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Institute Of Professional Education & Research, Bhopal

A PROJECT REPORT ON
A comparative analysis of ITC Ltd. Bingo snacks V/S FritoLays analysis of retailer !"ying !e#avior

SUBMITTED BY SHAILENDRA KUMAR SEN M.B.A (P.T.) VI SEMESTER JANUARY - 2011 UNDER THE GUIDANCE O PRO . NIKHIL MAHESH!ARI (PRO ESSOR" MBA DEPARTMENT)

SUBMITTED TO BARKATULLAH UNIVERSITY IN PARTIAL UL ILLMENT O MASTERS IN BUSINESS ADMINISTRATION

I#$%&%'%( )* P+)*($$&)#,- E.'/,%&)#,- 0 R($(,+/1 B1)2,-" M,.13, P+,.($1

Institute Of Professional Education & Research, Bhopal

DECLARATION
I hereby declare that my Project Report entitled A comparative analysis of ITC Ltd. Bingo snacks v/s Frito-Lays and analysis of retailer !"ying !e#avior is an authentic work done by me. The Project was undertaken as a part of the course curriculum of MB body earlier. &ate' ((((((((( Place' Bhopal )i!nature )hailendra *umar )en MB +P.T., -I )emester Part Time Pro!ramme of Barkatullah "ni#ersity$ Bhopal. This has not been submitted to any other e%amination

./Pa!e

Institute Of Professional Education & Research, Bhopal

A/4#)5-(.6(7(#%
At the start, I would like to express my sincere gratitude to PRO . N&41&- M,1($15,+& my project guide from Institute of Professional Education & Research, for successful completion of a project in partial fulfillment of Masters in usiness Administration !M A " P#$#% under his a&le guidance to allow me to work on such an interesting su&ject# 'e pro(ided me proper and correct direction for the completion of the Project work# 'is continuous guidance during the course of project helped me in canali)ing my efforts, *uite appropriately#

+ate, Place, hopal

-hailendra .umar -en M A !P#$#% /I -emester

Content
0/Pa!e

Institute Of Professional Education & Research, Bhopal S.No. Title Page No. 5 6 7-27 28-30 31 32-47 48 49 50 51 52

$. '. (. +. .. /. 0. 1.

Introd"ction %ro&ect o!&ective Company %rofile )!servation at *istri!"tor %oint ,esearc# -et#odology Comparative analysis of ITC Bingo V/S Frito-Lays Findings ,ecommendations Concl"sion Anne2"re Bi!liograp#y

I3T,)*4CTI)3

1/Pa!e

Institute Of Professional Education & Research, Bhopal )ince its launch period in March$ .223$ BI456 as a brand has been throu!h a lots of ups and downs. Both Brandin! and )ales and &istribution aspects of marketin! for BI456 ha#e been e%plored and matured to a lar!e e%tent. Thou!h the product itself is considered to be in a !rowth sta!e$ with a market share of 789 in the branded snacks food cate!ory$ it has been successful to a lar!e e%tent in creatin! the re:uired Brand recall for the cate!ory. This project aims to study about IT; Bin!o snacks and its competitor <rito=>ays. The project pro#ides information about the #arious procedures followed by IT; with respect to distribution chain function$ and client mana!ement. ?ith the fast !rowin! retail industry in India$ competition has increased between the major market players. ;ompanies are continually tryin! to en!a!e and construct inno#ate ideas to ser#ice this market. The project includes a mi% of obser#ation$ inter#iew and :uestionnaires with scales. Initially a period of . weeks was dedicated to fieldwork under the !uidance of area e%ecuti#es of IT; limited. n effort was made to understand the #arious ser#icin! procedure$ the typical areas@locality and classes of customers. Re!ular interaction was done with retailers and distributors about the response and flow of product respecti#ely. Throu!h this it makes easy to understand the process of accessin! the competitorAs response in that outlet. 7 week was dedicated to collect information of <rito=>ays re!ardin! their marketin! strate!y$ &istribution 4etwork and 6ther "seful Information from the company officials. This project also includes my obser#ation at retail outlets. I concluded my project with some of my recommendation$ :uestionnaire and additional contribution towards my recommendation.

%,)56CT )B56CTIV6
B/Pa!e

Institute Of Professional Education & Research, Bhopal

To do comparati#e study of Bin!o and lays and analyCe their prices$ sales and method of marketin! and distribution

To check and achie#e #isibility$ a#ailability and :uality distribution across the identified tar!et outlet and the response of retailer about the product.

8/Pa!e

Institute Of Professional Education & Research, Bhopal

C)-%A37 %,)FIL6
IT; is one of IndiaDs foremost pri#ate sector companies with a market capitalisation of nearly ") E 7F billion and a turno#er of o#er ") E B.7 Billion. IT; is rated amon! the ?orldDs Best Bi! ;ompanies$ siaDs D<ab B2D and the ?orldDs Most Reputable ;ompanies by <orbes ma!aCine$ amon! IndiaDs Most Respected ;ompanies by Business ?orld and amon! IndiaDs Most -aluable ;ompanies by Business Today. IT; also ranks amon! IndiaDs top 72 GMost -aluable +;ompany, BrandsD$ in a study conducted by Brand <inance and published by the Hconomic Times. IT; has a di#ersified presence in ;i!arettes$ Iotels$ Paperboards J )pecialty Papers$ Packa!in!$ !ri=Business$ Packa!ed <oods J ;onfectionery$ Information Technolo!y$ Branded pparel$ Personal ;are$ )tationery$ )afety Matches and other <M;5 products. ?hile IT; is an outstandin! market leader in its traditional businesses of ;i!arettes$ Iotels$ Paperboards$ Packa!in! and !ri=H%ports$ it is rapidly !ainin! market share e#en in its nascent businesses of Packa!ed <oods J ;onfectionery$ Branded pparel$ Personal ;are and )tationery. s one of IndiaDs most #aluable and respected corporations$ IT; is widely percei#ed to be dedicatedly nation=oriented. ;hairman K ; &e#eshwar calls this source of inspiration La commitment beyond the marketL. In his own words' LIT; belie#es that its aspiration to create endurin! #alue for the nation pro#ides the moti#e force to sustain !rowin! shareholder #alue. IT; practices this philosophy by not only dri#in! each of its businesses towards international competiti#eness but by also consciously contributin! to enhancin! the competiti#eness of the lar!er #alue chain of which it is a part.L IT;Ds di#ersified status ori!inates from its corporate strate!y aimed at creatin! multiple dri#ers of !rowth anchored on its time=tested core competencies' unmatched distribution reach$ superior brand=buildin! capabilities$ effecti#e supply chain mana!ement and acknowled!ed ser#ice skills in hotelierin!. 6#er time$ the strate!ic forays into new businesses are e%pected to !arner a si!nificant share of these emer!in! hi!h=!rowth markets in India. IT;Ds !ri=Business is one of IndiaDs lar!est e%porters of a!ricultural products. IT; is one of the countryDs bi!!est forei!n e%chan!e earners +") E 0.. billion in the last decade,. The ;ompanyDs De=;houpalD initiati#e is enablin! Indian a!riculture si!nificantly enhance its competiti#eness by empowerin! Indian farmers throu!h the power of the Internet. This transformational strate!y$ which has already become the subject matter of a case study at Iar#ard Business )chool$ is e%pected to pro!ressi#ely create for IT; a hu!e rural distribution infrastructure$ si!nificantly enhancin! the ;ompanyDs marketin! reach. IT;Ds wholly owned Information Technolo!y subsidiary$ IT; InfoTech India >imited$ is a!!ressi#ely pursuin! emer!in! opportunities in pro#idin! end=to=end IT solutions$ includin! e=enabled ser#ices and business process outsourcin!. 3/Pa!e

Institute Of Professional Education & Research, Bhopal IT;Ds production facilities and hotels ha#e won numerous national and international awards for :uality$ producti#ity$ safety and en#ironment mana!ement systems. IT; was the first company in India to #oluntarily seek corporate !o#ernance ratin!. IT; employs o#er .1$222 people at more than 82 locations across India. The ;ompany continuously endea#ors to enhance its wealth !eneratin! capabilities in a !lobalisin! en#ironment to consistently reward more than 0$ F0$222 shareholders$ fulfill the aspirations of its stakeholders and meet societal e%pectations. This o#er=archin! #ision of the company is expressi(ely captured in its corporate positioning statement, 0Enduring /alue# <or the nation. <or the )hareholder.L IT; >td is one of IndiaDs premier pri#ate sector companies with di#ersified presence in businesses such as ;i!arettes$ Iotels$ Paperboards J )pecialty Papers$ Packa!in!$ !ri= Business$ Packa!ed <oods J ;onfectionery$ Information Technolo!y$ Branded pparel$ 5reetin! ;ards$ )afety Matches and other <M;5 products. Presently$ IT; has a market capitalisation of nearly ") E 7B billion and a turno#er of o#er ") E 1.3B billion. It employs o#er .7$222 people at more than 82 locations across India. IT; has been rated amon! the ?orldDs Best Bi! ;ompanies$ siaDs D<ab B2D and the ?orldDs Most Reputable ;ompanies by <orbes ma!aCine$ amon! IndiaDs Most Respected ;ompanies by Business ?orld and amon! IndiaDs Most -aluable ;ompanies by Business Today. IT; was incorporated on u!ust .1$ 7M72 under the name of DImperial Tobacco ;ompany of India >imitedD. IT; had a humble be!innin! and in the initial days it used to operate from a leased office on Radha BaCar >ane$ *olkata. 6n its 78th birthday on u!ust .1$ 7M.8$ IT; purchased the plot of land situated at 03$ ;howrin!hee$ +now renamed N.>. 4ehru Road, *olkata. Two years later companies head:uarter buildin!O D-ir!inia IouseD came on that plot. Pro!ressi#ely the ownership of the company Indianised and the name of the ;ompany were chan!ed to I.T.;. >imited in 7M31. In reco!nition of the ;ompanyDs multi=business portfolio encompassin! a wide ran!e of businesses$ the full stops in the ;ompanyDs name were remo#ed effecti#e )eptember 7F$ .227 and the ;ompany was rechristened as DIT; >imitedD. ITC is involved in follo8ing !"sinesses9 Cigarettes' IT; is the market leader in ci!arettes in India and has a wide ran!e of popular brands such as Insi!nia$ India *in!s$ ;lassic$ 5old <lake$ )ilk ;ut$ 4a#y ;ut$ )cissors$ ;apstan$ Berkeley$ Bristol and <lake in its portfolio. %ackaging' IT;Ds Packa!in! J Printin! Business is the countryDs lar!est con#ertor of paperboard into packa!in!. It was set up in 7M.B as a strate!ic backward inte!ration for IT;Ds ;i!arettes business. It offers a #ariety of #alue=added packa!in! solutions for the food J be#era!e$ personal products$ ci!arette$ li:uor$ cellular phone and IT packa!in! industries. :otels' IT; entered the hotels business in 7M3B with the ac:uisition of a hotel in ;hennai$ which was rechristened Iotel ;hola. Today IT;=?elcom!roup with o#er 32 hotels is one of the foremost hotel chains in India. F/Pa!e

Institute Of Professional Education & Research, Bhopal

%aper!oards' In 7M3M$ IT; entered the Paperboards business by promotin! IT; Bhadrachalam Paperboards. IT;Ds Paperboards business has a manufacturin! capacity of o#er 082$222 tonnes per year and is a market leader in India across all carton=consumin! se!ments. ;reeting< ;ifting Stationery' IT;Ds stationery brands LPaper *raftL J L;lassmateL are widely distributed brands across India. The Paperkraft desi!ner stationery ran!e consists of notepads J multi subject notebooks in hard$ soft co#ers J multiple bindin! formats includin! spirals$ wiros etc. IT;Ds 5reetin! J 5iftin! products include H%pressions ran!e of !reetin! cards and !iftin! products. Safety -atc#es' IT;Ds brands of safety matches include i*no$ Man!aldeep$ -a%>it$ &elite and im. The im is the lar!est sellin! brand of )afety Matches in India. IT; also e%ports premium brands to markets such as Hurope$ frica and the ") . ss Aggar!attis' IT; has launched Man!aldeep brand of !!arbattis with a wide ran!e of fra!rances like Rose$ Nasmine$ Bou:uet$ )andalwood$ Madhur$ &urbar$ Taran!ini$ nushri$ nanth and Mo!ra. Man!aldeep is also bein! e%ported to ") $ " H$ Bahrain$ 4epal$ )in!apore$ Malaysia$ 6man and )outh frica. Lifestyle ,etailing' IT; entered the >ifestyle Retailin! business with the ?ills )port ran!e of international :uality rela%ed wear for men and women in .222. The ?ills >ifestyle chain of e%clusi#e stores later e%panded its ran!e to include ?ills ;lassic formal wear +.22., and ?ills ;lublife e#enin! wear +.220,. In .22.$ IT; entered into the popular se!ment with its menDs wear brand$ Nohn Players. In .22B$ IT; introduced HssenCa &i ?ills$ an e%clusi#e line of presti!e fra!rance products. Food' IT; made its entry into the branded J packa!ed <oods business in u!ust .227 with the launch of the L*itchens of IndiaL brand. In .22. it e%panded into ;onfectionery$ )taples and )nack <oods se!ments. IT;Ds brand in <ood cate!ory includes' *itchens of India$ ashir#aad$ )unfeast$ Mint=6$ ;andyman$ and Bin!oP Agri 62ports' IT;Ds International Business &i#ision +IB&, is the countryDs second lar!est e%porter of a!ri=products. IT; e%ports <eed In!redients +)oyameal,$ <ood !rains +Rice$ ?heat$ and Pulses,$ ;offee J )pices$ Hdible 4uts$ Marine Products$ and Processed <ruits. 6-c#o"pal' The e=;houpal model of IT; has been #ery effecti#e in tacklin! the challen!es posed by the uni:ue features of Indian a!riculture$ characteriCed by fra!mented farms$ weak infrastructure and the in#ol#ement of numerous intermediaries.

M/Pa!e

Institute Of Professional Education & Research, Bhopal

B),+. )* D&+(/%)+
1hairman2s -tatement
ITC's Vision and Strategy

0En(isioning a larger societal purpose !2a commitment &eyond the market2% has always &een a hallmark of I$1# $he 1ompany sees no conflict &etween the twin goals of shareholder (alue enhancement and societal (alue creation# $he challenge lies in fashioning a corporate strategy that ena&les reali)ation of these goals in a mutually reinforcing and synergistic manner0

Y.C. D(8($15,+ (C1,&+7,#)

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A#&- B,&:,R K K,'S B M,%1'+ D K M(1+)%+, P B R,7,#':,7 B,$'.(; S(#B V&:,3+,618,# S H K1,# H G P)5(-A#%1)#3 R'3$

72 / P a ! e

Institute Of Professional Education & Research, Bhopal

A=A,*S
IT; constantly endea#ors to benchmark its products$ ser#ices and processes to !lobal standards. The ;ompanyDs pursuit of e%cellence has earned it national and international honors. IT; is one of the ei!ht Indian companies to fi!ure in <orbes =>ist for .221$ featurin! 122 of Lthe worldDs best bi! companiesL. <orbes has also named IT; amon! siaDsD<ab B2D and the ?orldDs Most Reputable ;ompanies. IT; has se#eral firsts to its credit' IT; is the first from India and amon! the first 72 companies in the world to publish its )ustainability Report in compliance +at the hi!hest Q le#el, with the latest 50 !uidelines of the 4etherlands=based 5lobal Reportin! Initiati#e +5RI,$ a "4=backed$ multistakeholder international initiati#e to de#elop and disseminate !lobally applicable )ustainability Reportin! 5uidelines. ITC is t#e first Indian company and t#e second in t#e 8orld to 8in t#e prestigio"s *evelopment ;ate8ay A8ard. It won the E722$222 ward for the year .22B for its trailblaCin! IT; e=;houpal initiati#e which has achie#ed the scale of a mo#ement in rural India. The &e#elopment 5ateway ward reco!niCes IT;Ds e=;houpal as the most e%emplary contribution in the field of Information and ;ommunication Technolo!ies +I;T, for de#elopment durin! the last 72 years. IT; e=;houpal won the ward for the importance of its contri!"tion to development priorities like poverty red"ction< its scale and replicability$ sustainability and transparency. IT; has won the inau!ural >=orld B"siness A8ard>$ the worldwide business award reco!niCin! companies who ha#e made si!nificant efforts to create sustainable li#elihood opportunities and endurin! wealth in de#elopin! countries. The award has been instituted jointly by t#e 4nited 3ations *evelopment %rogramme ?43*%@< International C#am!er of Commerce ?ICC@ and the :,: %rince of =ales International B"siness Leaders For"m ?IBLF@.IT; is the first ;orporate to recei#e the Ann"al FICCI )"tstanding Vision Corporate Triple Impact A8ard in 'AA0 for its in#aluable contribution capital for the nation. IT; has won the 5olden Peacock wards for D;orporate )ocial Responsibility + sia,D in .223$ the ward for R;)R in Hmer!in! Hconomies .22BA and RH%cellence in ;orporate 5o#ernanceD in the same year. These wards ha#e been instituted by the Institute of &irectors$ 4ew &elhi$ in association with the ?orld ;ouncil for ;orporate 5o#ernance and ;entre for ;orporate 5o#ernance. The ;ompanyDs 5reen >eaf Threshin! plants at ;hirala and naparti in ndhra Pradesh are the first units of their kind in the world to !et I)6 71227=en#ironment mana!ement systems certification. IT;Ds ci!arette factory in *olkata is the first such unit in India to !et I)6 M222 :uality certification and the first amon! ci!arette factories in the world to be awarded the I)6 71227 certification

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Institute Of Professional Education & Research, Bhopal ITC -a"rya in 4ew &elhi is the first #otel in India to get t#e coveted IS) $+AA$ Hn#ironment Mana!ement )ystems certification. IT; <iltrona is the first ci!arette filter company in the world to obtain I)6 71227IT; Infotech finds pride of place amon! a select !roup of )HI ;MM >e#el B companies in the world. IT;Ds 5reen >eaf Threshin! plant in ;hirala is the first in India and amon! the first 72 units in the world to ba! the )ocial ccountability +) F222, certification ITC C#airman 7 C *eves#8ar #as received several #onors o#er the years. 4otable amon! them are' 7ear A8ard 'AA0 'AA/ 'AA/ 'AA. 'AA$ $BB1 $BB/ $BB+ $B1/ ) M@)P5 )ustainability >eadership ward conferred at the International )ustainability >eadership )ymposium$ Surich. Business Person of the Kear from "* Trade J In#estment$ the "* 5o#ernment or!anisation that supports o#erseas businesses in that country. Inducted into the GIall of PrideD by the M0rd Indian )cience ;on!ress Ionored with the TeacherDs >ifetime chie#ement ward Mana!er Hntrepreneur of the Kear from Hrnst J Koun! Retail -isionary of the Kear from Ima!es$ IndiaDs only fashion and retail trade ma!aCine Ionorary <ellowship from the ll India Mana!ement ssociation &istin!uished lumni ward from IIT$ &elhi Marketin! Man of the Kear from JM$ the leadin! marketin! ma!aCine Meridian Iotelier of the Kear

)ome of the other notable reco!nitions are' T#e Stock#olm C#allenge 'AA/ for t#e e-C#o"pal initiative. This award is for usin! Information Tec#nology for t#e economic development of r"ral comm"nities. The ;orporate )ocial Responsibility ;rown ward for ?ater Practices from "4H);6 and ?ater &i!est for its distin!uished work carried out in the water sector in India. IT; also recei#ed the 4ational ward for H%cellence in ?ater Mana!ement .223 in the Dbeyond the fenceD cate!ory from the ;II )ohrabji 5odrej 5reen Business ;entre for its leadership role in implementin! water and watershed mana!ement practices. The watershed pro!ramme also won the Asian CS, A8ard 'AA0 for 6nvironmental 62cellence !i#en by the Asian Instit"te of -anagement. The ward reco!niCes and honors sian companies for outstandin!$ inno#ati#e and world=class projects. The ;ompany also recei#ed the ,y"taro :as#imoto Incentive %riCe 'AA0 for Hn#ironment 7. / P a ! e

Institute Of Professional Education & Research, Bhopal J &e#elopment from the Asia %acific For"m. This ward aims at promotin! information dissemination of !ood practices towards sustainable de#elopment in the sia=Pacific re!ion. The ,eaders> *igest %egas"s A8ard for corporate social responsibility$ reco!niCin! outstandin! work done by socially conscious companies. The Corporate A8ard for Social ,esponsi!ility 'AA1 from The Hner!y and Resources Institute +THRI, in reco!nition of its e%emplary initiati#es in implementin! inte!rated watershed de#elopment pro!rammes across 3 states in India. The company also won the award in .221 for its e=;houpal initiati#e. The ward pro#ides impetus to sustainable de#elopment and encoura!es on!oin! social responsibility processes within the corporate sector. The DHnterprise Business Transformation wardD for sia Pacific + pac,$ instituted by Infosys Technolo!ies and ?harton )chool of the "ni#ersity of Pennsyl#ania for its celebrated e=;houpal initiati#e. The Business Today ward for the Best Mana!ed ;ompany in reco!nition of its outstandin! initiati#es in the consumer products se!ment. The only Indian <M;5 company to ha#e featured in the <orbes .222 list. The <orbes .222 is a comprehensi#e rankin! of the worldDs bi!!est companies$ measured by a composite of sales$ profits$ assets and market #alue. The list spans B7 countries and .3 industries. The 4&T- Profit Business >eadership ward for bein! the Best <ood ;ompany of .223. The ward has been instituted to reco!niCe or!aniCational e%cellence. The ;4B;=T-7FDs International Trade ward .22F for 6utstandin! H%porter of the Kear in the <M;5 J <ood cate!ory. IT; continues its dominance of T#e 6conomic Times> Brand 6D"ity listin! of India>s $AA Biggest F-C; Brands$ with three brands from its stable makin! it to the top five. ;old Flake remains India>s !iggest F-C; !rand in terms of sales. 3avy C"t ranks at 3o. +. ITC>s Scissors !rand ranks at 3o . and is the only new entrant into the top 72. ,esta"rant ma!aCine has chosen B"k#ara at the ITC -a"rya< 3e8 *el#i as the !est Indian resta"rant in t#e 8orld and the !est resta"rant in Asia. B"k#ara has also been adjud!ed one of the top .A resta"rants in t#e 8orld by the >ondon based ma!aCine >T#e ;ood Food ;"ide>. Bukhara is the only So"t# Asian resta"rant to fig"re in t#e list. The LBest )upply ;hain Practices wardL for time=effecti#e and cost=efficient >o!istics Mana!ement in 6r!aniCed Retail to IT;Ds >ifestyle Retailin! Business &i#ision +>RB&,

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Institute Of Professional Education & Research, Bhopal

ITC Limited - S=)T Analysis


Strengt# =eakness )pport"nity T#reats ======= ======= -====== ======= Brand J Mana!ement "nrelated di#ersification. Rural market and e=choupal. 7, Increasin! ta% in ci!arettes ., Iealth haCard

6ur IT; >imited ;ompany Profile is the essential source for top=le#el company data and information. The report e%amines the companyAs key business structure and operations$ history and products$ and pro#ides summary analysis of its key re#enue lines and strate!y. IT; >imited +IT;, is en!a!ed in di#ersified businesses includin! ci!arettes$ hotels$ paperboards and specialty papers$ packa!in!$ a!ri=business$ packa!ed foods and confectionery$ branded apparel$ !reetin! cards and other fast mo#in! consumer !ood products. The company primarily operates in India. It is head:uartered in *olkata$ India and employs about .2$222 people. The company recorded re#enues of I4R7$ MB$2B2.B million +appro%imately E1$1M. million, durin! the fiscal year ended March .223$ an increase of .2..9 o#er .228. .The operatin! profit of the company was I4R0M$ .83 million +appro%imately EM21.0 million, durin! fiscal year .223$ an increase of .2.79 o#er .228. The net profit was I4R.8$ MMM.3 million +appro%imately E8.7.F million, in fiscal year .223$ an increase of .2.F9 o#er .228. Scope of t#e ,eport = Pro#ides all the crucial company information re:uired for business and competitor intelli!ence needs. = &ata is supplemented with details on the companyAs history$ key e%ecuti#es$ business description$ locations and subsidiaries as well as a list of products and ser#ices and the latest a#ailable company statement. ,easons to %"rc#ase = )upport sales acti#ities by understandin! your customersA businesses better. = Tualify prospecti#e partners and suppliers = *eep fully up to date on your competitorsA business structure$ strate!y and prospects = 6btain the most up to date company information a#ailable.

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Institute Of Professional Education & Research, Bhopal

BC; -atri2

:ig#

Star

Business 5rowth Rate

E
In#estment

Co8 G
Lo8 #ig# lo8 Relati#e position +Market share, Market attracti#e and competiti#e stren!th is also important

>i:uidate

*og

Limitation9
7. ssume market !rowth rate. firm may !row the market. .. Ddo!D may be helpin! other product. 0. Ii!h market share@!rowth is not the only success factor. 1. >inka!e between market share and profitability is :uestionable. BC; -atri2 for ITC Limited9

Stars
7. Iotels .. Paper boards 0. Packa!in! 1. !riculture

E
<M;5 = Personal care product J others

Co8s
<M;5 = ;i!arette

*ogs

B4SI36SS -IF )F ITC LT*.


7B / P a ! e

Institute Of Professional Education & Research, Bhopal <M;5 ;i!arettes <ood >ife style retailin! 5reetin!$ 5iftin! and )tationary )afety matches !arbattis

Paperboard and Packa!in! Paperboards and specialty papers Packa!in! !ri=Business !ri=H%port e=choupal >eaf Tobacco Iotels 5roup ;ompanies IT; InfotechO etc.

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Institute Of Professional Education & Research, Bhopal

Fast -oving Cons"mer ;oods ?F-C;@E Products which ha#e a :uick turno#er$ and relati#ely low cost are known as <ast Mo#in! ;onsumer 5oods +<M;5,. <M;5 products are those that !et replaced within a year. H%amples of <M;5 !enerally include a wide ran!e of fre:uently purchased consumer products such as toiletries$ soap$ cosmetics$ tooth cleanin! products$ sha#in! products and deter!ents$ as well as other non=durables such as !lassware$ bulbs$ batteries$ paper products$ and plastic !oods. <M;5 may also include pharmaceuticals$ consumer electronics$ packa!ed food products$ soft drinks$ tissue paper$ and chocolate bars. subset of <M;5s is <ast Mo#in! ;onsumer Hlectronics$ which include inno#ati#e electronic products such as mobile phones$ MP0 players$ di!ital cameras$ 5P) )ystems and >aptops. These are replaced more fre:uently than other electronic products. ?hite !oods in <M;5 refer to household electronic items such as Refri!erators$ T.-s$ Music )ystems$ etc. In .22B$ the Rs. 1F$222=crore <M;5 se!ment was one of the fast !rowin! industries in India. ccordin! to the ; 4ielsen India study$ the industry !rew B.09 in #alue between .221 and .22B. Indian F-C; Sector The Indian <M;5 sector is the fourth lar!est in the economy and has a market siCe of ")E70.7 billion. ?ell=established distribution networks$ as well as intense competition between the or!aniCed and unor!aniCed se!ments are the characteristics of this sector. <M;5 in India has a stron! and competiti#e M4; presence across the entire #alue chain. It has been predicted that the <M;5 market will reach to ")E 00.1 billion in .27B from ") E billion 77.8 in .220. The middle class and the rural se!ments of the Indian population are the most promisin! market for <M;5$ and !i#e brand makers the opportunity to con#ert them to branded products. Most of the product cate!ories like jams$ toothpaste$ skin care$ shampoos$ etc$ in India$ ha#e low per capita consumption as well as low penetration le#el$ but the potential for !rowth is hu!e. The Indian Hconomy is sur!in! ahead by leaps and bounds$ keepin! pace with rapid urbaniCation$ increased literacy le#els$ and risin! per capita income. The bi! firms are !rowin! bi!!er and small=time companies are catchin! up as well. ccordin! to the study conducted by ; 4ielsen$ 8. of the top 722 brands are owned by M4;s$ and the balance by Indian companies. <ifteen companies own these 8. brands$ and .3 of these are owned by Iindustan >e#er. Pepsi is at number three followed by Thums "p. Britannia takes the fifth place$ followed by ;ol!ate +8,$ 4irma +3,$ ;oca=;ola +F, and Parle +M,. These are fi!ures the soft drink and ci!arette companies ha#e always shied away from re#ealin!. Personal care$ ci!arettes$ and soft drinks are the three bi!!est cate!ories in <M;5. Between them$ they account for 0B of the top 722 brands.

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Institute Of Professional Education & Research, Bhopal 62#i!it I T:6 T)% $A C)-%A3I6S I3 F-C; S6CT), ). 46. 7. .. 0. 1. B. 8. 3. F. M. 72. ;ompanies Iindustan "nile#er >td. IT; +Indian Tobacco ;ompany, 4estlU India 5;MM< + M">, &abur India sian Paints +India, ;adbury India Britannia Industries Procter J 5amble Marico Industries

The companies mentioned in 62#i!it I$ are the leaders in their respecti#e sectors. The personal care cate!ory has the lar!est number of brands$ i.e.$ .7$ inclusi#e of >u%$ >ifebuoy$ <air and >o#ely$ -icks$ and Ponds. There are 77 I>> brands in the .7$ a!!re!atin! Rs. 0$3MM crore or B19 of the personal care cate!ory. ;i!arettes account for 739 of the top 722 <M;5 sales$ and just below the personal care cate!ory. IT; alone accounts for 829 #olume market share and 329 by #alue of all filter ci!arettes in India. The foods cate!ory in <M;5 is !ainin! popularity with a swin! of launches by I>>$ IT;$ 5odrej$ and others. This cate!ory has 7F major brands$ a!!re!atin! Rs. 1$803 crore. 4estle and mul slu! it out in the powders se!ment. The food cate!ory has also seen inno#ations like softies in ice creams$ chapattis by I>>$ ready to eat rice by I>> and piCCas by both 5;MM< and 5odrej Pillsbury. This cate!ory seems to ha#e faster de#elopment than the sta!natin! personal care cate!ory. mul$ IndiaDs lar!est foods company has a !ood presence in the food cate!ory with its ice=creams$ curd$ milk$ butter$ cheese$ and so on. Britannia also ranks in the top 722 <M;5 brands$ dominates the biscuits cate!ory and has launched a series of products at #arious prices. In the household care cate!ory +like mos:uito repellents,$ 5odrej and Reckitt are two players. 5oodkni!ht from 5odrej is worth abo#e Rs .73 crore$ followed by ReckittDs Mortein at Rs 71M crore. )"tlook There is a hu!e !rowth potential for all the <M;5 companies as the per capita consumption of almost all products in the country is amon!st the lowest in the world. !ain the demand or prospect could be increased further if these companies can chan!e the consumerDs mindset and offer new !eneration products. Harlier$ Indian consumers were usin! non=branded apparel$ but today$ clothes of different brands are a#ailable and the same consumers are willin! to pay more for branded :uality clothes. ItDs the :uality$ promotion and inno#ation of products$ which can dri#e many sectors. 7F / P a ! e

Institute Of Professional Education & Research, Bhopal Cigarettes9 -

IT; is the market leader in ci!arettes in India. ?ith its wide ran!e of in#aluable brands$ it has a leadership position in e#ery se!ment of the market. ItDs hi!hly popular portfolio of brands includes Insi!nia$ India *in!s$ ;lassic$ 5old <lake$ )ilk ;ut$ 4a#y ;ut$ )cissors$ ;apstan$ Berkeley$ Bristol and <lake. The ;ompany has been able to build on its leadership position because of its sin!le minded focus on #alue creation for the consumer throu!h si!nificant in#estments in product desi!n$ inno#ation$ manufacturin! technolo!y$ :uality$ marketin! and distribution. ll initiati#es are therefore worked upon with the intent to fortify market standin! in the lon! term. This in turns aids in desi!nin! products$ which are contemporary and rele#ant to the chan!in! attitudes and e#ol#in! socio economic profile of the country. This strate!ic focus on the consumer has paid IT; handsome di#idends. IT;Ds pursuit of international competiti#eness is reflected in its initiati#es in the o#erseas markets. In the e%tremely competiti#e ") market$ IT; offers hi!h=:uality$ #alue=priced ci!arettes and Roll=your=own solutions. In ?est sia$ IT; has become a key player in the 5;; markets throu!h !rowin! #olumes of its brands. IT;Ds ci!arettes are produced in its state=of=the=art factories at Ben!aluru$ Mun!er$ )aharanpur and *olkata. These factories are known for their hi!h le#els of :uality$ contemporary technolo!y and work en#ironment.

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Institute Of Professional Education & Research, Bhopal

Food9
The launch of BingoH In March .223 marked IT;Ds foray into the fast !rowin! branded snack foods se!ment. Bin!oAs portfolio includes an array of products in both %otato C#ips J Finger Snacks se!ment. Bin!oP Is positioned as a youthful and inno#ati#e snack$ offerin! the consumers with choice in terms of both formats and fla#ors. IT; entered the branded tta market with the launch of ashir#aad tta in Naipur and ;handi!arh on .8th May .22.. The product is now a#ailable all o#er India. R ashir#aadA promises the Indian housewife the joy of pro#idin! her family with the most deli!htful home=made rotis$ made from the finest :uality atta. IT; uses the sourcin! stren!th of its e=;houpals to buy wheat directly from the farmers to deli#er happiness to the Indian consumer V *hushiyaan ;hun ;hun ke +Iappiness handpicked,. R ashir#aadA is made from finest :uality wheat that IT; has the uni:ue capability to source throu!h its e=;houpal network. Premium :uality atta$ made from 7229 MP DsharbatiD wheat is also a#ailable as ashir#aad )elect tta . The wheat for ashir#aad MP Blend ;hakki tta comes from the plush$ fertile soil of Madhya Pradesh and then blended usin! the traditional Dchakki=!rindin!D method to !i#e the superior$ discernin! taste. IT; <oods also aims to deli!ht the consumer throu!h superior and inno#ati#e packa!in!. The ashir#aad packa!e is PHT Poly$ with the desi!n showcasin! the farmin! process undertaken in the rural heartland of India in the form of a Madhubani paintin!. R ashir#aad )electA tta +B k! pack, was awarded the ?orld )tar ward for H%cellence in Packa!in! in the ;onsumer Pack ;ate!ory. This is one of the most presti!ious awards in the world for Packa!in!. ashir#aad )alt IT; launched branded packa!ed salt under the brand name R ashir#aad )altA on .8th March$ .220. The product is a#ailable in !rocery stores around the country. IT; forayed into the branded spices market with the launch of ashir#aad )pices in 4orthern India in May .22B. The offerin! currently consists of ;hilli$ Turmeric and ;oriander powder in )*"s of B2!$ 722!$ .22! and B22! each. The company entered or!anic foods retailin! in Nuly .223 with the launch of ashir#aad )elect 6r!anic )pices. ashir#aad )elect will initially offer chilli$

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Institute Of Professional Education & Research, Bhopal turmeric and coriander powders. The or!anic spices are a#ailable in all major metros across all modern trade outlets and food retail chains in packs of 722 !rams. ashir#aad Pickle Mirch Powder ashir#aad added a uni:ue #ariant to its )pices ran!e by introducin! Pickle Mirch Powder. Hnsurin! perfect balance in color and taste$ the Pickle Mirch Powder is one of its kinds in India. This ran!e$ launched in March D28$ includes 5ulab Namun$ Ra#a Idli$ Rice Idli$ Rice &osa$ *haman &hokla$ Rasmalai and -ada mi%. ashir#aad Instant Mi%es promise the discernin! Indian homemaker perfect tastin! dishes$ consistently. The Ra#a idli Mi% is a#ailable in B22! pack and rests of the products are a#ailable in .22! packs. The latest entrants to the portfolio include Rasmalai and -ada mi%es. Rasmalai mi% is a#ailable in 7.8! pack and -ada mi% in .22! pack.

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Institute Of Professional Education & Research, Bhopal

Agri3 usiness, 3
ITC>s Agri B"siness *ivision is the countryDs second lar!est e%porter of agriprod"cts with e%ports of o#er ,s. $AAA Crores ?,s. $A !illion@. Its domestic sales of a!ri= products are in e%cess of Rs. 7B22 ;rores +Rs. 7B billion,. It currently focuses on e%ports of' I <eed In!redients = )oya meal I <ood !rains = Rice +Basmati J 4on Basmati,$ ?heat$ Pulses I Hdible 4uts = )esame )eeds$ IP) 5roundnuts$ ;astor oil I Marine Products = )hrimps and Prawns I Processed <ruits = <ruit Purees@;oncentrates$ IT<@<roCen <ruits$ 6r!anic <ruit Products$ <resh <ruits I ;offee J )pices = ;offee$ Black Pepper$ ;hilly$ Turmeric$ 5in!er$ ;elery and other )eed )pices lthou!h one of the relati#ely youn!er business di#isions of IT;$ it has$ in a short span established itself as a first=choice supply chain partner of se#eral leadin! international customers. Its major customers include ;ar!ill$ Marubeni$ Toepfer$ amon! others$ who source a!riculture commodities and food products from India. Its customer relationship mana!ement has enabled it to achie#e a #ery hi!h reputation for :uality$ reliability and #alue added ser#ices. IT;Ds website$ www.itcibd.com is a trend settin! customer care inter#ention in commodity tradin!. IT;Ds uni:ue stren!th in this business is the e%tensi#e backward linka!es it has established with the farmers. This networkin! with the farmin! community has enabled IT; to build a hi!hly cost effecti#e procurement system. IT; has made si!nificant in#estments in web=enablin! the Indian farmer. ;hristened De=;houpalD$ IT;Ds web plan for the farmer centers around pro#idin! Internet kiosks in #illa!es. <armers use this technolo!y infrastructure to access on=line information from IT;Ds farmer=friendly website. &ata accessed by the farmers relate to the weather$ crop conditions$ best practices in farmin!$ rulin! international prices and a host of other rele#ant information. ;urrently$ the De=;houpalD website =pro#ides information to farmers across the nine )tates of Madhya Pradesh$ Iaryana$ "ttaranchal$ "ttar

Pradesh$ Rajasthan$ *arnataka$ Maharashtra$ ndhra Pradesh and *erala. IT; plans to e%tend the De=;houpalD to co#er 72 million farmers across 722$222 #illa!es co#erin! 7B Indian states.

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Institute Of Professional Education & Research, Bhopal Information Tec#nology IT; InfoTech offers IT ser#ices and solutions across fi#e key industry #erticals' Bankin!$

<inancial )er#ices J Insurance +B<)I,$ ;onsumer Packa!ed 5oods +;P5, J IT; Infotech$ a !lobal IT ser#ices company$ is today one of IndiaAs fastest !rowin! IT ser#ices and solutions pro#iders. Based out of a pictures:ue 0B acre campus in the heart of Ban!alore city$ IT; Infotech$ throu!h wholly=owned subsidiaries in the "* and ")$ pro#ides outsourced IT ser#ices and solutions to leadin! !lobal customers. Retail$ Manufacturin! J Hn!ineerin! )er#ices$ Tra#el$ Iospitality J Transportation and Media J Hntertainment. IT; Infotech enjoys the rare ad#anta!e of ha#in! a practitionerAs e%pertise in some of these industry #erticals$ which has in part been be:ueathed by parent IT; >imited$ which runs market=leadin! businesses in these #erticals. ?hile an enterprise ran!e of technolo!y capabilities and world class :uality processes form the foundation of IT; InfotechAs cuttin!=ed!e IT ser#ice stren!th$ a sharp domain focus ensures that IT and ITe) deli#ery always places business needs ahead of technolo!y. IT; Infotech has car#ed a niche for itself as a leadin! !lobal IT solutions pro#ider by addressin! customer pain points throu!h inno#ati#e solutions. IT; InfotechAs leadership capabilities also accrue from business critical en!a!ements with leadin! or!aniCations across fi#e continents$ and a ser#ice deli#ery footprint spannin! o#er 712 countries.

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Institute Of Professional Education & Research, Bhopal

:otels9 IT; >imited entered the hotels business in 7M3B with the ac:uisition of a hotel in ;hennai$ which was rechristened Iotel ;hola. )ince then the IT;=?elcome !roup brand has become synonymous with Indian hospitality. Today amon!st IndiaDs finest and fastest !rowin! hotel chains$ it consists of o#er M2 hotels across 33 destinations in India. These include super delu%e and fi#e star hotels$ herita!e palaces$ ha#elis and resorts and full ser#ice bud!et hotels.

The 11. rooms ITC -a"rya at 4ew &elhi is not only amon!st the leadin! business hotel in the country$ but is in a class by itself. ;omplete with the >ITC )ne>$ the hotel has played host to a !ala%y of world di!nitaries$ includin! Bill Clinton and Bill ;ates. In fact$ e#en as he was lea#in! the ?hite Iouse. The former ") President nostal!ically recalled the memories of a fa!"lo"s Indian meal he and his family had at the B"k#ara restaurant in the hotel. B"k#ara to .223. The 0F8=room IT; Maratha$ opened in <ebruary .227$ is percei#ed as amon!st the leadin! and the finest properties in Mumbai$ desi!ned in a !randiose classic style$ the hotel pays tribute to MumbaiDs colonial roots and the spirit of the 5reat Marathas#

In keepin! with its plan to ha#e a presence in e#ery major business destination in India$ IT;=?elcom!roup un#eiled one of siaDs finest business resort$ the .0F=room ITC Sonar in *olkata on &ecember 07$ .22.. nother landmark hotel = the IT; 5rand ;entral in Parel$ Mumbai was formally inau!urated in Nanuary .22B. This fi#e star delu%e property with .1. suites and rooms offers international standards of ser#ice$ state of the art amenities and culinary e%cellence.

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Institute Of Professional Education & Research, Bhopal ITC -"g#al at !ra$ a proud recipient of siaDs first !a *han ward for rchitecture$ is an outstandin! resort hotel$ la#ishly spreadin! across 0B acres of beautifully landscaped Mu!hal !ardens.

IT;=?elcom!roup also pioneered a holistic concept of Lbranded accommodationL in the hospitality industry. It was the first to launch the powerful idea of a >:otel 8it#in a :otel> by se!mentin! and brandin! the hotel ser#ices. It created the e%clusi#e >ITC )ne>< >T#e To8ers> and t#e >62ec"tive Cl"!> each caterin! to the needs of the !lobal business tra#eler with unmatched :uality and a ran!e of ser#ices. In .223$ IT;=?elcom!roup entered a new phase in its collaboration with )tarwood Iotels J Resorts. IT;=?elcom!roup now has an e%clusi#e tie=up with )tarwood in brin!in! its premium brand$ the JL"2"ry CollectionK< to India. The se#en hotels which are part of this collection are' IT; Maurya in &elhi$ IT; Maratha in Mumbai$ IT; )onar in *olkata$ IT; 5rand ;entral in Mumbai$ IT; ?indsor in Ben!aluru$ IT; *akatiya in Iyderabad and IT; Mu!hal in !ra. The a!reement also includes the rebrandin! of ?elcomIotel 4ew &elhi as a )heraton$ while the ;hola and the Park in ;hennai$ and the Rajputana in Naipur retain their )heraton connections. IT;=?elcom!roup was also the first to brand its cuisine. The B"k#ara< the *aks#in and the *"m %"k#t are today powerful cuisine brands$ which deli!ht connoisseurs in restaurants in se#eral IT;= ?elcom!roup hotels. 6thers included &ublin$ ?est -iew and the Pan sian. Fort"ne #otels are a part of the well thou!ht=out !rowth strate!y for mid=le#el business and leisure tra#elers under the IT;=?elcom!roup umbrella$ offerin! full ser#ice$ first class properties without compromisin! on :uality. <ortune Iotels ha#e a stron! presence at Ieadband$ Thiru#ananthapuram$ ;alicut$ &arjeelin!$ Namshedpur$ -api$ Iyderabad$ 5ur!aon$ Indore$ 6otacamund$ Madurai$ Nodhpur$ -ijayawada$ ;hennai$ -isakhapatnam$ Mahabalipuram$ *olkata$ Ben!aluru$ 4a#i Mumbai$ Tirupati and Port Blair$ while se#eral more hotels are e%pected to be commissioned soon in other key locations in India .B / P a ! e

Institute Of Professional Education & Research, Bhopal

%ersonal care prod"ct9 IT; launched an e%clusi#e line of presti!e fine fra!rances under the 6ssenCa *i =ills brand in mid .22B. The 6ssenCa *i =ills ran!e of perfumes reinforces IT;As tradition of brin!in! world=class products to Indian consumers to enrich the :uality of their li#es. 6ssenCa *i =ills embodies a fine balance between the classic and the contemporary. The brand personifies e%clusi#ity$ innate style$ sophistication and ma!netism. The 6ssenCa *i =ills line has been de#eloped with the assistance of <rench perfumery e%perts to !i#e it the mysti:ue and premium lu%ury :uality that !o with the best of international brands. The latest addition to the 6ssenCa *i =ills portfolio is the :ua ran!e for men ?AD"a :ome@ that offers a distincti#e and fresh a:uatic fra!rance. The :ua ran!e includes an fter=)ha#e >otion$ a &eodorant$ a Iair J Body )hampoo and a Bathin! Bar. In )eptember .223$ IT; launched Fiama *i =ills$ a premium ran!e of personal care products comprisin! s#ampoos< conditioner< s#o8er gels and soap. This premium ran!e is a uni:ue blend of nat"re and science that promises gentle effective care. It is an outcome of 1 years of e%tensi#e research and de#elopment by e%perts at IT; RJ& ;entre. The packa!in! for all Fiama *i =ills products has been de#eloped by a leadin! Huropean desi!n firm and the fra!rances ha#e been de#eloped by an international fra!rance house in <rance.

Fiama *i =ills S#ampoos de#eloped in collaboration with ;osmetech >abs Inc.$ ") $ offers a ran!e of four #ariants. Hach #ariant is desi!ned to deli#er a specific hair benefit to the consumer The <iama &i ?ills ran!e of soaps has been launched under the sub = brand Skin Sense. The first #ariant to be introduced in this ran!e is Soft ;reen. This is a !entle carin! soap$ which helps enhance retention of skin proteins makin! skin look beautiful and youthful. <ollowin! the successful launch of <iama &i ?ills )hampoos and )hower 5els$ IT; has now introduced Fiama *i =ills Soaps$ which offer the benefit of !entle and effecti#e care by combinin! elements of nature and science.

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Institute Of Professional Education & Research, Bhopal ),;A3ILATI)3 L6V6L A3* ITS ACTIVITI6S9 Corporate office "ndertakes t#e follo8ing activities9 a, Plannin! of business !rowth +4ew stores$ re!ions$ formats, b, )ettin! of policies in #arious functions. c, ;ontrollin!$ monitorin! and ad#isin! on operational acti#ities. d, udit of operational acti#ities. e, Interaction with national@ multinational <M;5 companies. f, I.T. systems de#elopment. !, <inancial consolidation. h, ;apital H%penditure sanction and monitorin!. i, <i%ed sset accountin!.

,egional )ffices "ndertake t#e follo8ing activities9 a, Plannin! b, Purchasin! c, ;reditors Mana!ement. d, )ales consolidation and analysis e, <inancial ccounts. f, I.T. administration. !, I.R administration. h, ;ustomer care

=are#o"ses "ndertake t#e follo8ing9 a, Recei#in! of materials. b, )tockin! and in#entory mana!ement. c, Repackin!. d, llocatin! of !oods to stores. e, &istribution.

Stores9 T#e activities #ere are as follo8s9 a, Recei#in! from ?arehouse@&irect )upply -endors. b, )tackin! and displayin! of !oods c, )ellin! d, Reconcilin! and bankin! of collections. e, Indentin! for !oods re:uirements

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Institute Of Professional Education & Research, Bhopal

)BS6,VATI)3 AT *IST,IB4TI)3 %)I3T


=#olesale *ealer )perations IT; has #arious distributors as per area@re!ions who follow the chain of transferrin! the products to their clients. These distributors are independent proprietors@ partners who are the mediators between the company and the customer. part from the basic relation of a mediator$ the distributor plays a #ery important role as it passes consistent raw information as to which product is performin! in the market. <ollowin! are the important functions followed by distributors' )rder taking process The order takin! process starts from the customer point from where a Purchase 6rder +P.6., is sent directly to the distributor of IT; #ia salesman. <urther$ the P.6. is manually transferred into an 6rder Bookin! Report by the accounts head$ further itDs classified as per the a#ailability of the products and then >oad )lip is prepared. The >oad slip is send to the stores head that dispatches the products as per specification and order.

*elivery process The &eli#ery process starts after the !oods are been loaded in trucks and are ready to mo#e towards clientsD stores. 6ne copy of recei#ed P.6. is taken alon! with ori!inal and duplicate copies for reference. t the clients store the foods need to be arran!ed as per the P.6.$ which is inspected by an official with the help of the 5ood Inspection 4ote +5.I.4.,. <urther after the inspection the official sin!s on the duplicate copy and pro#ides a 5oods Receipt 4ote +5.R.4,$ which is filed for reference and proof.

=are#o"sing

Inventory management9

?arehousin! and in#entory mana!ement is the prime duty of a distributor. The distributor has to maintain all the in#entories monthlyO he does this by followin! a system of Hstimated ;onsumer &emand +H;&,. Hstimatin! a#era!e three months sale of #arious products indi#idually and thin keepin! additional stock of 3 days per product de#elop this process. ?arehousin! id done #ery systematically as per the direction mentioned on the product bo% i.e.' =

a, )tackin! )tackin! includes the ma%imum capacity at which the product could be kept on one another i.e. a limited amount of bo%es@cases only can be kept #ertically o#er another. .F / P a ! e

Institute Of Professional Education & Research, Bhopal

b, Iandlin! Iandlin! includes the ease of usin! the product. H%ample' 5lass products ha#e to be used #ery carefully to a#oid dama!es. ?hereas non=breakable products could be used with more ease as chance of dama!es are low. c, <loorin! <loorin! includes the type stora!e re:uired for particular products. H%ample' products like atta$ salt etc re:uire a wooden or carpeted floorin! to a#oid it catchin! moisture. d, )torin! )torin! includes the product placement in warehouse. H%ample' if products like atta$ salt$ biscuits etc are kept ne%t to products like a!arbatti$ soaps$ perfumes etc it may catch the fra!rance of those products leadin! to unhealthy outcomes. ;are is taken to control Pest and other mishaps in the warehouse and proper #entilation and hy!iene system is desire for better stora!e. ;ompany ;ash ?holesale &ealer )ystem >oadin! Bookin! the 6rder &eli#ery Process ;ash Print out >oad slip &eli#ery person Retail outlet ;ash or ;redit Stock rotation / damaged policy )tock rotation is the blood of this business. If there is no re!ular stock rotation than the company @ product cannot sur#i#e for lon! in the market. )tock rotation is followed by the <I<6 method i.e. <irst=in <irst=out. The products that come in first in the store those are the ones that !o out first. This .M / P a ! e 6rderin! Process Purchase 6rder from ;lient #ia salesman

Institute Of Professional Education & Research, Bhopal has to be done to a#oid wasta!e of products and to ha#e a control o#er the Lbest before useL policy and e%piry. The company accepts manufacturin! defects and dama!ed !oods. These dama!ed !oods are returned to the company after the inspection done by the distributor. Cas#/Credit -anagement 6ne of the most important decisions a distributor has to take is about cash @credit mana!ement. ;ash mana!ement includes effecti#ely mana!in! workin! capital. The use of ?orkin! is the hi!hest in distribution when it comes to any form of business. There is hi!h amount of money blocked in workin! capital throu!hout the year$ which is #ery risky. The basic way at which this distributor mana!ements the cash is by re!ularly followin! up accounts recei#able. ;redit mana!ement is the sole of this business as all clients @ customers demand for lon!er credit days as e#en there workin! capital is blocked till the end users do not purchase the !oods. ;redit policy is desi!ned as per the trade of terms policy of IT;. This policy is desi!ned cate!ories wise.

,6S6A,C: -6T:)*)L);7
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Institute Of Professional Education & Research, Bhopal

It includes the response of Bin!o )nacks from retailers and customer at retail outlets and in Modern trade with respect to it competitors. It also includes the responses of competitor <rito=>ays from #arious sources. =ork at retail o"tlets9 7, To check the a#ailability of products. ., To check #isibility of products. 0, )?6T analysis of products. 1, To check how old the product is. B, To trace the complaints re!ardin! the product. 8, Identifyin! what would the factor to increase sale. *ata collection tec#niD"e' = 7, ., 0, 1, B, Inter#iew with retailers$ customers$ distributors$ and company officials of IT;. Inter#iew with distributors and company officials of <rito=>ays. Tuestionnaire. 6bser#ation. )econdary data from$ newspaper$ Internet and te%tbooks.

,esearc# instr"ment9 Research approach direct contact with people. Sampling %lan9 )ample siCe )ample se!mentation )amplin! Method )amplin! rea B2 prospectus 6n the basis of )hop name$ location J !ender. )imple Random Bhopal+M.P,

C)-%6,ATIV6 A3AL7SIS )F ITC BI3;) V/S F,IT)-LA7S


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Institute Of Professional Education & Research, Bhopal

ITC BI3;) S3ACMS%,)*4CT %,)FIL6 CHIPS PRHMI"M ) >TH&

N"I;K T6M T6 *HT;I"P

RH& ;II>>I BIN>I

)PI;K M ) > RHMIW

I4THR4 TI64 > ;RH M J 64I64

BRIDGES MAD ANGLE


0. / P a ! e

Institute Of Professional Education & Research, Bhopal

;II>>I &I M *

T6M T6 MI);IIH<

HATKE-JHATKE
<"4*K M ) > T6M T6 T?I)T

T6*:6--6*:6

AB)4T BI3;)H The launch of Bin!oP 6n 71th March .223 marked IT;Ds foray into the fast !rowin! branded snack foods se!ment. Bin!oAs portfolio includes an array of products in both Potato ;hips J <in!er )nacks se!ment. Bin!oP is positioned as a youthful and inno#ati#e snack$ offerin! the consumers with choice in terms of both formats and fla#ors. The launch is symbolic of IT; <oodsD distinct approach of introducin! inno#ati#e and differentiated products in a lar!ely undifferentiated market place.Bin!oAs launch was strate!ically timed around the ?orld ;up.The idea was to !et the consumer to take that first bite.The company has positioned this brand as a fun brand tar!etin! at the youth.

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Institute Of Professional Education & Research, Bhopal

B,A3* I*63TIT7
brand which is for the whole country by pro#idin! the customers with tastes +fla#ors, from all around India. Bin!o identifies itself as a brand which is youthful$ fun and colorful. The uni:ue shapes in which it comes$ which makes it easily reco!niCable amon!st the consumers.

=:ATKS I3 T:6 3A-6 BI3;)H

S4,%,IS6 6L6-63T AB)4T BI3;)


Mad n!les is not made of potato$ itDs a uni:ue concoction of rice meal$ !ram meal and corn meal. Bin!o has a uni:ue musical sound that is lo#ed by e#eryone. It is one of the properties that is remembered by e#eryone and it is used to recall the brand by e#ery a!e !roup.

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Institute Of Professional Education & Research, Bhopal

Frito lays

Company profile of Frito-Lays


<rito=>ay is the worldDs lar!est manufacturer and distributor of snack foods and is a wholly owned subsidiary of Pepsi;o. )ince its entry in India in 7MFM$ Pepsi;oAs snack foods di#ision <rito >ay India +<>I, has become the clear leader in branded salty snack se!ment with popular brands like layAs$ *urkure$ "ncle ;hipps ;heetos and >ehar 4amkeens. <rito >ay India produces its snacks at its state=of=the=art plants in ;hanno +Punjab,$ Pune +Maharashtra, and )ankrail +?est Ben!al,. The company operates o#er 12 distribution centers that ser#e more than .$B22 acti#e stockists$ reachin! appro%imately 7 million retail outlets that in turn make the product a#ailable at an arms len!th. >ast year in 6ctober .22M <rito >ay India launched IndiaAs first of its kind lar!e scale ten month lon! consumer en!a!ement pro!ram 5i#e "s Kour &elicious <la#or +5"K&<,. <rito=>ay India >td. produces IndiaDs lar!est snack food manufacturerAs brands$ includin! Ruffles$ Iostess$ ;heetos and "ncle ;hips. <rito >ayDs story is an e%ample of how merican recipes were adjusted to satisfy local tastes.

=I33I3; FLAV)4,
>ayAs$ the world and IndiaAs 4o 7 potato chips brand from <rito=>ay India$ is all set to pro#ide some new lip smackin! tastes to its consumers. The four short listed fla#ors from a whoppin! 7.0 million ideas came from four winnin! consumers$ each of whom !ets Rs B lakh for their dillo!ical fla#or ideas. ;heesy Me%icana$ Tan!y Twist$ Mastana Man!o and Iip Iop Ioney J ;hilly from a three= month lon! 5i#e "s Kour &elicious <la#or +5"K&<, campai!n. The four fla#ors will be sold in the market across India for the ne%t two months with the theme bache!a sirf tastiest +sur#i#al of the tastiest,. The fla#or that elicits the ma%imum consumer #otes will not only continue to stay in the market as the me!a winner$ but its ideator would be awarded a !rand priCe of Rs B2 lakh and 79 of sales re#enue.

0B / P a ! e

Institute Of Professional Education & Research, Bhopal

VA,IA3TS )F F,IT) LA7S

;IIP)
7. )panish tan!y tomato .. merican cream and onion 0. ;lassic salted 1. Ma!ic Masala
=inning flavors

*urkure
.. ;hili chatka 0.<unjabi+rajma, 1. Rajhasthani B. Iyderabadi 8. )olid masti twist 3. )olid masti khatta=mittha F. &ewana tomato desi beat M. <lirty lime 72. 4au!hty tomato

"ncle chips
.. ;hatpata Masala

li#a
7.)pecial ..)pecial tomato 0.)pecial salted 1.)pecial mint

7.Masala munch 7.)picy treat

B. Iip hop honey 8. ;heesy Me%icana 3. Tan!y twist F. Mastana man!o

08 / P a ! e

Institute Of Professional Education & Research, Bhopal

C)-%6TITI)3 A-)3; VA,IA3TS )F

C#ips 7. )picy Masala remi% .. International cream onion 0. Nuicy tomato ketchup 1. Red chili bin!o B. Premium salted Bri dges 8. Mad an!le tomato 3. Mad an!le chili F. Mad an!le achari M. Iatke=Nhatke <unky 72. Iatke=Nhatke Tomato 77. Tedhe=Medhe

;hilly Me%icana merican cream and onion )panish tan!y tomato Ma!ic Masala ;lassic salted

*urkure &ewana tomato *urkure chili chatka *urkure Rajhasthani *urkure <unjabi *urkure 4au!hty Tomato *urkure Masala Munch

03 / P a ! e

Institute Of Professional Education & Research, Bhopal

CALC4LATI)3 )F %,IC6 T) ,6TALI6, ?%T,@

PTR X

M WIM"M RHT I> PRI;H + MRP, 722 Q 9 M R5I4 +*HK ?6R&) +M R* "P J M R* &6?4,

ITC BI3;) V/S F,IT)LA7S BASIS BI>> PR6&";TI-ITK "4IT BI>> 6"T>HT+"B6, -HR 5H >I4H +P;P, ;RH&IT P6>I;K M R5I4 &I)TRIB"T6R M R5I4 RHT I>HR M R5I4 ?I6>H)H>HR ITC BB9 M29 B 3 & K) 09 7.9 7.9 LA7S 3B9 M29 7. 3 & K) B.B9 729 729

Basic terms 4B)' "ni:ue bill out let ABV9 #era!e bill #alue CFC9 collaret fiber container ABL9 bo#e the land BBL9 Below the land T*%9 Temporary dispatch time %C%9 #era!e >ine 0F / P a ! e

Institute Of Professional Education & Research, Bhopal

ITC ),;A3ILATI)3AL ST,4CT4,6

&I)TRI;T M 4 5HR

RH5I64 > BR 4;I M 4 5HR

BR 4;I M 4 5HR

))I)T 4T BR 4;I M 4 5HR

TIRHH ;IR;>H I4;I R5H

RH HWH;"TI-H

)"PHR-I)6R

) >H)M 4 ) ;64)"MHR

0M / P a ! e

Institute Of Professional Education & Research, Bhopal

ITC ),;A3ILATI)3AL ST,4CT4,6

S64 > M 4 5HR

&I)TRI;T M 4 5HR

BR 4;I M 4 5HR

RH5I64 > M 4 5HR

) >H) 6<<I;HR

)"PHR-I)6R

) >H)M 4 ) ;64)"MHR

12 / P a ! e

Institute Of Professional Education & Research, Bhopal

ITC

F,IT)LA7S *IST,IB4TI)3 C:A336L

IT; J <rito lays follow the same distribution channel. The distribution channel starts from the factory from were the !oods are transferred to the wholesale dealer with the appro#al of ;learin! and <orwardin! !ent transferred to the wholesale dealer with the appro#al of clearin! and <orwardin! !ent. <urther the !oods are supplied to the *ey ccounts &istribution ;enter from were they are redistributed to the 6utlets. The flow of this distribution channel is a two way process as the demand for the products arises from different retail outlets$ which are ordered to the &istribution ;enter and further comin! up the flow the demand reaches the factory. In the IT; Bhopal they are workin! on the primary and secondary sale both. In IT; &) use - NR Machine for bookin! the order and show the products adds upcomin! products$ price$ mar!in$ siCe in this machine. - NR look like a bi! mobile phone under this all information related to products are in the machine. 6rder which is taken by the machine sinks to the data to branch office. ?& system operator makes the in#oice and sends !oods to market ne%t day. IT; !i#e the * 1 to the ?& and also !i#e the salary of sales man and salary of super#isor distribution cost per #ehicle and !i#e the supply cost of e=choupal. In IT; Branch Mana!er Tuarterly$ rea Mana!er monthly$ rea H%ecuti#e weekly #isited in the market communicates with customer directly. They interact with customer and if customers ha#e any problem related to !oods and ser#ices which are pro#ided by 17 / P a ! e

Institute Of Professional Education & Research, Bhopal company they try to sol#e. They check stock is properly in the market or not displays and ads are properly done or not. IT; use software that is called )I<K. ll the bills and detail information product wise$ #ariant wise$ summariCe sales reports are make in the help of this software. <ormat of sales report code of the !oods are in this.IT; !i#e 09 mar!in to his distributors and bear #ehicle cost 0F2 Rs per #ehicle. IT; !i#e trainin! to his sales man for sellin! the !oods in the market and !i#e the trainin! how to use sales tools in the market how to communicate with customer. ?hat is primary and secondary saleY PRIM RK ) >H) MH 4) ?IH4 TIH 6R5 4I) TI64 )H>>) 6R M *H <>6? 6< PR6&";T 6R )HR-I;H) T6 TIH ;I 44H> P RT4HR). HW' I4 <M;5' ;J< 5H4T)$ &I)TRIB"T6R)$ nd &H >HR) HW' I4 <I4 4;I > )HR-I;H' B")I4H)) P RT4HR)$ <R 4;II)HH)$ )H;64& RK ) >H) MH 4) ?IH4 TIH 6R5 4I) TI64 )H>>) 6R M *H <>6? 6< PR6&";T 6R )HR-I;H) T6 H4& ")HR). HW' I4 <M;5' RHT I>HR)$ TR &H < IR)$ nd PR6M6TI64 > ) >H) HW' <I4 4;I > )HR-I;H)' ) >H) &IRH;T>K BK ;6MP 4K HMP>6KHH) ?hat is the distribution infrastructureY Man power$ salesman$ relation in the market$ market knowled!e etc ?hat is the sales toolY )chemes and offer are sales tools.

1. / P a ! e

Institute Of Professional Education & Research, Bhopal

ITC BI3;) V/S F,IT) LA7S


COVERAGE O RITO-LAYS

<rito=lays ha#e 1 distributors in Bhopal city employee 02 salesmen. Bhopal is sub di#ided into 1 parts 7 distributor +) R H4THRPRI)H, looks for old Bhopal and has a uni:ue co#era!e of 7.B2 outlets. . distributor + 4 4& ) >H), looks for new Bhopal and has a uni:ue co#era!e of 7B22 outlets. 0 distributor +PRHM 5H4;IH), looks for picnic spots around Bhopal and co#er around .B2 outlets. 1 distributor +R S H4THRPRI)H), looks for wholesale in old Bhopal and has a uni:ue co#era!e of around 022 outlets. Total outlets co#ered by <rito=>ays distributors in Bhopal is 0022+ PPR6W,. <rito=>ays uses pre sale or order bookin! process for takin! order in urban areas and uses ready stock process for rural or deep up country.

10 / P a ! e

Institute Of Professional Education & Research, Bhopal

C)8(+,6( )* ITC B&#6)

IT;=Bin!o has 1 distributors in Bhopal city which employee B &). Bhopal is sub di#ided into 1 parts <irst distributor looks for old Bhopal +B6MB K )T6RH, and has a uni:ue co#era!e of around .82 outlets of Bin!o. )econd distributor also looks for old Bhopal +B6MB K &I)TRIB"T6R, and has a uni:ue co#era!e of .82 outlets Bin!o. Third distributor looks for new Bhopal +M <ourth distributor looks for new Bhopal + outlets Bin!o. ))6;I TH), and co#ers around B.2 outlets Bin!o. * )I, and has a uni:ue co#era!e of around B.2

total outlet co#ered by IT; Bin!o in Bhopal is around 70.2+ PPR6W,.

11 / P a ! e

Institute Of Professional Education & Research, Bhopal

TOTAL COVERAGE O ITC BINGO V<S RITO-LAYS

I3T6,%,6TATI)3 In Bhopal city the total outlets co#ered by IT; Bin!o are 70.2+ PPR6W, whereas its main competitor co#ers around 0022+ PPR6W, outlets. 6#erall market share of Bin!o in Bhopal is .M9 as compare to <rito=>ays 379. There is a need to increase the total co#era!e of IT; Bin!o in order 1B / P a ! e

Institute Of Professional Education & Research, Bhopal to increase its market share in Bhopal city. >ays is ha#in! a upper hand o#er Bin!o but Bin!o is able to make its place in the market in a short span of time. The market is !rowin! for Bin!o and efforts should be made to capture the rural and deep upcountry in order to increase total co#era!e. S,-($ R(2)+% )* ITC B&#6) 8<$ +&%)-L,3$ &# B1)2,- /&%3 )ale in Bhopal city for <rito >ays

)ale in Bhopal city for IT; Bin!o

18 / P a ! e

Institute Of Professional Education & Research, Bhopal

) >H ;6MP RI)I64 6< IT; BI456 J <RIT6=> K)

I3T6,%,6TATI)3
The total sales of <rito=>ays in Bhopal city is around 07 >akhs+appro%, and IT; Bin!o has appro% sale of 77.B >akhs+appro%, in this way Bin!o has 029 share as compare to >ays 329 sale. The foremost important important concept of sale is !rowth and since Bin!o has launh it has witnessed a constant !rowth in its se!ment.

13 / P a ! e

Institute Of Professional Education & Research, Bhopal

1F / P a ! e

Institute Of Professional Education & Research, Bhopal

FI3*I3;S
I. ?ork assi!ned to me To check the a#ailability$ #isibility and &4& +if any, of Bin!o at retail outlet. ?hile doin! this$ I understood about distribution and stockin! process at ?& +?holesale &istributor, point is as follows' a, 6rderin! process b, Billin! process. c, &eli#ery process. <rom the abo#e research and operation$ Retailers and distributors point of #iew was cleared. II. To collect information of <rito=>ays and analyCe the data thereafter. <or that I ha#e inter#iewed <rito=>ays distributors and company official. III. In order to o#ercome weakness$ my recommendations and contributions. In the duration of my project I use to #isit the market daily with &) +distributor salesmen, and analyCe the market of IT; Bin!o and <rito=>ays. IT; pro#ide .9 e%tra mar!in to retailer as compare to its competitor <rito=>ays. ?hile checkin! a#ailability and #isibility of Bin!o snacks at Retail 6utlets I came across followin! obser#ations' 7, IT; has a !ood mi% of traditional and modern type of distribution channel. ., The response of customer towards Bin!o is positi#e. 0, t some outlets the sale was !ood.

1, 6ffer packs or consumer offer packs mostly sales. B, The total co#era!e of IT; Bin!o snacks falls #ery short in comparison to <rito= >ays. 8, )ometime there was demand but no supply. The problem is the lack of co#era!e and promotion acti#ities J proper ad#ertisement. )o for promotion acti#ities there are some point recommended by me in the ne%t pa!e.

1M / P a ! e

Institute Of Professional Education & Research, Bhopal

,6C)--63T*ATI)3S
7, There is #ast distribution !ap between IT; Bin!o snacks and <rito=>ays which has to be filled up in order to increase the sales for that IT; should consider' +a.7, Width of Distribution' total number of outlets co#ered should be increase in order to brid!e the distribution !ap. <or that IT; should +a.., Increase the number of DS. +a.0) Ready Stock' there are many areas around the city where supply throu!h loadin! auto is not possible for that ready=stock should be made a#ailable.

., ?e can !i#e ad#ertisement at tele#ision$ if we talk with cable operators for our ad#ertisement. They can show our ad.in their local channels in between their mo#ies shows. 0, ?e can increase the total mar!in !i#en to retailers. 1, ?e can introduce new schemes for' +a, ?holesaler schemeY ?holesaler is totally interested in mar!in or demand which has hi!h demand in the market. t present IT; Bin!o is in its !rowin! sta!e if we pro#ide comparati#ely hi!h mar!in to wholesaler then it will influence the sale. B, ?e can introduce new consumer offer packs. 8, To some of posh area we can pro#ide free sample of Bin!o so that the people !et aware of the product :uality.

B2 / P a ! e

Institute Of Professional Education & Research, Bhopal

C)3CL4SI)39
fter sur#ey at retail outlet and doin! a comparati#e analysis I found a contradiction that 7, >ays has been around for a lon!er time and has its loyalists. >ays scores on fla#or while Bin!o is crunchier. Ri!ht now >ays has the upper hand but Bin!o has a !ood thin! !oin! with new and inno#ati#e products like DMad n!lesD.

., There is a need to put the ima!e of our product Bin!o in the mind of customers before they come to purchase at shop. )o from abo#e points and accordin! to my other obser#ation )?6T analysis of product is' Strengt#' = =eakness = . )pport"nity = T#reats = !ood sales force is the stron! point of IT;.

B7 / P a ! e

Institute Of Professional Education & Research, Bhopal

N46STI)33AI, ?,6TAIL )4TL6T@


4ame of the outlet' = Type of outlet' = 6wner 4ame' = >ocation' = 7, Iow is the demand of Bin!oY a, -ery !ood ((( b, !ood ((( c, a#era!e ((( d, bad (((( ., )tock a#ailability of #arious brands a, >ays (((( b, &iamond (((( c, Bin!o (((( 0, ?hat criteria you apply when you sell your productY a) <ocus on Tuality((((( b, <ocus on Price(((( c, <ocus on )iCe((((((
d) <ocus on Mar!in((((

1, Iow far do you think IT; Bin!o has captured market o#er >aysY a, 6n a )mall )cale(((((((( b, 6n a >ar!e )cale((((((((

B, ?hat problem you face to sale IT; Bin!oPY a, Price(((( b, )iCe(((( c,Brand >oyalty towards other Brand((((( d, >ack of wareness((((( e, ny 6ther 8, &oes your sale increased due to Bin!oP Promotional acti#itiesY a) Ii!hly Increased(((( b, Increased(((( c, )omewhat Increased(((( d, 4ot at all Increased((((( 3, ?hether you ha#e to con#ince customer to purchase Bin!oY a, Kes ((( b, 4o ((( F, Please assi!n a #alue from 7=B to BI456 J > K) B <or H%cellent 1 <or -ery 5ood B. / P a ! e

Institute Of Professional Education & Research, Bhopal 0 <or 5ood . <or #era!e 7 <or Bad

BIBLI);,A%7

,esearc# -et#odology - 3ares# M"mar -al#otra ,etail -anagement - )gden S"pply c#ain management - :aris# Bi&oor 888.Itcportal.com 888.google.com 888.itcinfotec#.com 888.itcindia.com

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