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÷
÷÷÷÷ 


 ÷÷

 

÷ 
‘

 

First of all I would like to thank the Management at ITC Ltd. for giving me
the opportunity to do my two month project training in their esteemed
organization. I am highly obliged to my project guide  ÷

 !"# ! $%÷ #  !&'(for granting me to undertake
my training at Saharanpur branch.

I express my thanks to all Staff of the branch under whose able guidance
and direction, I was able to give shape to my training. Their constant review
and excellent suggestions throughout the project are highly commendable.

My heartfelt thanks go to all the executives who helped me gain knowledge

about the actual working and the processes involved in various
departments. I have no words to express my feeling of deep gratitude,
which I owe to ) *  + "',- .(% who extended me
assistance, support and council without, which this project would not have
been materialized.

*  

÷÷÷  
 
/
‘

I am lucky that, I got an opportunity for making the project report on ³ITC
CANDYMAN.´ I visited the various concerns for two months and I prepare
my project report on the topic ‰)&  0 1'- )+  , 2
3#),1 ,1 .# 0))3 1  !- ! !+ !,,4
and the study is divided into various chapters to get knowledge. I also
considered some published material on the particular topic as well as about
the concern. This helps me in boosting up my confidence and
determination which will help me to face the situation in coming years. This
report is written account of what I learnt and experienced during my survey.
I wish, those going through it will not only find it readable but also get as
useful Information. The main limitation of my experience was that I did not
get the full and correct Information from the market, as many of the
respondents did not answer to my questionnaire correctly and completely.

‘
‘

‘

!)'")!





å !  

-&Public (BSE:ITC)

/)'!August 24, 1910

Radha Bazar Lane, ),5  , India

 6' 1Virginia House, Kolkata, India

-&)&,Y C Deveshwar, Chairman K Vaidyanath, Director, CFO:

Partho Chatterjee

!'1-Tobacco, Foods, Hotels

)'"1Cigarettes, Packaged Food, Hotels, Apparel

0!'$4.75 billion USD (2006)

&,)-120,000 (2006)

.1http://www.itcportal.com/

 is one of India's foremost private sector companies with a market

capitalization of nearly US $ 14 billion and a turnover of over US $ 5
billion.* ITC is rated among the World's Best Big Companies, Asia's 'Fab
50' and the World's Most Reputable Companies by Forbes magazine,
among India's Most Respected Companies by Business World and among
India's Most Valuable Companies by Business Today. ITC ranks among
India's `10 Most Valuable (Company) Brands', in a study conducted by
Brand Finance and published by the Economic Times. ITC also ranks
among Asia's 50 best performing companies compiled by Business Week.

 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 " ")!.-)!# 5". In his
own words: 7 .,01 #  1 1& )! ) "  !'!$ 0 ,'
+) # ! )! &)01 # )0 +)" ) 1'1 !  $)3!$
1# #), 0 ,'  & ""1 #1 &#,)1)&#- .- !) )!,- 0!$
 "# )+ 1 .'1!111 )3 1 !! )! , ")&0!11 .' .-
,1) ")!1")'1,- ")!.'!$ ) !# !"!$ # ")&0!11 )+
#, $0 ,'"# !)+3#"#1 & 7


 employs over 25,000 people at more than 60 locations across India.

The Company continuously endeavors to enhance its wealth generating
capabilities in a globalizing environment to consistently reward more than
3,68,000 shareholders, fulfill the aspirations of its stakeholders and meet
societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: 7!'!$
 ,'/)#! )!/)#÷# #),7

÷


 was incorporated on August 24, 1910 under the name of 'Imperial
Tobacco Company of India Limited'. Its 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. The Company's ownership progressively Indianised, and the
name of the Company was changed 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-Exports,
Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops
in the Company's name were removed effective September 18, 2001. The
Company now stands rechristened 'ITC Limited'.
















÷/

Though the first six decades of the Company's existence were primarily
devoted to the growth and consolidation of the $ 1 !  +
). "") businesses, the Seventies witnessed the beginnings of a
corporate transformation that would usher in momentous changes in the life
of the Company.

ITC's  "5 $!$ 2 !!$
'1!11 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 ),1.'1!11 with the acquisition of

a hotel in Chennai which was rechristened 8
,")$)'& ),
#), 8 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  &.) 1 .'1!11 by promoting ITC

Bhadrachalam Paperboards Limited, which today has become the market
leader in India. Bhadrachalam Paperboards amalgamated with the
Company effective March 13, 2002 and became a Division of the
Company, Bhadrachalam Paperboards Division. In November 2002, this
division merged with the Company's Tribeni Tissues Division to form the
Paperboards & Specialty Papers Division. ITC's paperboards' technology,
productivity, quality and manufacturing processes are comparable to the
best in the world. It has also made an immense contribution to the
development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental
protection and community development. In 2004, ITC acquired the
paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to
improve customer service with reduced lead time and a wider product
range. ‘

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and

British joint venture. Since inception, its shares have been held by ITC,
British American Tobacco and various independent shareholders in Nepal.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its
name was changed to ÷'- & ,0   (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
 &.) 12÷&" ,- &101)! in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the $

'1!11 01)! 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 operatonal in the 3 states of Madhya Pradesh, Maharashtra and
Uttar Pradesh.

In 2000, ITC launched a line of high 6' ,- $!$ " 1 under the
brand name '9&11)!1'. In 2002, the product range was enlarged with
the introduction of +3 &&1%')$ &#.))51 !÷, .))51 In
the same year, ITC also launched 89&11)!1  '.# 1# 8, a
vernacular range of greeting cards in eight languages and 89&11)!1
 &5 +8, a range of premium stationery products. In 2003, the company
rolled out 8, 11 8, a range of notebooks in the school stationery
segment.

ITC also entered the Lifestyle Retailing business with the ,,1 ÷&)
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 ,,1 , 11" +) , 3  (2002) and ,,1 ,'.,+ 0!!$
3  (2003). ITC also initiated a foray into the popular segment with its
men's wear brand, *)#!, -1, in 2002. In 2006, Wills Lifestyle became
title partner of the country's most premier fashion event - ,,1 +1-,
!  / 1#)! 5 - 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 2007, the Company
introduced '11, -1'- a fashion brand in the popular segment for the
young woman.

In 2000, ITC spun off its information technology business into a wholly
owned subsidiary,  !+)"# !  % to more aggressively
pursue emerging opportunities in this area. Today ITC Infotech is one of
India¶s fastest growing global IT and IT-enabled services companies and
has established itself as a key player in offshore outsourcing, providing
outsourced IT solutions and services to leading global customers across
key focus verticals - Manufacturing, BFSI (Banking, Financial Services &
Insurance), 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
8"#!1 )+ ! 8 ready-to-eat Indian gourmet dishes. In 2002, ITC
entered the confectionery and staples segments with the launch of the
brands !
) and  !- ! confectionery and  1#0  atta (wheat
flour). 2003 witnessed the introduction of ÷'!+ 1 as the Company
entered the biscuits segment. ITC's entered the fast growing branded
snacks category with
!$): in 2007. In just seven 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 ÷ +-
 "#1 initiative. ITC now markets popular safety matches brands like
!)% !$ ,&%%$ and)

ITC's foray into the marketing of $ . 1 !"!1 1"51( in 2003

marked the manifestation of its partnership with the cottage sector. ITC's
popular agarbattis brands include ÷&# and  !$ ,& across a range
of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,
Sambrani and Nagchampa.
ITC introduced 11!;   ,,1, an exclusive range of fine fragrances
and bath & body care products for men and women in July 2005. !;)% the
signature range under 11!;   ,,1 provides a comprehensive
grooming regimen with distinct lines for men (!;) )) and women
(!;) /). Continuing with its tradition of bringing world class
products to Indian consumers the Company launched '/    ,,1', a
premium range of Shampoos, Shower Gels and Soaps in September,
October and December 2007 respectively. The Company also launched the
'÷'& ' range of Soaps and Shampoos in the mass-market segment at
select markets in October 2007 and 0,,,1 & 0,range of soaps
in February and 0,range of shampoos in June 2008.

/ 

!/÷(

ITC is the market leader in cigarettes in India. With its wide range of
invaluable brands, it has a leadership position in every segment of the
market. It's highly popular portfolio of brands includes ›
  › 
 



 
 
 
    


 
 



 








The Company has been able to build on its leadership position because of
its single minded focus on value creation for the consumer through
significant investments in product design, innovation, manufacturing
technology, quality, marketing and distribution. All initiatives are therefore
worked upon with the intent to fortify market standing in the long term. This
in turns aids in designing products which are contemporary and relevant
to the changing attitudes and evolving socio economic profile of the
country. This strategic focus on the consumer has paid ITC handsome
dividends
/))1
ITC made its entry into the branded & packaged Foods business in August
2001 with the launch of the Kitchens of India brand. A more broad-based
entry has been made since June 2002 with brand launches in the
Confectionery, Staples and Snack Foods segments. The Foods business is
today represented in 4 categories in the market. These are:
* Ready To Eat Foods
* Staples
* Confectionery
* Snack Foods

In order to assure consumers of the highest standards of food safety and

hygiene, ITC is engaged in assisting outsourced manufacturers in
implementing world-class hygiene standards through HACCP certification.
The unwavering commitment to internationally benchmarked quality
standards enabled ITC to rapidly gain market standing in all its 6
brands:
* Kitchens of India
* Aashirvaad
* Sunfeast
* mint-o
* Candyman
* Bingo! 


+1-, ,!$
ITC¶s Lifestyle Retailing Business Division has established a nationwide
retailing presence through its Wills Lifestyle chain of exclusive specialty
stores. Wills Lifestyle, the fashion destination, offers a tempting choice of
Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening
wear, fashion accessories and Essenza Di Wills ± an exclusive range of
fine fragrances and bath & body care products and Fiama Di Wills - a
range of premium shampoos and shower gels. Wills Lifestyle has also
introduced Wills Signature designer wear, designed by the leading
designers of the country.

,,1 , 11" work wear was launched in November 2002, providing the
premium consumer a distinct product offering and a unique brand
positioning.ITC forayed into the youth fashion segment with the launch of
*)#!, -1in December 2002 and John Players is committed to be the
No. 1 fashion brand for the youth.










'" )!2÷ )! -&)'"1
ITC made its entry into the stationery business in 2002 with its premium
range of notebooks, followed in the year 2003 with the more popular range
to augment its offering. ITC's stationery Brands are marketed as
"Classmate" and "Paperkraft", with Classmate addressing the needs of
school goers and Paperkraft targeted towards college students and
executives.



$ . 1

As part of ITC's business strategy of creating multiple drivers of growth in
the FMCG sector, the Company commenced marketing Agarbattis (incense
sticks) sourced from small-scale and cottage units in 2003.

),1

ITC entered the hotels business in 1975 with the acquisition of a hotel in
Chennai, which was then rechristened ITC Chola. Since then the ITC-
Welcomgroup brand has become synonymous with Indian hospitality. With
over 90 hotels in 77 destinations.

 "5 $!$
ITC's Packaging & Printing Business is the country's largest convertor of
paperboard into packaging. It converts over 50,000 tonnes of paper and
paperboard per annum into a variety of value-added packaging solutions
for the food & beverage, personal products, cigarette, liquor, cellular phone
and IT packaging industries. It has also entered the Flexibles and
Corrugated Cartons business.











 $
'1!11


#)'& ,
The unique e-Choupal model creates a significant two-way multi-
dimensional channel which can efficiently carry products and services into
and out of rural India, while recovering the associated costs through agri-
sourcing led efficiencies. This initiative now comprises about 6500
installations covering nearly 40,000 villages and serving over 4million
farmers.

 +). "")

ITC is the largest buyer, processor and exporter of leaf tobaccos in India -
creating a global benchmark as the single largest integrated source of
quality tobaccos. Serving customers in 50 countries across more than 70
destinations, ITC co-creates and delivers value at every stage of the leaf
tobacco value chain.
!+) )!"#!),)$-


ITC InfoTech offers IT services and solutions across five key industry
verticals: Banking, Financial Services & Insurance (BFSI), Consumer
Packaged Goods (CPG) & Retail, Manufacturing & Engineering Services,
Travel, Hospitality & Transportation and Media& Entertainment.




















÷÷/
ITC is a board-managed professional company, committed to creating
enduring value for the shareholder and for the nation. It has a rich
organizational 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.

ITC¶s corporate strategies are:

º Create multiple drivers of growth by developing a portfolio of world

class businesses that best matches organizational capability with
opportunities in domestic and export markets.
º Continue to focus on the chosen portfolio of FMCG, Hotels, Paper,
Paperboards & Packaging, Agri Business and Information
Technology.
º Benchmark the health of each business comprehensively across the
criteria of Market Standing, Profitability and Internal Vitality.
º Ensure that each of its businesses is world class and internationally
competitive.
º Enhance the competitive power of the portfolio through synergies
derived by blending the diverse skills and capabilities residing in
ITC¶s various businesses.
º Create distributed leadership within the organization by nurturing
talented and focused top management teams for each of the
businesses.
º Continuously strengthen and refine Corporate Governance
processes and systems to catalyses the entrepreneurial energies of
management by striking the golden balance between executive
freedom and the need for effective control and accountability.
 

÷


Sustain ITC position as a one of the India¶s most
valuable corporations through world class
performance, creating growing value for the
Indian economy and the company¶s stakeholder.



÷÷


 To enhance the wealth generating capability of
the enterprise in a globalizing environment,
delivering superior and sustainable stakeholder
value.
 )!+")!-!'1-003

Indian Confectionery Manufacturers Association (ICMA) is the apex

organisation of the confectionery industry in the country. ICMA promotes
confectionery products in the domestic market as well as the global market
through various campaign programmes like seminars and workshops. In an
exclusive interview with ÷ .- 1 "# ÷  <  )+ /)) 2
0 $
31,  ÷" -    ) talks about the hurdles the domestic
confectionery industry is facing today. Excerpts:

#  #11'.+)=

The confectionery industry has considerable potential for growth. A study

undertaken by McKenzie projected the potential in the industry at over Rs
5,000 crore per annum whereas the current turnover is around Rs 3,000
crore. For achieving this potential there is need to upgrade the technology
in the confectionery industry. Presently, the industry is not viable. The main
issue before our industry is the very high rate of excise duty, which could
not be passed on to the consumers because the products are sold in the
price range of 25 paise, 50 paise and one rupee. The reservation of the
industry to the small-scale sector and imports at much under-valued prices
are allowed freely under Open General Licence, seriously impacting the
domestic players. The domestic players are restricted from expanding their
capacities especially in the candy and other products, which are still
reserved to the small-scale industry (SSI) sector in the country while
imports are freely allowed. This issue needs to be resolved by complete de-
regulation of the confectionery industry. There is also the issue of
duplicates and look alikes. In order to maintain the of quality products, the
association is planning to create a cell which will look into the issue of such
spurious goods. As far as exports are concerned while our products almost
match with the best brands in the world, we may not be very competitive in
the global market. The industry is presently reserved for SSI. There are
some restrictions on expansion and growth while imports are freely
permitted. The reservation is not promoting the SSI sector and should be
done away with. It is very important that the industry should have
reasonable margins. Unfortunately, the industry is not doing very well
because of the high excise duty.

#  1&1 # 0 .!  5! .- #  ) &)) ! !
")!+")!-!'1-!#")'!-=

Import of confectionery not even conforming to the product specifications

and label declarations is another factor that is impacting the domestic
industry. Another major concern is that of look alike and spurious products.
The association is planning to create a cell to prevent such importing into
the country as well as look alike products which seriously impact the
organised sector of the industry as well as the revenue to the Central and
state government.

# )-)'#!5 .)'#9&)&)! ,)+! !")!+")!-

&)'"1!#")&0$,). , 5=

The country is a major producer of sugar in the world, the basic raw
material of the confectionery industry. This is a very positive aspect for
manufacture confectionery items, which could compete in the global
market. To be a regular exporter of confectionery there is need for
upgradation of technology as well as addition of new capacity to attract the
deregulation of the confectionery sector and restructuring of the excise duty
will go a long way in achieving the objectives and create capacity for
export.

# $)0!! 11 ) . 1)'1 ! &))!$ # +))

&)"11!$ 1") !  .$ 3 - 0!  "# !" 3#  3)', . #
"# !$1 -)' 3)', 1'$$1 ) # &),"-  51 ! &))!$ -)'
1")!! =

The quality inspection of confectionery products at the port has to be

strengthened to ensure that the goods imported into the country meet fully
the specification to the product and labeling requirements as per the
Prevention of Food Adulteration (PFA). The confectionery industry, where
the raw materials used are primarily of agriculture produce, has so far not
received any concession in excise duty. While products of similar nature
such as ice creams, biscuits, snack foods attract nil rate of duty, the
confectionery industry is subject to 16% on a number of products and even
on low value products sold at 25 paise, 50 paise, it attracts 8% duty. The
Ministry of Food Processing is quite appreciative of the problem and we
hope that in the coming budget, the government will give some
consideration to these aspects and rationalize the duty structure by levying
nil rate of duty on low value products and others at 8%. In so far as
confectionery is concerned, it is required to pay 8-16% of duty. We drew
the attention of the Ministry of Food Processing Industries and have been
representing to the Finance Ministry to look into some of the anomalies and
lower the duty structure on confectionery which would go a long way in
capacity building not only for domestic consumption but also export. The
association has been requesting the government that confectionery
products manufactured from agro products like milk, milk powder, sugar
and glucose have not been given any consession in the duties although
several other sectors of agro-based industries have received continuous
support form the government. There is a need for rationalization of duties
and the products, which are sold at low price points, should be exempted
from excise duty whereas other products may be put at 8% duty.‘

‘
  ÷÷

The confectionery industry in India .The confectionery industry in India is

approximately divided into:

º Chocolates
º Hard-boiled candies
º Eclairs & toffees
º Chewing gums
º Lollipops
º Bubble gum
º Mints and lozenges

The total confectionery market is valued at Rupees 41 billion with a volume

turnover of about 223500 tonnes per annum. The category is largely
consumed in urban areas with a 73% skew to urban markets and a 27% to
rural markets.

Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for
18%, Gums and Mints and lozenges are at par and account for 13%.
Digestive Candies and Lollipops account for 2.0% share respectively.

Overall industry growth is estimated at 23% in the chocolates segment and

sugar confectionery segment has declined by 19%.

‘
 /

‘ITC Foods, the recently set up division of the tobacco and hotel major ITC
Ltd, is finally sweetening its way to the Rs 1,100 crore confectionery
market. In a quiet move, the foods division which has shifted office from
Kolkata to Bangalore this month, has launched its first confectionery
product²the acquired brand Minto²in four cities.

Reformulated and repackaged with a prominent ITC logo, Minto, inform

market sources, has been launched in Mumbai, Pune, Lucknow and
Coimbatore last month. Launched in two rolls and priced at Rs 5 (for 20s)
and Rs 2 (for 6), ITC is expected to launch single packs priced at lower
price points as well. More research on how to tap the potential of the Minto
brand is being conducted at the division¶s research and development
facility in Bangalore.

Last month, ITC also made a foray into the branded staples segment with
the launch of its atta under Aashirwaad brand. ITC spokesperson, however,
insists that both²atta and confectionery²are at a test marketing phase
and a final decision as to their formal launch will be taken only after
gauging the response.

ITC, it may be mentioned, bought the Minto brand from New Delhi-based
Candico promoted by Mr Sanjiv Kumar. Though ITC owns the brand, the
manufacturing rights still remain with Candico. Minto is the second largest
player in the mint confectionery category after Nestle¶s Polo.

Industry observers are, however, laying greater emphasis on Minto¶s

relaunch under ITC¶s umbrella. Says an observer: ³We are not worried
about Minto being relaunched, what¶s important is that it implies that ITC is
serious about the confectionery business.´

ITC which made a foray into the foods business, last year, with its ready-to-
serve (RTS) brand Kitchens of India, has already announced its other plans
in the sector.

Apart from RTS, confectionery, and atta, the ITC food foray is expected to
cover a range of products including biscuits.
ITC currently has two brands in the confectionery segment ±µ!
)> !
? !- !>

µMint-o¶ was acquired by ITC from Candico in March 2002. ITC re-launched
the compressed mint offering, across all major markets in India, with new
and improved product and packaging. Available in the regular mint flavor
with added blue specks to enhance consumer experience, mint-o is also
offered in innovative µOrange-mint¶ and µLemon-mint¶ flavours. Mint-o Cool
blue - a single mint in a pillow-pack was launched In November 2007. ¶Mint-
o¶ is available in 3 sizes ± rolls of 20 and 6 and singles, capturing the
international essence of µyouthful cool¶.ITC launched µMint-o Fresh¶ in
October 2004. An µactive¶ mint deposited candy, mint-o Fresh is available in
two refreshing mint flavours ± mint-o Fresh eucalyptus and mint-o Fresh
Cool Green. Its launch extended the footprint of the µmint-o¶ brand in line
with the strategy of adding excitement and contributing to the growth of the
confectionery category. µMint-o Fresh¶ is especially targeted at the adult
consumer creating a basket of mint-based products across price points.


// 
ITC launched the µCandyman¶ range of confectioneries in August 2002. Led
by the µCandyman Fruitee Fun¶ range of assorted fruit flavours ( µWild
banana¶, µPineapple Punch¶, µOrange Josh¶ and µMango Delite¶), the
µCandyman¶ portfolio now includes deposited candy products like
µCandyman Butterscotch Licks¶ and µCandyman Eclairs¶ (Choco flavoured
as well as Vanilla Cream centre inside a Butterscotch outer shell). The
coffee toffee segment also saw the successful launch of µCandyman
cofitino¶ in November 2005. The brand was further strengthened with the
launch of µCandyman Natkhat Mango¶ and µCandyman Maha Mango¶. In
line with the strategy to provide innovative flavours to the consumers,
Candyman Mango Licks was launched in June 2007 and Candyman
Natkhat Gowawa in October 2007. The µCandyman¶ range of confectionary
is targeted at µfun-filled, naughty kids¶ who seek a delightful candy
experience through a range of candy types and flavours.


+))19& !1!)
+1#&)+),)
> 
       
 
  !

 ‘
›" # today announced the expansion of the Mint-
o fresh portfolio with the launch of !
) +1# ")),
! The new variant Mint-O Fresh Cool Green will
provide further thrust to the formidable presence that
Mint-O Fresh has established in the adult mint category. The brand has
also roped in the bold and confident Bollywood diva Rakhi Sawant to
highlight the brand and product salience.

Speaking on the occasion of the launch, Mr. Ravi Naware, Divisional Chief
Executive, ITC Ltd - Foods Division said "The new variant of Mint-O Fresh
hallmarks ITC Foods' innovative & differentiated product strategy. ITC Ltd -
Foods Division, being at the forefront of product development and
innovation has introduced the new variant of Mint-O fresh after months of
product and consumer research. "Mint-O fresh Cool Green" is milder and
sweeter in taste and the cool green color of the mint connotes freshness
and imparts oral hygiene and mouth freshening benefits. Mint-O Fresh Cool
Green has been developed with a combination of two flavours - Spearmint
and Peppermint. The new product will be supported by a multi-media
communication campaign including a new television commercial featuring
Rakhi Sawant. The initial campaign will be further supplemented by on-
ground promotions distinctly communicating the product attributes and
brand essence."

Mint-O Fresh, the hard boiled mint candy brand from ITC Foods stands for
freshness that inspires self-confidence and plays a lead role in the
consumer's social interactions. The communication of Mint-O Fresh has
been about breath freshness enabling the protagonist to win over his girl.
The tagline 7* . ,  5)5 ! # &11) <!'! 5# -! )
+1#7 has stood the test of times and is still widely known and
remembered. This communication has worked well for the brand and has
enabled it to gain shares in a short period of time in the face of intense
competition. The brand today is a leader in its category.
Speaking on the new campaign, Ishita Tandon, Brand Manager
Confectionery, ITC Ltd-Foods Division said "Adult mint confectionery is an
impulse category where salience for a brand is very important. It is critical
to get cut through so that the consumer remembers the brand and asks for
it at the point of sale. Signing on Rakhi will help us get this cut through and
improve brand salience. Also, Rakhi is bold, confident and frank and Minto
Fresh has similar brand values. Thus there is a good fit with Minto fresh.
Moreover, the brand statement has been breath freshness and the
communication has been about the protagonist trying to impress his girl.
What better than impressing Rakhi Sawant."

While maintaining the inherent property of freshness and confidence

through mint o fresh the new communication intends to present the brand
promise in another fresh and exciting manner. The use of street parlance
dramatized through a protagonist trying to impress his girl is set to enhance
the brand connect with its target audience.

.)'!
/1# 

The .50p Cough Lozenges segment, which accounts for 10.3% of the total
confectionery market (value terms) is one of the fast growing segments
with a growth rate of 32% (3 year CAGR, value terms). The segment has
gained tremendous popularity over the past 3 years. The category of
Cough Lozenges is characterized by well entrenched brands in the market.
ITC Foods entered the fast growing Cough Lozenge segment with the
launch of Mint-O Fresh in 2004. Currently available in Eucalyptus and
Clove flavours, Mint-O Fresh has garnered a significant market share in the
category and top of mind recall on the basis of its distinctive product
offerings, immense retail reach and clutter-breaking communication. It is
today the No. 1 brand in the 50 p cough lozenges segment.

‘
 !)'")! + !,,

0 )& !-

!")&)  1900 as Van Melle; 1946 as Dolcifico Lombardo; 2001 as
Perfetti Van Melle
÷ ,1 EUR 1.3 billion ($1.6 billion) (2004 est.)
 311330 Confectionery Manufacturing from Purchased Chocolate;
311340 Non-Chocolate Confectionery Manufacturing





 )& !-1)-
Perfetti Van Melle S.P.A. is the world's sixth-largest candy and
confectionery producer and number two in Europe. Representing the
combination of Italy's Perfetti with the Netherlands' Van Melle, Perfetti Van
Melle produces and markets a host of top-selling candy brands, including
Mentos, Fruittella, Brooklyn, Alpenlieve, Golia, and Frisk. Perfetti Van Melle
has a worldwide presence, with factories in Italy, the Netherlands,
Germany, Spain, and elsewhere in Europe, as well as manufacturing sites
in the United States, Brazil, Turkey, India, China, Indonesia, and Vietnam.
The company has also announced its intention to begin manufacturing in
Russia in 2005. Sales of the privately held company's products reach more
than 130 countries. Perfetti Van Melle operates dual headquarters in
Lainate, Italy, and Breda, the Netherlands. The company's sales were
estimated to top EUR 1.3 billion ($1.6 billion) in the mid-2000s.

 !,,81$!1!#@A#!'-

The merger between Italy's Perfetti and Van Melle of the Netherlands in
2001 created one of the world's top confectionery companies, with a rank
of number two in Europe and a global ranking of number six. The merger
cemented the friendly relationship that existed between the companies for
some two decades and had led Perfetti to become a major shareholder in
Van Melle by the early 1990s.

Van Melle was the older of the two companies, tracing its origins to a
bakery founded by Izaak van Melle in Breskens, the Netherlands, in 1841.
The bakery was taken over by one of van Melle's sons, Abraham van
Melle, in 1882. It was under this generation that the family made its first
entry into the confectionery business. One of the bakeries employees came
from Belgium and knew how to prepare sugar in order to make candy. Van
Melle decided to begin cooking up candies besides its usual bakery goods.
The shop's "suikerballetjes" (sugar balls) quickly became a popular local
favorite. Production remained on a small, homemade scale, however.
Abraham van Melle's son Izaak joined the family business by the turn of the
20th century. Recognizing the popularity of the bakery's candies, the
younger Van Melle decided to launch large-scale production of the
confectionery and invested in machinery and equipment to establish a full-
fledged candy factory in 1900. Izaak van Melle also continued to seek to
improve the company's products, establishing high-quality standards and
expanding and modernizing its production facilities.

The company also rapidly turned to the international market for sales. By
the 1920s, the company's products had found their way across the world,
reaching the Dutch Indies, South Africa, Morocco, Tunisia, and Algeria,
many Asian markets, and, closer to home, markets in Europe, such as
Greece. Izaak van Melle himself traveled extensively, seeking out new
clients and markets.

Van Melle's many travels had led him to discover many new candy and
confectionery varieties, which he brought back to the company. In this way,
in 1926, the company launched production of toffee candies, an English
favorite. Van Melle soon made the recipe its own, and, working in its own
test kitchen, extended its range of toffee to include a variety of flavors,
including licorice. The company's recipe proved so successful that Van
Melle toffees became popular even in the United Kingdom.

A trip to Poland in the early 1930s gave the company two new recipes. The
first was for a soft caramel-like candy containing real fruit flavors. The
second was a candy-coated peppermint-flavored caramel. These candies
later became known as Fruittella and Mentos, respectively, and helped
launch Van Melle into the ranks of the world's leading confectionery
companies.

By the 1930s, however, Van Melle was already a prominent confectioner,

and by 1935 the company had even purchased its own airplane, a rarity at
the time. However, the German occupation of the Netherlands during World
War II brought hard times to the company. Wartime restrictions on sugar
consumption severely cut into production. By the end of the war, bombing
raids had destroyed the Van Melle factory.


 - 1 
@BC@ Izaak Van Melle opens a bakery in Breskens, the Netherlands.

@BBD Abraham Van Melle takes over the bakery and begins producing
candies.

@AEE Izaak van Melle, the founder's grandson, takes over the bakery and
builds a new factory for large-scale production of candy and confectionery.

@ADF Van Melle begins production of English-style toffee.

@ACF After its production site destroyed during war, Van Melle builds a
new factory in Rotterdam; Perfetti brothers launch Dolcifico Lombardo, later
Perfetti, in Lainate, Italy, in order to produce chewing gum and other
candies.

@AGE Van Melle opens its first foreign sales and distribution subsidiary in
Belgium.

@AFF Perfetti launches a subsidiary, Gum Base Company, for production

of natural and artificial .

@AHD Van Melle starts U.S. operations in Kentucky.

@ABD Van Melle moves to a new production site in Breda and makes its
first acquisition, of PPW in Gilda; Perfetti sets up its first foreign production
site in Greece.

@ABI Van Melle lists shares on Amsterdam Beurs' Parallel Markt and
begins a marketing relationship with Perfetti.
@AA@ Perfetti buys a 37 percent stake in Van Melle.

@AAG Van Melle enters India.

@AAH Van Melle enters China, building a production site in Shenzen.

DEEE Van Melle switches its listing to Amsterdam exchange's primary

board.

DEE@ Perfetti acquires 100 percent control of Van Melle for EUR 966
million.










9& !1)! !!!)0 )! 
@ACE1)#@AHE1
Instead of rebuilding in Breskens, Van Melle decided to relaunch the
company with a new purpose-built facility in Rotterdam in 1946. The new
facility therefore gained access to Rotterdam's busy port, facilitating its
international sales. By 1950, Van Melle had reached full production
capacity at the new site. During this period, however, the company decided
to narrow its range of confectionery in order to target its efforts on a smaller
group of core candy brands. The period also marked the beginning of Van
Melle's true internationalization.

The company launched initiatives in a number of new markets through the

1950s and into the 1960s and 1970s. Among these was the introduction of
a new packaging form for its Fruittella and Mentos candies, which were
quickly becoming company flagships. Both candy types had previously
been packaged as loose, bagged candies. In the 1950s, however, Van
Melle developed a new roll-type packaging, easier to stock for grocers and
easier to carry for consumers. The new packaging helped turn both candies
into top-selling international brands.

Van Melle backed up its international expansion with the opening of a

series of foreign subsidiaries. In 1956, the company established its first
foreign manufacturing plant, opening a facility in Brazil. The company also
began opening sales and marketing subsidiaries in order to be closer to
local markets, setting up in Belgium in 1950, Germany in 1953, and France
in 1960, before expanding elsewhere. The company entered the United
States in 1972, establishing a manufacturing and marketing subsidiary in
Erlanger, Kentucky, that year. Later in the 1970s, Van Melle expanded into
Asia as well, ultimately setting up subsidiaries in India, Singapore, and
Vietnam. In addition to producing and promoting Van Melle's core brands,
the new subsidiaries also helped the company adapt its recipes and
product offering for these local markets.



',!$, )!1#&1!#@ABE1
Van Melle launched a new expansion phase in the 1980s, seeking to build
up its range of brands and expand its production capacity. In 1982, the
company made its first acquisition, buying up a small candy producer,
PPW, based in Gilda, and acquiring that company's Mintina and
Dropmintina brands as well. By then, the company had reached the limits
of its production capacity at its Rotterdam site. The company went looking
for a new site, buying up a large factory site in Breda. Fueling this
expansion, Van Melle listed its shares of the Amsterdam Stock Exchange's
Parallelmarkt in 1983.

At the same time, the company retained its interest in new growth
opportunities. One of these came in the early 1980s when the company
formed a relationship with Italian confectionery company Perfetti, and the
two companies began developing joint-marketing efforts. Van Melle also
added a number of acquisitions through the 1980s and into the 1990s,
including a candy factory from Gebr. Verduijn, which marked the
company's return to Breskens as well. The company then purchased Peco
Suikerwerken, based in Den Haag, followed by the acquisition of Look-O-
Look, a maker of lollipops and bagged candies, based in Ridderkerk, in
1987. Meanwhile, Van Melle also worked on the in-house development of
new candy types and brands, leading to the launch of Airheads candies in
the United States in 1986.

$!$ 5  1!#@AAE1 !DEEE1

Van Melle's expansion continued through the 1990s, notably with an entry
into the Eastern European markets. After establishing local sales and
marketing subsidiaries in these countries, Van Melle sought to acquire
production capacity as well, and in 1998 the company acquired VDG, which
operated in the Czech Republic, Slovakia, and Hungary. The company
opened a production facility in Poland, and a packaging plant in Russia,
then established a factory in Indonesia. The company also entered India
and China, establishing sales and production subsidiaries in those markets
in the late 1990s. The company built its first Chinese factory in Shenzen in
1997, launching production in 2000. At the end of the 1990s, Van Melle's
expansion program led it to acquire a number of new businesses, including
Klene in the Netherlands, Candy Tech in the United States, and Fundy in
Hungary and Romania, all in 1999. Also in that year, Van Melle acquired
the Wybert brand of throat lozenges, including a production site in the
Netherlands, from GABA International of Switzerland.

Van Melle moved its stock listing to the Euronext Amsterdam Stock
Exchange's Officiële Markt in 2000. By then, Perfetti was already a major
shareholder in the company, having bought a 36 percent stake in Van
Melle in the early 1990s. Soon after Van Melle's listing, the two companies,
which had continued strengthening their marketing partnerships over the
last decade, agreed to a full-fledged merger. In 2001, Perfetti acquired 100
percent control of the company and removed its public listing. The newly
enlarged company then adopted the name Perfetti Van Melle.

+ )13 
$!!!$1)$3# !,,

Perfetti had been founded in the town of Lainate, Italy, in 1946, by brothers
Ambrogio and Egidio Perfetti. The brothers initially called their company
Docificio Lombardo, and the small company began producing candies and
confectionery for the nearby market in Milan. The Perfettis grew quickly,
expanding their factory into the 1950s.

The product that put the Perfetti name on the international candy map was
launched soon after the company's founding. The arrival of the American
army in Italy during World War II had introduced Italians to a novel new
confectionery--chewing gum. The Perfettis became the first in Italy to begin
producing chewing gum, adopting the name "Brooklyn" for their product.
The brand became an instant success across the country and was to
remain Italy's top-selling chewing gum into the 21st century. The company
later changed its name to Perfetti. In the 1960s, the company expanded its
production, notably through the founding of Gum Base Company SPA,
which specialized in developing bases for Perfetti's and other companies'
chewing gum.

By the end of the 1970s, Perfetti boasted a strong portfolio of confectionery

brands, including Alpenliebe, Babol, Morositas, Vigorsol, and Happydent.
The company backed up its products with innovative advertising campaigns
that enabled its brands to become leaders in their categories. Perfetti also
expanded into international markets, achieving strength particularly in
southern Europe. This position made the company an attractive partner for
Van Melle, which focused more strongly on northern Europe, leading the
companies to develop their first cross-marketing efforts in the early 1980s.
Perfetti launched its own acquisition drive in the 1980s, acquiring Caremoli
and its Golia brand; lollipop and candy maker La Giulia; and Gelco, which
specialized in jelly candies and licorice. Perfetti also developed its
presence in the international markets, acquiring Belgium's Frisk in the mid-
1980s and opening its first foreign factory in Greece in 1982. Through the
end of the 1980s and into the 1990s, Perfetti added production sites in
Turkey, India, and China, an expansion that culminated in the opening of a
modern production site in Brazil in 1999.

The merger with Van Melle, which cost Perfetti EUR 966 million, provided
the new company with total sales of more than EUR 1 billion. The
combined operations of Perfetti and Van Melle also gave the company a
particularly strong position in many of the markets in the Asian region, such
as China and India, where the company held number one or two positions
in several categories.

Perfetti Van Melle continued enhancing its market position, notably through
the creation of new marketing alliances, such as the creation of a joint-
venture distribution business with Spain's Chupa Chups for the U.K. market
in 2005. Also in 2005, Perfetti Van Melle announced its plans to build a
factory in Russia. By then, too, the company's continued success in the
United States had led it to announce plans to nearly double the size of its
Erlanger, Kentucky, site. Perfetti Van Melle looked forward to a sweet
future in the 21st century.
 
‘‘ ‘
 ‘
‘

This project is based on the comparative study consumer behavior

towards ITC Candyman and Perfetti Van Melle. Objectives of the study
are:

 The other objective is to know about the customer satisfaction

level associated with the product and the customer preference
level.

 To increase customer satisfaction and recapture the market share

by fulfilling the customer needs.

 To study the factors affecting the consumption pattern.

 ‘‘ ‘
 ‘
‘

As learning is a human activity and is as natural, as breathing. Despite of

the fact that learning is all pervasive in our lives, psychologists do not agree
on how learning takes place. How individuals learn is a matter of interest to
marketers. They want to teach retailers in their roles as their roles as
consumers. They want retailers to learn about their products, product
attributes, potential consumers benefit, how to use, maintain or even
dispose of the product and new ways of behaving that will satisfy not only
the consumer¶s needs, but the marketer¶s objectives.

The scope of my study restricts itself to the analysis of retailer &

wholesalers preferences, perception and consumption of ITC Candyman
and Perfetti Van Melle. There are many other brands of candies available
but my study is limited to two major players of candies leaving behind the
others. The scope of my study is also restricts itself to Saharanpur region
only.

‘
 ÷ 

This chapter describes the methodology of the study. This project is based
on information collected from primary sources. After the detailed study, an
attempt has been made to present comprehensive analysis of consumption
of ITC Candyman and Perfetti Van Melle candies consumed by the people.
The data had been used to cover various aspects like consumption,
retailer¶s & wholesalers preference and satisfaction regarding Candyman
and Perfetti Van Melle. In collecting requisite data and information
regarding the topic selected, I went to the retailers & wholesalers of
Saharanpur and collected the data.

÷'0-1$! 
The study is a cross sectional study because the data were collected at a
single point of time. For the purpose of present study a related sample of
population was selected on the basis of convenience.

÷ &,÷; !1$! 
A sample of 100 people was taken on the basis of convenience. The actual
retailers & wholesalers were contacted on the basis of random sampling.




 1 "#) 

Research work is only carried for 2 or 3 weeks.


1 "#!1'! 
This work is carried out through self-administered questionnaires. The
questions included were open ended, dichotomous and offered multiple
choices.

  ),,")! 
The data, which is collected for the purpose of study, is divided into 2
bases:
  -÷)'" The primary data comprises information survey
of ³Comparative study of retailer & wholesalers behavior towards ITC
Candyman and Perfetti Van Melle´. The data has been collected
directly from respondent with the help of structured questionnaires.
 ÷")! - ÷)'" The secondary data was collected from
internet and references from books.

  ! ,-11 
The data is analyzed on the basis of suitable tables by using mathematical
techniques. The technique that I have used is bar graphs.
 ÷/÷ 
‘

In attempt to make this project authentic and reliable, every possible aspect
of the topic was kept in mind. Nevertheless, despite of fact constraints were
at play during the formulation of this project. The main limitations are as
follows:

 Due to limitation of time only few people were selected for the study.
So the sample of retailers was not enough to generalize the findings
of the study.

 The main source of data for the study was primary data with the help
of self-administered questionnaires. Hence, the chances of unbiased
information are less.

 People were hesitant to disclose the true facts.

 The chance of biased response can¶t be eliminated thoh all

necessary steps were taken to avoid the same.
  ÷÷
 ÷÷/÷ 

÷ /÷

 .,) @

÷ ,)+# !1 1 )

'. )+ 95 5
1&)!!1

@EE AG
AE
BE
HE
FE
GE '.)+1&)!!1
CE
IE
DE
@E G
E
1 )

)@

From the above analysis of the given sample of 100 respondents it is

concluded that out of 100 people 95 people sell candies while only 5
people don¶t sell candies.

/
 .,) D

÷ /


÷ ÷
+ 67
 !- ! 28

HE FH

FE

GE

CE +
DB
IE  !- !

DE

@E

E
/
÷ ÷
‘

# ) D

From the above analysis of given sample of 95 respondents who sell

candies it is concluded that only 67 people prefer to sell Perfetti while 28
people likes to sell ITC Candyman.

c   c

c    c
c

 

÷'.
 !1 J)+1&)!!

Fruitee Fun 42
Natkhat Mango 48
Maha Mango 38
Eclairs 62
Cofitino 52
Toffichoo 59
Minto fresh 56


M  !"#$#%

  
‘


‘

‘
  




 

  
‘

From the above analysis of given sample of respondents who eat ITC
Candyman candies it is concluded that mostly people has purchased
Eclairs sub-brand of ITC Candyman while fruitee fun is least purchased by
the people.
  ÷//
 .,)C

÷'.
 !1 J)+1&)!!

Alpenliebe 89
Center Fresh 82
Fruit Tella 56
Mentos 67
Chlor mint 49
Chocoliebe 36
Cofitos 53

M  !"#$#%

 
 ! 
‘" 


 
#‘‘ $


‘ 

‘

  !


   
 
‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘ ‘

# )C

From the above analysis of given sample of respondents who eat perfetti
candies it is concluded that mostly all sub-brands are purchased by people
but top most is Alpenliebe while chocoliebe is least purchased by people.


 //
 .,)G

//  
 /

÷÷
HARD ‘

NUTTIES ‘

CRUNCHY ‘

CHEW 
‘


   



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()*
&( %+
 %,

‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

# )G

According to the above analysis it is concluded that most of the people

likes to eat hard candy and chew form of a candy is least preferred.


 /÷/

 .,) F

÷K  
/÷÷ 

POLLY BAG 28

JAR 48

JUMBO JAR 19


  









 (0&‘.‘
 &*-. ' *





-.//+‘01 2& 2(0.‘2&

# )F

According to the above analysis it is concluded that out of sample of 95

people who sell candies likes to buy jar, then comes the Polly bags and
jumbo jars are least preferred.


  //÷
 ., H
 //÷  
/÷÷
FREE GIFTS 52
PRICE OFFER 23
ANY OTHER 20



  


&‘1)*
-&)‘.&‘

 +‘.%&


# )H

According to the above analysis it is concluded that out of sample of 95

people who sell candy 52 are attracted by free gifts, 23 by price offers while
20 were attracted by some other reasons.


 /÷// ÷
 ., B
/÷  
/
÷÷
ADVERTISEMENT 67
SUGGESTION FROM CUSTOMERS 17
ATTRACTIVE DISPLAY 12
SALESMAN ADVICE 14
BRAND AMBASSADORS 10
INGREDIENTS 28
‘


  




 



    
 (0&‘.‘
&*-. ' *

‘
# ) B
According to the above analysis it is concluded that Advertisement is the
best measure to attract retailers to purchase more. Its impact is much more
than other factors. While customers and brand ambassadors also play a
significant role in this regard.

 /÷
 .,) A
/÷  
/÷÷
TELEVISION 75
NEWSPAPERS 10
BROCHURES 5
HOARDING 8
DISPLAY 25


  






 

(0&‘.‘

 &*-. ' *
 




‘
# ) A
According to the above analysis it is concluded that television emerges as
the best media for advertisement of candies that compel consumers to buy.
It is much more than other ways as out of 95 respondents 82 are attracted
to by through television media while brochures are the least attracting
media.
 /L /÷ 
 .,) @E
/L /  
/÷÷
÷ 
ONCE IN A FORTNIGHT 16
DAILY 17
WEEKLY 39
MONTHLY 18
QUARTERLY 5


  


4(&&/+ 

. %/+ 

,3/+  (0&‘.‘
&*-. ' *
')/+ 

. ‘) ‘‘.& )1% 

    

‘‘
‘
According to the above analysis it is concluded that mostly retailers
purchase candies weekly. Only 15 out of 95 purchase candies quarterly.
 ÷


 .,) @@
/  
/÷÷ ‘

BELOW 25paise 6
25paise-50paise 23
50paise-Rs1 51
Rs1-Rs2 4
ABOVE Rs2 11
‘


  

 


 
 
 
 (0&‘.‘
 &*-. ' *

# ) @@

According to the above analysis it is concluded that the retailers thinks
50paise-Rs1 is the reasonable price of a candy. So it must be worthwhile to
know this as it may effect the sale of candies.


 ÷ >÷
  
 ., @D

  ÷  
/÷÷
POSTPONE YOUR PURCHASE 26
SWITCH OVER TO OTHER 24
BRANDS
GO TO OTHER SHOP FOR 45
SEARCH OF PREFERED
BRAND


  


-.*-. ‘+.(&‘
-(&%*


*,)%‘.5&‘.‘.%&‘
  0& '*

 1.‘.‘.%&‘*%.-‘.&‘
*&%‘.‘-&&'‘
0& '

#  @D
According to the above analysis it is concluded that mostly people are loyal
to the brand as in the absence of availability of their preferred brand mostly
people like to search for it or they are ready to postpone their purchase.
  
 /÷

 RETAILER RESEARCH:
Retailer research deals with retailer and
their problems and solution to the problems. In this I came to know
about the retailers need and expectation levels regarding products
and ascertainable levels of satisfaction.

 PRODUCT RESEARCH:
Under product research I came to know
about the modification which retailers wants as to the quality, packing,
shape, color, and quantity etc of their favorite candy.

 PRICING RESEARCH:
 This includes ability to consume, to pay for
the product, how much a person can spend on his/her favorite candy. In
this I have tried to find out retailer¶s price expectations and reactions.

 ADVERTISING RESEARCH:
Under this I have concluded that
whether the advertisement appeals the retailers or not. This also
includes evaluating and selecting the proper media-mix and
measuring advertising effectiveness.
 ÷ ÷÷
÷÷ 
* ITC is one of India's foremost private sector companies.

ü  leveraged it traditional businesses to develop new brands for new

segments. . For example, ›
used its experience of transporting and
distributing tobacco products to remote and distant parts of India to the
advantage of its FMCG products. ITC master chefs from its hotel chain are
often asked to develop new food concepts for its FMCG business.
3.ITC ranks among India's top 10 Most Valuable (Company) Brands.

4.It has market capitalization of nearly US $ 18 billion.

U 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.

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

products.

 ITC is a diversified company trading in a number of business sectors

including cigarettes, hotels, paper, agriculture, packaged foods and
confectionary, branded apparel, personal care, greetings cards,
Information Technology, safety matches, incense sticks and stationery.


÷÷÷ 
* 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 name,
despite the negative connection of tobacco with poor health and premature
death.

ü  To fund its cash guzzling FMCG start-up, the company is still

dependant upon its tobacco revenues. Cigarettes account for 47 per
cent of the company's turnover, and that in itself is responsible for 80%
of its profits. So there is an argument that ITC's move into FMCG (Fast
Moving Consumer Goods) is being subsidized by its tobacco operations.
Its Gold Flake tobacco brand is the largest FMCG brand in India - and
this single brand alone holds 70% of the tobacco market.


 ÷
* Core brands such as Aashirwaad, Mint-o, Bingo! , Candy man , Sun
Feast (and others) can be developed using strategies of market
development, product development and marketing penetration.

ü ITC is moving into new and emerging sectors including Information

Technology, supporting business solutions.

U 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 100,000
villages. Take a look at e-Choupal here
http://www.itcportal.com/agri_exports/e-choupal_new.htm
ITC leverages e-Choupal in a novel way.
4.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.

5.Chairman Yogi Deveshwar's strategic vision is to turn his Indian

conglomerate into the country's premier FMCG business. Per capita
consumption of personal care products in India is the lowest in the world
offering an opportunity for ITC's soaps, shampoos and fragrances under
their Wills brand.

÷ 
  The obvious threat is from competition, both domestic and international.


ü ITC's opportunities are likely to be opportunities for other companies as

well. Therefore the dynamic of competition will alter in the medium-term.
Then ITC will need to decide whether being a diversified conglomerate is
the most competitive strategic formation for a secure future.

U The laws of economics dictate that if competitors see that there is a solid
profit to be made in an emerging consumer society that ultimately new
products and services will be made available. Western companies will see
India as an exciting opportunity for themselves to find new market
segments for their own offerings.

Duplicate items are available in abundance at much lesser rates. This

affects the company financially and adversely affects its goodwill.
÷ ÷÷÷


 Company should concentrate more on television for advertisement,
as mostly people get attracted through television only.

 For promotional offers, company should go for free gifts rather than
going for other ways.

 ITC CANDYMAN should concentrate on its taste as people are least

satisfied with it .

 People are unsatisfied with the quality of candy so companies should

concentrate in this regard also.






  ÷
A survey of the people has been conducted to know the liking
pattern of the ITC Candyman and perfetti. It is observed that overall
mostly retailers like to buy Perfetti candies rather than candyman. It is
concluded that mostly people preferred Eclairs of ITC Candyman due
to its flavor/taste, quality and image and due to its hard form. Some
people often like to have a candy with good flavor and quality so they
are going towards alpenliebe and center fresh (chewing gum) due to
its taste.
It is thus concluded from the facts collected that mostly people refer
to buy jars of their favorite candy and sometimes some of them go for
Polly bags and jumbo jars.
 L ÷

L ÷    2  ÷ >÷

/÷/


÷  ÷

Name:
Address:

Gender:

Phone Number:

Marital status:

Education:

Profession:

Que1. Do you sell candies?

Yes No
Que2. Which brand of candy do you prefer?

ITC Candyman Perfetti

Que3. Which sub-brand you have purchased?

ITC Candyman Perfetti

Cofitino Alpenliebe

Natkhat Mango fruit teela

Fruitee Fun Center fresh

‘ Mint-o-Fresh Mint Candy

Eclairs Chocoliebe

Que4. Rank the sub-brands of candies according to your preference? (1 for

most preferred)

ITC Candyman Perfetti

Cofitino Alpenliebe

Natkhat Mango fruit teela

Fruitee Fun Center fresh

‘ Mint-o-Fresh Mint Candy

Eclairs Chocol

Que5. How much importance do you give to the following factors when you
purchase a candy? (Tick in the desired column)
Factors Very Important Normal Least None
Important Important

Flavor/taste
Price
Quality
Packaging
Form
Brand
Image
Color
Shape
Quantity

Que6. Which form of a candy do you sell?

Hard Nutties

Crunchy Chew

Que7. How much are you satisfied with the following factors in your
preferred candy? (Tick in the desired column)
Factors Very Satisfied Normal Least Can¶t Say
Satisfied Satisfied

Flavor/taste
Price
Quality
Packaging
Form
Brand
Image
Color
Shape
Quantity

Que8. What pack do you purchase?

Polly bags Jar Jumbo Pack

Que9. Which promotional offers attract you most?

Free gifts Price Offer Any other

Que10.Which of these factors affects your purchase?

  Advertisement

 Suggestion from customers

 Attractive Display

 Salesman Advice

 Brand Ambassadors

 Ingredients

Que11. Which media of advertisement influence your purchase?

Television Newspapers Brochures

Hoarding Display

Que12. How frequently do you purchase candies?

Once in a fortnight Daily

Weekly Monthly

Quarterly
 Que13. What according to you is the reasonable price of candy?

Below25paise 25paise-50paise 50paise-Rs1

Rs1-Rs2 Above Rs2

Que14. If your preferred brand is not available for repeat purchases then
what will you do?

 Postpone your purchase

 Switch over to other brand
 Go to the other seller to search for your preferred brand

Que15. If another brand of the same product appears in the market, will
you prefer to stop buying this brand and buy the new brand?

No, not at all I may consider

No, I shall not can¶t say

Que16. If you don¶t like to change to the new brand, then what are the
reasons for continuing to purchase the old brand?

÷
 &c

‘

@
÷MK÷// 

 Marketing Management by ³Philip kotler´

 Business world

D 
÷÷//

 http://en.wikipedia.org

 http://www.itcportal.com

 http://www.google.com
 

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