1.

1 INTRODUCTION

In today's world of endless choice and prolific product options, brands are
confronted with the challenge of gaining mindshare and market penetration. Most
imaging and document product segments are extremely competitive, with multiple brands
competing for “share of mind” in the battle for overall market share. In many cases, the
competing products and services have very similar feature sets and price points that are
available through comparable channels.

Brand can often be the key discriminating factor in a customer’s decision to select one
product over another. Today, Companies trying to create a strong brand image for their
products to survive and face the competitions in the market.

1.1.1 Brand

Brand is essentially the sum of all experiences related to the product, service, and
companies that make and deliver the product. Brand perceptions are shaped by functional
experiences (i.e. speed, quality, reliability, ease of use) as well as emotional experiences
(i.e. make me feel better, improve my performance, make my life/job more gratifying or
easier) the customer associates with the product and company.

It is essential for all companies today to create a good perception and perceived value
about their brands. Customers having variety of choices and thus every company should
strive to make their customers loyal to their brands by being strong brand in the market.

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1.1.2Characteristics of Strong brands

Strong brands are

 Valuable to the extent that enable firms to explore opportunities (through line and
brand extension) and neutralize the competitive threats ( due to high customer
retention and loyalty rate)
 Rare among a manufacturer’s / marketer’s current and potential competitors
 Costly to imitate and
 Without strategic substitutes.

1.1.3 Brand Loyalty

Brands perform valuable functions in enabling customers to adopt a differentiated

product. Great brands have a distinctive memorable identity – brands therefore, give
identity. Identity in turn creates trust, which in turn creates loyalty. Ultimately, the
loyalty ensures continuous usage of brands. To ensure continuous loyalty, the company is
forced to maintain quality, which in turn ensures continuous usage – so it is a full circle!

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Perceived quality lies at the heart of what customers are buying and in that sense, it is the
ultimate measure of the impact of a brand. A brand’s value to the company is largely
created by the customer loyalty it commands. Since a company considers loyalty as a
major asset, it encourages and justified loyalty-building programmes, which in turn help
create and enhance brand equity. In a way, the loyal customer gets emotionally attached
to the brand.

1.1.4 Levels of Brand Loyalty

Brand awareness: It is an important way of promoting commodity-related products. This

is because for these products, there are very few factors that differentiate one product
from its competitors. Therefore, the product that maintains the highest brand awareness
compared to its competitors will usually get the most sales.

Brand Associations: A particular brand is associated with the general product category
in the mind of the consumer (share of mind) to the degree. Often a consumer will ask for
a product by the specific brand name rather than the general name-for example, a person
wanting facial tissues may ask for Kleenex. When this happens, the consumer is making a
brand association.

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Brand Familiarity: The awareness consumers have of a particular brand.

Brand Attitudes: Opinion of consumers toward a product determined through market

research. The brand attitude will tell what people think about a product or service,
whether the product answers a consumer need, and just how much the product the
consumer wants. Knowledge of brand attitude is very helpful in planning an advertising
campaign.

Brand Identity : Visible elements of a brand (such as colors, design, logotype, name,
symbol) that together identify and distinguish the brand in the consumers' mind.

Brand Personality The attribution of human personality traits (seriousness, warmth,

imagination, etc.) to a brand as a way to achieve differentiation. Usually done through
long-term above-the-line advertising and appropriate packaging and graphics.

Brand Image: Impression in the consumers' mind of a brand's total personality (real and
imaginary qualities and shortcomings). Brand image is developed over time through
advertising campaigns with a consistent theme, and is authenticated through the
consumers' direct experience.

Brand positioning: It refers to “target consumer’s” reason to buy your brand in

preference to others. It is ensures that all brand activity has a common aim; is guided,
directed and delivered by the brand’s benefits/reasons to buy; and it focuses at all points
of contact with the consumer.

Brand preference: It is selective demand for a company's brand rather than a product;
the degree to which consumers prefer one brand to another. In an attempt to build brand
preference advertising, the advertising must persuade a target audience to consider the
advantages of a brand, often by building its reputation as a long-established and trusted
name in the industry. If the advertising is successful, the target customer will choose the
brand over other brands in any category.

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Brand Loyalty :Extent of the faithfulness of consumers to a particular brand, expressed
through their repeat purchases, irrespective of the marketing pressure generated by the
competing brands.

Brand Equity :Brand's power derived from the goodwill and name recognition it has
earned over time, and which translates into higher sales volume and higher profit margins
against competing brands.

1.1.5 Loyalty programmes in India:

Loyalty programs have been active in India since 1995, when British Airways launched
the South Asia version of its Executive Club frequent-flyer program in India. That year,
Shoppers’ Stop, launched its First Citizen Club (which has reached a headcount of
644,500 at the end of Q1-2007, one of India’s best-known loyalty programs.)

Today, loyalty efforts have penetrated every major vertical: hospitality, travel, retail,
telecoms, media outlets, and consumables.

The biggest challenge facing Indian marketers is the one facing marketers the world over:
deriving actionable insight from customer data. While the more established sectors of
fuel retail, travel are fairly established, most marketers still exist in a patchwork of
segments with little knowledge of how to construct, administer and use loyalty programs.

The Indian loyalty industry is still in its infancy as most programs are very much
standalone, points-driven or discounting schemes. They have not matured to the extent of
providing differential treatment at all customer interface points. Without segmented
databases, it’s difficult to benefit from a CRM program.

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 1.2 INDUSTRY PROFILE

1.2.1 FMCG Industry

Products, which have a quick turnover, and relatively low cost, are known as Fast
Moving Consumer Goods (FMCG). FMCG products are those that are replaced within a
year. Examples of FMCG generally include a wide range of frequently purchased
consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving
products and detergents, as well as other non-durables such as glassware, bulbs, batteries,
paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer
electronics, packaged food products, soft drinks, tissue paper, and chocolate bars.

India’s FMCG sector is the fourth largest sector in the economy and creates employment
for more than three million people in downstream activities. Its principal constituents are
Household Care, Personal Care and Food & Beverages. The total FMCG market is in
excess of Rs. 85,000 Crores. It is currently growing at double-digit growth rate and is
expected to maintain a high growth rate. A well-established distribution network, low
penetration levels, low operating cost, lower per capita consumption and intense
competition between the organized and unorganized segments characterize FMCG
Industry.

The Rs 85,000-crore Indian FMCG industry is expected to register a healthy growth in

the third quarter of 2008-09 despite the economic downturn. The industry is expected to
register a 15% growth in Q3 2008-09 as compared to the corresponding period last year.
Unlike other sectors, the FMCG industry did not slow down since Q2 2008. the industry
is doing pretty well, bucking the trend. As it is meeting the every-day demands of
consumers, it will continue to grow. In the last two months, input costs have come down
and this will reflect in Q3 and Q4 results.

Market share movements indicate that companies such as Marico Ltd and Nestle India
Ltd, with domination in their key categories, have improved their market shares and

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outperformed peers in the FMCG sector. This has been also aided by the lack of
competition in the respective categories. Single product leaders such as Colgate
Palmolive India Ltd and Britannia Industries Ltd have also witnessed strength in their
respective categories, aided by innovations and strong distribution. Strong players in the
economy segment like Godrej Consumer Products Ltd in soaps and Dabur in toothpastes
have also posted market share improvement, with revived growth in semi-urban and rural
markets.

1.2.2 Swot Analysis

Strengths:
• Low operational costs
• Presence of established distribution networks in both urban and rural areas
• Presence of well-known brands in FMCG sector

Weaknesses:
• Lower scope of investing in technology and achieving economies of scale, especially in
small sectors
• Low exports levels
• "Me-too products, which illegally mimic the labels of the established brands. These
products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities:
• Untapped rural market
• Rising income levels, i.e. increase in purchasing power of consumers
• Large domestic market- a population of over one billion.
• Export potential
• High consumer goods spending

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Threats:
• Removal of import restrictions resulting in replacing of domestic brands
• Slowdown in rural demand
• Tax and regulatory structure

1.2.3 Industry Category and Products

The industry includes the following important category in it.

 Household Care
 Personal Care
 Food & Beverages

1.2.4 Growth Prospect

Large Market
India has a population of more than 1.150 Billions, which is just behind China.
According to the estimates, by 2030 India population will be around 1.450 Billion and
will surpass China to become the World largest in terms of population. FMCG Industry,
which is directly related to the population, is expected to maintain a robust growth rate.

Source: UN Population Division: Medium variant

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Spending Pattern

An increase is spending pattern has been witnessed in Indian FMCG market. There is an
upward trend in urban as well as rural market and an increase in spending in organized
retail sector. An increase in disposable income, of household mainly because of in-crease
in nuclear family where both the husband and wife are earning, has leads to growth rate
in FMCG goods.

Changing Profile and Mind Set of Consumer

People are becoming conscious about health and hygienic. There is a change in the mind
set of the Consumer and now looking at “Money for Value” rather than “Value for
Money”. We have seen willingness in consumers to move to evolved products/ brands,
because of changing lifestyles, rising disposable income etc. Consumers are switching
from economy to premium product even we have witnessed a sharp increase in the sales
of packaged water and water purifier. Findings according to a recent survey by A. C.
Nielsen shows about 71 per cent of Indian take notice of packaged goods labels
containing nutritional information compared to two years ago which was only 59 per
cent..

1.2.5 Market Opportunities

Vast Rural Market
Rural India accounts for more than 700 Million consumers, or 70 per cent of the Indian
population and accounts for 50 per cent of the total FMCG market. The working rural
population is approximately 400 Millions. In addition, an average citizen in rural India
has less then half of the purchasing power as compare to his urban counterpart. Still there
is an untapped market and most of the FMCG Companies are taking different steps to
capture rural market share. The market for FMCG products in rural India is estimated ~
52 per cent and is projected to touch ~ 60 per cent within a year. Hindustan Unilever Ltd
is the largest player in the industry and has the widest market coverage.

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Export - “Leveraging the Cost Advantage”

Cheap labor and quality product & services have helped India to represent as a cost ad-
vantage over other Countries. Even the Government has offered zero import duty on
capital goods and raw material for 100% export oriented units. Multi National Companies
out-source its product requirements from its Indian company to have a cost advantage.
India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew
apart from being the second largest producer of rice, wheat, fruits & vegetables. It adds a
cost advantage as well as easily available raw materials.

1.2.6 Sectoral Opportunities

Major Key Sectoral opportunities for Indian FMCG Sector are mentioned below:

Dairy-Based Products
India is the largest milk producer in the world, yet only around 15 per cent of the milk is
processed. The organized liquid milk business is in its infancy and has large long-term
growth potential. Even investment opportunities exist in value-added products like
desserts, puddings etc.

Packaged Food
Only about 10-12 per cent of output is processed and consumed in packaged form, thus
highlighting the huge potential for expansion of this industry.

Oral Care
The oral care industry, especially toothpastes, remains under penetrated in India with
penetration rates around 50 per cent. With rise in per capital incomes and awareness of
oral hygiene, the growth potential is huge. Lower price and smaller packs are also likely
to drive potential up trading.

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Beverages
Unorganized players dominate Indian tea market. More than 50% of the market share is
capture by unorganized players highlighting high potential for organized players.

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 1.3 ITC PROFILE

ITC is one of India's foremost private sector companies with a market capitalization of
over US $ 22 billion and a turnover of US $ 6 billion.* ITC is rated among the World's
Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by
Forbes magazine, among India's Most Respected Companies by Business World and
among India's Most Valuable Companies by Business Today. ITC ranks among India's
`10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and
published by the Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.

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

ITC employs over 26,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalizing
environment to consistently reward more than 3,46,000 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."

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1.3.1 History and evolution

ITC ltd is celebrating its 100 Inspiring years as on Aug 24 2010. ITC was incorporated
on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the
Company's ownership progressively Indianised, the name of the Company was changed
from Imperial Tobacco Company of India Limited to India.

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

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business. It is today India's most sophisticated packaging
house.

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

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India. Bhadrachalam
Paperboards amalgamated with the Company effective March 13, 2002 and became a
Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this
division merged with the Company's Tribeni Tissues Division to form the Paperboards &
Specialty Papers Division. ITC's paperboards' technology, productivity, quality and
manufacturing processes are comparable to the best in the world. It has also made an
immense contribution to the development of Sarapaka, an economically backward area in
the state of Andhra Pradesh. It is directly involved in education, environmental protection

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and community development. In 2004, ITC acquired the paperboard manufacturing
facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.
The Kovai Unit allows ITC to improve customer service with reduced lead time and a
wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. Since inception, its shares have been held by ITC, British American Tobacco
and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a
subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited
(Surya Nepal).

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

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

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business
Division for export of agri-commodities. The Division is today one of India's largest
exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in
2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4
million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in
August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal
in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the
launch of Expressions range of greeting cards. A line of premium range of notebooks
under brand “Paperkraft” was launched in 2002. To augment its offering and to reach a
wider student population, the popular range of notebooks was launched under brand
“Classmate” in 2003. “Classmate” over the years has grown to become India’s largest
notebook brand and has also increased its portfolio to occupy a greater share of the
school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry

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Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC repositioned the
business as the Education and Stationery Products Business and launched India's first
environment friendly premium business paper under the “Paperkraft” Brand.
“Paperkraft” offers a diverse portfolio in the premium executive stationery and office
consumables segment. Paperkraft entered new categories in the office consumable
segment with the launch of Textliners, Permanent Ink Markers and White Board Markers
in 2009.

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

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

ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in
August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes. In 2002, ITC entered the confectionery and staples segments with the launch of
the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour).

15
2003 witnessed the introduction of Sunfeast as the Company entered the biscuits
segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In
eight years, the Foods business has grown to a significant size with over 200
differentiated products under six distinctive brands, with an enviable distribution reach, a
rapidly growing market share and a solid market standing.

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

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

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body
care products for men and women in July 2005. Inizio, the signature range under
Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for
men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of
bringing world class products to Indian consumers the Company launched 'Fiama Di
Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October
and December 2007 respectively. The Company also launched the 'Superia' range of
Soaps and Shampoos in the mass-market segment at select markets in October 2007 and
Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June
2008.

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1.3.2 Different Brands in ITC

1.3.3 Corporate strategy

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 organisational 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.

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  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 organisation by nurturing talented and
focused top management teams for each of the businesses.
 Continuously strengthen and refine Corporate Governance processes and systems
to catalyse the entrepreneurial energies of management by striking the golden
balance between executive freedom and the need for effective control and
accountability.

1.3.4 Accreditations and Awards

ISO 14001 Certification

 All ITC factories and hotels are ISO 14001 certified, except the two new hotel
properties, ITC Hotel Grand Maratha Sheraton & Towers and ITC Hotel Sonar
Bangla Sheraton & Towers, which are in the process of seeking accreditation.
 ITC’s cigarette factory in Kolkata was the first of its kind in the world to be
certified.
 The Green Leaf Threshing (GLT) plants at Chirala and Anaparti were the first in
the world in their category to get accreditation.
 ITC Hotel Maurya Sheraton & Towers was the first to be certified in the Indian
hotel industry.
 The specialty papers Unit at Tribeni, the Paperboards Unit at Bhadrachalam,
Hotel Mughal Sheraton at Agra and ITC WelcomHotel Chola Sheraton at
Chennai were certified in 2002-03.

OHSAS 18001

The Chirala and Anaparti Units were conferred the Occupational Health and Safety Audit
Systems 18001 accreditation by Messrs. DNV Certification B.V., The Netherlands.

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Swords of Honour from the BritishSafety Council

The Chirala and Anaparti GLTs were conferred in 2002.

The Saharanpur and Munger cigarette factories and the Tiruvottiyur and Munger
packaging Units received five star audit grading in 2002

Environmental Champion Award

The ITC Hotel Maurya Sheraton was conferred this award by the Federation of Hotel &
Restaurant Associations of India (FHRAI) for 2002. It was also the runner-up in the
‘Environmental Excellence’ award given by the International Hotels & Restaurants
Association, Paris.

National Energy Conservation Award

ITC’s paperboards Unit at Bhadrachalam, Andhra Pradesh won the award for the Pulp
and Paper sector, given by the Ministry of Power, Government of India. The Unit also
received the National Energy Management Award from the CII in 2002.

Leader in EHS

The Tiruvottiyur packaging unit was recognised by CII (Southern Region) for
‘Leadership and Excellence in Safety, Health and Environment’.

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 2.1 NEED OF THE STUDY

 Retailers are the main source for any business so their expectation and demand
should be known.

 Retailers demand keeps on changing due to advancement in technology so their

expectation should be tracked on regularly.

 Retailers expectation is useful to improve the features of product.

 On fulfilling the expectation of the retailers, retailers satisfaction can be derived

upon.

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 2.2 SCOPE OF THE STUDY

 The scope is wide because it is based on the retailers expectation so that products
can be improved.

 Since there is intense competition meeting the retailers expectation it becomes a

challenge.

 The study reveals retailers perception towards the product.

 It also reveals the expectation about the frequent supplies and discounts offered to
the retailers and their satisfaction towards it.

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 2.3 OBJECTIVES OF THE STUDY

Primary Objective :

 To study the influence of merchandising activities of retailers in promoting the

products ITC brand.

Secondary Objective:

 To study the effectiveness of promotion strategies in various supermarkets and

departmental stores which the company currently follows.

 To ascertain how point of purchase, in shop display and unique selling

proposition play a role in consumers buying decision.

 To study the retailers expectation regarding the merchandising activities of ITC.

 To find out the impact of sales promotion measures among the retailers

 To identify the market potential of the firms product.

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 2.4 LIMITATIONS OF THE STUDY

Every research undertaken has certain elements of limitations. There were a few
limitations and constraints during the course of study as follows:

 Due to time constraints the survey could be conducted only in Chennai thus the
result obtained cannot be generalized for the entire country

 Some of the respondent found difficult to understand some questions in

questionnaire.

 Lack of interest disposed by a few respondents leading to unauthentic response

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 2.5 REVIEW OF LITERATURE

To ensure sales, companies go to great lengths to make sure that their products
are visible in stores and are presented in an appealing, 'sellable' way. This is called
merchandising, which includes product packaging, placement, promotions and pricing to
appeal to the target market.

Merchandising is the methods, practices, and operations used to promote and

sustain certain categories of commercial activity. In the broadest sense, merchandising is
any practice which contributes to the sale of products to a retail consumer. At a retail in-
store level, merchandising refers to the variety of products available for sale and the
display of those products in such a way that it stimulates interest and entices customers to
make a purchase.

Merchandising, as commonly used in Marketing also means the promotion of

merchandise sales, as by coordinating production and marketing and developing
advertising, display, and sales strategies to increase retail sales. This includes disciplines
in pricing and discounting, physical presentation of products and displays, and the
decisions about which products should be presented to which customers at what time.

Retail merchandising is the process used in order to conduct retail sales. As

part of the process, the merchandiser pays close attention to the types of products offered
for sale, how to best present those products to consumers, and determining what is a
reasonable retail price for each unit sold. While retailers have traditionally engaged in the
task of retail merchandising in a physical location, the Internet has now made it possible

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Promotional merchandising

In retail commerce, visual display merchandising means maximizing

merchandise sales using product design, selection, packaging, pricing, and display that
stimulates consumers to spend more. This includes disciplines in pricing and discounting,
physical presentation of products and displays, and the decisions about which products
should be presented to which customers at what time.

Promotional Products are about long term brand building

A brand can most clearly be defined as "What customers say about you when you're not
there". You don't build a brand because you have low prices. You don't build brand
because you have high prices. You build your brand based on EVERY activity that your
company does: The product you sell, how your customer service rep answer the phone,
the design of your brochures,

You don't build a brand overnight. It takes time and takes lot of patience to nurture what
you want "the customers to say about you when you're not there".
Promotional items and merchandise significantly increases your presence and brand
visibility.

If you are in the business of building, establishing or maintaining a brand in the market
place, you cannot ignore promotional items - it is a part of the marketing mix.

Promotional Products are about competing for visibility

Let's face it - everybody is doing it! Every competitor you face in the market place have
aggressive Promotional Product program in place and if you don't arm yourself with a
great, up to date Promotional program, your brand will suffer.

You need to start thinking about your brand fighting as if fighting for retail space and that
retail space is always being taken up by something or somebody else. The bottom line is -
if you don't take the retail space and build your brand - somebody else will.

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Promotional items are a Price Competitive Alternative to costly marketing

When you are considering Cash Rewards and Gift Cards for promotional activities and
sales campaigns, by including Promotional Merchandise, you will not only drive down
cost and increase brand penetration, but you will be able to measure campaign
performance based on the merchandise selected. If your campaign success can be traced
back to the merchandise, there is your starting grid for measuring ROI!

Promotional Products should take 5 % of your Marketing Budget

A good rule of thumb among marketing executives is to dedicate 5% of your budget to

Promotional Products. You will need to consider filling your stock levels so that you can
support the Sales Force, the Trade Shows and HR, who can benefit from using
promotional products as gifts in employee recognition programs.

One definition of Merchandising is a marketing practice in which the brand or image

from one product or service is used to sell another. It is most prominently seen in
connection with films, usually those in current release and with television shows oriented
towards children.

Trademarked brand names, logos, or character images are licensed to manufacturers of

products such as toys or clothing, who then make items in or emblazoned with the image
of the license, hoping they'll sell better than the same item with no such image.

Merchandising, especially in connection with child-oriented films and TV shows, often

consists of toys made in the likeness of the show's characters or items which they use.
However, sometimes it can be the other way around, with the show written to include the
toys, as advertising for the merchandise. The first major example of this was the TV
show "He-man and the Masters of the Universe," in the early 1980s, but this practice has
been common in children's broadcasting ever since.

Sometimes merchandising from a television show can grow far beyond the original show,
even lasting decades after the show has largely disappeared from popularity (Hello

26
Kitty). In other cases, huge amounts of merchandise can be generated from a pitifully
small amount of source material (Mashimaro).

A smaller niche in merchandising is the marketing of more adult-oriented products in

connection with similarly adult-oriented films and TV shows. This is common especially
with the science fiction and horror genres. (Examples: Star Trek, McFarlane Toys)
Occasionally shows which were intended more for children find a following among
adults, and you can see a bit of a crossover, with products from that show oriented
towards both adults and children. (Gundam model kits)

The most common adult-oriented merchandising, however, is that related to professional

sports teams (and their players).

Sometimes a brand of non-media products can achieve enough recognition and respect
that simply putting its name or images on a completely unrelated item can sell that item.
(An example would be Harley-Davidson branded clothing.)

Retail supply chain

Merchandising at a Walgreens in Chicago

In the supply chain, merchandising is the practice of making products in retail outlets
available to consumers, primarily by stocking shelves and displays. While this used to be
done exclusively by the stores' employees, many retailers have found substantial savings

27
in requiring it to be done by the manufacturer, vendor, or wholesaler that provides the
products to the retail store. In the United Kingdom there are a number of organizations
that supply merchandising services to support retail outlets with general stock
replenishment and merchandising support in new stores. By doing this, retail stores have
been able to substantially reduce the number of employees needed to run the store.
While stocking shelves and building displays is often done when the product is delivered,
it is increasingly a separate activity from delivering the product. In grocery stores, for
example, almost all products delivered directly to the store from a manufacturer or
wholesaler will be stocked by the manufacturer's/wholesaler's employee who is a full
time merchandiser. Product categories where this is common are Beverage (all types,
alcoholic and non-alcoholic), packaged baked goods (bread and pastries), magazines and
books, and health and beauty products. For major food manufacturers in the beverage and
baked goods industries, their merchandisers are often the single largest employee group
within the company. For nationwide branded goods manufacturers such as The Coca-
Cola Company and PepsiCo, their respective merchandiser work forces number in the
thousands.

Effective merchandising

Merchandising is an extension of the selling process whereby the manufacturer seeks to

ensure that the retailer sells his products as quickly and profitably as possible.
Convenience and availability of merchandise is provided by the retail market which are
expensive to achieve by direct selling. The manufacturer gives the retailer assistance to
stimulate demand for his wholesale merchandise and encourage its purchase by the
consumers. Visual merchandising involves the display of stock so that they can easily be
viewed by the consumers. When the retailer sells his varied merchandise fast after it has
been delivered to him by the manufacturer, he will buy another one. Fast moving
merchandise means that both the manufacturer and the retailer are making profits and the
products are meeting consumer needs and satisfaction.

28
 3.1 RESEARCH METHODOLOGY

3.1.1 RESEARCH

According to REDMAN AND MORY research is defined as a “systemized

effort to gain new knowledge”.

3.1.2 RESEARCH METHODOLOGY:

Research methodology is a way to systematically solve the research problem.

Researchers not only need to know how to develop test, how to calculate chi-square,
coefficient of correlation, weighted average ,analysis of variance , how to apply
research techniques , but they also need to know which of these methods or
techniques are relevant and which are not, and what would they mean and indicate
and why. Researchers also need to understand the assumptions underlying various
techniques and they need to know the criteria by which they can decide that certain
techniques and procedure will be applicable to certain problems and others will not.
All this means that it is necessary for the researcher to design his methodology for his
problem as the same may differ from problem to problem

3.1.3 RESEARCH DESIGN:

“A research design is the arrangement of condition for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with
economy in procedure”.

29
3.1.4 METHOD OF DATA COLLECTION

While deciding about the method of data collection to be used for the study, the
researchers should keep in mind two types of data.

• Primary Data – are those, which are collected afresh and for the first time, and
thus happened to be original in character
• Secondary Data – are those which have already been collected by someone else
and which have already been passed through the statistical process.
The type of data collection adopted for this research was primary data. The
methodology adopted to collect the primary data was survey method. Thus, a
sample survey was conducted among those 75 retailers of ITC ltd using the
questionnaire.
The period of survey is June 2010 – August 2010.

3.1.5 PILOT STUDY

The data gathering exercise was begun with a survey pretest analysis. Samples of
35 retailers of ITC ltd were investigated to assess the suitability of the questionnaire
design. Based on the response entertained by them and analysis of the same questionnaire
was found to be suitable for the study.

3.1.6 DIRECT PERSONAL INVESTIGATION

Under this method, the investigator has to meet the retailers personally to get
information. The data obtained by this method are reliable with greater degree of
accuracy

3.1.7 DATA COLLECTION INSTRUMENT

30
In this project, the researcher has used questionnaire for collecting the primary data. The
questionnaire consists of a number of questions typed in a definite order on a form or set
of forms relating to certain specific aspects regarding which the researcher collects the
data. The types of questions used in the questionnaire for the project are

3.1.8 TYPES OF QUESTIONS

• Open-ended questions

Open-ended questions are the type of questions used to get suggestion from
the respondent in order to give feed back to the organization.
• Close-ended questions

Close-ended questions are the type of questions with a clear declined set of
alternatives that confine the respondent to choose one of them. It is of two types
a) Multiple-choice questions
In this type of questions, the respondents are given 4-5 choices in which the
respondents has to select one. For this type of questions, we can apply statistical
tools like Chi-square and weighted average method.
b) Dichotomous questions
In this type of questions, the respondents are given two choices in which
the respondents has to select one. For this type of questions, we can apply
statistical tools like internal estimate method.
c)Ranking
In ranking, questions will have the ranking skill, where the respondents are free to
rank them according to their preference.

3.1.9SAMPLE SIZE:

31
 A sample size of 75 retailers has been considered in order to study the
merchandising effectiveness of the retailers towards the ITC ltd.

3.1.10 STATISTICAL TOOLS USED.

3.1.10.1 Percentage Analysis

Percentage method helps to find out the most preferred choice of attributes by
having 100 as the percentage value. It is the simplest form of calculation that can be used
for comparison of various attributes.

Number of respondents
Percentage = ----------------------------------- * 100
Total respondents
3.1.10.2 Chart

The tables and charts are used mainly for the multiple – choice questions. And
these tables and charts are used to frame the findings. Graphical method is used in order
to represent the factor in various graphical methods like pie chart, column chart, tubes,
cone and cylinder.

3.1.10.3 Chi-square:

Chi-square is a test statistic used to test the significant relationship between the
observed frequencies ant the expected frequencies. Chi-square is a non-parametric test
developed by Karl Pearson. Goodness of fit implies perfect tallying of the observed and
estimated values. In Chi-square, if the observe data and the estimated data do not have
significant difference, that is, the calculated value of χ2 is less than the table value of χ2
at a given degree of freedom), then the estimate is said to be a good fit. If the calculated

32
value of χ2 is greater than the table value of χ2 at a given degree of freedom, then the
estimate is not considered a good fit.

In this method, we test if two attributes considered are dependent or not.

Null Hypothesis Ho : Attributes are independent
Alternative Hypothesis H1: Attributes are not independent
Degrees of Freedom : (Number of rows –1) (Number of columns-1)

( ) 2

χ cal = ∑i=1 
2 n Oi Ei
−

 E i 
Where, O i
= Observed Frequency and E= Expected Frequency
i

3.1.10.4 Interval estimation:

An estimation of a population parameter given by two numbers between which

the parameter may be considered to lie is called as interval estimation of the parameter.

pq
p ± zα
2
n

Where, p is the sample proportion of success, q is the sample proportion of failure, n is

the sample size & z is the standard variants for a given confidence level.

3.1.10.5 Weighted average:

Weighted Average Method is used when the relative importance of the different

items is not the same. The formula for computing weighted average method is,

33
 Σ (Weighted average for the column * No of Respondents in the column)
Net Score =
Total weight

3.1.10.6 Analysis of Variance

It is a statistical technique specially designed to test whether the means of more

than two quantitative populations are equal . It consists of classifying and cross
classifying statistical result and testing whether the means of a specified result
classification differ significantly. The analysis of variance is studied by:

1. Correction factor (CF) = T 2

N
2. Total sum of squares(TSS) = ∑ X12 + ∑X 22+ ∑X 32 + ∑X42 + … + ∑X n 2
− CF
3. Sum of squares of columns (SSC ) =
( ∑ X1 )2 + ( ∑X 2 ) 2+ ( ∑X 3 )2 + … + (∑X n) 2 − CF
N
4. Sum of squares of rows (SSR) =

( ∑ Y1 )2 + ( ∑Y 2 ) 2+ ( ∑Y 3 )2 + … + (∑Yn) 2 − CF
N
5. Sum of squares of error (SSE) = TSS – (SSC + SSR )

6. Construct ANOVA table

7. Calculate the values of F

F1 (for variance between the rows) = Variance between the rows

Residual Variance

34
 F2 (for variance between the columns) = Variance between the columns
Residual Variance

3.2 DATA ANALYSIS AND INTERPRETATION

3.2.1 Table showing the duration of the Respondents associated with

ITC ltd.

No of Percentage of
SL.No No of years respondents respondents
1 Less than 1 Year 5 7
2 1-2 years 6 8
3 2-3 years 6 8
4 3-4 years 15 20
5 More than 5 years 43 57
Total 75 100

(Source: Primary Data)

Findings:
 7 % of the respondents have been associated with ITC for the period of less than 1
Year.
 8 % of the respondents have been associated with ITC for the period of 1-2 Years.
 8% of the respondents have been associated with ITC for the period of 2-3 Years.
 20% of the respondents have been associated with ITC for the period of 3-4
Years.
 57% of the respondents have been associated with ITC for the period of more
than 5 Years

Inference:

35
  The majority of the retailers have been associated with ITC for more than 5 years
and this shows that the company is maintaining good relationship to retain their
retailers.

3.2.1 Chart showing the duration of the Respondents associated with

ITC ltd.

Chart showing the duration of respondents

associated with ITC Ltd

Total

More than 4 years

Percentage of
3-4 years
respondents
No of respondents
2-3 years

1-2 years

Less than 1 Year

0 20 40 60 80 100 120

36
3.2.2 Table showing retailer’s dealing with all the products available
with ITC Ltd

No of Percentage of
SL.No Retailers opinion respondents respondents
1 Yes 25 33
2 No 50 67
Total 75 100

(Source: Primary Data)

Findings:

 33% of the retailers are dealing with all products of ITC.

 67% of the retailers are not dealing with all products of ITC.

Inference:

It is inferred that majority of the retailers are not dealing with all products of ITC.

37
 Chart showing retailers dealership
with ITC

Total

Percentage of
respondents
No
No of respondents

Yes

0 50 100 150

3.2.3 Table showing the satisfaction level of Retailers in Terms of

Dealership

No of Percentage of
SL.No Retailers opinion respondents respondents
1 Highly satisfied 14 16
2 Satisfied 19 22
3 Nether not 44 52
4 Dissatisfied 8 9
5 Highly Dissatisfied 1 1
Total 75 100

(Source: Primary Data)

Findings:

 16% of the retailers expect Credit terms from ITC ltd.

 22% of the retailers expect Frequent supply from ITC ltd.
 52% of the retailers expect discounts and margins from ITC ltd.
 9% of the retailers expect variety of products from ITC ltd.

38
  1% of the retailers expect Financial advisory from ITC ltd.

Inference.

It is inferred that majority of retailers expect discounts and margins from ITC ltd in terms
of dealership.

3.2.4 Table showing the promotional measures offered to Retailers

S.no Promotional Rank Rank Rank Rank Rank Weight Weighted Ranks
measures 1 2 3 4 5 aged average
total
Weights 5 4 3 2 1
1 Occasional 10 13 21 18 13 214 14.26 R3
gifts
2 Free samples 27 15 12 12 9 264 17.6 R2
3 Trade 43 15 7 6 4 312 20.8 R1
discounts
4 Gift coupons 8 6 8 20 33 161 10.73 R5
5 Trade 11 7 15 17 25 187 12.46 R4
promotion
products

(Source: Primary Data)

W1 as 5, W2 as 4, W3 as 3, W4 as 2, W5 as 1

39
Weighted average = Weightage total / total weight.

Weightage total = [(R1*W1) + (R2*W2) + (R3*W3) + (R4*W4) + (R5*W5)]

Findings:
• Retailers have ranked as 1 for trade discounts
• Retailers have ranked as 2 for free samples.
• Retailers have ranked as 3 for occasional gifts.
• Retailers have ranked as 4 for promotional products.
• Retailers have ranked as 4 for gift coupons.

Inference:

It is inferred that majority of retailers have ranked as 1 for trade discounts

40
 3.2.5 Table showing the reason for customer purchase level

Percentage
No of of
SL.No Reasons respondents respondents
You suggest to
1 customers 16 21
They decide and
2 ask for 35 47
3 Point of purchase 24 32
Total 75 100

(Source: Primary Data)

Findings:
• 21 % of the reason is the retailers suggest to customers.
• 47% of the reason is customers decide and ask for the product.
• 32 % of the reason is point pf purchase.

Inference:

It is inferred that majority of the reason is customers decide and ask for the product.

41
Chart showing reasons for customers
purchase

You suggest to
customers
They decide and
ask for
Point of purchase

Total

42
3.2.6 Table showing retailers expectation in terms of dealership

No of Percentage of
SL.No Factors respondents respondents
1 Credit terms 14 19
2 Frequent Supply 13 17
3 Discounts/ Margins 33 44
4 Variety of Products 11 15
5 Financial advisory 4 5
Total 75 100

(Source: Primary Data)

Findings:

 19% of the retailers expect Credit terms from ITC ltd.

 17% of the retailers expect Frequent supply from ITC ltd.
 44% of the retailers expect discounts and margins from ITC ltd.
 15% of the retailers expect variety of products from ITC ltd.
 5% of the retailers expect Financial advisory from ITC ltd.

Inference.
It is inferred that majority of retailers expect discounts and margins from ITC ltd in terms
of dealership.

43
3.2.7 Table showing the satisfaction level of retailers towards the Credit
terms allowed by ITC ltd.

No of
SL.No Satisfaction level respondents
1 Yes 61
2 No 14
Total 75

(Source: Primary Data)

Findings:

• 81% of the retailers are satisfied with the credit terms offered by ITC ltd.
• 19% of the retailers are not satisfied with the credit terms offered by ITC ltd

INTERVAL ESTIMATION

n = Sample Size = 75
NumberOfYe s 61
p= = = 0.81
SampleSize 75

q =1 − p =1 − 0.81 = 0.19

Ζα = 1.96
at 95% confidence level
2

pq (0.81)( 0.19 )
Standard error = = = 0.045
n 75

= [ p Ζ α ( StdError ) ] = 0.81 1.96*0.045 = [0.72, 0.89]

Interval Estimation
2

Conclusion:

44
It is inferred that satisfaction level of retailers with respect to credit terms lies between
72% and 89%

Chart showing the satisfaction level for

credit terms allowed by ITC

Satisfaction level
Yes
No
Total

45
3.2. 8 Table showing the time taken for the delivery of the goods to the
retailers.

No of Percentage of
SL.No Days for delivery respondents respondents
1 Less than a week 47 63
2 1-2 Weeks 21 28
3 More than 2 weeks 7 9
Total 75 100

(Source: Primary Data)

Findings:

• 63% of the retailers feel that it takes less than 1 week for the delivery of the goods
for the consumers.
• 28% of the retailers feel that it takes 1-2 week for the delivery of the goods for the
consumers.
• 9% of the retailers feel that it takes more than 2 weeks for the delivery of the
goods for the consumers.

Inference:
It is inferred that majority of the retailers feel that there is frequent supply of the ordered
goods.

46
 C h art sh o w in g th e tim e taken fo r th e
d elivery o f g o o d s to th e retailers

100

80 Day s for delivery

60 Les s than a week
1-2 W eek s
40
M ore than 2 week s
20 Total

0
No o f re sp o n d e n ts

47
3.2.9 Table showing the satisfaction level for the delivery of the goods to

the retailers on time.

No of Percentage of
SL.No Retailers opinion respondents respondents
1 Strongly agree 9 12
2 Agree 47 61
3 Neither not 14 19
4 Disagree 5 7
5 Strongly Disagree 1 1

(Source: Primary Data)

Findings:

• 12% of the retailers strongly agree that delivery is on time.

• 61% of the retailers agree that delivery is on time.
• 19% of the retailers neither agree nor disagree.
• 7% of the retailers disagree that delivery is on time.
• 1% of the retailers strongly disagree that delivery is on time.

Inference:

It is inferred that majority of the retailers agree that delivery is on time.

48
 Chart show ing satisfaction for delivery
of products on time
respondents
Percentage

Disagree
of

Agree
Retailers opinion
0% 20%40%60%80%100%

49
3.2.10 Table showing the factors affecting the distribution network

No of Percentage of
SL.No Factors respondents respondents
1 Packaging 9 12
2 Transportaion 18 24
3 Distance 22 29
4 Time 14 19
5 Communication 12 16
Total 75 100

(Source: Primary Data)

Findings:

• 12% of the retailers feel that packaging affects distribution network.

• 24% of the retailers feel that transportation affects distribution network.
• 29% of the retailers feel that distance affects distribution network.
• 19% of the retailers feel that time affects distribution network.
• 16% of the retailers feel that communication affects distribution network.

Inference:

It is inferred that majority of the retailers feel that distance affects distribution network.

50
Chart showing the factors that affect
distribution network

Factors
Packaging
Transportaion
Distance
Time
Communication
Total

51
 CHI- SQUARE FOR TESTING THE GOODNESS OF FIT

3.2.11 Table showing the retailers opinion towards the

improvement in their business by selling ITC products

Ho: The retailers opinion about the improvement in their business by selling ITC products
is uniformly distributed.
H1: The retailers opinion about the improvement in their business by selling ITC products
is not uniformly distributed

Oi Ei (Oi-Ei)2 (Oi-Ei)2/Ei
11 15 16 1.06
29 15 196 13.06
22 15 49 3.26
7 15 64 4.26
6 15 81 5.40
χC2al 27.040

( )
n
χcal = ∑ (Oi − Ei ) / E i
2 2

i =1

χ02.05 Cal = 27.040

χ02.05 With 4 =9.49
χ02.05 Cal > χ02.05 table value

Therefore, we reject HO

Conclusion:
Hence, we conclude that retailers opinion about the improvement in their business by
selling ITC products is not uniformly distributed.
.
3.2.12 Table showing the overall satisfaction level of retailers of ITC ltd.

52
 Percentage of
Satisfaction level
Sl.No No of retailers retailers
1 Yes 70 93
2 No 5 7
Total 75 100

(Source: Primary Data)

Findings:
• 93% of retailers are satisfied by dealing with ITC ltd.
• 7% of retailers are not satisfied by dealing with ITC ltd.

Inference:

It is inferred that majority of the retailers are satisfied by dealing with ITC ltd.

Chart showing overall satisfaction level of

retailers of ITC ltd

100

80

60

40

20

0
Satisfaction No
level

3.2.13 Table showing the brand status of ITC Ltd

53
 No of Percentage of
SL.No Retailers opinion respondents respondents
1 Strongly agree 9 12
2 Agree 42 56
3 Neither not 16 21
4 Disagree 6 8
5 Strongly Disagree 2 3
Total 75 100

(Source: Primary Data)

Findings:

• 12% of the retailers strongly agree that ITC enjoys a brand status.
• 56% of the retailers agree that ITC enjoys a brand status.
• 21% of the retailers neither agree nor disagree that ITC enjoys a brand status.
• 8% of the retailers disagree that ITC enjoys a brand status.
• 3% of the retailers strongly disagree that ITC enjoys a brand status.

Inference:

It is inferred that majority of the retailers agree that ITC enjoys a brand status.

54
Chart showing the brand status of ITC
Retailers opinion

Strongly agree

Agree

Neither not

Disagree

Strongly Disagree

Total

55
3.2.14 Table showing the level that retailers would suggest to other
retailers to purchase ITC products

Suggestion
Sl.No level No of retailers Percentage of retailers
1 Yes 68 91
2 No 7 9
Total 75 100

(Source: Primary Data)

Findings:
• 91% of retailers would suggest ITC products to other retailers.
• 9% of retailers would not suggest ITC products to other retailers.

Inference:
It is inferred that majority of the retailers would suggest ITC products to other
retailers.

Chart showing suggestion level of

retailers to other retailers

Suggestion level
Yes
No
Total

56
 3.2.15 Table showing the features of ITC ltd

Factors Very high High Medium Low Very low

Reliable 3 16 5 0 0
Competent 5 11 8 0 0
Efficient 4 10 10 0 0
Creative 6 5 10 3 0
Reasonable 1 7 13 2 1

(Source: Primary Data)

ONE WAY ANOVA

Calculation showing that the features of ITC ltd
Ho: There is no difference between different attributes contributing to brand Image.
H1: There is a difference between different attributes contributing to brand Image.

S.no X1 X2 X3 X4 X5
1 3 5 4 6 1
2 16 11 10 5 7
3 5 8 10 10 13
4 - - - 3 2
5 - - - - 1
Total 24 24 24 24 24

S.no X12 X22 X32 X42 X52

1 9 25 16 36 1
2 256 121 100 25 49
3 25 64 100 100 169
4 - - - 9 4
5 - - - - 1
Total 290 210 216 270 224

STEP: 1
Correction factor = (T) 2/n
T=120 n=18
(120)2/18

57
 = 800
STEP: 2
Total sum of squares
(∑X12+∑X22+∑X32+∑X42+∑X52) - (CF)
(1110) – (800)
=310

STEP: 3
Total sum of squares between the columns
[(∑X1)2/n1+ (∑X2)2/n2+ (∑∑X3)2/n3+ (∑X4)2/n4+ (∑X5)2/n5] – (CF)
[(24)2/3 + (24)2/3 + (24)2/3 + (24)2/4 +(24)2/5] - (800)
= 35.2

STEP: 4
Total sum of squares within the columns
[Total sum of squares – total sum of square between the columns]
= 274.8

ANOVA TABLE
Source of Sum of Degrees of Mean sum of Ratio
variance squares freedom squares
Between the 35.2 4 8.8
columns 2.40
Within the 274.8 13 21.14
columns
Fcal = 2.40
Table value at 5% level of significance = 3.185
Fcal < F0.05 table value
Therefore, we accept Ho.

Conclusion:

58
There is no difference between different attributes contributing to brand Image.

3.3 SUMMARY OF FINDINGS

 The majority of the retailers have been associated with ITC for more than 5 years
and this shows that the company is maintaining good relationship to retain their
retailers.

59
 It is inferred that majority of the retailers are not dealing with all products of ITC.
 It is inferred that majority of retailers expect discounts and margins from ITC ltd
in terms of dealership.
 It is inferred that majority of retailers have ranked as 1 for trade discounts.
 It is inferred that majority of the reason is customers decide and ask for the
product.
 It is inferred that majority of retailers expect discounts and margins from ITC ltd
in terms of dealership.
 It is inferred that satisfaction level of retailers with respect to credit terms lies
between 72% and 89%.
 It is inferred that majority of the retailers feel that there is frequent supply of the
ordered goods.
 It is inferred that majority of the retailers agree that delivery is on time.
 It is inferred that majority of the retailers feel that distance affects distribution
network.
 Hence, we conclude that retailers opinion about the improvement in their business
by selling ITC products is not uniformly distributed.
 It is inferred that majority of the retailers are satisfied by dealing with ITC ltd.
 It is inferred that majority of the retailers agree that ITC enjoys a brand status.
 It is inferred that majority of the retailers would suggest ITC products to other
retailers.
 There is no difference between different attributes contributing to brand Image.

3.3 SUGGESTIONS

 All products can be made available to the retailers.

 Other trade promotion gifts can be given.

60
  The credit terms can be increased.

 Distance factor affects distribution system.

 Packaging can be changed.

A Study on Influence of Merchandising

Activities in Promoting ITC Brands

Name of the store:

61
Name of the Retailer:
Place:

1. How long you have been associated with ITC Ltd?

Less than 1 year 1-2 years 2-3 years 3-4 years More than 5 years

2. Are you dealing with all the products available with ITC Ltd?

Yes No

3. To what extend are you satisfied?

To a very great extent To a great extent To some extent

4. Rank the promotional measures offered to you by ITC quite often?

Occasional gifts Free samples Trade discounts

Gift coupons Trade promotion products

5. Customer purchase ITC products mainly because

You suggest to customers They decide & ask for Point of purchase & display

6. What do you expect from ITC in terms of dealership?

Credit terms Frequent supply Discounts /Margins

Variety of products Financial advisory

7. Are you satisfied with the credit terms allowed by ITC?

Yes No

62
8. How many days does it take to get the ordered goods ?

Less than a week 1-2 weeks More than 2 weeks

9. Delivery of ITC products are always on time

Strongly agree Agree Neither agree nor agree

Disagree Strongly disagree

10. Factor that is mostly affecting the distribution network of ITC products is?

Packaging Transportation Distance Time Communication

11. Your total business is improved by selling ITC products

Strongly agree Agree Neither agree nor agree

Disagree Strongly disagree

12. Rank the various brands dealt by you as per your order of preference

Sunfeast
Ashirvaad
Fiama Di Wills
Wills
Others

13. Overall, are you satisfied in dealing with ITC?

Yes No

14. ITC enjoys a brand status when compared to other brands

Strongly agree Agree Neither agree nor agree

Disagree Strongly disagree

63
 15. Rank the following according to the features of ITC Ltd.

Factors Very High High Medium Low Very Low

Reliability
Competency
Efficiency
Creativity
Successful

16. Would you suggest other retailers to purchase ITC products?

Yes No

17. Suggestions, if any _________________________________

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