1.

1 EXECUTIVE SUMMARY This project takes a look in various kinds of MARKETING activities, market share of different products and various sales promotion schemes, which are followed i n the FMCG BASED industry. There are some major players i.e. HUL, ITC, dominate the FMCG based industry in India. India is one of few battlegrounds in the world where there is neck-to-neck competition among. The companies claim to be in num ber one in FMCG SECTOR as per the data produced by different marketing research companies. When it comes to INDIA all these companies are trying hard to gain th eir market acceptance and market share. The Indian FMCG sector is the fourth largest in the economy and has a market siz e of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characterist ics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billio n in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segment s of the Indian population are the most promising market for FMCG, and give bran d makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as wel l. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan L ever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth p lace, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from reve aling. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands. that is the reaso n this sector has huge amount of growth, if we want to grow we have to understan d consumer needs and wants, that is the reason to know their buying behavior is very vital to frame up a perfect marketing strategy. 1.2 CONSUMER BEHAVIOUR It is a segment or part of human behaviour. Human behaviour refers to the total process whereby the individual interacts with the environment. Every thought, fe eling, or action that we have as individuals is part of human behaviour. Consume r behaviour is the study of how individuals, groups and organizations select, bu y and dispose of goods, services, ideas or experiences to satisfy their needs an d wants. "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the cons umer and society." 1.3 MEANING & DEFINITION: Consumer Behaviour include the processes involved when individuals or groups cho ose, buy, use or dispose of products, services, experiences or ideas to satisfy their needs and wants - Solomon Consumer Behaviour reflects the totality of consumer decisions with respect to a cquisition, consumption, and disposition of goods, services, activities, experie nces, people and ideas by human decision-making units (over time) -Jacob Jacoby Consumer Behavior is the study of individuals, groups or organizations and the p rocesses they use to select, secure, use, and dispose of products, services, exp eriences or ideas to satisfy needs and the impacts that these processes have on the consumer and society

- Hawkins, Best and Coney 1.4 IMPORTANCE OF THE STUDY: It seeks to understand the consumer buying decision process and to answer the fo llowing questions Who makes the market? Who do they buy from? What does the market buy? When do consumers buy? Why do they buy? How do they buy? The marketer wants to know how consumers respond to various marketing strategy t he company might use. It helps the firm to find better ways to satisfy consumers through creating a suitable marketing mix that will meet customers needs and req uirements better than competitors Understanding Consumer Behaviour: 7 OS Framework: Who is the customer? Occupants what does the consumer buy? Objects why did they buy? Objectives who participate in the process? Organization When did they buy? Occasions where do they buy/ Outlets how did they buy? Operations Model of Consumer Behaviour (Stimulus-Response Model of Buyer Behaviour) Fig no- 1.1 Consumers make many buying decisions every day. Most companies are interested to know what consumers buy, where they buy, how and how much they buy, when they b uy, and why they buy. But learning about the consumer buying behavior is not eas y task The central question for marketers is how consumers respond to various ma rketing stimuli The company that understands how consumers will respond to diffe rent product features, prices, and advertising appeals has a great advantage ove r its competitors. The starting point is the stimulus-response model of buyer be haviour. Marketing stimuli consist of the four Ps: product, price, place, and promotion. Other stimuli include major forces and events in the buyers environment: economic , technological, political, and cultural. All these inputs enter the buyers black box, where they are turned into a set of observable buyer responses: product ch oice, brand choice, dealer choice, purchase timing, and purchase amount. The mar keter wants to understand how the stimuli are changed into responses inside the consumers black box, which has two parts. First, the buyers characteristics influe nce how he or she perceives and reacts to the stimuli. Second, the buyers decisio n process itself affects the buyers behaviour. 1.5 OBJECTIVES OF THE STUDY: To study the consumer preference towards different flavours of Sunfeast biscuits To compare Sunfeast biscuit with other brands of biscuits Find out satisfaction level of consumers towards Bingo chips To compare other readymade snacks with Bingo 1.6 SCOPE OF THE STUDY: This Report will help to understand the consumer behaviour towards purchasing a new consumer goods(FMCG) of ITC. It also opens the various factors which can affect the purchase decision. This Report provides a frame of mind of people, what are the exceptions of consu mer and up to how much level these expectation met. This Report will be helpful for Retailers and Companies so that they can underst and the consumer behaviour and can satisfy the consumer on more better manner. T o know whether they recommend to other or not.

1.7 RESEARCH METHODLOGY Consumers preference about different branded and non branded Consumer goods espec ially with FMCG. The Exploratory research method is adopted for the current study. a) Sample Units: A decision has to be taken concerning a sampling unit befo re selecting a sample, sampling unit may be a geographical one such as state, di strict, village etc. so in this research sampling unit is A.S.Rao Nagar. b) Source of Data: Data required for the study was collected through primar y sources i.e. market survey and secondary source. c) Sampling Size: This refers to the no. of items to be selected from the u niverse to constitute a sample. This is a major problem before the researcher. T he size of sample should neither be excessively large not too small, it should b e optimum. This size of population must be kept in view for this also limits the sample size. Sample size in this research is 20. 1.8 RESEARCH INSTRUMENT: QUESTIONNAIRE DESIGN: As the questionnaire is self administered one, the survey is kept simple and use r friendly. Words used in questionnaire are readily understandable to all respon dent. I have made the questionnaire in which questions are according to the research a nd these are convenience for the respondent. 1.9 LIMITATIONS OF THE STUDY: The study was confined to A.S.Rao Nagar region only. The industry and the rural centers could not be considered for the above study. The study was conducted by taking too little respondents to arrive to valid conc lusion on the several aspects related to the marketing of ITC LIMITED. Some of the respondents were not actual decision makers of the family therefore the information gathered from them might have some biases. Another problem which I face was that people were hesitating to give information about their views fr eely.

2. Consumer Behaviour: A Literature Review In order to develop a framework for the study consumer behaviou r it is helpful to begin by considering the evolution of the field of consumer r esearch and the different paradigms of thought that have influenced the discipli ne. As described in this article, a set of dimensions can be identified in the l iterature, which can be used to characterize and differentiate, the various pers pectives on consumer research. It is argued that consumer behaviour itself emerg ed as a distinct field of study during the 1960s; and is characterized by two br oad paradigms, the positivist and the non-positivist. The positivist paradigm en compasses the economic, behavioural, cognitive, motivational/trait/attitudinal, and situational perspectives; these perspectives are referred to as the traditio nal perspectives as they pre-date the development of the non-positivist paradigm . The positivist paradigm, which as still the dominant paradigm, emphasizes the supremacy of human reason and that there is a single, objective truth that can b e discovered by science. This paradigm regards the world as a rational and order ed place with a clearly defined past, present, and future. The assumption of rat ionalism is therefore fundamental to the traditional perspective. The opposing, non-positivist paradigm, envelops the interpretive and postmodern perspectives, which have emerged more recently during the period post-1980 to date. The propon ents of this emerging perspective argue that positivism overemphasizes the ratio nal view and the ideology of a homogenous social culture and thereby denies the complex social and cultural world in which consumers live. This paradigm instead stresses, the importance of symbolic and subjective experience and the idea tha

t consumers construct meanings based on unique and shared cultural experiences, and thus there can be no single unified world view. Unsurprisingly, the two paradigms differ in their views on the be nefits derived from consumption and the objectives that underscore consumer rese arch. The traditional, positivist perspective takes a very utilitarian approach to the benefits from consumption. While the non-positivist perspectives place mu ch greater emphasis on the symbolic dimensions of choice. The objective of non-p ositivist research endeavour is to achieve a better understanding of consumer be haviour with no specific intent to influence consumer processes. Conversely, out comes of positivist research are directed toward advancing the goals of marketin g practice. By identifying the paradigmatic shifts within the field, this articl e aims to identify different streams of thought that could guide future consumer research. 2.1 Introduction Consumer is the study of the processes involved when individuals or groups select , purchase, use, or dispose of products, services, ideas, or experiences to sati sfy needs and desires (Solomon 1995, 7). In the marketing context, the term consum er refers not only to the act of purchase itself, but also to patterns of aggreg ate buying which include pre-purchase and post-purchase activities. Pre-purchase activity might consist of the growing awareness of a need or want, and a search for and evaluation of information about the products and brands that might sati sfy it. Post-purchase activities include the evaluation of the purchased item in use and the reduction of any anxiety which accompanies the purchase of expensiv e and infrequently-bought items. Each of these has implications for purchase and repurchase and they are amenable in differing degrees to marketer influence (Fo xall 1987). Engel, et al. (1986, 5) define consumer behaviour as those acts of in dividuals directly involved in obtaining, using, and disposing of economic goods and services, including the decision processes that precede and determine these acts. Simple observation provides limited insight into the complex nature of con sumer choice and researchers have increasingly sought the more sophisticated con cepts and methods of investigation provided by behavioural sciences in order to understand, predict, and possibly control consumer behaviour more effectively. P sychology, social psychology, and sociology are the disciplines most widely empl oyed in this endeavour which has become a substantial academic industry in its o wn right. 2.2 Consumer Decision Making Models The three major comprehensive models for consumer decision making were proposed by Nicosia 1966; Engel et al. 1968; and Howard and Sheth 1969. These attempt to tr ace the psychological state of individual consumers from the point at which they become aware of the possibility of satisfying a material need by purchasing and consuming a product to their final evaluation of the consequences of having don e so. Engel et al., (1986) suggest that high involvement with a product results in an extended problem solving process which starts with problem recognition, fo llowed by an information search, alternative evaluation, purchase, and post purc hase activities. This process is aided by an active information processing seque nce involving exposure, attention, comprehension, yielding/acceptance, and reten tion. The choice determined by the outcome of the information process-aided deci sion sequence may have satisfying or dissonant outcomes: Festinger (1957) first introduced the theory of cognitive dissonance for the consumer, which influence future purchasing. Engel and Blackwell (1982) also point out that environmental influences may affect the decision sequence acting on the consumers motivation an d intention, and that unpredictable factors (such as non-availability of the des ired brand or insufficient funds) may result in modification of the actual choic e made by a consumer. This model assumes that observed consumer behaviour is pre ceded by intrapersonal psychological states and events (attitude intention-purch ase sequence). Moreover, the model depicts these psychological events as outputs of the processing of information, taking for granted that consumers seek and us e information as part of their rational problem solving and decision making proc esses. Thus, one of the main criticisms of the extended problem solving models i s that they assume that consumers are complex and rational decision makers (Olsh

avsky and Granbois 1979). Ehrenberg (1988) criticized these models because they cannot be precisely tested. The relationships between concepts are poorly specif ied and they lack agreed methods for measuring the concepts. It is argued that w hile, these steps in decision making are followed by consumers for some purchase s, such a process is not an accurate portrayal of many purchase decisions (Olsha vsky and Granbois 1979). Researchers recognize that decision makers actually pos sess a repertoire of strategies. A consumer evaluates the effort required to mak e a particular choice, and then he or she chooses a strategy best suited to that level of effort required. The sequence of events is known as constructive proce ssing. This process allows consumers to tailor their degree of cognitive effort to the task in hand (Bettman and Zins 1977). Thus, the limited problem solving and habitual decision making models, as described below, were developed to account for behaviour in purchase situations where consumers are not highly involved and therefore do not undertake a rigorous problem solving approach. 2.3 Consumer Behaviour as a Social Decision Making Process Veblen (1899, 1949) was the first to introduce the idea of conspicuous consumpti on, i.e., possessions have symbolic value. Many researchers have commented on th e social influences on behaviour. The various streams of thought crystallized in to the modern social sciences of sociology, cultural anthropology, and social ps ychology. Basic to them is the view that mans attitudes and behaviours are influe nced by several levels of society for example, culture, subcultures, social clas ses, reference groups, and face-toface groups. Culture refers to the values, ide as, artefacts, and other meaningful symbols that help individuals communicate, i nterpret, and evaluate as members of a society. Marketing acts as a value transm itter that simultaneously shapes culture and is shaped by it. Marketing is then a channel through which cultural meanings are transferred to consumer goods (McC racken 1987). Products act as social symbols and are therefore significant of on es social class. Social classes are composed of individuals who share similar val ues, interests, and behaviours. People within a given social class are approxima tely equal in terms of their social standing in the community. They work in roug hly similar occupations, and they tend to have similar lifestyles by virtue of t heir income levels and common tastes. These people tend to socialize with one an other and share many ideas and values regarding the way life should be lived (Co leman 1983). Class membership influences an individuals consumption behaviour as products consumed by individuals have symbolic value which also reflect on their role in society. Society therefore develops norms i.e., informal rules that gov ern behaviour. Consumers conform to norms broadly due to their normative social influence, which occurs when individuals conform to meet the expectations of a p erson or group; or informational social influence, which refers to conformity th at occurs because the groups behaviour is taken as evidence about reality. Consum ers belong to many different groups that influence their behaviour. Reference gr oups refer to all external influences that provide social cues (Gergen and Gerge n 1981). 2.4 Conclusion Overall, it is argued that the study of consumer behaviour is rapidl y evolving as researchers recognize and implement new techniques and transdiscip linary perspectives to understand the nature of purchase and consumption behavio ur. This wider view attempts to study consumer behaviour in the light of rapidly evolving lifestyles, values, priorities, and social contexts. Various theories on consumer research were not tested empirically until the middle twentieth cent ury. The distinctly practical emphasis awaited development of the field of marke ting in the business curriculum. In particular the buying process of consumer be haviour is of more importance to marketing practitioners than the consumption pr ocess. From a practitioners perspective consumer research is pertinent so as to e nable him to understand changing consumer needs, wants, and motivations and ther eby devise the most appropriate mix for his market. Then, to the marketer the dy namic nature of consumer behaviour implies rapid product development, changing c ommunications, and distribution strategies in order to be more effective. It is

this (marketing) concept, as articulated by several marketing scholars (e.g., Al derson 1965; Bagozzi 1975; Kotler 1972; Kotler and Levy 1969) that captures many of the more essential characteristics of modern marketing which has tended to d ominate thinking in the field. Those whose research motivation is consumer influ ence largely embrace the research paradigm of positivism in which rigorous empir ical techniques are used to discover generalizable explanations and laws. Consum er decision making processes and behavioural outcomes are studied to bring about prediction and change (Ozanne and Hudson 1989). However, the arena of consumer research goes far beyond the managerial perspective, when primary focus is place d on consumption. Holbrook and Hirschman (1982), among others, strongly advocate that the purchase decision is only a small component in the constellation of ev ents involved in the consumption experience. Holbrook (1987) suggests that consu mer researchers must expand their view to examine all facets of the value potenti ally provided when some living organism acquires, uses, or disposes of any produ ct that might achieve a goal, fulfill a need, or satisfy a want. The decision pro cess then assumes secondary importance as compared with consumption. This broade ned perspective has been recently reflected in the literature, as published rese arch focuses on the subjective aspects of the consumption experience, such as he donic consumption. Research methodology moves beyond positivism to naturalism (e thnography, semiotics, literary criticism, and historicism) in order to achieve a broader understanding of the impact of consumption on the consumer without any particular intent to change or influence the process. While some outcomes may b e significant to marketing practice the overall goal of such research endeavour is to achieve better understanding of consumer behaviour. 3.1 HISTORY OF ITC LTD ITC was incorporated on August 24, 1910 under the name of Imperial Tobacco Comp any of India Limited . Its beginnings were humble. A leased office on Radha Baza r Lane, Kolkata, was the centre of the Company s existence. The Company celebrat ed its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 31 0,000. This decision of the Company was historic in more ways than one. It was t o mark the beginning of a long and eventful journey into India s future. The Com pany s headquarter building, Virginia House , which came up on that plot of lan d two years later, would go on to become one of Kolkata s most venerated landmar ks. The Company s ownership progressively indianised, and the name of the Compan y was changed to I.T.C. Limited in 1974. In recognition of the Company s multi-b usiness portfolio encompassing a wide range of businesses - Cigarettes & Tobacco , Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agr i-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the fu ll stops in the Company s name were removed effective September 18, 2001. The Co mpany now stands rechristened ITC Limited. Though the first six decades of the Company s existence were primarily devoted t o the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, th e Seventies witnessed the beginnings of a corporate transformation that would us her in momentous changes in the life of the Company. ITC s Packaging & Printing Business was set up in 1925 as a strategic backward i ntegration for ITC s Cigarettes business. It is today India s most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened ITC-Welcomgroup Hotel Chola . The objective of ITC s entry into the hotels business was rooted in the concept of creating va lue for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large sc ale direct and indirect employment. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Pape rboards Limited, which today has become the market leader in India. Bhadrachalam

Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company s Tribeni Tissues Divisi on to form the Paperboards & Specialty Papers Division. ITC s paperboards techn ology, productivity, quality and manufacturing processes are comparable to the b est in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is d irectly involved in education, environmental protection and community developmen t. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British join t venture. Since inception, its shares have been held by ITC, British American T obacco and various independent shareholders in Nepal. In August 2002, Surya Toba cco became a subsidiary of ITC Limited and its name was changed to Surya Nepal P rivate Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing c ompany and a major supplier of tissue paper to the cigarette industry. The merge d entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Busin ess Division for export of agri-commodities. The Division is today one of India s largest exporters. ITC s unique and now widely acknowledged e-Choupal initiati ve began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 state s covering over 4 million farmers. ITC s first rural mall, christened Choupal S aagars was inaugurated in August 2004 at Sehore. On the rural retail front, 24 C houpal Saagars are now operational in the 3 states of Madhya Pradesh, Maharasht ra and Uttar Pradesh. In 2000, ITC spun off its information technology business into a wholly owned su bsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging oppor tunities in this area. Today ITC InfoTech is one of Indias fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions. In 2000, ITC launch ed a line of high quality greeting cards under the brand name Expressions . In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched Expressions Matrubhasha , a vernacular range of greeting cards in eight languages and Expr essions Paperkraft , a range of premium stationery products. In 2003, the compan y rolled out Classmate , a range of notebooks in the school stationery segment. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour) ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyl e chain of exclusive stores later expanded its range to include Wills Classic fo rmal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men s wear brand, J ohn Players, in 2002. In 2002, ITC s philosophy of contributing to enhancing the competitiveness of th e entire value chain found yet another expression in the Safety Matches initiati ve. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Ai m Mega and Aim Metro. 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC s foray into the marketing of Agarbattis (incense sticks) in 2003 m arked the manifestation of its partnership with the cottage sector. ITC s popula r Agarbattis brands include Spriha and Mangaldeep across a range of fragrances l ike Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial P ackaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.

In 2006, Wills Lifestyle became title partner of the country s most premier fash ion event - Wills Lifestyle India Fashion Week - that has gained recognition fro m buyers and retailers as the single largest B-2-B platform for the Fashion Desi gn industry. To mark the occasion, ITC launched a special Celebration Series , taking the event forward to consumers. In 2007, the Company introduced Miss Players - a fashion brand in the popular s egment for the young woman. ITC s foray into the Foods business is an outstandin g example of successfully blending multiple internal competencies to create a ne w driver of business growth. It began in August 2001 with the introduction of K itchens of India ready-to-eat Indian gourmet dishes. ITC s entered the fast gro wing branded snacks category with Bingo! in 2007. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consume rs the Company launched Fiama Di Wills , a premium range of Shampoos, Shower Ge ls and Soaps in September, October and December 2007 respectively. The Company also launched the Superia range of Soaps and Shampoos in the massmarket segment at select markets in October 2007 and Vivel De Wills & Vivel rang e of soaps in February and Vivel range of shampoos in June 2008. In May 2009 ITC launched new Cigarettes product is wills flake excel. ITC has launched noodles under its Sunfeast brand in Chennai, Coimbatore and Ke rala. Of late, FMCG compnaies like Glaxo SmithKline and Hindustan Unilever and p rivate labels like Big Bazaar s Tasty Treat have entered this segment. Chitranjan Dar, divisonal chief executive, ITC Foods. said: "We are looking to t ap at synergies. While pasta as a category is predominant in larger cities, nood les is a more universal offering and in that sense is a more intense catgeory," explains Dar. The instant noodles maket in India is pegged at Rs 1,200 crore and is seeing a 15-20% growth year-on-year. Clearly, the huge market opportunity is a big pull for players like ITC. "Noodles is a big growth market that has a lim ited competitive set at the moment." ITC is planning a national rollout of Sunfeast Yippee! soon. The company is also planning to introduce more flavours in noodles within the next 8-10 months," sa ys Dar.

3.2 The ITC Leadership Leadership within ITC is exercised at three levels. The Board of Directors at th e apex, as trustee of shareholders, carries the responsibility for strategic sup ervision of the Company. The strategic management of the Company rests with the Corporate Management Committee comprising the whole time Directors and members d

rawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Ex ecutive. Each DMC is responsible for and totally focused on the management of it s assigned business. This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom, and the need for supervision and control. ITC is one of India s foremost private sector companies with a market capitaliza tion of nearly US $ 19 billion* and a turnover of over US $ 5.1 Billion. ITC is rated among the World s Best Big Companies, Asia s Fab 50 and the World s Most Reputable Companies by Forbes magazine, among India s Most Respected Companies by Business World and among India s Most Valuable Companies by Business Today. I TC ranks among India s 10 Most Valuable (Company) Brands , in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia s 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Pa pers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Tech nology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMC G products. While ITC is an outstanding market leader in its traditional busines ses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidl y gaining market share even in its nascent businesses of Packaged Foods & Confec tionery, Branded Apparel, Personal Care and Stationery.

3.3 Organization Structure of ITC Fig No- 3.1

3.4 BOARD OF DIRECTORS CHAIRMAN Y C DEWESHWAR EXECUTIVE DIRECTORS Nakul Anand P V Dhobale K N Grant NON- EXECUTIVE DIRECTORS A Baijal S Banerjee AV Girija Kumar S H Khan S B Mathur D K Mehrotra H G Powell P B Ramanujam Anthony Ruys Basudeb Sen K Vaidyanath B Vijayaraghavan

3.5 The ITC Vision and Mission VISION Sustain ITC s position as one of India s most valuable corporations through worl d class performance, creating growing value for the Indian economy and the Compa

nys stakeholders. MISSION To enhance the wealth generating capability of the enterprise in a globalising e nvironment, delivering superior and sustainable stakeholder value. 3.6 CORE VALUES ITC s Core Values are aimed at developing a customer-focused, high-performance o rganisation which creates value for all its stakeholders. Trusteeship As professional managers, we are conscious that ITC has been given to us in "tru st" by all our stakeholders. We will actualise 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 indi viduals and teams. We will simultaneously respect and value people and uphold hu manness 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, crea te and experiment in pursuit of opportunities and achieve leadership through tea mwork. Excellence We do what is right, do it well and win. We will strive for excellence in whatev er we do. Innovation We will constantly pursue newer and better processes, products, services and man agement 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 l aws and regulations at all levels. 3.7 ORGANISATION STRUCTURE / HIERARCHY ITC a world leading electric company works as a Team System. Unit Head (Managing Director)

Departmental Heads (Managers) Section In charge (Asst. Managers) Supervisors (Executives) Workers 3.8 SWOT ANALYSIS ITC Ltd. is one of the Indias largest multinational corporate enterprises. It was registered in Calcutta with a small office in Radhabazar Lane, with one expatriat e manager and one acquired cigarette manufacturing facility in Munger, in 1910. Now, ITC is one of India s biggest and best-known private sector companies. In f act it is one of the World s most high profile consumer operations organisations . Strengths:

Functional Heads (General Managers)

The organisation has some major strengths that give it a competitive advantage o ver its rivals. 1.Strong Financial Performance: On 31st march, 2010, ITCs market cap was Rs. 114000 crores with a Gross income of Rs. 26,863 crores and Profit after tax of Rs. 4061 crores. The company continue s its impressive record of financial performance. 2. Products Portfolio: ITCs portfolio of products and services is represented by over 50 energetic Brand s in a range of more than 650 stock keeping units (SKUs). 3. Distribution Network: ITCS products are available in over 6 million retail outlets in the country. Its formidable Distribution organisation directly services more than 2 million of th ese retail outlets. It used its experience of transporting and distributing toba cco products to remote and distant parts of India to the advantage of its FMCG p roducts. 4. Environmental Friendly: ITC has a status of being Water Positive for the 8th consecutive year, Carbon Posit ive for the 5th year in succession and solid waste recycling positive for 3 years i n a row. ITC is the only enterprise in the world of its size to have achieved an d sustained these three global environmental distinctions. As consumers and inve stors become more environment friendly, these considerations will provide the or ganisation an opportunity to create USPs and stronger brand loyalty and brand eq uity. 5. Research & Development: ITC recognises that cutting edge R&D can foster breakthrough innovation and crea te powerful sources of sustainable competitive advantage. This vision has led to the establishment of a state of the art R&D centre at Bengaluru with over 50 wo rld- class scientists. Its R&D program will create new game changing business op portunities. 6. Socially Responsibility: ITCs initiatives to build social capital through extensive community engagement h ave led to the creation of sustainable livelihood opportunities for over 5 milli on people. ITC has helped create more than 20,000 rural women entrepreneurs. ITCs supplementary education initiative has reached out to over 200000 school childr en in rural areas. ITCs value chain supports over 5 million livelihoods. 7. Brand Equity: ITC is one of the best known brands in India. The above factors definitely make the company a strong corporate organisation. Weaknesses: In spite of several strengths, there remain some areas of weakness and concern f or the organization. 1. Dependency on the tobacco business: To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco revenue. Cigarettes account for 47% of the companys turnover and for 80%

of its profits. So there is an argument that ITCs move into FMCG is being subsid ised by its tobacco operations. 2. Not present in many important sectors: Although ITC is a diversified company trading in a number of business sectors su ch as cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal care and other FMCG products, greeting cards, Informat ion Technology, safety matches, incense sticks and stationery etc. Yet, it does not have presence in many important sectors such as insurance, infrastructure, b anking and financial services, BPO, telecom, automotive etc. and thus becomes co mparatively weak when compared with other conglomerates like the Bharti group, t he Tata group and the Ambani groups. 3. Local Company: ITC is a local company. It does not have a large portfolio of exports in either products or services. This makes the company comparatively weak in terms of bein g able to leverage global opportunities, talent & financing.

Opportunities: 1. Leveraging its brand equity ITCs products & services are of high quality. If ITC enter into any business or l aunch any product, consumer know its ITCs product, consumers shall trust these to be of good quality. ITCs brand equity would make ITC successful in most sectors. 2. Right size at the right time: A corporate must have the right organisational and investment capability and thi s must coincide with a growth stage in the economy in which it operates. This se ems to be a perfect setting for ITC. Given the consumption of most products and services in India at a level far below the global standards and that the Indian economy is on a roll make it a perfect platform for a company like ITC which alr eady is at a fairly strong stage in its own growth with the necessary organisati onal and financial muscle. For example, the FMCG sector is expected to triple in size to over Rs. 355000 crores by 2018. ITC is a major player in this sector. I TC has investment opportunity of up to Rs. 8000 crores over the next 7 to 10 yea rs to drive growth in this sector. 3. Synergies across businesses and leveraging domain expertise for growth in oth er sectors: ITCs fast growing Information Technology subsidiary is founded on a strong base o f domain knowledge derived from ITCs multiple businesses. It will continue to add significant value to ITCs business by providing solution and by enabling them to leverage Information Technology as a source of superior competitive advantage. Similarly, ITCs agri-business with its deep rural linkage is well poised as a sup ply chain partner to create value for ITCs Food and Tobacco businesses. Its large presence in rural India, with the unique e-choupal infrastructure, will be prog ressively leveraged to widen ITCs FMCG distribution network. ITC uses the network to source and create the raw material from the farmers. 4. The unique reach and distribution network of E-choupal: E-choupal is a community of practice that links rural Indian farmers using the i nternet. It is also an ambitious project that has a goal of reaching 10 million farmers in 100000 villages. It has already benefited 4 million farmers in 40000 villages. This platform provides ITC an opportunity, virtually unmatchable, to r ide the rural growth that India in witnessing for the current sets of products a nd services and additional ones that can be offered from the same network. Threats: 1. Competition: The obvious threat is from competition, both domestic and international. The law of economies dictate that if competitors see that there is a solid profit to be

made in an emerging economy, more and new products and services will be made av ailable. Global companies will see India as an exciting opportunity for themselv es to find new market segment for their own offerings. This will put ITC under c onstant and sustained competitive pressure from international offerings with dee p pockets for a long battle. 2. Pressure groups and Government Policy: Tobacco and allied product businesses, a major cash cow for ITC, will remain und er public, anti-tobacco, health lobbies and governments through higher excise du ties, advertising restrictions, and packaging guidelines, point of sale restrict ions, cancer and TB campaigns with even a remote possibility of complete ban. 3. General threats: Wide income disparities leading to social tensions, terror acts, political risks , legislation changes, tiffs with taxation and excise authorities and public out rage from negative impacts of products d services remain general treats for the company. The above, though few, could be potent threats to the company. In summary, ITC will need to overcome its weaknesses, leverage the opportunities through its multiple strengths and be wary of the threats to march into another 100 years of its glorious journey. 3.9 Working Area of ITC Ltd ITC is now a days doing eight (8) major area of production, distribution and serv icing. These are as followsA. Cigarettes and Tobacco. B. Hotels. C. Packaging D. Paper board & Specialty paper E. Information Technology (IT) F. Life style retailing G. Agro-Exports H. Group Companies etc A. Cigarettes and Tobacco: - ITC buys nearly 50% of all cigarettes types to bacco grown in India. It has been India single largest integrated sources of qual ity tobacco for customer in 37 countries over the last 6 decades. ITCs Comprehensi ve and sophisticated R&D facilities cover all aspects of cultivation. Processing and packaging. ITC to process and deliver 100 million Kegs of high quality toba cco per Annum. ITC also co-operates with government agencies to develop new vari eties of tobacco and to develop new areas for tobacco cultivation. B. Hotels: - ITC entered into hotels field in 1975. He is giving best hospitalit y services in some field. ITC have 46 hotels across 42 destinations all over Ind ia. C. Packaging: - ITC also producing packaging items likeI. Flip top boxes. II. Car board outer. III. Shells and slides. IV. Soft cup and strap labels V. Bundle wraps VI. Flap boxes VII. Inner frames VIII. Coupon inserts & Variety IX. Folding crotons The major unit (factory) which is producing packaging items- one is munger (Biha r) and other is Tiruvottiyar hear Chennai. D. Paper Board & Specialty paper: - ITC has now integrates sits paperboard & spe cialty paper business into its newly created (PSPD), to how new strategic & oper ational synergies. ITC is one of the world most modern and contemn porary manufac tures of packaging (paper board) boards, with a manufacturing capacity of over 2 ,00,000 tones par year (1) packaging board coasted folding box boards, solid ble

ached sulphates board, white unit chipboard, liquid packaging board (2) cast coa ted papers and boards. The division also produced quality(a). Printing & Writing papers (b). Eco- friendly papers (c). Photo copier papers. Specialty paper:- ITC is the premier manufacturer of specialty paper in India, with a diversified product. Range ITCs specialty paper are used in the manufactur er of cigarettes, decorative laminates. Electrical equipment, fire works and aut omotive factory filters. They are also used for fire printing, packaging and car bonizing. The division pioneered the manufacturer of specialty paper for Indian cigarette industry in 1949. It currently offers a comprehensive range of cigarette Tissues; plug Wray, tippi ng base, printed tipping papers and metailising base. E. Information Technology (IT): - ITC has recently spun off its 20 year old info rmation system division into a wholly owned subsidiary to aggressively pursue gr owth opportunities in this sector. ITC Infotech India Ltd offer a powerful custo mer value proposition based on its in depth domains know ledge gained from the ex perience of servicing a range of internal & external customers across diverse do mains. 1. FMCG 2. Hoteliering 3. Packaging 4. Paper boards 5. Specialty papers 6. International Trading Etc. F. Life style retelling: - ITC also manufacturing ready made garments range of international quality of relaxed wear under the brand name wills sport. It have 48 retail out across 38 cites in the country. Recently he also lunched another br and name john players offers complete range of contemn porary mens wear- like shir ts, Trousers, t-shirts & denims. It also lunches in Nov. 2002 under brand name t he classes collection. G. Agro-Exports: - ITC international business division (IBD) is doing Exports ac tivities of Agriculture products and processed foods Etc. he exports following items to UK, US and Another European country1. Soya meal. 2. Rice 3. Aqua products. 4. Peanuts. 5. Coffee. 6. Wheat. 7. Sesame Seeds. 8. Black pepper 9. Processed & frozen fruits & vegetables. H. Group Companies: - Main group companiesa). ITC Hotels. b). Surya Nepal private limited. c). International travel house d). Land base 4. ANALYSIS OF DATA In order to extract the meaningful information from the data collected an analys is of data is done using pie charts, bar graphs etc. 4.1 The first objective of the research project is concerned with finding out wh

at percentage of people likes to eat snacks. The pie chart given below is clear on the percentage of people who like to eat snacks. Out of 20 respondents 14 lik e to eat snacks while 6 dont. Fig No- 4.1

4.2 Second objective was to find out how much people are satisfied with Bing o. Following pie chart shows the satisfaction level of people: Fig no- 4.2 That means out 20 people 10 people are fully satisfied with bingo and 4 people a re partially satisfied with bingo and 6 people are not satisfied with bingo. 4.3 cks The third objective was to find out how much people spend weekly on sna

Fig no- 4.3 From the above diagram it is clear that most people spend less on Snacks. And ve ry small part of the sample spends more on snacks weekly.

4.4 Our fourth objective was to find out the preferences of people for differen t brands. Here, we aim to find out the most popular brand of snacks excl uding Bingo. Fig no- 4.4 In the above graph we can see that Frito Lays is the most popular brand among pe ople followed by remaining brands. 4.5 The fifth objective of the research project is concerned with finding out wh at percentage of people like to eat Biscuits. Fig no- 4.5 The chart given below is clear on the percentage of people who sale the candies. Out of 100 respondent 90 sale the BISCUITS while 10 dont.

4.6 The Sixth objective is concerned with finding out retail captured by dif ferent companies.

Fig no- 4.6 Interpretation The analysis reveals that BRITANNIA & PARLE are the two brands who are present i n most of the retail outlets I visited. This tells about the acceptance levels a nd the distribution system of these brands. The other brands present in the mark et are CREMICA, PARLECOS, BONN, ANMOL, HEINZ, ASIAN, LOTTE, FRONTIER, AND CROWN.

4.7 The Seventh objective is concerned with finding out most preferred brand s of biscuits

Fig no- 4.7 Interpretation Britannia is the most preferred brand in 40% while Parle 25%, Priya gold is 20% and ITC is 15%.

4.8 The Eighth objective, which type of shampoo customer prefers to purchase ? S.NO Option Number of response 1 VIVEL,CHIK AND SUPERIA 5 2 CLINIC PLUS AND SUNSILK 10 3 VATIKA 2 4 GARNIER 3 Table no- 4.1

Fig no- 4.8 Interpretation This shows existing higher level of consumer acceptance by HUL brands as compare to other products.

4.9 The Ninth objective, Do you like to purchase ITC products in bulk? If ye s than S.no Option Number of response 1 WEEKLY 8 2 MONTHLY 4 3 QUATERLY 3 4 NEVER 5 Table no- 4.2 Fig no- 4.9 Interpretation It shows that somewhere retailer feels risk for storing extra stock, that can be because of future uncertainty.

4.10 The Tenth objective, do you think ITC need to put more focus on the promoti on of their product. S.No Option Response 1 YES 10 2 NO 5 3 CAN NOT SAY 5 Table no- 4.3

Fig no- 4.10 Interpretation It shows that ITC need to give more attention for their promotion activity.

RECOMMENDATIONS AND CONCLUSIONS For Biscuits Consumer preference for ITC brand of biscuits is least. So, it is suggested that compant should study reasons for this and work on improvement of brand preferen ces in biscuits segments.

For Bingo ITC need to work on chips category as there is a huge competition from Frito Lay s. Conclusion The Bottom Line of the market research speaks that FMCG products in India has been increasing on day by day basis. That sounds good for international as well as domestic market, for it proper und erstandings of consumer behaviour and requirement is very vital.

BIBLIOGRAPHY The list of reference for the purpose of completing this marketing project is as given below: BOOKS: Marketing Management Philip Kotler; The eleventh edition published by Pearson Edu cation, Consumer Behaviour- Leon. G Schiffman and Lazark Anuk, Modern Marketing- Rsn Pillai and Baghavati; Third edition published by S Chand & Co. NEWSPAPER: Economic times INTERNET: 1. www.itcportal.com 2. Search Engine www.Google.com 3. www.icicidirect.com 4. Marketing Management by Kotler 5. Information collected by distributor and company officials 6. http://www.financialexpress.com/news/now-hul-and-itc-in-soap-opera/25744 9/2

ANNEXURE

QUESTIONNAIRE RESEARCH PROJECT ON THE STUDY OF ITC FMCG This is survey on ITC FMCG for the partial fulfilment of the requirements for th e awards the degree of Post Graduate Programme in Management. So kindly give you r response to these questions:QUESTIONNAIRE Name: _______________________ Age : ________

Signature: ___________________ General Instructions: 1. Answer all questions. 2. Indicate your answer by marking a tick against an appropriate option. 3. Mark only one option in all questions. Q1. Do you like to eat Biscuits? Yes ___ No ___ Q2 Have you ever tried Sunfeast? Yes __ No ___

Q3 Which flavours does you like the most? SUNFEAST GLUCOSE BISCUITS ______ SUNFEAST MARIE LIGHT ______ SUNFEAST CREAM BISCUITS ______ SUNFEAST SPECIAL BUTTER ______ SUNFEAST SPECIAL CEASEW ______ SUNFEAST COCONUT ______ SUNFEAST BOURBON CREAM ______ SUNFEAST GOLDEN BAKERY ______

Q4.

Overall, how satisfied are you with BINGO? Very satisfied ___ Somewhat satisfied ___ Unsatisfied ___

Q5. Compared to other BISCUITS (such as PRIYAGOLD BISCUIT, BRITANNIA, and PARLE etc.) That are available, would you say that Sunfeast is? Much better ___ Somewhat Better ___ About the same ___ Somewhat Worse ___ Much Worse ___

Q6. Before switching on to Sunfeast, which BISCUITS (did you prefer)? PRIYAGOLD BISCUIT BRITANNIA PARLE ETC. _________ _________ _________ _________

Q7. How did you first discover Sunfeast? Advertising- T.V, Newspaper, Radio Friends/ Family Saw it in store Other Q8 Have you heard of ITCs BINGO? Yes ___ No ___ Q9. Have you ever tried BINGO? Yes ___ No ___ How often do you have BINGO? Once a week or more often Everyday 2 to 3 times a month Q11. How much do you spend weekly on snacks? Below Rs. 50 ___ Rs. 50-100 ___ More than Rs. 100 ___ Overall, how satisfied are you with BINGO? Very satisfied ___ Somewhat satisfied ___ Unsatisfied ___

___ ___ ___ ___

Q10. _

___ __ ___

Q12.

Q13. Compared to other snacks (such as Kurkure, Lays, and Diamond etc.) that a re available, would you say that BINGO is? Much better ___ Somewhat Better ___ About the same ___ Somewhat Worse ___ Much Worse ___ Q14. Before switching on to BINGO, which snack did you prefer? Lays Kurkure Uncle chips Diamond _____ _____ _____ _____

Other Namkeens Q 15

_____

Which shampoo you prefer to purchase? Vivel,superia &chick Sunsilk & clinic plus Gardnier Vatika --------------------------------------------