A PROJECT REPORT ON CONSUMER BEHAVIOUR REGARDING CONSUMER GOODS (FMCG) OF ITC

SUBMITTED TO: UTTRAKHAND TECHNICAL UNIVERSITY,

in partial fulfillment of requirement for the degree of

MBA(MASTER IN BUSINESS ADMINISTRATION)

SUPERVISED BY:-

SUBMITTED BY:-

VIJAY BARTHWAL

PHONICS GROUP OF INSITUTION, ROORKEE

LIST OF CONTENTS

CHAPTER NO. CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8 CHAPTER 9 CHAPTER 10

CHAPTER NAME EXECUTIVE SUMMARY TOPIC INTRODUCTION RESEARCH OBJECTIVES RESEARCH METHODOLOGY LIMITATIONS COMPANY PROFILE DATA ANALYSIS & INTERPRETATION SUGGESTIONS & CONCLUSION ANNEXURE BIBLIOGRAPHY

ACKNOWLEDGEMENT
Success is an effort bounded activity that involves co-operation of all.

I hereby take the opportunity to express my profound sense of gratitude and reverence to all those who have helped and encouraged me towards successful completion of the Project Report. It has been a great experience working on the concept of CONSUMER BEHAVIOUR REGARDING CONSUMER GOODS(FMCG) OF ITC. It gives me complete insight of this concept of marketing and its application. I would like to thank my Project Guide Mr. SANJAY for her immense guidance, valuable help and the opportunity provided to me to complete the project under her guidance. I would like to thank all faculty members of PHONICS COLLEGE ,ROORKEE for guiding and supporting me in the completion of project from time to time. Last but not the least, my gratitude to great almighty and my parents without whose concerned and devoted support the project would not have been the way it is today.

PREFACE
The project study on CONSUMER BEHAVIOUR REGARDING COSUMER GOODS (FMCG) OF ITC has been conducted to observe the preferences of consumers. This system of education is highly appreciated as it provides the students with an opportunity to acquaint them with the

outside world. The practical work helps the students to view the real business world closely, which in turn widely influences their conception and perception. In this project 20 respondents are selecting for knowing their perception regarding PRODUCTS OF ITC. For this purpose information is collected from some areas of Haridwar.

CHAPTER-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 in 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 number 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 their market acceptance and market share. The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics 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 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand 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 well. 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 Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, 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 revealing. 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 reason this sector has huge amount of growth,if we want to grow we have to understand consumer needs and wants, that is the reason to know their buying behavior is very vital to frame up a perfect marketing strategy.

CHAPTER-2

TOPIC INTRODUCTION - CONSUMER BEHAVIOUR

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, feeling, or action that we have as individuals is part of human behaviour. Definition: Consumer behaviour is the study of how individuals, groups and organizations select, buy and dispose of goods, services, ideas or experiences to satisfy their needs and wants. Importance; It seeks to understand the consumer buying decision process and to answer the following 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 the 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 requirements 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)

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 buy, and why they buy. But learning about the consumer buying behavior is not easy task The central question for marketers is how consumers respond to various marketing stimuli The company that understands how consumers will respond to different product features, prices, and advertising appeals has a

great advantage over its competitors. The starting point is the stimulus-response model of buyer behavior This figure shows that marketing and other stimuli enter the consumers black box and produce certain responses. 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 choice, brand choice, dealer choice, purchase timing, and purchase amount. The marketer wants to understand how the stimuli are changed into responses inside the consumers black box, which has two parts. First, the buyers characteristics influence how he or she perceives and reacts to the stimuli. Second, the buyers decision process itself affects the buyers behaviour. Stages of the consumption process: Pre-purchase: problem recognition & information search Purchase: mental evaluations & making of decision Post-purchase: The activities that the consumer undertakes after the purchase and includes; how he uses the product, his degree of satisfaction, and actions taken after the purchase is made. Participants in the buying process (The D.M.U.-Decision Making Unit) The marketer needs to know which people are involved in the buying decision. People might play any of several roles in the buying decision process; Initiator: the person who first suggests or thinks of an idea of buying a particular product or service i.e. who initiates the buying decision. Influencer: a person whose views or advices carries some weight in making the final decision. Decider: is the one who ultimately makes a buying decision or any part of it, i.e. whether to buy, what to buy, where to buy. One or more people may be a decider. Buyer: the person who makes the actual purchase. User: the person who uses or consumes the product. A company needs to identify who occupies these roles because they affect product design, promotion, and other marketing strategy The Consumer Buying Decision Process It is made up of the following five steps;

STEPS IN CONSUMER BUYING DECISION PROCESS: 1)Problem recognition; It is the stage when the individual recognizes a need or problem to be satisfied or solved. The need can be triggered by either an internal stimulus(hunger, thirst), or external stimulus (bread, car, or ad) 2) 2)Information research; Of key interest to the marketer are the major information sources: Personal source- family neighbours, acquaintances Commercial sources- sales persons, dealers , packaging displays Public sources- mass media, consumer-rating organizations Experiential sources- handling, examining, or using the product The relative amount and influence of these information sources vary with the product category and buyers characteristics. 3) Evaluation of alternatives; The consumer develops a set of brand beliefs about a brand, which make up the brand image. The brand image will vary with his/her experiences as filtered by the effects of selective perception, selective distortion andselective retention. The consumer may evaluate brands on the basis of price, product design, colour, packaging, aftersales service, etc. 4) Purchase decision; Having evaluated various solutions, the buyer may develop a predisposition to make a purchase. However, two factors can intervene between the purchase intention and the purchase decision that may change the purchase intention, e.g. The attitude of others Unanticipated situational factors In executing a purchase intention, the consumer may take up to five purchase sub-decisions; A brand decision (brand A) Vendor decision (dealer 2) Quantity decision (1 computer) Timng decision (weekend)

Payment method decision (cash/credit) 5) Post purchase behaviour; The consumer will experience some level of satisfaction or dissatisfaction. Buyers do not follow the general decision sequence at all times. The procedure may vary depending upon; The time available Levels of perceived risk The degree of involvement a buyer has with a product. Marketers should provide after sales service and support to assure customer satisfaction. Types of consumer problem solving behaviour: Consumer decision-making varies with the type of buying decision. More complex decisions are likely to involve more buying participants and more buyer deliberations. There are three types of consumer problem-solving behaviour: 1) Routine response behaviour; This occurs when consumers buy low cost, frequently purchased items. The buyers have very few decisions to make. They know a lot about the product class and the major brands available and they have fairly clear preference among the brands. In general, consumers do not give much thought, search or time to the purchase. Marketers must satisfy current consumers by maintaining sufficient quality service and value. They must also try to attract new buyers by introducing new features and using point of purchase displays and price deals. 2) Limited problem solving; Buying is more complex when buyers confront an unfamiliar brand in a familiar product class (e.g. a new brand of radio or toothpaste). E.g. people thinking about buying new music equipment may be shown a new brand with a new shape and new features. They may ask questions and watch adverts to learn more about the new brand. This is described as limited problem-solving because buyers are fully aware of the product class but are not familiar with all the brands available and their features. 3) Extensive problem solving; Sometimes buyers face complex buying decisions for more expensive, less frequently purchased products in a less familiar product class. For these products buyers do not often know what brands are available and what factors to consider in choosing between brands. E.g. suppose you want to buy an expensive stereo component system, you would probably spend time visiting several shops collecting information and comparing various brands before making the final decision.

TYPES OF CONSUMER BUYING BEHAVIOUR From the understanding of general decision making process, perceived risk and involvement theory, it is possible to identify the following buying behaviours;

1) Complex buying behaviour; It involves three- step process; The buyer develops beliefs about a product, Then develops attitude, Then makes thoughtful choice Consumers are highly involved in a purchase and are aware of significant differences among brands. Products are highly expensive, bought infrequently, risky and highly self-expressive e.g. automobiles. 2) Dissonance-reducing buyer behaviour; where the consumer is highly involved in a purchase but sees little difference in brands. Purchase is expensive, infrequent and risky. If the consumer finds quality differences in the brands, he might go for the higher price. If he finds little difference, he might buy simply on price or convenience. Habitual buying behaviour; Is characteristic with low involvement and the absence of significant brand differences Common with low cost, frequently purchased products e.g. salt Consumers reach for the same brand out of habit but there is no strong brand loyalty. Variety seeking behaviour; Low involvement but significant brand differences A lot of brand switching Marketing communication should reinforce past decisions by stressing the positive features of the product or by providing more information to assist its use and application. Organizational/ Industrial Buyer Behaviour Businesses ask themselves the same questions as consumer marketers i.e. who are our buyers and what are their needs. How do buyers make their buying decisions and what factors influence these decisions? What marketing programs will be most effective? Definition: industrial buying is the decision making process by which formal organizations establish the need to purchase products and identify, evaluate and choose among alternative brands and suppliers. Types of organizational markets; 1) The industrial market; It consists of all organizations acquiring goods and services that enter into the production of other goods and services that are sold or supplied to others. It is the largest organizational market. 2) Reseller market; It consists of all individuals and organizations that acquire goods for the purpose of reselling them to others for a profit. Resellers buy products for resale and for conducting their operations e.g. wholesalers. 3) Government market; It consists of government units from central and local government that purchase or rent goods and services for carrying out their main functions.

3)

4)

4) The institutional market; It is made up of hotels, hospitals, schools, colleges and other institutions that also buy goods and services. Differences between Organizational and Consumer markets In some ways organizational markets are similar to consumer markets- both involve people who assume buying roles and make purchase decisions to satisfy needs. But there are differences stemming from market structure, demand, product characteristics, promotion, distribution channels, price, nature of buying unit, and the decision process. 1. Market characteristics () Size: usually industrial consumers are few in number but purchase larger volumes on a repeat basis. (b Geographic concentration: industrial consumers tend to concentrate in specific areas especially urban areas. (c Competition: industrial organizations are more directly involved in international purchasing. 2. Product characteristics; In industrial markets products are purchased as component parts of other products. More emphasis is given to the technical aspect of the product. Purchases of industrial products are usually governed by customer specifications. Buyer characteristics; Typical consumer buyers have little knowledge of the product they purchase as contrasted with industrial buyers who are professionally and technically trained. Many industrial purchases involve large sums of money; technically complex products and decisions to purchase take longer and involve several people. 4. Reciprocity; Industrial buyers often select suppliers who may also buy from them e.g. a paper company that buys needed chemicals from a chemical company that in turn buys the companys paper. 5. Channel characteristics; In industrial markets, channels are direct where buyers often buy from producers rather than through middlemen. 6. Promotional characteristics; Personal selling is the dominant mode of promotion in industrial markets and advertising may only be used to lay a foundation for personal selling. Sales people act as consultants. 7. Price; Generally in industrial buying, price takes less prominence. Factors of interest are quality, product consistency, certainty and timeless of delivery, service and technical support. 8. Demand; Demand for industrial products is derived demand. It ultimately comes from demand for consumer goods. A cloth manufacturer buys cotton because consumers buy cloth. If consumers demand for cloths declines, so will the demand for cotton and all other products used to make cloth. The demand is also inelastic in organizational markets i.e. total demand is not much affected by price changes especially in the short-run e.g. a drop in the price of leather will not cause shoe manufacturers to buy more leather unless it results in lower shoe prices that in turn would increase customer demand for shoes. Participants in the industrial buying process- The buying centre This is the group of people who make the buying decision. The group consists of all people who influence, whether positive or negative, at one or more stages of the purchasing process. The Decision Making Unit (D.M.U) has people playing the following roles;

. 2. 3. 4. 5.

The gate keeper: he controls the flow of information, ideas and instructions. Such roles may be played by the receptionist/secretary who controls the buying organizations diary. A gate keeper could also be a specialist who can feed relevant information to the rest of the D.M.U. Influencers: are people such as engineers, accountants or the board of directors. They help define product specifications and provide information for evaluating alternatives. Technical personnel are particularly important influencers. Users: are members of the organization who will use the product. In many cases they initiate the buying proposal and help define product specifications. Buyers: they are people with formal authority to select the supplier and arrange terms of purchase. They negotiate with the selected supplier on issues such as price, delivery time, mode of delivery, etc. Deciders: are people who have formal or informal power to select or approve the final suppliers. In routine or straight buying, the buyers are often the deciders. The buying centre concept presents a challenge to the industrial marketer who must learn the following; Who is involved in the decision? What decisions do they make? What is their relative degree of influence? What evaluative criteria does each participant use? Only when the above questions have been answered can the supplier plan the campaign to inform the key persons within the D.M.U. A multi-faceted attack may be necessary, involving direct mail, personal contact, as well as the use of advertising. Industrial Buying Situations (classes):

1.

Straight re-buy; it is where the buyer knows his own requirements and the products on offer. The items tend to be regular purchases and the process is in most cases repeated frequently. A buyer would most likely purchase from the same supplier and it is often hard for another supplier to break into such a market. 2. Modified re-buy; in this category would fall the purchase of either a new product from an existing or known supplier, or the purchase of an existing product from a new supplier. It usually involves more decision participants. 3. New task; involves the purchase of new unfamiliar products from previously unknown suppliers. In this situation the buyer must obtain a lot of information about alternative products and suppliers. He must determine the following; Product specifications, price limits, delivery times and terms, service terms, payment terms, order quantities, etc. The buyer makes the fewest decisions in the straight re-buy and most in the new task situation. The new task situation is the marketers greatest opportunity. He tries to reach as many people with key buying influences as possible, and providing useful product information. Industrial Buyer Decision Making Process In the industrial buyer decision making process, buyers facing a new task buyer situation will usually go through all stages of the buying process and those making straight or modified rebuys may skip some of the stages. They are;

1.

2. 3. 4.

5. 6.

7. 8.

Problem recognition; The process begins when someone in the firm recognizes a problem or need that can be solved by acquiring a specific product. The company may decide to launch a new product and need new equipment and materials to produce it or a machine may break down and need new parts etc. General need description; This is description of the general characteristics and quantity of the needed item. Emphasis here is on reliability, durability, price and other attributes desired in the item. Product specification; The items product specifications are analyzed and the purchasing team (D.M.U.) decides on the best product characteristics and specify them accordingly. Supplier search; This is carried out to find the best suppliers. Some suppliers may not be considered because they are not large enough to supply the needed quantity or because they have poor reputation. The suppliers task is to get listed in major directories and build reputation in the marketplace. Salespeople should watch for companies in the process of searching for suppliers and ensure their firm is considered. Proposal solicitation; The buyer invites qualified suppliers to submit proposals. When the item is complex or expensive, the buyer will need detailed written proposals from each potential supplier. Supplier selection; The buying centre (D.M.U.) reviews the proposals and selects a supplier. They will consider the technical competence of various suppliers, their ability to deliver the item on time and also deliver the necessary services. The following attributes have a strong influence on the relationship between the supplier and customer; Quality of products, on time delivery, competitive prices, and delivery terms. Order routine specification; This involves preparing the final order with the chosen supplier, listing the technical specifications, quantity needed, expected time of delivery, e.t.c. Performance review; Here the buyer reviews the performance of the supplier. The buyer may retain, modify, or drop the supplier in future hence the supplier should ensure that he is giving the expected satisfaction. Personal Determinants of Consumer Behaviour

1.

These are needs, motivation, perception, learning, beliefs, and attitudes. Needs and Motivation A motive is a need that is sufficiently pressing to drive a person to act.

Needs are either physiological-(hunger, thirst, comfort), or psychological-(recognition, selfesteem, etc.). Marketers study motivation theories for consumer analysis and marketing strategy. Three of the best known theories are those of Sigmund Freud, Abraham Maslow and Fredrick Herzberg. Freuds theory Assumes that the psychological forces shaping peoples behaviour are largely unconscious, and that a person cannot fully understand his/her own motivation. 2. When a person examines specific brands, he/she will react not only to their stated 1. capabilities, but also to other less conscious cues. Shape, size, weight, colour and brand can all trigger certain associations and emotions in the consumer. Motivation researchers often collect in-depth interviews to uncover deeper motives that trigger the purchase of a product. Maslows theory In order of importance, they are physiological needs, safety needs, social needs, esteem needs and self- actualization. A person will try to satisfy their most important needs first, after which he will then try to satisfy the next higher need. The theory helps marketers to understand how various products fit into the plans, goals, and lives of consumers. Herzbergs theory He developed a two- factor theory that distinguishes dissatisfiers (factors that cause dissatisfaction) and satisfiers (factors that cause satisfaction).Satisfiers must be actively present to motivate a purchase. The implications are that sellers must do their best to avoid dissatisfiers e.g. poor instructions manual. The manufacturers should identify the major satisfiers and motivators and supply them to buyers. Perception Perception is a process by which an individual selects, organizes and interprets stimuli into a meaningful, coherent image or picture of the world. simply said it is how an individual views a particular product. A motivated person is ready to act and how he acts is influenced by his or her perception of the situation. Two people in the same motivated state and objective situation may act quite differently because they perceive the situation differently. People can emerge with different perceptions of the same object because of three perceptual processes: selective attention, selective distortion, and selective retention. Learning Learning can be defined as a relatively permanent change in behaviour that occurs as a result of experience or reinforced practice. Most human behaviour is learned.

3.

Two main approaches to learning are: Behavioural-association, reinforcement and motivation. Cognitive-processing information in order that problems can be resolved. Learning theory teaches marketers that they can build up demand for a product by associating it with strong drives, using motivating cues, and reinforcement. Personality Theories Personality is, essentially, concerned with the inner properties of each individual, those characteristics that differentiate each of us. Freudian theory of personality; psychoanalytic theory: It assumes that the needs which motivate human behaviour are driven by primary instincts- life and death. The life instincts are considered to be predominantly sexual in nature, whereas the death instincts are believed to be manifested through self-destructive and/or aggressive behaviour. The personality of an individual is assumed to have developed in an attempt to gratify these needs, and consists of the id (pleasure seeking),super ego (acts within the rule of the society) and ego. Trait theory: Traits are distinguishing, relatively enduring ways in which one individual differs from another. Personality is measured and quantified e.g. the degree of assertiveness, responsiveness to change or level of sociability. Marketers identify specific traits and then develop consumer profiles which enable a distinct market segment to be determined. For example, Aspirers seek status and self- esteem (materialism) and are targeted with products which act as symbols of achievement e.g. designer clothes, latest hi-fi etc. Consumers are likely to choose brands whose personalities match their own. For example; Tommy Hilfiger-youthfulness, Levis- ruggedness. Brand personalities can attract consumers with the same self-concept (how somebody views himself). Beliefs and attitudes An attitude is a learned predisposition to behave in a consistently favourable or unfavourable way with respect to a given object. Through doing and learning, people acquire beliefs and attitudes. Attitudes relevant to purchase behaviour are formed as a result of direct experience with the product, word of mouth information acquired from others, or exposure to mass media advertising. A company can fit its products into existing attitudes rather than trying to changing them. Attitude change strategies include: Changing the consumers basic motivational function, i.e., making particular needs prominent. Associating the product with an admired group or event e.g. social support events, celebrities, e.t.c. Resolving two conflicting attitudes e.g. moving from negative to positive. Altering components of a multi attribute product e.g. toothpaste (regular and herbal, etc.). Changing consumer belief about competitors brands. External Determinants of Consumer Behaviour:

Consumers are social and cultural human beings. Their behaviour is affected by the social setting they find themselves in as well as the cultural practices of the community they live in. 1) Culture: It refers to the ways of life of a people. It is a set of socially transmited beliefs, attitudes, norms and customs. Culture is learned from parents, teachers, and society in general.Culture describes the prescribed acceptable behaviours and norms of a society. Marketers has to understand the changes in cultural shifts in a society in order to capture opportunities to serve them in a better manners. Any marketer must be familiar with the culture of the people they wish to sell to. 2) Social classes: It is the division of the society into groups. It is also known as social stratification. Social functions have to be performed by a society for it to survive. Stratification in the world is done on the bases of education, occupation, income or economic and political station. In some societies eight to nine strata were found but in most of the society three classes were found i.e Upper class, middle class and lower class. A social class is an open aggregate of people with a similar social ranking. It is open since people can move in and out of the group. Mobility may take the form of education, occupation, talent, marriage, etc. Within a social class, people will to a certain extent have the same patterns of behaviour, similar attitudes, values, possessions, etc. Characteristics of social classes; People within the same social class exhibit similar behaviour. People are ranked as occupying an inferior or superior social position according to their social class. A social class is not indicated by any single variable, but is as a result of the weighed function of an individuals occupation, place of residence, wealth, education, values, e.t.c. ) The marketer has to identify the class differences due to the following reasons; Each class will have certain products that appeal to them and others that do not appeal to them. The marketer has to concentrate their marketing effort on specific social classes. In the same social class, there may be individual tastes that the marketer needs to take into consideration. The kind and quality of the product selected may vary from one consumer to another. Difference in classes may also show in marketing areas the consumers frequent. Certain classes may have a preference for a given shop, club, restaurant etc. The media habits of different classes will also differ. Some members of a class may read different newspapers and listen to different programs or watch different stations on T.V. Reference groups: Reference group is a group of people who have direct or indirect influence on the individuals behaviour. It acts as point of comparison or reference point/frame of reference for an individuals behaviour. Reference groups can be classified in to many Types; based on the degree of involvement we can classify into two groups i.e primary and secondary groups. Primary groups: - these are groups that are small and very close to the consumer. The consumer has direct contact with group members and often has face-to-face communication with them. They include the family, co-workers and those one spends his leisure time with. Secondary groups: - are larger and less intimate than the primary group. The consumer contact with this group may not be as frequent as those of the primary groups. They include religious organizations, professional organizations, clubs, unions, etc.

Rationale groups; - these are membership groups that a person may join. They engage in activities which interest the consumer to express his idea, be guided and influenced in the type of goods consumed. They include YMCA, YWCA, scouting movement, etc. The reference group has norms that the members abide by. These norms promote conformity within the reference group. A reference group may influence the decision to buy in two ways; Being a member of a group, a person may buy a product or service since all those in the group have done so. A person may buy a product or service for the reason of wanting to belong to or be associated with the group. Some products can be sold by appealing them to a reference group. The consumer will use others as a point of reference; If he lacks specific experience in the purchase or use of a product, service or idea. When available sources of marketing information are judged as biased or inadequate. When the outcome of a consumers decision is highly visible and therefore open to disapproval from others. When the products are in high risk category e.g. are expensive. 4) Role of Opinion leaders: These are the pace setters or trend setters. They are the people who will first venture into sampling a new product before the others. They would then give information to the others before they commit themselves to buy the product or service. The opinion leaders or the pace setters are respected and serve as a source of advice to the rest. Characteristics of opinion leaders are; They are more interested and better read in areas they influence. They are more self confident and sociable. They are slightly more innovative i.e., they take risks but cautiously so. The word of mouth becomes an important tool for the spread of information here. The opinion leaders are the first to receive advertising messages and then pass them on to the others. Marketers should identify the opinion leaders first and focus information on them so that they can then influence others. 5) The Family A Family comprises of two or more persons living together connected through blood or marriage or adoption and stay together. Different family structures were observed in the society i.e married couples, nuclear family (parents and children) and extended family(parents+children+grandparents+uncles). Members of a family have a role in the buying process and the roles will depend on the product purchased. There are three important players in the family, they are husband, wife and children. These roles may be grouped as; Wife dominated decisions. Husband dominated decisions. Joint decisions.

CHAPTER-3

RESEARCH

OBJECTIVES

The market of the new millennium is a simple one and is a easy to define i.e. todays market are of consumers. Marketers are doing everything to comprehend this new wave that is sweeping many a market today. The consumers are walking up to the reality because of the enormous choices available to them. For every product category there are various alternatives to choose from. The market has cleverly segmented the market into manufactures definitions of premium, popular and discount. This study has been structured on the basis of certain objectives, planning and proceedings. Some of the objectives are listed below: To know market share of the company. To know the Brand image of the company in the consumers mind. To know Image of the company in the retailers mind. To know which is the largest selling brand among the biscuits. To study the company profiles of ITC Ltd the makers of BINGO. Identification of the problem faced by the retailer. Identification of the untapped market. To understand the customers preferences in relation to biscuits. To know the effective medium of advertisement or communication which tends make a person purchases a particular brand. To analyze how differentiated is Sunfeast biscuits to that of its competitors. To analyze how differentiated is Bingo to that of its competitors.

CHAPTER-4

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem, it not only takes the research methods but also consider the logic behind the methods. The study of research methodology for developing the project gives us the necessary training in gathering materials and arranging them, participation in the field work when required, and provides training in techniques for the collection of data appropriate to particular problems. RESEARCH PROBLEMS:- Consumers preference about different branded and non branded Consumer goods especially with FMCG. RESEARCH METHODOLOGY:- Exploratory method. SAMPLING PLAN:SAMPLE METHODS:- Random simple sampling SAMPLE SIZE:- 20 PRIMARY DATA:- Questionnaire SECONDARY DATA:-INTERNET,BOOKS,PRIOR REPORTS. SAMPLE While deciding about the sample of research, it is required from the Researchers point to pay attention to these under mentioned points:

a) Sample Units: A decision has to be taken concerning a sampling unit before selecting a

sample, sampling unit may be a geographical one such as state, district, village etc. so in this research sampling unit is HARIDWAR area.
b) Source of Data: Data required for the study was collected through primary sources i.e.

market survey and secondary source.

c) Sampling Size: This refers to the no. of items to be selected from the universe to

constitute a sample. This is a major problem before the researcher. The size of sample should neither be excessively large not too small, it should be optimum. This size of population must be kept in view for this also limits the sample size. Sample size in this research is 20. INSTRUMENTS USED Primary data collected through sample survey from the selected elements retailer or regular customer or wholesalers . So for this purpose I have most popular tool of primary data collection through direct communication with respondents. The tools I used are questionnaire. METHOD OF DATA COLLECTION Actually data is of two kinds which are followinga) Primary Data: primary data are those, which are afresh and for the first time and this happen to be original in character. b) Secondary Data: secondary data are those data which have already been collected by someone else and which have already been used as per required. There are basically two sources to collect secondary data a) Internally: provided by company/organization b) Externally: various publication of central, state and local government. Books, magazines, newspapers Internet

After only keeping in mind one can think about what type of data has to be collected during research as our research is concerned I have to gather primary data for customer preference or retailers. RESEARCH INSTRUMENTS: QUESTIONNAIRE DESIGN: As the questionnaire is self administered one, the survey is kept simple and user friendly. Words used in questionnaire are readily understandable to all respondent.

I have made the questionnaire in which questions are according to the research and these are convenience for the respondent.

CHAPTER-5

LIMITATIONS

LIMITATIONS OF THE STUDY The real scope of the project is limited in the following manner: The study was confined to HARIDWAR market 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 conclusion 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 freely.

CHAPTER-6

COMPANY PROFILE

HISTORY OF ITC LTD ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. 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. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. 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. The Company now stands rechristened ' ITC Limited. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an

immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC InfoTech is one of 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 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. 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 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 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. 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 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. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman. 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. ITC's entered the fast growing 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 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 massmarket 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. In May 2009 ITC launched new Cigarettes product is wills flake excel.

ITC has launched noodles under its Sunfeast brand in Chennai, Coimbatore and Kerala. Of late, FMCG compnaies like Glaxo SmithKline and Hindustan Unilever and private labels like Big Bazaar's Tasty Treat have entered this segment.

Chitranjan Dar, divisonal chief executive, ITC Foods. said: "We are looking to tap at synergies. While pasta as a category is predominant in larger cities, noodles 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 limited 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," says Dar.

The ITC Leadership Leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of shareholders, carries the responsibility for strategic supervision of the Company. The strategic management of the Company rests with the Corporate Management Committee comprising the whole time Directors and members drawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its 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. Board of Directors

Audit Committee

Compensation Committee

Nomination Committee

Investor Service Committee

Corporate Management Committee

Divisional Strategic Business Unit (SBU) a Management committees each headed

Corporate Function, each headed by HOD Corporate Functions include:

By A divisional SBU Unit Executive Accounting, Business Includes: secretarial, FMCG, Hotels, Paperboards, Specialty Papers & Packaging, Affairs, Agri Business and Information Technology

Planning and Treasury, Risk Management, Legal, EHS, Human Resources, Corporate Communication, Corporate Internal Audit and Research &
Development

Board of Directors Chairman Yogesh Chander Deveshwar Executive Directors Nakul Anand Pradeep Vasant Dhobale Kurush Noshir Grant Board Committees Audit Committee S B Mathur Chairman A Baijal Member A V Girija Kumar Member P B Ramanujam Member K Vaidyanath Member B Vijayaraghavan Member P V Dhobale Invitee R Tandon Invitee S Basu Invitee (Head of Internal Audit) Representative of the Invitee Statutory Auditors B B Chatterjee Secretary Corporate Management Committee

Executive Directors Y C Deveshwar Chairman N Anand Member P V Dhobale Member K N Grant Member Executives A Nayak Member T V Ramaswamy Member S Sivakumar Member K S Suresh Member R Tandon Member B B Chatterjee Member & Secretary Non-Executive Directors Anil Baijal Shilabhadra Banerjee Angara Venkata Girija Kumar Serajul Haq Khan Sunil Behari Mathur Dinesh Kumar Mehrotra Compensation Committee S H Khan Chairman A Baijal Member S B Mathur Member H G Powell Member B Sen Member Investor Services Committee A V Girija Kumar Chairman K N Grant Member P B Ramanujam Member B Sen Member B Vijayaraghavan Member B B Chatterjee Secretary Chief Financial Officer Rajiv Tandon Executive Vice President & Company Secretary Biswa Behari Chatterjee General Counsel Kannadiputhur Sundararaman Suresh

Investor Service Centre 37 Jawaharlal Nehru Road, Kolkata 700 071, India Phone : 033-2288 6426/2288 0034 Fax : 033-2288 2358 e-mail : isc@itc.in Auditors Deloitte Haskins & Sells Chartered Accountants, Kolkata Registered Office Hugo Geoffrey Powell Pillappakkam Bahukutumbi Ramanujam Anthony Ruys Basudeb Sen Krishnamoorthy Vaidyanath Balakrishnan Vijayaraghavan Nominations Committee Y C Deveshwar Chairman A Baijal Member S Banerjee Member A V Girija Kumar Member S H Khan Member S B Mathur Member D K Mehrotra Member P B Ramanujam Member K Vaidyanath Member Sustainability Committee Y C Deveshwar Chairman S Banerjee Member H G Powell Member A Ruys Member B Sen Member B Vijayaraghavan Member B B Chatterjee Secretary Virginia House 37 Jawaharlal Nehru Road, Kolkata 700 071, India Phone : 033-2288 9371 ITC corporate website : www.itcportal.com ITC Report and Accounts 2011 1 "Enduring Value. For the Nation. For the Shareholder." ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of

respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. In pursuit of international competitiveness, ITC has launched four brands - Checkers, HiVal, 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 and Mission

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

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

ORGANISATION STRUCTURE / HIERARCHY ITC a world leading electric company works as a Team System. Hierarchy of this organization is as follows:

Unit Head (Managing Director)

Functional Heads (General Managers)

Departmental Heads (Managers)

Section In charge (Asst. Managers)

Supervisors (Executives)

Workers

ITC is one of India's foremost private sector companies with a market capitalization 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. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at

Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including eenabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 3,68,000 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 constantly Endeavours to benchmark its products, services and processes to global standards. The Company's pursuit of excellence has earned it national and international honours. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of "the world's best big companies". Forbes has also named ITC among Asia's'Fab 50' and the World's Most Reputable Companies.

ITC has several firsts to its

credit:

ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines of the Netherlands-based Global Reporting Initiative (GRI), a UN-backed, multistakeholder international initiative to develop and disseminate globally applicable Sustainability Reporting Guidelines. ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of its contribution to development priorities like poverty reduction, its scale and replicability, sustainability and transparency. ITC has won the inaugural 'World Business Award', the worldwide business award recognising companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The award has been instituted jointly by the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation.

ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007, the Award for CSR in Emerging Economies 2005 and Excellence in Corporate Governance' in the same year. These Awards have been instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and Centre for Corporate Governance. The Company's Green Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh are the first units of their kind in the world to get ISO 14001 environment management systems certification. ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality certification and the first among cigarette factories in the world to be awarded the ISO 14001 certification. ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001 Environment Management Systems certification. ITC Filtrona is the first cigarette filter company in the world to obtain ISO 14001. ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in the world. ITC's Green Leaf Threshing plant in Chirala is the first in India and among the first 10 units in the world to bag the Social Accountability (SA 8000) certification. SWOT Analysis The following point shows the internal and external factors affecting the market opportunities for ITC. This SWOT analysis also shows ITC internal strengths such as their experienced management team, a competitive product line, a global marketing realm, and the continuous efforts by their research and development to research trends in the industry and to be creative in exploiting those trends. Some possible opportunities noted in the SWOT analysis are the growing markets for specialized ethnic foods and healthier food products. Another opportunity is that the income of consumers is high enabling them to be less price sensitive, and convenience is becoming evermore important not only to the United States but to many countries around the world. Although ITC has much strength, a few weaknesses lie in the fact that the company is so large and could possibly lose focus or have internal conflict problems. A few of the threats ITC must stay aware of are the ease of replicability of its product line, the almost pure competition in pricing for its products, and the quickness of technological advances causing existing products to be no longer the most advanced. STRENGTHS Management Experienced, broad base of interests and knowledge Product Line Unique, tastes good, competitive price, and convenient

Marketing Diverse and global awareness Personnel International, diverse positions International, diverse positions High sales revenue, high sale growth, large capital base Manufacturing Low costs and liabilities due to outsourcing of bottling Research & Development Continuous efforts to research trends an reinforce creativity Consumer/Social Huge market in the healthy products and growing market for specialized foods for ethnic groups Competitive Distinctive name, product and packaging in with regards to its markets Technological Internet promotion such as banner ads and keywords can increase their sales, and more computerized manufacturing and ordering processes can increase their efficiency Weaknesses Management Large size may lead to conflicting interests Product Line New one calorie products have no existing customer base, generic brands can make similar product cheaper Marketing May lose focus, may not be segmented enough Personnel Possible conflicts due to so many people, possible trouble staying focused Finance High expenses may have trouble balancing cash-flows of such a large operation. Research & Development May concentrate too much on existing products, intrapreneuralship may not be welcomed Consumer/Social More expensive products than Hull. Such a high price may limit lower income families from buying an ITC product Competitive Not entirely patentable, constant replicability by competitors Technological Computer breakdowns, viruses and hackers can reduce efficiency, and must constantly update products or other competitors will be more advanced Economic Very elastic demand, almost pure competition Opportunities

 Threats

Expected 30% CAGR in organized market to result in better footfall and conversion rates. Entry into Tier 2 and Tier 3 cities. Collaboration with foreign players because of a national brand. An opportunity to diversify its operations in e-retailing. As big company of India can go globally.

Employee shortage and attrition due to rapid growth in the whole market. Impact of slowdown in consumer spends to be felt in FMCG market. Opening up of economy for free entry of foreign players. Working Area of ITC Ltd ITC is now a days doing eight (8) major area of production, distribution and servicing. 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 tobacco grown in India. It has been India single largest integrated sources of quality tobacco for customer in 37 countries over the last 6 decades. ITCs Comprehensive and sophisticated R&D facilities cover all aspects of cultivation. Processing and packaging. ITC to process and deliver 100 million Kegs of high quality tobacco per Annum. ITC also co-operates with government agencies to develop new varieties of tobacco and to develop new areas for tobacco cultivation. B. Hotels: - ITC entered into hotels field in 1975. He is giving best hospitality services in some field. ITC have 46 hotels across 42 destinations all over India.

C. Packaging: - ITC also producing packaging items likeI. Flip top boxes. II. III. IV. V. VI. VII. VIII. IX. Car board outer. Shells and slides. Soft cup and strap labels Bundle wraps Flap boxes Inner frames Coupon inserts & Variety Folding crotons

The major unit (factory) which is producing packaging items- one is munger (Bihar) and other is Tiruvottiyar hear Chennai. D. Paper Board & Specialty paper: - ITC has now integrates sits paperboard & specialty paper business into its newly created (PSPD), to how new strategic & operational synergies. ITC is one of the world most modern and contemn porary manufactures 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 bleached sulphates board, white unit chipboard, liquid packaging board (2) cast coated 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 manufacturer of cigarettes, decorative laminates. Electrical equipment, fire works and automotive factory filters. They are also used for fire printing, packaging and carbonizing. 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, tipping base, printed tipping papers and metailising base.

E. Information Technology (IT): - ITC has recently spun off its 20 year old information system division into a wholly owned subsidiary to aggressively pursue growth opportunities in this sector. ITC Infotech India Ltd offer a powerful customer value proposition based on its in depth domains know ledge gained from the experience of servicing a range of internal & external customers across diverse domains. 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 brand name john players offers complete range of contemn porary mens wear- like shirts, Trousers, t-shirts & denims. It also lunches in Nov. 2002 under brand name the classes collection. G. Agro-Exports: - ITC international business division (IBD) is doing Exports activities of Agriculture products and processed foods Etc. he exports following items to UK, US and Another European country1. Soya meal. 2. Rice 6. Aqua products. 7. Peanuts. 8. Coffee. 9. Wheat. 10. Sesame Seeds. 11. Black pepper 12. Processed & frozen fruits & vegetables. H. Group Companies: - Main group companies-

a). ITC Hotels. b). Surya Nepal private limited. c). International travel house d). Land base

ITC AND FMCG

While growth in cigarettes is expected to be stable, other businesses will drive performance in 2010-11. ITCs other FMCG segment (non-cigarette division), which includes packaged foods, personal care products and apparel, among others, stole the show during the March 2010 quarter. While the divisions net sales jumped 34 per cent year-on-year, the highest in six quarters, to Rs 1,122.70 crore, losses fell by a third to Rs 78.7 crore compared to Rs 117.3 crore y-o-y. Apparently, the days of high expenditure required to launch new products and businesses are behind, unless the company has more plans up its sleeves. Other expenditure, which includes launch and rollout costs and brand building expenses, inched up just 8.9 per cent during the quarter. However, ITCs bread-and-butter cigarette business, which accounts for 60 per cent of sales and over 80 per cent of profits, showed disappointing results. The sales growth of 14.4 per cent yearon-year to Rs 4,517 crore was below expectations. Volumes were affected as the company had undertaken price hikes in the range of 2-18 per cent (average of 10 per cent) for its cigarette brands, post the Union Budget announcement in February 2010, which raised excise duty on cigarettes by 9-18 per cent. Segment profits, however, grew 15.7 per cent. On the whole, the FMCG business was the key profit driver during the quarter. While the hotels business reported a strong rebound, thanks to better occupancy levels and average room rates, the paper business recorded stable sales growth of 12 per cent growth to Rs 836 crore. On the other hand, the agri business reported an 88 per cent growth in sales to Rs 988 crore and boosted ITCs top line. The company reported better-than-expected standalone revenues of Rs 5,131 crore in March 2010 quarter, a jump of 29 per cent year-on-year, and the highest increase in eight quarters. Operating profit (PBIDT) margins inched up to 25.5 per cent, helping operating profits to rise almost 30 per cent to Rs 1,310 crore. This happened mainly because of lower losses in other FMCG businesses, followed by control in overall costs. Except for cigarettes, the profit growth for all other divisions was lower at an average 10 per cent. Net profit margins were stable at 20

per cent, as net profit of Rs 1,028 crore grew at a slightly lower rate of 27 per cent, but it was marginally above analysts expectations. Going forward, analysts expect pressure on cigarette volumes to persist in 2010-11, due to price hikes undertaken and expect sub-five per cent growth in volumes vis--vis near-10 per cent earlier. However, ITC should be able to maintain its four-year average of 11 per cent in cigarette sales growth due to market leadership and strong brand equity. The outlook of other FMCG business is good with expectations of losses declining further. Hotels and paper division are likely do well, but their margins could come under some pressure due to higher input costs. Overall, it is all hunky-dory for the diversified conglomerate. The markets also gave the results a thumbs-up. ITCs stock outperformed the BSE FMCG index, ending with three per cent gain in a volatile market. This was partly also due to the announcement of a board meeting on June 18 for considering the issue of bonus shares. At Rs 271.50, the stock traded at 22 times its estimated 2010-11 earnings. Despite high valuations, analysts prefer ITC over Hindustan Unilever due to strong presence across its businesses and less competitive pressures.

FMCG or Fast Moving Goods sector is one of the flourishing sectors of the Indian economy. FMCG along with its closest companion Retail sector has various job opportunities in different functions like marketing, sales, advertising, supply chain, logistics, human resources, product packaging and development, finance, operations, general management, supervising and so on. Jobs in FMCG sector offer handsome salary packages with perks and bonuses. Here is a list of top ten FMCG employers in India that have acquired remarkable positions in the Indian as well as global markets. Hindustan Unilever Limited Hindustan Unilever Limited is India's oldest FMCG company owned by European Unilever Group incorporated in 1933. Its headquarters is located in Mumbai. The company deals in food & nutrition, personal & home care brands. It has also established itself in health hygiene and beauty products. Annapurna, Brooke Bond Taaza, Bru, Kissan, Knorr, Kwality Walls, Lipton, Red Label, Taj Mahal, Breeze, Clinic Plus, Closeup, Dove, Fair & Lovely, Hamam, Lakme, Lifebuoy, Lux, Pears, Pepsodent, Pond's, Rexona Soap, Sunsilk, Vaseline, Active Wheel, Cif, Domex, Rin, Surf Excel and Vim are some of the renowned brands of the company. 'Pure it', a water purifier is the latest brand of company that has also become extremely popular in no time. ITC Limited Indian Tobacco Company Limited was established under the name of Imperial Tobacco Company of India Limited in 1910 with its headquarters at Kolkata. ITC deals in cigarettes & leaf tobacco, packaging & printing, hotel chains, stationary, safety matches, paper boards & agri Business and IT. Kitchens of India, Classmate, Paperkraft, Mint-o, Candyman, Aashirvaad, Sunfeast, Bingo, Mangaldeep, Fiama Di Wills, Vivel and Superia are famous brands of the company. Nestl India Nestl was formed by a merger of two companies namely Anglo-Swiss Milk Company and Farine Lacte Henri Nestl in Switzerland in 1905. Before independence India was a dairy product importer from Nestle. But after independence Nestl responded to Indias

aspirations and set up its first factory in 1961 at Moga, Punjab to develop milk economy in the country. At present Nestl India manufactures truly international quality products under brand names such as Nescaf, Maggi, Milkybar, Milo, Kit-Kat, Bar-one, Milkmaid, Nestea, Nestl, Milk, Nestl Slim Milk, Nestl Fresh 'n' Natural Dahi and Nestl Jeera Raita. GCMMF (Amul) The dairy co-operative movement in India began in Anand, a small town in Gujarat with the establishment of Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) chaired by Dr Verghese Kurien. GCMMF is India's largest food products marketing organization managing the Amul Brand through socially afflicted Amul baby cartoon based advertising campaigns. Amul deals mainly in the dairy products under the brand names of Amul Gold, Amul Taaza, Amul Butter, Amul Lite, Amul Processed Cheese, Amul Kool Flavored Milk, Amul Ice-creams, Amul Malai Paneer, Amul Masti Ghee, Amul Probiotic Dahi, Amul Ghee, Amulya, Nutramul, Amul Shrikhand, Gulab jamoon, Amul Mithai Mate, Amul Fresh Cream, Amul Chocozoo and so on Dabur India Limited Dabur India Limited began in Kolkata way back in 1884 as an Ayurvedic medicines company. Since then it has come a long way today to become a leading FMCG manufacturer in India. For the past 125 years, it has been dedicated to providing naturebased solutions for a salubrious and holistic lifestyle. It offers a comprehensive range of hair Care, oral Care, health Care, skin Care, home Care and food products under the brand names of Vatika, Hajmola, Amla, Chyawanprash, Dabur Lal Dant Manjan, Dabur Red Toothpaste, Dabur Honey, Dabur Lal Tel, Fem, Gulabri, Odomos, Odonil, Sani Fresh and many more. Asian Paints Champaklal H. Choksey, Chimanlal N. Choksi, Suryakant C. Dani and Arvind R. Vakil together manufactured paint in a garage on Foras Road, Bombay and named their company 'The Asian Oil & Paint Company' in 1942. Today this company is among the top ten largest paint companies of the world performing extremely well along with its subsidiaries Berger International Limited, Apco Coatings, SCIB Paints and Taubmans. Cadbury India Cadbury India Ltd. was incorporated in 1948 with its headquarters at Mumbai. It began with importing chocolates but today it has five manufacturing units and four sales offices in India. It is a part of the Kraft Foods Group. Cadbury India operates in Chocolate confectionery, Beverages, Biscuits, Gum and Candy under the leading brands of Cadbury Dairy Milk, Bournvita, 5 Star, Perk, Bournville, Celebrations, Gems, Halls, clairs, Bubbaloo, Tang and Oreo. Cadbury punchlines of Pappu pass ho gya, kuch meetha ho jaye and the latest one 'Shubharambh' have really worked well as the company's brand promoting strategies. Britannia India Limited Britannia India Limited Once began in 1892 as a biscuit company in Kolkata with an initial investment of Rs. 295. Today it is the premium food brand of the country famous for its goodies like 50-50 Maska-Chaska, Treat, Time pass, Tiger, Good day, Marie Gold, Little Hearts, Nice Time, Bourbon, Milk Bikis, Cakes and Dairy Fresh bread. Procter & Gamble Since 1837 Procter and Gamble has been touching consumers lives with brands that make life a little better every day. This simple purpose has enabled the company to become one of the worlds leading consumer products companies through its products under the brand names of Tide, Ariel, Olay, Pringles, Pantene, Pampers, Head & Shoulders, Oral-B, Wella, Camay, Puma, Duracell, Vicks and many more. Marico Industries Marico is a Mumbai based Indian FMCG providing food, health and beauty

products under the well-known brand names of Parachute, Saffola, Hair & Care, Nihar, Mediker, Revive among others that occupy leadership positions in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Kaya Skin Clinic is a separate division of the industry dealing in skin care treatment and skin care products.

CHAPTER-7

DATA ANALYSIS AND INTERPRETATION

RESEARCH DESIGN & METHODOLOGY Research design is the basic framework which provides guidelines for the rest of research process. It specifies the methods for data collection and data analysis .In this research project we have used the survey method of data collection, to be more specific questionnaire method. We conducted a survey in Haidwar. Out of the universe of 100 our sample size is 20. Respondents in the sample size were asked to fill the questionnaires to gather the data. ANALYSIS OF DATA In order to extract the meaningful information from the data collected an analysis of data is done using pie charts, bar graphs etc. The first objective of the research project is concerned with finding out what 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 like to eat snacks while 6 dont.

Second objective was to find out how much people are satisfied with Bingo. Following pie chart shows the satisfaction level of people: That means out 20 people 10 people are fully satisfied with bingo and 4 people are partially satisfied with bingo and 6 people are not satisfied with bingo.

The third objective was to find out how much people spend weekly on snacks From the above diagram it is clear that most people spend less on Snacks. And very small part of the sample spends more on snacks weekly.

Our fourth objective was to find out the preferences of people for different brands. Here, we aim to find out the most popular brand of snacks excluding Bingo. In the above graph we can see that Frito Lays is the most popular brand among people followed by remaining brands. The fifth objective of the research project is concerned with finding out what percentage of people like to eat Biscuits.

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.

The Sixth objective is concerned with finding out retail captured by different companies.

ANALYSISTHE ANALYSIS REVEALS THAT BRITANNIA & PARLE ARE THE TWO BRANDS WHO ARE PRESENT IN MOST OF THE RETAILOUTLETS I VISITED.THIS TELLS ABOUT THE ACCEPTENCE LEVEL AND THE DISTRIBUTION SYSTEM OF THESE BRANDS.

THE OTHER BRANDS PRESENT IN THE MARKET ARE CREMICA, PARLECOS, BONN, ANMOL, HEINZ, ASIAN, LOTTE, FRONTIER, AND CROWN.

The SEVENTH objective is concerned with finding out most preferred brands of biscuits.

ANALYSIS Britannia is the most preferred brand in 40% while Parle 25%, Priya gold is 20% and itc is 15%.

WHICH TYPE OF SHAMPOO CUSTOMER PREFERS TO PERCHASE ? S.NO OPTION NUMBER OF RESPONSE 1 VIVEL,CHIK AND 5 SUPERIA 2 CLINIC PLUS AND 10 SUNSILK 3 VATIKA 2 4 GARNIER 3

Analysis This shows existing higher level of consumer acceptance by HUL brands as compare to other products. DO YOU LIKE TO PERCHASE ITC PRODUCTS IN BULK?IF YES THAN S.NO OPTION NUMBER OF RESPONSE 1 WEEKLY 8

2 3 4

MONTHLY QUATERLY NEVER

4 3 5

ANALYSIS It shows that somewhere retailer feels risk for storing extra stock.that can be because of future uncertainty.

DO YOU THING ITC NEED TO PUT MORE FOCUS ON THE PERMOTION OF THEIR PRODUCT. S.NO OPTION RESONSE 1 YES 10 2 NO 5 3 CAN NOT SAY 5

ANALYSIS It shows that ITC need to give more attention for their promotion activity.

Chapter-8

SUGGESTIONS AND

CONCLUSION

RECOMMENDATIONS AND CONCLUSIONS FOR BINGO After conducting the survey we are in a position to say that ever since its launch Bingo as a preferred brand is on a rise. Although Frito Lays is the most popular brand Bingo has carved a niche for itself. Bingo is in the growth stage of its life cycle. Given more time it is capable of capturing a larger market share and giving tough competition to other brands. Overall people seem to be satisfied with Bingo. FOR SUNFEAST Somewhere it is not easy but, for the better market share ITC need to design its marketing strategy as per the requirement of the competition. Because competition from Britannia ,Priya gold ,Parle is so stiff.

FOR SHAMPOO LIKE SUPERIA,CHIK& VIVEL ITC need to do more promotion especially with Supera to maximize its market acceptance.

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 UNDERSTADING OF COSUMER BEHAVIOUR AND REQUIREMENT IS VERY VITAL.

CHAPTER-9

ANNEXURE

QUESTIONNAIRe

RESEARCH PROJECT ON THE STUDY OF ITC FMCG This is survey on ITC FMCG for the partial fulfillment of the requirements for the awards the degree of MASTER OF BUSINESS ADMINISTRATION. So kindly give your response to these questions:-

QUESTIONNAIRE on 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 ___ Q10. 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 ___ Q12. Overall, how satisfied are you with BINGO? ___ ___ ___ ___

___ ___ ___

Very satisfied Somewhat satisfied Unsatisfied

___ ___ ___

Q13. Compared to other snacks (such as Kurkure, Lays, and Diamond etc.) that are 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 --------------------------------------------

Chapter-10

BIBLIOGRAPHY

BIBLIOGRAPHY The list of reference for the purpose of completing this marketing project is as given below: BOOKS: Marketing management Marketing management By: Philip Kotler By: J.C Gandhi

Functional management INTERNET 1. www.itcportal.com

By: R.K.Sharma

2. Search Engine www.Google.com 3. www.icicidirect.com 4. Marketing Management by Kotler 5. Information collected by distributor and company officials NEWSPAPER: Economic times