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Itc Sip Report-1

This document provides details of a summer internship project conducted by Adarsh Kumar at ITC Ltd. The project aimed to develop the deodorant and toilet soap business by launching new products. Kumar interned with ITC's Personal Care Products division in Patna for 2 months. During this time, he helped increase outlet coverage, identified top-performing retailers, launched new SKUs of deodorant and soap, and analyzed competition. The internship provided practical experience in conducting market research and developing sales and marketing strategies to boost product categories.

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ADARSH KUMAR
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0% found this document useful (0 votes)
193 views

Itc Sip Report-1

This document provides details of a summer internship project conducted by Adarsh Kumar at ITC Ltd. The project aimed to develop the deodorant and toilet soap business by launching new products. Kumar interned with ITC's Personal Care Products division in Patna for 2 months. During this time, he helped increase outlet coverage, identified top-performing retailers, launched new SKUs of deodorant and soap, and analyzed competition. The internship provided practical experience in conducting market research and developing sales and marketing strategies to boost product categories.

Uploaded by

ADARSH KUMAR
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 64

TO DEVELOP THE BUSINESS OF DT(DEODORANT)

AND TS (TOILET SOAP) USING NEW LAUNCHES

A report submitted in partial


fulfilment of the requirements of
the MBA Program of Chandragupt
Institute of Management Patna
BY
ADARSH KUMAR (150006)

PGDM 2022-24

CHANDRAGUPT INSTITUTE OF MANAGEMENT PATNA

Company Guide: Mr. Atulya Jyoti Faculty Guide: Prof. Kalyan Agarwal

(Sales Executive)
SYNOPSIS: -

ITC LTD is one of the biggest FMCG companies in India. It is a group

company with many different business areas such as FMCG,

Agribusiness, Paper, IT services business, Hotel, Cardboard, Dairy

Products, and packaging retail Lifestyle. So, for this reason, I opt for ITC

when had the opportunity to take a summer internship program at this

prestigious company for 2 months in Patna. The FMCG business of ITC

LTD is divided into 4 categorize

 GR 1: Ashirwad (Atta, Salt, etc.)

 GR 2: PCP and AGMT Product (Savlon, Fiama, Aim, etc)

 GR 3: Food Division (Bounce Biscuit, Bingo Mad Angles, etc)

 GR 4: Tobacco Product (Cigarette)

I did my internship in GR 2 PCP division, and my project is to “To

develop the business of DT and TS using new launches”. Personal Care

Product products. As a part of my PGDM Summer Internship Project at

Chandragupt Institute of Management Patna, for 2 Months at Patna.


During my internship, my key working areas are:

 New Outlet Addition

 Chemist outlet coverage

 ISS outlet identification/mapping correction

 Competition Category Benchmarking

 Top outlet identification for the loyalty program (competition displays

& pay- out)

 New Launch Drive (Engage Intense)

 Focus Drive on Engage Perfume, Savlon TS, Fiama TS

 D&D reporting at the outlet level

 Dealer Board

These viewpoints push my sales in a better way. The areas I Covered

with my DS (Mr. Dharmendra Jee) are: -

• Ambedkar path

• Ashiyana 1

• Maurya path

• Polson
• Ashiyana 2

• Vijay Nagar

During this internship, I visited more than 350 outlets from my Beat and

approx. 150 more other DS’s (ISS outlets, Wholesales, Chemist, and

Grocery) which were already tapped but were not selling all the SKUs of

Savlon, Fiama, Engage Perfume, etc. Apart from this, I have introduced

Hangers for Engage Intense Deo and Fiama soap in almost all the shops in

my beats, in order to increase the Visibility of our products, and this step,

was proven right which leads to bulk orders for PCP Products with hangers

by the Retailers. Apart from these Fiama soap 40 rupees, SKUs were

launched at all the shops, which include Grocery, and ISS counters. These

all tasks were accomplished in a planned way, first I used to collect the

Market Planner sheet to know how many outlets I have to cover on that

particular day and I also use to carry the schemes sheet of that month to

know all the present schemes related to specific products. Then along with

the assigned DS (Dharmendra Jee), I use to visit the shops of that particular

beat, and then I use to observe the different aspects of Competitor Products,

Schemes, Visibility, D&D, etc. And analysed the market accordingly and

asked questions from the retailers regarding PCP Products to know what our

products are lacking and what our competitors are offering better than us as

we don’t hold as much market share as HUL and Reckitt Benckiser and I
observed that Godrej is also coming to the race. Then I used to observe

whether UOB products are placed in that shop or not and try to persuade

shopkeepers to place the UOB products if they are out of stock.


DECLARATION

I hereby declare that the Summer Internship Project entitled “To

develop the business of DT and TS using new launches” submitted to

Chandragupt Institute of Management Patna in partial fulfillment

of the requirements for the award of Post Graduate Diploma in

Management is my original work and has been prepared by me under

the general supervision of my Industry Mentor Atulya Jyoti (Sales

Officer) and Faculty Supervisor prof. Kalyan Agarwal. I have not

submitted the work earlier, either to any other Institute or University for

the award of any diploma, degree, or certificate. I have followed the

CIMP guidelines to prepare the report. I have also given due credit to the

sources of data, theoretical analysis, text and other materials by citing

them in the text of the report and producing the details in the reference

section.

Place: CIMP, Patna (Signature of the Student)

Date: Adarsh Kumar

Roll no: 150006


CERTIFICATE BY FACULTY GUIDE

This is to certify that the work incorporated in this Summer Internship Project

entitled “To develop the business of DT (Deodorant) and TS (Toilet Soap) using

new launches,” by Mr. Adarsh Kumar bearing Roll no 150006, comprises the

results of his independent and original investigations carried out under my

supervision and guidance in partial fulfilment of the requirements for the award of

Post Graduate Diploma in Management. To the best of my knowledge, the work

has not been submitted earlier, either to any other Institute or University for the

award of any diploma, degree or certificate.

Place: Patna Signature of the Faculty Guide

Date: …/…/…. Prof. Kalyan Agarwal


CERTIFICATE BY INDUSTY MENTOR

This is to certify that Mr. Adarsh Kumar bearing Roll no. 150006 a student of

Chandragupt Institute of Management Patna, has completed the Summer

Internship Project entitled “To develop the business of DT (Deodorant) and TS

(Toilet Soap) using new launches” under my supervision and guidance in partial

fulfilment of the requirements for the award of Post Graduate Diploma in

Management for a period from 01/05/2023 to 01/07/2023. The work has not been

submitted to any other institution or university for the award of any degree/diploma

or certificate to the best of my knowledge.

Place: Patna (Bihar) (Signature of the Industry Mentor)

Date: …/…/…… (Name of the Industry Mentor)

(Designation of Industry Mentor)


ACKNOWLEDGEMENT

The Summer Internship Program is a very important and necessary way to

acquire practical knowledge because the student's knowledge is not met

until he has acquired theoretical and practical knowledge. For the

completion of my research, I cannot deserve all the praise. Many people

have helped me to provide valuable information, advice, and guidance to

complete this report on time. I want to show my gratitude to my institute

CIMP for giving me the opportunity to utilize my classroom learning in a

real business scenario. I am most grateful to Mr. Atulya Jyoti, Area Sales

Executive, and my project guide, for believing in me and giving me

guiding me and giving his full support for carrying out the project which

I intended to do. I am thankful to my project mentor Prof. Kalyan Agarwal

for his guidance and invaluable suggestions throughout the course of the

project. I would also like to thank Mr. Pushan Ghose, Area Sales Manager

of Patna, Supervisors of Imrita Baijnath Enterprises (WD), and the

Distributor Staff especially Mr. Dharmendra Jee (DS) who teach me about

the market on the ground level and helped in making the data collection

process convenient for me with inspiring suggestions. Last but not the

least I am deeply thankful to ITC LTD for giving me this wonderful

opportunity (as an intern) to be a part of their organization.

Thank You
Contents

SYNOPSIS: ................................................................................................................................... 2
DECLARATION ......................................................................................................................... 6
CERTIFICATE............................................................................................................................ 7
CERTIFICATE FROM ITC ....................................................................................................... 8
ACKNOWLEDGEMENT ........................................................................................................... 9
ABBREVIATIONS: ....................................................................................................................12
CHAPTER 1: INTRODUCTION ............................................................................................... 13
About The Company:..............................................................................................................13
Vision Statement .................................................................................................................14
Mission Statement ..............................................................................................................14
Product Profile ........................................................................................................................14
ITC Business ...........................................................................................................................15
CHAPTER 2: OVERVIEW OF THE STUDY ...........................................................................16
About Internship: ....................................................................................................................16
Objective of the Internship: ....................................................................................................17
Relevance of the Study of Consumer Behaviour: ...................................................................18
SCOPE OF THE STUDY: ......................................................................................................19
CHAPTER 3: ABOUT THE ORGANISATION ........................................................................20
History and Diversification and different Portfolios ...................................................................20
Packaging, Printing & Paperboard Business: ........................................................................21
ITC HOTELS: ........................................................................................................................22
Agri-Business: .........................................................................................................................22
Speciality Paper: .....................................................................................................................23
Stationary: ...............................................................................................................................23
Lifestyle Retailing: ..................................................................................................................24
Information Technology: ........................................................................................................24
Branded Packaged Food: ........................................................................................................25
Safety Matches: .......................................................................................................................26
Agarbatti: ................................................................................................................................27
Personal Care Product: ...........................................................................................................27
E-Chaupaal: ............................................................................................................................29
CHAPTER 4: LITERATURE REVIEW ...................................................................................31
Introduction: ...........................................................................................................................32
Consumer Decision Making Model: .......................................................................................33
Consumer Behaviour as a Social Decision-Making Process:..................................................35

CHAPTER 5: METHODOLOGY .............................................................................................. 37

Research Design / Type of Research: ......................................................................................37

Sampling Technique: ...............................................................................................................38

Collection of Data/ Type of Data: ............................................................................................38

Primary Data ......................................................................................................................38

Secondary Data ...................................................................................................................38

Sampling Instruments: ............................................................................................................39

Sampling Unit .....................................................................................................................39

Sample size/ No. of Respondents: ............................................................................................39

Launch Product Drive: ...........................................................................................................43

CHAPTER 6: RESULT ANALYSIS AND DISCUSSION ............................................................

FINDINGS & SUGGESTIONS: ................................................................................................

Finding: ……………………………………………………………………………………………

Suggestions: ................................................................................................................................

CHAPTER 7: LIMITATIONS OF THE STUDY..........................................................................

Learnings: ..................................................................................................................................

CHAPTER 8: CONCLUSION.......................................................................................................

REFERENCES ..............................................................................................................................
ABBREVIATIONS

PCP : Personal Care Product

DS : Daily Salesman

PTR : Price to Retail

WD : Wholesale Distributor

MAR : Market Accompaniment, Report

SKU’s : Stock keeping unit

AGMT : Agarbatti and Matchsticks

OOS
: Out of Stock

SKU
: Stock Keeping Unit

AE
: Area Executive

VAJRA : The program that salespeople use on their mobile phones to get
orders from consumers.
POP : Point of Purchase

USP : Unique selling proposition


DSPM : Daily Sales Parameter Matrix
UOB : Unique Outlet Billed
Chapter 1: INTRODUCTION

About the company:

ITC is the third-largest industry in India, with sales of home and personal

care products accounting for 50% of all FMCG sales. The Company is

recognised as one of India's most valuable business corporations, with a

gross revenue of 69,481 crores and a net profit of 18,753.31 crores (as of

31.03.2023). The primary driver of this sector's overall revenue is the urban

segment, which represents 57% of the FMCG industry's total sales in India.

On the other hand, in recent years, the FMCG industry in rural India has

expanded more quickly than that in urban India. In these rapidly

developing semi-urban and rural areas, fast-moving consumer goods

(FMCG) make up half of all rural spending. The FMCG industry, also

known as consumer-packaged goods, is responsible for the production,

distribution, and marketing of fast-moving consumer goods. Products for

home and personal care account for 50% of industry revenue, healthcare

represents 31-22%, and the remaining 18-19% comes from other sources.

While I was working as an intern, I noticed that the In Patna, the industry

for agarbatti and matches is dominated by the Mangaldeep brand. In

contrast, Savlon is vying for a dominant position in the city while the HUL

brand Dettol rules the soap industry. Over the previous ten years, India's
FMCG sector has grown at a rate of 21.4% annually. Revenues in the

FMCG industry rose significantly from US $31.6 billion to $52.8 billion

between 2011 and 2018. By 2023, it is expected that the FMCG sector in

India will have grown at a CAGR of 29.5% and will total $103.7 billion in

US dollars. Additionally, it's predicted that the rural FMCG market will

grow at a compound annual growth rate of 14.6% between 2020 and 2025,

with a potential market size of $100 billion to $220 billion. Indian retail is

expected to grow to $1.10 trillion in value by 2023 from $842 billion in

2017. A 22–26 percent annual growth in modern commerce is expected,

which will boost FMCG income. The FMCG sector generated 3.5 lakh

crore in revenue in FY20, and by 2023, it is anticipated to reach $103.7

billion in US dollars. Nielsen reports that during the quarter of January

through March 2023, the FMCG industry in India grew by 9.4%. The

demand from consumers and the expansion of value brought about by

rising product prices, particularly for necessities, were the main factors

behind this increase. Urban markets experienced their first expansion in

two quarters during the same period, while rural markets grew by 14.6%.

Demand for FMCG products would primarily come from rural areas. This

makes up about 36% of all FMCG spending. Rural India's growth

rebounded by 10.6 percent in the third quarter of FY 23 as a result of

numerous government initiatives (such as packaged staples and hygiene

categories), high agricultural production, reverse migration, and a lower


unemployment rate. Indian food sales are predicted to increase from $263

billion in the 2021–22 decade to $470 billion by 2025.

Vision Statement

Sustain ITC’s position as one of the India’s most valuable corporations

through excellent performance, creating growing value for the Indian

economy and the Company’s stakeholders.

Mission Statement

To enhance the wealth generating capability of the enterprise in a

globalizing environment, delivering superior and sustainable stakeholder

value.
CHAPTER 2: OVERVIEW OF THE STUDY

About Internship: -

Understanding the distribution Channels in FMCG Industry and Do the

Competitive analysis of ‘Deodorant and Toilet Soap’. This a project in the

internship that would focus on increasing the outlet coverage of the ITC personal

care products along with a benchmarking process that would bring out a

competitor’s analysis and further lead to development of a model that would

strengthen the services of the personal care products of ITC as an FMCG

Company in the markets of Patna. Gaps will be identified and rectified. An

internship like this that combines both field work and office work ought to give

the accurate picture of the product its retailers and consumers in the market. The

customer at the ground level has to be understood, his buying behaviour. This

internship remains confined to only three types of products from three big brand

Savlon, Engage, and Fiama. The study in Engage consists of Pocket Perfume,

Perfume Spray, and Deodorant. The soaps in the brand Savlon Cool and Fiama

have been included and in deodorant Engage are being studied with the help of

field survey, the response of the retailers and consumers. There have been more

than 200 hundred stores in the Warehouse Distribution region of Digha area I was

visited. Out of which only twenty of them have turned out to be the cosmetic
(shringar) stores, with forty of them also being in both the channels of grocery

and cosmetic both. Various new products have been introduced and also data have

been collected from them with the help of the questionnaire that comprises of the

questions related to the availability in terms of range and depth of the products of

ITC as well as its competitors. The question related to Visibility have been asked

in terms of salesman arranging the window display and bringing all the range

display during the visit. The questions related to frequency of visit, market credit,

range shortage, supply chain problem and expiry return have been asked

regarding the Distribution. Sales Person’s skills have been enquired in terms of

his ability to solve problems, behaviour of salesman, frequency of his visit as well

as his selling skills. The questions related to scheme convenience and

implementation were asked in the questionnaire along with the consumer

promotion consumers. Then for cosmetic stores a model is made to strengthen the

personal care sales.

Objective of the Internship: -

The objective of the study analyses display, visibility of Products, study

about its benchmark competitors and understand the distribution channels.

In order to understand the FMCG sales, distribution channels and

developing the business prospects, I was focused on understanding the


whole ecosystem of the corporate and getting the basic idea of all the key

roles and responsibilities involved in the ecosystem.

Below mentioned are the objectives points: -

 Competitive analysis of Personal Care Products (Savlon Category)

 Compare the visibility and display offers provided by

different competitors.

 To develop business prospects and finding all alternative sources

of Personal Care Product sale.

 To analyse the coverage gap of Fiama and Savlon Cool and finding

out the range gap, depth gap of Fiama and Savlon Cool in Patna

market.

 Analyse the coverage void in the Patna market for Engage.

 Analyse Engage's lack of market visibility in Patna.

 Evaluate the visibility and availability of the Competitor's product

on the market.
Relevance of the Study of Consumer Behaviour: -

Buying decisions are made frequently by consumers. As a general rule,

most businesses are interested in learning more about their customers and

their purchasing habits. However, it is not an easy process to learn about the

purchasing behaviour of consumers. Marketers are constantly trying to

figure out how people will react to different kinds of marketing messages.

You have a huge advantage over your competitors if you know how

consumers respond to varied product features, prices and advertising

appeals. The stimulus-response model of buyer behaviour serves as the

starting point for this study. The four Ps of marketing: product, pricing,

location, and promotion, make up the marketing stimulus set. The buyer's

environment is also influenced by economic, technological, political, and

cultural factors. You can see how these inputs are transformed into

observable buyer responses: product choice, brand choice, dealer

selection, purchase time and purchase amount. Marketers want to know

how stimuli are transformed into responses in the consumer's black box,

which has two parts. First, the buyer's personality and background shape

his or her responses to the stimuli. Second, the decision-making process

of the buyer has an impact on the buyer's behaviour.


SCOPE OF THE STUDY: -

This report will help you understand how ITC's new consumer products

(FMCG) are viewed by consumers.

• It also provides a window into the many variables that go into making a

purchase choice. Consumer expectations are explored in this report, as

well as the extent to which they were met.

• Retailers and businesses can benefit from this report by better

understanding consumer behaviour and how to better please customers. To

find out if they'd refer them to someone else.


CHAPTER 3. ABOUT THE ORGANISATION

History and Diversification and different Portfolios

On August 24, 1910, ITC officially opened its doors as the Royal Tobacco

Company of India. Imperial Tobacco of India, which was established in 1970 as

a limited company, changed its name to India Tobacco Company Limited and

then to I.T.C. 1974 Limited as the government began to gradually seize the

company's property. The company name was changed on September 18, 2001 in

recognition of the company's varied business portfolio, which includes hotels,

special papers and papers, packaging, agribusiness, information technology,

food, body care, tobacco and cigars, designer clothing, educational products and

stationery, incense sticks and security competitions, and incense sticks. The
organisation is now known as "ITC Limited." A formal abbreviation or acronym

for "ITC" is no longer in use.

Packaging, Printing & Paperboard Business: -

ITC established its Packaging and Printing division in 1925 as part of an

upstream integration strategy for the business's Cigarette division. It is

currently the largest state-owned packaging company in the nation. It was

founded in 1979 after ITC Bhadrachalam Paper Boards Limited was sold.

Bhadrachalam Paper Boards Division was established on March 13,

2002, following a merger with a significant corporation. The business

now goes by the name Cardboard & Specialised Paper Division as a

result of the division's merger with the Tribeni Fabrics Division in


November 2002. Thanks to ITC's innovative technology and productivity,

we have the best carton manufacturing strategy in the world.

ITC HOTELS: -

The company's first venture into the

hospitality industry was in 1975, when it

purchased a motel in Chennai and renamed it

the "ITC Welcome Hotel Chola we come

Organization." This location is now known as

"my Fortune, Chennai." The strategy taken by

ITC toward commercial hosting firms is

outlined in the following concept of making a

contribution to the nation. ITC's commercial

endeavours play more of a guiding role and

involve more than a one hundred real estate and controlled residences in

India under the control of four different manufacturers, notably hotels in

India the luxury collection, welcome hotels, Fortune hotels, and welcome

heritage hotels all fall under this category.


Agri-Business: -

1990 was the year that the

corporation decided to

capitalize on its agricultural

supply skills by establishing an

agrifood division with the

intention of exporting

agricultural products. ITC's

second largest exporter of agricultural products, with an export value of

more than Rs. Thousand Crores (Rs 10 billion).

Stationary: -
ITC completed the acquisition of Tribeni Tissues Limited in the year 1990. This

company specialised in the production of paper and was a significant provider

of tissue paper to the tobacco industry. The newly combined company will be

known as the Tribeni Tissue Division (TTD). In November of 2002, TTD

amalgamated with Bhadrachalam Paperboards division to form what is now

known as the Paperboards & Specialty Papers division. This was done with the

intention of maximising strategic and operational synergy.

Lifestyle Retailing: -

ITC entered the lifestyle retail market in 2000 when it

introduced its Wills Sports line of cosy clothing for

both men and women. Since then, the Wills Lifestyle

shop network has expanded its product line to include

vintage clothing from Wills Club and Wills Classic

(2002). shifts at night (2003). ITC introduced John

Players, its menswear brand, into a period of

prominence in 2002. The Fashion Week became India's

biggest fashion event after partnering with Wills

Lifestyle India in 2006.


Information Technology: -

In 2000, ITC converted its profile manufacturing company into a wholly- owned

subsidiary, ITC InfoTech India Limited, in order to explore expansion potential

in this industry. Today, ITC InfoTech is one of the fastest growing international

IT and IT service provision groups in India and has established itself as a major

player in overseas outsourcing, providing IT services.

Branded Packaged Food: -

ITC got into the candy and commodities business in 2002, when Minto,

Candyman, and Ashirwad Ata left the market (wheat flour). In 2003, SunFest

was started when the Company got into the cookie business. With Bingo! 2007,

ITC has joined the group of snack companies that have their own brand names.

India's answer to instant noodles, SunFest Yippee, was made by ITC and came

out in 2010. In September 2014, ITC came out with Gum on Chewing Gum,

which made chewing gum more accessible. With the release of Natural Fruit

liquid B in January 2015, the company entered the market for juices and liquids

made from only fruit. ITC entered the dairy market in November 2015 when it

started selling Ashirwad Swastik Ghee. ITC's most profitable source of luxury

chocolate is Fabella candy, which came out in April 2016. With the launch of
Sunbean Gourmet Coffee in July 2016, ITC moved into the branded espresso

market. In February 2017, ITC released the ITC Master Chef Superior Safety

Condiment, which was the first style of condiment to be released in India. It is

made of spices that are safe for export and are very popular with consumers.

ITC MasterChef Shrimp came out in June 2017, when the company started

making frozen food. Farmland Potatoes, which came out in November 2017,

was ITC's first fresh vegetable product. ITC's move into the food business is a

great example of how to combine several core strengths to create a completely

new growth driver for a business. It all began when "Kitchens of India,"

gourmet Indian ready-to-eat meals, were made in August 2001. With the

departure of confectioner Segmented into, Candyman, and Ashirwad atta in

2002, ITC entered the candy and goods market (wheat flour). In 2003, SunFest

was born when the Company got into the biscuit market. In 2007, ITC made

Bingo! a brand-name snack that joined a group that was growing quickly. ITC

put SunFest Yippee! on the market for Indian noodles in 2010.

Safety Matches: -
The ITC philosophy of assisting in the improvement of the competitiveness of

the entire price chain was noticed in the Safe Match program in the year 2002.

This was done together with all of its other manifestations. ITC is currently

selling manufacturer-specific reputational protections, such as Mangaldeep and

Aim have purchased.

Agarbatti: -

Advertising Agarbatti (incense) by ITC in 2003 demonstrated the

company's commitment to the craft industry. Mangaldeep is a well-known

national emblem and should be included with a wide variety of perfumes,

including Rose, Jasmine, Bouquet, Sandalwood, and 'Scent of the

Temple.'.
Personal Care Product: -

In 2005, ITC made its debut in the business of personal care products. Over

the course of the last eight years, the "Essensa Di Wills," "Fiama," "Vivel,"

and "Superia" manufacturers have contributed to the expansion of the

personal care product category. occurs frequently and can be found all

around the nation. In May of 2013, the trading company added Engage, one

of India's first "few deodorants," to its product range. Engage was one of

India's first "few deodorants." Armenteros, a hand-rolled cigar produced by

ITC, was introduced to the Indian market in the year 2010. Armenteros

cigars can only be purchased by tobacco advertising vendors, which are

located in a small number of hotels, high-end restaurants, and exclusive

clubs.
E-Chaupaal: -
ITC's Agribusiness division, one of India's largest agricultural product

exporters, designed e-Chaupaal as part of a larger green delivery chain that

aims to pay fees to customers on a sustainable basis. The e-Chaupaal

instance is primarily intended to meet the challenging situations posed by

Indian agriculture's precision capabilities, which are characterized by

fragmented farms, sensitive infrastructure, and the involvement of

intermediate numbers, among other things.

STP Analysis

 Segmentation - Products and offerings catering to every day need of

different segment of consumers.

 Targeting - ITC focuses on every facet of the India Household Center


 Positioning - The ITC Ltd. website is described by its tagline, "Enduring

value for the country, for the shareholders."


CHAPTER 4: LITERATURE REVIEW

It is useful to start by taking into account the development of the discipline

of consumer research and the various paradigms of thought that have

influenced it in order to create a framework for the study of consumer

behavior. As discussed in this article, a collection of dimensions can be

identified in the literature, which can be used to characterize and separate

the diverse viewpoints on consumer research. The argument is made that

during the 1960s, the study of consumer behavior as a subject of study

independently developed. The positivist and non- positivist paradigms are

said to define this discipline. Economic, behavioral, cognitive,

motivational/trait/attitudinal, situational, and other viewpoints are

included in the positivist paradigm; these perspectives are referred to as

"traditional perspectives" because they precede the creation of the non-

positivist paradigm. The positivist paradigm, which continues to be the

dominant paradigm, emphasizes the supremacy of human reason and

maintains that science can only discover one single, objective truth.

According to this paradigm, the universe is a logically organized place

with a distinct past, present, and future. Therefore, the traditional

viewpoint is predicated on the idea of rationality. the adverse the non-

positivist paradigm engulfs the interpretive and postmodern approaches

which have only lately arisen since the years following 1980. The
proponents of this new viewpoint contend that positivism ignores the

complex social and cultural environment in which consumers live by

emphasizing the logical view and the idea of a homogeneous social

culture. There can never be a single, unified world view since this

paradigm emphasizes the value of symbolic and subjective experience as

well as the notion that consumers create meanings based on particular and

common cultural experiences. It should come as no surprise that the two

paradigms have different perspectives on the advantages of consuming

and the goals that guide consumer research. The conventional, positivist

viewpoint approaches the advantages of consuming extremely uniliteral.

The symbolic aspects of choosing are significantly more important from

a non- positivist perspective. The goal of non-positivist research projects

is to better understand consumer behavior without attempting to change

the behavior of consumers. Positive research, on the other hand, aims to

advance the objectives of marketing practice. This article seeks to identify

new ways of thinking that can benefit customers in the future by

examining the paradigm shifts in the relevant field research.

Introduction: -

The study of "the processes involved when individuals or groups select,

purchase, utilize, or dispose of items, services, ideas, or experiences to

satiate needs and desires" is known as "consumer" (Solomon 1995, 7). The
term "consumer" in the context of marketing refers to patterns of

aggregate buying, including pre- and post-purchase activity, as well as the

act of purchase itself. Pre-purchase activities could include being more

conscious of a need or want, searching for and evaluating data about

brands and items that might satisfy it, and making a decision. Examining

the purchased item in use and easing any tension that comes with the

acquisition of expensive and infrequently purchased products are two

post-buy actions. Each of these has significance for both initial and

subsequent purchases, and they are susceptible to marketer influence to

varying degrees (Foxall 1987). Consumer behavior is described as "those

behavior of individuals directly involved in obtaining, utilizing, and

disposing of economic products and services, including the choice

processes that precede and determine these acts" by Engel et al. (1986, 5).

Simple observation offers only a partial understanding of the complex

nature of consumer choice, so researchers are increasingly turning to the

more sophisticated concepts and methods of inquiry offered by behavioral

sciences to better comprehend, predict, and perhaps even better control

consumer behavior. The academic disciplines most frequently used in this

endeavour— which has grown into a sizable academic business in and of

itself—are psychology, social psychology, and sociology.


Consumer Decision Making Model: -

Nicosia (1966), Engel et al. (1968), and Howard and Sheth (1970) all proposed

"comprehensive" models of consumer decision-making (1969). From the

moment they realize they can satisfy a material need by purchasing and eating

a product to the moment they realize the consequences of doing so, these studies

examine how consumers' psychological states change over time. A prolonged

problem- solving process that begins with problem recognition, information

search, alternative evaluation, purchase, and post-purchase activities, according

to Engel et al. (1986), is the conclusion of a study by Engel et al. Exposure,

attention, comprehension and acceptance/retention are all part of an active

information processing sequence that aids this process. An informed decision

can lead to either a satisfying or dissonant outcome, depending on the

information process. Festinger (1957) was the first to propose the theory of

consumer cognitive dissonance as a factor in future purchasing decisions.

According to Engel and Blackwell (1982), environmental influences can

influence the decision-making process by acting on the consumer's motivation

and intention, and these unpredictable factors (such as the absence of a desired

brand or a lack of funds) may lead to a change in the actual choice made by a

consumer. Observed consumer behavior is predicated on the consumer's

internal psychological states and events, according to this model (attitude

intention-purchase sequence). To illustrate these psychological events as a


result of a consumer's rational problem- solving and decision-making process,

the model depicts the outputs of information processing. Extended problem-

solving models have been criticized for their assumption that consumers are

complex and rational decision makers (Welshavsky and Granbois 1979). Due

to their inability to be tested precisely, Ehrenberg (1988) attacked these

models. Relations between concepts are poorly defined, with no agreed-upon

methods for measuring them. Consumers may follow these steps when making

some purchases, but this may not be a fair representation of the majority of

purchases (Olshavsky and Granbois 1979). Researchers have discovered that

people who make decisions have a variety of options at their disposal. There

are many factors to consider when deciding how much effort is required for a

consumer to make a particular choice. "Constructive processing" is the term for

this process. Users can adjust their level of "effort" based on the task at hand

(Bettman and Zins, 1977). Limited problem solving and habitual decision-

making models were developed to explain consumer behavior in purchase

situations where consumers are not highly involved and therefore do not

undertake a rigorous problem-solving approach, as described below.

Consumer Behaviour as a Social Decision-Making Process: -

Possessions have symbolic value for Veblen (1899–1949), who

introduced the concept of conspicuous consumption. The impact of social

context on behavior has been noted by a slew of academics. Sociology,


cultural anthropology, and social psychology emerged as a result of the

convergence of these various schools of thought. Their fundamental

premise is that human behavior and attitudes are shaped by multiple levels

of society, including culture, subcultures, social classes, peer groups, and

face-to-face social interactions. When we talk about culture, we're

referring to the shared values, concepts, aesthetics (such as artifacts), and

other meaningful symbols that unite us as a society. Marketing serves as a

means of generating profit. More than that, culture is shaped and shaped by

it at the same time. Cultural meanings are then transferred to consumer

goods via marketing (McCracken 1987). As social symbols, products

have a bearing on one's social status. Individuals who belong to the same

social class have similar interests, values, and behaviours. People who

belong to the same social class have roughly the same standing within the

community. As a result of their similar incomes and preferences, they tend

to lead similar lifestyles. These people tend to congregate and share a wide

range of views and ideas about how one should live one's life (Co Leman,

1983). Consumption has a symbolic value that reflects a person's place in

society, and this value is influenced by a person's social class. As a result,

social norms, or unwritten rules that guide behavior, emerge. Because of

normative social influence, which occurs when people conform to meet

the expectations of others; or informational social influence, which refers

to conformity that occurs because the behavior of a group is taken as


evidence about reality, consumers generally conform to norms. Various

groups of consumers have a significant impact on the decisions they

make. The term "reference groups" is used to describe all of the outside

influences that serve as social cues for individuals (Gergen and George,

1981).
CHAPTER 5: METHODOLOGY

It is in this chapter that the study's research methodology is explained.

A research methodology is a methodical approach to tackling a research

challenge. It has a wide range of facets, and research methods are one of

them.

The logic underlying the methods is also taken into account when

discussing research methodology. We use it in our research so that the

findings can be assessed by the researcher or by other researchers.

I've used the following research process, which consists of a series of

actions or steps, to carry out my research effectively.

Research comprises of the following steps:

1. Formulating the research problem

2. Research design & Sample Design

3. Data Analysis and Interpretation

4. Comparative Analysis

Research Design / Type of Research: -

Researchers use research design to make it easier to gather evidence for


their theories and hypotheses with the least number of resources possible.

Designing a research project is an important part of the research process.

Your research questions will dictate which design is best for you.

There are both positive and negative aspects to every design. At least four

issues are addressed by the research design, which has been dubbed a

"blueprint" for research: what questions to study, what data are relevant,

what data are collected, and how are the results analyzed. An

organization's design is a blueprint for how it collects, measures, and

analyzes the data. Strategy and implementation plan for a study are two

different things. When it comes to describing the data and characteristics

of the company, retailers, and their loyalty programs, this research is done

in a descriptive manner. To describe "what exists" in terms of variables in

a given situation, descriptive research is used to gather data on the current

status.

Sampling Technique: -

On the basis of the Convenience technique, based on the probability

sampling method, and also by predicting the behavior of retailers and

distributors, respondents were selected for the study.

Collection of Data/Type of Data: -

Primary Data
Data that has just been collected for the first time is known as primary

data. It's unique because of the way the raw material is shaped. Primary

data was gathered through the use of a well-structured questionnaire,

which was filled out by the survey participants. There are both open-ended

and closed-ended questions

on the survey. Open-ended questions were used to gather information

about the effectiveness of the loyalty programs from retailers and other

stakeholders.

Secondary Data

The term "secondary data" refers to information that has already been

gathered. Finished products are secondary in nature, and they come in

various shapes and sizes. It was necessary to gather additional information

in order to obtain reliable results. Data was gathered from previous studies

conducted by the companies before they began their current investigation.

Sampling Instruments: -

Sampling Instruments refer to the way by which data is collected. The


Sampling Instrument of the project was a Questionnaire and interviewing
retailers and some customers.

Sampling Unit: -

The sampling Unit is the single unit of the population. A single retailer of
loyalty outlet who gets display benefits from the sampling unit of the
study.

Sample size/ No. of Respondents: -

The sample size is the size of the sample drawn from the population which

is the true representative of the research. The number of respondents

included in the study was 210 for convenience in evaluating and analyzing

the data and because of time constraints.

Data Analysis Technique: -

Qualitative Technique- This describes the characteristics and does not

involve numbers. Observations or Interviews are the types of qualitative

research. In this project Observations as the qualitative technique was

used.

Quantitative Technique- It focuses on numbers and is all about quantity.

Experiments and Surveys are kinds of quantitative techniques. In this

project Survey as a qualitative technique was used.


LAUNCHED PRODUCT PROFILE

Engage Intense

Engage Intense is a deodorant launched by ITC it comes with price Rs 230 and

it comes in two Flavors. ITC launched with this price range Engage Intense to

compete Denver, Wild Stone, KS and other deodorant company. Also, our

Mentor Mr. Pushan Ghose sir assigned a task for 3 days to launch of Engage

Intense on 20 outlets. I have launched Engage Intense in 26 outlets in 3 days.


Savlon Cool

Savlon Cool Menthol & Glycerine Bathing Bar comes under mid-range soap of

ITC and it comes in Rs 35. Cool bathing experience with this season’s cooling

range of Menthol & Glycerine Bathing Bar and enjoy its long-lasting freshness

is its salient features. It was low in demand in Digha WD point due to other

competitor company in same price range like Dettol Cool, Cinthol, Lux Cool

and others bathing soap.


Fiama Men & Fiama Sandal

Fiama Men and Fiama Sandal are launched by ITC with price range of Rs 40

and its gel bathing bar comes under premium soap of ITC. ITC have launched

in this price range of Fiama Men and Fiama Sandal to compete their competitor

like Pears, Dove and other gel bathing bar.


CHAPTER 6: RESULT ANALYSIS AND DISCUSSION

The questionnaire analysis is recorded on the basis of primary data

collected from 210 respondents (Non-Repetitive Customers)

1.Which ITC Toilet Soap product have highest sale in your outlet?

a) Savlon b) Vivel c) Fiama

Soap

9%

Savlon
29%
Vivel
62%
Fiama

Inferences:

The graph shows that more than 60 percent of outlet Salvon have the

highest sales compared to Fiama and Vivel. Fiama has less sales as

compared to Savlon and Vivel so, we have to work on brand awareness.

Many people are not aware about Fiama also we work on Fiama

advertisements.
2.Which ITC DT product have highest sale in your outlet?

a) Engage Pocket b) Engage Mini Can c) Engage Intense

Deodorant

17%
33%
Engage Pocket
Engage Mini Can
Engage Intense
50%

Inferences:

The graph shows that in 50 percent of the outlets, Engage Mini Can has the

highest sales as compared to Engage Intense and Engage Pocket. The

reason why Engage Intense has less sales than Engage Pocket and Engage

Mini Cans is because Engage Intense is more sold only in PCP

supermarkets and the wholesale market, not in smaller retail outlets. Also,

the main factor is the higher price of the Engage Intense as compared to

the Engage Pocket and the Engage Mini can.


3. Apart from ITC DT (Deodorant), which other DT (Deodorant) brands do

customers prefer to buy?

a). Park Avenue b). Wild Stone c). KS d). Denver e). Others

Deodorant

11% 12%
Park Avenue

22% Wild Stone


25%
KS
Denver

30% Others

Inferences:

The graph shows that KS have the highest sales compared to other

deodorant brands. After KS deodorant Wild Stone and Denver are better

sales in the outlet. Park Avenue have least sales in the outlet.

4. Apart from ITC TS (Toilet Soap), which other TS (Toilet Soap) brands

do customers prefer to buy?

a). Lux b). Pears c). Dettol d). Cinthol e). Others
Soap

7%
20% Lux
15%
Pears
Dettol

23% Cinthol
35% Others

Inference:

In this graph shows that most of the outlet have highest sales of Dettol

(Reckitt Benckiser) and Pears (HUL). After that Lux and Cinthol have

better sales in the outlet. Whereas as only small portion has been occupied

by Cinthol and Others. According to the retailers the demand between

consumer of HUL and Reckitt Benckiser product are high respect to other

competitor in PCP segment.

5.. Have you faced any problem related to delivery of ITC products?

a) Yes b) No
Delivery Problem

37%
Yes

63% No

Inference:

37% of the total outlets reported that they get the delivery on after two

days, the remaining 63% percent indicated delivery issues, sometimes the

delivery may get delayed due to the delivery boy is not present.

6.How is the D&D Policy at the outlet?

a) Good b) Not Good

D&D

27%
Good
Not Good
73%
Inference:

The D&D policy received praise from about 73% of the outlets were happy

with ITC D&D services and the remaining 27% were not happy with D&D

of policy ITC.

7. From whom you purchased ITC products?

a) Distributor Salesman b) From Market

Purchased

30%
Distibutor Salesman
From Market
70%

Inference:

The graph shows that 70 percent of outlets have purchased ITC products

from ITC distributor salesmen and the remaining 30 percent have

purchased ITC products from the market, for example Udaan app, Apna

dukan they have purchased ITC products.


8.Do you get credit period for products you buy from ITC?

a).1-week b). 2-week c) 3-week d) More than 3-week

Credit Period

33% 2-week
45%
3-week
1-week

22%

Inference:

The graph shows that Only 45% of retailers responded that they get credit

for 2-week, and 33% of retailers were those who felt the pressure of

clearing the credit within 7 days of the purchase. There were also 22%

customers who aren’t given that long period of days of credit but pay in 3-

week.

9.What is credit period given by other companies/competitors.

a) 1-week b) 2-week c) 3-week d) more than 3-week


Credit Period

13% 18%
1-week
2-week
3-week
36%
33% more than 3-week

Inference:

36% of retailers responded that they get credit for 3-week by other

companies, and 33% of retailers respond that they get credit for 2-week.

There were also 18% retailers respond that they credit 1-week and 13%

retailers who aren’t given that long period of days of credit but pay more

than 3-week.

10.Does salesman tells you about ongoing scheme?

a) Yes b) No
Scheme

23%

Yes
No
77%

Inference:

77% of the outlets said that the DS frequently communicates updated

schemes and discounts to customers. Of the remaining outlets, 23 percent

said that the DS are not frequently updated him schemes and discount of

given by ITC company.


CHAPTER 7: COMPETITOR ANALYSIS & ANALYSIS OF

MARKET

COMPETITOR ANALYSIS OF DEODORANTS

Product MRP Net Parent Retailer Flavors


Name Content(ml) Company Price
Engage 230 150 ITC 148 2 flavors
Intense for men
KS 230 150 KS 140 3 for
Spark men
and 3
for
Women
Denver 220 150 Vanesa 142 3 flavors
for men

Inference:

Engage Intense give 35.6% margin to the retailer on their Engage Deodorant

but the competitors give 39.1% to 40% margin to the retailers. So, between
the retailers the demand of engage deo is less.

COMPETITOR ANALYSIS IN SOAP

Product name MRP Net Content Parent Retailer Flavors


(ml) Company Price
Lux Cool 40 75 HUL 33 3 flavors

Savlon Cool 35 75 ITC 28 2 flavors

Dettol Cool 40 75 Reckitt 32 3 flavors


Benckiser
Group PLC

Inference:

The demand of Savlon cool is less demand among the retailers as well as

consumers than the competitors in Rs 40 segment.


MARKETING MIX

PRODUCT: - ITC is keenly aware of the fact that individual tastes vary, and

as a consequence, they have begun to manufacture a range of goods. Personal

Care Products come in a range of sizes and forms. The varied characteristics

appeal to a broad variety of preferences.

PRICE: -ITC is renowned not just for its extensive product line but also for

its competitive price. ITC used competitive pricing as a component of its

marketing mix, maintaining prices practically identical to those of its rivals

while promising superior service and production from its goods. This method

helped ITC not only attract new clients, but also overcome the difficulty of

entering a market with established brands from well-known corporations like


as HUL and P&G. The brand's appeal among competitors is mostly

attributable to its cost. The optimal product selection allows individuals to

present their best selves to the world while being financially stable. This

brand is quite popular in India and the subcontinent.

PROMOTION: - The Unique Selling Proposition is the seductive

advertisements depicting Engage users swaying with models. The advertising

strategy comprises putting items at almost all retail locations.

PLACE: - ITC has established itself as a reputable brand due to the fact that

its Personal Care Products have a significant presence in both urban and

rural India.

ITC used an uncomplicated method, which included a route via warehouses,

distributors, and retailers. Because their product was a fast-moving consumer

good (FMCG), they did not need an exclusive shop to sell or display it.

Furthermore, because it was an FMCG product sold via the retailer channel, it

was accessible in all small retail stores in both urban and rural locations. This

also helped them grow into rural regions and increase their market share.

However, ITC is more dependent on urban locations.


CHAPTER 8- FINDINGS & SUGGESTIONS

FINDINGS

 In PCP products, Engage, Fiama, and Vivel have less Availability and

Visibility as compared to the competitors.

 37% of total outlets told that they get their delivery on after two days, the

remaining 63% denotes the delivery issue.

Major reason found:

 Absenteeism of delivery boy

 Vehicles not in good condition or available,

 Stock Out in Godown

 73% of the outlets were happy with ITC D&D services and the remaining

27% were not happy with D&D of policy ITC.

Major reasons were found:

 The time of taken D&D products of ITC in between 7 to 14 of every

month but the delivery boy does not take D&D products from the outlet

within that period while DS take order to exchange the D&D products

through vajra app.

 77% of the outlets said that the DS frequently communicates updated

schemes and discounts to customers. Of the remaining outlets, 23 percent

said that the DS are not frequently updated him schemes and discount of

given by ITC company.


Major reasons were found:

 DS targeted those retailers or wholesalers who get order in large quantity.

but small retailers do not keep whole PCP product so, that ds do not tell

them about the current scheme.

 45% of retailers responded that they get credit for 2-week, and 33% of

retailers were those who felt the pressure of clearing the credit within 7

days of the purchase.

Major reasons were found:

 Pressure from the WD to clear the bill.

 Choice of the DS to give credit to a few outlets where he has surety

of clearance.

 Nonpayment of past bills.

 The schemes on Engage Deodorant are the most effective while retailers

responded they do not think that schemes on Fiama soaps are so

effective.

 Savlon Glycerine toilet soap is still battling to give a tough competition

to its competitor Dettol.


SUGGESTIONS

The increase the availability and visibility of Engage, Fiama, Vivel company

should focuses on: -

 Competitors' schemes and promotional incentives should be tracked.

 Luring with better margin and gifts.

 Marketing campaigns within the Patna region for brand awareness can be

run.

 Daily briefing about the progressive targets of DS and making him aware

of the current schemes and discounts.

 A proper credit period as per the company norms can provide a solution,
also identifying the outlets based on the past clearance and sales, and

billing them proportionally along with new outlets can help.

 Regular vigilance on digital e-commerce and hawkers who affects the

effectiveness of the scheme in the market.

 Should be offered to retailers to increase shelf space visibility at outlets.

Try arranging Savlon product more attractively in cross manner,

vertically at shelves etc and try spreading more awareness about on-going

offers on Savlon products to attract maximum retailers.

 Engage deodorant margin should be given as equal to the competitor

brand.
 The company should focus on awareness of Fiama soap among the

consumer.

CHAPTER 9: LIMITATIONS OF THE STUDY

 The only area that was included in the study was the Imrita WD

point region. The study referenced above was unable to take into

account either the industry or the rural centres.

 The research was carried out with an insufficient number of

responses coming from 210 different retailers in order to reach a

valid conclusion regarding the several facets connected to the

marketing of ITC LIMITED.

 As a result of the fact that some of the respondents were not the

family members who actually made decisions, the information that

was acquired from them may contain some bias. Another issue that

I had to deal with was the fact that individuals were reluctant to

openly share information regarding their perspectives.

 Few retailers were not keen to answer own questionnaire so we

were not able to take their response.

 Some of the answer we received were not clear so were can’t take

those response in our consideration.


CHAPTER 10: CONCLUSION

The internship began with an understanding of the company's product portfolio

of PCP as well as FMCG industry jargon. The developments that unfolded during

the company's project gave us a deeper grasp of the distribution channel as well.

Market interactions at the ground level provided for the identification of

important areas that needed to be addressed either at the company level or among

the company's channels of distribution. The study focuses on the customer and

consumer (in process) surveys, using data collected through questionnaires to

determine current market conditions. The major objective was to increase the DS

efficiency in their respective beats and develop business prospects and finding

all alternative sources of Personal Care Product sale. While, learning about the

effectiveness of implemented schemes by ITC Ltd. for a few SKUs, through a

survey gave a broader idea of benchmarked competitors' schemes and discounts

on the ground level. Also, within the project launching a new product of Engage

Intense and observing their sales rotation in the next beat was an additional bonus

point. Furthermore, A special survey for the WD Imrita Badrinath and Pre survey

for the launch of Fiama Men and Fiama Sandal soaps learning experience of sales

in the dynamic market of Patna. ITC Ltd. Despite, touching millions of outlets

through FMCG PCP products and constant growth is facing highly competitive

and dynamic challenges, to overcome these challenges the DS is the ground face

of the company. There is a need for the hour of DS to work in the most efficient
way with extremely high morale and loyalty. Hence the objectives and data

analysed in the report are blended with the inferences & suggestions for the

betterment of the company to gauge a large market share through the help of DS.

Looking at all of the facts and numbers, it's clear that the company needs to work

on its internal operations in order to gain market share with pre-determined goals

and a well-thought-out strategy.

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