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“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 STUDIES


GANDHI 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

aashiravard
annapurna
pillsbury
priya

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

aashiravard
annapurna
pillsbury
priya

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

aashiravard
annapurna
pillsbury
priya

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

aashiravard
annapurna
pills bury
priya

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

<1
1 to 3
>3

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

aashiravard
annapurna
pillsbury
priya

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

<20%
20 to 40%
40 to 60%

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

<7 days
7 to 15 days
15 to 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%

<5%
5% to 10%
10% to 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

sunfeast
m aggi
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

sunfeast
maggi
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

sunfeast
maggi
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

sunfeast
m aggi
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

sunfeast
maggi
top raeman

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

sunfeast
maggi
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

<20%
20 to 40%
40 to 60%

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

<7 days
7 to 15 days
15 to 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%

<5%
5 to 10%
10 to 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

sunfeast
parle
britania

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

sunfeast
parle
britania

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

sunfeast
parle
britania

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

sunfeast
parle
britania

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

<1
1 to 3
>3

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

sunfeast
parle
britania

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

0 - 20
20 - 40
40 - 60
60 - 80

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

<7 days
7 to 15 days
15 to 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%

<5%
5 to 10%
10 to 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

lays
bingo
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

lays
bingo
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

lays
bingo
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

lays
bingo
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

<1
1 to 3
>3

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

lays
bingo
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

<20%
20 to 40%
40 to 60%

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

<7 days
7 to 15 days
15 to 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%

<5%
5 to 10%
10 to 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

EXCELLENT

GOOD

SATISFACTORY

POOR

Fig 5.1
(A) WD BEATS
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

EXCELLENT

GOOD

SATISFACTORY

POOR

Fig - 5.2

(C) SALESMAN SERVICE /COURTESY


(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

EXCELLENT

GOOD

SATISFACTORY

POOR

Fig - 5.3
(D) COMPANY OFFICIALLY VISIT
(a) WEEKLY (b) MONTHLY (c) HALF YEARLY (e) YEARLY

WEEKLY
MONTHLY
HALF YEARLY
YEARLY

Fig - 5.4

(E) RANGE OF PROMOTION ACTIVITIES


(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

EXCELLENT
GOOD
SATISFACTORY
POOR

Fig 5.5
(F) RANGE OF SKU
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

EXCELLENT
GOOD
SATISFACTORY
POOR

Fig - 5.6

(G) BRAND IMAGE


(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

EXCELLENT
GOOD
SATISFACTORY
POOR

Fig - 5.7
(H) CREDIT FACILITIES
(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

EXCELLENT
GOOD
SATISFACTORY
POOR

Fig - 5.8

(I) RELATIONSHIP BUILDING


(a) EXCELLENT (b) GOOD (c) SATISFACTORY (d) POOR

EXCELLENT

GOOD

SATISFACTOR
Y
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