Summer Training Project

Report
On

Retail Coverage
Submitted in the partial fulfillment of the requirement for the
award of the Degree of

Master of Business Administration

(2012-14)

Under the supervision of:

By:

Mr. Deepak Kumar

Jitender

Shoolini University of
Biotechnology & Management
Sciences

Acknowledgement
I am neither a research expert nor a trend spotter; I am a management student with foundation of
management principles and theories, who is curious about various sectors and its latest
happenings.

Definitely, I cant ignore the technology, with internet as the backbone and those search engines
which helped me in building up this research project.

To being with, I am obliged to Mr. Manish Sharma (Area Executive, ITC Ltd.) & Ms. Rajni
(Human Resource Manager, ITC Ltd.) who allotted me this chance and without their guidance
and constructive criticism this report might have not been completed. I would like to thank Agent
franchise owner, supervisor and individuals & for helping me in making project.
I would like to express my heart full gratitude to Mr. Deepak Kumar (Area Executive, ITC Ltd.),
who helped me in sharpening my thinking by cheerfully providing challenging comments and
questions. Im also thankful to the management & all employees of ITC LTD.

Lastly, I would like to thanks to the ALMIGHTY and my parents for their moral and financial
support and my colleagues with whom I shared my day-to-day experiences and received lots off
suggestions that improved my work quality.
Jitender

MBA

PREFACES

In the economy for tightening Business nuts and bolt of any company need to measure its market
position in a certain time interval with ever changing theories and the concept of market.

For this assessment we need the robust methodology of survey. Although surveys does not
reveal the absolute solution of any objectives, but it provides the inclination towards a good
output.
ITC Ltd. is a good FMCG company in Indian market. In this project I compare the Retail
Coverage of this company. Find the market share & market potential of this company etc.

The preparation of this report provides you great pleasure in releasing our work and market
experiences in few pages which shows overall and experienced knowledge and the practical
approach about the style of a professional and thing which I found various affecting to our
marketing and product image.

The project termed as Retail Coverage has made an effort to find out the issues concerning
with ITC LTD.

TABLE OF CONTENT
S. No

Chapters

Page No

Title Page

Certification from organization

Acknowledgement

Prefaces

Executive Summary

Topic

Objective of the study

Research methodology

Company Profile

9-26

SWOT Analysis

27

Competitive Analysis

28-31

Industry Analysis (Using Porters five forces model)

32-33

10

Analysis and interpretation

34-46

11

Findings and Recommendations

47

12

Limitations and Conclusions

48

13

Questionnaire

49-50

14

Bibliography

51

EXECUTIVE SUMMARY
TOPIC: Retail Coverage

The report is an earnest endeavor made to understand the present market scenario of FMCG in
Shimla region and simultaneously ascertain visibility and availability of ITC products. I was
required to conduct a market study to see the coverage by ITC products and bring out the
potential and loyal retailers so that the company could maintain the market leadership in the
existing business scenario in the FMCG market.

During the course of study I visited around 200 retail stores and conducted personal interviews
with the retailers to find out major competitors of ITC. I also used observation technique to
ascertain penetration of the ITC products and the market potential for the new products. Also
interviews were conducted to determine major competitors in FMCG.

OBJECTIVES OF THE STUDY

The objective of the summer training is to ensure that I as a management student develop in real
life experience for handling the specific project and also to develop all understanding of the
various management activities related to the area of my specialization. This training gives us a
substantial corporate exposure and also serves as a useful tool of interaction with the corporate
sector.

The project has been derived from the field of Marketing and is entitled as Retail coverage of
ITCs products.

The main objective of the study is:

To know the retail coverage of ITC products.

Identify the major competitor of ITC FMCG products in the market.
To check the competitors market strategies.
Estimate market potential for ITC FMCG products.

RESEARCH METHODOLOGY:
It includes the response of ITC products from retailers at retail outlets with respect to its
competitors.

Work at retail outlets:

1) To check the availability of products.
2) To check visibility of products.
3) Identifying what would the factor to increase sale.

Data collection technique: -

1) Interview with retailers.

2) Questionnaire.
3) Observation.

Research instrument:

Direct contacts with retailers.

Sampling Plan: -

Sample size

200 retailers

Sampling Method

Simple Random

Sampling Area

Shimla
9

10

Company Profile
ITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly
known as Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander
Deveshwar. The company has its registered office in Kolkata. It employs over 20,000 people at
more than 60 locations across India.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,
Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel,
Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an
outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of
Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.
It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's
foremost private sector companies with a market capitalization of over US $ 22 billion and a
turnover of US $ 6 billion.
ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most
Reputable Companies by Forbes magazine, among India's Most Respected Companies by
Business World and among India's Most Valuable Companies by Business Today. ITC ranks
among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance
and published by the Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.
ITC is one of India's most valuable and respected corporations.

11

Vision statement
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 mission statement

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

Positioning statement
"Enduring Value. For the nation. For the Shareholder."

12

ITCs corporate strategies are

Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.

Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.

Ensure that each of its businesses is world class and internationally competitive.

Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITCs various businesses.

Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to

catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

13

HISTORY OF ITC
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of
India Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's
existence. The Company celebrated 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
310,000. The Company's ownership progressively indianised, and the name of the Company was
changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio
encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle
Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were
removed effective September 18, 2001.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcome group Hotel Chola'. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 70 owned and managed properties spread
across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to
Surya Nepal Private Limited (Surya Nepal).

14

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was merged with
the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in
November 2002.
In 1990, leveraging its agri-sourcing competency ITC set up the Agri Business Division for
export of agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative
began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4
million farmers. ITC's first rural mall, christened 'Choupal Sagaar' was inaugurated in August
2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states
of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched 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 'Expressions Paperkraft', a range of premium
stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the
school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening
wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John
Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier
fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and
retailers as the single largest B-2-B platform for the Fashion Design industry. In 2007, the
Company introduced 'Miss Players'- a fashion brand in the popular segment for the young
woman.

15

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
InfoTech India Limited, to more aggressively pursue emerging opportunities in this area.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with
the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.
In 2002, ITC entered the confectionery and staples segments with the launch of the brands minto and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast
growing branded snacks category with Bingo! in 2007.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets popular
safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation
of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and
Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,
Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and
women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian
consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels
and Soaps in September, October and December 2007 respectively. The Company also launched
the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in
October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of
shampoos in June 2008.
16

Paperboard
Packaging

17

ITC -FMCG
Cigarettes
ITC is the market leader in cigarettes in India. Its highly popular portfolio of brands includes
Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley,
Bristol and Flake.
ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur
and Kolkata. These factories are known for their high levels of quality, contemporary technology
and work environment.
ITC's has presence in overseas markets as well. In the extremely competitive US market, ITC
offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has
become a key player in the GCC markets through growing volumes of its brands.

18

Foods
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch
of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with
brand launches in the Confectionery, Staples and Snack Foods segments.
The Foods business strives to deliver quality food products to the consumer. All products of
ITC's Foods business available in the market today have been crafted based on consumer insights
developed through extensive market research. ITC's state-of-the-art Product Development
facility is located at Bangalore.
The Foods business is represented in 4 categories in the market. These are:
1. Ready To Eat Foods
2. Staples
3. Confectionery
4. Snack Foods

19

Lifestyle retailing
ITCs ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of
exclusive specialty stores.
Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear,
Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di
Wills an exclusive range of fine fragrances.
With a distinctive presence across segments at the premium end, ITC has also established John
Players as a brand that offers a complete fashion wardrobe to the male youth of today.

20

E
ducation & Stationary
ITC made its entry into the stationery business in the year 2002 with its premium range of
notebooks. ITC's Education and Stationery Products are marketed under the brands "Classmate"
and "Paperkraft".
The Classmate range of products is targeted at satisfying education & stationery needs of
students & young adults. The product range includes Notebooks, Math Instruments, Scholastic
Products as well as Writing Instruments.
The Paperkraft range of products aims at satisfying the stationery needs & office consumables
need of office executives & working professional. The continuously expanding product range
under Paperkraft includes Premium Business Paper, Paper Stationery, Markers & Highlighters.

21

22

Safety Matches
ITCs range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega
and Aim Metro. With differentiated product features and innovative value additions, these brands
effectively address the needs of different consumer segments. The Aim brand is the largest
selling brand of Safety Matches in India.

Aggarbattis
ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage
units in 2003. Mangaldeep Agarbattis are available in a wide range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.Durbar
Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide
consumer acceptance..

23

Personal care
ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC
has already launched an array of brands, each of which offers a unique and superior value
proposition to discerning consumers. Anchored on extensive consumer research and product
development, ITC's personal care portfolio brings world-class products with clearly
differentiated benefits to quality-seeking consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills'
'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is
being progressively extended nationally.

24

WelcomGroup of Hotels
ITC-Welcome group: fastest growing Hospitality chain in India

Over 90 properties across 70 locations

5 Brands ITC Hotels, Welcome Hotel, My Fortune, Fortune & Welcome Heritage

15 5-Star Deluxe/ 5-Star Properties with over 3800 rooms

40 Fortune Hotels with over 3000 rooms

40 Welcome Heritage Properties with nearly 1000 rooms

Exclusive tie up with Starwoods Luxury Collection for 10 Hotels.

First hotel chain in the world to have all its premium luxury hotels certified at the highest
LEED (Leadership in Energy and Environmental Design) Platinum Rating

25

MARKETING STRATEGY USED BY ITC

ITC started an earnest exercise by creating a new brand image and corporate philosophy by
investing in new business categories like personal care, premium apparel, rural business (eChoupal) and foods. All along using its famed distribution strengths built through its successful
past businesses like cigarettes, paperboards and packaging, hotels and agri business, to create
synergies across its verticals and help prop up its new businesses, like personal care and foods.
ITC has a well thought-out strategic approach. Rather than acquiring weaker brands to get into
these new segments inorganically, it created a range of new personal care and branded apparel
brands.
The first step in this well-planned strategy was the launch of Wills Lifestyle, the premium
branded apparel business in 2002.
ITC then moved on to take the competition head on in the FMCG domain, through ITC Foods
in August 2001, and personal care business, which is the focal point of this story, in 2005. It has
created good impact with its well etched-out Personal Care Brands. Under this category, brands
like Essenza Di Wills, Fiama Di Wills, Vivel Di Wills, Vivel and the Superia were designed to
take care of various sets of consumer segments.
But behind this launch was five years of intensive on ground research of market conditions and
consumer expectations. Over one lakh consumers were surveyed across the country to test
various prototypes. Acceptance benchmark was kept as high as 90 percent for the final products.
ITC called this exercise as '3E approach explore, establish and execute. As an adage goes
'if you have to win a race, you have to clearly target the No 1', ITC too aimed the No 1 which
happened to be the formidable HUL (which still reigns over 50 percent of the FMCG market).
And ITC's target was HUL and P&G only. ITC roped in its tobacco business veteran Sandeep
Kaul to spearhead the personal care launch; it also sought help from product formulation and
branding experts in Europe and America to formulate the fragrance, aesthetics and packaging.
Many of the brands have also been developed at its R&D centre. The results are there for
26

everyone to see. In less than four years, ITC has been able to create brand awareness and
consumer acceptance for its five product lines Essenza Di Wills, Fiama Di Wills, Vivel Di
Wills, Vivel and the Superiaeach targeted at the needs, aspirations and usage behaviour of
different consumer segments. Kaul informs that the strategy for designing personal care is that
everyone is a potential consumer.

Distribution system at ITC

The process of passing down each passing the product down the chain to the next organization
through Chain of intermediaries, before it finally reaches the consumer or end-user is known as
the 'distribution chain' or the 'channel.'
A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers,

Dealer Or wholesaler, who sells to end customers

Advertisement typically used for consumption goods

ITC follows:
CHANNEL WISE DISTRIBUTION

Here the total product is divided into different channels like, Health

care product, Personal care products, Home products & etc.

BEAT WISE DISTRIBUTION

Here total market is divided into different areas where the products are served to all the
outlets exist in that area.

27

SWOT of ITC
Strengths

Cigarette market is 22,000 crore and ITC has lions share in it.

Strong brand recognition and product portfolio.

Distribution network.

Weaknesses

Dependence on tobacco revenues

Negative Connection of Tobacco

Unrelated diversification.

Opportunities

Consumption Of personal care products

Rural Market

E-Choupal

Threats

Competition both Domestic & International

Increasing Tax on cigarettes

Regulatory restrictions on cigarettes

Ban on smoking
28

Competitive Analysis

Hindustan Unilever Limited (HUL) is India's largest fast moving consumer goods company,
touching the lives of two out of three Indians with over 20 distinct categories in home & personal
care products and food & beverages. HUL is also one of the country's largest exporters; it has
been recognized as a Golden Super Star Trading House by the Government of India.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as
Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd.It is headquartered in Mumbai, India and has employee strength of
over 15,000 employees and contributes for indirect employment of over 52,000 people. The
company was renamed in June 2007 to Hindustan Unilever Limited.
HUL is the market leader in Indian consumer products with presence in over 20 consumer
categories such as soaps, tea, detergents and shampoos amongst others with over 700 million
Indian consumers using its products. It has over 35 brands. Its a company that has consistently
had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands).
Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and its
products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in
India.

29

Strengths:

Weaknesses:

Strong brand portfolio, price quantity

& variety.
Innovative Aspects.
Presence of Established distribution
networks in both urban and rural
areas.
Solid Base of the company.
Corporate Social
Responsibility(CSR)

Opportunities:

"Me-too" products which illegally

mimic the labels and brands of the
established brands.
Strong Competitors & availability
of substitute products.
Low exports levels.
High price of some products.
High Advertising Costs.

Threats:

Large domestic market over a

billion populations.
Untapped rural market.
Changing Lifestyles & Rising
income levels, i.e. increasing per
capita income of consumers.
Export potential and tax & duty
benefits for setting exports units.

Tax and regulatory structure.

Mimic of brands
Removal of import restrictions
resulting in replacing of domestic
brands.
Temporary Slowdown in Economy
can have an impact on FMCG
Industry.

SWOT Analysis of HUL

30

Procter & Gamble Co. (P&G) is an American company based in Cincinnati, Ohio that
manufactures a wide range of consumer goods. In India Proctor & Gamble has two subsidiaries:
P&G Hygiene and Health Care Ltd. and P&G Home Products Ltd.
P&G Hygiene and Health Care Limited is one of India's fastest growing Fast Moving Consumer
Goods Companies with a turnover of more than Rs. 500 crores. It has in its portfolio famous
brands like Vicks & Whisper. P&G Home Products Limited deals in Fabric Care segment and
Hair Care segment. It has in its kitty global brands such as Ariel and Tide in the Fabric Care
segment, and Head & Shoulders, Pantene, and Rejoice in the Hair Care segment.
Procter & Gamble entered Indian markets in 1951 with Vicks Product Inc. USA, branch of P &
G.
Procter & Gamble India since then has launched Whisper - the breakthrough technology sanitary
napkin, Ariel detergent, Ariel super soaker, Pantene Pro-V shampoo, Head & Shoulders
shampoo, Tide Detergent Powder - the largest selling detergent in the world. In 2003, Procter &
Gamble Home Products Limited launched Pampers - world's number one selling diaper brand.
Today, Proctor & Gamble is the second largest FMCG Company in India after Hindustan Lever
Limited.

31

Strengths:

Porters Five Forces

Threat of new entrants

Weakness:
Degree

Remark

Low

Favorable

Leading Market Position

Threat
substitute products
ofDiversified
and innovative
product Portfolio
Strong Finances in past
Bargaining power of customers
years

Quality control Problem

High
Unfavorable
Decreased
Revenues in
their Northeast Asian
Market
High
Unfavorable

Bargaining power of suppliers

High

Opportunities:
Competitive rivalry within an industry

Developing Markets
Demographic trends across
the world

Unfavorable

Threats:
High

Unfavorable
Competitors
Rising cost of energy
prices
New Regulations

SWOT Analysis of P&G INDUSTRY ANALYSIS

Porters five force model

32

Interpretation: [FMCG SECTOR]

1. Threat of new entrants:
Economies of Scale

Not Easy to Achieve

Positive

Product Differentiation

Requires huge R&D

Positive

Capital Requirements

High

Positive

Access to Distribution Channels

Not Easy

Positive

Cost Disadvantages

More

Positive

Government Policy

More

Positive

Switching Costs

Low

Negative

2. Threat of substitute products:

Products with improving price/performance tradeoffs relative to present industry products.

3. Bargaining power of customers:

Low switching cost.

Buyers are numerous and fragmented.

Considering buyer power retailers, they are able to negotiate the price with the company.

4. Bargaining power of suppliers:

Supplier industry is dominated by a few firms.

Suppliers products have few substitutes.

33

Buyer is not an important customer to supplier.

Suppliers product is an important input to buyers product.

Suppliers products are differentiated.

Suppliers products have high switching costs.

Supplier poses credible threat of forward integration.

5. Competitive rivalry within an industry:

Using price competition.

Staging advertising battles.

Making new product introductions.

Increasing consumer warranties or service.

34

Source: Data collected through Questionnaire.

Figures in parentheses indicate percentage.

Table no. 10.1.

Frequency of DS
Weekly

144 (72%)

Fortnightly

44 (22%)

Twice a week

0 (0%)

Monthly

12 (6%)

The graph shows that 72% of the DS goes weekly to the retail outlets for taking orders while 6%
of the DS go only once in a month.

35

Table no. 10.2.

Frequency of the competitors DS

Weekly

166 (83%)

Monthly

20 (10%)

Twice a week

0 (0%)

Monthly

14 (7%)

The data above in table and graph shows that the83% of DS of competitors are going weekly on
the retail outlets while 7% of the DS go only once in a month.

36

Table no. 10.3.

Are the orders delivered to you on time?

Strongly Agree

28 (14%)

Disagree

72 (36%)

Agree

94 (47%)

Strongly Agree

6 (3%)

The above pie-chart shows that 14% of the retailers are strongly agree that there product is
delivered to them on time and 47% are of them agree but 36% of the retailers told that their
orders is not delivered to them on time.

37

Table no. 10.4.

Are the orders of competitors delivered to you on time?

Strongly Agree

58 (29%)

Disagree

22 (11%)

Agree

106 (53%)

Strongly Agree

14 (7%)

The above pie-chart shows that 29% of the retailers are strongly agree that there product is
delivered to them on time and 53% are of them agree and only 7% of the retailers are not happy
because the product is not delivered to them on time.

38

Table no. 10.5

Quality of competitors service

Excellent

16 (8%)

Bad

14 (7%)

Good

146 (73%)

Average

24 (12%)

200
160
120
80

146

40
0

16

14

Excellent

Bad

24
Good

Average

The data shows that 73% of the retailers said that the quality of the competitors service is good
while only 14% of retailers are not happy with competitors service.

39

Table no. 10.6

Best company in terms of services

HUL

64 (32%)

Frito-Lay

60 (30%)

Godfrey Phillips India

18 (9%)

Britannia

16 (8%)

Nestle

42 (24%)

24

32

HUL
Fritolay
Godfrey Phillips India

Britannia
Nestle

9
30

40

The above chart clearly shows that HUL & Frito-Lay are the market leader in terms services and
Nestle is also providing good services to their retailers.Table no. 10.7

Are your orders fulfilled properly?

Strongly Agree

30 (15%)

Disagree

48 (24%)

Agree

110 (55%)

Strongly Disagree

12 (6%)

200
160
110

120
80

48
30

40

12

0
Strongly Agree

Disagree

Agree

Strongly Disagree

The table shows that the 70% (55% agreed & 15% strongly agreed) that the orders they give are
properly fulfilled while 30% (24% disagree & 6% strongly disagree) that they orders they give
are not properly fulfilled.

41

Table no. 10.8

ITC distribution channel

Excellent

34 (17%)

Bad

44 (24%)

Good

74 (37%)

Average

48 (24%)

200

160

120

80

40

74
34

44

38

0
Excellent

Bad

Good

Average

The chart above shows that the 36% retailers says that ITCs distribution channel is good while
17% marked it as excellent and 19% said that its average, but only 22% retailers perception
about ITCs distribution channel is bad.

42

Table no. 10.9

Are your complaints solved properly?

Strongly Agree

24 (12%)

Disagree

10 (5%)

Agree

158 (79%)

Strongly Disagree

8 (4%)

Sales

24
10

158

The data above shows that above 90% of the respondents agree that their complaints are properly
solved, whenever they face any problem

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Table 10.10

Growth rate of ITC

Excellent

20 (10%)

Bad

12 (6%)

Good

88 (44%)

Average

80 (40%)

90
80
70
60
88

50

80

40
30
20

20

12

10
0
Excellent

Bad

Good

Average

The graph shows that 44% respondents said that the growth rate of ITC is good and 40% said
that its average and only 6% of the respondents think that the growth rate of ITC is bad.

44

Table 10.11

Services of ITC
Excellent

34 (17%)

Bad

44 (24%)

Good

74 (37%)

Average

48 (24%)

Sales

52

Excellent

36

Bad
Good
Average
62

60

The chart shows that only 31% of respondents marked services of ITC as bad while rest of them
marked ITC services as Excellent, Good & Average.

45

Table no. 10.12

Rating of ITC

80
70
60
50
40
30
20
10
0

64

34

76

18

76
52
14
1

35

22

From the data collected through questionnaire it is founded that the respondents has give overall
of 3.34 points to ITC from 5 and which is above average and can also b called as good.

46

Findings & Recommendations

Analyzing and identifying major competitors. Keeping a tab on their strengths and weakness

and accordingly preparing own strategy.

Increasing awareness for ITC products among the consumers and retailers.
Efficient marketing of products to retailers.
Increasing the efficiency of distribution system. Ensuring every shop in the area must have

ITCs product.
Appointing knowledgeable salesmen who can market products to retailers effectively.
Tie up with regional/local newspapers running competitions at the time of festive season.
There is vast distribution gap between ITC Bingo snacks and Frito-Lays which has to be
filled up in order to increase the sales for that ITC should consider:
(a)Width of Distribution: total number of outlets covered should be increase in order to

bridge the distribution gap. For that ITC should

(b) Increase the number of DS.
(c) Ready Stock: there are many areas around the city where supply through loading
auto is not possible for that ready-stock should be made available.

We can increase the total margin given to retailers.

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Limitations and Conclusion

Limitations:

The time period for the study was not enough for such a vast topic.
It was difficult for the salesmen to pinpoint the sales of a particular brand in retail stores.
As the nature of research was exploratory so it was difficult to cover each and every

retailer.
Many retailers dont express their original perception and views because of biasness.
Certain questions were not answered with justice.

Conclusion:
From the above comparison it could be inferred that besides ITC is new in the FMCG sector but
still it has managed to reach a level at which the other strong companies are. A score of 3.34 is a
very good score at a point when the old competitors (leaders) are at a score of 3.8.

Lays has been around for a longer time and has its loyalists. Lays scores on flavor while
Bingo is crunchier. Right now Lays has the upper hand but Bingo has a good thing going
with new and innovative products like 'Mad Angles'.

There is a need to put the image of our product Bingo in the mind of customers before
they come to purchase at shop.

There is need of more focus on the sales of Personal care products.

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Retail coverage

Area-Shimla

Questionnaire
Q 1) Name of the retailer __________________________________________.
Q 2) Type of retailer ______________________________________________.
Q 3) Name of the DS covering the beat _______________________________.
Q 4) How many times does the DS comes?
a) Weekly

c) Twice a week

b) Fortnightly

d) Monthly

Q 5) How many times does the competitors DS comes?

a) Weekly

c) Twice a week

c) Fortnightly

d) Monthly

Q 6) Are the orders delivered to you on time?

a) Strongly agree

c) Agree

c) Disagree

d) Strongly disagree

Q 7) Are the orders of competitors delivered to you on time?

a) Strongly agree

c) Agree

c) Disagree

d) Strongly disagree

Q 8) How do you rate the services of competitors?

a) Excellent

c) Good

b) Bad

d) Average

Q 9) Which company is good in terms of services?

a) HUL
d)Britannia
b) Frito-Lay

e) Nestle

c) Godfrey Philips India

49

Q 10) Are your orders fulfilled properly?

a) Strongly agree

c) Agree

b) Disagree

d) Strongly disagree

Q 11) What is your perception about ITCs distribution channel?

a) Excellent

c) Good

b) Bad

d) Average

Q 12) Are your complaints solved properly?

a) Strongly agree

c) Agree

b) Disagree

d) Strongly disagree

Q 13) What do you think about the growth rate of ITC?

a) Excellent

c) Good

b) Bad

d) Average

Q 14) How do you rate our services?

a) Excellent

c) Good

b) Bad

d) Average

Q 15) Rate ITC from 1 to 5.

a) 1

d) 2

b) 3

e) 4

c) 5

50

Bibliography

Research Methodology - Naresh Kumar Malhotra

Retail Management - Ogden
www.Itcportal.com
www.itcindia.com
Competitive Analysis Of Itc Free Essays 1 20
ITC Competitors - Compare ITC Ltd with Competitors
Indian tobacco company
Hindustan Unilever Limited (HUL)
Proctor and Gamble (P&G)

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