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STUDY OF RETAILERS PREFERENCE TOWARDS ITC CANDYMAN AND CANDICO CANDIES
PUNJAB TECHNICAL UNIVERSITY, JALANDHAR IN PARTIAL FULFILMENT OF THE OF BUSINESS ADMINISTRATION BATCH (2007-2009)
5 6 7 9-12 13-15 17 18 19-20 21 22-45
REQUIREMENT FOR THE DEGREE OF
Declaration MASTER Chapter I:-
ITC Candyman Profile Candico Profile Chapter II:Objective of the study Scope of the study
Research Methodology SUBMITTED BY: Limitations of the study SHAH FAISAL Mr. Girish Nima
Chapter III:Chapter IV:-
ENROLEMENT No. 7116223117
Data Analysis & Interpretation
RIMT-Institute of Management & Computer Technology, Mandi Findings 47
Swot Analysis Gobindgarh Suggestions Conclusions Chapter V:Annexure Chapter VI:Bibliography 59 53 48-50 51 52
LIST OF TABLES
TABLE NUMBER 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 20 21 22 23 24 TITLE Sale Of The Candies Brand Preferences Purchase Of ITC Candyman Candies Purchase Of Candico Candies Overall Purchase Of Candies Preference Of Sub-brands Of ITC Candyman Candies Preference Of Sub-brands Of Candico Candies Influencing Factors During Purchase Of Candies Influencing Factors During Purchase Of ITC Candyman Candies Influencing Factors During Purchase Of Candico Candies Factors Giving More Satisfaction To The Retailers Factors Giving More Satisfaction To The Retailers in ITC Candyman Candies Factors Giving More Satisfaction To The Retailers In Candico Candies Form Preferences Pack Of Candies Preferred Promotional Offers Factors Affecting Purchase Media Of Advertisement Frequency Of Consumption Reasonable Price Consumer’s Brand Loyalty Reaction Of Customers If New Brand Is Introduced PAGE NUMBER 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44
LIST OF GRAPHS
GRAPH NUMBER 1 2 3 4 TITLE Liking For The Chocolate Brand Preference Purchase Of ITC Candyman Candies Purchase Of Candico Candies PAGE NUMBER 23 24 25 26
3 5 6 7 8 9 10 11 12 13 14 Overall Purchase Of Candies Form Preferences Pack Of Candies Preferred Promotional Offers Factors Affecting Purchase Media Of Advertisement Frequency Of Consumption Reasonable Price Retailer’s Brand Loyalty Reaction Of Retailers If New Brand Is Introduced 27 36 37 38 39 40 41 42 43 44
First of all I would like to thank the Management at ITC ltd. for giving me the opportunity to do my one and half-month project training in their esteemed organization. I am highly obliged to my project guide Mr. Girish Nima for granting me to undertake my training at Saharanpur branch. I express my thanks to all Staff of the branch under whose able guidance and direction, I was able to give shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable. My heartfelt thanks go to all the executives who helped me gain knowledge about the actual working and the processes involved in various departments. I have no words to express my feeling of deep gratitude, which I owe to Mrs. Dalbir kaur (faculty
member), who extended me assistance, support and council without, which this project
would not have been materialized
Mrs. Dalbir Kaur Shah Faisal
I am lucky that, I got an opportunity for making the project report on “ITC CANDYMAN.” I visited the various concerns for two months and I prepare my project report on the topic “STUDY OF RETAILERS PREFERENCE TOWARDS ITC CANDYMAN AND CANDICO CANDIES.” and the study is divided into various chapters to get knowledge. I also considered some published material on the particular topic as well as about the concern. This helps me in boosting up my confidence and determination which will help me to face the situation in coming years. This report is written account of what I learnt and experienced during my survey. I wish, those going through it will not only find it readable but also get as useful Information. The main limitation of my experience was that I did not get the full and correct Information from the market, as many of the respondents did not answer to my questionnaire correctly and completely.
Hereby declare that the project report entitled “STUDY OF RETAILERS PREFERENCE TOWARDS ITC CANDYMAN AND CANDICO CANDIES.” submitted for the degree of Master of Business Administration, is my original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.
Place: Date: Shah Faisal MBA-III Sem
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big Companies, Asia's 'Feb. 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 also ranks among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hotelier. Over time, the strategic forays into new
8 businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 24,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3,83,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."
ITC currently has two brands in the confectionery segment –‘Mint-o’ and ‘Candyman’. ‘Mint-o’ was acquired by ITC from Candico in March 2002. ITC re-launched the compressed mint offering, across all major markets in India, with new and improved
9 product and packaging. Available in the regular mint flavor with added blue specks to enhance consumer experience, mint-o is also offered in innovative ‘Orange-mint’ and ‘Lemon-mint’ flavours. Mint-o Cool blue - a single mint in a pillow-pack was launched In November 2007. ’Mint-o’ is available in 3 sizes – rolls of 20 and 6 and singles, capturing the international essence of ‘youthful cool’. ITC launched ‘Mint-o Fresh’ in October 2004. An ‘active’ mint deposited candy, mint-o Fresh is available in two refreshing mint flavours – mint-o Fresh eucalyptus and mint-o Fresh Cool Green. Its launch extended the footprint of the ‘mint-o’ brand in line with the strategy of adding excitement and contributing to the growth of the confectionery category. ‘Mint-o Fresh’ is especially targeted at the adult consumer creating a basket of mint-based products across price points. ITC launched the ‘Candyman’ range of confectioneries in August 2002. Led by the ‘Candyman Fruitee Fun’ range of assorted fruit flavours ( ‘Wild banana’, ‘Pineapple Punch’, ‘Orange Josh’ and ‘Mango Delite’), the ‘Candyman’ portfolio now includes deposited candy products like ‘Candyman Butterscotch Licks’ and ‘Candyman Eclairs’ (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The coffee toffee segment also saw the successful launch of ‘Candyman cofitino’ in November 2005. The brand was further strengthened with the launch of ‘Candyman Natkhat Mango’ and ‘Candyman Maha Mango’. In line with the strategy to provide innovative flavours to the consumers, Candyman Mango Licks was launched in June 2007 and Candyman Natkhat Gowawa in October 2007. The ‘Candyman’ range of confectionary is targeted at ‘fun-filled, naughty kids’ who seek a delightful candy experience through a range of candy types and flavours.
STRATEGIES OF ITC
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. ITC’s corporate strategies are: • 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’s 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 catalyses the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.
Candico is a confectionery multinational headquartered out of India with operations in 12 countries. Candico began operations in the year 1997. By the year 2002 it grew to become the second largest Indian confectionery company. Candico is one of only two Indian companies to emerge as a confectionery major after the industry consolidated in the late 90's. With over 2 billion confectionery products sold every year, Candico has been making millions of children smile. Candico's success in a market where every major confectionery player from the world competes is indicative of its core strengths
With 24 depots, 1500 authorized dealers and a 250 people strong sales force, Candico’s distribution network in India has a direct or indirect reach in most towns and cities with a population of over 25,000. It is estimated that Candico’s brands reach out to over 60 percent of India’s 1000 million people. An Advanced Management Information System ensures that the company’s management has, by 11 a.m. the next day, details of all Candico products sold to every shop by every salesman in India.
Candico is the only Indian confectionery company with production facilities overseas. Candico’s international operations gathered speed in October 2003 with its acquisition of an equity skate in SML, Tanzania. In May 2004 it entered into a distribution agreement to set up operations in South Africa. Candico has set up distribution arrangements in several countries across the world including South Africa, New Zealand, Madagascar and Qatar. Candico is actively scouting for opportunities to set up similar distribution agreements in West and North Africa so as to cover the entire African continent.
Candico has a "world class manufacturing facility" (ERC, London) in its 'state of the art' plant at Nagpur, Maharashtra.
The largest of it's kind in the country, the plant is spread over a sprawling 15-acre campus, complete with lush lawns and a stream that flows right through it. It has a constructed area of over 350,000 square feet, of which close to 300,000 is fully particle, humidity and temperature controlled.
13 The plant has a production capacity of 45,000 tonnes, which makes it one of the largest manufacturing facilities of its kind in India.
The Candico manufacturing facility at Nagpur, due to the substantial amount of capital investment and the superior technology used in the manufacturing process, is the only plant in the country that is capable of manufacturing the entire range of confectionery product in each one of the existing categories. 1) Toffees: Centre fill, Non centre fill 2) Candies: Centre fill, Sugar boiled 3) Gums: Bricks, Balls, Sticks 4) Soft chews: Aerated, Non-aerated 5) Compressed powder tablets
OBJECTIVES OF THE STUDY
This project is based on the comparative study consumer behavior towards ITC Candyman and Candico. Objectives of the study are: The other objective is to know about the customer satisfaction level associated with the product and the customer preference level. To increase customer satisfaction and recapture the market share by fulfilling the customer needs. To study the factors affecting the consumption pattern.
SCOPE OF THE STUDY
As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They want to teach retailers in their roles as their roles as consumers. They want retailers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer’s needs, but the marketer’s objectives. The scope of my study restricts itself to the analysis of retailer preferences, perception and consumption of ITC Candyman and Candico. There are many other brands of candies available but my study is limited to two major players of candies leaving behind the others. The scope of my study is also restricts itself to Saharanpur region only.
This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present comprehensive analysis of consumption of ITC Candyman and Candico candies consumed by the people. The data had been used to cover various aspects like consumption, retailer’s preference and retailer’s satisfaction regarding Candyman and Candico. In collecting requisite data and information regarding the topic selected, I went to the retailers of Saharanpur and collected the data.
The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience.
Sample Size and Design:
A sample of 100 people was taken on the basis of convenience. The actual retailers were contacted on the basis of random sampling.
Research work is only carried for 2 or 3 weeks.
This work is carried out through self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices.
The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source: The primary data comprises information survey of “Comparative study of retailer behavior towards ITC Candyman and Candico”. The data has been collected directly from respondent with the help of structured questionnaires. Secondary Source: The secondary data was collected from internet and references from Library.
The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is bar graphs.
LIMITATIONS OF THE STUDY
In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows: Due to limitation of time only few people were selected for the study. So the sample of retailers was not enough to generalize the findings of the study. The main source of data for the study was primary data with the help of selfadministered questionnaires. Hence, the chances of unbiased information are less. People were hesitant to disclose the true facts. The chance of biased response can’t be eliminated though all necessary steps were taken to avoid the same.
CHAPTER-III DATA ANALYSIS AND INTERPRETATION
ANALYSIS OF THE STUDY
SALE OF THE CANDIES
Table: 1 Sale of the Candies Number of Respondents Yes 95 No 5
100 80 60 40 20 0
Number of Respondents
5 Yes No
Chart: 1 From the above analysis of the given sample of 100 respondents it is concluded that out of 100 people 95 people sell candies while only 5 people don’t sell candies.
Table: 2 BRANDS ITC CANDYMAN CANDICO 80 70 60 50 40 30 20 10 0 PREFERENCE BY CONSUMERS Chart: 2 From the above analysis of given sample of 95 respondents who sell candies it is concluded that only 22 people prefer to sell Candico while 73 people likes to sell ITC Candyman. 22 ITC CANDYMAN CANDICO 73 PREFERENCE BY CONSUMERS 73 22
PURCHASE OF CANDIES
PURCHASE OF CANDYMAN
Table: 3 SUB- BRANDS ECLAIRS COFFITINO MINT-O-FRESH FRUITEE FUN NATKHAT MANGO ITC CANDYMAN NUMBER OF RESPONDANTS 69 64 61 49 41
PURCHASE OF ITC CANDYMAN
NATKHAT MANGO 41 FRUITEE FUN 49
Chart: 3 From the above analysis of given sample of 73 respondents who eat ITC Candyman candies it is concluded that mostly people has purchased Eclairs sub-brand of ITC Candyman while Natkhat mango is least purchased by the people.
PURCHASE OF CANDICO
Table: 4 SUB- BRANDS ECLAIRS COFFI TOFFI MINT CANDY FRUITS CANDY GREEN MANGO CANDICO CANDIES NUMBER OF RESPONDANTS 19 18 15 17 11
PURCHASE OF CANDICO CANDIES
GREEN MANGO 11
FRUITS CANDY 17
MINT CANDY 15
COFFI TOFFI 18
From the above analysis of given sample of 22 respondents who eat Candico candies it is concluded that mostly all sub-brands are purchased by people but top most is Eclairs followed by Coffi Toffi and Fruits Candy. While surveying we have found that many people are not aware of Green Mango candy.
OVERALL PURCHASE OF CANDIES
Table: 5 OVERALL PURCHASE OF SUB- BRANDS OF CANDIES
25 SUB-BRANDS ECLAIRS COFFITINO MINT-O-FRESH FRUITEE FUN NATKHAT MANGO ECLAIRS COFFI TOFFI FRUITS CANDY MINT CANDY GREEN MANGO NUMBER OF RESPONDANTS 69 64 61 49 41 19 18 15 17 11
OVERALL PURCHASE OF SUB- BRANDS OF CANDIES NUMBER OF RESPONDANTS 11 17 69 15 ECLAIRS 18 COFFITINO 19 MINT-O-FRESH FRUITEE FUN NATKHAT MANGO ECLAIRS 41 64 COFFI TOFFI FRUITS CANDY MINT CANDY 49 61 GREEN MANGO
Chart: 5 From the above analysis it is concluded that overall ITC Candyman Eclairs is purchased by people followed by Coffi Toffi while Mint Candy and Green Mango is least purchased by people.
PREFERENCE OF SUBRANDS OF CANDIES
PREFERENCE OF SUBRANDS OF ITC CANDYMAN
Table: 6 SUB- BRANDS ITC CANDYMAN GRAND TOTAL AVERAGE OF (GRAND TOTAL / No. RANKS
26 PREFERENCE 315 220 176 136 91 OF RESPONDANTS) 4.3 3 2.4 1.86 1.24
ECLAIRS COFFITINO MINT-O-FRESH FRUITEE FUN NATKHAT MANGO
1 2 3 4 5
According to the above analysis it is concluded that in ITC Candyman, Eclairs is the most preferred sub-brand as it is ranked first by the respondents. While Natkhat is the least preferred sub-brand of ITC Candyman.
PREFERENCE OF SUB-BRANDS OF CANDICO
Table: 7 SUB- BRANDS CANDICO CANDIES GRAND AVERAGE TOTAL OF ECLAIRS COFFI TOFFI FRUITS CANDY MINT CANDY PREFERENCE 70 64 65 45 (GRAND TOTAL / No. OF RESPONDANTS) 3.18 2.9 2.95 2.05 1 3 2 4 RANKS
27 GREEN MANGO 30 1.36 5
According to the above analysis it is concluded that in Candico Brand, Eclairs is the most preferred sub-brand as it is ranked first by the respondents. While Green Mango is the least preferred sub-brand of Candico candies.
INFLUENCING FACTORS DURING PURCHASE
Table: 8 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR SHAPE QUANTITY GRAND TOTAL 435 295 391 344 301 354 344 297 268 342 AVERAGE 4.58 3.1 4.12 3.62 3.17 3.73 3.62 3.13 2.82 3.6 RANK 1 9 2 4 7 3 4 8 10 6
According to the above analysis it is concluded that on an average mostly people are influenced by flavor/taste followed by quality, brand and image. It is surprised to know that very few people are influenced by price followed by shape of the candies.
INFLUENCING FACTORS DURING PURCHASE OF ITC CANDYMAN CANDIES
Table: 9 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR SHAPE QUANTITY GRAND TOTAL 335 235 307 277 231 271 262 224 213 262 AVERAGE 4.6 3.2 4.2 3.79 3.16 3.71 3.59 3.07 2.92 3.59 RANK 1 7 2 3 8 4 5 9 10 5
According to the above analysis it is concluded that on an average mostly people are influenced by flavor/taste followed by quality, packaging and brand. Here color and shape are not all influencing people while purchasing ITC Candyman candies.
INFLUENCING FACTORS DURING PURCHASE OF CANDICO CANDIES
Table: 10 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR SHAPE QUANTITY GRAND TOTAL 100 60 84 67 70 83 82 73 55 80 AVERAGE 4.5 2.72 3.82 3.04 3.18 3.77 3.73 3.32 2.5 3.64 RANK 1 5 2 9 8 3 4 7 10 6
According to the above analysis it is concluded that on an average mostly people are influenced by flavor/taste followed by quality, brand and image. Here packaging and shape are not all influencing people while purchasing Candico candies.
FACTORS GIVING MOST SATISFACTION TO RETAILERS
Table: 11 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR SHAPE QUANTITY GRAND TOTAL 427 337 367 338 332 358 328 332 335 328 AVERAGE 4.81 3.6 3.86 3.56 3.49 3.77 3.45 3.49 3.52 3.45 RANK 1 4 2 5 7 3 9 7 6 9
According to the above analysis it is concluded that on an average people are most satisfied with the flavor/taste of a candy followed by quality and brand. It is surprising to know that although people are satisfied with quality but unsatisfied with the quantity.
SATISFACTION IN ITC CANDYMAN CANDIES
Table: 12 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR SHAPE QUANTITY GRAND TOTAL 334 269 282 272 264 282 247 259 258 255 AVERAGE 4.6 3.68 3.86 3.73 3.62 3.86 3.38 3.55 3.53 3.49 RANK 1 5 2 4 6 2 10 7 8 9
According to the above analysis it is concluded that on an average people are most satisfied with the flavor/taste of a candy followed by quality and brand. It is surprising to know that although people are satisfied with quality but unsatisfied with the quantity and image.
SATISFACTION IN CANDICO CANDY
32 Table: 13 FACTORS FLAVOR/TASTE PRICE QUALITY PACKAGING FORM BRAND IMAGE COLOR SHAPE QUANTITY GRAND TOTAL 93 68 85 66 68 76 81 73 77 73 AVERAGE 4.2 3.09 3.86 3 3.09 3.45 3.68 3.32 3.5 3.32 RANK 1 8 2 10 8 5 3 6 4 6
According to the above analysis it is concluded that on an average people are most satisfied with the flavor/taste of a candy followed by quality and image. It is surprising to know that although people are satisfied with quality but unsatisfied with the form and packaging.
Table: 14 FORM OF CANDY HARD NUMBER RESONDENTS 30 OF
33 NUTTIES CRUNCHY CHEW 21 26 18
Form of a Candy Prefered by People
Number of Consumers
40 30 20 10 0
HARD NUTTIES CRUNCHY CHEW
Chart: 6 According to the above analysis it is concluded that most of the people likes to eat hard candy and chew form of a candy is least preferred.
PACK OF CANDIES PREFERED
Table: 15 PACK SIZE POLLY BAG JAR JUMBO JAR NUMBER OF RESPONDENTS 28 48 19
Pack of Candy Prefered
60 50 40 30 20 10 0
48 28 19 POLLY BAG JAR JUMBO JAR
Number of Consumers
1 ack P
According to the above analysis it is concluded that out of sample of 95 people who sell candies likes to buy jar, then comes the Polly bags and jumbo jars are least preferred.
Table: 16 PROMOTIONAL OFFERS FREE GIFTS PRICE OFFER ANY OTHER NUMBER OF RESPONDENTS 52 23 20
Effect of Promotional Offers while Purchase Number of Consumers 60 50 40 30 20 10 0 Promotional Offers 1 23 20 FREE GIFTS PRICE OFFER ANY OTHER 52
According to the above analysis it is concluded that out of sample of 95 people who sell candy 52 are attracted by free gifts, 23 by price offers while 20 were attracted by some other reasons.
FACTORS AFFECTING PURCHASE
Table: 17 FACTORS ADVERTISEMENT SUGGESTION FROM CUSTOMERS ATTRACTIVE DISPLAY SALESMAN ADVICE BRAND AMBASSADORS INGREDIENTS NUMBER OF RESPONDENTS 67 17 12 14 10 28
Factors Affecting Purchase Number of Consumers
80 60 40 20 0
SUGGESTION FROM CUSTOMERS ATTRACTIVE DISPLAY
17 12 14 10
SALESMAN ADVICE BRAND AMBASSDORS
Chart: 9 According to the above analysis it is concluded that Advertisement is the best measure to attract retailers to purchase more. Its impact is much more than other factors. While customers and brand ambassadors also play a significant role in this regard.
MEDIA OF ADVERTISEMENT
Table: 18 MEDIA OF ADVERTISEMENT TELEVISION NEWSPAPERS BROCHURES HOARDING DISPLAY NUMBER OF RESPONDENTS 75 10 5 8 25
Media of Advertisement influencing the Purchase Number of Customers
80 60 40 20 0
Television Newspapers Brochers Hoarding Display
25 10 5 8
Media 1 Advertising Of
Chart: 10 According to the above analysis it is concluded that television emerges as the best media for advertisement of candies that compel consumers to buy. It is much more than other ways as out of 95 respondents 82 are attracted to by through television media while brochures are the least attracting media.
FREQUENCY OF CONSUMPTION
Table: 19 FREQUENCY OF CONSUMPTION ONCE IN A FORTNIGHT DAILY WEEKLY MONTHLY QUARTERLY NUMBER OF RESPONDENTS 16 17 39 18 5
Frequency of Consumption
Number of Retailers
50 40 30 20 10 0
Once in a fortnight Daily 5 Weekly Monthly Quarterly
Chart: 11 According to the above analysis it is concluded that mostly retailers purchase candies weekly. Only 15 out of 95 purchase candies quarterly.
Table: 20 PRICE OF CANDY BELOW 25paise 25paise-50paise 50paise-Rs1 Rs1-Rs2 ABOVE Rs2 NUMBER OF RESPONDENTS 6 23 51 4 11
Number of Retailers
60 40 20 0 6 23
Below 25 paise 25paise-50 paise 50paise-Rs1 Rs1-Rs2 Above Rs2
4 1 Price
Chart: 12 According to the above analysis it is concluded that the retailers thinks 50paise-Rs1 is the reasonable price of a candy. So it must be worthwhile to know this as it may effect the sale of candies.
CONSUMER’S BRAND LOYALTY
Table: 21 BRAND LOYALTY ACTIONS POSTPONE YOUR PURCHASE SWITCH OVER TO OTHER BRANDS GO TO OTHER SHOP FOR SEARCH OF PREFERED BRAND NUMBER OF RESPONDENTS 26 24 45
Number of Retailers
50 40 30 20 10 0
45 26 Postpone Purchase 24 Switch Brand Search in other Shop
Action 1 Retailers in of absence of Prefered Brand
Chart: 13 According to the above analysis it is concluded that mostly people are loyal to the brand as in the absence of availability of their preferred brand mostly people like to search for it or they are ready to postpone their purchase.
REACTION OF RETAILERS IF NEW BRAND IS INTRODUCED
Table: 22 SHIFT TO NEW BRAND OF THE PREFERED PRODUCT NO, NOT AT ALL MAY CONSIDER NUMBER OF RESPONDENTS 35 27
41 NO, SHALL NOT CAN’T SAY 4 29
Reaction of retailers if new brand is introduced
Number of Retailers
40 30 20 10 0
No, Not at all May Consider Shall Not Can't Say
According to the above analysis it is concluded that mostly people are addicted to the same flavor or taste and they don’t want to change it as out of 95 respondents 35 are not ready to try new brand at any cost.
REASONS FOR NOT SWITCHING OVER TO OTHER BRANDS
All the retailers why they continue to buy the old brand gave various important reasons. The most important reasons given by the retailers were: Taste/Flavor Brand Image Quality
Retailer research deals with retailer and their problems and solution to the problems. In this I came to know about the retailers need and expectation levels regarding products and ascertainable levels of satisfaction.
Under product research I came to know about the modification which retailers wants as to the quality, packing, shape, color, and quantity etc of their favorite candy.
This includes ability to consume, to pay for the product, how much a person can spend on his/her favorite candy. In this I have tried to find out retailer’s price expectations and reactions.
Under this I have concluded that whether the advertisement appeals the retailers or not. This also includes evaluating and selecting the proper media-mix and measuring advertising effectiveness.
1.ITC is one of India's foremost private sector companies.
45 2.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. 3.ITC ranks among India's top 10 Most Valuable (Company) Brands. 4.It has market capitalization of nearly US $ 18 billion. 5.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. 6. ITC's Agri-Business is one of India's largest exporters of agricultural products. 7. 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.
1.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.
46 2.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 subsidized by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market.
1.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. 2.ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. 3.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. Take a look at e-Choupal here http://www.itcportal.com/agri_exports/e-choupal_new.htm ITC leverages e-Choupal in a novel way. 4.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. 5.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
47 India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.
1.The obvious threat is from competition, both domestic and international. 2.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. 3.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. 4.Duplicate items are available in abundance at much lesser rates. This affects the company financially and adversely affects its goodwill.
SUGGESTIONS AND RECOMMENDATIONS
Company should concentrate more on television for advertisement, as mostly people get attracted through television only. For promotional offers, company should go for free gifts rather than going for other ways. Candico company should concentrate on its packing as people are least satisfied with it while ITC Candyman should concentrate on the shape of their candy. People are unsatisfied with the price and quantity of candy so companies should concentrate in this regard also.
A survey of the people has been conducted to know the liking pattern of the ITC Candyman and Candico. It is observed that overall retailers like to buy ITC Candyman candies rather than Candico. It is concluded that mostly people preferred Eclairs of ITC Candyman due to its flavor/taste, quality and image and due to its hard form. Some people often like to have a candy with good flavor,
49 quality and crunchiness so they are going towards Eclairs and Coffi Toffi of Candico due to its taste and crunchiness. It is thus concluded from the facts collected that mostly people refer to buy jars of their favorite candy and sometimes some of them go for Polly bags and jumbo jars.
PROJECT REPORT ON RETAILER PREFERENCE TOWARDS ITC CANDYMAN AND CANDICO CANDIES
Que1. Do you sell candies? Yes No
Que2. Which brand of candy do you prefer? ITC Candyman Candico Que3. Which sub-brand you have purchased? ITC Candyman Cofitino Natkhat Mango Fruitee Fun Mint-o-Fresh Eclairs Candico Koffi Toffi Green mango Fruits Candy Mint Candy Eclairs
Que4. Rank the sub-brands of candies according to your preference? (1 for most preferred) ITC Candyman Cofitino Natkhat Mango Fruitee Fun Mint-o-Fresh Eclairs Candico Koffi Toffi Green mango Fruits Candy Mint Candy Eclairs
Que5. How much importance do you give to the following factors when you purchase a candy? (Tick in the desired column) Factors Flavor/taste Very Important Important Normal Least Important None
52 Price Quality Packaging Form Brand Image Color Shape Quantity Que6. How much are you satisfied with the following factors in your preferred candy? (Tick in the desired column) Factors Very Satisfied Normal Least Can’t Say Satisfied Satisfied Flavor/taste Price Quality Packaging Form Brand Image Color Shape Quantity Que7. Which form of a candy do you sell? Hard Nutties Crunchy Chew
Que8. What pack do you purchase? Polly bags Jar
Que9. Which promotional offers attract you most? Free gifts Price Offer Any other
Que10.Which of these factors affects your purchase? Advertisement Suggestion from customers
Attractive Display Salesman Advice Brand Ambassadors Ingredients Que11. Which media of advertisement influence your purchase? Television Newspapers Brochures Hoarding Display
Que12. How frequently do you purchase candies? Once in a fortnight Daily Weekly Monthly Quarterly Que13. What according to you is the reasonable price of candy? Below25paise Rs1-Rs2 25paise-50paise Above Rs2 50paise-Rs1
Que14. If your preferred brand is not available for repeat purchases then what will you do? Postpone your purchase Switch over to other brand Go to the other seller to search for your preferred brand Que15. If another brand of the same product appears in the market, will you prefer to stop buying this brand and buy the new brand? No, not at all I may consider No, I shall not can’t say
Que16. If you don’t like to change to the new brand, then what are the reasons for continuing to purchase the old brand?
PERSONAL DETAILS Name: Address: Gender: Phone Number: Marital status: Education: Profession:
Marketing Management by “Philip kotler”
Marketing Management by”C.N.Sontakki