2012

ITC LTD.

COMPETITIORS ANALYSIS OF COOKIES MARKET WITH SPECIAL REFERENCE TO ITC SUNFEAST COOKIES

UNDER GUIDANCE OF FACULTY:-

MR. MUKESH MISHRA MARKETING (RCM) MR. RAHUL RANJAN AREA EXECUTIVE, ITC LTD. (BOKARO, JHARKHAND)

CORPORATE GUIDE:-

SUBMITTED BY:-

RAHUL KUMAR REG. NO:-1106247183 BATCH- 2011-13

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Declaration
I, Mr. Rahul Kumar hereby declare that the project report on COMPARATIVE ANALYSIS OF COOKIES MARKET WITH SPECIAL REFERENCE TO ITC SUNFEAST COOKIES submitted to the company is done under the supervision of Mr. Rahul Ranjan Area Executive of ITC India Ltd. (Bokaro) and is my own effort and is not published in any other organization.

Place : Bokaro Date :

Rahul Kumar Regd. No.- 1106247183

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ACKNOWLEDGEMENT
Thanking is a formality and sometimes a necessity, nevertheless an essential part of any project report. The list of expression of thanks no matter how extensive is always incomplete and inadequate. This acknowledgement is no exception. One of the best part of writing a project report is the opportunity to thank those who have contributed to it. This project report has been made possible through direct and indirect co-operation of various persons of different outlets. I specially wish to acknowledge the following people who reviewed the project. Thank for the most perspective and helpful comments.

I am extremely grateful to Mr. RAHUL RANJAN, Area Executive, Bokaro Branch, ITC India Ltd. for giving me the opportunity to undergo my Summer Project in his organization.

I am also thankful to Mr. Mukesh Mishra, Marketing Faculty, Regional College of Management, for helping me to get such an excited summer project under his internal guidance. Last but not the least, I also like to thanks all the respondents & my friends for giving me their precious time, relevant information and experience without which the project have been different story.

Rahul Kumar
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MBA (2011-13)

CORPORATE GUIDE CERTIFICATE

This is to certify that the work entitled COMPARATIVE ANALYSIS OF COOKIES
MARKET WITH SPECIAL REFERENCE TO ITC SUNFEAST COOKIES is the piece

of team project done by Rahul Kumar student of MBA under the guidance and supervision of partial fulfillment of MBA curriculum of Regional College of Management Autonomous , Bhubaneswar.

To the best of my knowledge and belief the term project report: 1. Embodies the work of candidate them self. 2. Has been duly completed. 3. Is up to the standard both in respect to the content and language for being referred to the examiner.

( Rahul Ranjan)
Area Executive, ITC LTD, Bokaro.

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FACULTY GUIDE CERTIFICATE

This is to certify that the work entitled COMPARATIVE ANALYSIS OF COOKIES
MARKET WITH SPECIAL REFERENCE TO ITC SUNFEAST COOKIES is the piece

of team project done by Rahul Kumar student of MBA under the guidance and supervision of partial fulfillment of MBA curriculum of Regional College of Management Autonomous , Bhubaneswar.

To the best of my knowledge and belief the term project report: 1. Embodies the work of candidate them self. 2. Has been duly completed. 3. Is up to the standard both in respect to the content and language for being referred to the examiner.

( Mukesh Mishra) Faculty Marketing, RCMA

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ABSTRACT
As the title of the project suggests, this project is all about study of the Comparative analysis of cookies market with special reference to ITC Sunfeast to ITC product in Bokaro. The population of the city growing rapidly so as the market size. Due to the technological advancement and changing preferences of the consumers there is cut throat competition in the market.

As the per capita income of the city is increasing, it leads to betterment in the living standard of the people, it provide ample opportunity for FMCG companies to increase their market penetration. Since every company wants to enjoy the major market share, so it became indispensible for all the existing companies make strategic and tactical moves frequently. The major competitors for ITC LTD are HUL, DABUR, CALVINCARE, P&G, GODREJ, HIMANI, BRITANNIA etc. As the project is all about the detail study of FMCG product in Bokaro market, a lot of survey throughout Bokaro is conducted, by which all the primary information about the products were collected. In this process several wholesaler & retailer were surveyed. All the required secondary informations were gathered from the company as well as from the internet, books & journals. In order to find out the Brand & their price preferences and the service level they want from a company, a questionnaire has been prepared. The questionnaire for the existing wholesalers & retailers will help to interpret the satisfaction level of the brand they currently have. At last the required data were extracted from the questionnaire and by adopting different suitable charts the conclusion about the Comparative analysis of cookies market with special reference to ITC Sunfeast of ITC LTD and their market potential as comparison to other brands drawn.

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SL. NO.

CHAPTERS DECLARATION ACKNOWLEDGMENT CERTIFICATES ABSTRACT

PAGE NO.

01. 02.

INTRODUCTION EXECUTIVE SUMMARY 2.1 COMPANY PROFILE 2.2 PRODUCT LITERATURE REVIEW RESEARCH OBJECTIVE RESEARCH METHODOLOGY DATA ANALYSIS & INTERPRETATION SUGGESTION & LIMTATIONS CONCLUSION BIBLIOGRAPHY QUESTIONNAIRES

09-13 14-40

03. 04. 05. 06. 07. 08. 09. 10.

41-48 49-50 51-54 55-64 65-67 68-69 70-71 72-74

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CHAPTER-1

INTRODUCTION

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INTRODUCTION:
In todays fast running world, FMCG Products are becoming the basic needs of the human life. One cant even think to lead a life without the use of them. These products make their life a little better, everyday. India has 113,000-crore FMCG market. This figure in itself shows the potential and size of the FMCG Market india have. Now question arises What is FMCG. WE regularly talk about things like butter, potato chips, toothpastes, razors, household care products, packaged food and beverages, etc. They are called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods which refers to things that we buy from local markets on daily basis, the things that have high turnover and are relatively easy to purchase.

FMCG PRODUCT & CATEGORIES

Personal Care, Oral Care, Hair care, Skin care, Personal Wash (soaps); Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products; Household care fabric wash including laundry soaps and synthetic detergents;

SECTOR OUTLOOK
FMCG is the fourth largest sector in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG sector generates 5% of total factory employment in the country and is creating employment for three million people, especially in small towns and rural India.

ANALYSIS OF FMCG SECTOR

Strengths:
1. Low operational costs 2. Presence of established distribution networks in both urban and rural areas 3. Presence of well-known brands in FMCG sector

Weaknesses:
1. Lacking in distribution channel. 2. Not stable in price policy.

Opportunities:
1. Untapped rural market 2. Rising income levels, i.e. increase in purchasing power of consumers 3. Large domestic market a population of over one billion. 4. Export potential 5. High consumer goods spending
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Threats:
1. Removal of import restrictions resulting in replacing of domestic brands 2. Cut throat competition in this segment.

INDIAN FMCG MARKET

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterised by a well established distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most products categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.

FMCG INDUSTRY SET FOR 20-30% GROWTH ON INCREASED RURAL DEMAND:

The FMCG industry is set to grow 20-30 per cent in 2009-10,up from 10-20 per cent in 200809. The growth would be driven by the launch of new products and increasing rural consumption, according to industry experts The beverage industry in India is being estimated to grow at 17% this year according to experts. Food and beverages segment has not suffered despite the slowdown in the economy. Coca Cola India Ltd, for instance, continued to report growth for an eleventh straight quarter. E.g. Coca-cola in india reported solid first quarter 2009 results despite a challenging economic environment, with unit case volume increasing 31 per cent with eight quarters out of the 11 quarters delivering double-digit growth. There has not been any drop in demand for consumer products at popular price points. However, there may have been some narrowing in demand at the top-end of the market; in the mass market, demand continues to be strong, both from rural and urban markets. Company is looking at penetrating deeper into rural and semi-urban markets. New launches and geographical extensions of various brands will add impetus to growth.

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Top 10 FMCG COMPANY

1. Hindustan Unilever ltd. 2. ITC India Ltd. 3. Nestl India 4. GCMMF (AMUL) 5. Dabur India 6. Asian Paints (India) 7. Cadbury India 8. Britannia Industries 9. Procter & Gamble 10. Marico Industries

SCOPE OF THE SECTOR:

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segment characterize the sector. FMCG sector will translate into an annual growth of 10% over a 5-year period. It has been estimated that the FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene and the chocolates and confectionary categories are estimated to the fastest growing segments, according to HSBC report.

GROWTH PROSPECTS
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%.

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INDIAN COMPETITIVENESS AND COMPARISON WITH THE WORLD MARKETS:

The following factors make India a competitive player in FMCG sector: Availability of raw materials Presence across value chain- For example Amul supplies milk as well as dairy products like cheese, butter, etc. Labour cost comparison Indias labour cost is amongst the lowest in the world, after China & Indonesia. Low labour costs give the advantage of low cost of production.

INDIAN CONSUMER CLASS:

India has a population of over 1 billion and 4 climatic zones, several religious and personal beliefs, 15 official languages; different social custom and foods habits characterize Indian consumer class. Besides, India is also different in culture as compared to the other countries. Therefore, India has high distinctiveness in demand and the companies in India can get a lot of market opportunities for the various classes of consumers. Consumer goods marketer experience that dealing India is like dealing with many small markets at the same time. Indian consumer goods markets is expected to reach $400 billion by the 2010. India has the youngest population; there are lots of young people with different income category. Consumer goods marketers are often faced with a dilemma regarding the choice of appropriate market segment. But in India they do not have to face this dilemma largely because rapid urbanization, increase in demand, presence of large number of young population, any number of opportunities is available. The bottom line is that Indian market is changing rapidly and is showing unprecedented consumer business opportunity. Indian consumer class can be classified according to the following criteria: 1. Income 2. Socio-Economic status. 3. Age demographics 4. Geographical dispersion

Conclusion:
With the liberalization and growth of the Indian economy since the early 1990s, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers personal consumption. As a whole, these changes have the positive impact, leading to rapid growth in the retailing industry, and created a huge potential for the FMCG markets.

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CHAPTER- 2

EXECUTIVE SUMMARY
2.1 2.2 COMPANY PROFILE. PRODUCT

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COMPANYS PROFILE:
ITC Limited
Type Industry Founded Headquarters Public (BSE: 500875) Conglomerate 24 August 1910 Kolkata, India Yogesh Chander Deveshwar, Chairman Key people K. Vaidyanath, Director, Kurush Grant, Director, Rajiv Tandon (CFO)

Cigarettes Hotels Apparel Tobacco Foods Products Stationery Personal Care Paperboard and specialty papers Printing and packaging Matches and Agarbattis Infotech

Revenue Employees Website

US$6 billion (2009) 26,000 (2009) ITCportal.com

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ITC believes that large corporations which employ a vast quantum of societal resources should ensure that these resources are utilised in a manner that meets stakeholders aspirations and societal expectations. This belief is reflected in the Companys deep commitment to contribute to the triple bottom line, namely the development, nurture and regeneration of the nations economic, social and environmental capital.
ITC Ltd is one of India's premier private sector companies with diversified presence in businesses such as Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, Packaged Foods & Confectionery ,Stationery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. Presently, ITC has a market capitalization of nearly US $ 15 billion and a turnover of over US $ 6 billion. It employs over 25,000 people at more than 60 locations across India. ITC has been rated among the World's Best Big Companies, Asia's 'Forbes 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.

COMPANY HISTORY:
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then 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-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 Companys 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. 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,
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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-Welcome group 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 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 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
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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 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 premium 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 Indias 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 environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium 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 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 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 and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&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 Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as
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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 matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. 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. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

THE ITC WAY:

ITC is a board-managed professional company, value for the shareholder and for the nation. It rooted in its core values of respect for people philosophy of all-round value creation is backed policies and systems. ITCs corporate strategies are :

committed to creating enduring has a rich organizational culture and belief in empowerment. Its by strong corporate governance

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agro Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality.

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Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses. Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

THE ITC MISSION & VISION:-

Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value

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

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CORPORATE GOVERNANCE:
Preamble Over the years, ITC has evolved from a single product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging, paper and paperboards and international commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. The challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole. Since the commencement of the liberalisation process, India's economic scenario has begun to alter radically. Globalisation will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITC's governance policy recognises the challenge of this new business reality in India. Definition and Purpose ITC defines Corporate Governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum of societal resources, we believe that the governance process should ensure that these companies are managed in a manner that meets stakeholders aspirations and societal expectations. Core Principles ITC's Corporate Governance initiative is based on two core principles. These are: i. ii. Management must have the executive freedom to drive the enterprise forward without undue restraints; and This freedom of management should be exercised within a framework of effective accountability. ITC believes that any meaningful policy on Corporate Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations.
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Cornerstones From the above definition and core principles of Corporate Governance emerge the cornerstones of ITC's governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance. Trusteeship: ITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees. This belief therefore casts a responsibility of trusteeship on the Company's Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure that the Company fulfills its obligations and responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are protected. Transparency: ITC believes that transparency means explaining Company's policies and actions to those to whom it has responsibilities. Therefore transparency must lead to maximum appropriate disclosures without jeopardizing the Company's strategic interests. Internally, transparency means openness in Company's relationship with its employees, as well as the conduct of its business in a manner that will bear scrutiny. We believe transparency enhances accountability. Empowerment and Accountability: Empowerment is an essential concomitant of ITC's first core principle of governance that management must have the freedom to drive the enterprise forward. ITC believes that empowerment is a process of actualizing the potential of its employees. Empowerment unleashes creativity and innovation throughout the organization by truly vesting decision-making powers at the most appropriate levels in the organizational hierarchy. ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors. We believe that empowerment, combined with accountability, provides an impetus to performance and improves effectiveness, thereby enhancing shareholder value. Control: ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of
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power, facilitate timely management response to change, and ensure that business risks are pre-emotively and effectively managed. Ethical Corporate Citizenship: ITC believes that corporations like itself have a responsibility to set exemplary standards of ethical behavior, both internally within the organization, as well as in their external relationships. We believe that unethical behavior corrupts organizational culture and undermines stakeholder value.

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PRODUCTS OF ITC LTD.

Cigarettes

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol and Flake, Silk Cut and Duke.

The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary
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and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands. ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur, Kolkata and Pune. These factories are known for their high levels of quality, contemporary technology and work environment.

ITC's Cigarettes business has been winning numerous awards for its quality, environmental management systems and product excellence:

'Best Manufacturer of Cigarettes' for the year 2008 & 2007 and Best Exporter of Cigarettes for 2008 by the Tobacco Board based on previous three years' performance. Occupational Health and Safety Award 2007 for Excellence in Safety Management to the Bengaluru, Saharanpur and Kolkata factories from the Royal Society for Prevention of Accidents (ROSPA), U.K. 5 Star Health and Safety Rating in 2007 from the British Safety Council to the Bengaluru, Munger, Kolkata and Saharanpur factories and the "Sword of Honour" for Bengaluru & Saharanpur factories in 2006. Greentech Gold Award for excellence in Safety Management for the year 2007 to the Bengaluru, Kolkata and Saharanpur cigarette factories for the high level of performance that the units have achieved in Environment Health and Safety (EHS). Saharanpur along with Kolkata and Munger factories were honoured with the Gold award and the Bengaluru Factory with the Platinum Award in 2006. Greentech Gold Award for Excellence in Environment Management 2007 to the Bengaluru, Kolkata and Munger factories. Safety Innovation Award for 2007 and 2006 for Innovative Safety Management System to the Bengaluru Factory from the Institution of Engineers and also the Unnatha Suraksha Puraskara Award 2006 from NSC Karnataka Chapter. Golden Peacock Award for Occupational Health and Safety from the Institute of Directors, New Delhi; Award for Outstanding Performance in Environment Health and Safety from the CII and the Suraksha Puraskar Award from the National Safety Council,

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Mumbai to the Kolkata factory in 2007 and the "1st National Security Today Award" in the category of Best Maintained Fire Safety System in 2005.

Occupational Health and Safety Gold Award from the ROSPA, UK; the Winners Trophy - Safety Health and Environment Award from the CII Eastern region; National Award for Excellence in Water Management and Innovative Project Award Initiatives for Energy Conservation from the CII to the Munger factory in 2007 and also the Excellence in Water Management Award from CII-GBC for 2006. All the four factories are certified by Det Norske Veritas (DNV) for ISO 14001, for their Environment Management Systems, OHSAS 18001 for their Occupational Health and Safety Management Systems (OHSMS) and the ISO 9000-2000 for Quality Management Systems. The Kolkata factory is the first cigarette factory in India to be awarded the SA 8000 Certificate for Social Accountability by Det Norske Veritas (DNV) in June 2004. ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also certified for the standard ISO/IEC17025:2005, by National Accreditation Board.

Cigars
ITC launched its handrolled cigar, Armenteros, in the Indian market in March 2010. Armenteros cigars have been developed to suit the discerning taste of the Indian cigar connoisseur. The perfect balance of flavour, aroma and taste, Armenteros handrolled cigars are the perfect option for the cigar connoisseur.

Armenteros cigars are being sourced from the Dominican Republic, the largest producer of handrolled cigars in the world. The cigars are being manufactured at La Aurora, which is one of the oldest cigar companies in the world and is run by the reputed Leon Jimenes family. The
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products and the packaging are custom-made to ITC specifications and stringent quality parameters. Armenteros is a trademark owned by ITC Limited. Armenteros Hand rolled Cigars have a unique blend comprising tobacco from the best growing regions of the world. The exquisite wrapper leaf comes from Cuban seed tobaccos grown in the mountains of Ecuador. This full bodied and aromatic wrapper leaf has a smoothness of texture considered among best in the world. The Sumatra seed, grown in Brazil, is used as the binder. These tobaccos take a great deal of care to mature, but once the leaf reaches its peak maturity, it offers a rich wisp of spicy and sweet flavour to the cigar. The exceptional filler is a masterful blend of tobaccos. The strength and earthiness of the Nicaraguan and Brazilian tobaccos are balanced with the mild yet rich taste of tobaccos from the Dominican Republic and Peru. Expert cigar rollers and robust quality control measures ensure that Armenteros is a truly world class cigar.

Armenteros Handrolled Cigars are packed with utmost care. They are placed inside a specially designed wooden box, created with a unique hand crafted inverted curves design and polished till it radiates perfection. The box also carries a Certificate of Authenticity signed by the Master Blender & the Production Director as a pledge to deliver the best products. The Cedar inlayer inside the box compliments the woody and earthy aromas of the cigars. The entire packaging design and graphics portray the rich and exclusive Armenteros lineage. Available in the most popular cigar sizes (Churchill, Torpedo, Corona, Petit Corona and Robusto), The Armenteros portfolio consists of 8 pack sizes comprising 3, 5 and 10 cigars. Armenteros cigars will be available exclusively at tobacco selling outlets in select hotels, fine dining restaurants and exclusive clubs. Armenteros cigars will initially be launched in Delhi and Mumbai, which account for a major share of the Indian cigar market. Subsequently, the brand will be introduced in other metros.

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The Churchill with a length of 7 inches and a ring gauge of 47

The Torpedo with a length of 6 1/8 inches and a ring gauge of 52

The Robusto with a length of 4 7/8 inches and a ring gauge of 50

The Corona with a length of 5 5/8 inches and a ring gauge of 46

Foods:
ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The packaged foods business is an ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine, contemporary packaging and sourcing of agricultural commodities. ITC's world famous restaurants like the
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Bukhara and the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a deep understanding of the Indian palate and the expertise required to translate this knowledge into delightful dining experiences for the consumer. ITC has stood for quality products for over 100 years to the Indian consumer and several of its brands are today internationally benchmarked for quality. The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. Apart from the current portfolio of products, several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bengaluru. Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 100 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets, through the e-Choupal initiative, and produce the quality demanded by its customers. This long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business. The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods Staples Confectionery Snack Foods

In order to assure consumers of the highest standards of food safety and hygiene, ITC is engaged in assisting outsourced manufacturers in implementing world-class hygiene standards through HACCP certification. The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 6 brands:

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Personal Care:
In line with ITC's aspiration to be India's premier FMCG Company, recognized 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 proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally. ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked 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 recognized safe ingredients, subjected to the highest standards of safety and performance.

Education and Stationery:

ITC made its entry to the education and stationery business with its Paperkraft brand in the premium 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 terms of product & price.
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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 environment-friendly. Other offerings available in education and Stationery range are safe and certified non-toxic.

Safety Matches:
As part of its strategic initiative to create multiple drivers of growth in the FMCG sector, ITC commenced marketing safety matches sourced from the small-scale sector. The Matches business leverages the core strengths of ITC in marketing and distribution, brand building, supply chain management and paperboard & packaging to offer Indian consumers high quality safety matches. ITC's range of Safety matches include popular brands like i Kno, Mangaldeep, Stylites, Aim and Aim Mega. With differentiated product features and innovative value additions, these brands effectively address the needs of different consumer segments. Aim is the largest selling brand of Safety Matches in India. ITC also exports regular and premium safety matches brands to markets such as Middle East, Africa and the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly owned subsidiary of ITC has consolidated the market standing of the Company's Matches business through synergy benefits derived through combined portfolio of offerings, improved servicing of proximal markets and freight optimization. Through its participation, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and marketing strengths, especially the breadth and depth of the Company's trade marketing and distribution.

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Agarbattis:
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 small-scale and cottage units in 2003. This Business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain 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, Tarangini, Anushri, Ananth and Mogra. Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide consumer acceptance. The premium range from ITC, Mangaldeep Spriha has two offerings, Pratiti and Sarvatra and are specially hand rolled by Cottage Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries, Puducherry, has been accredited with IFAT certification, which is an internationally recognized benchmark for fair trade practices. Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice of multiple fragrances in a single pack. Mangaldeep appeals to a cross-section of consumers with offerings at various price points. These agarbattis are available in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of packaging which retains the fragrance for a longer period and helps in "Completing the Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an industry dominated by multiple local brands.
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Mangaldeep Dhoop, made with Natural Ingredients, is available in specific markets and is fast emerging as a key player in North India. Recently, Mangaldeep launched the Premium range of Sarvatra Flora agarbattis. Sarvatra flora agarbattis are a wet type of agarbattis, different from the normal agarbattis. These agarbattis have a natural base, are brownish in colour and offer a wholesome and differentiated fragrance experience to the consumer. Sarvatra Flora Agarbattis are now available in select markets. The Business is currently working on various exciting new offerings to the consumers and is planning to launch them in the near future.

4PS OF SUNFEAST

Products:
Cookies:

Snack Foods In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast's brand essence connotes happiness, contentment, satisfaction and pleasure. In a span of 9 years, Sunfeast has well34 | P a g e

established presence in almost all categories of biscuits and is also a key player in the pasta and instant noodles segments.

Sunfeast 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. These biscuits strike the right balance of milk and wheat which helps in an all round development and nurturing of the child.

Sunfeast Marie Light Sunfeast Marie Light Original : This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps one light and healthy through the day . Sunfeast Marie Light Orange : It has the distinction of being one of the most successful innovative Marie biscuits and is liked by one and all. Sunfeast Marie Light Oats: The first of its kind in India, Sunfeast Marie Light Oats is enriched with the goodness of natural wheat fibre and soluble oats fibre. Sunfeast Dark Fantasy

Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Dark Fantasy is more than a biscuit, its a luxurious mix of aromatic cocoa and vanilla.

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Sunfeast Dark Fantasy Choco Fills

Sunfeast Dark Fantasy Choco Fills is the latest and the most premium offering from the portfolio of Sunfeast. An exquisite combination of luscious chocolate filling enrobed within a perfectly baked rich cookie outer. An offer that fully epitomizes the brand promise of "Pure Indulgence". Sunfeast Glucose

For those light hunger pangs, a wholesome & nutritious choice as these golden brown biscuits are made from the best quality wheat. Sunfeast Glucose biscuits are ideal not just for kids but for adults too. Sunfeast Dream Cream A truly scrumptious range of cream biscuits that have become an instant hit with children. ITCs chefs have put their legendary skills into these biscuits to deliver truly tasty cream biscuits.

'Dream Cream' split cream variants are available in 'ChocoVanilla' and 'Strawberry-Vanilla' flavours.

Bourbon A special delight for all those chocolate lovers.

Orange Cream Experience a tangy twist in biscuits with every Orange cream.

Butterscotch Cream Another first, the taste of butterscotch ice-cream in cream biscuits.

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Sunfeast Snacky

Bigger than most others in the salted biscuits category, Snacky is light and crispy like no other. From kids to adults, its the quintessential Family Biscuit. Available in two variants, Classic salted and Chilli flakes - the very first of its kind in India. Sunfeast sweet n salt

These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness. A bite into one of these one keeps wondering about its taste! Sunfeast Nice

These crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness will just go on to make all those nice moments nicer.

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Sunfeast Special ITC Sunfeast presents a range of Special cookies and creams.

Special Cookies: Made with best quality wheat, cashew and butter, Sunfeast Special cookies are baked with real butter and the finest ingredients to give a mouth-watering treat that makes every moment special. Available in Cashew & Butter. Special Creams: Delicious value for money cream biscuits with a thick layer of cream sandwiched between two biscuits. Available in Orange, Chocolate & Elaichi variants. Sunfeast Pasta

The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking options as well. Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking option for children and young adults. After the tremendous success of the 4 initial flavours, (Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended with three new exciting flavours - Pizza style, Chicken and Tangy Tomato.
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Distribution network: The company used its existing network of convenience stores: the companys name for the hole-in-the-wall pan-beedi shops for Sunfeast. The company also looked at grocery stores and other retail formats. The company says the brand is now available in nearly 1.8 million outlets. 14 manufacturing units The company has extended its manufacturing capacity by setting up three new biscuit plants in UP and West Bengal to focus on supply chain management strategy to enhance product freshness, market servicing and margins.

Place:-

Manufacturing units:-

Promotions: Advertisements & promotions: 35-40% of turnover Sunfeast school programme : cover 1000 schools across country, to familiarize children with sunfeast brand name and sunfeast mascot. Brand ambassador: shahrukh khan & surya (south actor). Official sponsor of WTA tennis championship-sunfeast open.

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Launch of Sachins Fit Kit, the first product co-created with brand ambassador. Other activities: On buses, print media , hoardings, TV and radio advertisements.

Price:Sunfeast look at a two prolonged strategy: High margin & High volume (High margins in cream variants and volumes from the Marie and Glucose segments) examplessunfeast glucose sunfeast marie light Sunfeast dream cream (200 gm) (130 gm) (82 gm) 20/10/10/-

Reason for Entry into Biscuits

Food segment is Rs.50,000 crores. Increasing at the rate of 17-19 %. India will have more organized and branded food product categories. It will cause a dual effect: Increase of in base of biscuit segment and Increase in % of branded food categories. Innovation: Research revealed that this category had gaps which could be ITCs biggest point of attack. ITC launched Sunfeast with 6 ranges in 2003. Consumers were waiting for something new and fresh. Good Distribution network. A Biscuit consumer is willing to pay more only when he sees a clearly differentiated product. So, sunfeast followed different pricing strategies for its innovative products.

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CHAPTER-3

LITERATURE REVIEW

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MARKETING COMMUNICATION
Modern marketing is the management of the four Ps product, price, promotion and place or distribution channel. In a sense the entire marketing process has a large content of communication. For instance, the product communicates a distinctive image such as youthfulness, glamour or prestige. The brand name communicates physical and psychological attributes of the product. The package communicates to the manufacturer thinks of his convenience and the sense of beauty. The price communicates the quality of the product. There are communication between buyer and seller i.e. the distribution channel. Thus each element of the marketing mix either helps or hinders communication and ultimately the sales effort. The marketing communication 1. Advertising. 2. Sales Promotion. 3. Publicity. 4. Personal Selling. 5. Public Relation.

SALES PROMOTION:
Sales Promotion make the consumer take the favourable purchase decision by providing one or the other kind of the direct inducement, e.g., discount, price off, gift coupon etc. Sales promotion is a short term approach, a direct approach and expects an immediate response in term of sales. Displays and contest are effective methods of sales promotion.

OBJECTIVES OF THE SALES PROMOTION:

To introduce new products To attract new customers and retain the existing ones To maintain sales of seasonal products To meet the challenge of competition

SALES PROMOTION STRATEGY:

Sales are the lifeblood of a business, without sales there would be no business in the first place; therefore it is very important that if a business wants to succeed, it should have a sales promotion strategy in mind. The primary objective of a sales promotion is to improve a company's sales by predicting and modifying your target customers purchasing behaviour and patterns. Sales promotion is very important as it not only helps to boost sales but it also helps a business to draw new customers while at the same time retaining older ones. There are a variety of sales promotional strategies that a business can use to increase their sales. The importance of a sales promotion strategy cannot be underestimated. This is because a sales promotion strategy is important to a business boosting its sales. When developing a sales promotion strategy for business, it is important that you keep the following points in mind.
Consumer Your Your

attitudes and buying patterns

brand strategy competitive strategy

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Your And

advertising strategy

other external factors that can influence your products availability and pricing.

SELECTING PROMOTIONAL TOOLS

A marketer must do the following while planning and sending communications to a target audience: 1. Identify the Audience, individuals, groups, special publics or the general public. i.e. Intermediaries vs consumer 2. Identify the Stage of Product Life Cycle:
Introductory

inform publicity/advertising/sales force (interm.)/sales promotion (free

samples)
Growth

Persuade differentiate from competitors offering Remind Reminder advertising, sales promotion (coupons) Cut budget

Maturity Decline

3. Product Characteristics
Complexity Risk

4. Stages of Buying Decision Adoption Process

Not

Aware--Advertising/Publicity knowledge Advertising/Publicity do they feel? Personal Selling/Sales promotion/Advertising they try? sales promotion/personal selling

Aware--no

Interest--how

Evaluation--should Trial--test

drive/sales promotion they purchase? Reminder/reinforce-- advertising

Adoption--do

Communication programs goal must lead consumers to take the final step. 5. Channel Strategies
Push-promotes Pull-promotes

product only to the next institutions down the marketing channel.

directly to consumers, intention is to create a strong consumer demand, primarily advertising and sales promotion.

SCOPE AND IMPORTANCE OF SALES PROMOTION:

Companies Quick More

are looking to get a competitive edge

returns are possible for short term profits members putting pressure on manufacturer for promotions.

consumers are looking for promotions before purchase

Channel

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Advancement

in tech. makes SP easier. (i.e. coupon redemption)

SALES PROMOTION OPPORTUNITIES AND LIMITATIONS

Opportunities:
Increase

in sales by providing extra incentive to purchase. May focus on resellers (push), consumer (pull) or both.
Objectives Balance Attract

must be consistent with promotional objectives and overall company objectives.

between short term sales increase and long term need for desired reputation and brand image. customer traffic and maintain brand/company loyalty. functions-calenders, T- Shirts, match books etc. purchases increased by displays generate excitement esp. with high payoffs.
Reminder Impulse

Contests

Limitations:
Consumers May

may just wait for the incentives

diminish image of the firm, represent decline in the product quality. profit margins, customers may stock up during the promotion.

Reduces

SALES PROMOTION METHODS

Consumer Sales Promotion Techniques
Encourage/stimulate customers to patronize a specific retail store or to try a specific product.
Coupons Demonstrations Frequent Point

User Incentives

of Purchase Display Refunds/Rebates and Sweepstakes

Money

Premium Items Consumer Contests

Trade Sales Promotion Techniques

Trade Sales Promotion Techniques stimulate wholesalers and retailers to carry products and to market them aggressively.
Allowances

and Discounts: for extra retail support, i.e. advertising, shelf space

Merchandise...reimburse

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Case...discount

on cases ordered in specific period. for financial costs/losses associated with consumer sales

Finance...Paying

promotions.
Cooperative Training

Advertising: manufacturer agrees to pay a certain amount of retailers media.

of Sales Staff

IMPORTANCE OF SALES PROMOTION:

The business world today is a world of competition. A business cannot survive if its products dont sell in the market. Thus, all marketing activities are undertaken to increase sales. Producers may spend a lot on advertising and personal selling; still the product may not sell. So incentives need to be offered to attract customers to buy the product. Thus, sales promotion is important to increase the sale of any product.

From the point of view of manufacturers

Sales promotion is important for manufacturers because 1) it helps to increase sales in a competitive market and thus, increases profits; 2) it helps to introduce new products in the market by drawing the attention of potential customers; 3) when a new product is introduced or there is a change of fashion or taste of consumers, existing stocks can be quickly disposed off; 4) it stabilizes sales volume by keeping its customers with them. In the age of competition it is quite much possible that a customer may change his/her mind and try other brands. Various incentives under sales promotion schemes help to retain the customers.

From the point of view of consumers

Sales promotion is important for consumers because 1) the consumer gets the product at a cheaper rate; 2) it gives financial benefit to the customers by way of providing prizes and sending them to visit different places; 3) the consumer gets all information about the quality, features and uses of Different products; 4) certain schemes like money back offer creates confidence in the mind of customers about the quality of goods; and 5) it helps to relies the standard of living of people. By exchanging their old items they can use latest items available in the market. Use of such goods improves their image in society.

DISTRIBUTION CHANNEL:
As sales promotion is designed on the basis of distribution channel and their customer, so it is necessary to know about the distribution channel. Introduction of intermediaries between the consumer and the manufacturer, when each element is passing the product down the chain to the next level, before it finally reaches
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the consumer or end-user. This process is known as the distribution chain or the channel. Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

CHANNEL MEMBERSHIP:
1. Intensive distribution where the majority of resellers stock the product 2. Selective distribution This is the normal pattern where suitable reseller stock the product. 3. Exclusive distribution Only authorized dealers are allowed to sell the product.

CHANNEL MOTIVATION
The most usual incentive: the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a competition is offered to the distributors sales personnel, so that they are tempted to push the product.

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DISTRIBUTION NETWORK USED BY ITC LTD.

SWOT ANALYSIS:
ITC LTD. is a global manufacturer and marketer of consumer products. It operates in many distinct business segments: cigarettes, cigar , personal care, home care, agri business, life style segment, education & stationary segment and snacks & beverages. It has some of the most well-known and established brands in its portfolio but faces intense competition from other global consumer giants as well as local companies. STRENGTHS Strong branding. Large scale of operations. Leading market position. Diversified & innovative product portfolio. Strong finances in past year. Active involvement of master chefs in. innovating new verities of biscuits. The companys huge buying power (from commodities to media) is being progressively leveraged through global procurement and services.

.WEAKNESS Quality control problem. Not stable in price policy. Less penetration in some cities and town. Still dependent on tobacco business for revenues.

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OPPORTUNITY: Scope of Increasing market share as: Developing market. Demographic trend across the world especially in developing country. Presence of vast untapped rural market in country like india. Total production of biscuits in India is estimated to be around 30 lakh MT. The biscuit industry is estimated to grow over 15-17% in the next few years. In the mid to premium category, there are several taste buckets and categories available on the health & nutrition, indulgence and convenience platforms. In these three platforms there is still a lot to be exploited. It is possible to innovate around that.

THREAT: Presence of large number of competitors. Competition from other organized sector. Rising cost of energy price. Economic slowdown across the world. Every day market is segmented, new product arrived in the market. Brand loyalty decreases and people become more price sensitive.

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CHAPTER-4

RESEARCH OBJECTIVE

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RESEARCH OBJECTIVE
The main objective is to study the Comparative analysis of cookies market with special reference to ITC Sunfeast Cookies. Basically these comparisons among their competitors help the company to identify their product sales and get better market share against their competitors.

To find out the awareness of the sales promotion of ITC LTD. To show, how the sales promotion in creating demands of the product. To visualize the level of increase or decrease customer & retailer satisfaction
due to sales promotion.

To know the Brand awareness among the people of the Bokaro city. To know the acceptance of the ITC LTD. product by the different categories of
people of the different age group and the classes of the people in the society.

To know the factor influencing decision making while going for the purchasing
of Biscuits.

To find the effect of the sales promotion in the term of the value addition to
the consumer and retailer.

To recommend the suggestion to improve the effectiveness of the sales

promotion.

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CHAPTER-5

RESEARCH METHODLOGY

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RESEARCH METHODOLOGY
This research study involves knowing the different types Cookies available at different outlets and the average selling of the cookies during one month of period and also studied the strategy of selling the ITC cookies depends on which criterias in Bokaro market. What uniqueness special features it has got in its products which differentiated it from its competitors and how its sales promotion effort enhances and stimulates its short term sales to make push or pull strategy by the different retailers. TYPE OF RESEARCH:- This research is a type of descriptive research . SAMPLING TECHNIQUE:- It is a non-probablity quota Technique. NATURE OF SAMPLE:- Sample is taken from different market like- Chas, Siwandih, City-Center, Laxmi Market, Ram Mandir Market and different Sectors (i.e. Sectors2,3,12) etc. SAMPLE SIZE:- 150 outlets data is taken as a sample size. DATA SOURCES:-

We have collected the data from the seven different areas in the Bokaro city. Data wa

collected through both the primary and secondary sources. Primary data was collecte

from the market by circulating questionnaires to the respondent and the secondary da was collected from web sites and published material as listed in the bibliography.

Data Collection Method:

The data has been collected through a personal survey.

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Secondary data:- The secondary data were mainly collected from different books, magazines ,journals ,company literature ,news paper and from internet. Primary data:Survey via Questionnaire method : The questionnaire was prepared by the group discussion including internal guide from college and the objective, essence & mode of survey communicated to everyone and that questions I had to ask to the every outlet which I have taken as a sample size for collecting the data. DATA ANALYSIS: Relevant statistical tools like pie-chart, tabular sheet, graph etc.

SCOPE OF THE STUDY: ITC LTD is the world largest consumer goods that markets more than 100 branches across the world. The scope of the study are

1) Provides all the crucial information on ITC LTD. About the sales promotion

effort in bokaro city. 2) Contains a study of the major internal and external factors affecting sales promotion and ultimately affecting company sales. 3) Support sales activities by understanding customer businesses better. 4) Qualify prospective suppliers. 5) Keep fully up to date on your competitors business structure, strategy, and prospects. LIMITATION OF THE STUDY: Number of the limitation was faced by the researcher when the study was conducted: 1) Poor media exposure, low product & brand awareness- Media penetration, whether electronic or non-electronic is very low in semi urban and ruler india. Therefore awareness regarding product, brands and sales promotion was very low making studies virtually difficult. 2) Social taboos; difficult in interacting with women respondent.

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3) Interview timing- As the many retailers are always flooded with customer so it is very difficult to ask question from them. 4) The awareness regarding the product, brands was low in market. 5) The study was restricted to Bokaro only. 6) The result of the study may not be applicable for the longer of time as many new competitors are present and many are in the queue and also the customer needs and preferences were continuously changing with time. 7) Many respondents were very unfamiliar with the survey so that they were either hesitating or not co-operating with the researcher. 8) Many of the respondents was providing wrong data and informations. 9) Many respondents were compelling about the sales margin and new schemes to attract the retailers as well as customers of Bokaro City.

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CHAPTER-6

DATA ANALYSIS & INTERPRETATION

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DATA ANALYSIS AND INTERPRETATION

Sample data presented below are collected from the 150 retails and wholesale outlet of ITC LTD in Bokaro that comes under the different distribution channel and 50 consumer of ITC product (cookies) at different outlets. Based on which the data are analyzed:

1) Sales promotion 2) Average Sales 3) Consumer buying behavior 4) Availability of the competitors products. 5) Brand Awareness 1. AVAILABILITY OF ITC & ITS COMPETITORS PRODUCT IN DIFFERENT OUTLETS OF THE BOKARO MARKET. TYPE 1 2 3 4 CATAGORIES OF THE PRODUCTS
ITC SUNFEAST ANMOL BRITANNIA PARLE

NO. OF STORES (Products are available) 120 91 140 81

AVAILABILITY OF COOKIES AT DIFFERENT OUTLETS

160 140 120 100 80 60 40 20 0 SUNFEAST ANMOL BRITANNIA PARLE Series1

INTERPRETATION: Out of 150 surveyed stores of the different areas of BOKARO, 120
stores have the categories of ITC product, where as 140 stores have availability of Britannias product and Parle & Anmol are present at less than 100 outlets. So, ITC
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cookies have less fear than Parle & Anmol but Britannias Biscuits give them a big challenge.

2. PERCENTAGE OF SALES OF FOLLOWING BRANDS AT DIFFERENT OUTLETS OF BOKARO BRANDS

SUNFEAST ANMOL BRITANNIA PARLE OTHERS

AVERAGE SALE PER MONTHS (IN RUPEES) 227800 191200 390500 171000 781000

PERCENTAGE OF SALES 12.932% 10.854% 22.168% 09.707% 44.337%

PERCENTAGE OF SALES

Sunfeast Anmol Britannia Parle Others

INTERPRETATION:- Out of 150 surveyed outlets, for Sunfeast only 13% of

consumers are consume every month in Bokaro district , whereas Britannia have 22% and other brands (Local Brands) have 44% consumers or selling of every months.As per the data represented in the graph, it can be clearly seen that leaving behind the local brands of cookies Britanna is the market leader in terms of sales of cookies followed by Sunfeast, Parle and Anmol in terms of sale in Bokaro.

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3. SALES OF COOKIES DEPENDS UPON BRAND AWARENESS:AWARENESS

STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

RSEPONDENTS RESULTS 12 09 56 60 13

STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

INTERPRETATION:- The rankings of various brands of cookies are done according to

response from 150 retail outlets. 60 out of 150 of respondents has been agreed that the sale of cookies is being done because of its brands awareness among the people while 56 repondents are neutral at this point of juncture.

4. SALES OF COOKIES DEPENDS UPON PRODUCT QUALITY BRANDS

STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

RSEPONDENTS RESULTS 00 00 36 90 24

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SALES OF COOKIES DEPENDS UPON PRODUCT QUALITY STRONGLY DISAGREE DISAGREE NEUTRAL AGREE STRONGLY AGREE

INTERPRETATION:- The response about the sale of cookies due to its product
quality of various brands of cookies are done and according to response from 150 retail outlets none of them are disagreed. While more than 100 respondents are agreed that the demand of cookies is due to its product quality. So ITC have to look for it and should enhance their quality of cookies.

5. BRAND AWARENESS OF DIFFERENT COOKIES AMONG THE PEOPLE AWARENESS

SUNFEAST ANMOL BRITANNIA PARLE OTHERS

RSEPONDENTS RESULTS 67.6 66.4 88.4 79.6 59.8

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OTHERS PARLE BRITANNIA ANMOL SUNFEAST BRAND AWARENESS OF DIFFERENT COOKIES AMONG THE PEOPLE 0 10 20 30 40 50 60 70 80 90 100 Series1

INTERPRETATION:- As per the data represented in the graph, it can be clearly

seen that people of Bokaro are more aware about the brand of BRITANNIA (approximately 90%) followed by PARLE (approximately 80%) and SUNFEAST have awareness about 67% among the people. So, ITC have to look for it and make awareness of ITC Sunfeast cookies through more sales promotion, banners, hoardings, advertisements and implementing new and innovative ideas like discounts & different schemes in Bokaro.

6. PRODUCT QUALITY RANKED OF DIFFERENT COOKIES AMONG THE PEOPLE BRANDS

SUNFEAST ANMOL BRITANNIA PARLE OTHERS

PERCENTAGE OF PRODUCT QUALITY OF COOKIES 63.2 63.2 83.2 56.8 70.6

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OTHERS PARLE BRITANNIA ANMOL SUNFEAST PRODUCT QUALITY RANKED OF DIFFERENT COOKIES AMONG THE PEOPLE 0 10 20 30 40 50 60 70 80 90 Series1

INTERPRETATION:- The product quality of various cookies ranked by the response

from the people, many of the respondents have told that Britannia have better quality followed by the Local Brands (Raja Biscuits, Priya Gold, etc) and which is followed by ITC Sunfeast. So, to Become the market leader in Bokaro among the cookies Sunfeast have to do much more to enhance their quality.

7. SALES MARGIN GIVEN BY DIFFERENT COMPANIES OF COOKIES RANKED AMONG THE RETAILERS (RANKED FROM 1 TO 5):BRANDS
SUNFEAST ANMOL BRITANNIA PARLE OTHERS

SALES MARGIN (RANKED FROM 1 TO 5) 2.32 2.89 2.71 2.38 3.89

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4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 SALES MARGIN GIVEN BY DIFFERENT COMPANIES OF SUNFEAST ANMOLBRITANNIA PARLE OTHERS COOKIES RANKED AMONG THE RETAILERS (RANKED FROM 1 TO 5) Series1

INTERPRETATION:- The sales margin given by the different brand of cookies sets the
selling from the retailers. During the time of response many retailers are not happy with the sale margin given to the retailers from the company. And ranked at the bottom in context with the sales margin in comparing with other brands.

8. SCHEMES AVAILABLE TO THE RETAILERS BY DIFFERENT COMPANIES OF COOKIES (RANKED FROM 1 TO 5):BRANDS SCHEMES AVAILABLE (RANKED FROM 1 TO 5) SUNFEAST 2.32 ANMOL 2.89 BRITANNIA 2.71 PARLE 2.38 OTHERS 3.89

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4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 SCHEMES AVAILABLE TO THE RETAILERS BY DIFFERENT SUNFEAST ANMOL BRITANNIA PARLE COMPANIES OF COOKIES (RANKED FROM 1 TO 5) OTHERS Series1

INTERPRETATION:- Also in the context of schemes available from different brand of

cookies Sunfeast is at the bottom place. During the time of response many retailers are not happy with the schemes available from the company.

9. CONSUMER PROMOTION DONE BY DIFFERENT COMPANIES OF COOKIES:BRANDS

SUNFEAST ANMOL BRITANNIA PARLE OTHERS
100 90 80 70 60 50 40 30 20 10 0 SUNFEAST ANMOL BRITANNIA PARLE OTHERS Series1

CONSUMER PROMOTION (in %age) 60.44 61.99 89.16 53.27 64.92

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INTERPRETATION:- The consumer promotion activities are not innovative to create

consumer purchase and generate traffic for ITC Sunfeast cookies.60% of retailers are agreed for the consumer promotion in context with the other brand of cookies. Britannia have good consumer promotion among all the brand of cookies according to retailers.

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CHAPTER-7

SUGGESTIONS & LIMITATIONS

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LIMITATIONS
1) Media penetration is low in Bokaro market. 2) The awareness regarding the product, brands was low in market. 3) The retailers are always flooded with customer so it is very difficult to ask questions from them and get the answer. 4) The study was restricted in Bokaro only. 5) Many respondents were unfamiliar with the survey so that they were either hesitating or not co-operating with the surveyor. 6) Many of the respondents was providing wrong data and information. 7) Due to lack of time, surveyor couldnt able to touch all important aspect. 8) Many respondents were compelling about the sales margin and new schemes to attract the retailers as well as customers of Bokaro City. 9) The sales person are less influential and less trained to sell the products. 10) Availability of large number of substitutes is also affecting the survey.

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RECOMMENDATIONS
The availability and visibility of a product should be emphasized.

Better distribution channel should be maintained. Company should introduce sales promotion schemes like extra weight, contests, free gifts trials, offers (as Britannia offered to collect runs from its rappers & scratch the card to win the tickets or some other prizes at time of cricket world). Consumer who mainly purchase ITC product from retail counter they are mostly above the 18 year (mostly the parents) and either housewife or employee so sales promotion should be designed in according to them. There should be incentives for merchandisers for every display they enroll. Selection of skilled and trained salesman affects the sales. Frequency of advertisement should be increased to make the consumer familiar to products. Promote ITC cookies variants so that it will compete with the competitiors like Britannia, parle, priya gold, etc. There should be some mechanism to get and process the customers and retailers compliant and suggestion should be taken and implemented.. Needs, preferences, and taste of the consumers should be monitored continuously with effective feedback mechanism and according to them necessary changes should be brought into the product for total customer satisfaction. Company should emphasize and target those retail outlets for the push strategy to work who are providing more credit to customers because in the fortune store availing the credit to customers influence the buying behaviour of the customers. The frequency of the both consumer sales promotion and retail sales promotion should be properly monitored.

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CHAPTER-8

CONCLUSION.

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CONCLUSION
After the survey and analysis of result, I hereby came into conclusion that ITC India ltd is having moderate market hold in Bokaro city, even though it is facing heavy cut throat competition from rivals that make existing customer satisfied. The reason of good market share of ITC India ltd in Bokaro city is mostly the deep distribution of products in various beats. In Bokaro region the demand of ITC product is fairly good. The main competitors of the ITC India ltd is Britannia, Parle, Anmol & others (Local Brands) as they are also providing the ultimate quality product having almost all the features at the best competitive price but ITC is maintaining its market positions by providing high premium quality product with creative technology according to the demands of local market needs. In the Bokaro market there are many problem in the terms of supply of the products and schemes available to the retailer (low sales margin) and less public awareness of the product and low promotional activity in television, newspaper, hoardings. In the Bokaro market ITC has established itself as the market leader in the field of cigarettes regardless of other local brands previously and now it is going to established one another segment of cookies .In the Bokaro market ITC is working hard for increasing their market penetration and increase distribution in the market.

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CHAPTER-9

BIBLIOGRAPHY

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BIBLIOGRAPHY
1. Websites:
a. www.itcportal.com b. www.wikipedia.com c. www.annualreport.itc.com d. www.google.com e. www.scribd.com f. www.marketingreserch.com g. www.economictimes.com

2. Books & Journals:

a. Philip kotler, Marketing management

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CHAPTER-10

QUESTIONNAIRES

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QUESTIONNAIRES
A COMPARATIVE ANALYSIS OF COOKIES MARKET WITH SPECIAL REFERENCE

TO ITC SUNFEAST COOKIES :

Name of Outlet -------------------------------------------1. Location ------------------------------------------------2. Type of Outlet A. A. Departmental Store B. Kirana Store C. Confectionary Store D. Food Items B. Outlet Class ------------C. Which brand of Cookies are available in your Outlet(Tick out as applicable)
SKU/ Brand Rs 5 Rs 10 Rs 15 Rs25 Sunfeast Sunfeast SunFeast Butter Cashew Keshar Elaichi Anmol Butter Cake Britanna Butter Britanna Cashew Parle Butter Parle Cashew Parle Choco Chip Parle Elaichi

D. What is the average sales of following brands from your outlet ?

Name of Brand ITC Sunfeast Anmol Britannia Parle Others (specify) Average Sales per Month

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E. Rate the following statement as per criteria given below 1= Disagree, 2=Agree, 3 = Neutral, 4= Agree, 5= Strongly Agree A. B. C. D. E. F. G. H. I. J. K. L. Sales of Cookies depends upon Brand Awareness Sales of Cookies depends upon Product Quality Sales of Cookies depends upon Price of a brand Sales of Cookies depends upon consumer promotion on a brand Sales of Cookies depends upon sales margin given by company Sales of Cookies depends upon attractive schemes and discounts Sales of Cookies depends upon range availability at outlet Sales of Cookies depends upon product visibility in the outlet Sales of Cookies depends upon sales man relationship with the outlet Sales of Cookies depends upon service provided by distributor Sales of Cookies depends upon Consumer Choice (Pull Factor) Sales of Cookies depends upon Retailer Choice (Push Factor)

F. Rank the following brand as per the attributes given below(Rank1 to5)
Brand Brand /Attribute Awareness ITC Sunfeast Anmol Quality Consumer Promotion Sales Margin Schemes Range Availa -bility Salesman Quality Display allowance Service

Britannia

Parle

Others

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Thanks

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