EXECUTIVE SUMMARY OF THE PROJECT: The project is titled as competitors analysis, as per the topic the project is analyzing

between two competitor brands. The competitor for ITC Mangaldeep is Cycle 3 in 1.In Agarbathi market: Market leader : Cycle 3 in 1 Market challenger : Mangaldeep 5 in 1

Cycle 3 in 1 is the main competitor of Mangaldeep, the sales is almost in the ratio of 3:1 between cycle and Mangaldeep .Today cycle is the market leader and is in the top of mind of the people because they were in this field for long time and the brand is very old, everyone are aware about cycle brand .Mangaldeep is the market challenger, the project mainly focus on what has to be done to become a market leader, what is the expectation from an agarbathi , why do users of agarbathi prefer Cycle, what is their feedback about Mangaldeep .How can we improve the sales of Mangaldeep? , what can be done to make it a market leader? A field study was done about the Agarbathi market to know the market better and to analyse the no of brands existing in this field ,how much sales are made .after the study of the market ,the research techniques to be applied and the field work is to be done followed by the analysis of the data obtained in the due course of time and then a presentation to be made about the field visit, what were research and findings out the research, and also to give some suggestions and recommendations to the company and which will help them to develop the brand in a better way. The field study was done in two main cities in Tamilnadu with a sample size of 600: PLACE SAMPLE SIZE

CHENNAI COIMBATORE

300 300

TABLE OF CONTENTS
Page

ACKNOWLEDGEMENT.........................................2 EXECUTIVE SUMMARY.. 3 LIST OF TABLES . 6 LIST OF FIGURES............. 7 ABBREVATIONS ............. 8

CHAPTER 1
1.1 1.1.1 1.2 1.3 1.4

ITC LTD

Company Profile8 ITCS corporate Stratigies... 10 History of ITC LTD......11 About Mangaldeep15 Mission & Vision...16

CHAPTER 2 2.1 2.2 2.3 2.3.1 2.4 2.5 2.6 2.7 2.8

COMPETITORS ANALYSIS

Introduction ..... 17 Competitor Array.. 19 Competitors profiling....21 Media Scanning . .23 New Competitors..............24 About Cycle ..... 27 About Nandhi ... 28 About Onam......28 About Sona Chandi.31

CHAPTER 3
3.1 3.2 3.4 Background of the Problem .. 32 Objectives33 Limitations .... .33

CHAPTER 4
4.1 4.2 Research Process 34 Research Design 35

4.2.1 Research Methods .. 36 4.2.2 Secondary Data ............38 4.2.3 Sampling Technique 45

CHAPTER 5

METHODOLOGY
47 48 48

5.1 Areas under Coverage . 5.2 Observations 5.3 Hypothesis

CHAPTER 6
6.1

FINDINGS

Results of the survey..50

6.1.1 Reasons behind shifting of brands..53 6.1.2 Reasons behind not using Mangaldeep ... 53 6.1.3. Statistics about Chennai .... 54 6.1.4 Statistics about Coimbatore ....54

6.1.5 Fragrance of Mangaldeep vs. Cycle.....................................................................55

CHAPTER 7

ANALYSIS OF SPSS

7.1 Regression between age & purchase made56 7.2 Sticks per use 57 7.3 Usage per day58 7.4 Awareness of Mangaldeep.59 7.5 Awareness of ITC...60 7.6 Awareness of cycle.61 7.7 Awareness of schemes62 7.8 Fragrance of mangaldeep63 7.9 Summary 64

CHAPTER 8 CHAPTER 9
9.1 9.2

RECOMMENDATIONS &SUGESSTIONS65

APPENDICE .66 REFERENCES .73

9.3 CURICULAM VITAE78

CHAPTER 1 1.1 Company Profile

ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 15 billion and a turnover of over US $ 4.65 billion. Rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today, ITC ranks third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, 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 and Greeting Cards. 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 practises 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 $ 2.4 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 21,000 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 4, 80,000 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." As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company has commenced marketing agarbattis (incense sticks) sourced from small-scale and cottage units. This business leverages the core strengths of ITC in nation-

wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality agarbattis.

1.1.1 ITCS CORPORATE STRATIGIES: ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC are various businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

1.2 HISTORY OF ITC:

ITC 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 Division, 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 75 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 International Business Division (IBD) 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 9 states covering over 3.5 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. The year 2006 witnessed the ramping up of the Company's rural retailing network with 17 'Choupal Saagars' being operational in three states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC's Packaging & Printing business 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 December 2005, ITC introduced Essenza Di Wills, an exclusive line of prestige fragrance products, to select 'Wills Lifestyle' stores. 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.

10

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. In a short span of 5 years, ITC Infotech has already crossed over US$ 60 million in revenues. It also has a joint venture with ClientLogic, a top five global Business Process Outsourcing (BPO) provider. 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 150 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, VaxLit, Delite and Aim. 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.

11

1.3 ABOUT MANGALDEEP:

ITC has launched Mangaldeep Agarbattis across a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra. Recently, a new fragrance Yantra has been launched which evokes the ambience of a temple. Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice of fragrances in a single pack. Mangaldeep is appropriately priced to appeal to a cross-section of consumers at various price segments. These agarbattis are available in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of packaging which retains the fragrance for a longer period and helps in "Completing the Purity of Prayer". The 'Mangaldeep' brand is fast emerging as the only national brand in an industry dominated by multiple local brands. Mangaldeep is also being exported to United States of America, United Arab Emirates, Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and strengths in trade marketing and distribution. Six of ITC's small scale manufacturers are the first in the country to receive the ISO 9000-2001certification for agarbatti making. ITC has also entered into an MOU with the Khadi & Village Industries Commission (KVIC) to source agarbattis from KVIC approved units, and to distribute agarbattis through the Khadi Bhavan / Khadi Bhandar outlets across the country. This collaborative

12

venture is expected to result in employment generation, particularly in the semi-urban and rural areas.

ITC is also supporting an 'Agarbatti Community Participation Programme' run by the Vyakti Vikas Kendra, a non-profit organisation founded by the renowned spiritual guru Sri Sri Ravishankar and located near Bengaluru. Over 100 village women are gaining from the training that this organisation imparts in rolling agarbattis. ITC is also beginning to extend similar support to other NGOs in states like Bihar, Tripura and Tamil Nadu, who are also setting up agarbatti units, training village women in rolling agarbattis and employing these women in these units.

1.4 MISSION & VISION: Vision Sustain ITCs position as Indias most valuable corporations through world class performance, creating growing value for Indian economy and companys stake holders Mission To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

13

Chapter 2

COMPETITORS ANALYSIS:

2.1 INTRODUCTION:
Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential competitors. Competitors Analysis Some businesses think it is best to get on with their own plans and ignore the competition. Others become obsessed with tracking the actions of competitors (often using underhand or illegal methods). Many businesses are happy simply to track the competition, copying their moves and reacting to changes. Competitor analysis has several important roles in strategic planning: To help management understand their competitive advantages/disadvantages relative to competitors To generate understanding of competitors past, present (and most importantly) future strategies To provide an informed basis to develop strategies to achieve competitive advantage in the future To help forecast the returns that may be made from future investments (e.g. how will competitors respond to a new product or pricing strategy? Questions to ask What questions should be asked when undertaking competitor analysis? The following is a useful list to bear in mind: Who are our competitors? (see the section on identifying competitors further below) What threats do they pose? What is the profile of our competitors?

14

 What are the objectives of our competitors? What strategies are our competitors pursuing and how successful are these strategies? What are the strengths and weaknesses of our competitors? How are our competitors likely to respond to any changes to the way we do business? The sources of competitor information can be neatly grouped into three categories: Recorded data: this is easily available in published form either internally or externally. Good examples include competitor annual reports and product brochures; Observable data: this has to be actively sought and often assembled from several sources. A good example is competitor pricing; Opportunistic data: to get hold of this kind of data requires a lot of planning and organisation. Much of it is anecdotal, coming from discussions with suppliers, customers and, perhaps, previous management of competitors. 12 Points for Doing Competitive Analysis Be a customer Find out as much as you can about the people who run competing businesses Buy stock in your competitors Talk to your competitors' customers. Use the Internet. Check public filings. Get to know local librarians. Attend industry conferences and trade shows Assess the competition's goals. Be aware of the potential for new competition. Don't delegate the job of keeping up with competitors Define the competitive landscape broadly.

Some of the components are:

Competitor array 15

Competitor profiling Media scanning New competitors

2.2 COMPETITOR ARRAY:

One common and useful technique is constructing a competitor array. The steps include:

define your industry - scope and nature of the industry determine who your competitors are determine who your customers are and what benefits they expect determine what the key success factors are in your industry rank the key success factors by giving each one a weighting - The sum of all the weightings must add up to one. rate each competitor on each of the key success factors - this can best be displayed on a two dimensional matrix - competitors along the top and key success factors down the side.

multiply each cell in the matrix by the factor weighting. sum columns for a weighted assessment of the overall strength of each competitor relative to each other. An example of a competitor array follows:
Competitor # 1 rating 6 4 3 Competitor #1 weighted 2.4 1.2 .6 Competitor #2 rating 3 5 3 Competitor #2 weighted 1.2 1.5 .6

Key Industry Success Factors 1 - Extensive distribution 2 - Customer focus 3 - Economies of scale 4 - Product innovation Totals

Weighting

.4 .3 .2

.1 1.0

6 20

.6 4.9

4 18

.4 3.6

16

Based on material presented in "Beat the Competition: How to Use Competitive Intelligence to Develop Winning Business Strategies", Ian Gordon, Basil Blackwell Publishers, Oxford, UK, 1989. In this example competitor #1 is rated higher than competitor #2 on product innovation ability (6 out of 10, compared to 4 out of 10) and distribution networks (6 out of 10), but competitor #2 is rated higher on customer focus (5 out of 10). Overall, competitor #1 is rated slightly higher than competitor #2 (20 out of 40 compared to 18 out of 40). When the success factors are weighted according to their importance, competitor #1 gets a far better rating (4.9 compared to 3.6). Two additional columns can be added. In one column you can rate your own company on each of the key success factors (try to be objective and honest). In another column you can list benchmarks. They are the ideal standards of comparisons on each of the factors. They reflect the workings of a company using all the industry's best practices.

Guidelines for Doing a Competitive Analysis The competitive analysis section can follow a format that is shown below. In practice we recomend this section be a single-spaced, two-column report that is limited to a single sheet of paper (both sides used). Consequently, font size is generally 10 point or less. This report would be made for each of the major competitors. While most of this report focuses on the overall analysis of the competitor, you should recognize that you are primarily interested in how this information may impact your company and, specifically, a product or product line. Thus, you should make sure, where possible, to focus your information on how it impacts the markets in which your product competes. Note each sub-section within a section will contain 1-5 sentences that explain the subsection.

17

General Company Information - includes name, location (headquarters, other locations of importance), website address Summary of Business includes sections that summarize the company, business units and nature of business Business Overview includes sections on history, ownership structure, types of businesses, mission, strategy/objectives, key executives Recent News/Developments important company developments within last 6-12 months (e.g., reports from news sources, press releases, financial statements) Financial and Market Share Analysis includes sections on corporate performance, trends, market share for product Marketing includes sections on products and services offered, target markets, positioning, customers/users, pricing model, promotional efforts, sales force, and distribution

Other Issues includes sections on technology capability, partnership arrangements, intangible issues Competitors list key competitors facing this company SWOT strengths, weaknesses, opportunities and threats

2.3 COMPETITOR PROFILING:

Another common technique is to create detailed profiles on each of your major competitors. These profiles give an in-depth description of the competitor's background, finances, products, markets, facilities, personnel, and strategies. This involves:

Background
o o o

location of offices, plants, and online presences history - key personalities, dates, events, and trends ownership, corporate governance, and organizational structure P-E ratios, dividend policy, and profitability** various financial ratios, liquidity, and cash flow Profit growth profile; method of growth (organic or acquisitive) 18

Financials
o

Products
o

products offered, depth and breadth of product line, and product portfolio balance new products developed, new product success rate, and R&D strengths brands, strength of brand portfolio, brand loyalty and brand awareness patents and licenses quality control conformance reverse engineering segments served, market shares, customer base, growth rate, and customer loyalty promotional mix, promotional budgets, advertising themes, ad agency used, sales force success rate, online promotional strategy distribution channels used (direct & indirect), exclusivity agreements, alliances, and geographical coverage pricing, discounts, and allowances

o o o o o

Marketing
o

Facilities
o

plant capacity, capacity utilization rate, age of plant, plant efficiency, capital investment location, shipping logistics, and product mix by plant number of employees, key employees, and skill sets strength of management, and management style compensation, benefits, and employee morale & retention rates objectives, mission statement, growth plans, acquisitions, and divestitures marketing strategies

Personnel
o o o

Corporate and marketing strategies

o o

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2.3.1 MEDIA SCANNING:

We can learn a lot about the competitive environment by scanning our competitors' ads. Changes in a competitor's advertising message can reveal new product offerings, new production processes, a new branding strategy, a new positioning strategy, a new segmentation strategy, line extensions and contractions, problems with previous positions, insights from recent marketing or product research, a new strategic direction, a new source of sustainable competitive advantage, or value migrations within the industry. It might also indicate a new pricing strategy such as penetration, price discrimination, price skimming, product bundling, joint product pricing, discounts, or loss leaders. It may also indicate a new promotion strategy such as push, pull, balanced, short term sales generation, long term image creation, informational, comparative, affective, reminder, new creative objectives, new unique selling proposition, new creative concepts, appeals, tone, and themes, or a new advertising agency. It might also indicate a new distribution strategy, new distribution partners, more extensive distribution, more intensive distribution, a change in geographical focus, or exclusive distribution. Little of this intelligence is definitive: additional information is needed before conclusions should be drawn. A competitor's media strategy reveals budget allocation, segmentation and targeting strategy, and selectivity and focus. From a tactical perspective, it can also be used to help a manager implement his/her own media plan. By knowing the competitor's media buy, media selection, frequency, reach, continuity, schedules, and flights, the manager can arrange his/her own media plan so that they do not coincide. Other sources of corporate intelligence include trade shows, patent filings, mutual customers, annual reports, and trade associations. Some firms hire competitor intelligence professionals to obtain this information.

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2.4 NEW COMPETITORS: In addition to analyzing current competitors, it is necessary to estimate future competitive threats. The most common sources of new competitors are:

Companies competing in a related product/market Companies using related technologies Companies already targeting your prime market segment but with unrelated products Companies from other geographical areas and with similar products New start-up companies organized by former employees and/or managers of existing companies

The entrance of new competitors is likely when:

There are high profit margins in the industry There is unmet demand (insufficient supply) in the industry There are no major barriers to entry There is future growth potential Competitive rivalry is not intense Gaining a competitive advantage over existing firms is feasible

21

Products of Competitors: Products

Nag Champa, Natural, Ajaro, Aastha, Geet Govind, Super Hit, Black ,Blossom, Royal, Masala Chandan, Sai Ram, Rajdhani, Neelkant, Siddhi, Vinayak, Satya Fresh Rose, Satya Super Sandal, Tufan, Ritugandha, Parijhatak and many more. Panchavati 4 in 1, Shivam Dhoop Bathi, Himalaya, Dil Mini Pouch, Bharat Industrial Panchavati Flora, Sai Baba 2 in 1, Panchavati Dhoop Double Size, Corporation Panchavati Dhoop Small, Panchavati Dasang Dhoop, Sandal Dhoops Ranga Rao & Sons Cycle 3x1, Rhythms, Sandalum, N.R., Woods Chandan, Lyrics, Spiritual Guide, Gulistan, Brindavan Sandal, Juhi, Padmini Products Padmini Incense, Pakeezah, Padmini Dhoop. Parimal Mandir Bharat Vasi, Moments, Rainbow 7x1 Aravinda Parimal Sugandha Sringar, Sugandha Sringar Gold Works N. K. Subaiah Setty Sugandha Kokila & Sons Sri Balakrishna Danka Sugandh, Danka Sugandh Gold Perfumery Works Baikery Industries Shivaranjani Gajanana Vaishnavi Flora, Mangaladevi, Harileela, Chafa Flora Perfumery Works Akash Phool, Swarna Champa, Swarna Mallika, Swarna Gulab, Swarna Moksh Agarbathi Chandan, Swarna Night Queen, Swarna Mogra, Swarna Sugandha 4in1, Co. Swarna Kasturi, Swarna, Divya Sugandh Mysore Temple Bell Devika Flora, Vidarbha, Ashwamegha, Navaratna, Sublakshmi, Hawan Agarbathi Works Laxmi Gayatri Hirva Chaffa, Gajra, Radhe Radhe, Sanskar, Gulab Sugandhalaya Prabhu Darshan, Krishna Leela, Ganesh Flora, Mangalam, Bhagwat, Nikhil Products Ananda, Jai Jaganath Pouch Elite Agarbathi Panadi, Wonderwood, Prabhu Pooja, Toofan, Sandal Works Amber Aromatics Super Mogra, Super Sandal, Amber Flora, Ratnamala Asoka Trading Bharat Darshan Adarsh Aromatics Master Gold B. V. Aswathiah & Nandi Mist, Joy, Madhu Mallika, Nandi Flora, Sandal, Rose Bros. Aparanji Industries Sugandha Swarna, Sugandha Gold. Tejas Incense Co. Sri Sai Flora Ambica Chemical Ambica Heaven Products Vasu Agarbathies Heritage Hem Corporation Precious Chandan Rajalakshmi Phoshak Perfumery Works Shrinivas Sugandhalaya

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Balaji Agarbathi Co. Shubha Mangla Industries Jayant Agarbathi Co.

Balaji 100, Om Sree Sai, Chandanam, Agarwood, Nad Al Oodh, Golden Flora Shubha Mangla Chandan, Heena Rolex Rose, Rolex, Maratha Peshwa

Pradhan Perfumers Royal Life Omkar Parimal Works Orkay Fragrances Ashok Agarbathi Works Mysore Y.S. Agarbathi Works Supreme, Shiva Brinda Mogra, Chandan, Panadi, Parijatha Delite, Kewda, Parijatha

Chamundeshwari Computer Sambrani Dhoop, Chamundeshwari Sandal Vedavyasa Parimal Dhoop, Three Saints Dhoop, Chamundeshwari Maha Maruthi Dasangam, Works Sandal & Rose Dhoop, Chamundeshwari Sandal Powder, Chamundeshwari Kum Kum, Chamundeshwari Cones. Anupam Industries Mangal Murti Rose, Gugal, Loban, Dasangam & Chandan Dhoop Sticks Vasant Products Alpine Fragrance Ratilal & Co. Gokul Sri Raghavendra Soapnut Works Kesar Special & Akshar Dham Dhoop Sticks Jagat Jyothi Camphor G. F. Camphor Sandal Powder Rose Benzoin, Singapore Shibolga Loban Powder, Crystal Dhoop

Arochem Industries Roll On Sukhad, Champa, Attar Phool, Millennium Health Products Fragrance India Rose Water Om Shanti Om, Rambakth Hanuman, Maha Shivaratri, Divine, Fragrance, Divine Sandal, Hare Krishna

2.5 ABOUT CYCLE:

23

Cycle brand is owned by Bangalore based N Rangarao and sons. NRS were pioneers in branding this difficult market and Cycle brand is one of the largest agarbatti brand in India which have a market share of 8%.

Cycle brand was launched in 1948. In this commodity market, Cycle was positioned as a premium agarbatti brand. The brand was trying to differentiate by good packaging, marketing campaigns and quality. Cycle 3-in -one is the most popular which have three different fragrance sets of agarbattis in one pack.

Cycle brand has established itself in the market with some good marketing campaigns with emphasis on quality and fragrance. The Rs 130-crore NRRS which also manufactures the Lia, Rhythm, Flute and Natures Gift brands is one of the few organized players in an industry with almost no big names. However, in the recent past, the domestic agarbatti market which has grown at a CAGR of around 15% over the last five years, and is expected to grow at roughly the same rate over the next five has seen a fair bit of action, with the likes of Hindustan Lever-SC Johnson (Glade), Reckitt Benckiser (Haze) and ITC (Mangaldeep) entering the market.

2.6 ABOUT NANDHI:

24

M/s B.V Aswathaiah & Bros, a legend in the agarbathi venture is a 60 year old tradition of fragrance and faith. Our Products of excellence: Deluxe Sandal, Nandi Diamond, Deluxe Rose, Nandi Joy, Nandi Mist and a host of others are cratered with care to reverberate tranquility and joy amongst our committed clientele who return to us year after year. Research has proved that pleasant odors do make a person more active. It also causes the cells to trigger signals and stimulate various physiological responses. One of the most important things about incense is that reduces stress. Nature has gifted the sense of smell to identify the most pleasant odors. Your choice will be the best and our desire is to make sure you will have it.

2.7 ABOUT ONAM

Profile Endowed with the understanding of the subtle nuances of agarbathi making and inspired by the secular feature of manufacture and export of incense sticks, cones, dhoops with various types of fragrances like: floral, fruity, spice etc. Onam is a master of creativity and innovation. With a humble beginning in 1962 with just one brand ONAM, we have become a leading manufacturer and exporter with various categories of product range. Our relentless service and high level of consistency in terms of our products quality have helped us to bag many achievements. Today, our brand reaches to every nook and corner of India and many parts of the world.

Products We are leading manufacturer and exporter of incense sticks, cones, dhoops and pooja items that includes:

25

Incense Sticks Incense Cones Dhoop Stems Dhoop Sticks Hawan Samagri Kum Kum Vibhuti Sandal Guggul Loban

Our Incense Sticks are available in various fragrances like:

Champa Boquet Jasmine Intimate Lavender Loban Lilly Oodh Lotus Sandal Rose Lilly of Valley Tuberose Floral Honeysuckle Kewra Peach Patchouli Frankincense 26

Cinnamon

Banana Product Category:

Hexagonal Square Flat Box (pouch) 12" Long Box 16" Long Box Gift package Drawer Sachets Perfumed Cones Perfumed Dhoop Stems

Members

Federation of Karnataka Chambers of Commence & Industry, Bangalore Karnataka Small Scale Industries Association, Bangalore. All India Agarbathi Manufacturers Association, Bangalore. The Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council, Mumbai. India Trade Promotion Organization, New Delhi.

27

2.8 ABOUT SONA CHANDI: Shankar Perfumery Works started its operations in the year 1963, in Bangalore India. Manufacturers & exporters of agarbatti, incense sticks, from 1963. Our incense sticks, agarbatti brands like Sona Chandi agarbatti, Kumbha agarbatti Black Diamond incense sticks, Mangala theepam flora agarbatti & Cinnamon Masala incense sticks are well known internationally.

Shankar Perfumery Works made an beginning in the year 1963, in Bangalore India. The founder Shri K.R. Sathyanarayana Setty, laboured to make this unit into one of the major manufactures of "Masala" perfumed and "Scented" Agarbathies. Shankar Perfumery Works started into the production of Darbar bathi / Flora agarbattis 100 kgs. A day and it was sold only to hand full of customers at Kolkatta market, gradually sons of K.R.Sathyanarayana Setty, K.S. Shankar, K.S. Ramanath & K.S. Shiva prasad joined the business thereby strengthening the hands of K.R. Sathayanarayana Setty. Today the production of Shankar Perfumery Works is above 2500 tons per year. Till 1983 Shankar Perfumery Works was manufacturing only Darbar Indian traditional agarbatti and masala flora batties with the limited market. Shankar Perfumery Works made a beginning with the brand "Satyam" in scented and "Kumbha" in Halmaddi / flora agarbathies and followed by many other successful brands. Today shankar perfumery works products like Sona Chandi agarbathi, Kumbha flora agarbathi, Black Diamond Indian incense sticks, Mangala theepam flora agarbatti & Cinnamon Masala / flora bathies, are very well know in international markets.Company has catering these products to the international market for the passed 2 decades.Since last decade company is striving to globalise their products 100%. As on today 35% company share is with overseas markets only.

28

Today, they have more than 40 years of experience manufacturing Indian incense sticks of flora / masala / sented / perfumed incense sticks, we are pioneers in high class flora agarbathis, and we have our own R&D unit all the process of our products takes in house only. They exporters of our Indian incense sticks to more than 23 countries across the globe. We are catering more than 150 flavours, today, with a strong staff of 200 plus people.

CHAPTER 3
3.1 BACK GROUND OF THE PROBLEM: To bring Mangaldeep as a Market Leader, the sales have to be increased drastically, but there are certain problems that have to be faced, since the product is Agarbathi such problems exist they are: People lack brand loyalty when they purchase Agarbathi Buy whichever is available Lack of awareness about Mangaldeep Buy whenever schemes are introduced Shifting from Mangaldeep to Cycle or to other brands Shifting from cycle or other brands to Mangaldeep

3.2 MAIN OBJECTIVE: TO MAKE ITC MANGALDEEP A MARKET LEADER

29

Objectives: What are the expectations of the consumers from our product Mangaldeep? In what way is cycle (3 in 1) better than Mangaldeep? Reasons behind the consumers choosing cycle 3 in 1 than Mangaldeep 5 in 1 Reasons behind consumers shifting from Mangaldeep 5 in 1 to cycle 3 in 1 Reasons behind consumers choosing Mangaldeep 5 in 1 for cycle 3 in 1 and also the to know why they have shifted from cycle 3 in 1 to Mangaldeep 5 in 1 To know what impact the consumers have on Mangaldeep 5 in 1, have reached the consumers effectively, how do they place the product?

3.3 LIMITATIONS OF THE PROJECT: The market research has its own limitations, the field study is done in specific areas and the sample size may be small, to come to conclusions. There may be some problems like: 1. Sampling errors 2. Questionnaire errors 3. Errors in data entry 4. Errors of respondents Some others drawbacks for mangaldeep ITC can be: 1. Lack of awareness about the brand 2. Lack of awareness about the advertisements 3. Lack of brand loyalty 4. Availability of substitutes

Chapter 4
4.1 RESEARCH PROCESS 30

The research process includes the various steps

Fig 5.1 Steps followed in this research process

4.2 RESEARCH DESIGN

31

A research design is a framework for conducting the marketing research project .it details the procedures necessary for obtaining the information needed to structure or solve marketing research problems. There are many ways to get information. The most common research methods are: literature searches, talking with people, focus groups, personal interviews, telephone surveys, mail surveys, email surveys, and internet surveys. A literature search involves reviewing all readily available materials. These materials can include internal company information, relevant trade publications, newspapers, magazines, annual reports, company literature, on-line data bases, and any other published materials. It is a very inexpensive method of gathering information, although it often does not yield timely information. Literature searches over the web are the fastest, while library literature searches can take between one and eight weeks. Talking with people is a good way to get information during the initial stages of a research project. It can be used to gather information that is not publicly available, or that is too new to be found in the literature. Examples might include meetings with prospects, customers, suppliers, and other types of business conversations at trade shows, seminars, and association meetings. Although often valuable, the information has questionable validity because it is highly subjective and might not be representative of the population

4.2.1

RESEARCH METHODS:

32

Exploratory Research: Exploratory research is one type of research design, which is done for this research which has its primary objective the provision of insights into and comprehension of the problem situation confronting the researcher. This research is done here as to define the problem more precisely , identify relevant course of action or gain additional insights before approach could be developed. The methods adopted under exploratory research are: 1. Observation and

2. In-depth interviewing technique 3. secondary data analysis Descriptive research: Descriptive research or statistical research provides data about the population or universe being studied. But it can only describe the "who, what, when, where and how" of a situation, not what caused it. Therefore, descriptive research is used when the objective is to provide a systematic description that is as factual and accurate as possible. It provides the number of times something occurs, or frequency, lends itself to statistical calculations such as determining the average number of occurrences or central tendencies. One of its major limitations is that it cannot help determine what causes a specific behaviour, motivation or occurrence. In other words, it cannot establish a causal research relationship between variables.

The methods adopted under descriptive research are: 1. Telephonic interviews 33

2. Consumer surveys 3. In- home personal interviews 4. Mall intercept personal interviews 5. E-mail interview 6. Internet interviews Consumer Surveys Facilitate Decision Making The most successful companies in the world rely on consumer surveys to assess their particular market and the attitude of its consumers. Making assumptions about your market is simply not enough. Failing to have quantitative research to back up your marketing strategies can be costly. You must be able to present your product, service or brand in ways that will be acceptable to your target. That is why regularly conducting consumer surveys is critical to business success. Consumer surveys can tell you:

The demographics of your target audience, including: age, gender, income, marital status, educational level and leisure activities Why people make certain purchasing decisions When and where people shop If people have a need for your product or service If there is an untapped market for your product or service Current awareness of your brand versus your competitors' People's buying habits

4.2.2 Secondary data analysis:

34

Secondary data analysis can be literally defined as second-hand analysis. It is the analysis of data or information that was either gathered by someone else (e.g., researchers, institutions, other NGOs, etc.) or for some other purpose than the one currently being considered, or often a combination of the two (Cnossen 1997). If secondary research and data analysis is undertaken with care and diligence, it can provide a cost-effective way of gaining a broader understanding of specific phenomena and/or conducting preliminary needs assessments. Secondary data are also helpful in designing subsequent primary research and, as well, can provide a baseline with which to compare your primary data collection results. Therefore, it is always wise to begin any research activity with a review of the secondary data the final report to look like, a list of the types of data that you need to collect, and a preliminary list of data sources.

SOURCES OF SECONDARY DATA: Official Statistics: Official statistics are statistics collected by governments and their various agencies, bureaus, and departments. These statistics can be useful to researchers because they are an easily obtainable and comprehensive source of information that usually covers long periods of time. However, because official statistics are often characterized by unreliability, data gaps, over-aggregation, inaccuracies, mutual inconsistencies, and lack of timely reporting (Gill 1993), it is important to critically analyze official statistics for accuracy and validity. There are several reasons why these problems exist: 1. scale of official surveys generally requires large numbers of enumerators (interviewers) and, in order to reach those numbers enumerators contracted are often under-skilled;

35

2. The size of the survey area and research team usually prohibits adequate supervision of enumerators and the research process; and 3. Resource limitations (human and technical) often prevent timely and accurate reporting of results. Technical Reports: Technical reports are accounts of work done on research projects. They are written to provide research results to colleagues, research institutions, governments, and other interested researchers. A report may emanate from completed research or on-going research projects. Scholarly Journals: Scholarly journals generally contain reports of original research or experimentation written by experts in specific fields. Articles in scholarly journals usually undergo a peer review where other experts in the same field review the content of the article for accuracy, originality, and relevance. Literature Review Articles: Literature review articles assemble and review original research dealing with a specific topic. Reviews are usually written by experts in the field and may be the first written overview of a topic area. Review articles discuss and list all the relevant publications from which the information is derived. Trade Journals: Trade journals contain articles that discuss practical information concerning various fields. These journals provide people in these fields with information pertaining to that field or trade. Reference Books: Reference books provide secondary source material. In many cases, specific facts or a summary of a topic is all that is included. Handbooks, manuals, encyclopedias, and dictionaries are considered.

Under standing the market for Agarbathi

36

The size of market is quite big, there are around 395 players in Chennai alone .The major players are:

AGARBATTI N RANGA RAO & SONS CYCLE 3 IN 1 I T C MANGALDEEP N RANGA RAO & SONS CYCLE B V ASWATHIAH & BROS NANDI PADMINI PRODS PADMINI PARIMAL MANDIR SHANTI NIKETAN PARIMAL MANDIR PARIMAL LOCAL LOCAL 020 STICKS LOCAL LOCAL 100 STICKS

Sales unit in sticks 1,558.60 530.9 299.9 265.3 256.6 245.5 241.4 233.2 230.3

The market share value of the major players

AGARBATTI MS Val (Sticks) Agarbatti

37

N RANGA RAO & SONS CYCLE 3 IN 1 I T C MANGALDEEP N RANGA RAO & SONS CYCLE LOCAL 020 STICKS B V ASWATHIAH & BROS NANDI PADMINI PRODS PADMINI PARIMAL MANDIR PARIMAL PARIMAL MANDIR SHANTI NIKETAN

22.1 6.4 5.1 4.9 4.8 4.5 4.4 3.9

The market share vol and value is shown below:

AGARBATTI N RANGA RAO & SONS CYCLE 3 IN 1 I T C MANGALDEEP N RANGA RAO & SONS CYCLE LOCAL LOCAL 020 STICKS B V ASWATHIAH & BROS NANDI PADMINI PRODS PADMINI PARIMAL MANDIR PARIMAL PARIMAL MANDIR SHANTI NIKETAN

MS VOL (sticks) 23.6 8.1 4.6 4.2 3.9 3.6 3.6 3.6

MS VAL (in lakhs) 539.1 169.8 124.6 118.9 116.6 109.2 106 96.2

38

The price of the pack with the no of sticks is given below:

AGARBATTI N RANGA RAO & SONS CYCLE 3 IN 1 I T C MANGALDEEP N RANGA RAO & SONS CYCLE LOCAL LOCAL 020 STICKS B V ASWATHIAH & BROS NANDI PADMINI PRODS PADMINI PARIMAL MANDIR PARIMAL PARIMAL MANDIR SHANTI NIKETAN Sticks per pack 35 24 32 20 33 36 24 12 Price per pack 12 8 13 10 14 16 11 5

From the above data: The market leader : N RANGA RAO & SONS CYCLE 3 IN 1

The market challenger : I T C MANGALDEEP

39

CYCLE 3 IN 1 VS MANGALDEEP In lakhs

DESCRIPTION SALES UNITS IN STICKS SALES UNITS IN PACKS MS VOL VALUE (STICKS) (LAKHS) CYCLE 3 IN 1 1,558.60 44.6 23.6 539 22.1 89% 4,949 142 12 35 MANGALDEEP 530.9 22.5 8.1 180 6.4 59% 3,466 146 8 24

MS VALUE(STICKS) WT VAL (RETAIL OUTLETS)

OFF TAKE IN STICKS OFF TAKE IN PACKS PRICE PER PACK NO OF STICKS PER PACK

40

When cycle 3 in 1 is compared with Magaldeep, The sales units in sticks for Cycle 3 in 1 is three times of Mangaldeep, i.e. it is in the ratio 3:1 the sales units in packs is in the ratio 2:1,ie for every two pack sales of Cycle 3 in 1 ,there one pack sale in Mangaldeep . The market share price in sticks is also in the ratio of 3:1 In 89% of retail outlets Cycle 3 in 1 is available and 59% of retail outlets Mangaldeep is available. The pricing and the no of sticks per pack for Mangaldeep is lower than Cycle 3 in1. Cost of producing one stick of Agarbathi In Cycle 3 in 1 is 35 paise In Mangaldeep is 33 paise

41

4.2.3 SAMPLING TECHNIQUES: It is incumbent on the researcher to clearly define the target population. There are no strict rules to follow, and the researcher must rely on logic and judgment. The population is defined in keeping with the objectives of the study.

Sometimes, the entire population will be sufficiently small, and the researcher can include the entire population in the study. This type of research is called a census study because data is gathered on every member of the population.

Usually, the population is too large for the researcher to attempt to survey all of its members. A small, but carefully chosen sample can be used to represent the population. The sample reflects the characteristics of the population from which it is drawn.

Sampling methods are classified as either probability or nonprobability. In probability samples, each member of the population has a known non-zero probability of being selected. Probability methods include random sampling, systematic sampling, and stratified sampling. In nonprobability sampling, members are selected from the population in some nonrandom manner. These include convenience sampling, judgment sampling, quota sampling, and snowball sampling. The advantage of probability sampling is that sampling error can be calculated. Sampling error is the degree to which a sample might differ from the population. When inferring to the population, results are reported plus or minus the sampling error. In nonprobability sampling, the degree to which the sample differs from the population remains unknown.

42

The target populations for this research are house wifes, women above the age of 25, all shopkeepers & other retailers. The main sampling technique adopted here are 1. Random sampling 2. Judgment sampling 3. convenience sampling

Random sampling is the purest form of probability sampling. Each member of the population has an equal and known chance of being selected. When there are very large populations, it is often difficult or impossible to identify every member of the population, so the pool of available subjects becomes biased.

Judgment sampling is a common nonprobability method. The researcher selects the sample based on judgment. This is usually and extension of convenience sampling. For example, a researcher may decide to draw the entire sample from one "representative" city, even though the population includes all cities. When using this method, the researcher must be confident that the chosen sample is truly representative of the entire population.

Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient. This nonprobability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.

43

CHAPTER 5: METHODOLOGY 5.1 AREAS UNDER COVERAGE: The field study was done in two main cities in Tamilnadu with a sample size of 600: PLACE CHENNAI COIMBATORE Main Areas covered in the cities are: CHENNAI Nungambakkam Kodambakkam Egmore Tnagar Bezant nagar Ashok Nagar Crompet Thambaram Chetpat Choolaimedu Mount Road Santhome Anna nagar West Mamblam Adayar COIMBATORE Ramanathapuram Nanjundapuram Singanallur Gandhi Puram Ram Nagar R S Puram Ganapathy Selva Puram Town Hall Citra Race Course Sungam Pothanur Peelamedu Krishna colony SAMPLE SIZE 300 300

5.2 OBSERVATIONS:

44

Agarbathi users prefer mild odor because, the users suffer from headache, asthma & vcing problems. Local brand aggarbathis are sold door to door at cheaper prices. People expect more no of schemes to be offered. 10 % of users dont even know what brand of agarbathi they use. 13% users feel that Mangaldeep has very strong fragrance.

5.3 HYPOTHESIS: The advertising of cycle (3 in 1) does not affect the sales of Mangaldeep (5 in 1) Mangaldeep (5 in 1) fragrance is not as strong as cycle 3 in 1. Advertising does not have an impact on purchase intention for Mangaldeep 5 in 1 Pricing of Mangaldeep 5 in 1 does not affect its sales. Packaging of Mangaldeep 5 in 1 has no impact on its sales. Consumers of Mangaldeep never shift to cycle 3 in 1 Consumers of cycle 3 in 1 never shift to Mangaldeep 5 in 1. Mangaldeep 5 in 1 consumers are more satisfied with the product than the consumers of cycle 3 in 1. Product awareness is low for Mangaldeep 5 in 1 than cycle 3 in 1 Brand name does not have an impact on sales of Mangaldeep 5 in1.

CHAPTER 6

FINDINGS
45

6.1 RESULTS OF THE SURVEY:

BRAND AWARENESS

30 25 20 % AWARE 15 10 5 0 1 CHENNAI COIMBATORE 2

B R AN D USAGE

2 CITIES

COIMB ATORE

CHENNAI

10

15 % US AGE

20

25

30

46

A W A R EN ES S A B O U T ITC

30 25 20 % A W AR 1 5 E 10 5 0 1 2 C HEN N A I C O IMB A TO R E

AWARE SS ABOUTSCHE E NE MS 64 63 % AWARE 62 61 60 59 58 1 CIT S IE 2 COIM BAT ORE CHE NNAI

Percentage shifted from Mangaldeep to Cycle:

47

At Chennai:

Shifted From

At Coimbatore:

S H IF T

Not Shifted from Mangaldeep i f83% S h te d

Percentage shifted from Cycle to Mangaldeep:
48

t o C 4y 1

At Chennai:

Shifted From

At Coimbatore:

S H IF T E

6.1.1 REASONS BEHIND SHIFTING OF BRANDS: Why are the users shifting from Mangaldeep to Cycle?

N sh ot ifted ,85% F romC cle y

49

When they get offers in cycle when they get attracted by the add of cycle When they get an purchase intention by the add When they feel that fragrance of cycle is better than Mangaldeep

Why are users shifting from Cycle to Mangaldeep? When the product is at a offer period When the users feel that Mangaldeep has a better fragrance When they have choice of products. When there are not particular about brands.

6.1.2 REASONS BEHIND NOT USING MANGALDEEP NOT AWARE ABOUT MANGALDEEP SATISFIED WITH THE CURRENT BRAND BUY WHICHEVER IS AVAILABLE NOT PARTICULAR ABOUT BRANDS

R E SO N S
80
50

60

6.1.3 Statistics about Chennai: 28% of users use Mangaldeep out of which 15% are users shifted from cycle to Mangaldeep 16 % of the users have again shifted back to cycle from Mangaldeep 29 % are aware about Mangaldeep whereas 95 % were aware about cycle. 23 % of users aware about ITC 64 % were aware about the schemes offered by Mangaldeep

6.1.4 Statistics about Coimbatore: 20% of users use Mangaldeep out of which 41% are users shifted from cycle to Mangaldeep 14 % of the users have again shifted back to cycle from Mangaldeep 23 % are aware about Mangaldeep whereas 100 % were aware about cycle. 20 % of users aware about ITC 60 % were aware about the schemes offered by Mangaldeep

6.1.5 FRAGRANCE OF CYCLE VS MANGALDEEP Fragrance of Mangaldeep:

51

FR

Ve r y St r o n g ,
Fragrance of Cycle:

CHAPTER 7

ANALYSIS OF SPSS

S t ro n g

7.1 REGRESSION BETWEEN AGE & PURCHASE MADE: H0: The purchase of mangaldeep is not dependent on the age of customer. 52

St r o n g ,

H1 : The purchase of mangaldeep is dependent on the age of customer

Variables Entered/Removed(b) Model Variables Entered Variables Removed Method 1 age(a) . Enter A All requested variables entered. b Dependent Variable: purchase_made Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .63 .3969 .35 1.155 a Predictors: (Constant), age

Coefficients(a) Unstandardized Coefficients Standardized Coefficients Beta Model (Constant) Age B 1.758 1.132E-02 Std. Error .159 .005 .129 .000 .86 Sig.

a Dependent Variable: purchase_made

We can conclude from the above tables that the age is not a factor that affects the buying behavior. So therby regardless of age peoples preferences do not change. 7.2 STICKS PER USE & PURCHASE MADE H0: The purchase made is not dependent on the sticks per use H1: The purchase made is not dependent on the sticks per use

53

Variables Entered/Removed(b) Model Variables Entered Variables Removed Method 1 sticks per use(a) . Enter a All requested variables entered. b Dependent Variable: purchase_made Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .67 .448 .39 1.01 a Predictors: (Constant), sticks per use

Coefficients(a) Unstandardized Coefficients Standardized Coefficients Beta Model (Constant) sticks per use B 1.458 1.01 Std. Error .144 .145 .38 .000 .89 Sig.

a Dependent Variable: purchase_made

From the study made, we can conclude that there is a small relation of the purchase behavior with respect to the sticks per use but since there is a positive relation as the sticks per use increase we can expect a rise in the purchase behavior.

7.3 USAGE PER DAY: H0: The purchase made is not dependent on the usage per day 54

H1: The purchase made is dependent on the usage per day

Variables Entered/Removed(b) Model Variables Entered Variables Removed Method 1 usage per day(a) . Enter a All requested variables entered. b Dependent Variable: purchase_made Model Summary Model 1 R .010(a) R Square Adjusted R Square Std. Error of the Estimate .000 -.002 1.157

a Predictors: (Constant), usage per day

Coefficients(a) Unstandardized Coefficients Standardized Coefficients Beta Model (Constant) usage per day B 1.963 2.125E-02 Std. Error .143 .142 .59 .000 .881 Sig.

This shows the relation between the purchase behavior and usage per day . This also shares the same relation as sticks per use. But is more strongly relate. If the sticks increase the purchase increases.

7.4 AWARENESS OF MANGALDEEP: H0: The purchase made is not dependent on the awareness of Mangaldeep

55

H1: The purchase made is dependent on the awareness of Mangaldeep

Variables Entered/Removed(b) Model 1 Variables Entered Awareness of mangaldeep(a) Variables Removed Method . Enter

a All requested variables entered. b Dependent Variable: purchase_made Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .71 .49 .44 1.156 a Predictors: (Constant), awareness of mangaldeep

Coefficients(a) Unstandardized Coefficients Model (Constant) 1 awareness of mangaldeep B 1.969 -6.576E-02 Std. Error .058 .208 .27 .000 .96 Standardized Coefficients Beta Sig.

a Dependent Variable: purchase_made

Since the awareness is less the people who buy Mangaldeep are less. So awareness is a strong point to be focused on in the sales of the brand.

7.5 AWARENESS OF ITC:

56

H0: The purchase made is not dependent on the awareness of ITC H1: The purchase made is dependent on the awareness of ITC

Variables Entered/Removed(b) Model Variables Entered Variables Removed Method 1 awareness of ITC(a) . Enter a All requested variables entered. b Dependent Variable: purchase_made Model Summary Model 1 R .7(a) R Square Adjusted R Square Std. Error of the Estimate .49 .45 1.156

a Predictors: (Constant), awareness of ITC

Coefficients(a) Unstandardized Coefficients Standardized Coefficients Beta Model (Constant) awareness of ITC B 1.934 .135 Std. Error .054 .166 .15 .000 .419 Sig.

a Dependent Variable: purchase_made

ITC has to be linked with Mangaldeep during the awareness campaign. ITC being a company of repute, can exploit its brand image to bring an image for Mangaldeep.

7.6 AWARENESS OF CYCLE: 57

H0: The purchase made is not dependent on the awareness of Cycle H1: The purchase made is dependent on the awareness of Cycle

Variables Entered/Removed(b) Model Variables Entered Variables Removed Method 1 awareness of cycle(a) . Enter a All requested variables entered. b Dependent Variable: purchase_made Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .62 .384 .37 1.156 a Predictors: (Constant), awareness of cycle

Coefficients(a) Unstandardized Coefficients Standardized Coefficients Beta Model (Constant) awareness of cycle B 2.059 -.132 Std. Error .280 .284 .000 -.019 .642 Sig.

a Dependent Variable: purchase_made

This shows that people who buy Cycle are the ones who are only aware of the brand. Lesser the awareness of cycle, more the purchase of mangaldeep.

58

7.7 AWARENESS ON SCHEMES: H0: The purchase made is not dependent on the awareness of schemes H1: The purchase made is dependent on the awareness of schemes

Variables Entered/Removed(b) Model 1 Variables Entered awareness of schemes(a) Variables Removed Method . Enter

a All requested variables entered. b Dependent Variable: purchase_made Model Summary Model 1 R . 86(a) R Square Adjusted R Square Std. Error of the Estimate .007 .73 1.186

a Predictors: (Constant), awareness of schemes

Coefficients(a) Unstandardized Coefficients Model (Constant) 1 awareness of schemes B 1.926 -.150 Std. Error .108 .189 .11 .000 .428 Standardized Coefficients Beta Sig.

a Dependent Variable: purchase_made

This shows a relation such that when there are better schemes offered, more purchase will be made for the Mangaldeep.

59

7.8 FRAGRANCE OF MANGALDEEP: H0: The purchase made is not dependent on the fragrance of Mangaldeep H1: The purchase made is dependent on the fragrance of Mangaldeep

Variables Entered/Removed(b) Model 1 Variables Entered fragrance of mangaldeep(a) Variables Removed Method . Enter

a All requested variables entered. b Dependent Variable: purchase_made Model Summary Model 1 R .176(a) R Square Adjusted R Square Std. Error of the Estimate .031 .028 1.172

a Predictors: (Constant), fragrance of mangaldeep

Coefficients(a) Unstandardized Coefficients Model (Constant) 1 fragrance of mangaldeep B 2.450 -.265 Std. Error .145 .082 .38 .000 .781 Standardized Coefficients Beta Sig.

a Dependent Variable: purchase made

Fragrance is not affecting the purchase behavior of Mangaldeep much, because people are rather happy with the fragrance.

60

7.9 SUMMARY: Coefficients Unstandardized Coefficients B (Constant) 2.636 age 1.132E-02 sticks per use usage per day awareness of mangaldeep awareness of ITC awareness of cycle awareness of schemes fragrance of mangaldeep -9.167E-02 2.125E-02 Standardized Coefficients Std. Error Beta .686 .005 .129 .141 .142 .208 .135 -.161 -.150 -.265 .166 .324 .189 .082 .38 .59 .27 .15 -.030 .11 .38 Sig. .000 .86 .817 .881 .753 .419 .621 .428 .781

Model 1

Dependent Variable: purchase_made

61

CHAPTER 8

RECOMMENDATIONS & SUGGESTONS

Lack of awareness is a major problem which stops us to take a lead, so I would suggest that intensive advertising promotion should be made i.e. Attack the leader by increasing expenditures on advertising and promotion It makes sense only when the add is far superior that the competitors

Advertising can be done in all mediums like TV, Radio, and Magazines. .etc .On the whole effective advertising in the media is necessary. The advertisement should develop a purchase intension in the minds of the viewers

To make the buyers more loyal towards the brand, give more discounts and offers For e.g. :if u can give a coupon inside the pack of Agarbathi, if ten coupons are collected ,one pack can be given free or any small gifts can be given. Such offers may develop a brand loyalty towards Mangaldeep

Product proliferation : introduce the products with lots of variety, this will give the buyer more choice For e.g.: New Mangaldeep Tulips.

Distribution innovation: a new channel of distribution should be selected so that the product reaches them easily.

Offer sample packs to all outlets so that the product gains awareness Sample packs can also be given with some local magazines which are being sold.

62

CHAPTER 9
9.1 APPENDICE

Questionnaire

Name: Age: Address:

.1. Are you a regular user of Aggarbathi?

o Yes o No

2. Are you aware about the brand Mangaldeep 5 in 1?

o Yes o No

3. What brand of Aggarbathi do you use?

o Mangaldeep 5 in 1 o Cycle 3 in 1

63

o If others please specify:

4. How often do you buy Agarbathis?

o Monthly once o Monthly twice o Weekly once

5. How many Agarbathis do you light together?

o One at a time o Two to five o Five or more

6. How many times do you light Agarbathis in a day?

o Daily once o Daily twice o Two or more times

7. What is the best about the product Mangaldeep 5in 1

o o o o

Variety Quality Fragrance Pricing

8. Do you purchase Mangaldeep 5 in 1 because of its brand name ITC? Yes No

9. Do you purchase Mangaldeep 5 in 1 only at special schemes, offers and promotion packages? Yes No

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10. Rate the following brands in the 5 point scale: For Mangaldeep 5 in 1:
High 5 4 3 2 1 low

Quality Quantity Pricing Advertising Packaging Fragrance

Quality Quantity Pricing Advertising Packaging Fragrance

11. Have you shifted from cycle 3 in 1 to Mangaldeep 5 in 1? If so why?

o 5 in 1 has additional fragrance o Quality is better o Quantity is more o Brand name

If other reasons please specify:

12. I purchase Mangaldeep 5 in 1 because of the,

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o o o o o

Brand name Quality Quantity Packaging Advertising

13. Rate the following brands in the 5 point scale: For cycle 3 in 1:
High 5 4 3 2 1 low

Quality Quantity Pricing Advertising Packaging Fragrance

Quality Quantity Pricing Advertising Packaging Fragrance

14. Have you shifted from Mangaldeep 5 in 1 to cycle 3 in 1? If so why?

o 3 in 1 has better fragrance o Quality is better o Quantity is more o Brand name

If other reasons please specify: 15. I buy cycle 3 in 1 because,

o Brand name

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o Quality o Quantity o Packaging o Advertising

16. Choose the brand according to characteristics mentioned below Cycle 3 in 1 vs Mangaldeep 5 in 1
FEATURES MANGALDEEP 5 IN 1 CYCLE 3 IN 1

Quality

Quantity Fragrance Pricing Packaging Brand name Advertising

17. Are you aware about the special packages offered by Mangaldeep? Parachute oil free with Mangaldeep Jar scheme Others

18. When you purchase Agarbhathi on what basis you select your brand? o Which ever is cheaper
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o o o o o

One with strong fragrance One which has more number of sticks Buy whichever is available Because of shopkeepers recommendation Buy according to your perception

19. Rate the following brands according to your perception: Agarbhathi

CYCLE 3 IN 1 MANGALDEEP 5 IN 1 NANDHI PADMINI PARIMAL

Excellent

VGood

Good

Average

Bad

VBad

20. What is your most preferred fragrance type in Mangaldeep? o o o o o o Jasmine sandal Rose 5 in 1 3 in 1 Yantra

21. What do think about the fragrance of various brands?

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AGARBATHI
CYCLE 3 IN 1 MANGALDEEP 5 IN 1 NANDHI PADMINI PARIMAL

LIGHT

MILD

STRONG

VSTRONG

If you are an non user of mangaldeep then, 22. What stops you from trying out Mangaldeep 5 in 1? o Satisfied with the current brand o Not aware about the brand o Non-availability of the brand If other reasons please specify: 23. Are you aware about the mangaldeep 5 in 1 advertisement, if yes? What do you feel about the add? o o o o Simple and meaningful Gives a strong impression about the brand Does not create any impact on the brand Does not convey any meaning

24. Rank the following brands from 1 to 5:

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Mangaldeep 5 in 1 Cycle 3 in 1 Nandi Padmini Parimal

9.2 References:
1. Brand Extension and Customer Loyalty. By: Weizhong Jiang; Dev, Chekitan S.; Rao, Vithala R.. Cornell Hotel & Restaurant Administration Quarterly, Aug2002, Vol. 43 Issue 4, p5, 12p, 3 charts, 2 graphs, 3bw; Abstract: Focuses on the brand extensions embraced by lodging chains in the U.S. Emphasis on the customer loyalty to inhibit the loss of customers to competitors; Analysis on the brand-switching behavior of consumers; Aims to encourage consumer retention through brand extension. 2. KNOW YOU COMPETITION. By: Berg, Joel. njbiz, 1/22/2007 Supplement, p2424, 1p; Abstract: The article profiles Jinsoo Kim, president and chief executive officer of Image Solutions Inc. based in Whippany, New Jersey. In 1992, he started his own business. Moreover, his educational background in the field of management is discussed. The difficulties experienced by the company are cited. Moreover, the company employs 200 people. For him, ignorance is not an obstacle in starting a business.

3. Subject Terms: *COMPETITION Title: COMPETITOR ANALYSIS AND DEFENSES IN THE MARKETPLACE. Authors: Yihua Philip Sheng phsan@cs.siu.edu 70

Mykytyn, Jr., Peter P.1 mykytyn@cba.siu.edu Litecky, Charles R.1 clitecky@cba.siu.edu Allen, Gove2 gallen@tulane.edu Source: Communications of the ACM; Aug2005, Vol. 48 Issue 8, p107-112, 6p Document Type: Article

4. Title: Invented competitors: a new competitor analysis methodology. Authors: Fahey, Liam Source: Strategy & Leadership; 2002, Vol. 30 Issue 6, p5, 8p Document Type: Article Subject Terms: *COMPETITION 5. Title: Competitor Identification and Competitor Analysis: A Broad-Based Managerial Approach. Authors: Bergen, Mark Peteraf, Margaret A. Source: Managerial & Decision Economics; Jun-Aug2002, Vol. 23 Issue 4/5, p157169, 13p, 1 chart, 1 diagram Document Type: Article Subject Terms: *COMPETITION 6. Title: Information Security as Response to Competitor ANALYSIS Authors: Gordon, Lawrence A.1,2 lgordon@rshmith.umd.edu Loeb, Martin P.3 mloeb@rhsmith.umd.edu Source: Communications of the ACM; Sep2001, Vol. 44 Issue 9, p70-75, 6p Document Type: Article 7. Title: How consistent are winning strategies? The role of competitor analysis and budgets on performance in a simulation. SYSTEMS.

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Authors: Neal, Derrick J. Source: Simulation & Gaming; Jun99, Vol. 30 Issue 2, p118, 14p, 5 charts Document Type: Article Subject Terms: *MANAGEMENT -- Simulation methods *MARKETING

8. Title: Competitor Analysis Practices of US Companies: An Empirical Investigation. Authors: Subramanian, Ram1 IsHak, Samir T.1 Source: Management International Review (MIR); 1998 1st Quarter, Vol. 38 Issue 1, p7-23, 17p, 10 charts Document Type: Article Subject Terms: *BUSINESS 9. Title: COMPETITOR ANALYSIS AND INTERFIRM RIVALRY: THEORETICAL INTEGRATION. Authors: Ming-Jer Chen1 Source: Academy of Management Review; Jan1996, Vol. 21 Issue 1, p100-134, Document Type: Article 10. Title: Know Your Enemy - Competitor Analysis for Success. Source: Industrial & Commercial Training; 1995, Vol. 27 Issue 1, preceding pviiiviii, 1/2p Document Type: Entertainment Review Subject Terms: *COMPETITION

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11. Title: BLIND SPOTS IN INDUSTRY& COMPETITON ANALYSIS:IMPLICATIONS INTERFIRM PERCEPTIONS FOR STRATEGIC DECISIONS. Authors: Zajac, Edward J.1 Bazerman, Max H.1 Source: Academy of Management Review; Jan1991, Vol. 16 Issue 1, p37, 20p, 1 diagram Document Type: Article 12. Title: ORGANIZING COMPETITOR ANALYSIS SYSTEMS. Authors: Ghoshal, Sumantra Westney, D. Eleanor1 Source: Strategic Management Journal; Jan91, Vol. 12 Issue 1, p17-31, 15p Document Type: Article Subject Terms: *COMPETITION

13. Title: THINKING ONE STEP AHEAD: THE USE OF CONJECTURES IN COMPETITOR ANALYSIS. Authors: Amit, Raphael1 Domowitz, Ian2 Fershtman, Chaim3 Source: Strategic Management Journal; Sep-Oct88, Vol. 9 Issue 5, p431-442, 12p Document Type: Article

14. Title: Competitor Analysis: Some Practical Approaches. Authors: Brock, John J.1 Source: Industrial Marketing Management; Oct84, Vol. 13 Issue 4, p225-231, 7p

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Document Type: Article

15. Title: COMPETITOR ANALYSIS IN HEALTH CARE MARKETING. Authors: Salvatore, Tony1 Source: Journal of Health Care Marketing; Fall84, Vol. 4 Issue 4, p11-16, 6p Document Type: Article 16. Title: Competitor analysis--A prize-centered approach. Authors: Oxenfeldt, Alfred R. Moore, William L. Source: Management Review; May81, Vol. 70 Issue 5, p23, 7p Document Type: Article 17. Title: Competitor analysis: The missing link in the strategy. Authors: Rothschild, William E. Source: Management Review; Jul79, Vol. 68 Issue 7, p22, 10p Document Type: Article

18. www.itc.in

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