An itc [Type text]

May and June, 2010

Submitted to: Submitted by:

Mr. Aarvind Upadhyay Kaushik banerjee

Area Manager PGDM Sem -2

ITC Limited (Kanpur) IPM (Meerut)

INSTITUTE OF PRODUCTIVITY & MANAGEMENT {MEERUT}

A project report on

ITC

COMPETITION PAID PRACTICES WITH REFERENCE TO THE LOYALTY OUTLETS VIJETA STORE ,PERFECT STORE, INDIA OUTLET ,STAR OUTLET AND ITC PERSONAL CARE PRODUCTS PERFORMANCE AT THESE OUTLET .

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.

Competitor’s 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.

ACKNOWLEDGEMENT

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.

PREFACE

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 –FMCG

The 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.

Exports

India is one of the world’s 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 characteristics

Products belonging to FMCG sector generally have following characteristics:

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 Segment

The 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.

Growth 

With 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.

Prospects

The 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 women’s beauty industry is growing at rate of approximately

USD 202.254 billion every year where as the global market for cosmetics

alone USD 30.33 billion. The global personal care products industry is

growing at a very rapid pace; some of the factors responsible are:

Rise in consumer spending power,

Increased demand due to people consciousness,

Key demographic factors,

Entry of herbal and organic products,

Lifestyle and climactic changes, and

Massive advertising and promotiom strategy

FutureProspects

The 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 many concerns related to the chemicals and toxins used as

ingredients for making personal care products. These substances can

affect our health and the environment also. They are absorbed through

our skin and can enter our bloodstream thereby affecting our kidney and

liver, and thus can have very harmful effects on our bodies and when

these products are washed off from the body, they are released in to the

environment.

Many companies are addressing these problems and are shifting their

focus to the natural and organic products. These products are beneficial to

our health as well as environment, because very less quantity of synthetic

compounds and toxic elements are used in these products. In most of the

countries the demand for organic products has been rising steadily.

According to a study conducted by the Natural Personal Care Consumers:

Unlocking Future Potential, the organic products market in UK alone will

rise from USD 18.19 million in 2007 to USD 24.26 million in the year 2011.

Organic and natural personal care products industry has profited much

from the growing consumer awareness and their changing lifestyles.

These developments have also helped in introduction of a lot of organic

products in the market. Despite many sectors showing signs of maturation

in the key, developed markets, innovation remains high and while

economic prosperity continues many consumers are proving willing to

make the trade up, signaling a positive future for value sales.

Household care:

Fabric wash (Laundry soaps and synthetic detergents);household cleaners

( dish/utensils cleaners, floor cleaners, toilet cleaners, air fresheners,

insecticides and mosquito repellants, metal polishes and furniture polish).

Major companies active in this segment include Hindustan uni lever, Nirma

and Reckitt & Colman.

Branded and packaged Food and Beverages:

Health beverages; soft drinks; staples; bakery products (biscuit, cakes and

bread); snack food; chocolate; ice cream; tea coffee; processed fruits,

vegetables and meat; dairy products; bottled water; branded flour;

branded rice; branded sugar; juices.

Major companies active in this segment are Hindustan unilevewr, Nestle,

Cadbury and Dabur.

Spirits and Tobaccos:

Major companies active in this segment are ITC, Godfrey Phillips, UB and

Shaw Wallace.

Project Description

There is a strong MNC presence in the Indian FMCG market. The 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 populace.

The project will study competition paid practices with reference to the loyalty

outlets Vijeta store, Perfect store, India outlet and Star outlet and an ITC PCP

performance at these outlets. The project duration is of 8 weeks from 20 th

April to 20th June.

The whole Kanpur area and all the three WD points (B.R Sons, STC and Shree

Traders) areas have been visited for study.

A detailed study and research work will be done by collecting and analyzing

the primary data obtained from PAMS division from various retail amass.

Company Profile

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

capitalisation of over US $ 22 billion and a turnover of over US $ 5 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 ranks among India's `10 Most Valuable

(Company) Brands', in a study conducted by Brand Finance and published by

the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.

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

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

Information Technology, Branded Apparel, Personal Care, Stationery, Safety

Matches and other FMCG products. While ITC is an outstanding market

leader in its traditional businesses of Cigarettes, Hotels, Paperboards,

Packaging and Agri-Exports, it is rapidly gaining market share even in its

nascent businesses of Packaged Foods & Confectionery, Branded Apparel,

Personal Care and Stationery.

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

perceived to be dedicatedly nation-oriented. 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 Ltd,

provides IT services and solutions to leading global customers. ITC Infotech

has carved a niche for itself by addressing customer challenges through

innovative IT solutions.

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 26,000 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

3,42,000 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 Evolution and Overview

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco

Company of India Limited. As the Company's ownership progressively

Indianised, the name of the Company was changed from Imperial Tobacco

Company of India Limited to India Tobacco Company Limited in

1970 and then 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-business, Foods, Lifestyle Retailing,

Education & Stationery and Personal Care - the full stops in the Company's

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

stands rechristened 'ITC Limited'.

The Company’s 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.

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-Welcomgroup Hotel

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

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

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

infrastructure and generate large scale direct and indirect employment.

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

leadership, with over 100 owned and managed properties spread across

India.

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 forayed into the Greeting, Gifting and Stationery products

business with the launch of Expressions range of greeting cards. A line of

premium range of notebooks under brand “Paperkraft” was launched in

2002. To augment its offering and to reach a wider student population, the

popular range of notebooks was launched under brand “Classmate”in

2003. “Classmate” over the years has grown to become India’s largest

notebook brandand has also increased its portfolio to occupy a greater

share of the school bag. Years 2007- 2009 saw the launch of Children Books,

Slam Books, Geometry Boxes, Pens and Pencils under

the “Classmate” brand. In 2008, ITC repositioned the business as the

Education and Stationery Products Business and launched India's first

environment friendly premium business paper under

the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the

premium executive stationery and office consumables segment. Paperkraft

entered new categories in the office consumable segment with the launch of

Textliners, Permanent Ink Markers and White Board Markers in 2009.

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

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

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

Classic formal wear (2002) and Wills 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 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-

oand 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 eight 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.

Mission, Vision and Core Values

Business Portfolio

Marketing and Pricing Strategy

ITC Working Structure

ITC Working Of a Branch

BRANCH MANAGER

ASSITANT MANAGER ASSITANT MANAGER

ASSITANT MANAGER

{GR2} {GR1/3} {GR4}

PAMS FOOD/BINGO

CIGRATTE

AREA MANAGER AREA MANAGER AREA

MANAGER

AREA EXICUTIVE/ AREA EXICUTIVE /

AREA EXICUTIVE/

SALES TRANIEE SALES TRANIEE SALES

TRANIEE

GR 1, 2, 3 and 4.

GR 1 / GR 3 GR 2 GR 4

Food and Bingo PAMS Cigarettes

Biscuits Shampoos Cigerattes

Confectioneries Toilet soap Match box[

Pasta Shower gel -

Salt Agarbatti -

Snacks Dhoops -

Masalas - -

Candy - -

Bingo - -

Atta - -

Distribution Channel

(SUPPLY CHAIN)

FACTORY/HUB

K0 K2

Wholesale service provider

(wsp)

K1

K3

wholesale dealer(wd)

K4

Wholesalers’ (wd) Retail Stockiest (sip)

K0 - factory to market.

K1 – factory to wd.

K2 – factory to wsp.

K3 – wsp to wd.

K4 – wd to market.

Market Share of all FMCG

Now ITC do not produce greeting cards.

Major Players

Among the major players Hindustan unilever has the strong presence

in the food, personal care and the household care (detergents) sectors; ITC is

the market leader in cigarettes; Nirma has a strong presence in the

detergent market; Nestle and Britannia are active in the food sector and

Colgate has a strong presence in the oral care sector.

Competitor’s analysis

Vijeta outlet: These outlets are mainly the whole sale outlets the term

Vijeta is defined by Hindustan unilever as a part of their loyalty scheme.

There are three main categories in this segment:

1) Silver.

2) Gold.

3) Platinum.

*Servicing norms – daily.

Selection criteria

1) Silver is selected on a minimum sale of Rs 75,000 per month.

2) Gold is selected on a sale of Rs 75,000 plus per month.

3) Platinum is selected on a minimum sale of Rs 1,50,000 per month.

Location of main vijeta stores in Kanpur.

1) Gp lane.

2) Masale wali gali.

3) Nayaganj.

4) Visati bazaar.

*There are 112 vijeta stores in Kanpur.

Super value stores: These are the major retail outlets of Hindustan

unilever these retail outlets contribute a major part in sales of Hindustan

unilever. HUL earlier used to pay 3.5% for the display but these days they

pay a fixed rent on their display and the rent is calculated on average basis

and sales at these outlets.

*Servicing norms – 2 days in a week 1 day dets and 1 day cosmetics.

Profit margin – Dets (Soaps and detergents) - 8%.

Cosmetics (Shampoo, oral , skin and hair) – 10%.

Selection criteria

1) On sales of Rs 80,000 to 1,00,000.

2) Location of the store.

3) On footfall.

Location of main super value stores in Kanpur

1) Rakesh Lalbangla.

2) Hazari Naveen market.

3) Kholi Naveen market.

4) Bhatia Shastri nagar.

5) Ramesh Kumar Aryaganj.

*There were earlier 160 svs but now there are only 5 stores.

Perfect stores: This is a new concept brought in by Hindustan unilever here

they are changing their old super value store to a newly called concept

Perfect store. Project ‘perfect stores’ is the world’s biggest consumer

connects initiative in Unilever family to raise falling market share of the

Indian arm. These ``perfect stores’’ are standardized ones with set plans for

fixtures and products and display. HUL’s experience shows a neat

segmented arranging of similar products helps boost sales 30% of a store

since 70% of purchase decisions are made on the spot. 

Three basic fundamentals of ‘Perfect Store’

1) Visibility.

2) Assortment.

3) Cleanliness.

Selection criteria

1) On sales of Rs 80,000 to 1,00,000.

2) Location of the store.

3) On footfall.

*There are 160 perfect stores in Kanpur.

India outlet: These are the major retail outlets of Procter and Gamble and

these outlets contribute the major part of sales of the company. These

outlets are the class A outlet of the company earlier these outlets were

called Platinum outlets.

There are three main categories in this segment:

1) Mass.

2) Open trade (OT).

3) Wholesale.

Selection criteria

1) Mass on sale of Rs 1,00,000.

2) Open trade (OT) on sale of Rs 5,000 to 7,000.

3) Wholesale on sale of Rs 1,00,000 to 1,50,000.

Star store: These outlets are basically the mom and pop stores rural stores.

These outlets are generally located in rural areas and the Procter and

Gamble tries to focus their rural areas from here.

Selection criteria

1) Location of the store.

2) On footfall.

Objective of the Project

All companies are having their own planning and business strategies but the

company who is having the best, is the most successful company among its

competitors. So the company can easily get success among its competitors

by applying best effective marketing strategies.

The main objective of the study is:-

Competition paid practices with reference to the loyalty outlets Vijeta

store, Perfect store, India outlet and Star outlet.

To know the impact of retail visibility on customers ultimate purchase

intention.

Understanding about the function of merchandising system, visual

merchandising and display.

To find out the problems faced by different (wd) points in selecting

right annual display points.

An ITC PCP performance at these outlets.

Methodology

A research design is the arrangement of condition for collection and analysis

of data in a manner that aims to combine relevance to the research purpose

with economy in procedure. A good design is often characterized by

adjectives like flexible, appropriate, efficient, and economical and so on. The

design appropriate for this research is DISCRIPTIVE RESEARCH WITH A

HELP OF A SCHEDULE. Descriptive research includes surveys, fact-findings

enquiries of different kinds. The major purpose of this research is description

of the state of affairs, as it exists at present. The main character of this

method is that the researcher has no control over the variables

CLASSIFICATION OF DATA:

I have classified the data into two specific types:

Primary source:

1. Interview.

2. Filling up of schedule.

3. Observation.

4. Verbal communication.

Secondary source:

1. Internet.

2. Magazines.

Sample size:

The sample size for retailers is 200.

Period of study:

The study is carried out for a period of 60 days. It commenced on 20th April

2010 and completed on 20th June 2010.

Field area:

This research study work was carried out in Kanpur Uttar Pradesh.

Focused brand:

Fiama di wills.

Vivel di wills.

Vivel.

Superia.

Brand wise categorization

Shampoos

Premium segment.

Fiama di Wills (shampoo). Variants

Every day mild.

Aqua balance.

Volume boost.

Silky strong.

Shine in style.

Mid segment.

Vivel di wills (shampoo) ` Variants

Soft and fresh.

Shine and glow.

Volume and bounce.

Popular segment.

Superia (shampoo) Variants

Shiny black.

Vibrant green.

Maxi protect.

Shower gels

Fiama di wills (shower gel) Variants

Mild dew.

Exotic dream.

Clear spring.

Soaps

Premium segment.

Fiama di Wills (soaps) Variants

Mild dew.

Clear spring.

Upper mid segment.

Vivel di wills (soaps) Variants

Sheer radiance.

Sheer cream.

Mid segment.

Vivel (soaps) Variants

Young glow.

Sandal sparkle.

Auerveda essence.

Satin soft.

Popular segment.

Superia (soaps) Variants

Healthy glow.

Fragrant flower.

Natural glow.

Lemon fresh.

Soft sandal.

Data

Sheet

Data Analysis

Annual display outlets

1) From all 91 annual display outlets we have only 11 low profile outlets

which can be changed or mended.

a) Omkar genral store.

b) Mittal genral strore.

c) Maa pitambar genral store.

d) Deepu sales.

e) Sudhir store.

f) Virendra genral store.

g) Gupta fancy.

h) Sewa prov store.

i) Bhatia prov store.

j) Kishan lal prov store.

k) Priya medical.

2) We have an average height of 4.487 feet of our display windows from the

floor.

3) An average length and breadth of 2.7, 2.6 inches.

4) We are paying an average of Rs 665.87 to all these outlets.

5) Competition is having an average of 4 windows for pams at these outlets.

6) Competition is having an average space of 4.87sqft area for display at

these outlets.

7) Competition is paying an average sum of Rs 1786.669 to these outlets.

Vijeta stores.

1) Availability superia toilet soap in 112 Vijeta stores 633 CFC.

2) Availability superia shampoo 515 CFCin 112 Vijeta stores.

3) Availability Vivel toilet soap in 112 Vijeta stores is 193 CFC.

4) Availability of competition is 859 CFC in 112 Vijeta stores.

Finding and Evaluation

1) Payment scheme for the annual display outlets is not so attractive to the

retailers in comparison to other major FMCG companies.

2) No clear communication, retailers are not aware of the extra 4% discount

given to them for the display.

3) Displays not at hot spots.

4) No proper tracking on merchandising.

5) It was found that the low profile respondents wants fixed gift as a part of promotional schemes and high profile respondents want scratch cards, this motivates them more to sell any product.

6) Rate cutting being also a factor for low sales at different areas of Kanpur.

7) Communication gap between company and sales man.

Ie: Hindustan unilever directly reaches there salesman and educates them

about new offers and schemes but ITC does not do so. ITC only reaches to

(wd) and tells them about schemes and offers and (wd) manipulates the

information and then informs the salesman.

8) All display windows of Hindustan unilever in Kanpur are cancelled now due

to their structural change only windows at cosmetic stores are running.

SWOT Analysis

Strengths

ITC leveraged it traditional businesses to develop new brands for new

segments. For example, ITC used its experience of transporting and

distributing tobacco products to remote and distant parts of India to the

advantage of its FMCG products. ITC master chefs from its hotel chain are

often asked to develop new food concepts for its FMCG business.

ITC is a diversified company trading in a number of business sectors

including cigarettes, hotels, paper, agriculture, packaged foods and

confectionary, branded apparel, personal care, greetings cards, Information

Technology, safety matches, incense sticks and stationery.

Weaknesses

The company's original business was traded in tobacco. ITC stands for

Imperial Tobacco Company of India Limited. It is interesting that a business

that is now so involved in branding continues to use its original name,

despite the negative connection of tobacco with poor health and premature

death.

To fund its cash guzzling FMCG start-up, the company is still dependant upon

its tobacco revenues. Cigarettes account for 47 per cent of the company's

turnover, and that in itself is responsible for 80% of its profits. So there is an

argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being

subsidised by its tobacco operations. Its Gold Flake tobacco brand is the

largest FMCG brand in India - and this single brand alone hold 70% of the

tobacco market.

Opportunities

Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others)

can be developed using strategies of market development, product

development and marketing penetration.

ITC is moving into new and emerging sectors including Information

Technology, supporting business solutions.

e-Choupal is a community of practice that links rural Indian farmers using

the Internet. This is an original and well thought of initiative that could be

used in other sectors in many other parts of the world. It is also an ambitious

project that has a goal of reaching 10 million farmers in 100,000 villages.

ITC leverages e-Choupal in a novel way. The company researched the tastes

of consumers in the North, West and East of India of atta (a popular type of

wheat flour), then used the network to source and create the raw materials

from farmers and then blend them for consumers under purposeful brand

names such as Aashirvaad Select in the Northern market, Aashirvaad MP

Chakki in the Western market and Aashirvaad in the Eastern market. This

concept is tremendously difficult for competitors to emulate.

Chairman Yogi Deveshwar's strategic vision is to turn his Indian

conglomerate into the country's premier FMCG business.

Per capita consumption of personal care products in India is the lowest in the

world offering an opportunity for ITC's soaps, shampoos and fragrances

under their Wills brand.

Threats

The obvious threat is from competition, both domestic and international. The

laws of economics dictate that if competitors see that there is a solid profit

to be made in an emerging consumer society that ultimately new products

and services will be made available. Western companies will see India as an

exciting opportunity for themselves to find new market segments for their

own offerings.

ITC's opportunities are likely to be opportunities for other companies as well.

Therefore the dynamic of competition will alter in the medium-term. Then

ITC will need to decide whether being a diversified conglomerate is the most

competitive strategic formation for a secure future.

BCG Matrix for ITC LTD

Suggestions

The company can introduce power points on the basis of these three

factors availability, cleanliness, visibility and sales . The company

should give them some gifts on collection of these points or these

points can also be redeemed by the retailers on time to time basis.

The company is right now offering 4% extra on windows to the retailers

instead of giving this offer the company should offer the retailer a

discount of 4%+2%+1% (cash discount).

Ie: 1000 *4%=40

40*2%=.8

And 1% cash discount can be given if the payment is delivered within

12 days of purchase.

The company should introduce targets for the retailers and they can be

paid accordingly.

The company can try to introduce SMS greeting system to make the

retailers aware about different schemes and offers and they can also

send them greetings on different occasions and festivals.

Learning from the project

1. All theories and concepts as studied till now got a practical application.

2. To get the best response the bar tenders retailers and the sales person

should be visited at the time which best suit them.

3. Never ever we should over-sale and under deliver. This is the worst

thing for a company because customer loses trust in the company if he

do not get what has been promised.

4. It helped me by polishing my communication skills and taught me how

to deal in the market.

5. As I was floated for the first time in the market, it shifted with

tremendous confidence inside me.

6. It did to same extent help in developing a better understanding

different marketing forgone.

7. It brings with in a sense of responsibility and passion to work for the

organization.

8. I had an opportunity to meet professionals placed very well in the

industry.

Limitations

Although every effort is made to make the report as accurate and

appropriate but yet it has some limitation because situation and

environment are not in control. The limitation of my study is:

The study is concentrated in Kanpur city only so the findings are

generalization for Kanpur only.

The study may be infested by the exaggeration of some respondents.

It is possible that some potential source might have remained

entrapped.

This study is limited to time, and is based on a study for 60day.

Sometimes some consumers were busy in personal life so could not

able to give time for interview and hence some of the datas may not

be exact.

Someone told me I have no time.

Bibliography

BOOKS:

Marketing Management- Kotler Philip

Marketing Research -Boyd

Research Methodology - C.R. Kothari

MAGAZINE:

Business today

WEBSITES:

www.google.com

www.itcportal.com