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A Project Study Report On

Summer Training Undertaken at

STUDY AND EVALUATION OF SP AND L OUTLETS in partial fulfillment for the Award of degree of Master of Business Administration

Submitted By: Mohit Khandelwal MBA Part 4th Year 2008-2010

Submitted To:Mr.Prashant Madaan

Gyan Vihar International School of Business Management Jaipur, Rajasthan


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PREFACE
Theoretical study combined with practical knowledge makes the learning meaningful and enables the individual to develop self-confidence because theoretical knowledge is always incomplete without its practical implication like gun without bullet. Seeing the necessity that the student could know and take opportunity for practical exposures of the business world. As a part of course curriculum, summer training is compulsory for all the students of MBA. It is true that work experience in an organization of repute adds an extensive knowledge and exposure to the individual. The practical exposure makes the individual learn about the actual field work. It makes him realize that not only the theory but also the knowledge of the market is as important as the former. During the training period the student learns through this own experience, the real situation of the corporate world and put his theoretical knowledge into practice. This experience is valuable for the student and plays a leading and an important role in his career. The starting days of the training were very difficult but we were full of joy and enthusiasm, and had the spirit to excel. Those days of beginning were devoted to simply understand the product i.e. STUDY AND EVALUATION OF SP AND L OUTLETS coordinating with the office and later on with the team. It was totally a new and different experience for me. Slowly and steadily, as I started learning about the market, I realized that it was not an easy task to do something commendable. Yet, I was determined to achieve my objective. The overall experience, exposure, knowledge and teamwork was a great satisfaction for me. At this point (after the completion of the summer training project. I realized that there is no other and better way to learn the things expect practical experience.

Acknowledgement
I express my sincere thanks to my project guide, Mr. Sunil Dadhich & Vinod Miwani, Area executive (Jaipur Branch) , Deptt TABACCO, for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support they had provided to me with all stages of this project. I would also like to thank the supporting staff Urmila Madam Department, for their help and cooperation throughout our project.

(Signature of Student)

MOHIT KHANDELWAL

CONTENTS
S.NO 1. 1.1 1.2 2. 2.1 2.2 2.3 3. 3.1 3.2 3.3 3.4 3.5 4. 5. 6. 6.1 7. 8. 9. NAME OF TOPIC INTRODUCTION Introduction of the Industry Introduction of the Organization MARKETING STAREGY Marketing Mix Promotion Strategy Research Methodology Title of the Study Duration of the Project Objective of the Study Type of Research Limitation of Study Fact & Finding Analysis & Intervention SWOT Analysis by Graphs Conclusion & Summary Appendix Bibliography & References 37 38 40 42 46 47 52 53 61 65 72 75 24 25 30 6 12 PAGE NO. SIGNATURE

EXECUTIVE SUMMARY

Branch Manager:- Mr. Hemat Singh Rana Area Executive :- Mr. Sunil Dadhich & Vinod Miwani

INTRODUCTION OF THE INDUSTRY


ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. Rated among the World's Best Big Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today, ITC ranks third in pre-tax profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agro-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agro-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards. ITC employs over 20,000 people at more than 60 locations across India. Ranked among India's most valuable companies by the 'Business Today' magazine, ITC continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 4,55,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: " Enduring Value. For the Nation. For the Shareholder. " ITC Ltd today stands as one of Indias largest premiere private sectors in the world with its presence felt in different businesses.

Cigarettes-ITC name in terms of the Cigarette business envelopes a wide range of


popular brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake in terms of its portfolio.
1Paper

Boards- ITC's Packaging & Printing Business is the country's largest convertor

of paperboard into packaging. It was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It also offers a variety of value-added packaging solutions for the food & beverage, personal products, cigarette, liquor,
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cellular phone and IT packaging industries. ITC Paperboards business has a manufacturing capacity of over 360,000 tones per year and is a market leader in India across all carton-consuming segments. Its stationery brands "Paper Kraft" & "Classmate" are widely distributed brands across India.
1Greeting

cards- ITC Greeting & Gifting products include Expressions range of greeting

cards and gifting products.


1Safety

matches- ITC brands of safety matches include Mangaldeep, VaxLit, Delite and

Aim. The Aim is to be the largest selling brand of Safety Matches in India. It also exports premium brands to markets such as Europe, Africa and the USA. It has launched Mangaldeep brand of Aggarbattis with a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood. Mangaldeep is also being exported to USA, UAE, Bahrain, Nepal, Singapore, Malaysia, Oman and South Africa. 1ITC entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening wear (2003). In 2002, ITC entered into the popular segment with its men's wear brand, John Players. In 2005, ITC introduced Essenza Di Wills, an exclusive line of prestige fragrance products.
1FMCG- ITC made its entry into the branded & packaged Foods business in August 2001

with the launch of the "Kitchens of India" brand. In 2002 it expanded into Confectionery, Staples and Snack Foods segments. ITC's brand in Food category include: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and Bingo! ITC's International Business Division (IBD) is the country's second largest exporter of agri-products. ITC exports Feed Ingredients (Soyameal), Food grains (Rice, Wheat, Pulses), Coffee & Spices, Edible Nuts, Marine Products, and Processed Fruits.
1The

E-Choupal Model- ITC has been very effective in tackling the challenges posed
by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries. It has helped farmers overcome the challenges associated with rural farming to a large extend.

1ITC

Hotels- In 1975 the Company launched with the acquisition of a hotel in Chennai
which has been rechristened 'ITC-Welcome group Hotel Sheraton'. Rooted in the concept of creating value for the nation, ITC chose the hotel business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct as well as indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 90 owned and managed properties spread across India, catering to the different needs and choices of travelers from across the world. It stands today as the only Hotel Chain in the world which is known to have an Indian Soul.

2ITC is a board-managed professional company, committed to creating enduring value for

the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of allround value creation is backed by strong corporate governance policies and systems.

In pursuit of international competitiveness, ITC has launched four brands- Checkers, Hi-Val, Royale Classic and Gold Crest - in the extremely competitive US market. ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings cigarettes in the Middle East. ITC's FMCG businesses have one of the largest retail networks in the country, consisting of over 2 million retailers. In June 2002 ITC entered the Confectionery, Staples and Snack foods Segments. In just five years, the Foods business has grown to a significant size with 100 differentiated products, five distinctive brands, an enviable distribution reach, a rapidly growing market share and a solid market standing. The Foods business is today represented in 4 categories in the market. These are: 1) 2) 3) 4) Ready To Eat Foods Staples Confectionery Snack Foods

THE ITC VISION


Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders

THE ITC MISSION


To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

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INTRODUCTION OF THE ORGANIZATION


The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. India is one of the largest emerging markets, with a population of over one billion.

Period production and yield of tobacco in India


Period 1975/76 1980/81 1985/86 1990/91 1994/95 1995/96 1996/97 1997/98 Area (000 ha) 368 452 397 385 381 395 432 464 Production(000 Unit yield tone) 350 481 441 563 567 535 599 646 950 1 065 1 111 1 353 1 486 1 356 1 386 1 393 (kg/h) 29.8 33.7 39.9 43.2 45.3 n.a.(1) n.a.(1). n.a.(1) Proportion with irrigation (%)

Notes: (1) n.a. = not available. ITC is the market leader in cigarettes in India, with its wide range of invaluable brands; it has a leadership position in every segment of the market. Its highly popular portfolio of brands include Insignia, India kings, Classic, Gold flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.
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ITC's share of filter cigarettes in the country is more than 70%. In pursuit of international competitiveness, ITC has launched four brands - Checkers, HiVal, Royale Classic and Gold Crest - in the extremely competitive US market. Recently ITC has launched Royale Classic, Gold Cut and Scissors Filter Kings cigarettes in the Middle East. ITC's FMCG businesses have one of the largest retail networks in the country, consisting of over 2 million retailers. ITCs extensive India-wide distribution network enables its greeting cards reach over 12,000 multi brand outlets in over 700 cities nationally. In the last three years, 10,000 greeting card designs have reached these outlets with the help of a web-enabled ecommerce model. The company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investment in product design, innovation, manufacturing technology, quality, marketing and distribution. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards. The tobacco sector contributes to the States economies through crop production and to the exchequer through excise duty, as well as from their share in the net central excise duties. Tobacco cultivation is concentrated in three states: Andhra Pradesh, Gujarat and Karnataka. The additional excise duties on tobacco, which is distributed only among tobacco growing states, increased from Rs 3 477 million in 1979/80 to Rs 18 532 million in 1999/2000. During the fiscal years 1995 to 1998, the State Governments received annually 47.5 percent of the net proceeds of union excise duty levied on a number of commodities, including on tobacco products. It amounted to around Rs 240000 million annually, of which the share from the tobacco sector is estimated to have been around 9 percent. These are an important source of revenue for the States.

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I n d u s t r y S t r u c t u r e An a l y s i s : GPI(Four square & cigars).

Threats from Substitute

. Existing Competition
Bargainin g Power of Suppliers GPI, Marlboro Bargaining Power of Buyers

Threats from New Entrants

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ITC's CORE VALUES


Trusteeship As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualize stakeholder value and interest on a long term sustainable basis. Customer Focus We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction. Respect For People We are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity. We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives. We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork. Excellence We do what is right, do it well and win. We will strive for excellence in whatever we do. Innovation We will constantly pursue newer and better processes, products, services and management practices. Nation Orientation We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels.

ACHIEVEMENTS
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ITC's Cigarettes business has been winning numerous awards for its quality, environmental management systems and product excellence: 'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter of Cigarettes for 2008 by the Tobacco Board based on previous three years' performance. Occupational Health and Safety Award 2007 for Excellence in Safety Management to the Bengaluru, Saharanpur and Kolkata factories from the Royal Society for Prevention of Accidents (ROSPA), U.K. 5 Star Health and Safety Rating in 2007 from the British Safety Council to the Bengaluru, Munger, Kolkata and Saharanpur factories and the "Sword of Honour" for Bengaluru & Saharanpur factories in 2006. Greentech Gold Award for excellence in Safety Management for the year 2007 to the Bengaluru, Kolkata and Saharanpur cigarette factories for the high level of performance that the units have achieved in Environment Health and Safety (EHS). Saharanpur along with Kolkata and Munger factories were honoured with the Gold award and the Bengaluru Factory with the Platinum Award in 2006. Greentech Gold Award for Excellence in Environment Management 2007 to the Bengaluru, Kolkata and Munger factories. Safety Innovation Award for 2007 and 2006 for Innovative Safety Management System to the Bengaluru Factory from the Institution of Engineers and also the Unnatha Suraksha Puraskara Award 2006 from NSC Karnataka Chapter. Golden Peacock Award for Occupational Health and Safety from the Institute of Directors, New Delhi; Award for Outstanding Performance in Environment Health and Safety from the CII and the Suraksha Puraskar Award from the National Safety Council, Mumbai to the Kolkata factory in 2007 and the "1st National Security Today Award " in the category of Best Maintained Fire Safety System in 2005. Occupational Health and Safety Gold Award from the ROSPA, UK; the Winners Trophy Safety Health and Environment Award from the CII Eastern region;
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National Award for Excellence in Water Management and Innovative Project Award Initiatives for Energy Conservation from the CII to the Munger factory in 2007 and also the Excellence in Water Management Award from CII-GBC for 2006. All the four factories are certified by Det Norske VERITAS (DNV) for ISO 14001, for their Environment Management Systems, OHSAS 18001 for their Occupational Health and Safety Management Systems (OHSMS) and the ISO 9000-2000 for Quality Management Systems. The Kolkata factory is the first cigarette factory in India to be awarded the SA 8000 Certificate for Social Accountability by Det Norske Veritas (DNV) in June 2004. ITC's R&D Centre at Peenya, Bangalore has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also certified for the standard ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration Laboratories (NABL). This certification is awarded for "General requirement for the competence of Testing & Calibration Laboratories"

Milestones
1996 1997 1999 2000 2001 2002 Flat 10 packs launched 10s hinged-lid packs introduced for Regular Size filters New factory at Bengaluru commenced operations Brownfield project at Saharanpur factory completed Regular Size filters offered in 5s packs Beveled edge packs introduced
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2003 2004

India Kings marketed in contour packs; Insignia launched in shoulder box Long-Size filters offered in wave packs

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CONCEPT OF MARKERTING
CONCEPT:Marketing concept means that an organization aims all its efforts at satisfying its customers at profit. The marketing concept is a simple but very important idea.

Marketing comprehensive term and includes all resources and set of activities necessary to direct and facilitate the flow of goods and services from producer to Customer in the person of Distribution. Businessman regards marketing as a management function plan, promote and deliver product to the customer. Human efforts, finances and management constitute the primary resources in marketing. Much of marketing in concerned with the problem of profitability disposing what is produced. Marketing in the economy process by which goods and services are exchanged between the producer and the Customer and their values determined in terms of money prices. Marketing activities are concerned with the demand simulating and demand fulfilling efforts of the enterprises. Marketing is the delivery of a standard of living to society.
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MARKINTING SYSYTEM:

Diagram shows the exchange-taking place between marketing to intermediate organization, which will in turn go for further transition to meet ultimate buyers satisfaction.

MARKETING ACTIVITY & ANALYSIS:


The marketing activity takes place in a wider environment or framework which has controllable and uncontrollable variable. The controllable variables are which can be planned organized and put to perform by the marketing company. Whereas uncontrollable variables, which are beyond the control of the organization. Must adopt or adjust itself to these uncontrollable factors for a satisfactory performance. The controllable and uncontrollable factors are show as under.

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MARKETING MIX
The term Marketing Mix was introduced by Prof. N.H. Borden of the Harward Business School of America. It describes combination of the four inputs which constitute the core of a companys marketing system the products the distribution system the price structure and the promotional activities.

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According to Mr. Jerome McCarthy an American expert, Marketing Mix is the pack of four sets of variables namely, product variables, price variables. Promotion variables and place variable. Marketing Mix is the set of controllable variables and their levels that a firm uses to influence its target Market. McCarthy Popularized a four factor classification of this tools called the four Ps, which is a follows:-

PROMOTION
Developing the promotional Mix entails selecting and blending different channels of communication in order to achieve the promotional objective of the marketing Mix.

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SALES PROMOTION
ITC uses various techniques for sales promotion activities, which are as follows: Print media Electronic media Fairs & Gifts
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Demonstrations POP Free sample

PRINT MEDIA ITC LTD industries use various media to create awareness and sales of their products following are as follows:

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ELECTRONIC MEDIA We can see ITC LTD advertise the product through various ads, major satellite channel like star news channel. GIFTS Company offers several gifts to their dealers and major contractors and architects on the special festivals or occasions to attract them.

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DEMONSTRATION To promote sales and to develop the sales, company executives interact with the architects and contractors to create demand for the products through the effective demo of the products. They also explain the strength of the products over the competitors.

FREE SAMPLES Company also for increase sales by distributing free samples to dealers, contractors, customers, despite this company also give products like dairies, calendar, key rings, T- shirts, rough pads to relatives, neighbors etc.

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MARKETING STRATEGY
Marketing strategy is the complete and unbeatable plan, designed specifically for attaining the marketing objective of the firm/business unit. The marketing objective indicate what the firm want to achieve, the marketing strategy provides the design for achieving them.

Marketing Strategy
Market Segment

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Competito rs

Growth Path

Differentiat ion

MARKET SEGMENT
The business unit has to clarify what market segments it will seek and what product offers it will make. It other words, it has to state its product market scope. Strategy should decide whom to include and who to exclude. GROWTH PATH In this part of strategy the firm has to decide what would be its path for achieving the market penetration, market development or product development. COMPONENTS OF STRATEGY MARKETING PLANNING Strategy marketing planning included analysis of internal and external forces. On the basis of this analysis corporate strategy is designed on which the marketing objectives are based. As per marketing objectives the marketing strategic are developed.

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COMPETITIVE MARKETING STRATEGIES


Competitive marketing Strategy in founded on consistently understanding and predicating carrying market conditions needs to survive and grow every organization needs competitive strategies. Following five forces determine industry attractiveness and profitability: Threat of New Entrance Bargaining Power Of Suppliers Bargaining Power Of Byers Rivalry among Existing Firms Threat of substitute Product & Service

FORMULATING THE MARETING STRATEGY


Basically, formulation of marketing strategy consists of three main Tasks:

Selecting the target market. Positioning the offer. Assembling the marketing mix.

SELECTING THE TARGET MARKET: -

To say that target market selection is a part of marketing development is just stating the obvious. It does not fully bring out the important of the inseparable linkage between the two when the selection of the target market is over and important part of the market strategy of the product is determined, defined and expressed POSITIONING THE OFFER:-

The next major dimension of marketing strategy relates to positioning of the offer. The firm has already selected the target market and decided its basic offer. The point is that
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the firm has to clarify it proposes of do with its offering, how it wants the offer to be perceived by the customer. What position it seeks and what image it proposes to build for its offer. ASSEMBLING THE MARKETING MIX

The marketing mix means assembling the four Ps of Marketing in best possible combination. This process involved the choice of the appropriate marketing activities and the allocation of the appropriate marketing effort/resources to each one of them. The marketing mix is a dynamic entity. It needs to be constantly modified and manipulated depending on requirements.

IMPLEMENTATION OF MARETING STRATEGY


Once the business unit has developed its principle strategies it must work out detailed supporting programs. According to McKinney & Company, strategy is only one of seven elements in successful business practice. McKinneys 7-S framework for business success as shown in figure. The first three-element strategy, structure and system are considered the hardware of success. The next four style means that company employees shared values are the software.

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CATEGORY OF MARETING STRATEGY


These strategies can be fitted into two broad categories: The price oriented strategies The differentiation oriented strategies.

THE PRICE ORIENTED MARKETING STRATEGIES Firms taking to the price route in marketing strategy compete on the strength of pricing. They are price on their competitive server. They juggle competitive reality. They can afford to offer lower price and will make the targeted profit. The elbow out competition with the cushion they enjoy in the matter of pricing.
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THE DIFFERENTIATION ORIENTED STRATEGIES The differentiation route to strategy revalues aspects other than price. It works on the principle that a firm cam make its offer distinctive from all competing offers and win through the distinctive and a firm adopting such route can price its product on the perceived value of the attributes of the offer and not be necessarily on composition parity basis. Differentiation helps a firm more away from price competition. Meaningful differentiation in competitively more effective and enduring than low-cost production alone. When, the two strategies are combined in a single company the results are spectacular.

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RESEARCH METHODOLOGY - DEFINED


a. Research is the systematic investigation to establish facts or collect information on a pre-decided subject. b. Methodology is the specification of the system of principles and techniques used in a particular discipline. Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Finding & Recommendations

The Project
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The project is entitled STUDY AND EVALUATION OF SP AND L OUTLETS (SP & L outlets- Super Premium and Light outlets.)

DURATION OF THE STUDY: - The duration of the project training was 45 days
undertaken to accomplish the title and objective. The completion of 45 days of summer training was successfully done. The duration of the project was 18th of May to 26th of June; the main motive of summer training was to interact with actual corporate world and future manager under which I have successfully completed my summer training.

FODS should be in proper sequence according to the selling power of Outlets. Insignia, B&H, 555, Classic Regular, Classic milds, Classic Ultra Milds, Classic Menthol, Gold flake king (20), Gold flake king (10), Gold flake light (20), Gold flake light (10), Wills Silk Cut, Wills Navy Cut, Bristol filter, Bristol Stander, Flake. Sp & l outlets- Super premium and light outlets:On the basis of per day selling volume and brand stock Sp and l outlets are decided.
One who have stock of 5 brands (Mrp>90) and per day sale>=70 sticks comes in sp

& l outlet. One who have stock of 4 brands (Mrp>90) and per day sale>=40 sticks comes in sp outlet. One who have stock of 3 Ksft brands and per day sale>=70 sticks or have stock of 2 brands(Mrp>90) and per day sale>=40comes in l outlet. One who sells 1-10 packets of cigarettes in 1 day? They come under volume class 6. One who sells 10- 20 Volume Class 5 20- 50 Volume Class 4 50- 80 Volume Class 3 80- 110 Volume Class 2

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110 and above Volume Class 1.

The Objectives

Is to find out Market Potential of companys sp & l outlets and identify the Areas of improving Sales. Competition Analysis Consumers Preferences

OBJECTIVES OF THE STUDY:The main objective of the study was to know the view of consumer regarding ITC product, and my personal objective was to change the mind set of consumer who is already using another brand of the Tobacco in the Jaipur area. Customer attitude plays a vital role in the field of marketing and in development of any organization because now a days it is customers market. All the marketing activities revolve around him. There are the days of cut throat competition. So it becomes important to know about the behavior of the customers.

Objectives of study:1) To find out the reaction of the customers towards different cigarettes & tobacco

brands.

2)

To find out which cigarettes & tobacco brand customers are using in this area. 37

3) To know about the consumer satisfaction as well dissatisfaction regarding the cigarettes & tobacco. 4) Marker survey to know about the demand of cigarettes & tobacco in comparison to other cigarettes & tobacco. 5) 6) To know the suggestions from the different users(customers of cigarettes & tobacco) To know about the factors affecting on buying decision if customers.

7) To understand advertisement effect on cigarettes & tobacco and effectiveness of different advertisement Medias. 8) To find out managerial usefulness of study.

OPERATION RESEARCH GROUP (ORG)


Functions:
Organization research group is doing research for different companies. It is appointed by the company itself to know the performance of the company. They mainly look for the following:38

Service Availability Visibility Freshness Purchasing power Selling power.

TYPE OF RESEARCH

TYPE OF RESEARCH

Primary Source
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Secondary Source

1. PRIMARY SOURCE:
We collect primary data during the course of experiments in an experimental research but in case we do research of the descriptive type and perform surveys then we can obtain primary data either through observation or through direct communication. METHODS/TECHNIQUES OF PRIMARY DATA SOURCE INTERVIEW QUESTIONNARIES OBSERVARTION RECORD VIEW

INTERVIEW:This method is used to collect the information from groups or individuals. Analyst selects the people who are related with the system for the interview. In this method the analyst sits face to face with the people and records their responses. The interviewer must plan in advance the type of questions he/ she is going to ask and should be ready to answer any type of question. He should also choose a suitable place and time which will be comfortabl for the respondent. The information collected is quite accurate and reliable as the interviewer can clear and cross check the doubts there itself. This method also helps gap the areas of misunderstandings and help to discuss about the future problems. Structured and unstructured are the two sub categories of Interview. Structured interview is more formal interview where fixed questions are asked and specific information is
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collected whereas Unstructured interview is more or less like a casual conversation where in-depth areas topics are covered and other information apart from the topic may also be obtained.

QUESTIONNAIRE:It is the technique used to extract information from number of people. This method can be adopted and used only by an skillful analyst. The Questionnaire consists of series of questions framed together in logical manner. The questions are simple, clear and to the point. This method is very useful for attaining information from people who are concerned with the usage of the system and who are living in different countries. The questionnaire can be mailed or send to people by post. This is the cheapest source of fact finding. Open-ended questionnaires are used to learn feelings, opinions, general experiences on process detail or problem. In it, questions are answered in their own words. Where as in Closed questionnaires a set of prescribed answers are used and specific response have to be selected. This is a costly affair as the questions should be printed out.

RECORD VIEW:The information related to the system is published in the sources like newspapers, magazines, journals, documents etc. This record review helps the analyst to get valuable information about the system and the organization.

OBSERVATION:Unlike the other fact finding techniques, in this method the analyst himself visits the organization and observes and understand the flow of documents, working of the existing system, the users of the system etc. For this method to be adopted it takes an analyst to perform this job as he knows which points should be noticed and highlighted. In analyst may observe the unwanted things as well and simply cause delay in the development of the new system.

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2. SECONDARY SOURCE:
Secondary data source are data collected by persons or agencies for purpose other than solving the research problem. Data which are not originally collected but rather obtain from published or unpublished sources are known as Secondary Data Type of Secondary Source: INTERNAL SOURCE:

Cost Analysis Sales Analysis Sales Activity Reports Management Report EXTERNAL SOURCE:

Annual Report Newspapers & Magazines Library

Research Brief
The objective of the project was to find out Market Potential of Cigarettes and Identify the Areas of improving Sales of Cigarettes in the GFP channel. The GFP channel mainly consists of the small retail outlets from where Grocery product is sold. These retail outlets are open almost 24 X 7. Apart from Grocery, these retail outlets also sell confectionary, biscuits, soft drinks, Agarbattis, etc. In order to meet the objective, the response of 150 retailers was recorded by doing a market survey along with the salesmen of Globbus Sales distributor, in different locations of Nagpur city (in their own routes). The main objective behind going along with the salesmen was to understand how they carry out their work and to check if any better way can be suggested to perform it in a superior way. The questionnaire was mainly focused at finding the availability of Cigarettes and its competitors brands in the GFP channel, consumer preferences, retailers investment
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capacity and willingness, their stocking policy, prevalence of Trade, Credit and Consumer schemes, visibility and availability of ITC in the channel. The information thus collected was used to build up strategies for Market Potential of Cigarettes and Identify the Areas of improving Sales of Cigarettes in the GFP channel for wider coverage and growth of market share as further explained in the report.

Marketing channels for Bides and Cigarettes

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LIMITATIONS OF THE STUDY


No project is without limitations and it becomes essential to figure out the various constraints that we underwent during the study. The following points in this direction would add to our total deliberations:44

1. During the study, on many occasions the respondent groups gave us a cold shoulder. 2. The respondents from whom primary data was gathered any times displayed complete ignorance about the complete branded range, which was being studied. 3. Lack of time is the basic limitation in the project. 4. Some customers refuse to cooperate with the queries. 5. Some Customers gave biased or incomplete information regarding the study. 6. Money played a vital factor in the whole project duration. 7. Lack of proper information and experience also because hurdle for me. 8. Some customer did not answer all the questions or do not have time to answer. All research papers have its own limitations in terms of methodology and the resources available for its conduct. This study is no exception to it and has been carried under following limitation: Some of the respondents were not forthcoming with information as they

thought it to be a waste of time. A number of respondents were biased towards a particular brand, which was

giving them better returns. Some of the respondents were not available so, contacted person was not

able to present a fair view. Respondents lack of time to give information and their casual attitude was a

big hindrance in the study.

FACTS AND FINDING


Q1.)How much percentages of ITC psus in sp & l outlets?

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Key Takeout: - According to pie chart, Psu percentage of Itc is 71.96%,Gpi is 8.41%,both (Itc & Gpi) are 16.82% and there are 2.80% outlets which dont have any psu. This shows that an Itc brand has good visibility towards customers.

Q2.) How much percentages of ITC counters in sp & l outlets?

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Key Takeout:- According to pie chart, Counter percentage of Itc is 55.14%,Gpi is 3.73%and there are 41.12% outlets which have their personal counters. This shows there is a huge untapped outlets yet to be captured.

Q3. ) How much percentages of ITC backwall in sp & l outlets?

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Key Takeout:- According to pie chart, Counter percentage of Itc is 48.59%,Gpi is 4.67%and there are 46.72% outlets which have their personal back walls. This shows there is a huge untapped outlet yet to be captured.

Q4.) How much percentages of ITC Glowsign board in sp & l outlets?

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Key Takeout:- According to pie chart, Glow sign percentage of Itc is 42.05%,Gpi is 3.73%,both (Itc & Gpi) are 3.73% and there are 50.46% outlets which dont have any Glow sign.

5. Availability of king size filter tip.

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By this bar graph the availability percentage of classic is 100%,Marlboro is 50%,IK is 70% and Insignia is 70%.

ANALYSIS AND INTERPRETATION


1.

After doing all the activities of price control price is still not Controlled. To overcome this problem directly contact with. Customer will be effective.

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2.

DSS timing was not proper as they starts late and in th Noon time Most of the outlets are close so they have to starts as early. As Possible. And they should visit first those outlets which were Closed in the noon time.

3. rate.

Company should give some credit limit to small tea stall, Tapries so that they can take goods from the company sells man so. That they can sell at company price

4.

The DSS are not sufficient to cover the whole route and all small shops so it requires more numbers DSS as the available. Ones dont cover the outer route, which led company in loss.

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S.W.O.T. are best appreciated in the contact of marketing analysis and strategy formulation. Together a consideration of the environment the resources values. Expectations and objectives provide the basis for marketing analysis, so as to arrive at a view of the organizations strategic situation. It helps to form a basis for deciding on the extent to which a change in strategy is necessary. The components of S.W.O.T. analysis are as follow: Strength Resource Relative Competitive Advantage Image Infrastructur e outfit Market Leadership Inadequate against change in product / Market scope Technologica of product measures viewed l changes Weakness Deficiencie s in skills capabilities Financial resources Source and of Opportunities Favorable Identification new segment Changes of competitive regularity in growth or Major technological change Appearances substitute Threats Unfavorable situation Entry of new Slow market market competitors

resources, situation

Note: This SWOT analysis is done on the Data that has been collected during the Two month Summer Training.

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Threats

Strengths

ITC Ltd.

Opportunities

Weakness

STRENGTHS
ITC leveraged it traditional businesses to develop new brands for new segments. For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. ITC is a diversified company trading in a number of business sectors including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel,
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personal care, greetings cards, Information Technology, safety matches, incense sticks and stationery. 1) Parent support ITC Ltd. has a strong support from its parent company, which is the worlds largest processed Cigarettes, and Food Company, with a presence in almost every country. The company has access to the parents hugely successful global folio of products and brands. 2) Brand strength In India, ITC Ltd has some very strong brands like Wills Navy cut, Sunfeast Biscuits, john Player . These brands are almost generic to their product categories. 3) Product innovation The company has been continuously introducing new products for its Indian patrons on a frequent basis, thus expanding its product offerings. 4) Smaller skus 5) Working capital intensity

WEAKNESSES
The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco
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operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone hold 70% of the tobacco market. The company has been continuously introducing new products Like candy which is not much profitable business, Rise in cigarettes price which create dissatisfaction in consumer, and customer. Unawareness of company that this much brands is produced by this company. Consumer knows the product but not aware that this product is belongs to ITC Ltd.

OPPORTUNITIES
Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration. ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages. Take a look at eChoupal here http://www.itcportal.com/agri_exports/e-choupal_new.htm ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate. Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's premier FMCG business.

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Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand. 1) Expansion The company has the potential to expand to smaller towns and other geographies. Existing markets are not fully tapped and the company can increase presence by penetrating further. With India's demographic profile changing in favour of the consuming class, the per capita consumption of most FMCG products is likely to grow. 2) Product offerings The company has the option to expand its product folio by introducing more brands which its parents are famed for like breakfast cereals, Smarties Chocolates, Carnation, etc. 3) Global hub Since manufacturing of some products is cheaper in India than in other South East Asian countries, ITC Ltd could become an export hub for the parent in certain product categories.

THREATS
The obvious threat is from competition, both domestic and international. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings. ITC's opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future. 1) Competition

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The company faces immense competition from the Godfrey Philips in premium cigarettes. Foursquare is giving tough competition to Gold flake. organized as well as the unorganized sectors. Off late, to liberalize its trade and investment policies to enable the country to better function in the globalised economy, the Indian Government has reduced the import duty of food segments thus intensifying the battle. 2) Changing consumer trends Trend of increased consumer spends on consumer durables resulting in lower spending on FMCG products. In the past 2-3 years, the performance of the FMCG sector has been lackluster, despite the economy growing at a decent pace. Although, off late the situation has been improving, the dependence on monsoon is very high.

3) Sectoral woes Rising prices of raw materials and fuels, and in turn, increasing packaging and manufacturing costs. But the companies may not be able to pass on the full burden of these onto the customers.

WHY SWOT
1. 2. 3. 4. 5. To asses weather there are opportunities to explore To summarize previous analysis & combine them with key issues from environmental analysis. To undertake more structured analysis The best possible way to convert threat & weakness into Strength & Opportunities SWOT analysis involves an assessment of the Company from inside (its competitive advantages or past performance), as well as from the outside (current and future needs of the community, competitors' performance, new legislation, changes in the donor base, entry of new coming into the field, or new program opportunities)
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6.

At the end of a SWOT analysis, Stakeholders will have a list of concerns or issues that require a response from the Company. These identified concerns can then be translated into long term and short-term goals for the Company.

ANALYSIS BY GRAPHS

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STRATIGIES FOR GROWTH


Key Growth Strategies These three elements form the basis of our strategy for profitable growth. They are highly integrated and mutually inter-dependent: 1. 2. 3. Geographic Expansion Innovation/Renovation Channel Growth Supporting Strategies 4. 5. 6. 7. People and Organization Communication Manufacturing Acquisition
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SUMMARY OF THE PROJECT


The basic task of the project titled STUDY AND EVALUATION OF SP AND L OUTLETS was to analyze the market strategy adopted by the company. The success of any company depends on marketing strategy. So, evaluation and study of marketing strategy become important. To attract the buyers of other competing brands and to ensure that the existing buyers dont switch over to other brands. Promotional offers can effectively come to the rescue of the market here. However, merely making the use of the marketing strategy is not sufficient. The marketer needs to know the attitude of customers and dealers through the various promotional activities. So, a sample schedule was constructed and questionnaires were developed for dealers and customers. A survey was carried to find out the result for knowing the impact of marketing strategy on customers and dealers. Questionnaires were both closed and open ended. Closed-end questions specified all the possible answer and were easier to interpret and tabulate. Open-end questions allowed respondents to answer in their own words and other revealed about how people think. Interview method was given preference for obtaining responses. According to this survey it was analyzed that most of the customers were awarded about the different types of promotional activities. Out of them 57% answered that sales promotional activities have been impressive. According to 63% customers it was found that sales promotion schemes affect their purchase plans. Among the users and non-users of ITC, it was found that quality of the product has been the most important factor to inference about the purchasing decision. According to customers opinions, they observed that due to eco-friendly and economically products of ITC may get more success in the coming years. According to dealers, the top attributes that influence the customers purchase decision are brand name, price and quality. 70% dealers accepted that it might be successful due to range and price of product. 50% dealers have not been happy with effective sales promotional activities. 90% dealers thought that new product launched would really affect the sales of ITC products.

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To conclude, it can be observed that marketing strategy adopted by the company has not been up to the mark due to poor salespromtional activities, lack of conducting customer awareness programs and not using print and electronic media in a proper manner. So, to have positive impact of the strategy, it is required that the company should consider following suggestions for the improvement and better effectiveness of marketing efforts.

CONCLUSION
It is seen that in the normal course of business as presented Knowledge of market is essential for the development of the product. Thus apparently there is an increasing need for the development of product in-sync not only with customer needs but also try to provide more than customer basic needs. With the customer now becoming tech-survey and prevalence of other service providers has resulted in a paradigm shift regarding consumer
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behavior and preferences and thus incorporation of changes effectively is the key word to success. Hence the effect of globalization is perceptible. This dynamic change has revolutionized marketing. CONSUMER IS THE KING is the new value proposition that is being called upon .In addition, there are many competitors providing more or less the same services and fighting for a greater share of pie. It is not surprising that new marketing ideas keep surfacing so as to meet the new market place tests. This may lead to a tendency towards a general compromise / shifting of brands by the consumer in the market. One way to deal with the problem is to ensure that some sort of solidarity is worked upon and transgression of other brands into ITC brands is smooth. The survey has identified major areas. The following point will be concluding this topic: Customers can come and get their problems & queries resolved. Customers will be directed to get their queries resolved.

This principle will begin a new chapter in customer service in Rajasthan


Customer satisfaction is the top priority of ITC As a philosophy ITC believes in serving the customer at his doorsteps

Batter Image in Rural Area.

SUGGESTIONS AND RECOMMENDATIONS


A customer is the most important visitor on our premises. He is not dependent on
us. We are dependent on him. He is not an interruption on our work. He is the purpose of it. He is not an outsider in our business. He is a part of it. We are not doing him a favour by serving him. He is doing us a favour by giving us an opportunity to do so. MAHATMA GANDHI
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Customer education is an important aspect of customer protection. Hence customer awareness camps should be organized by ITC to give information regarding their products.

Print and electronic media should be used freely

Commercial sponsor programs should be organized to attract dealers.

More and more effective training programs should be conducted regularly for marketing and sales executives.

There is a need to coordinate effective and efficient promotional programs for the dealers so that they can achieve their sales targets.

At present, company gives advertisement only on Star news Channel. To enhance its areas, there is a need of the hour that company should use other channels also for effective advertising.

Company should organize prize-winning contests to attract more and more customers and dealers.

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More and more demo classes should be conducted on the regular basis. company should use flex, boards no large basis.

ITC LTD must print broachers regarding the products.

Annexure 1

List of Areas covered

Vaishali nagar Nirman nagar Mansarover Jhotwara

Ajmer road Shyam nagar Sodala Sikar road

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Ambabari Murli pura Malviya nagar Gopal pura bypass Pratap nagar Bani park Mahesh nagar

Raja park Shastri nagar Durga pura Sanganer M.I. road Tonk road Barkat nagar

Annexure 2
Businesses

S.No. 1.

Category FMCG

Sub-Category Cigarettes Foods ,Snacks Lifestyle Retailing Greeting, Gifts & Stationary Safety Matches Agarbattis

2. 3.

HOTELS PAPERBOARDS & PACKAGING Paperboards & Specialty papers Packaging

4.

AGRI-BUSINESS

Agri-exports (e-choupal) Leaf Tobacco 69

5. 6.

INFORMATION TECHNOLOGY GROUP COMPANIES

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Annexure 3
Price List for different Brands

Brands
Insignia India King B&H 555 Classic Gold flake king Navy Cut Bristol Gold flake premium

MRP(Rs.)
140 100 100 100 94 44 34 19 29

PTR (Rs.)
123.18 87 91.20 91.20 86 40 31.25 17.40 26.80

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1.

Ramaswamy, V.S. & Namakumari, S.2004. Marketing Management : Planning, Implementation & Control, New Delhi : Macmillan India Ltd. Kotler, Philip. 2003. Marketing Management , New Delhi : Prentice Hall of India Pvt. Ltd. Perrault, Williom D. & McCarthy, E.Jerome. 2005. Basic Marketing : A global - Managerial Approach, New Delhi : Tata McGraw Hill Publishing Com. Ltd, Bosc, Biplab S.1998. Handbook of Marketing Management,

2.

3.

4.

Mumbai: Himalaya Publishing House.


5.

Kotler, Philip. 2004. Marketing Management, Delhi : Pearson education (Singapore) Pvt. Ltd. Varshney, R.L. & Gupta, S.C. 2000. Marketing Management & Indian Perspective, New Delhi: Sultan Chand & Sons.
7.

6.

Palmer, Adrien.2004. Introduction to Marketing : Theory & Practice, New Delhi : Oxford University Press.

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REFERENCES
www.Google.com www.itcportal.com

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