Summer Project(ITC)Kaushik

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An itc [Type text]

May and June, 2010

A project report on






Submitted to: Mr. Aarvind Upadhyay Area Manager ITC Limited (Kanpur)

Submitted by: Kaushik banerjee PGDM Sem -2 IPM (Meerut)


Content Chapter 1 Acknowledgement. Preface. Introduction: FMCG and product characteristics. Industry segment. Project description.

Chapter 2 Company profile. History, Evolution and overview. ITC Mission, Vision and core values. Business portfolio. Marketing & Pricing strategy. ITC working structure. Working of a branch. GR1, 2, 3 & 4. Distribution channel. Market share of all FMCG by ITC .

Chapter 3 Major players. Competitors analysis. Project objective. Methodology. Brand wise categorization.

Chapter 4 Data sheet. Data analysis.

Chapter 5

Finding and evaluation. SWOT analysis. BCG matrix.

Chapter 6 Suggestions and recommendations.

Learning from the project. Limitations and bibliography.


Before starting a reach out to the innards of the project work, as a part of my Appreciativeness-interlaid, I would like to highlight the names of certain people, who not only lent a helping hand in attaining a plurality of practical exposure, but bailed me out of hardship as and when I encountered it. I would like to thank Mr. Aarvind upadhyay area manager (Kanpur) ITC Limited, Lucknow for explaining me each and every aspect of Marketing Research in a lucid and practical way and for giving me the opportunity to work on this project. I am also thankful to Mr.Amit srivastava and Mr. Shrijeet paul area executive (Kanpur) ITC Lucknow and to Mr. Kunal sahu for making me aware regarding the field and helping me to complete this summer training project. I fell highly delighted in mentioning the name of my friends and last but not the least thanking to my parents for providing me the entire emotional and-moral backup without support and encouragement of them this project would have not been completed. I hope that the project would be a great event to boost the hierarchy of my academic career.


Research is the feedback, which any organization sought for the purpose of effective policy making. It is the systematic problem Analysis, model building and fact finding for the purpose of important decision -making and control in the marketing of all goods and services. Every research is aimed to achieve certain solution to research problems .If there is no problem then, the meaning of the research becomes vague. The research problem that I was supposed to deal with was, brand wise comparison of personal care products and their loyalty schemes given by the companies in Kanpur market. The study was done on the basis of parameter like price paid for annual the display, service, and promotional schemes etc. The different comparative companies of personal care products were Hindustan unilever, P&G, Marico, Dabur .The sample unit was the retailer of Kanpur. With a well define research problem, a study was started two ascertain the variations and conditions of the existing sales of personal care products. The overall objective of the study was to analyze the annual display outlets of the company and judge is it a wrong or a write outlet for display.

Introduction FMCGThe fast moving consumer goods (FMCG) sector is the fourth largest sector in the economy with a total market size in excess of Rs 60,000 crore. This industry essentially comprises of consumer non durable products (CND) and caters to the everyday needs of the people.

ExportsIndia is one of the worlds largest producer for a FMCG products but its FMCG exports are languishing at around 1,000 crore only. There is noteworthy potential for increasing exports but there are certain factors inhibiting this, Small-scale sector reservations bound ability to invest in expertise and quality up gradation to achieve economies of scale. Moreover lower volume of higher value added products reduce scope for export to developing countries.

Product characteristicsProducts belonging to FMCG sector generally have following


They are generally used once in a month. They are used directly by end users. They are non durable. They are sold in packaged form. They are branded.

Industry SegmentThe main segments of FMCG sectors are:

Personal care:Oral care; Skin care; Personal wash (Soaps); Cosmetics and Toiletries; Deodorants; Perfumes; Paper products (Tissues, diapers and sanitary); Shoe care. Major companies active in this segment are Hindustan unilever, Godrej soaps, Colgate-Palmolive, Marico, Dabur, Proctor and gamble.

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The premium segment caters mainly to urban high class and upper middle class, and is more brand conscious and less price sensitive. The popular segment caters to mass segments in urban and rural markets; prices here are around 40% of the premium segment prices.

GrowthWith the increase in rural income and improvement in distribution network (i.e. road development projects), the penetration levels are set to increase. Since the consumption level in urban areas is already high in most of the categories, the growth can come only from deeper penetration and higher consumption in rural areas. In the year 2005-06, the sector witnessed growth because of the increase in consumer demand from urban and rural areas. In addition to demand, prices also went up. Also, with the increase in disposable income, some consumers have moved up in the value chain. The growth for FMCG products in February 2006 was the highest in 5 years, on YoY (year over year) basis.

ProspectsThe proportion of the consuming class to total households will touch 46% by FY07 from 17.4% in FY95, estimated by National Council for Applied Economic Research (NCAER). As the native companies are expanding in international market, the MNC subsidiaries are looking for greater leverage of the parent strengths. Also, big MNCs cannot afford to avoid India because of its potential market

Personal Care Sector in (India)Increase in per capita income and heightened awareness of personal appearances; have fuelled the demand for personal care products in India and today this sector has emerged as one of the fastest growing markets in the country. Keeping this in mind, we have released an industry Profile on Personal Care Sector in India. This well researched document is presented in a series of 105 slides in PDF format, with data tables, and graphs. This profile has been prepared through extensive secondary and internet research. This profile will help in providing basic information about the industry to foreign companies planning to enter the Indian market or existing companies (foreign / Indian) expand their business in India, companies planning to set up manufacturing units and companies strategising to increase their market share, etc. The profile will also be of value to consultants, analysts, market research organizations and corporate advisors. Profile on Personal Care Sector in India helps to gain an insight into the evolution of the industry and competitive dynamics prevalent in the market. It discusses the recent developments in the industry and analyzes the key trends and issues.

Personal care (Global view)The personal care industry had an excellent growth rate in all the major markets of the world in 2005-2006. Since the past few years, people have become more conscious about their appearance and look, leading to a huge demand for these products in the whole world. New products are launched by the leading brands to attract consumers. The trends in all the leading personal care markets show that this industry is showing a massive potential for growth. The womens beauty industry is growing at rate of approximately USD 202.254 billion every year where as the global market for cosmetics alone USD 30.33 billion. The global personal care products industry is growing at a very rapid pace; some of the factors responsible are:

Rise in consumer spending power, Increased demand due to people consciousness, Key demographic factors, Entry of herbal and organic products, Lifestyle and climactic changes, and Massive advertising and promotiom strategy

FutureProspectsThe future for the personal care products industry is very prosperous, which can be analyzed by the rising growth trends of the industry. But there are