A MINOR PROJECT

REPORT ON

MARKETING STRATEGIES OF
‘BINGO, AN ITC PRODUCT’

Submitted T o:- Submitted B y:-

Miss. S hikha T omar Saweety
BBA(G) 2nd
Shift 3rd Semester
04021201710

In partial fulfillment of the

Requirements for the award of Degree of 
Bachelor of Business Administration

Maharaja Surajmal Institute

Affiliated To:-
Guru Gobind Singh Indraprastha University
 Bingo! ii

CERTIFICATION

This is to certify that Saweety has completed her project report, entitled
‘Bingo, an ITC Product’ as a part of partial fulfillment of  Bachelor of
Business Administration (G)  programme from ‘Maharaja Surajmal Institute’,
affiliated to ‘Guru Gobind Singh Indraprastha University’, under my guidance
and her work is
original.

Miss.Shikha Tomar
Project Guide
 Bingo! iii

ACKNOWLEDGEMENT

The present work is an effort to throw some light on ‘Bingo, an

ITC Product’. The work would not have been possible to come to the present
shape
without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and

guidance received by my mentor & guide, Miss. Shikha Tomar,(Asst. Professor)
Maharaja Surajmal Institute and other staff members. I also thank her for the
ideas and basic concepts she delivered and shared with me, as they helped me a
lot in accomplishing this project of mine.

I convey my heart full affection to my Parents, who helped and

supported me during the course, for completion of my Minor Project Report.

Saweety
Enrollment No.: 04021201710
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EXECUTIVE SUMMARY

This report intends to find out the most popular flavour of BINGO in
the market from our sample. Snacks as such are a very minor part of the food
processing industry because snacks sector is largely unorganized. Here we will
also look into the market trends in snacks over the years. The project
purports to decipher the satisfaction level as well as the preferences of
consumers pertaining to the various flavours of BINGO - a new range of
savory snacks launched by ITC. We aim to analyze the success, marketability
and future growth prospects of BINGO. We also intend to study the spending
habits and motivation of consumers for buying snacks.

For this a survey was conducted in Delhi where respondents were asked
to fill a questionnaire. The data was collected and analyzed to obtain
conclusions.

This report carries an introduction of the company profile, detail of

the methodology followed detailed data analysis and the results so obtained
with the variety of graphs along with given.
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TABLE OF CONTENTS

1) INTRODUCTION 1-5
1.1) Objectives o t S tudy 2
f he
1.2) Research M ethodology 3
1.3) Limitations o t he esearch 5
f R

2) PROFILE OF THE ORGANISATION 6 - 23

2.1) ITC Limited - A Company Profile 7
2.2) P roduct L ine 9
2.3) E volution 11
2.4) Growth a nd D iversification 15
2.5) Performance 17

3) ANALYSIS AND INTERPRETATION OF DATA 20 - 39

3.1) Primary D ata 21
3.2) Secondary D ata 36

4) CONCLUSIONS AND RECOMMENDATIONS 40 - 41

5) BIBLIOGRAPHY 42 - 43

6) ANNEXURE 44 - 50
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CHAPTER 1

INTRODUCTIO
N
 Bingo! xvi

FMCG

INFORMATION
TECHNOLOGY
HOTELS

ITC
BUSINESSES

PAPER BOA
AGRI-
RDS &
BUSINESSES
PACKAGING

1. FMCG
Cigarettes, Foods, Lifestyle Retailing,
Personal Care, Education & Stationery, Safety
Matches, Incense Sticks

2. HOTELS
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ITC-Welcomgroup

3.PAPERBOARDS & PACKAGING

a) Paperboards & Specialty Papers: Folding
Box Boards, Solid Bleached
Sulphate Boards, Poly coated boards, Recycled
 boards, Fine Papers

b)Packaging: Flip-Top boxes, Display Outers,

Shells and Slides, Soft cup
and strap, Labels, Bundle Wraps, Flap
Boxes, Inner Frames, Coupon
Inserts, Folding Cartons, Fluted Cartons,
Shoulder Boxes, Pre-printed cork 
Tipping, Flexibles Packaging

4.   AGRI-BUSINESSES 
a)   Agri Commodities & Rural Services: Feed
Ingredients, Food Grains,
Edible Nuts, Marine Products,
Processed Fruits, Coffee & Spices,
e-Choupal

b) Leaf Tobacco, Spices & Agri Inputs

5. INFORMATION TECHNOLOGY
ITC Infotech
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EVOLUTION

Though the first six decades of the Company's

existence were primarily devoted to the growth and
consolidation of the Cigarettes and Leaf Tobacco
 businesses, the Seventies witnessed the beginnings of
a corporate transformation that would usher in
momentous changes in the life of the Company.

ITC's Packaging & Printing Business was set up

in 1925 as a strategic backward integration for ITC's
Cigarettes business. It is today India's most
sophisticated
 packaging house.

In 1975, the Company launched its Hotels

business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola'.
The objective of ITC's entry into the hotels
business was rooted in the concept of creating value
for the nation. ITC chose the hotels business for its
potential to earn high levels of foreign exchange,
create tourism infrastructure and generate large scale
direct and indirect employment. 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
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Bingo! v
ranks among Asia's 50 best performing companies
compiled by Business Week.

ITC is rated among the

World’s Best Big
Companies, Asia’s
‘Fabulous 50’ and
World’s Most Reputable Companies
By Forbes magazine

ITC has a diversified presence in Cigarettes,

Hotels, Paperboards & Specialty Papers, Packaging,
Agri- Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Personal
Care, Stationery, Safety Matches and other FMCG
products. While ITC is an outstanding market leader
in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri- Exports, it is
rapidly gaining market share even in its nascent
businesses of Packaged Foods & Confectionery,
Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and

respected corporations, ITC is widely perceived to
be dedicatedly nation-oriented. Chairman Y C
Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words:
"ITC believes that its aspiration to create enduring
value for the nation provides the motive force to
sustain growing shareholder value. ITC practices this
philosophy by not only driving each of its businesses
towards international competitiveness but by also
consciously contributing to enhancing the
competitiveness of the larger value chain of 
which it is a part."
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Bingo! v
ITC's diversified status originates from its
corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core
competencies: unmatched distribution reach, superior
brand-building capabilities, effective supply chain
management and acknowledged service skills in
hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share
of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest

exporters of agricultural products. ITC is one of the
country's biggest foreign exchange earners (US $ 3.2
 billion in the last decade). The Company's 'e-Choupal'
initiative is enabling Indian agriculture
significantly enhance its competitiveness by
empowering Indian farmers through the power of
the Internet. This transformational strategy, which has
already become the subject matter of a case study at
Harvard Business School, is expected to
progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's
marketing reach.

ITC's wholly owned Information Technology

subsidiary, ITC Infotech India Ltd, provides IT
services and solutions to leading global customers.
ITC Infotech has carved a niche for itself by
addressing customer challenges through innovative IT
solutions.

ITC's production facilities and hotels have

won numerous national and international awards for
quality,
 productivity, safety and environment management
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Bingo! vi
systems. ITC was the first company in India to voluntarily
seek a corporate governance rating.

ITC employs over 26,000 people at more than

60 locations across India. The Company
continuously endeavors to enhance its wealth
generating capabilities in a globalising environment to
consistently reward more than 3,44,000 shareholders,
fulfill the aspirations of its stakeholders and meets
overarching vision of the company is expressively
captured in its corporate
 positioning statement: "Enduring Value. For the
nation. For the Shareholder."societal expectations. This
overarching vision of the company is expressively
captured in its corporate positioning statement:
"Enduring Value. For the nation. For the
Shareholder.”

PERFORMANCE

ECONOMIC PERFORMANCE
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Bingo! vii

1. A growing portfolio of businesses

encompassing FMCG, Paperboards &
Packaging, Agri & Foods Business, Hotels and
Information Technology.

2. A turnover of over US $ 5 billion and a

market capitalisation of nearly US $ 19
billion.

3. Total Shareholder Returns, measured in terms

of increase in market capitalisation and dividends,
grew at a compound rate of over 24% per annum
over the last 5 years.

4. The new FMCG businesses support the

competitiveness, technology upgradation and market
reach of over 170 Small and Medium
Enterprises (SMEs).

ENVIORNMENTAL PERFORMANCE
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Bingo! viii

1. ITC's businesses generate livelihoods for over

5 million people.

2. ITC's globally recognised e-Choupal initiative is

the world's largest rural digital
infrastructure benefiting over 4 million farmers.

3. ITC's Social and Farm Forestry initiative has greened

over 96,000 hectares creating an estimated 43 million
 person-days of employment among the disadvantaged.

4. ITC's Watershed Development Initiative brings

 precious water to nearly 46,000
hectares of drylands and moisture-stressed areas.

5. ITC's Sustainable Community Development

initiatives include women’s empowerment,
supplementary education, integrated animal
husbandry programmes.
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SOCIAL PERFORMANCE

1. ITC has been ‘Carbon Positive’ four years in a

row (sequestering/storing twice the
amount of CO2 than the Company emits).

2. ‘Water Positive’ seven years in a row (creating

two times more Rainwater 
Harvesting potential than ITC's net consumption).

3. Solid Waste Recycling Positive

(Reusing/Recycling more solid waste
than generated).
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Bingo!
4. All Environment, Health and Safety
Management Systems in ITC conform to
international standards.

Balance sheet (Rs

crore)

Mar ' 10 Mar ' Mar ' 08 Mar ' 07 Mar '
09 06

Sources of funds
Owner's fund
Equity s hare c 381.82 377.44 376.86 376.22 375.52
apital
Share ap plication m oney - - - - -
Preference sh are ca pital - - - - -
Reserves & surplus 13,628.17 13,302.55 11,624.69 10,003.78 8,626.79

Loan funds
Secured lo ans - 11.63 5.57 60.78 25.91
Unsecured l oans 107.71 165.92 208.86 140.10 93.82
Total 14,117.70 13,857.54 12,215.98 10,580.88 9,122.04

Uses of funds
Fixed assets
Gross block 11,967.86 10,558.65 8,959.70 7,134.31 6,227.17
Less : r evaluation r eserve 54.39 55.09 56.12 57.08 59.17
Less : accumulated depreciation 3,825.46 3,286.74 2,790.87 2,389.54 2,065.44
 Net block 8,088.01 7,216.82 6,112.71 4,687.69 4,102.56
Capital work-in-progress 1,008.99 1,214.06 1,126.82 1,130.20 399.97
Investments 5,726.87 2,837.75 2,934.55 3,067.77 3,517.01

Net current assets

Current assets, loans & 8,463.31 8,450.99 7,306.99 6,281.07 5,228.49
advances
Less : current liabilities & 9,169.48 5,862.08 5,265.09 4,585.85 4,125.99
 provisions
Total net current assets -706.17 2,588.91 2,041.90 1,695.22 1,102.50
Miscellaneous expenses
- - - - -
not written
Total 14,117.70 13,857.54 12,215.98 10,580.88 9,122.04

Notes:
Book value of unquoted 5,108.69 2,861.88 2,958.68 3,091.90 3,541.14
 xx
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Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar '
investments 06
Market value of quoted invest. 1,355.62 9.12 13.42 13.30 13.46

CHAPTER 3

ANALYSIS
AND
INTERPRETATI
ON
OF DATA
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ANALYSIS AND
INTERPRETATION OF
PRIMARY DATA

Q.1) Do you eat snacks?

SNACKS EATER?
80%

80
70
60
50
40
30 20%

20
10
0
Yes No
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Q.11) Are you satisfied with BINGO in

all aspects?

BINGO OVERALL SATISFACTION

100

80
60%
60
32%
40
20 8%

0
Completely Satisfied Unsatisfied
Satisfied

Interpretation: Overall more than 80 percent of the

consumers are either completely satisfied or just
satisfied with Bingo. It shows that Bingo is having its
strong built
 Bingo! xlv
in the market and has also made a tough competition to its
competitive brands.

Q.12) Compared to other snacks (such

as Lays, Kurkure,
Uncle Chips, Haldiram, etc.), how
much do you like or
dislike BINGO?
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BINGO COMPARISON

100

80

60 53%

40
17%
14% 12%
20 4%

0
Much Better Same Worse Much
Better Worse

Interpretation: Here also, a strong consumer relation can

 be seen with Bingo, as nearly 85 percent of Bingo
and other snack consumers are satisfied with Bingo.
Mostly the people above 40 years of age seems to
be disappointed with Bingo as they find it difficult to
switch to other brands which are available in the
market at the same price providing the same
consumer satisfaction.

Q.13) What would you prefer if other

brand snacks will also
 Bingo! lii

Q.18) Consistent level of Bingo in respect of 

taste,quality and variety.

Inference: 72% of Bingo’s consumers agree to the

fact that the taste, quality and variety of its food
items is consistent all over the world.
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Q.19) Comparision of consumer preference

towards brands.

ITC FREETOLAYS
LEHER 
 Bingo! liv
We can observe that consumers prefer Bingo
Inference:
to a large extent over other brands. In this study brand
loyalty of Mc Donald’s is 48% while that of Pizza
Hut and Café Coffee Day is 32% and 20%
respectively.

Q20.)-View of consumers towards Bingo’s

ambience in total…

Inference: We
can infer from the above study that
65% of the people have a positive view towards the
ambience
 Bingo! lvi
The company’s Net Profit has increased by
4.6% from Rs. 3120.10 cr (2008) to Rs. 3263.59 cr
(2009), which is a sign of progress.

ITC leveraged it traditional businesses to

develop new brands for new segments. For example,
ITC used its experience of transporting and
distributing tobacco
 products to remote and distant parts of India as an
advantage of its FMCG products. ITC master chefs
from its hotel chain are often asked to develop new
food concepts for its FMCG business.
ITC is a diversified company trading in a number of 
 business sectors including Cigarettes, Hotels,
Paperboards & Specialty Papers, Packaging, Agri-
Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel,
Personal Care, Stationery, Safety Matches and
other FMCG products.

To make its strong impact in the market, ITC

has also launched many new FMCG, Paperboards
& Specialty Papers, Packaged Foods &
Confectionery, Branded Apparel, Personal Care,
Stationery products, and also new hotels and
restaurants, in the year 2008-09.

WEAKNESSES
The company's original business was traded
in tobacco. ITC stands for ‘Imperial Tobacco Company
of India Limited’. It is interesting that a business that
is
now so involved in branding continues to use its original
 Bingo! lvii
name, despite the negative connection of tobacco with
 poor health and premature death.

To fund its cash guzzling FMCG start-up,

the company is still dependent upon its tobacco
revenues. Cigarettes account for 49 percent of the
company's net turnover, and that in itself is
responsible for 87% of its
 profits before tax. So there is an argument that
ITC's move into FMCG (Fast Moving Consumer
Goods) is
 being subsidised by its tobacco operations.

Also a wide range of products and its value,

specially in FMCG, sometimes confuses the buyer
to signify and choose the best according to their taste
and
 preferences, and therefore the buyer is unable to try or 
 purchase all other available options, which is a loss to
the organization because in-spite of its strong
image and qualitative product they are not able to
push the product in the market.

A wide range of product of the same kind

having a very little difference in between them, such
as flavour, colour, and packaging, serves as the
competition between there own products resulting in
the buyer’s confusion and which results sale of the
other company’s product.
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Bingo! i

OPPORTUNITIES
Core brands such as Aashirvaad, Mint-o,
Bingo! And Sun Feast (and others) can be
developed using strategies of market development,
product development and marketing penetration.

ITC is moving into new and emerging

sectors including Information Technology, supporting
business solutions.

e-Choupal is a community of practice that

links rural Indian farmers using the Internet. This is an
original and well thought of initiative that could be
used in other sectors in many other parts of the world. It
is also an ambitious project that has a goal of
reaching 10 million farmers in 1,00,000 villages.

ITC leverages e-Choupal in a novel way.

The company researched the tastes of consumers in
the North, West and East of India of atta (a popular
type of wheat flour), then used the network to source
and create the raw materials from farmers and
then blend them for consumers under purposeful
brand names such as Aashirvaad Select in the
Northern market, Aashirvaad MP Chakki in the
Western market and Aashirvaad in the Eastern market.
This concept is tremendously difficult for competitors to
emulate.
 Bingo! lxx
Q.10) Are you satisfied with the price of BINGO?

Yes

 No

Q.11) Are you satisfied with BINGO in all

aspects? Completely Satisfied

Satisfied

Unsatisfied

Q.12) Compared to other snacks (such as Lays,

Kurkure, Uncle Chips, Haldiram,
etc.), how much do you like or dislike BINGO?

Much

Better Better 

Same

Worse

Much Worse

Q.13) What would you prefer if other brand snacks

will also be available including
Bingo?
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Bingo! i
Bingo

Lays

Kurkure

Uncle Chips

Haldiram

Q.14) Before switching on to ITC BINGO, which

snack did you prefer?

Lays

Kurkure

Uncle Chips

Haldiram

Q.15) Would you like to recommend ITC BINGO to

others?

Yes

 Not Sure

 No

Q.16) Does the brand name ITC affect your 

 preference about Bingo?

Yes
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Bingo! ii
No

Q.17) Consumer’s demand for introduction of more

 products.

Yes

 No

Q.18) Consistent level of Bingo in respect of

taste,quality and variety.

Consistent

Variable

Q.19) Comparision of consumer preference towards

 brands.

ITC

Freetolays

Leher 
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Bingo! iii

Q20.)-View of consumers towards Bingo’s ambience in

total…

Positive

 Negative