An itc [Type text]

May and June, 2010

A project report on

COMPETITION PAID PRACTICES WITH REFERENCE

TO THE LOYALTY OUTLETS VIJETA STORE

ITC ,PERFECT STORE, INDIA OUTLET ,STAR

AND ITC PERSONAL CARE PRODUCTS
OUTLET

PERFORMANCE AT THESE OUTLET .

Submitted to: Submitted by:

Mr. Aarvind Upadhyay Kaushik banerjee
Area Manager PGDM Sem -2
ITC Limited (Kanpur) IPM (Meerut)

INSTITUTE OF PRODUCTIVITY & MANAGEMENT {MEERUT}

Content

Chapter 1

• Acknowledgement.

• Preface.

• Introduction: FMCG and product characteristics.

• Industry segment.

• Project description.

Chapter 2

• Company profile.

• History, Evolution and overview.

• ITC Mission, Vision and core values.

• Business portfolio.

• Marketing & Pricing strategy.

• ITC working structure.

• Working of a branch.

• GR1, 2, 3 & 4.

• Distribution channel.

• Market share of all FMCG by ITC .

Chapter 3

• Major players.

• Competitor’s analysis.

• Project objective.

• Methodology.

• Brand wise categorization.

Chapter 4

• Data sheet.

• Data analysis.

Chapter 5

• Finding and evaluation.

• SWOT analysis.

• BCG matrix.

Chapter 6

• Suggestions and recommendations.

 • Learning from the project.

• Limitations and bibliography.

ACKNOWLEDGEMENT

Before starting a reach out to the innards of the project work, as a part
of my Appreciativeness-interlaid, I would like to highlight the names of
certain people, who not only lent a helping hand in attaining a plurality
of practical exposure, but bailed me out of hardship as and when I
encountered it.

I would like to thank Mr. Aarvind upadhyay area manager (Kanpur)

ITC Limited, Lucknow for explaining me each and every aspect of
Marketing Research in a lucid and practical way and for giving me the
opportunity to work on this project.

I am also thankful to Mr.Amit srivastava and Mr. Shrijeet paul area

executive (Kanpur) ITC Lucknow and to Mr. Kunal sahu for making
me aware regarding the field and helping me to complete this summer
training project.

I fell highly delighted in mentioning the name of my friends and last but
not the least thanking to my parents for providing me the entire
emotional and-moral backup without support and encouragement of
them this project would have not been completed.

I hope that the project would be a great event to boost the hierarchy of
my academic career.
PREFACE

Research is the feedback, which any organization sought for the purpose
of effective policy making. It is the systematic problem Analysis, model
building and fact finding for the purpose of important decision -making
and control in the marketing of all goods and services.

Every research is aimed to achieve certain solution to research problems

.If there is no problem then, the meaning of the research becomes
vague. The research problem that I was supposed to deal with was,
brand wise comparison of personal care products and their loyalty
schemes given by the companies in Kanpur market. The study was done
on the basis of parameter like price paid for annual the display, service,
and promotional schemes etc. The different comparative companies of
personal care products were Hindustan unilever, P&G, Marico, Dabur
.The sample unit was the retailer of Kanpur.

With a well define research problem, a study was started two ascertain
the variations and conditions of the existing sales of personal care
products.

The overall objective of the study was to analyze the annual display
outlets of the company and judge is it a wrong or a write outlet for
display.
Introduction –FMCG

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

Exports

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

Product characteristics

Products belonging to FMCG sector generally have following

characteristics:
  They are generally used once in a month.

 They are used directly by end users.

 They are non durable.

 They are sold in packaged form.

 They are branded.

Industry Segment

The main segments of FMCG sectors are:

Personal care:

Oral care; Skin care; Personal wash (Soaps); Cosmetics and Toiletries;
Deodorants; Perfumes; Paper products (Tissues, diapers and sanitary);
Shoe care.

Major companies active in this segment are Hindustan unilever, Godrej

soaps, Colgate-Palmolive, Marico, Dabur, Proctor and gamble.

P
e
r
s
o
n
a
l

C
a
r
e

(
I
n
d
i
a
n

v
i
e
w
)

P
e
r
s
o
n
a
l

c
a
r
e

c
a
t
e
g
o
r
y

i
n

I
n
d
i
a

i
s

v
a
l
u
e
d

a
t

R
s

5
4
.
6

b
i
l
l
i
o
n
.

A
n

a
v
e
r
a
g
e

I
n
d
i
a
n

s
p
e
n
d
s

8
%

o
f

h
i
s

i
n
c
o
m
e

o
n

p
e
r
s
o
n
a
l

c
a
r
e

p
r
o
d
u
c
t
s
.

P
e
r
s
o
n
a
l

c
a
r
e
m
a
i
n
l
y

c
o
n
s
i
s
t
s

o
f

H
a
i
r

C
a
r
e
,

S
k
i
n

C
a
r
e
,

O
r
a
l

C
a
r
e
,

P
e
r
s
o
n
a
l

W
a
s
h

(
S
o
a
p
s
)
,

C
o
s
m
e
t
i
c

a
n
d

T
o
i
l
e
t
r
i
e
s
,

F
e
m
i
n
i
n
e

H
y
g
i
e
n
e
.

T
i
l
l

2
0
0
2
-
2
0
0
3
,

P
e
r
s
o
n
a
l

c
a
r
e

p
r
o
d
u
c
t
s
,

e
x
c
e
p
t

t
h
o
s
e

i
n

o
r
a
l

c
a
r
e

c
a
t
e
g
o
r
y
,

w
e
r
e
r
e
g
a
r
d
e
d

a
s

l
u
x
u
r
y

i
t
e
m
s
,

a
n
d

a
t
t
r
a
c
t
e
d

h
i
g
h

e
x
c
i
s
e

d
u
t
y

o
f

1
2
0
%
.

B
u
t

t
h
e

t
a
x
a
t
i
o
n

r
e
f
o
r
m
s

i
n

I
n
d
i
a

a
f
t
e
r

1
9
9
1

h
a
v
e

l
o
w
e
r
e
d

t
h
e

e
x
c
i
s
e

d
u
t
y

r
a
t
e
s

t
h
a
t

m
a
k
e

t
h
e
s
e

p
r
o
d
u
c
t
s
m
o
r
e

a
f
f
o
r
d
a
b
l
e
.

I
t

i
s

d
i
v
i
d
e
d

i
n
t
o

t
w
o

s
e
g
m
e
n
t
s
:

Th
•

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

Growth
With the increase in rural income and improvement in distribution network
(i.e. road development projects), the penetration levels are set to increase.
Since the consumption level in urban areas is already high in most of the
categories, the growth can come only from deeper penetration and higher
consumption in rural areas. In the year 2005-06, the sector witnessed
growth because of the increase in consumer demand from urban and rural
areas. In addition to demand, prices also went up. Also, with the increase in
disposable income, some consumers have moved up in the value chain. The
growth for FMCG products in February 2006 was the highest in 5 years, on
YoY (year over year) basis.
Prospects
The proportion of the consuming class to total households will touch 46% by
FY07 from 17.4% in FY95, estimated by National Council for Applied
Economic Research (NCAER). As the native companies are expanding in
international market, the MNC subsidiaries are looking for greater leverage
of the parent strengths. Also, big MNCs cannot afford to avoid India because
of its potential market
Personal Care Sector in (India)
Increase in per capita income and heightened awareness of personal
appearances; have fuelled the demand for personal care products in
India and today this sector has emerged as one of the fastest growing
markets in the country. Keeping this in mind, we have released an
industry Profile on Personal Care Sector in India. This well researched
document is presented in a series of 105 slides in PDF format, with data
tables, and graphs. This profile has been prepared through extensive
secondary and internet research.

This profile will help in providing basic information about the industry to
foreign companies planning to enter the Indian market or existing
companies (foreign / Indian) expand their business in India, companies
planning to set up manufacturing units and companies strategising to
increase their market share, etc. The profile will also be of value to
consultants, analysts, market research organizations and corporate
advisors.

Profile on Personal Care Sector in India helps to gain an insight into the
evolution of the industry and competitive dynamics prevalent in the
market. It discusses the recent developments in the industry and
analyzes the key trends and issues.
Personal care (Global view)

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

• Rise in consumer spending power,

• Increased demand due to people consciousness,

• Key demographic factors,

• Entry of herbal and organic products,

• Lifestyle and climactic changes, and

• Massive advertising and promotiom strategy

FutureProspects
The future for the personal care products industry is very prosperous,
which can be analyzed by the rising growth trends of the industry. But
there are many concerns related to the chemicals and toxins used as
ingredients for making personal care products. These substances can
affect our health and the environment also. They are absorbed through
our skin and can enter our bloodstream thereby affecting our kidney and
liver, and thus can have very harmful effects on our bodies and when
these products are washed off from the body, they are released in to the
environment.

Many companies are addressing these problems and are shifting their
focus to the natural and organic products. These products are beneficial to
our health as well as environment, because very less quantity of synthetic
compounds and toxic elements are used in these products. In most of the
countries the demand for organic products has been rising steadily.
According to a study conducted by the Natural Personal Care Consumers:
Unlocking Future Potential, the organic products market in UK alone will
rise from USD 18.19 million in 2007 to USD 24.26 million in the year
2011. Organic and natural personal care products industry has profited
much from the growing consumer awareness and their changing lifestyles.
These developments have also helped in introduction of a lot of organic
products in the market. Despite many sectors showing signs of maturation
in the key, developed markets, innovation remains high and while
economic prosperity continues many consumers are proving willing to
make the trade up, signaling a positive future for value sales.

Household care:

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

( dish/utensils cleaners, floor cleaners, toilet cleaners, air fresheners,
insecticides and mosquito repellants, metal polishes and furniture polish).

Major companies active in this segment include Hindustan uni lever, Nirma
and Reckitt & Colman.
Project Description

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

The project will study competition paid practices with reference to the
loyalty outlets Vijeta store, Perfect store, India outlet and Star outlet
and an ITC PCP performance at these outlets. The project duration is of
8 weeks from 20th April to 20th June.

The whole Kanpur area and all the three WD points (B.R Sons, STC and
Shree Traders) areas have been visited for study.
A detailed study and research work will be done by collecting and
analyzing the primary data obtained from PAMS division from various
retail amass.

Company Profile

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

capitalisation of over US $ 22 billion and a turnover of over US $ 5
billion.* ITC is rated among the World's Best Big Companies, Asia's 'Fab
50' and the World's Most Reputable Companies by Forbes magazine,
among India's Most Respected Companies by BusinessWorld and among
India's Most Valuable Companies by Business Today. ITC ranks among
India's `10 Most Valuable (Company) Brands', in a study conducted by
Brand Finance and published by the Economic Times. ITC also ranks
among Asia's 50 best performing companies compiled by Business
Week.

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

Specialty Papers, Packaging, Agri-Business, Packaged Foods &
Confectionery, Information Technology, Branded Apparel, Personal Care,
Stationery, Safety Matches and other FMCG products. While ITC is an
outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining
market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery.

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

perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar
calls this source of inspiration "a commitment beyond the market". In
his own words: "ITC believes that its aspiration to create enduring value
for the nation provides the motive force to sustain growing shareholder
value. ITC practices this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously
contributing to enhancing the competitiveness of the larger value chain
of which it is a part."

ITC's diversified status originates from its corporate strategy aimed at

creating multiple drivers of growth anchored on its time-tested core
competencies: unmatched distribution reach, superior brand-building
capabilities, effective supply chain management and acknowledged
service skills in hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share of these emerging
high-growth markets in India.

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

products. ITC is one of the country's biggest foreign exchange earners
(US $ 3.2 billion in the last decade). The Company's 'e-Choupal'
initiative is enabling Indian agriculture significantly enhance its
competitiveness by empowering Indian farmers through the power of
the Internet. This transformational strategy, which has already become
the subject matter of a case study at Harvard Business School, is
expected to progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech

India Ltd, provides IT services and solutions to leading global customers.
ITC Infotech has carved a niche for itself by addressing customer
challenges through innovative IT solutions.

ITC's production facilities and hotels have won numerous national and
international awards for quality, productivity, safety and environment
management systems. ITC was the first company in India to voluntarily
seek a corporate governance rating.

ITC employs over 26,000 people at more than 60 locations across India.
The Company continuously endeavors to enhance its wealth generating
capabilities in a globalising environment to consistently reward more
than 3,42,000 shareholders, fulfill the aspirations of its stakeholders and
meet societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring
Value. For the nation. For the Shareholder."

History Evolution and Overview

ITC was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited. As the Company's ownership
progressively Indianised, the name of the Company was changed from
Imperial Tobacco Company of India Limited to India Tobacco
Company Limited in 1970 and then to I.T.C. Limited in 1974. In
recognition of the Company's multi-business portfolio encompassing a
wide range of businesses - Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-business,
Foods, Lifestyle Retailing, Education & Stationery and Personal Care -
the full stops in the Company's name were removed effective September
18, 2001. The Company now stands rechristened 'ITC Limited'.

The Company’s beginnings were humble. A leased office on Radha Bazar

Lane, Kolkata, was the centre of the Company's existence. The Company
celebrated its 16th birthday on August 24, 1926, by purchasing the plot
of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road)
Kolkata, for the sum of Rs 310,000. This decision of the Company was
historic in more ways than one. It was to mark the beginning of a long
and eventful journey into India's future. The Company's headquarter
building, 'Virginia House', which came up on that plot of land two years
later, would go on to become one of Kolkata's most venerated
landmarks.

Though the first six decades of the Company's existence were primarily
devoted to the growth and consolidation of the Cigarettes and Leaf
Tobacco businesses, the Seventies witnessed the beginnings of a
corporate transformation that would usher in momentous changes in the
life of the Company.

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

strategic backward integration for ITC's Cigarettes business. It is today
India's most sophisticated packaging house.

In 1975 the Company launched its Hotels business with the acquisition
of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel
Chola'. The objective of ITC's entry into the hotels business was rooted
in the concept of creating value for the nation. ITC chose the hotels
business for its potential to earn high levels of foreign exchange, create
tourism infrastructure and generate large scale direct and indirect
employment. Since then ITC's Hotels business has grown to occupy a
position of leadership, with over 100 owned and managed properties
spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC

Bhadrachalam Paperboards Limited, which today has become the market
leader in India. Bhadrachalam Paperboards amalgamated with the
Company effective March 13, 2002 and became a Division of the
Company, Bhadrachalam Paperboards Division. In November 2002, this
division merged with the Company's Tribeni Tissues Division to form the
Paperboards & Specialty Papers Division. ITC's paperboards' technology,
productivity, quality and manufacturing processes are comparable to the
best in the world. It has also made an immense contribution to the
development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental
protection and community development. In 2004, ITC acquired the
paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to
improve customer service with reduced lead time and a wider product
range.

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

British joint venture. Since inception, its shares have been held by ITC,
British American Tobacco and various independent shareholders in
Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC
Limited and its name was changed to Surya Nepal Private
Limited (Surya Nepal).

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

manufacturing company and a major supplier of tissue paper to the
cigarette industry. The merged entity was named the Tribeni Tissues
Division (TTD). To harness strategic and operational synergies, TTD was
merged with the Bhadrachalam Paperboards Division to form
the Paperboards & Specialty Papers Division in November 2002.

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

the Agri Business Division for export of agri-commodities. The
Division is today one of India's largest exporters. ITC's unique and now
widely acknowledged e-Choupal initiative began in 2000 with soya
farmers in Madhya Pradesh. Now it extends to 10 states covering over 4
million farmers. ITC's first rural mall, christened 'Choupal Saagar' was
inaugurated in August 2004 at Sehore. On the rural retail front, 24
'Choupal Saagars' are now operatonal in the 3 states of Madhya
Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products
business with the launch of Expressions range of greeting cards. A line of
premium range of notebooks under brand “Paperkraft” was launched
in 2002. To augment its offering and to reach a wider student
population, the popular range of notebooks was launched under
brand “Classmate”in 2003. “Classmate” over the years has grown to
become India’s largest notebook brandand has also increased its
portfolio to occupy a greater share of the school bag. Years 2007- 2009
saw the launch of Children Books, Slam Books, Geometry Boxes, Pens
and Pencils under the “Classmate” brand. In 2008, ITC repositioned
the business as the Education and Stationery Products Business and
launched India's first environment friendly premium business
paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse
portfolio in the premium executive stationery and office consumables
segment. Paperkraft entered new categories in the office consumable
segment with the launch of Textliners, Permanent Ink Markers and
White Board Markers in 2009.

ITC also entered the Lifestyle Retailing business with the Wills
Sport range of international quality relaxed wear for men and women in
2000. The Wills Lifestyle chain of exclusive stores later expanded its
range to include Wills Classic formal wear (2002) and Wills Clublife
evening wear (2003). ITC also initiated a foray into the popular
segment with its men's wear brand, John Players, in 2002. In 2006,
Wills Lifestyle became title partner of the country's most premier fashion
event - Wills Lifestyle India Fashion Week - that has gained
recognition from buyers and retailers as the single largest B-2-B
platform for the Fashion Design industry. To mark the occasion, ITC
launched a special 'Celebration Series', taking the event forward to
consumers.

In 2000, ITC spun off its information technology business into a wholly
owned subsidiary,ITC Infotech India Limited, to more aggressively
pursue emerging opportunities in this area. Today ITC Infotech is one of
India’s fastest growing global IT and IT-enabled services companies and
has established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across
key focus verticals - Manufacturing, BFSI (Banking, Financial Services &
Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and Media & Entertainment.

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

successfully blending multiple internal competencies to create a new
driver of business growth. It began in August 2001 with the introduction
of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002,
ITC entered the confectionery and staples segments with the launch of
the brands mint-oand Candyman confectionery
and Aashirvaad atta (wheat flour). 2003 witnessed the introduction
of Sunfeast as the Company entered the biscuits segment. ITC's
entered the fast growing branded snacks category with Bingo! in 2007.
In eight years, the Foods business has grown to a significant size with
over 200 differentiated products under six distinctive brands, with an
enviable distribution reach, a rapidly growing market share and a solid
market standing.

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

competitiveness of the entire value chain found yet another expression
in the Safety Matches initiative. ITC now markets popular safety
matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim
Metro.

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

marked the manifestation of its partnership with the cottage sector.
ITC's popular agarbattis brands include Spriha and Mangaldeep across
a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,
Sambrani and Nagchampa.

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

and bath & body care products for men and women in July
2005. Inizio, the signature range under Essenza Di Wills provides a
comprehensive grooming regimen with distinct lines for men (Inizio
Homme) and women (Inizio Femme). Continuing with its tradition of
bringing world class products to Indian consumers the Company
launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels
and Soaps in September, October and December 2007 respectively. The
Company also launched the 'Superia' range of Soaps and Shampoos in
the mass-market segment at select markets in October 2007 and Vivel
De Wills & Vivel range of soaps in February and Vivel range of
shampoos in June 2008.
Mission, Vision and Core Values
Business Portfolio
Marketing and Pricing Strategy
ITC Working Structure
ITC Working Of a Branch
 BRANCH
MANAGER

ASSITANT MANAGER ASSITANT MANAGER

ASSITANT MANAGER

{GR2} {GR1/3} {GR4}

PAMS FOOD/BINGO
CIGRATTE

AREA MANAGER AREA MANAGER

AREA MANAGER
AREA EXICUTIVE/ AREA EXICUTIVE /
AREA EXICUTIVE/

SALES TRANIEE SALES TRANIEE

SALES TRANIEE

GR 1, 2, 3 and 4.

GR 1 / GR 3 GR 2 GR 4

Food and Bingo PAMS Cigarettes

Biscuits Shampoos Cigerattes

Confectioneries Toilet soap Match box[

Pasta Shower gel -

Salt Agarbatti -

Snacks Dhoops -

Masalas - -

Candy - -

Bingo - -
Atta - -

Distribution Channel

(SUPPLY CHAIN)

FACTORY/HUB

K0 K2

Wholesale service provider

(wsp)
K1

K3

wholesale dealer(wd)

K4

Wholesalers’ (wd) Retail Stockiest (sip)

K0 - factory to market.

K1 – factory to wd.

K2 – factory to wsp.

K3 – wsp to wd.

K4 – wd to market.

Market Share of all FMCG

 • Now ITC do not produce greeting cards.

Major Players
 Among the major players Hindustan unilever has the strong
presence in the food, personal care and the household care (detergents)
sectors; ITC is the market leader in cigarettes; Nirma has a strong
presence in the detergent market; Nestle and Britannia are active in the
food sector and Colgate has a strong presence in the oral care sector.

Competitor’s analysis
Vijeta outlet: These outlets are mainly the whole sale outlets the term
Vijeta is defined by Hindustan unilever as a part of their loyalty scheme.
There are three main categories in this segment:

1) Silver.

2) Gold.

3) Platinum.

*Servicing norms – daily.

Selection criteria

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

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

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

Location of main vijeta stores in Kanpur.

1) Gp lane.

2) Masale wali gali.

3) Nayaganj.

4) Visati bazaar.

*There are 112 vijeta stores in Kanpur.

Super value stores: These are the major retail outlets of Hindustan
unilever these retail outlets contribute a major part in sales of Hindustan
unilever. HUL earlier used to pay 3.5% for the display but these days
they pay a fixed rent on their display and the rent is calculated on
average basis and sales at these outlets.

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

cosmetics.

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

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

Selection criteria

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

2) Location of the store.

3) On footfall.

Location of main super value stores in Kanpur

1) Rakesh Lalbangla.

2) Hazari Naveen market.

3) Kholi Naveen market.

4) Bhatia Shastri nagar.

5) Ramesh Kumar Aryaganj.

*There were earlier 160 svs but now there are only 5 stores.
Perfect stores: This is a new concept brought in by Hindustan unilever
here they are changing their old super value store to a newly called
concept Perfect store. Project ‘perfect stores’ is the world’s biggest
consumer connects initiative in Unilever family to raise falling market
share of the Indian arm. These ``perfect stores’’ are standardized ones
with set plans for fixtures and products and display. HUL’s experience
shows a neat segmented arranging of similar products helps boost sales
30% of a store since 70% of purchase decisions are made on the spot.

Three basic fundamentals of ‘Perfect Store’

1) Visibility.

2) Assortment.

3) Cleanliness.

Selection criteria

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

2) Location of the store.

3) On footfall.

*There are 160 perfect stores in Kanpur.

India outlet: These are the major retail outlets of Procter and Gamble
and these outlets contribute the major part of sales of the company.
These outlets are the class A outlet of the company earlier these outlets
were called Platinum outlets.

There are three main categories in this segment:

1) Mass.

2) Open trade (OT).

3) Wholesale.

Selection criteria

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

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

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

Star store: These outlets are basically the mom and pop stores rural
stores. These outlets are generally located in rural areas and the Procter
and Gamble tries to focus their rural areas from here.

Selection criteria

1) Location of the store.

2) On footfall.
Objective of the Project

All companies are having their own planning and business strategies but
the company who is having the best, is the most successful company
among its competitors. So the company can easily get success among its
competitors by applying best effective marketing strategies.

The main objective of the study is:-

 Competition paid practices with reference to the loyalty outlets

Vijeta store, Perfect store, India outlet and Star outlet.

 To know the impact of retail visibility on customers ultimate

purchase intention.

 Understanding about the function of merchandising system, visual

merchandising and display.

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

right annual display points.

 An ITC PCP performance at these outlets.

Methodology

A research design is the arrangement of condition for collection and

analysis of data in a manner that aims to combine relevance to the
research purpose with economy in procedure. A good design is often
characterized by adjectives like flexible, appropriate, efficient, and
economical and so on. The design appropriate for this research is
DISCRIPTIVE RESEARCH WITH A HELP OF A SCHEDULE.
Descriptive research includes surveys, fact-findings enquiries of different
kinds. The major purpose of this research is description of the state of
affairs, as it exists at present. The main character of this method is that
the researcher has no control over the variables

CLASSIFICATION OF DATA:

I have classified the data into two specific types:

Primary source:

1. Interview.

2. Filling up of schedule.

3. Observation.

4. Verbal communication.
Secondary source:

1. Internet.

2. Magazines.

Sample size:

The sample size for retailers is 200.

Period of study:

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

April 2010 and completed on 20th June 2010.

Field area:

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

 Fiama di wills.

 Vivel di wills.

 Vivel.

 Superia.
Brand wise categorization

Shampoos

Premium segment.

Fiama di Wills (shampoo). Variants

Every day mild.

Aqua balance.

Volume boost.

Silky strong.

Shine in style.

Mid segment.

Vivel di wills (shampoo) ` Variants

Soft and fresh.

 Shine and glow.

Volume and
bounce.

Popular segment.

Superia (shampoo) Variants

Shiny black.

Vibrant green.

Maxi protect.

Shower gels

Fiama di wills (shower gel) Variants

Mild dew.

Exotic dream.

Clear spring.

Soaps

Premium segment.
Fiama di Wills (soaps) Variants

Mild dew.

Clear spring.

Upper mid segment.

Vivel di wills (soaps) Variants

Sheer radiance.

Sheer cream.

Mid segment.

Vivel (soaps) Variants

Young glow.

Sandal sparkle.

Auerveda
essence.

Satin soft.

Popular segment.
Superia (soaps) Variants

Healthy glow.

Fragrant flower.

Natural glow.

Lemon fresh.

Soft sandal.
 Data
Sheet

Data Analysis

Annual display outlets

1) From all 91 annual display outlets we have only 11 low profile outlets
which can be changed or mended.

a) Omkar genral store.

b) Mittal genral strore.

c) Maa pitambar genral store.

d) Deepu sales.

e) Sudhir store.

f) Virendra genral store.

g) Gupta fancy.

h) Sewa prov store.

i) Bhatia prov store.

j) Kishan lal prov store.

k) Priya medical.

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

the floor.

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

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

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

outlets.

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

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

Vijeta stores.

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

2) Availability superia shampoo 515 CFCin 112 Vijeta stores.

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

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

Finding and Evaluation

1) Payment scheme for the annual display outlets is not so attractive to
the retailers in comparison to other major FMCG companies.

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

discount given to them for the display.

3) Displays not at hot spots.

4) No proper tracking on merchandising.

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

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

7) Communication gap between company and sales man.

Ie: Hindustan unilever directly reaches there salesman and educates

them about new offers and schemes but ITC does not do so. ITC only
reaches to (wd) and tells them about schemes and offers and (wd)
manipulates the information and then informs the salesman.

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

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

Strengths

ITC leveraged it traditional businesses to develop new brands for new

segments. For example, ITC used its experience of transporting and
distributing tobacco products to remote and distant parts of India to the
advantage of its FMCG products. ITC master chefs from its hotel chain
are often asked to develop new food concepts for its FMCG business.

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

including cigarettes, hotels, paper, agriculture, packaged foods and
confectionary, branded apparel, personal care, greetings cards,
Information Technology, safety matches, incense sticks and stationery.

Weaknesses

The company's original business was traded in tobacco. ITC stands for
Imperial Tobacco Company of India Limited. It is interesting that a
business that is now so involved in branding continues to use its original
name, despite the negative connection of tobacco with poor health and
premature death.

To fund its cash guzzling FMCG start-up, the company is still dependant
upon its tobacco revenues. Cigarettes account for 47 per cent of the
company's turnover, and that in itself is responsible for 80% of its
profits. So there is an argument that ITC's move into FMCG (Fast Moving
Consumer Goods) is being subsidised by its tobacco operations. Its Gold
Flake tobacco brand is the largest FMCG brand in India - and this single
brand alone hold 70% of the tobacco market.

Opportunities

Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and
others) can be developed using strategies of market development,
product development and marketing penetration.

ITC is moving into new and emerging sectors including Information

Technology, supporting business solutions.

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

using the Internet. This is an original and well thought of initiative that
could be used in other sectors in many other parts of the world. It is also
an ambitious project that has a goal of reaching 10 million farmers in
100,000 villages.

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

tastes of consumers in the North, West and East of India of atta (a
popular type of wheat flour), then used the network to source and create
the raw materials from farmers and then blend them for consumers
under purposeful brand names such as Aashirvaad Select in the
Northern market, Aashirvaad MP Chakki in the Western market and
Aashirvaad in the Eastern market. This concept is tremendously difficult
for competitors to emulate.

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

conglomerate into the country's premier FMCG business.
Per capita consumption of personal care products in India is the lowest
in the world offering an opportunity for ITC's soaps, shampoos and
fragrances under their Wills brand.

Threats

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

The laws of economics dictate that if competitors see that there is a solid
profit to be made in an emerging consumer society that ultimately new
products and services will be made available. Western companies will
see India as an exciting opportunity for themselves to find new market
segments for their own offerings.

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

well. Therefore the dynamic of competition will alter in the medium-
term. Then ITC will need to decide whether being a diversified
conglomerate is the most competitive strategic formation for a secure
future.
BCG Matrix for ITC LTD
Suggestions
 The company can introduce power points on the basis of these
three factors availability, cleanliness, visibility and sales . The
company should give them some gifts on collection of these points
or these points can also be redeemed by the retailers on time to
time basis.

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

retailers instead of giving this offer the company should offer the
retailer a discount of 4%+2%+1% (cash discount).

Ie: 1000 *4%=40

40*2%=.8

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

within 12 days of purchase.

 The company should introduce targets for the retailers and they
can be paid accordingly.

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

the retailers aware about different schemes and offers and they
can also send them greetings on different occasions and festivals.
Learning from the project

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

application.

2. To get the best response the bar tenders retailers and the sales
person should be visited at the time which best suit them.

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

worst thing for a company because customer loses trust in the
company if he do not get what has been promised.

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

how to deal in the market.

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

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

different marketing forgone.

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

the organization.

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

industry.
Limitations

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

appropriate but yet it has some limitation because situation and
environment are not in control. The limitation of my study is:

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

generalization for Kanpur only.

 The study may be infested by the exaggeration of some

respondents.

 It is possible that some potential source might have remained

entrapped.

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

 Sometimes some consumers were busy in personal life so could

not able to give time for interview and hence some of the datas
may not be exact.
  Someone told me I have no time.

Bibliography

BOOKS:

 Marketing Management- Kotler Philip

 Marketing Research -Boyd

 Research Methodology - C.R. Kothari

MAGAZINE:

 Business today

WEBSITES:

 www.google.com

 www.itcportal.com