ORGANISATIONAL STUDY AND PROJECT REPORT

Submitted to
RAJAGIRI BUSINESS SCHOOL
In Partial Fulfillment of the Requirements for the Award of

POST GRADUATE DIPLOMA IN MANAGEMENT

(2014-16)

By
ARUN MATHEWS JACOB
Register No: P14238

RAJAGIRI BUSINESS SCHOOL

RAJAGIRI VALLEY
KAKKANAD, KOCHI 682039

DECLARATION

I, ARUN MATHEWS JACOB, hereby declare that the internship report titled A study Opportunity
Analysis of ITC products in Chemist Outlets is a bonafide report of the project work done by me at
SIB, Bangalore during the period from April to May 2015.
This study was undertaken in the partial fulfillment of the requirement of the degree in Post Graduate
Diploma in Management at Rajagiri School of Management, Kakkanad, Cochin.

I also declare that this report has not been submitted to any other university/board for the award of any
degree/diploma.

Place: Kochi
DATE:

ARUN MATHEWS JACOB

Roll No. P14238

Acknowledgement
The gratification and elation of this project will be incomplete without mentioning all the people who
helped me to make it possible, whose guidance and encouragement were valuable to me.

I would like to express my gratitude to the Dr. BENOY JOSEPH. for granting me the opportunity to
do the project.

First of all I thank the God Almighty for his immense grace and blessings at each and every stage of
the organizational internship. I am thankful to my Faculty Guide, Prof. Dr. BEJOY JOHN
THOMAS, faculty, Rajagiri Business School, Kochi, for giving me his valuable guidance to execute
the project as per university requirements.

My sincere thanks to my project guide, MR.A.S.KIRAN, Asst. Manager, for giving me an opportunity
to carry out my project study and for sparing his valuable time for the same. It was a learning
experience to work with him.

I would like to record my deepest sense of gratitude to my friends who encouraged me for making this
project a success.

Above all I would like to thank all respondents who helped me with the valuable information I needed
for the project.

Thanking You,
Arun Mathews Jacob

Contents
Executive summary ......................................................................................................................................... 1
Industry Analysis.............................................................................................................................................. 2
FMCG industry economy ............................................................................................................................ 2
Common FMCG products ............................................................................................................................ 3
Market potentiality of FMCG industry ........................................................................................................ 3
SWOT ANALYSIS OF FMCG INDUSTRY ............................................................................................................. 4
INDUSTRY PROFILE .......................................................................................................................................... 6
COMPANY HISTORY ......................................................................................................................................... 7
COMPANY PROFILE ........................................................................................................................................ 12
Vision, Mission, Core Values and Governance Policies ............................................................................. 12
CORPORATE STRATEGY.............................................................................................................................. 13
CORPORATE GOVERNANCE ....................................................................................................................... 13
CORE PRINCIPLES ....................................................................................................................................... 14
COMPANY STRUCTURE .................................................................................................................................. 15
Marketing Department.............................................................................................................................. 17
Group Companies ...................................................................................................................................... 18
JOINT VENTURE ......................................................................................................................................... 21
ASSOCIATE COMPANIES ............................................................................................................................ 22
COMPANY STAKEHOLDERS ........................................................................................................................ 22
ITC e-CHOUPAL .............................................................................................................................................. 24
ANALYSIS OF THE COMPETITORS OF ITC LTD. IN CHEMIST OUTLETS AND THEIR MARKETING STRATEGIES.27
SCOPE ........................................................................................................................................................ 28
Detailed Study on FMCG goods and services in Chemist outlets .............................................................. 28
OPPORTUNITY ANALYSIS FOR ITC PRODUCTS IN CHEMIST OUTLETS ........................................................... 36
CONCLUSION ............................................................................................................................................. 38
MERCHANDISING ACTIVITY ....................................................................................................................... 39
MERCHANDISING OF ITC PERSONAL CARE PRODUCTS IN CHEMIST OUTLETS ............................................. 40
CONCLUSION ................................................................................................................................................. 41
Bibliography ................................................................................................................................................... 42

Executive summary
The FMCG sector in India has played a vital role in the growth and development of the country Fast
Moving Consumer Goods (FMCG) also known as consumer packaged goods, are those goods which
are sold quickly at relatively low costs. Some examples of FMCG includes the wide variety of
frequently purchased consumer products like soaps, tooth pastes, detergents, shaving products,
packaged food products etc.
ITC is an Indian conglomerate headquartered in Kolkata, West Bengal. Its diversified business
includes five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging,
Agri Business & Information Technology. ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. As part of the summer
internship program various projects done in ITCs FMCG -personnel care sector the project on
opportunity analysis of ITC products in chemist outlets, study of effectiveness of low cost
merchandising activities in chemist outlets.
As a part of study on opportunity analysis of ITC products in chemist outlets 650 chemist outlets was
mapped and visited to collect necessary information regarding the market, competitors. The
information regarding the market was documented for further studies. As the part of project
merchandising activities was carried out in 30 chemist outlets and its effectiveness is to be measured
by analysing the change in sales percentage. As the part of the project a study was also initiated to
understand the influence of chemist channel in consumer buying behaviour of FMCG goods.

Industry Analysis
FMCG industry, also called as CPG (Consumer packaged goods) industry primarily deals with the
production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer
Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular
interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing,
etc. The industry also engaged in operations, supply chain, production and general management. More
and more companies are entering this emerging sector with better products. Global consumer product
groups eyeing inorganic growth opportunities in emerging markets like India. Quite a number of
people of India are dependent on the FMCG products for their day to day operations. Its principal
constituents are Household Care, Personal Care and Food & Beverages.
FMCG Industry is one of the few industries which have showed a positive growth even in the time of
recession. The year 2016-17 is likely to be a very positive year for the FMCG industry as a whole.
Despite rising commodity prices, which will continue to put pressure on performance, we can expect
demand to continue to be robust especially from rural India which is seeing rising income levels and
greater propensity to spend. Some of the merits of this industry are low operational cost, distribution
networks, presence of renowned FMCG companies, and population growth.

FMCG industry economy

FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG manufacturers is
also growing and as a result of this, investment in FMCG industry is also increasing, specifically in
India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1
billion. FMCG industry is regarded as the largest sector in some countries of the world like New
Zealand.
2

Common FMCG products

Some common FMCG product categories include food and dairy products, glassware, paper products,
pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery,
household products, photography, drinks etc. and some of the examples of FMCG products are coffee,
tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc.

Market potentiality of FMCG industry

Some of the merits of FMCG industry, which made this industry as a potential one are low operational
cost, strong distribution networks, and presence of renowned FMCG companies. Population growth is
another factor which is responsible behind the success of this industry.
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
product 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 products 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.

SWOT ANALYSIS OF FMCG INDUSTRY

Strength

Weakness

Low Operational Costs

Lower scope of investing in technology and

Presence of established distribution networks in achieving economies of scale, especially in

both urban and rural areas Presence of well-known small sectors
brands in FMCG sector

Low exports levels

High consumer goods spending

Me-too products, which illegally

mimic the labels of the established brands
These

products

narrow

the

scope

of

FMCG products in rural and semi-urban

market
Opportunities

Threats

Flourishing rural market

Removal of import restrictions resulting in

Rising income levels, i.e. increase in purchasing replacing of domestic brands

power of consumers

Slowdown in rural demand

Large domestic market- a population of over one Tax and regulatory structure
billion
Export potential
High consumer goods spending

THE TOP 10 COMPANIES IN FMCG SECTOR IN INDIA

1. Hindustan Unilever Ltd.
2. ITC Ltd
3. Nestle India
4. GCMMF (AMUL)
5. Procter & Gamble Hygiene and Health Care

6. Dabur India
7. Cadbury India
8. Britannia Industries
9. Asian Paints
10. Marico Industries

INDUSTRY PROFILE

ITC LTD. previously called the Imperial Tobacco Company of India limited is one of India's foremost
private sector companies with a market capitalization US $ 45 billion and a turnover of US $ 7 billion.
ITCs aspiration to create enduring value for the nation and its stakeholders is manifest in its robust
portfolio of traditional and greenfield businesses encompassing Fast Moving Consumer Goods
(FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information
Technology. This diversified presence in the businesses of tomorrow is powered by a strategy to pursue
multiple drivers of growth based on its proven competencies, enterprise strengths and strong synergies
between its businesses. ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively Indianized, 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'.
ITCs Agri-Business is one of Indias largest exporters of agricultural products. ITC is one of the
countrys biggest foreign exchange earners (US $ 3.2 billion in the last decade). The companys echoupal initiative is enabling Indian agriculture significantly enhance its competitiveness by
empowering Indian farmers through the power of the Internet. e- Choupal eliminates wasteful
intermediation and multiple handling. Thereby it significantly reduces transaction costs.
Today ITC Ltd. is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most
Reputable Companies by Forbes magazine and as 'India's Most Admired Company' in a survey
conducted by Fortune India magazine and Hay Group. ITC also features as one of world's largest
sustainable value creator in the consumer goods industry in a study by the Boston Consulting Group.

ITC has been listed among India's Most Valuable Companies by Business Today magazine. The
Company is among India's '10 Most Valuable (Company) Brands', according to 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.

COMPANY HISTORY

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, 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.
Year 1975: In 1975 the Company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into
the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels
business for its potential to earn high levels of foreign exchange, create tourism infrastructure and

generate large scale direct and indirect employment. 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.
ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception,
its shares have been held by ITC, British American Tobacco and various independent shareholders in
Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed
to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major
supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues
Division (TTD). To harness strategic and operational synergies, TTD was merged with the
Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in
November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for
export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and

now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh.
Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal
Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are
now 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 the Company entered
the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! I+-n 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

10

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
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.
In 2010 ITC entered the fairness cream segment by launching product Vivel active fair.
In the year 2013 ENGAGE, Indias first range of couple deodorants
ITC Introduced kwiknic, new range of nicotine chewing gums in 2014.
ITC on February 2015 purchased from Johnson & Johnson (health and pharmaceuticals major) two of
its brands - Savlon, a brand of antiseptic soaps and liquids, and Shower to Shower, a prickly heat
powder.
ITC has entered the Fruit-based juices and beverages market with the launch of B Natural juices in
January 2015. B Natural makes great tasting juices & beverages with the goodness of fruits. The brand
believes that being healthy is a natural state, best served with great taste, fun and enjoyment.

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COMPANY PROFILE
Vision, Mission, Core Values and Governance Policies
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.
Mission
To enhance the wealth generating capability of the enterprise in a globalising environment, delivering
superior and sustainable stakeholder value.
Core Values
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation which
creates values for all its stakeholders.
ITC's Core Values are aimed at developing a customer-focused, high-performance organisation which
creates value for all its stakeholders:
ITC is a board-managed professional company, committed to creating enduring value for the nation
and the shareholder. It has a rich organisational culture rooted in its core values of respect for people
and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate
governance policies and systems.

12

CORPORATE STRATEGY
ITCs corporate strategies are:

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

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

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

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

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

Create distributed leadership within the 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.

CORPORATE GOVERNANCE
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. ITC defines Corporate

13

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:

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.

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.

14

COMPANY STRUCTURE

Flowing from the concept and principles of Corporate Governance adopted by the Company,
leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of
shareholders, carries the responsibility for strategic supervision of the Company. The strategic
management of the Company rests with the Corporate Management Committee comprising the whole
time Directors and members drawn from senior management. The executive management of each
business division is vested with the Divisional Management Committee (DMC), headed by the Chief
Executive. Each DMC is responsible for and totally focused on the management of its assigned
business. This three-tiered interlinked leadership process creates a wholesome balance between the
need for focus and executive freedom, and the need for supervision and control.

15

16

Marketing Department
Marketing Management Structure
ITC follows a well-structured marketing management structure which is as follows:

ITC branch works under the leadership of the branch manager. Branch Manager is required to take up
the responsibilities of all the departments such as CFP, PCP, Foods, Key A/Cs, ESPB and Finance.
CFP, PCP, Foods and ESPB come under the marketing department.
CFP CFP deals with the various cigarettes and safety match products. CFP stands for Convenience
Focus Products.
PCP PCP stands for Personal Care Products. The brands of PCP items include Vivel, Fiama Di
Wills, Essenza Di Wills, Engage, etc.
Foods Foods includes the brands of Aashirvad , Sunfeast, Yippee, etc.. Aashirvad is the market

17

leader in the atta industry and Sunfeast had hold a reasonable market share within a short span of time
period.
ESPB ESPB stands for Education Stationary Product Business and it consist of Classmate and
Paperkraft.
Key Accounts
Key accounts are separate department of employees who looks after the industry top outlets. The
outlets covered by them includes, Margin Free Super Markets, Hyper Markets, etc. Key accounts
department analyses the cash and stock movements of CFP, PCP and Foods and maintains accounts.
The marketing department for all this sections works in the same manner. Under all the departments
there will be one assistant manager then Area manager, area executives and at last sales trainees.
The employees report to their superiors in the following manner:

Sales trainees are new recruiters and they are supposed to report to the area manager.

The area executives should also report to the area manager.

The area managers are required to report to the assistant manager.

Group Companies
Surya Nepal Private Limited (SNPL): is an Indo-Nepal-UK joint venture, which started operations in
Nepal in 1986. SNPL, a subsidiary of ITC Ltd, India, is the largest private sector enterprise in Nepal.
The balance shares are held by dispersed Nepalese shareholders and British American Tobacco, UK.
ITC Info-Tech: ITC InfoTech is a fully owned subsidiary of ITC Ltd. Formed in 2000; ITC InfoTech
has today carved a niche for itself in the arena of global IT services and solutions. The company has
established technology Centers of Excellence (CoE) to deepen capabilities and incubate cutting-edge
technical competencies. A robust outsourcing model, comprehensive suite of differentiated solutions
& services and focus on excellence in execution has provided the company a leadership position in
chosen domains. With over 5600 employees, ITC InfoTech conforms to the highest standards in
process quality, with ISO 27001, ISO 9001 and CMMi Level 3 accreditations.

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LANDBASE: Landbase India Limited, a subsidiary of ITC, owns the prestigious Classic Golf Resort
in the outskirts of Delhi. Classic Golf Resort is the first South Asian signature championship course
designed by Jack Nicklaus. Spread over 300 acres at the foothills of the picturesque Aravalli, it
comprises an 18- hole signature championship course, a nine-hole signature canyon course, a social
club and a sports complex which offers non-golfing sports and recreational activities.

King Maker Marketing INC: Established in 1994, King Maker Marketing Inc. (KMM) is a leading
supplier of premium quality, value-priced cigarettes and roll-your-own (RYO) tobacco. The company's
product lines, which include the Checkers, Hi-Val and Gold Crest, are made of 100% American Blend
tobaccos to ensure a smooth taste and consistent quality. KMM also provides market research services
relating to the US Tobacco and FMCG markets.

TECHNICO PTY LTD: Technico Pty Limited, Australia ('Technico') is an agri-biotechnology

company specializing in rapid seed potato production. Technico has developed the proprietary
TECHNITUBER technology, which involves the use of pathogen-tested tissue culture and processes
that enable the rapid multiplication of seed potatoes from pathogen-tested plants in controlled
environment.

Russell credit Limited: Russell Credit Limited is a 100% subsidiary of ITC Limited. Russell is an
Investment Company with activities primarily confined to making long-term investments in areas of
strategic thrust, namely FMCG, Hotels & Tourism, Paper, Paperboards & Packaging Agri Business
and Information Technology. Russell has one wholly owned subsidiary, Greenacre Holdings Limited,
which is engaged in property infrastructure maintenance.

19

WIMCO Limited: The acquisition of Wimco through Russell Credit Limited, a 100% subsidiary of
ITC Limited on July 1, 2005, aimed to further consolidate the market standing of ITC's Matches
business through synergy benefits of combined portfolio of offerings, improved servicing of proximal
markets and freight optimization. Subsequently Wimco became a direct subsidiary of ITC effective
29th September, 2011 when ITC acquired the entire shareholding of Wimco from Russell Credit.
Srinivasa Resorts Limited: Srinivasa Resorts Limited is a subsidiary of ITC Limited. ITC has 68%
stake in the Company. The Company owns the "ITC Kakatiya" at Hyderabad, which is operated by
ITC Limited. The Company continues to focus on hygiene, safety and environment. The Company's
Hotel, ITC Kakatiya has received various awards /recognitions, significant amongst them are the
prestigious Leadership in Energy and Environment Design (LEED) Platinum certification from the
United States Green Building Council (USGBC), 'Environment Champion Among Large Hotels' by
Federation of Hotel & Restaurant Associations of India, 'Greentech Silver Safety Award' in service
sector for outstanding achievement in safety management by Greentech Foundation, 'Certificate of
Appreciation' by Energy Conservation Mission and The Institution of Engineers (India) and 'HACCP
Certification' for Food Safety System by Det Norske Veritas. The Company's Hotel also has
implemented 'Six Sigma' quality initiatives to further enhance service edge.

Fortune Park Hotels Limited: Fortune Park Hotels Ltd. is a subsidiary of ITC Ltd. Set up in 1995 to
cater to the mid-priced market segment in business and leisure destinations; it is today a professional
Hotel Management company, with forty operating hotels and many more in various stages of
completion.
Bay Islands hotels Limited: Bay Islands Hotels Limited is a 100% subsidiary of ITC Limited. The
Company owns the hotel "Fortune Resort Bay Island" at Port Blair which is licensed to ITC Limited
and is operated by Fortune Park Hotels Limited under an Operating & Marketing Services Agreement.
Gold Flake Corporation Limited: Gold Flake Corporation Limited is wholly owned subsidiary of ITC
Limited. The Company's nature of business is specific to general trading.ITC Filtrona Limited is a

20

50% joint venture of Gold Flake Corporation Limited with Cigarette Components Limited, U.K.

JOINT VENTURE

Maharaja Heritage Resorts Limited: Maharaja Heritage Resorts Limited, where ITC Limited
has an ownership interest of 50% is a joint venture with Jodhana Heritage Resorts Private
Limited. The joint venture company currently operates across India under the
"WelcomHeritage" brand.

WelcomHeritage represents some of the best traditions of heritage hospitality and tourism in
India. It offer's 57 exclusive heritage destinations, ranging from grand palaces to traditional
havelis and magnificent forts; from adventure-filled jungle lodges to tea garden homes and
quiet nature resorts in Rajasthan, Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu &
Kashmir, West Bengal, Karnataka, Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya,
Arunachal Pradesh, Uttar Pradesh, Maharashtra, Kerala, Andhra Pradesh and Pondicherry.

ITC Filtrona: ITC Filtrona Ltd is an equal partnership joint venture between ITC Limited and
Filtrona Plc, U.K., the world leader in filter design and development. The company is located
in Bangalore. ITC Filtrona commenced manufacturing of Acetate filter rods in 1994 and
pioneered the full changeover of the Indian market to acetate filters from viscose filters by
2000. The company has state-of-the-art technology and has the capacity of producing over 13
billion rods per annum. It enjoys over 60% market share and has played a critical role in import
substitution. ITC Filtrona brings in world-class technology to the Indian market in the form of
Acetate filter rods and Specialty filters.

21

ASSOCIATE COMPANIES
Gujarat Hotels Limited: ITC Limited holds 45.78% in Gujarat Hotels Limited. The Company owns
the "WelcomHotel Vadodara" at Vadodara which is operated by ITC Limited under an Operating
Licence Agreement. WelcomHotel Vadodara offers plush accommodation and top-of-the-line
Business, Conference and Leisure facilities tailored to the requirement of the discerning and modern
day business traveller.
International Travel House: International Travel House is one of the largest total travel management
companies in India with a presence in 13 cities. It offers a range of services which include corporate
travel, car rental, destination management services, world class holidays, incentive group travel,
conference management and foreign exchange.

COMPANY STAKEHOLDERS
ITC has adopted a multi-pronged, multi stakeholder strategy for an inclusive approach to building
partnerships in sustainable business practices. It has also put in place institutional mechanisms to
facilitate strong partnerships with communities in its programmes such as Watershed Development,
Social Forestry, Animal Husbandry Services and Womens Empowerment. These initiatives augment
the natural resource base and create sustainable rural livelihoods.

Shareholders
ITC believes that protection and enhancement of shareholder wealth is one of the Companys key
responsibilities. The primary expectations of shareholders remain centred around continued
profitability and growth, effective communications and investor servicing. The Chairman addresses
and provides clarifications to shareholders at least once a year at the Annual General Meeting in the
presence of the Board. The Board encourages open dialogue with all shareholders, including
individuals, corporates and investors.
22

Customers
Enduring and long-term customer relationships form the bedrock of ITCs businesses. Significant
efforts are made to gain insights into customers needs and aspirations and to seek consumer delight
through ITCs high-quality and cost competitive products and services. Most of ITCs Businesses have
various mechanisms to capture the needs and expectations of the customer, such as market surveys,
personal contacts/visits, events, customer satisfaction surveys, joint development and improvement
projects, key account management, multi-level interfaces at dealer-customer-end user, personalised
lifestyle privilege programme, etc. Robust Quality Assurance systems, supported by process
innovations, adoption of green technology, lean management, six sigma and TPM, help to achieve
benchmarks in the quality of products and services that can sustain and enhance customer delight. ITC
also continues to invest significantly in R&D to develop newer products/variants.

Employees

ITC recognises that the creation of a highquality human resource team to drive the businesses of
tomorrow requires focus on providing personal development and growth, a work culture that ensures
high levels of performance, provides world-class learning experiences and a caring & empowering
work environment. Our unique employee value proposition is backed by strong corporate equity
enabled sustained engagement in challenging times. Each business focuses on engaging employees
through communication meetings, mentoring, suggestion schemes, engagement surveys and talent
recognition programmes. ITCs remuneration philosophy recognises performance and meritocracy,
whilst remaining competitive and sustainable. The Company fosters a culture that rewards
performance, continuous learning, collaboration and capacity development across the organisation to
be future- ready and meet head-on the challenges posed by ever changing market realities. To address
employee concerns, ITC units have a structured grievance redressal mechanism to enable all
grievances to be resolved in a just and amicable manner. A grievance redressal committee, comprising
representatives of both unionised employees and managers, has been instituted to address their
concerns. ITCs unswerving belief in the mutuality of interests of key stakeholders, binds all
employees to a shared vision and purpose. ITCs units engage with employee representatives and
unions, thereby strengthening the collaborative spirit across all sections of employees.

23

Farmers
Farmers are an important value chain partner for ITC and we continue to engage with them through a
large gamut of interventions. A primary cause of rural poverty is the vicious cycle of low productivity,
low income and low capacity to invest that continues to plague Indian farmers. Addressing the root
cause of these challenges, ITC co-created the e-Choupal initiative with farmers to provide information
and knowhow on agricultural best practices, transmission of market signals, transparent discovery of
prices, timely and relevant weather information, access to quality inputs, and most importantly,
efficient market access.

ITC e-CHOUPAL

The ITC e- Choupals, managed by trained farmers (sanchalaks), helped the agricultural community
access ready information in their local language. In addition, ITC worked closely with farmers to
enhance agri productivity through demonstration farms and customised extension services, apart from
creating physical infrastructure in the form of integrated rural services hubs. The ITC e-Choupal
initiative has empowered over 4 million farmers in 40,000 villages, raising rural productivity and
incomes. Similarly, ITC works closely with farmers in its Social and Farm Forestry programme to
provide a wide spectrum of extension services that impart knowledge and knowhow to farmers through
dedicated farmer training programmes. In addition, farmers have been benefitted by the extensive

R&D programme for clonal propagation which gives them high yielding quality saplings which are
disease resistant, can grow in shorter time spans and in difficult terrains such as wastelands. This
initiative has created over 64 million person days of employment for farmers in the state of Andhra
Pradesh.

24

Suppliers
The Companys supplier (both national and international) engagements are supported by policies,
processes and best practices that ensure that procurement activity is conducted in an open, transparent
and non-discriminatory manner. Strong processes are in place to identify/develop and qualify vendors
on the basis of supply assurance, innovation quotient, product quality and value for money
considerations. Formal competitive processes are established and documented discussions,
recommendations and decisions underlay all procurement activity. Sole sourcing (to the extent
possible) and retroactive contracting are avoided. Contracts are tested for regulatory compliance and
supplier deliverables cognise for environmental, health and safety legislation. All businesses of the
Company have modern facilities and use state of the art technologies to ensure benchmarked quality
and value. Accordingly, the Company sources specialised production machinery from reputed
international as well as Indian manufacturers across large, medium and small scale sectors. Utility
machinery such as boilers, generator sets, air-conditioning and refrigeration machinery and electrical
& electronic systems are sourced largely from Indian or India based suppliers. Competent Indian
contractors carry out construction and renovation of new manufacturing facilities, hotels, warehouses
& offices. Nearly 90% of raw materials and 70% of spare parts and components have been locally
procured during the year. The Company actively encourages competency development among local
vendors and its vendor base includes numerous medium and small scale enterprises that are close to
its manufacturing locations. Where appropriate, vendors are provided technical support and managerial
inputs to enable them to move in tandem with the Companys business plans.
The Company also supports several vocational training initiatives in areas close to its operations. These
have been effective in empowering youth with requisite skills and increased opportunities for
entrepreneurial development. In addition, the Company has continued to set up sourcing centres in
rural India for several of its product categories, both directly and in collaboration with various State
agencies and NGOs to assist in the creation of sustainable livelihoods.

Community
ITCs agri-businesses have forged a long and enduring partnership with rural communities. Their
initiatives contribute to empowering these communities to conserve and manage their natural
resources, create sustainable on and off-farm livelihoods and improve social infrastructure, especially
in areas where it impacts women and children. ITC has put in place village-level institutional

25

mechanisms which help transform rural communities into vibrant economic organisations and
empower stakeholders with enhanced incomes and livelihoods.

Government
ITC interacts through industry bodies and various other forums with Government / Regulatory
Authorities on aspects relating to public policy frameworks. ITC, in partnership with CII, has
supported the creation of a unique institution The CII-ITC Centre of Excellence for Sustainable
Development to promote thought leadership, recognise sustainability champions and build
awareness as well as capacity on issues related to sustainable development and inclusive growth.

26

ITC LTD. Project

ON

ANALYSIS OF THE COMPETITORS OF ITC LTD. IN

CHEMIST OUTLETS AND THEIR MARKETING
STRATEGIES.

27

SCOPE
The scope of the project was kept to finding the key chemist outlets within the given area of Palakkad
and Thirssur district and to generate a list of major chemist outlets. A total number of 650 chemist
outlets was selected for running the project in the districts of Trissur District and Palakkad The
information regarding the chemist outlets including the name of the shops with address, area and details
of the products sold there , merchandising activities of the competitors and remarks of the customers
were collected to do the study.

The main objectives of the project was to:

Identifying the top chemist outlets and the location.

To identify the key competitors of ITC LTD. who are serving in chemist outlets and to
understand their marketing strategies, merchandising activities, distribution practices, credit
terms and margin schemes.
Introduce the new products of ITC (Shower to Shower and Savlon Products) to the shop owner,
pharmacists, and salesman and to take sales order. Also to assess the scope of ITC products in
these shops and to identify the scope for merchandising activities.
Devise a low cost merchandising activity

As a part of my project I was able to interact with medical shop owners, pharmacists, salesman and
few medical representatives. Understanding perceptions of channel members and consumers regarding
sales promotion activities helped in enhancing the effectiveness of my study. I was able to get a lots
of information suggestions and feedbacks from them.

Detailed Study on FMCG goods and services in Chemist outlets

OTC Products in Chemist Outlets
There are several leading brands in the market who are dominant in the medical outlets like: Hindustan
Unilever, Procter & Gamble, Reckitt Benckiser, Emami Limited, Nestle, Godrej, LOreal, Wipro and
Heinz India Private Limited. Consumer goods sold through chemist outlets vary from cosmetics,
personal care products, and edibles in addition to pharmaceutical drugs.

The pie-chart shown below represents the percentage of various products sold through chemist outlets.

28

Product Types

Drugs

OTC Goods

Other Items(Recharge Coupons,Food items)

Categories of Products sold in Chemist Outlets

HUL, Reckitt Benckiser, P&G being the top competitors of ITC with wide range of their products that
poses an obstruction to tap the market and replace the products with ITC owing to the heritage and
longtime developed trust. While Emami Ltd. And Wipro have several consumer demanded products
like Chanrika, and Santoor which has developed a sync. with Kerala consumer market, recent players
like Dhathri and Indhulekha is highly successful with their personal care products.

Top brands of various poducts consumed from Chemist outlets are:

SOAPS
The leading brands in the market are Dove, Pears, Lux, Dettol, Liril, Rexona, Lifebouy, Nirma,
Palmolive and Hamam. Dove and Pears is high demanded brands of soaps. Also Dettol soaps that are
enquired by many customers over the medical shops. The demand of soap slightly changes over several
regions. Indhulekha is a recent player in the market that has captured some market share with its good
Ad-campaign. Other soaps demanded are Chandrika, Santoor and Medimix.

29

SHAMPOO
The top demanded shampoos are Pantene and Head & Shoulders of P&G. Also Dheedhi shampoo by
Dhatrhi Group has recently replaced P&G products to grab major share in the market with its
successful ad-campaign. There are shops selling 12 bottles of Dheedhi shampoos per month.
Shampoos are seen in bottled form and in sachet packets (70%).
Shampoos and Soaps got good scope in chemist outlets.

DEODORANT
Although Fogg is the market leader of deodorants, it is scarily available in medical outlets here in
Palakkad and Thrissur. The top displayed products in shops are AXE Signature (HUL), Kamasutra
(Raymonds), Dove, Niviea and Spinz (Cavin Care).

FACEWASH AND HANDWASH

The top demanded facewash brands are Himalaya Face Wash, Garneir, and Pears. There are customers
for Everyouth and Chandrika facewash.
Most sold handwash are Pears and Dettol followed by Chandrika and Lifebuoy.

FAIRNESS CREAM
Obviously Fair&Lovely is the market leader followed by Fair &Handsome and Ponds. There are also
other demanded products like Indhulekha, Garnier, etc.

POWDER
The top demanded prickly heat powder is Nycil Prickly Heat Powder (75-80% market share) followed
by Dermi Cool and other brands like Smyle, Shreejee Nehacil. Boro Plus is having less demand.
Top sold ordinary talc are: Cuticura, Ponds, Santoor. Other brands are Eva and Nivea.

CONFECTIONARY
Several confectionaries and candies like Polo, Milky bar (Nestle), Halls, Eladi noticeably placed in the
medical shops. Polo is available in 95% of shops and Milikybar toffee is available in around 60%
shops. Medicated cough candies available are Vicks, Strepsils and Eladi

30

The following table shows the list of the key players and major products in the chemist outlets, who
are visible in the chemist outlets:

Company

Range of Products

1. HUL

Soaps, Shampoo, Deodorants, Pears, Dove, Clinic Plus

Skin Care, Toothpaste, Fairness shampoo, Hamam, Lifebuoy,
Cream, Talcum Powder.
Rexona, Ponds.

2. P&G

Shampoos and Hair Care ,

Fairness Cream , Vicks , Baby
diapers
Anti-Septic Liquid, Cleaning
Liquids, Cough relief candy,
Soap, Hand wash, Prickly heat
powder.
Prickly heat powder and Cool
Talc, Fairness Cream, Balms.
Prickly Heat Powder

3. Reckitt Benckiser

4. Emami Ltd.
6. Manisha Pharma Plast LTD.
(Heinz India LTD.)
5. Himalaya
6. Wipro
7. Dabur India Ltd.

Top Brands in Outlets

Pantene,
Vicks.

Head&

Shoulders,

Dettol, Strepsils, Dermi Cool.

Boro Plus, Fair & Handsome,

Navaratna.
Nycil Prickly Heat Powder

Fairness Cream, Soap, Baby Himalaya Neem Facewash

Products, Drugs.
Soaps, Handwash, Facewash
Chandrika, Santoor
Fairness Cream, Candy, Hair Vatika ,Hajmola , Fem
care, Food supplements

There are also other products like Medimix soap of Cholayil Group, Everyouth Facewash, Kamasutra
Deo.

Distribution and Service Patterns of Competitors:

All major competitors like HUL, P&G, and RB have a very good distribution network and weekly
enquiry system. HUL products obviously good demand and hence they have reduced the credit period
from 15 to 6 days or ready cash at most shops. The delivery is by either van supply or carried to the
shops by DS.

The following table shows the list of companies and distributors, supply and credit terms in Thrissur
and Palakkad.

31

COMPANY

KEY
DISTRIBUTORS

DISTRIBUTION
PATTERN

REMARKS

Distribution is
READY CASH/ 6-15 weak in coastal
DAYS
areas
like
Chavakkad,
Cherai.

HUL

GOOD MORNING
AGENCIES, NOOR
AGENCIES,
PALATHARA
DISTRIBUTORS.

P&G

SHABARI
15 DAYS
AGENCIES, NEW
CHEMIST PHARMA

READY
DAYS.

RECKITT
BENCKISER
(DETTOL)

PREMSON
7-14 Days
AGENCIES, GRACE
, NCP

Usually 7 DAYS Highly

CREDIT, MAX. 30 Demanded.
DAYS

EMAMI LTD.

1 MONTH

1 MONTH

DABUR

SUBDISTRIBUTORS
LINK LINES

1 MONTH

1 MONTH

Sub Distributors
via C&F at
Ernakulam.

NYCIL

GLORIA

15 Days

7 DAYS

HIMALAYA

VIJAY AGENCIES 7 DAYS Min., 30-60 DAYS

,LIN LINES
USUALLY 30 - 60
DAYS.
HARITHA
7 Days
15 DAYS
AGENCIES

NESTLE

Godrej

Dhathri
Indhulekha

Sales Wings

& Sub- Distributors

7-15 DAYS

CREDIT TERMS

15 DAYS

15 DAYS

7-15 DAYS

15 DAYS

CASH/7 Customers are in

good
relation
with P & G team.

Sub Distributors
via C&F.
Mostly
CERLAC and
LACTOGEN.
Maggi-Noodles
and chocolates is
rarely available
in some outlets.
Customers also
depend
on
Wholesalers for
Godrej Products.

Obviously a strong distribution network and good relation with the customer helps the business to
sustain and grow.

32

MERCHANDISING ACTIVITIES
There are several sales promotion activities in deployed in chemist outlets these which helps to also
get an insight into consumer perceptions about various brands. The method employed is merchandising
are:

Displaying of products in cabinets which is decorated by brand stickers.

Sticking of attractive product presenter posters at outlets.
Use of company provided special racks and boxes to enhance the display of products
(Gillette).
Use of attractive packaging and hanging displays for sample pack products.

P&G group Benckiser, Dabur or Himalaya are not concentrated in any forms of merchandising
activities. While Nestle uses the display of their baby food products in customers cabinets
decorated with stickers, P&G uses cabinet displays, company provided designed racks
(Gillettin) for the purpose of merchandising. P & G also uses P & G Shiksha Ad Posters as a
part of merchandising activities

Table shows informations about various merchandising activities executed by brands.

Company Merchandising Offers
for Other Offers
Schemes
Merchandising
Schemes
HUL

P&G

Nestle

Display
Counters,
Sticker
designed
cabinets(e.g.
:Pantene)
,
P&G Shiksha
Display
Display
of
CERLAC,
LACTOGEN
and other baby

Company gives
upto 500/- per
month for display
of
selected
products or 5-7%
discount on bills.

Remarks

Sometimes discount HUL products are most

are given at year demanded so they are not
ending
to
clear giving any kind of offers.
stocks.
P &G is the one company that
offers good display schemes to
outlets are customers have
good impression about the
loyalty programs.

250/- , 350/- or
500/- per month
based on the -

Nestle is not competitor of ITC

with respect to personal care
products.

33

foods
customers
cabinets
decorated
company
stickers.

in potential of the
shop and display.
by

.
Nestle Display costing 350/- per month.

P & G Merchandising on Action

Nestle Display costing 500/- per month.

Glucovita Bolts
34

Various Other Displays in Action

35

OPPORTUNITY ANALYSIS FOR ITC PRODUCTS IN

CHEMIST OUTLETS
There is a good scope for ITC products in chemist outlets. Even though such shops only sell 18-20%
consumer goods this is an ideal chanel to tap and win consumers for ITC products.

Retailers: Shop owners stated that role of word of mouth and television advertising was very important
in providing information inputs to the consumers regarding sales promotion activities while planning
sales promotion strategies. There are several customers who are interested in taking any merchandising
deals with consumer products for cash. But top players like HUL, Reckitt Benkiser, Emami or Dabur
is not promoting any such loyalty programs in these areas so giving them initial schemes or discounts
help to tap the market and to slowly enter into the business.
In fact Mr. Sujeesh (Sreeram Medicals,Peruvambu,Palakkad) told me that he will support ITC products
if more advertising comes into play and with enough enquiry . There are several shop owners who are
interested in getting display schemes and offers.

Potential for Consumer Goods:

Only less than 5% of shops sells ITC products. Most of these shops buys ITC products from
wholesalers. There is a good scope for personal care products like Fairness cream, Shampoo, Talcum
Powders, Soaps, Deodorants, Face Wash and Hand Wash in this market chanel.
For instance there are shops that sold selling 10,000/- worth P&G products per month (Sastha
Medicals, Alwaye).

The table shows the average monthly sales of various products, in two medical shops
(Thrissur&Palakkad):

36

Neethi Medicals,Aluwaye

Halu Medicals,Kodupalli,Palakkad

H&S Shampoo : 3 bottles

Fair and Lovley Fariness Cream : 30 units

Pantene : 3 bottles

Fair and Handsome : 20 units

Dettol ASL 200ml -12 no.

Dove Soap : 5-6 dozen

Dettol ASL 500 6 no.

Pears Soap : 5-6 dozen

Dettol ASL 110-8 no.

Face wash (all ) : 100 units

Dettol ASL 60 -5 no.

Himalaya Face Wash : 15-20 units

Dettol soap 75gm - 10 no.

Dettol Hand Wash : 4units

Nycil powder -12-14 units

Lifebuoy Hand Wash : 4units

Dheedhi shampoo: 10-12 Bottles

Pie Chart showing avrage sales of PCP products

in a chemist outlet

10% 2%

19%

Shampoo
Powder

2%

Fairness Cream
Toilet Soaps

20%
47%

Face Wash
Hand Wash

So, we can conclude that the scope for cosmetics and personal care products in chemist oulets is huge.
People are driven by advertisements and its effectiveness to communicate the value to the customer,
brand endorsements (The advertisement of Dheedhi shampoo with cine artist Ms.Manju Warrier
helped the brand to quickly get consumers attention and choice of shampoo.

37

CONCLUSION
Learnings:

There is a good scope for ITC products with a good regular enquiry and establishing good
relations with the customers.
Medical shop owners are always attracted to good schemes and loyalty programs. A strong
enquiry helps the company to remind the customers about the brand and the products
periodically.
Proper advertising and promotion helps to develop a brand.
Since Shower to Shower got a heritage it still has got good demand as I was able to place more
Suggestions and Ideas

There a still consumers who have used or knows Salvon products and has a good image about
savlon products. This is a great advantage to tap into chemist outlets under this portfolio and
enlarge our services.
Giving a push to the salesmen and owner at chemist outlets and by informing them about the
right usage and relevance of Savlon products will be a good idea. In fact a consumer at an outlet
told me that Savlon products has no stinging effect (though its a USP) so the consumer believes
that it is less effective.
The trend in marketing is Ayurvedic and 100% Safe labelled products. Such a product can be
developed in future and tap Ayurvedic drug outlets also. There are several Ayurvedic drug
shops in Palakkad and Thrissur like Sitaram Pharmacy, Nagarjuna who sells Himalaya and
Dabur products. ITC can slowly tap to such markets by introducing more ayurvedic products
like Vivel ayurvedic soap.
There are several top brands like Complan, Boost, Nestle Cerlac, who are market leaders in
their segments. ITC can eventually develop such products.

Feedback from Chemist outlets:

Shower to shower has demand. Dettol, Pears is the demanded soap.

There was poor enquiry from Savlon team so shops are also not interested in pushing savlon
products.
ITC is known to most shop owners in the name of VIVEL brand name.

38

MERCHANDISING ACTIVITY
The mock-up merchandising activity planned to deploy was display of free sample of Shower to
Shower at the counter near the payment area of the shop: Geetha Medicals, Thrissur. Shelf display by
taking to the owner of the shop, Mr.Sunil. The shelf was placed in the very catchy area of the shop
where the procuct had visibility from the road and from every point of the shop. Also I placed the
sample counter where the customers can use free sample that would help to think of Shower to Shower
brand as a choice.

39

MERCHANDISING OF ITC PERSONAL CARE PRODUCTS IN CHEMIST

OUTLETS

A second project is running that is aimed in merchandising of personal crae products of ITC
Ltd. in 30 chemist outlets where the ITC is already serving. The effectiveness of the
merchandising is to be monitored after two weeks by comparing the sell-out value of the
personal care products from the selected shops. The main brands that are targeted in
deploying merchandising activity are:
Fiama Di Wills
Vivel Range of beauty products
Engage Deodorants.

The techniques employed in merchandising activities are:

Product presenters (in the form of counter top displays)
Hanging displays
Parasite Dispenser units
Shelve displays and
Posters

40

CONCLUSION

FMCG industry is the fastest moving industry in developing countries. Global consumer product
groups eyeing inorganic growth opportunities in emerging markets like India. Quite a number of
people of India are dependent on the FMCG products for their day to day operations. Its principal
constituents are Household Care, Personal Care and Food & Beverages. FMCG Industry is one of the
few industries which have showed a positive growth even in the time of recession. The year 2016-17
is likely to be a very positive year for the FMCG industry as a whole. Despite rising commodity prices,
which will continue to put pressure on performance, we can expect demand to continue to be robust
especially from rural India which is seeing rising income levels and greater propensity to spend. Some
of the merits of this industry are low operational cost, distribution networks, presence of renowned
FMCG companies, and population growth. There is a huge potential for sales of PCP products in Indian
market. So tapping of every channels and improving the distribution practices and consumer loyalty
programs plays huge importance in building the brand and sustaining the business. In fact chemist
outlets is a good channel for sales of FMCG goods in countries like India. About 5-7% FMCG products
are sold as OTC products through chemist outlets. Merchandising activities and loyalty programs plays
huge importance in influencing the purchase behaviour of the consumers. Such programs may directly
or indirectly affect the brand image and brand equity.

41

Bibliography
References:

http://www.itcportal.com/
http://www.itcportal.com/abou
itc/profile/index.aspxhttp://www.moneycontrol.com/india/stockpricequote/cigarettes/itc/ITC

42