Summer Internship Program

IBS Hyderabad

ANUKRITI KALTA
09BSHYD0142
HISTORY OF ITC
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 andd then
h to I.T.C. Limited in 1974. In recognition
i i off the
h Company's
multi-business portfolio encompassing a wide range of businesses, the full
stops in the Company's name were removed effective September 18,
2001 The Company now stands rechristened 'ITC Limited'.
2001. Limited'
PORTFOLIO
ITC is one of the leading business conglomerates in India with business
interests
i in
i Cigarettes
Ci & Tobacco,
T b Hotels,
H l Information
I f i Technology,
T h l Packaging,
P k i
Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing,
Education & Stationery and Personal Care.
 ITC FOODS
The Foods business is today represented in 4 categories in the market. These are:

1.Ready
1 Ready To Eat Foods
2.Staples
3.Confectionery
4.Snack
.S ac Foods
oods

The six rapidly gaining market share Brands under ITC Foods are as follows:

1.Kitchens of India
2.Aashirvaad
3.Sunfeast
4.mint-o
i
5.Candyman
6.Bingo!
MARKET AND COMPETITION

Indian Foods market is a monopolistic market.

market There are many competitors in all
the categories and although they all have similar products available at similar
prices, they are trying to prove themselves different through their marketing
strategies.
g However,, entryy to this business is easyy and ITC has utilized this fact
very efficiently to their benefit as they entered into the several categories among
this Foods business.
READY TO EAT SEGMENT

Market Share - Ready To Eat

9%
ITC Ltd.
8%
MTR
48%
Kohinoor

35%
Others(Gits, Priya
Foods etc.)

ITC takes away a high share of 48% in the ready to eat

segment with the main competitors being MTR ,Kohinoor,
Nestle & Others like Gits, Priya Foods etc.
SUNFEAST PASTA
ITC saw potential in the instant food segment and hence decided to enter into
this space with its offering of Ready to eat pasta under the brand name of
SUNFEAST, in the year 2005. This was a first of its kind in the industry. The
product they offered was a healthier and tasty alternative to Maggi noodles,
which at that point of time was the market leader in the ready to eat category.

TARGET POPULATION: working women, students,kids and mothers(as mothers

now a days are looking for an instant and healthy snack option for children).
children)

MAIN INGREDIENT: durum hi

hi-protein
protein wheat

PRICE &PACKAGE: Rs 15 & Rs 18 packs of weight 83gms including a

15gms sauce maker
VARIANTS:
•Masala
•Tomato & Cheese
•Sour & Onion
•Tangy tomato
•Pizza
•Chicken
NUTRITIONAL FACTS ABOUT PASTA

•Every 100gms of pasta provides body 14-15% energy content as is an excellent

source of carbohydrates.

•It is clinically proved that pasta reduces the cholesterol grade in blood.

• Pasta,
Pasta moderately spiced,
spiced can be included in slimming diets

•Pasta is a good source of B vitamins, iron and niacin. It is very low in sodium
and is cholesterol free.
MAJOR PLAYERS

Sunfeast pasta not only faces stiff competition from the instant pasta “ready
ready-to
to
eat” category but also from “to-be-prepared” pasta category.

Ready to eat
Ready-to-eat
Maggi pasta( Nestle)
Knorr pasta

To-be-prepared
Bambino
Imported
PROJECT TITLE

Study of effectiveness of Customer(Retailer &

E d Consumer)
End C ) buying
b i behavior
b h i off Sunfeast
S f
Pasta(ITC Ltd) using extensive primary market
research
h methods.
h d S Subsequently
b l report the
h
findings and recommend for suitable changes
 PROJECT OBJECTIVES
´ Key Performance Indicators(KPIs)

Evaluation of competition and its analysis

- Qualitative
Qua tat ve factors
acto s affecting
a ect g the
t e consumer(retailer)
co su e ( eta e ) buying
buy g behavior
be av o in aspects
such as:
1.) Brand availability
2 ) Demand
2.)
3.) Margin Offered
4.) Quality of service and product
5.)) Display
i l andd other
h promotional
i l schemes
h
Qualitative factors affecting the customer (end consumer) buying behavior in aspects
such as:
1.) Brand and Product Awareness
2.) Consumer perception about the product
3.) Competition
4.) Age, Lifestyle & Employment Status
5.) Promotional activities
6.)) Price and Packaging
g g
7.) Brand Image
8.) Availability
METHODOLOGY
RESEARCH PLAN
Data source: Primary data collection through questionnaires and surveys and
secondary data collection from company websites.
R
Researchh approaches:
h Observational
Ob ti l andd survey researchh
Research instruments: Questionnaires
Sampling plan:
Sampling unit- Retailers and customers in different market types
Sample size- 100 customers and 50 retailers
Sampling
p g Procedure- Random
Contact methods: Personal interview
DATA PROCESSING AND ANALYSIS
´ 1.) Data sheet (MS Excel format)
´ 2.) SWOT Analysis
´ 3.) Regression Analysis using SPSS of
Sunfeast by ITC
Maggi by Nestle
Bambino
O h competitors
Other i
´ 4.) Factor Analysis using SPSS of Sunfeast by ITC
´ 5.) Graphs & Charts Analysis
 SWOT ANALYSIS
STRENGTH: OPPROTUNITIES:
•First of its kind (pioneer) in the ready to •Niche market and hence high potential.
eat pasta category. •Target market can be expanded as consumers taste
•Healthyy option
p and ppreference is
•Distribution network is strong Changing.
•No availability issues in the market •Optimum utilization of the strong distribution
• Strong Brand name network of cigarettes
•Enter rural market as an healthyy and quick
q option
p
of food.
•Brand extension and repositioning in customers
mind as a healthy
food item.

WEAKNESS: THREATS:
•Limited target market •Competitor like “Maggi” which has a good brand
•Less
L awareness in i market
k t name as comparedd tto Sunfeast
S f t
•Less popular in the lower end market. •Small players like bambino which are less
expensive.
•Changing people’s preference from “ready to eat”
t “to
to “t be
b preparedd pasta”.
t ”
•Other ready to eat items like, MTR upma, Maggi
noodles etc as market challengers.
 GRAPHS & CHARTS ANALYSIS

Analysis Of The Retailer Buying behavior of Sunfeast pasta

DETERMINATION OF
THE MARKET
POTENTIAL OF
SUNFEAST PASTA

PARAMETERS THAT PARAMETERS THAT

DETERMINE EXTERNAL DETERMINE
OPPORTUNITIES INTERNAL
OPPORTUNITIES
PARAMETERS THAT DETERMINE EXTERNAL
OPPORTUNITIES

• Packets Purchased/Week
• Brand Purchaser (out of 10 customers)
• Margin offered

PARAMETERS THAT DETERMINE INTERNAL

OPPORTUNITIES

•Brand Availability
•Quality & Service of the Product
•Di l & Promotional
•Display P ti l Schemes
S h
 Sunfeast
Maggi
Bambino
Others

Availability is an important factor that determines the buying

decision of consumer. The pasta purchaser may switch from
buying Maggi pasta to Sunfeast pasta (or vice versa) if availability
off Sunfeast
S f t is i a problem
bl withith the
th retailer
t il which
hi h leads
l d tot loss
l off
sales for the company. Hence, distribution network of the
company and its market penetration strategy within optimum
resources are the two strong parameters which a company should
take utmost care of.
 DEMAND OF PASTA IN
THE MARKET:

Nestle launched Maggi pasta in November, 2009 and in a short span of

time it has become a major challenger for Sunfeast pasta. Also it is
seen that though Bambino and Imported pasta are not direct
competitors of Sunfeast but its market share gets affected by them. As
can be observed from the analysis that the demand of bambino is
slightly
g y less than the demand of the Sunfeast pasta
p therebyy actingg as a
threat for Sunfeast pasta.
 QUALITY OF SERVICE
AND PRODUCT OFFERED
OF PASTA IN THE
MARKET:

Quality of the service offered by the company and the product is one
important factor on which the retailer buying decision depends. If the
company-retailer
p y relationship
p is strongg the probability
p y of market ppotential
of the product remains high and vice versa. Though the impact of this
factor is less on the buying decision but it stands a vital parameter and
must be taken into consideration.
 Analysis Of The End Consumer Buying behavior of Sunfeast pasta

FOLLOWING FACTORS ATTRIBUTE TO CUSTOMER

BUYING DECISIONS:

BRAND AWARENESS & PRODUCT AWARENESS

COMPETITION
CUSTOMER PERCEPTION ABOUT PATSA
PROMOTIONAL ACTIVITIES
PRICING & PACKAGING
AVAILABILITY
 CONSUMER PERCEPTION ABOUT THE PRODUCT

Consumer perception about the

ingredient of sunfeast pasta
Atta Maida Suji

19% 15%

66%

Consumer perception about the brand & product plays a vital role in
interpreting their buying behavior. As is observed 66% of the sample
consumers think ‘Maida’
Maida to be the ingredient of Sunfeast pasta which positions
the product as an unhealthy food item and hence affects the sales. Therefore
positioning itself as a healthy product should be the focus of the company
 Consumer choose to have Sunfeast pasta
because:
it is easy to cook it is a healthy option it tastes good

26%

14% 60%

60% of sample population choose to have Sunfeast pasta because it is an easy and
a convenient food option. 14% opts for a “healthy option” clearly indicating that
very few customers purchase pasta solely because it is a healthy snack
item,, instead customers believes more in its ggood taste and not its nutrient value.
 Favorite brand?
bambino sunfeast maggi
gg others

23%
29%

18%

30%

It was observed that even though Maggi pasta has created a strong consumer base
for itself in this newly entered instant food segment, it was unable to break the
strong brand loyalty Sunfeast won over the past few years. But Maggi has still
managed to give Sunfeast a stiff competition. 29% of the chart space is occupied
b B
by Bambino
bi indicating
i di ti that
th t the
th market
k t share
h off Sunfeast
S f t is i nott threatened
th t d alonel
by Maggi but also by To-be-Prepared segment, domestic and imported.
COMPARITIVE ANALYSIS OF THE THREE BRANDS
ON THE BASIS OF CERTAIN PRODUCT PARAMETERS

SCORE
Parameter SUNFEAST MAGGI BAMBINO

Brand image 1.5 1.44 1.83

Packaging 1.42 1.53 1.88

Value For Money 1.72 1.65 1.76

Quantity Provided 1.75 1.68 1.72

Taste 1.82 1.52 1.79

Quality 1.62 1.63 1.82

Satisfaction 1.86 1.64 1.83

Availability 1.51 1.52 1.86

1=“GOOD”
2=“AVERAGE”
3=“BAD”
COMPARITIVE ANALYSIS OF SUNFEAST PASTA ON
THE BASIS OF EMPLOYMENT STATUS OF CUSTOMER

•How many times have you tasted Pasta?

100%
80%
Axis Title

60%
40%
20%
0%
quite often rarely never
Student 43% 45% 12%
Working 53% 37% 10%
Homemaker 86% 7% 7%

The table indicates that the

biggest buyer group of pasta
are the
HOMEMAKERS, owing to
the fact hat they are the
OPINION LEADERS of the
family.
 •What do you prefer the most?
80% 67% 62%
Axis Title

60% 37%
40% 30% 33%
15% 20% 23%
20% 13%
A

0%
pasta cooked at pasta at
ready to eat
home restaurants
Student 15% 23% 62%
Working 30% 33% 37%
Homemaker 20% 67% 13%

Out of the few customer who

choose Ready
Ready-to-eat
to eat pasta over
others, maximum no. is from the
working status. This Clearly points
out that the instant cook option is
the prior feature that governs their
purchase decision.
 REGRESSION ANALYSIS USING SPSS
OBSERVATIONS
´ Sunfeast Pasta
Equation of regression line is(un standardized)
-.5 Quality -.356 Offers - .002 Brands + 3.731(constant) = Packs purchase for
sunfeast
f t
Negative correlation with all the variables
- R square of the regression model(sunfeast) is .031
´ Maggi Pasta
Equation of regression line is(un standardized)
.430
430 Q
Quality
lit +.076Offers
+ 076Off +.616
+ 616 Brands
B d + .251(constant)
251( P k purchase
t t) = Packs h ffor
Maggi
Positive correlation with all the variables
R square of the regression model (maggi) is .559
559
´ Bambino Pasta
Equation of regression line is(un standardized)
.146 Quality +.302Offers +.367 Brands + .024(constant) = Packs purchase for
bambino
Negative correlation with all the variables
R square of the regression model(bambino) is .529

´ Others(Imported)
Equation of regression line is(un standardized)
-.355Quality
355Q li +.128Offers
128Off +1.289
1 289 B
Brands
d + .002(constant)
002( )=P k purchase
Packs h ffor
bambino
Negative correlation with all the variables
R square of the regression model(bambino) is .634
 FACTOR ANALYSIS USING SPSS
Factor Analysis is a correlation technique to determine meaningful clusters
of shared variance. It begins with large number of variable and then tries to
reduce the interrelationship amongst the variables and reduces them to a few
number of factor or cluster.

Null Hypothesis: H0: Correlation does not exist.

Alternate Hypothesis: H1: Correlation exists.

“DESCRIPTIVE STATISTICS” of the attributes and the number of

respondents for each of the attributes.
KMO & BARTLETT’s TEST PREDICTING “SAMPLING
ADEQUECY”
Q
Value: 0.824 indicating high correlation amongst variables and hence
rejecting the Null Hypothesis.

CORRELATION MATRIX:
Rotated component matrix is the orthogonally rotated component matrix
indicating the no of mutually exclusive factors that exists which is inclusive
of four correlated factors each.
 INTERPRETATION OF THE ANALYSIS
It can be concluded from the analysis that the two main factors on which the
perception and hence the buying behavior of the consumer depends are as
follows.
Packaging Taste
1.)) 2.))

VALUES VALUES
Brand DELIVERED Quality Quantity
Q i PERCEIVED Value
V l for
f
Image BY THE provided BY THE money
COMPANY CONSUMERS

Availability Satisfaction
THANK
YOU