A SUMMER TRANING ON

SALES OF GOLD FLAKE SPECIAL & OTHER ITC CIGARETTE BRANDS

SUBMITTED BY: GAUTAM JOSHI 591(1120220025)

UNIVERSITY INSTITUTE OF LAW AND MANAGEMENT STUDIES

GURGAON

ACKNOWLEDGEMENTS:

There are many forces who work together in a cohesive and coordinating manner, when we are accomplishing some work. It is my Endeavour to appreciate and thank all those forces who influenced my work directly or indirectly. Its a matter of great pleasure and proud privilege for me to acknowledge and express my sincere gratitude towards Mr. Jaresh Rikhy Area Manager in ITC Ltd. Chandigarh Branch for giving his valuable time and efforts on my project. I also express my sincere thanks to the entire marketing team of Rajpal & Sons Bhiwani Distributer, for giving me an opportunity to do my project in their concern and for the facilities provided to me during my internship.

Above all there is an invisible power of Almighty that unquestionably enlightens the path and help in accomplishing work to its prerogative end. I sincerely thank god for helping me in every Endeavour of my life.

GAUTAM JOSHI

INTRODUCTION:

We regularly talk about things like butter, potato chips, toothpastes, razors, household care products, packaged food and beverages, etc. But do we know under which category these things come? They are called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we buy from local supermarkets on daily basis, the things that have high turnover and are relatively cheaper.

FMCG IN INDIA:
India has a population of over 1 billion and 4 climatic zones . Several religious and personal beliefs, 15 official languages, different social customs and food habits characterize Indian consumer class. Besides , India is also different in culture if compared with other Asian countries. Therefore, India has high distinctiveness in demand and the companies in India can get lot of market opportunities for various classes of consumers. Consumer goods marketers experience that dealing with India is like dealing with many small markets at the same time. India has the youngest population amongst the major countries. There are a lot of young people in India in different income categories. Consumer goods marketers are often faced with a dilemma regarding the choice of appropriate market segment. In India they do not have to face this dilemma largely because rapid urbanization, increase in demand, presence of large number of young population, any number of opportunities are available . The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity. As the restrictions on foreign investments were relaxed in 1991, Multi-National Companies have been entering India since then.

FMCG IN 2011

True to its name, the fast moving consumer goods industry remained on the fast track in 2011, as the rising input costs, high inflation rates or the economic downturn failed to hinder the pace of activity in the sector. As per a study done by industry chamber Ficci, FMCG industry is projected to grow by 16 per cent to Rs 95,150 crore during 2011-12, up from Rs 85,470 crore last year, keeping in mind the rising raw material prices, increase in costs of various inputs like petro-based raw and packaging materials, and above all, that of key ingredient -- palm oil. The year also saw FMCG growth in rural market overtaking that of the urban market. Ficci had said about 35 per cent of the off take for FMCG products come from rural areas. A study by market research firm AC Nielsen for the April-September 2011 period showed that across a wide range of sectors, including skin creams and lotions, hair oils, toothpaste and candies, volume and value growth in rural markets have been significantly higher than urban markets. Skin creams and lotions grew 26 per cent by volumes in rural markets compared with 12 per cent in urban markets for the April-September period. In value terms also, rural markets grew faster than their urban counterparts in skin creams and lotions, according to AC Nielsen reports. Ultimately, FMCG majors chose to bite the bullet. For instance, soap prices were hiked by various companies, including Wipro, Godrej, Reckitt Benckiser and HUL between Re 1 and Rs 4 for products to the range of one kilogram. Similarly, prices of hair oil brands and detergents were also hiked by 4-5 per cent. The year also saw FMCG growth in rural market overtaking that of the urban market. While the sector maintained a 17-18 per cent growth in the urban market, this year, according to industry estimates, rural market showed over 20 per cent growth. Ficci had said about 35 per cent of the off take for FMCG products come from rural areas. A study by market research firm AC Nielsen for the April-September 2011 period showed that across a wide range of sectors, including skin creams and lotions, hair oils, toothpaste and candies, volume and value growth in rural markets have been significantly higher than urban markets.

ANALYSIS OF FMCG SECTOR:

STRENGTHS:
1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector

WEAKNESSES:
1. Lower scope of investing in technology and achieving economies of scale, especially in small sectors 2. Low exports levels 3. "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.

OPPORTUNITIES:
1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market- a population of over one billion. 4. Export potential 5. High consumer goods spending

THREATS:
1. Removal of import restrictions resulting in replacing of domestic brands 2. Slowdown in rural demand 3.Tax and regulatory structure

COMPANY PROFILE:

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 19 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 Business World 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. 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 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3,67,000 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."

THE ITC LEADERSHIP:

Flowing from the concept and principles of Corporate Governance adopted by the Company, leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of shareholders, carries the responsibility for strategic supervision of the Company. The strategic management of the Company rests with the Corporate Management Committee comprising the whole time Directors and members drawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its assigned business. This threetiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom, and the need for supervision and control

MANAGEMENT HIERARCHY:

ITCs VALUES:

THE ITC VISION:

Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.

THE ITC MISSION:

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder valu

BUSINESSES:

CIGARETTES:
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, B&H, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

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 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

LIFESTYLE RETAILING:
ITCs Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and Essenza Di Wills an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country.

PERSONAL CARE:
In line with ITC's aspiration to be India's premier FMCG company, recognized for its worldclass quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.

EDUCATION AND STATIONARY PRODUCTS:

ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering. Today, ITC continues to blend its core capabilities to market a growing range of education and stationery products. These capabilities include, a. Manufacturer of Indias first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard. b. Knowledge of image processing, printing & conversion garnered from its Packaging & Printing Business c. Brand Building & Trade Marketing & Distribution strengths resident in its FMCG Business. ITCs stationery Brands are marketed as Classmate and Paperkraft, with Classmate addressing the needs of students and Paperkraft targeted towards college students and executives.

SAFETY MATCHES:
As part of its strategic initiative to create multiple drivers of growth in the FMCG sector, ITC commenced marketing safety matches sourced from the small-scale sector. The Matches business leverages the core strengths of ITC in marketing and distribution, brand building, supply chain management and paperboard & packaging to offer Indian consumers high quality safety matches. ITCs range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro.

AGARBATTIS:
As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and cottage units in 2003. This business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and strengths in trade marketing and distribution.

HOTELS:
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With over 100 hotels in more than 75 destinations, ITC-Welcomgroup has set new standards of excellence in the hotel industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels business is one of India's finest and fastest growing hospitality chains.

ITC Hotels' commitment to delivering globally benchmarked services, embedded in a culture deeply rooted in India's rich tradition of hospitality, gives it a unique and distinct identity.

PAPERBOARDS AND SPECIALTY PAPERS:

ITCs Paperboards and Specialty Papers Division is Indias largest and most technologically advanced paper and paperboards business. ITC caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements through its four world-class mills in India. Having pioneered many specialty applications like cigarette tissues, packaging boards, aseptic cartons and gypsum liners, ITCs Paperboards and Specialty papers business enjoys market leadership in the value-added paperboards segment, and also has a significant share of the Indian paperboards market. It is also the largest Indian exporter of coated boards.

AGRI BUSINESS:
ITC's pre-eminent position as one of India's leading corporate in the agricultural sector is based on strong and enduring farmer partnerships, that has revolutionized and transformed the rural agricultural sector. A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices and intensive research, has built a competitive and efficient supply chain that creates and delivers immense value across the agricultural value chain. One of the largest exporters of agri products from the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee & Spices.

INFORMATION TECHNOLOGY:
ITC InfoTech, a global IT services company, is today one of Indias fastest growing IT services and solutions providers. Based out of a picturesque 35 acre campus in the heart of Bangalore city, ITC InfoTech, through wholly-owned subsidiaries in the UK and US, provides outsourced IT services and solutions to leading global customers. ITC InfoTech offers IT services and solutions across five key industry verticals: Banking, Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) & Retail, Manufacturing & Engineering Services, Travel, Hospitality & Transportation and Media & Entertainment

ITC GROUP OF COMPANIES:

ITC BRANDS:

ITC CIGARETTE:

SWOT ANALYSIS OF ITC:

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 FMCG start-up, the company is still dependent 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 subsidized by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market.

OPPORTUNITIES:
Core brands such as Aashirvaad, Mint-o, and 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

APPLYING PORTERS FIVE FORCES MODEL IN ITCS CONTEXT:

Porters five forces model was developed by Michael E. Porter in 1979. Porter's five forces include three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers, bargaining power of customers

THE THREAT OF SUBSTITUTE PRODUCTS:

Toilet soaps in India are mostly used in the bar form. The other form that could act as a substitute is Shower form. Showers are a distant dream for 70% of Indias population, who live in the villages where there is not even a regular supply of drinking water. In the urban areas, people bathe by using a bucket of water, mug, and a bar of soap. Although most of the urban houses have a shower facility, showers are seldom used because of the scarcity of water. Thus there isnt much threat to ITC from the substitute products for soaps in the personal care segments.

THE THREAT OF THE ENTRY OF NEW COMPETITORS:

The Indian FMCG sector is a highly profitable market that yields high returns. This has resulted in the entry of many new competitors like Anchor that has forayed into the soap segment for mass market. Sales from a single distributor for Dyna have reportedly risen from two to eight lakhs approximately in the last two years in Jaipur. This has indeed decreased the profitability of ITC in the mentioned segment.

THE INTENSITY OF COMPETITIVE RIVALRY:

This is the major determinant of the competitiveness of the company. Certain rivals compete aggressively and some rivals compete in non-price dimensions such as innovation, marketing, etc. There are a number of competitors who have their soaps in the same price segment as ITC does. Further, there also exist companies who launch soaps with a medicinal value or liquid hand wash soaps who add to the fierce competition.

THE BARGAINING POWER OF CUSTOMERS:

Indian consumers are quite price-sensitive. They have an ability to put the firm under pressure. With a number of competitors present in the same price-strata, a companys decision to revise its prices could backfire strongly. There are many factors that could affect the bargaining power of customers. These are:

buyer concentration to firm concentration ratio degree of dependency upon existing channels of distribution bargaining leverage buyer volume differential advantage of industry products

THE BARGAINING POWER OF SUPPLIERS:

Suppliers of raw materials, components, labor, and services to the firm can be a source of power over the firm. Depending upon the degree of differentiation in the products the suppliers could charge excessively high prices for unique resources.

DISTRIBUTION CHANNEL:
Distribution (or place) is one of the four elements of marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. 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.

NUMBERS OF DISTRIBUTION CHANNEL LEVELS:

ITC has a Supply Chain which facilitates the flow of their product to final Consumers. The manufacturing plants located across the country, delivers the product to many hubs of ITC from where the product is distributed to Whole Sale Service Providers (WSP). There are many Wholesale Dealers (WD) who get the product from these WSPs and through their channels, the product reaches in the market and finally to the consumers. There are retailers, secondary wholesalers and salesman who are the final component in this supply chain before the end consumers.

KEY TERMS:
There are some company-specific terms that we need to know before understanding the supply chain model in ITC. On the basis of starting and finishing points of the goods being transported, we have: Factory Hub Jaipur}:K2 WSP WD WD : K3 Retailer: K4 WD :K1 WSP(C&F) {Jodhpur &

FLOW CHART OF SUPPLY CHAIN AT ITC:

FACTORY

HUB

WSP

WD

Retailer RETAILERS

Secondary Whole sellers Secondary Whole Sellers

SALESMAN

CONSUMER

WHOLESALERS PRICE LIST :

BRAND

India Kings Insignia B&H Classic

Gold Flake

Rich Taste Balanced Taste Refined Taste Referring Taste King Light Honey Dew

Navy cut Flake Gold Flake Premium Gold Flake Special

PURCHASING PRICE/10 STICKS (Rs.) 61.5 69.5 52.08 52.08 52.02 52.02 52.08 52.08 52.08 52.08 44.15 25.79 41.27 20.72

SELLING PRICE/10 STICKS (Rs.) 61.5 69.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 44.5 26 41.6 21

COMMENTS
Wholesalers earns a commission per 1000 packets and even gain on the margin amount, i.e. the difference between their purchasing price and their selling price.

RETAILER'S PRICE LIST:

BRAND

India Kings Insignia B&H Classic

Gold Flake

Rich Taste Balanced Taste Refined Taste Referring Taste King Light Honey Dew

Navy cut Flake Gold Flake Premium Gold Flake Special

PURCHASING PRICE/10 STICKS (Rs.) 61.5 69.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 44.5 26 41.6 21

SELLING PRICE/10 STICKS (Rs.) 70 80 58 58 58 58 58 58 58 58 49 30 45 23

SELLING PRICE PER. STICK 7 8 6 6 6 6 6 6 6 6 5 3 5 2.5

COMMENTS:
Price of India Kings varies because of location and their purchasing price. Though purchasing price of Navy Cut but selling price does not change because of negligible variation.

PRODUCT DETAIL:

BRAND

Segment

LENGTH

SELLING PRICE/10 STICKS (Rs.) 70 80 58 58 58 58 58 58 58 58 49 30 45 23

India Kings Insignia B&H Classic

Gold Flake

Rich Taste Balanced Taste Refined Taste Referring Taste King Light Honey Dew

KSFT SKFT KSFT KSFT KSFT KSFT KSFT KSFT KSFT KSFT LONGS RSFT RSFT SSFT

84mm 97mm 84mm 84mm 84mm 84mm 84mm 84mm 84mm 84mm 74mm 69mm 69mm 64mm

SELLING PRICE PER. STICK 7 8 6 6 6 6 6 6 6 6 5 3 5 2.5

Navy cut Flake Gold Flake Premium Gold Flake Special

PRICE POINT SEGMENTATION:

On the basis of MRP of cigarettes & customers affordability in different areas, the total Cigarette line of I TC Ltd. can be divided into four major segments. Those are mentioned belowPRICE BRAND BRAND PURCHASING SELLING PRICE/10 PRICE/10 STICKS (Rs.) STICKS (Rs.) SELLING PRICE PER. STICK 7 8 6 6 6 6 6 6 6 6 5 5 3 2.5

ABOVE 60 50 TO 60

India Kings Insignia B&H Classic

Gold Flake

Rich Taste Balanced Taste Refined Taste Referring Taste King Light Honey Dew

40 TO 50

20 TO 30

Navy cut Gold Flake Premium Flake Gold Flake Special

61.5 69.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 52.5 44.5 41.6 26 21

70 80 58 58 58 58 58 58 58 58 49 45 30 23

THERE EXIST MAINLY FOUR PRICE-BANDS:

1. Above Rs.60/pack 2.Rs. 50-60/pack 3. Rs. 40-60/pack 4.Rs. 20-30/pack 1. The first price band is for the higher end of the market. 2. The second & thered price band is for the upper middle class customers existing in the market. This price band has a larger share in the market. 3. The third price band is for the middle class customers existing in the market. This price band has a larger share in the market. 4. The forth price band is for the lower end of the market

MONTHLY SALES OF DISTRIBUTOR:

BRAND NAME

India Kings Insignia B&H Classic Navy Cut Gold Flake King Gold Flake Premium Flake Gold Flake Special

MONTHLY SALES Dist.(AS PERCENTAGE OF TOTAL MONTHLY SALES) .28% .013% .155% 3.14% 4.9% 7.13% 62.13% 2.14% 20.12%

COMMENTS:
Gold Flake having a big part of sales of dist. But main point is that Gold Flake Special is getting more than 20% sales part of the dist. Sales with in 2 months

0.28 20.12 2.14

0.03

0.155

3.14 4.9 7.13

INS. B&H IK CL Navy Cut GLK

62.13

Flake

GLPre.
GL Spl.

MONTHLY MARKET SALES:

BRAND NAME India Kings Insignia B&H Classic Navy Cut Gold Flake King Gold Flake Premium Flake Gold Flake Special R&W CAVANDOR FOUR SEQUER R&W KING

MONTHLY SALES(AS PERCENTAGE OF TOTAL MONTHLY SALES) 1.7% .03% .7% 8.7% 5.3% 7.13% 44.7% 1.53% 18.44% 7.8% 1.54% .63% 1.8%

COMMENTS:
Gold flake special getting the 18.44% mkt. share with in 2 months thats very good response for any new launched brand. GPI is holding only around 13% mkt. share and out of which R & W having 7.8% mkt share.

1.54% 0.63%
7.80% 18.44%

1.80% 1.70% 0.03% 0.70% 8.70% 5.30% 7.13%

India Kings Insignia B&H Classic Navy Cut Gold Flake King Gold Flake Premium Flake Gold Flake Special

1.53%

44.70%

CONSUMPTION PREFERENCES CUSTOMER PREFERENCE:

INCOME GROUP ABOVE 50,000/ MONTH Rs. 30,00050,000/ MONTH

COMPOSITION 1.73% 17.16%

BRAND NAME India Kings Insignia B&H Classic Gold Flake King FOUR Square Gold Flake Premium Navy Cut R&W R&W KINGH Gold Flake Special R&W Crown Cavandor Flake

10,000-30,OOO/ MONTH

52.88%

29.31% BELOW 10,000/ MONTH

PERCENTAGE OF PEOPLE 1.7% .03% .7% 8.7% 7.13% .63% 44.7% 5.3% 4.8% 1.8% 18.44% 3.1% 1.54% 1.53%

COMMENTS:
In the 1st and 2nd class ITC is having monopoly in the mkt. no Competitor brand is available in the mkt. 3rd segment is having the most mkt. share and Gold Flake is leading the segment and having most of the mkt. share. R&W as a comp. available in the mkt. 4th segment is having lower middle class income group and Gold Flake Special is the new entry in this section and getting the most of mkt. share . The new launch is going to a very successful brand very soon

GOLD FLAKE SPECIAL:

LAUNCHING DATE PACKING LENGTH SEGMENT MRP PRICE TO WHOLSALLER PRICE TO RETAILLER PER. STC. PRICE

12th JUNE 2012 10 Pic. 64mm SSFT 23Rs. 20.72Rs. 21Rs. 2.5Rs.

EFACT OF GOLD FALKE SPECIAL:

BRAND NAME R&W R&W CROWN CAVANDOR FOURSQAUER GFP

% DECREASE IN SALES 43% 14% 23% 9% 11%

COMMENT :
In the we find out that Gold Flake Special is going well in mkt. and hitting the objectives its getting the mkt. share of the GPI brand R&W, cavandor, Four Square. But the other part of the study give negative findings that Special sells is also effecting the sales of Gold Flake Premuim . Company should take some steps regarding this

11 9 43

R&W R&W CROWN CAVANDOR FOURSQAURE

20

14

GFP

CONCLUSION:

After doing this survey we can find out that ITC is having a big slice share of market. And to get the remaining market share ITC launch Gold Flake Special on 12th june 2012 to get the market share from its main competitor GPI and after the survey its clear that Gold flake Special is going to another hit in the market by ITC . And the result of survey shows that Gold Flake Special brand is going very good in the market and getting its market share very fast . Gold Flake Special is hitting its objective very well . Gold Flake Special is having the pie of main competitor GPI brands market share and hitting very hard their sales its clear from the survey that this brand will rock the ITC sales in SSFT segment and will get its position. But it also effecting the sales of Gold Flake Premuim so company should take some steps regarding this.

ATTACHMENTS
QUESTIONNAIRE FOR CUSTOMERS

A. Below Rs.2000 Occupation:

B. Rs. 2000- 5000

C. Rs. 5000-10000

D. Rs.10000-20000

E. Above Rs.

Have you ever heard the name of the following brands?

Insignia India kings Classic B&H Gold flake king

Navy cut Gold flake Gold flake light Flake Gold flake Special

R&W R &W King Four Square Cavendors

What are the brands that you have tasted?

Insignia India kings Classic B&H Gold flake king

Navy cut Gold flake Gold flake light Flake Gold flake Special

R&W R &W King Four Square Cavendors

Which of the following statements is true? I smoke occasionally

I smoke 1-5 times in a day I smoke 5-10 times in a day I smoke 10-15 times in a day I smoke more than 15 times in a day

I used to smoke the same brand all the time.

a. Agree b.Disagree