“A STUDY OF LEAD COMPETITORS WITH

RESPECT TO ITC

A project report submitted to Andhra University, in partial fulfillment for the award of the degree of

BACHELOR OF BUSINESS MANAGEMENT

By

DIVYA RANJAN RATHO

Under The Esteemed Guidance Of

COLLEGE OF MANAGEMENT STUDIESGANDHI INSTITUTE OF TECHNOLOGY AND MANAGEMENT

(AFFILIATED TO ANDHRA UNIVERSITY)VISAKHAPATNAM – 530045

2005 – 2008

DECLARATION

I here by declare that the Project Report "A study on lead competitors

with respect to organizational structure, sales and distribution ”

submitted by me in partial fulfillment for the award of "BACHELOR OF

BUSINESS MANAGEMENT (B.B.M.)" degree is a genuine bonafide work

done by me and has not been submitted to any other university and

institution.

DATE:

PLACE: (DIVYA RANJAN RATHO)

CERTIFICATE

This is to certify that the project entitled” A study on lead

competitors with respect to organizational structure, sales and

distribution” is a bonafide work carried out by Divya Ranjan

Ratho under my guidance and supervision and has been submitted

to the college of management studies (CMS) GITAM, in partial

fulfillment for the award of BBM degree

.

PLACE: VISAKHAPATNAM Associate Professor

DATE: -S APPA RAO CMS-GITAM VISHAKHAPATNAM

PREFACE

Summer Internship is an essential requirement of the B.B.M Program. The

main objective of this Summer Internship is to provide an insight into the

industrial environment among the students.

In the end of second year, Summer Internship has become mandatory to the

students because they may get personal experience and can learn more by

exposure to the industry. They can get Practical Knowledge of the industries

and they get an opportunity to know the working patterns in the various

departments, such as, marketing, production, personnel & finance etc.

Approach towards marketing believes that the best investment that

organizations can make towards its people is in increasing their knowledge,

skills etc. This is done periodically by identifying the marketing needs,

imparting marketing and measuring the effectiveness of the Marketing

programmes, there by assessing how effective the marketing programmes

are and their contribution to the bottom line of the business. Marketing of

services focuses on various aspects.

The gap between the expected and actual is monitored to identify the

marketing needs. The study is divided into five chapters. Chapter 1 deals

with theoretical framework which includes the main subject, topic related

concepts, review of literature. Chapter 2 deals with the methodology adapted

for the study. Chapter 3 deals with the organization’s profile. Chapter 4

deals with data analysis. Chapter 5 deals with findings. Suggestions and

conclusions of the study done .

ACKNOWLEDGEMENT

In the presentation of this report I recall with a sincere gratitude each of

those who have been a source of immense help and inspiration during the

process of my project.

My special thanks to the Prof. SIVA RAMA KRISHNA Principal CMS -

GITAM for giving me an opportunity to do the project.

I am thankful to Dr.RAM MOHAN RAO,Associate Professor and Head of

the department for giving me an opportunity to do the best

I am thankful to Dr –S APPA RAO, Associate Prof CMS GITAM who

has been the guiding force and inspiration out this project.

I extend my sincere thanks to Mr. JACOB. P. JOHN Asst Manager of

GFP of ITC for giving me permission to do the project work in their

organization and its guidance throughout the study .

(DIVYA RANJAN RATHO)

CONTENTS

S .NO. CHAPTER PAGE

NO.

1. INTRODUCTION

Introduction to Marketing

Competative technique

2. METHODOLOGY

Need for the study

Objectives of the study

Research Design and Methodlogy

3. ORGANISATION PROFILE

Profile of FMCG company

Profile of ITC

4. DATA ANALYSIS AND INTERPRETATION

5. SUMMARY, FINDINGS AND SUGGESTIONS

6. ANNEXURES & BIBLIOGRAPHY

CHAPTER 1

INTRODUCTION TO MARKETING:

A market-focused, or customer-focused, organization first determines

what its potential customer’s desire, and then builds the product or service.

Marketing theory and practice is justified in the belief that customers use a

product or service because they have a need, or because it provides a

perceived benefit.

Two major factors of marketing are the recruitment of new customers

(acquisition) and the retention and expansion of relationships with existing

customers (base management). Once a marketer has converted the

prospective buyer, base management marketing takes over. The process for

base management shifts the marketer to building a relationship, nurturing the

links, enhancing the benefits that sold the buyer in the first place, and

improving the product/service continuously to protect the business from

competitive encroachments.

For a marketing plan to be successful, the mix of the four "Ps" must

reflect the wants and desires of the consumers or Shoppers in the target

market. Trying to convince a market segment to buy something they don't

want is extremely expensive and seldom successful. Marketers depend on

insights from marketing research both formal and informal, to determine

what consumers want and what they are willing to pay for. Marketers hope

that this process will give them a sustainable competitive advantage.

Marketing management is the practical application of this process. The offer

is also an important addition to the 4P's theory.

The American Marketing Association (AMA) states, "Marketing is an

organizational function and a set of processes for creating, communicating

and delivering value to customers and for managing customer relationships

in ways that benefit the organization and its stakeholders.

Marketing methods are informed by many of the social sciences,

particularly psychology, sociology, and economics. Anthropology is also a

small, but growing influence. Market research underpins these activities.

Through advertising, it is also related to many of the creative arts. Marketing

is a wide and heavily interconnected subject with extensive publications. It

is also an area of activity infamous for re-inventing itself and its vocabulary

according to the times and the culture.

Concept of Marketing:

"Marketing" is an instructive business domain that serves to inform

and educate target markets about the value and competitive advantage of a

company and its products. “Value” is worth derived by the customer from

owning and using the product. “Competitive Advantage” is a depiction that

the company or its products are each doing something better than their

competition in a way that could benefit the customer.

Marketing is focused on the task of conveying pertinent company and

product related information to specific customers, and there are a multitude

of decisions (strategies) to be made within the marketing domain regarding

what information to deliver, how much information to deliver, to whom to

deliver, how to deliver, when to deliver, and where to deliver. Once the

decisions are made, there are numerous ways (tactics) and processes that

could be employed in support of the selected strategies.

As Marketing is often misinterpreted as just advertising or sales, Chris

Newton, in What is marketing? (Marketing Help Online, 2008), defined

marketing as every strategy and decision made in the following twelve areas:

Identifying and quantifying the need in the marketplace

Identifying and quantifying the target markets

Identifying the optimum cost effective media – online and offline - to

reach the target markets

Reviewing the priorities of the product offering in your overall

product mix ‘matrix’

Identifying and developing the most effective distribution channels,

be they wholesaler networks, partnering alliances, franchising, or any

number of conduits to the market.

Testing different ways of packaging the concepts or products to find

their most 'easy-to-sell' form

Testing to find the optimum pricing strategies

Developing effective promotional strategies and effective advertising

and supporting collateral, offers, and launch strategies

Developing and documenting the sales process

Finding the optimum execution of the sales process – through testing

of selling scripts, people selection, supporting collateral, skills and

attitudinal training, tracking, measuring and refining

Ensuring that sales projections reflect realistic production capacities

Developing nurture programs to optimize the lifetime value of the

customer

The goal of marketing is to build and maintain a preference for a

company and its products within the target markets. The goal of any

business is to build mutually profitable and sustainable relationships with its

customers. While all business domains are responsible for accomplishing

this goal, the marketing domain bears a significant share of the

responsibility.

Within the larger scope of its definition, marketing is performed

through the actions of three coordinated disciplines named: “Product

Marketing”, “Corporate Marketing”, and “Marketing Communications”.

Two levels of marketing:

Strategic marketing: attempts to determine how an organization competes

against its competitors in a market place. In particular, it aims at generating a

competitive advantage relative to its competitors.

Operational marketing: executes marketing functions to attract and keep

customers and to maximize the value derived for them, as well as to satisfy

the customer with prompt services and meeting the customer expectations.

Operational Marketing includes the determination of the porter's five forces

Four Ps:

In the early 1960s, Professor Neil Borden at Harvard Business School

identified a number of company performance actions that can influence the

consumer decision to purchase goods or services. Borden suggested that all

those actions of the company represented a “Marketing Mix”. Professor E.

Jerome McCarthy, also at the Harvard Business School in the early 1960s,

suggested that the Marketing Mix contained 4 elements: product, price,

place and promotion.

In popular usage, "marketing" is the promotion of products, especially

advertising and branding. However, in professional usage the term has a

wider meaning which recognizes that marketing is customer-centered.

Products are often developed to meet the desires of groups of customers or

even, in some cases, for specific customers. E. Jerome McCarthy divided

marketing into four general sets of activities. His typology has become so

universally recognized that his four activity sets, the Four Ps, have passed

into the language.

The four Ps are:

Product: The product aspects of marketing deal with the specifications

of the actual goods or services, and how it relates to the end-user's needs

and wants. The scope of a product generally includes supporting

elements such as warranties, guarantees, and support.

Pricing: This refers to the process of setting a price for a product,

including discounts. The price need not be monetary - it can simply be

what is exchanged for the product or services, e.g. time, energy,

psychology or attention.

Promotion: This includes advertising, sales promotion, publicity, and

personal selling, branding and refers to the various methods of promoting

the product, brand, or company.

Placement (or distribution): refers to how the product gets to the

customer; for example, point of sale placement or retailing. This fourth P

has also sometimes been called Place, referring to the channel by which a

product or services is sold (e.g. online vs. retail), which geographic

region or industry, to which segment (young adults, families, business

people), etc. also referring to how the environment in which the product

is sold in can affect sales.

These four elements are often referred to as the marketing mix, which

a marketer can use to craft a marketing plan. The four Ps model is most

useful when marketing low value consumer products. Industrial products,

services, high value consumer products require adjustments to this model.

Services marketing must account for the unique nature of services. Industrial

or B2B marketing must account for the long term contractual agreements

that are typical in supply chain transactions. Relationship marketing attempts

to do this by looking at marketing from a long term relationship perspective

rather than individual transactions.

As a counter to this, Morgan, in Riding the Waves of Change (Jossey-

Bass, 1988), suggests that one of the greatest limitations of the 4 Ps

approach "is that it unconsciously emphasizes the inside–out view (looking

from the company outwards), whereas the essence of marketing should be

the outside–in approach". Nevertheless, the 4 Ps offer a memorable and

workable guide to the major categories of marketing activity, as well as a

framework within which these can be used.

Four New Ps:

Personalization: It is here referred customization of products and

services through the use of the Internet. Early examples include Dell on-

line and Amazon.com, but this concept is further extended with emerging

social media and advanced algorithms. Emerging technologies will

continue to push this idea forward.

Participation: This is to allow the customer to participate in what the

brand should stand for; what should be the product directions and even

which ads to run. This concept is laying the foundation for disruptive

change through democratization of information.

Peer-to-Peer: This refers to customer networks and communities where

advocacy happens. The historical problem with marketing is that it is

“interruptive” in nature, trying to impose a brand on the customer. This is

most apparent in TV advertising. These “passive customer bases” will

ultimately be replaced by the “active customer communities”. Brand

engagement happens within those conversations. P2P is now being

referred as Social Computing and is likely to be the most disruptive force

in the future of marketing.

Predictive modeling: This refers to algorithms that are being

successfully applied in marketing problems (both a regression as well as

a classification problem).

Product:

Scope

* Breadth -- number of product lines in a range. * Depth -- number of

product items in a product line.

Steps in product design:

Design and development of product ideas.

Selection of and sifting through product ideas.

Design and testing of product concept.

Analysis of business instead of product concept.

Design and testing of emotional product.

Packaging:

Requirements of good packaging:

Functional - effectively contain and protect the contents

Provide convenience during distribution, sale, opening, use, reuse, etc.

Be environmentally responsible

Be cost effective

Appropriately designed for target market

Eye-catching (particularly for retail/consumer sales)

Communicate attributes and recommended use of the product and

package

Compliant with retailers' requirements

Promotes image of enterprise

Distinguishable from competitors' products

Meet legal requirements for product and packaging

Point of difference in service and supply of product.

For a perfect product, perfect color.

Forms of packaging:

Specialty packaging — emphasizes the elegant character of the product

Packaging for double-use

Combination packaging two or more products packaged in the same

container

Kaleidoscopic packaging — packaging changes continually to reflect a

series or particular theme

Packaging for immediate consumption — to be thrown away after use

Packaging for resale — packed, into appropriate quantities, for the

retailer or wholesaler

Trademarks:

Significance of a trademark:

Distinguishes one company's goods from those of another

Serves as advertisement for quality

Protects both consumers and manufacturers

Used in displays and advertising campaigns

Used to market new products

Brands:

A brand is a name, term, design, symbol, or other feature that distinguishes

products and services from competitive offerings. A brand represents the

consumers' experience with an organization, product, or service.

A brand has also been defined as an identifiable entity that makes a specific

promise of value.

Co-branding involves marketing activity involving two or more products.

Pricing:

Pricing refers to the amount of money exchanged for a product. This value is

determined by utility to the consumer in terms of money and/or sacrifice that

the consumer is prepared to give for it.

Objectives:

Increase sales volume

Increase revenue

Achieve or increase profits

Increase or maintain market share

Eliminate competition

Achieve advantages of mass production

Factors influencing price-determination:

Production and distribution costs

Substitute goods available

Normal trade practices

Fixed prices

Reaction of distributors

Reaction of consumers

Nature of demand:

o elastic/inelastic

Form of market:

o Perfect competition

o Monopolistic competition

o Monopoly

o Oligopoly

Steps to determine price:

Determine market share to be captured

Set up price strategy

Estimate demand

Evaluate competitors' reactions

Distribution (Place):

Channels:

Manufacturer to consumer (most direct)

Manufacturer to wholesaler to retailer to consumer (traditional)

Manufacturer to agent to retailer to consumer (current)

Manufacturer to agent to wholesaler to retailer to consumer

Manufacturer to agent to customer ( ex : DCL,AMWAY )

Manufacturers:

Reasons for direct selling methods:

Manufacturer wants to demonstrate goods.

Wholesalers, retailers and agents not actively selling.

Manufacturer unable to convince wholesalers or retailers to stock

product.

High profit margin added to goods by wholesalers and retailers.

Middlemen unable to transport.

Reasons for indirect selling methods:

Manufacturer does not have the financial resources to distribute

goods.

Distribution channels already established.

Manufacturer has no knowledge of efficient distribution.

Manufacturer wishes to use capital for further production.

Too many consumers in a large area; difficult to reach.

Manufacturer does not have a wide assortment of goods to enable

efficient marketing.

Direct on-selling advantages.

Wholesalers:

Reasons for using wholesalers:

Bear risk of selling goods to retailer or consumer

Storage space

Decrease transport costs

Grant credit to retailers

Able to sell for the manufacturers

Give advice to manufacturers

Break down products into smaller quantities

Reasons for bypassing wholesalers:

Limited storage facilities

Retailers' preferences

Wholesaler cannot promote products successfully

Development of wholesalers' own brands

Desire for closer market contact

Position of power

Cost of wholesalers' services

Price stabilization

Need for rapid distribution

Make more money

Ways of bypassing wholesalers:

Sales offices or branches

Mail orders

Direct sales to retailers

Traveling agents

Direct Orders

Agents:

Commission agents work for anyone who needs their services. They do

not acquire ownership of goods but receive del credere commission.

Selling agents act on an extended contractual basis, selling all of the

products of the manufacturer. They have full authority regarding price

and terms of sale.

Buying agents buy goods on behalf of producers and retailers. They have

an expert knowledge of the purchasing function.

Brokers specialize in the sale of one specific product. They receive a

brokerage.

Factory representatives represent more than one manufacturer. They

operate within a specific area and sell related lines of goods but have

limited authority regarding price and sales terms.

OTHER COMPETETIVE TECHNIQUES:

SALES AND DISTRIBUTION

A sale is the pinnacle activity involved in selling products or services

in return for money or other compensation. It is an act of completion of a

commercial activity. The "deal is closed", means the customer has consented

to the proposed product or service by making full or partial payment (as in

case of installments) to the seller.

A sale is completed by the seller, the owner of the goods. It starts with

consent (or agreement) to an acquisition or appropriation or request followed

by the passing of title (property or ownership) in the item and the application

and due settlement of a price, the obligation for which arises due to the

seller's requirement to pass ownership, being a price the seller is happy to

part with ownership of or any claim upon the item. The purchaser, though a

party to the sale, does not execute the sale, only the seller does that. To be

precise the sale completes prior to the payment and gives rise to the

obligation of payment. If the seller completes the first two above stages

(consent and passing ownership) of the sale prior to settlement of the price

the sale is still valid and gives rise to an obligation to pay.

Sales agents:

Agents in the sales process can be defined as representing either side

of the sales process for example:

Sales broker or Seller agency or seller agent

This is a traditional role where the salesperson represents a person or

company on the selling end of the deal.

Buyers broker or Buyer brokerage

This is where the salesperson represents the consumer making the purchase.

This is most often applied in large transactions.

Disclosed dual agent

This is where the salesperson represents both parties in the sale and acts as a

mediator for the transaction. The role of the salesperson here is to over see

that both parties receive an honest and fair deal, and is responsible to both.

Transaction broker

This is where the salesperson doesn't represent either party, but handles the

transaction only. This is where the seller owes no responsibility to either

party getting a fair or honest deal, just that all of the papers are handled

properly.

Sales Outsourcing

This is direct branded representation where the sales reps are recruited,

hired, and managed by an external entity but hold quotas, represent

themselves as the brand of the client, and report all activities (through their

own sales management channels) back to the client. It is akin to a virtual

extension of a sales force. (see Sales Outsourcing entry)

Sales Managers

It is the goal of a qualified and talented sales manager to implement various

sales strategies and management techniques in order to facilitate improved

profits and increased sales volume. They are also responsible for

coordinating the sales and marketing department as well as oversight

concerning the fair and honest execution of the sales process by his agents.

Salespersons

The primary function of professional sales is to generate and close leads,

educate prospects, fill needs and satisfy wants of consumers appropriately,

and therefore turn prospective customers into actual ones. The successful

questioning to understand a customer's goal, the further creation of a

valuable solution by communicating the necessary information that

encourages a buyer to achieve their goal at an economic cost is the

responsibility of the salesperson or the sales engine (e.g. internet, vending

machine etc).

The Sales and Marketing Relationship:

Marketing plays a very important part in sales. If the marketing

department generates a potential customers list, it can be beneficial for sales.

The marketing department's goal is to bring people to the sales team using

promotional techniques such as advertising, sales promotion, publicity, and

public relations. In most large corporations, the marketing department is

structured in a similar fashion to the sales department and the managers of

these teams must coordinate efforts in order to drive profits and business

success. Driving more customers "through the door" gives the sales

department a better chance by ratio of selling their product to the consumer.

There may also be a downside to this phenomenon. Very often (for legal

reasons, e.g. in non-store retailing) companies have to provide credit to

customers. This may cause a conflict between the sales department on the

one hand and the credit department on the other hand. See Burez & Van den

Poel (2007) for potential solutions to this problem.

Marketing potentially negates need for sales:

Some sales authors and consultants contend that an expertly planned

and executed marketing strategy may negate the need for outside sales

entirely. They suggest that by effectively bringing more customers "through

the door" and enticing them to contact you, sales organizations can

dramatically improve their results, efficiency, profitability, and allow

salespeople to provide a drastically higher level of customer service and

satisfaction, instead of spending the majority of their working hours

searching for someone to sell to.

Sales and Marketing Alignment and Integration:

Another key area of conversation that has arisen is the need for

alignment and integration between corporate sales and marketing functions.

According to a report from the Chief Marketing Officer (CMO) Council,

only 40 percent of companies have formal programs, systems or processes in

place to align and integration between the two critical functions.

Traditionally, these two functions, as referenced above, has been largely

segmented and left in soiled areas of tactical responsibility. In Glen

Petersen’s book, “The Profit Maximization Paradox,” the changes in the

competitive landscape between the 1950s and today are so dramatic that the

complexity of choice, price and opportunities for the customer forced this

seemingly simple and integrated relationship between sales and marketing to

change forever. Petersen goes on to highlight that salespeople are spending

approximately 40 percent of their time preparing customer-facing

deliverables while leveraging less than 50 percent of the materials created by

marketing, adding to the perception that marketing is out of touch with the

customer, and sales is resistant to messaging and strategy. Organizations like

The Coalition to Leverage and Optimize Sales Effectiveness (CLOSE)

"CLOSE". have emerged as a facilitator to mend the relationship between

sales and marketing.

What is Selling?

Academically, selling is thought of as a part of marketing, however,

the two disciplines are completely different. Sales often forms a separate

grouping in a corporate structure, employing separate specialist operatives

known as salespeople (singular: salesperson). Selling is considered by many

to be a sort of persuading "art". Contrary to popular belief, the

methodological approach of selling refers to a systematic process of

repetitive and measurable milestones, by which a salesperson relates his or

her offering of a product or service in return enabling the buyer to achieve

their goal in an economic way.

While the sales process refers to a systematic process of repetitive and

measurable milestones, the definition of the selling is somewhat ambiguous

due to the close nature of advertising, promotion, public relations, and direct

marketing

Sales departments often form a separate grouping in a corporate

structure, employing individuals who specialize in sale specific roles.

Selling involves sales which are the pinnacle act of completed of a

purchasing activity.

Selling also involves salespeople who are the primary agents of

facilitating sales.

Selling is the profession-wide term, much like marketing defines a

profession. Recently, attempts have been made to clearly understand who is

in the sales profession, and who is not. There are many articles looking at

marketing, advertising, promotions, and even public relations as ways to

create a unique transaction.

Many believe that the focus of selling is on the human agents involved

in the exchange between buyer and seller. Effective selling also requires a

systems approach , at minimum involving roles that sell, enable selling, and

develop sales capabilities. Selling also involves salespeople who possess

specific set of sales skills and knowledge are required to facilitate the

exchange of value between buyers and sellers that is unique from marketing,

advertising, etc.

The Distribution Channel:

Frequently there may be a chain of intermediaries, each passing the

product down the chain to the next organization, before it finally reaches the

consumer or end-user. This process is known as the 'distribution chain' or the

'channel.' Each of the elements in these chains will have their own specific

needs, which the producer must take into account, along with those of the

all-important end-user.

Channels

A number of alternate 'channels' of distribution may be available:

Selling direct, such as via mail order, Internet and telephone sales

Agent, who typically sells direct on behalf of the producer

Distributor (also called wholesaler), who sells to retailers

Retailer (also called dealer or reseller), who sells to end customers

Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone.

They may be just as important for moving a service from producer to

consumer in certain sectors, since both direct and indirect channels may be

used. Hotels, for example, may sell their services (typically rooms) directly

or through travel agents, tour operators, airlines, tourist boards, centralized

reservation systems, etc.

There have also been some innovations in the distribution of services. For

example, there has been an increase in franchising and in rental services -

the latter offering anything from televisions through tools. There has also

been some evidence of service integration, with services linking together,

particularly in the travel and tourism sectors. For example, links now exist

between airlines, hotels and car rental services. In addition, there has been a

significant increase in retail outlets for the service sector. Outlets such as

estate agencies and building society offices are crowding out traditional

grocers from major shopping areas.

Supply Chain:

A supply chain or logistics network is the system of organizations,

people, technology, activities, information and resources involved in moving

a product or service from supplier to customer. Supply chain activities

transform natural resources, raw materials and components into a finished

product that is delivered to the end customer. In sophisticated supply chain

systems, used products may re-enter the supply chain at any point where

residual value is recyclable. Supply chains link value chains.

A typical supply chain begins with ecological and biological

regulation of natural resources, followed by the human extraction of raw

material and includes several production links, for instance; component

construction, assembly and merging before moving onto several layers of

storage facilities of ever decreasing size and ever more remote geographical

locations, and finally reaching the consumer.

Many of the exchanges encountered in the supply chain will therefore

be between different companies who will seek to maximize their revenue

within their sphere of interest, but may have little or no knowledge or

interest in the remaining players in the supply chain. More recently, the

loosely coupled, self-organizing network of businesses that cooperates to

provide product and service offerings has been called the Extended

Enterprise.

Supply Chain Management:

In the 1980s the term Supply Chain Management (SCM) was

developed, to express the need to integrate the key business processes, from

end user through original suppliers. Original suppliers being those that

provide products, services and information that add value for customers and

other stakeholders. The basic idea behind the SCM is that companies and

corporations involve themselves in a supply chain by exchanging

information regarding market fluctuations, production capabilities.

If all relevant information is accessible to any relevant company,

every company in the supply chain has the possibility to and can seek to help

optimizing the entire supply chain rather than sub optimize based on a local

interest. This will lead to better planned overall production and distribution

which can cut costs and give a more attractive final product leading to better

sales and better overall results for the companies involved.

Incorporating SCM successfully leads to a new kind of competition on

the global market where competition is no longer of the company versus

company form but rather takes on a supply chain versus supply chain form.

The primary objective of supply chain management is to fulfill

customer demands through the most efficient use of resources, including

distribution capacity, inventory and labor. In theory, a supply chain seeks to

match demand with supply and do so with the minimal inventory. Various

aspects of optimizing the supply chain include liaising with suppliers to

eliminate bottlenecks; sourcing strategically to strike a balance between

lowest material cost and transportation, implementing JIT (Just In Time)

techniques to optimize manufacturing flow; maintaining the right mix and

location of factories and warehouses to serve customer markets, and using

location/allocation, vehicle routing analysis, Dynamic programming and, of

course, traditional logistics optimization to maximize the efficiency of the

distribution side.

There is often confusion over the terms Supply Chain and Logistics. It

is now generally accepted that the term Logistics applies to activities within

one company/organization involving distribution of product whereas the

term Supply Chain also encompasses manufacturing and procurement and

therefore has a much broader focus as it involves multiple enterprises,

including suppliers, manufacturers and retailers, working together to meet a

customer need for a product or service.

Starting in the 1990s several companies choose to outsource the

logistics aspect of supply chain management by partnering with a 3PL,

Third-party logistics provider. Companies also outsource production to

contract manufacturers.

There are actually four common Supply Chain Models. Besides the

two mentioned above, there are the American Productivity & Quality

Center's (APQC) Process Classification Framework and the Supply Chain

Best Practices Framework. Critics has questioned the validity of all these

models.

Advertising:

Advertising is a form of communication that typically attempts to

persuade potential customers to purchase or to consume more of a particular

brand of product or service. Many advertisements are designed to generate

increased consumption of those products and services through the creation

and reinforcement of "brand image" and "brand loyalty". For these purposes,

advertisements sometimes embed their persuasive message with factual

information. Every major medium is used to deliver these messages,

including television, radio, cinema, magazines, newspapers, video games,

the Internet and billboards. Advertising is often placed by an advertising

agency on behalf of a company or other organization.

Advertisements are seen on the seats of shopping carts, on the walls of

an airport walkway, on the sides of buses, and are heard in telephone hold

messages and in-store public address systems. Advertisements are often

placed anywhere an audience can easily or frequently access visual, audio

and printed information.

Organizations that frequently spend large sums of money on

advertising that sells what is not, strictly speaking, a product or service

include political parties, interest groups, religious organizations, and military

recruiters. Non-profit organizations are not typical advertising clients, and

may rely on free modes of persuasion, such as public service

announcements.

Advertising spending has increased dramatically in recent years. In

2006, spending on advertising has been estimated at $155 billion in the

United States and $385 billion worldwide, and the latter to exceed $500

billion by 2010.

While advertising can be seen as necessary for economic growth, it is

not without social costs. Unsolicited Commercial Email and other forms of

spam have become so prevalent as to have become a major nuisance to users

of these services, as well as being a financial burden on internet service

providers. Advertising is increasingly invading public spaces, such as

schools, which some critics argue is a form of child exploitation.

Mobile Billboard Advertising:

Mobile Billboards are flat-panel campaign units in which their sole

purpose is to carry advertisements along dedicated routes selected by clients

prior to the start of a campaign. Mobile Billboard companies do not typically

carry third-party cargo or freight. Mobile displays are used for various

situations in metropolitan areas throughout the world, including:

Target advertising

One day, and long term campaigns

Convention

Sporting events

Store openings or other similar promotional events

Big advertisements from smaller companies

Public service advertising:

The same advertising techniques used to promote commercial goods

and services can be used to inform, educate and motivate the public about

non-commercial issues, such as AIDS, political ideology, energy

conservation, religious recruitment, and deforestation.

Advertising, in its non-commercial guise, is a powerful educational

tool capable of reaching and motivating large audiences. "Advertising

justifies its existence when used in the public interest - it is much too

powerful a tool to use solely for commercial purposes." - Attributed to

Howard Gossage by David Ogilvy

Public service advertising, non-commercial advertising, public interest

advertising, cause marketing, and social marketing are different terms for (or

aspects of) the use of sophisticated advertising and marketing

communications techniques (generally associated with commercial

enterprise) on behalf of non-commercial, public interest issues and

initiatives.

In the United States, the granting of television and radio licenses by

the FCC is contingent upon the station broadcasting a certain amount of

public service advertising. To meet these requirements, many broadcast

stations in America air the bulk of their required Public Service

Announcements during the late night or early morning when the smallest

percentage of viewers are watching, leaving more day and prime time

commercial slots available for high-paying advertisers.

Public service advertising reached its height during World Wars I and

II under the direction of several governments. Now in days, people average

around 500 advertisements a day, found one researcher.

Types of advertising:

Media

Paying people to hold signs is one of the oldest forms of advertising,

as with this Human directional pictured above

A bus with an advertisement for GAP in Singapore. Buses and other

vehicles are popular mediums for advertisers.

A DBAG Class 101 with UNICEF ads at Ingolstadt main railway station

Commercial advertising media can include wall paintings, billboards,

street furniture components, printed flyers and rack cards, radio, cinema and

television ads, web banners, mobile telephone screens, shopping carts, web

popup’s, skywriting, bus stop benches, human directional, magazines,

newspapers, town criers, sides of buses or airplanes ("logojets"), in-flight

advertisements on seatback tray tables or overhead storage bins, taxicab

doors, roof mounts and passenger screens, musical stage shows, subway

platforms and trains, elastic bands on disposable diapers, stickers on apples

in supermarkets, shopping cart handles, the opening section of streaming

audio and video, posters, and the backs of event tickets and supermarket

receipts. Any place an "identified" sponsor pays to deliver their message

through a medium is advertising.

Another way to measure advertising effectiveness is known as ad

tracking. This advertising research methodology measures shifts in target

market perceptions about the brand and product or service. These shifts in

perception are plotted against the consumers’ levels of exposure to the

company’s advertisements and promotions.The purpose of Ad Tracking is

generally to provide a measure of the combined effect of the media weight

or spending level, the effectiveness of the media buy or targeting, and the

quality of the advertising executions or creative. Ad Tracking Article

Television commercials:

The TV commercial is generally considered the most effective mass-

market advertising format, as is reflected by the high prices TV networks

charge for commercial airtime during popular TV events. The annual Super

Bowl football game in the United States is known as the most prominent

advertising event on television. The average cost of a single thirty-second

TV spot during this game has reached $2.7 million (as of 2007).

The majority of television commercials feature a song or jingle that

listeners soon relate to the product. See Music in advertising.

Virtual advertisements may be inserted into regular television

programming through computer graphics. It is typically inserted into

otherwise blank backdrops or used to replace local billboards that are not

relevant to the remote broadcast audience. More controversially, virtual

billboards may be inserted into the background where none existing in real-

life. Virtual product placement is also possible.

Infomercials:

There are two types of infomercials, described as long form and short

form. Long form infomercials have a time length of 30 minutes. Short form

infomercials are 30 seconds to 2 minutes long. Infomercials are also known

as direct response television (DRTV) commercials.

The main objective in an infomercial is to create an impulse purchase,

so that the consumer sees the presentation and then immediately buys the

product through the advertised toll-free telephone number or website.

Infomercials describe, display, and often demonstrate products and their

features, and commonly have testimonials from consumers and industry

professionals.

Some well known companies in the infomercial business are Script to

Screen, Hawthorne Direct, International Shopping Network and Guthy-

Renker.

Newer media and advertising approaches:

Increasingly, other media are overtaking television because of a shift

towards consumer's usage of the internet as well as devices such as TiVo.

Advertising on the World Wide Web is a recent phenomenon. Prices

of Web-based advertising space are dependent on the "relevance" of the

surrounding web content and the traffic that the website receives.

E-mail advertising is another recent phenomenon. Unsolicited bulk E-

mail advertising is known as "spam".Some companies have proposed to

place messages or corporate logos on the side of booster rockets and the

International Space Station. Controversy exists on the effectiveness of

subliminal advertising (see mind control), and the pervasiveness of mass

messages (see propaganda).

Unpaid advertising (also called word of mouth advertising), can

provide good exposure at minimal cost. Personal recommendations ("bring a

friend", "sell it"), spreading buzz, or achieving the feat of equating a brand

with a common noun (in the United States, "Xerox" = "photocopier",

"Kleenex" = tissue, "Vaseline" = petroleum jelly, "Hoover" = vacuum

cleaner, and "Band-Aid" = adhesive bandage) — these are the pinnacles of

any advertising campaign. However, some companies oppose the use of

their brand name to label an object. Equating a brand with a common noun

also risks turning that brand into a genericized trademark - turning it into a

generic term which means that its legal protection as a trademark is lost.As

the mobile phone became a new mass media in 1998 when the first paid

downloadable content appeared on mobile phones in Finland, it was only a

matter of time until mobile advertising followed, also first launched in

Finland in 2000. By 2007 the value of mobile advertising had reached 2.2

billion dollars and providers such as Admob delivered billions of mobile

ads.

More advanced mobile ads include banner ads, coupons, MMS picture

and video messages, advergames and various engagement marketing

campaigns. A particular feature driving mobile ads is the 2D Barcode, which

replaces the need to do any typing of web addresses, and uses the camera

feature of modern phones to gain immediate access to web content. 83

percent of Japanese mobile phone users already are active users of 2D

barcodes.A new form of advertising that is growing rapidly is Social

network advertising. It is Online Advertising with a focus on social

networking sites. This is a relatively immature market, but it has shown a lot

of promise as advertisers are able to take advantage of the demographic

information the user has provided to the social networking site.

From time to time, The CW airs short programming breaks called

"Content Wraps," to advertise one company's product during an entire

commercial break. The CW pioneered "content wraps" and some products

featured were Herbal Essences, Crest, Guitar Hero 2, Cover Girl, and

recently Toyota.

CHAPTER 2

OBJECTIVES OF THE STUDY:

As per the title of the project (Study of the lead competitors with respect

to organizational structure, sales and distribution and sales promotional

activities), the objectives of the study are as follows:

1) A study of the various sales promotional activities carried out by the

distributors of the particular brands.

2) A review of the frequency of the market/outlet coverage.

3) Pricing of SKU’s (Stock Keeping Units) and their contribution to sales.

4) The main area of study was based on biscuits, pasta, atta and chips.

5) To check the amount number of outlets covered.

6) To understand the retailers point of view.

7) To check the flow of products in the market.

8) To find out which product in the same category provide stiff competition.

NEED OF THE STUDY:

The main aim or the main need of the study was to understand how

any particular fmcg (fast moving consumer goods) carries out its operations.

The main study was on the sales and distribution activities of the companies.

It was to get to know and to put the theoretical knowledge into practice. the

study of the project covered sales and distribution of a company, there sales

structure, promotional activities and how do they price there SKU’s. It

helped so to understand the practical way and practices that a company uses

to get it products into the market. This study is based on how the company

fixes its prices how it does convince its perspective retailers to t buy there

products and sell it to the final customer. Need of the study was also to

understand the different promotional activities which they carry out to reach

and sell the products to there customers. The study also deals in

understanding how much turnover does a distributor needs to earn in a

month and how many outlets does it need to cover in a day.

Research Design and Methodlogy:-

1) Market Visits:- The first method was to visit the markets and to collect

all the details related to pricing of the products from the different retail

stores so as to know the pricing of the products. The next step was to visit

the markets with a salesperson so as to know and understand how does a

salesman carries out his sales transaction and how many orders are taken

up by a salesman and to note down the retail price of the products and

different sales promotional activities carried out by the company

specially for the retailers so as to convince them to sell there products.

The third step in this was to approach the distributors of different

companies and to know from them how the work is carried out by there

sales force. A questionnaire was prepared which had different questions

related to the working of the distributor and the details of there activities

and the data was collected from all the distribution in the city.

2) Questionnaire for the retailers:-

The second method of collecting the data was to go to the retail

outlets and find out their views and to collect information from them about

what is going in the market. This helps to get a clear picture about what is

actually happening in the market since retailer is the one who is in direct

contract with both distributor and the and with the end customer. Each

retailer whom we visited will be given a questionnaire to fill up. The

questionnaire was based on fast moving consumer goods like atta, biscuits,

chips, pasta and a questionnaire based on ITC’s performance. The

questionairre was given to the lead retailers in each market segment.

CHAPTER 3

INDUSTRY PROFILE:-

FMCG Sector

The Indian FMCG sector is the fourth largest in the economy and has

a market size of US$13.1 billion. Well-established distribution networks, as

well as intense competition between the organised and unorganised

segments are the characteristics of this sector. FMCG in India has a strong

and competitive MNC presence across the entire value chain. It has been

predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from

US $ billion 11.6 in 2003. The middle class and the rural segments of the

Indian population are the most promising market for FMCG, and give brand

makers the opportunity to convert them to branded products. Most of the

product categories like jams, toothpaste, skin care, shampoos, etc, in India,

have low per capita consumption as well as low penetration level, but the

potential for growth is huge.

The Indian Economy is surging ahead by leaps and bounds, keeping

pace with rapid urbanization, increased literacy levels, and rising per capita

income.

The big firms are growing bigger and small-time companies are

catching up as well. According to the study conducted by AC Nielsen, 62 of

the top 100 brands are owned by MNCs, and the balance by Indian

companies. Fifteen companies own these 62 brands, and 27 of these are

owned by Hindustan Lever. Pepsi is at number three followed by Thums Up.

Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-

Cola (8) and Parle (9). These are figures the soft drink and cigarette

companies have always shied away from revealing. Personal care, cigarettes,

and soft drinks are the three biggest categories in FMCG. Between them,

they account for 35 of the top 100 brands.

Exhibit I

THE TOP 10 COMPANIES IN FMCG SECTOR

S.No. Companies

1. Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)

3. Nestlé India

4. GCMMF (AMUL)

5. Dabur India

6. Asian Paints (India)

7. Cadbury India

8. Britannia Industries

9. Procter & Gamble Hygiene and Health Care

10. Marico Industries

The companies mentioned in Exhibit I, are the leaders in their

respective sectors. The personal care category has the largest number of

brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and

Ponds.  There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or

54% of the personal care category. Cigarettes account for 17% of the top

100 FMCG sales, and just below the personal care category. ITC alone

accounts for 60% volume market share and 70% by value of all filter

cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of

launches by HLL, ITC, Godrej, and others. This category has 18 major

brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the

powders segment. The food category has also seen innovations like softies in

ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both

GCMMF and Godrej Pillsbury. This category seems to have faster

development than the stagnating personal care category. Amul, India's

largest foods company, has a good presence in the food category with its ice-

creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top

100 FMCG brands, dominates the biscuits category and has launched a

series of products at various prices.

In the household care category (like mosquito repellents), Godrej and

Reckitt are two players. Goodknight from Godrej, is worth above Rs 217

crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo

category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's

Head and Shoulders and Pantene are also trying hard to be positioned on top.

Clinic is nearly double the size of Sunsilk.

Dabur is among the top five FMCG companies in India and is a herbal

specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in

2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash,

Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in

the Indian sub-continent, Southeast Asia, Far East, Middle East, South

Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint

company, with a turnover of Rs.22.6 billion (around USD 513 million).

Forbes Global magazine, USA, ranked Asian Paints among the 200 Best

Small Companies in the World

Cadbury India is the market leader in the chocolate confectionery market

with a 70% market share and is ranked number two in the total food drinks

market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and

Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian

group in consumer products and services in the Global Beauty and Wellness

space.

Company Profile :-

ITC is one of India's foremost private sector companies with a market

capitalisation of nearly US $ 18 billion and a turnover of over US $ 5.1

Billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50'

and the World's Most Reputable Companies by Forbes magazine, among

India's Most Respected Companies by BusinessWorld 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.

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

Specialty Papers, Packaging, Agri-Business, Packaged Foods &

Confectionery, Information Technology, Branded Apparel, Personal Care,

Stationery, Safety Matches and other FMCG products. While ITC is an

outstanding market leader in its traditional businesses of Cigarettes, Hotels,

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

even in its nascent businesses of Packaged Foods & Confectionery, Branded

Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is

widely perceived to be dedicatedly nation-oriented. Chairman Y C

Deveshwar calls this source of inspiration "a commitment beyond the

market". In his own words: "ITC believes that its aspiration to create

enduring value for the nation provides the motive force to sustain growing

shareholder value. ITC practices this philosophy by not only driving each of

its businesses towards international competitiveness but by also consciously

contributing to enhancing the competitiveness of the larger value chain of

which it is a part."

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's Agri-Business is one of India's largest exporters of agricultural

products. ITC is one of the country's biggest foreign exchange earners (US $

3.2 billion in the last decade). The Company's 'e-Choupal' initiative is

enabling Indian agriculture significantly enhance its competitiveness by

empowering Indian farmers through the power of the Internet. This

transformational strategy, which has already become the subject matter of a

case study at Harvard Business School, is expected to progressively create

for ITC a huge rural distribution infrastructure, significantly enhancing the

Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India

Limited, is aggressively pursuing emerging opportunities in providing end-

to-end IT solutions, including e-enabled services and business process

outsourcing.

ITC's production facilities and hotels have won numerous national and

international awards for quality, productivity, safety and environment

management systems. ITC was the first company in India to voluntarily seek

a corporate governance rating.

ITC employs over 24,000 people at more than 60 locations across India. The

Company continuously endeavors to enhance its wealth generating

capabilities in a globalising environment to consistently reward more than

3,83,000 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."

History of ITC:

TC was incorporated on August 24, 1910 under the name of 'Imperial

Tobacco Company of India Limited'. Its beginnings were humble. A leased

office on Radha Bazar Lane, Kolkata, was the centre of the Company's

existence. The Company celebrated its 16th birthday on August 24, 1926, by

purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L.

Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the

Company was historic in more ways than one. It was to mark the beginning

of a long and eventful journey into India's future. The Company's

headquarter building, 'Virginia House', which came up on that plot of land

two years later, would go on to become one of Kolkata's most venerated

landmarks. The Company's ownership progressively Indianised, and the

name of the Company was changed to I.T.C. Limited in 1974. In recognition

of the Company's multi-business portfolio encompassing a wide range of

businesses - Cigarettes & Tobacco, Hotels, Information Technology,

Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle

Retailing and Greeting Gifting & Stationery - the full stops in the Company's

name were removed effective September 18, 2001. The Company now

stands rechristened 'ITC Limited'.

Though the first six decades of the Company's existence were primarily

devoted to the growth and consolidation of the Cigarettes and Leaf

Tobacco businesses, the Seventies witnessed the beginnings of a corporate

transformation that would usher in momentous changes in the life of the

Company.

ITC's Packaging & Printing Business was set up in 1925 as a strategic

backward integration for ITC's Cigarettes business. It is today India's most

sophisticated packaging house.

In 1975 the Company launched its Hotels business with the acquisition of a

hotel in Chennai which was rechristened 'ITC-Welcome group Hotel

Chola'. The objective of ITC's entry into the hotels business was rooted in

the concept of creating value for the nation. ITC chose the hotels business

for its potential to earn high levels of foreign exchange, create tourism

infrastructure and generate large scale direct and indirect employment. Since

then ITC's Hotels business has grown to occupy a position of leadership,

with over 70 owned and managed properties spread across India. In 1979,

ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India.

Bhadrachalam Paperboards amalgamated with the Company effective March

13, 2002 and became a Division of the Company, Bhadrachalam

Paperboards Division. In November 2002, this division merged with the

Company's Tribeni Tissues Division to form the Paperboards & Specialty

Papers Division. ITC's paperboards' technology, productivity, quality and

manufacturing processes are comparable to the best in the world. It has also

made an immense contribution to the development of Sarapaka, an

economically backward area in the state of Andhra Pradesh. It is directly

involved in education, environmental protection and community

development. In 2004, ITC acquired the paperboard manufacturing facility

of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil

Nadu. The Kovai Unit allows ITC to improve customer service with reduced

lead time and a wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and

British joint venture. Since inception, its shares have been held by ITC,

British American Tobacco and various independent shareholders in Nepal.

In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its

name was changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper

manufacturing company and a major supplier of tissue paper to the cigarette

industry. The merged entity was named the Tribeni Tissues Division (TTD).

To harness strategic and operational synergies, TTD was merged with the

Bhadrachalam Paperboards Division to form the Paperboards & Specialty

Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri

Business Division for export of agri-commodities. The Division is today

one of India's largest exporters. ITC's unique and now widely acknowledged

e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh.

Now it extends to 10 states covering over 4 million farmers. ITC's first rural

mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore.

On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3

states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC launched a line of high quality greeting cards under the brand

name 'Expressions'. In 2002, the product range was enlarged with the

introduction of Gift wrappers, Autograph books and Slam books. In the

same year, ITC also launched 'Expressions Matrubhasha', a vernacular

range of greeting cards in eight languages and 'Expressions Paperkraft', a

range of premium stationery products. In 2003, the company rolled out

'Classmate', a range of notebooks in the school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range

of international quality relaxed wear for men and women in 2000. The Wills

Lifestyle chain of exclusive stores later expanded its range to include Wills

Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC

also initiated a foray into the popular segment with its men's wear brand,

John Players, in 2002. In 2006, Wills Lifestyle became title partner of the

country's most premier fashion event - Wills Lifestyle India Fashion Week

- that has gained recognition from buyers and retailers as the single largest

B-2-B platform for the Fashion Design industry. To mark the occasion, ITC

launched a special 'Celebration Series', taking the event forward to

consumers. In 2007, the Company introduced 'Miss Players'- a fashion

brand in the popular segment for the young woman.

In 2000, ITC spun off its information technology business into a wholly

owned subsidiary, ITC Infotech India Limited, to more aggressively

pursue emerging opportunities in this area. Today ITC Infotech is one of

India’s fastest growing global IT and IT-enabled services companies and has

established itself as a key player in offshore outsourcing, providing

outsourced IT solutions and services to leading global customers across key

focus verticals - Manufacturing, BFSI (Banking, Financial Services &

Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,

Hospitality and Transportation) and Media & Entertainment.

ITC's foray into the Foods business is an outstanding example of

successfully blending multiple internal competencies to create a new driver

of business growth. It began in August 2001 with the introduction of

'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC

entered the confectionery and staples segments with the launch of the brands

mint-o and Candyman confectionery and Aashirvaad atta (wheat flour).

2003 witnessed the introduction of Sunfeast as the Company entered the

biscuits segment. ITC's entered the fast growing branded snacks category

with Bingo! in 2007. In just six years, the Foods business has grown to a

significant size with over 200 differentiated products under six distinctive

brands, with an enviable distribution reach, a rapidly growing market share

and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness

of the entire value chain found yet another expression in the Safety Matches

initiative. ITC now markets popular safety matches brands like iKno,

Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003

marked the manifestation of its partnership with the cottage sector. ITC's

popular agarbattis brands include Spriha and Mangaldeep across a range of

fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani

and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and

bath & body care products for men and women in July 2005. Inizio, the

signature range under Essenza Di Wills provides a comprehensive

grooming regimen with distinct lines for men (Inizio Homme) and women

(Inizio Femme). Continuing with its tradition of bringing world class

products to Indian consumers the Company launched 'Fiama Di Wills', a

premium range of Shampoos, Shower Gels and Soaps in September, October

and December 2007 respectively. The Company also launched the 'Superia'

range of Soaps and Shampoos in the mass-market segment at select markets

in October 2007 and Vivel De Wills & Vivel range of soaps in February and

Vivel range of shampoos in June 2008.

ITC Foods:

ITC made its entry into the branded & packaged Foods business in August

2001 with the launch of the Kitchens of India brand. A more broad-based

entry has been made since June 2002 with brand launches in the

Confectionery, Staples and Snack Foods segments.

The packaged foods business is an ideal avenue to leverage ITC's

proven strengths in the areas of hospitality and branded cuisine,

contemporary packaging and sourcing of agricultural commodities. ITC's

world famous restaurants like the Bukhara and the Dum Pukht, nurtured

by the Company's Hotels business, demonstrate that ITC has a deep

understanding of the Indian palate and the expertise required to translate this

knowledge into delightful dining experiences for the consumer. ITC has

stood for quality products for over 98 years to the Indian consumer and

several of its brands are today internationally benchmarked for quality. The

Foods business carries forward this proud tradition to deliver quality food

products to the consumer. All products of ITC's Foods business available in

the market today have been crafted based on consumer insights developed

through extensive market research. Apart from the current portfolio of

products, several new and innovative products are under development in

ITC's state-of-the-art Product Development facility located at Bengaluru.

Leadership in the Foods business requires a keen understanding of the

supply chain for agricultural produce. ITC has over the last 98 years

established a very close business relationship with the farming community in

India and is currently in the process of enhancing the Indian farmer's ability

to link to global markets, through thee-Choupal initiative, and produce the

quality demanded by its customers. This long-standing relationship is being

leveraged in sourcing best quality agricultural produce for ITC's Foods

business.

The Foods business is today represented in 4 categories in the market.

These are:

Ready To Eat Foods

Staples

Confectionery

Snack Foods

In order to assure consumers of the highest standards of food safety

and hygiene, ITC is engaged in assisting outsourced manufacturers in

implementing world-class hygiene standards through HACCP certification.

The unwavering commitment to internationally benchmarked quality

standards enabled ITC to rapidly gain market standing in all its 6 brands:

Kitchens of India

Aashirvaad

Sunfeast

mint-o

Candyman

Bingo!

Aashirvaad

Staples  

ITC entered the branded Atta market with the launch of Aashirvaad Atta in

Jaipur and Chandigarh on 26th May 2002. The product is now available all

over India.

‘Aashirvaad’ promises the Indian housewife the joy of providing her family

with the most delightful home-made rotis, made from the finest quality atta.

ITC uses the sourcing strength of its e-Choupals to buy wheat directly from

the farmers to deliver happiness to the Indian consumer

– Khushiyaan Chun Chun ke (Happiness handpicked).

‘Aashirvaad’ is made from finest quality wheat that ITC

has the unique capability to source through its e-

Choupal network. Premium quality atta, made from

100% MP 'sharbati' wheat is also available as

Aashirvaad Select Atta . The wheat for Aashirvaad MP Blend Chakki

Atta comes from the plush, fertile soil of Madhya Pradesh and then blended

using the traditional 'chakki-grinding' method to give the superior,

discerning taste.

ITC Foods also aims to delight the consumer through superior and

innovative packaging. The Aashirvaad package is PET Poly, with the design

showcasing the farming process undertaken in the rural heartland of India in

the form of a Madhubani painting. ‘Aashirvaad Select’ Atta (5 kg pack) was

awarded the World Star Award for Excellence in Packaging in the

Consumer Pack Category. This is one of the most prestigious awards in the

world for Packaging.

Aashirvaad Salt

ITC launched branded packaged salt under the brand name

‘Aashirvaad Salt’ on 26th March, 2003. The product is

available in grocery stores around the country.

Spices  

ITC forayed into the branded spices market with the launch of Aashirvaad

Spices in Northern India in May 2005. The offering currently consists of

Chilli, Turmeric and Coriander powder in SKUs of 50g, 100g, 200g and

500g each.

The product is available in grocery

stores around the country.

The company entered organic foods

retailing in July 2007 with the launch of

Aashirvaad Select Organic Spices. Aashirvaad Select will initially offer

chilli, turmeric and coriander powders. The organic spices are available in

all major metros across all modern

trade outlets and food retail chains in packs of 100 grams.

Aashirvaad Pickle Mirch Powder

Aashirvaad added a unique variant to its Spices range by

introducing Pickle Mirch Powder. Ensuring perfect balance in

colour and taste, the Pickle Mirch Powder is one of its kind in

India.

Instant Mixes  

This range, launched in March '06, includes Gulab Jamun, Rava Idli, Rice

Idli, Rice Dosa, Khaman Dhokla, Rasmalai and Vada mix. Aashirvaad

Instant Mixes promise the discerning Indian homemaker perfect tasting

dishes, consistently. The Rava idli Mix is available in 500g pack and rest of

the products are available in 200g packs. The latest entrants to the portfolio

include Rasmalai and Vada mixes. Rasmalai mix is

available in 126g pack and Vada mix in 200g pack.

 

Aashirvaad Multi-purpose Cooking Paste

The Multi-Purpose Cooking paste is the latest offering from the

‘Aashirvaad’ brand. The ‘Aashirvaad’ Multi-Purpose cooking paste is

positioned as a kitchen aide. The product, ‘Bhuna hua taiyaar masala’, is a

fried paste of onions, tomatoes, ginger and garlic shallow fried in refined

sunflower oil.

It is a basic paste used for most north Indian dishes. It is suitable for all

tomato-based dishes.

The ‘Aashirvaad’ Multi-Purpose Cooking paste is available in Delhi, Chennai,

Hyderabad, Bengaluru, Kolkata, Ahmedabad, Mumbai and Pune at leading grocery

outlets. It is available in easy to use pouch size of 100g and 280g bottle.

  

Snack foods

Sunfeast

In 2003, ITC forayed into the Biscuits

market with the Sunfeast range of

Glucose, Marie and Cream Biscuits.

Sunfeast’s brand essence, "Spread the

Smile" connotes happiness,

contentment, satisfaction and pleasure. The mascot Sunny reinforces the

emotional aspects of the brand.

Sunfeast immediately established itself as a provider of innovative and

distinctive products - Sunfeast Marie was launched in

an innovative orange flavour and the 'Sunfeast

Dream Cream' range includes new flavours as well

as flavour enhancers. The Sunfeast Dream Cream

range is currently available in 8 variants. The

Company has also introduced 'Sunfeast Dark

Fantasy', a dark chocolate and vanilla cream offering

for the premium segment in select markets.

Riding on the success of its initial offerings, ITC also

entered the milk biscuit category with Sunfeast Milky

Magic biscuits in the general milk and milk cream

categories. Apart from milk which helps mental growth,

these biscuits also contain the finest quality wheat aiding physical growth.

Both cream and milk biscuits have received enthusiastic response from

consumers.

In the last few years the Sunfeast biscuits portfolio has been enhanced to

include salted crackers and cookies. The 'Sunfeast Snacky' salted crackers

are available in 2 unique variants viz., Chilli Flakes and Classic Salted.

Sunfeast's cookie offering, 'Sunfeast Special' biscuits are also available in

select markets. The Sunfeast Special range currently includes cookies in

three variants – Butter, Cashew and crunchy Coconut, as well as cream

biscuits in two variants – Choco and Orange. The recently launched

Sunfeast Golden Bakery offers the freshly baked taste of cookies in 3

variants - Choco-nut, Butter-nut and Butter scotch.

The brand has also launched Sunfeast Nice, a tasty and delightful offering

of crispy, sugar sprinkled biscuits.

The Sunfeast product portfolio has been further

expanded to include healthy snacking options as well.

'Sunfeast Pasta Treat', a whole wheat based instant

pasta was introduced as a healthy snacking option for

children. After the tremendous success of the 4 initial

flavours the instant Pasta range has been extended with two new exciting

flavours – Pizza and Chicken. The pasta segment was

further expanded with the launch of 'Sunfeast Benne

Vita' in 4 innovative variants. This range has been

enhanced recently with the launch of Sunfeast Benne

Vita Flax Seed biscuits that reflect the brand essence of Benne Vita, which

in Italian stands for ‘Good Life’. The flax seed content in these protein and

mineral enriched biscuits is a rich vegetarian source of Omega III acids.

With continued focus on health and nutrition, Sunfeast extended the biscuits

portfolio to the nutritional segment with the launch Sunfeast Sachin's Fit

Kit – a range of healthy products co-created with Sachin Tendulkar. It is

for the first time in India that an icon of the stature of Sachin Tendulkar has

been actively involved in the product development process as co-creator of

the Sunfeast Sachin's Fit Kit range. It is the shared vision of Sunfeast as well

as Sachin Tendulkar that products under the Sachin's Fit Kit range will

enable create "Champions of Tomorrow". The launch range comprises two

offerings - Sunfeast Sachin's Vitamin and Protein enriched biscuits and

Sunfeast Sachin's Multigrain biscuits.

 

Bingo

Snack foods    

Bingo!

The launch of Bingo! in March 2007 marked ITC's foray

into the fast growing branded snack foods segment.

Bingo’s portfolio includes an array of products in both

Potato Chips & Finger Snacks segment.

Bingo! is positioned as a youthful and innovative

snack, offering the consumers with choice in

terms of both formats and flavors.

The Potato Chips offerings comprise the ever-

popular Salted, Masala and Tomato flavours, as

well as some innovative variants inspired by the

snacking habits of different parts of the country

like Chatkila Nimbu Achaar.

  The Finger Snacks segment, the innovative 'khakra inspired' Mad

Angles has become an instant hit among consumers and is available in 3

flavours - Tomato Mischief, Chilli Dhamaka and Achaari Masti.

The story of one of India's favourite brands reads almost like a fairy

tale. Once upon a time, in 1892 to be precise, a biscuit company was started

in a nondescript house in Calcutta (now Kolkata) with an initial investment

of Rs. 295. The company we all know as Britannia today.

The beginnings might have been humble-the dreams were anything but. By

1910, with the advent of electricity, Britannia mechanised its operations, and

in 1921, it became the first company east of the Suez Canal to use imported

gas ovens. Britannia's business was flourishing. But, more importantly,

Britannia was acquiring a reputation for quality and value. As a result,

during the tragic World War II, the Government reposed its trust in Britannia

by contracting it to supply large quantities of "service biscuits" to the armed

forces.

As time moved on, the biscuit market continued to grow… and Britannia

grew along with it. In 1975, the Britannia Biscuit Company took over the

distribution of biscuits from Parry's who till now distributed Britannia

biscuits in India. In the subsequent public issue of 1978, Indian shareholding

crossed 60%, firmly establishing the Indianness of the firm. The following

year, Britannia Biscuit Company was re-christened Britannia Industries

Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores

revenue mark.

On the operations front, the company was making equally dynamic strides.

In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its

new corporate identity - "Eat Healthy, Think Better" - and made its first

foray into the dairy products market. In 1999, the "Britannia Khao, World

Cup Jao" promotion further fortified the affinity consumers had with 'Brand

Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and

the pre-eminent food brand of the country. It was equally recognised for its

innovative approach to products and marketing: the Lagaan Match was

voted India's most successful promotional activity of the year 2001 while the

delicious Britannia 50-50 Maska-Chaska became India's most successful

product launch. In 2002, Britannia's New Business Division formed a joint

venture with Fonterra, the world's second largest Dairy Company, and

Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision

and accelerating graph, Forbes Global rated Britannia 'One amongst the Top

200 Small Companies of the World', and The Economic Times pegged

Britannia India's 2nd Most Trusted Brand.

Today, more than a century after those tentative first steps, Britannia's fairy

tale is not only going strong but blazing new standards, and that miniscule

initial investment has grown by leaps and bounds to crores of rupees in

wealth for Britannia's shareholders. The company's offerings are spread

across the spectrum with products ranging from the healthy and economical

Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having

succeeded in garnering the trust of almost one-third of India's one billion

population and a strong management at the helm means Britannia will

continue to dream big on its path of innovation and quality. And millions of

consumers will savour the results, happily ever after.

In 1929 a small company by the name of Parle products emerged in

British dominated India. The intent was to spread joy and cheer to children

and adults alike, all over the country with its sweets and candies. The

company knew that it wouldn’t be an easy task, but they decided to take the

brave step. A small factory was set up in the suburbs of Mumbai, to

manufacture sweets and toffees. A decade later it was upgraded to

manufacture biscuits as well. Since then, the Parle name has grown in all

directions, won international fame and has been sweetening people's lives all

over India and abroad.

Apart from the factories in Mumbai and Bangalore Parle also has

factories in Bahadurgarh in Haryana and Neemrana in Rajasthan, which are

the largest biscuit and confectionery plants in the country. Additionally,

Parle Products also has 7 manufacturing units and 51 manufacturing units on

contract.

Parle Products has been India's largest manufacturer of biscuits and

confectionery, for almost 80 years. Makers of the world's largest selling

biscuit, Parle-G, and a host of other very popular brands, the Parle name

symbolizes quality, nutrition and great taste. With a reach spanning even the

remotest villages of India , the company has definitely come a very long way

since its inception.

Many of the Parle products - biscuits or confectioneries, are market

leaders in their category and have won acclaim at the Monde Selection, since

1971. With a 40% share of the total biscuit market and a 15% share of the

total confectionary market in India , Parle has grown to become a multi-

million dollar company. While to consumers it's a beacon of faith and trust,

competitors look upon Parle as an example of marketing brilliance.

Hygiene is the precursor to every process at Parle. From husking the

wheat and melting the sugar to delivering the final products to the

supermarkets and store shelves nationwide, care is taken at every step to

ensure the best product of long-lasting freshness. Every batch of biscuits and

confectioneries are thoroughly checked by expert staff, using the most

modern equipment hence ensuring the same perfect quality across the nation

and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has

grown from strength to strength ever since its inception. The factories at

Bahadurgarh in Haryana and Neemrana in Rajasthan are the largest biscuit

and confectionery plants in the country. The factory in Mumbai was the first

to be set up, followed soon by the one in Bangalore, Karnataka. Parle

Products also has 14 manufacturing units for biscuits and 5 manufacturing

units for confectioneries, on contract.

Parle products have been shining with the golds and silvers

consistently at the Monde Selection ever since they were first entered in

1971. Monde Selection is an international institute for assessing the quality

of foods and is currently the oldest and most representative organization in

the field of selecting quality foods worldwide brands

Get Your Biscuits:

Parle - G Hide & Seek Milano

Krackjack Digestive Marie

Krackjack Crispy Creams Parle Marie

Monaco Milk Shakti

Kreams Mayfair Cookies

Hide and Seek Nimkin

       

BUSINESS DESCRIPTION:

Hindustan Lever markets consumption goods throughout India, most

of which are household names in the country. The company operates

through two major divisions: foods & beverages, and home & personal care

products.

The foods & beverages business consists of beverages, branded staples, ice

cream and culinary products.

In beverages, the company is the world's largest packet tea marketer. The big

tea brands are Taj Mahal, Red Label, 3 Roses, Taaza and Yellow Label. In

coffee, the company market Bru instant coffee and Deluxe Green Label

Roast & Ground Coffee.

The branded staples business comprises Annapurna wheat flour and edible

salt. In Ice Creams, the company markets the Kwality Wall's range, which

comprises 'Impulse' brands like the Max range for children, Cornetto, and

Feast for teenagers and young adults. It also caters to the 'take-home'

segment. In culinary products, it offers the Kissan range of jams, squashes,

tomato ketchup, sauces, and puree. To target new users the company have

also come out with sachet packs for jams.

The home & personal care portfolio comprises some of the biggest brands in

India.

In soaps, the major brands are Lifebuoy, Lux, Liril, Breeze, Pears, Hamam

and Dove. In detergents, the main brands are International Surf Excel, Surf,

Rin, Wheel, OK, 501, Sunlight, and Ala. To cater to household care, the

company markets the Vim and Domex range.

The personal products business addresses oral, hair, and skin care needs. In

oral care, Close-Up and Pepsodent toothpaste, toothbrushes and toothpowder

are offerings. In hair care, the company has a host of products, ranging from

shampoos to hair oils. Clinic, Sunsilk, and Lux are the main hair care

brands. In skin care, the company markets Fair & Lovely, Pond's, Lakme,

and Pears franchises. In color cosmetics, the company markets the Lakme

range of beauty products. In deodorants and fragrances, the main household

names are Rexona, Axe and Denim.

Aviance, a customized skin care, hair care and cosmetics portfolio, is

available directly to consumers through trained beauty consultants.

Developed at the Unilever Beauty and Skin Innovation Center, US, the

Aviance range consists of Unilever formulations, selected from across the

world, for suitability to Indian skintypes and weather conditions.

TOP COMPETITORS:

Colgate-Palmolive Company

Indian Oil Corporation Limited

L'Oreal S.A.

Mars, Inc.

Nestle S.A.

S.C. Johnson & Son, Inc.

Sara Lee Corporation

The Clorox Company

Wipro Corporation

Reckitt Benckiser PLC

Procter & Gamble

The Gillette Company

Revlon, Inc.

Kraft Foods, Inc.

Bhatinda Chemicals Limited

Parle Products Pvt Ltd

CHAPTER 4

Detailed analysis with the help of market research:

COMPANY: BRITANIA

DISTRIBUTER: (VIZAG) SRI VENKATA RATNA

TRADERS

OFFICE: 28-16-19/A, SURYA BAGH,

VIZAG-20.

GODOWN: 30-8-5A, BHANU STREET,

DABAGARDENS, VIZAG-20.

MANAGER: KAMESH

WORKFORCE: As per Sri Venkata Ratna Traders, they have nearly

6 salesmen, 1 supervisor, 1 van and 2 auto drivers. Each sales person needs

to cover nearly 40 outlets per day i.e. nearly 240 outlets are covered in a day.

The sales person enquires about the stock with the retailer and takes the

order as per the retailers requirements. The sales person reports to the

manager about the order placed by the retailer and then the manager makes

necessary arrangements for the order to be distributed to the various retailers

as per their requirements. These are then fed into the computer and the sales

invoice is generated which mentions the invoice name, customer id, SI no,

date, market, ordered by, customer and address. For example:

Bill No.: Britania/53784

Customer: Bismillah Stores (A. Gardens)

Address: Assam Gardens, main road

SI No.: T3731

Date: 15-5-2008

Market: VS-(WED) Collectrate main road

Order By: V. CH Shekar.

Customer id: 1438

Then the auto or van leaves the distributors godown to the retail outlets to

distribute the ordered products among the various retailers.

SALARIES:

The salesman gets Rs.4000+ 10% incentives.

The supervisor gets Rs.6000+ 10% incentives.

The drivers get Rs.2000.

Incentives are given as per the work carried out by the salesman and

supervisor to achieve the target by the distributor or during some festive

season or a special occasion.

NUMBER OF DISTRIBUTORS COVERED IN VSP DISTRICT:

1) Sri Venkata Ratna Traders.

2) Hanuman Enterprise.

3) Durga Enterprise.

4) Kothavalsa Distributor.

Sri Venkata Ratna Traders covers Visakhapatnam city limits.

Durga Traders cover Gyanapuram, Gopalapatnam and Pendurthi outlets.

Hanuman Traders cover Gajuwaka outlets.

MARKET VISITS/BEADS VISITS:

6 salesmen visit 240 outlets a day(6 x 40). The work carried out by the

salesmen:

1) They take in orders from the retail outlets.

2) Supplies the order to the retailer as per their requirements.

3) Checks out the amount of stock with the retailer.

4) Collect the outdated/damaged products from the market and provide them

with new stock.

5) Collect cash from the retailers and also inform them about the amount of

credit that can be provided to them.

6) Apply posters and display racks for the products in specified retailer

stores.

7) Provides the retailer and the customers various sales promotional offers.

8) Collect customer feedback from the retailer.

9) They approach new outlets so as to include them under the distributors

belt.

10) They analyse which store has the highest number of foot falls and

declare that store as one of the key stores.

The company official visits all the markets/outlets by the Area

Executives and Area Sales Manager who come down from the Chennai

branch to analyse the work carried out by the distributor, where the

companies products lie in Vizag market, to inspect the sales promotional

activities and to find out whether the desired goals set to the distributors by

the company have been achieved. Every 2 months the distributors and the

company officials(Area Executives, Area Sales Manager and Regional

Manager) meet up to analyse/discuss the Vizag market situation.

SUPPLY CHAIN:

Britania has 3 carry and forward(C&F) in Hydrabad, Vijayawada and

Tirupati. The distributors in vizag get their stock from the C&F in

Vijayawada. The above 3 C&F’s come under the Chennai branch. They get

their stocks from the neighbouring manufacturing units. Once the salesman

gets the order from the retailer, the distributor analysis the total order and the

WD orders for the stock from the C&F.

The supply chain runs on a weekly schedule basis. Once the order is placed

by the distributor it takes 2 days for the stock to reach the distributors

godown from the C&F unit. As per Sri Venkata Ratna Traders is concerned,

2 truck loads of stock is transported into the Vizag market weekly. 1 truck

load consists of 600 cartons of the required products worth 3.5lacs. To cover

the retail outlets in the city the distributor has 6 salesmen, 1 van and 2

auto’s. The rural market comes under a totally different segment. Weekly

once a visit is paid to those rural markets and the information is collected

regarding the amount of stock sold and amount of stock reqired in the

market.

The outdated and DND(defective and damaged) products are collected

from the market and dumped in a dumping ground in Yendada under the

supervision of the company officials.

The company is not into any diversification in the near future.

MAJOR COMPETITORS:

Sunfeast(glucose) is the major competitor in the glucose segment.

Marie from Parle

Parle g glucose

Monaco in the salted biscuits segment

Hide n Seek in the chocolate biscuits segment.

MAIN PRODUCTS:

Britanaia 50 – 50

Maska chaska

Tiger

Marie

SALES PROMOTIONAL ACTIVITIES:

1) Company provides 2% discount to the wholesaler.

2) For every 50Rs.of purchase 10Rs.is given free(wholesaler to retailer).

3) All other general schemes like providing 50% or 35% extra gms on

specific biscuits provided by the company directly to the customer.

4) If the sales are high, the schemes also increase, thus the schemes are

never static.

5) They provide display racks for displaying of Britania products.

6) They carry out various promotional activities in schools for glucose

biscuits.

REIMBURSEMENTS:

If the dealer collects the products after 9 months or above it is a waste and

he would not get any reimbursement for it. If it is between 6-8months, he

gets 50% reimbursed. In case the product is damaged, the company official

inspects it and replaces it with a new one.

The company does not provide any kind of reimbursement for the sales force

whatsoever. They strictly provide only a 5% margin support to the dealer to

carry out his work.

CRITERIA FOR NEW DISTRIBUTORSHIP:

As per Britania’s needs of a distributor for any market the interested dealer

should fulfill the following:

1) An investment of 15lacs is required to get the distributorship of Britania

products.

2) The sales force should consist of 2 salesmen and 2 auto’s and 1 van.

3) The company requires a godown of nearly 1000 sq ft.

TURNOVER: 35lacs per month.

Detailed analysis of Parle:-

COMPANY: PARLE.

DISTRIBUTER: LAXMI AGENCIES.

OFFICE: DABAGARDENS, VIZAG-20.

GODOWN: BHANU STREET,

DABAGARDENS, VIZAG-20

WORKFORCE:

As per Sri Laxmi Agencies, they have nearly 5 executives, 2

salesman, 1 delivery boy and 1 computer person and 2 autos. Each sales

person needs to cover nearly 30-35 outlets per day i.e. nearly 140 outlets are

covered in a day. The sales person enquires about the stock with the retailer

and takes the order as per the retailers requirements. The sales person reports

to the manager about the order placed by the retailer and then the manager

makes necessary arrangements for the order to be distributed to the various

retailers as per their requirements. These are then fed into the computer and

the sales invoice is generated which mentions the invoice name, customer

id, SI no, date, market, ordered by, customer and address. For example:

Bill No.: Parle/48920

Customer: Nagaraj Stores

Address:

SI No.: T3731

Date: 15-5-2008

Market: VS-(WED) Collectrate main road

Order By: V. CH Shekar.

Customer id: 1438

Then the auto or van leaves the distributors godown to the retail

outlets to distribute the ordered products among the various retailers.

SALARIES:

The salesman gets Rs.4000+incentives.

The supervisor gets Rs.6000+incentives.

The drivers get Rs.2000.

Incentives are given as per the work carried out by the salesman and

supervisor to achieve the target by the distributor or during some festive

season or a special occasion.

Every month the salesman increases 1% of the total market coverage

and based on this incentives will be provided.

NUMBER OF DISTRIBUTORS COVERED IN VSP DISTRICT:

1) Sri Laxmi Agency

2) Venkateshwara Agency

Laxmi Agency covers all the outlets that come under I Town jurisdiction.

Venkateshwara Agency covers all the outlets that come under II Town

jurisdiction.

There are other distributors that cover Gopalpatnam and Gajuwaka markets

also.

MARKET VISITS/BEADS VISITS:

2 salesmen visit 140 outlets a day(2 x 70). The work carried out by the

salesmen:

1) They take in orders from the retail outlets.

2) Supplies the order to the retailer as per their requirements.

3) Checks out the amount of stock with the retailer.

4) Collect the outdated/damaged products from the market and provide them

with new stock.

5) Collect cash from the retailers and also inform them about the amount of

credit that can be provided to them.

6) Apply posters and display racks for the products in specified retailer

stores.

7) Provides the retailer and the customers various sales promotional offers.

8) Collect customer feedback from the retailer.

9) They approach new outlets so as to include them under the distributors

belt.

10) They analyse which store has the highest number of foot falls and

declare that store as one of the key stores.

The company official i.e.., the sales executive is present to watch all the

activities taking place in all 3 districts. Monthly 7-10 days is spent by the

sales executive in the Vizag market. The stay may get extended as per the

requirements in the market.

SUPPLY CHAIN:

Vizag market is divided into 3 districts. The main branches/depot are

in Hyderabad and Vijayawada.

As per the requirements the distributor needs to place the order to the

company. The tranaction is carried out through DD. Once the DD is cleared

it takes maximum 5 days for the products to reach. As per Sri Laxmi

Agencies is concerned, 1 truck load consists of 200 cartons of the required

products. To cover the retail outlets in the city the distributor has 2

salesmen, 1 van and 2 auto’s. The rural market comes under a totally

different segment. Weekly once a visit is paid to those rural markets and the

information is collected regarding the amount of stock sold and amount of

stock required in the market.

The outdated and DND(defective and damaged) products are collected

from the market and dumped in a dumping ground in Yendada under the

supervision of the company officials or else it is packed and sent back to

Hyderabad. The expired products are replaced by thee company. It may take

a time of 2-3 months.

MAJOR COMPETITORS:

1) Britania

2) Sunfeast

MAIN PRODUCTS:

1) Hide n Seek

2) Paele G

3) Marie

4) Krack Jack

SALES PROMOTIONAL ACTIVITIES:

1) All other general schemes like providing 50% or 35% extra gms on

specific biscuits provided by the company directly to the customer.

2) If the sales are high, the schemes also increase, thus the schemes are never

static.

3) provide display racks for displaying of Parle products.

4) Production demo is given to the cutomer as well as to the retailer.

5) Incentives are given to the retailer.

6) Various other schemes depending on the retailers performance.

7) In-packed gifts to the customers.

REIMBURSEMENTS:

Distributor looks after all the reimbursements but in case of any losses

the company will cover the gap. There are no fixed reimbursements given to

the dealer eg; salesman salary or incentives, transportation costs.

SALES STRUCTURE:

GSM to RSM to ASM to Distributor to Salesmen

1) Both the salesmen visit their respective outlets and collect the

information.

2) The information collected by the salesmen is reported to the Distributor.

3) The distributor reports to the Area Sales Manager who visits the market

every 10 days of the month.

4) The ASM reports to the Regional Sales Manager.

5) Finally the RSM reports to the General Sales Manager who is the senior

most in the level.

CRITERIA FOR NEW DISTRIBUTORSHIP:

As per Parle’s needs of a distributor for any market the interested

dealer should fulfill the following:

1) An investment of 3-4lacs is required to get the distributorship

of Parle products.

2) The sales force should consist of 5 executives and 2 salesmen

and 1 delivery boy.

3) The company requires a godown of nearly 600-800 sq ft.

TURNOVER: 20lacs per month

Analysis with the help of questionnaire in pie chart form .

Detailed analysis of HUL:-

COMPANY: HINDUSTAN UNI LEVER

DISTRIBUTER: (VIZAG) RISING SUN

ENTERPRISE

OFFICE: D. NO 50.1.50./1A G.R.NAGAR

SITHAMMDHARA

GODOWN: G.R.NAGAR SITHAMDHARA

MANAGER: RAM KRISHNA

WORKFORCE: As per Rising Sun Enterprise a stockist for Varun

Associats, they have nearly 17 salesmen, 1 supervisor,2 computer operators

1 van and 6 auto drivers and labourers are employed on monthly basis.

Sales person needs to cover nearly 100 outlets per day. The sales person

enquires about the stock with the retailer and takes the order as per the

retailers requirements. The sales person reports to the manager about the

order placed by the retailer and then the manager makes necessary

arrangements for the order to be distributed to the various retailers as per

their requirements. These are then fed into the computer and the sales

invoice is generated which mentions the invoice name, customer id, SI no,

date, market, ordered by, customer, beat and address. For example:

Invoice No.: Bil03296

Customer: Bismillah Stores (A. Gardens)

Address: Assam Gardens, main road

Beat: Fg 2

Date: 06-5-2008

Market: VS-(WED) Collectrate main road.

Customer id: 1438

Sales Invoice: credit

Then the auto or van leaves the distributors godown to the retail outlets to

distribute the ordered products among the various retailers.

SALARIES:

The salesman gets Rs.4500+ incentives.

The supervisor gets Rs.6500+ incentives.

The drivers get Rs.2000.

Incentives are given as per the work carried out by the salesman and

supervisor to achieve the target by the distributor or during some festive

season or a special occasion.

NUMBER OF DISTRIBUTORS COVERED IN VSP DISTRICT:

1) Rising Sun Enterprise (Varun Associates)

2) Srujana Agency.

3) Shri Rama Enterprise.

Rising Sun Enterprise covers Visakhapatnam city limits.

The important markets for Rising Sun Enterprise is Vijayta outlets which

is a wholesale outlet and covers 15 outlets a day.

Rising Sun also covers 15 family grocery outlets and 25 mass retails.

The 2 main markets are Purna Market & Kancherpalem.

Srujuna Agency covers Madillapalam outlets.

Shri Rama Enterprise covers Gajuwaka outlets.

MARKET VISITS/BEADS VISITS:

14 salesmen are there with the agency and each need to cover at least 25

outlets and as per Rising Sun Enterprise nearly 100 outlets should be

covered by all the salesmen out of the 872 outlets in total.

1) They take in orders from the retail outlets.

2) Supplies the order to the retailer as per their requirements.

3) Checks out the amount of stock with the retailer.

4) Collect the outdated/damaged products from the market and provide

them with new stock.

5) Collect cash from the retailers and also inform them about the amount

of credit that can be provided to them.

6) Apply posters and display racks for the products in specified retailer

stores.

7) Provides the retailer and the customers various sales promotional

offers.

8) Collect customer feedback from the retailer.

9) They approach new outlets so as to include them under the

distributor’s belt.

10) They analyze which store has the highest number of foot falls and

declare that store as one of the key stores.

As per the distributor every 2 to 3 months Area Executive and area Sales

Manager will visit Vizag markets. The visits can be frequent also since

vizag market is one of the most important markets where many activities

take place. 1 Territory Sales Officer (TSO) will be present per distributor

to monitor their activities.

SUPPLY CHAIN:

HUL has no distributors in Vizag, instead they have stockists. The main

office(super stockist) is in Vijayawada. The Vizag stockists get their

stock from the super stockists in Vijayawada, which also serves as the

main godown for Andhra Pradesh.

The main branch that controls the Andhra Market is based in Chennai.

The products are delivered weekly 3 times. 1 truck load carries 10 tonnes

of goods worth approximately 10lacs.

The rural markets are paid a visit weekly 2 times. Information is

collected regarding the amount of stock sold and amount of stock

required in the market. The stocks required in the rural markets are sent

from Vizianagaram.

If the stock with one of the distributors is inadequate then he can collect

the required amount of stock from the nearby distributor.

Claim is put by the distributor regarding the DND (defective and

damaged) products. In case of damaged personal products, it will be

returned back to the company. The main line products will be dumped in

Yendada.

SALES STRUCTURE:

Regional Manager to Regional Sales Manager to Area Sales Manager to

Area Executive to Territory Sales Officer to Distributor to Salesman.

1) The salesman collects information from the market and reports to the

distributor.

2) Then the distributor reports to the assigned TSO.

3) The TSO then reports to the concerned Area Executive.

4) The Area Executive hands over the information to the Area Sales

Manager.

5) The Area Sales Manager then reports to the Regional Sales Manager.

6) Finally the Regional Sales Manager reports to the Regional Manager.

MAJOR COMPETITORS:

1) ITC

2) Nestle

3) P&G

4) Britania

5) Parle

MAIN PRODUCTS:

Mainstream Products:

1) Rexona

2) Lux

3) Lifebuoy

4) Rin Supreame

5) Rin Advance Bar

6) Surf Blue

7) Surf Excel

8) Vim Bar

9) Wheel Powder

Personal Care Products:

1) Clinic Plus

2) All Clear

3) Close Up

4) Pepsodent

5) Ponds

Foods:

1) Annapurna Salt

2) Taj Mahal

3) Amaze Biscuit

4) 3 Roses Tea

5) Kissan Jam & Sauce

6) Bru Coffee

SALES PROMOTIONAL ACTIVITIES:

1) If the sales are high, the schemes also increase, thus the schemes are

never static.

2) They provide display racks for displaying of HUL products.

3) Every month sales promotional activities are provided directly to the

retailer.

4) Every month new sales promotional activities are carried out as almost

every month 1 new product is launched.

REIMBURSEMENTS:

The company does not provide any kind of reimbursement to the

dealer. Claim is put forward by the distributor for damaged products and the

process may take atleast a months time. In case the personal products are

damaged no monetary reimbursements are provide. They will be replaced

by new products.

CRITERIA FOR NEW DISTRIBUTORSHIP:

As per HUL’s needs of a distributor for any market the interested dealer

should fulfill the following:

1) An investment of 1.2cr is required to get the distributorship of

HUL products.

2) If the distributorship is taken on installment basis he needs to

pay 3lacs per day.

3) The sales force should consist of 17 salesmen and 1 supervisor,

2 computer personnel’s, 1 van and 6 auto’s.

4) The company requires a godown of nearly 2000 sq ft.

TURNOVER: 1.2cr per month.

Daily Sales 4lacs(includes both credit and cash sales). Cash

recovery should be 2.80lacs.

PRICING OF SKU (STOCK KEEPING UNIT)

Analysis on the bases of pricing:-

PRODUCT COMPANY SKU PRICE

MAGGI NESTLE 95g 10rs

MAGGI NESTLE 380g 39rs

MAGGI NESTLE 570g 59rs

MAGGI NESTLE 760g 78rs

MAGGI RICE NESTLE 83g 15rs

MAGGI RICE NESTLE 332g 58rs

TOP RAMEN NISSIN

SMOODLES 320g 45rs

TOP RAMEN NISSIN

SMOODLES 160g 16 rs

TOP RAMEN NISSIN

TOMATO 80g 8rs

TOP RAMEN NISSIN

TOMATO 320g 30rs

ATTTA:-

PRIYA 1kg 31rs

PRIYA 5 kg 145 rs PRIYA

10kg 255 rs ANNAPURNA HUL 1kg

33 rs

ANNAPURNA HUL 5 kg 145 rs

AASHIRVAAD ITC 1kg 31 rs

AAHIRVAAD ITC 5kg 150rs

AASHIRVAAD ITC 10kg 240rs

MARIE:-

MARIE PARLE 180g (150g + 30g FREE) 10rs

MARIE PARLE 347g 22rs

MARIE BRITANIA 85g 7rs

MARIE BRITANIA 176g 13 rs

MARIE BRITANIA 370g 25 rs

SUNFEAST

MARIE ITC 171g 12rs

MARIE ITC 332g 25rs

GLUCOUSE:-

PARLE G PARLE 880g 40 rs

PARLE G PARLE 220g 10 rs

PARLE G PARLE 330g 15rs

TIGER BRITANIA 450g 22rs

TIGER BRITANIA 165g 8rs

COOKIES:-

SUNFEAST

COOKIES ITC 75g 5rs

COOKIES BRITANIA 90g 12rs

COOKIES BRITANIA 180g 23rs

COOKIES PARLE 75 g 5rs

HIDE & SEEK PARLE 62g 10rs

HIDE & SEEK PARLE 100g 15rs

CHOCOCHIP BRITANIA 75g 15rs

GOLDEN

BAKERY ITC 75g 15rs

CHIPS:-

MUSST BITES PARLE 55g 10rs

LAYS FRITO

AMERICAN STYLE

AND ONION,

MAGIC MASALA,

CLASSIC SALTED 32g 10rs

BINGO ITC

MAD ANGLES 55g 10rs

SALTED 34g 10rs

SPICY MASALA

MIX 34g 10rs

Analysis of ATTA market:-

Q-SNO

Respondent’s / Shop Name

Location

Mo.of year in business – 1 yr 1-5 yr 5-8yr >8yr

1) TOP 2 ATTA NATIONAL BRAND (RANK 1,2)

(A) AASHIRVAAD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

Fig 1.1

From the above pie chart we can find that ITC’s atta brand aashirvard

is clearly the number one national atta brand in vizag followed by Pillsbury .

Aashirvard is clearly having a good market share in the national atta brand

segment

2) BEST MARGIN PROVIDED BY WHICH NATIONAL

ATTABRAND

(A) AASHIRVAAD (B) PRIYA (C) PILLSBURY (D)

ANNAPURNA

Fig1.2

The above pie chart deals with which atta company provides a good

amount of margin to its products. And from the information collected from

the retailers its found ITC leads in this too while many other retailers feel

Pillsbury also provide a good amount margin

3)WHICH ATTA BRAND PROVIDES BEST PROMOTIONAL

DISCOUNTS/ OFFERS

(A)AASHIRVAAD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

Fig-1.3

The above pie chart deals with which atta company has good

promotional activities for the customers as well as for the retailers. And from

the information collected from the retailers its found ITC is the company

which has a good amount promotional activities followed by annapurna atta

from TATA’s

4) WHICH COMPANY HAS BEST SCM / LOGISTICS

(A)AASHIRVAAD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

Fig-1.4

The above pie chart deals with which atta company has a good SCM \

LOGISTICS. And from the information collected from the retailers its found

ITC has the best logistics or the best supply chain management which is

very efficient in taking orders and delivering the products followed by

annapurna atta

5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER

WEEK)

(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY

Fig - 1.5

In the above question the retailer were asked whats the ideal number

of weeks or days do they want the company officials or salesmen to pay

them a visit and deliver the products to them and from the above pie chart it

can be easily found that most if the retailers prefer a visit within a week

itself so as to maintain a good amt of stock.

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A)AASHIRVAAD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

Fig-1.6

The above pie chart deals with which atta company provides with

good credit facilities. And from the information collected from the retailers

its found ITC is the company which provides the highest amount of credit

facilities to its retailers when compared with any other company in the

buisness

7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A)< 20% (B) 20% - 40% (C) 40% - 60%

(D) > 60% (E) NO CREDIT REQD

Fig- 1.7

In the above question the retailer were asked how much credit per cent

would they like to get from the company’s and from the above pie chart it

has been found that most of the retailers want that the credit facility should

be between 20%-40%.

8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS

(D) 15-30 DYS (E) > 30 DAYS

Fig-1.8

In the above question the retailer were asked how many days do they

prefer should be given to them to repay the credit given to them by the

company and from the above pie chart it has been found that most of the

retailers want that the credit repayment days should be between 15-30 days.

9) % OF ATTA BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A) < 5 % (B) 5%-10% (C) 10%-15% (D) >15%

Fig- 1.9

In the above question the retailer were asked how much per centage

does the atta products contribute in there business and from the above pie

chart it has been found that nearly 10 % to 15% is what atta business

contributes to a retailers business.

Analysis of PASTA market:-

Q-SNO

Respondent’s / Shop Name

Location

No.of year in business – 1 yr 1-5 yr 5-8yr >8yr

1) TOP 2 READY TO EAT ( NOODLES) NATIONAL BRAND

(RANK 1,2)

(A) SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

Fig- 2.1

From the above pie chart we can find that ITC’s ready to eat (pasta)

brand sunfeast is clearly the last brand in this segment when compared to its

competitors . As clearly seen nestle maggi is the leader in this market of

ready to eat noodles.

2)BEST MARGIN PROVIDED BY WHICH NATIONAL READY TO

EAT BRAND

(A)SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

Fig - 2.2

The above pie chart deals with which ready to eat brand provides a

good amount of margin to its products. And from the information collected

from the retailers its found that maggi leads in this too leaving all its

competitors far behind .

3)WHICH READY TO EAT BRAND PROVIDES BEST

PROMOTIONAL DISCOUNTS/OFFERS

(A) A SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

Fig- 2.3

The above pie chart deals with which ready to eat brand has good

promotional activities for the customers as well as for the retailers. And from

the information collected from the retailers its found that maggi has the wide

range of promotional activities for customers as well as for the retailers

4)WHICH COMPANY HAS BEST SCM / LOGISTICS

(A)SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

Fig- 2.4

The above pie chart deals with which atta company has a good SCM \

LOGISTICS. And from the information collected from the retailers its found

maggi has the best logistics or the best supply chain management which is

very efficient in taking orders and delivering the products when compared

with any of its competitiors.

5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER

WEEK)

(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY

Fig - 2.5

In the above question the retailer were asked whats the ideal number

of weeks or days do they want the company officials or the salesmen to pay

them a visit and deliver the products to them and from the above pie chart it

can be easily found that most of the retailers prefer a visit within a week

itself so as to maintain a good amt of stock.

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A)SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

Fig 2.6

The above pie chart deals with which ready to eat brand provides with

good credit facilities. And from the information collected from the retailers

its found magi provides the highest amount of credit facilities to its retailers

when compared with top raeman and sunfeast

7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A)< 20% (B) 20% - 40% (C) 40% - 60%

(D) > 60% (E) NO CREDIT REQD

Fig- 2.7

In the above question the retailer were asked how much credit per cent

would they like to get from the company’s and from the above pie chart it

has been found that most of the retailers want that the credit facility should

be between 20%-40%.

8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS

(D) 15-30 DYS (E) > 30 DAYS

Fig - 2.8

In the above question the retailer were asked how many days do they

prefer should be given to them to repay the credit given to them by the

company and from the above pie chart it has been found that most of the

retailers want that the credit repayment days should be between 15-30 days.

9) % OF READY TO EAT BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A) < 5 % (B) 5%-10% (C) 10%-15% (D) >15%

Fig - 2.9

In the above question the retailer were asked how much per centage

does the ready to eat products contribute in there business and from the

above pie chart it has been found that nearly 5 % to 10% and quite few

retailers said it contributes less than 5% to there business.

Analysis of BISCUIT market:-

Q-SNO

Respondent’s / Shop Name

Location

1) TOP 2 BISCUIT BRAND (RANK 1,2)

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

Fig- 3.1

From the above pie chart we can find that there is a lot of neck to neck

competition in the biscuit market with all the three company’s having a good

amount of market share but its britania which is having the majority

2) BEST MARGIN PROVIDED BY WHICH BISCUITS BRAND

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

Fig 3.2

The above pie chart deals with which biscuit brand provides a good

amount of margin to its retailers. And from the above pie chart we can find

out that its sunfeast which provides a good amount of margin to its retailers

soon followed by britania

3) WHICH BISCUIT PROVIDES BEST PROMOTIONAL

DISCOUNTS/ OFFERS

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

Fig - 3.3

The above pie chart deals with which biscuit brand has best

promotional activities for the customers as well as for the retailers. And from

the information collected from the retailers its found that britania has the

wide range of promotional activities for customers as well as for the retailer .

followed by sunfeast.

4) WHICH COMPANY HAS BEST SCM / LOGISTICS

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

Fig 3.4

The above pie chart deals with which biscuit company has a good

SCM \ LOGISTICS. And from the information collected from the retailers

its found that both sunfeast and britania have a good logistics and there scm

process is good with no problems in supply of goods and services

5)WHICH IS IDEAL NUMBER OF WEEKS FOR YOU ? (PER

WEEK)

(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY

Fig 3.5

In the above question the retailer were asked whats the ideal number

of weeks or days do they want the company officials or the salesmen to pay

them a visit and deliver the products to them and from the above pie chart it

can be easily found that most of the retailers prefer a visit within a week

itself so as to maintain a good amt of stock.

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

Fig - 3.6

The above pie chart deals with which biscuit brand provides with

good credit facilities. And from the information collected from the retailers

its found sunfeast provides the highest amount of credit facilities to its

retailers when compared with top parle and britania.

7)HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A)< 20% (B) 20% - 40% (C) 40% - 60%

(D) > 60% (E) NO CREDIT REQD

Fig - 3.7

In the above question the retailer were asked how much credit per cent

would they like to get from the company’s and from the above pie chart it

has been found that most of the retailers want that the credit facility should

be between 20%-40%.

8)HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS (D) 15-30 DYS (E) > 30 DAYS

Fig - 3.8

In the above question the retailer were asked how many days do they

prefer should be given to them to repay the credit given to them by the

company and from the above pie chart it has been found that most of the

retailers want that the credit repayment days should be between 15-30 days

9)% OF biscuit BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A)< 5 % (B) 5%-10% (C) 10%-15% (D) >15%

Fig - 3.9

In the above question the retailer were asked how much per centage

does the biscuit contribute in there business and from the above pie chart it

has been found that nearly 5 % to 10% .

Analysis of CHIPS market:-

Q-SNO

Respondent’s / Shop Name

Location

1) TOP 2 CHIPS BRAND (RANK 1,2)

(A)BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

Fig 4.1

From the above pie chart we can find that there is a lot of neck to neck

competition in the chip market with all the three companys having a good

amount of market share but its lays and bingo which is having the majority .

2) BEST MAGIN PROVIDED BY WHICH CHIPS BRAND

(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

Fig 4.2

The above pie chart deals with which chips brand provides a good

amount of margin to its retailers. And from the above pie chart we can find

out that its bingo and lays which provides a good amount of margin to its

retailers. and the difference is very less.

3) WHICH CHIPS BRAND PROVIDES BEST PROMOTIONAL

DISCOUNTS/OFFERS

(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

Fig - 4.3

The above pie chart deals with which chips brand has best

promotional activities for the customers as well as for the retailers. And from

the information collected from the retailers its found that lays has the wide

range of promotional activities for customers as well as for the retailer

followed by bingo which is also good in promotional activities.

4) WHICH COMPANY HAS BEST SCM / LOGISTICS

(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

Fig - 4.4

The above pie chart deals with which chips company has a good SCM

\ LOGISTICS. And from the information collected from the retailers its

found that both lays and bingo have a good logistics and there scm process is

good with no problems in supply of goods and services.

5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER

WEEK)

(A) <1 (B) 1-3 (C) >3 (D) EVERYDAY

Fig - 4.5

In the above question the retailer were asked whats the ideal number

of weeks or days do they want the company officials or the salesmen to pay

them a visit and deliver the products to them and from the above pie chart it

can be easily found that most of the retailers prefer a visit within a week

itself so as to maintain a good amt of stock.

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

Fig - 4.6

The above pie chart deals with which chips brand provides with good

credit facilities. And from the information collected from the retailers its

found lays provides the highest amount of credit facilities to its retailers

when compared with top bingo and uncle chips.

7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A) < 20% (B) 20% - 40% (C) 40% - 60% (D) > 60%

(E) NO CREDIT REQD

Fig 4.7

In the above question the retailer were asked how much credit per cent

would they like to get from the compnay’s and from the above pie chart it

has been found that most of the retailers want that the credit facility should

be between 20%-40%.

8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A) < 7 DAYS (B) 7 DAYS (C) 7-15 DAYS

(D) 15-30 DYS (E) > 30 DAYS

Fig 4.8

In the above question the retailer were asked how many days do they

prefer should be given to them to repay the credit given to them by the

company and from the above pie chart it has been found that most of the

retailers want that the credit repayment days should be between 15-30 days

9) % OF CHIPS BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A) < 5 % (B) 5%-10% (C) 10%-15% (D) >15%

Fig - 4.9

In the above question the retailer were asked how much per centage

does the chips buisness contribute in there business and from the above pie

chart it has been found that nearly 5 % to 10% .

ITC QUESTIONAIRE

Respondents / Shop Name -

Location-

No. Of years in business–

(A) <1 yr (B) 1-4 yrs (C) 4-8 yrs (D) >8 yrs

1) TICK THE MOST APPROPRIATE LEVEL (SERVICE

SATISFACTION SURVEY)

(A) SUPPLY CHAIN MANAGEMENT

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig 5.1

(A) WD BEATS

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig - 5.2

(C) SALESMAN SERVICE /COURTESY

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig - 5.3

(D) COMPANY OFFICIALLY VISIT

(a) WEEKLY (b) MONTHLY (c) HALF YEARLY (e) YEARLY

Fig - 5.4

(E) RANGE OF PROMOTION ACTIVITIES

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig 5.5

(F) RANGE OF SKU

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig - 5.6

(G) BRAND IMAGE

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig - 5.7

(H) CREDIT FACILITIES

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig - 5.8

(I) RELATIONSHIP BUILDING

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

Fig - 5.9

CHAPTER V

FINDINGS , SUGGESTIONS & CONCLUSION

FINDINGS:-

As per the finding from the market review and market visits while

doing the project under ITC ltd the it was quite clear that ITC is the market

leader in almost all the fields be it its products, credit system, customer

relationship etc. The company has come a long way from the image of only

being a Cigarettes company. The company has created a perfect bond

between itself and the consumer and its brands like sunfeast, aashirvaad,

minto, vivel, fiama are quite familiar among the consumers.

As per the observation it was found that aashirvard atta is the clear

market leader and there is no other company which can give a tuff

competition to ITC. Perfect SKU and Pricing has resulted in the success of

aashirvarad which has eradicated Pillsbury which was the market leader

before. Even companies like HUL which have annapurna atta are finding it

difficult to market it product with the kind of distribution channel ITC is

using.

The success of ITC is not only limited to atta even the biscuit of

business under the brand name sunfeast is doing very well for the company

and is able to stand up in the market even after facing tuff competition from

two very old and prominent companies which were market leaders in this

segment Britania and Parle. The company has been able to aim to different

segments for its biscuit and the result have been very good. Sunfeast marie,

sunfeast glucose, sunfeast burbourn are doing very good and are very

familiar among the consumers. Time to time in pack gifts have also kept the

customers attracted to its products.

Sunfeast pasta is a new product by the company which has done fairly

good for the company. Since pasta is a new product for the people and

people have still not have developed the taste for it. Since the company is

facing its major competition form maggi which is a product from nestle and

has been in this field for a very long time and enjoys a monopoly in the

market. It will take sometime foe sunfeast pasta to become a profitable

product for the company.

Bingo is another product by ITC Ltd which has fairly performed and

is showing positive signs in the market with its growing sales. The product

has able to make an impact in the markets in the recent past. Bingo is facing

its major competition from Lays which has been in the market for a long

time and with many different flavours which has captured the mind of the

people. With proper marketing strategy like buy two get one free has helped

bingo to make a place for itself in the chips market which has lots of scope

for the company since very few players are there in this segment.

CONCLUSION:-

1) The well known brand name that ITC has created by the sale of its

Cigarettes has helped the company to sell it other products without much

of problem or competition.

2) Companies proper distribution channel has helped it to be in the good

books of the retailers which is one of the plus points for the companies

since many companies don’t stand out to ITC’s distribution channels.

3) With its practice of providing maximum credit facility to the retailer it

has become very popular among the retailers be it a small or key outlet

stores.

4) Proper consumer relation has helped the company to strengthen its place

in the market which will be beneficial to the company to turn into market

leader in all the segments.

5) Threat to the company is limited when taken atta and biscuit is taken into

consideration but with the betterment in its products like pasta and chips

very soon it will be the market leader.

SUGGESTIONS:-

1) Company should try and get more different types of SKU’s for its

products like biscuits, pasta and chips since the present SKU are not

enough to capture buyers from all the segments.

2) More and more demonstration are required to be given to the consumers

when it comes to deal with pasta since many don’t know what pasta

actually is. It should be carried out mainly in key outlets.

3) Packaging is also a problem which the company is facing. Company

should try and improve the looks of its packaging specially for its food

products since the competitors are able to get an upper hand when it

comes to attractive packaging.

4) More new flavours are required when chips are taken into consideration.

Out of some six flavours only two or three flavours are doing good in

the market which is helping its competitors like lays to strengthen its

market.

5) More faster distribution is required since many retailers are having

some problems regarding the delivery of goods specially the small

retailers.

6) More and more sales promotional are required so as to improve its

relationship with the customer and to make a strong presence of the

product in the market .

BIBLIOGRAPHY

BOOKS

PHILIP COTLER., “MARKETING MANAGEMENT”,

MACMILLAN BUSINESS BOOKS, 5th edition 2000.

ITC NEWS

MAGAZINE ISSUED BY HUL

SALES MANAGEMENT 5TH EDITION BY

RICHARD .R.STILL

BUSINESS WORLD

ANNEXURES:-

QUESTIONAIRE FOR THE DISTRIBURORS:-

1) Name of the company for which distribution is been carried out?

2) Name and address of the distributor?

3) How many salesmen / computer operators/ delivery boys / autos / vans

are employed by the distributor?

4) Salary of the workforce?

5) Where is the main branch if the company?

6) Where are the main depots/ carry and forward points of the company?

7) How many outlets does a salesman needs to cover in a day?

8) Total no. of outlets that comes under the distributor?

9) What are the sales promotional activities carried out by the company?

10)Are any credit facility provided by the company if any then for how

many days?

11)Are there any more distributors for the company in Visakhapatnam?

12)How many times a week are the products sent by the company to the

distributor?

13)What is the value of the truck load of products received?

14)How many times are the rural markets visited?

15)How many times do the company officials visit the distributor or the

markets?

16)What is the sales force structure?

17)What happens to the expired or DND products?

18)Are there any kind of reimbursements provided by the company?

19)What is the criteria one needs to fulfill while taking the distributorship?

20) What is the monthly/ annual turnover of the company?

QUESTIONAIRE FOR THE ATTA BRAND:-

Q-SNO

Respondent’s / Shop Name

Location

No.of year in business – 1 yr, 1-5 yr, 5-8yr, >8yr

1) TOP 2 ATTA NATIONAL BRAND (RANK 1,2)

(A)AASHIRVARD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

2) BEST MAGIN PROVIDED BY WHICH NATIONAL ATTA

BRAND

(A)AASHIRVARD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

3)WHICH ATTA BRAND PROVIDES BEST PROMOTIONAL

DISCOUNTS/OFFERS

(A)AASHIRVARD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

4) WHICH COMPANY HAS BEST SCM / LOGISTICS

(A)AASHIRVARD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER

WEEK)

(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A)AASHIRVARD (B) PRIYA (C) PILLSBURY (D) ANNAPURNA

7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A)< 20% (B) 20% - 40% (C) 40% - 60% (D) > 60% (E) NO CREDIT

REQD

8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS (D) 15-30 DYS (E) > 30 DAYS

9) OF ATTA BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A)< 5 % (B) 5%-10% (C) 10%-15% (D) >15%

QUESTIONAIRE FOR THE BISCUIT BRAND:-

Q-SNO

Respondent’s / Shop Name

Location

Mo.of year in business – 1 yr 1-5 yr 5-8yr >8yr

1) TOP 2 BISCUIT BRAND (RANK 1,2)

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

2) BEST MARGIN PROVIDED BY WHICH BISCUITS BRAND

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

3) WHICH BISCUIT PROVIDES BEST PROMOTIONAL

DISCOUNTS/OFFERS

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

4) WHICH COMPANY HAS BEST SCM / LOGISTICS

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU ?

(PER WEEK)

(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A)SUNFEAST (B) PARLE (C) BRITANIA (D) HLL

7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A)< 20% (B) 20% - 40% (C) 40% - 60%

(D) > 60% (E) NO CREDIT REQD

8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS

(D) 15-30 DYS (E) > 30 DAYS

9) % OF CHIPS BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A)< 5 % (B) 5%-10% (C) 10%-15% (D) >15%

QUESTIONAIRE FOR SUNFEAST PASTA:-

Q-SNO

Respondent’s / Shop Name

Location

Mo.of year in business – 1 yr 1-5 yr 5-8yr >8yr

1) TOP 2 READY TO EAT ( NOODLES) NATIONAL BRAND

(RANK 1,2)

(A)SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

2) BEST MAGIN PROVIDED BY WHICH NATIONAL READY TO

EAT BRAND

(A) SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

3) WHICH READY TO EAT BRAND PROVIDES BEST

PROMOTIONAL DISCOUNTS/OFFERS

(A) A SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

4) WHICH COMPANY HAS BEST SCM / LOGISTICS

(A)SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER

WEEK)

(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A)SUNFEAST PASTA (B) MAGGI (C) TOP RAEMAN

7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A)< 20% (B) 20% - 40% (C) 40% - 60%

(D) > 60% (E) NO CREDIT REQD

8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS

(D) 15-30 DYS (E) > 30 DAYS

9) % OF READT TO EAT BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A)< 5 % (B) 5%-10% (C) 10%-15% (D) >15%

QUESTIONAIRE FOR THE ATTA BRAND:-

Q-SNO

Respondent’s / Shop Name

Location

1) TOP 2 CHIPS BRAND (RANK 1,2)

(A)BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

2) BEST MAGIN PROVIDED BY WHICH CHIPS BRAND

(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

3) WHICH CHIPS BRAND PROVIDES BEST PROMOTIONAL

DISCOUNTS/OFFERS

(A)BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

4) WHICH COMPANY HAS BEST SCM / LOGISTICS

(A) BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

5) WHICH IS IDEAL NUMBER OF WEEKS FOR YOU? (PER

WEEK)

(A)<1 (B) 1-3 (C) >3 (D) EVERYDAY

6) WHICH COMPANY PROVIDES BEST CREDIT FACILITIES

(A)BINGO (B) LAYS (C) KUR KURE (D) UNCLE CHIPS

7) HOW MUCH CREDIT % WOULD YOU PREFER OF YOUR

TOTAL ORDER

(A)< 20% (B) 20% - 40% (C) 40% - 60% (D) > 60%

(E) NO CREDIT REQD

8) HOW MUCH TIME DO YOU PREFER TO BE ALLOTED FOR

CREDIT

(A)< 7 DAYS (B) 7 DAYS (C) 7-15 DAYS (D) 15-30 DYS

(E) > 30 DAYS

9) % OF CHIPS BUSINESS CONTRIBUTION TO TOTAL

PROPRIETORS / SHOP BUSINESS

(A)< 5 % (B) 5%-10% (C) 10%-15% (D) >15%

ITC QUESTIONAIRE

Respondents / Shop Name -

Location-

No. Of years in business– (A) <1 yr (B) 1-4 yrs (C) 4-8 yrs (D) >8 yrs

1) TICK THE MOST APPROPRIATE LEVEL (SERVICE

SATISFACTION SURVEY)

(a)SUPPLY CHAIN MANAGEMENT (b) EXCELLENT

(c) GOOD (d) SATISFACTORY (e) POOR

2) WD BEATS

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

3) SALESMAN SERVICE /COURTESY

(a)EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

4) COMPANY OFFICIALLY VISIT

(a)WEEKLY (b) MONTHLY (c) HALF YEARLY (e) YEARLY

5) RANGE OF PROMOTION ACTIVITIES

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

6) RANGE OF SKU

(a)EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

7) BRAND IMAGE

(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

8) CREDIT FACILITIES

(a)EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

9) RELATIONSHIP BUILDING

(a)EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR