves an impact on the buyer and ensures a better
goodwill of the company in the market.

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The research methodology consisted of surveys with company agency and visual
Merchandisers who gave valuable insights about VM efforts and challenges’ in Kanpur. This
was followed by Format survey, which was done at stores. The total sample size amounts up
to 150. The results obtained from qualitative and survey analyses are described in respective.

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Table of Contents
Chapter 1:
 INTRODUCTION
1.1 General Introduction
1.2 Objectives of Project
1.3 Industry Profile
Chapter 2:
 PROFILE OF THE ORGANISATION: ITC Ltd.
2.1 Establishment
2.2 Growth and Diversification
2.3 Business Portfolio
Chapter 3:
 STUDY OF THE RESEARCH PROBLEM:
3.1 Statement of research objective
3.2 Research Design & Methodology
3.3 Research Instrument
3.4 Classification of Data

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Table of Contents Contd…
 STUDY OF THE RESEARCH PROBLEM:
3.4 Classification of Data
3.5 Period of study
3.6 Focused brand
3.7 Research Study
3.8 Market for research study
3.9 Approach towards objective accomplishment
Chapter 4:
 DATA COLLECTION AND ANALYSIS OF RESEARCH PROBLEM
4.1 Number of outlets surveyed within Various Markets
4.2 Procedure towards attainment of objectives
 Steps undertaken to achieve objective 1
4.3 Summary of other findings
4.4 Recommendation & conclusions
4.5 Bibliography & Appendix

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INTRODUCTION

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Chapter.1 Introduction
1.1 GENERAL INTRODUCTION
The project purports to decipher the preference of shopkeeper to company’s product based on
the analysis of the study of Kanpur market, which was done on the basis of presence of
company’s product in comparison to competitors product, parameter like price paid for annual
the display, service, and promotional schemes etc. The different comparative companies of
personal care products were Hindustan Unilever, P&G, Garnier, Dabur .The sample unit was the
outlets of Kanpur.
With a well define research problem, a study was started to ascertain the variations and
conditions of the existing sales of personal care products. The overall objective of the study was
to analyze the annual display outlets of the company to analyze the success, marketability and
future growth prospects of personal care products of ITC. The data was collected and analyzed to
obtain conclusions. This report carries an introduction of the company profile, detail of the
methodology followed detailed data analysis and the results so obtained with the variety of
graphs along with given.

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1.2: INDUSTRY PROFILE:
The Personal care industry has taken rapid strides in the last few years, moving towards
premium products incorporating specialty ingredients in their formulation.
From soaps and shampoos in the morning to the overnight repair face creams, from the
sunscreen products in summers to moisturizing lotions in winters; personal care products
literally touch our daily lives. The personal care products we use are in some measure the
signature of our lifestyles and standards of living.
Indian view:
Personal care category in India is valued at Rs 54.6 billion. An average Indian spends
8% of his income on personal care products. Personal care mainly consists of Hair Care,
Skin Care, Oral Care, Personal Wash (Soaps), Cosmetic and Toiletries, Feminine
Hygiene.
Till 2002-2003, Personal care products, except those in oral care category, were regarded as
luxury items, and attracted a high excise duty of 120%.
But the taxation reforms in India after 1991 have lowered the excise duty rates that make these
products more affordable. It is divided into two segments:
 The premium segment
 The popular segment
The premium segment caters mainly to urban high class and upper middle class, and is more
brands conscious and less price sensitive. The popular segment caters to mass segments in
urban and rural markets; prices here are around 40% of the premium segment prices.

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Personal care (Global view)
The personal care industry had an excellent growth rate in all the major markets of the world
in 2005-2006. Since the past few years, people have become more conscious about their
appearance and look, leading to a huge demand for these products in the whole world. New
products are launched by the leading brands to attract consumers. The trends in all the
leading personal care markets show that this industry is showing a massive potential for
growth. The women’s beauty industry is growing at rate of approximately USD 202.254 billion
every year where as the global market for cosmetics alone USD 30.33 billion. The global
personal care products industry is growing at a very rapid pace; some of the factors
responsible are:
 Rise in consumer spending power,
 Increased demand due to people consciousness,
 Key demographic factors,
 Entry of herbal and organic products,
 Lifestyle and climactic changes, and
 Massive advertising and promotion strategy

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“ORGANIZATION”

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Chapter 2: Profile Of the Organization: ITC Ltd
2.1 Establishment:
Incorporated on 24 August 1910 as the Imperial Tobacco Company of India Limited, the
company's name was changed to ITC Limited in 1974. Rated among the 'World's Best Big
Companies' by Forbes magazine, ITC ranks thirdon all major profit parameters among India's
private sector corporations. ITC employs over 20,000 people at more than 60 locations
across India. It has a turnover of $3 billion.
2.2 Growth and Diversification:
ITC is one of India's foremost private sector companies with a market capitalization of nearly
US $ 18 billion and a turnover of over US $ 4.75 billion.
ITC is rated among the World's Best Big Companies, Asia's 'Feb 50' and the
World's Most Reputable Companies by Forbes magazine, among India's Most
Respected Companies by Business World and among India's Most Valuable companies by
Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands’ in a study conducted by Brand Finance and published by the
Economic Times.

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2.3 Business Portfolio:
ITC has a diversified presence in Cigarettes, Hotels, Paperboards and Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Personal Care, Stationery and Safety, as one of
India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly
nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment
beyond the market". ITC's diversified status originates from its corporate strategy aimed at
creating multiple drivers of growth anchored on its time-tested core competencies unmatched
distribution reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses
are expected to garner a significant share of these emerging high-growth markets in India.
ITC employs over 21,000 people at more than 60 locations across India. The
Company continuously endeavors to enhance its wealth generating capabilities in a
globalizing environment to consistently reward more than 3, 88,000 shareholders, fulfill
the aspirations of its stakeholders and meet societal expectations. This over-arching vision of
the company is expressively captured in its corporate positioning statement: "Enduring Value.
For the nation. For the Shareholder.

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Essenza di wills
Fiama di wills
Vivel Di Wills
Superia

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“
“STUDY OF
RESEARCH
PROBLEM”

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Study of selected “Research Problem”
3.1 Statement of research objective:
All companies are having their own planning and business strategies but the company who is
having the best, is the most successful company among its competitors. So the company can
easily get success among its competitors by applying best effective marketing strategies.
1) PCP Stock movement from the outlets of ITC Vis a Vis to Competition
2) Role of Beauty advisors in influencing of Consumer during the purchase.
3) Visibility solutions at these Outlets.
4) DS productivity at these Outlets.
5) Distribution model adopted by competition and ITC in these Outlets.
6) Trade Inputs by competition and ITC at these Outlets.
3.2 Research Design & Methodology:
Research design is the basic framework which provides guidelines for the rest of
research process. It specifies the methods for data collection and data analysis. .
A good design is often characterized by adjectives like flexible, appropriate, efficient, and
economical and so on. The design appropriate for this research is DISCRIPTIVE RESEARCH
WITH A HELP OF A SCHEDULE. Descriptive research includes surveys, fact-findings
enquiries of different kinds. The major purpose of this research is description of the state of
affairs, as it exists at present.

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3.3 Research Instrument:
SAMPLING PLAN
3.4 Classification of Data: I have classified the data into two specific types:
Primary source: Secondary source:
1. Interview. 1. Internet
2. Filling up of schedule. 2.Magazines
3. Observation.
4. Verbal Communication
Sampling Area- Kanpur
Sample Segmentation-
On the basis of Schedule
Sampling Method-
Simple Random
Sample size-
150
Sample Unit -
Shopping outlets

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3.5 Period of study:
The study is carried out for a period of 30 days. It commenced on 20th
April 2010 and
completed on 20th
June 2010.
3.6 Focused brand:
 Fiama di wills.
 Vivel di wills.
 Vivel.
 Superia.
3.7 Research Study: To analyze the contribution of both the chemist and the cosmetic
outlets, I have undertaken a study of 17 major markets of Kanpur, this was done by projecting
the figures on the schedules, while making a direct contact with 150 outlet owners, spread
across these major markets of Kanpur. Hence, the whole process was based on the random
sampling technique. My report basically involves a step by step process of accessing the
product potential across 17 major zones in a formal respective manner. For This I will first of
all throw light on the areas where I underwent this survey study.
3.8 Market for research study:
 Gumti No. 5  Naveen Market
 Arya Nagar  Chaman Ganj
 Vikas Nagar  Bekan Ganj
 Gwaltoli  Pandu Nagar
 Kakadeo  Azad Nagar
 P.Road  Lal Bangla

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 Sheshamau  Kidwai Nagar
 Khalasi line  Govind Nagar
3.9 Approach towards objective accomplishment:
 PersonalCare Products stock Movement inVariousoutlets of ITC
vis a vis to its competitors: This basically involves the following:
 Projecting the Average Monthly Stock of the Product as per the schedule
 Projecting the oldest manufacturing date, in order to analyze the stock movement,
along with its frequent sale and purchase.
 Projecting the main stock carrying unit and the main variant of the brand required,
to get an idea of the customer demand and preference for different variants of
products.
 Role of Beauty advisors ininfluencing customers:
 Key role of promoter’s presence within various outlets.
 Knowledge regarding company’s product, various schemes and offers.
 Ability to influence customers, by observing the customer category and
preference.
 Keeping a regular Track Record of the customers visit in the outlet by
maintaining a record tool. For E.g. Record Book
 Visibility SolutionsAt these outlets:
 This basically deals with Visual merchandising effectiveness at various
outlets.

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 Display awareness in customers.
 Influence of display and visibility.
 Need of display in various outlets and the role of owners in
working out display facility within their outlets.
 Salesmen Productivity at these outlets: This basically deals with
 Number of visits if the salesmen to the designated outlets.
 The number of outlets covered by the salesmen within the market area.
 Total salesmen holding capacity of the agency dealers.
 The working pattern of the Salesmen within agency.
 Distribution Network of ITC to these outlets and the
Competitors;
 Study of distribution network of ITC via flow chart.
 Study of distribution network of HUL via flow chart and emphasizing on various
positive points.

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“DATA
COLLECTION AND
ANALYSIS”

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4.1 Number of outlets surveyed within Various Markets:
Market Area
Surveyed
No. of markets
Surveyed
 Gumti No. 5 10
 Arya Nagar 10
 Vikas Nagar 9
 Gwaltoli & Naveen Market 10
 Kalyanpur 10
 P.Road, Sheshamau & Khalasi line 23
 Pandu Nagar & Kakadeo 9
 Chaman Ganj & Bekan Ganj 18
 Lal Bangla 14
 Kidwai Nagar 18
 Govind Nagar 20
4.2 Procedure towards attainment of objectives:
 Steps undertaken to achieve “OBJECTIVE 1” is as follows
 For analyzing the PCP stock movement, in the outlets of 17 markets, an
analysis of each and every market is taken into consideration.

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 For every market, if 10-15 shops are undertaken for research study, then projection of
stock is done within Data Excel sheet, (See Appendix) while the analysis of every market
for various personal care division has been done.
 Since the process involved Random Sampling Technique hence, to avoid any type of bias,
the outlets are selected on the basis of their:
 Credibility in the market place
 Time period of their existence
 Daily Customer Visits
 Potential in The Market
 Availability of the company and the competitor’s brand.
The Data Analysis has been divided into two Categories:
 Higher Potential Markets – The graphical analysis consist of the survey of
market with maximum number of visits from customers throughout Kanpur.
 Gumti No.5
 Arya Nagar
 Naveen Market
 Kidwai Nagar
 Govind Nagar
 Lal Bangla
 Average Potential Markets- The graphical analysis consists of the survey
of market having a medium potential in comparison to above said markets.
 Vikas Nagar
 Gwaltoli
 P.Road

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 Azad Nagar & Nawabganj
 Khalasi Line
 Chaman Ganj & Bekan Ganj
Market Category Undertaken – Higher Potential Markets
No. of outlets Visited under higher potential markets – Eighty two
Markets name – Mentioned above
Outlets Taken into consideration: Out of 82 outlets surveyed under high
potential category 50 major outlets defining the potential of personal care division in different
markets are taken into consideration, they are as follows:
NaveenMarket/Gwaltoli
1 Kwality Stores 1 New Kamal Stores 1 Kohli General Stores
2 Gulati Provision Stores 2 Bhag Chand Stores 2 Hazari Lal & Sons
3 Arora general stores 3 Tejumal Stores 3 Anand Stores
4 Mool Chand & Sons 4 Dileep Chand Stores 4 Modern Stores
5 Gulati Provision Stores 5 Modern Stores 5 Om General Stores
1 Shree Sidhi Vinayak 1 Medicine centre 1 Raj Button stores
2 Santosh Fancy Stores 2 Bajrang Provision Stores 2 Khanna Kirana Stores
3 Novelty Stores 3 Kishore Brothers 3 Shree Haryash Stores
4 Anupam General Stores 4 Chandra Prov Stores 4 Vishnu Prov. Stores
5 Rakesh Stores 5 Anand Stores 5 Mahesh Prov. Stores
6 Rinkoo Stores 6 Sanjay Prov. Store 6 Vishal Prov. Stores
7 Kishan General Stores 7 Maa Durga Prov. St. 7 Maansi Cosmetic stores
8 Ekta Prov. Stores 8 Balaji Cosmetics 8 Bhagat Ji stores
9 Chaurasia Stores 9 Agarwal Stores 9 Neha Traders
10 Sharma Stores 10 Pandey Prov. Stores 10 Kunal Chemist
Lal Bangla Kidwai Nagar Govind Nagar
Outlets Taken Into Consideration
Gumti No.5 Arya Nagar

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Graphical Study:
For Hair Care & Body Care Division : „For High Potential Market‟
0
10
20
30
40
50
60
70
80
Shampoo Bottle
(200ml, 100ml)
Average Monthly Sales Average Monthly Stock
55
35
30
35
25
80
60
75
"Soaps" Average Monthly Sales
115gm 125gm 75 gm
Superia
Godrej
No.1
Santoor Breeze
100gm 35
90 gm 38
75 gm 22 25
0
5
10
15
20
25
30
35
40
"Soaps" Average monthly sales
Analysis of Premium Segment
Soaps
Analysis of Lower Segment
Soaps
Analysis:
The analysis made in the markets
above shows that on an average the
sales of Fiama shampoo is highly
competitive to Sunsilk, Garnier &
Dove within these markets. Apart from
this if we concentrate towards the soap
division then Lux is in the top most
priority. Though the sales of FDW on
an average is better , but still
Launching of More no. of SKU’s
under premium category soaps like
FDW within competitive prices, to
cater to all segments of people, would
probably enhance the sales more.

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Market Category Undertaken – Average Potential Markets
No. of outlets Visited under Average Potential markets – Sixty eight
Markets name – Already mentioned
Outlets Taken into consideration: Out of 68 outlets surveyed under high
potential category 30 major outlets defining the potential of personal care division in
different markets are taken into consideration, they are as follows:
1 Raj kirana store 1 jayanti provision store 1 Umageneral stores
2 Parvej general stores 2 Paras general Store 2 Naveen stores
3 Arshad general stores 3 Rajeev Dept. Store 3 Atul general stores
4 Raees General store 4 Gupta bandhu store 4 Model stores
5 Bhaiya general stores 5 Shanker General Stores 5 Om General Stores
6 Bholu kirana store
1 Maa Shakti medical store 1 Ganga Medical stores 1 Mahesh stores
2 Sanjay Medical Store 2 Sevak stores 2 Pratap general stores
3 Alok Medical Store 3 Bholu Kirana Stores 3 Jai Bros cosmetics
4 Kherapati medical store 4 Sanjay stores 4 Girlfriend shop
5 Ritisha General store 5 Deepak stores 5 New pandey
6 Vandana fancies
Kalyanpur Azad Nagar/Nawabganj Sheshamau
Outlets Taken Into Consideration
Vikas NagarChaman Ganj P.Road /Khalasi line

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Graphical Study:
For Hair Care & Body Care Division : „For Average Potential Market‟
0
10
20
30
40
50
60
Shampoo Bottle
(200ml, 100ml)
Average Monthly Sales Average Monthly Stock
30
25
18
1515
50
38
40
"Soaps" Average Monthly Sales
115gm 125gm 75 gm
Superia
Godrej
No.1
Santoor Breeze
100gm 42
90 gm 45
75 gm 35 28
0
5
10
15
20
25
30
35
40
45
50
"Soaps" Average monthly sales
Analysis of Premium Segment
Soaps
Analysis of Lower Segment
Soaps
Analysis:
The analysis made in this market
consist of both the chemist & the
cosmetics outlets. As per the
observation, the market has an
optimum sale for Shampoo division in
comparison to competitors. Vivel
brand both under shampoo & Soap
division requires many efforts to be
called upon so as to enhance the sales.
The best way to handle this is launch
of more competitive schemes &offers
under this category. Under toilet Soap
category Superia has shown a very
positive response

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Steps undertaken to achieve “OBJECTIVE 2” is as follows
 Beauty Advisors, play a very crucial role in Product promotion within the
market.
In Kanpur, there are Three Major Markets, which shows the existence of promoters of ITC,
they are as follows:
1) Place- Kakadeo; Location- Food Bazaar
2) Place- Arya Nagar; Location- New Kamal Stores & Tejumal Stores
3) Place-Naveen Market; Location- Kohli General Stores
Observing & Understanding the Role of beauty Advisors within these outlets:
After careful observation of the company promoters within each of the above said outlets.
I carved out the responsibilities that are actually undertaken by these promoters:
1) Proper entertaining the customers, like the one provided in New Kamal & Hazari Lal &
Sons. Where I observed the Promoters tendency to gain a quick Insight of customer
preference and taste and thereby responding to it was much better.
2) Maintaining a proper cooperating and good relationship with other company promoters
and the outlet owner.
3) The Promoters in every above said outlet possessed a tendency to maintain healthy
relationship with their customer, by an efficient way of dealing with the customers.
4) The most important part is that the promoters apart from having a healthy knowledge
regarding company’s product, also possessed knowledge regarding the company’s
product that is more suitable to the customer, along with that two of the promoters I met
were having a deep sense of knowledge regarding skin Products.

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5) I observed these promoters, via their knowledge power that they were much efficient in
entertaining customers and improving sales.
Pictorial view of Promoters of ITC in Well Known Outlets of Kanpur:
Promoter
from New
Kamal
Stores,
Arya Nagar

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Pictorial view of Product Display and promoter of Competitor in an Outlet:
Promoter from
New Tejumal
Stores,
Arya Nagar
Kanpur

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“I have shown
this picture,
to deliver an
idea of
Presenting
company‟s
product.
As the Picture
shows the
competitor
product
display along
with
promoter, the
point to note
is the product
display
presentation,
which in itself
is capable of
luring the
customer.
Hence,
applying this
idea may come
to be fruitful
for the
company.”
Promoter from
New Kamal
Stores,
Arya Nagar
Kanpur

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Some other points to take into consideration:
 For being a successful promoter, also includes you making sure your department is
completely put together. This includes making sure you order everything you need to keep
your department fully stocked, making sure you have eye catching displays, and keep your
products clean and undamaged. No one wants to buy a dusty shampoo bottle or a defective
pump hairspray.
 Every promoter of the company should provide an outstanding service to every customer
that comes into their department to be able to establish regular customers and build their
popularity among them. If customers feel promoters are genuine and knowledgeable about the
cosmetics they are promoting, they will keep coming back to only those promoters plus they
will tell their friends about the promoter and this will enhance their name and reputation
Always make the customer top priority, without them; promoters wouldn't have a job in the first
place.
 Promoters should periodically attend vendor training seminars and preserve the highest
level of product knowledge. Along with that they should keep up-to-date client information for
the sales drive. The same has been followed here by ITC promoters in there outlets, where
they were provided a format for keeping customer regular information.
 Promoters should create and conserve strong partnership with vendor for supporting
business. Along with that they should held makeovers for customers.
 Use knowledge of store products and services to build sales. Know and appropriately
execute all systems and procedures to make sure a fast and efficient transaction.
 Follow operating procedures of special department. Understand and keep department
standards.

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The Role of DS is very crucial in reaching the market depths. Not only, providing good sales
of company’s product, there are still some other roles played by the company DS in attaining
credibility within market.
Understanding the working of DS:
There are three agencies in Kanpur looking the pams division of ITC. They are as follows”:
 Shree Tirupati Consortium
 Shree Agency
 BR Agency
My major time periods have been spend under Shree Tirupati consortium, where I gained an
insight of the working of the agency staff. A major portion was composed of company DS
working under Manager. The daily working started by assigning areas or predetermined areas
as per the schedule to the Salesman.
These salesmen visited their proper sight, and underwent their duty of taking orders and
receipts. Apart from this there were certain points that I analyzed while my visit with the DS to
these shops:
 Proper communication with the owners.
 Most of the DS have build a very healthy relationship with the outlet owners. This could
easily be seen by their dealing with each other.
 The company DS at points even assisted in teaching consumer schemes.
 I was even present during the launch of “Vivel Deo”- This soap has created a great
response on the first day of its launch. The positive point was that the company even
provided a major display for this particular product, and there was a great demand for
Vivel Deo as well. At this point I would like to consider the role of company DS in the
promotional launch.

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 The company usually provides a credit period of 7 days, but to maintain harmonious
relationship, this period was even extended. This was under the whole responsibility of the
DS.
 The work of DS appointed for Arya Nagar and Kalyanpur area, was motivating.
Points To Consider: There is no doubt that the agency DS has been working a lot to
achieve a timely target and to improve sales, which could itself be seen from the PCP stock
movement and outlet owners word of mouth, still I would like to Focus on One question, I
asked form most of the shopkeepers:
Question: Which Company services in the form of Relationship maintenance, Timely visits,
cooperation etc would you rank high?
Answer: PANTENE (P&G) because, (1) Company policies and norms are very
satisfactory in nature. (2) Hardly, there are any complains of no fulfillment of stock.
(3) The display policy of company is also nice. (4) The company persons entertain visits.
(5) The return of outdated product, takes soon and even money is returned back at times.
(6) The fulfillment of stock takes place in less than 24 hrs.
If we throw light on the above statements, then we will come to know that, the competitors are
in much better position, even though we are providing the best via DS.
Now the DS faces adverse conditions when they are not able to fulfill stock, hence they are
considered as the major cause of aggression and this itself, creates negative view for both the
DS and the company as well. OUT OF STOCK was the major problem reported for ITC
products.
Second, big thing noticed was less number of DS reported for Shree agency, hence on my
visits to markets under Shree agency. Shopkeepers even complained for irregular visits from
the company. If we makeover these improvements, then we will soon replace our competitors.

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Steps undertaken to achieve “OBJECTIVE 4” is as follows:
Visibility Solutions basically deals with the availability of:
 Availability of Display tools in the outlets in the form of Display windows, Metal Tablets,
Show cards, Shelf frame, Product Holders, Posters, Danglers, Hangers etc.
 Visual Merchandising.
 Participation of salesmen in providing display outlets to various outlets.
 Role of company, in providing display & visibility solutions.
 Product visibility an essential requirement within various outlets:
1) Displays or advertising alone may not increase product sales
substantially. However, combining advertising and display into
an integrated promotional campaign will usually be more
effective.
2) An effective way of attracting customers to a store is
by having good displays, both exterior and interior. A
customer will be attracted to a display within three to
eight seconds, which is the time a customer spends to
determine interest in a product.
3) The purpose of interior display is to develop desire for the merchandise, show what is
available, and encourage both impulse and planned buying. Three major goals of a store
should be to motivate the customer to spend money, project the image of the store and
keep expenses to a minimum.

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Points Noted while observing the visibility solutions and display
Frequency of company’s product within various outlets
“ANALYSIS”:
 Display availability was found better in
various outlets, especially in Arya Nagar,
Kakadeo and Naveen market outlets.
 Most of the outlets within Kakadeo
Sheshamau, P.road and others reported an
Improvement of company’s product sales
due to display presentation and closure results.
 An Increased consumer appeal of
product displays was also noted in various
market area.
 Better brand awareness among customers and
Outlet owners was reported in various shops
due to consistency in display.
 Improved efficiency of shelf space allocations
especially in Pandu Nagar outlets.
 Improved financial performance of assortments
 Faster more accurate replenishments
 Quicker inventory resets was needed, especially
after the launch of Vivel deo.

36 | P a g e
Points to consider, “to make improvements”:
 Payment scheme for the annual display outlets is not so attractive
in comparison to other major FMCG companies.
 No clear communication, retailers are not aware of the extra 4% discount given to them for
the display.
 Displays not available at most spots where sales for FMCG goods are high. Like Company
Bagh, Azad Nagar etc.
 No proper tracking on merchandising, reported in various outlets.
 It was found that the low profile respondents wants fixed gift as a part of promotional
schemes and high profile respondents want scratch cards, this motivates them more to sell
any product.
 Rate cutting being also a factor for low sales at different areas of Kanpur.
 Communication gap between company and sales man.
E.g. Hindustan unilever directly reaches there salesman and educates them about new
offers and schemes but ITC does not do so. ITC only reaches to (wd) and tells them about
schemes and offers and (wd) manipulates the information and then informs the salesman.
 Apart From this, a window or display area with too little merchandise makes a store
appear to be going out of business or indicates to customer that the establishment is less
than prosperous. Hence, Out of stock report has been attained from a number of outlets.
Generally the lack of merchandise on the display is that the merchandise has been
sold and has not been replaced. This gives a negative picture to consumers.

37 | P a g e
Some suggestions to bring a “Change”:
 Talking about visibility, then I would prefer company to penetrate more deeper into the
market, by offering display at maximum possible locations. For e.g. by my analysis, I
observed Proctor & Gamble , display frequency for personal care division was maximum.
 The outlet owners at various market areas, when asked their preference in terms of best
Company services offered in the areas of display and visibility, ranked Proctor & Gamble at
the top in comparison to HUL
 Most outlets owner also emphasized on the fact that, most companies have been providing
2-3% commission, and this factor lures them for pressure selling of that company’s
product. Hence, the outlet owners demanded some type of commission and promised for
better sales results.
 Apart from this, the company is right now offering 4% extra on windows to the retailers
instead of giving this offer the company should offer the retailer a discount of
4%+2%+(1%cash discount).
: 1000*4%=40
40*2%=.8
 And 1% cash discount can be given if the payment is delivered within 12 days of purchase.
 The company can try to introduce SMS greeting system to make the retailers aware about
different schemes and offers and they can also send them greetings on different occasions
and festivals.
 The company should introduce targets for the retailers and they can be paid accordingly or
can be awarded power points.

38 | P a g e
“Visibility of
PCP good‟s , in a
systematic way.
Gwaltoli
Kanpur
“Visibility of PCP good‟s, at the
centre back, but not in view to the
customers directly, due to hindrance.
Vikas Nagar, Kanpur
“Visibility of
PCP good‟s , in a
systematic way.
Arya Nagar,
Kanpur

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Distribution Model adopted at these outlets by ITC-
(SUPPLY CHAIN)
FACTORY/HUB
K0 K2
Wholesale service provider
(Wsp)
K1
K3
Wholesale dealer (WD)
K4
Wholesalers’ (WD) Retail Stockiest
(sip)
K0 - factory to market.
K1 – factory to WD.
K2 – factory to wsp.
K3 – wsp to WD.
K4 – WD to market.

40 | P a g e
Distribution Model adopted at the Outlets by Competitors:
Hindustan unilevers distribution network is recognized as one of its key strengths. The product
first manufactured is first bought to “JIT‟ Depot from the factory. Then these products are
delivered to the redistribution stockiest according to the order placed by them, this is done through
permanent dispatch plan. Then this stock is send to either retailers or wholesalers, according to the
channel followed by them. And from thereon it is dispatched to consumers.

41 | P a g e
HUL has followed a strategy of building its distribution channels in a
transitional manner
The company follows the concept of “Redistribution Stockiest” (RS) who replaced the
REGISTERED WHOLESALERSs. The REDISTRIBUTION STOCKIST was required to provide
the distribution units to the company salesman. The REDISTRIBUTION STOCKIST financed
his stocks and provided warehousing facilities to store them. The REDISTRIBUTION
STOCKIST also undertook demand stimulation activities on behalf of the company.
The second characteristic of this period was the changes brought in as the company realized
that the REDISTRIBUTION STOCKIST would be able to provide customer service only if he
was serviced well. This knowledge led to the establishment of the “Company Depots” system.
This system helped in transshipment, bulk breaking, and acted as a stock point to minimize
stock-outs at the REDISTRIBUTION STOCKIST level.
In the recent past, .significant change has been the replacement of the Company Depot by a
system of third party; the Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer
stock-points to ensure that stock-outs did not take place. The C&FA system has also resulted
in cost savings in terms of direct transportation and reduced time lag in delivery. The most
important benefit has been improved customer service to the REDISTRIBUTION STOCKIST.

42 | P a g e
Summary of the other findings:
Along with the above analysis and observation of the market for FMCG goods, I also came
across to certain schemes that are been provided by ITC and its competitors, This led me to
throw light on other aspects of the business as well. The Various schemes or offers are as
follows”:
 HUL covers a huge market of PCP division. HUL Ltd. & other companies give consumer
offer, promo offer. They give different offer on different products, when customer
(shopkeeper) sale is increasing. Some companies like Godrej No. 1 gives 16% on CFC of
40 gm. pack. The following figure shows HUL scheme or Offers :
 Godrej consumer products ltd. makes only soaps and the consumer offers are as follows;

43 | P a g e
 Some offers from ITC are as follows:
What can be seen from the above data is that, like other companies ITC too have
been providing discount offers. But the offers are very limited in comparison to
others. To penetrate deeper into the market, more strategic skills in the form of
cash and credit discounts to various outlets owners is needed.

44 | P a g e
“Recommendations & Conclusions”:
1. All theories and concepts as studied till now got a practical application, by analyzing
various aspects of the objectives undertaken to study.
2. Providing timely stock and meeting the essential requirement with time, is very
important to gain credibility in the market place.
3. This experience also enabled me to understand the various pros & cons associated
with the marketing segment of PCP goods, it also inculcated within me a deep knowledge
regarding various company product’s and what acts and skills are required to attain a
proficiency.
4. As I was floated for the first time in the market, it shifted with tremendous confidence
inside me.
5. It did to same extent help in developing a better understanding different marketing forgone.
6. It brings with in a sense of responsibility and passion to work for the organization.
7. I had an opportunity to meet professionals placed very well within the industry.
8. The study undertaken by me, is time constrained that is limited upto 30 days of period.
9. All the reporting regarding PCP stock movement has been done on an average basis,
hence, sales may even fluctuate. But may not vary much.
10. It is possible that some potential source might have remained entrapped

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“BIBLIOGRAPHY”
Famous Works of:
1) Marketing Management – Philip Kotler
2) Marketing methodology – C.R. Kothari
3) Marketing Research – Boyd
Magazines & Journal study:
1) Business Today
2) Market Compass
3) India Today
Websites surfing:
 www.google.com
 www.itcportal.com
 www.wikepedia.com

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“APPENDIX”
“HYPERLINK”
ST_ Chemist Final1 (Autosaved).xlsx

ITC summer-internship_report

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