A Project Report On Itc 5p6a4a

ITC PVT (I) LTD.

Project Title

:

Report on Market

research on biscuit Industries .

Proposed By

: Abhishek Mittal B.Com, PGP+SMU

Marketing

Institute

: Indira School of career

studies Waked, pune Maharastra

Project Guide Submitted

By

Project Mr.

Ramesh

Malav

Abhishek Mittal

ACKNOWLEDGEMENT I would sincerely like to thank Mr. Ramesh malav for his immense contribution & to execution of my project In ITC Pvt.(I) Ltd.

I would also like to thank Mr. Suresh (DSO) Nayapura, Kota & Mr. Manish (DSO) Nayapura, Kota

My appreciation to the Family of ITC Pvt.(I) Ltd would be incomplete if I don’t thank Mr. Mahesh makhija (Distributer, KOTA) & their sales team.

2

[Type text]

DECLARATION

I Abhishek mittal hereby declare that this project report is done by me as per my skills and my knowledge during academic year 201012. This project is not published previously or written by any other person to substantial extend has been accepted for the award of any other degree or diploma of any other institute except where due acknowledge has been made in the text. ABHISHEK MITTAL Date:Place:-

3

INDEX Sr.No. 1. 2. 3. 4.

Topic Introduction History Executive Summary Major player of biscuit

5. 6.

company Product detail of ITC Route wise detail

7. 8. 9.

Tabular Form Questionnaire Recommendation Bibliography

Page No. 5-6 7-10 11 12-13

14-28 in 34-39 40 - 48 49 50

INTRODUCTION 4

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About ITC :ITC is one of India's foremost private sector companies with a market capitalisation of over US $ 33 billion and a turnover of US $ 7 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 Agi-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."

5

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 brandbuilding 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 Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. 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 24,000 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 4, 05,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching

6

[Type text] vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder." Biscuit industry contribute Rs 8,000 crore to the FMCG industry and provide a vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in our country. India It is classified under two sectors: organized and unorganized. Apart from Big 3(Britannia, Parle, ITC) there are around 150 medium to small biscuit factory in India. The Industry is now facing problem from increase of raw material price. With Government VAT up to 12.5% has added to their woes. The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also sur the target and hit the global market successfully.

History:ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively

Indianite,

the

name

of

the

Company

was

changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to ITC. Limited in 1974. In recognition of the Company's multi-business portfolio encoming a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Company’s beginnings were humble. A leased office on Radha Bazaar Lane, Kolkata, was the centre of the Company's existence.

7

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. 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 'ITCWelcomgroup 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. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 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. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November

8

[Type text] 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 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British t 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

9

'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards.

A

line

of



range

of

notebooks

under

brand “Paperkraft”was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks

was

launched

under

brand “Classmate” in

2003. “Classmate” over the years has grown to become India’s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's

first

business

environment

friendly



paper under

the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. 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

10

[Type text] industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. 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 India’s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore

outsourcing,

providing

outsourced

IT

solutions

and

services to leading global customers across key focus verticals Manufacturing, BFSI (Banking, Financial Services & Insurance), G&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. 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 mint-

o and Candyman confectionery and Aashirvaadatta (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 eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. 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 matchesbrands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

11

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 Mangaldeepacross 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

under Essenza

range

Di

Wills provides a comprehensive grooming regimen with distinct lines

men (Inizio

for

Homme) and

women (Inizio

Femme).

Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a

range

September, Company

of

October also

Shampoos, and

launched

Shower

December

Gels

2007

the 'Superia' range

and

Soaps

respectively. of

Soaps

in The and

Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivelrange of soaps in February and Vivel range of shampoos in June 2008.

CHAIRMAN

12

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Y C Deveshwar

EXECUTIVE DIRECTORS Nakul Anand

P V Dhobale

K N Grant

NON-EXECUTIVE DIRECTORS A Baijal

S Banerjee

AV Girija Kumar

S H Khan

S B Mathur

D K Mehrotra

H G Powell

P B Ramanujam

Anthony Ruys

Basudeb Sen

K Vaidyanath

B Vijayaraghavan

ITC Vision Sustain ITC's position as one of

India's most valuable

corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders

ITC Mission Sustain ITC's position as one of

India's most valuable

corporations

13

through world class performance, creating growing value for the Indian economy and the Company’s stakeholders LIST OF THE PLAYERS IN THE INDUSTRY The major Brands of biscuits are - Britania, Parle Bakeman, Priya Gold,Elite, Cremica, Dukes, Anupam, Horlicks, Craze, Nezone, besides various regional/State brands.

COMPETITIVE BRANDS: Britannia, Parle, ITC foods, Surya Foods others MAJOR PLAYERS IN THE BISCUIT INDUSTRY Regional bakery brands: A few regional players have made a mark in their respective zone. HARVEST GOLD CREMICA PRIYA GOLD DUKES COOKIE MAN ANMOL MONGINIS

BONN

BISK

FARM

ELITE

ANUPAM

MODERN

SABISCO CHAMPION VEERMANI FOREIGN PLAYERS Foreign players like United Biscuits and McVities have also entered the fray. However, these players have concentrated themselves in the super- and segments

PARLE COMPANY In 1929 a small company by the name of Parle products emerged in British dominated India. The intent was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies. Parle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80 years. Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands, the Parle name symbolizes quality, nutrition and great taste. With a reach spanning even the remotest villages of

14

[Type text] India , the company has definitely come a very long way since its inception. Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India,. Major products are Parle - G, Hide and Seek, Krackjack, Hide & Seek, Milano,Magix, Digestive, Marie Monaco Parle Marie, Kreams, Milk Shakti, Parle 20-20 Cookies, Nimkin, etc

BRANDS

15

2003,

ITC foraying into the segment, a lot of that changing ed.

Before entering the segment, ITC dug into market research. Research revealed that the category had gaps which ITC could settle into. Findings revealed that consumers wished to taste new and innovative products.

16

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Some other range of sun feast biscuit Sun feast Golden Bakery  Sun feast Golden Bakery is a cookie on an innovative and differentiated platform 

Launched nationally in March 2008



These cookies are made from the recipes crafted by the

, master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden brown and develop the crispy broken crust texture.

Sun feast Milky Magic  Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a favorite among mothers and kids.

 Milky magic has the ‘Magic of 2’ - A perfect balance of energy that aids physical strength and mental ability.

Strawberry &chocolate Cream

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 The first of its kind cream biscuit with special strawberry flavor crystals that will keep the creamy flavor linger on  A special delight for all those chocolate lovers

List of product and brand Cigarettes:



W. D. & H. O. Wills



W.D & H.O.Wills (Australia) Ltd began manufacturing tobacco products in 1913 at its Raleigh rural but these days Kensington is regarded as one of the more central Sydney suburbs, located only 5 kilometres from the city centre. The site played host to a manufacturing facility for 72 years. In 1945 an estate of 16 acres was purchased at East Bentleigh, Melbourne, with a further 22 acres purchased later and the Virginia Park manufacturing branch was established

Increasing competition The 1950s were to be one of the most successful decades in the company’s history and it enjoyed a peak of 83 per cent market share in 1954. But this was also a period of increased competition as Phillip Morris and Rothmans entered the Australian tobacco market. 

Tougher times

18

[Type text] By 1972, increased competition meant that the company’s market share had slipped to 39%. By the time tobacco advertising was banned on Australian radio and television in 1976, Wills' market share had fallen a further 6%. 

New beginnings



In 1985 Wills combined the separate factory operations in Sydney and in Melbourne into one site at Pagewood, Sydney which took on the name Virginia Park. In 1989 W.D & H.O.Wills (Australia) became a subsidiary of the British American Tobacco Industries group of companies.



The big change In 1999 the company faced its most historic event to date when majority shareholder British American Tobacco merged with global competitor Rothmans International. Rothmans in Australia and Wills merged to form the wholly-owned subsidiary British American Tobacco Australia.

To satisfy regulatory requirements at the time, some 16 per cent market share was divested by way of a sale of trademarks to Imperial Tobacco Australia. The merger left British American Tobacco Australia, Phillip Morris and Imperial Tobacco Australia as the three players in the Australian tobacco market. British American Tobacco Australia is still the market leader, with 45.8 per cent market share as at December 2010. Park factory in Kensington, Sydney. At the time, the 35 acre site was considered to be quite

Gold Flake Kings,

19



Gold Flake is a widely-sold cigarette brand in India and Pakistan. It is sold in various varieties, including Gold Flake Kings (84 mm), Gold Flake Kings Mild (84mm), Gold Flake Kings Lights (84mm) and Gold Flake. It is a well-positioned brand in India . This brand is owned, manufactured and marketed by ITC Limited, the leading cigarette maker in India.



Other

popular

cigarette

brands

owned

by

ITC

are Wills & Scissors. Gold Flake is ITC's middle level brand in of price. However the Kings, Lights and Mild varieties are more expensive with pricing about the same as Wills Classic varieties of cigarettes. The single largest brand in the country in value (approx 14% of the US$150 million market) is Wills Navy Cut, which was launched in July 1963. 

Wills Gold Flake was discontinued in the UK in 1986 but continues to be sold in the Republic of Ireland. It is regarded there as one of the finest Virginian cigarettes on the market, though can be difficult to find.

Gold Flake , 

Inflation is coming down but it’s not coming down if you are smoker. Cigarette manufacturer, ITC has hiked prices of Gold Flake



inMaharashtra,

reports NewsWire18’s

correspondent Manuja Pandey.  

ITC has hiked Gold Flake price by Rs 1 to Rs 28 per pack of 10 cigarettes. The company hiked prices a couple of days

back.

20

[Type text]



It had last hiked price of Gold Flake in September last year. The brand contributes around 14-15% to the company’s volume sales. By value, it is around 20%.



Navy Cut, The term 'Navy Cut' refers to how RN sailors [C19th and C20th to 1953] would wind twine around rolls of tobacco leaves allowing them to mature under compression, and then slice off the end shredding the tobacco. John Player & Sons, Ltd of Nottingham put together logos for an advertizing campaign ca 1891, and trademarked the results in 1893. This was a combination of two earlier trademarks - the



lifering bearing the words "Player's Navy Cut" dating from 1888 and the bearded sailor - originally an artist's conception for a campaign ed around 1891 for the "Jack Glory" brand by William Parkins & Co of Chester.   

Foods:



(Kitchens of India; Ashirvaad; 



At ITC Aashirvaad, extra care is taken to keep things as natural as possible. The way Mother Nature intended for them to be. That′s why you′ll see that a lot of traditional, sometimes even cumbersome methods that the world has long left behind are adopted, so that you can have a taste of the authentic. In our quest to provide you wholesome

21

goodness, the finest of ingredients are sourced, directly from the

farmers

through

our

e-choupals.

ITC′s

e-choupal

initiative, aims to confer the power of expert knowledge on even the smallest individual farmer. Thus enhancing his competitiveness in the global market. A walk through our range our products might well seem like a journey through the good old world. A world that found happiness in harmonising with nature. 

Aashirvaad Atta was launched on 27th May 2002 and within a short span of 7 years has become the number one in branded packaged atta across the country. Aashirvaad Atta is made from the choicest grains - heavy on the palm, golden amber in colour and hard in bite. It is carefully ground using modern 'chakki - grinding' process for the perfect balance of colour, taste and nutrition which also ensures that Aashirvaad atta contains 0% Maida and is 100% Sampoorna Atta. The dough made from Aashirvaad Atta absorbs more water, hence rotis remain soft longer. The wheat for Aashirvaad Atta is sourced directly from farmers through ITC's e-choupals.



Select

-

100%

MP

Sharbati

atta

Aashirvaad Select 100% MP Sharbati atta comes from the plush, fertile soil of Madhya Pradesh, tended by the right amounts of sunshine and rainfall. The land here truly sprouts gold. The gold that we call ´sharbati´. The ´sharbati′ wheat is sourced directly from farmers through ITC′s e-choupals and

22

[Type text] then blended using the traditional ´chakki-grinding′ method to give you that superior, discerning taste that you well deserve. 



Whole Wheat Atta - 0% maida and 100% Atta:Aashirvaad Whole Wheat Atta has 0% maida and 100% atta. This means you serve soft, fluffy rotis and a whole lot of health and happiness.



Aashirvaad Atta with Multigrains : From the stable of India’s most trusted Atta brand comes a new and improved variety – Aashirvaad Atta with Multigrains. This all-new variant is designed to provide nourishment for people of all ages and is an integrated mix of six different grains – wheat, soya, channa, oat, maize & psyllium husk – which gives a better and healthier option for the consumers. Aashirvaad Atta with Multigrains is an excellent source of vitamins which is vital in strengthening immunity and ;extra protein content to improve body strength. The extra fibre makes your food easier to digest; low content of saturated fat keeps your heart smiling all through the day and above all,

23

still

retaining

the

same

great

taste!!

The product is available in select cities 

Candyman; ITC launched the 'Candyman' range of confectioneries in August 2002. Led by the 'Candyman Fruitee Fun' range of assorted fruit flavours

('Wild

Banana',

'Pineapple

Punch',

'Orange

Josh' and 'Mango Delite'), the 'Candyman' portfolio now includes deposited

candy

like 'Candyman

products

Butterscotch

Licks' and 'Candyman Éclairs' (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The coffee toffee segment also saw the successful launch of 'Candyman Cofitino' in November 2005. The brand was further strengthened with the launch of 'Candyman Natkhat Mango' and 'Candyman Maha Mango'. In line with the strategy

to

provide

consumers,Candyman 2007, Candyman

innovative Mango

Lacto

flavours

Licks was

Creme

and

formats

launched

Centre in

in

June

to June

2008

andCandyman Toffichoo Strawberry in early 2009. Candyman Lacto Creme Center is the only Lacto with a yummy cream filled center, and Candyman Toffichoo is a luscious fruit flavored soft and chewy toffee. The 'Candyman' range of confectionery is targeted at ‘fun-filled, naughty kids’ who seek a delightful candy experience through a range of candy types and flavours. www.mycandymanclub.com was launched in July 2004 and now has a loyal, young -base. Targeted

at

young

children,

the

website

is

populated with games, quizzes, s and other fun activities.

24

[Type text]

Bingo; ITC Limited - Foods Division today announced the launch of its new snacks brand Bingo, which marks the company's foray into the fast growing branded snacks segment. The launch of Bingo represents ITC Foods' fifth major line of foods business after the highly successful

Staples,

Biscuits,

Ready-to-Eat

and

Confectionery

businesses. Bingo is strategically timed around the World Cup to leverage the tremendous popularity that such leisure and cocktail snacks will find among cricket lovers in the country. So cricket lovers can enjoy their favourite matches while savouring an all-new range of innovative Bingo snacks during this World Cup. The category of snacks is characterised by a few organised players with limited offerings but the unorganised sector continues to rule the market. However, the organised sector is one of the fastest growing FMCG categories with an estimated growth rate of 30% annually. The organised snacks category is sub-divided into the traditional segment (Bhujia, chanachur etc.), Western segment (potato chips, cheese balls etc.) and the newly established Finger snacks segment, which is an adaptation of traditional offerings to the western format. The launch of Bingo is symbolic of ITC Foods' distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place. The initial offerings from Bingo include an array of products in both Potato Chips & Finger Snacks

25

segment. The Potato Chips offerings comprise of 4 innovative variants inspired by the snacking habits of different parts of the country

as

well

as

Masalas,

Salted

and

Tomato

flavours.

Additionally a south-inspired dairy option has also been introduced under the potato chips offering. The offerings under the Finger Snacks segment are equally unique presentations with innovative finger foods like the pakoda inspired Live Wires, Khakra inspired Mad Angles and the specially developed time snack in the form of Tedhe Medhe. Each offering under this segment is available in two variants making it a total of 6 products in the Finger Snacks portfolio. Speaking on the foray into this new category, Mr. Ravi Naware, Divisional Chief Executive, ITC Limited - Foods Division said, "This is an exciting and fast growing category with a big untapped market. We have extensively studied the market and our product development team has created products with variants that will hold tremendous appeal to the Indian consumer. We are confident that our retail distribution strength and our insightful understanding of consumers will help us redefine this category just like we have done in other categories. An added source of advantage is the strong farm linkages that ITC has developed for sourcing the selected grades of potatoes that go into the making of the chips." Bingo will own the platform of a youthful and innovative snack offering. The snacks will be available in packs priced at Rs. 5/- and Rs. 10/- Bingo will soon be available nationally across a majority of towns and cities. 

Mr. Hemant Malik, Head - Marketing, ITC Limited - Foods Division talking about marketing plans for the product, said "The new brand will leverage the retail and marketing expertise of ITC Foods to establish reach across the target

26

[Type text] markets. The communication strategy encomes a multimedia campaign for the entire product range including the use of new media for enhanced visibility. A spate of on-ground promotions distinctly communicating the product attributes and

brand

essence

will

further

supplement

Bingo's

communication strategy." 

Yippee,

  

ITC has launched noodles under its Sunfeast brand in Chennai, Coimbatore and Kerala. Of late, FMCG compnaies like GlaxoSmithKline 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.  

Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits, Confectionery, Noodles and Snack Foods);



27

Apparel:



(Wills

Lifestyle and John

Players brands);  

ITC's Lifestyle Retailing Business Division has established a nationwide

retailing

presence

through

itsWills

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

Clublife evening wear, fashion accessories and Essenza Di Wills - an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of shampoos

and

shower

gels. Wills

Lifestyle has

also

introduced Wills Signature designer wear, designed by the leading designers of the country. 

With a distinctive presence across segments at the end, ITC has also established John Playersas a brand that offers a complete fashion wardrobe to the male youth of today. With its brands, ITC is committed to build a dominant presence in the apparel market through a robust portfolio of offerings.

Personal care: ; In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, 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

28

[Type text] 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',

received

'Vivel

UltraPro',

encouraging

'Vivel' and'Superia' brands

consumer

response

and

is

has

being

progressively extended nationally. ITC's

state-of-the-art

requirements

of

manufacturing

hygiene

and

facility

meets

benchmarked

stringent

manufacturing

practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal. Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations

use

internationally

recognised

safe

ingredients,

subjected to the highest standards of safety and performance.

[

Stationery:

(Classmate and Paperkraft brands)

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ITC made its entry to the education and stationery business with its Paperkraft brand in the segment in 2002; and later expanded into the popular segment with its Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the country. Together, Classmate and Paperkraft offer a range of products in the Education & Stationery space to the discerning consumer, providing unrivalled value in of product & price. Classmate and Paperkraft have become a natural extension of the consumer. Meticulous understanding of consumer needs helped creating a relevant and comprehensive portfolio satisfying the needs of different sets of consumers. ITC is the manufacturer of India's first Ozone treated environment friendly

Elemental

Chlorine

Free

(ECF)

pulp,

paper

and

paperboard. It blends its knowledge of image processing, printing and conversion garnered from Packaging & Printing Business with its brand building and trade marketing & distribution strengths resident in its FMCG business to offer superior value products to consumers. Paperkraft Business paper and the papers used in Classmate and Paperkraft notebooks are superior in quality and environmentfriendly. Other offerings available in education and Stationery range are safe and certified non-toxic.

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[Type text]



Safety



Matches

and

Agarbattis:

[Ship (through

ownership

of WIMCO); iKno; Mangaldeep; Aim brands ] 



As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (Incense Sticks) sourced from smallscale and cottage units in 2003. This Business leverages the core

strengths

marketing,

of

brand

ITC in building,

nation-wide supply

distribution

chain

and

management,

manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and strengths in trade marketing and distribution.

Mangaldeep Agarbattis are



available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Anushri and Mogra. New launches include Fragrance of Temple, Champa and Tarangini in an attractive pouch format. 

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

The pouch format of packaging is increasingly becoming popular. Mangaldeep has launched three variants – Champa, Tarangini & Malligai in the pouch format catering to various market needs. The products have received encouraging response from consumers.



Fragrance of Temple is a flagship sub brand in the Mangaldeep portfolio with Superior fragrance and high quality sticks in an industry-first canister pack. The canister pack also contains a metal agarbatti stand which has been highly appreciated by consumers.





Mangaldeep

Dhoop,

made

with

Natural Ingredients, is available in specific markets and is fast creating a key presence in North India. New launches include Sandal & Mogra variants as well as 3-in-1 offering in a single pack. 



In line with ITC's Triple Bottom Line philosophy of contributing

to

the

Nation's

economic,

environmental

and

social

capital,

Mangaldeep

agarbattis are manufactured by small scale and cottage units, providing livelihood opportunities for more than 12,000 people. Six out of 17 Mangaldeep Agarbatti manufacturing units are ISO 9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis) is an ITC initiative to improve the quality of raw agarbatti production and provide better value realization for women rollers. Under the project, ITC has extended to NGOs in Bihar, Tripura

32

[Type text] and Tamil Nadu, to set up agarbatti units, training village women in rolling agarbattis and employing them in these units. In the latest initiative, ITC signed a MoU with the Orissa

Government-run

Orissa

Rural

Development

and

Marketing Society (ORMAS) for marketing raw incense sticks in the state - a move that is expected to provide employment opportunities to over 3000 rural women. 

Promotion at the launching time The brand is ed with Television campaigns across National and Vernacular media beginning August 2003 – that is distinct, highlighting the product attributes, quality and the new – first time in the market offerings from Sunfeast. During the launch phase, Consumer promotions will be conducted across retail outlets – for every purchase of Sunfeast Marie & Sunfeast Cream Biscuits 75gms of Glucose Biscuits FREE. Promotion by ment differentiated

ments,

some

which

showed

a

complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. In April 2005, The company says the brand is now available in nearly 1.8 million outlets Well Sunfeast launched its major campaign. It signed on Hindi film actor, Shah Rukh Khan as its brand ambassador.

33

Pricing

models

as

compare

to

its

competitors………….. Essentially, Parle plays a high volume, low margin game. But Sunfeast look at a two-pronged strategy, High margins in cream variants and volumes from the Marie and Glucose segments. For instance, cream biscuits from Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs.

Market Share of sunfeast Says Mr

Ravi

Naware chief executive

of itc

foods ,

"Seven per cent in less than three years is something that we could have only dreamt about."According to the AC Nielsen retail sales audit in March 2006, both Britannia and Parle have lost volumes. Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006 (volumes). Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period. Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC's Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent.

STRATEGIES Itc campaign to school….. IN a bid to reinforce its brand on kids, ITC Foods Ltd will soon

cover

more

than

1000 schools across the country as part of its Sunfeast school

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[Type text] programme. Sunfeast learnings corroborate the fact that brands better

among

kids

compared

to

adults.

"The objective was to build salience for the brand and familiarise the kids with the Sunfeast brand world and the Sunfeast mascot. This mascot has been successful with kids since

they

all

enjoy

interaction

with

the

mascot.

The Sunfeast school programme focuses on building the children's creativity through an opportunity to paint and win prizes. The interest in such programmes are introduced by leveraging the Sunfeast mascot and by conducting magic shows. The Sunfeast mascot is an animated figure of the Sun suggesting contentment, satisfaction and pleasure one would derive from the biscuits.

35

IMPORTANT FACTORS:-

36

[Type text]

DISTRIBUTION CHANNEL :-

37

Objectives of the project The objective of this project is to find out the coverage of Sun feast Cookies in the IDC markets and its competitors Parle 20-20 . Along this we also have to find out the ways to increase the sales of cookies in Kota regions.

METHODOLOGY



Personal site visits 

Sufficient amount of time was spent at selected retailers to find out consumers response towards itc’s brands vis-à-vis competitors brands.



Also to assist the current salesmen in these routes to incite sales.



Personal interview 

Talks were initiated with the retailers about which of the itc’s brands are performing & which are under performing & the reasons for them & their views if any.

38

[Type text]

Need and Significance 

The need to conduct the above study arised when a drop in sales of Bingo & Cookies was reported in Kota.

.Route

wise detail and observations:-

Report on IDC routes of Nayapura (District:-Kota) Distributor: -

M/s Tulsi Sales Agencies..

Average Sale: - 1, 75,000 (per month) Way of working of distributor:- He is having an exclusive van for Perfetti. He carries ready stock with him when he covers the market. He do four IDC route, from which he covers three routes weekly (cover these three routes in four days) and one fortnightly.

Route wise Detail:Route 1:- Sakatpura , kunhadi , Route in K.M.:- 30 K.M. Total Sale: - Rs.21, 000 (retail: - Rs.5, 300, Wholesale:- Rs.15,700) No. of shops cover: - 65

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Placement of Bingo on: -

20 shops

Placement of Cookies on: - 18 shops Placement of Candyman on: - 12 shops Placement of minto on: - 15 shops Observation:1) Bingo is stronger then cookies on this route. 2) candy man is present but its presence is negligible on this route, candy man is

selling on this route but it is not fast moving compare to

our other products, demand of minto is more as compared to candy man on this route. 

Route 2:- ladpura , rampura Route in K.M.:- 30 K.M. Total Sale: - Rs. 15000 (retail: - Rs.5000, Wholesale: - Rs.10000) No. of shops cover: - 60 Placement of bingo on: -

20 shops

Placement of cookies on: - 15 shops

40

[Type text]

Placement of candyman on: - 10 shops Placement of minto on: - 10 shops Observation:1) Placement of bingo is more then cookies. 2) Chlormint is present but its sale is less compare to our other product. Minto-fresh is present only on some pan shops because distributor of ITC pushed them with cigarettes but its demand is very less in the market, demand of minto-fresh is more compare to chlormint.

Route 3:- patanpole, chawni. Route in K.M.:- 30 K.M. (only patanpole is big area on this route) Total Sale: -

Rs.22, 000 (retail: - Rs.9, 900, Wholesale: - Rs.12,

100)

No. of shops cover: - 70 Placement of Bingo on: -

25 shops

Placement of Cookies on: - 15 shops Placement of Candyman on: - 18 shops Placement of Minto-fresh on:- 12 shops

Observation:-

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1) Like other routes Bingo is present in more in number on this route also. 2) Presence of Chlormint is negligible on this route. 

.

Route 4:- Gumanpura , bajarng nagar Route in K.M.:- 30 K.M. Total Sale: - Rs.21, 000 (retail: - Rs.11, 200, Wholesale: - Rs.9, 800) No.of shops cover: - 60 Placement of Bingo on: -

20 shops

Placement of Cookies on: - 15 shops Placement of Candyman on: - 10 shops Placement of Minto-fresh on: - 15 shops Observation:1)

Placement of minto-fresh is more compare to candyman on this

route. 2)

Minto-fresh candy is also not sale more on this route but its

placement is more compare to Chlormint.

Route 5:- Staion raod

42

[Type text]

Route in K.M.:- 25 K.M. Total Sale: - Rs.20, 000 (retail: - Rs.4, 900, Wholesale: - Rs.15, 100) No.of shops cover: -

45 (hilly area, mostly shopkeepers are semi

wholesalers)

Placement of Bingo on: -

18 shops

Placement of Cookies on: - 12 shops Placement of Candyman on: - 5 shops Placement of Minto-fresh on: - 10 shops

Analysis For NAYAPURA , KOTA No. of shops cover: - 300 Placement of Bingo on: -

120 shops

Placement of Cookies on: - 70 shops Placement of Minto- fresh on :- 50 shops

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MARKET SURVEYArea-kota 1.Sakatpura Total shop -45 2.Kunadi Total shop- 39 3. Rampura Total shop- 35 4. Gumanpura Total shop – 30 5. bajrang nagar Total shop- 37 6. station road Total shop- 45 7-Patan pole Total shop- 30 8. ladpura Total shop – 35 9. chawni Total shop- 40

Reason behind the Success of 20-20 of Parle and Sun feast Cookies. • Parle’s 20-20 does not properly depict the origin brand in comparison to the cookies which represent sun feast in much better way. • And Taste of Sun feast’s Cookies is much better than Parle 20-20. • Parley’s brand name and value in much more helpful in the sell of 20-20 than Sun feast’s Cookies.

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[Type text] • Parle Company has leadership in FMCG in market, which gives it an edge over other competing companies performing in the same area.( following graph justifies the above contention )

 According to the survey conducted by me, Parle in much more familiar brand with the local consumer in comparison to Sunfeast .  Parle has large share of consumer form Economic Class, and in country like India, this economic class is the key factor to navigate any product in either directions of sale.  According to my survey the Name of 20-20 is on the tongue of

every Indian and this gives an easy connection between the product and the game. The Parle has a good delivery mechanism in to order to make its product for availability even in remote part of existing Market

45

QUESTIONNAIRE 1. Which product have good taste in biscuit a- Parle 20-20 b- ITC cookies

46

[Type text]

Objective :- To know the taste preference of different samples .

2. What is more important for the sale of a product? A- Brand name B- Product name

47

Objective:- To know about the reasons of effective sales.

3. Which brand has outstanding sales in biscuit market? A-Parle B-ITC

48

[Type text]

C-OTHER Objective: - To know about better sales of biscuit company

4. Which brand is familiar for consumer? A-PARLE B-ITC

49

Objective: - To know about the consumer awareness of the brand

5. Which type of category consumes 20-20 Parle the most? A-low class B-economic class 50

[Type text]

C-high class

Objective: - To know about the which category is consume 20-20 Parle .

6.20-20 cricket logos is helpful l in sales of Parle 20-20 biscuit A-YES B- NO 51

Objective: - To know about the consumer mantality

7. Which brand has best market delivery / availability in market? A-ITC

52

[Type text]

B-PARLE Objective: To know about the market approach of the product.

Recommendations It is ITC's strategic intent to secure long-term growth by synergising and blending the diverse pool of competencies residing

53

in its various businesses to exploit emerging opportunities in the FMCG sector. The Company’s institutional strengths – deep understanding of the Indian consumer, strong trademarks, deep and wide distribution network, agri-sourcing skills, packaging know-how and cuisine expertise – continue to be effectively leveraged to rapidly grow the new FMCG businesses. Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products, Personal Care products, Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues growing at an impressive compound annual growth rate of 38% during the last 5 years. The Company’s unwavering focus on quality, innovation and differentiation backed by deep consumer insights, world-class R&D and an efficient and responsive supply chain will further strengthen its leadership position in the Indian FMCG industry. 

Company must focus on rural areasso that theycan increase their sales.



Products have to be essentially available in market at all given points of time.



ITC

must

also

be

aware

of

new

entrants

like

GSK,PepsiCo,UK,Shakti Bhoj in FMCG segment. 

Margins for retailers must be increased.

My other observations:-

1).

In order to increase sale in biscuit Market the

company should focus on rural area, and ITC will give tough competition in next 2 years.

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[Type text]

2. The ITC has failed to convince the economic class of people that it has FMCG industry apart from Tobacco and Hotels

Bibliography Website:www.itortal.com/ -

Pvt.

(I)

Ltd

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