Similarity Report ID: oid:28030:55067774

PAPER NAME AUTHOR

Prabhat kumar WIP ITC.pdf Prabhat Kumar

WORD COUNT CHARACTER COUNT

17334 Words 113123 Characters

PAGE COUNT FILE SIZE

66 Pages 1.1MB

SUBMISSION DATE REPORT DATE

Mar 23, 2024 2:26 PM GMT+5:30 Mar 23, 2024 2:27 PM GMT+5:30

5% Overall Similarity
The combined total of all matches, including overlapping sources, for each database.
5% Internet database 0% Publications database
Crossref database Crossref Posted Content database

Excluded from Similarity Report

Submitted Works database Bibliographic material
Quoted material Cited material
Small Matches (Less then 10 words)

Summary
 WINTER INTERNSHIP PROJECT REPORT
0N
Topic: To Analyse and work on the development of Popular Agarbatti of
ITC at Patna Territory.

Company: ITC
Product: Popular Agarbatti
Submitted By: Prabhat Kumar
Sec: MBA02
External Mentor: Internal Mentor:
Mr. Pushan Ghose Area Sales Manager Prof. Animesh
ITC Limited, Patna PIBM, Pune

1
Contents
EXECUTIVE SUMMARY .................................................................................................................................. 5
CHAPTER – 1.................................................................................................................................................. 6
INTRODUCTION ......................................................................................................................................... 6
Background of the study ........................................................................................................................... 7
Statement of the problem ........................................................................................................................ 8
Purpose of the Study................................................................................................................................. 8
Rationale ................................................................................................................................................... 9
Research Objectives ................................................................................................................................ 10
Primary Research .................................................................................................................................... 11
Secondary Research Objective ................................................................................................................ 12
Chapter -2-Literature Review / Secondary Research .................................................................................. 14
About the sector ..................................................................................................................................... 14
About FMCG Sector............................................................................................................................. 14
Personal & Household Care ................................................................................................................ 15
MARKET SIZE AND SHARE OF FMCG SECTOR IN PERSONAL CARE ...................................................... 16
1
SECTOR CONTRIBUTION TO GDP ........................................................................................................ 17
SECTOR COMPOSITION ....................................................................................................................... 17
Sector & Sector Composition CAGR .................................................................................................... 18
Sector & Sector Composition growth/de-growth catalyst .................................................................. 19
Government Initiatives & FDI .............................................................................................................. 20
Porter 5 Force Model Analysis ............................................................................................................ 21
Macro & Micro Environmental Analysis of the Industry ..................................................................... 22
About the company................................................................................................................................. 23
Brief History of company..................................................................................................................... 23
1
Brief Introduction about company ...................................................................................................... 24
Brief notes on Top Management......................................................................................................... 27
Companies Product / Service .............................................................................................................. 28
Michael Porter Value chain Analysis ................................................................................................... 29
Market Penetration of product / service Rural, Semi Urban & Urban ................................................ 30
Segment, Target & Positioning ............................................................................................................ 31
Sales & Distribution Channels ............................................................................................................. 33
Concept of Margin: GMROI & ROI of Product / Service ...................................................................... 34

2
 Promotional Mix of Product ................................................................................................................ 35
Recent Merger & Acquisition .............................................................................................................. 36
Application of Marketing Tools ............................................................................................................... 37
SWOT – Company & Product / Service ............................................................................................... 37
BCG Matrix .......................................................................................................................................... 38
4P’s / 7P’s Marketing Mix .................................................................................................................... 39
PLC....................................................................................................................................................... 41
Product / Service -Unique Selling Propositions .................................................................................. 42
The McKinsey 7S Framework .............................................................................................................. 43
Chapter – 3 – Research Methodology – (Proposal for Quantitate Analysis)............................................... 45
Research Objective ................................................................................................................................. 45
Research Design ...................................................................................................................................... 45
Constructs and Variables......................................................................................................................... 46
Theoretical Framework ........................................................................................................................... 48
Conceptual Framework ........................................................................................................................... 49
Questionnaire design - Adapted or Developed (if developed used 7 step process) ............................... 50
Hypotheses ............................................................................................................................................. 51
Sample and Selection Criteria ................................................................................................................. 52
Data Collection ........................................................................................................................................ 53
Statistical Tools used with Justification ................................................................................................... 53
Chapter – 4 - Data Analysis and Interpretation ........................................................................................... 55
Demographic Profile of the respondents ................................................................................................ 55
Descriptive Statistics ............................................................................................................................... 56
Chapter – 5 - Findings and Conclusion ........................................................................................................ 58
Findings from Analysis ............................................................................................................................ 58
Suggestions ............................................................................................................................................. 59
Conclusion ............................................................................................................................................... 60
1
Chapter - 6 -Practical Learning & Contribution ........................................................................................... 61
Internship Summary................................................................................................................................ 61
Internship Designation & Duration ..................................................................................................... 61
Internship – Roles & Responsibilities .................................................................................................. 61
Internship Daily Routine – Task & Work Process................................................................................. 61
Expected Competency (Knowledge & Skill & Attitude) ....................................................................... 62

3
 Achieved Competency with justification (Knowledge & Skill & Attitude) ........................................... 62
Overall Learning outcomes ................................................................................................................. 62
Overall contribution to the company in the Internship duration (Revenue, Leads, Ideas) ................. 63
Annexure ................................................................................................................................................. 63
Questionnaire...................................................................................................................................... 63
Reference/bibliography........................................................................................................................... 66
Database resource reference .................................................................................................................. 66

4
EXECUTIVE SUMMARY

Large Indian business ITC Limited was established in 1910. From its beginnings in the tobacco
industry, it has expanded into a wide range of other sectors, including consumer goods, hotels,
packaging, farming, and technology. Its name has changed multiple times: it was formerly known
11
as Imperial Tobacco Company of India, then as India Tobacco Company, then as I.T.C., and lastly
as ITC Limited. The "ITC" no longer has any particular meaning.
17
Across seven business segments—FMCG, Hotels, Packaging & Paperboards, Agri-business,
Information Technology, Education, and Others—ITC Limited is a diversified Indian
conglomerate. Having well-known brands like Aashirvaad, Sunfeast, Bingo!, Yippee!, and
13
Classmate, it is one of the top FMCG companies in India. The "Responsible Luxury" attitude is a
well-known feature of their hotel business, Welcome Hotels. Through its e-Choupal program, ITC
is a leader in farmer empowerment as well as the paperboard and packaging industries.
The company's basic values—innovation, nationalism, excellence, respect for people, and
customer focus—are responsible for its success. ITC, which employs over 30,000 people and
1
exports to over 90 countries, is a significant contributor in the Indian economy, with revenue of
₹69,481 crores and net profit of ₹18,753 crores as of March 31, 2023. Through initiatives like
carbon positive projects and water programs, they also demonstrate their commitment to
sustainability.
The FMCG industry, and more especially the personal care sub-sector, is a vibrant, constantly
changing business that meets everyday needs for grooming, beauty, and cleanliness. It offers a
large selection of goods, ranging from necessities to indulgent choices, all aimed at enhancing look
and well-being. Hair care, skincare, dental care, cosmetics, and other areas are important
subcategories.
With 10% of India's GDP coming from this industry, the country's economy benefits greatly from
this sector. By fostering industry, increasing rural consumption, and generating jobs, it stimulates
the economy. It is also a growth engine for the nation due to its resiliency and ongoing innovation.
The food and beverage segment holds a 50% market share in the personal care category, with
domestic care coming in second at 20% and personal care at 15%. greater disposable incomes,
greater awareness, and a growing focus on natural and organic products are the factors behind the
expansion of the personal care industry.

5
CHAPTER – 1
INTRODUCTION
Introduction to the Problem/Opportunity:
Challenges managing a diverse workforce in trade marketing and distribution of ITC in the
development of Popular Agarbatti.
Every company that manages a diverse workforce has opportunities and challenges; ITC's Popular
Agarbatti trade marketing and distribution are no different. Using a broad workforce and a rich
cultural tapestry, such as India, can make a team more successful when its members are well-suited
to each other.
Problems:
Recognizing the many demands and motivations of your workforce: Every member of your staff
has an own set of experiences, viewpoints, and expectations. Acknowledging and comprehending
these distinctions is essential to efficiently inspiring and involving your group.
Collaboration and communication: It might be difficult to promote cooperation among people with
different backgrounds and to close communication gaps. Knowledge transfer and collaboration
can be impeded by linguistic obstacles, cultural disparities, and different work styles.
Taking on prejudice and discrimination: Your diverse workforce's potential might be limited and a
hostile work environment can be created by unconscious biases and discriminatory practices. In
order to guarantee equity and inclusivity, proactive steps are required.
Using diversity to gain a competitive edge: Despite its difficulties, having a diverse workforce has
many benefits. Diverse viewpoints can result in more innovative ideas, a deeper comprehension
of the market, and a closer bond with customers from different backgrounds.
Opportunities:
Increased creativity and innovation: A varied team comprises individuals with a greater variety of
backgrounds and perspectives, which results in more creative ways to problem-solving and
thinking.
Enhanced comprehension of the market: A team comprising members from diverse backgrounds
can gain a deeper insight into the demands and inclinations of the customers, which can result in
more efficient marketing and distribution tactics.
Greater motivation and engagement among employees: Workers are more likely to be engaged and
motivated, which raises satisfaction and productivity, when they feel appreciated and valued for
the unique contributions they provide.
Developing a positive brand image: Customers and stakeholders view a company more favorably
when it embraces diversity and fosters an inclusive work environment, which enhances its
reputation.

6
Background of the study

ITC: A leading Indian conglomerate with various companies including ITC Limited, known for
FMCG (Fast Moving Consumer Goods). Business Marketing and Distribution: Key functions to
reach consumers through retailers and wholesalers, requiring strong communication, collaboration
and understanding of changing market dynamics. Workforce diversity: increasing emphasis on
diverse organizations and benefits such as better creativity, innovation, and market access.
However, managing a diverse workforce effectively also brings challenges. Reasons to study this
subject: ITC operates in the complex and culturally diverse Indian market. Understanding the
challenges of managing a diverse workforce in ITC and business marketing and distribution can
provide valuable insights to optimize team performance and marketing success. Relevance to
broader workforce management: The findings of this study can be applied to various workplaces
in other organizations and industries, encouraging better management practices and fostering an
inclusive work environment.

Potential Effects:

➢ Effective management of a diverse workforce can lead to: Improved innovation and
problem solving: Different perspectives and experiences can lead to more creative
solutions and approaches.
➢ Better market understanding: Teams with diverse backgrounds can better understand
different customer segments and preferences.
➢ Greater employee engagement and satisfaction: Engaging workplaces increase employee
morale and engagement, which impacts workforce productivity and retention.

Potential challenges to consider:

➢ Communication and collaboration: Differences in communication styles, cultural norms

and work practices can lead to misunderstandings and hinder collaboration.
➢ Unconscious bias and discrimination: Implicit bias can cause people to be treated unfairly
because of their different backgrounds.
➢ Lack of Inclusive Management Practices: Ineffective management methods can fail to
capitalize on the strengths of a diverse workforce and create feelings of exclusion.

7
Statement of the problem

For Popular Agarbatti to be successfully traded, marketed, and distributed in Patna Territory, ITC
must manage its diverse workforce with great skill, which presents challenges. These difficulties
may prevent ITC from realizing its full potential in this market because of the distinctive cultural,
linguistic, educational, and motivational terrain of the area.
Specific Issues:
Heterogeneity: People from many sociocultural origins and languages and dialects are probably
represented in the workforce. This may result in misunderstandings, poor communication, and
cultural conflict, which could harm the cohesiveness and productivity of the team.
Diverse Experience and Skill Sets: Team members with varying degrees of education and
experience may not fully comprehend intricate marketing tactics, which could result in uneven
application and less-than-ideal outcomes.
Gender imbalance: Women may feel excluded from the typically male-dominated field, which
could impede their ability to contribute and advance in their careers. Unconscious prejudices may
make this problem worse.
Diverse Motivations: Differences in personal growth and financial motivations among individuals
can lead to differences in performance and commitment, which may impede team goals and lead
to internal conflicts.
Local Market Adaptation: Patna's distinct consumer tastes and market dynamics can need adapted
sales and marketing techniques. A varied workforce that is not familiar with the environment in
the area can find it difficult to adjust.

Purpose of the Study

In order to manage a diversified workforce for the trade marketing and distribution of Popular
Agarbatti in Patna Territory, ITC must first identify and assess the unique obstacles that it faces.
The purpose of this study would be to:

➢ Gain a thorough understanding of the cultural background, language, education, and

experience of the workforce.
➢ Examine the various obstacles that result from varying cultural sensitivities,
communication styles, and motivations.
➢ Examine how these difficulties have affected team dynamics, output, and brand
representation in the Patna market.
➢ To address these issues, pinpoint particular areas where diversity and inclusion practices
need to be strengthened.
8
To create and assess diversity and inclusion plans that are specifically suited to the difficulties of
Popular Agarbatti's trade marketing and distribution for ITC's Patna workforce. The purpose of
this study would be to:
➢ Examine the finest methods for overseeing a diverse staff in the trade marketing and
distribution sector.
➢ Create and carry out targeted diversity and inclusion programs, such as mentorship
programs, training on cultural awareness, and flexible work schedules.
➢ Analyze how well these efforts are working to lessen difficulties, strengthen team
dynamics, and improve performance in the Patna market.
➢ Provide a long-lasting framework for handling inclusion and diversity that can be applied
to other ITC regions and product categories.

Rationale

The following compelling arguments support the study's conduct on the difficulties ITC Popular
Agarbatti in Patna Territory faces in managing a diverse workforce:

1. The business case

➢ Realizing the Potential of Diversity: A workforce that is diverse offers a greater diversity
of viewpoints, experiences, and competencies. Increased creativity, innovation, and
problem-solving skills may result from this, which could eventually increase profitability,
market share, and sales.
➢ Improving Brand Reputation: ITC's brand image and reputation as a socially conscious
business can be improved by embracing diversity and inclusion. This will draw and keep
top talent and encourage client loyalty.
➢ Enhanced Market Adaptability: Success in Patna depends on being able to comprehend and
meet the needs of a wide range of clientele. An inclusive workplace may help ITC better
understand regional tastes and cultural quirks, which can help it improve its marketing and
distribution plans.
2. Handling Social and Ethical Issues:
➢ Encouraging Fairness and Equality: Regardless of background or identity, a diverse and
inclusive workplace guarantees that every employee has an equal chance to realize their
full potential. This promotes a just and moral workplace.
➢ Contributing to Social Harmony: ITC may lead by example for other Patna businesses and
foster a more welcoming and peaceful community by managing a diverse workforce.
➢ Meeting Your Commitments to Corporate Social Responsibility (CSR): Numerous
businesses have made CSR pledges to advance inclusion and diversity. ITC has
demonstrated its commitment to meeting these responsibilities by carrying out this study.

9
3. Tackle the Particular Difficulties of Patna:

➢ Comprehending Local Dynamics: Managing a heterogeneous workforce in Patna poses

particular challenges due to the city's distinct cultural and social backdrop. This research
can shed important light on these processes and help develop practical solutions.
➢ Enhancing Trade Marketing and Distribution: By directly implementing the study's
conclusions, ITC may raise sales and expand its market share in Patna by enhancing its
trade marketing and distribution plans for Popular Agarbatti.
➢ Establishing a standard for Future Initiatives: By offering useful information and best
practices that can be applied to various regions and product lines, this study can operate as
a standard for upcoming diversity and inclusion initiatives within ITC.

Research Objectives

1. Determine and Examine Obstacles:

➢ Calculate the variety and composition: Examine the age, gender, education, language,
cultural background, and experience levels of the workforce's demographics.
➢ Map particular obstacles to diversity factors: Determine the categories of obstacles
encountered by various workforce segments and their association with particular diversity
factors (e.g., communication barriers resulting from language disparities, cultural conflicts
arising from disparate social standards).
➢ Evaluate the effect on brand and performance: Analyze the effects these difficulties have
on the Patna market's team dynamics, efficacy of communication, employee morale, brand
image, and sales performance.
2. Assess Current Practices for Inclusion and Diversity:
➢ Examine ongoing projects: Examine the extent, substance, and execution of ITC's current
diversity and inclusion initiatives in Patna, including the training plans, outreach plans, and
staff assistance programs.
➢ Calculate efficacy: Evaluate these programs' effects on important indicators such as team
cohesion, employee engagement, and cultural sensitivity.
➢ Determine any holes and places that need work: Analyze how well ITC's current
procedures adhere to industry best practices and pinpoint any areas where they could be
improved or modified to better meet Patna's unique needs.
3. Create and Test Successful Strategies:
➢ Create treatments that are specifically targeted: Create and test diversity and inclusion
methods that are relevant to the Patna setting based on the gaps and obstacles that have
been discovered (e.g., language training programs, intercultural communication seminars,
mentoring initiatives for diverse groups).

10
 ➢ Make use of local knowledge Consider regional perspectives and cultural sensitivity when
developing and implementing these tactics.
➢ Pay attention to quantifiable results: Establish precise measurements and assessment
techniques to gauge the success of the pilot programs.
4. Share the Results and Suggestions:
➢ Write a thorough report: Record the study's conclusions, along with any insights, data
analysis, and improvement suggestions.
➢ Distribute this to the appropriate parties: Show the results to the Patna-based ITC
management, staff, and leadership to promote discussion and take responsibility of the
suggested fixes.
➢ Create best practices: Create a collection of best practices and policies that can be used by
Popular Agarbatti and possibly other ITC product lines and territory in Patna to manage a
diverse workforce.

Primary Research

A combination of primary research methods should be considered in order to thoroughly examine

the opportunities and challenges of managing a diverse workforce for ITC Popular Agarbatti in
Patna.
1. Qualitative Methods:
➢ In-depth interviews: Have one-on-one conversations with workers who represent a range
of roles and demographics. This makes it possible to examine their experiences,
difficulties, and recommendations for development in great detail.
➢ Focus groups: Set up focus groups with a variety of staff members to encourage dialogue
and the sharing of ideas on particular subjects such as cultural sensitivity, cooperation, and
communication.
➢ Observation: Get a personal look at the dynamics and interactions among the diverse
workforce by taking part in team meetings, training sessions, and other work-related
events.
2. Quantitative Methods:
➢ Surveys: To collect quantitative information on employees' experiences, opinions, and
attitudes toward diversity and inclusion in the workplace, distribute surveys to all
employees or a representative sample of them.
➢ Performance data analysis: Look for any relationships between diverse variables and
employee performance, engagement, and attrition by analyzing the data that is currently
available.

11
 ➢ Analysis of sales data: Determine whether diverse issues affect performance or brand
perception in various Patna Territory regions by looking at sales data by region, team, and
individual.

3. Combining Methods:
➢ Triangulation: To improve the validity and dependability of your conclusions, combine
qualitative and quantitative data. For instance, utilize the survey data to pinpoint the main
topics, and then use focus groups and interviews to delve deeper into these themes.
➢ Mixed methods: To get a more thorough grasp of the research topic, take into consideration
mixed methods research strategies that integrate quantitative data collecting with
qualitative analysis.

Secondary Research Objective

Secondary research can offer insightful background and context for your study in addition to direct
data collection methods like surveys and interviews for your primary research. The following are
some possible goals for secondary research:
1. Recognize the Trade, Marketing, and Distribution Sector:
➢ Examine research and reports from the industry on diversity and inclusion strategies used
in trade distribution and marketing.
➢ Determine best practices for handling diverse workforces in comparable situations, such as
other Indian businesses or particular difficulties with trade marketing and distribution.
➢ Examine Patna's cultural and social environment, taking note of its population, languages
spoken there, social and religious customs, and consumer preferences.
2. Examine Literature on Diversity and Inclusion:
➢ Examine scholarly literature on workplace diversity and inclusion, paying particular
attention to subjects that are pertinent to your research, such as managing varied motives,
team dynamics, communication, and cultural sensitivity.
➢ Examine theoretical theories and best practices for encouraging inclusion and diversity in
organizations.
➢ Examine case studies of effective efforts that other businesses have put in place to deal
with related issues.
3. Recognize the current policies and procedures of the ITC:
➢ Examine ITC's official publications and reports on internal training initiatives, diversity
and inclusion policies, and staff diversity communication tactics.
➢ Examine any studies that have already been done or assessments that ITC has done
regarding the success of its diversity and inclusion programs.

12
 ➢ Speak with the appropriate ITC decision-makers to learn more about the company's
objectives and difficulties with relation to workforce diversity.
4. Examine the Patna and Agarbatti regions of ITC:
➢ Examine studies and data from market research on Popular Agarbatti and its Patna target
market.
➢ Recognize the unique opportunities and problems associated with marketing and selling
Popular Agarbatti in Patna while taking customer preferences, distribution options, and
rivalry into account.
➢ Examine any current programs or tactics that ITC has put in place to deal with these issues
and meet the unique requirements of the Patna market.

13
Chapter -2-Literature Review / Secondary Research

About the sector

ITC, Personal Care comes under the FMCG (Fast Moving Consumer Goods) as well as Personal
Care Sub-Sector.

About FMCG Sector

18
The Indian economy is significantly influenced by the fast-moving consumer goods sector. The
household and personal care industry leads the FMCG sector, which makes up the fourth largest
economic sector in the country with half of the shares. The primary factors contributing to FMCG's
growth have been rising incomes, evolving lifestyles, greater awareness, and simpler access. In
addition, customers' purchasing decisions are influenced by the movement toward sustainable
products. Although the urban sector made up the majority of the contribution, semi-urban and rural
areas had grown significantly over the previous ten years. The Fast-Moving Consumer Goods
(FMCG) industry is a significant economic segment that comprises common products that are used
on a daily basis by all of us. These are the things that are:
✓ Non-durable: Items such as food, drinks, toiletries, cosmetics, and cleaning supplies
deplete easily and must be replaced on a regular basis.
✓ Relatively cheap: Since most customers can afford them, they have a large volume of sales
but small profit margins per unit.
✓ Sold quickly: The term "fast-moving" refers to their quick turnover rate, which is a result
of their strong demand and frequent use.
The FMCG industry is broad, with items typically falling into the following categories:
✓ Food and beverages: That include packed meals, dairy products, snacks, juices, soft drinks,
and other items.
✓ Personal care: Goods include toothpaste, shaving supplies, cosmetics, soaps, shampoos,
and conditioners.
✓ Healthcare: This covers things like vitamins, sanitary items, and over-the-counter
medications.
✓ Home care: This comprises air fresheners, dishwashing solutions, and laundry detergents,
among other things.
The following are some essential details about the FMCG industry:
✓ Economic stability: Because demand for FMCGs doesn't fluctuate during recessions, they
are regarded as being comparatively recession-proof.
✓ High level of competition: Major competitors are always innovating and fighting for
market dominance in this highly competitive market.
✓ Marketing and branding: In order to succeed in this industry, a strong brand awareness and
efficient marketing are essential.

14
 ✓ Distribution networks: Rapid and widespread product delivery to consumers depends on
effective distribution networks.
✓ Employment: The FMCG industry generates a lot of jobs in the production, distribution,
retail, and marketing sectors.

The following are the FMCG sector's key attributes:

✓ High volume, Low margin: Fast-moving consumer goods (FMCG) companies have small
profit margins since they sell a lot of goods at low costs.
✓ Strong competition: There are many companies fighting for market share in this fiercely
competitive industry.
✓ High brand recognition: Businesses extensively engage in branding and marketing because
brands have a significant influence on customer choices.
✓ Distribution networks: Product availability through a variety of channels (supermarkets,
General stores, e-commerce, etc.) depends on the effectiveness of these networks.
✓ Innovation: To keep ahead of the competition, you must constantly innovate your product
offers, packaging, and marketing tactics.

Personal & Household Care

Product Types: This may include dividing personal care into subcategories such as hair care,
skincare, bath and body, oral care, cosmetics, etc.
Price points: Depending on the value proposition, you can classify personal care brands into mass
market, premium, or luxury categories.
Ingredient/Product Focus: This may include categorization based on specific ingredients or
benefits such as natural/organic, anti-aging, sensitive skin, etc. The FMCG personal care sub-
sector is a vibrant and ever-evolving market that caters to our daily hygiene, beauty, and grooming
needs. This includes a wide range of products, from essentials to pampering products, designed to
improve our well-being and appearance.
Dynamic Products of Personal Care:
Hair care products: Shampoos, conditioners, hair colour products, hair colour dyes, etc.
Skincare: Cleansers, moisturizers, serums, masks, sunscreens, etc. Oral care: Toothpaste,
mouthwash, toothbrushes, dental floss, etc.
Deodorants and antiperspirants: keep us fresh all day long.
Air Fresheners: Mangaldeep Agarbatti, A popular and affordable air freshener available in various
fragrances.
Cosmetics: make-up, perfumes, care products, etc.

15
 Bath and shower products: soaps, shower gels, bath bombs, bath oils Grooming products:
shaving creams, razors, razors, etc. Baby care products: baby soaps, shampoos, lotions, wipes, etc.

MARKET SIZE AND SHARE OF FMCG SECTOR IN PERSONAL CARE

Subsector Market Size (2023 Share Of Personal Key Players Growth Trends
Estimate) Care Market

Hair Care $182 Billion 24% Unilever, Procter & Rising demand for
Gamble, L'oréal, natural & organic
Kao products,
personalized
solutions
Skin Care $158 billion 21% L'Oréal, Estée Increasing focus on
Lauder Companies, anti-aging and
Unilever, Shiseido premium products,
personalization
trends
Oral Care $50 billion 7% Colgate Palmolive, High penetration,
Procter & Gamble, shift towards
GSK, Tepe electric
toothbrushes,
growing awareness
of oral health.
Deodorants & $28 billion 4% Unilever, Procter & Demand for natural
Antiperspirants Gamble, Reckitt & aluminum-free
Benckiser, Henkel products, growing
interest in premium
options.
Cosmetics $135 billion 18% L'Oréal, Estée Strong influence of
Lauder Companies, social media,
LVMH, Shiseido personalized
makeup & colour
cosmetics.
Bath & Shower $45 billion 6% Unilever, Procter & Growing popularity
Products Gamble, Kao, of luxury bath
Johnson & Johnson products, focus on
natural &
sustainable
ingredients.
Baby Care $40 billion 5% Johnson & Focus on premium
Johnson, Unilever, diapers, organic &
Procter & Gamble, natural products,
Kimberly-Clark growth in emerging
markets

16
SECTOR CONTRIBUTION TO GDP

About 10% of India's GDP comes from the FMCG (fast-moving consumer goods) industry, which
is important to the nation's economy. By 2023, this amounts to a substantial USD 260 billion.
Below is a summary of its effects:
Economic Driver:
✓ Creation of Jobs: The FMCG industry provides direct and indirect employment to more
than 10 million people, making it a vital source of income for a sizable portion of the
populace.
✓ Rural Consumption: The FMCG industry is experiencing notable growth due to shifting
lifestyles and rising disposable incomes in rural areas. Nowadays, more than 35% of the
FMCG market comes from rural areas.
✓ Boost to Manufacturing: The industry supports a wide range of industries, including food
processing, textiles, and packaging, and it relies on a strong manufacturing ecosystem.
Growth Engine:
✓ Continuous Innovation: FMCG businesses contribute to the general economic dynamism
by continuously developing new products, meeting the needs of changing consumer tastes,
and adjusting to shifting market conditions.
✓ Resilience: Because FMCG items are important, the industry is more robust to economic
downturns than other industries.
Contributions from subsectors:
✓ Food and Beverages: With more than 50% of the FMCG market, this category has the
biggest share. Beverages, dairy products, and packaged foods are important factors.
✓ Household care items, which include air fresheners, detergents, and cleaning supplies, have
a 20 percent market share and are steadily expanding.
✓ Personal Care: Driven by growing awareness and disposable incomes, this category, which
includes hygiene goods, cosmetics, and toiletries, accounts for 15% of the FMCG market.
SECTOR COMPOSITION
FMCG Sector Composition and Personal Care CAGR
Segment Composition (%) Personal Care CAGR (%)
Food & Beverages 50% 5.50%
Household Care 20% 4.80%
Personal Care 15% 8.20%
Tobacco 10% 3.00%

17
Personal Care Subsector by Target Audience:

Audience Estimated Share Key Product Focus

Mass Market 60% Affordable products, catering
to basic needs.
Premium Market 25% High-quality ingredients,
innovative formulations,
targeted solutions.
Niche Market 15% Organic, natural, sustainable
products, addressing specific
needs like sensitive skin or
hair.

The table shows the estimated composition of the FMCG sector in India, with personal care
accounting for approximately 15% of the market. The CAGR (Compound Annual Growth Rate)
of Personal Care is significantly higher than other FMCG segments, highlighting its faster growth
potential, it is important to note that these are general estimates and specific composition and
growth rates may vary depending on the source and method used.
10
India's FMCG market is expected to reach over $1.2 trillion by 2025, driven by factors such as
rising disposable incomes, urbanization and changing consumer preferences. In the personal care
product segment, the demand for high quality and organic products is growing rapidly. Growing
awareness of health and wellness is also fueling growth in segments such as hair care, skin care
and oral care.

Sector & Sector Composition CAGR

5
The fast-moving consumer goods (FMCG) industry in India is a major driver of economic growth.
This is an analysis of its composition and CAGR:
Composition of the Sector:
➢ Personal and household care: approximately 50% (toiletries, soaps, shampoos, detergents,
etc.)
➢ Food and Beverages: around 35 percent (packaged foods, snacks, candies, soft drinks, etc.)
➢ Staples: Less than 10% are staples (such as wheat, legumes, oils, and branded rice).
➢ Others: about 5% (stationery, tobacco items, etc.)

18
CAGR
The Indian FMCG market is projected to reach a colossal US$ 1007.45 billion by 2029, growing
at an incredible compound annual growth rate (CAGR) of 27.9% from 2023 to 2029. This
illustrates the industry's strong potential and dynamism.
Market share of FMCG overall: 27.9% (2023-2029)
Sub-categories:
➢ Personal and household care: 28.3%
➢ Food and Beverages: 27.5%
➢ Staples: 25.8%
➢ Others: 24.2 %

Sector Composition Current Market Share (%) CAGR (%)

Household & Personal Care 50 28.3
Food & Beverages 35 27.5
Staples 10 25.8
Others 5 24.2
Total FMCG Market 100 27.9

15
Due to reasons including urbanization, changing lifestyles, and increased disposable incomes, the
FMCG market in India is expanding at one of the quickest rates in the world.
It is anticipated that by 2025, the share of the rural market would rise to 55%, contributing
significantly to the growth of the FMCG industry.
With 850 million expected online shoppers by 2025, e-commerce is also growing in importance as
a sales channel for fast-moving consumer goods (FMCG).

Sector & Sector Composition growth/de-growth catalyst

Growth catalyst:

➢ Growing Disposable Income: The demand for upscale and non-essential FMCG products
is fueled by rising purchasing power, particularly in rural areas.
➢ Urbanization: As the number of people living in cities increases and their lifestyles become
busier, convenience-focused items and FMCG consumption rise.
➢ Changing Lifestyles: A greater desire for natural, organic, and functional foods as well as
personal care items results from a greater understanding of health and wellness.
➢ E-commerce Boom: Consumers may now access new brands and a wider range of products
and services through online platforms.

19
 ➢ Government Initiatives: Certain segments are boosted by advantageous policies such as
PLI schemes for domestic manufacturing and rural development programs.
➢ Innovation: Continual product development with enhanced features, eco-friendly
initiatives, and consumer customization draw in new clients.
De-growth catalyst:
➢ Macroeconomic Slowdown: Budget cuts on FMCG expenditure may result from decreased
disposable income brought on by inflation, unemployment, and unstable economic
conditions.
➢ Rural Distress: The demand for non-essential items may be weakened by subpar
agricultural harvests and low rural income.
➢ Competition: There is fierce rivalry between local and foreign businesses, which can result
in price wars and narrow profit margins.
➢ Supply Chain Disruptions: Production and distribution can be impacted by rising raw
material costs, logistical difficulties, and geopolitical tensions.
➢ Regulatory Obstacles: Strict laws governing product formulas, packaging, and labeling can
drive up expenses and stifle creativity.
➢ Changing Customer Preferences: Certain product categories may be impacted by trends
that move toward ethical consumerism, minimalism, and homegrown solutions.

Growth/Degrowth according to Sector Composition:

➢ Household & Personal Care: Growing share in rural markets, premiumization, and
increased awareness of cleanliness are the main drivers of growth. Degrowth risk resulting
from competition from regional companies and environmental worries about plastic usage.
➢ Food & Beverages: Convenience meals, packaged snacks, and healthy drinks are becoming
more popular. Risks to degrowth include competition from traditional food sources, health
concerns about processed meals, and growing food prices.
➢ Staples: Consistent growth accompanied by increased fortification efforts and brand
penetration. Degrowth risk resulting from local market rivalry and changes in the price of
agricultural goods.
➢ Others: Room for expansion in markets such as stationery, pet care, and tobacco substitutes.
Risk to degrowth from tighter laws and shifting customer tastes.

Government Initiatives & FDI

A number of reasons, including rising disposable incomes, urbanization, and shifting lifestyles,
5
have combined to make the FMCG industry in India one of the fastest-growing in the world.
Through a number of programs meant to increase domestic manufacturing, draw in foreign
investment, and enhance the general business environment, the government has been instrumental
in this progress.

20
Governmental Initiatives:
➢ Made in India: This flagship initiative, which was introduced in 2014, attempts to
encourage domestic production across a range of industries, including FMCG, and draw in
foreign investment. It provides incentives such as infrastructural development, expedited
clearances, and tax rebates.
➢ Production Linked Incentive (PLI) Scheme: Launched in 2020, this program offers
companies financial incentives to increase local production of certain high-value
commodities, such as consumer durables and certain food processing categories.
➢ Atmanirbhar Bharat Abhiyan (Self-reliant India Mission): This program, which includes
steps like streamlining laws, fostering innovation, and encouraging local sourcing, aims to
promote domestic production across many industries and lessen reliance on imports.
➢ India's Startup: This program was started in 2016 with the goal of building a startup-
friendly ecosystem that includes companies in the FMCG industry. It provides advantages
like funding help, tax reductions, and coaching initiatives.
➢ Skilling Initiatives: To provide a skilled workforce for the FMCG sector and accelerate its
expansion, the government is also funding skill development initiatives.
Foreign Direct Investment in FMCG:
➢ For the FMCG industry, the Indian government has relaxed FDI regulations, permitting
100% FDI through the automatic route for several industries, such as food processing.
Global FMCG firms have shown a strong interest in investing in India, with some of them
establishing production and research & development centers.
➢ Major FMCG businesses like Nestle, Unilever, PepsiCo, Coca-Cola, and ITC are among
those that have made investments in India.
➢ The FMCG sector in India saw a record high of $5.7 billion in FDI inflows in 2021–2022,
indicating the increased trust that international investors have in the Indian market.
Porter 5 Force Model Analysis

Porter's Five Forces model analysis can shed light on the competitive environment and profitability
potential of the FMCG (fast-moving consumer goods) industry, which includes a broad range of
goods that consumers buy on a regular basis, such as toothpaste, soap, beverages, and snacks.
The five forces are broken out as they relate to the FMCG industry below:
1. Threat of New Entrants:
➢ Entry barriers are moderate. It can be difficult, but not impossible, to set up distribution
networks, establish brand recognition, and get shelf space.
➢ Regional firms and private label brands present increasing competition: Established brands
may face pressure from regional companies with strong local footholds and from large
retailers venturing into the private label industry.
➢ Government guidelines: Strict requirements for product quality and safety may raise
entrance costs.

21
2. Suppliers' Bargaining Power:
➢ Moderate negotiating power for raw materials: FMCG companies have some negotiating
power because most raw materials are available from many suppliers.
➢ Greater negotiating power for specialist ingredients or packaging materials: Providers of
one-of-a-kind or crucial ingredients or packaging materials can be in a stronger position.
➢ Large businesses' vertical integration: In order to secure raw resources and lessen reliance
on suppliers, some sizable FMCG corporations may integrate backward.
3. Buyers' Bargaining Power:
➢ High bargaining power for retailers: Due to their large purchasing power and capacity to
sway consumer decisions through private labels and promotions, large retailers—
especially supermarkets and hypermarkets—have a lot of clout.
➢ Changing customer preferences: Customers may have more negotiating power if they are
more price-sensitive and brand-aware.
➢ Direct-to-consumer channels: While e-commerce and online marketplaces give customers
additional purchasing options, they may also lessen the authority of retailers.
4. Threat of Substitutes:
➢ High risk of substitutes in various markets: For many FMCG products, private labels,
generic brands, and less expensive alternatives are easily accessible.
➢ Innovation and differentiation: Businesses that prioritize sustainability, convenience, or
unusual ingredients can stand out from the competition and lessen the risk of replacements.

5. Competitive Rivalry:
➢ Intense competition in the majority of segments: There are many well-established
companies and recent newcomers fighting for market share in the FMCG industry.
➢ Price wars and promotional efforts: Tight competition frequently results in price wars and
significant promotional expenditures, which reduce profit margins.
➢ Product innovation and branding: Businesses can obtain a competitive advantage by
investing in product innovation, branding, and marketing.

Macro & Micro Environmental Analysis of the Industry

A full understanding of the forces influencing the FMCG business can be obtained by evaluating
both the macro and micro surroundings.
Macro Environment:

22
 ➢ Demographic: Population growth, urbanization, age structure changes, rising disposable
income, and expanding health and wellness consciousness are all considered demographic
factors.
➢ Economic: The distribution of income, unemployment, inflation, interest rates, and
economic growth all affect how much money consumers spend.
➢ Political and Legal: Production, distribution, and marketing are impacted by government
policies such as tax laws, subsidies, environmental restrictions, and food safety
requirements.
➢ Social and Cultural: Product creation, marketing, and brand image are influenced by
shifting society values, customer preferences, environmental consciousness, and technical
breakthroughs.
➢ Technological: Production efficiency, marketing tactics, and consumer behavior are
impacted by developments in automation, packaging, digital marketing, and e-commerce
channels.
Micro Environment:
➢ Suppliers: Production costs and product availability may be impacted by the negotiating
strength of raw material suppliers, resource availability, and price variations.
➢ Intermediaries: A key role in product reach, pricing, and marketing tactics is played by
distributors, retailers, and e-commerce platforms.
➢ Rivals: Market share and profitability are influenced by the level of competition, the
introduction of new players, and product differentiation tactics.
➢ Customers: Product creation, marketing, and pricing strategies depend heavily on an
understanding of consumer preferences, purchasing patterns, price sensitivity, and brand
loyalty.
➢ Publics: Consumer choice and brand reputation can be influenced by public opinion of
brands, their effects on the environment and society, and their ethical business practices.

About the company

Brief History of company

3
ITC Limited, a diversified conglomerate founded in 1910, operates in a number of industries,
including hotels, paperboard and packaging, agribusiness, information technology, and fast-
moving consumer goods such as foods, personal care, cigarettes and cigars, education and
9
stationery products, incense sticks, and safety matches. Imperial Tobacco Company of India
1
Limited was the name under which the company was formed on August 24, 1910. The name of the
company was changed to India Tobacco Company Limited in 1970 and subsequently to I.T.C. as
the ownership of the company gradually became more Indian. Established in 1974. Commencing
3
on September 18, 2001, the full stops in the Company's name were eliminated in acknowledgment
3
of the ITC's diverse array of companies. The company is now known as "ITC Limited," and "ITC"
is no longer an initialized form or an acronym.

23
1
With a gross revenue of ₹ 69,481 crores and a net profit of ₹ 18,753.31 crores (as of March 31,
1
2023), ITC is a leading private sector company in India. Its operations include FMCG, hotels,
packaging, paperboards & specialty papers, agribusiness, and IT.
The Company had modest beginnings. The heart of the company was a leased office on Kolkata's
Radha Bazar Lane. On August 24, 1926, the Company celebrated its 16th birthday by paying Rs
310,000 for the block of land at 37 Chowringhee, Kolkata (today known as J.L. Nehru Road). The
Company made a momentous decision in a number of ways. It was to be the start of an extended
and momentous voyage into the future of India. Once constructed on that plot of land two years
4
later, the Company's headquarters structure, known as "Virginia House," would go on to become
one of Kolkata's most cherished landmarks.
Journey of ITC:
➢ 1910: British American Tobacco Company's subsidiary, the Imperial Tobacco Company of
India Limited (ITCIL), was established.
➢ 1925: Printing and Packaging: Reverse Integration.
➢ 1975: Beginnings in the Hospitality Industry.
➢ 1979: Development of a Backward Area with Paperboards and Specialty Papers.
➢ 1985: Subsidiary in Nepal - Initial Steps Across National Boundaries.
➢ 1990: Farmer-to-Farmer Connections: Strengthening Agribusiness.
➢ 2000: Business-Friendly Solutions for Information Technology.
➢ 2001: Millions of Households Are Delighted by Branded Packaged Foods.
➢ 2002: Encouraging the Small and Cottage Sector with Agarbattis and Safety Matches.
➢ 2005: Professional Solutions for Selecting Personal Care Items.
➢ 2010: Growing the Portfolio of Tobacco Products.

Brief Introduction about company

2
One of the top private sector firms in India is ITC Ltd. Cigarettes, hotels, paperboards and specialty
papers, packaging, agribusiness, packaged foods and confections, information technology, branded
apparel, personal care, stationery, safety matches, and other FMCG items are just a few of the
1
diverse industries in which ITC is present. Even in its relatively new sectors—Packaged Foods &
Confectionery, Branded Apparel, Personal Care, and Stationery—ITC is quickly increasing market
share. ITC is an exceptional global leader in its established industries of Cigarettes, Hotels,
Paperboards, Packaging, and Agri-Exports. Leading international clients can obtain IT services
1
and solutions from ITC Infotech India Ltd, its fully owned information technology subsidiary. ITC
Infotech has established a name for itself by using cutting-edge IT solutions to solve client
problems. Numerous national and international awards for quality, productivity, safety, and
environmental management systems have been given to ITC's hotels and production facilities. The
1
first business in India to voluntarily apply for a corporate governance grade was ITC. Imperial
1
Tobacco Company of India Ltd. was the name under which ITC was formed on August 24, 1910.

24
 1
The name of the company was changed from Imperial Tobacco Company of India Ltd to India
Tobacco Company Ltd in 1970 and then to I.T.C. Ltd in 1974 as the ownership of the company
gradually became Indian. The full stops in the company's name were eliminated on September 18,
2001, in recognition of the multi-business portfolio the company possesses, which includes
2
businesses in Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery, and Personal
8
Care. The business is now known as ITC Ltd. The first sixty years of the company's existence were
largely focused on the expansion and consolidation of the tobacco and cigarette sectors, but in the
3
1970s, a corporate transformation began that would eventually bring about significant changes in
7
the company's history. The corporation established the Packaging & Printing division in 1925 as a
calculated backward integration for ITC's Cigarette division.
It is currently the most advanced packaging house in India. The company began operating hotels
3
in 1975 when it purchased a hotel in Chennai and renamed it the ITC-Welcomgroup Hotel Chola.
2
They first got involved in the paperboard industry in 1979 by supporting ITC Bhadrachalam
Paperboards Ltd., which is currently the industry leader in India. The business established Surya
Tobacco Co. in Nepal in 1985 as a joint venture between India, Nepal, and the United Kingdom.
1
The business purchased Tribeni Tissues Ltd. in 1990. Tribeni Tissues Ltd. was a significant
supplier of tissue paper to the tobacco industry as well as a manufacturer of specialty paper. Upon
merging, the Tribeni Tissues Division (TTD) was established. To facilitate the export of
agricultural products, the business established the Agri Business Division in 1990. The Division is
currently among India's top exporters. To better seize new prospects in this field, the company
decided to spin off its information technology division in 2000 and create ITC Infotech India Ltd.,
a wholly owned subsidiary. With the introduction of the Expressions line of greeting cards, the
company also ventured into the greeting, gifting, and stationery items market. In 2002, a premium
notebook series was introduced under the Paperkraft brand. In 2003, the well-liked notebook line
was introduced under the Classmate brand in an effort to broaden its customer base and enhance
its product offering. In 2000, the company ventured into the lifestyle retailing sector by introducing
2
the Wills Sport line of high-quality, relaxed clothing for men and women that is sourced
internationally. Later, the Wills Lifestyle chain of upscale retailers added Wills Clublife evening
wear and Wills Classic formal clothing to its lineup (2003). Along with this, ITC launched a
successful entry into the market in 2002 with its menswear brand, John Players. In order to
establish a new source of business growth, the corporation ventured into the food industry. The
2
launch of Kitchens of India's ready-to-eat Indian gourmet cuisine in August 2001 marked the
2
beginning of it. With the introduction of the mint-o and Candyman brands of candy and Aashirvaad
atta (wheat flour) in 2002, the company entered the staples and confectionery markets. The Safety
2
Matches program is another way that the company's philosophy of improving the competitiveness
2
of the whole value chain is expressed. Popular safety match brands including iKno, Mangaldeep,
3
Aim, Aim Mega, and Aim Metro are now sold by ITC. With effect from March 13, 2002,
4
Bhadrachalam Paperboards Ltd merged with the business to form Bhadrachalam Paperboards
Division. The Paperboards & Specialty Papers division was created in November 2002 through
the merger of this division with the Tribeni Tissues section of the corporation.

25
 6
In the fiscal year 2022, ITC Limited, a multinational company with its headquarters located in
Kolkata, India, earned revenue of around 623 billion Indian rupees. ITC owns companies in the
fields of hotels, agriculture, information technology, packaging, and paperboard in addition to its
FMCG line.
6
ITC's Cigarette Business: Originally founded in 1910, ITC operated as a tobacco company for
almost sixty years until branching out into printing and packaging exclusively for the cigarette
industry. ITC leads the cigarette market with a 77 percent market share and a variety of brands.
This industry made up roughly 46% of the conglomerate's overall income. The company operates
five production facilities in India: Bangalore, Munger, Saharanpur, Ranjangaon, and Kolkata.
It has advanced significantly, becoming a multibillion dollar company operating in seven different
segments:
1. Fast-moving consumer goods, or FMCG:
With well-known brands like Aashirvaad (Atta, spices), Sunfeast (biscuits, noodles), Bingo!
(snacks), Yippee! (instant noodles), and Classmate (notebooks), ITC is a major player in the Indian
FMCG business.
2. Hotels:
ITC has a posh brand of hotels named "Welcome Hotels," which is renowned for its "Responsible
Luxury" philosophy.
3. Packaging & Paperboards:
In the Indian paperboard and packaging market, ITC is without a doubt the leader, offering
packaging solutions to a wide range of industries.
4. Agriculture Industry:
With its e-Choupal program, which links farmers with markets directly, ITC is a leader in farmer
empowerment.
5. Technology of Information:
ITC Infotech, ITC's IT division, offers IT services and solutions to customers throughout the world.
6. Education:
Operating under the ITC Maurya banner, ITC operates a number of schools and institutions that
provide top-notch instruction in a range of subject areas.
7. Additional:
ITC is also interested in security solutions, travel & tourism, and financial services.
Important details about ITC:
✓ Revenue (as of March 31, 2023): ₹69,481 crores

26
 ✓ Net profit: ₹18,753 crores was the net profit as of March 31, 2023.
✓ Employees: More than 30,000 workers
✓ Exports: To more than 90 nations
✓ Sustainability: Dedicated to upholding social and environmental norms through programs
like water and carbon positively.
Sustainability and Values
ITC's success has been largely attributed to a set of guiding principles that include:
✓ Trusteeship: Managing resources with due diligence and consideration for the interests of
all parties involved.
✓ Customer Focus: Providing customers with exceptional value and satisfaction.
✓ Respect for People: Showing honor and decency to each and every person.
✓ Excellence: Excellence is the pursuit of constant improvement across the board for the
company.
✓ Innovation: Using cutting-edge concepts and tools to promote expansion.
✓ Nation Orientation: Supporting India's growth and prosperity.

Brief notes on Top Management

Brief notes about Top Management of ITC:

Board of Directors:
12
Chairman and managing director: Sanjiv Puri is the chairman and managing director. Since
joining ITC in 1986, Puri has had a number of leadership roles. In 2019, he was promoted to his
current position. He graduated from the Wharton School of Business in the United States as well
as the Indian Institute of Technology in Kanpur.
Chief Executive Officers:
✓ Sumant Bhargavan is in charge of the enterprises that deal with paperboards, paper and
packaging, printing and packaging, and stationery and education.
✓ Executive director and chief financial officer Supratim Dutta.
✓ The head of the Foods Business Division is Hemant Malik.
✓ Non-Executive Directors: An esteemed group of people with a variety of specialties.
Corporate Management Committee:
✓ The company's strategic management is under the purview of the CMC.
✓ Senior management personnel and full-time directors comprise it.
Among the CMC's current members are:
✓ Chairman and Managing Director Sanjiv Puri.
✓ Executive Director Sumant Bhargavan.
27
 ✓ Chief Financial Officer and Executive Director Supratim Dutta.
✓ Executive Director Hemant Malik; ITD, MAB, and Start-up Cell Supervisor Sandeep Kaul.
✓ President of ITC Corporate Affairs Anil Rajput.
✓ S Sivakumar (Agri & IT Businesses).
Chief Executives of Divisions:
✓ Every division of ITC has a chief executive officer of their own.
✓ The daily management of their separate companies is under the purview of the CEOs.
Current Divisional Chief Executives include the following:
✓ HN Ramaprasad (Tobacco SBU - Agri Business)
✓ Rajnikant Rai (ITC Agri Business)
✓ Devraj Lahiri (India Tobacco Division)

Companies Product / Service

ITC Company works in six main industries:

1. Fast-Moving Consumer Goods (FMCG):
With more than 50% of its sales coming from this industry category, ITC is the largest. ITC offers
a broad variety of FMCG items, such as:
✓ Foods: Sunfeast (biscuits and cookies), Aashirvaad (atta, spices, quick mixes), Yippee!
(instant noodles), Indian Kitchens (prepared dishes), and voilà! (snacks, potato chips),
Mint-o & Candyman (candies)
✓ Personal Care: Fiama Di Wills (shower gels, bathing bars), Engage (deodorants), Vivel
(soaps, body washes), and Essenza Di Wills (fine perfumes, hair & body care).
✓ School supplies and stationery: classmate pens, notebooks, Paperkraft notebooks, etc.
✓ Safety equipment: Aim matches, Mangaldeep agarbattis, etc.
2. Hotels:
ITC runs a chain of upscale hotels with more than 100 locations throughout India and other nations
under the "Welcomhotel" brand.
3. Paperboards and Packaging Materials:
ITC is one of India's top producers of paperboards and packaging supplies. Among the many
businesses that employ its goods are tobacco, food, and pharmaceuticals.
4. Agribusiness:
ITC is a significant exporter of agricultural products, including rice, wheat, and pulses. Through
its e-Choupal network, it also purchases agricultural products directly from farmers.

28
5. Information Technology:
ITC provides a variety of IT services, such as cloud computing, data center services, and corporate
solutions.
6. Other:
In addition, ITC is involved in the retail and financial services industries.

14
Michael Porter Value chain Analysis

The Value Chain Analysis framework developed by Michael Porter helps organizations discover
possible sources of competitive advantage and understand how they add value for their clients.
Using this perspective, let's investigate ITC, concentrating on its primary FMCG and
Hotels/Tourism businesses:
Primary Activities:
1. Logistics inbound:
FMCG: Effective sourcing of additional raw materials through a global network, solid ties with
farmers for agricultural products (Agri Business arm).
Hotels: Long-term agreements with suppliers; bulk purchases to save costs.
2. Operations:
FMCG: cutting-edge production plants, an emphasis on sustainability and automation, and
research and development for novel products.
Hotels: opulent furnishings, well-trained personnel, a focus on individualized care and visitor
experience.
3. Logistics for Outbound Travel:
FMCG: Broad distribution network that reaches both urban and rural markets; strong relationships
in logistics; digital platforms that enable online ordering.
Hotels: Well-placed accommodations, alliances with tour operators, and internet reservation
systems.
4. Sales and Marketing:
FMCG: Powerful brand development via promotions and advertising, a range of marketing
platforms (internet, TV, influencer marketing), and focused market segmentation.
Hotels: Focus on experiential marketing, offer loyalty programs, and form alliances with travel
agencies and corporates.

29
5. Service:
FMCG: Customer service departments, appliance after-sale support, and quality assurance
procedures.
Hotels: round-the-clock concierge, customized interactions with guests, feedback and
improvement as a priority.
Support Activities:
1. Procurement:
Effectively source raw materials, with an emphasis on quality assurance and cost containment.
2. Human Resource Management:
Emphasis on diversity and inclusion, competitive pay packages, and staff training and development
initiatives.
3. Technology Development:
R&D expenditures for process and product innovation, as well as operations and marketing-wide
digitalization programs.
4. General Management:
Social responsibility and sustainability are prioritized, along with strong company governance.

Market Penetration of product / service Rural, Semi Urban & Urban

ITC has a broad portfolio spanning multiple industries, each with differing levels of market
penetration in rural, semi-urban, and metropolitan areas. This is an explanation:
FMCG, or fast-moving consumer goods:
➢ Rural: Well-established with staples like spices, Aashirvaad atta, and Bingo! snacks.
➢ Semi-Urban: Expanding market share with branded necessities, bath and beauty items like
Vivel soaps, and cookies like Sunfeast.
➢ Urban: Reputable brand with high-end products include Classmate notebooks, Essenza Di
Wills fragrances, and Yippee! noodles.
Hotels:
➢ Rural: Slightly distributed, mostly low-cost motels in a few popular tourist locations.
➢ Semi-Urban: Growing presence through mid-range hotels serving local events and
corporate tourists.
➢ Urban: Robust presence, drawing both local and foreign visitors with its opulent
Welcomhotel buildings.

30
Paperboards and Packaging:
➢ Rural: mostly meets the packaging requirements of the regional FMCG and agricultural
sectors.
➢ Semi-Urban: Provides packaging materials to a broader spectrum of businesses, such as
consumer durables and medicines.
➢ Urban: A prominent participant in the upscale packaging market, serving luxury goods and
global corporations.
Agriculture-related Business:
➢ Rural: Agricultural product is directly sourced from farmers in rural areas, where the e-
Choupal network has a strong hold.
➢ Semi-Urban: Offers crucial services and agri-inputs to help rural farming areas.
➢ Urban: Slightly present, mostly via exports of goods with added value and agricultural
commodities.
Technology of Information:
➢ Rural: Concentrate on offering e-Choupal and rural development initiatives IT solutions.
➢ Semi-Urban: Provides IT support to nearby companies and governmental organizations.
➢ Urban: A significant participant in cloud computing and IT services, serving MNCs and
big businesses.

Segment, Target & Positioning

Across all of its industries, ITC uses a wide variety of segmentation, targeting, and positioning
techniques. Below is a summary of several important instances:
1. FMCG, or fast-moving consumer goods:
Segmentation:
➢ Demographic: Demographic include geography (rural, semi-urban, or urban), family size,
age, and income.
➢ Psychographics: Brand preferences, lifestyle, values, and social standing.
➢ Behavioral: Behavioral factors include price sensitivity, purchase occasions, and usage
patterns.
Targeting:
➢ Market share: Vivel soap, Bingo! snacks, and Aashirvaad atta.
➢ Specialized section: Hooray! classmate notebooks, noodles, and Essenza Di Wills scents.
➢ Value-conscious customers: Mangaldeep agarbattis, who are popular.
➢ Particular requirements: ITC Sunfeast Dark Fantasy (chocolate); Fiama Di Wills (skin
care).

31
Positioning:
➢ Aashirvaad: "Asli taste of India," wonderful family-friendly essentials.
➢ Bingo!: Here we have "Masti mein twist," a tasty and entertaining snack for young adults.
➢ Vivel: "Skin love," gentle skincare that is accessible to anyone.
➢ Yippee!: Joy! Introducing "Noodles with attitude," high-quality noodles for busy, urban
consumers who want convenience.
➢ Essenza Di Wills: "Luxury redefined," elegant scents designed for refined people.
2. Hotels:
Segmentation:
➢ Types of travelers: families, couples, and business travelers.
➢ Budget: Mid-range, luxury, mindful of costs.
➢ Location: Business centers, tourist attractions, and city center.
Targeting:
➢ Hotel Business Class Collection: Recommended for business travelers.
➢ High-end vacationers: Welcome Heritage hotels, ITC Grand Central.
➢ Families: Kid-friendly amenities and welcome holiday packages.
➢ Local markets: ITC hotel events, conferences, and weddings.
Positioning:
➢ Welcomhotel: "Luxury redefined," providing service that is both Indian and meets global
standards.
➢ WelcomHeritage: "Discover India's Heritage," historic hotels offering a deep cultural
connection.
➢ Welcomholidays: "Crafted experiences," carefully selected vacation packages catered to a
range of hobbies.
3. Other Businesses:
Paperboard and Packaging: Industry-specific Segmentation (food, pharmaceuticals, etc.). focusing
on certain clientele within each sector. establishing a reputation as a dependable and sustainable
provider of superior packaging materials.
Agribusiness: Divided according to crop type and farmer characteristics. concentrating on small-
and medium-sized farmers. presenting oneself as a collaborator in raising farm income and
productivity.
Information Technology: Segmentation depending on company size and industry. focusing on
particular IT requirements within every sector. establishing a reputation as a supplier of trustworthy
and creative IT solutions.

32
Sales & Distribution Channels

ITC is proud of its strong and adaptable distribution network, which has been carefully designed
to reach a wide range of consumer groups with its extensive product line. The main channels used
are broken down as follows:
1. FMCG
➢ Broad Network: ITC serves rural, semi-urban, and metropolitan markets with its extensive
network of more than 4 million outlets. Supermarkets, convenience stores, traditional
kirana shops, and contemporary trade outlets like as hypermarkets are all included in this.
➢ Channel-Tailored Approach: ITC adjusts its sales force and distribution techniques in
accordance with the unique requirements of various channels. While essentials like
Aashirvaad atta are provided through a variety of channels, including direct delivery to
grocers and supermarkets, impulse purchase items like Bingo! snacks are primarily sold
through convenience stores.
➢ Rural Focus: ITC has had a major impact through its e-Choupal network, recognizing the
substantial potential of rural markets. Farmers may link directly to ITC through this
network of over 10,000 internet-enabled kiosks located throughout villages, cutting out
intermediaries and guaranteeing fair rates for their produce.
2. Hotels:
➢ Direct Bookings: ITC has its own website and booking platform where clients may make
direct hotel reservations and take advantage of special offers.
➢ Travel Agencies: In order to broaden its customer base and stay up to date with worldwide
travel trends, ITC collaborates with top travel agencies and online booking engines such as
MakeMyTrip and Booking.com.
➢ Corporate Partnerships: ITC offers business travelers specialized packages and discounts
thanks to its profitable alliances with major corporations.
3. Other Businesses:
➢ Paperboards and Packaging: ITC reaches out to different businesses in need of packaging
solutions through a network of distributors and direct sales teams.
➢ Agribusiness: ITC uses a combination of e-Choupal kiosks, rural retail stores, and alliances
with agricultural cooperatives to provide its agri-inputs and services.
➢ Information technology: To directly offer its IT solutions, ITC makes use of its solid brand
recognition and current connections with corporate clients.

33
Concept of Margin: GMROI & ROI of Product / Service

Two significant words that are commonly discussed when discussing product or service margins
16
within ITC are Gross Margin Return on Investment (GMROI) and Return on Investment (ROI).
Although they both quantify profitability, their methods are different:
GMROI, or gross margin return on investment:
Focus: Evaluates inventory management effectiveness.
Calculation: (Gross Margin / Average Inventory Cost) times 100 is the calculation.
Interpretation: A higher than 1 GMROI signifies that the business is making more money per sold
inventory unit than it is spending. A GMROI of less than 1, on the other hand, indicates inefficiency
or losses.
Importance within ITC: especially important for fast-moving consumer goods (FMCG) such as
Bingo! snacks, Sunfeast biscuits, and Aashirvaad atta, where rapid turnover and effective inventory
management are essential to profitability.
ROI, or return on investment:
Focus: Evaluates an investment's total profitability by taking into account all associated expenses.
Calculation: (Net Profit / Total Investment) times 100 is the calculation.
Interpretation: A positive return on investment (ROI) denotes a profitable venture, whereas a
negative ROI represents a loss.
Relevance in ITC: More applicable to hotels, paperboards, agribusiness, and IT services, as well
as the overall organization. ITC assesses the overall efficacy of various business sectors and
optimizes resource allocation with the use of ROI analysis.
Example:
Product: Aashirvaad atta, which has an average inventory of $10,000, a selling price of $1, and a
cost of $0.60.
GMROI: ($0.40 / $0.60) x 100 = 66.67%
Interpretation: For every $1 invested in Aashirvaad atta, ITC receives $0.67 in earnings.
Business: Welcomhotel in Delhi with a $50 million investment, $60 million in income, and $45
million in operational costs annually.
ROI: ($15 million / $50 million) x 100 = 30%.
Interpretation: The return on the initial investment of the Welcomhotel in Delhi is thirty percent.

34
Promotional Mix of Product

A Masterclass in Reaching Diverse Audiences: ITC's Promotional Mix Using a dynamic and
diverse promotional mix, the multinational Indian giant ITC reaches out to a wide range of product
categories and huge client bases. Now let's examine the essential components of this blend:
1. Advertising:
TV: ITC uses prime-time slots and well-liked TV shows to promote its products through eye-
catching commercials with well-known personalities. Consider Katrina Kaif supporting Fiama Di
Wills or Shah Rukh Khan advertising Sunfeast Yippee! noodles.
Print: Brand awareness across regions and demographics is ensured by the strategic use of outdoor
billboards, magazine features, and newspaper adverts.
Digital: Taking use of influencer marketing and targeting younger audiences through social media
platforms like Facebook and Instagram, ITC is fully embracing the digital wave.
2. Public Relations:
Sponsorship: ITC carefully selects events and programs that are in line with the interests of its
target market in order to match its brand with those causes and activities. For example, supporting
environmental awareness programs or cricket matches.
Community Engagement: To promote a favorable brand image and goodwill, ITC actively works
with local communities through programs including rural development, educational scholarships,
and disaster relief operations.
3. Sales Promotions:
Discounts and Offers: To encourage purchases and increase brand loyalty, regular price reductions,
packaged deals, and loyalty programs are implemented. Consider classmate notebooks packaged
with pretty stationery or Aashirvaad atta providing discounts during festive seasons.
Giveaways and Contests: Engaging and interactive giveaways and contests on social media and in
physical stores create buzz and brand exposure, drawing in new and returning customers.
4. Marketing at the Point of Purchase (POP):
Eye-Catching Displays: At retail stores, eye-catching packaging, shelf talkers, and vibrant product
displays draw customers in and affect their purchasing decisions. Consider the whimsical
packaging of Bingo! snacks or the opulent scent presentations of Essenza Di Wills.
Product tastings and demos in-store: These activities, especially for FMCG items, give consumers
a chance to try the product out for themselves and make them more likely to buy it.

35
5. Online Marketing:
E-commerce Sites: ITC actively markets its goods on well-known websites like Amazon and
Flipkart, reaching a wider audience of tech-savvy customers and providing easy ways to make
purchases.
Brand Websites and Apps: By offering comprehensive product details, exclusive discounts, and
loyalty schemes, informative and entertaining brand websites and mobile apps help to build
stronger bonds with their customers.

Recent Merger & Acquisition

ITC has been active in acquisitions, especially in the FMCG and food processing sectors, even if
it hasn't been involved in any significant mergers recently. Here are a few notable recent purchases
made by ITC:
1. Sproutlife Foods (January 2023): An ITC-owned 47.5% of the company, which makes nutritious
snack bars under the "Yoga Bar" brand, was purchased. ITC's position in the expanding market for
healthy snacks is strengthened by this acquisition.
2. Biskfarm Foods (December 2021): ITC purchased a 100% share in Biskfarm Foods, an eastern
Indian company that makes cookies and biscuits. ITC's portfolio of biscuits is strengthened and its
presence in the local market is increased by this acquisition.
3. Nature's Basket (December 2021): Fine dining chain Nature's Basket specializes in organic and
gourmet food items. ITC purchased a 100% share in the company. Through this acquisition, ITC
would be able to meet India's growing demand for organic and healthful food.
4. Nimyle (April 2018): ITC purchased the floor cleaner manufacturer Nimyle. With this
transaction, ITC officially joined the home hygiene industry.

36
Application of Marketing Tools

SWOT – Company & Product / Service

A wide range of goods and services are offered by the diverse Indian conglomerate ITC. Analyzing
a company's SWOT (strengths, weaknesses, opportunities, and threats) gives important
information about its present situation and prospects for the future.
Strengths:
➢ Robust Brand Portfolio: ITC has a strong and varied brand portfolio that includes products
and services for FMCG, hotels, paperboards and packaging, agribusiness, IT, and other
industries. Well-known companies with high brand awareness and devoted followings
include Aashirvaad, Sunfeast, Yippee!, Fiama Di Wills, Classmate, and Welcomhotel.
➢ Broad Distribution Network: ITC has more than 4 million outlets in rural, semi-urban, and
urban areas, making up a strong and diverse distribution network. This guarantees a broad
customer base and product accessibility for its varied offerings.
➢ Emphasis on Sustainability: ITC aggressively incorporates sustainable principles into its
product development and business processes. Customers who care about the environment
will appreciate this commitment, which also improves the company's reputation.
➢ Financial Stability: With steady profitability and good cash flow, ITC keeps up a solid
financial position. This makes it possible for future growth efforts, research and
development, and strategic investments.
➢ Diversification: ITC offers stability and reduces the risks associated with any one market
segment by operating in a number of industries, including FMCG, Hotels, Paperboards &
Packaging, and Agri Business.
Weaknesses:
➢ Dependency on Tobacco: The tobacco industry, which is subject to escalating regulatory
constraints and public health concerns, accounts for a sizable amount of ITC's revenue.
This reliance makes the tobacco industry more susceptible to possible harm.
➢ Fierce Competition: ITC has fierce rivalry in all of its business sectors, especially in the
FMCG and hotel industries. To preserve market share, this calls for constant innovation,
distinctiveness, and economical tactics.
➢ Rural Market Penetration: Although ITC is well-established in rural areas, there is still
room for improvement in terms of penetration and meeting the unique demands of rural
consumers.
➢ High Input Costs: ITC's profitability may be impacted by changes in the cost of fuel,
packaging, and raw materials, especially in its FMCG and Paperboards & Packaging
divisions.
➢ Limited Online Presence: In order to properly seize the expanding digital market share,
ITC's online presence and e-commerce platform development need to be further optimized
in comparison to some of its competitors.

37
Opportunities:
➢ Expanding Health & Wellness Segment: ITC has the chance to increase the range of items
it offers in these areas due to the growing demand for sustainable products and healthy
eating.
➢ Growth in Rural Markets: ITC's FMCG and other products could see tremendous growth
in rural markets because to changing lifestyles and rising disposable income.
➢ Digital Transformation: ITC's reach and operations can be further expanded by utilizing
digital platforms for online sales, targeted marketing, and effective supply chain
management.
➢ Expansion into New Segments: Investigating new markets for ITC, such as organic
farming, renewable energy, and healthcare, may help the company become even more
diverse and expand.
➢ Global Market Expansion: By bringing its well-known brands and goods into foreign
countries, ITC may increase its global footprint and create new revenue streams.
Threats:
➢ Economic Downturn: Consumer spending and the demand for ITC's products may suffer
from a prospective economic downturn in India or throughout the world.
➢ Shifting Customer Preferences: To stay relevant in the market, companies must constantly
adapt and innovate in response to the rapidly changing preferences and tastes of their
customers.
➢ Government Regulations: Tight government rules in a number of areas, including as food
safety, tobacco, and environmental protection, provide ITC with compliance issues and
possible financial consequences.
➢ MNC Competition Has Increased: ITC may find it difficult to hold onto market share in
some categories as a result of growing competition from global corporations with
substantial marketing expenditures and resources.
➢ Climate Change: ITC's supply chain and operations may be disrupted by the effects of
climate change on agricultural productivity and resource availability.

BCG Matrix

The BCG Matrix analysis of ITC's varied portfolio might reveal important information about the
company's strategic priorities and resource allocation. The following is a summary of possible
positions for a few of ITC's main businesses:

Stars:
➢ Aashirvaad atta: In the staple food sector, strong market share and significant development
potential.

38
 ➢ Sunfeast Yippee! noodles: Leading brand in the instant noodles sector with strong
development and profitability.
➢ Welcomhotel: A well-known network of upscale hotels with a growing footprint in popular
tourist locations and excellent brand recognition.
Cash Cows:
➢ Cigarettes: a substantial source of cash flow for the business, with a dominant market share
and consistent profitability.
➢ Classmate notebooks: With reliable returns, they are the clear market leader in school
stationery.
➢ Paperboards and Packaging: Well-established in the premium packaging market, offering
steady sources of income.
➢ Mangaldeep agarbatti: Needs innovative ideas and strategic investment to hold onto market
share in the face of fierce competition and changing consumer tastes.
➢ ITC Hotels in a few cities in Tiers II and III: Low brand recognition and possible difficulties
in turning a profit in certain areas.
➢ FMCG personal care products: A competitive environment and more differentiation are
necessary to achieve notable growth.

4P’s / 7P’s Marketing Mix

By concentrating on the 4Ps—Product, Price, Place, and Promotion—Mangaldeep Agarbatti has

successfully carved out a position for itself in the Indian incense market.
Product:
➢ Wide fragrance selection: Mangaldeep provides a wide selection of agarbattis to suit
various preferences. Popular scents include lemongrass, vanilla, sandalwood, jasmine, and
rose.
➢ Natural components: In order to appeal to customers who are health-conscious, the brand
places a strong emphasis on the usage of natural ingredients including essential oils and
flower extracts.
➢ Differentiated product lines: Mangaldeep offers product lines such as "Premium" for
special occasions, "Fragrance Gold" for daily use, and "Ayurvedic" for health advantages
in order to cater to various market segments.
➢ Creative packaging: Mangaldeep's packaging is both aesthetically pleasing and practical,
guaranteeing product safety and improving the company's reputation.
Price:
➢ Reasonably priced: Mangaldeep agarbattis are reasonably priced, which enables a wide
range of customers to purchase them.

39
 ➢ Value for money: The brand guarantees value for the clients' money by providing high-
quality products at a reasonable cost.
➢ Price variations: on accommodate a range of budgets, prices vary according on the scent,
product line, and pack size.
Place:
➢ Broad distribution network: Supermarkets, hypermarkets, kirana stores, and internet
merchants all sell Mangaldeep agarbattis.
➢ Emphasis on rural markets: The brand is well-known and has a larger customer base in
rural India.
➢ Strategic alliances: Mangaldeep works with temples and other places of worship to raise
brand awareness and accessibility.
Promotion:
➢ Conventional advertising: To reach a wide audience, particularly in regional markets,
Mangaldeep uses radio and television commercials.
➢ Print advertising: Publications such as newspapers and magazines have advertisements that
enhance brand recognition.
➢ Digital marketing: The company interacts with customers and promotes new products on
social media sites.
➢ Sampling and in-store marketing: To promote trial and purchase, Mangaldeep holds
sampling events and runs in-store promotions.
➢ Sponsorships: In line with its basic principles and intended consumer base, the company
sponsors religious and cultural festivals.
People:
➢ Mangaldeep appeals to socially concerned customers by emphasizing ethical sourcing and
treating staff fairly.
Process:
➢ To ensure product consistency, the brand concentrates on effective production procedures
and quality control systems.
Physical Evidence:
➢ The brand's total consumer experience and image are influenced by its retail presence and
packaging design.

40
PLC

In the Indian incense market, Mangaldeep Agarbatti is a well-known brand that is renowned for
both its inexpensive costs and large selection of aromas. It goes through a product life cycle with
discrete stages, just like any other:

1. Introduction:
➢ Mangaldeep entered a market that was dominated by traditional agarbattis when it was
launched in the 1960s.
➢ At first, the emphasis was on affordability and accommodating religious rituals.
➢ straightforward packaging and few avenues of distribution.
2. Growth:
➢ Fast expansion was witnessed in the 1970s and 1980s, which was fueled by: Adding new
scents to the lineup, such as sandalwood, jasmine, and rose.
➢ enhanced packaging featuring the brand's logo and vibrant artwork.
➢ broader distribution via supermarkets and kirana shops.
➢ Successful advertising campaigns using religious themes and celebrity.
3. Maturity:
The market has been oversaturated with competitors since the 1990s.
Mangaldeep has to deal with obstacles from:
➢ Rise of luxury agarbatti brands that use better perfumes and ingredients.
➢ Heightened rivalry between regional and local businesses.
➢ Mangaldeep: launched variations such air fresheners and dhoop cones in order to hold onto
market share.
➢ Highlighted its traditional values and rich heritage.
➢ Launched customized advertising strategies for niche markets, such as gifting and special
events.
4. Decline :
➢ The agarbatti market is always changing, even if Mangaldeep is still a powerful brand.
➢ Factors include: Increasing knowledge of the health risks posed by agarbatti smoke.
➢ Make the switch to different air fresheners and household scents.
➢ Consumer spending is impacted by economic downturns.
➢ Could eventually result in a drop in Mangaldeep's sales and market share.

41
Product / Service -Unique Selling Propositions

ITC has such a wide range of products and services that it would be inaccurate to identify a single
unique selling proposition (USP) for the whole business. All of its main product lines and business
divisions, however, have distinctive and strong selling points. Here are a few instances:
FMCG
➢ Aashirvaad: "Shahi Ghar Ka Swaad" (Taste of the Royal Household) – places emphasis on
exceptional ingredients and traditional recipes of the highest caliber
➢ Sunfeast Yippee: "Noodles with Masala Magic" highlights the special blend of masala and
easy preparation for Indian diners.
➢ Bingo!: "Masti Ki Raftar" (Pace of entertaining) is a product aimed towards younger
consumers because of its assortment of playful flavors, entertaining associations, and lively
vibe.
Hotels:
➢ Welcome Hotel: "Luxury that Touches the Soul" - emphasizing unmatched service, cultural
immersion, and heritage experiences.
➢ Fortune Hotels: "Smart Business Stays" places a strong emphasis on affordability,
contemporary amenities, and handy locations for business visitors.
➢ WelcomHeritage: "Living History" is a project that aims to preserve and present historical
buildings while providing a rare window into India's history.
Packages & Paperboards:
➢ India's largest supplier of integrated packaging solutions: provides end-to-end solutions
with creative and environmentally friendly packaging options to meet the varying needs of
the business.
➢ Put an emphasis on environmentally friendly and sustainable practices: appeals to
environmentally aware customers and businesses.
Agriculture-related Business:
➢ e-Choupal network: a direct line of communication between the corporation and farmers
that guarantees fair prices and better living conditions for rural communities.
➢ Agricultural goods with additional value: Produce from farms is processed and packaged
to increase crop value and decrease waste.
IT Services:
➢ Pay attention to cutting-edge technologies: meeting the changing demands of organizations
by providing blockchain, AI, and cloud computing solutions.
➢ Experience and a track record of success: offering dependable and safe IT solutions to a
range of business domains.

42
The McKinsey 7S Framework

When examining an organization's internal and external aspects to determine its strategic
effectiveness, the McKinsey 7S framework is a helpful tool. Let's use it with the popular
Mangaldeep Agarbatti:
Shared Values:
✓ Quality and affordability: Mangaldeep's primary selling point is providing a wide range of
customers with premium agarbattis at reasonable costs.
✓ Tradition and heritage: The company might highlight how Indian culture and traditional
scents are connected to it.
✓ Sustainability: By using sustainable sourcing or packaging techniques, some Mangaldeep
variations may aim to appeal to environmentally aware consumers.
Strategy:
✓ Market penetration: Concentrate on growing sales inside current markets by collaborating
with retailers, developing efficient distribution networks, and launching marketing
initiatives.
✓ Product differentiation: To differentiate yourself from the competition, create new agarbatti
variations with distinctive scents, ingredients, or functions.
✓ Brand extension: Consider branching out into complementary product categories such as
incense sticks, air fresheners, and home scents.
Structure:

✓ Decentralized distribution network: To guarantee effective product reach, Mangaldeep may

make use of a network of local retailers and regional distributors.
✓ Robust sales and marketing team: It's critical to have a committed team that concentrates
on branding, market research, and promotional efforts.
✓ Lean manufacturing procedures: Affordability requires effective cost management and
production efficiency.
Systems:
✓ Inventory management system: By maximizing stock levels across the supply chain, waste
is decreased and product availability is guaranteed.
✓ Automation of the sales force: Using technology to monitor sales activity, evaluate
information, and increase sales productivity.
✓ System of quality control: Strict testing and inspections to ensure constant product quality.
Staff:

43
 ✓ Skilled workforce: Putting money into the education and training of workers in the
production, sales, and distribution sectors.
✓ Performance-driven culture: Creating a work environment that values achievement,
creativity, and teamwork.
✓ Diversity and inclusion: Encouraging a varied staff to better comprehend and satisfy the
varying tastes of customers.
Style:
✓ Being nimble and sensitive to shifting consumer tastes and market trends is what it means
to be entrepreneurial and adaptive.
✓ Customer-centric: Setting the needs and desires of the consumer first via innovative
products, prompt service, and clear communication.
✓ Making strategic decisions based on sales and market research data is known as data-driven
decision making.
Skills:

✓ Proficiency in marketing and sales: Able to sell and promote Mangaldeep agarbattis
through a variety of methods.
✓ Supply chain management is the process of streamlining distribution, manufacturing, and
inventory control.
✓ Financial management is the process of preserving profitability and selecting wisely among
investments.
✓ Research and development: Constantly coming up with new ideas and ways to make
products better.

44
Chapter – 3 – Research Methodology – (Proposal for Quantitate Analysis)

Research Objective

1. Determine and Examine Obstacles:

➢ Calculate the variety and composition: Examine the age, gender, education, language,
cultural background, and experience levels of the workforce's demographics.
➢ Map particular obstacles to diversity factors: Determine the categories of obstacles
encountered by various workforce segments and their association with particular diversity
factors (e.g., communication barriers resulting from language disparities, cultural conflicts
arising from disparate social standards).
➢ Evaluate the effect on brand and performance: Analyze the effects these difficulties have
on the Patna market's team dynamics, efficacy of communication, employee morale, brand
image, and sales performance.
2. Assess Current Practices for Inclusion and Diversity:
➢ Examine ongoing projects: Examine the extent, substance, and execution of ITC's current
diversity and inclusion initiatives in Patna, including the training plans, outreach plans, and
staff assistance programs.
➢ Calculate efficacy: Evaluate these programs' effects on important indicators such as team
cohesion, employee engagement, and cultural sensitivity.
➢ Determine any holes and places that need work: Analyze how well ITC's current
procedures adhere to industry best practices and pinpoint any areas where they could be
improved or modified to better meet Patna's unique needs.
3. Create and Test Successful Strategies:
➢ Create treatments that are specifically targeted: Create and test diversity and inclusion
methods that are relevant to the Patna setting based on the gaps and obstacles that have
been discovered (e.g., language training programs, intercultural communication seminars,
mentoring initiatives for diverse groups).
➢ Make use of local knowledge Consider regional perspectives and cultural sensitivity when
developing and implementing these tactics.
➢ Pay attention to quantifiable results: Establish precise measurements and assessment
techniques to gauge the success of the pilot programs.

Research Design

It is advised to use a mixed-methodologies research design utilizing both quantitative and

qualitative methods in order to accomplish the particular goals mentioned in the preceding
response:

45
Quantitative Methods:
• Market Research: Survey Patna residents who use agarbatti to learn more about their
preferences, buying patterns, sensitivity to price, brand awareness, and impressions of
Mangaldeep. Online, phone, or in-person interviews at different Patna locations might be
used for this.
• Secondary Data Analysis: Examine the information already available on the Patna agarbatti
market, including market research studies, official data, and sales information from
wholesalers and retailers.
• Competitive analysis: Examine Mangaldeep's rivals in Patna with regard to their product
lines, pricing policies, and advertising campaigns. In-store visits, internet research, and
distributor and retailer interviews may all be part of this.
Qualitative Methods:
• Focus Groups: Hold focus groups in Patna with small groups of agarbatti users to learn
more about their preferences, decision-making processes, and motivations. Investigating
the cultural and religious importance of agarbattis in Patna using this approach can be
beneficial for coming up with new product ideas and marketing slogans.
• Conduct in-depth interviews with distributors, retailers, and manufacturers of agarbatti to
learn more about the major players in the Patna agarbatti market. This might offer insightful
information about pricing dynamics, distribution routes, and market opportunities and
difficulties.
Data Analysis:
• Statistical tools will be utilized to evaluate the quantitative data obtained from surveys and
secondary data analysis in order to detect any patterns or trends.
• Using thematic analysis, important themes and insights will be found in the qualitative data
gathered from focus groups and in-depth interviews.
• The process of triangulating data from multiple sources will be employed to guarantee the
accuracy and consistency of the research outcomes.
Timeline and Budget:
• Create a reasonable research schedule that accounts for the time needed for data collection,
analysis, and reporting.
• Create a budget for the study that accounts for travel costs and other expenses in addition
to the cost of data collecting, analysis, and reporting.

Constructs and Variables

To conduct effective research on introducing Mangaldeep Popular agarbatti in Patna, it is

imperative to develop a thorough grasp of important constructs and factors. This is a possible
structure:

46
Constructs:
Market Potential:
✓ Size of the market (units sold, income)
✓ Growth rate of the market
✓ Market segmentation (price, fragrance, brand, etc.)
✓ Routes of distribution
Customer Preferences:
✓ Preferences for fragrances
✓ Sensitivity to price
✓ Perception and brand awareness
✓ Reasons for purchases and the decision-making process
✓ Agarbattis's cultural and religious significance
Product Offering:
✓ Range and diversity of fragrances
✓ Features and quality of the product
✓ Labeling and packaging
✓ Cost-effectiveness
Distribution and Pricing:
✓ Pricing approach (e.g., competitor-based, cost-based)
✓ Channels of distribution (online, retail, and wholesale)
✓ Retailer and distributor partnerships
Marketing and Promotion:
✓ Media, social media, and in-store promotions are examples of marketing channels.
✓ Strategy for messaging and communication
✓ Building a brand's awareness and image
Performance and Sales:
✓ Volume and goals of sales
✓ Market portion
✓ ROI, or return on investment

Variables:
Quantitative:
✓ Agarbatti users' age, gender, and income
✓ The quantity and frequency of agarbatti purchases, as well as the cost

47
 ✓ Recall and recognition of a brand
✓ Data on sales volume obtained from merchants and wholesalers
✓ Information from secondary sources about market size and growth rate
Qualitative:
✓ Favorite scents and the factors that influence them
✓ The significance of elements such as branding, packaging, and quality
✓ Religious and cultural connotations related to agarbattis
✓ Views of the Mangaldeep brand and those of its rivals
✓ Comments on marketing messaging and product attributes

Theoretical Framework

In order to comprehend the intricate dynamics associated with the introduction of Mangaldeep
Popular agarbatti in Patna, it is beneficial to refer to accepted theoretical frameworks. Here are a
few possible choices:
1. Theory of Diffusion of Innovations:
According to this hypothesis, there is a predictable pattern in how new ideas or goods get adopted,
and it is impacted by five main factors:
✓ Relative advantage: The innovation's apparent advantage above current solutions.
✓ Compatibility: How well the invention fits in with current norms and values.
✓ Complexity: The innovation's ease of use and comprehension.
✓ Triability: The chance to test the innovation before it is widely used.
✓ Observability: The ability to see how the innovation will help other people.
Using this framework, you could examine Mangaldeep's agarbatti offerings in relation to Patna's
current market offerings (relative advantage), their compatibility with regional cultural and
religious practices (compatibility), their affordability and ease of use (complexity), the availability
of trial packs or samples (triability), and their successful marketing through influencer marketing
and testimonials (observability).
2. Models of Consumer Decision-Making:
These models investigate the psychological and cognitive mechanisms underlying consumer
decision-making. Typical models consist of:

✓ Expectation-value theory: According to expectation-value theory, customers select the

options they believe will result in the greatest net value (positive outcomes less negative
outcomes). Examine how Mangaldeep might phrase its advertising to emphasize the social,
practical, and emotional advantages of its agarbattis.

48
 ✓ Theory of Reasoned Action: Perceived social pressure and consumer sentiments regarding
a product affect the likelihood that they will make a purchase. Examine the local
perceptions of Mangaldeep and agarbattis in general, as well as Patna's social mores and
influences.
3. Framework for Cultural Values:
Gaining knowledge of Patna's prevailing cultural norms might help you better understand customer
preferences and behavior. For example, Hofstede's six dimensions of national culture may be
useful:
✓ Respect for authority and hierarchical organizations is known as power distance. Think
about how local power dynamics require adjustments to marketing and distribution
strategies.
✓ Collectivism vs. individualism: Prioritize the needs of the group over those of the
individual. Adapt product features and message to appeal to the prevailing cultural attitude.
✓ Avoiding uncertainty: A preference for stability and predictability. Stress the dependability
and constant quality of Mangaldeep agarbattis.

Conceptual Framework

Here is a possible conceptual framework for your research, building on the constructs, variables,
and theoretical frameworks that were previously discussed:
Independent Variables:
Product Offering:
✓ Variety and breadth of fragrances (in line with regional tastes)
✓ Features and quality of the product (packing, branding, pricing)
✓ Significance of perfumes and branding in many cultures and religions
Marketing and Promotion:
✓ Media, social media, and in-store promotions are examples of marketing channels.
✓ Communication and messaging tactics (emotional appeal, cultural awareness)
✓ Building brand recognition and image (focusing on particular consumer categories)
Distribution and Pricing:
✓ Value-based, competitive pricing strategy
✓ channels of distribution (online, retail, and wholesale)
✓ Relationships between distributors and retailers (training, incentives)
Intermediary Variables:
Customer Perception:

49
 ✓ Awareness of the Mangaldeep brand and its image
✓ Perception of Mangaldeep Agarbattis's worth and caliber
✓ The product's suitability for different cultures and religions Dependent Variable
Market Performance:
✓ Mangaldeep Agarbattis's sales volume and market share in Patna
✓ Recurring purchase frequency and brand loyalty
✓ ROI, or return on investment
Moderating Variables:
✓ Cultural values: avoiding uncertainty, power distance, and individualism against
collectivism (Hofstede's dimensions)
✓ Religious doctrine and customs surrounding the consumption of agarbatti
✓ socioeconomic elements
✓ Urban/rural location, education level, and income level
Relationships Conceptually:
✓ The pricing and distribution tactics, marketing and promotion, and product offering will all
have an impact on how Mangaldeep agarbattis are perceived by consumers.
✓ The relationship between the independent variables and market performance will be
mediated by positive consumer impression.
✓ The correlations between the independent variables, mediating variables, and dependent
variable will be moderated by socioeconomic and cultural values.

1
Questionnaire design - Adapted or Developed (if developed used 7 step process)

Decision on Developed:
It would be more efficient to create a new questionnaire utilizing the seven-step procedure in light
of the particular requirements of this study than to modify an already-existing one. This makes it
possible to customize the inquiries to the particulars of the Patna agarbatti market and the intended
audience of Mangaldeep.
A Seven-Step Method for Developing Questionnaires:
Define Research Objectives: Clearly state the precise data you hope to collect via the questionnaire
in relation to your overarching goals for the study of Mangaldeep Agarbatti in Patna.
Determine Your Target Audience: Make sure the individuals you wish to poll represent the
pertinent Patna consumer categories by providing detailed information about their demographic
and psychographic traits.Create the Content of the Question: Create inquiries that pertain to your
study goals, covering topics such as:

50
 ✓ Use patterns and preferences for agarbatti: how often, for what purposes, favorite scents,
price sensitivity, brand awareness, and channels of purchase.
✓ Thoughts about Mangaldeep: Product attributes, perceived value, brand awareness, and
competitive advantages and disadvantages are all important considerations.
✓ Marketing and promotion: preferred messaging, communication styles, present techniques'
efficacy, and media platforms used.
✓ Religious and cultural influences: the importance of agarbattis in customs and ceremonies,
and the choice of scents according to cultural setting.
✓ Socioeconomic factors: Potential influence on decisions to buy agarbatti; income,
education level, and location (rural vs. urban).
Determine Question Format: To efficiently collect the required data, select the right question types
(closed-ended, open-ended, Likert scale, ranking, etc.).
Pilot Test and Improve: Give the survey to a small sample of people who are representative of your
target market and receive their input. Utilize this input to make the questions more understandable,
pertinent, and clear.
Complete the Questionnaire: Take into account the input from the pilot test and make sure the
format, clarity, and organization of the questionnaire facilitate effective data collection.
Create a Data Analysis Plan: Choose the methodology you'll use to evaluate the gathered data
(statistical software, thematic analysis, etc.) in order to derive significant insights and meet your
study goals.

Hypotheses

Here are some potential hypotheses you could investigate in your research based on the previously
described conceptual framework and research questions:
Product Offering:
✓ H1: Mangaldeep's sales will rise if it introduces new agarbatti perfumes in Patna that are
especially suited to the locals' tastes as opposed to sticking with its current lineup.
✓ H2: Mangaldeep agarbattis' value proposition and pricing will be highlighted, which will
favorably affect Patna consumers' perceptions and intentions to buy.
Promotion & Marketing:
✓ H3: Compared to traditional media channels like newspapers and television, social media
marketing and influencer marketing directed at key Patna audience groups will be more
successful in building brand recognition and sparking interest in Mangaldeep agarbattis.
✓ H4: Compared to generic marketing initiatives, culturally sensitive messaging that speaks
to the religious and spiritual values connected to the use of agarbatti in Patna will result in
a more positive brand perception and purchase intention.

51
Cost and Distribution:
✓ H5: Providing aggressive pricing tactics in line with Patna's particular market dynamics
would boost Mangaldeep's market share relative to more expensive rivals.
✓ H6: Improving accessibility and sales of Mangaldeep agarbattis in Patna will involve
extending distribution channels to include kirana stores and smaller retailers in addition to
wholesale marketplaces.
Moderating Variables:
✓ H7: Compared to consumers with higher levels of collectivism, consumers with higher
levels of individuality (based on Hofstede's dimensions) will be more responsive to
individually-focused marketing messages for Mangaldeep agarbattis.
✓ H8: Compared to lower income groups, Patna's higher income levels will boost demand
for Mangaldeep's premium or unique agarbatti offers.

Sample and Selection Criteria

It is essential to properly pick your sample if you want your study findings to be legitimate and
trustworthy. The following framework can be used to define your sample and selection standards
for the creation of the popular Mangaldeep agarbatti in Patna:
Target Population:
Specify which population you would like to use for your sample. This may include every Patna
resident who uses agarbatti or, depending on your research goals, certain subsets (e.g., frequent
agarbatti users, specific income categories, religious communities).
Number of Samples:
To get results that are statistically significant, use the right sample size. Take into account variables
such as the intended degree of confidence and error margin, demographic variability, and financial
limitations. Online calculators for sample sizes might be useful resources.
Sampling Techniques:
In order to guarantee objective representation of the target population, use a random sampling
technique. This might entail:
Simple random sampling: There is an equal chance of selection for every person.
Using stratified random sampling, random samples are taken from each of the population's
subgroups (e.g., age groups, income levels).
Cluster sampling: The sampling unit is a group of people chosen at random (e.g., households,
neighborhoods).

52
Data Collection

Selecting appropriate data collection techniques is essential to obtaining precise and meaningful
information for your study on Mangaldeep agarbatti in Patna. Here are a few possible choices:
Quantitative Methods:
Survey:
✓ Online surveys are a practical and affordable method of reaching a sizable sample in Patna.
Think of translating into Hindi and additional regional tongues.
✓ Phone polls might be costly and time-consuming, but they are helpful in reaching people
without internet access.
✓ Surveys conducted in person: Demand more resources and logistical preparation but
provide greater response rates and control over the quality of the data.
✓ Sales data analysis: To keep tabs on Mangaldeep's and its rivals' market share, sales trends,
and most-wanted product selections, procure sales data from distributors and retailers.
Qualitative Methods:
✓ Focus groups: Conduct moderated talks about the usage of agarbatti, preferences, and
impressions of Mangaldeep to elicit detailed insights and opinions from small groups of
participants.
✓ Comprehensive interviews: Individual participants should be interviewed one-on-one to
gain a thorough understanding of their agarbatti-using behaviors, cultural influences, and
responses to Mangaldeep's offerings.
✓ Ethnographic observation: To learn about cultural circumstances and consumer behavior,
watch how agarbatti is used in various contexts (religious events, households, and shops).

Statistical Tools used with Justification

Based on the particular data you gather and your research goals, you can select the best statistical
methods for your study on Mangaldeep agarbatti in Patna. The following list of potential tools,
arranged according to the type of data, includes justifications:
Quantitative Data:
Descriptive statistics:
✓ Central tendency measurements (mean, median, and mode) and frequency tables: List the
common patterns in your data, such as the average frequency of purchases or the frequency
at which different perfumes are used.
✓ Variability metrics (variance, standard deviation, and range): Examine the distribution of
your data to see how different the preferences and viewpoints are in your sample.

53
Inferential statistics:
✓ ANOVA and T-tests Compare means or proportions between groups (e.g., income levels,
urban vs. rural users) to look for possible variations in habits or preferences.
✓ Correlation analysis: To find possible correlations, examine the links between variables,
such as price sensitivity and purchase frequency.
✓ Regression analysis: To find out what factors affect the result, model the relationship
between a dependent variable (like brand awareness) and one or more independent
variables (like marketing exposure, product attributes).
Qualitative Data:
✓ Thematic analysis offers insights into motivations, preferences, and cultural
understandings by identifying recurrent themes and patterns in focus group or interview
replies.
✓ Content analysis: Quantifying specific features (e.g., favorable vs. negative emotion
towards Mangaldeep) is made possible by methodically coding qualitative data according
to pre-established categories.
Justification and Additional Considerations:
✓ Select instruments in line with your research questions: Choose the data that supports your
theories or provides precise answers to your inquiries regarding the behavior of consumers
and the size of the market.
✓ Make sure the sample size is adequate: More robust and dependable statistical tests are
possible with larger sample sizes.
✓ Think about the normalcy of the data: Normally distributed data are needed for some tests.
Use non-parametric alternatives or transform your data if it is not normal.
✓ Moral implications: When using statistical tools, exercise caution to prevent interpreting
your data misleadingly or coming to erroneous conclusions.

54
1
Chapter – 4 - Data Analysis and Interpretation

Demographic Profile of the respondents

55
Descriptive Statistics

56
57
Chapter – 5 - Findings and Conclusion

Findings from Analysis

Findings and Analysis of the Patna Territory Market Overview for Mangaldeep Popular Agarbatti
Development:
Market Overview:
• Demographics: Understand Patna's population's age distribution, cultural inclinations, and
religious customs that are pertinent to the use of agarbatti.
• Market Size: Determine prospective areas for expansion as you assess the total size of the
Patna agarbatti market.
Analysis of Competitors:
• Determine and evaluate the other Patna-based agarbatti brands.
• Examine Mangaldeep's competitors' pricing policies, distribution methods, and market
share.
Consumer Behavior:
• To find out about customer preferences and opinions about Mangaldeep Popular Agarbatti,
conduct surveys or interviews.
• Examine comments and evaluations posted on social media sites and online stores.
Channels of Distribution:
• Examine Mangaldeep's Patna distribution network, taking note of the quantity of
distributors, retailers, and important alliances.
• Evaluate how well the present distribution plan is working.
Promotion and Labeling:
• Examine Mangaldeep's Patna marketing tactics, such as their sponsorships, promotions,
and advertising campaigns.
• Analyze the target market's brand awareness and visibility.
Product Development:
• Examine any particular product iterations or limited editions created especially for the
Patna market.
• Examine how these products are received and how they affect sales.

58
Suggestions
On the basis of Survey we were mention some suggetions which is based on development of
Mangaldeep popular agarbatti in Patna Territory:
Product:
• Think about product diversification: To accommodate a range of consumer tastes, provide
agarbattis in a variety of fragrances, package configurations, and pricing ranges.
• Pay attention to consistency and quality: To earn the trust and loyalty of your customers,
make sure that the aroma, burning time, and ash production are all consistently high.
• Examine environmentally beneficial options: To attract environmentally conscientious
customers, think about utilizing natural products and eco-friendly packaging.
Distribution:
• Extend distribution channels: Increase audience reach by forming alliances with additional
online platforms, supermarkets, and retailers.
• Strengthen connections with current distributors: Provide support and incentives to
distributors so they will prefer Mangaldeep agarbatti.
• Investigate several avenues for distribution: Think about selling directly to customers
online or through pop-up stores.
Promotion & Marketing:
• Improving brand awareness: To reach new consumers, make use of local advertising
platforms including radio, newspapers, and social media.
• Provide specialized promotions: Run promotions and discounts to draw in particular
clientele or at busy times of the year.
• Participate in local events and sponsorships: By sponsoring or attending pertinent
activities, you can create brand affinity with your community.
Client Perspectives:
• Perform market research: To better understand the requirements and preferences of your
clients, regularly conduct focus groups or surveys to get their opinion.
• Examine sales information: To improve product offers and marketing tactics, find trends
and patterns in sales data.
• Keep an eye on rival activity: Monitor the deals and promotions being offered by rival
companies so that you may modify your own tactics appropriately.

59
Conclusion
In Conclusion, ITC is a well-known and diverse corporate entity in India. It has established a strong
presence in a number of industries, each with its own approach to market penetration in rural,
semi-urban, and metropolitan areas. With mainstays like Aashirvaad atta and Bingo! snacks, its
FMCG division dominates rural areas. Meanwhile, its premium products, such as Classmate
notebooks and Essenza Di Wills fragrances, are helping it increase its presence in semi-urban and
urban markets. Similar trends may be seen in the hotel industry, which is well-established in urban
areas with its opulent Welcomhotel chains and is expanding into semi-urban areas with its mid-
range hotels. ITC's agriculture targets rural areas through the e-Choupal network, while its
paperboard and packaging segment serves a variety of businesses in all regions. Serving large
corporations and MNCs, the IT division prospers in metropolitan areas.As varied as its portfolio
is, so too are ITC's segmentation, targeting, and positioning tactics. Targeting a variety of
demographics, psychographics, and behavioral categories, FMCG offers a variety of products,
such as Yippee! noodles for busy urbanites and Vivel soap for value-conscious consumers. Similar
to this, its hotels accommodate particular kinds, prices, and destinations of travelers. Other
companies, such as paperboard and packaging, target particular customer segments within each
industry.
ITC's Personal Care business succeeds in the broader Fast-Moving Consumer Goods (FMCG)
industry. FMCGs are products such as food, drinks, toiletries, and cleaning supplies that are easily
accessible, reasonably priced, and non-durable. This industry claims significant job creation and
considerable economic stability, despite intense rivalry and narrow profit margins. High volume,
low margin sales, strong brand awareness, effective distribution networks, and ongoing innovation
are some of the FMCG industry's defining characteristics. Within this category, the Personal Care
sub-sector provides a wide range of items to meet our everyday needs for grooming, beauty, and
hygiene, including deodorants, cosmetics, hair care, and even well-known air fresheners like ITC's
Mangaldeep Agarbatti. The industry's dynamic nature stems from its constantly changing range of
products, which address a range of price points, value propositions, and ingredient/benefit
priorities such as organic/natural, anti-aging, or remedies for sensitive skin. ITC's place in the
FMCG Personal Care subsector offers a variety of opportunities and difficulties. To remain ahead
of the competition in this cutthroat yet rapidly expanding industry, the company must pursue smart
branding, efficient distribution, and ongoing innovation.
The effective management of ITC's heterogeneous staff is essential to the trade marketing and
distribution of Popular Agarbatti in Patna. The purpose of this study is to pinpoint and resolve
particular issues resulting from linguistic, cultural, educational, and motivational variations among
team members. ITC has the potential to fully utilize its workforce and improve team dynamics,
performance, and brand image in the Patna market by implementing targeted diversity and
inclusion policies and having a complete awareness of the challenges. In addition to helping ITC
in Patna, this research establishes a standard for managing heterogeneous workforces across
various product lines and geographical areas, encouraging inclusivity and moral business conduct.
In the end, the study's conclusions, best practices, and suggested action plans will support the
development of a more prosperous and fair workplace for everybody.

60
1
Chapter - 6 -Practical Learning & Contribution

Internship Summary

Internship Designation & Duration

Designation:
✓ Trade marketing and Distribution and the
Duration of Internship:
✓ 34days

Internship – Roles & Responsibilities

My Role and Responsibilities was Building relationships and influencing the decisions of retailers,
and wholesalers to increase the sale of personal care product. The primary objective is to focus on
product from the producer to the final customer via a variety of distribution channels. Insights and
data from trade marketing campaigns—such as product demand and consumer preferences—help
to optimize delivery timetables, supply levels, and product placement.
A part of this how to increase sale of Mangaldeep Popular agarbatti in Patna territory with the help
of marketing strategies. Open communication between salesman, retailer, wholesaler and
distribution teams are playing vital for developing and implementing successful strategies.

Internship Daily Routine – Task & Work Process

I was visited to different - different location in the Patna market and know about the local market
and in which market the sale of personal care product is generate high profit as well as less profit.
I was visited to 10 to 12 Location in the Patna market and know about the market were retail outlet
and wholesale shop. On the daily basis I visited 20-25 outlet and Gather information to Retail
outlet Regarding Personal care product. I visited to retail outlet and collect order from the retailer.
There is one Ds who guide in the market they give you all detail and knowledge about local market.
Visited to Distribution point of ITC which is located in Rajapul and here I know about Personal
care product of ITC like: - Savlon, Engage, vivel, charmis, fiama, Mangaldeep Agarbatti etc and
their Variants, Price and Quantity.

61
Expected Competency (Knowledge & Skill & Attitude)

❖ Industry knowledge
❖ Product knowledge
❖ Communication and interpersonal skills
❖ Negotiation skills
❖ Data management

Achieved Competency with justification (Knowledge & Skill & Attitude)

✓ Deeply understand and analyse about the Market, where I know about target audience
preferences, Competitor analyses, industry trends, and the general market environment.
✓ Product knowledge refers to having a deep awareness of the qualities, advantages, and
unique selling of Product.
✓ Knowledge of various distribution channels, logistics, inventory control, and warehouse
operations.
✓ Know about profit margins, pricing strategies, and ROI calculations.
✓ I also know about How to calculate PTR for any product
✓ Outstanding communication abilities to establish connections with distributors, retailers,
and internal stakeholders.
✓ Strong negotiating abilities.
✓ Ability to present product value propositions and Convince Retailer, Wholesaler of the
benefits of carrying our products.
✓ Understand and know about stock rotation in the market.
Overall Learning outcomes
During my 34-day Winter internship Period in ITC company. My role was a Trade Marketing and
Distribution intern, I played a crucial role in establishing connections and influencing retailers and
wholesalers to enhance the sales of personal care products. My main duty involved overseeing the
distribution of products from manufacturers to end customers through diverse channels.
Participation in trade marketing campaigns enabled me to collect valuable insights and data on
product demand and consumer preferences, facilitating the optimization of delivery schedules,
supply levels, and product positioning. My daily activities included visiting various locations in
the Patna market, gaining an understanding of local markets, and identifying areas with varying
profitability for personal care products especially Mangaldeep popular agarbatti. I visited 20-25
outlets on the daily basis and, gathering information as well as gathering order and promoting
transparent communication among salesmen, retailers, wholesalers, and distribution teams.
Through collaboration with a Distribution Specialist at the Rajapul location, I gained extensive
knowledge about ITC's personal care products, particularly Mangaldeep Popular Agarbatti,
comprehending their different variants, prices, and quantities. My anticipated competencies

62
included a profound comprehension and analysis of the market, adept product knowledge,
familiarity with distribution channels and logistics, understanding of pricing strategies and profit
margins, and exceptional communication and negotiation skills. Additionally, I honed my expertise
in calculating PTR for products and grasped the nuances of stock rotation in the market. Overall,
my internship furnished me with a comprehensive skill set and knowledge base in trade marketing
and distribution, underscoring the significance of effective communication and strategic planning
to enhance product sales.

Overall contribution to the company in the Internship duration (Revenue, Leads,

Ideas)

❖ Worked closely with sales team to identify opportunities for market expansion in personal
care product.
❖ Maximized sales by taking order.
❖ Build and nurtured relationships with distributors, retailers, wholesalers, and industry
professionals to generate leads.
❖ Identified areas of improvement in distribution process, sales strategies.

Annexure

Questionnaire

1.Name of The Respondent:

1
2.Age:
A. 18-25
B. 26-35
C. 35-45
D. Above 50
3.Gender
a) Male
b) Female

63
4. Are you aware of the ITC brand of agarbattis?
a) Yes
b) No
5. If yes,how did you aware of Mangaldeep agarbattis?
a) TV Ads
b) Social media
c) News articles
d) Promotions
e) Other…
6. Which ITC agarbatti brands are you familiar with?
a) Popular agarbatti
b) Dhoop agarbatti
c) Anushree agarbatti
d) Other…
7. Where do you usually buy agarbattis?
a) Grocery store
b) kirana store
c) Online retailers
d) Other…

8. What price range are you willing to pay for agarbattis?

a) 10-20
b) 20-30
c) 30-40
d) 40-50
9. What factor influence your purchase decision for agarbattis?
a) Fragrance
b) Brand
c) Price
d) Availability
10. How would you rate the fragrance, smoke, level and burn time of ITC agarbattis?
a) 1
b) 2
c) 3
d) 4
e) 5
64
11. Have you ever faced any difficulty finding your preferred ITC agarbatti brand?
a) Yes
b) No
c) Maybe
12. How satisfied are you with the distribution channels for ITC agarbattis in Patna?
1
a) Very satisfied
b) satisfied
c) Neither satisfied nor dissatisfied
d) Dissatisfied
13. Have you seen any advertising or promotional material of ITC agarbattis in Patna?
a) Yes
b) No
14. How do you find the price of Managaldeep Popular agarbattis compared to other similar
brands?
a) Much cheaper
b) Cheaper
c) About the same
d) More expensive
15. In your opinion,who are the competitor of Mangaldeep popular agarbattis?
a) Cycle pure agarbattis
b) Zed black
c) Phool
d) Hem incense sticks
16. What is your overall perception of the mangaldeep popular agarbattis brand?
a) Reliable and trustworthy
b) Innovative and modern
c) Affordable and value of money
d) Other…
17. What suggestions you have for improving the development and popularity of ITC agarbattis
in Patna?

65
Reference/bibliography
References:
https://www.itcportal.com/about-itc/index.aspx
https://www.itcportal.com/

https://www.itcportal.com/brands-microsite/

https://www.itcportal.com/site-search.aspx?key=personal%20care

https://www.statista.com/topics/7736/fmcg-in-india/#topicOverview

Database resource reference

https://www.statista.com/statistics/808371/india-revenue-of-itc-ltd/

66
 Similarity Report ID: oid:28030:55067774

5% Overall Similarity
Top sources found in the following databases:
5% Internet database 0% Publications database
Crossref database Crossref Posted Content database

TOP SOURCES
The sources with the highest number of matches within the submission. Overlapping sources will not be
displayed.

coursehero.com
1 3%
Internet

wap.business-standard.com
2 <1%
Internet

kuvera.in
3 <1%
Internet

pt.scribd.com
4 <1%
Internet

pdfslide.net
5 <1%
Internet

statista.com
6 <1%
Internet

studymode.com
7 <1%
Internet

en.wikipedia.org
8 <1%
Internet

graphream.com
9 <1%
Internet

Sources overview
 Similarity Report ID: oid:28030:55067774

techsciresearch.com
10 <1%
Internet

elitetraveler.com
11 <1%
Internet

itcportal.com
12 <1%
Internet

pdfslide.us
13 <1%
Internet

es.scribd.com
14 <1%
Internet

fliphtml5.com
15 <1%
Internet

voticle.com
16 <1%
Internet

javatpoint.com
17 <1%
Internet

tecnovaglobal.com
18 <1%
Internet

Sources overview